Knowledge Management Chapters 7-8 - Artificial Intelligence ...

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Knowledge Management

Chapters 7
-
8


By:

Mikhail
Averbukh


Scott Brown

Brian Chase

Outline


Chapter 7


Research that Reinvents the Corporation


Chapter 8


Managing Professional Intellect


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 It’s 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




Can’t 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)


IT’s 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: Fuji’s 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 employee’s grind a new set of
eyeglasses so they can ‘see the world in
a new way’”



You can’t just tell people about a new
insight, you have to let them experience
it.

Coproducing Innovation


Innovating with the Customer


“Research’s 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 It’s Copiers


In the early 1980’s 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 it’s
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 Knowledge


Know
-
what


Mastery of a discipline


Achieved through extensive training


Essential, but not sufficient for success

Level 2 of Professional Intellect


Advanced Skills


Know
-

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 Understanding


Know
-
why


Deep knowledge


Understanding cause
-
and
-
effect
relationships


Move beyond the execution of tasks

Level 4 of Professional Intellect


Self
-
motivated creativity


Care
-
why


Consists of will, motivation, and
adaptability to success


Not always necessary


Organizations that nurture care
-
why’s
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


Organize around intellect



ROI considerations

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
organization’s system knowledge


Work is organized around therapists


Inverting Organizations

Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Person
1
Individual Professionals
Support Staff
CEO
In Inverted organizations, field
experts become bosses

Creating Intellectual Webs


Spider’s 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

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

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

Threatened economic
sanctions to those who
did not contribute

Created a norm of
information sharing and
openness

Incentives

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
K’Netix

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
.