When you think of Silicon Valley, what's the first thing that comes to mind? Most likely it's something having to do with computers and the internet. But an intriguing article from today's NY Times reports that managers in the region have a more expansive idea of what they're all about: innovation through technology creation.
Defining the most fundamental aspect of their core competence so broadly has encouraged experienced managers in the Valley to look for opportunities in an entirely different field: alternative energy. From the NY Times article:
In this case, the energy sector is not so distant from other Silicon Valley specialties as it might appear, say those involved in the new wave of start-ups. The same [technology] used to make computer chips converts sunlight into electricity on solar panels, while the [technology] used to make new drugs can be employed to develop better ethanol processing. More broadly, the participants here say their whole approach to building new companies and industries is easily transferable to the energy world.
This isn't so far-fetched. If your core competence enables you to succeed across industry lines, then it really is a core competence — that's a defining feature. Industry-specific knowledge is important, but it's not a foundation for sustainable competitive advantage. However, the ability to apply relevant information across different industries is a powerful asset, and it may well be the key to Silicon Valley's remarkable versatility over the last 40 years.
