How CIO’s can define the right strategy and time to implement new technologies

A new technology does more than just present more competition for an old technology. It presents a different type of competition whose value proposition does not fully overlap with the old technology offer, and that can disrupt businesses drastically.

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  • If your company is introducing a potentially transformative innovation, the market will not realize its full value until all bottlenecks in the ecosystem are properly solved. In that scenario, CIOs must focus much more on solving the most critical issues in the ecosystem rather than improving or perfecting the technology itself.
  • If your company’s business is being threatened by a new emerging technology, CIOs must analyze the ecosystem that supports it more deeply rather than just the technology itself. The greater the ecosystem-emergence challenge for the new technology, the more time you have to strengthen your own performance.
  • If your company chooses to strengthen the performance of an old technology, CIOs must realize that it can just as easily mean improving aspects of the ecosystem that supports it.
  • Whenever an old technology’s performance improves, the performance threshold for the new technology must improve as well, creating a very positive market scenario for consumers.
  • CIO’s should promote executive conversations focusing always on two topics: in which scenario is our industry in and what are the implications for your company’s resource allocation and other strategic choices rather then overhauling or replacing old technologies

Going a bit further on the dynamics of this change, every innovating company or professional targets being in a scenario of Creative Replacement, but there are different ways reach this stage. A hypothesis that predicts a transition path from a Hefty Coexistence to an Illusive Resilience and then finally to the target Creative Replacement situation is just expecting the exhaustion of the old technology. For a company that wants to innovate, that would mean focusing on aligning the new technology ecosystem without much concern for extending a performance advantage. In contrast, a predicted path from Hefty Coexistence to Hefty Resilience and then to the Creative Replacement situation would mean competing against an improving the old technology ecosystem. In this hypothesis the innovating company needs to continually elevate its performance while it simultaneously adjusts and fixes the ecosystem.

The current market situation shows that just a few modern companies are not being affected by the urgency of innovation, but when it comes to strategizing for a innovational revolution, the question of “whether” often drowns out the question of “when.” Unfortunately, getting the first question right but not the focusing on getting the second question right can be extremely disastrous.

Implementing the right tech, at the right market, but at the wrong time is a nightmare for any company targeting to innovate a market or a niche. Running a deeper analysis of the enabling contexts of rival technologies, such as understanding if the new ecosystem is fully operational to support a new technology, or if the old ecosystem still has potential and room for improvements may better clarify on the question of the timing to deploy it, and it’s certain that deploying ii in a better timing will significantly improve the efficiency, effectiveness and market value perception of the innovation efforts that are so critical for any company’s survival and success. 

Copyright © 2016 IDG Communications, Inc.

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