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Seattle IT Consulting – Business Cloud Variables

Seattle IT Consulting Cloud competiveness variables

Time, Scope and Resources are the three business variables.  When an industry is new there are lots of competitors.  Each tries a different formula of time/scope/resources when providing the service or product.  When an industry is mature three major competitors have discovered the optimal mix of time/scope/resources.  In a mature industry all the major competitors are using the same time/scope/resources formula.  If one company makes a more efficient change the other competitors quickly make the same change.  So in a mature industry market share seldom changes even if a new competitor enters the market place.

The only way the industry leaders will change positions is when a new discovery catches the industry by surprise.  When comparing the horse, the combustion engine reduced the time it took to move someone or something from point A to point B.  Plus the time and costs to maintain the combustion engine was reduced compared to the time and resources required for the horse and wagon.  Today no shipping business would choose horses to compete on American highways.  Yet 100 years ago those businesses that attempted to compete against the combustion engine with horse drawn wagons went bankrupt.

New technologies reduce the time/scope/resource ratios.  New technologies can turn an industry upside down.  We saw it 100 years ago.  We also see it today as the Newspaper industry is disappearing and the music industry stumbles.  With each new technology come new opportunities and major changes to other industries.

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