Technology Competitive Advantage Research Paper

Internet of things is a metaphor to describe the enhanced capabilities for data gathering and transmission that exist in the world today. Different products, many that have traditionally been viewed as static, have the ability to gather and communication information. The authors outline what they mean with this awkward metaphor. They refer to tracking capabilities, such as RFID tags -- Wal-Mart is a big proponent of these in its supply chain, enhanced situational awareness like security cameras and sensor-driven analytics such as advances in health care systems that provide decision-support information in real time. Other examples are process optimization, where data is used to enhance production, optimized resource consumption, seeking to enhance efficiency, and complex autonomous systems. The latter refers to machines that can read the external environment and react according to quasi-intelligent algorithms. I look forward to the day that my automated car steers me head-first into the tractor-trailer in order to avoid the dog that ran in front of me. Even though I knew I had to hit the dog in order not to get myself killed. Autonomous systems like robots to clean up oil spills or perform surgeries are perhaps a little bit less dangerous to one's health.

The lesson with respect to the Internet of things is that these capabilities are being expanded, and the use of information is going to continue to drive business forward. This creates substantial opportunity for companies at the fore, and the authors wrote the article with the cautionary note in mind that companies not willing to embrace this enhanced information revolution are going to rapidly become uncompetitive.

The cautionary note of course has significant implications for the market. Proprietary information has always been a source of competitive advantage, but the sheer volume of information that is being gathered now represents a processing challenge for most companies -- the company that can process publicly-available information better can also gain competitive advantage. Companies that master the use of data almost always gain competitive advantage. Wal-Mart's use of RFID helps to give it the most efficient distribution system possible, helping it to maintain a price advantage over its competitors. Amazon sells more to consumers, and enjoys better loyalty, because of its recommendations based on other purchases. There is tremendous power in leveraging data for competitive advantage.

Perhaps the most power lies with the information gatekeepers. Companies that gather information have been able to capitalize on having superior access to information, because companies seeking competitive advantage are willing to pay for superior information. Google is perhaps the best example of this, because it has more information than anybody, and makes billions as a result of that. Being an information gatekeeper, they profit from that intermediary role between sellers and buyers, by controlling the flow of information.…