Convince Your Company Leaders to Invest in New Technology?
TheCodeWork Team | 11 October 2023
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“Convincing company leaders to invest in new technology?” – What kind of a topic is that!
Well, you may not believe it, but that is one of the most common problems that we have encountered while talking to the senior management of several enterprises.
You know, sometimes we think of corporate decision-making as this super serious, data-driven thing! But at the end of the day, it’s us humans who are calling the shots. Our choices, whether we’re flying solo or making decisions as a team, can really shape the course of a business. As a result, the unpredictability of our thoughts influences a range of business decisions. Sometimes we need a catalyst to push us to make a choice when we are faced with a challenging one.
For instance, the Covid-19 pandemic has helped speed up the use of technology in many enterprises! They had to onboard several new technological innovations in order to survive. And that proved to be quite an outstanding move! Isn’t it? Yet, convincing company leaders to invest in new technology can be a daunting task. Leaders often need to be presented with a compelling case to justify these investments. But don’t you worry, at all! This blog will be your ultimate guide through the process of persuading your company leaders to invest in new technology.
Afterall, technology is not just a tool; it’s the very foundation upon which modern enterprises thrive. So, before diving into the intricacies of making a persuasive case for new technology. So, Let’s take a moment to understand why this is so crucial.
Why is the senior management reluctant to Invest in New Technology?
While the benefits of adopting new technology are evident, company leaders may not be on the same page with you! For them, the change can be uncomfortable. Also, some leaders may be resistant to adopting new technology; Because, they might perceive it as a significant departure from the status quo. So, it’s essential to acknowledge the reasons why some company leaders may exhibit reluctance towards this crucial step.
Understanding these concerns can help address them more effectively:
Fear of Disruption: Company leaders may fear that introducing new technology could disrupt existing workflows, leading to productivity declines and operational challenges.
Lack of Understanding: Some leaders may not fully comprehend the potential advantages of new technology, leading to hesitation.
Prioritization of Short-Term Goals: In some cases, leaders may prioritize immediate financial gains over long-term technological investments, as they seek quick returns.
The Cost of Reluctance to Invest in New Technology:
It’s crucial to emphasize that this reluctance toward adopting new technology is not only unwarranted but can also be detrimental. Yes! Especially to a company’s growth and competitiveness. In today’s rapidly evolving business landscape, clinging to outdated processes and tools can lead to consequences like: Missed opportunities, increased inefficiencies, and even loss of market relevance.
Moreover, the notion that adopting new technology is too expensive or risky is a misconception. The true cost lies in the opportunity cost—the benefits that the company foregoes by not embracing technological advancements. While there may be upfront expenses and learning curves, the long-term gains in efficiency, innovation, & competitiveness far outweigh these concerns.
Understanding Your Company’s Current Technology Landscape – To Invest in New Technology
McKinsey says 80% of executives believe that their industry has accelerated its adoption of digital technologies since the pandemic. In today’s world, it’s very apparent that the obstacles in the path to entrepreneurial success can’t be tackled easily without; Technology!
It’s the factor that distinguishes you from your competitors. Eventually, it empowers you to deliver top-notch products & services that your clients & users anticipate. Also, it’s crucial to gain a comprehensive understanding of your company’s current technological landscape; Evaluate it against your competitors’ tech capabilities, and align it with the future of technological advancements.
So, to achieve it, you need to take consideration of two elements:-
1. Technological Landscaping:
It offers a thorough analysis of a technological field to pinpoint and evaluate relevant technologies for the present and future.
Now, If I may ask you, How long has it been since your company stepped back and took a strategy; to look at contemporary technologies that are most relevant to your business? Well, don’t worry even if you haven’t- It requires professional tech-landscaping researchers like us to take a comprehensive look at the technologies that matter to you.
As part of the technology management process, information on emerging technologies is transmitted into an organization. However, the focus of technology scouting is on identifying solutions to an unmet technical or business need.
Remember, you shouldn’t invest in technology scouting or technology landscaping separately because they operate hand in hand. When combined, your business will have access to a special set of potentials for finding and evaluating the precise technology; you need!
Palantir Technologies: Researching and Selecting the Right Technology
Founded in 2003 by former PayPal employees, Palantir Technologies initially focused on providing data analytics solutions for government agencies. They were particularly focused in the fields of national security and intelligence. The company’s founders recognized the need for advanced technology to analyze vast amounts of data efficiently and make data-driven decisions.
Research and Selection to Invest in New Technology:
Understanding the Problem: Palantir started by deeply understanding the challenges faced by government agencies in dealing with large datasets. They recognized the limitations of existing technologies in handling diverse and unstructured data sources.
Innovative Technology: They invested heavily in research and development to create their proprietary software, Palantir Gotham. Yes! We need a vendetta! This software was designed to handle large-scale data integration, analysis, and visualization.
Customization: One of Palantir’s key strengths was its ability to customize its software to meet the specific needs of different agencies. This adaptability allowed them to demonstrate value across various industries.
