Direct Sourcing Archives - The Future of Work Exchange

Best Practices for Direct Sourcing: Insights from Industry Leaders

Business Leadership Direct Sourcing Podcast Talent by John Yuva on 05/08/2025

When it comes to implementing and optimizing a direct sourcing program, the collective insights from industry veterans offer a roadmap rooted in experience, strategic foresight, and operational nuance. Across the board, one message rings clear: Success is not about checking a box, it’s about building a robust, thoughtful, and collaborative framework that aligns with broader organizational goals.

The following is based on a FOWX podcast (listen here) and sponsored by Worksuite, featuring host Christopher J. Dwyer, senior vice president of research at Ardent Partners and the managing director of the Future of Work Exchange, as well as a panel of industry experts from Opptly, Beeline, Raise, and Talent Solutions.

Start with Collaboration and Clarity

There must be emphasis on the importance of collaboration. With multiple stakeholders involved in most direct sourcing ecosystems — MSPs, curation providers, VMS platforms, tech partners, payroll providers, and clients themselves — navigating this complexity requires more than good intentions.

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To continue providing valuable insights and resources on the future of work and extended workforce management, we’re transitioning our site to a paid subscription model. While some posts will remain free, subscribing will grant you exclusive access to in-depth analysis, market research, expert interviews, and actionable strategies that will help improve your business. Solution providers and practitioners are invited to join today and gain a competitive edge by tracking the industry’s important innovations, emerging trends, and best practices.

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Direct Sourcing: Moving Beyond the Buzzword into Strategic Workforce Value

Direct Sourcing General Insights Podcast Talent Technology and Innovation by John Yuva on 05/01/2025

Direct sourcing has only grown as a hot topic in the workforce management space. What began as a promising trend has now evolved into a proven practice — no longer just a buzzword but an integral part of modern talent strategies. The question facing organizations today is not whether direct sourcing has value, but how it can be effectively implemented and scaled for sustained impact. Leaders across the industry are aligning on the fact that, with the right approach, direct sourcing offers tangible, long-term benefits, particularly in building resilient, agile, and skills-focused talent ecosystems.

At its foundation, successful direct sourcing requires a comprehensive vision that captures all elements of the contingent workforce. This includes ensuring full visibility into contingent labor through vendor management systems (VMS) and managed service providers (MSP). Without this holistic view, companies risk making tactical decisions in a vacuum, limiting their ability to evolve workforce strategy. When organizations manage only a subset of their non-employee labor, they lose critical insight into how work is being done, and more importantly, how it should be sourced.

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Opptly’s Great Leap Into Skills Intelligence: The Foundation of Modern Talent Acquisition

Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 04/29/2025

In today’s rapidly evolving business landscape, organizations are increasingly recognizing that traditional hiring approaches are insufficient. Forward-thinking enterprises are pivoting to skills-based hiring—a strategy that focuses on candidates’ actual capabilities and expertise rather than their credentials or work history (or, from a recruitment perspective, the mere superficial “match” between their history/portfolio and job prerequisites).

Skills-based hiring represents a fundamental shift in how companies identify, attract, and retain talent. By prioritizing demonstrable abilities over traditional proxies like education or previous job titles and roles, organizations can access wider talent pools, improve diversity efforts, and build more adaptable and agile workforces. This approach is particularly valuable in technology/IT, healthcare, manufacturing, marketing, and other fast-changing sectors where formal qualifications quickly become outdated, but practical skills remain essential.

At the heart of effective skills-based hiring lies skills intelligence—the comprehensive understanding of the specific capabilities required for success, both now and in the future. Skills intelligence essentially entails the mapping of the current skills landscape within an organization, identifying critical gaps, and developing strategies to address those gaps through targeted recruitment and development initiatives, including (but not limited to) direct sourcing, talent communities, and deeper extended workforce engagement.

Contemporary skills intelligence platforms leverage AI and machine learning to create detailed taxonomies that identify relationships between different skills, predict emerging skill requirements, and match candidates to positions based on capabilities rather than just work history. These platforms can analyze job descriptions, resumes, and performance data to create a dynamic, evolving picture of an organization’s skill needs and assets.

