What Is Technology's Importance?

 In the long run, technology is irrelevant." That's what one of my customers told me after I gave him a presentation about a new product. I was talking about the product's features and benefits, and one of them was "state-of-the-art technology" or something similar. That's when he said something. Later, I recognized he was true, at least in terms of how I used the word "technology" in my presentation. But I began to wonder if he was correct in other situations as well.

What is the definition of technology?

It is defined as follows by Merriam-Webster:

1

a: the application of knowledge, especially in a specific field: engineering medical technology> (n.d.) (n.d.) (n.

b: a skill acquired via the application of knowledge fuel-saving technology in an automobile>

2

: a way of completing a task, especially one that involves the use of technical processes, procedures, or expertise:

3

: the technical characteristics of a specific field of study educational technology>

It is defined as follows by Wikipedia:

Technology (from Greek έ, techie, "art, skill, cunning of hand"; and -oi, -loggia[1]) is the creation, modification, use, and knowledge of tools, machines, techniques, crafts, systems, and organisational methods in order to solve a problem, improve an existing problem solution, achieve a goal, handle an applied input/output relation, or perform a specific function. It can also refer to a grouping of such instruments, such as machinery, modifications, setups, and procedures. The ability of humans and other animal species to govern and adapt to their natural circumstances is profoundly influenced by technological advancements. Construction technology, medical technology, and information technology are examples of domains where the term can be applied broadly or specifically.

Both meanings are based on the same concept: application and usage.

Technology is a facilitator.

Many people assume that technology is the driving force behind innovation. However, based on the definitions provided above, this is plainly not the case. Opportunity is what characterises innovation, and technology is what makes it possible. Consider the famous business school example of "build a better mousetrap." You may have the technology to make a better mousetrap, but if you don't have any mice or the old one is still working, there is no opportunity, and the technology to construct a better one becomes obsolete. If, on the other hand, you're inundated with mice, you might be able to come up with a new product employing your technology.

Consumer electronics startups are another example, one with which I am intimately familiar. I've worked with both successful and unsuccessful entrepreneurs. Each had its own set of cutting-edge technologies. The distinction was one of opportunity. Those that failed couldn't discover a way to use their technology to create a meaningful innovation. In fact, in order to survive, these businesses had to evolve into something completely different, and if they were lucky, they could use derivatives of their original technology to do so. Most of the time, the original technology ended up in the trash. As a result, technology is an enabler whose ultimate value proposition is to better our lives. It must be leveraged to produce opportunities-driven innovations in order to remain relevant.

Is there a way to use technology to gain a competitive advantage?

A technology is often listed as one of a company's competitive advantages. Is this correct? Yes, in some situations, but no, in the vast majority of circumstances.

Technology progresses in two directions: evolutionary and revolutionary.

A revolutionary technology is one that allows for the creation of new industries or the solving of issues that were previously unsolvable. A good example is semiconductor technology. It not only produced new companies and goods, but it also created other innovative technologies such as transistors, integrated circuits, and microprocessors. Many of the products and services we use today are provided by all of these companies. Is semiconductor technology, on the other hand, a competitive advantage? I would say no, given the large number of semiconductor firms that exist now (with new ones developing every day). How about using microprocessors? No, once again.

 There are numerous microprocessor manufacturers. How about a microprocessor with four cores? There aren't as many, but Intel, AMD, ARM, and a slew of other businesses are developing quad-core processors (Apple, Samsung, Qualcomm, etc). As a result, there isn't much of a competitive advantage. The apparent competitive advantage of any technology is diluted by competition from other technologies and simple access to IP. A good example of how this works is Android vs. iOS. Both of these operating systems are UNIX variants. Apple took advantage of their technologies to launch iOS and acquire a competitive advantage. However, Google, using a Unix variation (a competitive technology), was able to catch up relatively fast. The reasons for this are variances in each company's strategic ambitions and how the products made available by those technologies were brought to market (free vs. walled garden, etc.).

The term "evolutionary technology" refers to technology that improves on revolutionary technology through time. The incremental change, on the other hand, is easier for a competitor to replicate or outpace due to its very nature. Take wireless cellphone technology, for example. Company V introduced 4G products before Company A, and though it may have had a short-term advantage, the advantage due to technology vanished as soon as Company A debuted its 4G products. The consumer returned to choosing Company A or Company V on the basis of price, service, coverage, and other factors, but not on the basis of technology. As a result, technology may have been useful in the short term, but it has since become obsolete.

In today's environment, innovations tend to commodity quickly, and any given invention contains the seeds of its own demise.