Week 4 Clear Strategy and Technology

      "Sooner or later the Internet will become profitable. It's an old story played before by canals, railroads and automobiles." 

                                                          Paul A. Samuelson

Mr. Samuelson, who has been called "The Father of Modern Economics", was able to see this statement become reality before passing away in 2009. Though, at the time he made this remark, he didn't realize how prophetic his statement would later turn out to be. 

I believe that it takes this kind of visionary to see technology as an opportunity and then to be able to formulate a strategy to use it in a business setting. This weeks lesson is really a lesson on how tricky the business environment is with regard to competitors and how easily one can fall behind without knowledge of your competitors and the technology available.

The best example of this is the story in the textbook about FreshDirect and how it became a market leader by knowing the market and understanding how technology would help position them as a leader in that market. FreshDirect didn't just become a leader, they dominated the market so decisively in such a short period of time, it left many competitors in it's wake.

While this is an extreme example, it does point out that sustainable competitive advantage comes from operational effectiveness. That is, doing the same thing but doing it better. By adding technology, you now become positioned to shape a new landscape. A landscape that many will attempt to follow, and imitate, but one that will have few successes.

As stated in the lectures and in the text, technology alone will not guarantee success. Understanding technology will also not guarantee success. Knowing how it fits into your business scheme and how/if competitors are using the same technology is the first step. This is the where a successful business owner and/or manager incorporates technology into a strategy to benefit the organization. 

Of course there are many other factors for success such as knowing your hidden and switching costs, having a solid value chain, creating networks, and having a differentiated product. These factors are not exclusive to any business but universal to the business environment. Finding that "thing" that separates you from the pack is what made companies like Facebook, Google, and Apple industry leaders. In 21st century business, technology and how it's utilized will be that "thing".