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:
- Data Is The Key To Making Cutting-Edge Decisions
What are the key consumer insights that you’re able to get from data? Another report showed that most businesses don’t look into 80% of their key consumer data. With all these particular things, we can build a business that is more future-proofed. It’s important to look at these particular insights and see what technology is able to give you.
There are things like artificial intelligence and machine learning, which can sift through data that is being mined and help you understand your customers better. It will help you become more customer-centric.
2. CRM can help you communicate more effectively
Take, for example, a very simple thing. Currently, I’m using a type of customer relationship management (CRM) software, which I can integrate with my website completely. Using this tool, I can understand who’s coming to my website, and not only that, anytime they look to initiate a relationship with me, sign on to any of my email lists, etc., I’m able to get detailed understanding of where they visited, what they looked at, how much time they spent, how often they came back, and many other details.
If they choose to do business with me, then I’m able to look back at the mode of communication that I have had with my contacts in the past, whether it was through email, letter, or phone call. The tool records all of those particular things, thereby saving me a massive amount of time and giving me much more precision in my marketing efforts. It helps me build my sales funnel, and I’m able to get a clear indication of how much I have in my pipeline, and how much I’m able to convert and learn from that. This helps me become a better marketer and a better salesperson.
3. Automation Makes Your Job Easier
The best thing is that you are benefitting from automation. My CRM software can capture the data when someone fills up a key form to subscribe to my email marketing list. You can have these sorts of technologies that are available either for free or for very low costs, which can really, positively impact your business. These are some simple ways to utilize technology.
Use the data to help you make data-driven decisions. As an entrepreneur of the modern era, you’ve got to look at that. Indeed, it can help you with demand planning, innovating new products and services, upselling, cross-selling, and down selling. It can even help you monitor your operations and finances. It can also help you mitigate risks.
4. Make Innovation A Vital Part Of Your Culture
Lastly, if you’re going to do this, then innovation has to become your way of life. This means, you have to separate innovation- led growth from non-innovation growth. You’ve got to have systems and processes set up, whereby you can make things much more innovative. You need to have a culture of innovation. There’s an article I’ve written on that, where I look at key different ways, through which you can make your business more innovative. I’m including a link together with this.
How are you looking to innovate? How are you looking to use technology to take you to the next level? Like, share, and comment below.