Navigating Economic Downturns with a Bimodal Technology Strategy: How to Increase Efficiency and Gain Market Share
The global economy is subject to periods of uncertainty and unpredictability, and during these times, companies must be nimble and proactive in order to remain competitive and thrive. One effective strategy for navigating economic downturns is to leverage technology investments in order to increase efficiency, gain market share, and position the business for future success.
“Bimodal” strategies can provide companies with a powerful tool for leveraging economic downturns and use turn them to their advantage. By leveraging technology investments during these periods of uncertainty, companies can both increase efficiency and gain market share, positioning themselves for success as the economy recovers. This is in line with the industry consensus, as noted by leading research firms such as Gartner, Forrester, and McKinsey.
Gartner has emphasized the importance of technology investments for driving innovation and growth, stating that “investing in technology is essential for companies to stay competitive and drive business growth.”
Similarly, McKinsey has noted the importance of technology investments for driving innovation and growth in times of uncertainty, stating that “during recessions, investing in technology is critical for companies to stay ahead of the curve and drive business success.”
Here are three examples of companies that have successfully implemented a bimodal strategy:
- Salesforce – During the 2008 financial crisis, Salesforce invested heavily in cloud computing technology. This was used internally to increase efficiencies as well as Productized. This allowed the company to offer its customers a more flexible and scalable solution, which helped Salesforce to gain market share and increase its customer base. As a result, Salesforce’s revenue grew from $1.3 billion in 2008 to $17.1 billion in 2020.
- Zoom – In response to the COVID-19 pandemic, Zoom quickly pivoted its business model and became one of the most popular video conferencing solutions. The company invested heavily in technology, including the development of new features and improvements to existing ones, which helped Zoom to increase its customer base and gain market share. As a result, Zoom’s revenue increased from $325 million in 2019 to $1.92 billion in 2020.
- Square – During the 2008 financial crisis, Square introduced its mobile point-of-sale technology, which allowed small businesses to accept credit card payments with a simple device that plugged into their smartphones. This innovative solution helped Square to gain market share, increase its customer base, and position the company for future success. As a result, Square’s revenue grew from $371 million in 2018 to $3.03 billion in 2020.
In each of these examples, the companies leveraged technology investments during an economic downturn to increase efficiency, gain market share, and position themselves for future success. By automating routine tasks, streamlining processes, and investing in innovation, these companies were able to thrive in a challenging economic environment and emerge stronger on the other side.
So where do you start? Here’s how to effectively implement this bimodal strategy:
- Focus on high-impact areas: During an economic downturn, it’s important to focus on technology investments that will have the greatest impact on efficiency and market share. This could include investments in automation, cloud computing, and big data analytics.
- Increase operational efficiency: By automating routine tasks and freeing up employees to focus on higher value work, technology can help companies increase operational efficiency and reduce costs. This can help to offset any negative impact on revenue during an economic downturn. Forrester has also highlighted the role of technology in improving operational efficiency, stating that “by leveraging technology, companies can automate routine tasks, streamline processes, and reduce costs.”
- Gain market share: In a challenging economic environment, companies that are able to innovate and differentiate themselves from the competition will be more likely to gain market share. By investing in technology that drives innovation, companies can gain a competitive advantage and attract new customers.
- Future-proof your business: By investing in technology during an economic downturn, companies can ensure that their business processes and infrastructure are prepared for future growth and success. This can help to reduce the risk of obsolescence and position the company for long-term success.
- Prepare for recovery: As the economy recovers, companies that have invested in technology during an economic downturn will be better positioned to take advantage of new opportunities and drive business growth. By improving operational efficiency and gaining market share, these companies will be well positioned to emerge from the downturn stronger than ever.
In conclusion, history has shown that companies that employ a bimodal strategy that leverage technology investments during economic downturns emerge stronger on the other side. As noted by leading research firms such as Gartner, Forrester, and McKinsey, investing in technology is critical for driving innovation and growth. By focusing on high-impact areas, increasing operational efficiency, and gaining market share, companies can ensure their long-term success and prepare for a brighter future.