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When I started Appfire in 2005, hardware was king and companies like Dell, IBM and HP were the leaders and innovators of all things tech. Businesses relied heavily on hardware to fuel their IT infrastructure, and the idea of the cloud seemed like a utopian dream. My partner and I built our business to support traditional hardware-centric models, and it was a system that served as well in those early years.
By 2010, I found myself at a crossroads as the rise of cloud computing was slowly shifting focus toward virtualized environments and we were deep in development to deploy new collaboration software on a hardware-based platform. VMware burst onto the scene, making virtualized software all the rage. Hardware evaporated almost overnight.
As a business leader, I had to make a difficult decision: should I steer my team and company in a direction that would essentially abandon all the work we’d put towards our hardware-based product to jump on the virtualization trend with the rest of the market and our competitors? Or should we stay the course, pressing on with our product that was built on a hardware platform? After careful deliberation, we decided against investing in virtualization right away as the timing wasn’t right for us.
I’m reminded of this anecdote as the AI boom continues its momentum, with no signs of slowing down. Just take a look at Nvidia’s recent earnings or Atlassian’s introduction of Rovo, an AI assistant. Someday, when we look back at the history books, this period will be marked by the incredible rush and shift we’ve seen from companies of all sizes to integrate AI into their offerings. This extends beyond merely providing AI-powered solutions. Companies are rebranding, restructuring and reinventing themselves as AI-centric to attract investment, talent, and market share.
As business leaders, we’re constantly faced with the challenge of whether we, too, should jump on the latest trend. Do we follow the pack and shift our entire strategy and product roadmap, or remain on our current path?
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Through my own journey of growing and scaling a leading software company from $10 million to over $200 million ARR in four years, I’ve identified three tips that can help leaders determine whether to embrace a trend or stay the course.
1. Ensure the shift aligns with what customers want
Don’t lose sight of customer wants and needs during times of change. Getting it right for your customers is more important than being right. Research has found that more than 90% of people believe companies should listen to customers to drive innovation. Even if as a business leader you vastly desire to incorporate AI into your end model, if it’s not important to your customers you will fail and you won’t make a profit.
There are several ways you can get this feedback from your customer base. Deploying customer surveys, implementing a customer advisory board and meeting with customers in person are great ways to understand if what you are building makes sense for your customers. If your company has a strong channel program, talk to your partners regularly about what they are hearing from customers
2. Determine if you have the right resources
It can be tempting to jump on a trend, particularly when the market demands it and competitors are already on board. In 2010, one of the main reasons we decided not to quickly shift from our hardware platform strategy to virtualization was that we didn’t have people in place with the right skill set. Because of that, we knew we couldn’t succeed in virtualization in a way that would have an immediate impact on our customers.
When a drastic market shift happens, instead of jumping on the bandwagon, put those efforts and resources into training your staff. Many are willing and looking to expand their skill set – in fact, one study shows nearly 75% of employees are willing to learn new skills. Then once you have the right people with the right skills who can help you make an impact, you can turn your focus to innovation. When employees get the right training to gain the skills they need, the business itself will see the benefits.
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3. Stay true to your core values
Remember the core values you established when you launched your company and use them as guiding principles as you make decisions. Nearly all employees agree that a workplace culture grounded in core values plays a critical role in long-term success.
If the latest trend aligns with your mission, vision and purpose, it could be a valuable addition to your strategy. However, if it doesn’t, pursuing it may not help your company long term. Staying true to your foundational principles ensures that your business remains focused, authentic, and purpose-driven amidst evolving market dynamics.
When a new trend disrupts the market, navigating a path forward can be challenging. Consider the approach Atlassian took with Rovo. While others rushed to get an AI assistant to market last year, Atlassian was intentional and strategic. It mattered more to them to release a tool that aligned with their mission of making teams more effective than being the “first.”
Remember that getting it right for the customer matters more than conforming. Oftentimes blindly following the crowd without critical thinking can lead to conformity and a loss of innovative thinking. Don’t lose sight of your mission, vision, and purpose. These values are likely what attracted employees and customers to your organization in the first place, and what will keep them long after a trend has faded out.
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