"Technology doesn’t transform markets, business models do"
Updated: Sep 24, 2018
As an avid reader and follower of Medium I get a lot of benefit from the myriad of interesting and thought provoking articles they publish from an equally diverse range of authors.
The following article published by Fast Company entitled We Need Breakthrough Business Models, Not Breakthrough Technology; technology doesn't transform markets, business models do... really caught my eye.
A good part of my work sees me working around fintech startups looking to enter the market. All are worthy and those launching them are driven by a genuine desire to harness the latest tech to drive real step-change improvements. It is a pleasure to work with them, share their ambitions and help shape their propositions. However for many this journey doesn't always start from the best place. Too many fall into the trap of seeing the smart-tech they're developing as the superhero in their enterprise. They fail to see that it is actually the combination of fully developing the business model first, supported by the tech that delivers on it, that becomes the real longterm foundation of sustainability.
This article perfectly portrays this, encapsulated by its reference to the now often quoted Gartner Hype Cycle. Quoting from the article, they surmise that "We favour technologies over business models, imbibing the Kool-Aid a long time before the hard slog to turn the concept into something customers will actually buy has begun."
They go on to conclude that"a good deal of effort is still needed to turn most emerging technologies into sustainable wealth creation engines. In our experience, anyone who still wants to kick off a discussion about long-term wealth creation by focusing on the business case for addressing the world’s biggest unmet needs is likely to find themselves paddling along well behind the next big wave, very likely missing it entirely. By contrast, tomorrow’s market leaders are the ones already sketching a new business model on the proverbial napkin. Business models are what connects a technology’s potential with real market needs and consumer demand."
It's a fascinating article and I'd urge anyone thinking of starting their own journey to read the full article. It could be the best ten minutes you invest!