Wednesday, August 10, 2022

Sustainable Competitive Advantage from Advanced Technology?

Perhaps every firm dreams of gaining sustainable advantage over its key competitors. Perhaps no firm ever achieves it. Gartner now seemingly argues that digital transformation will wind up the same way: becoming a way firms compete, but only one way among many, and without permanent leadership outcomes. 


Competitive advantage from “digital transformation” will be as transitory as all earlier applications of computing and information technology, one might conclude from the Gartner assessment. 


As digital networks, “always on” connectivity, and smart devices become ubiquitous and commonplace, computing will simply fade into the background, becoming as unobtrusive as the dumb thermostat or light switch, says Ed Gung, Gartner Research Board managing VP.


As digital technology becomes embedded into the way all parts of the business operate, “digital” will cease to be a useful modifier, he also notes. In the end, digital technology will become just one more dimension on which companies compete. 


Distribution networks, capital assets, exploration rights, customer relationships and content are other levers companies can pull. But sustainable advantage will be difficult to maintain in those realms as well.


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