How to cut through the hype around blockchain, 5G, metaverse and web3.0 for business leaders
The benefits and challenges of being first
When new technologies emerge, it is key for companies to understand where the value is for the users. To identify pockets of value from new technologies quickly, business leaders can best partner with experts or experienced vendors to speed up the adoption. Trying to develop new capabilities inhouse is typically slower as the organisation must overcome its own resistance to change.
After identifying potential relevant and viable opportunities, business leaders should validate with their users if they see value in the concept. This can apply to customers, employees, or partners they work with. Only when the solution has value to them, it makes sense to investigate how to drive business development or lower cost. One way to validate if a solution has value is by introducing more experimentation and user validation into the initial stages of the development process. Involving users into the design process, and adopting a human-centric approach, increases the likelihood of adoption and success.
Benefits to organisations being early adopters of new tech
Innovators and early adopters can reap significant value from increased revenue or decreased cost. A study in the Harvard Business Review showed that pioneers, innovators and early adopters of new technologies, are two times more likely to have high revenue growth compared to late adopters.
Companies are more eager to invest in new technologies if it can leverage the early mover advantage for several years, which comes from a high barrier to enter. Elon Musk disrupted the car industry by developing and investing in electric cars and its battery technology. While the Tesla cars are still considered to be expensive and charging stations are few, competition is catching up and, in several areas, overtaking Tesla with the entry of cheaper models or more luxury the same price point. This early mover advantage has made Elon Musk one of the richest people in the world.
In the initial stages of innovation, organisations can also capture other benefits, such as:
Two examples illustrate these benefits. By hosting the first metaverse meetup in The Netherlands, we connected with the community of local software developers as part of a local recruitment drive. And Heineken, a global leader in beer production, revealed the first beer brewery and first entirely virtual beer in metaverse. This generated a tremendous amount of free publicity for the brand, both in mainstream and marketing specific media all around the world, hitting all the benefits mentioned above.
Early adopter or just follow
Smart and responsible investments are always preferred over just being the first. In the same HBR study as mentioned before, 34% of respondents to a survey considered their companies to be an innovator or early adopter. Not everyone has to be an early adopter. Being an early adaptor can also have severe downside risks:
Late adopters have the benefits of lower prices as the price for research has already been paid for by the innovators and early adopters, and more stable products as the early glitches have been ironed out.
Deciding to be the innovator or early adopter of an innovative technology depends on several factors:
New technology trends also introduce new business models and new products, but also with higher risks. These business models typically tend to grow better when developed outside an existing organisation, not held back by slow decision-making processes and other corporate red tape.
Whether you are big or small – or somewhere in between – Mobiquity's digital innovation consulting can help. As an agile organisation that can jump in at any time, and scale up or down depending on your digital innovation needs.
Stephan is a seasoned strategy consultant, with experience in Digital Innovation, IT, CX, and Data Analytics. In his early years as a consultant, he built his foundation in KPMG Consulting and McKinsey & Company, working for extensive periods in The Netherlands, Belgium, US, Canada, and China across a variety of industries. As a member of the Management Team of Mobiquity Europe, Stephan is responsible for the Strategy, Analytics, and Digital Product Management competences. Most of all, he still likes to get his hands dirty working with Mobiquity’s clients to create and implement digital strategies. When he manages complex and challenging IT programs and environments at high pace, he brings stability with confidence, flair, and humor. Stephan lives with his partner and two daughters in The Hague, and is a passionate kite- surfer.