Entering, Surviving, and Thriving, in a New Industry Created by New Technologies
We’re in the midst of the 4th industrial revolution, with many new technologies quickly entering the business environment. Technology is evolving more quickly than most of us realise. These technologies, including the Internet of Things (IOT), Artificial Intelligence (AI), robotics, and Virtual and Augmented Reality (VR & AR), are becoming increasingly accessible and affordable, effectively reshaping industries as they evolve. With each new technology that enters the market, new industries are also being built. The value chains governing these industries are shaping up fast, and positioning for success in them will determine your future success…or failure.
How can you get started in a new technology-driven industry and be successful within it? On The Money Show with Bruce Whitfield, Pavlo Phitidis outlines a plan on how, as business owners, to enter as early entrants and how to adapt to survive and succeed into the future:
Where You Start
Beginning in a new industry, or pioneering your way through with new technologies, is a challenge. As an early entrant, you’ll need to develop the full value chain to be equipped to provide a service to your customers. You’ll need to educate, design, develop, install, manage, measure, and deliver, the entire value chain offering to customers. It’s costly at every level and can be a frustrating experience. Entering a new industry, backed by new technologies, requires a high level of mettle and resilience.
You need to do it all because it’s a new industry. Your option to work with others is limited since few exist and, those that do are trying to find their own feet too. Use this time to find out where your interest, aptitude, and passion lies, within the activities that make up the value chain of this technology-driven industry.
Where You Should End
Your end point must be specialisation. Let go of the idea that you must continue to own the entire value chain, as new industry players will enter the market and your business will evolve. As this happens, you’ll notice one area of your business has become your niche. Pick an element of your industry that’s driven by the technology, and then consolidate your expertise and business around it. As you refine your operations to focus on your specific area of expertise, your position in the industry value chain will be secured.
The Evolution of Drone Technology
A Cape Town company, Aerobotics, serves as a great example of this business development model.
In the beginning, Aerobotics manufactured and managed every aspect of the drone technology value chain. They designed and built drones, manufactured the cameras and other accessories, wrote algorithms and coded the intelligence to run them, and provided insightful information to their customers.
As more industry players entered the market, Aerobotics began to specialise. They focused on developing competence in data collection, crunching, and analysis, specifically for farmers in the fruit industry. Turning data into visual intelligence, Aerobotics has become a global leader in drone intelligence, and has focused its offerings on the global agricultural sector.
The Internet Of Things
The Internet Of Things (IOT) technologies involve connected devices that work through automation to make your life easier, complete a task, or perform a specific function. It’s a fragmented industry, but its value chain is beginning to form.
Brigdiot began as an IOT business in response to droughts that threatened to stall the Western Cape economy. Brigdiot built the water monitoring devices that were attached to schools’ geysers to manage water losses or leaks. Brigdiot also provided the software and data analysis to support these devices, and were managing the full value chain for their customers.
As more industry players entered the market, Brigdiot opted to specialise, handing over the manufacturing of these devices to other suppliers, and beginning to work with plumbers to conduct installations, rather than managing the process themselves. Brigdiot has gone on to specialise in its data crunching and analytical functions, now providing data-driven technology solutions to businesses and more.
Your Strategy for a New Industry
Playing with new technologies in fragmented industries whose value chains are emerging holds massive potential. You must, however, get the short- and medium-term strategy right. Experience has shown:
- Learn, burn, and earn insights, to understand where your skills, interest and traction, will best be served in the forging value chain;
- Focus in, deepen skills, specialise in that part of the value chain, and on the sectors you are best-suited to serve;
- Source, select, and work with, others in the value chain outside of your areas of expertise; and
- Excel at that game and dominate your slice of the value chain pie.
Aurik can help you get it right. Let’s work together to help you build an Asset of Value.