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Core Incompetencies

Title Author(s) Type Topic(s) Comments Date
Core IncompetenciesSampler, Jeffrey L.Working PaperDigitizing Business Processes02002-10-01
Abstract: During the past decade there has been a fundamental shift in how firms think about strategy-a shift towards core competencies. Many firms now focus on one or two core competencies as their source of competitive advantage. What happens when the world no longer values that core competence? Increasingly information technology contributes to the devaluation of these competencies at the same time as new technologies create new business opportunities. This paper explores the impact of information technology on two fundamental types of core competencies-expertise and information-as well as how quickly technology decays the value of these assets (i.e. their half-life). When the half-lives of both information and expertise reduce together, the strategic impacts are huge. Consequently, firms must increasingly focus on those skills that may be relevant in the future evolution of the industry, but that they do not possess: core incompetencies.

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