The leadership in automation is advancing the tech world in artificial intelligence and analytics. Innovative entrepreneurs create these solutions to impact, automate, augment and connect practically every aspect of our lives. Right now, the technology is automating the management. This is giving the leaders more time to lead their teams. As digitization disrupts, leaders are challenged now more than ever to anticipate significant shifts in the business environment accurately, and to build markedly more agile organizations. Leaders are gradually liberating themselves from the routine work to focus more on strategic transformation.
With these strategic focuses, corporations are making economies appear as global technology leaders. Many countries or places are referred to as being the global tech hub. Let us take the example of China. The country is consistently leading the technology sector around the world. The biggest multinational companies are trying to assess the country’s current and future market position. This is because China emerged on the world map carrying a wave of competitive and innovative technology companies. The country is looking to replicate its success beyond the Chinese market. As the country is rapidly transforming into a global technology leader, the executives sitting in multinational companies should understand the state of China’s tech industry and see what it might mean for their businesses.
Impact of Digital Transformation on the Economy
In today’s world, systems are controlling operations of an entire manufacturing plant, and other innovations in the inventory systems have shortened the time of supply. The advancements in the tech industry have eliminated all physical barriers, such as the communication and distance barrier in the age of the internet. With such an expansive technology, it is almost impossible to credit the invention of the internet to a single person. Internet was the work of many pioneer scientists, engineers and programmers who developed new technologies and features, eventually merging to become the “information superhighway” we know of today. After ARPANET adopted TCP/IP in 1983, the researchers assembled a “network of networks,” which became the modern internet. Later in 1990, the online world took a more recognizable form due to Tim Berners-Lee’s invention of the World Wide Web. The web popularized the internet serving as a crucial step in developing vast trove of information that we access daily.
Given the fast-paced rise of disruptive business models, products, and transformative power of digital tech on society and business, leaders should be capable of understanding the economic impact of fast technological changes. At the same time, leaders should also be able to respond to the changes with similar foresight and speed.
Companies cut back important investments that create the next growth wave. The investment can leverage, lower the costs and expenses. Companies are achieving this by managing their spending on technology properly. To navigate technology economics and leverage business performance successfully, tracking the global economic measures carefully is essential.
Tech Companies Contributions to Economy – Individuals and Businesses Level
The impact of technology on the economy is very significant. Tech leaders are contributing, if not majorly, then on a very small scale, by helping businesses or bettering individuals’ lives. Let’s take a few examples of great tech companies that impact an individual or business scales:
Tech leaders like Solomon Ali or Richard Marshall Carter launched the SYS Home Technology and Revolutionary concepts. His company SYS Home Technology is helping individuals with security accessibility and affordable home technology. The company helps businesses by providing licensing rights to multi-nationals like Amazon, Ring, August Home Incorporation, HealthCo., Skybell Technologies, LiveWatch Security LLC, Chamberlain, Alarmforce LP, Alarmforce NC Incorporation, Bird Home Automation GmbH and Bird Home Automation LLC. Solomon was born in Los Angeles, California, in 1964. He lived in East Los Angeles in the early ten years of his life before moving to West Covina, California. He completed high school from West Covina and later went to serve in the United States Army. After his honorable discharge from the Army, Solomon attended El Camino College for further education. He quit college midway to start his own maintenance company.
Another tech leader like Craig Walker, founder of Dialpad, is helping small businesses with communication hassles. The startup was launched in 2012 with the mission to “kill the desk phone.” The company is supported by venture capital firms such as A16Z, Google Ventures, WorkBench, Softbank and others.
A software startup Wombly is a SaaS that was founded in 2011. The company is headquartered in Portland, Oregon. It backed by $50 million in equity funding with 225 employees. The company is currently serving more than 100,000 small businesses by way of an application that helps to:
- Boost online reputations
- Engage customers for organic traffic
- Monitoring the health of the companies every day
The information provided by Wombly enables users to make the right decisions to improve business results. Wombly’s SaaS system is built for critical customer-facing aspects while running a small business.
Technology Intensity is Correlated to Gross Margins
When considering productivity, it’s essential to observe a connection between gross margins and technology intensity. It is also to observe strong correlations between them. This means that gross margins and technology intensity tend to decline and rise together. The world economic crash in 2007 was when companies were heavily investing in the technologies resulting in a rise in gross margins. This trend accelerated in 2008 but halted in 2009. This happened when the companies realized the magnitude of what had happened and started to cut technological investments. Later the technological intensity dropped with gross margins. Something similar to what has happened in the 2020 pandemic as well. However, companies should continue to consider the outcomes of competitive economic gains before competitors do. Primarily the tech leaders should invest in making a difference not only in their companies but also for the global economy.