innovation in different organization

1. THE CORE
COMPETENCE OF
THE CORPORATION
PRESENTED BY – GROUP 5
NEHA SINGH (17MBA0040)
POOJA KUMARI (17MBA0045)
SAYAN BANARJEE (17MBA0057)
SHUBHANGI JAIN (17MBA0059)
ANUSUYA M. (17MBA0133)
SOURAV ROY (17MBA0061)

2. What is core Competence ?
• Introduced by C.K. Prahalad and Gary Hamel
• Picture of GTE and NEC in the era of 1980 – 1988
RETHINKING THE CORPORATION
o Creating products that customer needs but have not yet even imagined.
o Strategic intent and strategic alliance (NEC vs. GTE )

3. ROOTS OF COMPETITIVE
ADVANTAGE
• Portfolio of business and portfolio
of competencies create the
difference.
Canon vs. Xerox
• Short run ( price / performance
attributes ) and long run ( low cost /
fast pace attributes )
• Real source of advantage –
consolidated corporate wide
technologies and production skills.
• They grow when applied and shared.

4. How Not To Think Of Competence ?
• Cultivating does not mean outspending rivals on R&D or vertical integration.
• Example: Canon vs. Xerox.

5. Identifying core competencies- and losing them.
• Identifying core competencies
Three tests to identify core
competency.
1. Potential access to wide variety of
markets (display systems )
2. Contribute to the end product
benefits (Honda)
3. Difficult to imitate
(JVC’s decision on videotape)
• Losing core competencies
1. Outsourcing (Chrysler/Honda)
2. Alliance
3. Forgoing opportunities (GEC,
Motorola )

6. From core competencies to core products
• To sustain leadership – Company maximize their share in manufacturing core
products (Matsushita 45%)
• Well targeted core products lead to economies of scale and scope.

7. The tyranny of SBU
• Global leadership is based on core competency , core products and end
products.
Major potholes:
• Underinvestment in developing core competencies and core products
• Imprisoned resources
• Bounded Innovations

8. Developing Strategic Architecture
• Strategic Architecture
• Significant amount of time should be spent ( NEC C & C)
• Consistent resource allocation and administrative infrastructure.

9. Redeploying to exploit competencies
• SBU should bid for core competency in the same way as they bid for capital.
• Core competencies at Canon.
• Rotation program is a way to wean employees.
Core competencies are the wellsprings of new business development