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Knowledge Management Chapters 7-8 By: Mikhail Averbukh Scott Brown Brian Chase.

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Presentation on theme: "Knowledge Management Chapters 7-8 By: Mikhail Averbukh Scott Brown Brian Chase."— Presentation transcript:

1 Knowledge Management Chapters 7-8 By: Mikhail Averbukh Scott Brown Brian Chase

2 Outline Chapter 7 Chapter 7 Research that Reinvents the Corporation Research that Reinvents the Corporation Chapter 8 Chapter 8 Managing Professional Intellect Managing Professional Intellect Additional Research Additional Research Toyota Case Toyota Case Pitfalls of Social Networking Pitfalls of Social Networking Biotech Case Biotech Case

3 Chapter 7 Outline Pioneering Research Pioneering Research Technology Gets Out Of The Way Technology Gets Out Of The Way Harvesting Local Innovation Harvesting Local Innovation Coproducing Innovation Coproducing Innovation Innovating with the Customer Innovating with the Customer PARC: Seedbed of the Computer Revolution PARC: Seedbed of the Computer Revolution How Xerox Redesigned It’s Copiers How Xerox Redesigned It’s Copiers

4 Research that Reinvents the Corporation Published in 1991 Published in 1991 By John Seely Brown By John Seely Brown Former Director of Xerox Research Center, PARC (Palo Alto Research Center) Former Director of Xerox Research Center, PARC (Palo Alto Research Center) Real case study example Real case study example “The most important invention that will come out of the corporate research lab in the future will be the corporation itself”. “The most important invention that will come out of the corporate research lab in the future will be the corporation itself”.

5 Pioneering Research The Corporation Invention created by PARC The Corporation Invention created by PARC Pioneering Research Principles Pioneering Research Principles New work practices is as important as new products New work practices is as important as new products Ubiquitous computing- Information technology used in a broad range of everyday objects. Ubiquitous computing- Information technology used in a broad range of everyday objects.

6 Pioneering Research Learning from innovation Learning from innovation Can’t just produce innovation Can’t just produce innovation Ultimate innovation partner is the customer Ultimate innovation partner is the customer Tailoring innovation to the needs of the customers. Tailoring innovation to the needs of the customers.

7 Technology Gets Out of the Way Remote Interactive Communication (RIC) Remote Interactive Communication (RIC) IT’s transformation of the copier IT’s transformation of the copier Complex computing and communication devices- Sensors that collect information Complex computing and communication devices- Sensors that collect information Artificial intelligence techniques Artificial intelligence techniques Customer - never see the machine fail Customer - never see the machine fail Xerox - way to listen to the customer Xerox - way to listen to the customer

8 Technology Gets Out of the Way The technology itself will become invisible The technology itself will become invisible Example: Photocopier Example: Photocopier Example: GPS devices in cars Example: GPS devices in cars Example: Fuji’s interactive photo editing machine at Walgreens Example: Fuji’s interactive photo editing machine at Walgreens “A flexible, versatile device that is able to meet many different customer needs”

9 Harvesting Local Innovation Getting involved in the anthropology of work Getting involved in the anthropology of work PARC was studying work practices throughout companies (Ex. Payroll) PARC was studying work practices throughout companies (Ex. Payroll) Employees were inventing innovative work practices, while not even realizing it, to reach their goals Employees were inventing innovative work practices, while not even realizing it, to reach their goals

10 Harvesting Local Innovation Customized user-system program (CUSP) Customized user-system program (CUSP) Allows users to modify the system themselves Allows users to modify the system themselves Buttons - people without a lot of training in computers can make modifications Buttons - people without a lot of training in computers can make modifications Xerox tech reps learn most out in the field Xerox tech reps learn most out in the field

11 Coproducing Innovation Communicate fresh insights so that others can grasp their significance - tech transfer Communicate fresh insights so that others can grasp their significance - tech transfer Uncover features that need to change Uncover features that need to change Conceptual envisioning environment Conceptual envisioning environment Envision new products before they are actually built Envision new products before they are actually built Share understanding with partners to coproduce new technologies and practices Share understanding with partners to coproduce new technologies and practices

12 Coproducing Innovation “Help employee’s grind a new set of eyeglasses so they can ‘see the world in a new way’” “Help employee’s grind a new set of eyeglasses so they can ‘see the world in a new way’” You can’t just tell people about a new insight, you have to let them experience it. You can’t just tell people about a new insight, you have to let them experience it.

