How to Build up New Technology-based Business Models

You’ll get a lot of technology-based business model advice. “Switch to blockchain technology, it shall replace the internet!” or “Hey, metaverse has mighty potential. Put your bets!!”

Of all the advice floating around, your favorite should be knowing not every technology is meant to grow your business.

Yes! There’s a whole stream of shiny things in the market. But what’s important is to not get carried away without getting into the nuances of technology.

Apple, Amazon, or Volvo didn’t build technology-based business models for the sake of the technology. These companies first

• assessed the emerging technologies
• determined the implication of the technology on the company and customers

Check out how Apple got the best out of emerging technologies.

Two things you want to know about early or late adoption

You have certain degrees of early adoption or first-mover advantage. But unless you understand how technology is going to impact your business and people around, the first-mover advantage won’t have many advantages technically.

So you don’t want to be the benchmark of “what shouldn’t be done” in the industry.

Second, turning a blind eye to any technology and waiting for other players to execute the technology-driven business models may make the market more competitive for you. Maybe you wanted them to be the guinea pigs. We get you, but what if their experimental models succeed?

In one of the digital transformation consulting conferences, Nicklas Bergman, a tech speaker and investor said

“Whatever your approach is— don’t ignore it. The minimum you can do is review the technology and how it influences the business. The worst response would be to not consider any rising technology at all.”

But then how do you use new technologies to create disrupting business models? Let’s find it out.

5 questions to build technology-based business models

You can build technology-oriented business models by asking yourself a few simple questions.

Question 1: Can technology become part of your culture?

If you want any technology to work in your favor, determine how easy it is for you to blend in with your business. Or will your employees buy into it? And most important of all— how does it affect the user experience?

It’s more or less like analyzing the potential of technology in your business along with how it has affected the business in the same domain.

3 ways to determine if the technology can become a part of your culture

• The degree to which the emerging technology will change customer’s life
• Your history of successfully adapting any technology
• Identifying if the technology is user-friendly and flexible

Question 2: Can technology break virtually or even physically new grounds?

Technology opens the world for consumers. They can make international buying decisions without being restricted. Similarly, it also makes your young company accessible to the massive marketplace.

You can penetrate the new markets and scale in a short time. Ask yourself if it can break the new grounds.

If you use the right set of technology toolkits… and if you delve into the market space with international research intent— you can scale your business more convincingly.

Layering technology over your business model lets you convert expansion strategies. You’re likely to break new grounds when you have looked into how technology can seep into the market.

Question 3: Can you make your business stand out?

You’ve researched the technology bit and how it fits your culture. But the most challenging part is execution. How do you set up your store, or business, or brand that’s technology-based? It’s a challenge in itself.

At this point, you do competitors’ gap analysis. No, you’re not copying them. You’re simply creating a model that has fewer gaps than your competition.

So you find out the technology your nemesis in the market is using. And you also find out how they utilize the new technology you want to ride on.

Let’s say your competition claims using a secure eCommerce channel. So you get into the crux of the matter and determine if their virtual stores or businesses are truly safe. You find out the security caveats in their stores and propose better and more secure solutions using blockchain.

This principle works with any business, any niche, and any domain. Ask yourself how you can use the particular technology to stand out. The issue with technology is that it doesn’t manifest into multiple use-cases.

You have to extract the best out of them. No one knew taming a lion at one point in history. But someone showed the use case in the circus.

Question 4: What sort of operations do you want to adopt?

Look! You can’t have a monopoly over technology-driven business models. Someday, the market is going to be overcrowded. Then the thing that separates you from competitions will be the operations.

You’d want to use technology to make operations the key differentiator in the long run. For example, one good way to run your business model is to give consumers more choices and control.

And that’s going to happen— whether you do it or not! The democratization of the internet and technological expansion is giving consumers a lot of choices.

So ask yourself if your operations appeal to consumers’ demands. Let’s say consumers have gradually started to worry about their data. Are you one of those businesses that provide transparent business operations?

You’ll generate more loyal customers than any of your programs ever could.

Perfect your tech-based business model

Incorporating technology in your business is not enough. You also have to

• get a digital-savvy leader to lead the pack. It’s always advisable to have a tech co-founder if you’re planning to disrupt the industry with technology
• stack resources and capabilities for your employees. They’ll ultimately ensure how your business model gels up with the technology
• Collaborate more and think of customer centricity as you transform your business. It also doesn’t take away the need of taking calculated risks.

Every change you make in the business model should be well thought out. Think through the implementation challenges and innovative solutions. But don’t forget you’re on a mission to build credibility among customers. It should stand still!