The positive business climate we have enjoyed to may be ending. The recession is here or will soon be – say experts. There is angst and concern for many in the technology sector. But I like to think more on the positive side of things. Now is the time to build business value. You need to drive your competitive differentiation. Either double down or create one. My most common phrase lately is “now is the time do build a moat”. The hype may be over, so now building real value can begin.
What do I mean by moat? The term “moat” in a business context was popularized by the investor Warren Buffett, who used the metaphor of a moat to describe a competitive advantage that protects a company’s market position and profitability. This is how you defend against upstart competitors. This is how you attack entrenched competitors in their space. Having a moat is about innovation. What is your special sauce?
There is a reason I say now is the time. AI and software frameworks are plentiful and cheap. As a previous founder and expert in software development, this was not always the case. I remember a three month project to design one AI algorithm that would have taken less than a week now. I remember waiting three months to get server hardware. The advent of cloud, AI, and software frameworks mean that the bar of entry has never been lower. While others may be worried, I am not. I say again, Build Your Moat!