Lectures on Knowledge Management

Lectures on Knowledge Management
Khurshid Ahmad Professor of Artificial Intelligence Centre for Knowledge Management January 2003

DEFINITIONS: KNOWLEDGE
“The fact of knowing a thing, state, person; A state of being aware or informed; Consciousness”. Shorter Oxford English Dictionary (1973) Knowing is usually thought to involve believing, though some say that it replaces belief, or that we can believe one thing whilst somehow knowing the opposite. Some think that knowledge is justified true belief. Report  50% Oral  50% Your understanding of KM? How has the case study helped you to understand KM better? Your opinion about the effectiveness or otherwise of KM You research into KM?

DEFINITIONS: MANAGEMENT
“The application of skill or care in the manipulation, use, treatment, or control of things or persons, or in the conduct of an enterprise, operation, etc.”. Strength Weakness Opportunities Threats Oxford English Dictionary

“The application of skill or care in the manipulation, use, treatment, or control of things or persons, or in the conduct of an enterprise, operation, etc.”. Knowledge management covers the following: identifying what knowledge assets a company possesses Where is the knowledge asset? What does it contain? What is its use? What form is it in? How accessible is it? analysing how the knowledge can add value What are the opportunities for using the knowledge asset? What would be the effect of its use? What are the current obstacles to its use? What would be its increased value to the company? specifying what actions are necessary to achieve better usability & added value How to plan the actions to use the knowledge asset? How to enact actions? How to monitor actions? reviewing the use of the knowledge to ensure added value Did the use of it produce the desired added value? How can the knowledge asset be maintained for this use? Did the use create new opportunities? Position Paper on Knowledge Asset Management Ann Macintosh Artificial Intelligence Applications Institute, University of Edinburgh 80 South Bridge Edinburgh EH1 1HN, United Kingdom WWW: Oxford English Dictionary

identifying what knowledge assets a company possesses Where is the knowledge asset? What does it contain? What is its use? What form is it in? How accessible is it? analysing how the knowledge can add value What are the opportunities for using the knowledge asset? What would be the effect of its use? What are the current obstacles to its use? What would be its increased value to the company? specifying what actions are necessary to achieve better usability & added value How to plan the actions to use the knowledge asset? How to enact actions? How to monitor actions? reviewing the use of the knowledge to ensure added value Did the use of it produce the desired added value? How can the knowledge asset be maintained for this use? Did the use create new opportunities? Knowledge management covers the following: identifying what knowledge assets a company possesses Where is the knowledge asset? What does it contain? What is its use? What form is it in? How accessible is it? analysing how the knowledge can add value What are the opportunities for using the knowledge asset? What would be the effect of its use? What are the current obstacles to its use? What would be its increased value to the company? specifying what actions are necessary to achieve better usability & added value How to plan the actions to use the knowledge asset? How to enact actions? How to monitor actions? reviewing the use of the knowledge to ensure added value Did the use of it produce the desired added value? How can the knowledge asset be maintained for this use? Did the use create new opportunities? Position Paper on Knowledge Asset Management Ann Macintosh Artificial Intelligence Applications Institute, University of Edinburgh 80 South Bridge Edinburgh EH1 1HN, United Kingdom WWW:

Language; Creativity; Planning, Thinking, Computation
DEFINITIONS Knowledge Language; Creativity; Planning, Thinking, Computation Intelligence Cognition Major industrial cities such as Detroit, Sheffield and Yokohama - once strategically important - are now regarded as ‘rust belts’. Instead we have various silicon-geographical features, such as Silicon Valley near San Francisco, and in the UK, Silicon Fen near Cambridge and the Silicon Corridor in Berkshire. The arrival of scientists and engineers in valleys, fens and corridors signals the transition from industrial to post-industrial society. The emergence of the post-industrial society has been accompanied by discussions about organisational knowledge and organisational learning. The terms organisation, knowledge and learning are broad and ambiguous, but this has not deterred the post-industrial thinkers, especially the leading management experts, from talking about methods, tools and techniques that will improve organisational knowledge and learning. The Internet expedites communication & computation

DEFINITIONS A new approach to the conservation and (rapid) deployment of the knowledge of organisations, expected to result in innovative, lean organisations. Over the last 25 years or so, the prosperity of countries in North America, the European Union, and perhaps, to a lesser extent, Japan, has become less dependent on heavy industry; increasingly relying on information, services and research. Newspaper commentators predicted the demise of heavy industry for more than half a century. Now, the post (heavy-) industrial age is upon us: politicians and pundits of various hues talk about the foundation for a post-industrial future. The harbingers of this future are new words – neologisms - like information superhighways, infobahns, wired society, knowledge societies and knowledge-based economies.

DEFINITIONS The effective management of knowledge expedites solutions to problems by involving a number of different people within an organisation at different levels, and every participant can, if authorised, look at the output of others within the organisation. The management of knowledge serves best when it helps to access knowledge of successful and failed projects, best practice and biographical details of the participants.

DEFINITIONS Knowledge Management - A term which was coined during the early 90s to discuss why Japanese companies had achieved such a dominant position. The term signalled the shift from the industrial society of the early 20th century, with its focus on land, labour and capital to a knowledge-based society which emphasised the human capital of an organisation. Defining Knowledge Philip Gill asked five leading knowledge management practitioners for their own definition of knowledge. Summaries follow below, but it’s worth noting that all their definitions share common traits. First, knowledge is a higher form of information; it is information that has been interpreted. Second, that interpretation takes place within the context of a business or organization that provides meaning, value and relevance. And finally, there is the human factor; knowledge exists in the minds of employees, as much as in the written documents, manuals, computer files or other knowledge assets of the organization.--P.J.G. Thomas Davenport, Director, Institute for Strategic Change, Accenture: "Knowledge is a high-value form of information content that originates and is applied in the minds of people." John Seely Brown, ex-chief scientist, Xerox PARC: "Knowledge is information that we have internalized; that is, integrated into our own internal frameworks, often through conversations with others." John Balla, KM area research director, DocuLabs: "Knowledge is the interpretation of material, emotional and conceptual data that is accepted as fact or reality by the status quo." Stowe Boyd, chief knowledge officer, Knowledge Capital Group: "Knowledge is justified belief. We feel that certain facts, information, conjectures, principles or ideas are ‘true’ in some sense." Carla O’Dell, president, American Productivity & Quality Center: "Knowledge is information in action." Gill, Philip J. (2001) ‘On the Trail of Knowledge - First you must discover what knowledge is and where in your company it is located.’ Knowledge Management Magazine (January 2001) ( site visited 5 Januray 2001)

Introduction Innovation Best Practice COURSE OUTLINE Bibliography:
Boisot, Max H. (1998). Knowledge Assets: Securing Competitive Advantage in the Information Economy. Oxford: Oxford Univ. Press. Davenport, Thomas H & Prusak, Laurence. (2000). Working Knowledge: How Organizations Manage What They Know. Boston: Harvard Business School Press. Harvard Business Review (1998). Knowledge Management. Boston;Harvard Business School Press. (Collection of Reprints) Huseman, Richard, C. and Goodman, Jon, P. (1998). Leading with Knowledge: The Nature of Competition in the 21st Century. Thousand Oaks: SAGE Publications. Morgan, Gareth. (1996). Images of Organization. Thousand Oaks: SAGE Publications. Nonaka, Ikujiu and Takeuchi, Hirotaki. (1995). The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York and Oxford: Oxford University Press. Scarbrough, Harry. (Ed.) (1996). The Management of Expertise. Houndmills: Macmillan Press Ltd. Wilson, David A. (1996). Managing Knowledge. Oxford: Butterworth-Heinemann. (In association with the UK Inst. of Mgmt.)

COURSE OUTLINE Introduction and Origins (3 Lectures)
Case Studies in Knowledge Management: The Japanese Miracle (5 Seminars) Knowledge Management Systems (5 Lectures) The Management of Expertise (6 Lectures) Afterword (1 Lecture) Bibliography: Boisot, Max H. (1998). Knowledge Assets: Securing Competitive Advantage in the Information Economy. Oxford: Oxford Univ. Press. Davenport, Thomas H & Prusak, Laurence. (2000). Working Knowledge: How Organizations Manage What They Know. Boston: Harvard Business School Press. Harvard Business Review (1998). Knowledge Management. Boston;Harvard Business School Press. (Collection of Reprints) Huseman, Richard, C. and Goodman, Jon, P. (1998). Leading with Knowledge: The Nature of Competition in the 21st Century. Thousand Oaks: SAGE Publications. Morgan, Gareth. (1996). Images of Organization. Thousand Oaks: SAGE Publications. Nonaka, Ikujiu and Takeuchi, Hirotaki. (1995). The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York and Oxford: Oxford University Press. Scarbrough, Harry. (Ed.) (1996). The Management of Expertise. Houndmills: Macmillan Press Ltd. Wilson, David A. (1996). Managing Knowledge. Oxford: Butterworth-Heinemann. (In association with the UK Inst. of Mgmt.)

COURSE WORK Coursework due date 28 April 2003
Presentation/Oral Examination: 1st May 2003 Presentation minutes Oral Examination minutes Bibliography: Boisot, Max H. (1998). Knowledge Assets: Securing Competitive Advantage in the Information Economy. Oxford: Oxford Univ. Press. Davenport, Thomas H & Prusak, Laurence. (2000). Working Knowledge: How Organizations Manage What They Know. Boston: Harvard Business School Press. Harvard Business Review (1998). Knowledge Management. Boston;Harvard Business School Press. (Collection of Reprints) Huseman, Richard, C. and Goodman, Jon, P. (1998). Leading with Knowledge: The Nature of Competition in the 21st Century. Thousand Oaks: SAGE Publications. Morgan, Gareth. (1996). Images of Organization. Thousand Oaks: SAGE Publications. Nonaka, Ikujiu and Takeuchi, Hirotaki. (1995). The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York and Oxford: Oxford University Press. Scarbrough, Harry. (Ed.) (1996). The Management of Expertise. Houndmills: Macmillan Press Ltd. Wilson, David A. (1996). Managing Knowledge. Oxford: Butterworth-Heinemann. (In association with the UK Inst. of Mgmt.)

