.: Article1 - The Phenomenon of Organisation & Strategy with models

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1. Introduction
Organisations are all over the world. What makes an organisation strong is the importance of people knowledge (Civi, 2000). This article looks at selected knowledge management models and Earl’s schools where appropriate organisations have been selected for discussion. These act as representation - device tool which aims to seek whether it will work for every organisation.

2. OrganisationCartwright (2001) defines organisations that involve human strategies premeditated to achieve certain objectives. The bigger the organisation, the more solid ground they have in the share of market position just like a pillar.

For simplicity, an organisation operates in an environment exploiting any opportunity available on the market where some form of transaction may take place (Dawson, 1996). Take for example HSBC, financial transactions is taken place, however in a healthcare organisation, patient treatment and advice service is a form of transaction from doctors or consultants

3. Strategy
Strategy to me means planning which could be either short term or on long term scale but depends on where one may aim to head for. For instance, I have set myself a long term goal that I need to achieve but without having short term strategies in place which I use as a sense of direction and purpose, I cannot meet this. Therefore in simple terms, strategies means that one cannot know where they are going if they have not set it.

In an organisation perspective, Norton and Irving (1999) claims that strategy is essential because of the significant impact from the market in which they operate. Greggs strategy, for instance attempts to change the perception of how consumers perceive their image (Food&DrinkEurope, 2005). I agree with Norton and Irving that strategy is essential but devising a strategy is complicated because there are many pulling forces for an organisation as opposed to one individual. From merging organisation together with strategy, this formulates to why they exist. Many issues are being examined and studied in the next section; we begin with a drug manufacturer.

4. Theory & Application

4.1. SECI
Eisai, a Japanese Pharmaceutical has a vision of human healthcare therefore its mission will reside in patients and families care. One of their missions is “to provide innovative product” (Eisai, 2009). Eisai, will have made a series of both long and short term strategies to make patients (customers) perceive who they say what they are but most importantly to maintain being profitable against other world-wide competing pharmaceutical companies like Roche, Wyeth and GSK (Eisai Co, 2005).

Take for example in order for Eisai to achieve “innovative product”, strategies were devised on how to reach this. Eisai sent their employees to a nursing home who worked as caretakers. Based on experience, employees realised the elderlys have difficulty in swallowing which led to the development of tablets that dissolves in the mouth.

The above illustration is very similar to Nonaka’s SECI model (Ichijo & Nonaka, 2007). For Eisai to take lead in developing dissolving tablets, this idea was brought about when Eisai allowed their employees working in the homecare. This entailed regularly day to day contact and through conversation’s with the elderly, this is the first stage of the model known as ‘socialisation’ process. Tacit knowledge of the elderly is transferred to Eisai employee. Eisai employees capture’s and applies to their knowledge of medication concept formally known as ‘externalisation’.

‘Combination’ is illustrated where employees at the nursing home (outside: importing knowledge [external from the organisation]) interacted with other employees across the organisation (inside: exporting knowledge). During this period, there is a transfer of explicit knowledge which is combined and processed. Upon approval of licence, Eisai (the group) can advertise this new drug to the targeted market of customers (the individual), this is known as the last process: ‘internalisation’ (Eisai Co, 2009).

Analysing the SECI model, it has enabled me to understand the broad context: from a discussion with elderly (being customers) to creating a product that will fulfil to help their requirements but giving impact towards Eisai mission. The model itself shows a proposal of ‘interactivity’ amongst people and knowledge creation.

4.2. Ba
‘Ba’ a concept introduced by Nonaka & Konno (1998) focuses on 4 Ba’s taken into account the “individuality collaborating and emerging relationship” (cited in Rainbird, 2006, et al., p.146). To expand on this, Nonaka and Teece (2001) wrote that the model requires ideas and thinking both inside and outside the firm. Pizza Express (2008) is a good example, founder Peter Boizot, his individuality of sharing feelings and experience of emotions about pizza made him reassuringly create to become the market leader. The directors listen’s to their customers taste’s changes overtime - in Nonaka terms, the ‘originating Ba’.

