Merely having a software platform doesn’t assign ‘tech’ status to a company. It all depends on how they compile the available resources, technologies, and frameworks to produce a tech product and sell it effectively. Moving ahead with this, here in this context, we will talk about Technology as a Product and Service. So, here we go!
Technology as a Product
Most of the IT companies agree to the fact that technology can sometimes be regarded as a product or service. Likewise, take the case of Apple iPhone, which is regarded as a product, sold by American multinational technology company, Apple. Here, the tech company Apple is selling its technology via its product, iPhone. Similarly, IBM which an American technology company, has been selling its technology in the form of computers as a product.
Technology as a Service
Besides, regarding the technology as a product, there exists another scenario, where technology is regarded as a service. Take the case of an American multinational ride-hailing company, Uber, which is often confused in-between a technology company and a taxi company. But, actually, it is a technology company that assists people to make a booking for cabs using their technology platform. Therefore, we can say that Uber has been selling its technology as a service.
Parameters that decides whether a company is a “tech-based” company
So far, one thing is quite clear, a tech-company can sell its technology either as a product or a service. It all depends upon the requirement and the timeframe. But, still there remains a question that is required to be answered and it is, what are the parameters that decide whether a company is a tech-based company or not.
Look for what it has been Selling
The very first criteria that decide whether a company is a tech-based company or not, is the entity that it has been selling. A tech-based company would sell the technology in the form of a product or service.
Another parameter that makes it easy to identify whether the company is a tech-based company or not is its revenue model. A tech-based company engages the majority part of its revenue by selling its technology to the people, that can take any form, it can be a product or a service.
Zeal to innovate
Besides the above-discussed criteria, there is another factor that is responsible for deciding whether the company is a tech-based company or not is its zeal to bring innovation in the existing technology. A tech-company always comes up with a better method that is technologically more sound and reliable.
All in all, assigning a “tech” title to a company is not dependent on a single factor. It depends on many factors and all these factors, which we discussed above, collectively decide whether to entitle “tech” to a company or not.