IS 449W: Organizations Strategy and Innovation

Inventory of capabilities

Categorized assessment of the firm's strengths, importance, and criticality

Internal analysis

Process of identifying the firm's strengths and weaknesses

Theory in action

Approach to identifying resource and capability gap

Organizing capabilities

Arranging capabilities by criticality and current level of expertise

Porter's five-force model

Assesses existing rivalry, threat of potential entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitutes

Firm's position in core competencies

Assessing the firm's standing in its core competencies

Internal perspective

Assessment of company operations and processes

Customer perspective

Assessment of customer satisfaction and happiness

Financial perspective

Assessment of financial performance and standing, and healthy cash flow

Gallon, Stillman, and Coates

Authors who provide a step-by-step process for identifying core competencies

Dynamic capabilities

Competencies that enable firms to quickly respond to change

Threat of potential entrants

Determines attractiveness and barriers to entry in the industry

Bargaining power of buyers

Determines buyer influence based on number, differentiation, inputs sold, switching costs, and potential for vertical integration

Degree of existing rivalry

Determines competition based on number of firms, relative size, differentiation, demand conditions, and exit barriers

Threat of substitute

Determines substitute influence based on number, function, and relative price

Bargaining power of suppliers

Determines supplier influence based on number, differentiation, inputs obtained, sales sold, switching costs, and potential for vertical integration

Who captures value offered by complements

Determines which firm benefits from the value provided by complements

Testing candidate core competencies

Evaluating potential core competencies against specific criteria

Distilling competencies

Filtering capabilities into potential core competencies

Innovation and learning

Focus on new technology, competencies, growth, and revenue

Steering committee

Group responsible for overseeing the identification of core competencies

Stakeholder analysis

Identifies stakeholders, their wants, resources contributing to the organization, and likely claims on the organization

Resource and capability gap

Identifying the difference between strategic intent and current position

Role of complements

Importance of complements and their availability for different rivals

Strategic intent

Long-term goal that builds upon core competencies and looks ahead 10-20 years

Balanced scorecard

Performance measurement incorporating financial, customer, internal, and innovation perspectives

Risk of core rigidities

Potential for firms to become overcommitted and rigid in their current competencies

Identifying core competencies

Process of identifying integrated and harmonized abilities that distinguish the firm

Complements

Products that are bought together, such as Nespresso and Nespresso pods

Difficult to imitate resources

Resources that are tactic, path dependent, socially complex, or causally ambiguous

Value chain

Sequence of activities that create value for the firm

Core competencies

Set of abilities that provide competitive differentiation and are hard to imitate

Sustainable competitive advantage

Strengths with the potential to provide long-term advantage over competitors

Learning with new technology

The need to acquire new skills and knowledge when adopting new technology