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Consortium for Service Innovation


Initial thoughts from the group

  • IT’s ability to adapt to new technologies, what are alternative ways to get things done
  • How to describe the value of getting your stuff done
  • How to get IT to see the big picture
  • Customer adoption and acceptance/proliferation of standards (can it be put into the customer network)
  • Where to place the knowledge (within own corp., push into customer environment, how to get customer to use it)
  • Cost savings to get to the customer fasters, but a higher cost to maintain overtime
  • Localization/globalization (language, parts distribution) more outliers
  • Continuum of self-help technology (how to leverage the investments already made)
  • Multi-vendor support, technology to support, getting access to intellectual property, no emerged standard



Traditional model

  • People serve the application –  a “user interface”
  • Multi year lead time
  • Focus on visible costs


New model

  • Application serves the people – a “users’ user interface”
  • On demand functionality
  • Costs are fully understood


The Shifting Focus of Core Competencies



The company

Family/network of companies

Enhanced network

Unit of analysis

The company

The extended enterprise—the company, its suppliers, and its partners

The whole system—the company, its suppliers, its partners, and its customers


What is available within the company

Access to other companies' competencies and investments

Access to other companies' competencies and investments as well as customers' competencies and investments of time and effort

Basis for access to competence

Internal company-specific processes

Privileged access to companies within the network

Infrastructure for active ongoing dialogue with diverse customers

Value added of managers

Nurture and build competencies

Manage collaborative partnerships

Harness customer competence, manage personalized experiences, and shape customer expectations

Value Creation


Collaborate with partner companies

Collaborate with partner companies and with active customers

Sources of managerial tension

Business-unit autonomy versus leveraging core competencies

Partner is both collaborator and competitor for value

Customer is both collaborator and competitor for value

See Gary Hamel and C.K. Prahalad, "The Core Competence of the Corporation," Harvard Business Review, May-June, 1990.

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