Technology as a Competitive Advantage

Every business today has to constantly consider how to leverage technology to help them run more efficiently, reach their targeted market growth, and enhance what makes them unique.

Technology typically acts as a facilitator of competitive advantage -- for example of an innovative business model that is a source of advantage -- rather than an advantage in itself. Sometimes companies feel that adopting the latest technology is “table stakes” to allow them to at least keep pace with what competitors are doing.

What is it that enables some entrepreneurial companies to use technology for competitive advantage, while others struggle to establish a distinctive technology direction? Some of our expert partners weighed in on this question. Here are the factors they see playing the biggest role:

Liz Alicea-Velez

Liz is a highly experienced international executive who has run both large and middle market companies and built world class organizations in the U.S., the Caribbean and South and Central Americas.

"The most successful companies are those that understand when to go outside for help with technology -- to bring in outside experts, on a temporary or permanent basis, to make sense of the upsides and the risks of deploying new tools."

Helen Bulwik

Helen Bulwik is a Partner at Newport Board Group. She has worked with private equity for more than 25 years--as CEO of seven PE-owned consumer and retail companies and as an operating partner to eight PE firms. She has participated in the turnaround, repositioning, merger, acquisition or sale of more than 25 lower middle market and middle market consumer companies. Helen has also served as a Board Director of more than a dozen private middle market companies.

"Entrepreneurial companies tend to outsource to service providers for many of their technology needs while using in-house technical expertise to work on their proprietary software. The key is to understand which technology needs are critical to their differentiation and competitive advantage."

Sam Johnson

Sam, a Newport partner in Atlanta, is a seasoned executive with a record of implementing strategies to enhance profits across a variety of industries. He has particular expertise in assisting clients in redesigning their sales organization and sales management processes.

"When it comes to technology, companies need a mindset / culture of out of the box thinking. The best run companies listen to recommendations about their technology from outside experts. I see frustration with stagnant growth, ineffective processes etc., as catalysts for companies to act on their technology options. C-Levels must embrace it and be committed to implement and drive adoption and execution within their own ranks. They must be willing to hold the team accountable for adoption."

Guy Kennett

Guy Kennett is Managing Director of Newport Board Group’s practice in South Florida. He has extensive experience developing mobility strategies and mobile apps.

"10 years ago technology was the subject of a mission statement. Now it is often the focus of the company’s core value proposition. Leadership needs to convey what a company does, how it does it, and what the critical success factors are. Large companies tend to be better at doing this. Smaller companies find it hard to carve out the time and effort to step back and consider their technology needs. Their advantage is that they are more dynamic and informal - but they often struggle to understand all the alternatives."

Art Medici

Art Medici has a diverse background as an executive leader in e-commerce, high tech, telecom and information companies. His experience spans startups, high growth small/mid cap firms and global leaders like Thomson Reuters.

"Social media continues to grow in importance as a source of valuable information. Better managed firms monitor the technology landscape extensively, looking for clues as to technology that could fuel growth. Then, they'll bring, in-house, the expertise to leverage it."

Billie Otto

Billie is a Newport partner in the Pacific Northwest who has been Executive VP and CIO of TrueBlue Inc. (NYSE: TBI) the largest industrial staffing firm in the U.S.

"Highly adaptable companies have teams who have pride first in the outcome and second in the work itself. If those factors are reversed you get "not invented here" problems where technology teams passively or aggressively resist things that weren't their idea or direct work product. Highly adaptable teams focus on solutions that are relevant and can be made secure and scalable. They also have a culture of "why not, let's try it" and can efficiently test a variety of solutions to achieve value quickly."

Ted Parrish

Ted Parrish is a Newport partner in Dallas. His background in advisory services includes solving strategic and operating problems for banks, financial service companies, manufacturers, distributors, retailers and transportation companies.

"Companies that are alert to changes in technology respond to what they read or hear from trusted sources."

Willard Soper

Willard has been a successful executive, advisor and entrepreneur across multiple industries. He specializes in helping companies develop and implement successful strategies, meet operational, financial, and management challenges and achieve growth targets.

"I see successful companies establishing and implementing automated procedures and processes. Many companies are creating systems for their target verticals that enable small and mid-sized companies to become more efficient and better manage risk."

Patrick Worsham

Patrick is a Newport partner in West Florida who has top executive team experience ranging from the Coca-Cola Company to a privately-owned, mid-sized wholesale distributor and a start- up advertising enterprise.

"I see good companies taking pains to be observant of the successful use of technology in other industries and then imagine how it could be used to solve particular issues in their value chain."

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