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Glossary

Competitive advantage

Revenue and sales

Competitive advantage is the structural reason a company outperforms its rivals and manages to defend that gap over time.

In Enrico Giubertoni's writing it has moved from owning something to knowing how to use it: with data now within everyone's reach, the advantage comes from the mastery with which algorithms turn it into decisions, and from how fast those decisions reach the market.

An example

A bank builds its fraud detection system in house, because that capability is its competitive advantage, and buys payroll processing from outside. The build-or-buy choice resolves into one question: which of the two could a competitor copy within a quarter.

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