Knowledge in Biz Warfare Handout

8/3/2019 Knowledge in Biz Warfare Handout

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Date:Date: 2, 9, 16Feb 20112, 9, 16Feb 2011By:By: AdjAdj ProfProf SooSoo

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ConsidersC

onsiders:: the nature of knowledge and learning in both individual andthe nature of knowledge and learning in both individual and

organizational contexts;organizational contexts;

forms of organizational knowledge;forms of organizational knowledge;

how knowledge and organizational learning become structured aroundhow knowledge and organizational learning become structured around

the architectures of an organizations products and processes;the architectures of an organizations products and processes; organizational learning processes through which knowledge can beorganizational learning processes through which knowledge can be

created and used;created and used;

incentive systems for stimulating organizational learning;incentive systems for stimulating organizational learning;

the design of ITthe design of IT--supported knowledge management systems;supported knowledge management systems;

issues and challenges in managing organizational learning.issues and challenges in managing organizational learning.

Aims of the moduleAims of the module

Prof Ron Sanchez


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Knowledge Management is aboutKnowledge Management is about

DesigningDesigning learning cycleslearning cycles intointoall organizational processesall organizational processes Systematically leveragingSystematically leveraging

new and existing knowledgenew and existing knowledge

ConvertingConvertingpersonal knowledge intopersonal knowledge into

organizational knowledge, and vice versaorganizational knowledge, and vice versa

Our Processes

Other Processes

Prof Ron Sanchez


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Knowledge Management Business ApproachKnowledge Management Business ApproachYou can't manage knowledgeYou can't manage knowledge nobody can.nobody can.

What you can do is to manage the environment in which knowledge canWhat you can do is to manage the environment in which knowledge can

be created, discovered, captured, shared, distilled, validated, transferred,be created, discovered, captured, shared, distilled, validated, transferred,

adopted, adapted and applied.adopted, adapted and applied.

ChrisChris CollisonCollison & Geoff& Geoff ParcellParcell, Learning to Fly, Learning to Fly -- Practical Knowledge Management from Leading & Learning Organizations (2005),Practical Knowledge Management from Leading & Learning Organizations (2005), ChperChper2, pgs2, pgs2424--25.25.

DruckerDrucker scoffs at the notion of knowledge management. 'You can't scoffs at the notion of knowledge management. 'You can't

manage knowledge,' he says. 'Knowledge is between two ears, and onlymanage knowledge,' he says. 'Knowledge is between two ears, and only

between two ears.'between two ears.'

To that extent,To that extent, DruckerDrucker says it's really about what individual workerssays it's really about what individual workers dodo

with the knowledge they havewith the knowledge they have. When employees leave a company, he. When employees leave a company, hesays, their knowledge goes with them, no matter how much they'vesays, their knowledge goes with them, no matter how much they've

shared.shared.

The nonsense of 'knowledge management, T.D. Wilson, Prof Emeritus, U. of Sheffield, UK, visiting Prof, Hgskolan i Bors, Bors, Sweden


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Getting people to think about KM on their own terms is the trick.Steve Denning, the Worlds Bank former director ofKM, says: Dontexplain the theory of knowledge management thats deadly.

In fact, it is better not to mention KM at all. Unilevers David Smithhad to use his colleagues language. Its important to have a

dialogue at the top of the organisation and to understandperceptions of the subject without using the words knowledgemanagement. Instead, you ask how good we are at innovation or atlearning from mistakes.

How to manage your Knowledge Manager, nathaniel Foote, Eric Matson and Nicholas Rudd, BOSS, Nov 2002

Knowledge Management Business ApproachKnowledge Management Business Approach


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Adapted from: Defining Knowledge Management, Steve Barth, Wednesday, June 19, 2002

isis the practice of harnessing & exploiting intellectual capital to gainthe practice of harnessing & exploiting intellectual capital to gain

competitive advantage & customer commitmentcompetitive advantage & customer commitment through efficiency,through efficiency,innovation & faster & more effective decisioninnovation & faster & more effective decision--making."making."

ItIt means nothing if you don't take knowledge & turn it intomeans nothing if you don't take knowledge & turn it into customercustomer

value.value.

isis really just a way of looking at the world of biz.really just a way of looking at the world of biz. It's a realization thatIt's a realization that

who & what you knowwho & what you know are assets of the organization... to be managedare assets of the organization... to be managed

for the greatest possible return on investment.for the greatest possible return on investment.

K

M is such a preposterous, pretentious & profoundly oxymoronic phraseK

M is such a preposterous, pretentious & profoundly oxymoronic phrasethat many of those who really understand KM prefer terms such asthat many of those who really understand KM prefer terms such as

knowledgeknowledge--sharing, information systems, organizational learning,sharing, information systems, organizational learning,

intellectual asset management, performance enhancement or gardening.intellectual asset management, performance enhancement or gardening.


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KM is the intangible soft-skill of the knowledge economy that leads to

hard, tangible results such as shorter product lead cycles, lower

development costs, and cost & quality gains in manufacturing.

However creating & managing organizational knowledge in China's socio-

cultural environment presents some peculiar issues and challenges.

consumers demand new products with additional features every six

months or less, effective KM is key to reducing the new product

development cycle time. It is also a basic requirement to compete.

In other industries, the goal ofKM is to move along the "experience curve'

as quickly as possible, realizing cost & quality gains as the organization

learns from its collective successes & failures.

KM encompasses aspects of business including strategy, operations

practices and corporate culture.

Adapted from: KnowledgeAdvantage, Sridhar Vedala and Nick Rossiter, Enterprise China, 2004



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To achieve higher levels of competitive advantage, customer commitment,To achieve higher levels of competitive advantage, customer commitment,customer value, innovation & faster & more effective decisioncustomer value, innovation & faster & more effective decision--makingmaking

What Knowledge is critical toWhat Knowledge is critical to

anan organisation?organisation?

What must a business have in its KnowledgeWhat must a business have in its Knowledge Bank?Bank?

What do you do with it?What do you do with it?

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Therefore, study by calculations and compare the situation in the fieldaccording to 5 FACTORS:

1. The Way (Dao) or Moral Principle stakeholders in harmony with the Leader.

2. The Weather capitalise on the knowledge of cycles of changes in markets,economics, industries, technologies, demographics, socio-politics, etc.

3. The Terrain use the knowledge of variations in market segments, places,positioning, etc.

4. The Commander wise, skilled, mgt style to capitalise on the above.

5. Law & Doctrine/System Org structure, Culture, Processes, Reward system,Training/Skills of people, cost mgt, etc.

Sun Zis Art of War - Be Prepared and be Invincible:Sun Zis Art of War - Be Prepared and be Invincible:

1:1-3

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regulatory changes, unwrittenregulatory changes, unwritten

rules, enforcement, etc.rules, enforcement, etc.

changes in govts, internationalchanges in govts, internationalorgs policies & incentives, etcorgs policies & incentives, etc

changes & rate of

adaptation, etc.

climatic & weather changes,climatic & weather changes,

conservation, pollution, etc.conservation, pollution, etc.

changes in norms,changes in norms,

selfself--regulation, etc.regulation, etc.

shift in dominant ageshift in dominant age

groups, race, religion, etc.groups, race, religion, etc.

PPoliticalolitical

Economicsconomics

SSocioocio--culturalcultural

TTechnicalechnical

EE

LLegalegal

EEthicalthical

DDemographicsemographics

shifts in cultural/social norm,food trends, health trends, etc

biz & industry cycles, sentiments,new FTAs, barriers, cartels, etc

nvironmentnvironment

Weather refers to the climatic variations such as the circadiancycle (dark-light or Yin-Yang) & seasonal temperature fluctuation(cold-hot or winter-summer) and their time control factor.

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Weather refers to the climatic variations such as the circadiancycle (dark-light or Yin-Yang) & seasonal temperature fluctuation(cold-hot or winter-summer) and their time control factor.

