One of the main misunderstandings about differentiation is that it is only about people. That’s to miss half of it. Differentiation is a way to manage people and businesses.
Basically, differentiation holds that a company has two parts, software and hardware.
Software is simple—it’s your people.
Hardware depends. If you are a large company, your hardware is the different businesses in your portfolio. If you are smaller, your hardware is your product lines.
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