Preface for the Third Edition - Read

5. Strategy 113
the field of active-based costing seem to be appropriate and have to be adapted to
knowledge-intensive processes as well.
Design and introduction of KMS. Last but not least the analysis of business processes
can be a good starting point to design and introduce KMS, e.g., the CommonKADS
methodology for knowledge engineering and management (Schreiber
et al. 1999). Information derived from processes can also be used to specify KMS
more precisely, e.g., by process-oriented navigation structure, process-oriented
knowledge maps and knowledge structure diagrams.
The role of KM is to develop strategic knowledge assets that build core competencies
with respect to strategic business fields. Strategic knowledge assets connect
strategic business units and core competencies and thus relate the external and
internal perspective resulting in core competencies visible to the customers. The
relevance of an integrated view on process orientation and KM is underlined by
strong dependencies between these two approaches on the operational level.
Knowledge is created within operative business processes and shared with other
business processes. Knowledge is used in business processes to create value for the
business.
Knowledge also plays a crucial role when an organization decides to implement
the concept of process management. The development and distribution of process
knowledge (= knowledge about and derived from business processes) in improvement
or change processes is a key factor for successful continuous process
improvement which contributes to the adaptation of an organization to environmental
change.
Certainly, the application of process orientation in general and a process-oriented
KM strategy in particular has got limits. The traditional perspective which
considers business processes is the model of value chains by Porter (1985). The
organization is analyzed in terms of value creating activities, which basically rely
on the underlying business processes. However, expanded value configuration
models like the value shop and the value network are suitable instruments to analyze
and describe new alternative value creation technologies, especially for
knowledge-intensive business processes (Stabell/Fjeldstad 1998, 415). Central
point of all these approaches is the orientation towards value creation. Organizations
that can be described by a process-oriented framework like the Porter (1985)
model not necessarily use a process-oriented KM strategy.
Generally, a KM strategy which uses process orientation as the primary perspective
to analyze an organization is strongly dependent on the following requirements
and conditions:
The core business of the organization which is about to design a KM strategy is
viewed and managed using a process-oriented perspective. Business processes
are modeled and described and therefore visible to the employees.
Process-oriented management activities have already been carried out. Processorientation
in general and these activities in particular are well known and
accepted by the employees. Some weak spots in handling knowledge have been