Every Company a Technology Company? Some Lessons They Need to Absorb

Technology is Everyone’s Business Now

The New Code of Conduct for Mainstream Companies

Many business leaders now proclaim their companies are technology companies. And, by extension, data companies. But technology companies live by a different code of conduct that mainstream companies have to learn.

The Fast-Paced World of Technology

Technology companies play in intense, fast-paced markets in which their fortunes can change in a day. They need to be extremely agile and open to rapid, if not instant, shifts in their business models and product lines. Witness DeepSeek’s entry into the market a couple of weeks back, with its relatively cheaply produced generative AI service, which sent multi-billion-dollar AI companies scrambling. Smaller technology companies, in the meantime, risk seeing their investments thrown out the window by the machinations of foundational technology providers.

Growing Expectations

Over the years, I spoke to many tech company CEOs, and along with keeping up with blazingly-fast-changing markets, they expressed a need to show growth topping at least 10% a year – anything less was essentially falling behind.

The Lessons for Mainstream Companies

Andrew McAfee, co-founder and co-director of MIT’s Initiative for the Digital Economy, explored the lessons that mainstream-to-technology organizations need to absorb. "In financial services, there are a lot of companies that are apparently technology companies now," he said. "Investment banks, commercial banks, insurance companies, also in manufacturing and particularly in auto manufacturing, there seem to be a lot of technology companies now, both final car manufacturers and parts suppliers."

The Shift in Investment

For the most part, these companies qualify as technology companies, he added. As proof, follow the money. "CEO after CEO is realizing that the way they’re spending their investment money is shifting very very quickly," from standard goods and materials to digital technologies.

The New Way of Doing Business

Back in about 2007, US companies were spending about $1.70 on non-digital stuff for every dollar they spent on digital stuff. Now, the situation is actually just about reversed. Companies are spending about $1.60 on digital stuff for every dollar they spend on non-digital stuff.

The Pressure to Innovate and Adapt

Increasingly, when CEOs claim they run a technology company, "they realize things are different, and they realize that the pressure to innovate, remain agile, and continue to execute at a high level. That pressure is actually getting more and more intense over time."

Running a Technology Company Differently

Accordingly, "companies that are technology companies need to be managed differently," McAfee continued. "Because of that intense competition for so long, a bunch of geeks have flat figured out a better way to run a company."

Agility and the Agile Movement

At the top of the list is running agile. While electric vehicle manufacturers, for example, are essentially building robots on wheels, they are still frustrated by software issues. Conversely, Tesla tore open through this issue in 2018 when it began over-the-air software fixes within days of identifying problems or new features, he illustrated.

The Agile Movement

The agile movement was launched with the issuing of the Agile Manifesto in 2001, and the key principle is "our highest priority is to satisfy the customer through early and continuous delivery of valuable software." "In other words, don’t just wait till the end to deliver what you’ve got to the customer. Keep doing it as often as possible throughout the project."

Conclusion

In conclusion, technology is everyone’s business now. Mainstream companies need to learn to adapt to the fast-paced world of technology, where innovation, agility, and evidence-based decision-making are key to success.

FAQs

• What is the new code of conduct for mainstream companies?
  Technology companies live by a different code of conduct that mainstream companies have to learn.
• What are the key principles of the agile movement?
  The key principle is to satisfy the customer through early and continuous delivery of valuable software.
• How do technology companies manage to adapt to rapid changes in their business models and product lines?
  They are extremely agile and open to rapid, if not instant, shifts in their business models and product lines.