More On The Technology Gap
A few weeks ago in this space, I introduced a phenomenon known as the Technology Gap. Simply stated, a technology gap exists when consumers are indifferent, or unable, to keep pace with technological innovations. In this definition, "consumers" means both individuals and organizations. Once a gap exists, and I believe one currently does, it is either closed by consumer adoption, or it collapses from the gravity of market forces and the laws of economics.Lately I've been involved in some activities, including surveys, that are helping me to understand this marketplace phenomenon and why it exists. I will continue to share my findings and thoughts on this issue with you, but I hasten to say that I am not a researcher. I didn't even sleep in a Holiday Inn Express last night. But I am a very interested observer, and I am a reporter. And since you and I are one half of the Technology Gap, it is to our advantage to know as much about this issue as possible.
First, let's take a look at the two groups who create the Technology Gap. I call them the Not-Ready-For-Gap Players: Innovators and Consumers.
Innovators
Innovators are the information-technology (I-T) industry players (sometimes I also call them Techies) who not only sell technology, but who also create the new stuff. For obvious reasons, the Technology Gap is a big problem for Innovators. When consumer adoption of technology isn't keeping pace with innovation, it not only plays the devil with current operating issues, but it also messes with Innovators' research and development plans: When do they bring out the next generation of stuff that's now ready for the shelf? What resources do they budget for R&D? How many new generations, or new types of technology, can they afford to have lying fallow?
In one sense, Innovators aren't motivated any differently than other business people; they are in business to sell their stuff and make a profit. But there is something else that is at the heart of the Technology Gap: Unlike almost any other industry, Techies NEED to innovate. It's almost genetic. Plus, the gnawing knowledge that the competition is working on next generations AND brand-new technology, really gets their innovation DNA going.
Consumers
Consumers are the enigmatic herd of cats Innovators try to corral long enough to convince them to buy their newest stuff. Not only are Consumers like cats because they're difficult to round up, but also because they're so darned independent and frustratingly fickle.
On this side of the issue things are less complicated. Basically, most Consumers don't know the Technology Gap from The Gap store. But they do know what motivates them.
Consumers are motivated to fill a need, like when a new computer is needed because of growth; when an opportunity is presented, like purchasing software that will deliver a competitive advantage; and when an itch can be scratched, like ponying up for high-speed Internet access to allow for faster downloading of games, photos, audio, and video files.
Survey Says...
One of the activities I've been working on regarding the Technology Gap is polling small business owners about it. First let me tell you about my respondents. There were 91 in this sample; half had fewer than 10 employees, but 12% had over 100 workers; about a third were in retail, and another third were professionals; almost 90% had been in business for more than 6 years, and almost half had been around for over 20 years. I asked several questions but, for now, I only want to focus on one of them.
When asked THE Technology Gap question, "Do you feel that technology innovation is advancing faster than your ability to acquire it and put it to use?", 52% answered, yes. In politics, 52% would get you elected. But the marketplace is not a democracy. If you're an Innovator, when half of your prospects can't keep up, that's a dangerous business scenario. But there may be even more bad news.
I think it's quite possible that those who answered "no" to my question could be split into two camps: Those who actually believe they are keeping up with innovation; and those who spend so little time fretting about it, that their answer really means, "No. It's not a problem for me."
The Chase
Have you ever heard of a Car Gap? Didn't think so. When an automobile manufacturer creates a successful car style, they don't change it significantly until customers become tired of it, which could be a few years. The automobile industry does not innovate for innovation's sake. But Techies do.
Sometimes car companies find themselves with too much inventory, but that's typically a supply and demand scenario. The Technology Gap does have a supply and demand component. But what makes it different is the much larger component of too much innovation chasing too little adoption, which is not the same thing as too much product chasing too few customers. Supply Vs demand is an operating challenge. Innovation Vs adoption is a war of motivations.
Chicken Or Egg
Politicians will tell you a noble cause without a constituency is a loser. In his new book, Creating And Dominating New Markets, my friend, Peter Meyer, tells us that one of the worst things a company can do is enter the market with a solution in search of a problem.
Currently, the Technology Gap can be partially traced to a weak economy. But the primary reason is conflicting motivations between Innovators and Consumers. The bad news for Innovators, and the instruction for the rest of us who bring products and services to market, is that Consumers will win this conflict every time.
A little over half of the respondents to my survey said they were not able to keep up with innovation. But as I will reveal in future articles on the Technology Gap, cost of acquisition was only one of the reasons. Many Consumers don't need more technology; they need help maximizing, and being more proficient with, what they already have.
Write this on a rock... I believe the successful Innovators of the future will focus on what motivates Consumers - more benefits and solutions, and less bells and whistles - and aggressively incorporate that information into their future business strategies. Look for services and education to be high on the list of what they discover, and the straightest line to successfully closing the Technology Gap.
