Discussion of KM Most-Cited 1-3 by Yan An

Firm Resources and Sustained Competitive Advantage Formal Not rare Valuable Imitable Not a source of sustained competitive advantage informal Rare Valuable Not imitable Is a source of sustained competitive advantage What is formal and informal strategic planning?

5 Components of Formal Planning Process 1.Setting of objectives 2.Generating strategies 3.Evaluating strategies 4.Monitoring the process 5.Commitment to the process

Is Formal Strategic Planning Beneficial for Small Businesses? Researchers draw conflicting conclusions: – Formal is beneficial Provides structure for decision making Create long-term view – Formal is NO potential payoff Heady High-level Conceptual activity suited solely to large firms

Informal Strategic Planning To exchange ideas on how to perform each member’s job better and more effectively Provide professional development training Refine day-to-day organizational operations Generate useful knowledge for decision making Derive sustained competitive advantages

Information Processing Systems and Sustained Competitive Advantage How to let IS become a useful resource? – Process quickly – Share effectively » Codification » Personalization = Tacit Knowledge (What ‘s your strategy for managing knowledge? & The Knowledge-Creating Company) – Avoid eleven deadliest sins of knowledge management

References Effects of formal strategic planniing on financial performance in small firms: a meta- analysis (1993) –by Sharader, Charles B. – Formal and informal mandates—by the Sanford Consulting Group –