‘Interacting Ba’ is the tacit knowledge of each employee developed through rigorous induction training where skills are shared and a lot of manuals to help sustain a position in the market by brand building through self reflection (ILO, 2001).
Cyber Ba, to me means a form of collaboration. PizzaExpress have a ‘PizzaExpress Club’ that embraces a range of experiences. Members write, email or phone which acts as the collecting point and allows the exchange of necessary information (PizzaExpress Club, 2008).
From the three other Ba, this formulates the last one ‘exercising Ba’, theoretically resides to create new knowledge - the conversion and connection.

4.3. Earl’s
Michael Earl remarkably constructed seven schools; each school will not be discussed in depth but can be found in Blackman (2005) paper. Due to the extensiveness, 3 schools were selected: ‘Systems’, ‘Cartographic’ and ‘Commercial’.

Systems school is where an individual solves a problem on their own but also learn how to fix it for on your own. Cartographic school seekers are trying to find a solution contained in the “identity of an expert knower”. In this example, customers seeking a property will go to a mortgage advisor – this is mapping seeker to the specialist. A solution could be obtained through engaging conversation

Commercial school – this is the “right to use the product for sale” and “is commercially moderated”. Barristers and lawyers come under this school because of the protection of knowledge which is used and sold as a commodity.

4.4. Dinur and Inkpen
However in correlation to this, Dinur and Inkpen (1998) model of KM is applied to Oxfam because the model itself is designed to “explicate learning and knowledge transfer”. The first glance of the model involves different types of knowledge, from Oxfam point of view, the number of each people volunteering

Dinur and Inkpen (1998) would then use the knowledge held in these individual to be processed and internalised, within this, there is a sense making. As they act as carriers with different type knowledge to resolve the “poverty and suffering issue” (Oxfam, 2009).
This model seemingly appears to work for this type of organisation because it demonstrates the dispersed locations around the world where people are concerned for Oxfam organisation awareness.

4.5. Intellectual Capital
The word intellectual is something with high intelligence which can create money of value. Svieby (1997) defined this as “difference between the market value and its official net book value” (cited in Jashapara, 2004, p.268). An example which could be applied here is UBS in specific investment and also the London Stock Exchange. The activities performed in these sort of organisations are highly imbedded which makes them extremely critical.

For example, the market will always affect the fluctuation of share prices – when to buy or sell. This type of intellectuality impacts the organisation but also customers (the shareholders) and other linked organisation (the stakeholders). UBS profit went up 79% through trading; therefore the intellectual capital here would be how an individual does or as a team identify the fluctuation of market capital (Kennedy, 2007). In the opposite direction of this, HBOS for instance share prices dropped which caused many unhappy investors but for the organisation itself to lose money. This then allows their competitors such as Morgan Stanley to buy at low but make profit through selling high (Hosking and Seib, 2008).

5. Analysis
SECI model appears to be ideal if an organisation is looking to take advantage of knowledge held in ‘customers’. The model however will not work in the area of Law as this type of breed emerge to be very discreet and disclosed – not wanting to share. A prime example can be seen in two articles: Terrett (1998) and Doyle & Toit (1998).

In addition, Despres and Chauvel (1999) provides a good example of mapping. Reflecting on this to me occurs to Eisai earlier on, how to ‘map’ and cluster. From my understanding of this it is like a tree with branches and stems, this be refined similar to cancer – where it spreads. Just like in a hospital – the base root formulates each stems (wards) and branches (departments) are all closely associated with each other hence mapping to formulate a live strategy.

In the field for Virtual Bubbles, there is a need to have genuine interaction with people and well being. Not only that but the need to have patience to work with them. SECI model would be ideal here because of the broad range of IT skills required and people of all age groups, socialisation is the key to understand to interact to understand what is missing out there in the environment but not in the sense to take advantage of those without the knowledge.

Earl’s model school will not apply – especially commercial school because the school itself is far too protective and will only use or provide if paid for (at high value). But systems school could apply because they may learn on how to fix or solve, say for example troubleshooting to fix pc’s [experimenting] – the individual knowledge – this can then be posted on Virtual Bubbles website which can then be assessed by other members who may have more knowledge.

6. Summary
It has proved a fiery debate the KM models mentioned here will need to be selectively chosen and the appropriate technique that would be feasible for the purpose of an organisation. The culture of PizzaExpress appears to be uniquely developed to provide a distinctive approach to their customers unlike the law sector. A distinctive approach for Eisai pharmaceutical appeared to have worked well. As noted the created strategy for each is embedded within the organisation mission, have you understood the rationale reason behind this?

7. References:
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