Technology Change Edge - A way to get in

There are situations where a business is required to invest in technology, and then employ the technology for the benefit of its clients (services) or its own output (product). When a company's tools become outdated, they have to upgrade if they want to compete. Sometimes, huge advances become available and change the way things work in a fundamental way.

It doesn't seem fair. The old company with an investment in older gear and an established "way" discovers that their assets are really only business relationships and a knack for knowing the ropes. Actual capabilities are easily replaced with better tools. At least the marketplace sees it that way.

In theses circumstances, a new company employing the latest and greatest stuff, can do new things, and do the old things better and cheaper. It's the critical period that surrounds large technical changes that give new players a perfect place to leap into business. No, they don't have the relationships (customers), but they have all new stuff and they can do more for less. That's enough to make something happen. Congratulations to the new player.

Of course, after a period of time the new player becomes the old player and...

So - old and new players - the point of entry and its relative advantages, teach us to be aware if we want to last.

Plan capital spending on technical capabilities (depreciation and need for new money) accordingly. Don't saddle yourself with financial obligations that will outlive your stuff. Depreciation is a real expense for you. Don't be silly - be ready. If you're a new player, look for the bend of a fundamental change and crush the old players before they can respond. Hey - that's life.