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The world is changing, and the most successful businesses are leveraging technology to enhance their business model in multiple ways. A tech-enabled business finds it easier than other businesses do to adapt to changes in consumer demands.
But what is a tech-enabled business? And what’s the difference between a tech-enabled company and a technology company? Read on to learn more.
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What Is a Tech-Enabled Business?
You can think of tech-enabled businesses and technology companies as two sides of the same coin.
Technology companies typically build technologies such as software and hardware. They create the algorithms and platforms behind the internet. They also provide the search engines, smart devices, and social media platforms we rely on every day. Common examples of technology companies include Microsoft, Samsung, and IBM.
However, tech-enabled companies don’t necessarily build new technologies. Instead, they use technologies to improve their workflow, products, and services. They appreciate technological and industrial developments and utilize them for their business models.
In a nutshell, tech-enabled businesses may leverage technologies, platforms, libraries, and frameworks to optimize their core business. For example, Uber didn’t invent GPS technology. But the transportation company certainly applied it to its ridesharing business model.
What Are the Benefits of Running a Tech-Enabled Business?
The advantages of having a tech-enabled business are four-fold and include customer engagement, efficiency improvement, cost reduction and increased revenue.
1. Customer Engagement
Modern customers, especially millennials, demand products and services in real-time. They expect immediate feedback. Tech-enabled businesses stay current with their customers more easily because they use the required technological tools to serve their customers.
Take, for example, the disruptive real estate marketplace, Nobul. This sophisticated online platform empowers homebuyers and sellers by offering them tech-enabled tools. It gives clients the data they need to make informed choices when buying or selling homes or matching with verified real estate agents.
In an interview with BNN Bloomberg, Regan McGee, the CEO of Nobul, explained why his platform is popular with first-time homebuyers such as millennials.
He shared, “This is what people are demanding nowadays, especially millennials. This is how they want to do everything. They want information, they want transparency, and they want it tech-enabled.”
Another example is Airbnb. The tech-enabled marketplace for rentals has made travel and homestays more convenient and affordable for travelers by connecting hosts and users through apps on their phones that use complex algorithms.
2. Efficiency Improvement
Tech-enabled businesses are improving efficiencies by automating processes and reducing the chances of human error. The latest software and hardware can also help tech-enabled companies find efficiencies, freeing up resources for other tasks.
3. Cost Reduction
Businesses leverage technology to reduce costs. They’re lowering overheads, streamlining processes, and automating manual tasks. This means they need fewer employees to complete the same amount of work.
4. Increased Revenue
Tech-enabled businesses have many opportunities to increase their revenue. For example, sales businesses can use data analytics to optimize sales strategies and marketing campaigns to generate more income.
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Tech-Enabled Businesses Develop Creative Solutions
The world has changed considerably in the last decade. It will continue to change at an accelerating pace for years to come. Technology has become ubiquitous. It affects us all in ways we hardly realize on a daily basis, from transportation to rentals to real estate. Tech-enabled businesses understand this and respond to market pulls by providing solutions that leverage technology for everyone’s betterment.
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