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
