In a world of rapid disruption, the idea of having a core competency–an intrinsic set of skills required to thrive in certain markets–is an outmoded principle. Apple, Nike, and Netflix have better ideas. Here is a brief excerpt from an article written by Austin Carr for Fast Company magazine in which he contributes to the magazine’s annual guide to the state of innovation in our economy, featuring the businesses whose innovations are having the greatest impacts across their industries and our culture as a whole.

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Known for decades as a shoe company, Nike is undergoing a digital revolution. In recent years, it’s launched everything from apps that are standard issue on the iPhone to wearable devices to web services. But why? Nike CEO Mark Parker laughs at the questions and interrupts: “I think I know where you’re going with this.” He grins and shoots back a quick answer to why Nike’s so willing to transition so far from the thing it’s known for–shoes–to software. “Business models are not meant to be static,” he explains. “In the world we live in today, you have to adapt and change. One of my fears is being this big, slow, constipated, bureaucratic company that’s happy with its success. That will wind up being your death in the end.”

Parker’s thinking goes like this: In a world of rapid disruption, having a core competency–that is, an intrinsic set of skills required to thrive in certain markets–is an outmoded principle of business. Just as Google needed Android to attack mobile and Apple needed Siri to pursue search, thriving businesses need to constantly evolve, either through partnerships, new talent, acquisitions–or all three. Nike, No. 1 on Fast Company’s 2013 list of Most Innovative Companies, proves this idea more than most. Last year, it launched FuelBand, a high-end electronic wristband that tracks your energy output and signaled Nike’s growing strength in the digital realm. “Think about it: Nike is now included in conversations around technology–it’s shifted into an adjacent industry, breaking out of apparel and into tech, data, and services,” says Forrester Research analyst Sarah Rotman Epps. “That strategic shift is incredibly important to Nike’s future.”

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To read the complete article, please click here.

Austin Carr writes about design and technology for Fast Company.