Risks of being first in the technology industry in Singapore

As we journey in this information age, it seems that more and more people want to be first. From something as simple as being first to comment on an article, to having the newest technology gadget, to supporting a new technology platform, being first sounds like the best thing that could happen to anyone. Or is it?

Singapore, home to more than 80 of the top 100 software and services companies, is the place where many have decided to set up their regional or Asia Pacific headquarters¹. Its high level of connectivity, 'business-safe' environment, and strategic geographical location provide these companies with a vantage point for meeting the needs of a rapidly developing Asia.

With Asia on track to be the next driver of demand and innovations, and perhaps even the world's largest market for technology companies, it's time to take a good look at what it means to be first in Singapore, and beyond.

Let's take a look at some of the common "firsts" in the technology industry, and determine the risks associated with them.

New platform support
From my experience, customers looking to upgrade their technology platforms will always look for companies with the capabilities to support the latest and greatest technologies.

While the claim to be the first company to provide such capabilities might be good for branding and PR opportunities in Singapore, there are also pitfalls associated with this claim.

New platforms typically introduce a whole host of changes. Some companies will claim support, but limit it to a few new features. Also, new platform features introduce new possibilities for bugs.

While testing may go just fine on the beta version of a platform, new bugs may be introduced in the final, generally available code.

If the 'first' company runs into issues, it's a mad scramble for competitors to hack around these bugs and produce their own work-arounds before declaring support.

Revenue
Whether you're a small-sized company or a large-sized one, being the 'first' company by revenue in a niche space is a great thing in terms of market positioning. Furthermore, others consider you the '800-pound gorilla', and the one to beat.

However, revenue can be a tricky and misleading measurement, especially if comparing quarterly earnings reports. Some companies perform great on services or maintenance revenue, but their new license revenue is flat.

Only those that are truly growing in a particular market space show impressive new-license revenue, usually at the expense of the 'first in revenue' leader.

Number of customers
There's no doubt that having one of the most numbers of customers in a given space is important, but similar to claiming the most revenue, it can present a lopsided view of things if the company only focuses on high-dollar enterprise accounts and not general market share.

Each company has its own individual way of segmenting their markets; typically, it's classified into three broad categories: SMB, midmarket, and enterprise. Rarely do you find a company who is able to claim a large number of customers in all three areas.

Like revenue, being 'first' in number of customers also means that you're the biggest target for your competitors – they want your customers.

Innovation
To me, I think that being the first with new, innovative technology, is the only 'first' that truly matters. Regardless of whether you're the first in Singapore, or the first worldwide, you can be first in all the other categories mentioned above, but if you're not driving innovation to the market, you won't be first for long.

Personally, I think that innovation in this highly competitive industry is measured by features that have never been seen before – ones that are truly new.

Often times, customers aren't the ones asking for these innovative features; they don't think it's possible and they just haven't thought of doing things differently. Maintaining a 'first in innovation' reputation can be difficult as it requires constant research and development into new technologies and new ways of doing things.

Companies who say "that's how it's always been done" are definitely not innovators. It's the ones who constantly come up with new and different approaches to these challenges who will lead.

¹Singapore Economic Development Board, Infocomm Services Singapore, https://www.edb.gov.sg/content/edb/en/industries/industries/infocomm-services.html