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Copyright 2000 – Origin Knowledge Strategy: Aligning Knowledge Programs to Business Strategy KM World Workshop Peter H. Jones, Ph.D. Origin Technology in Business KM World 2000 Tuesday, September 12, 2000

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  • 1.
    • Knowledge Strategy:
  • Aligning Knowledge Programsto Business Strategy
  • KM World Workshop
  • Peter H. Jones, Ph.D.
  • Origin Technology in Business
  • KM World 2000
      • Tuesday, September 12, 2000

2. The Knowledge Strategy Game GO ! Understanding Knowledge Strategy FOLLOW INSTRUCTIONS ON TOP CARD The Resource Strategy Model ManagingKnowledge Strategy PRICE $200 Strategy Methods & Applications Team KnowledgeSWOT Sharing What Weve Learned ? ? 3. A Knowledge Strategy Got One Already? 4. Understanding Knowledge Strategy

  • Tierney , (1999) A companys KM strategy should reflect its competitive strategy. With focus on creating value for customers, turning a profit, and managing people. (HBR)
  • Zack , (1999) the most important context for guiding knowledge management is the firms strategy. Knowledge is the fundamental basis of competition. Competing successfully on knowledge requires either aligning strategy to what the organization knows, or developing the knowledge and capabilities needed to support a desired strategy. (CMR)

5. Types of Strategy

  • Survival vs. Advancement (von Krogh, Roos, Slocum, 1994)
  • Survival maintaining current level of success, mastering current markets and competitors
  • Advancement Future success based on new markets, nonreplicability requiresknowledge creation
  • How do you plan/design strategy?
  • Formal strategy and planning Traditional strategy sets positions, targets, measures. Alignment means follow the leader.
  • Learning and emergence New thinking (not always in practice) shows strengths in org learning and preparing for conditions. Alignment means Learn and collaborate.

6. Strategic Drivers Market Growth Operational Effectiveness Customer Intimacy Growth through share, market strength, distribution external market focus Forging long-term, deep relationships with customers external focus, growing with customer success Profit through productivity and cost control internal development focus Traditional KM driver,but should not be the only one! 7. Strategic Drivers Business Strategy Market GrowthKnowledge Strategy Operational Effectiveness Customer Intimacy Product Innovation Knowledge Creation Intellectual Capital Product Sales Time to Market Distribution Networks Pricing Strategy Patent & ProductLeverage Process Innovation Knowledge Sharing Developing Learning Culture Business Innovation Customer KnowledgeIntegration Branding Knowledge Process streamlining Supply chain mgtAccounting & Financing Customer retention Customer product needsRevenue growth Partnering / Alliancing 8. What Drives Knowledge Strategy?

  • Business Strategy
    • What knowledge does it take to compete?
    • What are your critical knowledge gaps?
  • Product Innovation
    • Can you design breakthrough products?
    • Spark innovation through a participatory culture?
  • Organizational Complexity
    • How can you adapt to speed & information overload?
    • Build a quick-learning organization?
  • Customers and Markets
    • Profound customer understanding
    • Radically improved time to market
    • Knowledge leverage in the marketplace

9. Resource Strategy Model Potential Entrants Industry Buyers Substitute Products Suppliers Knowledge Resources Firms Knowledge Strategy Customer (A firms resource) StrategicResources (Partners, External Network) Organization, Capabilities, Core Competencies Porters 5 Forces strategic model (SWOT approach) breaks when applied to leverage of specific firms. Chaotic business dynamics now require we leverageuniquestrengths, not look at external industry trends. A resource strategy addresses firms only competitive differentiation - renewable resources of knowledge, skills, and capabilities (Penrose, Zack, Teece, Quinn, Grant, Kogut). 10. Resource-View of Strategy

  • Uniqueness of firm gives it competitive strength
    • Diversification exploitsimperfectionsin markets
    • Development of dynamic capabilities based on knowledge
  • In turbulent business environment Focus on what wecan know Strengths and Weaknesses
  • Organizational cultureas an inimitable strength(Barney, 1991)
    • Beliefs, values, shared meaning
    • Culture cannot be exported or replicated
    • Social communitiesprevent overdependence on individuals

11. ResourceStrategy...

  • Knowledge-based
    • Intangible, intellectual assets and renewable resources
    • Unique advantages, competitive knowledge
  • Innovation and renewal
    • Knowledge used to recombine traditional capabilities
  • Accelerates rate ofnew learning
    • Learning speed most significant competitive advantage
  • Integrates customers & suppliers
    • New webs of knowledge resources
  • Strategic planning differs from traditional
    • Knowledge SWOT, Scenarios, Internal/External

