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Chapter 7
Align Knowledge Management and Business Strategy
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Strategic Visioning
Creativity without strategy is called art.
Creativity with strategy is called good design.
Chapter 7 Knowledge Management 3
Determine the right diagnostic questions to ask.
Knowing the right answers ....
to the wrong questions....
will not serve KM project.
Strategic Visioning
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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.
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Knowledge Transfer& Knowledge Integration
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The two transacting individuals posses certain shared knowledge in order to effectively communicate. – ถ้�ามาจากคนละหน�วยงาน จะม�ส่�วนที่��จะแบ่�งปั�นความรู้� �ก�นน�อยมาก
Sufficient time is available to engage in such transfer.– ถ้�าม�เวลาจ�าก�ดในการู้พั�ฒนา KM จะม�ปั�ญหาเก��ยวก�บ่เวลาในการู้
ส่อนงานก�นน�อยเก$นไปั Knowledge that is transferred remains valid by the time
a transfer is completed.– Project specific knowledge อาจไม�ได�ใช้�อ�ก ในงานปัรู้ะจ�า
Knowledge TransferVision: General strategy of facilitating learning and exchange.
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Knowledge Integration
Promote synthesis of individually held knowledge at the task level.
Keep cross-member learning down to bare-minimum level.
Vision: Stresses (เน�น) rapid application of existing but disconnected knowledge .
Knowledge assets are of little value if they cannot be mobilized rapidly.
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Clarity of future (คาดการู้ณ์(ได�ช้�ดเจน) Absolute ambiguity (ม)ดแปัดด�าน)
Real option under uncertainty
Vision: When increasing high uncertainty of
markets, technologies, and customer desires, the right strategic bets have high payoffs.
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Level of uncertainty
Predictable Outcome
Discrete Possibilities
Range of Outcome
Absolute Unpredictability
Level 1
Level 2
Level 3
Level 4
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Level 1 : Clarity of future (คาดการู้ณ์(ได�ช้�ดเจน)– SWOT AnalysisSWOT Analysis : Strengths, Weaknesses,
Opportunities, and Threats
Level of uncertainty
Vision: To sustain the company’s strengths, mitigate its weaknesses,
avoid threats, and gab opportunities.
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Level 2 : Several outcomes are foreseeable.– SWOT AnalysisSWOT 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.
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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.
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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 (ม)ดแปัดด�าน)- Example : Wireless internet (2003)- Consider historically similar patterns
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Strategic VisioningFocus 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.
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The responsiveness quadrahedron
ต้�องการความหลากหลาย
ต้�องการความเร�วsimilar domains
of expertise
people come from difference background
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Permutation of business models and technology influence strategic choices
operational strategy
transformation strategy
customer, partners, supplier
to arrange
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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
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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
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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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A high-level of strategic knowledge gap analysis
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Knowledge maps to link knowledge to strategy
1. Core Knowledge HW : chipSW : 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)
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Creating a Knowledge Map
Knowledge is not static. What is innovative knowledge today will
become the core knowledge of tomorrow.
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Create a knowledge map to evaluate corporate knowledge
Where are we?
Where are
they?
e.g. Customer support
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Innovate or Imitate
Intel Intel : dominance in the microprocessor business
Choose adopt innovation Celeron : Celeron : less the cache memoryless the cache memory
Cyrix (Taiwan): low cost pentium clones
AMD : Choose adopt innovation Super 7 year 1999
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Aligning knowledge and business strategy
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The process of
articulating the link between business
and knowledge strategies
evaluate
utilize to investigate
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A recap on strategic alignment
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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?
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Selecting Key Players
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