Creating Sustainable Competitive Advantage

No successful web company (not eBay, Flickr, Amazon, Facebook…) succeeds because of a significant technological barrier to entry. It’s not insanely difficult to copy what they’ve done. Yet they win and the copycats don’t.

Few organizations succeed in the long run because of proprietary technology. Not Starbucks or CAA or Nike, certainly. Not Caterpillar or Reuters either.

Technologists often tell me, “this product is very hard to build, that will insulate us from competition and protect our pricing.” It might. For a while. But once you’re successful, the competition will figure out a way. They always do.

So, what to do? [read]