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Management Gurus:Management Gurus:
Hamel and PrahaladHamel and PrahaladTU-91.110 Industrial Business Relations andTU-91.110 Industrial Business Relations and
Netor!sNetor!s
"#.#."00$"#.#."00$Grou% 10 &immo 'aa!!ola and 'ari Ruo!olainenGrou% 10 &immo 'aa!!ola and 'ari Ruo!olainen
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(.&. Prahalad and G. Hamel in(.&. Prahalad and G. Hamel in
a Nutshella Nutshell
) (oim*atore &rishnarao(oim*atore &rishnaraoPrahaladPrahalad+Usuall, ust (.&. Prahalad+Usuall, ust (.&. Prahalad
) /hort %ersonal histor,:/hort %ersonal histor,: o2torate 3rom Har4ardo2torate 3rom Har4ardBusiness /2hoolBusiness /2hool
Pro3essorshi%s inPro3essorshi%s inUni4ersit, o3 Mi2higan5Uni4ersit, o3 Mi2higan5IN/675 and IIMIN/675 and IIM
(o-3ounder o3(o-3ounder o3 PrajaPrajaIn2.5In2.5here he tried his ingshere he tried his ingsas an entre%reneuras an entre%reneur
) Gar, HamelGar, Hamel
) /hort %ersonal/hort %ersonal
histor,:histor,: o2torate 3rom theo2torate 3rom the
Uni4ersit, o3 Mi2higanUni4ersit, o3 Mi2higan
Pro3essorshi% in 8ondonPro3essorshi% in 8ondon/2hool o3 62onomi2s/2hool o3 62onomi2s
ounder and %resident o3ounder and %resident o3StrategosStrategos5 an5 aninternationalinternationalmanagementmanagement2onsultan2,2onsultan2,
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(.&. Prahalad and G. Hamel(.&. Prahalad and G. Hamel
or!ing Togetheror!ing Together
) The to met in 19;; in Mi2higanThe to met in 19;; in Mi2higan Hamel as a student5 (.&. as an asso2iate %ro3essorHamel as a student5 (.&. as an asso2iate %ro3essor
) In mid 19
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(entral @uestions A Ideas(entral @uestions A Ideas
64ol4ing in Their or! +1"64ol4ing in Their or! +1") Strategic ftStrategic ft 4ersus4ersusLeveraging ResourcesLeveraging Resources
the to main strateg, s2hools a22ording to (.&.P A G.Hthe to main strateg, s2hools a22ording to (.&.P A G.H CCMaintaining strategi2 the DtC a%%roa2h:Maintaining strategi2 the DtC a%%roa2h:
)Trimming am*itions to mat2h resour2es5 sear2h o3 sustaina*leTrimming am*itions to mat2h resour2es5 sear2h o3 sustaina*lead4antages5 Dnan2ial goalsad4antages5 Dnan2ial goals
CC8e4araging resour2esC a%%roa2h:8e4araging resour2esC a%%roa2h:) de4elo% resour2es toards am*itions5 em%hasis on learning5de4elo% resour2es toards am*itions5 em%hasis on learning5
de4elo%ing 2ore 2om%eten2ies the a%%roa2h %re3erred *, thede4elo%ing 2ore 2om%eten2ies the a%%roa2h %re3erred *, theauthorsauthors
) IncrementalismsIncrementalisms 4ersus4ersus RevolutionRevolution (.&.PAG.H argue that %la,ing the same game *etter is no a,(.&.PAG.H argue that %la,ing the same game *etter is no a,
to su22ess. Inno4ation and *uilding on 2ore 2om%eten2ies isto su22ess. Inno4ation and *uilding on 2ore 2om%eten2ies isthe !e,Ethe !e,E
) CentralizationCentralization 4ersus4ersusDecentralizationDecentralization The authors 2laim that /BU thin!ing +de2entrali?ation isThe authors 2laim that /BU thin!ing +de2entrali?ation is
3undamentall, against de4elo%ing 2ore 2om%eten2ies3undamentall, against de4elo%ing 2ore 2om%eten2ieseFe2ti4el,eFe2ti4el,
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(entral @uestions A Ideas(entral @uestions A Ideas
64ol4ing in Their or! +""64ol4ing in Their or! +""
)The im%ortan2e o3 CThe im%ortan2e o3 Cstrategic architecturestrategic architectureCC to%-le4el strateg, 3or de4elo%ing ne 2oreto%-le4el strateg, 3or de4elo%ing ne 2ore
2om%eten2ies5 ne 3un2tions5 or e4ol4ing the eisting2om%eten2ies5 ne 3un2tions5 or e4ol4ing the eisting
