Technology as a Competitive Edge

there is no doubt in today's business world that technology, when used creatively, can be and often is a competitive edge.  the proof of that idea is all around you, from the early successes of Microsoft and IBM, to today's positioning of Google, Face Book, or Twitter.  technology (along with strategy and culture) is one of our keys to business success.

the issue (risk) is that many of us invest significant capital and intellect in technology too early in its development cycle.  technology has a life cycle, just like we as humans do.  that life cycle runs from euphoria to maturation, and takes many years to complete.

i have told my clients for many years that technology takes about 10 years from laboratory proof of concept to useful functionality in the field and even longer for technology maturity.  you do want to scan the horizon for new technologies and you do want to think about how those emerging technologies can and will change your business, but you do not want to invest until the technology reaches a reasonable level of maturity and stability.  i know of two states that invested in the hype of hydrogen fuel cells over 15 years ago under the belief that they would be powering cars on our roads very within 5 years of their investment and have yet to see any return on their capital.  in fact in both cases the investment is a complete loss.  hydrogen fuel cells will come and impact our economy, but not for a number of years even now.  the same is true for solar photo voltaic.  many states and business jumped on board to an industry that was competing on price alone in an overcrowded manufacturing space.  that industry is now in the late stages of a painful restructuring which wiped out almost all prior investment.  a painful and costly lesson for early investors.  broadband is another example.  its later than anticipated arrival at some early level of maturity in the U.S. wiped out billions in capital investment.  the list goes on.

watch technology, invest in it and use it to differentiate your company, but only with the right timing in mind. patience is a virtue.