Every Company Must be a Technology Company

There used to be a reason for making the distinction between publicly traded companies in the Consumer Services industry and the Technology industry, but how do companies like Google or Amazon fit into these nice little industry buckets?

Nasdaq classifies Amazon as a Consumer Services company, but I could get my web hosting from them as well, so shouldn’t they be in the same category as Microsoft or Google? It’s a hard distinction to make, and we’re seeing it in every other industry: finance, manufacturing, energy, healthcare:

For pretty much any industry you can name — not just autos but manufacturing, logistics, finance, media and of course retail — there are tech startups purporting to have better ideas, ones they say they don’t need decades to make into realities. It isn’t as if all these industries will see massive CEO turnover, but it does mean established companies need to consider drastic measures. They must be willing to tell their stakeholders they may have to lose money and cannibalize existing products and services, while scaling up new technologies and methods. — Wall Street Journal

The pressure is on for traditional companies to become technology companies in order to maintain their dominance in their industries. It can be hard, but it makes sense. The pace of change in technology is unprecedented now, and any company trying to eek out a living without taking advantage of the latest and greatest will quickly get outpaced by rivals.