13 Coproducing Innovation Innovating with the Customer Innovating with the Customer “Research’s ultimate partner in coproduction is the customer” “Research’s ultimate partner in coproduction is the customer” Customers may be unaware of their needs Customers may be unaware of their needs Product may not yet exist Product may not yet exist

14 PARC: Seedbed of the Computer Revolution Basic research in computing and electronics Basic research in computing and electronics How complex organizations use information How complex organizations use information Throughout the 1970s PARC innovations: Throughout the 1970s PARC innovations: Bit map - display with easy interface Bit map - display with easy interface LAN - distributed computing LAN - distributed computing Overlapping screen windows Overlapping screen windows Point and click editing Point and click editing Smalltalk - first object oriented programming language Smalltalk - first object oriented programming language Laser printing prototype - billion dollar business (1990) Laser printing prototype - billion dollar business (1990)

15 How Xerox Redesigned It’s Copiers In the early 1980’s users were finding their Xerox copiers extremely difficult to use In the early 1980’s users were finding their Xerox copiers extremely difficult to use Unreliability was not the real problem Unreliability was not the real problem Knowing that trouble was inevitable Knowing that trouble was inevitable Now the new copiers have enough technology to where the functions of the copiers are put into the context of the task the user is trying to accomplish Now the new copiers have enough technology to where the functions of the copiers are put into the context of the task the user is trying to accomplish

16 Chapter 8 Managing Professional Intellect Making the most of the best Making the most of the best James Brian Quinn, Tuck School of Business Philip Anderson, INSEAD Sydney Finkelstein, Tuck School of Business

17 Managing Professional Intellect In the post-industrial era, the success of a corporation lies more in its intellectual and systems capabilities than in it’s physical assets In the post-industrial era, the success of a corporation lies more in its intellectual and systems capabilities than in it’s physical assets Critical skill: managing human intellect and converting it into useful products and services Critical skill: managing human intellect and converting it into useful products and services

18 Outline What is Professional Intellect? What is Professional Intellect? Developing Professional Intellect Developing Professional Intellect Leveraging Professional Intellect Leveraging Professional Intellect Inverting organizations Inverting organizations Creating Intellectual webs Creating Intellectual webs

19 What is professional Intellect? 4 levels 4 levels Cognitive Knowledge Cognitive Knowledge Advanced Skills Advanced Skills Systems Understanding Systems Understanding Self-motivated Creativity Self-motivated Creativity

20 Level 1 of Professional Intellect Cognitive Knowledge Cognitive Knowledge Know-what Know-what Mastery of a discipline Mastery of a discipline Achieved through extensive training Achieved through extensive training Essential, but not sufficient for success Essential, but not sufficient for success

21 Level 2 of Professional Intellect Advanced Skills Advanced Skills Know - how Know - how Ability to apply the rules of a discipline to complex problems Ability to apply the rules of a discipline to complex problems The most widespread value creating professional skill level The most widespread value creating professional skill level

22 Level 3 of Professional Intellect Systems Understanding Systems Understanding Know-why Know-why Deep knowledge Deep knowledge Understanding cause-and-effect relationships Understanding cause-and-effect relationships Move beyond the execution of tasks Move beyond the execution of tasks

23 Level 4 of Professional Intellect Self-motivated creativity Self-motivated creativity Care-why Care-why Consists of will, motivation, and adaptability to success Consists of will, motivation, and adaptability to success Not always necessary Not always necessary Organizations that nurture care-why’s thrive Organizations that nurture care-why’s thrive Resides in the culture of an organization Resides in the culture of an organization

24 Developing Professional Intellect Recruit the best Recruit the best the leverage of intellect the leverage of intellect Force intensive early development Force intensive early development repeated exposure to the complex problems repeated exposure to the complex problems Constantly increase professional challenges Constantly increase professional challenges push professional beyond the comfort zone push professional beyond the comfort zone Evaluate the weed Evaluate the weed internal competition and performance evaluations internal competition and performance evaluations

25 Leveraging Professional Intellect Boost problem-solving abilities by capturing knowledge Boost problem-solving abilities by capturing knowledge Merrill Lynch knowledge base Merrill Lynch knowledge base Overcome reluctance to share information Overcome reluctance to share information Offer incentives Offer incentives Organize around intellect Organize around intellect ROI considerations ROI considerations

26 Inverting Organizations Tailor solutions to the particular way intellect creates value Tailor solutions to the particular way intellect creates value Example: Nova Care Example: Nova Care Critical professional intellect is in its therapists Critical professional intellect is in its therapists NovaNet captures and enhances organization’s system knowledge NovaNet captures and enhances organization’s system knowledge Work is organized around therapists Work is organized around therapists

27 Inverting Organizations In Inverted organizations, field experts become bosses

28 Creating Intellectual Webs Spider’s web : self-organizing network Spider’s web : self-organizing network Brings people together to solve a particular problem Brings people together to solve a particular problem Many consulting firms, investment banks, research consortia and medical teams use this approach. Many consulting firms, investment banks, research consortia and medical teams use this approach.

