Technology first-movers enjoy greater growth
A recent study from the Harvard Business Review has uncovered the considerable differences that exist between companies as they move into new technologies.
The report focussed around a survey of companies and their attitudes towards new processes within their operations. The survey respondents were fairly evenly split into three between companies that identified as pioneers who embrace digital technology, followers who rapidly catch up and cautious users who struggle to adopt new systems.
Across all industries, pioneers were seen as having the greatest growth among all of the sectors. Among companies in this group, 65 per cent reported that they have launched new products in the last three years, compared to an average rate of 54 per cent across all businesses.
The survey’s respondents also viewed technology in a positive light. Fifty-seven per cent of those surveyed reported that they find IT investment to be a source of future growth in their business.
Pioneering companies are also among the most likely to have a business model that has undergone significant changes. Among companies in this sector, 57 per cent are seeing rapid changes to their business model.
Among all respondents, there was a strong sentiment too that legacy technology was becoming an impediment to growth. Among the companies surveyed, 34 per cent are being held back by legacy technology that is getting in the way of their operations.
With fast-moving companies enjoying a clear advantage over their competition, it is important that firms take the right steps to resolve these problems before they become serious issues. One way to help overcome older practices that are beginning to hamper company growth is to invest in business management software. Not only can this help disrupt internal practices, it can also grow the scope of your business.