TECHNOLOGICAL LEVEL OF A NEW COMPANY

Accelerate your business with these tips "Technological degree of a new company". Analyse and discover this TIP!

Technological grade

• No technology / Handmade or Manual.
• Low level (traditional technology or little digitisation).
• Medium level (Medium digitisation).
• High Level (High digitisation/automation/high R&D&I).

Technology is a key factor in a company's ability to innovate, produce and compete in the marketplace.

Depending on the level of technology used in a business, three levels can be distinguished:

• NON-TECHNOLOGICAL / HANDMADE OR MANUAL:

This level refers to enterprises that use manual processes and tools to produce their products or services. This implies a high dependence on labour and low efficiency in production.

In general, such enterprises are more common in sectors where production is limited and large investments in technology are not required. Examples of this level are handicrafts, traditional food production or hand-made products.

• LOW LEVEL (TRADITIONAL TECHNOLOGY OR LITTLE DIGITISATION):

This level refers to companies that use traditional technologies to produce their products or services. These technologies may include basic machinery and equipment, but with a low degree of automation and digitalisation.

In general, these types of enterprises have a limited capacity to innovate and compete in the market, as their technology is obsolete or highly standardised. Examples of this level are small production companies or mechanical workshops.

• MEDIUM LEVEL (MEDIUM DIGITISATION):

This level refers to companies that use digital and automated technologies in their production and operations. These companies use computerised systems to control production, inventory management and daily operations. They may also use data analysis tools to improve efficiency and decision-making.

In general, these types of companies have a medium capacity to innovate and compete in the market, as they have sufficient technology to be competitive, but they have not yet reached the level of highly digitalised companies. Examples of this level are e-commerce companies or small technology companies.

• HIGH LEVEL (HIGH DIGITALISATION/AUTOMATION/ HIGH R&D&I):

This level refers to highly digitised and automated companies, which use advanced technologies for production and operations. These companies use integrated production management systems, robotic automation, artificial intelligence and advanced data analytics to optimise production and improve decision-making.

In general, these types of companies have a high capacity to innovate and compete in the market, as they have advanced technology and a strong investment in research and development. Examples of this level are large technology companies, advanced manufacturing companies or financial services companies with a strong digital presence.

EXAMPLES OF COMPANIES FOR EACH TECHNOLOGY LEVEL:

• No technology / Handmade or Manual: a company producing handicrafts or handicrafts, or a small furniture repair shop.
• Low level (traditional technology or little digitisation): a small textile factory using basic machinery, or a bakery using a traditional oven to bake bread.
• Medium level (Medium digitisation): an online shop using an inventory management and order dispatch system, or a small business using software for accounting and invoice management.
• High Level (High digitisation/automation/high R&D&I): a large car factory that uses robots on the production line, or a technology company that uses artificial intelligence and big data analytics to improve its products and services.

What level of technology do investors like to invest in?

Investors often show interest in companies that are at the High level. (High digitalisation/automation/high R&D&I). This is because these companies have a increased ability to innovate and compete in the marketplaceThis in turn increases their chances of long-term growth and success.

In addition, investment in advanced technology and research and development demonstrates a commitment to continuous improvement and adaptation to new market trends, which can be attractive to investors.

How to acquire lasting competitive advantages (+) at each level of technology?

EXAMPLES OF COMPETITIVE ADVANTAGES AT EACH LEVEL OF TECHNOLOGY:

• NON-TECHNOLOGICAL / HANDMADE OR MANUAL:

Competitive advantages at this level can be achieved through specialisation and quality. Companies using manual processes have the ability to customise products and tailor their production to specific customer needs.

In addition, they can differentiate themselves from their competitors through the quality and design of their products.

• LOW LEVEL (TRADITIONAL TECHNOLOGY OR LITTLE DIGITISATION):

Competitive advantages at this level can be achieved through improved efficiency and productivity. Companies can achieve this through investment in more advanced machinery and equipment, as well as in training their staff to increase the efficiency and quality of their production.

• MEDIUM LEVEL (MEDIUM DIGITISATION):

Competitive advantages at this level can be achieved through improved production efficiency and quality, as well as customisation of products and services. Companies can achieve this through the implementation of advanced digital technologies, such as production management systems and data analytics, to improve efficiency and decision-making.

In addition, digitisation can enable companies to offer personalised products and services through automation and integration of customer information.

