KNOWLEDGE MANAGEMENT (KM) Session # 22

Approaches to KM The Economic School The Strategic School Three Schools of Thoughts! The Economic School The Strategic School The Organizational School

Approaches to KM 2.Strategic School: Stock, Flow and Growth Strategy: What type of focus on knowledge is in the organization? Is it…….. Expert-Driven Business OR Experience-Driven Business OR Efficiency-Driven Business !

Approaches to KM Expert-Driven Biz: Competitive edge is achieved through continuous improvisation and innovation. K. workers apply K. to understand, solve and learn and learning from problem solving is important to solve the next and unknown problem of customers. New Problem and New Solution !

Approaches to KM Experience-Driven Biz: Solve large and complicated problems of customers. Problem may be new but can be solved with existing solutions in a specific context. So edge is gained by effective adaptation of existing tools and techniques. Continuous improvement in effectiveness is important. New Problems, Existing Solutions

Approaches to KM Efficiency-Driven Biz: Solve known problems and quality of solution is found in fast and inexpensive application to meet customer needs. Advantage is gained in the ability to make small adjustments in existing goods and services at a low price. Known Problems, Known solutions

Approaches to KM Very few K. based companies are only in one of these businesses! Most are active in more than one type: Most doctors in hospital are mainly in Experience Driven business of solving new problems with known methods BUT sometime they are in Expert-Driven business AND in Engineering Firms, engineers are often in Efficiency Driven business but most of the time also in the experience-based business.

Approaches to KM Knowledge Focus will be different in Expert or Experience or Efficiency Driven businesses! New Learning is important in Expert Driven, Previous K. becomes obsolete! Know-How of new problem solution is important in Experience Driven while knowledge of previous problems becomes obsolete. In Efficiency Driven, all knowledge concerning both problems and solutions is important in an accumulation of K. to improve efficiency. These differences in K. lead to 3 KM Strategies namely, STOCK, FLOW, and GROWTH Strategy

Approaches to KM STOCK Strategy: is focused on collecting and storing all K. in Information bases and made available to K. Workers in K. Networks. You may call this Person-to-K. or Person to Document Strategy.

Approaches to KM FLOW Strategy: is focused on collecting and storing K. in Information bases as long as information is used in k. work process, once not needed in work then info is obsolete and deleted from databases. Yellow-Page Strategy i.e. Who knows what K. area and link is provided to that person so any new k. worker can search him. You may call this Person-to-Person Strategy.

Approaches to KM GROWTH Strategy: is focused on developing new K through innovative work processes when K. workers have to solve new problems with new methods for customers. When a k. worker starts a new project, he will use the intranet or extranet to find info on work processes and learning which other peers have successfully used in previous innovation processes.

Approaches to KM 1. STOCK Strategy is used for Efficiency Driven Business. (Databases and Info Systems) 2. FLOW strategy is used for Experience Driven Business (Information Networks) 3. GROWTH Strategy is used for Expert Driven Businesses (Network of Experts)

Approaches to KM The Economic School The Strategic School Three Schools of Thoughts! The Economic School The Strategic School The Organizational School

Core Competencies Core competencies… Consist of a bundle of abilities and technologies Are integrated in products, processes and in the minds of staff Are the basis of economical success Market competition becomes Competition on Knowledge.

The Value Chain 1985 M. Porter’s book,” Competitive Advantage” presented view point of a value chain for a company! A way of organizing primary and secondary activities of a business, where each provides “value added” actions to the total operation A way of looking at how various knowledge exchange adds value to adjacent activities and to the company in general! Where value is added, there knowledge is created, transferred, or shared

A Knowledge-Based Value Chain Purchase Materials (Inbound Logistics) Outbound Logistics (Storing/Distributing Products) Operations Marketing and Sales Service Supportive Activities Corporate Infrastructure (Planning, Finance, Accounting Legal Services, etc.) Human Resources Technology Development Procurement

PRODUCT / SERVICE PROVIDER Mapping the Value Exchanges Technology Support Personalized Offerings Sense of Community CUSTOMER or END USER PRODUCT / SERVICE PROVIDER Feedback and Usage Data Loyalty Fee for Service Fee for Service Knowledge --------- Goods, Services, Revenue _______ Intangible Value -.-.-.-.