Technological modeling is a discipline that provides 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
The premise of technological modeling, according to FourWeekMBA (Disclaimer: The author is the Founder of 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.
Barrelling Things Out With Tech Bets
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 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.
(Disclaimer: The author is the Founder of FourWeekMBA)