Being an entrepreneur is not an easy task, especially in a society that experiences enormous changes. However, knowing how to behave in the face of technological changes can help and increase business opportunities. Gabriel Lázaro, Europe Business Manager, QuEST Global gives us the keys for those who want to undertake in the world of technology.
Contents
Tech startups: Global growth
- What are tech startups?
- “New” technological environments (AI, IoT – Big Data, BlockChain)
- Strategic analysis (business model and value proposition
- Key factors for growth and sustainability (people, strategy, execution and financing)
- Cases of companies in their globalization processes
Startups: Internationalization in the digital age
Today it can be said that we are in the middle of the digital age. That is, we live in a society that is in a process of constant and rapid change; Furthermore, we live in an environment in which we are getting used to the fact that this change and this evolution go hand in hand with our adaptation to technological advances.
Especially in the context of global growth and internationalization currently being experienced. Companies have to be able to create a competitive advantage and adapt to the changes marked by this new technological era, in order to progress and be successful. They need a strategy.
For example, one of the competitive advantages for companies has been to implement teleworking. In this sense, it should be noted that globalization implies being in contact with people from different countries and cultures. Therefore, incorporating teleworking as a new digital strategy has allowed many technology startups to adapt to the new demands of the international market; This strategy provides the opportunity to facilitate labour relations, as well as favour conducting business worldwide.
What two things do the world’s tech startups provide?
- A product and/or a service
- A solution
Customers buy two things: on the one hand a product and, on the other hand, the trust that you give them. As human beings, we remember bad things. If you make a mistake with a client or with the product you sell, you will lose confidence. It is awful. So, you have to follow carefully.
Pitfalls for Startups
Tech startups face new challenges. In general, a cognitive bias – non-logical (internal and external) can be appreciated, and which represents around 70% non-logical. However, only 30% would correspond to the rational part, the decisions we make in a logical way. In this sense, the following come into play:
- On the one hand the heuristics: we do not have all the information
- Another important point would be moral: inherited culture family/region
- Without forgetting about emotions: rational vs emotional
- Finally, social influence: decisions that are marked by the general opinion of society
In addition, it should be noted that sometimes not only technology startups, but companies in general, underestimate the complexity of activities and relationships. Similarly, the pursuit of innovation as an objective and not as a means, as well as managing uncertainty.
The balance between Ethics and Values
In general, technology can be dangerous because it has the ability to influence your audience. For example, Facebook in recent years has published a series of posts in the US in order to influence the audience. In fact, it is shown that this is something very easy to do, but that it is ethically wrong.
Startups in the digital age: Where to Innovate?
First of all, you have to look at the business model and the value chain.
Where are the opportunities internationally?
5 forces determine the long-term profitability of a market
- The threat of entry of new competitors
- Bargaining power of suppliers
- Rivalry within competitors
- Bargaining power of buyers
- The threat of substitute products
6 entry barriers for a market
- Scale economics
- Product differentiation
- Access to distribution channels
- Capital investment
- Cost disadvantage regardless of scale
- Government policy
Also, don’t forget about key partners and customer relationships, key value propositions and activities, as well as key resources, channels. Lastly, it is important to look at the cost structure and source of income.
Of course, all this without forgetting your clients. Remember that customers are key to a successful business. Therefore, we must try to maintain our network of consumers and give them the best, since competitors will try to copy and take over your network of clients.
What are the key drivers of growth?
Above all the aforementioned, for a startup to grow and we can give it that international boost, 4 main factors must be taken into account:
- Persons
- Leaders, team and managers
- Strategy
- Values, purpose, and competencies
- Execution
- Priorities- “focus” + “Finish Line”
- Data- prediction
- Rhythm of execution
- Cash
- Cash flow, profitability, financial levers
In the same way, it must be taken into account that for these growth levers to be fruitful, it is necessary to have the appropriate personnel; y
Startups at Aerospace & Aeroengines
If we analyze this market, we find large companies established in the sector, such as Urban Air Mobility Bell (Bell-nexus), Hyundai-Uber (SA-1) and their relationships with Boeing, and Uber elevate. Additionally, aircraft certification and commercialization testing are expected to begin 2023 in 2025.
Technological Implications
- ML I DL + computational capacity + connectivity> flight simulation
- Materials science – lighter materials, with more resistance while maintaining safety levels
- Component Printing Capability
Generally, there are ways to enter a market through the value chain. Always bear in mind that where there are weaknesses in other companies, your opportunity may appear. For example, from an existing model, it can be upgraded to a better and more efficient model.
Transportation, High-Speed Train & Car Sharing
- Regarding transport, we must highlight the railway lines that exist internationally between Toronto – Montreal, Miami – Orlando, Dallas-Laredo – Houston, Glasgow-Liverpool.
- Finally, to the car-sharing concept, this new autonomous car mobility model is the order of the day, also being 80% cheaper than having your own car.
You have to think about unmet customer needs and think and invent things to solve them. Therefore, in this sector, there is also space for startups!
Tech Startups: Energy & Industry
The era of renewable energies – LCoE
In general, it must be taken into account that this sector is highly marked by costs. Always thinking of ways and changes in the value chain so that costs are lowered.
- Industry 4.0
- Digital technologies
- Connected ecosystem
- Texas- ERCOT
Society has to keep moving forward and generating, do not wait for companies to make the first move. However, the most important thing is that we have to be responsible for the decisions we make.
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