For enterprises implementing direct sourcing strategies—a strategic talent acquisition approach where organizations proactively identify, engage, and hire contingent workers through internal channels and talent pools and an in-house recruitment initiative—skills intelligence provides the critical foundation. It enables talent acquisition teams to clearly articulate requirements, efficiently screen candidates, and make deeper, data-driven hiring decisions. Without comprehensive visibility into workforce capabilities, direct sourcing programs may devolve into simple expense reduction initiatives rather than serving as powerful competitive differentiators that transform talent acquisition and deployment strategies.

Skills intelligence also supports other progressive talent strategies, such as internal mobility programs, reskilling initiatives, and the creation of talent marketplaces. By understanding the skills present in their current workforce, organizations can more effectively deploy their human capital, identify development opportunities, and build succession plans.

As automation and AI continue to transform work, skills intelligence becomes even more crucial. It helps organizations anticipate which roles might be automated, which new skills will become necessary, and how to prepare their workforce for coming changes. In this way, skills intelligence serves not just as a recruitment tool but as a cornerstone of organizational strategy and resilience.

The enterprises that thrive in the coming decade will be those that master skills intelligence and skills-based hiring—building workforces defined not by static qualifications but by adaptable, future-ready capabilities.

Artificial intelligence platform Opptly, which has transcended the arena of direct sourcing and talent acquisition technology to become a true “people intelligence” solution, recently launched its Skills Intelligence tool.

“Skills Intelligence represents a pivotal advancement in talent acquisition technology,” said Lori Hock, CEO of Opptly. “Organizations have long struggled with the complexity of matching talent to roles effectively. By harnessing the power of AI to analyze skills in real-time, we’re not just streamlining the hiring process – we’re fundamentally transforming how companies build and evolve their workforce. This platform empowers organizations to make data-driven decisions that ensure they’re not just filling positions, but building future-ready talent communities.”

A standout feature of the platform is its Job Taxonomy Analyzer, which addresses the complexities of skills data management in talent acquisition. This innovative tool can process multiple job descriptions simultaneously, analyze over 2,000 skills within a comprehensive taxonomy, and achieve up to 99% skills similarity scoring. Its unparalleled precision empowers hiring managers to make data-driven decisions, ensuring the right candidates are matched with the right opportunities.

Skills Intelligence also offers an array of functionalities designed to reshape hiring strategies. From lightning-fast skills analysis and bulk processing capabilities to advanced job family mapping and a robust skills database, the platform is tailored to meet the needs of talent acquisition leaders, contingent workforce program managers, and hiring teams. Its flexible input options allow users to process job descriptions and resumes seamlessly, while detailed reporting provides valuable insights across organizational groups.

“Today’s hiring managers don’t have the time to sort through hundreds of resumes, hoping the right skills stand out,” said Craig Coe, SVP of Global Customer Success, Beeline. “With AI, it’s now possible to quickly surface candidates whose skills—both listed and inferred—match the requirements of the role. The result? Significant time savings and stronger engagement outcomes, as managers can focus on a smaller, more curated pool of qualified talent. Hiring managers need both speed and accuracy. AI delivers by quickly identifying candidates with the right skills—both stated and inferred—enabling faster, more precise hiring decisions.”

By incorporating generative AI, Skills Intelligence equips organizations with the tools to evaluate candidates effectively and ensure job descriptions align with current market demands. With features like automated job matching, skill gap identification, and updated job description generation, this platform redefines how companies approach recruitment, delivering a smarter and more strategic way to build their workforce.

Skills Intelligence bridges a crucial gap in talent acquisition, delivering actionable insights and enabling seamless collaboration between HR teams and hiring managers. Its ability to analyze resumes and job descriptions with precision ensures that hiring decisions are based on comprehensive, up-to-date information. By aligning job requirements with market demands and highlighting skills gaps, the platform supports organizations in building stronger, more agile workforces that are equipped to thrive in competitive industries.

Furthermore, Skills Intelligence empowers organizations to streamline hiring initiatives through automation and advanced analytics. Its integration capabilities allow for effortless synchronization with HR systems, reducing redundancies and ensuring consistency across all processes. With tools like the Job Taxonomy Analyzer and customizable job description library, the platform fosters greater efficiency and accuracy, positioning itself as a transformative force in modern recruitment strategies.

