Traditional Companies Need to Start Thinking Like Tech Startups

For several years now, we have seen the explosive growth of tech startups. It is no coincidence that 6 of the 10 highest-valued companies in the world are tech-based companies: Apple, Microsoft, Google, Amazon, Tesla, and Meta (Facebook).

I have worked with both traditional and tech companies and have seen the differences in their cultures, processes and philosophies. In my opinion, the key differentiator that has helped tech startups succeed is their mindset.

Why do you think startups continue to grow?

The answer is simple: adaptability and iteration.

These two concepts might sound simple but they are very difficult to implement. In order to adapt and iterate, you must first be open to change, and the path to success comes from the leader giving their team the confidence to innovate, propose and execute new projects.

Specifically, tech startups tend to think of themselves as constantly evolving companies that are never satisfied with the status quo. They are always looking for ways to improve their products, processes, and overall business model. This constant state of improvement is what has allowed them to grow at such an exponential rate.

In contrast, traditional companies tend to be much more risk-averse and set in their ways. They are often resistant to changing their proven methods, even when it is clear that those are no longer working.

Many of these companies will ask themselves: Why should we change our approach if we keep selling, or why adapt to technology if we're still No. 1 in the market?

If the recent pandemic doesn’t answer that, the way work has changed indicates a revolution: changes in location, openness to remote workers, tech tools to manage different projects, and many more.

When a company is open to change, it can become flexible and react quickly to the ever-changing market demands. On the other hand, if a company is not open to change, it will struggle to keep up with the competition and eventually be left behind.

A great example is the recent launch of the fintech Spin, backed and developed by Femsa’s convenience store, Oxxo. 

Oxxo is already the market leader in convenience stores in Mexico with more than 20,000 units in the country and is expanding to other countries in Latin America and Europe. In the first quarter of 2022, their sales increased 12.7 percent. They did not need Fintech to grow, but they still developed a digital solution for financial services. 

Of course, adopting new technologies can be a challenge for traditional companies but with the right strategy and implementation, it can be a major game changer. 

If you're looking to use technology to give your company a competitive edge, here are a few things to keep in mind:

• If a position can be remote, don't force people to attend in person

Yes, we know that micromanagement is one of the evils of our times. The need to know what our team is doing 24/7 seems important to achieve results. Still, it is not worth losing the advantages of working remotely: quality of life for the employee, productivity, lower office rental costs, and more productivity are just a few of the benefits of remote work.

• Use tech in your favor

It is essential for companies to use technology to their advantage. There are a number of ways companies can do this, from using social media to connect with customers to using data analytics to make better business decisions.

Use technology to simplify your processes and increase your efficiency. There are tons of platforms and IT solutions that are cheaper and easier to use than older and more expensive systems. Use platforms for messaging, communicating, following up on results, designing, and creating.

• Be agile

Bureaucracy is on its way out and the companies that are agile enough to adapt are the ones that are going to succeed. 

Agile organizations leverage standardized ways of working to facilitate interaction and communication between teams, including the use of common language, processes, meeting formats, social networking or digital technologies. This minimizes handovers and interdependencies that can slow down production cycles.

• Connect with your customers and focus on their needs

Thanks to social media, customers now have a direct line to your company – and they expect you to listen to them. If you want to stay ahead of the competition, you need to start connecting with your customers and understanding their needs.

In the digital age, customers are more empowered than ever before. They have access to vast amounts of information and can easily compare products and services to find the best value for their needs. As a business, it’s important to focus on delivering maximum value to your customers by understanding their needs and providing solutions that improve their lives.

As technology evolves, so do the ways in which businesses operate. What was once considered cutting-edge technology may quickly become commonplace and those who don’t keep up may find themselves at a disadvantage. For traditional companies, it’s important to start thinking like tech startups in order to stay ahead of the curve. This means understanding the latest trends and developments in technology and how they can be applied to the business.