Core competency partnerships

While it is neither possible nor desirable to do away with the examinations, it is important to underplay the competition aspect. This would help address one important core competency of ESD which is about building healthy partnership to work together and in decision making. 

Gradually partnerships were formed between life sciences and fine chemicals industries, the latter having resources to respond to the specific needs in terms of products and technologies. The relationship between life sciences and fine chemicals industries has evolved from a vendor-purchaser approach to a strategic partnership. There has been a much broader sharing of information, be it with respect to cost improvement programs or to commercial outlook for the product(s). Both partners focus their resources on their core competencies. 

The second motivator for partnerships, and a deeper strategic one, is the need to focus on core competencies. That is, We do what we do best partners do the rest. Assumptions about core competency underlie many decisions about partnerships. A decision to perform or not perform an activity or produce or not produce some component of a good or service is a strategic determination. It entails deciding which capabilities to retain and cultivate and finding the right partner to do the things that we will not do. Decisions in this area also affect the type of supply chain needed... 

In their article, Hamel and Prahalad point to the important role of partnerships in nurturing core competencies. They believe partnerships are a relatively inexpensive way to advance a competency. They also decry the tendency of many companies to organize around SBUs (strategic business units) at the business level. SBU measures are immediate, the profits generated from the sale of end products. SBU attention is directed at these end products, or the leaves of the tree. Unfortunately, no single SBU is the custodian of core competencies or core products. The roots or competencies, which should be nurtured across SBU boundaries, can wither for lack of attention. 

The concept of core competency is important to SCM. Traditional views of roles in the supply chain are giving way to new views. Chapter 18 describes the emerging model for supply chain partnerships. The traditional and emerging models reflect the impact of both cost reduction and competence building in the evolution of supply chain partnerships. 

Mental Models. Our strategy and core competence support the partnership with the... 

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