To gain competitive advantage, Entrepreneurs, and businesses should focus on developing their core competencies. Figure what you are good at and focus! There is a danger in trying to do much - In trying to be all things to all men.
Core competencies are the harmonized combination of a company’s technical capabilities, intellectual capital, knowledge management and other resources. They distinguish the company from others in the industry, and allow it to be competitive in the market. Firms should effectively define competencies by identifying
· unique human resources
· material resources
· coordination capacity
· managerial skills
These resources should be combined with information technology (IT) to drive innovation and create a competitive advantage. Innovation opportunities should be created by focusing on a few core competencies. To effectively identify and define core competencies, it is recommended that firms pursue a coherent capabilities-driven strategy involving the following steps:
1. Determine what you are good at
2. Select three (3) - six (6) mutually reinforcing capabilities, and develop them
3. Align these capabilities with the company’s strategy
4. Align capabilities system with the right opportunities in the market
5. Create value for customers
6. Improve customer service through constant monitoring and feedback
Know what you are good at! - Focus on what you are good at!
Dr. Elaine Williams-Morgan is a Media & Management Consultant, Entrepreneur, and Business Educator. She blogs about Strategy & Innovation, Media Matters, and Entrepreneurship. Follow her posts at Focus on innovation with Dr. Elaine Williams-Morgan and at YourBusiness International Follow Elaine on Twitter @drElainea and on Facebook