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Presentation,Core Competence & Value Innovation,By Group 8 : 紫金之巅 石 光 雷 丹,Team Members,窦伟 信息管理与信息系统 石光 信息管理与信息系统 张鹤 信息管理与信息系统 何治龙 信息管理与信息系统 屠蔚蓝 工业工程 郑坦 工业工程 李悦 工业工程 陈晓玲 电子商务 雷丹 文科班,Brief Introduction,The Core Competence of the Corporation Written by: C.K.Prahalad and Gary Hamel Value Innovation: The Strategic Logic of High Growth Written by: W.Chan Kim and Renee Mauborgne,GTE & NEC,Why is the dramatic change between GTE & NEC?,What is Core Competence?,How to identify Core Competence?,What is Core/End Products?,Whats the difference of SBU & Core Competence?,How to develop strategic architecture?,The Logic,GTE & NEC,GTE: 1980: telecommunication industry Variety of products 1988: Telephone operating company Others closed or divested,NEC: 1980: small computer business company 1988: World leader in telecommunication and computer,Why is the dramatic change between GTE & NEC?,C&C Committee,Core Competence,Core Product,End Product,Strategic architecture,Resources,Myriad strategic alliances,Computing,Communication,Components,Semiconductors,Mobile,Mainframe,PC,Why is the dramatic change between GTE & NEC?,GTE: NO strategic intent and strategic architecture NO commonly accepted view of evolving IT SBU: Decentralization makes it impossible to focus on core competencies,Why is the dramatic change between GTE & NEC?,Distinction between GTE & NEC:,NEC: a portfolio of competencies GTE: a portfolio of businesses,NEC: long-sighted (price/performance of current products) GTE: short-sighted (core competencies),The real source of CA: managements ability to consolidate corporate-wide technologies and production skills into competencies,What is Core Competence?,Core Competence,Core Production,End Production,Honda Cars,Manufacturing Of engines,What is Core Competence?,Collective learning in the organization Technology integration Embed tech into product via teamwork & value delivery Communication, involvement & commitment to working across boundaries,How to identify Core Competence?,3 criteria,CC provides potential access to a wide variety of markets,CC should make a significant contribution to the end products (customer benefits ),CC should be difficult for competitors to imitate,What is Core/End Products?,Core Products: The components that actually contributes to the value of end products Linkage between Core Competence and end products End Products: directly to customers How to distinguish? Core Products: manufacturing share End Products: brand share,SBU & Core Competence,Reconceptualization of the Corporation Costs of SBU Underinvestment in developing Core Competence Imprisoned Resources Bounded Innovation,How to develop strategic architecture?,Make resource allocation transparent To the entire organization,Development of administrative infrastructure to strategic architecture, teamwork, think long term,Identify and commit to the technical and production linkages Across SBUs,The strategic architecture can not be copied easily by competitors.,Value Innovation,Outline,more information about Value Innovation summary of the paper Value Innovation : The Strategic logic of High Growth,Whats Value Innovation,Value Innovation is not defining the solution to a problem. V.I is redefining the problem itself.,Authors,W. Chan Kim & Rene Mauborgne,W. Chan Kim is a professor of strategy . He was a professor at the University of Michigan He is an advisory member for the European Union. He was born in Korea.,Rene Mauborgne is the INSEAD distinguished fellow and affiliate professor of strategy and management at INSEAD, France. She was born in the United States.,The Book,Details of the Book,Dont Compete with RivalsMake Them Irrelevant In todays overcrowded industries, competing head-on results in nothing but a bloody “red ocean” . Tomorrows leading companies will succeed by creating “blue oceans” of uncontested market space ripe for growth .,Details of the Book(contd),The Paper,Value Innovation : The Strategic logic of High Growth mianly focus on some important views go over without any examples to explain deeply,The Paper(contd),Why do some campanies achieve sustained high growth in both revenues and porfits while some cant? companies fundamental, implicit assumptions about strategy seek to make their competitors irrelevant through a strategic logic,The Paper(contd),Contrast the strategic logic of this approach to that of conventional approaches to strategy,The Paper(contd),Here is no what competitors are doing. not take industry conditions as given not focus on beating the competition but on creating a quantum leap in value so as to dominate the market,The Paper(contd),Value Innovators look for the commonalities in what customers value will to let some customers go as they target the mass of buyers refuse to be constrained by their existing assets and capabilities think in terms of a total solution for customers,even if that means crossing industry boundaries,The Paper(contd),Three Platforms,The Paper(contd),Four Questions,Which factors shoule be raised well above the industrys Standard ?,Raise,Which factors shoule be reduced well below the industrys Standard ?,Which factoer should be created that the industry has never offered ?,Which of the factors that the industry takes for granted Shoule be eliminated ?,Eliminate,Reduce,Create,Position Be Heading,The Paper(contd),AD If you have fallen into a tight focus on what your competition is up to, a quick read of this 10-page paper may be just the tonic to refresh your strategic thin

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