lu5 - strategies of managing knowledge

8/6/2019 LU5 - Strategies of Managing Knowledge

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Learning Unit 5

Strategies of Managing Knowledge

(Week 3)


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A comprehensive master plan stating

how the corporation will achieve itsmission and objectives. It maximizes

competitive advantage and

minimizes competitive disadvantage.

WHAT IS A STRATEGY?


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Strategy Development Routes


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Hierarchy of Strategy

Corporate Strategy

Business

Strategy

Functional

Strategy


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The Knowledge Strategy Development

What is it?

it identifies opportunities for improving

organizational performance through betterknowledge management. It starts with areview of current business strategies, assessesthe best knowledge levers to exploit, andreviews current KM performance, capabilitiesand potential.


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Seven Knowledge Levers

CustomerKnowledge

Developing deep knowledge sharing relationships. Understandingthe needs of your customers' customers. Articulating unmet needs.Identifying new opportunities.

StakeholderRelationship

Improving knowledge flows between suppliers, employees,shareholders, community etc. using this knowledge to inform keystrategies.

BusinessEnvironmentInsights

Systematic environmental scanning, including political, economic,technology, social and environmental trends. Competitor analysis.Market intelligence systems.

Organizational

Memory

Knowledge sharing. Best practice databases. Directories of

expertise. Online documents, procedures and discussion forums.Intranets.

KnowledgeProcesses

Embedding knowledge into business processes and managementdecision making

Knowledge inProducts andservices

Knowledge embedded in products. Surround products withknowledge e.g. in user guides, and enhanced knowledge-intensiveservices

Knowledge inPeople

Knowledge sharing fairs. Innovation workshops. Expert and learningnetworks. Communities of knowledge practice.


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KNOWLEDGE STRATEGY

Refers to the firms business strategy that takes

into account its intellectual resources and

capabilities.Involves the identification of :Knowledge gaps and surplusesThen 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)


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Strategic Drivers

MarketGrowth

OperationalEffectiveness

CustomerIntimacy

Growth through share,

market strength,

distribution external

market focus

Forging long-term, deep

relationships with

customers external

focus, growing with

customer success

Profit through productivity

and cost control internal

development focus

Traditional KM driver,but should not be the only one!


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What drives Knowledge Strategy

Business Strategy

What knowledge does it take to compete?

What are your critical knowledge gaps?

Product Innovation

Can you design breakthrough products?Spark innovation through a participatory culture?

Organizational Complexity

How can you adapt to speed & information overload?

Build a quick-learning organization?

Customers and Markets

Profound customer understanding

Radically improved time to market

Knowledge leverage in the marketplace


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Resource Sustainability


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Corporate Value Chain


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Four Enabling Dimensions

What do we know and where is it ?

How do we participatewith this know-how?

How do we support this know-how?

What processes leveragethat know-how?

Collaborative

Technology

Practices

Knowledge

Resources

Culture and

Learning


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A strategic Framework for Mapping Knowledge


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Gap Analysis


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Exploration vs. Exploitation

Internal vs. External Knowledge

Aggressive vs. Conservative

A Knowledge Strategy Framework

Source: Michael H. Zack


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Exploration vs. Exploitation

operating on a lower knowledge level than required: internalknowledge gap

-compare the own to the higher knowledge of the competitors:

external knowledge gapresult: The organinzation is an explorer- a creator oracquirer of the knowledge required

-knowledge resources and capabilities exceed significantly therequirements of a competitive position

result: The organization's requirement is to be a knowledgeexploiter



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Internal vs. External Knowledge

-knowledge generated within the firm is especiallyvaluable because it tends to be unique, specific,and tacitly held

difficult for competitors to imitate

-Knowledge from outside can provide for freshthinking and a context for benchmarking internal

knowledge

more abstract, more costly to obtain, morewidely available to competitors



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Aggressive vs. Conservative

-conservative: exploiting internal knowledge

-aggressive: unbounded innovators (knowledge-intensive industries)

unbounded

external

internal

Exploiter Explorer Innovator

aggressive

conservative



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Knowledge domains

Your company can develop

knowledgedomains to

assist your company insharing knowledge

What is a knowledgedomain?


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Knowledge gaps are often identified

A knowledge gap occurs when a problemhas been identified, but the knowledgerequired to solve it is not available

To build up a knowledge domain, however,you must push for knowledgecreationand knowledge transfer in yourcompany


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Transfer

Knowledge creation enhances thepotential of creating innovations

Processes typically take place in steps in

groups of a limited size:

ojointly experiencing new work processes

o make their collective experiences explicit

o subject becomes available to scrutinyo transformed into a prototype process

o to integrate the newly created knowledgein existing processes


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Knowledge transfer transfer with externalpartners 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 orloss

o Packaging and distribution of knowledge mustoccur in such a way as to enhance the receiverspotential to act.

o Includes adoption, in which the transferred

knowledge is integrated with the local knowledge


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Four Knowledge Strategies


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Leveraging Strategy

Focus: Transferring knowledge throughout the organisation

Ensures transfer of existing knowledge througho consolidation of activitieso standardisation of taskso internal benchmarking programme

Knowledge can be shared knowledge workshopso trust between participantso creativity and entrepreneurshipo reduction of repetitive mistakes

Two types of learningo technical and process learning

Manage risk of overtaxing resources(von Krogh, et al., 2002).


