On a regular basis entrepreneurs approach me with jaw-dropping technology, wonderful to look at from an innovation perspective but many times hard to envision as a standalone sustainable profit center. So what technology makes a successful company?

Technology is becoming a commodity. Think about it from a macro-economic perspective. Information technology is the instrumentation, not the differentiation of customer businesses. World's largest retailer, Walmart does not rely on technology to be successful, technology was barely available when Walmart started. Walmart built an effective business model and, in-house continuous to shape technology to support the business model. No packaged apps, or technology silos here.

Technology companies do become successful when their technology drives, usually with incremental improvements, the evolution in a marketplace. Google is successful because it optimized the online advertising business model and increased its effectiveness. It's all about market principles, not technology (BTW: which average user can tell the difference between Google and Yahoo! search). eBay is successful because it empowers free-market principles and supports true meritocracy in the sale of goods.

Bottom line:
1) Investigate defunct, constricted or outdated markets and build technology that improves the effectiveness of those markets.
2) Find capital from investors that understand the market and appreciate technology, not the other way around.

Market principles are seldom wrong, the instrumentation often is.

Tags: Entrepreneurs, Walmart, Google, Innovation, Evolution, Yahoo, Commodity, Capitalism, EBay