Data Security: Recognizing the sensitivity of the data they would handle, Palantir placed a strong emphasis on data security and compliance. Their technology was designed with robust security features to address the concerns of government clients.
Trivia:Do you know?
When Tim Berners Lee was asked for his opinion on data security, he said “Data is a precious thing and will last longer than the systems themselves.”
Palantir created compelling business cases tailored to the specific needs and concerns of government agencies and commercial clients.
They emphasized how their technology could enhance decision-making, improve efficiency, and reduce costs.
The startup highlighted how its technology aligned with the goals of enhancing national security, improving public safety, & achieving operational excellence.
Their approach to researching and selecting the right technology, coupled with their convincing business cases, has been highly successful. They have become a billion-dollar company, serving clients in various sectors, including finance, healthcare, and logistics.
Netflix: Aligning Technological Investments with Company Goals
Founded in 1997 by Reed Hastings and Marc Randolph, Netflix began as a DVD-by-mail rental service but later evolved into a global streaming entertainment platform. Today, it’s one of the world’s leading subscription-based streaming services, with millions of subscribers worldwide.
They are a prime example of how aligning technology investments with company goals can lead to tremendous success. Over the years, Netflix has continuously demonstrated the strategic importance of investing in technology to achieve its business objectives. Here’s how they convinced company leaders to invest in new technology:
Content Delivery and Streaming Quality: From the start, Netflix aimed to provide high-quality streaming content to its subscribers. So, the company invested heavily in content delivery networks (CDNs) and streaming technology to ensure a seamless & buffer-free viewing experience.
Personalization and Recommendation Algorithms: Netflix recognized the importance of personalization in retaining subscribers. They invested in sophisticated recommendation algorithms that analyze user viewing habits and preferences to suggest tailored content.
Original Content Production: As part of its goal to become a content creator in addition to a content distributor, Netflix invested heavily: In original content production. Ofcourse! That’s what retains the fleek of our favorite shows! And, this move required significant technological capabilities, including content production and distribution platforms.
Data Analytics and Viewer Insights: They leveraged data analytics to gain valuable insights into viewer behavior and content preferences. This data-driven approach helped them make informed decisions about content acquisition, production, and recommendations.
Overview of Netflix:
Netflix’s success is attributed to its strategic alignment of technology investments with the company’s overarching goals. This alignment ensured that every technological endeavor contributed to its transformation into a global streaming giant.
They played a pivotal role in shaping the standards for streaming services globally. Its practices and innovations have been emulated by other platforms in the industry.
Their extensive use of data analytics has allowed it to make data-driven decisions. It includes content recommendations, investment strategies, and customer insights, leading to improved business outcomes.
Netflix’s ability to align technology investment with company goals was instrumental in its rise to become a global entertainment leader. By consistently demonstrating how technology advancements could directly contribute to achieving strategic objectives; Netflix convinced company leaders to invest in new technology, ultimately leading to their remarkable success.
Amazon’s: Pilot Programs & Proof of Concepts
Here we have a bundle of things in hand for you to be convinced!
Amazon, founded by Jeff Bezos in 1994 as an online bookstore, evolved into one of the world’s largest e-commerce & tech-company. It has a history of leveraging innovative technology to disrupt various industries. So, let’s have a look at how testing out pilot programs convinced them to invest more on technology across industries:-
Amazon Web Services (AWS):
Goal: Amazon recognized the potential of cloud computing services.
Pilot Program: Amazon launched AWS in 2006 aos a suite of cloud computing services. AWS was initially used internally but later made available as a commercial service. It served as a proof of concept for scalable cloud computing.
The success of AWS in providing reliable and scalable cloud infrastructure convinced Amazon leaders to invest heavily in AWS. Today, AWS is a major revenue driver and a leader in the cloud computing industry.
Amazon Echo and Alexa:
Goal: Amazon aimed to create a voice-activated digital assistant and smart home ecosystem.
Pilot Program: Amazon introduced the Amazon Echo and Alexa voice assistant in 2014, allowing users to interact with their devices using voice commands. This served as a proof of concept for voice-activated technology.
The positive reception and rapid adoption of Echo and Alexa convinced Amazon leaders to invest in expanding the ecosystem. It includes developing new devices and integrating Alexa into various products and services.
Amazon Go – Cashierless Stores:
Goal: Amazon sought to revolutionize the retail experience by eliminating traditional checkout processes.
Pilot Program: Amazon opened its first Amazon Go store in 2018, which utilized computer vision and sensor technology. It allows customers to grab items and walk out without going through a cashier. This served as a proof of concept for cashierless stores.
The success of Amazon Go pilot stores convinced Amazon leaders to invest in expanding the concept to multiple locations. It demonstrates their commitment to transforming retail technology.
So, Do you see the power of it? That’s why, it’s always advised for entrepreneurs to start with a Minimum Viable Product! So that you can keep growing till you find the best for your business.
Amazon’s early pilot programs for online shopping showcased the convenience and efficiency of e-commerce. It paved the way for the company’s dominance in the online retail space.