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The leveraging strategy impacts on strategic goals

Efficiency Share Knowledge in the organisation,e.g. on manufacturing, productdevelopment, marketing, sales.

Innovation Share knowledge between domains toimprove innovation processes.

Managing

Risks

Share knowledge to reduce risk of

overtaxing resources.Share knowledge on competitors andregulatory environment


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The Expansion Strategy

The expansion strategy targets knowledgecreation by focusing on existing data,information and knowledge. The emphasis here

is placed on increasing the scope and depth ofknowledge by refining what is known and bybringing in additional expertise relevant forknowledge creation (von Krogh, et al., 2002).

Better understanding of key processes

Identification of knowledge gaps


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How the expansion strategy impacts on

strategic goals

Efficiency Expanding on knowledge related toexisting processes.

Innovation Creating new processes and product

innovations from existing knowledgedomain

ManagingRisk

Developing knowledge domains to reducethe risk of overtaxing resources.

Developing knowledge domains to reducethe exposure to the risk of deterioration.Developing knowledge domains on theregulatory and competitive environment


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An externally oriented strategy whereby a uniqueknowledge domain is developed by transferringknowledge from an external source as the knowledgedoes 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

Appropriation Strategy


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Allows teams to develop new knowledge domains.This involves identifying participants and providingthem with the responsibility to generate new ideas(von Krogh, et al., 2002).

orequires identification of participantsointerest in doing something newoloose idea or visions for a future knowledge domainoimperative to the long term performance and survival

Using new data, insights, models, concepts and technologies

Business processes and tasks in a new light

Reduces exposure to knowledge deteriorationobalanced portfolioo

enabling the company to act on current business opportunities

Probing Strategy


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How the probing strategy impacts on

strategic goals

Efficiency Creating new knowledge that can improvebusiness process

Innovation Creating new knowledge for radicalproduct and process innovation and betteradaptation

ManagingRisk

Reducing exposure to risk of existingknowledge domain deterioration


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However, simplistic solutions and "one-size-fits-all" is not the way. This

approaches leave executives with little in the way of practical adviceabout 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 industryMature industry dominated by a few large companies

Product:

Do you offer standardized or customized ?

Do you have a mature or innovative products?


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Knowledge Management Framework

A framework to help management

to associates specific knowledge-

management strategies withspecific challenges that companies

face.


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Knowledge Management Framework: Work Models

Transaction Model Expert Model

Integration Model Collaboration Model

Systematic, repeatable work

Highly reliant on formalprocesses, methodologies, orstandards

Dependent on tight integrationacross functional boundaries

Routine work

Highly reliant on formal rules,procedures and training

Dependent on low-discretionworkforce or automation, andenforcement ofstrict rules

Improvisational work

Highly reliant on deep expertiseacross multiple functions

Dependent on ability to buildhigh commitment, fluid/flexibleteams

Judgment-orientedwork

Highly reliant on individualexpertise and experience

Dependent on star performers -characterized by star cultures

RoutineInterpretation /

JudgmentComplexity of Work

Levelof

Interdependen

ce

Collaboration

Individual Actors

Knowledge workers

*A one size fits all approach to developing a knowledge management system will not work


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Knowledge Management Framework: Challenges

Transaction ModelConsistent, low-cost performance

Expert ModelGetting results from stars

Integration Model

Orchestrating across functions

Collaboration Model

Achieving breakthrough innovationCreating a common big picture

Driving a common big picture

Driving toward standard methodsbased on best practices

Balancing functional objectivesagainst the good of the whole

Standardizing the inputs(people), output and processes

Creating clear operatingguidelines to control behaviors

Overcoming low worker morale

Learning through trial and error

Knowledge linking across complex

disciplines

Sense making & decision-makingunder extreme uncertainty

Attracting & motivating stars

Decreasing individual learningcurves

Reducing vulnerability toturnover

Overcoming expert tunnel

visionRoutineInterpretation /


Levelof

Interdependen

ce

Collaboration

Individual Actors

*The barriers to success will vary with each model


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Knowledge Management Framework: Strategies

Transaction Model Expert Model

Integration Model Collaboration Model

Integrated processes

Integrated teams

Best practice benchmarking

RoutinizationAutomation

Productization

Strategic framing

Knowledge linking

Action learning

Experienced hiringApprenticeships/development

Capability protection

RoutineInterpretation /


Levelof

Interdependen

ce

Collaboration

Individual Actors

Knowledge workers

*Each model suggests specific strategies to follow to help achieve success


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References

Von Krogh, G., Nonaka, I., and Aben, M. (2001). Making the most ofyour companys knowledge: a strategic framework. Long RangePlanning, 34(4), pp. 421-440.

Zack, M. (1999), Developing a Knowledge Strategy, CaliforniaManagement Review, 41(3), Spring, pp. 125-145.

Hansen, Morten T., Nohria, Nitin, Tierney, Thomas, (1999), Whatsyour strategy for managing knowledge?, Harvard Business Review,77(2), March/April, pp.106-116.

Haggie, Knox, and Kingston, John, (2003), Choosing your KnowledgeManagement Strategy,Journal of Knowledge ManagementPractice, June 2003.

Maier, Ronald, and Remus, Ulrich, (2003), Implementing process-oriented knowledge management strategies, Journal of KnowledgeManagement, 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.

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