Device Homogenization Increases the Importance of Other Differentiators

As technology matures, the core devices within a product category tend to become standardized and increasingly similar. It becomes difficult for even sophisticated customers to tell the difference between one manufacturer's 256k RAM chip or UNIX-based computer system and another's.

This trend of device homogenization has a critical strategic implication: as technical differences between devices diminish, other, non-technical characteristics become the primary differentiators.

When the devices are all the same, customers make their choice based on the other components of the complete product:

• Price
• Delivery and Availability
• Quality and Reliability
• Service and Support
• The relationship with the supplier
• Brand Image and Trust

The preoccupation of many high-tech companies with minor device differentials is therefore costly and unproductive. The real competitive advantage is found in differentiating the total product experience, not just the core device.