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EvAluATing PRoCEss TECHnology 225
the dimensions described in Chapter 1 as being ‘strategic’ according to the resource-
based view of the firm. As a reminder, these four dimensions are
● the scarcity of resources;
● how difficult the resources are to move;
● how difficult the resources are to copy; and
● how difficult the resources are to substitute.
These four dimensions provide us with a ‘first cut’ mechanism for assessing the impact
that a specific technological resource will have upon sustainable competitive advan-
tage. Table 6.3 develops these four dimensions with examples.

table 6.3 the four dimensions of ‘strategic’ operations resources

Generic questions Example
Scarcity Does the technology represent any Such resources might include bespoke
kind of first-mover advantage? production facilities in industries such
In other words, how much of the as petrochemicals and pharmaceuticals,
developed technology (or perhaps its where first-mover advantage often
underlying R&D) is not possessed by generates superior returns.
competitors? Capturing customer data over time and
Does the technology help to create or then exploiting this information has
exploit proprietary product/service long been a core element of airline
knowledge, perhaps in the tangible competitive strategies – such informa-
form of a database? tion is extremely scarce.
Difficult to move How much of the process technology The value of resource immobility helps to
was developed in-house? If a process explain the increased emphasis being
technology is unique and, moreo- placed upon infrastructure develop-
ver, it was developed ‘in-house’, ment in the management consulting
then such resources cannot easily be sector – to facilitate the retention of
accessed without purchasing the firm. skills, knowledge and experience.
How many of the critical technologi- Mobility concerns in, say, the IT sector
cal resources ‘don’t walk on legs’? explain the emergence of more com-
In other words, highlight those plicated contracts (constraining sub-
resources that are more than contrac- sequent employment etc.) and wage
tually tied into the operation. inflation for certain key staff.
Difficult to copy How far down the ‘learning curve’ is Experiences such as those documented
the process technology? in high-volume processes, such as Intel
How strong is the legal protection? and semiconductors, can create com-
Patents offer some protection, even petitive performance barriers.
though the process is long, often In the competitive confectionery market,
expensive and may attract greater for instance, there is almost pathologi-
competitive risk than simply having cal secrecy associated with proprietary
better site security. production processes, but very little
recourse to the filing of patents.
Difficult to create a substitute What, if any, market mechanisms exist Traditional EDI-type connections integrate
to prevent process technology simply supply chains but can also help to estab-
becoming irrelevant through the lish de-facto standards and introduce
introduction of a substitute? switching costs. They can therefore pre-
vent rivals offering substitute services.

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