Small Medium Business: When Do You Need Technology ?!

World has become a global business village due to advancements in technology, accessibility and sophisticated business practices ⁽¹⁾.

Without doubt this phenomena is affecting businesses world around. Now some businesses are adapting effectively to the change while others remain static. Static perhaps, because they are taken totally off guard by the present day technological onslaught or just clueless if their business really need any technology at all.

This article is dealing exactly with that question, to help you solve that riddle, if your business really need any technology at all!

There are two things you need to look at, to solve this riddle.

1.      Look Inside

2.      Look Outside

Look Inside:

Answer questions like

Does your business need technology?

What kind or type of technology does it need ?

Why would it need a particular technology?

What are the benefits of such technology?

How such technology can be acquired?

What else would be needed to utilize that technology effectively?

You can answer such questions by conducting a thorough business analysis in terms of technology or if you are unable to do that for one reason or another, well then in that case you would need business consultant help.

Remember that at times your business might need technology but due to your business infrastructure, unidentified organizational characteristics, business model type it would need a really thorough survey, analysis to really identify what kind of technology does it needs exactly.

Identification of the right kind of technology is really important otherwise whatever you invest in might result in negative effects on your business, resulting in more problems than solving any.

In a nutshell first you need to identify the right disease (right technological need) and then you can prescribe the right pill (technology).

Look Outside:

While looking outside you need to focus on the following three things.

 
1.      Competitors Tech Usage
2.      Dynamic Customer Needs
3.      High Tech Environment

Competitors Tech Usage

You need to find objective answers with reasonable explanations to the following questions

1.      Level of Tech Know-How: If your competitors are being confirmed objectively via research to have greater technological know-how that means they are utilizing that know-how to the benefit of their business by utilizing a particular kind of technology.

Identify what is that technology and why they are utilizing it, to what end ?, for what benefit etc.

2.      More Innovative: If your competitors are more innovative in their products/service, business practices etc then you need to identify the reasons for their innovation, what kind or type of technology underlies their innovation and why.

3.      Product Focus: The higher the product focus of your competitors means the higher the chances that they might be utilizing one or other kind of technology in their business to outdo you.

4.      Tech Acquisition: Whatever tech acquisition that may be, you need to identify it and its potential uses.

Dynamic Customer Needs

You need to identify if your customers have dynamic needs, are those needs remain constant when it comes to your product/service.

If those needs change, you need to identify the change pattern, like does it takes decades, years or months to change. Why does it change, what causes it to change and what dynamic capabilities, technology precisely would help your business to effectively tackle those changes.

High Tech Environment

If your business is operating in a high tech turbulent environment then in that case you surely need technology and vice versa.

That’s it; hope this little article would help you to solve that riddle, if your business needs any technology at all.

Let me know about your views in comments.

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References:

1.      London, T. and Hart, S.L. (2004), “Reinventing strategies for emerging markets: beyond the transitional model”, Journal of International Business Studies, Vol. 35 No. 5, pp. 350-370.