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Be Prepared The WeatherBe Prepared The Weather


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Be Prepared WeatherBe Prepared Weather

More than 30 years ago, the government announced a system to moveMore than 30 years ago, the government announced a system to moveschool dropschool drop--outs from PSLE to technical schools like ITE. What doesouts from PSLE to technical schools like ITE. What doesthat mean?that mean?

Based on statistics this means most of the 11% (average) school cohortBased on statistics this means most of the 11% (average) school cohortthat usually form the production workers applications will disappear.that usually form the production workers applications will disappear.

This means soon Singapore will be grossly short of production workers!This means soon Singapore will be grossly short of production workers!

Decision: AutomateDecision: Automate

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Governments goal:Governments goal: Economic ReEconomic Re--structuring.structuring.Singapore is to be a Global City.Singapore is to be a Global City.

What does this mean?What does this mean?


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EEconomic Reconomic Re--structuringstructuring DDemographics Shiftemographics Shift

DDemographicemographicShift: foreignShift: foreignprof. talentsprof. talents

Emerging Pattern:Emerging Pattern:Luxury Buying, PremiumLuxury Buying, PremiumHousing, PremiumHousing, Premiumeating,eating, Inflation, higherInflation, higherproperty prices, etcproperty prices, etc..

DDemographicemographicShift: TransientShift: Transientrich poprich pop-- IRsIRs

Changing Loyalty Patterns:Changing Loyalty Patterns:YuppieYuppieclub, Sp. Conciergeclub, Sp. Concierge svcssvcs, e.g., e.g.Treasures, Platinum Clubs, etc.Treasures, Platinum Clubs, etc.

Special Clubs:Special Clubs: forforseniorsseniors, Old Boys NW, Old Boys NW

Aging populationAging populationYuppies CultureYuppies Culture

Special Need Patterns:Special Need Patterns:Sp. Concierge services, healthSp. Concierge services, healthfocus, Blog gossips, etc.focus, Blog gossips, etc.

HigherHigherValueValueAdd BizAdd Biz

Branding:Branding: CriticalCriticalfor premiumfor premium Hip,Hip,hype, etc.hype, etc.

Shift toShift toGlobalGlobalCityCity

Eat Healthy:Eat Healthy:Organic, leanOrganic, lean& white& white meats,meats,vegetables,vegetables,fruits, pillfruits, pillpopping, etcpopping, etc

AgedAged Friendly:Friendly: PreparedPreparedFood designed for theFood designed for theagedaged

PkgPkg MealsMeals


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Developers sold 14,688 units in 2009Developers sold 14,688 units in 2009close to the allclose to the all--time high of 14,811 intime high of 14,811 in2007 Consultants2007 Consultants generally predict 8generally predict 8to 15% increase this year for URA'sto 15% increase this year for URA's

overall private home price index, withoverall private home price index, withgreater upside for highgreater upside for high--end homes.end homes.

Analysts bullish after URA data shows hike in Q4 prices and dip in vacancies,Analysts bullish after URA data shows hike in Q4 prices and dip in vacancies,KalpanaKalpanaRashiwalaRashiwala,, ExpatSingaporeExpatSingapore websitewebsite

Rich foreigners who accounts to aboutRich foreigners who accounts to about70% of the buyers in the private70% of the buyers in the privatepropertyproperty market Anmarket An Indonesian PRIndonesian PRpaid a record high $653,000 for a resalepaid a record high $653,000 for a resale

HDB flat in QueenstownHDB flat in Queenstown

Will Real Estate Prices continue to go up?Will Real Estate Prices continue to go up?

Target population: 5 m up from 3.5 mTarget population: 5 m up from 3.5 min about 4 years.in about 4 years.


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But CalBut Cal--Maine saw the battle ground was about to shiftMaine saw the battle ground was about to shift

CalCal--Maine began buying smaller egg producers that were in trouble,Maine began buying smaller egg producers that were in trouble,focusing particularly on companies that produced reducedfocusing particularly on companies that produced reduced--cholesterol, cagecholesterol, cage--free, organic eggs, and even eggs laid by vegetarianfree, organic eggs, and even eggs laid by vegetarianhens allows the company to sell at far higher prices.hens allows the company to sell at far higher prices.

A Chicken Farm Gobbles CompetitionA Chicken Farm Gobbles Competition -- How You Can Too,How You Can Too, KaihanKaihan KrippendorffKrippendorff,, FastcompanyFastcompany,, Mon Oct 6, 2008Mon Oct 6, 2008

Emerging buying pattern:Emerging buying pattern: changing taste for eggschanging taste for eggs

Be PreparedBe Prepared WeatherWeather

Net Income grew ~ 5X: from $36.7m to $151.9m in one year although:Net Income grew ~ 5X: from $36.7m to $151.9m in one year although:

Cost of chicken feed skyrocketedCost of chicken feed skyrocketed Less consumers eat eggs due to health reasonsLess consumers eat eggs due to health reasons


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In business there are many cycles, each with its own drum beat andIn business there are many cycles, each with its own drum beat andtiming. We need to understand their impact and plan for them:timing. We need to understand their impact and plan for them:

Economic CycleEconomic Cycle -- Boom & BustBoom & Bust Business CycleBusiness Cycle the Sthe S--CurveCurve Innovation/Adoption Life CycleInnovation/Adoption Life Cycle Product Life CycleProduct Life Cycle Market Life CycleMarket Life Cycle shift in economiesshift in economies Demographic Life CycleDemographic Life Cycle etcetc

SS--CurveCurve

Time

MarketSize

Innovation LifeInnovation LifeCurveCurve

Time

MarketSize

Time

MarketSize

SuccessiveSuccessiveSS--CurveCurve

Contraction

Recession

Boom

Expansion

Economic CycleEconomic Cycle


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ExplicitK

nowledge isExplicitK

nowledge is uselessuseless if it is stored in books, computer memory,if it is stored in books, computer memory,human memory (human memory (etcetc) and) and not transformednot transformed..

Business cycles (etc) are known to business leaders but not all use themBusiness cycles (etc) are known to business leaders but not all use them why?why?

Based on historical trend, most of the top 10 companies of the worldBased on historical trend, most of the top 10 companies of the world

today will not make the list in 2020 years timetoday will not make the list in 2020 years time why?why?


Because it is one thing to have the knowledge and it is anotherto do something with it!


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Hirose'sHirose's ProdtProdt DevtDevt :: Our Sales Div &Our Sales Div & EnggEngg Div come together inDiv come together insearching for global connector trends to create innovative productssearching for global connector trends to create innovative productssequentially.sequentially.

Abandon & Ambush:Abandon & Ambush: We generate precedence profit with newWe generate precedence profit with newproducts before competitors enter into the market, & abandon themproducts before competitors enter into the market, & abandon themthat are already de facto std & dig a new theme to be developedthat are already de facto std & dig a new theme to be developedalmost 30% of our product linealmost 30% of our product line--up is occupied by newup is occupied by new productsproducts


Time

MarketSize

SuccessiveSuccessiveSS--CurveCurve

De factoIndustry Std



They see the imminent

changes in customers

needs and created the

WANT for them and bringabout the change!


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Musashi: seize initiative & lead the opponent.

Yamaha: "World's Largest Motorcycle Manufacturer"Honda: > 18-months introduced 113 new models to Yamaha's 37.

Yamaha's margin & market share dropped rapidly.

Why companies dont interpret market, economic and socialinformation and develop strategies the same way?

Strategically: Honda had made NEWNESS an object of customers desireor WANT to be an end in itself. Yamaha believe Honda was wrong astheir cost of mfg would be higher.



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Explicit KnowledgeExplicit Knowledge Govt Policies,Govt Policies,Market, Industry, Social Trends, (etc)Market, Industry, Social Trends, (etc)

Tacit Knowledge of how to interpret &Tacit Knowledge of how to interpret &develop solutions to issuesdevelop solutions to issues

New KnowledgeNew Knowledge

Explicit/TacitExplicit/Tacit??

