C. K.

Prahalad
C.K. Prahalad is professor of corporate
strategy and international business at the University of Michigan.

C.K. Prahalad & Gary Hamel

Helsinki University of Technology TU-91.110 IBRN, Fall 2003

2001 top-10 worldwide management

thinker (Financial Times, UK Observer and Business Week)

Essay on 'core competence' is the

Harvard Business Review's most reprinted article ever. Honeywell, ICL, Philips, TRW, Quantum, NCR, and Oracle

AT&T, Cargill, Eastman Kodak,

Gustafsson, Gylling, Nikkanen, Vanhanen

Source: http://www.namasthenri.com/nrioftheweek/prahalad.htm

Gary Hamel
Visiting Professor of Strategic and
International Management at the London Business School, Chairman of Strategos, and Director of the Woodside Institute.

The Core Competence of a Corporation

Management needs to create an organization producing
irresistible functionality or products that customers need but cannot yet imagine.

Concepts : core competence,

Portfolio of competences instead of a portfolio of

businesses

strategic intent, industry foresight, and industry revolution

The worlds reigning strategy
guru (The Economist)

Worked with e.g. Shell, Nokia, CGU,

Ford

Long run: competitiveness derives from an ability to build

The most influential thinker on

the core competencies at lower cost and faster than competitors.

Created rule-breaking strategies that

have generated billions of dollars in new wealth.
Source: http://www.garyhamel.com/

strategy in the Western world. (Professor Peter Senge of MIT)

The Core Competence of a Corporation

Business Units End Products

The Core Competence of a Corporation

Communication, involvement and deep commitment to working across organizational boundaries. Involves many levels of people and all functions. Does not diminish with use

Corporation

Core Products

Core Competence.

Identifying Core Competencies 1. Provides potential access to a variety of markets. 2. Makes a significant contribution to customer benefits of the end product 3. Is difficult to imitate.

provides nourishment, sustenance and stability

The Core Competence of a Corporation

Core competencies core products E.g. Sony, Honda, Nokia end products

Core Competence & Industrial Business Relationships and Networks

Internal networks: Ability to manage, support and enhance competencies & people closely connected to the core competence. Alliances & Networking : Ability and possibility to absorb each others core competencies, connect the core competencies for entering new innovative markets etc. Outsourcing : Knowing what to outsource and what not to.

Maintain world manufacturing dominance in core products and you reserve the power to shape the evolution of the end products.

Leading and managing competencies instead of SBUs Managers should follow competitors networks, alliances and outsourcing.

Further publications
Books:
Competing for the Future , Prahalad C.K. and Hamel G., Boston, MA Harvard Competence-based competition, Hamel G. and Heene A., Chichester Wiley 1994 Leading the revolution, Hamel G., Boston, MA Harvard Business School Press
2000 . Business School Press 1994.

Thank You for Your Attention !

Questions?

Award winning articles:

Review McKinsey Prize.

"The Core Competence of the Corporation, Prahalad C.K. and Hamel G., (1990) "Strategic Intent, Prahalad C.K. and Hamel G., (1989) received Harvard Business "The Role of Core Competencies in the Corporation" (1993), Prahalad C.K.,
received the 1994 Maurice Holland Award as the Best Paper published in Research Technology Management in 1993. Prahalad C.K., won the European Foundation for Management Award in 1993. received Harvard Business Review McKinsey Prize.

"A Strategy for Growth:, The Role of Core Competence in the Corporation,