Turnaround of Technology Companies

One of niche markets for restructuring and turnaround are technology companies. This industry has its own very unique set of challenges – as do most industries. If the technology turnaround effort is ultimately successful, it will join a small club of technology companies that have been able to reverse their fortunes. It’s a difficult challenge. The technology industry moves at such a fast pace that staying still means being left behind. Companies that forget how to innovate usually have trouble relearning no matter how much executives adjust organizational charts, create new marketing solutions or reduce the workforce.

The past decade is littered with technology companies that have not been able to properly commercialize their products or build the necessary infrastructure to sustain growth and support for the entity. I believe that the challenges facing these technology companies are:

  • Lack of IP
  • Working Capital – underestimated the nature of the industry
  • Management - great technologies but not business experts
  • Competition is fierce in this sector
  • Ability to develop business partners. This is critical in this space

It is not only the SME [Small Mid-Size entities] that face these challenges – let us not forget about:

  • Dell
  • Apple (Version I)
  • Yahoo
  • IBM
  • HP
  • Priceline
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