NewNew insights/ideasinsights/ideas

++

++

ExperiencedExperienced && InexperiencedInexperienced CrossCross--FunctionalFunctional managers working as a teammanagers working as a teamalone or facilitated by a consultant.alone or facilitated by a consultant.


HowHow the brain thinks, decides &the brain thinks, decides & recognisesrecognises -- influences ourinfluences our

perception & formulates what we callperception & formulates what we call New Knowledge.New Knowledge.

Reading furnishes the mind only with materials of knowledge; it isReading furnishes the mind only with materials of knowledge; it is

thinkingthinking that makes what we read ours.that makes what we read ours. John Locke, Of the Conduct of the Understanding(1706)


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Neuroscientists:Neuroscientists: The new model of the brain is intelligentThe new model of the brain is intelligentmemory, in whichmemory, in which analysisanalysis andand intuitionintuition work together in thework together in the

mind in all modes of thoughtThere is only learning and recall, inmind in all modes of thoughtThere is only learning and recall, in

various combinations, throughout the entire brainvarious combinations, throughout the entire brain

As new info comes in, your brain does a search to see how itAs new info comes in, your brain does a search to see how it

might fit with other info already stored in your memory. When itmight fit with other info already stored in your memory. When itfinds a match, the previous memories come off the shelf andfinds a match, the previous memories come off the shelf and

combine with the new, and the result is a thought.combine with the new, and the result is a thought.

The breaking down and storing process isThe breaking down and storing process is analysisanalysis. The searching. The searching

and combining isand combining is intuitionintuition..

When lots of different pieces combine into a new pattern, you feelWhen lots of different pieces combine into a new pattern, you feel

it as a flash of insight, the famousit as a flash of insight, the famous aha! momentaha! moment..

Adapted from: How Aha! Really Happens, William Duggan

How do we Think?How do we Think?


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We recognize a face by integrating its particulars impressed upon our

brain into a comprehensive entity. Integration occurs as we shift ourattention from the parts to the whole.The whole is not simply a sum ofthe parts because the parts take on a different meaning in the whole.

This integration is tacit knowing.

We recognize a face by integrating its particulars impressed upon our

brain into a comprehensive entity. Integration occurs as we shift ourattention from the parts to the whole.The whole is not simply a sum ofthe parts because the parts take on a different meaning in the whole.

This integration is tacit knowing.

Adapted from: Polanyis Concept ofTacit Knowing, Nina Abraham Palmer, Harvard

Knowledge Creation - Polanyis ConceptKnowledge Creation - Polanyis Concept

Integration(Tacit Knowing)

Explicit

Knowledge

Pattern recognition: FacePattern recognition: Face

Terrorism

E. Asiasgrowingconcerns

Defence Showsdecreasing

ConferenceGrowing

SingaporeGovts Interest

WesternHardeningtargets

Trend/ChangeTrend/ChangeRecognitionRecognition


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Gestalt psychology is based on the observation thatGestalt psychology is based on the observation thatwe often experience things that arewe often experience things that are notnot a part of oura part of our

simplesimple sensations yousensations you areare seeing an effectseeing an effect of theof the

whole event,whole event, notnot contained in the sum of the partscontained in the sum of the parts

Gestalt Psychology, Dr. C. GeorgeGestalt Psychology, Dr. C. George BoereeBoeree

It depends on what is stored and how the brain searches andlinks them.

Sometimes it fools you! It is how we THINK.

Gestalt Laws of Perceptual OrganizationGestalt Laws of Perceptual Organization

Have you ever noticed how a series of flashing lights often appearsHave you ever noticed how a series of flashing lights often appearsto be moving this apparent movement happens because ourto be moving this apparent movement happens because ourminds fill in missing information.minds fill in missing information.

WhatWhat is Gestaltis Gestalt Psychology? Kendra Van WagnerPsychology? Kendra Van Wagner

Knowledge CreationKnowledge Creation -- Gestalt psychologyGestalt psychology


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InIn Polanyis modelPolanyis model, personal, personal knowingknowing is the capacity to do somethingis the capacity to do something

that has been learned in the course ofthat has been learned in the course ofexperienceexperience..

Evidence of our capacity to know takes the form ofEvidence of our capacity to know takes the form ofGestalt integrationsGestalt integrationsthat pop into consciousness instantly andthat pop into consciousness instantly and inexplicablyinexplicably

IrrespectiveIrrespective of whether tacit knowing involves a physical skill or aof whether tacit knowing involves a physical skill or acognitive performance, we learn in the course ofcognitive performance, we learn in the course ofdoing thingsdoing things: learning: learninginvolves dwelling in the details of a particular activity.involves dwelling in the details of a particular activity.

Rethinking Polanyis Concept ofTacit Knowledge: From Personal Knowing to Imagined Institutions, Tim Ray, 5 March 2009, @ SprRethinking Polanyis Concept ofTacit Knowledge: From Personal Knowing to Imagined Institutions, Tim Ray, 5 March 2009, @ SpringingererScience+BusinessScience+Business Media B.V.2009Media B.V.2009

Knowledge Creation Polanyi & GestaltGestaltKnowledge Creation Polanyi & GestaltGestalt

Question is how had we been training our brains toQuestion is how had we been training our brains to

THINK?THINK?


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Analytical, Logical& Linear

Analytical, Logical& Linear

ConvergentConvergent

Left BrainLeft Brain

How do we Think?How do we Think?

DanielDaniel GolemanGoleman, when comparing star performers in senior leadership, when comparing star performers in senior leadershippositions, indicates that nearly 90% of the difference was attributable topositions, indicates that nearly 90% of the difference was attributable toemotional intelligenceemotional intelligence rather thanrather than cognitive abilitiescognitive abilities..

Albert Einstein once said, I neverdiscovered anything with my rational

mind.TheArt of Global Thinking: East, West: Conflicting or Complementary?Donald Cyr, Pacific Region Forum on Biz & Mgt Comm, Feb 26, 2003

Albert Einstein once said, I neverdiscovered anything with my rational

mind.TheArt of Global Thinking: East, West: Conflicting or Complementary?Donald Cyr, Pacific Region Forum on Biz & Mgt Comm, Feb 26, 2003

Holistic, Creative,Non-Linear

Holistic, Creative,Non-Linear

DivergentDivergent

DIALECTICDIALECTIC

Right BrainRight Brain


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Dialectic ThinkingDialectic Thinking

Adapted from: Dialectical Thinking, John Rowan#3 seeks to understand the whole so as to understand the parts.

1.1. DialecticDialectic denies usefulness of logic, e.g. analytical Static Structuredenies usefulness of logic, e.g. analytical Static Structureof A = A, A doesnt exist by itself and things change continuouslyof A = A, A doesnt exist by itself and things change continuouslyand its meaning depends on the context and environment.and its meaning depends on the context and environment.

2.2. DialecticDialectic opposites areopposites are NOTNOT mutually exclusive but can exist inmutually exclusive but can exist inharmony.harmony.

3.3. Dialectic Thinking:Dialectic Thinking: looks for contradictions within people/situationslooks for contradictions within people/situationsas the guide to what is going on and what is likely to happen.as the guide to what is going on and what is likely to happen. 33 mainmainpropositions:propositions:

a.a. interdependence of oppositesinterdependence of opposites light & darkness,light & darkness,

b.b. interpenetration of oppositesinterpenetration of opposites love & hate,love & hate,

c.c. unity of oppositesunity of opposites absolute light/darkness & blindness;absolute light/darkness & blindness; anyanyvalue we have, if held tovalue we have, if held to the extremethe extreme willwill include the oppositeinclude the opposite

A good symbol for these 3 processes is the Yin-Yang symbol


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How do weHow do we Think?Think? -- Dialectic ThinkingDialectic Thinking


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1. The Way (Dao) or Moral Principle - org believes in the Leaders vision,goals, strategies, benevolence; harmony among the stakeholders.