2om%eten2ies2om%eten2ies Hea4, 3uture-orientation5 though a2tions need toHea4, 3uture-orientation5 though a2tions need to
start noEstart noE
) Core CompetenciesCore Competencies are the !e, to e4er,thingare the !e, to e4er,thing
(lari3,ing the 2ore 2om%eten2ies5 *uilding on them5(lari3,ing the 2ore 2om%eten2ies5 *uilding on them5
and C2ulti4atingC a 2ulture o3 2ore 2om%eten2iesand C2ulti4atingC a 2ulture o3 2ore 2om%eten2ies
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(ritiue toards (.&. Prahalad(ritiue toards (.&. Prahalad
and G. Hameland G. Hamel) 6m%iri2al e4iden2e shos that Cleading the6m%iri2al e4iden2e shos that Cleading the
re4olutionC5 or de4elo%ing the 2orere4olutionC5 or de4elo%ing the 2ore2om%eten2ies Drst5 does not ne2essaril, lead2om%eten2ies Drst5 does not ne2essaril, leadto su22essto su22ess
(om%etition 2an *uild 2om%eten2ies later and 4ia(om%etition 2an *uild 2om%eten2ies later and 4iain2remental inno4ation in the gamein2remental inno4ation in the game
) HamelAPrahalad are not 2lear5 or e4en %resentHamelAPrahalad are not 2lear5 or e4en %resent2ontrading 4ies5 a*out the role o3 to%2ontrading 4ies5 a*out the role o3 to%managementmanagement
22asional em%hasis on *ottom-u%5 emergent22asional em%hasis on *ottom-u%5 emergent4ies5 e4en or! %la2e demo2ra2,5 *ut at the same4ies5 e4en or! %la2e demo2ra2,5 *ut at the sametime hea4, relian2e on to% management 4isiontime hea4, relian2e on to% management 4ision
) Is Cstrategi2 ar2hite2tureC ust a ne name 3orIs Cstrategi2 ar2hite2tureC ust a ne name 3orCstrategi2 %lanCJCstrategi2 %lanCJ
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(.&.Prahalad and G.Hamel and(.&.Prahalad and G.Hamel and
Industrial Business Netor!sIndustrial Business Netor!s) (om%eten2ies rea2h o4er 2om%an, *ounders(om%eten2ies rea2h o4er 2om%an, *ounders) CollaborationCollaborationin intera2tion among thein intera2tion among the
2om%anies is em%hasi?ed2om%anies is em%hasi?ed es%e2iall, 3rom the learning %ers%e2ti4e5 on *uildinges%e2iall, 3rom the learning %ers%e2ti4e5 on *uilding
2ore 2om%eten2ies2ore 2om%eten2ies
em%hasis on learning on loer le4el o3 intera2tionem%hasis on learning on loer le4el o3 intera2tion+indi4idual a%%ro2h5 not to%-management+indi4idual a%%ro2h5 not to%-management
) Netor! a%%roa2h5 *oth internall, and *eteenNetor! a%%roa2h5 *oth internall, and *eteen2om%anies2om%anies CC..e2ellen2e is a 2om%le e* o3 ... integration ith..e2ellen2e is a 2om%le e* o3 ... integration ith
su%%liers5 4alue engineering ... It is diK2ult to e2tra2tsu%%liers5 4alue engineering ... It is diK2ult to e2tra2tsu2h a su*tle 2om%eten2e ... *ut in a %ie2emeal 3ashionCsu2h a su*tle 2om%eten2e ... *ut in a %ie2emeal 3ashionC
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(on2luding A /ummari?ing the(on2luding A /ummari?ing the
PresentationPresentation
) (.&. Prahalad and G. Hamel5 inLuential(.&. Prahalad and G. Hamel5 inLuentialthin!ers in the Deld o3 strateg, in 1990=sthin!ers in the Deld o3 strateg, in 1990=s
) Main 2ontri*utions to the dis2i%line:Main 2ontri*utions to the dis2i%line: The de4elo%ment o3 the 2on2e%t o3The de4elo%ment o3 the 2on2e%t o3 corecore
competencycompetency
) Both ithin the 2or%oration and in a netor! o3 DrmsBoth ithin the 2or%oration and in a netor! o3 Drms
The em%hasis on long-term strategi2 ar2hite2tureThe em%hasis on long-term strategi2 ar2hite2ture
%%osition to short term 2ost-2utting and%%osition to short term 2ost-2utting and
in2remental *usiness de4elo%mentin2remental *usiness de4elo%ment