The nature of technology is that it is constantly evolving and breaking new ground. This puts an added pressure on businesses to keep up with these technological advances in order to be competitive. It is often the case that the most competitive firms in the market are the most up to date with modern technology such as Paddy Power the online gambling firm that has dominated the market share in the UK and Ireland with an income of €450 million in 2010 due to its information system’s making it easier than ever for customers to place bets using the well developed company software. Now companies try to evolve with the technology in order to gain a competitive advantage over rival firms.
It is now necessary that a company budgets for technology updates to keep up with technology and competitors. Paddy Power invested 20% of their profits in 2011 into developing new software that allows customers to download an app on their smartphones that allows the customer to place bets using their handheld devices. This was a follow on from their launch of online gambling in 2007 which has proved to be a resounding success with profits increasing by 35% in the first 2 years. The success of the software updates of paddy power has transformed the landscape of gambling as the traditional process of going to the bookies has now been outdated by this recent development in information technology. Competitors such as Ladbrokes have followed suit in order to survive keeping in theme with the new keeping up with the Joneses nature of advances in information technology.