Chapter 7 Align Knowledge Management and Business Strategy.

Chapter 7

Align Knowledge Management and Business Strategy

Chapter 7 Knowledge Management 2

Strategic Visioning

Creativity without strategy is called art.

Creativity with strategy is called good design.


Determine the right diagnostic questions to ask.

Knowing the right answers ....

to the wrong questions....

will not serve KM project.

Strategic Visioning


Strategic Visioning

1. What is the industry context in which your company operate?

2. What is the level and nature of turbulence (disturbed) within it.

3. How profound (obvious) is the uncertainty in your business.


Knowledge Transfer& Knowledge Integration


The two transacting individuals posses certain shared knowledge in order to effectively communicate. – ถ้�ามาจากคนละหน�วยงาน จะม�ส่�วนที่��จะแบ่�งปั�นความรู้� �ก�นน�อยมาก

Sufficient time is available to engage in such transfer.– ถ้�าม�เวลาจ�าก�ดในการู้พั�ฒนา KM จะม�ปั�ญหาเก��ยวก�บ่เวลาในการู้

ส่อนงานก�นน�อยเก$นไปั Knowledge that is transferred remains valid by the time

a transfer is completed.– Project specific knowledge อาจไม�ได�ใช้�อ�ก ในงานปัรู้ะจ�า

Knowledge TransferVision: General strategy of facilitating learning and exchange.


Knowledge Integration

Promote synthesis of individually held knowledge at the task level.

Keep cross-member learning down to bare-minimum level.

Vision: Stresses (เน�น) rapid application of existing but disconnected knowledge .

Knowledge assets are of little value if they cannot be mobilized rapidly.


Clarity of future (คาดการู้ณ์(ได�ช้�ดเจน) Absolute ambiguity (ม)ดแปัดด�าน)

Real option under uncertainty

Vision: When increasing high uncertainty of

markets, technologies, and customer desires, the right strategic bets have high payoffs.


Level of uncertainty

Predictable Outcome

Discrete Possibilities

Range of Outcome

Absolute Unpredictability

Level 1

Level 2

Level 3

Level 4


Level 1 : Clarity of future (คาดการู้ณ์(ได�ช้�ดเจน)– SWOT AnalysisSWOT Analysis : Strengths, Weaknesses,

Opportunities, and Threats


Vision: To sustain the company’s strengths, mitigate its weaknesses,

avoid threats, and gab opportunities.


Level 2 : Several outcomes are foreseeable.– SWOT AnalysisSWOT Analysis : Strengths, Weaknesses,

Opportunities, and Threats


Vision: Investments create options that allow

their company to change course ...to adapt to a different discrete goal if the

market condition is demand.


Level 3 : Range of possible outcomes– Pilot trails, test markets– Ongoing experience is the KEY..– Consider historically similar patterns

• Example : “Internet base business”– AM/FM war– AD/CD electronic standard– Video cassette player standard (VHS and Beta)


Vision: Helping the company move in a general direction within the relative fuzzy range of the outcomes.



Vision: Shaping both the business and the market

in ways that help a company’s offering succeed in high unpredictable markets.

Level 4 : Absolute ambiguity (ม)ดแปัดด�าน)- Example : Wireless internet (2003)- Consider historically similar patterns


Strategic VisioningFocus on their core competencies and tie those in very tightly to the business strategy and vision.

Speed of new product launches.The faster the product is bought to market, the faster the company can recoup its development costs and generate higher profits.


The responsiveness quadrahedron

ต้�องการความหลากหลาย

ต้�องการความเร�วsimilar domains

of expertise

people come from difference background


Permutation of business models and technology influence strategic choices

operational strategy

transformation strategy

customer, partners, supplier

to arrange


Business model and executability

Amazon.com– lacking deep knowledge of individual

customers’ preferences, – uses theirs self-selected navigational

behavior to customized offerings to each individual’s tastes


Codification and Personalization

Codification : (To arrange or systematize) Providing high quality, reliable, fast, and cost effective services. Price based competition IT is a primary enable. Reward employees for using and contributing to DB e.g. Pizza Hut, Dell Computer

See Table 6-1


Codification and Personalization

Personalization : Provide creative and highly customized services and products Expertise-based pricing Use IT for communication and not storage and retrieval Reward employees for directly share their knowledge with colleagues e.g. Private investigator, Boeing

For any KM to be successfully, both approach must be present in the difference weight.


A high-level of strategic knowledge gap analysis


Knowledge maps to link knowledge to strategy

1. Core Knowledge HW : chipSW : graphic design skill

2. Advance Knowledge make your company

competitively viable (capable of success). - user friendly SW (warning online when we have the phone call)

3. Innovative knowledge make your company lead its entire industry- allows a company to change the rules of the game- Apple and Microsoft lawsuit in 1980 (look and feel of its

GUI)


Creating a Knowledge Map

Knowledge is not static. What is innovative knowledge today will

become the core knowledge of tomorrow.


Create a knowledge map to evaluate corporate knowledge

Where are we?

Where are

they?

e.g. Customer support


Innovate or Imitate

Intel Intel : dominance in the microprocessor business

Choose adopt innovation Celeron : Celeron : less the cache memoryless the cache memory

Cyrix (Taiwan): low cost pentium clones

AMD : Choose adopt innovation Super 7 year 1999


Aligning knowledge and business strategy


The process of

articulating the link between business

and knowledge strategies

evaluate

utilize to investigate


A recap on strategic alignment


Assessing (Evaluating) Focus

1. How can we turn Knowledge into something that add value to the markets?

2. How can we generate meaning knowledge?

3. What do we know about the customers?

4. How can we crate knowledge-supportive organization culture.

5. Can we cut cost or reduce time to market, improve customer service, or increase margins?

6. How can we manage people?


Selecting Key Players

เพั�ยงเม)�อที่�านหย*ดก�าว

ที่�านก+เรู้$�มถ้อยหล�งแล�วดรู้.เที่�ยม โช้ค

ว�ฒนา

Chapter 7 Align Knowledge Management and Business Strategy.

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