When Does Tech Advantage Become Strategic?

Most of the articles you'll read in this blog talk about strategy, as defined by the leading experts in the field, regardless of whether tech is involved.

So when does tech advantage become strategic advantage? Here's a clear case: Virtual computing.

Virtual computing, also known as grid computing, is when you divide up a task so that pieces of it run on several little computers rather than having the whole task run on just one big machine. Computers are allocated to tasks dynamically based on the size of the tasks and their number. That's extremely efficient, but the real advantage is that even smaller, more cash-strapped organizations can play "Wal-Mart style" retailing or "Fidelity style" brokerage without making anything close to their levels of IT investment.

One example is the privately owned financial exchanges that operate like "real" markets worldwide 27/7 but without the official title or the heavy infrastructure. FXall is one.

This isn't just faster, cheaper, better. This is flattening the playing field.

I just wrote a case on how grid computing works at a consumer products retailer in Argentina facing 300% inflation. If they can do it, anyone can. That's like saying anyone can have a strategic advantage.