Does too much focus on core competence leads to slow decadence...

I came across a very interesting intreview od Richard Ruemelt (strategy's strategist - http://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/Strategys_strategist_An_interview_with_Richard_Rumelt_2039_abstract) on how misconceived the strategy plans of organizations are. According to the interview they are nothing but a 3-5 year rolling plan focussing on market share, lobbying for resource allocations and financial projections. Seldom does on see a concrete actionable to handle a changed scenario in the environment, innovation or tapping into a unmet customer value in an industry that could lead to incremental revenue for an organization.

Interestingly he also beleives that organizations by focussing on their core competence discussion during strategy plan often miss innovation opportunities that would sustain the organization on the long run. The only thing that eventually sustains such large organization is their captive customers, and the strong networks in the business ecosystem preemting the entry of innovative/entrapreneurial company for a short-run, and eventually yielding to them. This is not new if one reads Clayton Christiansens "Innovators Dilemma". One can see this more prominently in the Telecom space. Imagine Telecom organizations leapfrogging to 4G without going through the arduous 3G journey....To do this one need to consider the followng challenges:

1. Will the regulators allow?
2. Will the Communication technology vendors right-price the 4G technologies foregoing their massive investments in 3G technologies (EDGE, UMTS...etc.) leading to its quicker adoption
3. Will the consumre electronics companies (read the handset providers) mass produce their handsets @ reasonable price to consumers to facilitate its adoption (ofcourse foregoing huge investments in the 3G network)?

All the above needs to be seen....Atleast, some of my neighbours in my apartment and my collegues at work do not think 4G really has any scope unless one passes through the drudgery/decadence of 3G...Blame it all on core competence....

What do you think?