This year is going to be a pivotal one for technology decisions. There is no doubt the container shipping industry has a major opportunity to benefit from new technology. In 2017, there was no shortage of tech companies pitching an array of new offerings. Yet, selecting the right technology will have a far greater impact on most shippers, carriers, and non-vessel-operating common carriers (NVOCCs) than all typical major decisions.
The business case for most typical major decisions, like deciding to order new ships or consolidate distribution centers, can be guided by data from similar decisions made in the past. However, much of the technology available in 2018 didn’t exist before 2017, so it’s difficult to model and project the impact new technology decisions will have. What we do know is missing this industry’s wave of digital transformation can render even the most respected carriers, shippers, and NVOCCs obsolete. Therefore, it’s imperative for executives to think carefully, yet act decisively when selecting new technologies.
Consider three important factors:
- Focus on technologies that provide practical solutions to real business needs. These give “quick wins” to the business case and hold great potential for more innovation and value in the longer term. Tech companies that offer only futuristic solutions won’t survive if they can’t generate value in the present.
- Don’t be afraid to follow the innovators. Innovators invest resources evaluating new technologies and selecting the best. Fast followers get the same benefits without the cost. Furthermore, innovators create “centers of gravity” that can turn burgeoning technologies into formidable disruptive forces for late adopters.
- Check for security and compliance. Mistakes in this arena can be disastrous, so only rely on tech companies that address this comprehensively. This is also a good “litmus test” for the overall robustness of the tech company being considered.