Since we started using Opptly Skills Intelligence, our conversations with clients about the value of skills-based hiring have taken on a life of their own,” said Raleen Gagnon, CEO of TalentEdgeAI. “Seeing where roles overlap and diverge based on the skills required creates a new level of understanding that can drive job descriptions, interview questions, and compensation strategy. Having the ability to quickly compare roles and develop new job profiles makes every conversation as valuable as a white-boarding session!”

As businesses continue to navigate the complexities of a fast-evolving workforce landscape, Opptly’s Skills Intelligence tool emerges as a transformative solution that bridges gaps between talent acquisition, workforce planning, artificial intelligence, and organizational strategy. By leveraging advanced AI capabilities, companies can redefine their hiring processes, align workforce capabilities with future demands, and create agile, resilient teams that drive sustainable growth. Opptly’s great leap into the future represents a strategy that empowers organizations to build competitive, future-ready workforces in an increasingly skills-driven world.

The Incredible Potential of the Modern Talent Tech Ecosystem

Contingent Workforce Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 04/01/2025

There are perhaps dozens of various attributes that sets apart the talent and work technology arena apart from others. Think of the inherent relationships between solutions, staffing suppliers, talent acquisition leaders, hiring managers, and tech platforms. Think of the numerous collaborations between talent management solutions and workforce intelligence providers.

And, now, think of another thing that sets this space apart: the integrations, the coordination, the nuances, and the ultimate power of the talent technology ecosystem.

Many other industries rely on core integrations between integral systems for the sake of operational efficiency; think ERP and financial planning, or maybe spend management and accounts payable. The partnerships in those arenas are certainly robust and provide its millions of users with necessary information, data, and intelligence, as well as contemporary process orientation, to effectively manage hundreds of enterprise tactics.

The difference between these “other” industries and the human capital world is this: there are substantially more expansive outlets of value from the technology ecosystem in talent solutions, ranging from higher-quality candidates, a better overall ROI on talent strategies, deeper visibility into talent intelligence, and, most importantly, the ability to truly transform the realm of innovation within the greater enterprise through next-generation skills and expertise.

So, this is so much more than “Solution A” integrates with “Platform B,” and it’s more expansive than a handful of technology systems working together in such a way to improve processes or drive efficiency.

We’re not talking just cost efficiency or improvements in operations. This is about the total transformation of how we address how work is done. This is about the ways businesses harness the true power of technology, automation, relationships, and innovation to become truly and formally agile.

This is the Future of Work.

What makes this ecosystem truly revolutionary is how…

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The Future of the MSP Model Hinges on Future of Work Innovation

Contingent Workforce Procurement Solution Providers Technology and Innovation by Christopher J. Dwyer on 03/03/2025

Earlier this year, I wrote a feature on the next generation of Managed Service Providers that focused on how these solutions have evolved over the past several years to meet the dynamic needs of recruitment, contingent workforce, and talent acquisition programs across the globe.

Ordinarily, another feature would take, let’s say, a few months before revisiting the scope of MSPs, right? Well, no. There’s so much more to be said about how the MSP model is becoming a nexus of Future of Work innovation.

“Innovation” in and of itself is an interesting concept; given where we are in the greater Future of Work movement, the talent technology industry is awash in new technology, enhanced functionality, fresh approaches to automation, and a convergence of both old- and new-school hiring strategies.

Late last year, Ardent Partners and the Future of Work Exchange had the opportunity to evaluate and analyze the Managed Service Provider arena. The MSP Solution Advisor provider landscape highlighted the strengths and differentiators of 13 global managed services solutions.

One of the major learnings for me, even after nearly two decades in this industry, revolved around the idea of innovation within the MSP world. Many enterprises that leverage the MSP model for extended workforce management do so with “traditional” outcomes in mind: outsourced CW processes, payroll support, staffing supplier management, with a sprinkle of “next-gen” approaches like direct sourcing and skills-based hiring.

