In the business world of technology, we distinguish between two major models – systemic innovation in large corporations or brave small startups, almost none of which will become a large corporation. There are also small teams that rely on the simultaneous development of several ideas, but at the time of the market success of one of them, they focus on only one product. The reason is the lack of capacity to serve a growing consumer interest.
A technological choice makes the business model of systematic research and development of new products feasible even in a small IT company. That is the decision to use a serverless architecture that is built through open source components and cloud services. This enables developers to make changes quickly and cheaply to their product as it evolves and looks for a path to its customers. It also provides endless scaling, but more importantly, it does so with a high degree of automation. Capacity scaling at high demand can be preconfigured, even at critical load, to increase its capacity to absorb peak and then even reduce its resources again when the pressure drops. Usually, the configuration of the infrastructure of such a system becomes part of its code (a model, also known as infrastructure-as-code).
An example of this new trend is the NotezApp app, a tool for daily teamwork in the sports journalism segment, but also very suitable for media with user-generated content. The product makes it easy to collect different types of information (text, audio, and video) all in one place, with real-time reports from a team of reporters or multiple people using their smartphones or computers. This information is instantly accessible to editors who can use it to create professionally crafted content.
The application is created by two software engineers who share a different business outlook than traditional IT and outsourcing companies. They rely more on the flexibility and efficiency of their company rather than on rapid growth. Chudomir Delchev and Andrei Hristov are more like serial entrepreneurs – they reinvest their profits from software services (mainly e-commerce applications and big data analytics) into product creation. Some of them discontinue in the initial phase, after evaluation of their market potential. Still, others reach the stage to be separated as spin-offs and seek investment for their development and scaling.
Specifically, NotezApp was born in response to a niche market open after the failure of social networks to deliver and disseminate quality content and facilitate collaboration between people. This opens up the social and market need for new user-generated media content tools.
The technological feasibility of the business model of systemic innovation beyond large corporations will also change the mindset of small revolutionary tech entrepreneurs. Speed and flexibility will be a part of the business as usual. Not only at the level of support, but also in the design and creation of applications. And by their future changing as needed. From a financial point of view, it is essential to note that clouds save companies the investment in their own infrastructure as well as the commitment to maintain it. This radically changes the entire landscape of the tech business world and eliminates the critical distinction between a large corporation and small startups.