COURSE OUTLINE Different metaphors to describe economic activity, productivity. Consumption of chemicals: New products Consumption of energy: New processes ‘Consumption’ of knowledge: New ? Bibliography: Boisot, Max H. (1998). Knowledge Assets: Securing Competitive Advantage in the Information Economy. Oxford: Oxford Univ. Press. Davenport, Thomas H & Prusak, Laurence. (2000). Working Knowledge: How Organizations Manage What They Know. Boston: Harvard Business School Press. Harvard Business Review (1998). Knowledge Management. Boston;Harvard Business School Press. (Collection of Reprints) Huseman, Richard, C. and Goodman, Jon, P. (1998). Leading with Knowledge: The Nature of Competition in the 21st Century. Thousand Oaks: SAGE Publications. Morgan, Gareth. (1996). Images of Organization. Thousand Oaks: SAGE Publications. Nonaka, Ikujiu and Takeuchi, Hirotaki. (1995). The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York and Oxford: Oxford University Press. Scarbrough, Harry. (Ed.) (1996). The Management of Expertise. Houndmills: Macmillan Press Ltd. Wilson, David A. (1996). Managing Knowledge. Oxford: Butterworth-Heinemann. (In association with the UK Inst. of Mgmt.)

INTRODUCTION & ORIGINS
According to management guru Peter Drucker, it was only at the beginning of the 20th century (c ) that management was distinguished from ownership in Germany. Georg Siemens, a leading banker of his time, asked Werner Siemens to hand over control of latter’s near-bankrupt electrical engineering enterprise to professional managers. Andrew Carnegie and John D Rockefeller followed suit in the USA. The period coincides with the rise of the modern movement. In 19th and early 20th century wealth was associated with control of energy resources. Knowledge and information were regarded as parameters of economic systems rather than as variables within them. Economic systems were construed as energy systems wherein cause and effect operate continuously and proportionately. Knowledge and information are, by contrast, highly non-linear and disruptive. From Max Boisot (1998:21-23)

According to management guru Peter Drucker, it was only at the beginning of the 20th century (c ) that management was distinguished from ownership in Germany. Georg Siemens, a leading banker of his time, asked Werner Siemens to hand over control of latter’s near-bankrupt electrical engineering enterprise to professional managers. Andrew Carnegie and John D Rockefeller followed suit in the USA. The period coincides with the rise of the modern movement. Different Metaphors to describe economic activity Knowledge and information are, by contrast, highly non-linear and disruptive. From Max Boisot (1998:21-23)

The post-modernist equivalent in the industrial genesis of the Northern Hemisphere was during the period spanning This genesis saw command-and-control structures introduced by the chemical giant du Pont, by General Motors - one of the pioneers of automotive engineering - and by the engineering colossus General Electric. Hierarchically organised enterprises emerged during this period (see Drucker 1988), coinciding with the ascent of post-modernism in the arts, literature, music and politics.

Computer mediated change management: Changes in the economy, the society and perhaps the world at large, are sometimes precipitated by advances in science and technology; Scientific and technological change is sometimes made possible by the use of computer systems –digital libraries, electronic communications are good examples here. Can we use computers to monitor (and control?) how change is effected?

Classic Corporation and Industrial Society: Frederick W. Taylor, a US engineer in the early part of the 20th century, suggested that an organisation can predict its output accurately from machine productivity; work processes; & time motion analysis of individual workers THE WORKER WAS ESSENTIALLY VIEWED AS A UNIT OF PRODUCTION. ALL DECISION MAKING AND CREATIVE THOUGHT WAS THE RESERVE OF MIDDLE AND UPPER MANAGEMENT. Huseman and Goodman (1998).

Post-industrial Corporation & Society: ‘Senior-level executives [have] come to understand the economic power of knowledge’ Huseman and Goodman (1998:211)). ‘KNOWLEDGE RESIDES AT ALL LEVELS OF ORGANIZATION. THE KNOWLEDGE ORGANIZATION REQUIRES AN ACCEPTANCE THAT PEOPLE AT THE TOP, OR EVEN A GROUP AT THE TOP, DO NOT CONSTITUTE THE REPOSITORY OF ALL KNOWLEDGE. SOMETIMES THE MOST VALUABLE KNOWLEDGE CAN BE FOUND AT THE LEVELS WHERE ORGANISATIONAL MEMBERS ARE CLOSEST TO CUSTOMERS AND SUPPLIERS (ibid: ) David Wilson suggests that Peter Drucker, Peter Senge, Ikujiro Nonaka, and Tom Peters, share a ‘common philosophy and some common themes’(1996:42). The philosophy is that information and knowledge will be […] the only basis for competition between organisations in the world markets: and, we should have, a ‘radically new type of organisation, with new structures, values and methods’ (1996:43). The themes include: market competition; non-hierarchical organisations; openness, freedom of information, self management; networks and excellent communications; teams, mutuality, alliances and co-operation; value and quality determined by the customer.

Post-industrial Corporation & Society: The introduction of the prefix ‘post’ in post-modern and post-industrial, is usually used to indicate a rupture from the past. The American Daniel Bell and the Frenchman Alan Touraine coined the term ‘post-industrial’ independently on either side of the Atlantic. Touraine wrote a book entitled The Post-Industrial Society(1970) to be followed by Bell’s more evangelical title The Coming of Post-industrial Society (1973). According to Prof. Gibson Burrell of the Warwick Business School, Bell talks about an expert class and Touraine about highly-skilled technicians. (Burrell, Gibson. (1996). ‘Hard times for the salariat’. In (ed.) Harry Scarbrough; pp52.) Industrialism Post-industrialism Major relationship Against nature Between organisation Dominant sector of the economy Secondary Tertiary, quaternary, quinary Key resource Energy Information Key goal Economic growth Codification of theoretical knowledge Numerically ‘dominant’ group Semi-skilled worker Professional/technical; Scientists Response to the future Ad hoc adaptiveness Forecasting Key mechanisms Machinery Knowledge Key institutional form Business firm Research institute Key agent Business person Scientists Key base of agent Property Technical institute Transmission of base Inheritance Education

The post-industrial society has emerged in a climate where multi-nationals move design and manufacture of goods around the globe with the deftness of ballet artists. The conventional wisdom of the post-modern age, that of mass production and well-stocked warehouses, has made way for technologies with idiosyncratic names: just-in-time or kan-ban, lean manufacturing, business process re-engineering, and the curious neologism knowledge management in the mid-1990s.

Management involves: Planning –Feasibility; Specification & Design; Producing – Implementation & Testing; Delivering; Repairing; Obsolescence

Ecological Systems? Planted->Born Nurtured Mature Die (Nourishment) New Ideas  Scrutinise Ideas  Surviving Ideas  Artefacts (concepts/devices based on the ideas)  Sell artefacts  Replace Artefacts Innovation Best Practice

Analog Digital Serial Killed off Go 1950’s Parallel Animal Neural Network Go 1970’s

The term knowledge management is used to articulate the concept that knowledge is an asset on a par with the tangible assets of any organisation - land, capital, plant and machinery. Management involves the control of assets, ergo knowledge should be managed from its inception through its nurturing to maturity to exploitation and to ultimate obsolescence. Knowledge may be considered intangible and yet it has a lifecycle: conception-birth-maturity-death. Knowledge derives from information as information derives from data. Some authors have argued that humans transform knowledge into information by comparing: how information about a given situation compares to other (known) situations; conversing: about what other people think about given information; connecting the derived knowledge with elements of existing knowledge; (evaluating) consequences of using the information in relation to decisions and actions. (Davenport & Prusak (2000:6))

Post Modern Organisation Post Industrial Organisation Structure PASSIVE, STATIC REACTIVE, DYNAMIC Products DURABLE, DULL DISPOSABLE, STYLISH Consumer Needs STABLE CHANGING Markets GEOGRAPHICALLY WELL DEFINED FUZZILY DEFINED Competition IDENTIFIABLE RIVALS: WAR OF POSITION CHANGING RIVALS: WAR OF MOVEMENT The post-industrial age emphasises the role of change and the ability of organisations to adapt to changing circumstances. This change may lead to different products or services; different competitors at different times and in different places. The post-industrial organisations are more design-aware and in some sense maintain a dialogue with their customers. The post-industrial society differs from the post-modern society in a number of ways: the structure of a post-industrial organisation is generally dynamic whereas the structure of a post modern organisation was static; consumer needs in a post-modern society were regarded as stable whereas post-industrialists regard them as constantly changing.

CHANGE & MANAGEMENT There are two major factors that have precipitated change during the second half of the 20th century: Competition: International & Domestic Information & Communication Technologies (ICT)

CASE STUDIES Xerox – knowledge within a corporation;
News Corporation & STAR TV ASIA CELL TECH HOLDERBANK ARTHUR ANDERSEN Telecorp PriceWaterhouse Cooper Yellow Pages & NOVARTIS Integral Consulting

CASE STUDIES The strategy paper(50% mark) –Presentation (50%)
Brief description of the organisation; Rationale for managing knowledge; Manual & computer based systems used for KM Reported successes or failures YOUR EVALUATION OF THE KM PROJECT Will you do KM the way you found it in the case study? Is KM a good thing for facilitating knowledge exchange? If so, why? If not, why not? BIBLIOGRAPHY

International Competition
CHANGE & MANAGEMENT International Competition 1960’s The rise of Germany and Japan as major competitors of the US in automotive and white goods; 1980’s The rise of the Pacific Rim countries (& India) as major centres of manufacture, and of R&D; 2000+ The Internet-based 24-hour world-wide economy: e-commerce  m-commerce

CHANGE & MANAGEMENT Domestic Competition Old Players & New Players:
IBM, DEC (†) Siemens, Philips  Microsoft, SUN, Dell, SAP Small-to-Medium sized Enterprises (SME): SME’s contribute extensively to economic and technological innovation Huseman & Goodman (1999). Pp 29-32

Information & Comms. Technologies (ICT)
CHANGE & MANAGEMENT Information & Comms. Technologies (ICT) Moore’s Law: The number of transistors packed on a chip doubles every 18 months; Computer and communications technologies are symbiotic: one facilitates the provision of another; ICT is about data (1950s), information (1960s) and knowledge processing (1980s). Huseman & Goodman (1999). Pp 32-33

Information & Comms. Technologies (ICT)
CHANGE & MANAGEMENT Information & Comms. Technologies (ICT) Year Processor MIPS Price ($) Price ($) /MIPS 1975 IBM Mainframe 10 10,000,000 1,000,000 1976 Cray 1 160 20,000,000 125,000 1981 IBM PC 0.25 2,000 12,000 1984 SUN 2 1 10,000 1994 Intel Pentium 66 3,000 45 1998 Intel Pentium II 500 1,000 2 Huseman & Goodman (1999). Table 2.6; pp 35 MIPS: Millions of Instructions Per Seconds