However, the Managed Service Provider structure is a foundational solution for talent engagement, workforce management, and Future of Work-era thinking for a major reason: many of these providers are actively blending their robust features with offerings that drive scalability, talent sustainability, and talent intelligence.

Companies mentioned in this article include Magnit, Airswift Resourcing, HireGenics, and KellyOCG.

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The Extended Workforce Continues to Drive Value

Talent by Christopher J. Dwyer on 02/25/2025

The Future of Work is many things: technology, transformation, work optimization, innovation, collaboration, and, of course, talent. Depending on who you’re talking to, the Future of Work movement’s nexus could be defined as any of those previous attributes, and rightfully so: technology and innovation drive the optimization of how work is done, while the transformation of business leadership translates into an enhanced ability to retain top talent while attracting new skillsets and expertise.

The extended workforce has long been a critical realm within the concept of the Future of Work, fueling a strategic approach towards talent management that has a variety of key benefits ranging from shorter-term engagement, more focused projects and initiatives, access to the world’s deepest skillsets, and the traditional cost savings that have long been associated with this type of labor.

And, speaking of the “traditional” aspects of the extended workforce: the Future of Work Exchange defines this talent as the natural evolution of the contingent workforce, meaning that, at its core, this workforce is still comprised of non-employee talent, however, its impact, value, flexibility, purpose, and accessibility have all progressed to become key elements of the Future of Work movement (even more so than ever before).

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The 2025 MSP Playbook, Part I

Contingent Workforce Direct Sourcing Events by Christopher J. Dwyer on 01/21/2025

Just last week, I had the opportunity to join Atrium and their Chief Revenue Officer, Brad Martin, for an exclusive webcast focused not only on the 2025 trends that will shape the Future of Work, but also the impact of the Managed Service Provider (MSP) model on those areas in the months ahead. Today’s article is the first of a two-part series that will recap Brad and I’s discussion.

The “Strategic” Contingent Workforce Program: A Major Priority for 2025

Nearly 65% of organizations (as discovered by Ardent Partners and Future of Work Exchange research) state that they plan to develop a more strategic foundation around their contingent workforce programs in 2025. As the extended workforce marches to its 50% threshold (49.7% of the average organization’s total workforce is now considered non-employee), it is critical that businesses take a more deliberate pathway towards managing this type of talent in lieu of leveraging traditional, archaic, and “tactical” approaches that undermine the greater impact of the contingent workforce.

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Let’s Set the Record Straight on Direct Sourcing

Direct Sourcing Talent Acquisition by Christopher J. Dwyer on 12/09/2024

As you may know, the Future of Work Exchange moved to a subscription format a short time ago. Ordinarily, this article would only be accessible to FOWX subscribers. However, today’s article on direct sourcing will be available to all until midnight on December 16. Given the rampant discussion on direct sourcing and its outlook, direction, etc., the FOWX felt that this piece should be accessible to all readers for a short period. Enjoy!

For nearly 20 years, I’ve seen talent trends, shifts, and “fads” come and go. There is no industry that invites divisiveness like the world of talent and work. Making contingent workforce management less tactical and more strategic was once seen as crazy, yet today the extended workforce comprises 49.8% of the average company’s total talent, and, businesses regularly rely on this top-tier labor to get work done.

Total talent management deserves a major mention, as it still (yes…still) drives executives absolutely nutty on completely opposite sides of the spectrum: it’s either the wave of the future, or, it’s a pipe dream mired in conjecture and theory. (My take: there’s incredible value in elements of total talent management, particularly total talent intelligence. The ability to make snap worker decisions based on information and data on your total talent resources is the real benefit of any total talent management strategy/program.)

Direct sourcing has reached a similar level of conjecture, and, rightfully so: since the waning days of pre-pandemic times, “direct sourcing and talent pools” have routinely been a top-three workforce strategy, according to Ardent Partners and Future of Work Exchange research. Furthermore, during the pandemic, direct sourcing emerged as a viable, flexible strategy for businesses that 1) wanted to scale up or down based on rollercoaster-like market conditions, 2) keep those laid off during the worst of the pandemic engaged with the organization and cultivated within an easily-recruitable talent community, 3) wanted to maintain their brand (and keep it front-and-center) in front of potential candidates, 4) support burgeoning skills-based hiring efforts, and, 5) desired to centralize their total talent resources and available skills.

