How technology makes us obsolete and the challenge to your online business
Created on Thursday, 14 April 2011 19:21 Published Date Hits: 222
The idea that technological advances designed to make things better, faster and more cost-effective in the wild ecosystem of the global economy have always had the impact of a meteor strike the fallout of which has challenged the dinosaurs of the industry.
Video challenged the cinemas (until they learnt to adapt and provide a better overall experience), CDs challenged the music industry (which was so wedded to its singles-release-followed-by-an-album model), DVDs challenged TV and the internet challenges just about everybody, all the time. If change was a constant which became apparent only in retrospect, before, in the age of the web change is an imperative. Those who fail to understand their customers, the changing landscape and the way to take their product or service forward, will surely end up on the growing dust heap of dinosaur carcasses.
Blockbuster Videos is a case in point. The company grew in the DVD craze at the beginning of this century and used its aggressive expansion strategy to copy the Wall-Mart approach of getting into an area and accepting losses which would be offset by its other stores until all the local competition had been driven into bankruptcy.
What it failed to take into account, it would seem, is the rapid advance in delivery technology which now makes video delivery a seamless extension of both wired and wireless devices. Blockbuster, it would appear, is ready to go into bankruptcy itself unable to any longer compete with the myriad internet start-ups snapping at its market share.
The obvious lesson learnt here is adapt or die, that’s neither new nor revolutionary, but there is another one which is so fundamental that it is often overlooked: “Listen to your customers and understand their needs”. Arguably Blockbuster did just that when it launched its competitive, professional, DVD rental service offering low prices and a greater selection than anyone else. Then, having done that, it promptly forgot it and rested on its laurels. It is now paying the price of that grave error.
In the 21st century the keyword is fluidity. Fluidity in services, products and job opportunities. Just as no one today expects to be doing the same job all their life so does no one expect to see a company offer the same product or service without changing, year after year. If that does happen it is so rare that it is worth of our notice because it will soon die out (as is the case with Blockbuster).
Again, this is no rocket science. In the 21st century however change has not only become the norm but it has also accelerated to the point that it is obvious now not just in retrospect. If you are working online then already, right now, there are changes afoot which will make you obsolete and there are start ups planning to take your market share away. The only way to stay ahead of the game is to do what they do: constantly search, research, question and develop. Think of it a little like a long-distance race. If you are at the head of the pack those behind you are gunning for you. If you set into a comfortable pace they will run their strategy, catch-up with you, challenge you and, eventually, overtake you. Run at the limit of their ability (and yours) and just catching up with you will take everything they have. Beating you will require a far greater effort than most would be capable of.
Now that you know this get thinking.
