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Core competency
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==Core competencies and product development== Core competencies are related to a firm's product portfolio via core products. Prahalad and Hamel (1990) defined core competencies as the engines for the development of core products and services. Competencies are the roots of which the corporation grows, like a tree whose fruit are end products.<ref>{{cite journal|last1=Prahalad|first1=C.|last2=Hamel|first2=G.|title=The core competence of the corporation|journal=Harvard Business Review|date=1990|volume=68|pages=79–91}}</ref> Core products contribute "to the competitiveness of a wide range of end products. They are the physical embodiment of core competencies."<ref>Prahalad, C. K., & Hamel, G. (1990). The Core Competence of the Corporation. Harvard Business Review, 68(3), 79-91. p.84</ref> Approaches for identifying product portfolios with respect to core competencies and vice versa have been developed in recent years. One approach for identifying core competencies with respect to a product portfolio has been proposed by Danilovic & Leisner (2007).<ref name="DAN">Danilovic, M., & Leisner, P. (2007). "[http://www.designsociety.org/download-publication/27692/analyzing_core_competence_and_core_products_for_developing_agile_and_adaptable_corporation Analyzing core competence and core products for developing agile and adaptable corporation.]" In Proceedings of the 9th Dependency Structure Matrix (DSM) International Conference, 16–18 October 2007, Munich, Germany.</ref> They use [[design structure matrix|design structure matrices]] for mapping competencies to specific products in the product portfolio. Using their approach, clusters of competencies can be aggregated to core competencies. Bonjour & Micaelli (2010) introduced a similar method for assessing how far a company has achieved its development of core competencies.<ref name="BON">Bonjour, E., & Micaelli, J. P. (2010). "[http://hal.archives-ouvertes.fr/docs/00/49/49/82/PDF/IEEE-TEM-.pdf Design core competence diagnosis: a case from the automotive industry]". Engineering Management, IEEE Transactions on, 57(2), 323-337.</ref> More recently Hein et al. link core competencies to Christensen's concept of [[resource-based view|capabilities]], which is defined as resources, processes, and priorities.<ref>Hein, A.M., Metsker, Y., Sturm, J.C., "[https://www.academia.edu/7591380/Towards_a_Capability_Framework_for_Systems_Architecting_and_Technology_Strategy Towards a Capability Framework for Systems Architecting and Technology Strategy]". Proceedings of the 16th International DSM Conference 2014, Paris, France.</ref><ref>Christensen, C. M., & Kaufman, S. P., 2006. Assessing Your Organization’s Capabilities: Resources, Processes, and Priorities. Burgelman, R. A.; Christensen, C. M.; Wheelwright, S. C. (Eds.), Strategic Management of Technology and Innovation. McGraw Hill, pp.153-163.</ref> Furthermore, they present a method to evaluate different product architectures with respect to their contribution to the development of core competencies.
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