Benefits of ICT: From Complement to Competitive Advantage from Human Capital
Whilst hardware and software are an integral part of Kenex's production chain (the GIS products are unable to be produced without ICTs), these capital factors are readily available in the relevant markets. The key to Kenex's ability to add value lies in its databases of GIS information and the human capital that creates the databases and analyses the information to create the relevant outputs (interactive systems, reports, etc.) and prospectivity models: in other words, knowledge. Most of the data used in the Kenex databases is either freely available publicly, or the rights to use the data can be purchased from the originating sources. Thus, in the ultimate, the key to Kenex's ability to use its assets to create a sustainable competitive advantage lies in the skills of its staff and the skills of the organisations that it partners with - that is, the human capital. As with any other business traditionally involved in the production of information outputs using information inputs (e.g. medicine, law, accounting), in the absence of any exclusive rights over the hardware and software, it is the skills of the individuals that distinguish one business from another. The unique factor that characterises Kenex's human capital is the unusual combination of technical (geological and other scientific specialties and GIS) skills with an understanding of the ways in which information can be utilised to create value.
Back to Top