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Knowledge-Based Enterprise: Theories and Fundamentals Part 3

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By understanding these key strategy models, it is possible then to fully appreciate how KM can and should be incorporated into an organization’s strategy design. | Section III Becoming a Knowledge-Based Enterprise TEAM LinG 166 Wickramasinghe von Lubitz Chapter VII KM and Strategy Introduction Given that knowledge has now emerged as a key resource for organizations knowledge and its management then naturally have significant strategic implications. In order to understand the connection between knowledge and strategy and thereby the strategic value of KM we first need to understand some key frameworks and models that facilitate the analysis of organizations and their environments. These include the frameworks of Porter namely his generic strategies competitive forces model and value chain model respectively and McFarlan s strategic grid. In addition we show that these frameworks are particularly useful in identifying how KM can facilitate organizations to maximize their competitive advantages. By understanding these key strategy models it is possible then to fully appreciate how KM can and should be incorporated into an organization s strategy design. Generic Strategies The origins of the word strategy can be traced back to the ancient Greek word strat-egos however strategy was first embraced in business policy by the development of the SWOT strengths weaknesses opportunities threats framework Maier Copyright 2007 Idea Group Inc. Copying or distributing in print or electronic forms without written permission of Idea Group Inc. is prohibited. TEAM LinG KM and Strategy 167 2001 . Essentially the goal of strategic management is to find a fit between the organization and its environment that maximizes its performance Hofer 1975 . This describes the market-based view of the firm and was predominantly developed and pushed by the frameworks of Michael Porter. The first of Porter s famous frameworks is the generic strategies framework. The use of technology and knowledge must always enable or enhance the businesses objectives and strategies ofthe organization. This is particularly true for 21st century organizations where many of .