Investing in technology has become increasingly crucial for businesses to remain competitive in today’s fast-paced digital world. With advancements in technology such as artificial intelligence, automation, and big data, companies that fail to invest in technology risk falling behind their competitors or even worse bankruptcy, as shown by the high profile collapse of Silicon Valley Bank this week.
In this blog post, we will explore the lessons that can be learned from not investing in technology.

Lesson 1: Missed Opportunities for Growth

One of the biggest lessons that businesses can learn from not investing in technology is the potential to miss out on opportunities for growth. The world is constantly changing, and businesses that fail to adapt risk being left behind. By not investing in technology, companies miss out on opportunities to increase efficiency, streamline operations, and reach new markets.

There are numerous examples of bricks and mortar companies failing to invest in e-commerce when it was first emerging and missing out on the opportunity to reach a broader customer base and increase sales.  Three prominent examples are Blockbusters losing out to Netflix, Borders Group losing out to Amazon and Toys “R” Us losing out to Walmart and Amazon.

Similarly, businesses that failed to invest in social media early on missed out on the opportunity to connect with customers and build brand awareness.

One technology which is currently transforming how companies operate is market networks. But companies in construction, facilities management and social housing are still stuck in a combative, beggar thy neighbour approach to supply chain management risk losing out on the benefits of improved transparency and trust,  less duplication, administration and errors and streamlined processes.

Lesson 2: Inability to Compete

Another lesson that businesses can learn from not investing in technology is that they risk becoming obsolete. In today’s digital age, technology is changing at an unprecedented pace. Companies that fail to invest in technology risk falling behind their competitors, who are likely to be investing heavily in new technologies.

For example, companies that have not embraced automation risk falling behind competitors who have automated their processes, resulting in higher productivity and lower costs. Similarly, companies that have not adopted cloud computing risk falling behind competitors who have embraced this technology, resulting in greater flexibility and scalability.

The collapse of Silicon Valley Bank in March 2023 highlights the risk, and shows that even companies operating in the technology space can still be affected.

Lesson 3: Increased Risk

Not investing in technology can also increase a company’s risk exposure. Technology can help companies identify and mitigate risks more effectively. For example, big data analytics can help businesses identify potential risks and take steps to mitigate them before they become significant issues.

Similarly, companies that do not invest in cybersecurity risk becoming vulnerable to cyberattacks, which can have devastating consequences. With the increasing number of data breaches and cyberattacks, it is essential for companies to invest in cybersecurity to protect their data and maintain customer trust.

In 2017, Equifax, one of the largest credit reporting agencies in the United States, suffered a massive data breach that exposed the personal information of approximately 143 million people. The breach included names, Social Security numbers, birthdates, and other sensitive information. The breach resulted in a $700 million settlement with the Federal Trade Commission (FTC) and other government agencies.

Sony suffered a cyberattack in 2011 that resulted in the theft of personal information belonging to approximately 77 million users of its PlayStation Network. The breach included names, addresses, email addresses, and other sensitive information. The breach resulted in a $15 million settlement with affected customers.

This year alone has seen attacks on the Guardian newspaper, US flights being grounded and Royal Mail international deliveries being halted.

Lesson 4: Higher Costs in the Long Run

While not investing in technology may save a company money in the short term, it can end up costing more in the long run. This is because companies that do not invest in technology risk falling behind their competitors, resulting in lost revenue and decreased profitability.

Moreover, companies that do not invest in technology risk facing higher costs in the long run as they try to catch up with their competitors. For example, a company that did not invest in cloud computing early on may now have to invest heavily to catch up with competitors who have already adopted this technology.

We’ve developed a model based on research with 100’s companies in the Facilities Management, Drainage and Electrical Contractor spacing which shows the financial impact of not investing in digital field service management technology. Check out the model for your own company here.

Lesson 5: Failure to Innovate

Finally, not investing in technology can result in a company’s failure to innovate. Innovation is critical for businesses to remain competitive in today’s market, and technology plays a significant role in driving innovation.

By not investing in technology, companies risk falling behind in their ability to innovate, resulting in missed opportunities and decreased market share. For example, companies that have not invested in artificial intelligence may not be able to develop new products and services that rely on this technology.

Conclusion

In conclusion, the lessons that can be learned from not investing in technology are significant. Companies that fail to invest in technology risk missing out on opportunities for growth, becoming obsolete, increasing their risk exposure, incurring higher costs in the long run, and failing to innovate. It is essential for businesses to invest in technology to remain competitive and succeed in today’s fast paced, digital world.