Lecture Seven: Outline

collardsdebonairManagement

Nov 6, 2013 (4 years and 3 days ago)

61 views

1

Lecture Seven: Outline


Knowledge Management



Building Knowledge Management into Strategy



Lee’s Five Stages of Knowledge Maturity (from an
Individual’s Viewpoint)


Davis and Botkin’s Six Elements of Knowledge
Based Businesses



An Understanding of Core Capabilities and Key
Success Factors



Identifying the Bases of Primary Distinctive Capability


The Balanced Scorecard


Strategic Operations: Value Chain Participants and
their Expectations



A Knowledge Management Focus


2

Knowledge Management


Walters (2002) defines Knowledge
management as “the organisational
capability which identifies, locates
(creates or acquires), transfers,
converts and distributes knowledge into
competitive advantage”

3

Knowledge Management (cont’d)


Knowledge management within
strategic operations management
enables an organisation (or combination
of organisations) to make more effective
decisions about how to structure value
-
chain operations to maximise customer
satisfaction

4

Building Knowledge Management
into Strategy


Drew (1999) cites the proceedings of
the Strategic Planning Conference,
showing that out of the ten case studies
reviewed during the conference,
implementing some form of intranet,
knowledge network or community of
practice enabled the companies studied
to achieve their objectives

5

Building Knowledge Management
into Strategy (cont’d)


Drew (1999) shows that the key
components of successful knowledge
management are:


6

Building Knowledge Management
into Strategy (cont’d)


Strategy


7

Building Knowledge Management
into Strategy (cont’d)


Culture


8

Building Knowledge Management
into Strategy (cont’d)


Technology

9

Building Knowledge Management
into Strategy (cont’d)


Organisation; and,



10

Building Knowledge Management
into Strategy (cont’d)


People.


11

Building Knowledge Management
into Strategy (cont’d)


Drew (1999) shows that some features
of knowledge management emphasised
by its advocates are:

12

Building Knowledge Management
into Strategy (cont’d)


Holism and humanism: the priority is to
make better use of human potential
rather than to downsize it;


13

Building Knowledge Management
into Strategy (cont’d)


A concern with growth and new
possibilities by developing new
knowledge;


14

Building Knowledge Management
into Strategy (cont’d)


Support to creative management
practices which result in new
competencies;


15

Building Knowledge Management
into Strategy (cont’d)


Making good use of important
technological developments such as
networks;



16

Building Knowledge Management
into Strategy (cont’d)


Political and social support because
knowledge drives economic growth.

17

Building Knowledge Management
into Strategy (cont’d)

Knowledge Content
Emphasis: knowledge sharing
access and inventory.
Tools: benchmarking,
communities of practice.
Emphasis: knowledge seeking
and creation.
Tools: R & D, market research,
competitive intelligence.
Knowledge Awareness
Emphasis: uncovering hidden or
tacit knowledge.
Tools: knowledge maps, audits,
training, networks.
Emphasis: discovering key risks,
exposures and opportunities.
Tools: creative tension, audits,
dilemmas, complexity science.
Source: Adpated from Drew (1999)

18

Building Knowledge Management
into Strategy (cont’d)


Drew (1999) recommends the following
for the knowledge management, based
on dissertations of the conference
proceedings:


19

Building Knowledge Management
into Strategy (cont’d)


Preparation is everything! Combine
thoughtful analysis with careful
consideration of practical issues.

20

Building Knowledge Management
into Strategy (cont’d)


Avoid philosophising and academic
abstractions.


21

Building Knowledge Management
into Strategy (cont’d)


Avoid developing an integrated
knowledge architecture at first attempt.

22

Building Knowledge Management
into Strategy (cont’d)


Look for better ways of doing things the
organisation is already doing.


23

Building Knowledge Management
into Strategy (cont’d)


Build knowledge networks and
communities of practice around
important problem areas.


24

Building Knowledge Management
into Strategy (cont’d)


Integrate knowledge management with
the firm’s strategy.



25

Building Knowledge Management
into Strategy (cont’d)


Seek the full support of top
management and the board.


26

Building Knowledge Management
into Strategy (cont’d)


Align evaluation and incentive systems
with knowledge systems with
knowledge sharing.


