Dynamic capabilities are the different skills, processes, procedures, organizational structures, decision rules and disciplines that allow the detection and capture of opportunities that appear in a company. This is the academic definition. Hope you understand it. If not, keep reading please.
Dynamic capabilities enable companies to create, deploy, and protect intangible assets that, in the long term, will enable superior business performance. Hence, it is important to detect in your company what these capabilities are and that you promote them. Firms with strong dynamic capabilities are much more entrepreneurial and better adapted to changes in the market.
When we try to understand what a business model is and use the Osterwalder definition, we say that a business is a system by which, with some resources, we are able to create value for a market segment and then we are able to collect that value in a proper way. monetary. Well, within these resources is where the dynamic capabilities lie.
But they are not the only ones…
Why do we call them dynamic capabilities?
Well, as opposed to non-dynamic capacities. The dynamics allow to change, to evolve the company. The rest of a company's capabilities allow it to operate normally, and obviously they are just as important as the dynamics. It's just that having dynamic capabilities in fast-moving environments like today has become a competitive advantage. Hence we are now talking about this ability.
Types of dynamic capacity
There are three types of dynamic capacity:
- The ability to know how to detect opportunities and threats.
- The ability to know how to take advantage of opportunities.
- The ability to maintain, combine and grow the tangible and intangible assets of our company.
Among the latter is what is my doctorate study: the ability to adapt a business model when this is necessary. My research question is “If everyone knows that when the market changes, companies have to change too. Why are there companies that don't change and die? "
Obviously the answers are many and not all are the field of the "management”Some of them are explained from the point of view of people's psychological behavior (risk aversion, fear of change, fear of failure, etc.). In my case, for the moment I limit myself to analyzing them from a business point of view and returning to dynamic capabilities, I am focusing on the capacity of “Business Model Adaptation”, that is, the ability to change and adapt the business model of a company to adapt to changes in its environment.
At the moment in which we live with Amazon and Alibaba unfolding around the world, in which the Earth is flat and the market is almost infinite, and in which all information can be digitized, it seems essential to me that someone help companies to adapt, instead of "selling smoke" and trying to make companies disruptive and that they are the ones who, thanks to innovation, break and transform markets. It seems unrealistic to me that the SMEs of our country are going to be able to survive being disruptive… it seems more accurate to help them develop the capacity to adapt.
Well, I'm not going any further. This article was only intended to explain a little better what dynamic capabilities are (Dynamic capabilities), and that this reflection will help you to think about which are those of your company or those of your person. Are you able to detect opportunities and threats? (or put another way, do you have time to detect opportunities and threats?) and are you able to recombine your company's resources to take advantage of those opportunities?
I hope I have gotten the reflection.
You will find more information on dynamic capabilities here. It is a closed article by the best specialist in dynamic capabilities. Just by reading the abstract it will be useful to you. If you have a way to get the entire item, you'll love it.
If you want to know more about business models, there are two articles of mine that can help you:
- On the difference between strategy and business model
- Whether or not they have changed the types of business model
Let's keep talking
Specialist Digital Marketing Strategy and Digitization Process. I help businesses and territories to develop thanks to the use of Internet in their business strategies.
Impart conferences, training and consulting for over 20 years. Program Director of the Degree of Entrepreneurship Digital (Digital Business) La Salle - URL.
My digital DNA comes from Intercom (creators of Infojobs, Softonic, eMagister, Solostocks, among other companies). I created my first website in 1994 and started my first online business in 1998.
I am at your disposal for whatever you need. Let's talk.