CHANGE & MANAGEMENT Information & Comms. Technologies (ICT) 1969 1985
Year Host Computers on the (ARPA) Internet Bandwidth 1969 4 9.6Kbps 1985 1961 56Kbps 1990 313,000 45Mbps (1989 data) 1995 6,642,000 155Mbps 1998 >10,000,000 1024Mbps 2000 ? 2048Mbps The Internet is not a new phenomenon: 1960’s The US Department of Defense’s Advanced Research Project Agency (ARPA, later DARPA) sponsored a project to link 4 mainframe computers at US universities through the 1980’s The US National Science Foundation and other US government agencies controlled access to the ARPANET and allowed access onto it through research grants; 1991: The NSF eased restrictions and allowed commercial traffic on the Net; 1995: The US government transferred the control of the Net to independent organisations to operate the Internet 1999: Internet II or GRID computing announced From: Kalakota, Ravi., & Whinston, Andrew B. (1996). Electronic Commerce: A Manager’s Guide. Reading (Mass): Addison Wesley

Key changes in which we transact:
CHANGE & MANAGEMENT Key changes in which we transact: Education Distance Learning Banking Automated Teller Machines (ATM) Retail Point-of-Sale Terminals; Home Shopping Entertainment Virtual Reality Business (Personal) ; e-commerce; m-commerce Design/Diagnosis Tele-presence Education/Training Virtual University

Terminology and symbols of change:
CHANGE & MANAGEMENT Terminology and symbols of change: Realignment: Mergers and acquisitions Restructuring: Reporting structures; organisational ethos Downsizing: Reducing work-force, investment, production capacity  Material gain, sometimes short-term, at the expense of the loss of the intellectual capital Huseman & Goodman (1999). Chap 3; pp 42-50

Professional Institutions State/Federal Institutions
CORPORATE LEARNING Academia Pursuit of knowledge; Transmission of culture; Instilling values. Professional Institutions Validation of experience; Code of Conduct; Representation of Interest. The promotion and dissemination of knowledge has involved the academia, professional institutions and learned societies, trade and research organisations and various departments of state. The education system throughout the world can be divided into primary, secondary and higher education (sub-)systems. This system was complemented by professional institutions (c. 1800) that looked after the regulation and promotion of a given profession: doctors have medical associations; engineers have civil, mechanical, electrical institutions. The educational system and professional institutions have co-existed with the learned societies – the Royal Society, Academy Francaise, Academia Sinica: these societies promoted learning for its own sake. There are also trade R&D associations sponsored and sustained by a given trading group or industrial sector. Recently, the market or rather market forces, have been deemed to be involved in the promotion and dissemination of knowledge for the sake of improving material well-being. State/Federal Institutions Protection of individuals; Promulgation of order; Regulation of organisations. ‘The’ Market Promotion of competition; Facilitates investment; Champions individual.

Can organisations learn? Organisational type
CORPORATE LEARNING Can organisations learn? Organisational type METAPHOR SALIENT FEATURES Organism Mutation; Species; Competition; Genetic transmission; interaction between part & whole Brain Connectivity; Local and Global Interactions; Supervised/Unsupervised Learning Culture Ideology; exchange systems; morals; rules Political System Power distribution; Control of intellectual and material resources; Autopoiesis Autonomy; circularity; and self-reference; self renewal/self creation Domination Sub-ordination; Charisma; Rational-legal systems Table above from Morgan (1997). In the second half of the 20th century, large industrial corporations started to educate their own executives and operatives. This began with voluntary attendance at seminars/lectures and led, in some cases, to organisations like Motorola to have a policy that ‘employees who did not enrol in the courses will be fired’ (Hauseman and Goodman 1998:68). There are currently 1200 corporate universities in the USA ranging from the MacDonald’s Hamburger University to Motorola University. The later gives over 100 courses in customer service, engineering support, manufacturing management; quality; sales, marketing and distribution. The corporate universities are geared to disseminate knowledge which some feel that the education system cannot. There are new models of knowledge dissemination: research parks, research hotels and virtual universities.

Can organisations learn to learn?
CORPORATE LEARNING Can organisations learn to learn? Can organisations learn in an on-going way? What are the main barriers to learning? Are these barriers intrinsic to the nature of human organisation? Can these barriers be overcome? Does learning requires the ability to detect and correct errors: in relation to set operating norms? not only in relation to set operating norms but by questioning the operating norms? Morgan (1997). Pp 87.

Can organisations learn to learn?
CORPORATE LEARNING Can organisations learn to learn? Learning by instruction; Learning by experimentation; Learning by rote; Learning by observation; Learning from examples; Learning by doing; Learning by analogy; Learning from mistakes and errors; Morgan (1997). Pp 87.

Can organisations learn? Feedback and Control
CORPORATE LEARNING Can organisations learn? Feedback and Control Cybernetics is a subject that deals with the self-maintenance and self-control of systems, both mechanical and organic, through a feed-back process. Cyberneticians also study the communication of information in such systems. Donald Schon (MIT) & Chris Argyris (Harvard) used the principles of cybernetics to provide a framework for thinking about learning organisations. Definition of cybernetics from G. Duncan Mitchell’s Dictionary of Sociology (1979) (London:Routledge & Kegan Paul) Feedback is said to exist in a dynamic system whenever the output of an element in the system influences in part the input applied to that particular element, thereby giving rise to one or more closed paths for the transmission of signals around the system. Feedback is supposed to occur in almost every part of the nervous system of every animal: feedback plays a role in learning, in moving about, in performing cognitive and perceptual tasks. One can argue that since humans form organisations, then feedback may play some role in the evolution and behaviour of organisations. Cybernetics suggests that learning organisations must develop facilities to: scan and anticipate change in the wider environment; develop an ability to question, challenge and change the operating norms and assumptions; Allow an appropriate strategic direction and pattern of organisations to emerge. From Morgan (1997:90).

CORPORATE LEARNING Can organisations learn? Feedback and Control Control: In engineering it means to allow a machine to run within safe parameters and for the machine to operate efficiently. Feedback: An important component of any dynamic system. The ability to take into account both the inputs and outputs of a system. Definition of cybernetics from G. Duncan Mitchell’s Dictionary of Sociology (1979) (London:Routledge & Kegan Paul) Feedback is said to exist in a dynamic system whenever the output of an element in the system influences in part the input applied to that particular element, thereby giving rise to one or more closed paths for the transmission of signals around the system. Feedback is supposed to occur in almost every part of the nervous system of every animal: feedback plays a role in learning, in moving about, in performing cognitive and perceptual tasks. One can argue that since humans form organisations, then feedback may play some role in the evolution and behaviour of organisations. Cybernetics suggests that learning organisations must develop facilities to: scan and anticipate change in the wider environment; develop an ability to question, challenge and change the operating norms and assumptions; Allow an appropriate strategic direction and pattern of organisations to emerge. From Morgan (1997:90).

CORPORATE LEARNING Can organisations learn? Feedback and Control Single loop learning: Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Step 1 Step 2 Step 3 Cybernetics suggests a continuous process of information exchange between a system and its environs. The above diagram shows that organisations should have good capabilities to collect data from the environment in which they operate (step 1): this involves tracking inputs to and outputs from the organisation, detecting ‘early warning signals’ that might indicate changing trends and patterns. This tracking and detecting information should be compared with available information about how the organisation should operate (step 2). This comparison must be carried out in a timely and considered manner. Finally, the organisation has to decide whether or not to boost a flagging organisation; to dampen unstable growth; or to do nothing (step 3). From Morgan (1997), pp 87

CORPORATE LEARNING Can organisations learn? Feedback and Control Single loop learning: Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Step 1 Step 2 Step 3 The operation of a thermostat: The thermostat is constantly sensing, scanning and monitoring its environment (Step1); checking whether to (a) do nothing; (b) increase the heat; (c ) decrease the heat (Step 2); the send an appropriate control signal to the energy source (Step 3). There are preset operating norms that can only be adjusted through an external agency. For instance: <=5 Centigrade turn heating on; >=10 C turn cooler on. Independent of changes in the environment. Cybernetics suggests a continuous process of information exchange between a system and its environs. The above diagram shows that organisations should have good capabilities to collect data from the environment in which they operate (step 1): this involves tracking inputs to and outputs from the organisation, detecting ‘early warning signals’ that might indicate changing trends and patterns. This tracking and detecting information should be compared with available information about how the organisation should operate (step 2). This comparison must be carried out in a timely and considered manner. Finally, the organisation has to decide whether or not to boost a flagging organisation; to dampen unstable growth; or to do nothing (step 3). From Morgan (1997), pp 87

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Step 1 Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Step 2 Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87 Step 3 Question whether the operating norms are appropriate Step 2a

CORPORATE LEARNING Can organisations learn? Feedback and Control Single loop learning: In computing industry Step 1 Sell or lease faster & bigger computers Institutional ownership & operation Initiate appropriate R& D and marketing strategy Step 2 Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87 Step 3

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: In computing industry Step 1 Sell or lease faster & bigger computers Institutional ownership & operation Initiate appropriate R& D and marketing strategy Step 2 Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87 Step 3 Why institutional ownership & control? Step 2a

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: In computing industry Step 1 Sell or lease faster & bigger computers Institutional ownership & operation Initiate appropriate R& D and marketing strategy Step 2 Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87 Step 3 We should allow individual ownership & control. Step 2a

CORPORATE LEARNING Can organisations learn? Feedback and Control Single loop learning: Apple’s contribution Step 1 Sell cheaper &faster computers Exclusive in-house Software development Initiate appropriate R& D and marketing strategy Step 2 Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87 Step 3

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: IBM contribution Step 1 Sell cheaper &faster computers Exclusive in-house Software development Initiate appropriate R& D and marketing strategy Step 2 Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87 Step 3 We should allow others to develop Software for the PC Step 2a

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Question whether the operating norms are appropriate Step 1 Step 2 Step 3 Step 2a Double-loop learning is like a thermostat which can ask the question: Why have you set my operating norms as X C for hot and Y for cold? Although the thermostat questions it still goes on controlling the environment Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this question of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Question whether the operating norms are appropriate Step 1 Step 2 Step 3 Step 2a Brain as a metaphor for organisations is very relevant here in that the animal brain shows such a self-organising behaviour. Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this question of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Question whether the operating norms are appropriate Step 1 Step 2 Step 3 Step 2a Defensive reasoning and the doom loop. (Agyris 1998:85) Highly successful operatives, not used to failure create the information bottleneck – obstruct Step 2a. Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this question of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Knowledge Management: Best Practice (Extant knowledge); Reuse Innovation (New knowledge); Novel Usage Life Cycle: Creativity (Inception)  Growth  Currency  Maturity  Decay and Obsolescence Decay Pruning Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Question whether the operating norms are appropriate Step 1 Step 2 Step 3 Step 2a Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Knowledge Management (Creating & Sustaining plus Pruning) Learning Organisations Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Question whether the operating norms are appropriate Step 1 Step 2 Step 3 Step 2a Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this questioning of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87

CORPORATE LEARNING Can organisations learn? Feedback and Control Single/Double loop learning: Defensive reasoning and the doom loop. (Agyris 1998:85) Defensive Routines: 1. Hold back bad news 2. Amplify good news 3. Tell people what they want to hear Structures that encourage defensive reasoning: a. Formal structures; Rules b. Job descriptions c. Groupthink  we are the best!

