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/

Innovation Management and Brainstorming Management ? why people hate to brainstorm!

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

What Your Employees Want You to Know (But You Might Be Afraid to Ask)

This is a challenge for every company owner and manager.... Read More

Disaster Prevention Tips For Hiring A New Manager

It happens over and over in businesses every day.Within large... Read More

Change or Die! To Change Your Organization, Hire a Business Coach

It is a common business axiom ? change or die.... Read More

Ten Business Reasons Why Asking for Help Works

In fact, bringing your people - any of them -... Read More

The Death Spiral

Sometimes things just happen. Maybe we lose focus and take... Read More

Building A Stellar Business One Employee At A Time

Top businesses that continually lead their industry clearly understand a... Read More

Effective Email Communication

Email, when used properly, can generate additional direct sales and... Read More

Tales from the Corporate Frontlines: Training is in the Eye of the Beholder

This article relates to the Training competency, commonly evaluated in... Read More

How to Create Trust

People buy from you, offer help, and grant rewards based... Read More

How to Attract and Retain the Right People

If you're one of the many executives struggling with finding... Read More

Effective Meetings Begin With a Real Agenda

Everyone knows that an agenda is the key to an... Read More

Knowledge Management - Leadership Behaviours Which Encourage Knowledge-Sharing

The concept of knowledge management or knowledge sharing makes intellectual... Read More

Hire Winners: Avoid These 10 Interview No-No?s

Have you ever hired someone who did not live up... Read More

10 Ways To Maintain Profits In A Slow Economy

1. Sell more back end products to your existing customer... Read More

Resolve Differences

Resolving conflict doesn't come easily to too many people. Most... Read More

3 Simple Things the Best Managers Do - And You Can Too!

If it's so simple, why don't managers all over the... Read More

Challenge of ERP Implementation: Q and A with Rick Maurer

Question: ERPs seem like a good idea, so why is... Read More

CEOs And Boards Are Locked In A Spiral Of Doom

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

He Hate Me: Turning Their Bad Attitude Into Your Great Results

"He Hate Me" was the nickname of Rod Smart, a... Read More

Learn How To Get The Most From Your Team

Being a leader isn't easy. Every one looks to you... Read More

CEOs Role in Family Business

I first met Roland (not his real name) in 1972.... Read More

Why Training Fails

Sometimes when I conduct my workshop on Effective Meetings, one... Read More

Eight Key Steps to Building B2B Major Account Client Alliances

Audiences who saw the fabled Broadway musical, Chorus Line, marveled... Read More

Why Employees Are the Best Source of Cost-cutting Ideas

Cost cutting has become a necessary and important reality in... Read More