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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. 66-77
References:1. Robert A. Burgelman, Clayton M. Christensen, and Steven C.
Wheelwright, Strategic Management of Technology and Innovation, 2009, 5th edition, McGraw-Hill, pp. 237-251
Paul I-Hai Lin, Professor
http://www.ipfw.edu/~linM.S. Technology - IT and Advanced Computer Applications & Industrial
Technology/Manufacturing
Purdue University Fort Wayne Campus
CPET 575 Management of Technology, Prof. Paul Lin
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PART ONE: Readings and Reviews
Reading I-1: “Profiting from Technological Innovation:
Implications for Integration, Collaboration, Licensing, and
Public Policy,” David J. Teece, pp. 32-48.
Reading I-2: “How to Put Technology into Corporate
Planning” - Alan R. Fusfeld, pp. 49-62.
Reading I-3: “The Core Competence of the
Corporation,” C. K. Prahalad and Gary Hamel, pp. 66-
77
Reading I-4: “Management Criteria for Effective
Innovation,” George White, pp. 97-104
CPET 575 Management of Technology, Prof. Paul Lin
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Reading I-3- “The Core Competence of the Corporation,”
C. K. Prahalad and Gary Hamel, pp. 66-77
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
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Reading I-3
Reading I-3: “The Core Competence of the Corporation,” C. K. Prahalad and Gary Hamel, pp. 66-77
“ 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. 69
CPET 575 Management of Technology, Prof. Paul Lin
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Exhibit 1 Competencies: The Roots of Competitiveness
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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
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Reading I-3 (cont.)
Companies Hold Their Global Brand Dominance
3M, http://www.3m.com/
Black & Decker, http://www.blackanddecker.com/
Cannon, www.cannon.com
Honda, www.Honda.com
NEC, www.nec.com
Citicorp
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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. 72
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Exhibit 3 Core Competencies at Cannon
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Reading I-3 (cont.)
Developing Strategic Architecture pp. 74-75
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?
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Conclusion
CPET 575 Management of Technology, Prof. Paul Lin