2. The Weather able to capitalise on the knowledge of cycles of changes ineconomics (local & global), industries, market influences, demographics,

socio-politics, etc.

3. The Terrain able to use the knowledge of variations in market segments,places, positioning, etc, to compete & win?

4. The Commander wise, skilled, an mgt style to capitalise on the above.

5. Law & Doctrine/System Org structure, Culture, Processes, Rewardsystem, Training/Skills of people, cost mgt, etc.

Therefore, study by calculations and compare the situation in the field

according to 5 FACTORS:



1:1-3

Be Prepared & Be Knowledgeable in:Be Prepared & Be Knowledgeable in:


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Based on the characteristics of the Space you can estimate the Threats of

doing biz and the Opportunities you can seize.

Business Terrain may relate to a physical location OR cyberspace.

Based on the characteristics of the Space you can estimate the Threats of

doing biz and the Opportunities you can seize.

Business Terrain may relate to a physical location OR cyberspace.

Characteristics of the Terrain in biz terms:

Financial - funding availability, currency exchangeability, etc.

Supply Chain - materials, logistic services, reliability, etc.

Labour - availability, educated, trained & associated cost.

Technology - materials, process, equipt, tech. availability, R&D, etc.

Infrastructure - telecoms, transportation sys, utilities, water, etc.

Market - potential needs, virgin land, size, changes, trends, etc.

Cyber Market - level of penetration and use for local and global reach. Competition - strengths & weaknesses due to market condition & situation.

Social - culture, social norms, religions, etc.

Etc.

Characteristics of the Terrain in biz terms:

Financial - funding availability, currency exchangeability, etc.

Supply Chain - materials, logistic services, reliability, etc.

Labour - availability, educated, trained & associated cost.

Technology - materials, process, equipt, tech. availability, R&D, etc.

Infrastructure - telecoms, transportation sys, utilities, water, etc.

Market - potential needs, virgin land, size, changes, trends, etc.

Cyber Market - level of penetration and use for local and global reach. Competition - strengths & weaknesses due to market condition & situation.

Social - culture, social norms, religions, etc.

Etc.

Knowledge of the TerrainKnowledge of the Terrain


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The availability of Market knowledge (Explicit Knowledge) depends on:The availability of Market knowledge (Explicit Knowledge) depends on:

1.1. Country or regionalCountry or regional marketmarket research.research.

2.2. Industry research is easier with maturedIndustry research is easier with matured industries like computer,industries like computer,power, etc; knowledge of distribution in Cyberspace ispower, etc; knowledge of distribution in Cyberspace is more tricky, ormore tricky, oreven less known industries like cruise.even less known industries like cruise.

3.3. RegionRegion--industry researchindustry research should use knowledge of companiesshould use knowledge of companiesalready there in country and/or industry. Use government agenciesalready there in country and/or industry. Use government agenciesknowledge bank.knowledge bank.



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WalWal--Mart while venturing out globally followed the cookieMart while venturing out globally followed the cookie--cuttercutter

approach, adopting its highly successful homeapproach, adopting its highly successful home--grown businessgrown business

model into its new markets Walmodel into its new markets Wal--Mart either failed or struggledMart either failed or struggled

With the global retail market severely competitive Retailers areWith the global retail market severely competitive Retailers are

forced to evolve a model that is forced to evolve a model that is glocalisedglocalised

WalWal--Marts Think Global, Act LocalMarts Think Global, Act Local Can Can AmericanisationAmericanisation Have its Way?, Have its Way?,AnanthiAnanthi R & DorisR & Doris RajakumariRajakumari John, IBS Case DevelopmentJohn, IBS Case DevelopmentCentre, 2008Centre, 2008

Terrain Think Global Act LocalTerrain Think Global Act Local


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So Playdom, the company behind Market Street, hired Mentez, a start up

based in Miami, to come up with a Valentines Day alternative for theBrazilian adaptation of the game, known as Paraiso das Compras

Internationalizing a game requires knowledge of country-specific traditions,architecture, holidays, and currencies

Overseas players buy up to five times the number of localized products asthey do non-customised ones

Getting Social Media Games to Play Overseas, Douglas MacMillan, Bloomberg Businessweek, Feb28-Mar6, 2001



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Petra's brands covers >50% Indonesias chocolate retail market.Petra's brands covers >50% Indonesias chocolate retail market.Distribution network covers 60% of the potential retailers.Distribution network covers 60% of the potential retailers.

By blanketing the lower end of the market with such variety, ChuangBy blanketing the lower end of the market with such variety, Chuanghas fended off challenges from rivals, even as Indonesia opened itshas fended off challenges from rivals, even as Indonesia opened itschocolate market.chocolate market.

"We"We don'tdon't compete againstcompete against CadburyCadbury and the others. They are goodand the others. They are goodbutbut expensive," he says. Cadburyexpensive," he says. Cadbury -- set up a chocolate mfg plant butset up a chocolate mfg plant buteventually pulled out, reportedlyeventually pulled out, reportedly unable to get adequate distributionunable to get adequate distribution..

Adapted from Chocolate Craving, JustinAdapted from Chocolate Craving, Justin DoebeleDoebele, Forbes Asia, 09.04.06, Forbes Asia, 09.04.06


Market Knowledge is Explicit Knowledge but it is TacitKnowledge that helps transforms it into Creative New Knowledge

to win in the market place.


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AA YouGovYouGov reportreport -- found distinctive differences betweenfound distinctive differences between smartphonesmartphone users.users.

iPhone usersiPhone users

are on average better paid than Android users: 56% earning 20K andare on average better paid than Android users: 56% earning 20K andabove,above, vsvs just 39% of Android users. 10% of RIM: 50K or morejust 39% of Android users. 10% of RIM: 50K or more vsvs 7% of7% ofiPhone users and 5% of Android users; 23% saying they didn't use appsiPhone users and 5% of Android users; 23% saying they didn't use appsat all.at all.

use smartphones most heavily, with 18% reporting that they spent 4 hrsuse smartphones most heavily, with 18% reporting that they spent 4 hrsor more each day, compared with 4% of Android & BlackBerry users.or more each day, compared with 4% of Android & BlackBerry users.

spend the most time using apps for social networking and gamingspend the most time using apps for social networking and gamingmost happymost happy--gogo--luckylucky

Lost in the big city? Look for an Android user mapping & planning travel.Lost in the big city? Look for an Android user mapping & planning travel.

WWomen are more social. Some 53% of femaleomen are more social. Some 53% of female smartphonesmartphone users said theusers said theapps they use most are for social networking, compared with 45% of men.apps they use most are for social networking, compared with 45% of men.

Adapted from;Adapted from; SmartphonesSmartphones: What your device says about you, Shelley: What your device says about you, Shelley PortetPortet, 7April 2011, Silicon.com, 7April 2011, Silicon.com

Terrain of SmartphonesTerrain of Smartphones


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Tacit knowledge underlies most competitive capabilities. It plays a

crucial role in developing new products and services. Today's knowledgedriven economy requires special attention to this unarticulated layer of

knowledge that shapes the decision-making process

[Tacit Knowledge] is hatched ofexperience, is often nonverbal, and is

even subconscious in nature.

Failure to recognize and use this intellectual asset squanders corporate

advantage.

Tapping tacit knowledge an art form, Skeris, Peter, InTech, December1, 1999

Tacit knowledge underlies most competitive capabilities. It plays a

crucial role in developing new products and services. Today's knowledgedriven economy requires special attention to this unarticulated layer of

knowledge that shapes the decision-making process

[Tacit Knowledge] is hatched ofexperience, is often nonverbal, and is

even subconscious in nature.

Failure to recognize and use this intellectual asset squanders corporate

advantage.

