Business Innovation ? Core Competency and Competitive Advantage

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.

There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.

There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.

Core Competency and Competitive Advantage

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.

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 and other 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.

Kal Bishop MBA, is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com/

---

Quality Hiring: Are You Doing It Right?

Quality hiring is more than running ads, screening, interviewing and... Read More

Corporate Governance for Business Owners

It is clear that good Corporate Governance is in the... Read More

CEOs And Boards Are Locked In A Spiral Of Doom

American CEOs are dropping like flies. Boards, armed with new... Read More

Why You Need a Business Plan

This article was originally called "Do You Need a Business... Read More

10 Ways To Work Through A Business Slowdown

In running any kind of business, it's inevitable that sometimes... Read More

50 Great Ways to Motivate and Not Break the Bank

Quick, Easy, and Even Fun! 1. Smile, say "Hi! How... Read More

Building Shareholder Value Through Your People

Increasing shareholder value is the most important driver for organisations... Read More

Why Outsourcing Could Be The Best Thing You Do For Your Business

While it's probably not true to say that the traditional... Read More

Innovation Management ? the Root of the Problem

Creativity can be defined as problem identification and idea generation... Read More

What Personal Assistants Really Want

What would happen if the personal assistants in your organisation... Read More

Enable Continuous Improvement of IT Services through ITIL

One of the major benefits, if not THE benefit of... Read More

Better Manager Skills - How to Learn

When you first take over a department, expectations are usually... Read More

Managing Employees Is A Little Like Herding Cats

Q: I started my small business about a year ago... Read More

Change Management: Avoid Havoc In Very Uncertain Times

Escalating gas prices...tensions and turmoil in the Middle East...a struggling... Read More

Protect Your Organizations Proprietary Information

The other day one of our overseas clients called in... Read More

An Honest Look at Your Business

There is a difference between being comfortable and being in... Read More

Creativity and Innovation Management: The Value Of Due Diligence

Creativity can be defined as problem identification and idea generation... Read More

Its Not Always What You Say

A major source of communication breakdowns is incongruence between the... Read More

Know the Source of Business

One of the first questions we ask a prospect or... Read More

Keeping and Motivating the Best Employees

Keeping and Motivating the Best Employees ... Read More

Teaching Large Companies To Think Like The Little Guys

Q: I am an executive at a large company and... Read More

Plans & Goal Setting - Kicking winning Goals

Kicking Winning Business Goals The competition for business... Read More

Succession Planning for Your Business - 7 Key Benefits

A core activity in many successful businesses, Succession Planning is... Read More

Take The Guesswork Out Of Problem Solving

In today's chaotic world and uncertain economic times too many... Read More

Technology & Communication

A study a couple of years ago found that 63%... Read More

The Seven Cs: Partnership Danger Signs - The 4th C: Cumulative Money Problems

A series of articles exploring the seven critical areas that... Read More

Delegation: When to Delegate, Who to Delegate to

There are some very simple guides for delegation.Most people delegate... Read More

Communication, Feedback, and Participation: Three Easy Tidbits For Smarter Business

On communication: One of the biggest strains on the communication... Read More

Influencing Change - A Guide for Sellers, Coaches, and Supervisors

When people or groups make a decision to purchase something,... Read More

Innovation Management ? Flexibility

Creativity can be defined as problem identification and idea generation... Read More

Using, Choosing, and Using an educational consultant

IntroductionThe aim of this document is to provide advice and... Read More

6 Shared Factors of Successful Executives

These factors where determined by interviews with and books from... Read More

Giving a Good Appraisal Interview

Although this performance discussion is an opportunity for you to... Read More