There is no question today regarding the value of direct sourcing; we all realize what it can do, what it can generate, etc. The real quandary (and it’s a painful one, given the discourse on social channels liked LinkedIn) is this: how does direct sourcing actually work?

There are several schools of thought here. The simplest explanation is that an enterprise can leverage its own talent acquisition and contingent workforce teams to create an internal “recruitment agency” that blends branded job portals, curation (internally-led or outsourced), and marketing-fueled engagement with VMS or ATS technology (for sourcing and management) and EOR (for payrolling and compliance) for workforce management. Add in some level of automation to place current contractors, contingent workers, retirees, alumni, silver medalists, etc. into talent pools, and, boom, a direct sourcing program is born.

This very non-intricate approach thrives on simplicity: engage candidates, curate them, and provide internal TA and recruitment teams with access to these workers. The past several years has seen a shift, however, in how direct sourcing is approached. Deeper automation, specific functionality offered by direct sourcing platforms, a sharper focus on skills-based hiring, more attention on the marketing/brand aspects, and the power of artificial intelligence are all transforming what direct sourcing truly means today in 2024.

Here’s where some of the scuttlebutt meanders and gets us to a point of “theory vs. reality” within the direct sourcing discussion. Do businesses really need point direct sourcing platforms? Is there a real role for AI? Is there even a true DEFINITION for direct sourcing? Where does VMS fit in? Is it true that direct sourcing technology is just next-gen ATS? And, finally, does direct sourcing have a place within the contemporary extended workforce program?

Let’s tackle these one-by-one, because that’s just how we do things here at FOWX.

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The FOWX Fifteen: AMS.

Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 12/03/2024

The FOWX Fifteen is an exclusive series at the Future of Work Exchange that highlights the industry’s innovative and disruptive platforms, solutions, and offerings that are driving the Future of Work movement. These providers are actively pushing talent technology innovation and ushering in a new, digital era of workforce management, staffing, and talent acquisition.

The Background

The talent technology industry is awash in innovation. Whether it’s AI-fueled functionality, next-generation managed services, or progressive workforce management capabilities, there is no better or more ideal time to be a talent acquisition, HR, or extended workforce leader than right now.

A talent-centric, candidate-oriented world of work means that enterprises require a level of elegance, automation, and efficiency to effectively maximize new and exciting hiring strategies. Progressive concepts such as direct sourcing, digital recruitment, skills-based hiring, and Best-in-Class talent technology stacks are all elements that now fuel the Future of Work movement.

Enter AMS.

Why They Were Selected

AMS was purpose-built for the Future of Work, with an impressive arsenal of talent acquisition and workforce management services, all buoyed by the powerful AMS One platform. AMS One comprehensively streamlines workforce (traditional and extended) management through integrated digital capabilities, seamlessly enabling comprehensive recruiting, hiring, engagement, and operational (scheduling, workforce planning, payment processing, and reconciliation) functions within a unified suite of functionality.

Furthermore, AMS stands as a robust service provider that impeccably blends MSP, RPO, talent acquisition, and direct sourcing solutions together in an sophisticated, cohesive manner. The company’s Best-in-Class recruitment-driven offerings are anchored in global talent expertise and an innovative service delivery model that prioritizes forward-thinking talent strategies and approaches. And, with progressive solutions like the gamechanger AMS Omnis, AMS continues to thrive in an evolving world of work.

In Their Own Words

“AMS is honored to be named a global leader by Ardent Partners and the Future of Work Exchange, reflecting our unique ability to drive transformative talent acquisition outcomes. As a trusted partner to some of the world’s most well-known organizations worldwide, we deliver comprehensive talent solutions—across MSP, RPO, direct sourcing, talent advisory, and digital solutions—all powered by cutting-edge technology and a relentless focus on innovation.

