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Business Article Review: “The ‘Right Tech, Wrong Time’ Syndrome
Business Article Review:
“The ‘Right Tech, Wrong Time’ Syndrome.” We have become quite savvy in determining whether a new technological innovation poses a threat to the existing technology offered by our businesses, industries and public sector institutions, but we have very poor tools for determining when we should actually make the transition to a new technology. (BY RON ADNER AND RAHUL KAPOOR, HARVARD BUSINESS REVIEW, NOVEMBER 2016)
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TEXT BY JOSEFINA DELIMA
The number-one fear is to miss the opportunity, (e.g. the case of Blockbuster, where DVD film rentals became obsolete due to “video stream ing”). The number-two fear is to make the transition too soon, and exhaust our finances and our research and development resources before we can launch our new technology on the market (e.g. cloud-based storage was incumbent on broadband availability and on-line security software, and this resulted in delays thereby tying up capital and months of research). There is a fine line between being too early or too late, and to understand why, we must look at two different scenarios. Firstly, we must look, not just at the technology itself, but also at the broader conditions and variables that form the necessary background that supports the new technology. Secondly, we must also look at the variables between the existing networks and background settings supporting the old technol ogy, alongside those supporting the new technology. That is to say, old technologies can often be upgraded, so should we consider anything new in the first place?
When we are assessing a new technology’s potential for success, we drill down on its abil ity to satisfy customers and generate a good
return on investment for its producers. Crucially, this result will hold only if the new technology’s background settings support it in all aspects. For example, when a new type of light bulb is introduced to the market, it will have a quick and successful implementation as light bulb sockets are standardized worldwide. However, when considering the example of HDTV first being introduced to the market in the 1980s, where new HD cameras, new broadcasting standards and different postproduction processes were also needed, the HDTVs were ready to be marketed long ago but the supporting factors surrounding its use were not ready. This was a great idea at the wrong time. Old technologies enjoy an estab lished background with existing pre-established settings. But a new technology needs to consider not only its required platform, but also whether the old technology could be upgraded thus delay ing the ROI on the new technology.
Research results show a success rate of 48% when the introduction of a new technology only takes into consideration the new product’s market, price, performance, rivals, existing tenure. But when consideration is also given to pre-established settings, environment, networks, rival upgrades, and strengths, the percentage for possible success rises to 82%. The overall environment must be taken into account from the early planning stages. Take for example electric cars. This great new idea was slow to kick-start as there were scarcely any re-charging stations. So until electric re-charging stations are as plen tiful as gas stations, hybrid cars (electric and/or gas) will prevail.
To consider the interplay between these forces, four possible scenarios exist: Creative Destruction: When the emergence and establishment of a new technology is not very challenging and quite easy to install without much need for changes in the existing technolog ical environment. At the same time, the possibility for the extension and continued use of the old technology is time consuming and difficult to upgrade. Then the new technology will gain market dominance in a short period of time.
Robust Resilience: When the new technology’s required infrastructure is very complicated, costly and time consuming, causing it to have a deferred time span for success. In addition, the future possibilities for the old technology’s continued use are readily available and can easily and quickly be improved and extended, then this new technology will gain market dominance slowly and gradually. Robust Coexistence: When the new technolo gy’s conditions and market readiness challenges are minimal and the old technology’s lifespan can be readily extended, then both can exist simultaneously. Consumers benefit the most from this scenario. Illusion of Resilience: When the new technol ogy’s background needs are complicated, costly and time consuming, and the old technology’s background needs can simply and easily be extended, the time needed for implementation gives the illusion that the old technology is resilient.
THE COST OF “WHEN” As automation and digitization transform the world, established players are losing out to smart upstarts, for example: department stores and shopping malls are loosing business to e-com merce and online purchases; taxicabs to Uber; and HBO and TNT to Netflix and streaming. Yet CEOs find it hard to walk away from an estab lished well-working business with established processes and happy customers. The main point is that the pace of substitution is determined by how quickly the new technology’s challenges can be resolved, and whether the old technology’s continued usage can easily be extended. It all comes down to the question of WHEN investors should introduce new technology. It’s simply a question of timing.
Why Requesting the Help of an Embassy or Consulate General Makes Sense
When thinking of expanding your business beyond our shores, the big question is, where do you start? As islands in the Caribbean we are de pendent upon regional cooperation. The Dutch Kingdom embassies in the region are there to help Curaçao businesses with questions related to export or trade. The embassies are part of the Kingdom Ministry of Foreign Affairs and working for the whole of the Kingdom: NL, Aruba, Curaçao, St. Maarten, Bonaire, St. Eustatius and Saba.
The Dutch Ministry of Foreign Affairs has Caribbean regional embassies in Havana, St. Domingo, Panama, Caracas and Port of Spain, and the Consulate General, (CG), in Miami. They help support regional cooperation between Curaçao companies and countries within the region. They work closely together with the Curaçao Ministry of General Affairs, (MINAZ)/ Directorate for Foreign Relations, (DBB), the Ministry
of Economic Development, (MEO), The Curaçao Chamber of Commerce and other organizations such as CINEX and CTB. The Dutch embassy building in Havana is currently undergoing renovations to cre ate an Orange business hub where entrepreneurs who are Dutch citizens, (upon written request), can work there when on a business visit to Cuba. The reason for this facility is because of the limited access to good temporary workspaces with internet access in Cuba. Because Cuba has a state-orientated economy, having the services of the embassy staff around the corner, is very helpful.
Embassies and CG’s can help Dutch entrepreneurs with a number of economi cally related questions such as: • Market information: trade related ques tions and sector information. • Promotional activities: matchmaking, expos, networking events, trade fairs. • Troubleshooting: when you encounter any specific problems when doing busi ness in any given country. • Reports on doing business in the coun try: such as macro economic information, government policies, SWOT analyses (strengths, weaknesses, oppor tunities and threats), etc.
Diplomatic Affairs in the Region
Source: Presentation of the Regional Envoy for the Caribbean of the Dutch Ministry of Foreign Affairs, Mrs. Liesbeth Mol at the business event “Connecting the Dots” organized by the Dutch Representation in Curaçao (VNW).
There is a worldwide diplomatic network of 150 embassies and Consulate Generals, (CGs), of fering business opportunities for companies in the Dutch Kingdom. The functions carried out at embassies and consulates are very similar, so you can approach them for the same requests. In addition, there are the Honorary Consuls, (HCs), in countries where we don’t have embassies or a Consulate General. HCs serve the interest of the Kingdom upon request. Usually an HC is some one from the local business community. “I have to say on the islands in the Eastern Caribbean we are lucky to have a great group of loyal and helpful HCs that know our Kingdom well,” says Mrs. Mol. The Caribbean region has six diplomatic mis sions in Panama, Port of Spain, St. Domingo, Miami, Caracas and Havana. There are of course more embassies that are part of the wider re gion, for instance Colombia, Costa Rica, and Mexico. All the embassies in this region are at the service of citizens of the Dutch Caribbean. They are a tremendous resource for advice, and can provide Curaçao businesses with an under standing of the ins and outs of the country in which they are based.
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