Cathy Benko is Deloitte Consulting's National Technology Sector Leader, and was previously Deloitte's Global eBusiness Leader.  She has been named one of the industry's "25 Most Influential Consultants" by Consulting Magazine, and is a recognized expert on the topic of business transformation.  She is also co-author, along with Professor F. Warren McFarlan of the Harvard Business School of the book Connecting the Dots: Aligning Projects and Objectives in Unpredictable Times.

Cathy believes that while it is possible to achieve a favorable competitive position through technology, some key conditions need to be met.  First, Cathy points out that companies must have a clear focus on how they intend to compete.

"If properly aligned, your IT strategy is an integral part of your overall business strategy.  This means taking into account your position within your industry and knowing how you choose to differentiate yourself in the marketplace.  For example, companies such as Wal-Mart and Dell have focused on being world class operationally, and JetBlue on being a low cost provider.  Understanding how you do (or plan to) differentiate gives you a guidepost to how your technology initiatives can play an important part in achieving your overall objectives."

"In analyzing the information tools available, you need to determine whether the software itself provides an opportunity for competitive advantage, or whether your tools are essentially more commodity-oriented building blocks.  At the end of the day, there are few technology advantages that are truly sustainable, so your strategic resources and business capabilities need to take this into account." 

Cathy has also observed that there is more to leveraging technology than simply articulating a corporate vision and expecting the organization to follow. A much more detailed roadmap is needed, which evaluates a company's portfolio of technology and projects against the overall strategic goals of the firm. 

"Strategy often is formulated at a very high level, but doesn't always easily correlate to what is happening elsewhere in the organization.  Companies often need to get more granular in articulation of their strategies so that they can better connect their infrastructure projects with their strategy.  For example, while strategic documents might contain objectives such as increasing market share by 10% or breaking into new markets, there frequently is not a clear connection between these objectives and whether a new HR or ERP system contributes to helping the company leverage the capabilities necessary to make this happen.  The roadmap that bridges the strategic intent with more 'block and tackle' elements like platform and software selection is as important as stating the strategy itself.  Many companies assume that this will just happen-and it simply doesn't work that way."

In times of uncertainty, Cathy observes that firms are often better off with an adaptive rather than predictive model. But competitive success has less to do with whether the firm is consciously leading or following, and more to do with organizational characteristics:

"We are all morphing to a new set of ways to do business whether we are aware of it or not. How effectively companies can adapt depends on a set of four traits:  The first is how eco driven - you are. This entails an understanding that you rely more heavily on value networks and relationships rather than a vertically integrated orientation. The second is whether you can look outside in rather than inside out. While many organizations acknowledge that customer and business partner viewpoints are important, the primary level of focus is often internal. The third is to be what I call fighting trim. This is a question of how quickly you can spot marketplace trends and then respond appropriately. Finally, the organization needs a house in order mindset. The 'art of the possible' keeps changing, so you have to have an infrastructure that is capable of identifying and embracing change as adaptively as possible." 

"From the vendor viewpoint, a clear value proposition for a new technology solution will attract the firms further along with developing the traits described above. More enlightened organizations will readily see the value proposition,  and value both the early learning and marketplace exploitation. The followers unable or unwilling to explore the value risk becoming laggards. While it may not be prudent to be bleeding edge, the window for firms that continually morph their value propositions can be substantial."

While many external factors can impact a firm's competitiveness, Cathy's comments highlight that firms can make their own luck by having a clear strategic focus, evaluating the activities that are designed to achieve it, and developing an organization capable of identifying and reacting to new technology opportunities. 

From Hunter or Hunted - Chapter 9