Business risks are defined as the chances of a commercial business to not achieve its financial goals. You may have heard, entrepreneurs are business risk-takers. But the truth is, embracing a successful business venture needs a passionate commitment and well-planned execution. Once in a blue moon, success is a matter of luck. Mostly, it’s about being smart about transformation and brave pursuit of excellence.
When our clients pull the trigger on technology, they often ask us about the best-suited technologies to make their business faster, efficient, and better. We tell you what we tell them, there are some pitfalls to identify and avoid while implementing technology, otherwise, getting it wrong will mean big trouble.
Here are some tactics to reduce the exposure to business risks when investing in technology.
Choosing the right technology
Taking the plunge in technology may seem as a holistic solution to many of the issues a business might be facing. No doubt, AI chatbots automate queries and provide 24/7 instant support. But it may not be the right fit for your business if you have to engage in detailed and complicated conversations with your consumers. Moreover, new advancements are hitting the technology market on a daily basis.
So, how do you choose the right technology for your business?
Deep dive into the Two Business Ps – Problems and Processes
Before planning an ideal technological solution for your business, it is essential to understand your issues and procedures. Consider, you invested a lot in a perfect solution but your employees have to switch back and forth to the new and old system since the new one does not contain all fundamental aspects needed by the business. Isn’t that a failure?
Research, Research and Research
Carry out plenty of online research and visit the employees and managers who will have the most impact of technological transformation. Ask them their needs and tell them to brainstorm ideas for the software.
Integration with Current Systems
It is crucial to make sure that the new technology can be easily integrated with your existing systems. For eg, in case the new system requires wireless connection, it will be a good practice to already have a reliable wireless infrastructure.
Explore All Options For Investment
Technology has widely evolved with the passage of time. This advancement demands businesses to grow, shift and adapt technology in order to gain a competitive edge in today’s swiftly progressing world. Here are a few types of famous innovations rapidly attracting corporations.
- Artificial Intelligence
Artificial Intelligence deals with building intelligent machines to perform tasks that traditionally required human intelligence. AI is already widely used in business applications, involving fraud detection, data analytics, automation, customer support via AI chatbots, product recommendation, and natural language processing.
Chinese company Alibaba leverages Artificial Intelligence to predict what customers might like to buy.
Facebook uses AI to include structure to its unstructured data. The big giant utilizes DeepText to automatically understand and anticipate posted content meaning.
Blockchain has gained much hype as being the technology behind Bitcoin. But in reality, it is more than an alternative payment method. Blockchain is a time-stamped block of unyielding records of data that is maintained by a group of computer devices, not owned by any single individual. As data on the blockchain is stored in blocks, this data is reliable, immutable, transparent and secure.
Walmart, a popular multinational retail corporation, uses blockchain’s framework called Hyperledger Fabric to trace the food supply chain.
- Internet of Things
The Internet of Things refers to a network of computer devices, connected with each other and the internet. This network is embedded in everyday objects to allow them to receive and send data. By connecting IoT with other innovative technologies like AI, VR, AR, and blockchain, a business can unlock initial untapped revenue, improve business insights and customer experience, reduce costs, track assets, and boost efficiency.
- Virtual Reality
Virtual Reality avails computer technology to create a three-dimensional environment. By stimulating several senses like vision, hearing, and touch, VR immerses users in a 3D world. The user believes himself to be a part of the virtual world and is able to manipulate and perform tasks there. The AR market is expected to rise to over $192 billion by 2022.
Ecommerce business can benefit from VR by offering its customers a more immersive and shopping focused experience, allowing them to test the product in the virtual world. Other businesses can receive robust data that can be used to increase customer loyalty by improving product quality.
A well-known car brand, Volvo, used virtual reality for its massive marketing campaign known as #virtual reality to sell seven cars per minute exclusively on their website. They offered users to indulge in a spectacular mountain drive.
Upgrade Business Processes with Technology
Sometimes, even when a company invests in technology, the improvement rate is zero. This happens when no amendments are made into the business process that uses the technology and a flawed business process is automated. For example, if a business process which has flaws is just injected with technology and is not designed to solve old problems, then there will be no business innovation. A greater opportunity to improve efficiency and productivity goes in vain.
The most thrilling part of implementing new technology is helping your company succeed. However, don’t assume your work is done after implementation. You can’t give complete control to technology. Recall the time when Microsoft’s AI, fiasco turned into a racist troll when left unsupervised.
Monitoring the new software or tool by adding a human component is the most efficient way to grow your company. According to the Queensland University of Technology research, organizations thrive when human capabilities and technology go hand in hand to meet customer requirements.
There is no doubt that technology is the future but it can be a big challenge for enterprises. Obviously, to stay ahead of the game, organizations need to embrace new tools and software but that doesn’t mean to jump on every trend. Make sure to research and plan whether your selected technology will help and not a burden for your company.