Data Network Effects and Data Scale Aren’t Moats (1 of 2) (Tech Strategy)

According to digital strategy consultant Jeffrey Towson, the common belief that data creates an unbeatable advantage is a misconception. He asserts that data network effects and data scale are not the powerful moats they are often thought to be. This has critical implications for any digital transformation strategy, as relying on data as a primary defense is a risky proposition.

Why Data Network Effects and Data Scale Aren’t Moats. Plus, More on Bundling. (Tech Strategy – Podcast 260)

Digital strategy consultant Jeffrey Towson posits that data network effects and data scale are not sustainable competitive advantages. He explains that these elements are often just features of a business model rather than true defensive barriers. This perspective is crucial for leaders developing a robust digital transformation strategy.

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Scarce and Cornered Resources: Competitive Advantage Lessons from the Fall of Star Wars (Tech Strategy – Daily Article)

This article delves into the rare and quirky competitive advantage of scarce or cornered resources, highlighting its increasing relevance in the digital age. It uses the Star Wars franchise as a case study to illustrate how valuable intellectual property and unique creative teams can be cornered resources, and how their mismanagement can lead to downfall. The discussion also sheds light on other potential forms of scarce resources, including tangible assets, people-based assets, and emerging digital assets.