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李秋萍 高旋 李升泫 李 莉 李海哨 龚子君 彭博 云晓丹 黄端端

Reference

• The core competence of the corporation

by C.K Prahalad and Gary Hamel

• Dynamic Capabilities And Strategic Management

by David J ． Teece ， Gary Pisano And Amy Shuen

inner-creating  theorycompetence-based theoryresource-based theory

The development of main strategy theory

outer-creating theory

the development of strategy theory

Dynamic Capabilities

2

1

Core Competence

Competitiveness

advantages

competence-based theory

Pay attention to

DoubtWhy did Japanese corporations succeed with

diversified strategy in business competition?

OpinionOpinionDifferent concept of the corporation

SBU(GET) VS Core Competence(NEC)(Strategic business unit)

ExampleExample Consider the last 10 years of GTE and NEC ?

Outline

Core conceptCore concept

SBU concept of corporation

SBU mind-set Corporation Structure

Business2

Business2

11

33

22

Business1

Business1

11

33

22

cashcashcashcash cashcashcashcashBusiness

1

Business1

11

33

22

CorporationCorporation

Toxic side effects•Invent risk

•Underinvestment ( 投资不足）

•Imprisoned resources

•Bounded innovation

•Depend on OEM ( 贴牌生产）

Barriers to building core competencies

Related in product-market

get capital by effect

Pursue today’s product

CORPORATION:

A portfolio of businesses

Spawn( 生产 ) unanticipated products (NEC)

Core competence

End productCore

competence

Competitiveness

of today’s

products (GET)

In the long run ,which

can provide more

profit for corporation?Short-term

Long-term

Core competence concept of corporation

Core competencies are the collective learning in the organization ,especially w to coordinate diverse production skill and integrate multiple streams of technologic. ( 协调整合 ) by Prahalad & Hamel

notice

structure

Back

root

Trunk( 树干 )

Small breach

Business1

Business1

11

22

33

End products

Core

competences

44

33

2 2

11

Core product2Core product2

Core product1Core product1

Business4

Business4

11

22

33

22

33

44

11

Business2

Business2

11

22

33

Business3

Business3

11

22

33

Basic

technologies

Competencies: The Roots of Competitiveness

Business unit

Structure of diversified corporation

2

3

1

Strategic

StepsStrategic

Architecture

（构架）Strategic

Intent

（意图）

• Identify core Competences , Basic technologies and core products

•clarify the corporation’s goals

•Improving the employees

•Program strategies

according to

strategic

architecture to

create core

competencies

Exploit the convergence（融合） of computing and communication

Competencies sever for computing, communications and

components business （计算，通信和元件业务）

Semiconductors( 半导体）

Industry Foresight( 行业前瞻）

Industry Foresight( 行业前瞻）

need

How to get competitive advantages??

A map of future

How to build core competencies?

RestructureCorporation

structure

RestructureCorporation

structure

•StrategicArchitecture

（构架）

Get basic technologies

Get basic technologies

DevelopCore product

DevelopCore product

Enter new business

Enter new business

•Get licensing deal

( 经营许可）•alliances/acquisitions/

recruitment•( 联盟 , 收购 , 招聘 )• Invent oneself

•OEM-supply

( 贴牌生产供应）•Leader in core competence

•Build global brand umbrellas （品牌伞）

• advantages from core competencies \ brands\

chains \ Capital \reputation

•R&D department•Location department•Leaning organization

1

Provide potential

access to a wide

variety of market

2Make a

significant

contribution to

the perceived

customer

benefits of the

end product

3

Should be

difficult for

competitors to

imitate.

Identifying core competencies

Barrier to build core competencies

Imprisoned resources

Different Targets

Succeed in business competition

Competitiveness advantages GET

Everything for core competencies

Resource arrangement

base on Strategic invent

Base on many advantagesInvent risk

Contents

Definition1

Framework2

Conclusion3

What is Dynamic capabilities?

the capacity to

renew competences

Dynamic

the key role of strategic management to match the requirements of a changing environment.

Capabilities

DynamicCapabilities

What is Dynamic capabilities? (continue)

• Dynamic capabilities is the firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environment.

The essence of Dynamic capabilities

DynamicDynamicCapabilitiesCapabilities

Processes Positions

Paths

processes

Coordination/ integration

Learning

Reconfiguration/transformation

Organizational processes

Coordination/integration

2

3

1

How efficiently and effectively internal coordination or integration is achieved is very important. (Aoki,1990)

The way production is organized by management inside the firm is the source of differences in firms’ competence

Competence/ capability is embedded in distinct ways of coordinating

The replication may be difficult

The replication may be difficult

Learning

Characteristics 2Characteristics 1

Learning involves organizational as well as individual skills.

The organizational knowledge generated by learning activity resides in new patterns of activity, in “routines”, or a new logic of organization.

What is learning?

Learning is a process by which repetition and experimentation enable tasks to be performed better and quicker, and new opportunities to be identified.

characteristics

In rapidly changing environments, how

to sustain competence?

In rapidly changing environments, how

to sustain competence?

eg. Benchmarking

Narcissistic

（自恋的） organizations

Competitive

advantage impaired( 削弱 )

Adopt the changing environment and sustain competence

Reconfiguration /transformation

Constant surveillance of markets and technologies and the willingness to adopt best practice

Reconfiguration/transformation

method

Position

Technological

Complementary

Financial

Market

Institutional

Reputational

Position

Specific assets

Path

A firm’s current position is often shaped by the path. And a firm’s previous investments and its repertoire of routines (its history) constrain its future behavior.

Technological opportunities are often fed by innovative activity itself. And the recognition of such opportunities is affected by the organizational structures that link the institutions engaging in basic research to the business enterprise.

Technologicalopportunities

Path dependencies

Conclusion

Entry decisions must be made with reference to the competences and capabilities which new entrants have, relative to the competition.

Identifies likely entrants and their timing of entry.

Emphasizes on the internal processes that a firm utilizes and how they are deployed and how they will evolve.

Conclusion

The competitive advantage is stemming from high-performance routines operating “inside the firm”, shaped by processes and positions. Distinctive competence is generally cannot be acquired; they must be built.