The Future of Advantage

The past of advantage was extractive and protective. The future of advantage, on the other hand, is allocative and creative.

The future of advantage:

Allocative. Google's advantage was built on allocating attention to content and ads better than its rivals. Google's real secret? Relevance, media's measure of how efficiently attention is allocated. Match.com is building an allocative advantage in, well, matching people with partners. Allocative advantage asks: are we able to match people with what makes them durably, tangibly better off — and can we do it 10x or 100x better than our rivals?

Creative.

Apple's advantage is, of course, radically creative: built on creating insanely great stuff that turns entire industries upside down. Next month, the iPad promises to do what the iPhone and iPod did before it. The power's in the creativity, not just the technology: Apple's thinking different yet again. Creative advantage asks: is our strategic imagination 10x or 100x richer, faster, and deeper than our rivals?

And the past:


Extractive. Over two decades, Microsoft has honed its extractive edge, coming up with cleverer and cleverer ways to extract profits from customers and suppliers. But Microsoft's just a flea on Wall St's elephant — who mastered extractive advantage by finding ways to, ultimately, extract trillions from you, me, and our grandkids. Extractive advantage asks: how can we transfer value from stakeholders to us, 10x or 100x better than our rivals?