Class 5: ISM P3 January 2005

Knowledge & Networks Enabling Technologies (KNETs)

Class 5: ISM P3 January 2005

FirstFirst““GUI”GUI”

Xerox PARC, California

First MouseFirst Mouse

First NetworkFirst Network

Very creative!

Class 5: ISM P3 January 2005

Tech Reps at Xerox

Process Perspective• Read error codes and che

ck copier-independent manual of copier

• Follow manual instructions for fixing the copier step by step

• No memory or communication of experience

Practice Perspective

• Copier specific knowledge not documented anywhere

• Call up for help• Collective improvisation

and problem solving• Share learned tips

through “war stories”

Class 5: ISM P3 January 2005

Processes Vs. Practices

Process• The way tasks are organize

d a priori• Routine• Orchestrated• Assumes a predictable envi

ronment• Relies on explicit knowledg

e• Linear

Practice • The way tasks are done• Spontaneous• Improvised• Responds to a changing, unpre

dictable environment• Driven by tacit knowledge

• Weblike

Seely Brown & Duguid, 2000

Towards PET

(Explicit knowledge)

Towards KNET

(Tacit knowledge)

Class 5: ISM P3 January 2005

EUREKA: Beyond Processes and PETs

Repository of tips (unstructured data) for tech reps

Accessible on repair site – through the Internet

36 000 tips in 2000; 2003: 50 000 tips in 7 languages

18 000 technicians connected (2003)

Class 5: ISM P3 January 2005

Class 5: ISM P3 January 2005

Knowledge & Network Enabling Technologies (KNET)

Most communication technologies (from the telephone to email and videoconference)

Experts directories (“yellow pages”)

Online discussion forums

Unstructured databases

Portals

Search engines and text/data mining

Blogs

Class 5: ISM P3 January 2005

KNET’s Impact

Hard (measurable)Hard (measurable) Soft (non-Soft (non-measurable)measurable)

Reduced costs: decreases service costs, decreases new product (e.g. code) development costs

Increased efficiency: faster trouble-shooting, faster customer service, steeper learning curve

Measurable innovation: faster product cycle, more patents, more reliable products

+ Transfer of tacit knowledge+ Increased organizational memory+ Increased employee and customer satisfaction + Many spill-over effects (e.g. Eureka to manufacturing)

+ More innovation (?)? Culture Change (more sharing, more socialization?)

- Information overload- Decreased creativity (“re-use” solutions)- Lack of “face-to-face” socialization

Transfor

m

Class 5: ISM P3 January 2005

Some MetricsEureka Active Users

0

10000

20000

30000

1999 2000 2001 2002

Number of Calls Solved with Eureka

0

100000

200000

300000

400000

1999 2000 2001 2002

Service Cost Savings in Millions with Eureka

0

5

10

15

20

1999 2000 2001 2002

Class 5: ISM P3 January 2005

KNET and culture change•Culture is embodied in artifacts. You can’t change culture, only the artifacts, and technology is one of them:

KM Implementation as a tool for culture change

•A chicken-and-egg problem: change the culture to implement successfully the technology, or implement successfully the technology to change the culture? Where to start?

How are KNETs adopted?

Class 5: ISM P3 January 2005

Early Approaches to KNET

Put the knowledge of the organization in a database

But…Many useless databases with outdated information

Class 5: ISM P3 January 2005

Eureka’s Success: Part I: Incentives

An incentivized community already existed

Incentives to share knowledge existed: Reputation was important Everyone saves time and effort

Meetings would be organized Technicians already shared knowledge

Class 5: ISM P3 January 2005

Part II: The Eureka Technology: A Simple Socio-Technical Design

A very simple interface fitting what people already do:

War stories format – unstructured data/text

Reputation of technicians/author is visible and preserved through a voting mechanism

Simple reviewing and quality control

Technology adapts over time to users’ practices (e.g. incorporate sound, video, etc)

Very Simple Technology

Fitting existing work practices

Class 5: ISM P3 January 2005

Employees

Suggest

Validate

Use andImprove

TIP life cycle:Improve TIP or Replace

Comments

Review

Yes NO

Apply

CertifiedValid?

PendingSubmitTIP

TIP

Part III: A Coordination Process

Class 5: ISM P3 January 2005

The Lifecycle of Knowledge at Eureka: There is a Clear Coordination Process!

• An acceptance process: what can get in the system?

• A quality assurance process: keeping it up to date and rating it according to quality

• A removal process: what should get out of the system?

• And a reputation voting process

Class 5: ISM P3 January 2005

Part IV: Top Management Measures and Monitors Value of Eureka for Xerox

Faster, cheaper customer service (tens of millions saved)

Better manufacturing using the failure tips Information for new product development Improved logistics to avoid shipment

failuresMore knowledge for more innovation

Class 5: ISM P3 January 2005

• Knowledge lives in communities:

• The key to managing knowledge is connecting experts

• Develop communities of practice for strategic domains

• Technology is used to support the work of communities

New approaches to KNETs

Class 5: ISM P3 January 2005

What are Communities of Practice?

A group of people who… Share an interest in a topic - Domain

• Understand what the issues are• Agree on common approaches

Interact and build relationships - Community• Help each other solve problems and answer questi

ons• Network across teams and business units

Share and develop knowledge - Practice• Share information, insights and best practices• Build tools and a knowledge base

Class 5: ISM P3 January 2005

CoPs: Some ExamplesLaboratory experts in the field of corrosion

(e.g. VW Group)Engineers engaged in deep-water drilling (e.g.

Shell)Operational managers in charge of credit

checking (e.g. World Bank)Clubs of engineers and car designers (e.g.

DaimlerChrysler) Product delivery consultants (e.g. HP)Academic researchersThe Open Source movement

Class 5: ISM P3 January 2005

What Makes Communities Tick

Incentives Economic, social, psychological

Socio-technical (simple) Technology Design Flexible technology fitting work practices

Coordination Process Approval, reviewing, replacement etc

Top Management Involvement Provide incentives when needed Measure, monitor, and communicate value

Class 5: ISM P3 January 2005

Networked Business Functions

Communities (employees, researchers, customers, etc) for:

- Product development- Product testing- Marketing (“word of mouse”)- Customer support

The “re-organization” of the value chain: towards “networked business functions”

Class 5: ISM P3 January 2005

Key Lessons PETs for processes, KNETS for practices (but the line is

blurry!): structured versus unstructured data

Community based KNET adoption: Incentives to contribute and use Simple IT fitting existing work practices Clear coordination process Top management provides incentives if needed and

monitors/measures value

IT as an instrument for culture change: You need to start somewhere to change the culture and

technology is one way to start KNETs as a culture change tool: when communities

aren’t already there…

Class 5: ISM P3 January 2005

Next Class

Technology Evolution and Market Dynamics

- Diffusion dynamics of new technologies- The evolution of a technology company