Chapter 7 Align Knowledge Management and Business Strategy

Knowledge Management2 Strategic Visioning Creativity without strategy is called art. Creativity with strategy is called good design.

Chapter 7 Knowledge Management3 Determine the right diagnostic questions to ask. Knowing the right answers.... to the wrong questions.... will not serve KM project. Strategic Visioning

Chapter 7 Knowledge Management4 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.

Chapter 7 Knowledge Management5 Knowledge Transfer & Knowledge Integration

Chapter 7 Knowledge Management6 The two transacting individuals posses certain shared knowledge in order to effectively communicate. – ถ้ามาจากคนละหน่วยงาน จะมีส่วนที่จะแบ่งปันความรู้กัน น้อยมาก Sufficient time is available to engage in such transfer. – ถ้ามีเวลาจำกัดในการพัฒนา KM จะมีปัญหาเกี่ยวกับเวลาใน การสอนงานกันน้อยเกินไป Knowledge that is transferred remains valid by the time a transfer is completed. –Project specific knowledge อาจไม่ได้ใช้อีก ในงานประจำ Knowledge Transfer Vision: General strategy of facilitating learning and exchange.

Chapter 7 Knowledge Management7 Knowledge Integration Promote synthesis of individually held knowledge at the task level. Keep cross-member learning down to bare-minimum level. Vision: Stresses ( เน้น ) rapid application of existing but disconnected knowledge. Knowledge assets are of little value if they cannot be mobilized rapidly.

Chapter 7 Knowledge Management8 Clarity of future ( คาดการณ์ได้ชัดเจน ) Absolute ambiguity ( มืดแปดด้าน ) Real option under uncertainty Vision: When increasing high uncertainty of markets, technologies, and customer desires, the right strategic bets have high payoffs.

Chapter 7 Knowledge Management9 Level of uncertainty Predictable Outcome Discrete Possibilities Range of Outcome Absolute Unpredictability Level 1 Level 2 Level 3 Level 4

Chapter 7 Knowledge Management10 Level 1 : Clarity of future ( คาดการณ์ได้ ชัดเจน ) –SWOT Analysis –SWOT Analysis : Strengths, Weaknesses, Opportunities, and Threats Level of uncertainty Vision: To sustain the company’s strengths, mitigate its weaknesses, avoid threats, and gab opportunities.

Chapter 7 Knowledge Management11 Level 2 : Several outcomes are foreseeable. –SWOT Analysis –SWOT Analysis : Strengths, Weaknesses, Opportunities, and Threats Level of uncertainty Vision: Investments create options that allow their company to change course... to adapt to a different discrete goal if the market condition is demand.

Chapter 7 Knowledge Management12 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) Level of uncertainty Vision: Helping the company move in a general direction within the relative fuzzy range of the outcomes.

Chapter 7 Knowledge Management13 Level of uncertainty 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 ( มืดแปดด้าน ) - Example : Wireless internet (2003) - Consider historically similar patterns

Chapter 7 Knowledge Management14 Strategic Visioning Focus 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.

Chapter 7 Knowledge Management15 The responsiveness quadrahedron ต้องการความหลากหลาย ต้องการความเร็ว similar domains of expertise people come from difference background

Chapter 7 Knowledge Management16 Permutation of business models and technology influence strategic choices operational strategy transformation strategy customer, partners, supplier to arrange

Chapter 7 Knowledge Management17 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

Chapter 7 Knowledge Management18 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

Chapter 7 Knowledge Management19 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.

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Chapter 7 Knowledge Management24 A high-level of strategic knowledge gap analysis

Chapter 7 Knowledge Management25 Knowledge maps to link knowledge to strategy 1. Core Knowledge HW : chip SW : 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)

Chapter 7 Knowledge Management26 Creating a Knowledge Map Knowledge is not static. What is innovative knowledge today will become the core knowledge of tomorrow.

Chapter 7 Knowledge Management27 Create a knowledge map to evaluate corporate knowledge Where are we? Where are they? e.g. Customer support

Chapter 7 Knowledge Management28 Innovate or Imitate Intel Intel : dominance in the microprocessor business Choose adopt innovation Celeron : less the cache memory Celeron : less the cache memory Cyrix (Taiwan): low cost pentium clones AMD : Choose adopt innovation Super 7 year 1999

Chapter 7 Knowledge Management29 Aligning knowledge and business strategy

Chapter 7 Knowledge Management30 The process of articulating the link between business and knowledge strategies evaluate utilizeto investigate

Chapter 7 Knowledge Management31 A recap on strategic alignment

Chapter 7 Knowledge Management32 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?

Chapter 7 Knowledge Management33 Selecting Key Players

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