Strategy as Orchestrating Knowledge

Proctor and Gamble are different from Unilever despite marketing same products - Idiosyncratic or tacit knowledge

The Role of disintermediation may lead to the Hollowing out of the Oragnization by outsourcing to the market but collaboration can create new knowledge.

Codifibale explicit knowledge is being commoditized. Even tacit knowledge is under threat

Deconstruction the value chain - what defensive aciton can an org take

• Open standards allow companies to add value to the //grid//
• Richness and reach of information (Evans Wurster)
• focus on a few knowledge based activities
• own the supply chain that people / orgs use. IE the network that companies sell programs to, Windows

The new Competitve Model

Physical................................Product.............................(fulfillment).........Customer Information..........................Electronic Channels......(info provision)............Customer

The new Value Chain

Outsource.....Core Competence......Collaborate...Customize...Co-specialize....New Capabilities.....Customer

!!Four information domains Strategic - Perceptions about the strategic landscape -Parenting - benchmarking Business - Perceptions about competitive environment - Resoures required, positioning Organizational informal formal processes, decentralozation / centralization Knowledge - competence base for each org

!!Transaction analysis model - Corporate parents World View....................Mgt Focus .............HQ-SBU reltionship........... ............Knowledge acquisition and infor req at HQ .............HQ Archetypes.................

Archtypes - Lion Tamer/Mentor/Leader/Trainer

Canon - Mentor, external focus l-t control is embedded in realtionships, x-bpindary learning, double loop, knowdlege diffusion ABB - Leader, external focus, m-l-t, control is discrete, co-ordinated competences, disciplined creativity, self concept enahancement Unilever - Trainer - l-t Centrally managed, single loop, centralized innovation Hanson - Lion Tamer - st cemtal, discrete, efficiency, comformance, compliance, linear communication

Mentor - transformational capacity, empowerment, formal/informal networks Trainer - formal stad protocols Leader Economic performance, external performance, formal lateral and hierarchical linkages Lion tamer - operational efficiency, efficiency dat, internal targets, formal linear hierarchy

!!Conclusions

• • tradiotnal product based definaitionms of industries will disappear
  • strategies will become more focussed on co-specialized complemenaty best in class
  • CA will be based upon knowledge based individual activity
  • Horizontal strategy - economies of scope across unrelated industries
  • intermediaries will become flashpoints in the value chain being subject to disintermediation but also potential locus gor highly focussed competences
  • Formal HQ's to become more informal flexible staged managed to create learning
  • Information processes and knowldege networks underpin knowldege learning