Analyzing Resources & CapabilitiesDistinctive Capabilities as a Consequence of Childhood ExperiencesSlide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Case: Eastman KodakAnalyzing Resources & CapabilitiesAnalyzing Resources & Capabilities•Dynamic capabilities•Knowledge-based views of the firmOUTLINE2Distinctive Capabilities as a Consequence of Childhood ExperiencesDistinctive Capabilities as a Consequence of Childhood ExperiencesCompany Capability Past HistoryExxon Financial Exxon’s predecessor, Standard Oil (NJ) management was the holding co. for Rockefeller’s Standard Oil TrustRD/ Coordinating Shell a j-v formed from Shell T&T founded toShell decentralized sell Russian oil in China, and Royal Dutch global empire founded to exploit Indonesian reservesBP “Elephant Discovered huge Persian reserves, went on to hunting” find Forties Field and Prudhoe BayENI Deal making in The Enrico Mattei legacy; the challenge of politicized managing government relations in post-war environments ItalyMobil Lubricants Vacuum Oil Co. founded in 1866 to supply patented petroleum lubricantsApproaches to Capability DevelopmentApproaches to Capability Development1) Acquire and develop the underlying resources. Especially human resources --Externally (hiring) --Internally through developing individual skills 2) Acquire/access capabilities externally through acquisition oralliance 3) Greenfield development of capabilities in separate organizational unit (IBM & the PC, Xerox & PARC, GM & Saturn) 4) Build team-based capabilities through training and team development (i.e. develop organizational routines) 5) Align structure & systems with required capabilities6) Change management to transform values and behaviors (GE, BP)7) Product sequencing (Intel , Sony, Hyundai)8) Knowledge Management (systematic approaches to acquiring, storing, replicating, and accessing knowledge)1) Acquire and develop the underlying resources. Especially human resources --Externally (hiring) --Internally through developing individual skills 2) Acquire/access capabilities externally through acquisition oralliance 3) Greenfield development of capabilities in separate organizational unit (IBM & the PC, Xerox & PARC, GM & Saturn) 4) Build team-based capabilities through training and team development (i.e. develop organizational routines) 5) Align structure & systems with required capabilities6) Change management to transform values and behaviors (GE, BP)7) Product sequencing (Intel , Sony, Hyundai)8) Knowledge Management (systematic approaches to acquiring, storing, replicating, and accessing knowledge)Product Sequencing to Build Capabilities: HyundaiProduct Sequencing to Build Capabilities: Hyundai•Assembly•Production engineering•Local marketing•Assembly•Production engineering•Local marketing•Auto styling &design•Casting & forging•Chassis design•Tooling•Body production•Export mktg.•Auto styling &design•Casting & forging•Chassis design•Tooling•Body production•Export mktg.•FWDengineering•CAD/CAM•Assemblycontrolsystems•Advancedcomponenthandling•FWDengineering•CAD/CAM•Assemblycontrolsystems•Advancedcomponenthandling•Hydrodynamics•Thermodynamics•Fuel engineering •Emission control•Lubrication•Kinetics& vibration•Ceramics•Electronic controlsystems•Hydrodynamics•Thermodynamics•Fuel engineering •Emission control•Lubrication•Kinetics& vibration•Ceramics•Electronic controlsystems•Large-scale design integration•Global logistics•Lifecycle engineering•Large-scale design integration•Global logistics•Lifecycle engineeringSKD CKDFord CortinaSKD CKDFord CortinaPonyPonyAccentAvanteSonantaAccentAvanteSonantaExcelExcelProductsProductsCapabilitiesCapabilities‘Alpha’engine‘Alpha’engine19681970197419851994-954. Develop strategy implications: (a) In relation to strengths--How can these be exploited more effectively and fully? (b) In relation to weaknesses --Identify opportunities to outsourcing activities that can be better performed by other organizations. --How can weaknesses be corrected through acquiring and developing resources and capabilities?3. Appraise the firm’s resources and capabilities in terms of:(a) strategic importance(b) relative strength2. Explore the linkages between resources and capabilities1. Identify the firm’s resources and capabilitiesSTRATEGYCAPABILITIESRESOURCESPOTENTIAL FOR SUSTAINABLE COMPETITIVE ADVANTAGESummary: A Framework for Analyzing Resources and CapabilitiesSummary: A Framework for Analyzing Resources and Capabilities1) Why the surge of interest in knowledge management (KM)?--knowledge as the key resource of the firm--giving us a better understanding of management2) What is KM? 3) What progress have we made, what are the key gaps, which areas are likely to add most value? 4) Developing strategy: Exploiting strengths, protecting and eliminating weaknesses5) Building the capability base: Can it be done? How?6) What can be learn from Knowledge Management?7) Implications for organizational structure.1) Why the surge of interest in knowledge management (KM)?--knowledge as the key resource of the firm--giving us a better understanding of management2) What is KM? 3) What progress have we made, what are the key gaps, which areas are likely to add most value? 4) Developing strategy: Exploiting strengths, protecting and eliminating weaknesses5) Building the capability base: Can it be done? How?6) What can be learn from Knowledge Management?7) Implications for organizational structure.OUTLINEKnowledge Management and the Knowledge-based View of the FirmKnowledge Management and the Knowledge-based View of the FirmWhat is Knowledge Management?What is Knowledge Management?Definition:“The systematic leveraging of information and expertise to improve organizational innovation, responsiveness, productivity and competency.” (Lotus division of IBM) I T I T On-the-jobTrainingOn-the-jobTrainingNew Product DevelopmentNew Product DevelopmentBenchmarkingBenchmarkingResearchResearchCustomer &Market AnalysisCustomer &Market AnalysisIntellectual PropertyProtectionIntellectual PropertyProtectionBestPracticeTransferBestPracticeTransferCommunicationsCommunicationsScenarioAnalysisScenarioAnalysisStrategic AlliancesStrategic