1. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.1 WELCOME! Chapter 4 STRATEGIC MANAGEMENT PERSPECTIVES

2. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.2 WHAT IS A STRATEGY? Is it a plan? Is it a pattern of consistency in behaviour over time? Is it a position – for a product/service in a market? Is it a perspective – a leader’s vision? Is it a ploy to outwit an opponent or competitor?

3. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.3 WHAT IS A STRATEGY? STRATEGY is a plan of action designed to achieve a long-term or overall aim

4. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.4 WHAT ARE THE OVERALL AIMS OF AN ORGANIZATION? Commercial: To make profits, increase turnover, increase market share, be highly regarded? Not-for-profit: Meet needs of service group within resource constraints?

5. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.5 INTENDED, DELIBERATE, EMERGENT AND REALISED STRATEGIES Intentions that are fully realised can be called deliberate strategies Not realised intentions are unrealized strategies Actions taken, one by one, which converged over time to some sort of consistency or pattern, which were not initially anticipated or intended, can be called emergent strategies

6. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.6 STRATEGY SCHOOLS Hamel & Prahalad Strategy depends on learning and learning depends on capabilities (dynamic capabilities) Core competencies – collective learning of the organisation that leads to competitive advantage Strategic intent – sets direction, defines emerging market opportunities and creates bigger opportunities for employees to excel. Stretch and leverage – stretch is the gap between firm’s resources and aspirations. Need to learn to attain maximum advantage from limited resources by using them efficiently and effectively

7. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.7 STRATEGY SCHOOLS Culture School Strategy formation is a process of social interaction based on culture Barney (1991) – resource-based theory where resources include all tangible and intangible assets Resources are strategic if valuable, rare, difficult to imitate and not substitutable Culture is key resource to prevent imitation

8. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.8 BUZZ GROUP Is KM strategy different to corporate strategy? How does KM strategy relate to other organisational ones such as IT, HRM, finance, marketing etc.?

9. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.9 RESOURCE-BASED VIEW (RBV) OF THE FIRM Resources create competitive advantage Competitive resources are valuable, rare, inimitable (not easily replicated) and not substitutable Competitive resources include top management skills, culture, information systems and HRM

10. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.10 CRITICISMS OF RBV How do you know which resources contribute to competitive advantage in dynamically changing contexts and environments? How do you gain these resources? How can firms compete if they deny the importance of market conditions?

11. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.11 KNOWLEDGE BASED VIEW (KBV) Knowledge is the key resource for competitive advantage Knowledge held in information systems as well as in people’s heads and communities Knowledge sharing is important Primary task to integrate knowledge between people, product and services

12. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.12 INFORMATION SYSTEMS STRATEGY 1960s – IS/IT strategy focused on ‘data processing’ such as EPOS nowadays 1970–1980s – move towards MIS to evaluate business processes, led to large databases! 1990s – move to strategic information systems (SIS) to make organisation competitive (procurement, workflow, CRM, decision making systems, etc.) Recently move towards IS capability

13. Jashapara, Knowledge Management: An Integrated Approach, 2 nd Edition, © Pearson Education Limited 2011 Slide 4.13 KNOWLEDGE STRATEGY Drew (1999) Portfolio model of strategic thinking around knowledge content and awareness What we know we know What we know we don’t know What we don’t know we know What we don’t know we don’t know