1. MIS580: Knowledge Management Abhijit Kumar Kaijia Bao Vishal Rupani APRIL 9 TH, 2008

2. Reading 7  Introduction  Relevance  Content  Additional research  Discussion The role of tacit knowledge in group innovation. Leonard, D. California Management Review, 1998. by Abhijit Kumar

3. What is Tacit Knowledge?  Information that is relevant, actionable and based at least partially on experience.  Explicit elements are objective, rational, and created in the "then and there"  Tacit elements are subjective, experiential, and created in the "here and now”  Knowledge Spectrum 1 1 Michael Polanyi's original messier assumption

4. Knowledge Spiral TACIT EXPLICIT COMBINATION INTERNALIZATION Concept explained by Ikujiro Nonaka and Hirotaka Takeuchi EXTERNALIZATION SOCIALIZATION

5. Relevance: Tacit Knowledge  Problem Solving  Mind pattern from experience  Problem Finding  Allows rejection of the “usual” solution  Overlay to quickly detect solution  Prediction & Anticipation  Anticipate & Predict occurrences “hunch”

6. Being Tacit: Individuals or Group?  Learning  Implicit  Much research focused on individuals  Single mind is primary interest  However, innovation is a group process  Do “creatives” bloom in isolation?  Interaction essential  Awareness of social impact of ideas ?

7. Nature of Innovation CONVERGE DIVERGE Divergent Thinking Convergent Thinking Idea Generation Development Testing Shipping/ Adopting Sales/ Implementation After Sales Service

8. Divergence in Innovation  Why Tacit Knowledge?  Intellectually heterogeneous or homogeneous ?  Experience leads to Expertise (Tacit)  Interactions “Creative Abrasions”  Explicit statements carry “weight”  Insights, Intuitions, Inspiration  Innovation ?

9. Apple’s Innovation Process Pony (The Concept) Paired Design Meetings 10 3 1 Pixel Perfect Mockups Apple's design process Posted by: Helen Walters on March 08, Business Week Managing Divergence

10.  Overlapping specific knowledge  Observations & Apprenticeships “Art”  Collective tacit knowledge  Guiding Tacit Knowledge  Innovation  Tacit  Convergence in Innovation ?

11. Barriers: Tacit Knowledge  Stimulating divergent thinking  Converging towards a common aim  Lack of mentoring  Inequality among participants  Explicit form of tacit knowledge disregarded  Creative abrasion needs subtle diversity  Distance (time and location) ?

12. KNOWLEDGE RETENTION STRATEGY Knowledge Recovery Initiatives - Using retirees - Outsourcing - Regenerating Knowledge Transfer Practices - Documentation/ Training - Mentoring - Interviews / Reviews/ Debriefing Using IT Applications - Connecting People - Knowledge Mapping - Capturing Knowledge Human Resources Processes -Succession planning - Evaluating skill bases - Retention culture Insight: Ageing Workforce Lost Knowledge: Confronting the Threat of an Aging Workforce: David W. Delong

13. Managerial Implications  Managing Divergence  Brainstorming: Intuitive & Analytical  Level of divergent thinking  Varying tacit knowledge bases  Managing chaos  Depersonalizing conflict  Managing Convergence  Guiding visions & Shared experiences  Assessment

14. IDEO: Shopping Cart

15. Reading 8  Introduction  Conversion Models  Characteristics of Ba  Case Examples  Additional Research The Concept of “Ba”: Building a Foundation for Knowledge Creation Ikujiro Nonaka, California Management Review, Spring 1998. by Vishal Rupani

16. Introduction  Ba: Japanese concept means "place" or "interaction field”  Ba is a shared space that serves as a foundation for knowledge creation  Physical – office, playground  Virtual – email, videoconference  Mental – shared experiences, ideas  What differentiates Ba from ordinary human interaction is the concept of knowledge creation

17.  If knowledge is separated from Ba, it turns into information  Ba provides a platform for advancing individual and/or collective knowledge at a specific time in a specific place  It is the platform for the resource concentration of the organization's knowledge assets and the intellectualizing capabilities Introduction

18. Knowledge Conversion Modes – SECI Model SocializationExternalization InternalizationCombination Tacit Knowledge Explicit Knowledge Tacit Knowledge Explicit Knowledge

