KM most-cited articles (R#8) Article 7- 9 MIS 580: Knowledge Management Arab Salem November 8, 2005

2 Contents The Role of Tacit Knowledge in Group InnovationThe Role of Tacit Knowledge in Group Innovation –By Dorothy Leonard & Sylvia Sensiper, 1998 The Concept of “Ba”: Building a foundation for Knowledge CreationThe Concept of “Ba”: Building a foundation for Knowledge Creation –By Ikujiro Nonaka & Noboru Konno, 1998 If Only We Knew What We Know: Identification and Transfer of Internal Best PracticesIf Only We Knew What We Know: Identification and Transfer of Internal Best Practices –By Carla O’Dell & C. Jackson Grayson, 1998

November 8, The Role of Tacit Knowledge in Group Innovation Dorothy Leonard & Sylvia Sensiper, 1998

November 8, Key Concepts Knowledge is multi-dimensional and all knowledge has tacit dimension A proportion of tacit knowledge can never be articulated Tacit knowledge is a resource for group based innovation Collective tacit knowledge is a source of competitive advantage Externalization of tacit knowledge is not always beneficial at the individual level

November 8, Tacit Knowledge Knowledge spectrum Physical vs. cognitive skills Individual vs. group level Explicit Tacit Objective Rational created “then and there” Subjective Experiential created “here and now”

November 8, Tacit Knowledge applications in innovation – individual level Problem Solving (patterns matching, intuition) Problem Finding (insights) Prediction and Anticipation (hunches) BUT innovation in businesses is usually a group process

November 8, Innovation overall pattern The innovation Funnel, p.117

November 8, The process of InnovationDivergenceConvergenceTechniquesBrainstorming sessions Observational visit Apprenticeship FocusFlashes of inspiration Guiding concept Tacit knowledge Individual-basedGroup-based OutcomeRequisite varietyActionable next step

November 8, Barriers to generate and share knowledge Generation and sharing barriers: –Lack of individual motivation –Organizational Hierarchy –Distance (time and space) Growth and transfer barriers: –Inability to back up new idea with hard data –Fear of expressing the inexpressible –Uneasiness to express emotional disagreements Tacit &ExplicitKnowledge Tacit Knowledge Knowledge

November 8, What management needs to do? Creating guiding visions and concepts Encouraging different thinking styles Encourage experimentation Reward tacit knowledge disseminators

November 8, The Concept of “Ba”: Building a foundation for Knowledge Creation Ikujiro Nonaka & Noboru Konno, 1998

November 8, Key Concepts Distinction between explicit and tacit knowledge Interactions between tacit and explicit knowledge lead to the creation of new knowledge (SECI model) SECI model focuses on knowledge creation and sharing on organizational level (not individual level) “Ba” as a source of creation knowledge (Knowledge is context sensitive ) Knowledge creation as a top-down process (role of top management)

November 8, SECI Model of Knowledge creation..(1) Explicit and tacit Knowledge is created and transferred through four “knowledge creating” processes Dynamic interactions between explicit and tacit knowledge and different levels of organization New knowledge can trigger a new spiral of knowledge creation

November 8, SECI Model of Knowledge creation..(2) New knowledge can expand horizontally and vertically across the organization Intra and inter organizational interactions can trigger a new spiral of knowledge creation

November 8, Modes of Knowledge conversion (SECI model) 1.Socialization ( from tacit knowledge to tacit knowledge ) sharing of tacit knowledge between individuals e.g. Face-to-face communication 2.Externalization ( from tacit knowledge to explicit knowledge ) Develop concepts that articulate tacit knowledge e.g. dialogue 3.Combination ( from explicit knowledge to explicit knowledge ) Combining various elements of new and existing explicit knowledge e.g. financial statements 4.Internalization ( from explicit knowledge to tacit knowledge ) Individuals reframe their own tacit knowledge based on new shared explicit knowledge e.g. Learning by doing

November 8, SECI Model of Knowledge creation

November 8, The concept of “ba” Original concept: –Shared space for emerging relationship Physical/virtual Mental –Platform for individual/collective knowledge Nonaka’s concept: –Shared space (environment) –It provides the context to convert information into knowledge (knowledge is context- dependent)

November 8, The Four Categories of “ba” 1.Originating ba A space that enable people to interact with each other and share emotions, feelings, and experiences 2.Interacting ba A space where tacit knowledge of employees are shared though dialogue and metaphors 3.Cyber ba A space that enables the combination of new and existing explicit knowledge generates new explicit knowledge 4.Exercising ba A space that enables the usage of explicit knowledge in real life

November 8, The Four Categories of “ba”

November 8, Three cases of “ba” implementationSharpToshibaMackawaSeisakushoName Urgent ProjectsADI group- Org. Structure Existing structure New structure Location Outside the org.Within the existing org. Within each independent company Function Speed up product development Find new marketsMore closeness to customers scale Entire org.Group of business divisions Entire org. Model ProjectDivision/group of divisions Each company has its own ba

November 8, If Only We Knew What We Know: Identification and Transfer of Internal Best Practices If Only We Knew What We Know: Identification and Transfer of Internal Best Practices Carla O’Dell & C. Jackson Grayson, 1998

November 8, Key Concepts “supply-side approach” to knowledge management –focusing on employment of IT for sharing knowledge The need to build employee relationships to facilitate sharing knowledge –Internal transfer through people-to-people process The need to identify, share, and use best practices inside and outside an organization –internal/external benchmarking

November 8, Internal Benchmarking Hurdles Organizational structure –Silo structure Cultural barriers –“not-invited-here” syndrome Lack of common perspectives Codification of tacit knowledge Lack of time and space to share knowledge

November 8, Approaches for best practices transfer Benchmarking teams –Assess the current state  identify gaps  search for best practices –Have clear life span –Top-bottom approach Best-practice teams –Identification  transfer  implementation –Ongoing function –Top-bottom approach Knowledge networks –Build knowledge map –Bottom-up approach Internal audits –Ongoing function –Internal awards and recognition programs

November 8, Best-practices transfer enablers Technology –Pointer systems to overcome the difficulties of tacit knowledge codification –Common framework –Appointed Employees with the task of entering information Culture –Rewarding system (tangible vs. intangible) –Non-financial performance measures leadership –Active and supportive role –Encourage best practices sharing Measurement –Performance measurement metrics –Best practice sharing measurement

November 8, Seven keys to effective transfer …(1) Using benchmarking to make a change –Internal / external benchmarking Focus on critical business issues –Long term improvements Consider the limitation of resources –Matching projects with available funding Focus on dramatic comparative measures –Don’t spend time analyzing “who’s best”

November 8, Seven keys to effective transfer …(2) Use a rewarding system that Encourages sharing –Rewarding people who model sharing behavior Use IT tools to find best practices –don’t relay on IT as a solution Spread the message of sharing knowledge for the greater good –Demand driven transfer process

November 8, Discussion Tacit knowledge  Explicit Knowledge organizational knowledge = Knowledge is context-dependant

November 8, Questions?