Why Some Tech Companies are Flowing Up

“Tech” refers to the combination of many related subjects. Technological change occurs gradually, but has had great influence on many areas over time. In business terms, it is a set of interactions among people that impacts technological systems. Tech is the general term used to describe many related subjects, including electronics, information technology, computer science, computer engineering, and mathematics. Technological change is also referred to as digital technology, information technology, and cognitive science.

In recent years, the term technology sector has been used increasingly, in both contexts and in governmental discussions. It is believed to be responsible for approximately one-third of the U.S. gross domestic product, as well as contributing to economic growth, job losses, and other productivity aspects. Other contributing factors include education, globalization, environmental issues, and government policies.

A tech-enabled business is any company that facilitates the development and use of information technology. A few typical examples of tech-enabled businesses include educational institutions that provide educational programs in computer science, engineering, and math; universities that offer programs in computer science, engineering, and math; nonprofit organizations that provide software development, computer programming, and security Consulting as well as other tech-enabled services; and businesses that provide tech-enabled services in business development, management, networking, product design and management, and software implementation. Technologists who work within these sectors are often called network strategists, digital media specialists, or information technology strategists. Many venture-capital firms and angel investors invest in tech companies, as they tend to be highly profitable, rapidly moving in a growing market. However, there are many tech-enabled business that have been unsuccessful, mainly because of poor management, a lack of vision, poor strategic planning, issues related to management of complex IT systems, capital costs, difficulties getting financing, lack of a good business plan, and problems related to the IT support staff.

Poor management of technology investments results in a “tech bubble” that eventually burst, causing financial distress for those not involved in initial investments. The inability of some startups to successfully manage IT investments results in poor management of customer relations, product sales, marketing, and distribution. Poor strategic planning also causes tech companies to fail. These companies often fail because they do not differentiate between products that sell and those that don’t sell well. They fail because their managers did not realize how to distinguish between products that will make money and those that won’t.

Tech companies can use technological innovations and apply them to solve business and operational issues. One example of such innovation is mobile devices and their ability to enhance productivity, enhance customer service, reduce cost, and increase location awareness. Other examples include Internet-based software applications that allow for more efficient supply chain management, reduce inventory, improve customer service, increase productivity, and lower costs. The internet, mobile devices, the internet connection and GPS technology are examples of techno innovations that are transforming the technology sector. This transformation has the potential to dramatically impact tech companies’ bottom lines.

Tech innovation can also be the engine behind important societal improvements such as the global food scarcity that has affected many lives in the developing world. Technological innovation is also fueling digital technologies that will enable communities, governments, and individuals to participate in online forums, digital markets, and empower citizens to control their own lives. Tech companies should embrace and promote civic innovation and not simply depend on tech to create new jobs. A new wave of tech startups may provide a fresh start for technology companies, but if the leading tech companies continue to rely on traditional models for business growth, the benefits for society and the planet will come to nothing.