NATIONAL UPDATE
TOO MUCH OF A GOOD THING: TECHNOLOGY’S REAL COMPETITIVE ADVANTAGE “A great NOW will be a great WAS! A bad NOW will always be a bad WAS, and all you can hope for is a Great GONNA BE!”—Sid Caesar, Author Over the last five years, there has been increased take-up of technology and, in many regards, this has fostered ongoing sector changes. We now see technology applied across the sector—mobile apps, management systems, AI and data, IoT, robots—the list goes on. It’s safe to say, technology underpins much of what we do today. With our processes increasingly automated, technology organises our operations and value chains, and it links the older Australians who we look after with their families. The pandemic has highlighted the important role technology plays in our sector, and as such, it is a vital resource to organisational success. Equally, with ongoing reforms, the need to update technology systems, payment systems, data collection and the like, is a focal theme. At progressive provider organisations, executives are well versed in understanding technology’s value to their business, and it is no coincidence that there is increased interest from consulting firms to help providers leverage digital tools to help them differentiate and compete. The premise here is that technology’s ubiquity gives it strategic value. Many have upheld this premise, and it’s a mistake. What truly gives organisations a competitive advantage is not ubiquity, but instead, scarcity. In short, you only gain an advantage if you can do something that your competitors can’t replicate or do. Being a care sector, much of the technology we use is procured. Additionally, a simple scan of sector technology vendors leads to a reasonable conclusion that much of what is used and needed by the sector in delivering care is available and attainable. Coupled with ongoing reforms that are prospectively requiring technology as part of sector operational and governance compliance, technology is fast becoming a commodity input of service delivery rather than a true strategic resource. Providers that adopted technology early enjoyed a competitive advantage for a brief period. However, this only lasts until competitors adopt similar technology solutions, or outright engage the same technology vendor and suite of solutions.
Head of innovAGEING, Merlin Kong, with Natasha Chadwick, Founder and CEO of NewDirection Care, Will Burkitt, Lead Partner of Care & Living with Mercer, and Emma Small CoFounder of Risk Managed presenting an innovAGEING Insights webinar series on innovation leadership. In many cases, much of the thinking regarding technology’s competitive advantages amounts to a misunderstanding between: •
Proprietary technologies—technologies that an organisation owns itself, eg. medication patents, and in-house processes.
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Infrastructure technologies—technologies that create greater value when shared and standardised, eg. railways, power generation, telecommunication lines.
Many of the digital tools we acquire in our sector amount to infrastructure technology. Still, providers can move ahead of their competitors if they: •
Have good insight on the use applications of a new technology for their organisation.
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Leverage the high initial cost of the new technology as a barrier for others.
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Take advantage of lower standards in some aspect of sector service delivery. Continued on page 24
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