29 Creating Intellectual Webs In Spider’s Webs, a few experts team up to meet a specific challenge

30 Managing Professional Intellect Summary of the article Summary of the article The success of a corporation lies more in its intellectual and systems capabilities than in its physical assets The success of a corporation lies more in its intellectual and systems capabilities than in its physical assets The knowledge on how to manage human intellect and how to convert it into useful products and services is of great importance The knowledge on how to manage human intellect and how to convert it into useful products and services is of great importance

31 Toyota Case Created a knowledge network with suppliers Created a knowledge network with suppliers Faced several dilemmas: Faced several dilemmas: Motivate self-interested people to participate Motivate self-interested people to participate Free Rider Problem Free Rider Problem Maximize efficiency of knowledge transfers Maximize efficiency of knowledge transfers How to effectively transfer tacit knowledge How to effectively transfer tacit knowledge How do you address these problems? How do you address these problems?

32 Toyota Case Provided Information to suppliers Heavily subsidized the network with knowledge and resources Threatened economic sanctions to those who did not contribute Created a norm of information sharing and openness Incentives

33 Toyota Case Results Increased efficiency High level of participation No economic sanctions needed to date Suppliers participate willingly

34 Pitfalls of Social Networking The desire to protect “Personal Intellectual Property” The desire to protect “Personal Intellectual Property” The need to maintain external professional networking The need to maintain external professional networking The social networking meme still need socializing The social networking meme still need socializing Meme – cultural information that represent an idea that can be passed from one person to another. Meme – cultural information that represent an idea that can be passed from one person to another.

35 Buckman Case Buckman Laboratories K’Netix Knowledge Network. Started in 1992 Began with a corporate culture change that focused on knowledge sharing.

36 Buckman Case Infrastructure – hardware/software that enables communication Infrastructure – hardware/software that enables communication Infostructure – formal rules that govern exchange on the network Infostructure – formal rules that govern exchange on the network Infoculture – stock of background knowledge which is embedded in the social relations surrounding work group processes. Infoculture – stock of background knowledge which is embedded in the social relations surrounding work group processes.

37 Buckman Case Infrastructure Infrastructure Used network for both intra and inter-company communication. Used network for both intra and inter-company communication. Contained virtual conference rooms, libraries, bulletin boards, etc. Contained virtual conference rooms, libraries, bulletin boards, etc. Infostructure Infostructure Forum specialist organize and validate information before uploaded to knowledge base. Forum specialist organize and validate information before uploaded to knowledge base. Region focused forums for each segment of business. Region focused forums for each segment of business.

38 Buckman Case Infoculture Infoculture Allow employees at all levels to use network to promote information sharing. Allow employees at all levels to use network to promote information sharing. Employees who share the most become the most influential. Employees who share the most become the most influential. Managers looks for employees who share on the network. Managers looks for employees who share on the network.

39 Summary Knowledge networks require corporate cultural change. Incentives are needed to get people to participate. Consequences are needed to address the free-rider problem.

40 Sources Creating and Managing a High Performance Knowledge-Sharing Network: The Toyota Case. Strategic Management Journal. By Jeffrey Dyer and Knetaro Nobeoka. Issue 21, year Creating and Managing a High Performance Knowledge-Sharing Network: The Toyota Case. Strategic Management Journal. By Jeffrey Dyer and Knetaro Nobeoka. Issue 21, year Three Potential Pitfalls of Corporate Social Networking. Gartner Group, 4 December By Brian Prentice. Three Potential Pitfalls of Corporate Social Networking. Gartner Group, 4 December By Brian Prentice. Knowledge management in practice: An exploratory case study. Technology Analysis & Strategic Management; September By Shan Pan and Harry Scarbrough. Knowledge management in practice: An exploratory case study. Technology Analysis & Strategic Management; September By Shan Pan and Harry Scarbrough.


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