Tech CompanyInformation Age giving us something new to behold every other day, the market is becoming increasingly more competitive to proliferate them. Just like the human imagination, there is no cap to technological innovations, and with the Information Age giving us something new to behold every other day, the market is becoming increasingly more competitive to proliferate them. Blockchain, in this context, has emerged as one of the biggest drivers of a new range of companies specializing in this technology, some of which are narrowing the margin between the profits they rake in and that recorded by industry giants. To understand their break-neck speed progress, here are three tried and tested rules of the game these young firms have followed, its efficiency unquestionably established by their famous predecessors: 1. Negotiating relationships with tech giants/ tie ups It is unrealistic for any new entrant to expect to bring in hefty business from day one. If it claims to have done so, its run would be a short lived one. The route taken by enterprises with a bigger picture in mind is similar to that which was taken by Microsoft in its early years- that of building associations with already established brands. At a time when MSDOS did not have a large user base, Microsoft negotiated ties with IBM and Intel to fuel growth expectations, and achieve network effects. The resulting growth in value attracted even more participants, and a reliance on economic incentive to engage them, brought down the overhead costs for the software company which could have otherwise slowed down the spreading of a comparatively conventional business network. 2. Scalability In today’s world there is no dearth of innovations tailor made to address specific problems. Therefore, to stay ahead of completion, a platform, products or service is only as good as its adaptability to different uses. In case of the MSDOS platform, its transformative power came from how the enthusiasm of individuals interacting with it, who strived to better their own contribution to enhancing the platform in exchange of rewards, as well as to simply outdo competition. Such interactions between individual players with the platform, and groups of payers, and inter-group collaborations without any interference from Microsoft, evolved into a highly experimental web ecosystem- a formula for low cost productivity to be followed for generations. A brilliant example of the ongoing culmination of scalability can be noticed in the case of blockchain technology. Initially designed to be a hi-tech mode of finance and payments, it is now implemented to enhance the efficiency in operation of almost every industry conceivable. Take for example the sort of spike in quarterly returns HashCash- a California based software development company – has recorded since its decision to go beyond simply being a global leader in providing blockchain based banking solutions. This year alone they have forayed into the online gaming industry, online music streaming sector, electric vehicle manufacturing industry, and diamond supply chain industry, among others, bravely molding the revolutionary technology to fit different environments. 3. Concept of “compression” Sometimes people are prone to discredit companies that reflect record performance simply because of the short time of span they have achieved their goals in. This happens because we are accustomed to the idea that everything good takes time to build, and often a name that comes to mind in this regard is Apple. Look closer at the company’s road map and you will find a contradiction of the popular notion that Apple took 42 years to become what it is today. Because, much of its record-breaking valuation was achieved in the decade after the iPhone was launched. This exemplifies compression affect within the same company- utilizing a specific innovation to take the profitability of an already existing technology leagues ahead. The probability of younger tech companies to benefit from similar strategies is high, and, on analysis, the firms most likely to follow Apple in this feat of breaking the trillion dollar mark are either Amazon, Alphabet, Google’s parent company, or Facebook, provided it can overcome its monthly active user curse.
Thu Aug 5 , 2021