Technological changes have always reshaped business models. However, what is strikingly different now is the pace at which technology is changing and in turn disrupting all areas of doing business. But, are business models keeping pace with technological changes?
Technology Drives Business Growth In Competitive Markets
Companies that utilize technology to power their business model see a 3x higher growth rate than companies that don’t. Companies that use data for decision making compared to companies that do not have 20% higher employee productivity.
An EY report indicates that, since 2000, digital disruption has affected around 52% of Fortune 500 companies and businesses are failing to use ~80% of their customer data. Notably, by 2018, the top 20 firms in most sectors are most likely to face disruptions that may be caused by sector-specific data platforms.
The survey reveals that although most entrepreneurs acknowledge the impact of technological changes on their business, they either are not ready or have not made it a priority to take necessary steps to transform their business model to stay relevant. First generation entrepreneurs who have prior corporate experience are more open to adopting technology than the older generation entrepreneurs.
Technology Is Changing Business Models
Companies like Uber and Airbnb are disrupting industries with their business models. What are some of the things that you can do? Re-look at your business model. What are the key trends in your industry? What are the key disruptions? How can you leverage new technologies? There’s cloud computing, there’s mobile computing, there are the apps. Can you utilize any of these technologies to actually help you scale up your business that much better? Here are 4 specific strategies to help you use technology to grow your business: (more…)