CPET 575 Management Of Technology. PART ONE: Readings and Reviews

Transcription

1 CPET 575 Management Of Technology PART ONE: Design and Implementation of Technology Strategy: An Evolutional Perspective Reading I-3: The Core Competence of the Corporation, C. K. Prahalad and Gary Hamel, pp References: 1. Robert A. Burgelman, Clayton M. Christensen, and Steven C. Wheelwright, Strategic Management of Technology and Innovation, 2009, 5th edition, McGraw-Hill, pp Paul I-Hai Lin, Professor M.S. Technology - IT and Advanced Computer Applications & Industrial Technology/Manufacturing Purdue University Fort Wayne Campus 1 PART ONE: Readings and Reviews Reading I-1: Profiting from Technological Innovation: Implications for Integration, Collaboration, Licensing, and Public Policy, David J. Teece, pp Reading I-2: How to Put Technology into Corporate Planning - Alan R. Fusfeld, pp Reading I-3: The Core Competence of the Corporation, C. K. Prahalad and Gary Hamel, pp Reading I-4: Management Criteria for Effective Innovation, George White, pp

2 Reading I-3- The Core Competence of the Corporation, C. K. Prahalad and Gary Hamel, pp Rethinking the Corporation The Root of Competitive Advantage How to Not to Think of Competence Identifying Core Competencies and Losing Them From Core Competencies to Core Products The Tyranny of the SBU (Strategic Business Unit) Underinvestment in Developing Competencies and Core Products Imprisoned Resources Bonded Innovation Developing Strategic Architecture Deploying to Exploit Competencies Conclusion 3 Reading I-3 Reading I-3: The Core Competence of the Corporation, C. K. Prahalad and Gary Hamel, pp Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies. p. 68 Core competence is communication, involvement, and a deep commitment to working across organizational boundary. p

3 Exhibit 1 Competencies: The Roots of Competitiveness 5 Reading I-3 (cont.) Three Tests to Identify Core Competencies (p. 70) 1. A core competence provides potential access to a wide variety of markets. 2. A core competence should make a significant contribution to the perceived customer benefits of the end product. 3. A core competence should be difficult for competitors to imitate. Limitations Few companies are likely to build world leadership in more than five or six fundamental competencies 6 3

4 Reading I-3 (cont.) Companies Hold Their Global Brand Dominance 3M, Black & Decker, Cannon, Honda, NEC, 7 Reading I-3 (cont.) Core Products Core products are the components or subassemblies that actually contribute to the value of the end product. P. 72 To sustain leadership in a chosen core competence area firms seek to maximize their world manufacturing share in core products. P

5 Exhibit 3 Core Competencies at Cannon 9 Reading I-3 (cont.) Developing Strategic Architecture pp Strategic Questions: How long could we preserve our competitiveness in this business if we did not control this particular core competence? How central is the core competence to perceived customer benefits? What future opportunities would be foreclosed if we were to lose this particular competence? Does the new market opportunities add to the overall goal of becoming the best player in the world? Does it exploit or add to the core competence? 10 5

6 Conclusion 11 6