There is no doubt that technological innovation is primarily responsible for changing industries and business models. You probably don’t even remember how you used to get around before having the convenience of calling a driver through the app.
That is, we can understand technological innovation as the force that drives enterprises to a new level.
But do you know how to explain what technological innovation is for companies? What is your role in the exponential growth of a business?
Know What Is Technological Innovation
Before we begin, it is necessary to understand what technological innovation is not for companies and that this term is not synonymous with technological evolution.
A car model developed in 2020 is undoubtedly more sophisticated than one created in 2010, but that hasn’t changed how cars are made or sold.
The International Encyclopedia of Social and Behavioral Sciences (2001) says that technological innovation creates opportunities for entrepreneurs to find new organizations and establish competitive advantages while existing models decline.
This definition means that technological innovation allows new companies to establish a competitive position among the leading players in a market.
The transport applications themselves serve as an example of this definition. Before apps like Uber came along, taxi companies almost entirely controlled the private transport market.
This was not the only change that this technological innovation brought: it also revolutionized the provision of services independently, a model replicated by delivery apps. Before them, drivers and motorcyclists were forced to resort to outsourcing agencies to get work or fixed jobs as private drivers, taxi drivers, or delivery men.
With the change, restaurants themselves can outsource delivery through the apps without having to have couriers available. To show the impact of this transformation, an article in the American newspaper CBS News revealed that, this year, American restaurants are expected to earn more for food consumed outside the establishment than inside.
Here’s an addendum: the article was published on February 8, 2020, a month before Covid-19 forced us into quarantine. Even without the coronavirus, delivery apps were expected to become the most significant source of revenue for this type of business.
Understand How Innovations Help Scale Businesses
Technological innovation can increase productivity levels, reduce costs or allow customers to be served at higher levels than usual. For example, a company that sells only in one municipality can take advantage of innovations to expand its activities across the country or even the world.
One of the most versatile technological innovations – which we will use to exemplify what we talked about – is artificial intelligence, one of the trends that stood out the most in 2019 and continue in full swing throughout this year.
A survey conducted by the Harvard Business Review analyzed 152 technology use cases, categorizing them by their use of AI. The second most common was the use of algorithms to detect patterns in large volumes of data and interpret them through machine learning, which we will discuss later.
These programs were used to predict what a consumer was most likely to buy, identify credit or insurance claims fraud, and automate personalized ads’ delivery, among others.
GE, for example, used the technology to integrate supplier data from its branches and saved $80 million by eliminating redundancies and negotiating contracts previously managed by each department.
Deloitte uses this technology to audit a much larger volume of documents. Almost all data does not need to go through the hand of a human auditor for review after implementation.
Both saved hours of work while scaling the ability to analyze vast volumes of data. It is worth mentioning that this was something impossible to do just by hiring more employees.
Discover Three Tech Innovations That Expanded Limited Business Models
Now that you understand what technological innovation is and how it helps to scale business models, learn about three essential technologies for digital transformation that are a trend this year.
Chatbots And Virtual Service
Virtual service has become one of the technologies that have gained the most supporters since its birth, especially among the generation known as millennials.
A survey by Econsultancy showed that virtual service via chat had the best customer satisfaction, with around 73% preferring to be served via websites or pages on social networks.
Based on this principle, small and medium-sized companies can rely on a customer service sector without relying on more expensive telemarketing operations.
However, it still had a limitation: it needed operators present during business hours. A 24-hour customer service operation still required a significant investment in personnel and resources.
Therefore, chatbots have become a natural evolution. With the possibility of inserting them on your Facebook page, for example, today, the technology is accessible to enterprises of all sizes.
Artificial Intelligence And Machine Learning
The advancement of artificial intelligence means an evolution of the technology we mentioned above and innovation in its own right. The reason for this was the development of machine learning, commonly called machine learning, which makes it possible for AI-powered software or hardware to recognize patterns as they arise.
These applications can learn and evolve without requiring updates or code implemented by humans. Do you know the most extensive use of artificial intelligence in business today?
Artificial intelligence and machine learning are the most versatile technological innovations in the business environment, as their capabilities can be used in almost every industry.
Augmented Reality And Virtual Reality
Augmented and virtual realities were first thought of in the video game market. However, its use is already far beyond Pokémon Go enthusiasts. One possibility for the benefit of augmented reality is in the area of technical assistance for devices.
Currently, it is already possible for a technician to point his cell phone at a piece of equipment and receive the blueprint of that machine.