Most Technology moats aren't a moat!
Often, I hear from startups pitching me their company. I only need a little time to realize that entrepreneurs are usually overconfident that their technology will set them apart in the competitive market.
A famous saying in the venture landscape is that startup ideas are easy. The difficulty lies in the implementation (i.e. execution). However, technology is not as crucial as a broader business strategy.
We all had that great idea that could dominate the world... but it never took off!
Even if it does take off, don't you think that at your first signs of success, someone will copy you? The world is far too competitive to leave you alone, getting all the attention and not trying to take your piece of the cake.
Even for a breakthrough technology like ChatGPT look at how many alternatives have popped up.
I'm a CTO myself, and I'm passionate about technology and products. I insist that products and technology are easy to copy. Entrepreneurs need a business strategy to succeed, which is how you roll out the business. How you acquire customers, get revenue, get PMF, etc.
That's why I insist to any entrepreneur: Don't tell me about technology. Let's talk about your business strategy!
I have often explained that the most successful companies rely on more than just the strength of their technology. Instead, they intertwine their software with a robust business strategy. This strategy must involve unique value propositions, exceptional customer service, innovative pricing models, or targeting a niche market.
The business strategy makes a solution truly defensible and sustainable in a world where technology can be replicated. Instead of solely concentrating on the technical superiority of a product, entrepreneurs need to develop a business strategy that protects, complements, and enhances the value of their solution. Technology should improve a business strategy, not define it. Time always says that at the minimum level of success, someone will copy your idea and, with more resources, outcompete you.