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.