Computer Competencies
Industry Analysis Core Competencies Computer Industry
Industry Analysis Core Competencies
This paper will identify four critical capabilities computer firms must perform at a minimal level of efficiency and efficacy to compete in today's technologically advanced and competitive society. Second to this, the paper will examine why the defined capabilities are important and lastly what impact lack of ability to perform each function would have on an individual computer firm's solvency and ability to compete in the industry.
Next, the paper will explore four firms and analyze each firm's capability to implement and utilize the capabilities identified in section one, listed in tabular format. Core capabilities are essential to an organization's ability to succeed regardless of their industry. This is especially relevant within the computer industry, as technology continues to change and challenge company's wishing to remain competitive. The simplest way to remain competitive is to identify a company's core capabilities and build on them to ensure success and increasing profits and revenues with time.
Analysis of Core Competencies core competency or capability may be defined as one that is critical to a firm's function or ability to service its internal and external customers. The table below outlines four critical competencies or capabilities computer firms must have to service the public efficiently. For purposes of this paper a computer firm is defined as one that provides technological, it or computer related services and products to the public.
Capabilities Critical for Computer Firm to Perform Why Capability is Relevant to Computer Firm Impact on Computer Firms if Incapable of Performing Function Ability to generate or create new intellectual property and technology innovation that would lead to advances in communications technology and information or knowledge sharing (Gartner, 2007). The future of technology and innovation within the computer industry is changing; without adapting to this change computer firms will not be able to operate efficiently (Gartner, 2007). Technology often becomes outdated within months of creation, thus the capability of a computer firm to keep abreast of technology will directly impact its ability to create additional revenues with time. Without performing this function efficiently, firms will not be able to keep up with the increasing demands placed on them by end users and consumers looking for products capable of delivering maximal performance in minimal time. Organization would also not be able to grow, which may inhibit competitiveness in the industry. Proficient people management capabilities in the form of efficient human resources management is a second core competency necessary for all computer firms (Cappelli & Crocker-Hefter, 1993). As more and more computer firms begin to diversify their employment practices, outsource jobs and work with international partners, it is more critical than ever that companies develop "employment competencies" enabling them to create best practices and a unified approach to organizational management (Cappelli & Crocker-Hefter, 1993). A company lacking competent personnel will not have the ability to connect with consumers or customers effectively, and customers provide the foundation for business success. Because many computer firms have corporate office located around the world and often outsource job functions Internationally, it is vital an organization integrate the people management procedures and strategies within the organization with the operational procedures; if this does not happen, then an organization will not communicate its purpose efficiently or operate competitively in a diverse market. People are the driving force behind innovative thinking and knowledge sharing; any organization lacking in this department will suffer financially. A third core competency is data management (Aung & Heeler, 2001) and service development. This competency is critical for providing internal operations management teams' information they can process in a logical and efficient manner, such that a "perceptual grid" may be developed demonstrating relevant data to the organization and the market it works within (Aung & Heeler, 2001). Data management allows for creation of grid maps, which can be used to facilitate strategic moves in a competitive environment (Aung & Heeler, 2001). These can highlight potential gaps in service and technological development, critical to strategic planning in any industry, including the it or computer industry (Aung & Heeler, 2001). A fourth core competency critical to it and computer a firm is strategic management and measurement through use of a balanced scorecard or other metrics system (Orlov, 2007). Strategic management and measurement serve as the driving force behind innovation and service capability. For all units of an organization to work efficiently they must be able to execute a business strategy through strategic alignment, which is impossible without a metric in place to analyze corporate strategy. An organization incapable of strategic alignment is not able to prove its value to the public, and thus is more likely to lose credibility in a highly competitive marketplace (Orlov, 2007). This may lead to disorganization and inefficient operations, loss of revenues over time and ultimately loss in reputation and service ability.
Phase II Corporate Analysis
Computer Firm Competencies
This section will explore the ability of four major computer firms to carry out the core competencies defined in section 1. These firms include: Microsoft, Cisco, Dassault Systemes S.A. And Microlog Logistics AG. Companies that utilize their core competencies well have a unique competitive advantage within the market, because they are better able to meet the demands of a changing market and a dynamic workforce. Microsoft Corporation is one company often assigned the title of "gold standard" for adhering to each of the core competencies defined in part 1 of this paper (Progent, 2007). Microsoft demonstrates an exemplary team of engineers managed well from a human resources perspective, and consistently provides technological support and works toward innovation as demonstrating by their persistence in providing phone-based network support to all customers and consumers working with them (Progent, 2007).
Cisco is another it and computer leading innovator, demonstrating sophisticated knowledge of new and "emerging technologies" including Voice over IP, consistently working to create systems integration and an infrastructure supporting customers in a way that ensures communication and network compatibility (Progent, 2007). Strategic management is evidenced through their complex infrastructure encouraging safe and efficient network processes according to one partner, Progent technologies.
Dassault Systemes, a computer company located in France reported income exceeding 156 million in fiscal year 2003 (Business Review, 2006). The organization demonstrates a low turn over rate, suggesting their core competencies related to human resources and personnel management are strong. The company is also featured as among one of the "first" to know about technological changes and advances, suggesting the company incorporates use of strategic planning, systems analysis and technology innovation as core competencies. Multiple news alerts suggest the company is successful and key executives work diligently to communicate with others to maintain revenues and a solid working strategy. If the company were to lose this ability to communicate well with others, there is a strong possibility they would lose credibility with major clientele and realize a significant loss in profits. In any company including this one it is critical key executives work with all levels of management and employees to establish a foundation for operational success.
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