• HIGH LEVEL (HIGH DIGITALISATION/AUTOMATION/ HIGH R&D&I):

Competitive advantages at this level can be achieved through technological innovation and adaptability. Companies that are highly digitised and automated may be able to introduce new products and services faster and more efficiently.

In addition, their ability to analyse large amounts of data allows them to identify market opportunities and adapt to changes more quickly than their competitors.

Investment in research and development can also be a source of competitive advantage at this level, as it allows companies to create new products and technologies that may be difficult for competitors to imitate.

Examples of well-known companies at each level of technology

THE FOLLOWING ARE SOME EXAMPLES OF WELL-KNOWN COMPANIES AT EACH OF THE TECHNOLOGY LEVELS:

• NON-TECHNOLOGICAL / HANDMADE OR MANUAL:

  • Handcrafted carpentry workshop.
  • Shop selling artisan bakery products.
  • Small shops selling handmade jewellery.
  • Natural and organic food producers.

• LOW LEVEL (TRADITIONAL TECHNOLOGY OR LITTLE DIGITISATION):

  • Repair shops and small car repair companies.
  • Small-scale food production enterprises.
  • Manufacturers of traditional tools and machinery.
  • Traditional textile producers.

• MEDIUM LEVEL (MEDIUM DIGITISATION):

  • Small e-commerce companies.
  • Financial services companies with a strong digital presence.
  • Business management software companies.
  • Transport and logistics companies with digitised order tracking.

• HIGH LEVEL (HIGH DIGITALISATION/AUTOMATION/ HIGH R&D&I):

  • Leading technology companies such as Apple, Microsoft and Google.
  • Advanced manufacturing companies, such as Tesla and Boeing.
  • Health technology companies, such as Johnson & Johnson and Pfizer.
  • Large-scale e-commerce companies such as Amazon and Alibaba.

Degree of technology in startups

The technology grade of a new company refers to the extent to which technology is a key factor in the company's success. As with a startup, the technology grade of a new company can be assessed on the basis of several factors.

FACTORS:

1. Technological innovation: Is the company developing innovative technology or using existing technology in innovative ways to offer new products or services?
2. Development capacity: Does the company have a strong and experienced technical team capable of designing and developing high quality technology?
3. Technological scalability: Is the company's technology scalable and able to support business growth and market demand?
4. Technology integration: Does the company use technology efficiently and effectively to improve efficiency and reduce costs?
5. Intellectual property: Does the company have patents or intellectual property rights that protect its technology and give it a competitive advantage in the marketplace?

In general, The higher the technological level of a new company, the greater its ability to innovate and compete in the market. However, it is important to bear in mind that the level of technology is not the only factor that determines the success of a company.

It is also important to consider other factors, such as the business model, marketing strategy, financial management and leadership team.

How to create a new company at every technological level?

THE FOLLOWING IS AN EXAMPLE OF A NEW COMPANY FOR EACH OF THE TECHNOLOGY LEVELS:

• NON-TECHNOLOGICAL / HANDMADE OR MANUAL:

Let's imagine that someone wants to open a small shop selling artisan baked goods. The company will use manual processes to produce its products, such as kneading and baking by hand.

The company's competitive advantage may be the quality and authentic taste of its products, as well as the ability to customise its production to specific customer needs.

• LOW LEVEL (TRADITIONAL TECHNOLOGY OR LITTLE DIGITISATION):

Suppose someone wants to start a small-scale food production business. The company will use traditional technologies, such as ovens and basic equipment, but with a low degree of automation and digitalisation.

The company's competitive advantage can be the quality of their products and the production efficiency they can achieve by improving manual processes and investing in more advanced equipment.

• MEDIUM LEVEL (MEDIUM DIGITISATION):

Let's imagine that someone wants to start a small e-commerce company for beauty products. The company will use digital technologies to control inventory management, order management and daily operations.

The company's competitive advantage can be the personalisation of its products and services, as well as the automation of processes that allow them to offer better customer service and a more satisfactory shopping experience.

• HIGH LEVEL (HIGH DIGITALISATION/AUTOMATION/ HIGH R&D&I):

Suppose someone wants to start a high-tech sportswear manufacturing company. The company will use advanced production technologies such as 3D printing and robotic automation.

It can also invest in research and development to create new fabrics and technologies that enhance athletes' sporting performance. The company's competitive advantage can be technological innovation and the ability to customise production for customers.