1. William H. Bowers – whb108@psu.edu The Social Life of Information Chapter 6 – Innovating Organization, Husbanding Knowledge

2. William H. Bowers – whb108@psu.edu Knowledge Conundrum Difficulty in moving knowledge Difficulty in moving knowledge Impossible to stop knowledge flow Impossible to stop knowledge flow

3. William H. Bowers – whb108@psu.edu Fumbling the Future Knowledge can be Knowledge can be –‘Sticky’ –‘Leaky’ Xerox PARC Xerox PARC –First GUI with windows –Mouse –Engineers, scientists and managers could not agree on value of these developments –Lost to Apple, Microsoft

4. William H. Bowers – whb108@psu.edu United in Theory, Divided in Practice Organizational theory assumes homogenous firms Organizational theory assumes homogenous firms 1930’s – theory that organizations promote ‘melting pot’ 1930’s – theory that organizations promote ‘melting pot’ 1950’s – ‘Organization man’ 1950’s – ‘Organization man’ Work identity is always local Work identity is always local Local knowledge reinforces divisions Local knowledge reinforces divisions

5. William H. Bowers – whb108@psu.edu Loosening Ties Lockheed’s skunk works Lockheed’s skunk works Xerox PARC Xerox PARC GM’s Saturn division GM’s Saturn division Intrapreneurship Intrapreneurship

6. William H. Bowers – whb108@psu.edu Becoming Untied Invention produces new ideas Invention produces new ideas Innovation implements inventions Innovation implements inventions These can become disconnected These can become disconnected Corporations do not make great leaps Corporations do not make great leaps

7. William H. Bowers – whb108@psu.edu Computer Networks PC was initially rejected by Xerox, Intel PC was initially rejected by Xerox, Intel Networks of practice Networks of practice –Internal –External –Promotes knowledge leakage

8. William H. Bowers – whb108@psu.edu Exchanging Complements Xerography (copiers) rejected by IBM and AB Dick Xerography (copiers) rejected by IBM and AB Dick Knowledge of GUI flowed from PARC to Apple Knowledge of GUI flowed from PARC to Apple Apple struggled for 5 years (1979 – 1984) to make it commercially viable Apple struggled for 5 years (1979 – 1984) to make it commercially viable Internal struggles at Apple Internal struggles at Apple

9. William H. Bowers – whb108@psu.edu Exchanging Complements Journey from invention to innovation is difficult Journey from invention to innovation is difficult Requires Requires –Hard work –Tough decisions –Organizational commitment –Leadership –Trust Invention requires complementary systems Invention requires complementary systems

10. William H. Bowers – whb108@psu.edu Clustering Matrix of organizations and networks of practice Matrix of organizations and networks of practice Reflects loose matrix (Silicon Valley) Reflects loose matrix (Silicon Valley) Connects internal and external structures Connects internal and external structures

11. William H. Bowers – whb108@psu.edu Clustering Vertical lines are firms Vertical lines are firms Horizontal are communities of practice Horizontal are communities of practice

12. William H. Bowers – whb108@psu.edu Clustered Ecologies Geographical clustering of industries Geographical clustering of industries Firms are no longer isolated Firms are no longer isolated “Mysteries of the trade” become common knowledge “Mysteries of the trade” become common knowledge Knowledge flows in and out Knowledge flows in and out

13. William H. Bowers – whb108@psu.edu Clustered Ecologies Labor pools develop Labor pools develop Subsidiary industries develop Subsidiary industries develop Regional advantages accrue Regional advantages accrue Feedback loops Feedback loops Social forces co-operate with economic ones Social forces co-operate with economic ones

14. William H. Bowers – whb108@psu.edu Revivals Death of distance Death of distance –Physical communities still thrive –Complementary organization spring up –Universities and colleges feed organizations –“Knowable community” –IT is not dispersing these clusters

15. William H. Bowers – whb108@psu.edu Revivals Death of the firm Death of the firm –Organization flattening –Self-organization will prevail –Formal organizations hinder monopolies –Organizations can afford R & D –The firms ‘husbands’ resources

16. William H. Bowers – whb108@psu.edu Questions & Discussion