26/05/2021
Every business is vulnerable to threats like running out of cash or getting outcompeted, but too few entrepreneurs consider simply becoming irrelevant as technology and trends advance. Business environments are always evolving, with new technologies on the horizon and constantly changing consumer demands and preferences wreaking havoc on the best-laid plans. If you want your business to have the best possible chance to survive, you need to future-proof it.
Here's three main existential businesses face in the future:
1. Machine learning and AI
First, there’s the massive potential of machine learning and AI. These technologies are advancing quickly, and they've shifted in ways most business owners haven’t been able to predict or prepare for. If a competitor leverages it better than you, your business could become irrelevant. If you don’t use it at all, your business could become irrelevant. If you suffer from misconceptions about how it works or how it should be harnessed (as most do), you might waste money with little to show for it.
2. Irrelevance due to cheaper or simpler alternatives
Businesses can also suffer if — or when — their competitors are able to offer the same products or services in a simpler or cheaper way for consumers. All other factors being equal, customers will gravitate toward the service that costs less or the one that can serve them faster. Accordingly, if one of your competitors discovers a breakthrough in production or uses automation to dramatically cut costs, you’ll need to scramble if you want to survive.
3. Disruptive tech tools
There’s also the threat of disruption. “Disruption” is, of course, a buzzword that’s been thrown around when it doesn’t deserve to be, but true disruption does exist, and it can threaten your business. True disruptors offer a fundamentally different kind of product or experience, reaching entirely different demographics or turning the industry on its head — like what Netflix did for streaming services in an industry dominated by cable. This is an especially powerful threat because disruptors often emerge unexpectedly after competitors refuse to take them seriously.
source: https://www.forbes.com/sites/serenitygibbons
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