Can organisations learn? Feedback and Control Knowledge Management:
CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Knowledge Management: Facilitate a transparent flow of information; Facilitate easy exchange of information; Facilitate easy recall of information; Facilitate access to forecasting, modelling and simulation systems What then? Allows an organisation to involve workers at all levels to share information; Allows an organisation to share information about the inputs and reactions to its outputs primarily from the customers

CORPORATE LEARNING Can organisations learn? Feedback and Control
Double loop learning: Feedback on current operations and existing norms Positive feedback: More leads to more; less leads to less; Negative feedback: More leads to less, and less to more. Who is it for? People who are good at defensive reasoning; People who cherish existing job descriptions, rules, and cliques

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Question whether the operating norms are appropriate Step 1 Step 2 Step 3 Step 2a Support the emergent organisation:An appropriate Strategic direction and new pattern of organisation

CORPORATE LEARNING Can organisations learn? Feedback and Control Double loop learning: Sense, scan, monitor environment Compare info. against operating norms Initiate appropriate action Question whether the operating norms are appropriate Step 1 Step 2 Step 3 Step 2a Emergent Structures Life-long learning; Quality Movement originated in Japan – everything has to be challenged: all norms to be examined

Double loop learning: How can you run an organisation that is constantly changing without setting clear goals and objectives? Cybernetics provides an answer. Behaviour of intelligent beings is governed or guided by a sense of vision, adherence to values or norms. Otherwise randomness prevails.

Double loop learning: Cybernetics provides an answer. Behaviour of intelligent beings is governed or guided by a sense of vision, adherence to values or norms. Otherwise randomness prevails. Reference points in a cybernetically controlled system that guide the behaviour of the system.

BUT CORPORATE LEARNING Can moorganisations learn? Feedback and Control
Double loop learning: Cybernetic quality Goals and targets reflect noble intentions BUT Achievements of goals and targets is to be moderated by an understanding of the limits that need to be placed on behaviour ( the reference points) And We have problems with this open system approach Humans not only learn to detect and correct errors in their own behaviour within standard norms, but also suggest changes to the norms themselves. In an organisational context this question of the norms has led to revolutionary changes: Apple Computers suggested everyone should own and operate their own computer - revolutionised the computer industry; CNN’s achieved goal of interactional ‘round-the-clock’ news, and coverage of breaking stories, has changed broadcasting; Canon’s small user-friendly photocopier with disposable parts, created a NEW NICHE in photocopier business British Airways’ globalisation initiative, partnering airlines on competing/complementary routes and frequency, changing airline businesses. A system that is capable of dynamic information processing, where the standards are expected to change as well, is the kind of intelligent organisation of the future. This involves another loop in learning - (step 2a), where norms and standards are challenged as well. From Morgan (1997), pp 87

CORPORATE LEARNING Can moorganisations learn? Feedback and Control
Double loop learning: Cybernetic quality Keep the strategic and operational dimensions in harmony: TQM ‘failed’ (initially): Strategic objective which required constant questioning was interrupted by single loop ‘operatives’ in the organisations. Continuous improvement needs a careful balance amongst what needs to be changed and at what speed.

Structures to support change;
CORPORATE LEARNING Can moorganisations learn? Feedback and Control Double loop learning: Cybernetic quality and Self organisation Structures to support change; Structures that support risk taking (if your solution does not work we wont fire you)

CORPORATE LEARNING USA: Hard/fast objectives clearly stated;
Can moorganisations learn? Feedback and Control Double loop learning: Cybernetic quality and Self organisation USA: Hard/fast objectives clearly stated; Japan: Explore and understand different objectives; be prepared to change.

CORPORATE LEARNING Can moorganisations learn? Feedback and Control
Double loop learning: Cybernetic quality Goals and targets reflect noble intentions BUT Achievements of goals and targets is to be moderated by an understanding of the limits that need to be placed on behaviour ( the reference points) And We have problems with this open system approach: Distribution of power in the organisation; Loss of control and expertise during the transition from old power structures to new power structures

CORPORATE LEARNING Nature of Environment Nature of task facing
Organisation of work Nature of authority Communications System Nature of employee commitment

Case Studies in Corporate Learning - Xerox
John Seely Brown formerly of Xerox Parc has suggested that: The research department has to do more than simply innovate new products. It must design technological and organisational ‘architectures’ that make a continuously innovating company possible ‘coproducing’ technological and organisational innovations. Xerox’s Palo Alto Research Center has had a goal: the most important invention that will come out of the research centre - the corporate research lab of Xerox Inc., will be the corporation itself.

For Seely Brown, four key-points redefine what is ‘technology’, ‘innovation’, and, indeed, research: 1. Research on new work practices is as important as research on new products 2. Innovation is everywhere; the problem is learning from it. 3. Research can’t just produce innovation; it must ‘coproduce’ it. 4. The research department’s ultimate innovation partner is the customer. 1. The focus of research should involve not only new products and technologies but also technology which can be used in different ways: e.g., the incorporation of IT in everyday objects - the wearable computer, the WAP and context-aware phone. 2. Office workers are expected to work according to standard workplace manuals; engineers are expected to repair machines following manuals. At Xerox Parc, researchers discovered that accounts clerks invented new ways of dealing with information about how bills were paid, especially with costing entries, which were informal in nature but highly effective. Xerox has developed a system called Button - bits of computer constructed code that can be modified with relative ease by non-professionals to create new applications. 3. Coproduction involves relaying the impact of innovative technology, by using multimedia systems from the innovators to senior management. The experts describe the innovation and its potential to transform people’s work - innovation ‘in use’. In the 1980s Xerox workers described the effect of digital copying on a work place to suggest to the managers to move from ‘light lens xerography’ (invented in the 1930s) to digital copying. 4. Coproducing with Customers: Xerox used to use the in-house prototyping technology and to coproduce mental models in-house. They claim to pursue the prototyping technology and the co-production of mental models with their customers as well. Essentially Xerox team protoype a need or use before a system is prototyped but with the understanding of how people work and how technology can make them work effectively. From Seeley Brown (1991:56-157).

Document  Lens  Project Image  Photorecptors – (Dry Toner)  Photocopy 1. The focus of research should involve not only new products and technologies but also technology which can be used in different ways: e.g., the incorporation of IT in everyday objects - the wearable computer, the WAP and context-aware phone. 2. Office workers are expected to work according to standard workplace manuals; engineers are expected to repair machines following manuals. At Xerox Parc, researchers discovered that accounts clerks invented new ways of dealing with information about how bills were paid, especially with costing entries, which were information in nature but highly effective. Xerox has developed a system called Button - bits of computer constructed code that can be modified with relative ease by non-professionals to create new applications. 3. Coproduction involves relaying the impact of innovative technology, by using multimedia systems from the innovators to senior management. The experts describe the innovation and its potential to transform people’s work - innovation ‘in use’. In the 1980s Xerox workers described the effect of digital copying on a work place to suggest to the managers to move from ‘light lens xerography’ (invented in the 1930s) to digital copying. 4. Coproducing with Customers: Xerox used to use the in-house prototyping technology and to coproduce mental models in-house. They claim to pursue the prototyping technology and the co-production of mental models with their customers as well. Essentially Xerox team protoype a need or use before a system is prototyped but with the understanding of how people work and how technology can make them work effectively. From Seeley Brown (1991:56-157).

Microprocessor Control of Moving Parts  Coordination; Cheaper Memories  Collect Fault Reports & Relayed to Service Engineers

Microprocessor Control of Moving Parts  Coordination; Cheaper Memories  Collect Fault Reports & Relayed to Service Engineers. Remote Invocation Communication (RIC) Program  Expert System RIC Knowledge Base: Performance data for the different mechanical parts of a photo-copier; Rules for predicting breakdown Inferences on the rule base and send a message to service engineers; Scheduling of service engineer’s resources (Maintenance fees were a large part of the revnue)

Photocopier  Facsimilie Production  Collating, Binding, 12 sides, 22 sides; Print time and date A high-value, multi-functional, self-diagnostic SYSTEM Any SYSTEM allows many-pathways of use and ABUSE. Xerox engineers made the copier ‘idiot proof’  designed the possibility of error. Complex user manuals – written by the designers of the copiers.

Photocopier  Facsimilie Production  Collating, Binding, 12 sides, 22 sides; Print time and date A high-value, multi-functional, self-diagnostic SYSTEM Any SYSTEM allows many-pathways of use and ABUSE. Xerox engineers made the copier ‘idiot proof’  designed the possibility of error. Complex user manuals – written by the designers of the copiers. The DEMON copier The user had to learn to operate a photo-copier!!!!! 20 minutes to clear paper jam. Even for minor problems engineers were called

USABILITY: Xerox researchers in other departments were videoed using the machines and the result was a video-nasty Only then the designers changed their mind. Changed the design dramatically

USABILITY: Changed the design dramatically Instead of the paper manuals we had nice GUI displays; error messages were displayed in English with extensive use of symbols. Paper jams now take 1 minute to clear.

