This rapid evolution of technology and consumer demands has created a business environment where being first to market can often be the difference between industry leadership and obsolescence.
Enter embedded technology, which is transforming how companies conceptualize, develop, and launch products. This emerging ‘cheat code’ in the world of product development is not just accelerating time-to-market; it’s fundamentally altering the way businesses think about innovation and revenue generation.
Embedded fintech providers offer businesses the ability to build on top of a pre-built API to launch financial products in weeks or months, that otherwise might have taken years to develop. This approach allows companies to leverage already-developed and tested components, significantly reducing the time and resources required for product development. It’s akin to using advanced building blocks instead of starting from scratch, enabling businesses to construct complex products and services with unprecedented speed and efficiency.
The challenge of traditional product development
Historically, software development for complex products could span anywhere from six months to five years, or longer, depending on the project’s intricacy. This extended timeline poses a significant challenge for smaller businesses with limited development resources, often resulting in a diminished competitive edge. The prolonged development cycles meant that by the time a product was ready for launch, market conditions might have shifted, or competitors may have already captured the target audience.
Accelerating time-to-market and improvement
In today’s fast-paced business environment, being first to market can be the difference between success and failure. Embedded solutions provide a crucial shortcut in product development, allowing companies to reduce their development time from years to months, minimize costs in building systems from scratch, and quickly adapt to changing market demands.
Additionally, embedded solutions often come with the added benefit of being thoroughly tested and refined by the provider, offering improved quality and reliability in the final product. The modular nature of embedded solutions also allows companies to update or replace specific components more easilywithout overhauling the entire system, leading to more agile product development and maintenance processes.
This democratization of technology enables innovative startups to compete directly with larger, more established companies.
For instance, an e-commerce startup that wants to launch a payroll system for its user base of small business owners. Instead of building the entire system from scratch—a process that could take years—they can leverage embedded payroll systems for salary calculations, tax withholdings, compliance, and direct deposit functionality, all of which were once the exclusive domain of large banks and fintech companies.
Expanding revenue streams
But why is embedded technology suddenly the talk of boardrooms and strategy sessions? Its unmatched capacity to quicken product development cycles and diversify into new revenue streams is the reason.
Beyond accelerating product development, embedded technology is opening up new revenue streams for businesses. This approach allows companies to tap into markets that they may have previously considered out of reach.
Consider a hospitality point-of-sale system provider that wants to offer payroll for their user base of restaurant operators. Toast, for example, purchased a payroll and HR tech company to add a payroll service to their suite of offerings. To fully integrate their teams and technology, it took them nearly three years. If they had directly worked with an embedded payroll provider like NMBR, it would have only taken them months.
Important considerations when exploring embedded technology
To harness the full potential of embedded technology, businesses should consider:
● Identifying Core Competencies: Focus on what sets your business apart and leverage embedded solutions for non-core functions.
● Agile Development Practices: Adopt methodologies that allow for quick integration of embedded technologies.
● Customer-Centric Approach: Use embedded solutions to rapidly respond to changing customer needs and preferences.
Embedded technology is also not limited to any single industry or application, allowing advancements in one sector to be quickly adapted and applied to others. It democratizes innovation, allowing good ideas to come to fruition faster than ever before.
The future of embedded technology
As we look ahead, it’s clear that embedded technology will play an increasingly crucial role in business strategy. Its potential to accelerate innovation, reduce costs, and open new revenue streams makes it an indispensable tool for companies aiming to stay competitive in a rapidly evolving global market.
Embedded technology represents more than just a technological advancement; it’s a paradigm shift in how businesses approach product development and market expansion. By embracing this ‘cheat code,’ companies can significantly reduce time-to-market, diversify their offerings, and compete more effectively, regardless of their size or resources. As the business landscape continues to evolve at an unprecedented pace, those who recognize and harness the power of embedded technology will be best positioned to thrive in the digital age.
About Simon Bourgeois
Simon Bourgeois is the founder and CEO of Nmbr, Canada’s first embedded payroll software. Before starting Nmbr, Simon founded multiple technology companies, including OneLocal and Humi. Now, he is shaking up the payroll industry by making it possible for businesses to embed Canadian payroll functionality into their products in just days or weeks.