Tapping tacit knowledge an art form, Skeris, Peter, InTech, December1, 1999

TacitTacitK

nowledge resides in our subK

nowledge resides in our sub--consciousconscious mind and ismind and isbasically gained from learning especially by doing thingsbasically gained from learning especially by doing things

University of Hard KnocksUniversity of Hard Knocks

Knowledge Creation Tacit KnowledgeKnowledge Creation Tacit Knowledge


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It is difficult to discern and difficult to express... enables people to have gutIt is difficult to discern and difficult to express... enables people to have gut

feelings that something is wrong or missing. It is knowing how to ride afeelings that something is wrong or missing. It is knowing how to ride a

bike, how tobike, how to recogniserecognise the smell of coffee, how to develop lasting clientthe smell of coffee, how to develop lasting client

relationships, when to buy and sell, and which new venture is likely to work.relationships, when to buy and sell, and which new venture is likely to work.

It isIt is notnot book knowledge; rather, it is knowledge developed throughbook knowledge; rather, it is knowledge developed through

experienceexperience..

Want to Manage Tacit Knowledge?, Shawn Callahan, director ofAnecdote Pty Ltd former KM practice leader for IBM AustraliaWant to Manage Tacit Knowledge?, Shawn Callahan, director ofAnecdote Pty Ltd former KM practice leader for IBM Australia

tacit knowledge can fail miserably at times, because it tries to mask tacit knowledge can fail miserably at times, because it tries to maskitself as being rational or logical.itself as being rational or logical.

Tacit Knowledge in Professional Practice,Tacit Knowledge in Professional Practice, by Robert J. Sternberg, JosephA. Horvathby Robert J. Sternberg, JosephA. Horvath -- 19991999

Hence, it is possible that:Hence, it is possible that:

Knowledge - TacitKnowledge - Tacit

Remember Polanyis ConceptRemember Polanyis Concept -- it reminds me ofit reminds me of and andthen a mistake is made in extrapolating.then a mistake is made in extrapolating.


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Negative ExampleNegative Example::

we had to make a quick decision concerning the acquisition of we had to make a quick decision concerning the acquisition ofan electroplating company. We didnt have the time to do anan electroplating company. We didnt have the time to do anadequate financial and market analysis. We did know that theadequate financial and market analysis. We did know that thebusiness was making a lot of profit and had been growing for thebusiness was making a lot of profit and had been growing for thepast few years. Ourpast few years. Ourintuitionintuition led us to believe that the businessled us to believe that the businesswill continue to grow and make money in the future. Thewill continue to grow and make money in the future. Thebusiness turned out to be a failure.business turned out to be a failure.

Tacit Knowledge in Professional Practice, by Robert J. Sternberg, JosephA. Horvath - 1999



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FirstFirst, it can confuse correlation with causation. Much of our tacit, it can confuse correlation with causation. Much of our tacit

knowledge is acquired by associating one object to another. Thisknowledge is acquired by associating one object to another. Thisassociative process is very powerful, but can be misleading associative process is very powerful, but can be misleading

SecondSecond, intuition often makes the mistake of extrapolating from past, intuition often makes the mistake of extrapolating from pastperformance.performance.

OnlyOnly ififwe can understandwe can understand the mechanismthe mechanism [[e.g. cyclinge.g. cycling] by which the] by which thegiven points were generated can we safely extrapolate beyond themgiven points were generated can we safely extrapolate beyond them

Tacit Knowledge in Professional Practice, by Robert J . Sternberg, JosephA. Horvath - 1999

Understanding the Mechanism or Principle is critical.Understanding the Mechanism or Principle is critical.

E.g. correlating Chinas market with SingaporesE.g. correlating Chinas market with Singapores

because we are mainlybecause we are mainly Chinese is riskyChinese is risky but thebut the

Terrain is differentTerrain is different..

Knowledge - TacitKnowledge - Tacit


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In practice, the distinction between tacit knowledge & explicit knowledgeIn practice, the distinction between tacit knowledge & explicit knowledge

gets a little fuzzy.gets a little fuzzy.

And the broad usefulness of tacit knowledge (relative to explicitAnd the broad usefulness of tacit knowledge (relative to explicitknowledge) tends to decrease when the members of the organization areknowledge) tends to decrease when the members of the organization areengaged in a wide variety of continuously changing,engaged in a wide variety of continuously changing, informationinformation--intensive tasksintensive tasks a common characteristic of modern organizations,a common characteristic of modern organizations,

especially in highespecially in high--technology markets.technology markets.

What is Knowledge ... and How Can You Manage it? The Knowledge Management Connection

AgreeAgree??

Industry or Terrain/Market specific?Industry or Terrain/Market specific?

Knowledge Tacit + ExplicitKnowledge Tacit + Explicit


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Explicit Knowledge > LogicalExplicit Knowledge > Logical AnalysisAnalysisof Market Infoof Market Info = Analytical Conclusion= Analytical Conclusion

Tacit Knowledge > Intuitive ThinkingTacit Knowledge > Intuitive Thinking= Feeling= Feeling

MatchMatch??

DecisionDecision

ReviewReview

Adopted from: Robert J. Sternberg & Joseph A. Horvath, Tacit Knowledge in Professional Practice

This is where Dialectic Thinking can play an importantThis is where Dialectic Thinking can play an importantrole. Diversity of Thinkers is critical.role. Diversity of Thinkers is critical.

Check & Balance in decision making and creating new knowledge in KM:Check & Balance in decision making and creating new knowledge in KM:

Knowledge Tacit + ExplicitKnowledge Tacit + Explicit

Faith and doubt both are needed, not as antagonists, but workingFaith and doubt both are needed, not as antagonists, but workingside by side to take us around the unknownside by side to take us around the unknown curve.curve.

LillianLillian SMITH (1887SMITH (1887 19661966))


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1. The Way (Dao) or Moral Principle - org believes in the Leaders vision,goals, strategies, benevolence; harmony among the stakeholders.

2. The Weather able to capitalise on the knowledge of cycles of changes ineconomics (local & global), industries, market influences, demographics,

socio-politics, etc.

3. The Terrain able to use the knowledge of variations in market segments,places, positioning, etc, to compete & win?

4. The Commander wise, skilled, an mgt style to capitalise on the above.

5. Law & Doctrine/System Org structure, Culture, Processes, Rewardsystem, Training/Skills of people, cost mgt, etc.





1:1-3

Be Prepared & Be Knowledgeable in:Be Prepared & Be Knowledgeable in:

This is where Tacit and Explicit Knowledge

inter-play to create new knowledge.


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Law & Doctrine/Sys refers to the guidelines, administrative systems &

processes, orgn/structure & control, & how resources are managed andcontrolled. 1:10

Be Prepared - Knowledge of Law/Doctrine/SysBe Prepared - Knowledge of Law/Doctrine/Sys

Commanding a large or small force the principle is the same; it is a matter ofdivision & orgn of forces. Fighting with a large or small force is similar, it is a

matter of troop formation & communications through the use of flags. 5:1,2

When united as one, the brave will not move forward by themselves norwill the cowards retreat by themselves. 7:24 - 25

This is where strategies and policies (Tacit Knowledge) areThis is where strategies and policies (Tacit Knowledge) are

translated into implementable processes and systemstranslated into implementable processes and systems(ExplicitKnowledge).(ExplicitKnowledge).


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Roles &Roles & ResponsibilitiesResponsibilities

..

o oValue Delivery SystemValue Delivery System

Customer

..

QualityManagementSystem

QualityManagementSystem

$ $

Cash to Cash CycleCash to Cash Cycle

StrategyStrategy

ExplicitKnowle

dgeoftheorgan

isation

ExplicitKnowle

dgeoftheorgan

isation

Law/Doctrine/SystemLaw/Doctrine/System


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The deployment of Strategies (Mental Map) into implementation/actionsby the various levels requires the transformation of Tacit Knowledge intoExplicit Knowledge that can be coded and transmitted as Plans. Plansare then transformed with Tacit Knowledge into Explicit Plans for thenext level and so on down the hierarchy.

