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Developing capabilities (Capabilities can (Lower costs (Increased…
Developing capabilities
Capabilities can
Lead to competitive advantage
Lower costs
Increased efficiency
Increased speed
Less errors
Stagnant
Be improved
Life cycle
Evolution of learning tasks
Learning
Faster
Adapting
Learn from mistakes
Make less mistakes
Competent
Fastest
Minimal errors
Question process
Influence change
Max capacity
Plateau
New
Slower
Get it wrong
Cause waste
Need support
Life cycle branches
Threat to capability
Retirement
becomes obsolete
Example
Government ban of capability
Chemical processes
Raw materials
Retrenchment
Phased out
Example
Type writers
Mini Disc
Replaced by modern tech
Selection event
Changes capability
Internal
Managerial decisions
External
Demand
Tech
Government Policy
Impact = 6R's
Opportunity for capability
Replicate
Transfer capability
To different field
To different market
To get around selection event
To lower costs
Offshoring manufacturing capabilities
Renew, replicate, re-deploy
Invest new to support capability
Different market replication
Adaptation
Similar markets
RE-combination
Combine two capabiities
IT
Ops processes
Efficiency gains
Increased experience
Increased performance
Incremental change
More efficient processes
Why does experience matter
Turn over
Loss of experience
New staff training
knowledge transfer
Collaborating functions
Perform better
Market share
Bigger
More R&D
More tasks done
More experience gained
GAined quicker
Decreasing returns
Stagnated efficiencies
Entry time
Impact on competitive advantage
Late to market
Less experience
Different from economies of scale
Not related to scale of ops