Following is a brief definition of core competencies and competitive advantage and their fit with creativity and innovation management. Core Competence: A core competence is one which critically underpins the organisation's competitive advantage. Companies can differentiate themselves from their competitors with specific core competencies, but often not for long. The differentiation is difficult to sustain and can often be imitated by competitors. The integration (and attainment) of constituent skills that is the distinguishing mark of a core competence, is achieved and sustained through developing strong dynamic capabilities, particularly in a world of innovation based competition. Competitive Advantage: Whilst a core competence is a source of competitive advantage, not all competitive advantages arise from core competencies. Often seemingly unassailable advantages prove transitory because of a change of underlying factors. The very existence of competitive advantage sets in motion creative innovations that, as competitors strive to level the playing field, cause the advantage to dissipate. Recognition of, and adaptation, to change is thus a pre-requisite of successful strategy. For many organisations, the only truly sustainable advantage comes from out-innovating the competition. These topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com. You can also receive a regular, free newsletter by entering your email address at this site. You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained. |