CORPORATE LEARNING Learning to unlearn
Storytelling: Scientist's Perspective: John Seely Brown Learning to unlearn The curious thing is that with these exponential changes, so much of what we currently know is just getting to be wrong. So many of our assumptions are getting to be wrong. And so, as we move forward, not only is it going to be a question of learning but it is also going to be a question of unlearning. In fact, a lot of us who are struggling in large corporations know first hand that the hardest task is to get the corporate mind to start to unlearn some of the gospels that have made them successful in the past and that no longer will actually work in the future

Xerox: How copiers actually get repaired Now let me talk about a much more formal example, that led to an awful lot of re-thinking about how we looked at knowledge, and knowledge sharing, and knowledge capturing inside Xerox. And this was a story that actually changed my life, almost as much as that icon about “We participate and therefore we are” that I showed you earlier. When I came to Xerox, people discovered that I had actually been to Orlando before. I used to come down here to work for the military, in terms of training. Training facility for the military. Xerox’s Eureka So this all made us realize that the expert system that Xerox had wanted me to build, setting aside artificial intelligence computerized system, the expert systems are of course a social blind. Obviously, you need a community of practice. How could you tap that, how could you support that? And so on and so forth. This was the support. The trouble was that once the story was told, it would circulate in that region and be lodged in the community mind, in the community of practice here, but it wouldn’t pass on to anyone else unless it went out on to the ether. This led us to design a system called Eureka which was basically the idea now, thinking a little more carefully about how do we build a knowledge base that we could actually ship around the world, to support the 25,000 tech reps around the world.

Can knowledge be sticky, leaky and intangible? As I wind down. I want to talk about a paradox. And actually, this example came to me as a paradox. It is something very curious: you read all the literature on knowledge management. There are several articles that talk about how damn sticky knowledge is. If only HP knew what HP knew. Basically, knowledge is created in one part of the organization, and it has an almost impossible time moving from research to engineering, from engineering to manufacturing, and so on and so forth. And then on the other hand, knowledge is also leaky. Take a place like Palo Alto Research Center, knowledge had a very hard time moving to Rochester, but seamlessly slipped out to a little start-up called Apple, and to a second start-up called Microsoft, and the rest is history there. So some people talk about how leaky things are. The same things that are sticky also appear to be leaky. And then if you talking in terms of goodwill, how do you actually account for things? Basically we have this notion that knowledge is intangible, and this intangible asset, which, by the way, is of decidedly non-trivial dimensions. So here is something that basically is sticky, and is leaky, and is intangible, all at the same time. How can this be? I don’t want to give you a whole treatise on this, I’ve written a whole bunch of papers on it. But I think it comes back to something incredibly simple having to do with trust. It has an awful lot to do with why communities of practice are so good on one hand and yet, problematic on another. That is, that when you share a practice, when you have evolved a practice together in a community of practice, you have learnt to read each other, and basically because of that shared practice, there is a kind of trust that is built up, such that basically knowledge circulates amazingly well within a community of practice. JSB14

Case Studies in Corporate Learning - AMT
Task Actors Initiative Executive Management Principal Decision Senior Production Management Elaboration Finance Director Tech. Operations Manager Final Decision Design Engineering Manager; Human Resources Implementation Quality Engineering Manager; Production Planning Operation Production Manager Machine Operators From Corbett, Martin J. (1996). Designing Jobs. In (Ed.) Harry Scarbrough. The Management of Expertise. Houndsmills: Macmillan Business Press. pp

Producer Satisfy Customers; After Sales Service Achieved through enabling Management Dev. Team Process and Product Innovation  Increasing Technological Sophistication Board of Directors Process Innovation  Flexibility; Higher Quality; Lower Costs From Corbett, Martin J. (1996). Designing Jobs. In (Ed.) Harry Scarbrough. The Management of Expertise. Houndsmills: Macmillan Business Press. pp Reinterpretation Reduction in Creates Dependency on Shopfloor Users Employment; Utilisation of Skills Enables the Achievement of

Task Actors Initiative Executive Management Principal Decision Senior Production Management Elaboration Finance Director Tech. Operations Manager Final Decision Design Engineering Manager; Human Resources Implementation Quality Engineering Manager; Production Planning Operation Production Manager Machine Operators From Corbett, Martin J. (1996). Designing Jobs. In (Ed.) Harry Scarbrough. The Management of Expertise. Houndsmills: Macmillan Business Press. pp

Case Studies in Corporate Learning – Japanese Miracle
The Japanese model, much talked about in the early 1990’s as the model of innovation and self organisation, had a number of exemplars: Canon, Honda, Sharp and NEC. According to Professors Ikujiro Nonaka and Hirotaka Takeuchi, Hitotsubashi University (Japan), these organisations managed to change by exploiting the knowledge held within their organisations – their core competence- and engaged with the post-industrial society.

Professors Ikujiro Nonaka and Hirotaka Takeuchi, Hitotsubashi University (Japan) have argued that an enterprise which is thriving, has a bright future, is an enterprise which is (almost) always creating knowledge.

Creating new knowledge, or revising existing knowledge, requires the participation of the KNOWLEDGE CREATION CREW according to Nonaka and Takeuchi: knowledge practitioners front line employees – researchers and team leaders in different specialisms; knowledge engineers middle managers in R&D departments knowledge officers top managers of different divisions. Nonaka and Takeuchi, two professors of management who wrote the extensively cited Knowledge-Creating Company (1995), argue that the reason some of the Japanese companies have succeeded was that they focused on creating new knowledge. This started with informal meetings between the practitioners within an organisation to share knowledge across and within disciplines, followed by the ‘creation’ of new concepts and their justification. The next step was the development of the archetype followed by ‘cross-levelling of knowledge’ across the organisation. The knowledge engineers facilitate the discussion amongst the practitioners which leads to the development of archetypes. The knowledge engineers also kept the knowledge officers informed by passing on the essence of the discussions and key features of the archetypes. This close interaction between the knowledge creating ‘crew’, the practitioners, engineers and officers, was by and large self-motivated and its goal was to precipitate change within the organisation.

CORPORATE LEARING Case Studies in Corporate Learning – Japanese Miracle Canon succeeded by focusing on ‘a small multi-feature product [copier] that could be used by anyone and produced at minimum cost’. This involved the knowledge creation crew at Canon leveraging knowledge. Canon found in the early 1980s that the copier market (mainly the office market) was getting saturated. They wished to expand the market to include domestic customers, small offices, professionals, etc. The new market needed a small, light inexpensive ($1000 as opposed to $5000) easy to use copier, without compromising quality, and as near as maintenance-free as possible. Canon assembled a cross-disciplinary feasibility team comprising R&D experts, production engineers, marketing specialists and product designers. They asked two questions: 1. Why are plain paper copiers so expensive? 2. Why do copiers need so much servicing? They found that most copiers use a ‘complicated, delicate imaging mechanism’ that needed regular servicing. The photosensitive drum and its surrounding mechanism accounted for over 95% of copier service problems. The feasibility team came up with the radical solution that the drum and its surrounding mechanism should be made disposable, so that after making a certain number of copies the user would insert a fresh replacement unit. The feasibility task force was then followed by the mini-copier task force comprising nearly 200 scientists, engineers and marketing specialists. The task force had two groups, R&D and production engineering, and had an overall chief, supported by an advisory group, marketing group, sales software group, product quality appraisal group and product cost appraisal group. From Nonaka and Takeuchi (1995: )

The knowledge ‘creation’ crew at Honda started to think about automobile evolution during the 1980’s and started to design an automobile with more room for humans and less for the machine. New knowledge was required for an automobile which was short in length and tall in height, a concept that was named Tall Boy. This design requirement for Honda’s Tall Boy was contrary to the conventional wisdom of the time which focused on long low sedans. The knowledge which was created in order to build Tall Boy was obtained from the researchers and designers within Honda - the knowledge practitioners - through informal discussions, exchange of technical drawings, research papers on materials and machines, and the minutes of interminable real (face-to-face) meetings or virtual meetings through computers. The knowledge engineers and officers played roles similar to that of Canon’s in leveraging the new knowledge into a product.

Case Studies in Corporate Learning –
CORPORATE KNOWLEDGE Case Studies in Corporate Learning – Japanese Miracle Organisation Core Competence New Business Areas Canon Imaging, optics, microprocessor controls Copiers, laser printers, cameras, scanners Honda Engines, power turbines Automobiles, motorbikes, lawn mowers, generators NEC VLSI, systems integration Infotainment, office systems Sharp Smart white goods Multimedia, Personal Office Assistants The Japanese model, much talked about in the early 1990’s had a number of exemplars: Canon, Honda, Sharp and NEC. The managed to change by exploiting the knowledge held within their organisations – their core competence- and engaged with the post-modern society: (Nonaka & Takeuchi, 1995:47)

CORPORATE KNOWLEDGE Knowledge Creation Crew:
Is selected from different specialisms in the organisation; Works at different levels of organisation – undertakes research projects (PRACTITIONERS); commissions new research (ENGINEER); comments on new products (PRACTITIONERS); make executive decisions (OFFICERS) The Japanese model, much talked about in the early 1990’s had a number of exemplars: Canon, Honda, Sharp and NEC. The managed to change by exploiting the knowledge held within their organisations – their core competence- and engaged with the post-modern society: (Nonaka & Takeuchi, 1995:47)

CORPORATE KNOWLEDGE Knowledge Spiral at SHARP
Product Evolution Calculator Fax VCR 1985’s 1970’s Mask ROM Liquid Crystal Display CMOS Semi-conductor Opto-device 1990’s Electronic Organiser Home Fax Word Processor LCD TV Components Technology

CORPORATE KNOWLEDGE Knowledge Spiral at SHARP
2000 Product Evolution Personal Office Assistant; High Definition Television; Multimedia Systems 1980’s Calculator Fax VCR 1995’s 1985’s 1970’s Flash Memory;TFT; LCD; Solar Power ?? Mask ROM Liquid Crystal Display CMOS Semi-conductor opto device 1990’s Electronic Organiser Home Fax Word Processor LCD TV Components Technology ????

