KNOWLEDGE BASE ECONOMYBY MUHAMMAD HANIF - 1 5 2 2 1 0 2 3

INTEGRATING INNOVATION STYLE AND KNOWLEDGE INTO STRATEGY

CONTEXT

1. Strategy is about staking out and defending an unique competitive position

2. The competitive landscape always changes3. Organizations have to continually reinvent who

they are and what they do in both large and small ways in today’s dynamic economy.

EFFECTIVE STRATEGY

Product/Market position

Innovation position

Knowledge position

Given what we know what product market position can we execute?

What do we need to know to execute our product/market position?

What innovation position should we pursue given our product/market position?

Given our innovation position what product/market position makes the most sense?

What innovation position can we execute given what we know?what knowledge is needed to support our innovation position?

Alignment

PRODUCT / MARKET POSITIONING

• They are visible, tangible realization• Based on designing, costing, marketing,

manufacturing and distributing • Product / market position mapping compare with

competitors

KNOWLEDGE POSITIONING

• They are invisible, intangible realization• Something that organization needs to know and the knowledge

it needs to create and share depend on the organization’s strategy it would like to execute

• Knowledge position mapping compare with competitors; it can be overlapped with other company with different product/market and same level of knowledge

• Its dangerous and stealthy; other company could potentially produce a rival company’s products or serve the same markets

INNOVATION POSITIONING

• Its related to support new product/market development. The innovations are in a variety areas reflecting the key strategic drivers such as leading-edge technologies, new and better services, lower prices, better operational execution and better understanding of customers and markets.

• The Organization’s innovation position mapping specifies how much it will focus on developing external innovations that are experienced directly by customers and related to internal innovations

• The innovations shall align with product/market and knowledge positioning

INNOVATION POSITIONING CONT’D

Late Entrants, innovation develop to compete on volume and low cost. The innovations focus on operation efficiency. Its dangerous and

stealthy; other company could potentially produce a rival company’s products or serve the same markets

Early follower, the innovation develop base on markets and customer needs and focus on marketing, services and connection to customers

First mover; the innovation offering new products to early adopter markets and commitment to product or technology-oriented innovation.

There are 3 categories base on innovation perspective

LINKING KNOWLEDGE AND INNOVATION

• It’s a big mistake when company does not have attention on this while formulating strategy. • There are two questions to link both • What does the organization need to know in order to

innovate in a way that supports the product/market position?

• How does the organization’s knowledge limit the kinds of innovation it can successfully execute?

OVERALL STRATEGIC ALIGNMENT

• Most company does not have attention on this while formulating strategy. It’s a big mistake.

• Company shall integrate all positioning simultaneously in supporting the strategy

EXAMPLE : BUCKMAN LABORATORIES

Phase 3, Focus on Innovation and supported by knowledge and product/market position

Phase 2, Focus on Knowledge and supported by product/market and innovation position

Phase 1, Focus on Product/Market and supported by knowledge and innovation position

The Buckman Laboratories conduct the strategy in three phase

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