Business Innovation - Core Competency and Competitive Advantage

Creativity can be defined as problem identificationdynamic capabilities, particularly in a world of
and idea generation whilst innovation can be definedinnovation based competition.
as idea selection, development and commercialisation.Whilst a core competence is a source of competitive
There are other useful definitions in this field, foradvantage, not all competitive advantages arise from
example, creativity can be defined as consisting of acore competencies.
number of ideas, a number of diverse ideas and aOften seemingly unassailable advantages prove
number of novel ideas.transitory because of a change of underlying factors.
There are distinct processes that enhance problemThe very existence of competitive advantage sets in
identification and idea generation and, similarly, distinctmotion creative innovations that, as competitors
processes that enhance idea selection, developmentstrive to level the playing field, cause the advantage
and commercialisation. Whilst there is no sure fireto dissipate.
route to commercial success, these processesRecognition of, and adaptation, to change is thus a
improve the probability that good ideas will bepre-requisite of successful strategy. For many
generated and selected and that investment inorganisations, the only truly sustainable advantage
developing and commercialising those ideas will not becomes from out-innovating the competition.
wasted.These and other topics are covered in depth in the
Core Competency and Competitive AdvantageMBA dissertation on Managing Creativity &
A core competence is one which critically underpinsInnovation, which can be purchased (along with a
the organisation's competitive advantage. CompaniesCreativity and Innovation DIY Audit, Good Idea
can differentiate themselves from their competitorsGenerator Software and Power Point Presentation)
with specific core competencies, but often not forfrom
long. The differentiation is difficult to sustain and canYou can also receive a regular, free newsletter by
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The integration (and attainment) of constituent skillsYou are free to reproduce this article as long as no
that is the distinguishing mark of a core competence,changes are made and the author's name and site
is achieved and sustained through developing strongURL are retained.