XTC—Examining the Change: Changing the Relationship with Risk
In our previous two posts we’ve explored the dynamic of ingenuity over innovation, and ways to activate customers as influencers. But one of the more prevalent trends in tech marketing and PR this year is the extent to which tech marketers are targeting specific vertical markets.
What’s interesting is that many of these verticals are traditionally risk-averse, such as health care, automotive, and manufacturing. It’s usually because they find themselves caught between opposing mandates such as regulatory concerns, public safety, security and financial risk on the one hand, and the need to deal with massive disruptions from new business models and competitors on the other. And if these traditionally conservative industries don’t embrace the risks that technology represents, they’re in trouble.
Gartner calls this “Digital Business Advantage,” and in a recent report, they make some fairly startling predictions. By 2017 …
- 20% of all market leaders will lose their dominant position to a company founded after the year 2000 because of a lack of digital business advantage
- 25% of all companies will lose significant market share because of “digital business incompetence”
- Corporate strategists will begin conducting daily competitive scans because of a loss of sustainable competitive advantage
In other words, embracing technology risk is no longer a luxury. Fast followers have to become fast evolvers, or else they risk extinction.
But what if these organizations could change their relationship with risk? What if they could apply that same calculating conservatism they usually apply to examining technology ROI and instead calculate a different cost—the cost of doing nothing? Certainly, it’s often difficult to predict the hard ROI from deploying a relatively new and unproven technology. But it’s much easier to predict the impact of not changing course when new competitors are emerging and already starting to eat away at your market position.
And what if companies began to count their organizational learning curve as a corporate asset, as well? That’s the other untold story in technology today—the fact that in many cases, we are still learning the appropriate use of these new technologies. But it takes time to figure out the best possible uses for a new technology, and all too often companies and industries assume that the first few uses are the only uses. And this leads to a gross undervaluing of ROI. But in a world where change is the only constant, it’s the fastest learning curve that wins. Where’s the ROI equation for that?
That’s why today many progressive companies are re-examining their relationship with risk. CIOs and CTOs are beginning to accept that the downside of innovation is nothing in comparison to the downside of not evolving. And progressive tech marketers are beginning to engage customers in co-creating value propositions. Because a great technology in the hands of an ingenious customer probably has applications far beyond what the vendor ever had in mind.
Next week, we’ll look at engineering for expectations, and embracing human assumptions as a core design principle for your tech PR campaign.