The Knowledge Ambition

Abstract

What knowledge does the firm possess? What knowledge is vitally important for a firm's competitive advantage today and tomorrow? What knowledge should be better exploited? In which fields of knowledge do firms want to catch up, or take a lead? All of these questions are concerned with the starting point of the knowledge enterprise: the knowledge ambition. ‘Doing the right things’ or better: ‘Knowing the right things’ is the slogan when the direction must be determined and choices need to be made. This sounds logical, but ‘knowledge’ is an abstract and comprehensive notion. The knowledge enterprise presupposes that we are able to determine what knowledge is. It is different from the concept of ‘information’. It must moreover be possible to code knowledge. Coding (or ‘ordering’) means that different types of knowledge can be named and provided with characteristics.That is what this chapter tries to do. After defining the concept of knowledge, knowledge is split up into several areas. Knowledge areas focusing on the performance of certain tasks and the production of added value are referred to as ‘competencies’. This division can take various forms. In this chapter, we will first choose a division based on three sources of knowledge:• functional knowledge: knowledge developed within disciplines or subject areas;• operational knowledge: knowledge based on experiences in actions;• contextual knowledge: knowledge gained in a certain environment.A second division addressed is into explicit and tacit (or implicit) knowledge. Tacit knowledge is not written down, but built up and stored in the brains of people. This particular type of knowledge seems to constantly escape attention in organizations. Tacit knowledge is embedded in the culture of an organization. It is a vehicle for efficiency and creativity as well as a brake on change. ‘Core in-competencies’ are created when holding onto obsolete implicit knowledge. The knowledge enterprise which steers only for explicit knowledge is heading for destruction.Formulating the knowledge ambition implies that choices be made between competencies. It is possible thus to determine the strategic importance of different competencies. For that purpose, we introduce the distinction between core competencies, enabling competencies and exchangeable competencies. Subsequently, we will focus on the extent to which knowledge can be measured and purchased. Finally, we will describe the steps that will lead to the formulation of the knowledge ambition.