Understanding the Importance of Measuring Knowledge in Strategic Thinking

SUMMITIVE ESSAY
Before we Measure something we must ask whether we
understand what is we are trying to measure

Introduction
Strategies are the core part of the success and the inherited part of any action which desires
some specific and desired results. Strategic thinking or the system of strategic thinking needs
to be backed up through the firm and supportive strategic knowledge. Information and
knowledge are the two main ingredients or the tripod on which the base of strategies stands
and depends. As has been stated by Hislop et al. (2018), that in order to understand what
exactly we are trying to understand or measure demands some strategic thinking. The
position and the place of knowledge system concerning the business system design as well as
the strategic system thinking needs to be explored and every perspective of both the criteria
needs to be assessed. The setting of an organisation demands some strategic thinking which
would be done through acknowledging the strategic thinking design and the system of the
same (Donate and Pablo, 2015). Anakle would be the focus for exploring the strategic
thinking system and the steps or the considerations that has been taken by the concerned
organisation would help in presenting the findings or the need of understanding what we are
trying to measure even before we measure it. As per Webb (2017), this would be done
through presenting the interaction among the various factors or elements such as the
knowledge management, challenge of performance measurement, communities of practice
and intellectual capital and social networks. The interactions exploration would provide with
the hybrid strategy which has been or could be utilised by Anakle in order to create or
develop competitive advantage, sustainability scenario and the edge of competition would be
understood.
Considering the scientific perspective, it has been rightly stated by Albert Einstein that
maximum of the values do not carry the capability of being measured, and measurement
takes a person towards estimation and approximation where no exact value could be attend.
This has been favoured by Heisenberg’s uncertainty principle which conveys that as one tries
to measure a variable with high accuracy, the more distant he gets from the exact value. As
per Barley et al. (2018), these facts stated by the scientists reveals that in the business
organisations, the value which has are hidden might be carrying some values which needs to
explored and accessed primarily and it should be done in great depth as this would help in
understanding what exactly it is, that is being tried to be measured.
Analysis
As stated by Nonaka and Toyama (2015), that the current generation and the business
situation is completely dependent on the knowledge base and this brings in the need and the

requirement of aspiring the knowledge base of the organisation which has been rightly
explored and utilised by Anakle. Anakle is a company which provides media solutions on
internet and mobile platforms and thus it reveals that the company has rightly taken up the
idea of the current knowledge of technology and has utilised it in developing the business.
The company has been known for providing online advertisement services, campaigns and
also provides help to the online developing advertising applications which gets utilised by a
wide range of users. It has been observed by Omotayo (2015), that the new companies has
been using the Knowledge Base View (KBV), in order to accelerate and expand the
organisations s has been done by Anakle Group. The exploration concentrates not on
measuring the knowledge accurately as it is not possible because knowledge is abstract but
the main focus is on to substantiate the hidden or the intrinsic value of knowledge and the
role that is has played in Anakle survival and growth.
Knowledge Management/Environment
As stated by Liebowitz and Frank (2016), knowledge is the creator of strategy and strategies
could be defined as the channel or the path on which the organisation walks in order to attain
long term and sustaining success or growth. The strategies taken by the business
organisations helps it in attaining the competitive and other advantages, resource
configurations, attaining the expectations of the market and its customers, and satisfying its
stakeholders through every means. These achievements of Anakle has been done through
rightly utilising the knowledge of its employees and the knowledge crafted by the employers.
Anakle has been a digital company which serves the online advertisement services to various
other companies such as Adidas, GTbank, and other companies. Strategy could also be
presented as the ingredient or the requirement for attaining the organisations goals and
objectives through social activity, or anywhere where people are involved. Van Den Berg has
been the person who has added knowledge as a factor of production in an organisation and
states that knowledge is the yardstick which helps in achieving business development and
growth along with competitive advantage. It has been mentioned by him that “knowledge
may help managers to determine the most economic combination of knowledge to use in
Production; transfer knowledge more effectively within and across organisation boundaries”.
These views has been supported by Drucker and Arrow who states that knowledge should be
used as a factor of production. Acknowledging the views and thoughts of Herbert A. Simon,
it has been revealed that he believes that knowledge plays an indispensable role in economic
processes and any failure in measuring the knowledge carries a sinister impact on the

organisations. As marked by Grover and Froese (2016), management of knowledge is one of
the crucial and the most essential action in an organisation and concerning Anakle, it has
been revealed that it has been utilising its knowledge exceptionally well through periodical
interaction among the employees and the employers which provided them with the scenario
of acknowledging each other and thus, the requirements has been fulfilled on both the ends.
Rastogi favours intertwining of nexus of social capital, human capital and knowledge
management. He also states that knowledge management nexus (KMN), is the base and the
creator of business system design.
Figure 1: Knowledge Management Nexus
(Source: Inkinen, 2016)
The most vital and the most important part of knowledge management is the calculation of
the cost of the organisation which reflects the expenses that the organisation would be
incurring in the execution of the plan or the strategy. This inaccuracy in this act leads to
severe and crucial circumstances. The management of knowledge could be reflected through
this act of the organisation and thus, in order to attain maximum profits the cost has to be
minimised. This require knowledge and the accurate utilisation and allocation of resources
both human and materialistic. As stated by Todorović et al. (2015), that the failure in the
calculation of costs and the value of knowledge would lead to the conclusion that the
organisation has been competing with the obsolete strategies and thus the failure of
knowledge management would foster. In the words of Khalique et al. (2015), knowledge is a
strategic asset.