Abstract
Innovation of products continually, customization, and personalization are the strategies to gain sustainable competitive advantage for companies operating in Industry 4.0 era. Corporations tend to turn to the new social media for access to customer data. How much big data in terms of variety, veracity, velocity, and volume the corporation has determines its prediction architecture and hence customer satisfaction. This is reflected both in terms of inflecting revenues as well as investment from the venture capitalists (VCs), who then see great potential in the business, whether it be a start-up, an established organization, or its spin-off. This chapter explains this new management strategy for corporate sustainability through application of social media to acquire personal consumer and customer data. This is to devise customised products, personalize experience, and innovate for the two. The chapter takes exceptional growth story of BYJU's an educational technology company, as an example to elucidate the theory, concepts, and ideas discussed.
TopBackground
Managing Sustainable Competitive Advantage in Technology Advanced 21st Century
Strategy making and implementation especially in the context of business have always been the managerial practice of maintaining sustainability and competitive advantage (Freedman, 2015). Innovation (Kline & Rosenberg, 2010) for new knowledge creation (Nonaka & Toyama, 2015), maintaining its secrecy through obtaining Intellectual Property Rights and Patents (Granstrand, 1999) have always been a key driver of sustainable competitive advantage (Barney, 1991). Technological advancements, keeping pace with the change and leading the change is another important driver for companies and businesses which have turned out to be successful in their respective markets, sectors and segments (Porter, 1985).
Strategy making is not only about what ones chooses to do but it is also about what one chooses to not get into (Porter, 1996). It is about defining the boundaries within which the firm or business will operate. This kind of a boundary setting gives clarity on what the firm or business would like to achieve and henceforth facilitates planning. The implementation of the plan in a structured manner with a feedback loop attached to the set goals acts as a yardstick for the strategy process.
In the 21st century especially two factors and their utilization for gaining competitive advantage by firms are very crucial viz., social media to gain personalized information and moving into a digital world from a physical world in a seemingly fast-paced manner.
Key Terms in this Chapter
Surveillance Capitalism: It is a new form of capitalism which have evolved in the Industry 4.0 era, i.e., the 4 th Industrial Revolution where companies have access to large-scale data and use a predictive architecture to benefit themselves devaluing the privacy cede given by people.
Industry 4.0: It refers to the fourth Industrial Revolution in which work has started integrating future technologies like Artificial Intelligence (AI) and Machine Learning (ML), etc.
Big Data: A gargantuan dataset having the feature of high volume, variety, velocity, value, variability, and veracity which is captured through technologies like Optical Character Readers (OCRs), Smart Cards, Biometrics, Voice Recognition, Magnetic strips, etc.
Product Innovation: Product innovation means a continual process of revamping the quality, features, forms, facets so that it enhances user experience and causes user delight.
Personalization: Personalization refers to customization of products and services so that the individual can get a unique experience based on individual interests and choices.
Fictional Realities: It refers to all the exchange mechanisms like money, bonds, contract etc. which do not have any direct connect to human life but serve as a connecting apparatus for human beings across cultures and geographies through time. It contrasts with absolute reality like food, shelter and clothing which is a primary need for human living.