Today’s talent landscape is rapidly evolving, with a growing need for agile external workforce strategies. Our capabilities enable TA and HR leaders to adapt swiftly to this shift, helping companies leverage their brand to attract, engage, and retain critical talent on a global scale. Our award-winning solutions, like AMS One, combine deep domain expertise, data-driven insights, and advanced AI to optimize strategic talent initiatives. This accolade reinforces AMS’s commitment to empowering organizations to build high-performing teams and unlock new value through the external workforce. As the Future of Work unfolds, we’re here to ensure our clients stay ahead embracing change.” –Christoph Niebel, Chief Client Officer and President, Americas

The Outlook

AMS is positioned as a Future of Work-driven, talent-oriented, and innovation-heavy workforce solutions stalwart, seamlessly transforming talent acquisition through total talent intelligence and digitized hiring optimization. By converging advanced AI-powered functionality with agile direct sourcing and recruitment methodologies, AMS will continue to empower organizations to navigate the complex talent ecosystem with unprecedented, strategic precision.

The FOWX Fifteen: Opptly

Direct Sourcing Solution Providers Talent Acquisition Technology and Innovation by Christopher J. Dwyer on 11/22/2024

The Background

Quick…name the most electrifying word in today’s business landscape. I’ll give you 10 seconds. Wait, you didn’t even need 10 seconds, did you?

“Artificial intelligence” rolls off your tongue faster than a machine learning algorithm processes data..and for good reason: AI has become the cornerstone of innovation, seamlessly weaving through enterprise ecosystems – from the intricate networks of IT and analytics to the strategic realms of finance and talent acquisition.

Recent groundbreaking research from Ardent Partners and Future of Work Exchange reveals a transformative landscape: an overwhelming 82% of businesses entered 2024 with a strategic mandate to amplify their artificial intelligence capabilities. Even more revealing? Among HR and talent acquisition leaders, that number skyrockets to nearly 95% – a clear signal of a profound technological revolution.

This isn’t just about technological adoption, though; it’s about a fundamental reimagination of talent strategy. AI represents more than a tool – it’s a strategic accelerant that empowers talent leaders to transcend traditional boundaries. By harnessing next-generation analytics, organizations can now dynamically map, find, and engage talent, while simultaneously building robust, forward-looking skills taxonomies that don’t just predict the Future of Work – they actively shape it.

Enter Opptly.

Why They Were Selected

Opptly’s core offerings revolve around progressive functionality within direct sourcing, candidate engagement, skills-based hiring, and skills taxonomy development. However, the platform is so much more than the sum of these attributes, as the solution is a true “people technology” that is actively blazing a path forward within the Future of Work movement.

The proprietary and future-leaning artificial intelligence-driven technology within the Opptly platform represents the veritable future of AI in talent acquisition. Opptly’s advanced AI offerings seamlessly match the best talent with mission-critical opportunities by analyzing deep professional insights, skills, expertise, and project requirements in real-time, all while factoring in progressive candidate elements such as culture, economics, etc.

Through sophisticated machine learning algorithms and NLP-augmented functionality, Opptly optimizes the entire talent lifecycle – from sourcing and vetting to engagement and project success – delivering unparalleled efficiency and precision in the direct sourcing, talent acquisition, and workforce management ecosystems.

In Their Own Words

“Opptly is proud to be included amongst other Best-in-Class platforms and solutions in the talent technology arena. This accolade is a testament to our unwavering commitment to truly unbiased artificial intelligence that can revolutionize the ways businesses find, engage, and manage their total talent. Opptly represents the future of hiring – where cutting-edge technology meets human potential, creating a seamless, intelligent, and equitable dynamic that transforms how organizations and talent connect, collaborate, and succeed.” – Lori Hock, CEO of Opptly

The Outlook

Simply put, Opptly is a pure technological representation of the Future of Work movement: next-generation functionality, AI-fueled talent innovation, and cutting-edge, skills-based hiring offerings that are actively revolutionizing the ways businesses address how work is done. As artificial intelligence continues to dominate talent acquisition strategies, Opptly and its progressive AI sophistication will continue to help enterprises dynamically adapt to modern workforce trends, seamlessly match top-tier talent with critical opportunities, transform their talent strategies, and provide an intelligent and infinitely scalable competitive advantage.