There is no doubt that every organization needs to embrace technology in the digital era just to stay relevant. The level of “embrace” will decide whether companies just survive, thrive, or dominate their industry. Those who will thrive and dominate will need to merge technology capability with their core competency.

What this means is that if they are a CPG company, they are now no longer just a company that offers a portfolio of bathing soaps. They are now a company that leverages technology to design, manufacture, and deliver the best bathing experience to their consumers. The gist is, in part, that every company needs to become a technology company.

But how do companies become a technology driven-company?

Business technology has existed for centuries. Although the modern definition of technology has changed, companies have not been strangers to embracing technology. From steam engines to the AI-driven robotics of this age, companies have invested in and leveraged technology. But that does not make them a technology-driven company. As defined above, a technology-driven company is one in which technology is embedded within the core-competency of the organization.

Pick any CPG company, and let us use manufacturing as an example. They may be leveraging robotics in manufacturing because everyone else is also doing that. Robotics and automation are the new normal in CPG manufacturing. Embracing technology at that level is a necessity. This is very similar to using a laptop or computer for my job. Just because I use a computer for my job because I must or have to, does not make me a techie. It is a necessity.

To become a technology-driven company, we need to first change our outlook on the role of technology in the world of business. Here is an honest assessment you can perform. Since you do not have to share your response with anyone, think about your response honestly. What are the primary criteria for developing technology investment business cases? It is almost always cost savings.

Of course, businesses exist to make a profit. But who gives them this profit? Customers and consumers who buy their products.

This perspective is the crux of the starting point of strategizing for building technology-driven organizations. To understand how you can use this as a starting point and then build a strategy to become a technology-driven organization where technology gets embedded in your core competency, make sure you download Designed Analytics Research Report: Business 4.0 : Becoming a Technology-Driven Business. This report will be available to download at 11pm on 06/01/2024 on this blog site.