Why are technology companies focused so much more on earnings per share than innovation?


Since the beginning of time innovation has been the driving force of the success and prosperity of the human race. Innovation has given us all the ability to open our minds to things that we may never have thought to be possible and strive for more than what is expected of us.

The biggest industry of growth, when it comes to innovation has always been the ever changing technology industry. Innovation in this industry has and will always have to be constantly moving forward in order to meet the demand from consumers for something better than what they have now.

Over the past few years however, manufacturers have taken their focus away from driving innovation. Instead they have allowed themselves to focus more on acquiring companies who can complement or improve the offerings they already have. While this approach is low risk and potentially high reward, it is not showing their customers that they are truly dedicated to driving innovation.

This business model is also not good for the industry since it will maintain an oligopolistic market. Instead of new manufacturers striving to become the next industry leader, they can focus on developing one or a few key products or services in hopes of being acquired by one of the large corporation. This is therefore leading to more highly focused companies that fit a specific niche in the market as opposed to having companies that are trying to create the best all around solution for consumers.

Committing to drive innovation through an ongoing investment in research and development will be important to maintaining the standard within the industry. Smaller firms will not have the ability to create a product line or detailed enough solutions in comparison to the industry leaders and therefore, those leaders, need to be at the forefront of driving innovation for the future. The demand for newer and better solutions will always be there but in order to ensure that the demand is being met, it is important to be ahead of it and ensure that the development of new demand meeting solutions is underway before consumers recognize their need for them.

The core beliefs of technology companies has been and needs to continue being that they are focused on innovation and being the technology leader of the future. Their customers want and need to continue growing and being on the cutting edge of technology but they will only trust a vendor who wants the same thing.

Do you feel that your company is innovative? If so, in what way? I look forward to hearing from you in the comments below.


About johnjblair

John J. Blair is the President and CEO of Blair Technology Solutions responsible for technology, innovation, and providing customized IT strategies to strengthen operations for enterprises across various industry verticals. His reputation is renowned as a results-driven leader, whose effective team-building skills and strategic development expertise have helped his clients achieve IT business success with cost-effective solutions. With almost 35 years in the IT industry, John has established a highly skilled team with expertise in providing personalized and customized IT solutions to a variety enterprises across Canada. Under his tutelage, his company is committed to customer service excellence, providing IT professional technicians to support the ongoing growth and needs of any IT department. Always on the leading edge of emerging technologies, John entered into the Managed Services field early and developed a Managed Services division under the Blair brand. John holds a Bachelor of Commerce from Concordia University and has many industry certifications.
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