CORPORATE KNOWLEDGE Knowledge Spiral
Products/Services Scientific Progress & Technical Change Social Attitudes

KNOWLEDGE WORK & SOCIETY
Officer Leveraged Knowledge Engineer According to Philip Gill: ‘In general, knowledge is part of a continuum that KM practitioners usually depict as a pyramid. Data, the largest component, forms the base, information is the middle level, and knowledge is at the top. To distinguish among the three, think of data as raw numbers and text gathered from many sources. Information is data that has been ordered and put in context, whether in an electronic human resources (HR) system, an accounting spreadsheet or the pages of a magazine. Knowledge adds even more value, containing the expressly human contributions of synthesis and experience. Some theorists talk of "wisdom" as a fourth level of corporate knowledge. As in real life, wisdom is hard to define, but it would include the ability to tell what is true and sensible, as well as the ability to understand knowledge and gain useful insights for acting upon it. "[American philosopher] William James defined wisdom as ‘knowing what to ignore.’ Perhaps it is better defined as being able to decide what is worth knowing," says Stowe Boyd, principal strategist and chief knowledge officer for the Knowledge Capital Group Inc. of Austin, Texas. "In a world awash in low-grade information, being able to reject the inessential has never been more relevant." Gill, Philip J. (2001) ‘On the Trail of Knowledge - First you must discover what knowledge is and where in your company it is located.’ Knowledge Management Magazine (January 2001) ( site visited 5 Januray 2001) Practitioner Document DB ‘Artefact’ DB

Peter Drucker introduced the terms knowledge work and knowledge worker in the 1960’s. The term knowledge management refers to the management of the knowledge of the knowledge-workers. According to Philip Gill: ‘In general, knowledge is part of a continuum that KM practitioners usually depict as a pyramid. Data, the largest component, forms the base, information is the middle level, and knowledge is at the top. To distinguish among the three, think of data as raw numbers and text gathered from many sources. Information is data that has been ordered and put in context, whether in an electronic human resources (HR) system, an accounting spreadsheet or the pages of a magazine. Knowledge adds even more value, containing the expressly human contributions of synthesis and experience. Some theorists talk of "wisdom" as a fourth level of corporate knowledge. As in real life, wisdom is hard to define, but it would include the ability to tell what is true and sensible, as well as the ability to understand knowledge and gain useful insights for acting upon it. "[American philosopher] William James defined wisdom as ‘knowing what to ignore.’ Perhaps it is better defined as being able to decide what is worth knowing," says Stowe Boyd, principal strategist and chief knowledge officer for the Knowledge Capital Group Inc. of Austin, Texas. "In a world awash in low-grade information, being able to reject the inessential has never been more relevant." Gill, Philip J. (2001) ‘On the Trail of Knowledge - First you must discover what knowledge is and where in your company it is located.’ Knowledge Management Magazine (January 2001) ( site visited 5 Januray 2001)

Maximise the Enterprise’s knowledge related effectiveness: Governance Functions Staff Functions Operational Functions Valorization: Realising the value of knowledge. Knowledge Management Handbook – J Leibowitz.

The term knowledge was usually used in the context of research and development – knowledge based on theory and laboratory experience. Drucker, Nonaka and Takeuchi, and others have extended the scope of the term by including knowledge based on experience and based on practice. The term Knowledge work was coined to distinguish this kind of work from manual work. According to Philip Gill: ‘In general, knowledge is part of a continuum that KM practitioners usually depict as a pyramid. Data, the largest component, forms the base, information is the middle level, and knowledge is at the top. To distinguish among the three, think of data as raw numbers and text gathered from many sources. Information is data that has been ordered and put in context, whether in an electronic human resources (HR) system, an accounting spreadsheet or the pages of a magazine. Knowledge adds even more value, containing the expressly human contributions of synthesis and experience. Some theorists talk of "wisdom" as a fourth level of corporate knowledge. As in real life, wisdom is hard to define, but it would include the ability to tell what is true and sensible, as well as the ability to understand knowledge and gain useful insights for acting upon it. "[American philosopher] William James defined wisdom as ‘knowing what to ignore.’ Perhaps it is better defined as being able to decide what is worth knowing," says Stowe Boyd, principal strategist and chief knowledge officer for the Knowledge Capital Group Inc. of Austin, Texas. "In a world awash in low-grade information, being able to reject the inessential has never been more relevant." Gill, Philip J. (2001) ‘On the Trail of Knowledge - First you must discover what knowledge is and where in your company it is located.’ Knowledge Management Magazine (January 2001) ( site visited 5 Januray 2001)

Knowledge Society The knowledge workers, their managers, the owners of the enterprises, and the customers of the goods, services and information produced by the enterprises, are interdependent on each other. It has been claimed that these ‘players’, in their interactions, develop edifices of culture and a kind of a society: the knowledge society.

Knowledge Society Culture: Shared Values; Exchange System Kinship structures Society: Compliance – Punishment & Reward; Organised group of people

Knowledge Society Organisational structures and interactions within the organisation  Organisational Theory. Information Processing within the organisation Psychological theory.

Knowledge Society The knowledge society, like others, demands a system of recruitment, values and their transmission from one generation to the next, and some means of enforcement and discipline. The implication of the knowledge society is that there may be times when the society will expect the individuals to subordinate their interests, and sometimes perhaps their existence, to what may be perceived by the more persuasive members of the community to be in the wider society’s best interests. The management of expertise, the key asset of the knowledge worker, appears to be the central concern amongst those who have reservations about the whole enterprise of the knowledge society. It is true that the 20th century heralded mass education - if one considers the sheer number of people throughout the world who partake of higher education and the lesser, yet perhaps equally significant number involved in research and development . The scientific methods and technological innovation protocols of the 20th century affect humanity on a global scale. There is the truly liberating impact of mass communication and telephony. We live in a global village where scientific discoveries can be reported with the same speed and exuberance as news is reported of political change and economic up- and down-turns.

Knowledge Society A society based on exchange of knowledge, based on structures that facilitate the exchange, and based on protocols for enforcing discipline and for rewarding achievements; Knowledge Society: Knowledge of an organisation? Do organisations have knowledge which is other than what individual members of the organisation have? It is true that the 20th century heralded mass education - if one considers the sheer number of people throughout the world who partake of higher education and the lesser, yet perhaps equally significant number involved in research and development . The scientific methods and technological innovation protocols of the 20th century affect humanity on a global scale. There is the truly liberating impact of mass communication and telephony. We live in a global village where scientific discoveries can be reported with the same speed and exuberance as news is reported of political change and economic up- and down-turns.

ORGANISATIONAL KNOWLEDGE
Individuals have knowledge: facts, rules, theories, beliefs; know-how, skills; meta-knowledge for criticising and innovating upon existing knowledge. Individuals use organisations for physical and intellectual sustenance: for testing their knowledge and learning things new. Organisations have structures for physically and intellectually supporting individuals. Organisations can deploy knowledge, make it obsolescent, help in innovation. .

Knowledge of the individuals permeates through organisations: Through hierarchies; Through matrices; Through networks; Knowledge permeates through these graphs (constellations of nodes and links) formal & informal mechanisms and processes. .

Is their any way, managerial or technological, by which the processes and mechanisms that facilitate the permeation of knowledge be harnessed ? Harnessing knowledge sometimes could mean responding to or precipitating changes in markets, fashions, belief and values. And, at other times harnessing knowledge may help in a campaign or struggle to contravene the belief and values of the individuals or other organisations .

The key question is how the knowledge of an individual or a group of individuals impacts on an organisation? There are a number of models in the knowledge management literature that help us to understand some of the ways in which how individuals or groups impact organisation (Seung et al 1999). Most of these models are based on a life-cycle analogy: Creation – Growth –Maturity – Utility – Death We will be studying one of these models due to Nonaka and Takeuchi. . Baek, Seung., Leibowitz, Jay., Prasad, Srinivas, Y., & Granger, Mary. (1999). ‘Intelligent agents for Knowledge Managements for Knowledge Management – Toward Intelligent Web-Based Collaboration within Virtual Teams’. In (Ed.) Jay Leibowitz. Knowledge Management Handbook. Boca Raton (Florida): CRC Press. Chapter 11:pp

Two dimensions of knowledge creation in organisation: explicit and tacit knowledge . Explicit Knowledge (OBJECTIVE) Knowledge of rationality (mind); Sequential knowledge (there and then); Digital knowledge (theory). Tacit Knowledge (SUBJECTIVE) Knowledge of experience (skills); Simultaneous knowledge (here and now); Analog knowledge (practice). Nonaka and Takeuchi have used the terms explicit and tacit knowledge to ‘develop a framework in which traditional and non-traditional views of knowledge are integrated into the theory of organizational knowledge creation’ (1995:59). (Table based on Table 3.1, pp 61)

Two dimensions of knowledge creation in organisation: explicit and tacit knowledge . The transmission of knowledge in an organisation? Before transmission starts, you must understand what you are transmitting and how will it be received. Do I have the knowledge which will benefit others or the organisation? (Ontological question) Is my knowledge in a suitable form to be transmitted or received? (Epistemological question) Nonaka and Takeuchi have used the terms explicit and tacit knowledge to ‘develop a framework in which traditional and non-traditional views of knowledge are integrated into the theory of organizational knowledge creation’ (1995:59). (Table based on Table 3.1, pp 61)

Dimensions of knowledge creation in an organisation . Dimension Type Explicit Symbolic Implicit Embodied Implicit/Tacit Ingrained Tacit Culturally acquired

Two dimensions of knowledge creation in organisation: explicit and tacit knowledge . Explicit Knowledge (OBJECTIVE) Articulated mainly as texts that use special languages of science and technology; Knowledge which is largely formalized, consensual and public; Knowledge available in informative texts, e.g., learned journals, technical reports and advanced textbooks, and in instructive texts, for instance, manuals, instruction leaflets. Tacit (SUBJECTIVE) Articulated usually through speech using the special languages but suffused with metaphors, analogies and similes; Knowledge which is largely informal, idiosyncratic and private; Statements, annual reports, inter-office memos, advertisements, product catalogues

. Invention: Many paths available Computing Technology: Choice between digital and analog; Chosen Technology: Digitial  Sequential and Parallel Chosen Technology: Sequential Silicon vs Germanium Chosen Technology: Silicon

Nonaka & Takeuchi’s Knowledge Conversion Modes Socialisation Sympathised Knowledge Externalisation Conceptual Internalization Operational Combination Systemic From Tacit Explicit Tacit Knowledge Explicit Knowledge To A possible relationship between Nonaka and Takeuchi and Seely Brown (1991) Socialization: A process of sharing experiences and thereby creating tacit knowledge such as shared mental models and technical skills: Nonaka and Takeuchi cite the example of ‘brainstorming camps’at Honda and of Matsushita which helped to capture the knowledge of ‘master bakers’. This appears to relate to Seely Brown’s 3rd principle of co-production which focuses on ‘how corporate research must prototype new mental models of the organisation and its business’ (1991:157). According to Seely Brown researchers must not only be encouraged to innovate but should learn to transmit the innovation throughout the organisation. This involves challenging outmoded background assumptions and creating new ways to communicate radical innovation. Externalisation: A process of articulating tacit knowledge into explicit concepts. In the examples used by Nonaka and Takeuchi, including Mazda’s ‘authentic sports car that provides and exciting and comfortable drive’, Honda’s Tall Boy, and Canon’s mini-copier, the focus was on customising technology wand work practices to meet the customers’ current and future needs. Externalisation relates to Seely Brown’s 4th principle: ‘The research department’s ultimate innovation partner is the customer’, and also to his 1st principle: ‘Research on new work practices is as important as research on new products’. Combination: A process of systematising concepts into a knowledge system and involves combining different bodies of explicit knowledge. All the four of Seely Bown’s principles appear to be related to the notion of combination indirectly. Internalisation: A process of creating shared mental models or technical know how, models and know how that were created through socialisation, externalisation, and combination. Internalisation is facilitated when knowledge is ‘verbalised or diagrammed into documents, manuals, or oral stories’ (1995:69). Here Seely Brown’s 2nd principle appears relevant: ‘Innovation is everywhere; the problem is learning from it’. The argument is that innovation is not the privileged activity of the research department: front line employees are involved in internalising the knowledge and applying it in situations which were not foreseen by the researchers. Summary: Nonaka and Takeuchi appear to focus on how organisations can improve their internal communications and how the knowledge officer’s view of the world is engineered by the knowledge engineers by motivating the knowledge practitioners and communicating the results of the endeavour to the knowledge officers. Seely Brown appears to have focussed on the research department, and by implication on knowledge practitioner, and on the customers. Nonaka and Takeuchi appear to have not a clear view of the customer or the practitioner and instead focus on the management aspects of innovation and research.

