6 Ways That Emerging Technology Is Disrupting Business Strategy

 

How are Ai, IoT and analytics changing the way companies think about strategy? Executives are struggling with how to use digital technology in their business strategy.

Talent and data are more critical than ever.

Traditionally companies focussed on technology, the exclusive rights of usage to gain an advantage over the competition. But digital technologies are developed as open-source mostly and it is available to everyone. Hence data and the talent that the companies can employ becomes a critical differentiator.

Technology propels transformation

Many companies treat digital technology as another capital investment that does not directly impact their work, but others are using the technology to better serve customers, acquire skills required and make required organisational changes. This may involve higher costs but it also yields higher returns.

Programs and logic are changing the pricing game

Companies are using technology to set online prices based on supply-demand variations. This enables better-focussed prices. This can change the nature of price competition in the market and rivals. However, this may require additional investments in IT, software, production systems, manpower among other things.

Platforms are uprooting traditional business models.

New technologies help companies to explore new areas as well as test out new business models. Technology creates value to customers through the novelty of "job to be done" and by monetising their offering in new ways. Most o these new technologies are based on the platform model thus transforming the entire strategy planning.

Companies test everything

Businesses can easily and quickly experiment with the variations in critical parameters like pricing, positioning and the market to serve. Online platforms, programs and the basic data help firms test quickly and identify the gaps to be filled. 

Cloud computing is lowering the barriers to entry

Cloud computing has made it very easy for competitors to enter the market and intensify the competition. This would lead to cannibalisation as the major players compete with and threaten their own customers as they expand and diversify their operations. Companies would do well to ensure that they do not get locked into one service provider and having multiple cloud providers ensures that they can switch to the more competitive service provider at a minimal cost.

6 Ways That Emerging Technology Is Disrupting Business Strategy
by Danielle Kost HBSWK 2020/02