Distinguish a claimed advantage from a demonstrated advantage
DECISIONS SUPPORTED
Which source of value withstands substitutes, imitation and time?
01Invest in a capability
02Protect a resource
03Drop a fragile claim
04Monitor the erosion of an advantage
ORIGINAL ASSET
Advantage diagnostic
Classifies an advantage as claimed, demonstrated, temporary or potentially defensible.
INPUTSValueRarityImitabilityOrganisationEvidence
→
OUTPUTSStatusDependenciesDurabilityErosion rate
Move from a claim to an observable mechanism
A capability is advantageous only when it improves an outcome valued by the market relative to alternatives. Evidence links an activity, a mechanism, a comparable measure and a period; it must not confuse internal competence with customer preference.
Customer outcome
Relative gap
Mechanism
Observed period
Qualify each piece of evidence without averaging away the unknown
Each link has its own status: demonstrated, hypothesis or unknown. A rare resource without appropriate organisation, or a stated preference without observed behaviour, remains a hypothesis. Critical gaps block the conclusion instead of being absorbed into an average score.
Demonstrated
Hypothesis
Unknown
Refusal condition
Treat erosion as a scenario
The half-life displayed by the tool is a teaching scenario based on an entered rate. It is neither a forecast nor an observed duration. The decision should track real signals: imitation, substitution, a fall in relative price, lost preference or a dependency becoming critical.
Erosion assumption
Observable signal
Review threshold
Possible action
EVIDENCE OF ADVANTAGE
Link the capability to a customer or economic outcome
An internal strength becomes strategically relevant only when it produces a result valued by a defined customer or improves an economic outcome compared with credible alternatives. Document the activity system, the mechanism that creates the difference, the metric, the comparison set and the observation period. Employee confidence, brand familiarity or isolated performance do not by themselves prove a market advantage.
Defined customer
Observable outcome
Credible comparison
Dated measure
Move from a claimed strength to a mechanism that can be observed and reviewed.
Test defence, dependencies and erosion
Rarity is not enough. Examine substitution, imitation, access to complementary assets, organisational fit and the dependencies that could transfer value to another actor. Mark every link as evidenced, assumed or unknown and identify the weakest link. Then define observable erosion signals, such as price compression, declining preference, faster imitation or loss of distribution access, together with a threshold and response.