Nonaka & Takeuchi’s Knowledge Conversion Modes Field Building When workers within and across disciplinary boundaries interact with each other: the workers build a field of interaction; the field facilitates the sharing of each others experience and their views about the organisation they work in –products, services, vision; the workers engage in a dialogue the workers translate an external situation into an internal model or simulation of the world; the workers build a mental model and share the model

Nonaka & Takeuchi’s Knowledge Conversion Modes Dialogue When workers within and across disciplinary boundaries interact with each other: the workers engage in a dialogue the workers share knowledge by using partial similarities between their rather different backgrounds  analogies Horse is to zebra as dog is to ? the workers also carry over knowledge from one domain to another  metaphors (from the Greek meaning ‘to carry over) atomic system is like the planetary system

Nonaka & Takeuchi’s Knowledge Conversion Modes Linking Explicit Knowledge When workers within and across disciplinary boundaries interact with each other: the workers engage in using analogies and metaphors the workers start linking knowledge which has been articulated and knowledge which they have created  networking; the workers start creating new products and services

Nonaka & Takeuchi’s Knowledge Conversion Modes Learning by doing When workers within and across disciplinary boundaries interact with each other: the workers start linking knowledge which has been articulated and knowledge which they have created  networking; the workers start learning from doing and constructing their implicit knowledge to face the new situation

Nonaka & Takeuchi’s Knowledge Conversion Modes Dialogue Socialisation Externalisation Field Building Linking Explicit Knowledge Socialization: A process of sharing experiences and thereby creating tacit knowledge such as shared mental models and technical skills. Nonaka and Takeuchi cite the example of ‘brainstorming camps’, for example at Honda to solve difficult problems in development projects which are held outside the workplace. This kind of camps are essential also for building trust amongst the different employees. The other example in Nonaka and Takeuchi is that of Matsushita which helped to capture the knowledge of ‘master bakers’ such that the process for making dough (for making bread) could be mechanised. Externalisation: A process of articulating tacit knowledge into explicit concepts. According to Nonaka and Takeuchi, this kind of conversion takes the shape of ‘metaphors, analogies, concepts (sic) hypotheses, or models’. Language is not much help here as linguistic ‘expressions are often inadequate, inconsistent, and insufficient’ (1995:64). Hence, externalisation is typically seen in the process of concept creation, for example, by combining ‘deduction and induction’, and is triggered by dialogue or collective reflection. Examples here include Mazda’s ‘authentic sports car that provides and exciting and comfortable drive’, Honda’s Tall Boy, and Canon’s mini-copier. Combination: A process of systematising concepts into a knowledge system and involves combining different bodies of explicit knowledge. These bodies include documents, meetings, telephone conversations or electronic mail. Combination involves ‘sorting, adding, combining and categorising’ and may lead to ‘new knowledge’ (1995:67). Here techniques of data mining on the one hand and ‘micro merchandizing’ (providing timely and precise recommendation on the mix of merchandise and sales promotion). Here the examples include Asahi’s Super Dry Beer, which included not only the beer makers but also the sales promotion staff tasting the beer: a beverage for people with active minds and lives and a beverage which was ‘rich and sharp’ in taste; NEC’s PC-8000 is another, very important example wherein the two bodies of knowledge, ‘computing’ & ‘communication’, were used to produce a personal computer with the capability of a distributed processor. Internalisation: A process of creating shared mental models or technical know how, models and know how that were created through socialisation, externalisation, and combination. Internalisation is facilitated when knowledge is ‘verbalised or diagrammed into documents, manuals, or oral stories’ (1995:69). General Electric’s Answer Centre comprising about 1.5 million potential problems and solutions, gathered respectively from customers and experts, can help a development team to ‘re-experience’ what the Answer Centre’s operators experienced. Listening to other people’s success stories can also engender internalisation. Internalization Combination Learning by Doing

Nonaka & Takeuchi’s Knowledge Conversion Modes Socialisation Sympathised Knowledge Externalisation Conceptual Internationalization Operational Combination Systemic From Tacit Explicit Tacit Knowledge Explicit Knowledge To A possible relationship between Nonaka and Takeuchi and Seely Brown (1991) Socialization: A process of sharing experiences and thereby creating tacit knowledge such as shared mental models and technical skills: Nonaka and Takeuchi cite the example of ‘brainstorming camps’at Honda and of Matsushita which helped to capture the knowledge of ‘master bakers’. This appears to relate to Seely Brown’s 3rd principle of co-production which focuses on ‘how corporate research must prototype new mental models of the organisation and its business’ (1991:157). According to Seely Brown researchers must not only be encouraged to innovate but should learn to transmit the innovation throughout the organisation. This involves challenging outmoded background assumptions and creating new ways to communicate radical innovation. Externalisation: A process of articulating tacit knowledge into explicit concepts. In the examples used by Nonaka and Takeuchi, including Mazda’s ‘authentic sports car that provides and exciting and comfortable drive’, Honda’s Tall Boy, and Canon’s mini-copier, the focus was on customising technology wand work practices to meet the customers’ current and future needs. Externalisation relates to Seely Brown’s 4th principle: ‘The research department’s ultimate innovation partner is the customer’, and also to his 1st principle: ‘Research on new work practices is as important as research on new products’. Combination: A process of systematising concepts into a knowledge system and involves combining different bodies of explicit knowledge. All the four of Seely Bown’s principles appear to be related to the notion of combination indirectly. Internalisation: A process of creating shared mental models or technical know how, models and know how that were created through socialisation, externalisation, and combination. Internalisation is facilitated when knowledge is ‘verbalised or diagrammed into documents, manuals, or oral stories’ (1995:69). Here Seely Brown’s 2nd principle appears relevant: ‘Innovation is everywhere; the problem is learning from it’. The argument is that innovation is not the privileged activity of the research department: front line employees are involved in internalising the knowledge and applying it in situations which were not foreseen by the researchers. Summary: Nonaka and Takeuchi appear to focus on how organisations can improve their internal communications and how the knowledge officer’s view of the world is engineered by the knowledge engineers by motivating the knowledge practitioners and communicating the results of the endeavour to the knowledge officers. Seely Brown appears to have focussed on the research department, and by implication on knowledge practitioner, and on the customers. Nonaka and Takeuchi appear to have not a clear view of the customer or the practitioner and instead focus on the management aspects of innovation and research.

CORPORATE KNOWLEDGE Knowledge Spiral
Dialogue Socialization Externalisation Linking Explicit Knowledge Field Building Internalisation Combination Learning by doing

Knowledge creation in organisations – A conveyer belt with external links? Sharing tacit knowledge Creating concepts Justifying concepts Building archetypes Cross Levelling Knowledge

Customers & Performers and Knowledge Transformation
ORGANISATIONAL KNOWLEDGE Customers & Performers and Knowledge Transformation Performers Customers Socialisation Externalisation Customers Performers De Michelis, Giorgio. (2001). ‘Co-operation and Knowledge Creation’. In (Eds.) Ikujiro Nonaka &Toshihiro Nishiguchi (2001) Knowledge Emergence. Oxford & New York: Oxford University Press. pp (Figure 8.2). Giorgio has analysed the ‘knowledge creation within organizations performing various co-operative processes concurrently, where knowledge creation among organization members must also be considered’ (2001:125). The author’s focus on how computer-based systems may be used in the ‘knowledge creation processes’. He has tested his hypothesis by observing an Italian small private organisation involved in industrial design – Domus Academy. Giorgio is one of the most recently reported instance of the use of Nonaka and Takeuchi’s knowledge transformation model that emphasises the conversion spiral that involves the transformation of tacit and explicit knowledge and the exchange of tacit knowledge amongst workers and the combination of explicit knowledge. In Giorgio, we find the notion of customers and workers mapped onto customers and performers – performers involved in the evolution of (new) industrial design Internalisation Combination

Knowledge creation in organisations- A 5 Phase Model Phase Requirement Sharing Tacit Knowledge Self-organizing team; Creative chaos injected by the management Creating Concepts Autonomy for the workers; Fluctuation and chaos may help Justifying Top management to formulate justification criteria; Redundancy of information. Building an Archetype Dynamic co-operation across organisations and amongst workers. Cross-levelling knowledge Intra-organizationally: autonomy; chaos. Inter-organizationally: dynamic interaction.

Combination Knowledge: Two disparate, very different and apparently sharing nothing in common technologies or sciences when put together lead to an entirely new technology/science. Biology + Chemistry Biology + Physics Biochemistry; Biophysics; Molecular Biology Thermodynamics+ Rotary/Linear Motion Automobile technology; Computing + Communications Information Technology Nonaka and Takeuchi (1995:72; Figure 3-4).

Modern Management: Distinguishes between management and ownership  Asset/Labour Management. Post-industrial society: Distinguishes between the ownership of knowledge and the management of knowledge Nonaka and Takeuchi (1995:72; Figure 3-4).

