1. Harvard Business Review on Knowledge Management Articles 7 - 8 Presented by Laurie Fezeu Presented by Laurie Fezeu Undergraduate in Management information systems Undergraduate in Management information systems

2. Research that Reinvents the corporation Research that Reinvents the corporation By John Seely Brown By John Seely Brown Former director of Xerox PARC Former director of Xerox PARC Published in Jan. 1991 Published in Jan. 1991

3. Outline ► The new invention / Corporation ► Technology Gets Out Of The Way ► Harvesting Local Innovation ► Coproducing Innovation ► Innovating with the Customer

4. The new invention / corporation “The most important invention that will come out of the corporate research lab in the future will be the corporation itself ”. “The most important invention that will come out of the corporate research lab in the future will be the corporation itself ”. Why? Why? The Xerox experience suggests that future research success will be enhanced by first understanding how Xerox employees really work and what customers’ real needs are, and then innovating accordingly. The Xerox experience suggests that future research success will be enhanced by first understanding how Xerox employees really work and what customers’ real needs are, and then innovating accordingly.

5. Technology get out the way ► The new research approach views technology differently ► Because computing costs is decreasing: 1- More electronic technology incorporated in office devices 1- More electronic technology incorporated in office devices 2- Users adapt technology to their specific needs 2- Users adapt technology to their specific needs These 2 trends result paradoxically in technology that is so powerful that it is invisible.( Technology get out of the way)

6. Technology get out the way…. Photocopier Photocopier ► After 50 years the technology of photocopier has not changed much. ► Today transformation of the copiers with IT: - complex computing and communications devices - complex computing and communications devices -easy to use with IS providing information linked to specific task -easy to use with IS providing information linked to specific task ► Remote interactive Communication: RIC

7. RIC - New standard features on high end copiers - System inside the copier that monitor information technology - Predict when machine will next break down using artificial intelligence techniques. - Branch office computer analyses the problem and it will be fixed before the expected time of failure. The purpose of this RIC is to show how the invisible technology to the user has transformed the copier The purpose of this RIC is to show how the invisible technology to the user has transformed the copier

8. Harvesting local Innovation  Organization must designing information system to support the way people really work  Ideas generated in the course of work are lost  PARC Anthropologist : -Lucy Suchman studies accounting clerks -Lucy Suchman studies accounting clerks She has discovered that people improvise their own way to get their job done versus following formal procedure which they learned via training or a job procedural manual. She has discovered that people improvise their own way to get their job done versus following formal procedure which they learned via training or a job procedural manual. -Tech – reps story -Tech – reps story -Customized user-system program (CUSP) -Customized user-system program (CUSP)

9. Harvesting local Innovation… CUSP( customized user-system Program) CUSP( customized user-system Program) ► Programming language ► It allows user to modify the system themselves. ► Design and program system to fit office setting

10. Co producing Innovation Portray not just technology but also technology “in use”. Portray not just technology but also technology “in use”. - ”How do we communicate fresh insights about familiar problems so that others can grasp their significance”? - ”How do we communicate fresh insights about familiar problems so that others can grasp their significance”? - Don’t just tell people about the new insight - Don’t just tell people about the new insight - Get them to experience it. - Get them to experience it. Old Way: Research Dept. comes up with innovation in isolation, and then “dumps” it on people. New Way: Research Dept. interacts with other Depts. Both gain more accurate assessment of problem, and come up with solution that works in other Depts

11. Coproduction Innovation Coproduction Innovation Research can’t just produce innovation it must “coproduce” it. The video of the “Unfinished Document ” The video of the “Unfinished Document ” Researchers showed Top Management a Video of a preliminary research idea. Top Management brainstormed in how this new technology might be used, before the product was ever even developed. Researchers used those insights to actually translate the prelim. Research idea into a more effective final product

12. Coproducing Innovation ► Conceptual envisioning environment ► Researchers must co-produce new technologies and work practices by developing with partners throughout the organization a shared understanding of why these innovations are important

13. Innovation with the customer ► Coproduction needs to be done outside the organization, not just within it. ► Customization of technology. ► Coproducing products with customers – customers may be unaware of their need, and product may not yet exist. ► Express project Express project – where Syntex company sent reps to study Xerox’s technology in process of being developed, while Xerox sents reps. to study Syntex’s business needs. Express project – where Syntex company sent reps to study Xerox’s technology in process of being developed, while Xerox sents reps. to study Syntex’s business needs. ► The Forms of Receptionist System

14. PARC: Seedbed of the Computer Revolution Revolutionized computer in 1970. Revolutionized computer in 1970. ► Bit map ( Screen with easy-- to –use graphics and interface ) ► LAN (for distributed computing) ► Overlapping Screen windows ► Point and click ( using a mouse ) ► Small talk ( 1 st object-oriented programming language ) ► Laser printing prototype in 1973

15. How Xerox Redesigned Its Copiers ► Increasing call for complaints in early 1980’s ► Copier design problem ► Not really a machine failure ► Convincing the technology designers ► No more flip cards ► Display panel ► Dramatic change in results

16. Conclusion In the information-based economy we live in today, research on new work structures is as important than research on new products. In the information-based economy we live in today, research on new work structures is as important than research on new products. The successful company of the future must understand how people really work and how technology can help them work more effectively. The successful company of the future must understand how people really work and how technology can help them work more effectively.

