Technology: Threat or Opportunity?

text_mobile_phone.jpgAnswer: Yes!

Technology can be both an opportunity and a threat. On the one hand, it’s a threat because a new technology can kill a great company or even an entire industry, regardless of how big a player in the industry an organization is. Imagine being Smith Corona and being a market leader in typewriters, then to make the transition to word processors, only to get slaughtered by the personal computer.

On the other hand, technology is a remarkable opportunity, because it lowers entry barriers! Just about any size business or organization can afford a computer, and there are tons of free software applications out there from business plan templates to free accounting programs. FREE! Check out places like Quickbooks and Google Docs before you spend a dime! Technology has lowered transaction costs and entry barriers in more ways than we can count!  

On the other, other hand, it’s tough to compete on just technology. If we try to differentiate ourselves through our “fancy website” or that we offer “secure shopping,” before too long, the consumer says, “So what? So does everybody else!” thanks again to the prevalence of technology. Plus, because technology is changing so rapidly and so vastly, it requires an ongoing investment that we have to consider in our strategic planning. Warren Buffett avoids investing in the technology sector for this very reason.

As you might have guessed, whether techology is a threat or an opportunity largely depends on whether it’s in the hands of a capable leader like YOU!

Here are some other examples:

You can’t direct the wind, but you can adjust the sails.” – Christopher Poizat