The New Economy liberated competencies from the core. The technologies of Silicon Valley (to take one of the purest examples) belong largely to the community, not to any individual firm. Personal networks, fluid labor markets, and sophisticated venture capital communities transplant much of that knowhow from one firm to another, despite the efforts of every constituent firm to prevent it. But in the New Economy everyone gains from everyone else’s leaky competencies. And it turns out that the gains from all that promiscuity outweigh the dilution of individual paternity.
…Competencies rule more than ever, but no longer are they the definers of corporate shape. Open business models, open standards, technology sharing, strategic partnering, and a massive fluidity of money, people, and ideas render the boundaries of the firm porous to the point of indeterminacy.
Sources: Boston Consulting Group (BCG), Journal of Business Strategy