~by Lizzie Weakley~
Proven business principles don’t do enough to keep your company afloat. Doing everything by the book might make you feel good, but failing to mix sound practices with the right technology could result in spectacular failure.
Understanding the following 5 ways modern technology drives business will help you stay relevant and profitable.
1. Rapid Change
In the past, formal business training offered ways to understand business processes using a methodical approach. Nowadays, managers need a technology MBA to understand the dynamics that affect their business. Past practices of using instinct and experience to speed decision making often fail now because no one can predict the emerging tools that will transform your industry. Failing to adjust quickly to change will cause your firm to fall behind, giving your competitors the upper hand in the marketplace.
2. Size Doesn’t Matter
Corporate enterprises once held advantages that made them attractive to customers looking for a stable supplier with impressive capabilities. In the past, only corporations could operate call centers and process massive amounts of data. Now, a startup can enter the market today and have instant access to cloud-based services. Even financing no longer limits many small companies as a result of widespread access to cloud funding and venture capital.
3. Changing Business Models
Thanks to technology, companies can no longer count on following the same business model throughout their lifespan. Managers, who once could focus their efforts on executing a static business plan, must now find ways to develop and streamline their internal processes to maintain a competitive edge. Companies must adapt to the changing needs of their customers rather than adhere to past tried and true practices.
4. Knowledge Rules
Information now drives businesses that once had traditional structures where higher levels of the organization had increasing levels of expertise. The demands technology places on a firm now require that you have extremely knowledgeable and skilled staff to perform routine business functions. Lower-level personnel with marketable skills can always abandon their job to look for greener pastures, so managers no longer have control over their subordinates. Companies now must focus on employee engagement and satisfaction to encourage retention.
5. Increased Automation
While knowledgeable workers have gained leverage with their employers, technology has thinned their ranks. Marketing and sales automation technologies give companies the ability to acquire and process more leads than ever using fewer people. Automation has also affected other business operations including IT management and manufacturing.
Modern technology drives today’s business by leveling the competitive playing field and changing practically every business model and process. Evaluate the way your organization uses technology to make sure you don’t get left behind.
Lizzie is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky, Snowball.