The past decade saw many new emerging technologies with the potential to change the face of the digital arena for us. The notable ones such as block chain, artificial intelligence (AI), facial recognition, etc, have not been adopted by many companies. This report on emarketer proves our fears: in a survey consisting of 679 senior level respondents, only 9% had implemented block chain and voice activated tech, and only 7% had implemented facial recognition and AI. Considering how paradigm shifting these emerging inventions could be, these figures are reason enough to elicit surprise.
On further investigation, the following reason seemed to top the list for why companies are adopting new technologies so slowly.
As in any other business investment, one of the main hurdles faced is that of finances. 36% of the businesses surveyed by TomTom Telematics, claim costs are the biggest barrier. Small to medium sized enterprises are wary of investing in these new technologies – if the investment turns out to be a fail, the setbacks will be tough to bear.
- Not ready
In a marketing poll consisting of 500 participants, conducted by Conductor, 57% of the respondents felt themselves to not ready to embrace AI. For many, the change is too much. However, for some this change could potentially have implications on how they execute their business. For example, the block chain’s open to all ledger could make some practices more transparent.
- Reluctance to change
This reluctance to change stems from the mindset of people, too. Business owners believe they have been doing fine all this time – what is the need for change? Contrary to this belief of remaining static, chief executive officer of ARK Investment Management, Catherine Wood says on CNBC, “companies’ ability to change their mindset may define their ability to survive in the long term”.
Are business owners and companies making a fatal error?
- Lack of skill to implement technology
In the Trends vs. Technologies 2016 report, 78% agree with the importance of keeping up new technology. So it is safe to say while there is a population that believes implementing new technologies in their business practices is not worthwhile enough, there are others who recognize the importance of embracing new technologies. If there are such a vast number of people in agreement then why is there a gap in implementation? As it turns out, one of the most common obstacles is a lack of skill in applying these new technologies to where they will bear fruit.
- Risk & rewards
Despite being promising, many technologies fail to ever take flight. This fear of unprofitable and negative outcomes has barred companies and small to medium sized enterprises from taking the risk, alike. While on one hand a cautious approach is good, one must realize leaps are necessary to move forward. It is important to strike balance, and according to Lee Penson, founder of Penson, “the trick is not to be left too far behind”.