SEC300 Securing Microsoft: How Microsoft Does IT

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Happy
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Consider the position transition
GTE
NEC
1980
1988
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Core competencies
why

• Starting with comparable business portfolios

Performing so differently
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distinctions in conceiving

• GTE

NEC
A portfolio of competencies
A portfolio of business

• Articulate strategic architecture
• The convergence of computing and communications
• Collaborative arrangements to multiply internal
  resources
• Enter myriad alliances to learn and absorb other
  companies skills

• No commonly accepted view of which competencies
  to require
• Decentralization of business units
• Increasing dependence on outsiders for critical
  skill
• Collaboration became a route to staged exits

VS
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The source of a companys competitiveness
In the short run The price/performance
attributes of current products
In the long run An ability to build, at lower
cost and more speedily than competitors, the core
competencies that spawn unanticipated products
The real sources of competitive advantage are
to be found in managements ability to
consolidate corporate-wide technologies and
production skills into competencies that empower
individual businesses to adapt quickly to
changing opportunities.
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The problem lies in
Less capable senior executives
Unnecessarily limits the ability of individual
businesses to fully exploit the deep reservoir of
technological capability
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Application Interaction
End products
Business 1
Core product 2
Core product 1
Competence 2
Competence 2
Competence 3
Competence 4
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The collective learning in the organization,
especially how to coordinate diverse production
skills and integrate multiple streams of
technologies
Also about the organization of work and the
delivery of value
Core competencies
Communication, involvement, and a deep commitment
to working across organizational boundaries
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How to think of competence

• The battle to build world-class competencies
• invisible and usually in the dark
• Never mean outspending rivals on research and
  development.
• Never mean shared costs
• More ambitious and different than integrating
  vertically

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Identifying core competencies
Three tests
Provide potential access to a wide variety of
markets
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Make a significant contribution to the perceived
customer benefits of the end product
2
Be difficult for competitors to imitate
3
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Outsourcing can shortcut a more competitive
product
Surrender core competencies
vulnerable and incapable to sustain product
leadership
Cut internal investment in what they mistakenly
thought were just cost centers
Lose people-embodied skills that give rise to the
next generation of competitive products
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• Having an intelligent alliance or sourcing
  strategy when there is no choice made about where
  it will build competence leadership
• Forgoing opportunities to establish competencies
  that are evolving in existing businesses

• The cost of losing a core competence can be only
  partly calculated in advance.
• Its very difficult to enter an emerging market
  without sufficient invest

Clear lessons
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Core products
Core competencies
End products
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SBU(strategical business unit )
Bounded innovation
Imprisoned resources
Under investment
Only pursue opportunities close at hand but
disregard hybrid ones
No single business may feel responsible or be
able to justify
Hide key people and compete for cash among
boundaries
Decentralization of core competence
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Developing strategic architecture
A broad road map of the future to identify which
core competencies to build and their constituent
technologies according to customer functionality
requirements.
Make resource allocation priorities transparent
to the entire organization
Provide an impetus for learning from alliances
and a focus for internal development efforts
Dramatically reduce the investment needed to
secure future market leadership
Supply a logic for product and market
diversification
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Redeploying to exploit competencies
Top management
Competence carriers
SBU manager
Pool of talent
Identify the key projects
Talk to cusomers
Meet with peers
audit the key people
Visible positive contribution
A strong feeling of community
Overall direction
Recorded Transfers
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Thank you !
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GTE
GE
GEC
Motorola
Thorn
In the 1970s and 1980s,many American and European
companies chose to exit the color television
business, which they regarded as mature. In the
process of ridding , these companies failed to
distinguish between the business and destroying
their video media-based competencies. They not
only got out of the TV business but also closed
the door on a whole stream of future
opportunities reliant on video-based
competencies.