WHAT IS A STRATEGY?
A comprehensive master plan stating how the corporation will achieve its mission and objectives. It maximizes competitive advantage and minimizes competitive disadvantage.
Hierarchy of Strategy
Corporate Strategy
Business Strategy
Functional Strategy
Business Strategies
Focuses on improving the competitive position of a companys or business units products or services within the specific industry or market segment that the firm serves.
KNOWLEDGE STRATEGY
Refers to the firms business strategy that takes into account its intellectual resources and capabilities.
Involves the identification of : Knowledge gaps and surpluses Then the management of these gaps and surpluses to enhance organizational performance (Zack, 1999)
Knowledge strategy involved aligning organizational knowledge to a defined business strategy (Jones, 2000)
Strategic Drivers
Growth through share, market strength, distribution external market focus Forging long-term, deep relationships with customers external focus, growing with customer success
Market Growth
Customer Intimacy
Operational Effectiveness
Core Competencies
Imitability of core competencies determined by:
Resource Sustainability
Practices
What processes leverage that know-how?
Collaborative Technology
How do we support this know-how?
Gap Analysis
external
internal
conservative
Exploiter Explorer
Innovator
Source: Michael H. Zack
Knowledge domains
Your company can develop knowledge domains to assist your company in sharing knowledge
Knowledge A
knowledge gap occurs when a problem has been identified, but the knowledge required to solve it is not available build up a knowledge domain, however, you must push for knowledge creation and knowledge transfer in your company
To
Knowledge transfer transfer with external partners is important A typical knowledge transfer goes like this: o Identify the knowledge to be transferred, o Receiver assesses the value of knowledge for local use, and the sender assesses the potential gain or loss o Packaging and distribution of knowledge must occur in such a way as to enhance the receivers potential to act. o Includes adoption, in which the transferred knowledge is integrated with the local knowledge
Leveraging Strategy
Focus: Transferring knowledge throughout the organisation Ensures transfer of existing knowledge through o consolidation of activities o standardisation of tasks o internal benchmarking programme Knowledge can be shared
knowledge workshops
o o o
Two types of learning o technical and process learning Manage risk of overtaxing resources
(von Krogh, et al., 2002).
Innovation
Managing Risks
Innovation Creating new processes and product innovations from existing knowledge domain Managing Developing knowledge domains to reduce Risk the risk of overtaxing resources. Developing knowledge domains to reduce the exposure to the risk of deterioration. Developing knowledge domains on the regulatory and competitive environment
Appropriation Strategy
An externally oriented strategy whereby a unique knowledge domain is developed by transferring knowledge from an external source as the knowledge does not exist in the organisation (von Krogh, et al., 2002).
Aids in achieving operation efficiency
Organizations should develop partnerships Attain innovative goals through a partner Capturing new knowledge External environment Emerging technology developments Decrease the risk of overtaxing resources Competitive environment
Innovation Transferring new knowledge from partners for future innovation. Managing Risk Transferring new knowledge from partners to reduce risk of overtaxing resources. Transferring new knowledge from partners to reduce exposure to risk of deteriorating knowledge domain. Transferring new knowledge on regulatory environment and competitors.
Probing Strategy
Allows teams to develop new knowledge domains. This involves identifying participants and providing them with the responsibility to generate new ideas (von Krogh, et al., 2002).
orequires
identification of participants ointerest in doing something new oloose idea or visions for a future knowledge domain oimperative to the long term performance and survival
Using
new data, insights, models, concepts and technologies processes and tasks in a new light exposure to knowledge deterioration
Business Reduces
obalanced
Innovation Creating new knowledge for radical product and process innovation and better adaptation Managing Risk Reducing exposure to risk of existing knowledge domain deterioration
However, simplistic solutions and "one-size-fits-all" is not the way. This approaches leave executives with little in the way of practical advice about how to transform the entire knowledge-management system. What's more, this fuzziness makes it difficult for executives to see a clear link between their knowledge-management investments and business value. e.g.
Industry Structure: Fragmented Industry Many small and medium-sized local companies compete for small shares of total market Consolidated industry Mature industry dominated by a few large companies Product: Do you offer standardized or customized ? Do you have a mature or innovative products?
framework to help management to associates specific knowledgemanagement strategies with specific challenges that companies face.
Integration Model
Systematic, repeatable work Highly reliant on formal processes, methodologies, or standards Dependent on tight integration across functional boundaries
Collaboration Model
Improvisational work Highly reliant on deep expertise across multiple functions Dependent on ability to build high commitment, fluid/flexible teams
Level of Interdependence
Transaction Model
Routine work Highly reliant on formal rules, procedures and training Dependent on low-discretion workforce or automation, and enforcement of strict rules
Routine
Expert Model
Judgment-oriented work Highly reliant on individual expertise and experience Dependent on star performers characterized by star cultures
Interpretation / Judgment
Individual Actors
Complexity of Work
Orchestrating across functions Creating a common big picture Driving a common big picture Driving toward standard methods based on best practices Balancing functional objectives against the good of the whole
Level of Interdependence
Transaction Model
Consistent, low-cost performance Standardizing the inputs (people), output and processes Creating clear operating guidelines to control behaviors Overcoming low worker morale
Expert Model
Getting results from stars Attracting & motivating stars Decreasing individual learning curves Reducing vulnerability to turnover Overcoming expert tunnel Interpretation / vision
Judgment
Complexity of Work
Integration Model
Integrated processes Integrated teams Best practice benchmarking
Collaboration Model
Strategic framing Knowledge linking Action learning
Level of Interdependence
Transaction Model
Routinization Automation Productization
Expert Model
Experienced hiring Apprenticeships/development Capability protection
Complexity of Work
Interpretation / Judgment
References
Von Krogh, G., Nonaka, I., and Aben, M. (2001). Making the most of your companys knowledge: a strategic framework. Long Range Planning, 34(4), pp. 421-440. Zack, M. (1999), Developing a Knowledge Strategy, California Management Review, 41(3), Spring, pp. 125-145. Hansen, Morten T., Nohria, Nitin, Tierney, Thomas, (1999), Whats your strategy for managing knowledge?, Harvard Business Review, 77(2), March/April, pp.106-116. Haggie, Knox, and Kingston, John, (2003), Choosing your Knowledge Management Strategy, Journal of Knowledge Management Practice, June 2003. Maier, Ronald, and Remus, Ulrich, (2003), Implementing processoriented knowledge management strategies, Journal of Knowledge Management, 7 (4), pp. 62-74 . Bell, H. (2001). Measuring and Managing Knowledge. New York, McGraw-Hill Tiwana, A. (2002). The Knowledge Management Toolkit: Orchestrating IT, Strategy and Knowledge Platforms. New Jersey, Prentice-Hall.