To Drive Growth Through Technology, Have These Conversations First

The pervasive idea that technology innovation drives growth is wrong, or at least incomplete. Despite the fact that we’re in an era of amazing tech innovation, including powerful new iterations of AI, startup failure rates are rising, and three-quarters of software companies are retaining less net revenue. That wouldn’t be the case if technology alone could unlock growth. 

Often, the largest missing element in the growth equation is a shared understanding of challenges and goals across the organization. When everyone understands the company’s aims and issues the same way, every aspect of the organization can support growth goals more effectively.

For example, technology can’t solve issues caused by leaders’ unclear business vision, vague definition of success, or weak long-term strategy. Apply all the AI and product innovation you like, but that lack of clarity will create downstream issues in areas like differentiation, security, and integrations—issues that seem like they require a technical solution, but which really need a systemic approach to regular, intentional communication that establishes and reinforces a common vision.

When organizations develop and apply a shared understanding of what they’re doing, who it’s for, and how they’re going to deliver, that unlocks the growth potential of their technology. They can build solutions that serve a defined purpose and meet measurable goals. They can also leverage AI internally and in their products more effectively when they’re working from a shared vision of the customer and the outcome. And companies that attain this combination of shared understanding, technology, and AI are positioning themselves now to grow even more when the next generation of AI capabilities arrives.

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Shared understanding starts with clear communication

Building anything from the ground up is easier when you know what you want and everyone is on the same page. The challenge with any group, including startup stakeholders, is that we tend to assume that other people understand things the same way we do. That can make it hard to define what the organization wants to do and pursue goals in a consistent way.

Whether it’s a product team, external consultants, leadership, or another group, answering three questions clearly and in detail is critical to everything that follows: What do we build? Who are we building it for? Why are we building it?

Once everyone understands the answers to these questions, deciding how to build it is fairly straightforward. The key is to commit to answering and asking those questions whenever it’s time to create something. I often see startups struggling to manage the AI-accelerated pace of change, differentiation, security, and customer integrations as if they were purely technical issues. But these challenges are difficult or impossible to solve without a shared understanding of the answers to specific questions.

Communication will define differentiation

New B2B SaaS offerings are always hitting the market, and AI and automation are picking up the pace of innovation. That puts more pressure on startup engineering and product teams to keep up with competitors and customer expectations. Acceleration also makes it harder for startups to differentiate in a more crowded market. In the near future, when AI advances enable custom software on demand, B2B SaaS will have infinite competition from which to differentiate.

Strategically addressing the challenges and opportunities of acceleration can make the difference between being dragged along by rapid change and being able to capitalize on it. For example, startups can respond to this pressure by focusing on a new kind of differentiated value based on brand, distribution, and customer experience rather than just on technology. The key question that leaders will have to answer is what their customers need and how to meet those needs. Companies that become excellent at answering this question and communicating the answer clearly across their organization will gain a growth advantage, regardless of the number of options in the market.

Building a security culture requires clarity

SaaS vendors who can’t keep their products and integrations secure put their customers at risk of expensive, disruptive security failures. That can lead to brand damage, customer churn, and difficulty in acquiring new customers. In 2023, web applications (including SaaS) were the top action vector in 40% of confirmed breaches worldwide. AI-powered technology is a must-have to detect and block criminals using malicious AI to target victims by impersonating employers, colleagues, and brands they trust.

However, because these new types of attacks target people and play on their sense of urgency or desire to be helpful, technology can’t solve the problem entirely on its own. Companies also need to build a culture of security awareness based on clear communication of risks, best practices, and guidance on who employees should contact if they have a security concern. Together, AI innovation and a companywide understanding of security can reduce the risk of social engineering incidents and protect brands’ customer relationships.

Smarter integration strategies start with conversations

Every B2B SaaS startup has to provide the secure integrations that customers need to connect their product with other elements of customers systems. Many new companies stall when they add customers because their engineers spend more time on integrations and less time on the core product. Current AI solutions can help engineers with elements of the integration process, but AI is also accelerating the development of more apps and tools that require integrations.

The integration problem is easier to solve or prevent when organizations view integrations as a communication challenge, not a technical one. For example, if stakeholders discuss in detail the potential value that integrations can drive, they may reach a shared understanding of how they can leverage integrations for deals, partnerships, and customer retention. That understanding can inform an integration strategy that meets their value creation goals.

Drive growth through conversation and shared understanding

Differentiation, security, and integrations are just a few examples to underline the importance of clear communication and a common understanding of goals and how to reach them. Starting these conversations and sticking with them until everyone is on the same page isn’t necessarily as thrilling as developing new products or exploring AI capabilities. But discussions that lead to shared understanding of your company’s challenges and opportunities are the first and most important step in using your technology and AI to unlock growth.