12. Managing Knowledge Strategy 13. Four Enabling Dimensions What do we know and where is it ? How do we participate with this know-how? How do we support this know-how? What processes leverage that know-how? CollaborativeTechnology Practices KnowledgeResources Culture and Learning 14. Linkage to Balanced ScorecardFinancial Goals Customer Goals Internal Business Process Goals Learning & Growth Goals Outcome Measures Performance Drivers Business Strategy Knowledge Strategy DesiredOutcomes DesiredBehaviors 15. Planning from Knowledge Perspective

  • Cultural Assessment .Readiness assessment
  • Knowledge Framework to embed Business Plan
  • Portfolio of Knowledge Management Projects
  • Champion for each project
  • Value from Knowledge Plan
  • Business steering team review and presentation
  • Phased Implementation

16. Knowledge Strategy Methods

  • Delegated Strategy Integration

17. Knowledge Strategy Methods

  • Knowledge SWOT
  • Business + Knowledge
    • Strengths, Weaknesses, Opportunities, Threats
  • Establish or affirm current Business Strategy
  • Evaluate internal drivers - impacts of current knowledge by:
    • Resources
    • Practices
    • Culture and Learning
    • Technologies
  • Use these as basis for Strength and Weaknesses.
  • Evaluate external drivers impacts on knowledge
  • Use these for Opportunities and Threats

18. Knowledge Strategy Methods

  • Strategic Scenario Planning
  • Create shared models of potential future conditions to guide dynamic strategy.
  • Why? Scenarios provide robust tools for integrating verycomplex business conditions applicable to strategy.
  • Also people are good at remembering stories;SWOT chart points fall away quickly.
  • How? Team workshop approach, with broad participation.You want new ideas, dissension, out in leftfield
  • Strategy as serious play
  • Source Scope of this workshop cant cover scenarios. See:Schwartz, The Art of the Long View Ringland,Scenario Planning

19. Knowledge Strategy Methods

  • Strategic Scenario Planning
  • Developing scenarios for adapting organization to potential future trends and changes.
  • Establish participatory scenario team - Future workshop, Team Design, other workshops
  • Set scope for scenarios
  • Generate sources for scenarios
  • Develop initial categories
  • Build miniscenarios as small groups
  • Group review of miniscenarios
  • Pull together themes and design 3 scenarios

20. Aligned Knowledge Management

  • Business strategy guides your knowledge assets
  • Linking knowledge requirements to:
    • Resources :
      • Making information accessible to point of need
      • Info usability with common categories & process
    • Culture :
      • Enabling, rewarding teams & experts for cross-sharing
      • Developing culture of knowledge creation
    • Practices :
      • Embedding new best practices in organization
      • Transparent leveraging of expert knowledge

21. Leading to Technology Solutions Scale and Accessibility Organizational Enterprise Inter-Enterprise Targeted, VerticalCollaborative, Horizontal Application Strategy Knowledge Management e-Community Content Management Systems Information Portal Communitiesof PracticeAlliance ExtranetsStrategic Knowledge ManagementOnline Knowledge CommunitiesInformation Integration PortalInternalApplication Portal 22. Strategic Knowledge Resources CollaborativeTechnology KnowledgeResources Core and complementary competencies Organizational capabilities Structured and unstructured information Personal knowledge and unique skills Customer relationships Intellectual property Infrastructure and standard systems Groupware and email applications Web-enabled portals and Internet applications Process management systems 23. Strategic Knowledge Resources Practices Business processes Organizational routinesEmbedded and specialized processes Practice communities How things are done Culture andLearning Core organizational values Personal values and leadership Organizational environment Hiring and enculturation How we see ourselves Individual and group skill development Organizational learning Style of management, work, engagement 24. Conclusions

  • Good strategy is dynamic and adaptable -Knowledge Strategy isongoingas well.
  • Requires leadership and will organizational change always requires focus on vision.
  • Traditional management may require education for integrating knowledge into business strategy.
  • Other firms KS processes may not apply to yours- No knowledge advantage can be claimed out of the box
  • Understand whats worked for others, experiment, listen to your people, your culture.

25. Exercises

  • Knowledge SWOT -Group Exercise
    • Create groups by industry and strategic thrust
    • Discuss current initiatives and strategic drivers
    • Select ONE business initiative to work on as group
    • Identify SWOT drivers for this initiative
    • Develop Knowledge and Business SWOT
  • Identify Application Areas for SWOT:
    • Knowledge Resources
    • Culture and Learning
    • Practices
    • Technology
  • Informal Presentation and Discussion
    • Each group present SWOT analysis to group
    • Show applications/alignments per 4 dimensions

26. Four Knowledge Enabling Areas