| March 12, 2003 | Volume 3, Issue 10 |
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by Rick Brenner
As a way of managing risk, we sometimes steer our organizations towards commercial off-the-shelf (COTS) components, methodologies, designs and processes. But to gain a competitive edge, we need creative differentiation.
y the time Jane arrived, Dave and Judith had already been over the question several times. A little out of breath, Jane sat down, sipped some of her famously strong coffee from the mug she always carried, and said, "So, what do you think?"
Judith began, "It comes down to Quasar or Elise. Quasar has a long list of big clients. Clearly they can do the work — they've done it before. On the other hand, Elise and her team have the know-how, and some clever ideas. And from their work on Marigold they know the business and everyone involved."
Commercial off-the-shelf (COTS)
solutions are more likely to work,
but custom solutions are
more likely to give you the edgeJane sipped. "Tough choice."
Dave wondered if Jane ever slept. "Elise's proposal intrigues me," he said. "It could be the key to same-day approval. I just don't know if they can do it. Quasar has done it."
"Not same-day approval, they haven't," Judith said. "They've done big systems successfully, I'm convinced. But we need same-day approval."
Jane, Dave and Judith are making a choice between a low risk, tried-and-true approach with little innovation, and a higher-risk, innovative approach that could provide competitive differentiation. Something similar is happening right now in hundreds of organizations around the world. It's always a difficult choice.
Commercial off-the-shelf (COTS) solutions are more likely to work, but they're less likely to give you the edge. Here are some thoughts to prepare you for the day when your turn comes to make this choice.
Customer expectations are rising continuously. What delights customers now will soon become the bare minimum. COTS helps you catch up when you're behind, but it can't put you in the lead.
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Nick Pulovski (character played by Clint Eastwood) in "The Rookie". Dir. Clint Eastwood. Clint Eastwood, Charlie Sheen. 1990. .
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