Lessons in Digital Operating Basics from Ram Charan. Part 1 of 2 on “Rethinking Competitive Advantage”. (Asia Tech Strategy – Podcast 98)

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This week’s podcast is about Ram Charan’s new book “Rethinking Competition Advantage“. I think it has a lot of great insights about the basics of digital operations. But not much about competitive advantage.

You can listen to this podcast here or at iTunes and Google Podcasts.

Here is the link to the Q&A on Sept 7:

Here is my interpretation of the book’s digital operating basics (combined with my own):

  1. Scale and growth and small incremental cost.
  2. Personalization. A personalized consumer experience is key to continued growth. Continually innovating on the consumer experience enables cross-selling more and more products and services to a broad audience. A “market of one” is the ultimate personalization.
  3. A digital core for operations. Algorithms and data are essential weapons.
  4. Ecosystem and connectedness. Every major player needs at least 10 partners for sharing data, meeting a range of consumer preferences, growing faster than it otherwise could and continually refreshing with technology and innovation.
  5. People, culture and work design form a social engine that enables innovation and execution personalized for each customer. Decision-making is designed for innovation and speed.
  6. Operational cash flow. Companies need powerful moneymaking models. Target a big opportunity and increase cash gross margin by innovation and cost reductions over time. Fund multiple experiments against consumer experience. Add revenue streams on the same digital core.

Here are my 6 Levels of Competition:

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Related articles:

From the Concept Library, concepts for this article are:

  • Digital Operating Basics

From the Company Library, companies for this article are:

  • n/a

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I write, speak and consult about digital strategy and transformation.

My book Moats and Marathons details how to measure competitive advantage in digital businesses.

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