technological-modeling

Technological Modeling: A Barbell Approach To Placing Tech Bets

Technological modeling is a discipline to provide the basis for companies to sustain innovation, thus developing incremental products. While also looking at breakthrough innovative products that can pave the way for long-term success. In a sort of Barbell Strategy, technological modeling suggests having a two-sided approach, on the one hand, to keep sustaining continuous innovation as a core part of the business model. On the other hand, it places bets on future developments that have the potential to break through and take a leap forward.

Continuous Innovation As The Basis Of Technological Modeling

types-of-innovation
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).

The premise of technological modeling, according to FourWeekMBA, is to have a built-in continuous innovation approach, part of the company’s core business model. This is critical to keep improving day after day the experience and develop incremental products that meet and surpass customers’ expectations.

continuous-innovation
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.
business-model-innovation
Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.

Barrelling Things Out With Tech Bets

digital-transformation
Digital transformation enables existing businesses to leverage digital technologies for business model innovation. The process of digital transformation is not just about new distribution channels. It starts by better serving key customers, and it completes by developing a new business mindset required to succeed in the digital era.

On the other side of the barbell, there are investments in technologies and products that have the potential to take a leap forward and potentially make the current business model irrelevant. And yet, those are the bets that will make the company survive in the long-run.

Balancing Things Out With A Long-Term Unbalanced Approach

In short, a technological model can be used as a framework to manage tech investments for companies. Technology is a value proposition enhance, and as such, it can make a business more relevant and make a whole business model irrelevant in the long-term.

FourWeekMBA proposes a barbell approach to technological modeling. On the one side, the company keeps tweaking its business model with a continuous innovation approach. And on the other side, it invests in technological innovation that instead can make the business leap forward and also potentially make the whole current business model irrelevant in the long-term.

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Published by

Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"