Technology evolves constantly; it never stops. Business leaders must proactively embrace continuous technology adoption across all their products. But why does this have such a significant influence on business growth?
In recent years, companies have invested, or wasted, thousands of dollars in technologies and developments aimed at optimizing their processes and increasing efficiency. But they have also overlooked the most important lever: the continuous adoption of technology as a key driver of business growth.
It’s important to clarify that adopting technology doesn’t just mean learning to use new tools. It also involves strategically integrating them into everyday processes to maximize their impact. Leveraging them knowledgeably to create optimal change.
However, the outlook is concerning. Especially today, when technology is advancing quickly. Of course, some companies are open to continuous progress. But there are also others. Many of them, that don’t want to take that step or feel afraid.
It’s common to hear arguments like: “We’re comfortable with the technology we have,” “We’ve always done it this way,” or “The technology we use works fine.” These responses are typical of departments that fear change, but failing to update can be a serious roadblock to growth. That’s why change management should be a fundamental part of any business strategy.
These comments are clear signs of a lack of willingness to change. They indicate that these companies are falling behind. According to a PwC report, 61% of companies that don’t invest in technological innovation risk losing competitiveness and eventually disappearing from the market.
Such arguments are often heard in departments resistant to change. It’s relatively normal, since they don’t feel prepared to face it. This is why change management should be an essential element for every company. It could help mitigate many problems in the future.
A case that illustrates how it slows business growth
To better understand how continuous technology adoption can affect business growth, it’s helpful to look at a practical case that illustrates the consequences of failing to keep up with innovations.
Through a concrete example, we want to highlight how the lack of technological updates jeopardizes operational efficiency and can even lead a company to lose its competitive edge.
Failure to continuously adopt technology can be the end
Let’s imagine the following hypothetical situation. Toys&Toys is a family-owned business. For over 20 years, it has been selling electronic toys in brick-and-mortar stores.
Although their products are popular, they’ve been operating with outdated inventory management systems and manual processes. In recent years, the company has avoided investing in new technologies.
The leaders of this company have not considered that processes today have been digitized, saving many entrepreneurs time and money. As a result, the company is beginning to face serious issues.
Their inventory systems are no longer able to handle the growing demand. This leads to frequent stockouts and order errors. Meanwhile, their competitors, who adopted advanced e-commerce platforms and data analytics tools, are offering a personalized shopping experience, along with faster, more customized shipping. They’re gaining market share.
Despite customer complaints, the company continues to cling to its traditional methods. It’s falling further behind, with its business model limited to physical sales, while consumers opt for more modern alternatives.
In an attempt to catch up, the company decides to implement a cloud-based inventory management system. But the lack of a planned transition and internal resistance to technological change leads to a failed implementation.
The process is disorganized, which only increases the operational chaos and causes even more frustration for both employees and customers. Quite serious, isn’t it? But the truth is, there are thousands of cases like this in the real world.
The lack of focus and openness is very serious
This scenario clearly shows the importance of continuously adopting technology. By failing to do so, the company not only fell behind its competitors but also began facing problems that negatively impacted its growth and long-term viability.
The lack of a proactive approach to technology adoption can result in a loss of competitiveness—and eventually, the closure of the business. A scenario no entrepreneur would want to experience.
Alarming statistics: what happens when technology isn’t adopted?
There are alarming data points that emphasize the importance of continuous technology adoption for business growth.
According to a McKinsey report, 45% of companies that don’t continuously adopt technology fail to meet their long-term productivity goals.
Forrester revealed that companies that don’t invest in digital transformation are 50% more likely to lose market share to their competitors.
On the other hand, according to the Global Innovation Index, companies that adopt emerging technologies experience revenue growth that’s 30% higher compared to those that don’t.
These figures clearly demonstrate that technology adoption significantly increases the likelihood of gaining a competitive advantage. It’s a necessity to ensure business growth and survival in the market.
Why is it critical for business growth?
Continuous technology adoption is essential to ensure a company’s ability to innovate and adapt to changes. Technological tools, in addition to improving operational efficiency, also enable businesses to:
Identify new market opportunities: through technologies like Artificial Intelligence and data analytics, companies can discover customer behavior patterns and anticipate consumer trends.
Personalize the customer experience: advanced CRM tools and e-commerce platforms allow businesses to offer tailored products and services, improving customer satisfaction and loyalty.
Optimize the supply chain: with technologies like IoT (Internet of Things) and cloud-based management systems, businesses can better manage their resources and reduce operational costs.
Final thought: is it or is it not a driver of business growth?
It’s clear that continuous technology adoption is not just about keeping up with trends; it’s a vital strategy for sustained business growth.
Companies that don’t adopt new technologies risk becoming obsolete and losing their competitive edge. It’s no secret that digitalization is advancing rapidly. The ability to adapt and leverage technological innovations is what will make the difference between success and failure.
Going back to the Toys&Toys case, we see how the lack of continuous technology adoption left the company vulnerable to more agile, digital competitors. Smarter competitors.
As business leaders, we must constantly ask ourselves: Are we adopting the necessary technologies to ensure our company’s long-term growth?
Continuous technology adoption is not just an investment in tools; it’s an investment in the future of our organization. Had Toys&Toys integrated technologies strategically and continuously, its story could have been very different.
Now is the time to act and implement a proactive technology strategy that drives growth and ensures success in the global market.
The question is: Are you ready to take the next step toward innovation and growth? Or will you let your company follow the same stagnation path as Toys&Toys?
At Interfaz, we know that the second option isn’t what you truly want. That’s why we offer a unique approach through our Synergic Innovation Model. This model is based on innovating strategically, aligning technology with your business objectives to maximize its impact and results.
