May 2, 2014

Technology – a matter of life and death?

Kia Haring

Head of Global Communications, Tieto

In the process of making companies leaner, cost-cutting is often seen as a primary solution. As many as 55 per cent of the executives and managers who desire business transformation say that their main drivers are the need to increase efficiency and lower company costs. Often, the prime driver of business transformation is cutting costs. This is often necessary, but not sufficient enough by itself.

So, how can companies become even leaner? Technology is not the solitary answer, and neither is efficiency. The real treasure of business transformation is innovation. In order for companies to become leaders in their own business, they have to accept and adopt new technologies as business drivers and use them in an innovative way. Furthermore, business models should be re-evaluated frequently enough to realize the need for change.

Improved customer relationships are considered the most important result of new technology. The second most important one is organizational efficiency, as stated by a third of the executives interviewed in our study. As we can see, the issues that are considered results of new technology are actually very essential issues to business. So in that sense, it could be said that technology is a matter of a business’s life and death.

Not all companies think of themselves as technology-based companies. That's all about to change, because in the near future, companies that weren’t founded with technology in mind should consider themselves as such. Technology is integral and will be crucial to the way most companies do business in the very near future. As technology keeps on changing, so should your company’s business model.

What's your opinion? How is the evolution of technology about to change the way business is one? Please add your voice to the conversation by commenting below.

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