As markets and technologies are constantly evolving, companies need to maintain the ability to change quickly and at the lowest possible cost. Technological solutions must not be an obstacle to change, says Toni Luhti, CEO of Platform of Trust.
Can you remember which technical device or smart application was the most innovative or technically advanced on the market three years ago? Did it become a success or was it quietly abandoned later? While three years is a short period, I doubt if too many of them are still technologically interesting or competitively priced.
According to some estimates, up to four billion new devices from thousands of technology suppliers were connected to the internet in 2019. The use of technology is spreading to all activities and sectors. The development of new gadgets keeps picking up speed, which is why technology alone no longer provides as strong a competitive edge as it used to. As a result, technology provides companies with a multitude of new and exciting opportunities, but at the same time, it also causes a lot of (unnecessary) work and raises a lot of questions.
As early as 2011, the developer of the Open Innovation model, researcher Henry Chesbrough, stated that technology does not create any value unless it is used in the right business model. So, with thousands of technological solutions available, how do we choose the ones that will still be competitive and worth investing in a few years? Nobody has a crystal ball that will tell us for sure.
In their technology acquisitions, many companies highlight the importance of avoiding supplier dependency, or increase the possibility of changing technologies using the mechanisms that the API economy makes available. It is no less important to create business models that can be modified, regardless of any technological choices. With constantly evolving markets and technologies, companies must retain their ability to change rapidly and as cost-effectively as possible.
The business challenge today boils down to this:
- There are more options available today than ever before, but no one knows which is a “winning technology”.
- Business models must change quicker than ever before, and technology must not hinder the change.
- The cost of technological solutions may arise from the inability to change.
Add all the data that the new smart devices and systems produce and the current trend to use data more extensively to the equation, and companies find themselves managing an interesting yet complex combination. Therefore, I would like to challenge you to think about the impact that the technological choices your company has made has on the use of data in the future.