企业核心竞争力：TheCoreCompetenceoftheCorporation课件

1、The Core Competence of the CorporationC.K. Prahalad and Gary HamelThe importance and characters of core competencies. 2 From core competencies to core products4 Identify core competencies and Lose them.3 SBU and Developing Strategic Architecture5 Redeploying to Exploit Competencies.6 A Case of NEC a

2、nd GTE.1Structure of this articleC. K. Prahalad One of the greatest Indian business thinkers Professor of corporate strategy and international business at the University of Michigan. Focus on next practices ,corporate strategy and the role of management in diversified multinational corporationsGary

3、Hamel CEO of Strategos, Director of the Woodside Institute, and visiting professor of strategic management at London Business school Concepts : “core competence,” “strategic intent,” and “industry revolution” Created rule-breaking strategies that have generated billions of dollars in new wealth.What

4、 is core competence?KnowledgeSkillsAttitudesCore CompetenceCore competencies are the organizations collective learning and ability to coordinate and integrate multiple production skills and technology streams. They are also about the organization of work and delivery of value in services and manufac

5、turing. NEC VS. GTE (1980)NECGTEBusiness PortfoliosTelephoneSwitching andtransmissionsystemsLighting productsSylvania TVSatellitesSemi-conductorsDefense systemsDigital PABXPacket switchingTelenet Only comparable in technological base and computer businesses No experience in telecommunicationsGTENEC2

6、1.8916.461980198819801988A case: NEC VS. GTE3.89.98$ billionNEC VS. GTE (1988)GTEBusiness UnitsTelephoneSwitching andtransmissionsystemsLighting productsSylvania TVSatellitesSemi-conductorsDefense systemsDigital PABXPacket switchingTelenetSemiconductorsFirst-tier playerNECTelecommunications products

7、ComputersMobile telephonesFacsimile machinesLaptop computersWord leaderNew enterNEC: Why?Strategic intent and strategic architecture of “C&C” (Computer & Communication)Constituted a “C&C Committee”Identified three interrelated streams of technology and market evolutionCared about “core product” and

8、built strategic alliances Structure:The importance of core competencies.1The characters of core competencies.2How not to think of competence?3(1) The Roots of Competitive AdvantageNEC: GTE:VSa portfolio of competenciesa portfolio of business-repeated across many industryFrom 1980 to 1988, the achiev

9、ements of Japanese companies-Low cost and high quality; Inventing new markets, creating new products, and enhancing them in vanguard(前卫的) markets; In established market, they also made great challenge to western companies.Many examples are given here.Whats the problem in many western companies?NotTh

10、eir senior executives are less capable than those in Japan . NotJapanese companies posses greater technical capabilities.YesThey limit the ability of individual businesses to fully exploit the deep technological capability.In the long run, competitiveness derives from an ability to build the core co

11、mpetencies at lower cost and faster than competitors.The problem in many western companiesEnd ProductsBusiness UnitsCore ProductsCore Competence.Corporationprovides nourishment, sustenance and stabilityCore competencies are the collective learning in the organization, especially how to coordinate di

12、verse production skills and integrate multiple streams of technologies.It is also about the organization of work and the diversity of value.Core competencies are communication, involvement and deep commitment to working across organizational boundaries. Involves many levels of people and all functio

13、ns.Does not diminish with use. And core competencies are also the engine for the new business development. Patterns of diversification and market entry my be guided by them. (2) The Characters of Core CompetencesSome companies and core competenciesCultivating core competence does not mean outspendin

14、g rivals on research and development.Core competence does not mean shared costs, as when a two or more SBUs use a common facility-a plant, service facility, or sales force-or share a common component.(3) How Not to Think of CompetenceSo how to identify core competencies? Structure: Identify core com

15、petencies1 Lose core competencies23From core competencies to core productsIdentify core competencies three tests Core CompetenciesIdentifyCore competencies provide potential access to a wide variety of marketCore competencies should make a significant contribution to the perceived customer benefits

16、of the end productsCore competencies should be diffucult for competitors to imitateLosing core competencies Core CompetenciesLoseOutsourcing the core competenciesHaving an alliance or without knowing where to built competence leadershipForgoing opportunities to establish competenciesTwo Lessons（教训）T

17、he costs of losing a core competence can be only partly calculated in advance. A company has failed to invest in core competence building will find it very difficult to enter an emerging market. Throw out a baby with bath water in divestment decisionsWhen it comes to core competencies, it is difficu

18、lt to get off the train, walk to the station, and then reboard.From Core Competencies to Core Products Core CompetenciesCore ProductsEnd productsLinchpin（关键）The physical embodiments of core competenciesThe components or subassemblies actually contributing to the value of the end productsGlobal Compe

19、tition at Each LevelCore CompetenciesCore ProductsEnd productsBuild or defend leadership over a long time Build world leadership in the design and development of a particular class of product functionalitySeek to maximize world manufacturing share in core productsMove downstream to build brand share

20、 Structure:The Tyranny of the SBU1Developing Strategic Architecture2Two Concepts of the Corporation:Competitiveness of todays productsInterfirm competition to build competenciesPortfolio of businesses related in product-market termsPortfolio of competencies core products, and businessthe SBU ”owns”

21、all resources other than cashSBU is a potential reservoir of core competenciesResource is allocated business by businesstop management allocates capital and talentOptimizing corporate returns through capital allocationtrade-offs among businessesClarify strategic architecture and building competencie

22、s to secure the futureS B UCore CompetenceThe reconceptualization of SBU What are the costs of this distortion?In many companies, the SBU prism means that only one plane of the global competitivebattle is visible to top managers.1.Underinvestment in Developing Core Competencies and Core ProductsReas

23、ons:No single business may feel responsible for maintaining a viable responsibility.No one can justify the investment required to build world leadership in some core competence.Corporate management may not impose a more comprehensive view to each SBU. Result: SBU managers tend to underinvest.2.Impri

24、soned ResourcesReason:People who embody the unique competence are seen as the sole property of the business they grow up. SBU managers are unwilling to lend their competence carriers.Result:The people cant get assigned to the most exciting opportunities, and their skills begin to atrophy.3.Bounded I

25、nnovationReason:Core competence are not recognized.Result:Individual SBU will pursue only those innovation opportunities that close at hand. Conceivingof the corporation in terms ofcore competenceStrategic Architecture: Whats the strategic architecture?A road map of the future that identifies which

26、core competencies to build and their constituent technologies.AdvantagesMotivate organizations to learn from alliancesHelp organizations to ensure internal development effortsReduce the investment needed to secure future market leadershipHelp companies to find a distinct competitive advantageA tool

27、for communicating with customers and other external constituents.What a strategic architecture should look like?The architecture provides a logic for product and market diversification.The strategic architecture should make resource allocation priorities transparent to the entire organization.The st

28、rategic architecture is not a forecast of specific products or specific technologies between customer functionality requirements, potential technologies, and core competencies. Example: VickersSee the potential Develop their strategic architecture Make targeted acquisitions Reorganization Building administrative systemsReap benefitsGoal: to ensure that change in technology does not displace Vickers fromIts customersA map of emerging customer needs, changing technol