How can a company determine the right allocation of resources for its specific needs?

The 70-20-10 rule can be adapted for smaller businesses or startups by scaling the percentages according to the company's resources. For instance, 70% of the resources could be dedicated to core operations or technologies that are crucial for the business's survival and growth. 20% could be allocated to adjacent areas or technologies that are related to the core operations but offer potential for expansion or diversification. The remaining 10% could be invested in transformational or innovative projects that have the potential to significantly impact the business's future, but also carry a higher risk. It's important to note that these percentages are not fixed and can be adjusted based on the business's specific circumstances and risk tolerance.

Under-investing in core technologies can lead to several consequences. Firstly, it can result in a lack of competitiveness as competitors may invest more and thus have more advanced technologies. Secondly, it can lead to inefficiencies in operations as outdated technologies may not be as efficient as newer ones. Thirdly, it can lead to a lack of innovation as there may not be enough resources to explore new technologies and ideas. Lastly, it can lead to customer dissatisfaction as they may expect the latest technologies from the company.