The burning bush

Back in the day, I would share an esoteric fact about new technology with my business partner. He would momentarily fix me with a blank stare and then ask, "How does that affect UCLA's chances of going to the Rose Bowl?"

 

Point taken.  How does this affect me?

 

Similarly, we sometimes react to news of breakthrough technology by asking ourselves, "How will this change our business?" But is this the proper prism through which one should view technological change?

 

I liken navigating through our changing technological world as hiking from Death Valley to the top of Mount Whitney. The journey begins in an arid desert, stark and primitive. As you progress, elevation changes bring new terrain. Plant and animal life become more abundant. The climate changes, as does your apparel. Perhaps you encounter the burning bush, which signifies that you are the chosen leader. Forget that last part.

 

So, too, we navigate through our lives encountering new technology, some of which is life changing. Artificial Intelligence navigates us and guides us through traffic. Fintech enables us to move money around instantly and effortlessly. A wristwatch records our temperature and heart rate and notifies emergency responders if it detects that we are in distress.

 

Each of these things will likely change our perspective on how other things should perform. If Waze can calculate my arrival time to the minute, why do I have to wait for 45 minutes in my doctor's office? If I can instantly transfer $1,000 to my brother Fred, why does the bank put a three-day hold on my deposit? New technology raises our expectations for how things should work.

 

We often hear or read about new technology and wonder how it may affect our business. Will it lower the barrier to entry? Will it enable a new competitive advantage? Do we have to reinvent ourselves? This is provincial thinking that can often mask the effects of technological evolution on our industry.

 

Rather than drawing a straight line from the advent of new technology to your business, my advice to you is to view technological change in a broader sense: how will it shape consumer expectations for what I offer? Then, consider how you might deliver similar benefits using a different business model or technology.

 

Second, don't adopt new technology because it's vogue or sexy. Choose technology that is the right tool for the task, regardless of whether it sizzles.  Applying new technology that sizzles may be akin to killing flies with sledgehammers.

 

Next, peek over the fence now and then at other industries wholly unrelated to yours to see how they are adopting new technology or new business models to protect themselves from disruption. While their business may be different, their strategy can be relevant.

 

Finally, be preemptive. Look for the nexus where a new technology confronts an old problem.