Evolution, not revolution, is how to ensure technology inspires growth
Listening to Prime Minister Rishi Sunak as he opened London Tech Week, I was struck by his observation that innovation ‘is an opportunity for human progress that could surpass the industrial revolution in both speed and breadth’. He's right but, in my experience, it’s important for small and medium-sized businesses to temper their enthusiasm with a little caution.
There’s a danger of jumping on to every bandwagon that comes along without considering precisely how technology can unleash opportunities for growth. It’s as much about adapting with technology as being transformed by it.
To reap the rewards of this of this all-consuming technology revolution, you must evolve over time. Whether it’s artificial intelligence, robotics, 3-D printing, automated services or complex analytical tools, the danger is to get swept up in the seductive and dizzying pace of change. But through evolution not revolution, technology can optimise existing assets and progressively enact gradual changes which benefit business and customer. Evolution not revolution is one of my Eight Secrets To Building A £Billion Business and a strategy I’m constantly encouraging ambitious entrepreneurs to adopt through my investment vehicle, Growth Partner.
Because technology is an awesome vehicle for growth. According to industry estimations, the Internet of Things could enable between $5.5 trillion and $12.6 trillion in value globally for businesses. Whilst a recent Goldman Sachs report outlined the huge economic advantages of AI alone, predicting that, over the next ten years, its productivity benefits will create $1.5 trillion of value, raising global GDP by seven per cent. And the UK can be central to that growth. I’m not surprised that venture capital firm Andreessen Howoritz, which manages around £6bn in technology start-ups, has just announced the opening of a London office this year because of the UK’s ‘entrepreneurial culture’.
As a serial entrepreneur, I know that success often depends on adapting to new realities in a responsible and sensible way, creating a culture in which business has the space to grow and evolve gradually.
At HomeServe and Checkatrade, we’re already starting to use AI to gather insights across the business, learning from them and then adapting at speed in order to improve the homeowner and trade experience. It’s exciting to see how it will increasingly guide homeowners to get a better diagnostic for the job they need doing and better match their job with the right trade.
Instead of rushing to incorporate the next tech flavour of the month, we analyse what will best complement our approach, acting quickly to seize the right opportunities – not all the opportunities, just the right ones. Smart evolutions in the midst of chaotic revolutions are about upgrades not overhauls, responding dynamically to ever-changing customer needs and the ability of new technologies to satisfy them.
So how should a medium enterprise take advantage of this innovation revolution?
First, adopt technologies and approaches that are one step removed from what you’re already doing. Do not be tempted to act too radically and jump two steps. Evolve gradually.
Second, work out how you can pivot your current business model in order to grab a hold of one truly beneficial technological innovation. Concentrate on what you feel will be most useful to you. Less is very often more.
Third, study how others are using and benefiting from certain technologies and pivot to use them for your own purposes. Many innovations are still in their infancy and perhaps need time to find their right place in a business environment. Don’t adopt them just because they’re new – understand from first-movers how they bring benefits and then, with second-mover advantage, improve on their strategies.
Finally, don’t be nervous of embracing change. Growth is all about pushing forwards and finding new ways of developing and improving. Just remember that while revolution may promise many benefits, it’s evolution that will ensure you benefit most.
By Richard Harpin