Firm Theory Kim Valbum RUC MEA

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Firm TheoryKim Valbum RUC MEA

• Competence Strategy

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Why Competences?

• Two ways of strategic business development an
  interaction between
• Product-Market Relations who is about positioning
  at markets with products of relevance -
• The developing of Competences and capacities
  within the company in order to deliver services
  in demand and to futher develop the company

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Definitions

• Assets are (here) resources owned by the company
  that provide a better position than the
  competitors (hard resource)
• Capabilities are (here) what the company does
  better thant its competitiors (soft ressource)
• Competences The collective learning in the
  organisation, especially how different kinds of
  production knowledge are coordinated and how the
  streams of techlnology are integrated (Hamel
  Prahalad)
• Technology Hardware software brainware
  orgware (Zeleny)

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More definitions

• Core competence if
• Its difficult to copy
• It can be used by the organisation across the
  combinations of products and markets
• It creates value to the customer and
• The customers must agree!
• Support Complementary Core
• The Strategic importance of competences

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Three kinds of competences

• A single technology with few people
• Several coherent tehnologies i a bigger
  organisational unit
• A complex system of many people in different
  departments, using many kinds of technologies

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The four schools of strategy
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Pendular movements of areas of skills
Time Knowledge management Theory of
Competence The learning
organisation Technology management Advanced
production Technologies Focus Technical
solutions Human resources
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Emprovements programmes
Performance Future product development
Technological roadmapping
TOP ISO 9001
Core competences Customer
service Hit rate Organisation
Time
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Competence Strategy in the future
Overall oriented Learning
focused Technology Management
Innovative Business Process Complex
competences Reeingineering Competence
Strategic area Strategy Quality
Management Mission Management
Knowledge Management Organisational learning
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Business creation

• Product development Production Sales
• Start Start
• Sales
• Development Production Sales
• Idea Concept-
• develop-
• ment
• Technology Positioning
• Proces- Product- Customer-demand
• technology technology

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Strategy Model Miles Snows

• The Entrepreneurial
• Problem
• Choice of product-
• market
• Innovation The Production
• Choice of areas Problem
• of new ventures
• The Administrative Choice of
  technologies
• Problem for production
• Emprovement distribution
• Rationalisation
• of structure/
• Process

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Competence Strategy
Definition Competence Strategy The part of the
companys strategy that focuses on putting
technology and organisational and human knowlege
together in creating value to the customers and
support the product-market strategy in the company
Optimal Route
Route with more deveopment
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Model for development of order winners over time
with examples
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Model for competences within the company

• Administrative
• Production Process
• Product
• Company specific
• Accesibel to everyone
• Simple
• Medium complex
• Complex

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Location of company competen-cies by use of the
value chain
Competitor 2
Competitor 1
Infra Structure Human ressource Technology
Development Purchase Sup- Pro- Distri-
Marke- Service ply duction bution
tingsales
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QFD-Model the Quality Function Deployment

• How
• Relations
• How
• How Product
• important functionalities
• Stakeholders Scale
• Who has Which How well
• which demands? Customer Competitor
• demands? Compare
• Other Relations
• demands What-How
• How many
• Measurepoints

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Cohesiveness between competences, product
market (Hamel Prahalad)

• Core competence The ability to create new
• business by combining
• areas of knowledge
• Core products The ability to manage deve-
• lopment of new functionali-
• ties in product development
• Products Price-/Performance compe-
• Services tition. Present market

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Business Processes go across departments in the
company

• Purchase Production Economy Sales
• Product development
• Sup-
• pli- Handling orders Customers
• ers
• Logistics

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Systemic model for Competence

• Eksternal environments
• Internal organisation
• Customers Individuals Created
• Competitors Skills value
• Suppliers Knowledge base
• Others Tacit knowledge
• Ways to work
• The formal system The social system
• Strategy Informal networks
• Technical systems Learning
• Management systems Values norms
• The fysical environment Business culture
• Procdures Personal relations

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How to characterise essential competences
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S-curve in description of a technolgocial
development

• Performance
• Dismantle
• Basic
• Build and control
• Key
• Invest in selective
• Fast developing
• Monitor
• Appearing
• Time

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Technological development in S-curve

• Technological
• discontinuity
• Era of continuous Era of uncertainty
• development
• Dominat design

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Mintzbergs surrounding world model

• Change of elements
• Stable Unstable
• Simple
• No. Elements
• Complex

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Table to analysis of sourrounding world
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A general potfolio model

• Emerging Developing Stable Mature Change
• The technology Differen-
• is mastered by tiation
• one company techno-
• logies
• Basic
• techno-
• By everybody logies
• in the industry
• Technology ripeness

Balanced portfolio
Ageing portfolio
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Portfolio model

• Technological
• strength 5
• 4
• 3
• 2
• 1
• Low Medium High
• Competitative strength

Key technologies
New technologies
Basic technologies
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Technology plan
Level of knowledge
7 6 5 4 3 2 1
Emerging Promising Key Basic
Mature Competition power
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Model to understand development of competences
Performance

• World class
• Expert
• Good
• Advanced beginner
• Novice

Holistic solution technology organisation
Analysis reengineering
Time
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A learning bow

• Experience
• Act Reflect
• Decide Think out

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Different opinions on learning

• Individual
• adaption
• Decision- Organisational
• support structure
• management
• systems
• Corporate
• culture

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Ways and means to create organisational learning

• The soft side of The hard side of
• The Learning Organisation The Learning
  Organisation
• Master of Zen-buddhism Databases
• Apprenticeship Management infor-
• Company arrangements mation systems
• The Learning Organisation E-mail
  hyper- textsystem
• NLP Groupware
• Lotus Noteds

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Kind of surroundings kinds of competence
development
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Greiners Model of Organizational Growth