-BOOK SUMMARY-

WHAT’S YOUR STRATEGY FOR

MANAGING KNOWLEDGE?

Tri Septia Rakhmawati

29318401
GM 08
In What’s Your Strategy for Managing Knowledge, Hansen, Nohria, and Tierney explores the
rise of computer and the increasing importance of intellectual assets have compelled
executive to examine the knowledge underlying their business and how it used. Because
knowledge management as conscious practice is so young, however, executive shave lacked
models to use as guides. To help fill that gap, the authors recently studied knowledge
management practices at management consulting firms, health care providers, and computer
manufacturers. They found two very different knowledge management strategies in place. In
companies that sell relatively standardized products that fill common needs, knowledge is
carefully codified and stored in databases, where it can be accessed and used over and over
again by anyone in organization. In companies that provide highly customized solutions to
unique problems, knowledge is shared mainly through person-to-person contacts; the chief
purpose of computers is to help people to communicate each other. By better understanding
both strategies and their strengths and weaknesses, the chief will be able to make more
surefooted decisions about knowledge management and their investments in it. The authors
also warn that knowledge management should not be isolated in a functional department like
HR or IT. They emphasize that the benefit must be obtained by both company and its
customers.
Lesson Learned
Some companies automate knowledge management, others rely on their people to share
knowledge through more traditional means. Emphasizing the wrong approach – or trying to
pursue both at the same time – can quickly undermine our business. The authors will help us
determine which knowledge management strategy is best for our company, whether it’s
codification or personalization, and how it should reflect our competitive strategy: how it
creates value for customers, how that value supports an economic model, and how the
company’s people deliver on the value and the economics. Assuming the competitive strategy
is clear, managers need to consider three further questions that can help them choose a
primary knowledge management strategy. Which are (1) Do your offer standardized or
customized products? (2) Do you have a mature or innovative product? (3) Do your people
rely on explicit or tacit knowledge to solve problems? Although the implications of the
answers may seem obvious, it is important for managers to make the explicit connection
between their company’s competitive strategy and how they use knowledge to support it.