Topic 7 - uob-community at the University of Ballarat

plantcityorangeManagement

Nov 6, 2013 (3 years and 9 months ago)

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Strategy and Management of
Change

The Knowledge Economy and
Competitiveness and Strategic
Management


Professor Julian Lowe

School of Business

Focus questions


What is knowledge? What is information?


What is the knowledge economy and where is
it going?


How does knowledge influence the
development of competitive advantage?


How can knowledge management be
embedded in strategy?


What is a learning organisation? Is it
consistent with the evolution of the modern
organisation


Questions for class discussion


Identify types of knowledge in your
organisation. How is it managed
-

Group?
Individual? How can it be managed better?


What role does knowledge play in strategy ?


What is the knowledge economy and what
impact will it have on the management of
strategy and organisation?

Mckinsey case


How did Mckinsey manage knowledge
over the period of the case?


What role did knowledge management
play in strategy?


Is their industry special? What are the
lessons for other companies in other
industries?

The New Economy?

Time

Living standards

Information wave

Toffler: Waves of
economic change

Industrial wave

Agricultural

wave

The Learning Organisation


Organisations that ‘experiment more, encourage more and
tries and permit more failures; they interact with customers
more; they maintain a rich information environment heavily
laden with information.’ (Tom Peters and Robert Waterman
in ‘In Search of Excellence’)


An organisation ‘skilled at creating, acquiring and
transferring knowledge and at modifying its behaviour to
reflect new knowledge and insights.’ (David Garvin in
Harvard Business Review)

../con’t

(
Source: Economist Intelligence Unit, n.d., p.4)

The Learning Organisation
(con’t)

Popular definitions of a learning organisation… offer
abstract prescriptions for successful management in the
knowledge
-
based economy:



An organisation which ‘people continually expand their
capacity to create the results they truly desire, where new
and expansive patterns are nurtured, where collective
aspiration is set free and where people are continually
learning how to learn together.’ (Peter Senge in ‘The Fifth
Discipline’[1990])

.

But??


The 21
st

century organisation



Economist audio

Audio on new forms of
organisation

econ_corp_org_survey_Jan2006.asx
Wealth from knowledge


Company value seen to be
dependent on intangible
assets, knowledge assets,
intellectual capital and
intellectual property

Knowledge interdependence

Cross
-
boundary
interdependence between
organisations: customers,
suppliers, partners, etc.

Technology

Limits of information
systems, information
management. Potentials of
work wide web, knowledge
technologies?

Human resources

People are seen to own
knowledge, create value,
and retain organizational
memory. And they can
leave

Organizational learning

Pace of change requires
continuous regeneration of
organisational knowledge
base

Innovation

Advantage through
innovation, knowledge
creating, knowledge
sharing and application

Knowledge

Management

Terminology


data


information


knowledge


all the rest


wisdom


insight


entovation

Information & Knowledge

Wisdom

Knowledge

Information

Data

Knowledge with insight

Information with meaning

Data with context

Facts,
observations,
data points

Data


a set of discrete objective facts about
events


in an organisational sense most usefully
described as a structured record of
transactions (Davenport and Prusak
1998)


cost, speed and capacity

Information


data endowed with relevance and
purpose (Drucker)


a message with a sender and a receiver


data becomes information when its
creator adds meaning

Knowledge


justified true belief (Nonaka and Takeuchi 1996)


knowledge is a fluid mix of framed experience,
values, contextual information and expert insight that
provides a framework for evaluating and
incorporating new experiences and information. It
originates and is applied in the minds of knowers. In
organisations, it often becomes embedded not only in
documents and repositories but also in organisational
routines, processes, practices and norms.(Davenport
and Prusak 1998)


Tacit and explicit knowledge

Distinctions between knowledge
management and information
management

Emphasizes adding value to
content by filtering,
synthesizing, interpreting,
adding context

Focus on culture/work
practices

Requires on
-
going human
inputs whose variability
precludes automating the
capture process

Emphasizes delivery and
accessibility


Heavy technology focus


Tends to assume that
information capture can be
standardized and automated

Managing knowledge


Information Management

Spender’s Taxonomy

Explicit

Tacit

Individual

Social

Conscious

Objectified

Automatic

Collective

J C Spender 1996

Is knowledge strategic


as an asset


sustainable


appropriable


protectable/imitable


role in innovation


architecture of relations


leveraging other asset


equipment/technolog
y etc


in systems


as an integrator


part of the culture


organisational routines


alliances


capabilities


rigidities and path
dependencies

Five things you can do with
Knowledge

Generate it

Transfer/Socialize It

Codify/Represent It

Facilitate/Enable It

Identify It

Four Major Categories of
Knowledge Projects



Making


Knowledge Visible



Creating


Knowledge Intensity



Building Knowledge


Infrastructure



Developing


Knowledge Culture

Knowledge Creating and
Diffusing Activities
-

Mini Steel
Mills

Problem

solving

Importing

Knowledge

Implementing

& Integrating

Experimenting

Core

Capabilities

D Leonard
-
Barton

Knowledge and creation of core competencies

Barriers To Transfer …And To
Sharing?


Lack of trust


Build relationships and trust
through face
-
to
-
face meetings


Different cultures, vocabularies,
frames of reference


Create common ground through
education, discussion, publications,
teaming, job rotation.



Lack of time and meeting places;
narrow idea of productive work



Establish times and places for
knowledge transfers: fairs, talk
rooms, conference reports



Status and rewards go to
knowledge owners


Evaluate performance and provide
incentives based on sharing


Cont…


Lack of absorptive capacity in
recipients


Educate employees for
flexibility; provide time for
learning; hire for openness to
ideas



Belief that knowledge is
prerogative of particular groups,
not
-
invented
-
here syndrome


Encourage nonhierarchical
approach to knowledge; quality
of ideas more important than
status of source


Intolerance for mistakes or
need for help


Accept and reward creative
errors and collaboration; no loss
of status from not knowing
everything


Barriers To Transfer …And To
Sharing?




(con’t.)

Managing knowledge strategically


Organisation and coordination issues


structure, systems, culture


Competitive advantage issues


creation,
protectability, transfer, longevity


Future changes


diffusion of e
-
business;
nature of the intellectual property system;
convergence of cultures and norms and
absorptive capacity