17. Managing Professional Intellect— Making the most of the best James Brian Quinn James Brian Quinn Philip Anderson Philip Anderson Sydney Finkelstein Sydney Finkelstein Published April,1996 Published April,1996

18. Outline ► A Corporation’ Success ► What is Professional Intellect? ► Developing Professional Intellect ► Leveraging Professional Intellect. ► Inverting Organizations. ► Creating Intellectual Webs.

19. A Corporation' success ► The Capacity of a company leader to find ways to nurture, develop, and utilize the intellectual capabilities of the people at all levels of their organization ► It has more to do with “working smarter” (producing better products and services) than with “working harder” ► In spite of this, little attention is being paid to the subject of developing and utilizing professional intellect.

20. What is Professional Intellect? The Crucial Challenge of Managing Professional Intellect in today’s organization: ► In the industrial-based economy of yesterday, professionals more or less stayed within their discipline ► In the information-based, rapidly technologically advancing economy of today, professionals also need to know how to work creatively between disciplines in order to be competitive (i.e., they need to develop the third and fourth levels of professional intellect: know why and care why)!

21. Four Levels of Professional Intellect ► Cognitive knowledge (know what) – or “book learning”. ► Advanced skills (know how) - or “translating book learning into action” in the completion of one’s own job. ► Systems understanding (know why) – or “knowing how one’s job, contributes to the success or total output of the entire organization”. ► Self-motivated creativity (care why) – or “finding new ways to contribute to the success or total output of the organization, via better utilization of one’s specialty knowledge and abilities. ”

22. Developing Professional Intellect Four best practices for developing professional intellect Four best practices for developing professional intellect 1 Recruit the best. -Intensely screen initial applicants -Want to work with the best -Microsoft : 100 interviews for 1 -Four Seasons Hotel: 50 for 1 2 Force intensive early development. -Rapid Development of advanced skills professionals from real problems, -Interactions with customers -Interactions with customers -Growth through: mentoring, rewards for performance

23. Developing Professional Intellect…. 3 Constantly increase professional challenges. -Leaders too demanding -stretch goals which challenge intellect. -Push beyond book Knowledge 4 Evaluate and weed -performance evaluation and feedback. -performance evaluation and feedback. -Objective appraisal important Anderson Consulting 10% make partner Anderson Consulting 10% make partner

24. Leveraging Professional Intellect Leveraging : More effectively utilizing a professional’s abilities. ► In industrial society, main two ways to leverage - learning and working more - Increasing a professional’s support staff. - Increasing a professional’s support staff. ► In information society, leverage can be attained - performance-improving technology, - implementing effective management approaches.

25. Leverage professional intellect Leverage professional intellect ► Utilizing performance improving technology Capturing knowledge in systems and software can boost professionals’ problem solving-abilities. ► Implementing more effective management approaches Strategies can overcome professionals’ reluctance to share information, via incentives and technology that encourage sharing.

26. Boost professionals’ problem-solving abilities by capturing knowledge in systems and software ► Financial organizations  Human experts and system software collect and analyze  Advice distributed via software systems to retailers and brokers who further customize information  Know-why is increased at center, then incentive structures create care-why

27. Overcome professionals’ reluctance to share information ► Knowledge and intellect grow exponentially when share ► Difficulty to overcome natural reluctance  Competition between professionals  Difficult to assign creditability to knowledge ► Anderson Worldwide – ANet  Post problems on electronic billboards  Electronic system connecting 85% of professional  Incentives and cultural change were essential

28. Inverting Organizations ► Organize patterns tailored for intellect in a way to create most value  breaking away from traditional Thinking of the center as the directing force ► Supporting organization  Distributes logistical, analytical, and administrative support  Does not give them orders  Former line order becomes supportive structure and become staff people

29. Inverting Organizations

30. ► Nova Care – NovaNet  Largest, fastest-growing health care companies  Captures the organizations systems knowledge – rules, schedules, customer billing.  Captures information for therapists about costs, services, techniques that work well, and changing care patterns  Therapists can give orders to line organizations and make decisions on patients care  CEO refers to therapists as “my bosses”

31. Creating Intellectual Webs ► Spider’s webs  Self-organizing  Form quickly, disbands quickly  Solve problems no one or organization may know exactly the full dimensions or issues  Can leverage knowledge capabilities by hundreds of times  Shared interest, common values, and mutually satisfactory solution is essential

32. Spider’s Web

33. Summary ► A corporation’s success in the information society of today has more to do with “working smarter” ( producing better products and services) than with “working harder” (producing more products and services).

34. Critiques ► Research That Reinvents The Corporation Pro: very interesting article. Many examples. He emphasizes Partnership versus rigidity and isolation (working “for” people, or alone). Con: People may not be accustomed to teamwork/might overload them. No Guarantee ► Managing Professional Intellect Pro :Easy to read. Plenty of examples. Talks about creating a challenging learning environment. Con : Perhaps too challenging, highly stressful environment.

35. Additional Ressources ► James Quinn Website with different articles ► Interview with John Seely Brown http://www.sethkahan.com/Resources_0John SeelyBrown.html http://www.sethkahan.com/Resources_0John SeelyBrown.html

36. Thank You Q&A Q&A