It’s no secret that tech companies focusing on growth also need to be embracing innovation if they want to keep up with their competition.
It’s simple: If you’re not moving forward, you’re going backward. And startups have it the hardest, with research by McKinsey and Company suggesting that for companies managing to grow 20% each year, just one in ten will last for more than a few years.
For most companies, scaling correctly means juggling rapid growth while ensuring that their core structure, functions and processes are protected. And for more mature businesses, this means adapting or creating different business processes in order to make them more effective.
The good news? On-demand and cloud services are making it cheaper and less complex to expand than it has ever been before. Tech companies focusing on scaling can track issues with systematising tools and can collaborate with teams using tools like Basecamp, Asana, Skype and Google Hangouts.
As core enterprise software tools undergo rapid change, companies that would once need to invest in client-server infrastructure or physical mainframes can now just sign up for a cloud-based service like Workday (finance and human resources) Salesforce (CRM) and Quickbase (database).
However, tech companies and software development firms may find that there’s only limited space for growth in their local market, meaning that it’s imperative for them to move into new areas quickly (especially if they’re based in Australia). Failure to move fast enough can mean that someone else copies their idea- something that the German Samwer brothers have successfully built a business around as they clone ideas from US tech companies.
Innovation Promotes Fast Growth
Tech companies have a number of approaches open to them when it comes to new markets. They can sell to overseas customers, work with partners or established intermediaries, outsource, or completely relocate their business. While selling directly can appear more lucrative, it also means that you’re stuck with local licensing, compliance and auditing laws.
50 years ago, when business owners thought about their competition they would be thinking about a business in the same city or at least the same country. Today, however, tech companies are competing on a global scale, with businesses around the world reaching out to customers online.
Tech and innovation go together like bread and butter, and businesses unprepared to rethink and improve their existing products and services are unlikely to reach new customers and grow.
This means supporting innovation in all levels of your business and asking customers, employees and managers to think outside the box- encouraging them to speak up when they see room for improvement.
Tech businesses will often need to choose between adding new features to their product (ensuring it remains competitive) or incrementally improving the existing features of the product. Another way to realise massive growth is to expand your offering beyond your initial products and services.
Businesses focusing on innovation are more likely to save money and time, increase efficiency, boost performance, improve employee productivity and overtake the competition.
The Key to Scaling? Talent.
For tech businesses focused on growth, the biggest obstacle is often simply a shortage of talent. In the United States, demand for software developers will be growing by 20% each year up to 2022, as every sector places a premium on digital skills.
In the UK, India, and Australia, fewer people taking STEM subjects (science, technology, engineering and mathematics) has led to a shortage of educated, experienced developers.
This means that tech companies (and indeed all businesses) must be proactive about finding the best employees for the job. Building relationships with developers even when they’re not actively looking to switch companies, learning about the things that good developers want (and what would encourage them to work for you), and retaining your
current talent will put you ahead of your competitors.
Successful businesses are usually successful because they have the best people working for them which is why you can’t afford to be trying to hire quickly when a software developer leaves.
Outsourcing your tech recruitment is an excellent way to ensure that you have the best talent at your fingertips. Sign up to our email list for updates and follow us on LinkedIn as we look into global recruitment strategies over the coming weeks.