New Sources of Competitive Advantage
Posted on October 5th, 2008
In a global, highly competitive world, companies need to continually innovate their products, services, and processes; react quickly to changes in existing and potential markets; and mobilize to serve customers in diverse geographic locales, all while providing individualized, customized service to customers. Like it or not, people are the only way to do that—through their creativity and knowledge, their relationships with customers and co-workers, and their professional networks.
Companies like eBay, Apple, Amazon.com, and others illustrate the truth that “people and their ideas are the most significant drivers of wealth creation in today’s global economy”. Traditional industries also find people key to competitive advantage. Ken Iverson, president of Nucor Corporation from 1962 to 1996, attributes over half of its 17 percent annual compound growth rate to the company’s culture, citing people as the engine of success.
Businesses need three things in particular that only people can bring: creativity, knowledge, and relationship capital.
