P3 January 2005 Class 5: ISM Knowledge & Networks Enabling Technologies (KNETs)

P3 January 2005 Class 5: ISM First“GUI” Xerox PARC, California First Mouse First Network Very creative!

P3 January 2005 Class 5: ISM Tech Reps at Xerox Process Perspective Read error codes and check copier-independent manual of copier Follow manual instructions for fixing the copier step by step No memory or communication of experience Practice Perspective Copier specific knowledge not documented anywhere Call up for help Collective improvisation and problem solving Share learned tips through “war stories”

P3 January 2005 Class 5: ISM Processes Vs. Practices Process The way tasks are organized a priori Routine Orchestrated Assumes a predictable environment Relies on explicit knowledge Linear Practice The way tasks are done Spontaneous Improvised Responds to a changing, unpredictable environment Driven by tacit knowledge Weblike Seely Brown & Duguid, 2000 Towards PET (Explicit knowledge) Towards KNET (Tacit knowledge )

P3 January 2005 Class 5: ISM EUREKA: Beyond Processes and PETs Repository of tips ( unstructured data ) for tech reps Accessible on repair site – through the Internet  tips in 2000; 2003: tips in 7 languages  technicians connected (2003)

P3 January 2005 Class 5: ISM

P3 January 2005 Class 5: ISM Knowledge & Network Enabling Technologies (KNET) Most communication technologies (from the telephone to and videoconference) Experts directories (“yellow pages”) Online discussion forums Unstructured databases Portals Search engines and text/data mining Blogs

P3 January 2005 Class 5: ISM KNET’s Impact Hard (measurable) Soft (non-measurable) Reduced costs : decreases service costs, decreases new product (e.g. code) development costs Increased efficiency: faster trouble- shooting, faster customer service, steeper learning curve Measurable innovation : faster product cycle, more patents, more reliable products + Transfer of tacit knowledge + Increased organizational memory + Increased employee and customer satisfaction + Many spill-over effects (e.g. Eureka to manufacturing) + More innovation (?) ? Culture Change (more sharing, more socialization?) - Information overload - Decreased creativity (“re-use” solutions) - Lack of “face-to-face” socialization Transform

P3 January 2005 Class 5: ISM Some Metrics

P3 January 2005 Class 5: ISM KNET and culture change Culture is embodied in artifacts. You can’t change culture, only the artifacts, and technology is one of them: KM Implementation as a tool for culture change A chicken-and-egg problem: change the culture to implement successfully the technology, or implement successfully the technology to change the culture? Where to start? How are KNETs adopted?

P3 January 2005 Class 5: ISM Early Approaches to KNET Put the knowledge of the organization in a database But…Many useless databases with outdated information

P3 January 2005 Class 5: ISM Eureka’s Success: Part I: Incentives An incentivized community already existed Incentives to share knowledge existed: Reputation was important Everyone saves time and effort Meetings would be organized Technicians already shared knowledge

P3 January 2005 Class 5: ISM Part II: The Eureka Technology: A Simple Socio-Technical Design A very simple interface fitting what people already do: War stories format – unstructured data/text Reputation of technicians/author is visible and preserved through a voting mechanism Simple reviewing and quality control Technology adapts over time to users’ practices (e.g. incorporate sound, video, etc) Very Simple Technology Fitting existing work practices

P3 January 2005 Class 5: ISM Employees Suggest Validate Use and Improve TIP life cycle: Improve TIP or Replace Comments Review YesNO Apply Certified Valid? Pending Submit TIP Part III: A Coordination Process

P3 January 2005 Class 5: ISM The Lifecycle of Knowledge at Eureka: There is a Clear Coordination Process! An acceptance process: what can get in the system ? A quality assurance process: keeping it up to date and rating it according to quality A removal process: what should get out of the system? And a reputation voting process

P3 January 2005 Class 5: ISM Part IV: Top Management Measures and Monitors Value of Eureka for Xerox Faster, cheaper customer service (tens of millions saved) Better manufacturing using the failure tips Information for new product development Improved logistics to avoid shipment failures More knowledge for more innovation

P3 January 2005 Class 5: ISM Knowledge lives in communities: The key to managing knowledge is connecting experts Develop communities of practice for strategic domains Technology is used to support the work of communities New approaches to KNETs

P3 January 2005 Class 5: ISM What are Communities of Practice? A group of people who… Share an interest in a topic - Domain Understand what the issues are Agree on common approaches Interact and build relationships - Community Help each other solve problems and answer questions Network across teams and business units Share and develop knowledge - Practice Share information, insights and best practices Build tools and a knowledge base

P3 January 2005 Class 5: ISM CoPs: Some Examples Laboratory experts in the field of corrosion (e.g. VW Group) Engineers engaged in deep-water drilling (e.g. Shell) Operational managers in charge of credit checking (e.g. World Bank) Clubs of engineers and car designers (e.g. DaimlerChrysler) Product delivery consultants (e.g. HP) Academic researchers The Open Source movement

P3 January 2005 Class 5: ISM What Makes Communities Tick Incentives Economic, social, psychological Socio-technical (simple) Technology Design Flexible technology fitting work practices Coordination Process Approval, reviewing, replacement etc Top Management Involvement Provide incentives when needed Measure, monitor, and communicate value

P3 January 2005 Class 5: ISM Networked Business Functions Communities (employees, researchers, customers, etc) for: -Product development -Product testing -Marketing (“word of mouse”) -Customer support The “re-organization” of the value chain: towards “networked business functions”

P3 January 2005 Class 5: ISM Key Lessons PETs for processes, KNETS for practices (but the line is blurry!): structured versus unstructured data Community based KNET adoption: Incentives to contribute and use Simple IT fitting existing work practices Clear coordination process Top management provides incentives if needed and monitors/measures value IT as an instrument for culture change: You need to start somewhere to change the culture and technology is one way to start KNETs as a culture change tool: when communities aren’t already there…

P3 January 2005 Class 5: ISM Next Class Technology Evolution and Market Dynamics -Diffusion dynamics of new technologies -The evolution of a technology company