Wharton Chapter 2 - The Pitfalls of Emerging Technology

How do companies avoid the pitfalls of emerging technologies? The first half of the chapter covered the 4 traps a company might encounter with emerging technology.

1. The delayed participation -"watch and wait" theory. Carefully weigh the value of the project before jumping in
2. Sticking with the familiar -dislike of ambiguity and risk averse. If this system works, why change and go down a winding path of uncertainty
3. Reluctance to fully commit - resistance from channel partners, projected low returns from an emerging technology
4. Lack of Persistence - High levels in the company might not recognize the benefit and cut the venture. Emerging tech is known for it's failure rates - an easy target when money is needed

These four traps are very common for businesses to fall into. Emerging technology is ambiguous and contains high levels of uncertainty. For many companies, a wait and see approach allows them to reap the benefits of their competitors mistakes (but also has a chance of losing market share because they do not have the 1st mover advantage). Companies become complacent and enjoy working in comfortable environments. Emerging technology is seldom comfortable because of the levels of risk involved. Comfortability over time can also mean status quo. Companies can be reluctant to commit if the culture does not support the change or if the company is not ready to move in a new direction. Some companies treat emerging tech like poker: know when to hold 'em, some know when to fold 'em. When you fold, you lose your chances of winning the pot. Other companies lack the visionaries that can push and be persistent for emerging technology. A bottom up approach is harder to sell emerging tech than top down.

The second half of the chapter outlined "crafting solutions". Viewing emerging technology with the blinders off allows companies to move in new directions and see new opportunities. These new directions are sometimes hard to see but allow companies to shift in new directions and ways of thinking. How will this emerging tech benefit our customer and does it align with the companies strategic goals? This change when coupled with a learning environment allow for an openness of differing viewpoints within the company to help challenge the mindset and emerging technology projects succeed. When companies challenge the mindset and think outside of the box, companies can begin to experiment to provide new insights and possibilities of the technology. But, companies need to be both flexible and committed (the business paradox of emerging technology) to be successful.