17.1. An Organizational Capabilities Framework

Three classes of factors affect what an organization can and cannot do: its resources, its processes, and its values. When asking what sorts of innovations their organizations are and are not likely to be able to implement successfully, managers can learn a lot about capabilities by disaggregating their answers into these three categories.

17.1.1. Resources

Resources are the most visible of the factors that contribute to what an organization can and cannot do. Resources include people, equipment, technology, product designs, brands, information, cash, and relationships with suppliers, distributors, and customers. Resources are usually things, or assets—they can be hired and fired, bought and sold, depreciated or enhanced.