Certified school:

CorecompetenceOriginators: Skinner, Hamel

Vision: Inside - Out

Main case: The company should focus on its own core competenciesand pursue opportunities that best fit with them, offeringpossibility for differentiation and profitability

“As-Is” reference strategy

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Emerging school:

LeverageOriginators: Nalebluff, Branderburger

Vision: Inside - Out

Main case: The company should focus less on capabilities within thefirm and more on best opportunities to achieve competitiveleverage by mobilizing resources outside the firm

“To-Be” reference strategy

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A new concept of enterprise

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Enterprise• a vehicle• for accelerated growth• of distinctive• competencies

=

Accelerated knowledge curve

Clarity

Value

Opportunity

Time

Knowledge

4

To pursue innovation, a virtuous, asynchronous combination of two value-adding threads, with distinct missions, should be powered and exploited

Value

Sustaining Innovation

Inte

res

t

Radical Innovation

Technology-DrivenProducts

Customer-Defined

Solutions

Vertical ThreadThe vertical thread (Development Factory) works as a non-stop flow and controls the functions of product platform planning and of modularization/standardization of components (used either on a stand-alone basis either as parts of more complex systems).

Horizontal Thread

The horizontal thread (Customer Lab) works as an intermittent flow and controls the functions of customer need management and of product/system requirement development

Strategic Aim: Radical Innovation

Strategic Aim: Sustaining Innovation

PV = B –

– C

= M

Value

Benefit

Margin

Cost

Price

Because today’s customer preferences have no inherent predictive value for tomorrow’s markets, it is simply not savvyenough to rely to build future strategies on current customer preferences

Act

React

Here we explore and applynew or unproven technologies...

Here we exploit the valueof customer knowledge to findmore advanced solutions...

“Necessity is the mother of invention”“Invention is the mother of necessity” vs.

2. DevelopmentFactory

1. CustomerLab

The two vital innovation threads

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