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Knowledge Creation Systems

in Seven-Eleven Japan

SENOO, Dai

Graduate School of Decision Science and Technology,

TITECH, Tokyo, 152-8552, Japan

2004.08.04 at Chengdu

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SENOO, DaiTokyo Institute of Technology

August 05, 2004

Outline

Case study of

Seven-Eleven Japan

Objectives:

Examine how information system can support knowledge creation.

Conclusion:

Facilitating dialogue and reinforcing creative routine might bethe most important functions of information system to support

knowledge creation.

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1 Conceptual Framework

Environment

Fig.1 Conceptual Framework of This Study

Information Systems

Supreme

Sustainable

Profit

Competitive

Advantage

Continuous

Innovation

Ba / Network

Knowledge Spiral

(SECI)

Knowledge Creation Process Performance

Ba / Network

Information Systems

Environment

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1.1 Knowledge Spiral

Sharing and creating

tacit knowledgethrough directexperience

I = Individual, G = Group, O = Organization, E = Environment

Learning andacquiring new tacitknowledge inpractice

1. walking aroundinside the company

2. walking aroundoutside the company

3. accumulating tacitknowledge

4. transferring oftacit knowledge

10. embodying explicitknowledge throughaction and practice

11. using simulation and

experiments

Articulating tacit

knowledge throughdialogue andreflection

5. articulating tacitknowledge

6. translating tacitknowledge

Systemizing andapplying explicitknowledge andinformation

7. gathering and

integrating explicitknowledge8. transferring and

diffusing explicitknowledge

9. editing explicitknowledge

Explicit

Explicit

Tacit

Tacit Tacit

Ex

plicit

Explicit

Tacit

SocializationSocialization ExternalizationExternalization

InternalizationInternalization CombinationCombination

O

G

E

I

Environment

Individual

I G

G

G

G

Org.

E

I

I

I

I

IGroup

IE O

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1.2 Ba / Network

Ba is the ontological platforms forknowledge creation.

Ba can be thought as a shared context foremerging relationships that give the basisfor one to interpret information to create

meanings.

Ba is a kind of opennetwork to the environment.

Customer

Government

Supplier

CompetitorFirm

University

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3.1 The history of information system

Generation

1st (1978) Terminal Seven

2nd (1982) Point Of Sales

3rd (1985) Graphic Information

Computer

4th (1990)

GOT: Graphic Order Terminal

SC: Store ComputerST: Scanner Terminal

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August 05, 2004

3.1 The history of information system (cont.)

5th (1999)

1. store system2. order, distribution and

vendor system

3. network system4. groupware system

5. multimedia information

transmission system6. POS information system

7. store POS register system

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SEJs knowledge creation process

Market

Organization

Customers

knowledge

Hypothesis Team

merchandisingEmployees

knowledge

(Stores)

Employees

knowledge

(Headquarter)

Products & Service

Technologies &

Know how

Logistics

Check

Manager meeting

(every Monday)

FC meeting

every Tuesday

Dialogue (external)New product development

with makers and

trading firmsOrder

Creative Routine

Dialog

Observation

POS data

OFC

GOT

F2F communicationOJTStore patrol by field counselorsand owner consultant

Cyber communicationPoint Of Sales systemGraphic Order Terminal

Dialogue (internal)Sharing Philosophy & VisionAdopt to changes

Pursue fundamentals

Quick response to stores demand

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3.2 System for internal knowledge flowChairmans speech The business revolution

meeting

Costly meeting (every week, nation wide)

to share the context for knowledge creation (Ba)

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3.3 System for stores-headquarters knowledge sharing

OFCs visit stores twice a week and teach ordering or

hypothesis building capabilities, raise problem awareness,

and provide external information to support owners and staff.

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DialogueWeekly face-to-face

Meetings, OFC store visits,

Etc.

Creative RoutinesEmployee participation

In the cycle of hypothesis,

execution, and inspection

VisionResponding to changes and

Relentless pursuit of

the basics

Tacitkn

owledge

(subjectivity)

Explicit

knowle

dge(ob

jectivit

y)

Environment

Driving ObjectivesOpportunity

Loss

Information System

BA/

Network

Penetration of the

essence with

unclouded eyes (CEO

Suzuki)

Place orders at the point that is closest to customers physically

and psychologically (shop-floor employees)

Knowledge-Creating Components of SEJ

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Implication

Dialogue

InformationSystems

Creative Routines

InformationSystems

Document utilization

efficient reinforcing facilitating