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- catalog abstract "Professional services firms (e.g. Consultants, Accounting Firms or Advertising Agencies) generate and sell business solutions to their customers. In doing so, they can leverage the cumulative experience from serving their customer base to either reduce their variable costs or increase the quality of their products/services. In other words, their ₃production technology₄ exhibitssome form of increasing returns to scale. Growth and globalization coupled with recent advances in information technology, have led many of these firms to introduce sophisticated Knowledge Management (KM) systems in order to create sustainable competitive advantage. In this paper, our goal is to analyze how KM is likely to affect competition among such professional services firms. In particular, first, we would like to understand what type (supply-side versus demand-side) economies of scale are likely to be exploited in KM systems. In the former case, KM₂s role is to reduce the operating costs of the firm while in the latter case its role is to create added value to customers by significantly increasing product quality. Second, we would like to analyze the competitive dynamics and market structure that emerge as a result of firms competing with KM systems. Our results shed light on the current literature exploring the appropriate design of KM systems by suggesting that in a competitive setting, when firms₂ ability to leverage their customer base is high, KM should lead to quality improvement ratherthan cost reductions.".
- catalog contributor b11742767.
- catalog contributor b11742768.
- catalog contributor b11742769.
- catalog created "c2000.".
- catalog date "2000".
- catalog date "c2000.".
- catalog dateCopyrighted "c2000.".
- catalog description "Includes bibliographical references (p. 26-28).".
- catalog description "Professional services firms (e.g. Consultants, Accounting Firms or Advertising Agencies) generate and sell business solutions to their customers. In doing so, they can leverage the cumulative experience from serving their customer base to either reduce their variable costs or increase the quality of their products/services. In other words, their ₃production technology₄ exhibitssome form of increasing returns to scale. Growth and globalization coupled with recent advances in information technology, have led many of these firms to introduce sophisticated Knowledge Management (KM) systems in order to create sustainable competitive advantage. In this paper, our goal is to analyze how KM is likely to affect competition among such professional services firms. In particular, first, we would like to understand what type (supply-side versus demand-side) economies of scale are likely to be exploited in KM systems. In the former case, KM₂s role is to reduce the operating costs of the firm while in the latter case its role is to create added value to customers by significantly increasing product quality. Second, we would like to analyze the competitive dynamics and market structure that emerge as a result of firms competing with KM systems. Our results shed light on the current literature exploring the appropriate design of KM systems by suggesting that in a competitive setting, when firms₂ ability to leverage their customer base is high, KM should lead to quality improvement ratherthan cost reductions.".
- catalog extent "30 p. :".
- catalog isPartOf "Working paper (Harvard University. Graduate School of Business Administration. Division of Research) ; 00-081.".
- catalog isPartOf "Working paper / Division of Research, Harvard Business School ; 00-081".
- catalog issued "2000".
- catalog issued "c2000.".
- catalog language "eng".
- catalog publisher "[Boston] : Division of Research, Harvard Business School,".
- catalog title "Leveraging the customer base : creating competitive advantage through knowledge management / Elie Ofek, Miklos Sarvary.".
- catalog type "text".