In an earlier post, I talked about an online business core competence comes from its ability to convert inputs using efficient coordinated processes into output that create value for customers. Core competencies improve with use. Core competencies are the driving force for new business developments. A competitor can imitate your product, but they should not be able to imitate your core competencies.

Core competence consists of all the learning that has been accumulated in a business. It includes how to coordinate all the skills available in the business in creating diverse income streams. The systems used to organize work to create value are all part of the organizations knowledge database.

Building a solid core competence requires good leadership and a solid team. It will be very hard to build a solid core competence if 100% of your input comes from outsourcing. An outsourced team is great for implementation but an online business looking to grow at a much higher level needs to look at building a solid core team.

Preserving knowledge in an online business

If core competences are the core resources of an online business, then great effort should be made to preserve this knowledge and share with the organization. There are 3 ways knowledge are shared in an online business:

1. Corporate culture
2. Standard of operations and procedures
3. Resource allocation

Corporate culture

Culture is the way of doing things in an organization. Culture starts at the top and is communicated throughout the organization. When a new person is brought into the organization, they are introduced to the corporate culture and with time learn how to do things the corporate way. A well designed consistent corporate culture goes a long way in enhancing the customer experience.

Standard of operations and procedures

While corporate culture affects the way the business team thinks, standards of operations and procedures deals with the way things are done. Standards of operations and procedures are the collections of processes and procedures used to convert inputs into outputs. It is the business way of turning available resources into income.

Resource allocation

Nothing communicates importance more than the amount of resource allocated. Resource allocation is a very solid way of communicating what is important to any business.

In summary, any strategy session should be focused on building core competencies as they are the key to new business development and future growth.