Business Trends in the Tech Industry to Look Out For
The way we do business is always changing, always evolving. With these changes come new ideas and different ways to do things. In the tech industry, we can see five clear trends developing. They are collaboration in manufacturing, product customization, alternative financing, freelance engineering, and incremental innovation.
Collaboration in Manufacturing
One of the biggest business trends in the tech industry is collaboration, specifically that which relates to product manufacturing. Companies like Apple, Huawei, and Samsung don’t make every single component in their phones and TVs. They don’t even make the majority of them. Rather, they outsource their manufacturing to electronics suppliers while focusing on product design, features, and marketing.
For example, one company will concentrate on how a product looks outside while another will handle interior connections, PCB prototypes, and assembly. This is not only beneficial in terms of cost but also faster and more efficient.
For any business to succeed, it is not enough to offer a highly-specialized, superior product. In years past, companies in countries like Japan and Germany would differentiate themselves from the competition through quality. When people heard names like Sony, Panasonic, or BMW, they would immediately associate these brands with durable, first-rate products.
It is not the case anymore. With globalization and technological development, a product made in the US is no longer much better than one made in Korea. Instead, differences in quality have become negligible. As a result, customization is now more important than ever. The client doesn’t want a one-size-fits-all solution. They want a particular product or service matching a particular individual need.
It is no secret that research and development of new technologies is an expensive proposition. Whether a company is big or small, innovation comes at a price. More often than not, smaller tech enterprises have nowhere near the amount of money required to turn their ideas into reality.
Yet, there are plenty of financing opportunities they can look into. Besides the regular bank loans and venture capital, they can explore peer-to-peer borrowing schemes and finance through inventory and existing assets. As such, having little cash is no longer a major roadblock in their road to success.
The great American industrialist Henry Ford once said, “the only real security that a man will have in this world is a reserve of knowledge, experience, and ability.” It is certainly true in all areas of business, but more so in those related to technology. Hence, highly-qualified individuals are not tying themselves to one particular organization. Instead, they work on per-project bases with various companies, which leads to better income and further development of existing skills.
For businesses, hiring expert freelancers is also positive as they don’t have to spend so much money on recruitment costs. Besides, they can find the person most suitable for each project from a vast talent pool.
Incremental innovation is about gradual improvement, making small changes that enhance the customer experience. For tech businesses, creating new products every two to three years is virtually impossible to do.
On the other hand, increasing the battery life of a phone from 24 hours to 36 or making a screen half an inch bigger than its predecessor is much more manageable. The result is a product that is both easy to make and appears novel to the consumer.
As technology continues to develop, so does its influence in business. For corporations, this means a different approach to how they used to do things. It also means being flexible and open-minded. Without doing so, they will not only struggle to find success but most likely find themselves far behind the competition or even out of business.