Their willingness to experiment and invest in new technologies has not only benefited the company; But has also catalyzed innovation across various sectors, inspiring competitors to innovate and adapt.
The strategic engagement with developers through Alexa Skills Kit and Alexa Voice Service encouraged third-party innovation and expanded their ecosystem. It also solidified Amazon’s leadership in voice technology.
In each of these cases, Amazon strategically used pilot programs and proof of concept initiatives; to demonstrate the viability and benefits of new technology. These successful initiatives not only convinced company leaders to invest in further development but also positioned Amazon as a leader- In e-commerce, cloud computing, voice-activated technology, and retail innovation.
Slack Technologies: Addressing Budget and Resource Concerns
Probably the first software you installed as an employee when you joined an organization; Or the one that your employees will use in order to communicate within your organization! Honestly, it was utterly shocking to know that even the founders of slack had to mitigate investment challenges.
Yes! Afterall success in the entrepreneurial world comes with certain adversaries that you have to tackle! Well, what in life doesn’t?
Founded in 2013 by Stewart Butterfield, Eric Costello, Cal Henderson, and Serguei Mourachov, Slack started as a side project within a larger gaming company. It later pivoted into a standalone company that offers a collaboration platform for teams, which has become widely used in various industries.
Addressing Budget and Resource Concerns:
Starting Lean (Challenge): At its inception, Slack had limited financial resources and a small team.
Solution: To address budget constraints, Slack started lean by focusing on essential features and avoiding unnecessary overhead. They leveraged open-source technologies and cloud infrastructure to minimize upfront costs.
Bootstrapping (Challenge): Slack initially relied on bootstrapping, meaning it didn’t seek external funding immediately.
Solution: By bootstrapping, Slack aimed to prove the concept’s value with limited resources before seeking substantial investments. This approach allowed them to build a functional product without the need for significant external capital.
Monetization Strategy (Challenge): Initially, Slack needed to create a sustainable revenue model.
Solution: While Slack initially focused on user growth, they concurrently developed a monetization strategy. By offering a free version with paid premium features, they ensured a steady revenue stream while maintaining a competitive edge.
Slack’s ability to secure significant investment funding reflects the confidence that investors have in its technology and growth potential.
They disrupted the traditional workplace communication and collaboration software market by offering more modern and user-friendly solutions.
Also, their technology proved invaluable during the rise of remote work, providing a platform for teams to communicate & collaborate effectively.
Today, Slack is a prominent player in the workplace collaboration and communication software market. It successfully convinced company leaders, investors, and organizations of all sizes to invest in its innovative technology. They demonstrated how addressing budget constraints through resource-efficient strategies can lead to significant growth and industry disruption.
Overcoming Resistance to Change
Before any revolutionary aspect; there will always be certain resistance and fear. But that’s understandable because not all ideas are revolutionary but overcoming such barriers opens up a horizon of newer possibilities.
Overcoming resistance to change is a critical challenge for organizations when implementing new technology, processes, or strategies. Resistance can come from various sources, including employees, management, or even external stakeholders. Effectively managing and mitigating resistance to change is crucial for successful technology adoption.
Here are some key strategies and considerations:
Communication and Transparency: Communication is essential. you should explain the reasons for the change, the expected benefits, and the timeline. Address concerns and provide regular updates to keep everyone informed.
Involvement and Participation: Employees Involvement in the decision-making process can help mitigate resistance. Seek input, listen to concerns, and involve relevant stakeholders in the planning and implementation stages.
Education and Training: Offer training and resources to help employees acquire the skills and knowledge they need to adapt to the change. Ensure that training is accessible and tailored to different learning styles.
Feedback Loops: Create feedback mechanisms where employees can share their experiences, concerns, and suggestions. Use this feedback to make continuous improvements.
External Support: In some cases, seeking external support from change management consultants or experts can provide valuable insights & strategies for overcoming resistance.
Also, Having expert assistance greatly increases the probability of a startup to succeed. And, that is exactly what TheCodeWork offers!
Remember, Overcoming resistance to change is an ongoing process that requires patience, empathy, and a well-thought-out approach. Successful technology adoption relies on the ability to address concerns, engage employees, and create an environment; where change is viewed as a positive opportunity.
So, the decision to invest in new technology is not merely a technical one; it’s a strategic imperative for any organization aiming to thrive in the dynamic landscape of today’s business world. You have to transform the skepticism of company executives into a compelling urge to embrace the corporate digital transformation.
Throughout this blog, we’ve explored a comprehensive roadmap for tackling this challenge. Also, I emphasized the importance of understanding your current technology landscape, conducting thorough research, building compelling business cases, & aligning technology investments. Furthermore, we’ve delved into the critical aspect of overcoming resistance to change, recognizing that technology adoption often faces a pushback. So, as you embark on this journey to convince your company leaders to invest in new technology! Remember that it’s not just an investment in tools and systems; it’s an investment in the future success and sustainability of your company.
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