19. Knowledge Conversion Modes – SECI Model Socialization Share tacit knowledge among individuals E.g. Face to face interaction Externalization Formulate techniques to articulate tactic knowledge E.g. Use of metaphors, analogies Combination Combine internal and external knowledge E.g. product reports, market data Internalization Embody explicit knowledge to become part of individuals knowledge base E.g. learning by doing Tacit  TacitTacit  ExplicitExplicit  ExplicitExplicit  Tacit

20. Four Characteristics of Ba SocializationExternalization InternalizationCombination Originating Ba Interacting Ba Exercising BaCyber Ba face-to-face on-the-site peer-to-peer group-to- group

21. Four Characteristics of Ba ORIGINATING BAINTERACTING BA CYBER BA EXERCISING BA Place where individuals share feelings, emotions, experiences Place where dialogue and metaphors help transform tacit knowledge Place of interaction in the virtual world through use of technology Place to continuously learn by self-refinement

22. Creating Ba: Case Examples Ba Name: Urgent Projects Role:To expedite new technology/ product development Organization Design: Existing structure Location:Outside of the existing business organization

23. Ba Name: Advanced I Strategy (ADI) Group Role:Identify new market opportunities Organization Design: Existing structure Location:Inside the existing business organization Creating Ba: Case Examples

24. Ba Name: Independent Corporations Role:Serve unique market niches Organization Design: New structure Location:Inside each independent corporation Creating Ba: Case Examples

25. Management for Knowledge Creation  Top management is the provider of “Ba” for knowledge creation  Leaders must support emerging processes with visionary proposals and personal commitment  Management must realize that knowledge needs to be nurtured, supported, enhanced and cared for

26. Additional Research Learning and the ‘Ba’ in the Development Network of an Urban Region 1  In order for an urban region to learn and develop, it is necessary for its development network to learn  This article presents some potential ba for the development network including practical examples from Tampere Urban Region (located in Finland) 1 Juha Kostiainen, European Planning Studies, Vol 10, No 5, 2002

27. Additional Research The structure and main actors of the development network in Tampere 1 1 Juha Kostiainen, European Planning Studies, Vol 10, No 5, 2002

28. Additional Research The potential Ba in the development network of an urban region 1 ORIGINATING BAINTERACTING BA CYBER BA EXERCISING BA Expert exchange among developing organizations Sauna evenings Learning cafe Common sports and cultural events Discussion forums, also virtual ones Media Thematic meetings Plays, stories, tales Common learning programs of the developing network Mentored projects On-the-job learning Learning by doing Research and reports Utilizing and connecting of outside experts Virtual communities like CityWeb Thematic summary reports 1 Juha Kostiainen, European Planning Studies, Vol 10, No 5, 2002

29. Summary  Ba: Knowledge creation occurs through interaction among individuals or between individuals and their environment  Four types of Ba correspond to four stages of the SECI Model  Top management support is essential for knowledge creation

30. Discussion  Do you think the concept of Ba can be extended to fields such as biotechnology for sharing and creating knowledge among scientists? What will be the implications on the IP?  The article primarily used 3 examples of companies in Japan that created a knowledge platform using Ba. Are you aware of any other companies that do the same?

31. Reading 9  Introduction  Growing Interests  Challenges & Approaches  Summary  Additional Research If only we knew what we know: Identification and transfer of internal best practices - O’Dell, C. California Management Review, 1998. by Kaijia Bao

32. Introduction American Productivity & Quality Center C. Jackson Grayson, Jr. Founder and Chairman Dr. Carla O’Dell President APQC is a non-profit research organization that helps companies identify best practices, discover improvement methods and disseminate findings. 1 1 APQC. (2008). About Us. Retrieved from American Productivity & Quality

33. Outline  Why the interest in knowledge transfer?  Why is knowledge transfer so difficult?  The 4 approaches to knowledge transfer?  Creating the environment for knowledge transfer  Summary: 7 keys to effective knowledge transfer

34. Growing Interests  Demonstrated success  TI was able to create extra capacity equivalent of 2 new facilities from existing fabrication plants. Saving $500-800 million for each new plant.  Chevron was able to generate $650 million in savings by sharing best practices among business units.  Recognition of Potential Gain  Benchmarking Evidence

