All top executives seek a deep understanding of enterprise growth and development. As a result, Professor Teece has developed the “Dynamic Capabilities” conceptual framework to help executives lead their organizations in highly competitive global markets.
This truly unique framework, offers a comprehensive, multidisciplinary approach to managerial decision-making. No other framework offers, or purports to offer, a comprehensive and multidisciplinary, research-based perspective on key strategic and innovation challenges. The Dynamic Capabilities Framework helps identify the factors likely to impact enterprise performance. As such, it is gradually developing into a (interdisciplinary) theory of the modern corporation. The Framework helps organize and harness disciplinary knowledge so as to apply it to the task of building durable competitive advantage at the enterprise level.
In an increasingly competitive global economy, there is an enhanced need for the businesses to develop and maintain asset alignment capabilities that enable collaborating businesses to develop and deliver a joint “solution” to customer needs.
Dynamic capabilities can be usefully disaggregated into three clusters of activities and adjustments: (1) identification and assessment of an opportunity (sensing); (2) mobilization of resources to address an opportunity and to capture value from doing so (seizing); and (3) continued transformation and renewal (“shifting”). These activities are required if the business is to sustain itself as markets and technologies change.
Sensing is an inherently entrepreneurial set of capabilities that involves exploring technological opportunities, probing markets, and listening to customers, along with scanning the other elements of the business ecosystem. It requires management to build and “test” hypothesis about market and technological evolution, including the recognition of “latent” demand. Sensing requires managerial insight and vision – or an analytical process that can be a proxy for it.
Seizing capabilities include designing business models to satisfy customers while capturing value from them. They also include securing access to capital and the necessary human resources. Employee motivation is vital. Good incentive design is a necessary but not sufficient condition for superior performance in this area. Strong relationships must also be forged externally with suppliers, complementors, and customers.
This session represents the cornerstone of the SVIBI experience and will prove to be a key component to the participants innovation roadmap.