Many corporations are falling behind in the race to innovate due to a lack of core competencies. This is often due to an overemphasis on financial performance and short-term goals, which can stifle creativity and innovation. Core competencies are the collective learning across the corporation, especially the ability to coordinate diverse production skills and integrate streams of technologies.
Innovation is driven by a deep understanding of technologies and customer needs, and the ability to integrate this knowledge in products and services. It’s crucial for corporations to invest in building these competencies to stay competitive.
The role of senior management is vital in nurturing an environment that encourages the development and application of core competencies. They must recognise the value of innovation, encourage cross-functional collaboration, and invest in long-term strategic goals.
Sadly, many corporations fail to do so, often due to an outdated belief that control, rather than creativity, leads to success. This mindset can lead to a lack of innovation, resulting in products and services that are disconnected from customer needs and market trends.
In conclusion, corporations must shift their focus from short-term financial performance to building and nurturing core competencies. This will enable them to innovate and stay competitive in the ever-changing business landscape.
Go to source article: http://blogs.hbr.org/2014/10/the-core-incompetencies-of-the-corporation/