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Driving growth through technological strategies can only reach maximum potential when efficiency is the main focus. While these plans can quickly change how the game of business is played, it is limited by the understanding of leaders at the highest level pushing to make the most of these advancements.
Read more about the undeniable impact technology will have on the future of your business growth, and find out how executive leadership in this area of business can make the difference.
4 Reasons the Unstoppable Technology Explosion Will Impact Your Business
The speed of technology advancement is driving the evolution of your business. Turn the challenges into important competitive opportunities. Anticipate and apply the new technologies in a smart way. The perspective of Montserrat Corominas.
The whole world is in a continually escalating technology race according to Montserrat Corominas. This race of technology is apparent in how it took 30 years for electricity and 25 years for telephones to reach 10 percent adoption but less than 5 years for tablet devices to achieve the 10 percent rate. Digging into this race, there are four overlapping trends that affect the global marketplace:
- Market Entry is Getting Easier
The speed of technology provides opportunities in markets that were not previously accessible. For example, the cost of entry was too high, sensors too expensive, the communication links were not reliable, infrastructure investment was required, etc. The advent of cloud technologies and mobile computing allows entrepreneurs and customers to spend their time wisely and work anytime, anywhere.
- Entirely New Disruptive Markets
The speed of technology also enables development in markets that did not previously exist such as wearables, e-Health, even sneakers. This year the wearable industry is set to hit $14 billion and forecasts indicate that the industry will be worth $34 billion by 2020.
- Data Travel at the Speed of Trust
Understanding how to empower the customer, enriching his or her experience and jointly developing and improving services are key. Even if there are data concerns, they can be overcome with trust. Customers are willing to provide data when they use a trusted service.
- 4. New Digital Skill-Sets and Attitudes
New technology requires human capital skills that constantly need updating to keep up with the challenge of newly required skill-sets. In addition, in this new age of customer empowerment, there are new service business practices and attitudes, which require companies to adapt their existing processes faster than ever before.
Ensure that your company takes advantage of events and training to enhance your team's knowledge. The learning that events provide will help your business to stay on top of trends so that you are poised to benefit from the opportunities that arise. A great example is the New Mobility World event, which focuses on the industries of smart cities, transportation and logistics.
Even the basics of agriculture is not immune, and we are becoming independent
from mankind's first role, advancing yet again into a new era. Spread, a Japanese company, has started a new project in which only half of the workers will be human: a lettuce farm operated by robots.
No industry is immune from the speed of technology advancement, but executive leadership must spearhead technologically based agendas to maximize efficiency for the business.
Why Growth-Oriented CEOs Must Embrace New Technology Advancements
“I believe that CEOs and boards do not have a choice in the matter as technology enablement has become mission-critical to every company. From the perspective of the CEO and the board, they do not necessarily need to become technology experts. All they need is to have a clear understanding of how technology advancements can help their business by redefining business models, operational processes and most importantly – customer experience and engagement.”
- Kumar R Parakala, Co-Founder and Managing Director of Technova
Companies in almost all industries including retail, banking, media, education, entertainment, communications, IT services, recruiting, transportation and healthcare are seriously impacted by the innovative use of new technologies. New technology-enabled companies are seriously disrupting traditional companies by leveraging technology advancements to create new businesses.
Some examples are Amazon, Netflix, Airbnb, Apple, Google, Zappos, Skype, Alibaba, Facebook and Freelancer. As these new companies emerge, we have seen iconic companies disappear, such as Nokia, Borders, Blockbusters, Life Magazine, Woolworths Group, and Kodak.
Evidence That Leaders are Still Slow to Adaptation
What prevents many CEOs and boards driving growth agenda by using new technology advancements, is a lack of knowledge and understanding.
- Recent studies such as the one conducted by Grant Thorton have identified that most boards worldwide fail when it comes to diversity and technology.
- Some of the recent surveys of company boards such as the PwC’s 2015 Annual Corporate Directors Survey indicate that the majority of boards believe that technology is mission-critical and crucial to the survival of a business.
- Surveys, such as the Watermark Board Diversity Survey 2015 highlighted a deficiency in suitably skilled executives at the board and CEO level to leverage technology advancements for business growth.
- While almost 55% of board-level executives have accounting and legal backgrounds, only 3% come with technology experience or relevant skills.
Action Plan for CEOs Seeking Growth Leverage Through Technology Advancements
- Improve understanding of disruptive technology trends in their own industry and related industries
- Increase board and senior executive level awareness, particularly in relation to strategic benefits and risks
- Adopt an agile and lean approach to technology-enabled innovation
- Prioritize technology enabled business growth and transformation as a major corporate initiative sponsored by the board;
- Reduce leadership talent obsolescence; and
- Become bold and increase their appetite for failures/risk taking
- Make CIO or the relevant technology leader a member of the senior executive team
- Seek sufficient external and independent advice to avoid missing out on opportunities
- Lead by example in adopting new innovations and technological advancements
It is important for all CEOs to understand the role of technology in business transformation and growth if they want to succeed in the new digital age. Successful use of the latest technological advancements starts with executive leadership who will properly use these tools to push for a more effective corporate strategy, daily operation, and overall customer experience.
There are a variety of innovative options to maximize the finance processes of any business. Owners and executive leaders looking to get started in improving their financially based growth strategies through advanced technology should contact our Commercial Banking and Business Banking teams today.