Becoming a Smart Laggard: A Strategic Approach

A "smart laggard" is an organization that deliberately delays adopting new technologies or trends until the market has matured, allowing for a more calculated and efficient implementation. Here's how to become one:

Understanding the Concept

• Define Your Core Competencies: Clearly identify your organization's strengths and core business functions.
• Analyze Industry Trends: Keep a close watch on emerging technologies and market trends.
• Risk Assessment: Evaluate the potential risks and benefits of early adoption.

Steps to Becoming a Smart Laggard

1. Observe and Analyze: Watch how early adopters implement new technologies. Identify potential challenges and pitfalls. Learn from their successes and failures.
2. Build Internal Capabilities: Invest in research and development to understand the technology. Develop internal expertise to evaluate the technology's potential impact. Create a robust infrastructure to support future adoption.
3. Strategic Planning: Develop a clear timeline for adoption based on market maturity and internal readiness. Allocate resources effectively for implementation. Create a contingency plan to address potential challenges.
4. Focus on Core Business: Maintain a strong focus on core competencies while observing market developments. Optimize existing processes and technologies to improve efficiency.
5. Partner Strategically: Collaborate with early adopters or technology providers to gain insights and reduce risks. Consider partnerships to leverage external expertise.

Example: The Rise of E-commerce

• Traditional Retailers: Many brick-and-mortar retailers initially resisted the shift to e-commerce. By carefully observing the market, they were able to learn from early adopters' mistakes and develop more effective online strategies.
• Advantages: They benefited from more mature e-commerce platforms, established customer trust, and a better understanding of consumer behavior.

By adopting a smart laggard approach, organizations can often achieve a more sustainable and profitable outcome by avoiding the pitfalls of early adoption and leveraging the lessons learned from pioneers.

The Tale of the Smart Laggard: A Journey Through Technological Adoption

Once upon a time, in a city filled with innovation, there was a company named FutureCo. FutureCo was known for its cautious approach to adopting new technologies. This tale unfolds how FutureCo became a smart laggard, skillfully navigating the ever-changing landscape of technological advancements.

The Advantages of Being a Smart Laggard

Reduced Risk FutureCo observed the rapid rise of virtual reality (VR) in the gaming industry. While early adopters faced many challenges—expensive equipment and technical glitches—FutureCo waited until the technology matured. By the time they adopted VR, the technology was reliable, and the risks associated with early-stage adoption had diminished.

Cost Efficiency At the same time, FutureCo noticed that the initial cost of VR equipment was steep for early adopters. By waiting, they benefited from reduced prices as the technology became more widespread and cost-effective. This careful timing saved FutureCo substantial investment costs.

Improved Decision Making FutureCo studied the experiences of pioneering companies like Oculus and HTC. They learned from these early adopters’ successes and mistakes. With this valuable insight, FutureCo was able to make informed decisions, avoiding costly errors and ensuring a smoother implementation process.

Focus on Core Competencies During their waiting period, FutureCo focused on enhancing their core business functions, such as improving customer service and optimizing operations. This focus on their core competencies helped them increase efficiency and profitability, setting a strong foundation before diving into new technologies.

Leveraging Established Standards As VR technology evolved, industry standards for hardware and software became clearer. FutureCo waited for these standards to emerge, which made it easier to integrate their new VR systems with existing infrastructure, ensuring seamless interoperability.

The Disadvantages of Being a Smart Laggard

Loss of First-Mover Advantage While FutureCo was cautious, competitors who adopted VR early gained significant market share and brand recognition. Companies like Oculus became household names, and FutureCo struggled to catch up and establish its own brand presence in the VR market.

Customer Dissatisfaction As VR technology became popular, customers began expecting cutting-edge experiences from all companies. FutureCo’s delayed entry into the market led to some customer dissatisfaction and churn, as they were seen as lagging behind their more innovative competitors.

Reduced Innovation In focusing on efficiency and cost reduction, FutureCo’s approach sometimes stifled their ability to innovate. They missed out on opportunities to develop new products and services that could have set them apart from competitors.

Talent Acquisition FutureCo found it challenging to attract top talent, who were drawn to more tech-savvy companies known for their early adoption of new technologies. The perception of being behind the curve made it harder for FutureCo to recruit the best and brightest.

Missed Opportunities While FutureCo waited, competitors developed new business models and technologies that created barriers to entry. For instance, the rapid advancement of augmented reality (AR) by rivals meant that FutureCo had to play catch-up in a rapidly evolving market.

Implementing a Smart Laggard Strategy in the Healthcare Industry

The healthcare industry is a complex ecosystem with rapid technological advancements and stringent regulatory requirements. This unique environment makes it an ideal candidate for a smart laggard strategy, where cautious yet strategic adoption of new technologies can provide significant benefits.

Challenges and Opportunities

• Patient Safety: While new technologies can enhance patient care, ensuring they don't introduce new risks is crucial.
• Data Privacy: Strict regulations around patient data necessitate careful consideration when adopting new technologies.
• Regulatory Compliance: The heavily regulated nature of the healthcare industry makes navigating compliance requirements a significant challenge.

Steps for a Smart Laggard Strategy

1. Prioritize Core Competencies: Focus on delivering high-quality patient care, improving operational efficiency, and enhancing the patient experience.
2. Observe and Learn: Analyze how early adopter healthcare organizations implement new technologies. Identify successful strategies and lessons learned.
3. Build Internal Expertise: Develop a team of experts to evaluate new technologies and assess their potential impact on patient care and operations.
4. Pilot Projects: Implement small-scale pilot projects to test new technologies in a controlled environment before a full-scale rollout.
5. Form Strategic Partnerships: Collaborate with technology providers to gain insights and reduce implementation risks.
6. Adopt a Patient-Centric Approach: Ensure that any new technology aligns with patient needs and improves care delivery.