35. Growing Interests  Compelling call to action  Chevron's initiatives was driven by its leaders “we have to share more, we have to share faster” (Ken Derr, CEO)  TI’s initiative was driven by its key customers, who threatened to leave if TI didn’t improve.  Decentralization and downsizing  Destroyed traditional knowledge network

36. Difficulties and Challenges  APQC 1994: Barriers to Knowledge Transfer  Ignorance  Source doesn’t know their knowledge is required  Recipient doesn’t know the knowledge is out there  Absorptive capacity  The ability (skills + resources) of the recipient to implement the knowledge into action  Long transfer time – 27 months on average

37. Organization and Challenges  Promotes “silo” behavior  Sub-optimization  Reduces  Contact  Relationship  Common perspectives

38. Organizational Challenges Value personal expertise over knowledge sharing Over-reliance on transmitting “explicit” knowledge: 80% of the knowledge are “tacit” Not rewarding people to learn and share

39. Earlier Approaches  Functional review, internal conferences, R&D experts to try to identify and transfer knowledge. “HOWEVER, historically most effective way of transferring knowledge is the actual transfer of personnel.” ?

40. Author’s 4 Approaches Benchmarking Teams Best Practice Teams Knowledge and Practice Networks Internal Assessment and Audit

41. Benchmarking Teams  Temporary teams formed to search for best practices both in and out of the firms for a specific problem.  Example:  TI began by searching for external solutions, but found that TI’s plant in Texas out performed all external solutions.

42. Best Practice Teams  On going teams composed of cross functional managers to continuously look for better practices relating to a specific business area.  Example:  Chevron identified 6 areas of improvement and assigned a team for each area that led to $650 millions in saving.

43. Internal Assessment and Audit  Leverage the functionality of existing internal audit / assessment team to include knowledge transfer.  Example:  Team C at Xerox

44. Knowledge and Practice Networks  Grass-root knowledge transfer  No formal network or support  Organization need to create environment and communication infrastructure  Example:  Chevron’s Best Practice Resource Map

45. Creating the Environment Technology Cultural Factors Senior Leadership Measurement All approaches needs a supportive company environment to thrive:

46. Technology  Technology is neither a barrier nor an incentive for knowledge sharing. It is simply a tool. (i.e. Lotus Notes, emails, etc)  Issues to consider:  Important information is too complex and too experiential to be captured electronically.  Entering information into system must be someone’s job.  Framework to classify information ?

47. Cultural  American school stress individuality and competition, not collaboration and sharing  Rewards:  Rewards is useful early, to build enthusiasm  In the long run, the reward should be intrinsic  Embed knowledge transfer into employee’s work method and professional development system ?

48. Senior Leadership  Not essential to support in the early stages  Do not squash pockets of innovation  BUT, management must be supportive if change is to occur across the organization

49. Measurement  Good for developing a business case  Cannot help business units to see how to achieve better results  Metrics alone does not indicate better practice  Too much measurement can lead to internal competition and reduce knowledge transfer

50. Summary: Seven Keys to Transfer 1.Use benchmarking to identify areas for change 2.Focus efforts on critical business areas 3.Ensure adequate resources 4.Do not over measure 5.Tailor reward systems to encourage sharing 6.Use technology as a tool, not as a solution 7.Leaders must take an active role in knowledge sharing

51. Additional Research  The Role of Evolving Technologies: Accelerating Collaboration and Knowledge Transfer. 2007. Carla O’Dell, Jim Lee  Web 2.0 and Knowledge Management. 2008. Carla O’Dell.  Study on transition from Web 2.0 to Enterprise 2.0

52. Key Findings  For the new generation, face-to-face is no longer necessary  Web 2.0 can simulate intimate and tactile dimension found in face-to-face meetings  Top enterprise 2.0 applications  Wikis: Diplopedia (State Department)  Blogs: Employee blogs (HP)  Social networking: Accenture People (Accenture)

53. Benefits of Enterprise 2.0 User-drivenEasy to use Low cost and open source Spontaneous and self- organizing A lot more “fun” than standard corporate applications

54. ?