Knowledge Management Chapters 7-8

By: Mikhail Averbukh Scott Brown Brian Chase

Outline

Chapter 7

Research that Reinvents the Corporation Managing Professional Intellect

Chapter 8

Additional Research
Toyota Case Pitfalls of Social Networking Biotech Case

Chapter 7 Outline

Pioneering Research Technology Gets Out Of The Way Harvesting Local Innovation Coproducing Innovation Innovating with the Customer PARC: Seedbed of the Computer Revolution How Xerox Redesigned Its Copiers

Research that Reinvents the Corporation

Published in 1991 By John Seely Brown Former Director of Xerox Research Center, PARC (Palo Alto Research Center) Real case study example

The most important invention that will come out of the corporate research lab in the future will be the corporation itself.

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

Pioneering Research

Learning from innovation

Cant just produce innovation Ultimate innovation partner is the customer

Tailoring innovation to the needs of the customers.

Technology Gets Out of the Way

Remote Interactive Communication (RIC) ITs transformation of the copier Complex computing and communication devices- Sensors that collect information Artificial intelligence techniques Customer - never see the machine fail Xerox - way to listen to the customer

Technology Gets Out of the Way

The

technology itself will become invisible

Example:

Photocopier Example: GPS devices in cars Example: Fujis interactive photo editing machine at Walgreens
A flexible, versatile device that is able to meet many different customer needs

Harvesting Local Innovation

Getting involved in the anthropology of work

PARC was studying work practices throughout companies (Ex. Payroll) Employees were inventing innovative work practices, while not even realizing it, to reach their goals

Harvesting Local Innovation

Customized user-system program (CUSP)

Allows users to modify the system themselves

Buttons - people without a lot of training in computers can make modifications Xerox tech reps learn most out in the field

Coproducing Innovation

Communicate fresh insights so that others can grasp their significance - tech transfer Uncover features that need to change Conceptual envisioning environment

Envision new products before they are actually built

Share understanding with partners to coproduce new technologies and practices

Coproducing Innovation

Help employees grind a new set of eyeglasses so they can see the world in a new way

You cant just tell people about a new insight, you have to let them experience it.

Coproducing Innovation
Innovating

with the Customer Researchs ultimate partner in coproduction is the customer Customers may be unaware of their needs Product may not yet exist

PARC: Seedbed of the Computer Revolution

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

How Xerox Redesigned Its Copiers

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

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

Managing Professional Intellect

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

Outline
What

is Professional Intellect? Developing Professional Intellect Leveraging Professional Intellect Inverting organizations Creating Intellectual webs

What is professional Intellect?

4

levels Cognitive Knowledge Advanced Skills Systems Understanding Self-motivated Creativity

Level 1 of Professional Intellect

Cognitive
Mastery

Knowledge

Know-what

of a discipline Achieved through extensive training Essential, but not sufficient for success

Level 2 of Professional Intellect

Advanced
Know

Skills

- how Ability to apply the rules of a discipline to complex problems The most widespread value creating professional skill level

Level 3 of Professional Intellect

Systems
Deep

Understanding

Know-why

knowledge Understanding cause-and-effect relationships Move beyond the execution of tasks

Level 4 of Professional Intellect

Self-motivated
Care-why
Consists

creativity

of will, motivation, and adaptability to success Not always necessary Organizations that nurture care-whys thrive Resides in the culture of an organization

Developing Professional Intellect

Recruit the best

the leverage of intellect

Force intensive early development

repeated exposure to the complex problems

Constantly increase professional challenges

push professional beyond the comfort zone

Evaluate the weed

internal competition and performance evaluations

Leveraging Professional Intellect

Boost problem-solving abilities by capturing knowledge

Merrill Lynch knowledge base

Overcome reluctance to share information

Offer incentives
ROI considerations

Organize around intellect

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

Inverting Organizations
In Inverted organizations, field experts become bosses
Individual Professionals

Person 1

Person 1 Person 1 Person 1 Person 1

Person 1 Person 1 Person 1 Person 1

Support Staff
Person 1 Person 1 Person 1 Person 1 Person 1

Person 1

CEO

Creating Intellectual Webs

Spiders web : self-organizing network Brings people together to solve a particular problem Many consulting firms, investment banks, research consortia and medical teams use this approach.

Creating Intellectual Webs

In Spiders Webs, a few experts team up to meet a specific challenge
Specialists Client-relationship managers
Person 1 Person 1

Person 1

Person 1 Person 1 Person 1

Person 1

Person 1

Person 1 Person 1

Person 1

Person 1

Managing Professional Intellect

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

Toyota Case
Created a knowledge network with suppliers Faced several dilemmas:

Motivate self-interested people to participate Free Rider Problem Maximize efficiency of knowledge transfers

How

to effectively transfer tacit knowledge

How do you address these problems?

Toyota Case
Provided Information to suppliers
Heavily subsidized the network with knowledge and resources

Incentives
Threatened economic sanctions to those who did not contribute Created a norm of information sharing and openness

Toyota Case

Results
Increased efficiency High level of participation

No economic sanctions needed to date

Suppliers participate willingly

Pitfalls of Social Networking

The desire to protect Personal Intellectual Property The need to maintain external professional networking The social networking meme still need socializing

Meme cultural information that represent an idea that can be passed from one person to another.

Buckman Case

Buckman Laboratories KNetix Knowledge Network.

Started in 1992

Began with a corporate culture change that focused on knowledge sharing.

Buckman Case

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

Buckman Case

Infrastructure
Used network for both intra and inter-company communication. Contained virtual conference rooms, libraries, bulletin boards, etc.

Infostructure
Forum specialist organize and validate information before uploaded to knowledge base. Region focused forums for each segment of business.

Buckman Case

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

Summary
Knowledge networks require corporate cultural change.
Incentives are needed to get people to participate.

Consequences are needed to address the free-rider problem.

Sources

Creating and Managing a High Performance Knowledge-Sharing Network: The Toyota Case. Strategic Management Journal. By Jeffrey Dyer and Knetaro Nobeoka. Issue 21, year 2000. Three Potential Pitfalls of Corporate Social Networking. Gartner Group, 4 December 2007. By Brian Prentice. Knowledge management in practice: An exploratory case study. Technology Analysis & Strategic Management; September 1999. By Shan Pan and Harry Scarbrough.