We build on the insights of the dynamic-capabilities school of business strategy by extending it especially across enterprise boundaries The relative pace of capability building matters most. Companies that embrace their edges will develop their own capabilities much faster than those that simply defend and extend their core operations and core markets.
Looking at the edges, at the competition, at the way things are changing around you, can help focus the innovation effort. While your core competencies are crucial, evolving these competencies in the context of your changing market and with the help of partners is key to sustainability.
One of the biggest challenges that executives face is to know when and how to leap in capability innovation and when to move rapidly along a more incremental path.
This can be very relevant to technology; in some cases it may makes sense to replicate a system that is proven to give value at a fixed cost. Replicate the entire process if it works for someone else, partner to share the maintenanceand increase buying power.
It builds on the insight widely attributed to Bill Joy, one of the founders of Sun Microsystems, that "there are always more smart people outside your company than within it". When these smart people have a working solution that they are willing to share, it makes sense to put it to work for you!
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