Competing in an Evolving Digital World | UCI Paul Merage School of Business
The rules of the game have changed.
Executives who once knew how to compete are faced with a world in which the digital and physical are converging. The source of value creation and competitive advantage are rapidly shifting – and business leaders have to adapt by gaining new skills and insights.
In the digital economy, intangible assets such as knowledge, rule. Physical assets matter less and less. Astronomical quantities of data yield new knowledge and insights – but only if companies know how to develop it them. Companies now differentiate themselves based on their distinctive knowhow, which allows them to deliver unique value to their customers. Competitors cannot easily replicate such knowledge about customers, products and operations.
Knowledge organized into software can be replicated, shared and applied at extremely low cost. And while software has traditionally codified what humans already know, new technologies such as machine learning generate new knowledge that business leaders can leverage.