Exploring requirements of agility for knowledge management

Abstract

Organizations have to sense and respond rapidly and flexibly to changes in their markets, in short: they have to be agile and this capability to be agile can be a source of competitive advantage. This research aims at (1) understanding the concept and definition of Agility; (2) exploring the impact of Agility on knowledge management in a company; (3) giving recommendations on how to manage Agility considering strategic usage of knowledge management; (4) proving the interdisciplinary application of Knowledge Management to enable Agility; Based on a literature review, a definition of Agility is developed. Furthermore, an exploratory case study within Siemens AG including 23 structured interviews with executives and managers is used to reflect and analyze demands on a firm's knowledge management in order to increase Agility. The case study reveals three perceived drivers for Agility: customers, competitors and Mergers & Acquisitions. Consequently three knowledge-oriented core competencies of an organization are summarized for increasing Agility: Real-Time Ability, Transformation Capability and Strategic Options. Finally, this paper suggests a framework for managing Agility. This framework was used at Siemens AG for its Global Diversity Initiative and illustrates how to prove the application of interdisciplinary Knowledge Management to enable Agility.