The deployment of Strategies (Mental Map) into implementation/actionsby the various levels requires the transformation of Tacit Knowledge intoExplicit Knowledge that can be coded and transmitted as Plans. Plansare then transformed with Tacit Knowledge into Explicit Plans for thenext level and so on down the hierarchy.

STRATEG

Y

IMPLEMENTATIONPLANS

IMPLEMENTATIONPLANS

IMPLEMENTATIONPLANS

IMPLEMENTATIONPLANSIMPLEMENTATIONPLANS

E.g. Make Competition Irrelevant:E.g. Make Competition Irrelevant:

MonopoliseMonopolise Customers OrdersCustomers Orders

UnderstandsUnderstandshow customershow customersdecision makingdecision makingprocessprocess

Dev SeamlessDev SeamlessOrder sys forOrder sys for

customerscustomers

Educate CustomersEducate CustomersOn advantages ofOn advantages of

VMIVMI



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But while the appropriate infrastructure can enhance an organization's

ability to create and exploit knowledge, it does not insure that theorganization is making the best investment of its resources or that it ismanaging the right knowledge in the right way.

My research with more than 25 firms has found that the most importantcontext for guiding KM is the firm's strategy the link between KM and

business strategy, while often talked about, has been widely ignored inpractice.

Adapted from: Developing a Knowledge Strategy, Michael H. Zack, College of Business Administration, Northeastern University

But while the appropriate infrastructure can enhance an organization's

ability to create and exploit knowledge, it does not insure that theorganization is making the best investment of its resources or that it ismanaging the right knowledge in the right way.

My research with more than 25 firms has found that the most importantcontext for guiding KM is the firm's strategy the link between KM and

business strategy, while often talked about, has been widely ignored inpractice.

Adapted from: Developing a Knowledge Strategy, Michael H. Zack, College of Business Administration, Northeastern University



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manager as researcher and designer learning to see organisations as

systems, understanding the internal and external forces driving change,

and designing the learning processes for others to understand them also.

They should also research into systemic structure underlying business

issues and then develop microworlds and learning processes

manager as researcher and designer learning to see organisations as

systems, understanding the internal and external forces driving change,

and designing the learning processes for others to understand them also.

They should also research into systemic structure underlying business

issues and then develop microworlds and learning processes

SengeP., Roberts C, Ross R, Smith B, KleinerA, (1994), The Fifth Discipline Fieldbook N.Y.Doubleday Currency

Any organisation is a system requiring continuous holistic creation ofAny organisation is a system requiring continuous holistic creation of

new knowledgenew knowledge usingusing divergent tacitdivergent tacit thinking yet converging intothinking yet converging into

explicit knowledge for implementationexplicit knowledge for implementation HOW?HOW?



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Tacit knowledge and explicit knowledge are not totally separate but

mutually complementary entities. Without experience, we cannot trulyunderstand.

But unless we try to convert tacit knowledge to explicit knowledge, wecannot reflect upon & share it organizationally intellectual infrastructureof an orgn encourages its individual members to develop new knowledge

through new experiences.

Tacit knowledge and explicit knowledge are not totally separate but

mutually complementary entities. Without experience, we cannot trulyunderstand.

But unless we try to convert tacit knowledge to explicit knowledge, wecannot reflect upon & share it organizationally intellectual infrastructureof an orgn encourages its individual members to develop new knowledge

through new experiences.Knowledge Has to Do with Truth, Goodness, and Beauty, Conversation with Professor Ikujiro Nonaka,Tokyo, 23Feb96, Claus Otto Scharmer



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X-Fn ProjectsSuccesses &

Failures

Analyse,Generate

ideas fromlearnings

In-corporate TechSpecs & Process intoX-Functional Process,Project Mgt Process,Input into Contracts,Modify Training &Training, etc.

Operations

Regular Reviews & DiscussionForums include in-depth discussionson the principles & concepts ofdecision making even betweenindividuals are encouraged;innovation culture encouragesindividual willingness to share

Combination (Explicit-Explicit)

Example:Example: Systems of Reviews &Systems of Reviews & OperationsOperations -- Transferring &Transferring &

CreatingKnowledge.CreatingKnowledge.

Root Cause Analysis &Discussion

P

DC

A

RR

R

R

Socialization (Tacit-Tacit)

Externalisation (Tacit-Explicit)Internalisation(Explicit-Tacit)

FutureFutureCapabilityCapability

NewNewK

nowledgeK

nowledge

ExplicitExplicitKnowledgeKnowledge

Corrective&

Pr

eventive

Ac

tion

Requests

(C

PAR)



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[Organisations] protect their knowledge resources by recruiting and

developing intelligent, loyal and committed employees and support them

with a culture of learning, commitment and collaboration.

explicit knowledge may diffuse out of the firm, the richer tacit

knowledge providing the firm its sustainable knowledge-advantage still

remains within the firm advantage comes from being able to absorb

external knowledge and integrate it with their internal knowledge to

develop new insights faster than the competition.

Knowledge is the fundamental basis of competition.

Developing a Knowledge Strategy, Michael H. Zack, College of Business Administration, Northeastern University

[Organisations] protect their knowledge resources by recruiting and

developing intelligent, loyal and committed employees and support them

with a culture of learning, commitment and collaboration.

explicit knowledge may diffuse out of the firm, the richer tacit

knowledge providing the firm its sustainable knowledge-advantage still

remains within the firm advantage comes from being able to absorb

external knowledge and integrate it with their internal knowledge to

develop new insights faster than the competition.

Knowledge is the fundamental basis of competition.

Developing a Knowledge Strategy, Michael H. Zack, College of Business Administration, Northeastern University

Law/Doctrine/Sys Protecting Tacit KnowledgeLaw/Doctrine/Sys Protecting Tacit Knowledge


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1. Mentoring by self reading, observation & practicing HIGHLYRECOMMENDED employees own his/her own development.

2. Communicating situations/challenges best visually & verbally.

3. Story Telling a favourite past time of leaders.

4. Coaching by strong people leaders/consultants experientialAction Learning with some form of mentoring.

5. Mentoring by leaders deliberate effort by orgns, e.g. lead TaskForces, Projects, etc.

6. Education/Training in theory & processes workshops

conducted by management and specialist consultants.7. Case Records with commentaries made available on-line

8. Systems and processes that facilitates direct & indirect sharingof Tacit Knowledge to capture and transform into ExplicitKnowledge Spiral of Organizational Knowledge Creation, e.g.

Community of Practice.

1. Mentoring by self reading, observation & practicing HIGHLYRECOMMENDED employees own his/her own development.

2. Communicating situations/challenges best visually & verbally.

3. Story Telling a favourite past time of leaders.

4. Coaching by strong people leaders/consultants experientialAction Learning with some form of mentoring.

5. Mentoring by leaders deliberate effort by orgns, e.g. lead TaskForces, Projects, etc.

6. Education/Training in theory & processes workshops

conducted by management and specialist consultants.7. Case Records with commentaries made available on-line

8. Systems and processes that facilitates direct & indirect sharingof Tacit Knowledge to capture and transform into ExplicitKnowledge Spiral of Organizational Knowledge Creation, e.g.

Community of Practice.

Tacit Knowledge is best transferred through:Tacit Knowledge is best transferred through:

Self

Managers

Structure



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Good MgtGood Mgt inclincl KMKM -- KK

Creation/Teamwork &Creation/Teamwork &Education/TrainingEducation/Training

Good MgtGood Mgt inclincl KMKM -- KCreationKCreation/Teamwork & Training/Teamwork & Training

Good Mgt & TeamworkGood Mgt & Teamwork& Training, no KM& Training, no KM

Poor Mgt but Self Motivated IndividualPoor Mgt but Self Motivated Individual

Poor ManagementPoor Management

ValuetoOrga

nisation

ValuetoOrga

nisation

OriginalOriginalCostCost

TimeTime

Cost ofC&BCost ofC&B

Value toValue toOrgn.Orgn.

