ABSTRACT
This chapter introduces the concept of systems capabilities and values which "emerge" only after the system is assembled and operating. By definition, emergent system capabilities do not exist alone in any of the separate elements. Three emergent capabilities will be presented in some detail: quality, knowledge, and core competency. Knowledge, and especially new knowledge, is shown to be a new kind of value, one with very different properties. Unlike other forms of wealth, it is very difficult to measure or contain. Core competencies are far more than facilities. Recent trends and actions by companies facing radical change have considerably diminished that dedication and loyalty at the risk of the core competency being far less than what might have been expected. Consequently, organizations may be over-estimating the value of their core competency in times of radical change.