27

Building Knowledge Management
into Strategy (cont’d)


Know your firm’s dominant political
culture and adapt your approach
accordingly.


28

Building Knowledge Management
into Strategy (cont’d)


Quinn (1999) argues that companies
with successful knowledge strategies
follow certain well
-
accepted principles
by:

29

Building Knowledge Management
into Strategy (cont’d)


Concentrating more power than anyone
else on a few capabilities that
customers genuinely care about;


30

Building Knowledge Management
into Strategy (cont’d)


Innovating constantly to ensure that
their performance and value
-
added stay
ahead of competitors;

31

Building Knowledge Management
into Strategy (cont’d)


Developing conscious flexibilities to deal
with changing competitors pressures
and opportunities; and,


32

Building Knowledge Management
into Strategy (cont’d)


Leveraging their resources significantly


33

Davis

and Botkin’s Six Elements of
Knowledge Based Businesses


Davis and Botkin (1994) describe six
elements that they believe a knowledge
-
based business has.


34

Davis

and Botkin’s Six Elements of
Knowledge Based Businesses


The more you use knowledge
-
based
offerings, the smarter they get.

35

Davis

and Botkin’s Six Elements of
Knowledge Based Businesses
(cont’d)


The more you use knowledge
-
based
offerings, the smarter you get

36

Davis

and Botkin’s Six Elements of
Knowledge Based Businesses
(cont’d)


Knowledge
-
based products and
services adjust to changing
circumstances

37

Davis

and Botkin’s Six Elements of
Knowledge Based Businesses
(cont’d)


Knowledge
-
based businesses can
customise their offerings

38

Davis

and Botkin’s Six Elements of
Knowledge Based Businesses
(cont’d)


Knowledge
-
based products and
services have relatively short lifecycles

39

Davis

and Botkin’s Six Elements of
Knowledge Based Businesses
(cont’d)


Knowledge
-
based businesses enable
customers to act in real time

40

An Understanding of Core
Capabilities and Key Success
Factors


Hamel and Prahalad (1994) have
defined a core competence as: “…a
bundle of skills and technologies that
enables a company to provide a
particular benefit to customers”.

41

An Understanding of Core
Capabilities and Key Success
Factors (cont’d)


They suggest that competencies that
are most valuable are those offering a
gateway to a wide variety of potential
product markets

42

Identifying the Bases of
Primary Distinctive
Capability

Reputation
Innovation
Architecture
Distinctive
Capability
A name for high quality in
“intangible” characteristics that
cannot be easily monitored. Enables
contracts to be made on more
favourable terms than otherwise
would be possible.


Brands


Market influence and acceptance


User experience
A distinctive collection of relational
contacts that develop organisational
knowledge, flexibility in response
and information exchange within or
between organisations. This is
achieved by establishing an ethic of
cooperation and establishing
organisational routines.


Internal


External


Networks
New products, processes or styles of
relationship. It includes managerial
and economic innovations as well as
purely technological.


Alternative value propositions


Alternative value creation,
production and delivery
Source: Adapted from Walters (2002)

43

The Balanced Scorecard

The balanced scorecard allows managers to look at the
business from four important perspectives:


A Customer perspective


An internal perspective


A financial perspective


A learning perspective

44

Strategic Operations: Value Chain
Participants and Their Expectations

Source: Walters (2002)

45

A Knowledge
Management
Focus

Knowledge
Management


Product and process
definition


Match relevant
technology with
product requirements


Explore costs;/
benefits of
technology transfer


Develop product-
market response
scenarios


Seek competitive
advantage


Establish clear
intellectual property
rights


Develop joint
learning processes
and learning
networks


Develop operational
networks for project
design and
coordination


Explore mutual
benefits from ‘asset
leverage’


Seek competitive
advantage
Stakeholder
value:
strategy and
mutual
competitive
advantage
Technology
management
Relationship
management
Information
technology
Operations
technology


R &D
coordination


Manage
technology
transfer


Seek
competitive
advantage
Internal
External
Source: Walters (2002)

46

Discussion Questions


How can knowledge management be
used to compete more effectively in a
value delivery system?


What are the costs and benefits of a
knowledge led company?


What are some helpful hints you would
give to a manger in an organisation with
a knowledge management problem?