Recruitment ErrorRecruitment Error



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Expert TacitKnowledge

Expert TacitK

nowledge

Expert TacitKnowledge

ExpertTacit

KnowledgeExplicit

Knowledge

Combine diverse Tacit Knowledge to formulate a New Analysis Model(Explicit Knowledge):Combine diverse Tacit Knowledge to formulate a New Analysis Model(Explicit Knowledge):

Self-Regulation

Community

Of Practice

Community

Of Practice


Protecting & using Tacit Knowledge through communities of practiceProtecting & using Tacit Knowledge through communities of practice


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Want to manage tacit knowledge? Communities of practice offer a versatile solution, Shawn Callahan

Protecting & using Tacit Knowledge through communities of practiceProtecting & using Tacit Knowledge through communities of practice

First,First, these groups enrich the context around their area of interest. Theythese groups enrich the context around their area of interest. Theyenhance the artifacts (such as documents & tools) that already exist; andenhance the artifacts (such as documents & tools) that already exist; andthey create new artifacts enhanced meaning for the group and, as theythey create new artifacts enhanced meaning for the group and, as theydo, more knowledge becomes unspokendo, more knowledge becomes unspokenmore tacit knowledge ismore tacit knowledge iscreated.created.

Secondly,Secondly, the increasing interaction among members of the group,the increasing interaction among members of the group,together with the enriched context described above, enables members totogether with the enriched context described above, enables members torespond quicklyrespond quickly to unusual & unpredictable requests. This is because theto unusual & unpredictable requests. This is because thecommunity of practice has been in the habit of posing (& exploring) novelcommunity of practice has been in the habit of posing (& exploring) novelquestions.questions.

Thirdly,Thirdly, a deeper & wider pool of expertise from which to draw... not a deeper & wider pool of expertise from which to draw... notlocked up in one individual.locked up in one individual.



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Want to manage tacit knowledge? Communities of practice offer a versatile solution, Shawn Callaha

This is a good formal or Informal System ofKnowledge Management.This is a good formal or Informal System ofKnowledge Management.

However, need to avoidHowever, need to avoid G

roup Think,G

roup Think, e.g. danger in Benchmarkinge.g. danger in Benchmarkinghow others do it in similar Market situations.how others do it in similar Market situations.

Fourthly,Fourthly, members of the community develop an intuitive understandingmembers of the community develop an intuitive understanding

of how to tackle issues in their field of expertise. They develop thisof how to tackle issues in their field of expertise. They develop thisintuitive knowledge by undertaking tasks, reflecting,intuitive knowledge by undertaking tasks, reflecting, asking questionsasking questions ofofone another, andone another, and listening to the storieslistening to the stories of other community members.of other community members.

Finally,Finally, and most importantly, new members of the community areand most importantly, new members of the community areeffectively given permissioneffectively given permission to associateto associate with the more experienced andwith the more experienced and

more senior members of themore senior members of the organisationorganisation. This is what it means to be part. This is what it means to be partof a community.of a community.



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Example: Managing Terrain/Market knowledge in an industry cluster:Example: Managing Terrain/Market knowledge in an industry cluster:

Circuit City and Toys 'R' Us focus their retailing knowledge on oneCircuit City and Toys 'R' Us focus their retailing knowledge on oneproduct category at the expense of others.product category at the expense of others.

In comparison, many broadIn comparison, many broad--line retailers, led by Walline retailers, led by Wal--Mart realize thatMart realize thatwhile they know some things about retailing tens of thousands ofwhile they know some things about retailing tens of thousands ofproducts to the consumer market, their suppliers are able to develop aproducts to the consumer market, their suppliers are able to develop a

more focused understandingmore focused understanding

The retailer is, in fact, operating as a knowledge integrator, integratingThe retailer is, in fact, operating as a knowledge integrator, integratingthe knowledge of many suppliers to better serve consumers.the knowledge of many suppliers to better serve consumers.

Developing a Knowledge Strategy, Michael H. Zack, College of Business Administration,Developing a Knowledge Strategy, Michael H. Zack, College of Business Administration, NortheasternNortheastern UniversityUniversity



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Thats the way we do things around here.Thats the way we do things around here.

This phrase (and others like it) typically refers to the complex,This phrase (and others like it) typically refers to the complex,

subtle practices that become ingrained in ansubtle practices that become ingrained in an organizationsorganizations

cultureculture, to the point where they become part of its identity., to the point where they become part of its identity.

Habitual thoughts andHabitual thoughts and behaviorsbehaviors are not bad in themselvesare not bad in themselvesBut when circumstances shift or the company becomesBut when circumstances shift or the company becomes

dysfunctional, those habits may need substantive change.dysfunctional, those habits may need substantive change.

Thats the Way We (Used to)Do ThingsAround Here, Jeffrey Schwartz, Pablo Gaito, and Doug Lennick, S+B, 22Feb11

Risk of Group Think in KM must be managed by systemsRisk of Group Think in KM must be managed by systems

But why experienced managers get trapped in Group Think?

Because it feels good!



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59

TheThe basal gangliasbasal ganglias processing, in particular, is so rapid compared toprocessing, in particular, is so rapid compared to

other brain activity that it canother brain activity that it can feel physically rewardingfeel physically rewarding every time the every time theneuronal patterns in the basal ganglia are invoked, they become furtherneuronal patterns in the basal ganglia are invoked, they become furtherentrenched; they forge connections with one another and with otherentrenched; they forge connections with one another and with otherfunctionally related brain areas, and these neural links (sometimesfunctionally related brain areas, and these neural links (sometimescalled action repertoires)called action repertoires) become stronger and more compellingbecome stronger and more compelling..

This helps explain why when people in a workplace talk about the wayThis helps explain why when people in a workplace talk about the wayto do things, they often reinforce the link between their own neuralto do things, they often reinforce the link between their own neuralpatterns and the culture of the company. If an organizational practicepatterns and the culture of the company. If an organizational practicetriggers their basal ganglia, it can become collectively ingrained andtriggers their basal ganglia, it can become collectively ingrained andextremely difficult to dislodge.extremely difficult to dislodge.

Thats the Way We (Used to)Do ThingsAround Here, Jeffrey Schwartz, Pablo Gaito, and Doug Lennick, S+B, 22Feb11



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At work, being forced to try something new can trigger fear and angerAt work, being forced to try something new can trigger fear and anger

(sometimes called the (sometimes called the amygdalaamygdala hijackhijack), the urge to flee In the grip), the urge to flee In the gripof such emotions, people resist change. Their capacity for rational andof such emotions, people resist change. Their capacity for rational and

creative thinking is also diminished; they revert to their rotecreative thinking is also diminished; they revert to their rote behaviorsbehaviors,,

such as arguing, passivesuch as arguing, passive--aggressive compliance, or covert resistance.aggressive compliance, or covert resistance.

To overcome this reversion train to recognize the source of a strongTo overcome this reversion train to recognize the source of a strong

emotion even as it is triggered, and to find more effective ways ofemotion even as it is triggered, and to find more effective ways of

responding.responding.

Adapted from: Thats the Way We (Used to)Do Things Around Here, Jeffrey Schwartz, Pablo Gaito, and Doug Lennick, S+B, 22Feb11

Working in any corporation may lead people to adopt repetitive patterns ofWorking in any corporation may lead people to adopt repetitive patterns of

behaviorbehavior. But the neural connections remain plastic. Once people know. But the neural connections remain plastic. Once people know

how to bring the impartial spectator into play, they can recognize whenhow to bring the impartial spectator into play, they can recognize when

their old habituated neural patterns no longer serve them (or theirtheir old habituated neural patterns no longer serve them (or their

company) well, and reshape those patterns in new directions.company) well, and reshape those patterns in new directions.



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The first mistake is to direct learning initiatives toward training individuals& building job skills, rather than toward developing team & organisationalcapabilities.

