Wednesday, August 10, 2022

Is Sustainable Advantage from "Digital Transformation" Illusory?

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


In other words, sustainable competitive advantage will not be possible. 


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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