Chapter 7
Align Knowledge Management
and Business Strategy
Strategic Visioning

Creativity without strategy is called
art.
 Creativity with strategy is called
good design.
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Knowledge Management
2
Strategic Visioning
 Determine
the right diagnostic
questions to ask.
Knowing the right answers ....
to the wrong questions....
will not serve KM project.
Chapter 7
Knowledge Management
3
Strategic Visioning
1.
2.
3.
What is the industry context in which
your company operate?
What is the level and nature of
turbulence (disturbed) within it.
How profound (obvious) is the
uncertainty in your business.
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Knowledge Transfer
& Knowledge Integration
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Knowledge Transfer
Vision: General strategy of facilitating
learning and exchange.

The two transacting individuals posses certain shared
knowledge in order to effectively communicate.
– ถ้ามาจากคนละหน่วยงาน จะมีส่วนที่จะแบ่งปั นความรู ้กนั น้อยมาก

Sufficient time is available to engage in such transfer.
– ถ้ามีเวลาจากัดในการพัฒนา KM จะมีปัญหาเกี่ยวกับเวลาในการสอนงานกันน้อยเกินไป

Knowledge that is transferred remains valid by the
time a transfer is completed.
– Project specific knowledge อาจไม่ได้ใช้อีก ในงานประจา
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Knowledge Integration
Vision: Stresses (เน้น) rapid application of
existing but disconnected knowledge .
Knowledge assets are of little value if they
cannot be mobilized rapidly.

Promote synthesis of individually held
knowledge at the task level.
 Keep cross-member learning down to
bare-minimum level.
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Real option under uncertainty
Vision:
When increasing high uncertainty of markets,
technologies, and customer desires,
the right strategic bets have high payoffs.
Clarity of future (คาดการณ์ได้ชดั เจน)
 Absolute ambiguity (มืดแปดด้าน)

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Level of uncertainty
Level 4
Absolute Unpredictability
Level 3
Range of Outcome
Level 2
Discrete Possibilities
Level 1
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Predictable Outcome
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Level of uncertainty

Level 1 : Clarity of future (คาดการณ์ได้ชดั เจน)
– SWOT Analysis : Strengths, Weaknesses,
Opportunities, and Threats
Vision:
Chapter 7
To sustain the company’s strengths,
mitigate its weaknesses,
avoid threats,
and gab opportunities.
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10
Level of uncertainty

Level 2 : Several outcomes are foreseeable.
– SWOT Analysis : Strengths, Weaknesses,
Opportunities, and Threats
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 of uncertainty

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)
Vision: Helping the company move in a general
direction within the relative fuzzy range of the
outcomes.
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Level of uncertainty
4 : Absolute ambiguity (มืดแปดด้าน)
- Example : Wireless internet (2003)
- Consider historically similar patterns
Level
Vision:
Shaping both the business and the market
in ways that help a company’s offering succeed
in high unpredictable markets.
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Strategic Visioning
Focus 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
people come from
difference
background
ต้ องการความหลากหลาย
similar domains
of expertise
Chapter 7
ต้ องการความเร็ว
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Permutation of business models and
technology influence strategic choices
to arrange
operational
strategy
Chapter
7
Knowledge Management
customer, partners, supplier
transformation
strategy 16
Business model and executability

Amazon.com
–
–
Chapter 7
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
See Table 6-1
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
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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.
Knowledge Management
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A high-level of strategic knowledge
gap analysis
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Knowledge maps to link
knowledge to strategy
Core Knowledge
1.
HW : chip
SW : 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)
Innovative knowledge
make your company lead its entire
industry
3.
Chapter 7
-
allows a company to change the rules of the game
-
Apple and Microsoft lawsuit in 1980 (look and feel of its
Knowledge Management
GUI)
25
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?
Chapter support
7
e.g. Customer
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Innovate or Imitate

Intel : dominance in the microprocessor
business
 Choose adopt innovation


Celeron : less 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
Chapter 7
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The process
of
articulating
the link
between
business
and
knowledge
strategies
Chapter 7
evaluate
utilize
Knowledge Management
to investigate
30
A recap on strategic alignment
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Assessing (Evaluating) Focus
1.
2.
3.
4.
5.
6.
How can we turn Knowledge into something that
add value to the markets?
How can we generate meaning knowledge?
What do we know about the customers?
How can we crate knowledge-supportive
organization culture.
Can we cut cost or reduce time to market, improve
customer service, or increase margins?
How can we manage people?
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Selecting Key Players
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