Nonaka & Takeuchi’s Knowledge Conversion Modes Process Task Methods/Techniques Socialisation Tacit  Tacit Share experience; Transfer skills; Explain models Brain storming; suggestion boxes; best employees ExternalisationTacit  Explicit Articulate knowledge; concepts, hypotheses Dialogue; collective reflection InternalisationExplicit  Tacit Transfer/acquire knowledge: by ‘doing’; by teaching; project work Experience documentation; oral stories Combination Explicit  Explicit Systematise knowledge; Evaluation; Testing Document Management; creating, revising, archiving and pruning learned papers, technical reports, design documents

Knowledge Creation Crew: Practitioners Practitioner Type Task Focus Exemplars Operators Gather & accumulate knowledge Tacit Knowledge Auto-test drivers, Sales Force, Technicians Specialists Gather, accumulate & create knowledge Explicit Knowledge R&D scientists, software/design engineers, planners, market researchers

Knowledge Creation Crew: Engineers Engineer Type Task Focus Exemplars Middle Managers/ Consultants Convert knowledge (explicit tacit), synthesise Explicit/ Implicit Innovators; Facilitator

Knowledge Creation Crew: Officer Officer Type Task Focus Exemplars Top-line managers/ Investors Create knowledge; envision Explicit CEOs, Venture Capitalists

INSTRUMENTS FOR KNOWLEDGE MANAGEMENT
ASSESSING organisational knowledge; DEVELOPING and FOSTERING knowledge; SHARING knowledge; EVALUATING knowledge.

DEVELOPING and FOSTERING knowledge Within Organisations Facilitate: On-the-job training; Learning by doing; Job rotation; Career development Conduct: Customer Satisfaction research; Market research; Organise: Strategic Technology Study; R&D activities; External seminars & training; Evaluate: Projects; People. Promote: Cross-disciplinary interaction

DEVELOPING and FOSTERING knowledge across Organisations Monitor: Market activities; R&D activities; Technology developments Network: (at) Trade Shows, State-of-the-Art seminars; Technical Conferences;

DEVELOPING and FOSTERING knowledge across Organisations Knowledge Bottleneck: Where there are people there is not much new knowledge; where there is new knowledge, there are not many people.

DEVELOPING and FOSTERING knowledge across Organisations Knowledge Bottleneck: People don’t find it easy to exchange information with each other: for social, economic, technological and linguistic reasons; time, money are key factors.

DEVELOPING and FOSTERING knowledge across Organisations Knowledge Bottleneck: Currently, it is not possible to exchange information in a timely, convenient and cost-effective manner.

BP’S VIRTUAL TEAMWORK PROGRAM BP Exploration, a division that found and produced oil/gas, organised its regional assets into 42 separate assets - a federation of assets where each asset would have the freedom to develop processes and solutions appropriate to their particular problems. BP Exploration have combined the agility of a small company with the resources of a large one. BP Exploration launched an 18-month project called The Virtual Teamwork Programme: to develop effective ways for members of teams to collaborate across different locations.

BP’S VIRTUAL TEAMWORK PROGRAM A mobile drilling ship was disabled in the North Sea due to equipment failure. The equipment was brought in front of a camera linked by satellite to one of the BTVT stations; a remote expert on the mainland diagnosed the problem and guided the on-board engineers to fix the equipment.

BP’S VIRTUAL TEAMWORK PROGRAM Andrew Project: BP worked with collaborators (design and construction firms) to build a new oil platform. They used the VT’s application sharing features to write joint communications.

BP’S VIRTUAL TEAMWORK PROGRAM The aim of the VT Program was to let knowledgeable people talk to each other, not to try to capture their expertise - a network of people. Hardware and software for the VT Program: Desktop video conferencing equipment; Multimedia ; Application (programs) sharing; Shared chalkboards; Document scanner; Tools to record videoclips; Groupware; Web browser; and Satellite links.

Davenport & Prusaka (1998:24)

KNOWLEDGE PROJECT SUCCESS INDICATORS A knowledge-oriented culture Technical and organisational infrastructure Senior management support A link to economics or industry value A modicum of process information Clarity of vision and language Non-trivial motivational aids Some level of knowledge structure Multiple channels of knowledge transfer Davenport and Prusaka (1998: )

Davenport and Prusack (131) Hoover: Based on a set of keywords, it searches selected external databases for information deemed useful for a particular use or group within an organisation. The user need not supply/specify the sources. Grapevine: Notes is then used to disseminate the information. Monsanto uses Hoover + Notes to disseminate external market knowledge to its scientists.

Notes-based knowledge management is often accompanied by other tools especially for managing external knowledge. Davenport & Pruska (133) Grapevine, like Hoover, searches for external knowledge but it has a more structured set of terms - a knowledge chart - a hierarchical map of terms specific to an organisation and their interrelationship. Grapevine has facilities to comment on and prioritise external data before the knowledge is disseminated to all concerned.

Knowledge is interpreted and evaluated information. To store knowledge you must have a model of the structure and function of knowledge. This structural and functional knowledge has to be converted into an information model and onto a data model. The data model then helps to build a data base of documents comprising the knowledge of an organisation or a group of individuals. Davenport & Pruska (133) Grapevine, like Hoover, searches for external knowledge but it has a more structured set of terms - a knowledge chart - a hierarchical map of terms specific to an organisation and their interrelationship. Grapevine has facilities to comment on and prioritise external data before the knowledge is disseminated to all concerned.

A data base is built to systematically organise and store the data of an enterprise. A knowledge base is built to systematically systematically store the knowledge of an enterprise. A collection of files is not a collection of knowledge: It is data that has to be processed into information, and information interpreted as knowledge Davenport & Pruska (133) Grapevine, like Hoover, searches for external knowledge but it has a more structured set of terms - a knowledge chart - a hierarchical map of terms specific to an organisation and their interrelationship. Grapevine has facilities to comment on and prioritise external data before the knowledge is disseminated to all concerned.

ACCENTURE KNOWLEDGE NETWORK Management consultants Accenture (formerly Arthur Andersen) have developed a web-site, Client Knowledge Network, which provides ‘implementation project teams, facing similar challenges in comparable business environments, with a means to easily communicate and share knowledge assets. It can also serve as the primary repository for all project team deliverables’. Arthur Andersen have reportedly used the Network in successfully building enterprise-wide information system for a Venezuelan start-up oil company. Experienced professionals working in various areas within Andersen Consulting update the knowledge of the Network. In a narrow sense, the Network provides easy access to documents within the organisation to Andersen Consulting employees on demand. The technical make-up of the Network includes Internet security systems (so-called firewalls), proprietary software provided by, say, Microsoft Corp. including their Office Systems, and Internet access and browsing systems provided either by Microsoft or Netscape.

ACCENTURE KNOWLEDGE NETWORK Project teams: Multidisciplinary; Fixed-time contract; Individuals (in the time) come together for for a short time  ready for the next contract Arthur Andersen have reportedly used the Network in successfully building enterprise-wide information system for a Venezuelan start-up oil company. Experienced professionals working in various areas within Andersen Consulting update the knowledge of the Network. In a narrow sense, the Network provides easy access to documents within the organisation to Andersen Consulting employees on demand. The technical make-up of the Network includes Internet security systems (so-called firewalls), proprietary software provided by, say, Microsoft Corp. including their Office Systems, and Internet access and browsing systems provided either by Microsoft or Netscape.

ACCENTURE KNOWLEDGE NETWORK Project teams: How to manage knowledge outside of an organisational context? Implicit  Explicit for a group of people working together for a short time period? Arthur Andersen have reportedly used the Network in successfully building enterprise-wide information system for a Venezuelan start-up oil company. Experienced professionals working in various areas within Andersen Consulting update the knowledge of the Network. In a narrow sense, the Network provides easy access to documents within the organisation to Andersen Consulting employees on demand. The technical make-up of the Network includes Internet security systems (so-called firewalls), proprietary software provided by, say, Microsoft Corp. including their Office Systems, and Internet access and browsing systems provided either by Microsoft or Netscape.

E&Y’ KM NETWORKS The management consultants Ernst & Young (E&Y) have their own Knowledge Management Networks maintained by a knowledge manager within the consultancy. This is used to track the expertise of individuals within the organisation and to facilitate co-operation across E&Y for particular assignments. It has been reported that the Network was used by E&Y’s clients, including Honeywell , Motorola and Hughes, to pool the knowledge of their own employees to bid for contracts. Hofmann La Roche used the Network to reduce the time it takes to prepare applications for new drugs; here, not only was the knowledge of experts within Hoffman La Roche harnessed, the Network was also used to build a knowledge base of the expertise of the various national drugs regulatory authorities. E&Y also use the Network to produce PowerPacks comprising the details of the qualifications and sales presentations of other consultants within E&Y.

NETWORKS? All project teams work under a contract with the client. The evidence of outputs (reports/artefacts) produced by the knowledge workers is used by the organisation to charge the clients. Human-resources departments keep a ‘record’ of each employee It has been reported that the Network was used by E&Y’s clients, including Honeywell , Motorola and Hughes, to pool the knowledge of their own employees to bid for contracts. Hofmann La Roche used the Network to reduce the time it takes to prepare applications for new drugs; here, not only was the knowledge of experts within Hoffman La Roche harnessed, the Network was also used to build a knowledge base of the expertise of the various national drugs regulatory authorities. E&Y also use the Network to produce PowerPacks comprising the details of the qualifications and sales presentations of other consultants within E&Y.

NETWORKS? The record: Name, address, salary, Qualifications Previous Experience – outside the current organisation Annual Appraisals It has been reported that the Network was used by E&Y’s clients, including Honeywell , Motorola and Hughes, to pool the knowledge of their own employees to bid for contracts. Hofmann La Roche used the Network to reduce the time it takes to prepare applications for new drugs; here, not only was the knowledge of experts within Hoffman La Roche harnessed, the Network was also used to build a knowledge base of the expertise of the various national drugs regulatory authorities. E&Y also use the Network to produce PowerPacks comprising the details of the qualifications and sales presentations of other consultants within E&Y.

NETWORKS: ‘? KM systems that have the capability of building ‘Yellow Pages’ automatically. How? By analysing document repositories of organisations from HR records to Project output records It has been reported that the Network was used by E&Y’s clients, including Honeywell , Motorola and Hughes, to pool the knowledge of their own employees to bid for contracts. Hofmann La Roche used the Network to reduce the time it takes to prepare applications for new drugs; here, not only was the knowledge of experts within Hoffman La Roche harnessed, the Network was also used to build a knowledge base of the expertise of the various national drugs regulatory authorities. E&Y also use the Network to produce PowerPacks comprising the details of the qualifications and sales presentations of other consultants within E&Y.

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