THE KNOWLEDGE THE KNOWLEDGE ENTERPRISEENTERPRISE

The choice for intelligent The choice for intelligent business strategies business strategies

Strategische WissensnetzeStrategische Wissensnetze

IAT Gelsenkirchen, 21 IAT Gelsenkirchen, 21 Oktober1999Oktober1999

prof. dr. J.F. den Hertogprof. dr. J.F. den Hertog

MERIT: univ. MERIT: univ. Maastricht/AltuitionMaastricht/Altuition

Please toPlease tomeet you...meet you...

11 years Philips11 years Philips4 science policy4 science policy14 years external14 years externalconsultantconsultant14 years parttime14 years parttimeprofessorprofessor

Our Our bookbook

AGENDA AGENDA

The silent revolution: The silent revolution: URGENCYURGENCY The The Knowledge Enterprise: Knowledge Enterprise: VISIONVISION The transformation: The transformation: CHANGECHANGE Coding & valueing knowledge: Coding & valueing knowledge:

CONTENTCONTENT ““Are we doing the right things?”: Are we doing the right things?”:

knowledge knowledge AMBITION.AMBITION.

2 BASIC QUESTIONS2 BASIC QUESTIONS

STRATEGY:STRATEGY: Are we doing the right Are we doing the right things?things?

ORGANIZATION:ORGANIZATION: Are we doing the Are we doing the right things right?right things right?

WHAT IT IS NOT ALL WHAT IT IS NOT ALL ABOUT:ABOUT:

a few misunderstandings.a few misunderstandings.

A new profession A new profession A box full of ICT toysA box full of ICT toys The return of central expert powerThe return of central expert power BPR for knowledge workers BPR for knowledge workers Invention of the HRM departmentInvention of the HRM department The latest management hypeThe latest management hype

STEERING ON KNOWLEDGESTEERING ON KNOWLEDGE

Doing the right things.Doing the right things.Doing the right things rightDoing the right things right

WHAT IT IS ALL ABOUT:WHAT IT IS ALL ABOUT:

HALFORDS: Added value for the customer on basis HALFORDS: Added value for the customer on basis knowledge and experience.knowledge and experience.

A good bike is a matter of personal fit. For that we needA good bike is a matter of personal fit. For that we needthe masters eye. Each shop has a certified bike expert the masters eye. Each shop has a certified bike expert He (or she) is continiously trained and knows the He (or she) is continiously trained and knows the latest techniques. And transfers his (of her) latest techniques. And transfers his (of her) knowledge to the other sales staff, enabling them toknowledge to the other sales staff, enabling them toshow you the right way.show you the right way.

THE SILENT REVOLUTIONTHE SILENT REVOLUTION

Increasing pace andIncreasing pace andcomplexity of changecomplexity of change Value shiftValue shift

Fossilized organizationsFossilized organizations

VALUE SHIFTVALUE SHIFT

Quality, price and pace are not Quality, price and pace are not enough to make the difference enough to make the difference anymore.anymore.

Doing things differently & doing Doing things differently & doing different things; the things others different things; the things others cannot do.cannot do.

ON BASIS OF UNIQUE ON BASIS OF UNIQUE KNOWLEDGE!!!!KNOWLEDGE!!!!

SIGNALSSIGNALS

Burn-out of knowledge workersBurn-out of knowledge workers Too little: high risk/high rewardToo little: high risk/high reward Time-to-marketTime-to-market Others are faster.Others are faster. Frequent change of specificationsFrequent change of specifications Too many consultantsToo many consultants NIH-syndromeNIH-syndrome

SIGNALS cont’dSIGNALS cont’d

Recruitment becomes a problem.Recruitment becomes a problem. Placement becomes a problem.Placement becomes a problem. Personnel turnover.Personnel turnover. You are going to imitate others.You are going to imitate others. You become imitated.You become imitated.

PUT A FROG IN A PAN PUT A FROG IN A PAN BOILING WATERBOILING WATER

And the frog jumps out.And the frog jumps out.

But place him in cold water on a But place him in cold water on a hot stovehot stove

He boils to death.He boils to death.

KNOWLEDGE KNOWLEDGE MANAGEMENT?MANAGEMENT?

KNOWLEDGE KNOWLEDGE MANAGEMENT:MANAGEMENT:

controlcontrol solution-drivensolution-driven subsystemssubsystems

KNOWLEDGE KNOWLEDGE ENTERPRISE:ENTERPRISE:

developmentdevelopment vision-drivenvision-driven the system as a the system as a

wholewhole

THE KNOWLEDGE THE KNOWLEDGE ENTERPRISEENTERPRISE

STRATEGICAL PERSPECTIVESTRATEGICAL PERSPECTIVE:: The organization as a knowledge The organization as a knowledge

developping, knowledge developping, knowledge transferring, and knowlegde using transferring, and knowlegde using system,system,

Where risky choices must be Where risky choices must be made.made.

