The Top Issues Facing Technology Companies Right Now

Transforming the Business Model

Today, technology-centric suppliers are often solving similar problems with a range of offerings that include custom projects to pre-packaged solutions, products and transaction services. For competitive reasons companies may find themselves facing difficult transitions from one of these models to another. 

Far from "just" a sales or marketing problem, changes in business model affect the entire organization, from revenue recognition to manufacturing.  Key changes often include target markets, value propositions, solution vision, channel and selling competencies, market requirements gathering, product management processes, partner strategy and performance metrics.

Competing in consolidating categories

Companies with broad market success and capital currency are acquiring new, next generation categories - effectively "co-opting" them out of existence. Two challenges result: 1) smaller "pure-play" vendors must create a sustainable advantage or time their exit, and 2) those with category leadership opportunity must evaluate the make-versus-buy trade-off and execute acquisitions, mergers and market expansion.  

Expanding services

Professional and transaction services are an increasing percentage of revenue. Scaling consulting and deployment services into a profit center, and managing the product/service interaction has always been a challenge.  Beyond professional services, hardware and software products are now being provided as transaction services. For many, creating and executing strategies that effectively manage these transitions is a major challenge. 

Entering new markets - moving beyond a single-product company

Young companies can be extremely successful by focusing on a few, large target markets with one core product line. Doing this successfully the first time was a challenge. But bringing out the second great product line or entering a second major new market category can be a much greater challenge.  Efforts to enter new markets and launch new products must be implemented while avoiding impact on short-term resources and revenues.

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Regaining the entrepreneurial spirit

The great thing about being a successful and diversified business is that you have scale, scope, and systems that make your organization operationally effective. Managers learn to do things in a specific way because they know it works. 

Unfortunately, these same systems and experiences can result in barriers that keep new and disruptive innovations from ever reaching your customers. Operational effectiveness and entrepreneurial behavior requirements are often at odds. Executives within some large businesses sometimes admit privately that disruptive innovations do not actually launch.  They escape.  

Adexta helps management teams navigate these and other tough business problems by applying insights from similar experiences as practitioners and consultants. We apply best practices with personal experience to optimize strategy while aligning the team on each key element.  Importantly, we then work with client implementation teams to help guide the changes required for success.

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