Another common mistake is positioning learning as a stand-alone

The cure is closer integration with the biz ensure alignment withstrategic objectives Employees are held accountable for learning

Some companies also establish corporate universities as hubs forexecutive and employee education, centers of excellence, vehicles forbuilding relationships with suppliers & key customers

The first mistake is to direct learning initiatives toward training individuals& building job skills, rather than toward developing team & organisationalcapabilities.

Another common mistake is positioning learning as a stand-alone

The cure is closer integration with the biz ensure alignment withstrategic objectives Employees are held accountable for learning

Some companies also establish corporate universities as hubs forexecutive and employee education, centers of excellence, vehicles forbuilding relationships with suppliers & key customers

Adapted from:ATalent forTalent, Richard Rawlinson, Walter McFarland, and Laird Post


Learning systems can help minimise Group Think by using externalLearning systems can help minimise Group Think by using external

educators.educators.

But most education systems are inadequate, why?But most education systems are inadequate, why?


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Therefore it is said: If you

know the others & yourself, you will not be in jeopardy in a 100battles.

dont know the others but knows yourself, you will have an equalchance of a victory or defeat.

dont know the others & dont know yourself, you will be injeopardy in every battle.

3:18

Be Prepared - Know Yourself & OthersBe Prepared - Know Yourself & Others

Others Enemy

Yourself Others


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Integrative Thinking: We tested it [Febreze] on a small scale with

Japanese consumers. They rejected it [but] 20% of the first survey groupabsolutely loved the product.

Japanese people can be hypersensitive to malodors They changed thefragrance from high profile to a very low profile scent the bottle to amuch more delicate design that more Japanese people felt comfortablehaving visible in their homes. They changed the spray pattern to a mistit became a phenomenal success in Japan.

It involved people in a variety of functions and at least 2 regions it cameto fruition because we were skilled at having the kinds of processes andconversations that would lead people to synthesize their ideas.

Adapted from; P&Gs Innovation Culture,A.G. Lafley, with an introduction by Ram Charan

Integrative Thinking: We tested it [Febreze] on a small scale with

Japanese consumers. They rejected it [but] 20% of the first survey groupabsolutely loved the product.

Japanese people can be hypersensitive to malodors They changed thefragrance from high profile to a very low profile scent the bottle to amuch more delicate design that more Japanese people felt comfortablehaving visible in their homes. They changed the spray pattern to a mistit became a phenomenal success in Japan.

It involved people in a variety of functions and at least 2 regions it cameto fruition because we were skilled at having the kinds of processes andconversations that would lead people to synthesize their ideas.

Adapted from; P&Gs Innovation Culture,A.G. Lafley, with an introduction by Ram Charan

Know Others: BuyersKnow Others: Buyers

What knowledge is at play? Explicit Knowledge orTacit Knowledge?


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Unveiling the HP Mini 1000 Vivienne Tam notebook on the catwalk ofUnveiling the HP Mini 1000 Vivienne Tam notebook on the catwalk of

Tams 2008 fashion show at New Yorks Fashion WeekTams 2008 fashion show at New Yorks Fashion Week

The launch of the HP Tech Chic 2010 programme marries fashion andThe launch of the HP Tech Chic 2010 programme marries fashion andtechnology connect meaningfully with women across Asia Pacific,technology connect meaningfully with women across Asia Pacific,says Dennis Marksays Dennis Mark

A women's worth,A women's worth, DeepaDeepaBaljiBalji JegarajahJegarajah, Marketing, Marketing--interactive.com,Aug 19, 2011interactive.com,Aug 19, 2011

Know Others: BuyersKnow Others: Buyers



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65

[Zander & Jobs] announced a joint venture to cooperate in combining

cellular telephony with devices that could easily bring music to themasses [Zander] happily gave him all the access he wanted to the bestand brightest of Motorola's radio frequency engineers. What he thoughthe was getting in return is less clear.

Not surprisingly, after Mr. Jobs had gotten what he needed, the Motoroladeal went nowhere.

Joan Lappin, Gramercy Capital, 01.16.09

[Zander & Jobs] announced a joint venture to cooperate in combining

cellular telephony with devices that could easily bring music to themasses [Zander] happily gave him all the access he wanted to the bestand brightest of Motorola's radio frequency engineers. What he thoughthe was getting in return is less clear.

Not surprisingly, after Mr. Jobs had gotten what he needed, the Motoroladeal went nowhere.

Joan Lappin, Gramercy Capital, 01.16.09

Know Others: Alliance/partnersKnow Others: Alliance/partners



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66

KnowledgeKnowledge

ManagementManagementEffects ofCultureEffects ofCulture


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67

One of the major barriers to knowledge sharing is cultural differences.

This problem is even more prominent in global virtual collaborationsettings since the team members may come from different departments,organizations and/or different countries.

Thus, different levels of culture may shape members knowledge sharingbehavior, but little research has explored the effect of cultural differences

on knowledge sharing activities in virtual collaboration .The Impact of National Culture on Knowledge Sharing Activities in Global Virtual Collaboration: the Chinese Case, Kangning Wei, School of

Information Studies, Syracuse University

Knowledge Management Effects ofCultureKnowledge Management Effects ofCulture


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KM initiatives are closely linked to the social & cultural aspects of a

region. This is especially relevant in China history has shown, theremay be grave consequences for embarking on operations in Chinawithout a proper understanding of the business implications of thesecultural factors.

The keys to successful implementation ofKM initiatives depend on

understanding the cultural norms impactingK

M, achieving integrationand synergy with global KM, and implementing knowledge sharing withcustomers.

Tacit knowledge is transmitted through personal, often social, exchangesbetween staff members. Thus the underlying communication protocols,which are inextricably linked to the culture, greatly impact knowledge

management initiatives.

Adapted from: KnowledgeAdvantage, Sridhar Vedala and Nick Rossiter, Enterprise China, 2004

Knowledge Management effects ofCultureKnowledge Management effects ofCulture


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The traditional Chinese culture has been described as being group-

orientated to some extent. The key characteristic of any group is trustand so at least knowledge has the potential to flow freely within such

groups However frustrating such efforts are the lack of Trust within

Chinese society generally, and the focus on individual attainment that

characterizes modern China's rush for economic gains.

Corporate cultures within China are actually very political, and front-lineemployees often respond by being cordial to all, but only actually taking

actions that will assist their ascent within these politically-charged

structures not fertile ground forKM initiatives to take root.

KnowledgeAdvantage, Sridhar Vedala and Nick Rossiter, Enterprise China, 2004



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Guanxi - extends beyond business to political, social and other aspects

of life, and in addition to its role in facilitating all manner of business &political exchanges, it also serves as an instrument for acquisition anddissemination of high-value information.

Hierarchy - Seniority & position become the key criteria for knowledgeflow, meaning that knowledge flow is usually top-down This obstructscommunication flow between senior and junior staff in the organization,and scuttles any initiatives from junior staff.

Given the dynamism of the Chinese economy and the spectacular surgein fortunes ofChina's nouveau riche, many tend to concentrate on short-term goals anathema to KM, which fundamentally requires a longer-term perspective towards creating, managing and leveraging knowledge

as a source of competitive advantage.Knowledge Advantage, Sridhar Vedala and Nick Rossiter, Enterprise China, 2004



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The Chinese value learning and knowledge. This is reflected in almost

every area: from the academic arena, where students value intelligenceand competitiveness, to the management arena where people may beopen to new management practices and concepts if taught properly.

The key to deploying KM programs across the orgn will depend on:

Having a clear strategy for integrating theC

hina business unit'soperations into global knowledge creation & transmission processes.

Understanding of cultural norms that may facilitate/hinderKM in China.

Having a strategy for extending the KM gains across the entire supplychain.

By fully understanding the macro issues and key success factors thatimpact KM outcomes in China, the implementation of specific KM tools orinitiatives will be a lot less problematic.

Adapted from; KnowledgeAdvantage, Sridhar Vedala and Nick Rossiter, Enterprise China, 2004


Documents

Knowledge in Biz Warfare Handout