Companies that have not realized that technology should be embraced to improve and enhance their traditional business models are in for a big surprise.
I have been in IT for most of my working life and although a lot of IT companies are doing well, there are those who struggle to secure new business. One of the main challenges was usually to convince the senior management of potential customers that It can improve their business models, in contradiction with the standard where customer's believe that IT is an expense rather than an enabler.
Sure larger entities that can afford to budget for IT have realised this a long time ago, but the smaller SME's which can afford to budget for IT, would rather share in larger profits.
The speed at which technology is advancing are starting to move beyond the point where anybody can not invest in information technology to assist with the improvement and also to enable better business models.
Rules are changing at a tremendous pace, faster than ever. Business that embrace technology and adopting their business plans will have a great future, but those who don't will also fail miserably.
According to an article published by Rory Moore the Innovation Lead from Accenture:
Moore says technology is an enabler for business growth by allowing businesses to quickly capitalise on opportunities. "There has been a marked decline in the ability of traditional levers of production—capital investment and labour—to propel economic growth.”
“Technology, and specifically Artificial Intelligence, is a new factor of production and has the potential to introduce new sources of growth, changing how work is done and reinforcing the role of people to drive growth in business,” he explains.
“There is no in between, only those who embrace technology and those who don’t. If you haven't already embraced technology, you risk missing the bus," he adds.
You can read the full article here
When we look at the various new technologies, like Virtual Reality (VR), Augmented Reality (AR), and all the new things like blockchain that are being explored and improved, there should be something that can assist in chaning organisation business models.
If we look at the new buzzwords like the "Digital Workplace" and "Employee Engagement", which all refers to information technology at the end of the day, various aspects can be addressed.
Information Technology spend should be budgeted for as a percentage of revenue generated by any organisation. It should be a let's wait and see when and what we need.
Happy Steeming!