ImpulseImpulseCoding:Coding: What do we know? What do we know?Valueing:Valueing: What do we want What do we wantto know?to know?

The KNOWLEDGE AMBITIONThe KNOWLEDGE AMBITION

Functional demandsFunctional demands

REDESIGNREDESIGNInstruments:Instruments:- - HRMHRM- - ICTICT- - OrganizationOrganization

KNOWLEDGE KNOWLEDGE ENTERPRISE:ENTERPRISE:a newa new configurationconfiguration

THE KNOWLEDGE THE KNOWLEDGE AMBITIONAMBITION

The strategic objectives of the The strategic objectives of the knowledge enterprise.knowledge enterprise.

The choice for those competencies The choice for those competencies which give the organisation which give the organisation competitive advantage in the competitive advantage in the future. future.

DEFINING THE DEFINING THE KNOWLEDGE AMBITIONKNOWLEDGE AMBITION

Coding: kinds, types, cluster, setsCoding: kinds, types, cluster, sets Linking sets of knowledgeLinking sets of knowledge Valueing: Valueing:

core/enabling/exchangeblecore/enabling/exchangeble Stretching: That is our ambition!Stretching: That is our ambition!

THREE KINDS OF THREE KINDS OF KNOWLEDGE KNOWLEDGE

Functional knowledgeFunctional knowledge Operational knowledgeOperational knowledge Contextual knowledgeContextual knowledge

KINDS OF KNOWLEDGEKINDS OF KNOWLEDGEkinds NATURE TRANSFER EXAMPLE

functionalknowledge

professional,disciplinairyexplicit

education,professionalliterature

accounting,plumbing,microbiology

operationalknowledge

practical,know how,implicit

by doing,experience,collegues

designing aweb-site

contextualknowledge

about localcircumstan-ces

being there,referencebooks

automation inhotels andrestaurants

THE KNOWLEDGE THE KNOWLEDGE TRIANGLETRIANGLE

Functional knowledgeFunctional knowledge

Contextual knowledgeContextual knowledgeOperational knowledgeOperational knowledge

CREATING NEW CREATING NEW KNOWLEDGEKNOWLEDGE

newnewoperationaloperationalknowledgeknowledge

new functionalnew functionalknowledgeknowledge

newnewcontextualcontextualknowledgeknowledge

Like in mountaineering:Like in mountaineering:

fixing three pointsfixing three pointsmoving one pointmoving one point

steps:steps:not too bignot too bignot too small not too small

STRETCHINGSTRETCHINGCOMPETENCIESCOMPETENCIES

COMPETENCIESCOMPETENCIES

Core competenciesCore competencies Enabling competenciesEnabling competencies Exchangeable competenciesExchangeable competencies

COMPETENCIES COMPETENCIES Core compe-tencies

Enablingcompe-tencies

Exchangeablecompetencies

Characteris-tics

-advantage forcustomers-unique-synergy

-sensitive-entwined-cheaper &better-capital loss

-no impact oncompetitiveadvantage

Yield -competitiveadvantage

-added value -costs-no addedvalue

catched in mattercatched in matter

tangibletangible

easy to copyeasy to copy

EXPLICITEXPLICITKNOWLEDGEKNOWLEDGE

TACIT KNOWLEDGETACIT KNOWLEDGE

Between the ears� Between the ears�

� IntangibleIntangible

� Hard to copyHard to copy

� Learning by doingLearning by doing

� SocialisationSocialisation

� ArticulationArticulation

NATIONALE NATIONALE NEDERLANDENNEDERLANDEN

a new configurationa new configuration

Focus on customers and areasFocus on customers and areas Integrated multifunctional teams Integrated multifunctional teams

(acceptance &assessment) (acceptance &assessment) Integration front and back officeIntegration front and back office Knowledge clustersKnowledge clusters Training programme Training programme

NATIONALE NATIONALE NEDERLANDEN: NEDERLANDEN:

KNOWLEDGE SYSTEMKNOWLEDGE SYSTEM

Knowledgebank

ManagementteamManagementteamcoaching, steering,coaching, steering,

local teamlocal team

coördinatorcoördinator

locallocalspecialistsspecialists

trainertrainer

KNOWLEDGE PARADOXKNOWLEDGE PARADOX

ICT enables us to transfer implicit ICT enables us to transfer implicit knowlegde into explicit knowledge.knowlegde into explicit knowledge.

But as soons as implicit knowledge But as soons as implicit knowledge becomes explicit its value vanishes.becomes explicit its value vanishes.

What is crucial:What is crucial: THE CONTINIOUS FLOW OF THE CONTINIOUS FLOW OF

KNOWLEDGEKNOWLEDGE

FINFIN

Schlusz, ende, finish, slotSchlusz, ende, finish, slot