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[8] 2002 e-business-strategies-for-virtual-organizations

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e-Business Strategies <strong>for</strong> Virtual Organizations<br />

These two <strong>strategies</strong> <strong>for</strong> sharing knowledge can be incompatible,<br />

and trying to pursue an approach toward which a culture is<br />

not inherently sympathetic can lead to quite unintended and<br />

un<strong>for</strong>tunate consequences.<br />

These three factors – content, community and computing – are<br />

all interrelated but are also in a state of tension with each other.<br />

Achieving a balance between them is the main focus of any<br />

knowledge management strategy.<br />

7.6 Strategies <strong>for</strong> managing knowledge<br />

152<br />

Competitive strategy must drive knowledge management strategy<br />

but categorizing what an organization knows and should<br />

know about its industry or competitive position is not easy. If it<br />

were easy then competitive advantage would be unsustainable.<br />

Many programmes start by focusing on the thrust of better<br />

sharing of existing knowledge, e.g. sharing best practices, but it<br />

is the creation and conversion of new knowledge through the<br />

processes of innovation that gives the best long-term pay-off.<br />

7.6.1 Strategic thrusts<br />

As a first step the organization needs to determine the value of<br />

knowledge to its <strong>business</strong>. In other words it must align its<br />

knowledge resources and capabilities to the intellectual resources<br />

of its strategy. This should be measured against two<br />

dimensions and related to knowledge aggressiveness. The first<br />

dimension addresses the extent to which an organization is<br />

primarily a creator or user of knowledge and the second<br />

addresses whether the primary sources of knowledge are<br />

internal or external. These together will provide the strategic<br />

framework in which knowledge management strategy needs to<br />

be developed.<br />

The first dimension seeks to measure and report on the extent to<br />

which an organization is primarily a creator or user of<br />

knowledge. The second dimension seeks to determine where it<br />

gets the knowledge it uses – does it look <strong>for</strong> and find this<br />

resource outside the organization or does it generate it from<br />

within? These two dimensions combine to provide the strategic<br />

framework in which knowledge management strategy needs to<br />

be developed.<br />

Internal knowledge is obviously especially valuable (as we<br />

know from insider knowledge of companies and the effect this

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