Innovation, Knowledge Management and Organisational Capability ACT KM Forum Canberra 27 October 2003 Professor Ron Johnston Australian Centre for Innovation University of Sydney

The Role of Knowledge The creation, diffusion and use of knowledge have become the vital ingredient in economic growth and change. The innovation-driven economy builds upon these processes. (OECD, 2002)

The creative process through which additional economic value is extracted from the stock of knowledge (OECD, 2001) Redefining Business Innovation

Paradoxes of Knowledge Using knowledge does not consume it but it does get obsolete. Transferring knowledge does not lose it but market mechanisms allow ownership. Knowledge is abundant, but the ability to use it is scarce. Producing knowledge resists organisation. Much of it walks out the door at the end of the day.

Entrepreneurial Knowledge Know-what Know-why Know-how Know-who Know-when Know-where

Knowledge Management Arrives ‘Silly me. I thought knowledge management meant it’s not what you know but who you know.’

The Challenge of Knowledge Management Not only of how to develop new knowledge, BUT how to locate and acquire others’ knowledge how to diffuse knowledge in your organisation how to recognise knowledge interconnections how to embody knowledge in products how to get access to the learning experiences of customers

What knowledge management initiatives are existing or planned in your company?

What are the barriers to implementing knowledge management?

Crucial Concepts for Knowledge Management Information = Knowledge Information is digitisable Knowledge exists in intelligent systems

Crucial Concepts for Knowledge Management Information = Knowledge Information is digitisable Knowledge exists in intelligent systems

Knowledge-Information Cycle Knowledge Creation Information Creation Knowledge Use Information Use Intelligent System

Critical Concepts for KM What’s to Manage? Organisational information Organisational knowledge Individual knowledge

Establish effective information capture and management systems & processes The KM Journey - the Fivefold Way Identify/map organisational & individual knowledge capabilities – your knowledge asset register Codify knowledge where possible, but don’t discard non-codifiable (tacit) components Nourish a culture that supports and rewards knowledge sharing Promote individual knowledge development AND THEY ALL INTERACT!