INDUSTRY EVOLUTION
Published in
3 min readFeb 13, 2021
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THE INDUSTRY FOUR
𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 𝗼𝗳 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗮𝗻𝗱 𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀
■ 𝗠𝗼𝘃𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗟𝗲𝗴𝗮𝗰𝘆 𝘁𝗼 𝗠𝗼𝗱𝗲𝗿𝗻.
■ The Digital Age requires a rethink about traditional/legacy strategy formulation in discovering opportunities in current and forthcoming scenarios.
■ To understand the steering forces and influencing factors, we have to understand the evolution of technology and business.
■ We can categorize this evolution from two perspectives.
■ 1st with the legacy approach and 2nd with a modern approach.
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𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 — 𝗔 𝗹𝗲𝗴𝗮𝗰𝘆 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵
■ 𝗢𝗽𝗲𝗻 𝗟𝗼𝗼𝗽 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻
■ The legacy approach works as an open-loop evolution of technology and business innovations.
■ In this approach, business requirements drove technology, which then enabled the business to advance with the objective of digitalizing processes and making products available through digital channels.
■ In an open-loop approach, a new business requirement pushes the technology to bring the solution for the enablement of a new business model and follow the same steps whenever any new requirement arises.
■ In this approach, business requirements steer the change.
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𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 — 𝗔 𝗺𝗼𝗱𝗲𝗿𝗻 𝗮𝗽𝗽𝗿𝗼𝗮𝗰𝗵
■ 𝗖𝗹𝗼𝘀𝗲𝗱 𝗟𝗼𝗼𝗽 𝗘𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻
■ The modern approach works as a closed-loop evolution of technology and business innovations.
■ In this approach, technology creates new opportunities and fundamentally changes businesses, and transforms the business and operating models of almost every industry.
■ In close loop approach technology innovations creates a new playing field for the creation and execution of new business models and take feedback from business environments to further evolve the technology.
■ Moreover, this new playing field is not limited to a single industry vertical.
■ In this approach, technology innovation and evolution steer the change.
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𝗣𝘂𝘀𝗵 𝗮𝗻𝗱 𝗣𝘂𝗹𝗹 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺
■ It is a Push and Pull kind of phenomenon where Technology pushes for the development of the new Business model, whereas Business Demand or Market Pull for Enhancement of new technology areas.
■ In other words, the market pull approach attempts to provide products the market demands, whereas the technology push approach attempts to interest the market in new products based on new solutions.
■ We can see that both Technology and Business play an important role by complementing each other to bring an evolution.
■ Ultimately it is the mix & match of Business and Technology which act as a steering force for a Digital Transformation.
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Academy ti4 | www.ti4.org
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