There will always be a hot new company in town, because technology equals disruption. Why? Because the latest technology is better, faster, stronger than the last generation. It’s easier and cheaper to do more, and your cutting edge platform from 5 years ago is likely feeling its age.

 

Do all companies succumb to this problem? No, but building up and milking your flagship product for all its worth is tempting. Investing in the “next generation” of your own technology isn’t always an easy pill to swallow when the current version “works just fine.” The problem is that it may work fine for what you are currently doing, until a young upstart comes to the game with a desire to win and no existing customers to worry about pissing off or cannibalizing. They’re riding on the last 5 years of general technology innovation and best-practices, and their going to eat your lunch technologically. You are now the incumbent, and they have a bigger gun and a terrifying hunger in their eyes.

 

The next 5 years will hold more technological progress than the last 10. Disruption is going to be coming faster and faster in every industry. The general “health” of your technology is going to become more and more important. Technology decisions are going to need to be made with regard for future development. In the software world, this is referred to as “technical debt.”