KiKM - The Kaieteur Institute For Knowledge Management Toronto KM Cluster ® Fall 2003 Event The Real Time Knowledge Enterprise e-KNOWLEDGE MARKETS e-KNOWLEDGE MARKETS their emergence and evolution their emergence and evolution Bryan Davis, President, The Kaieteur Institute for Knowledge Management
Transcript
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KiKM - The Kaieteur Institute For Knowledge Management Toronto
KM Cluster Fall 2003 Event The Real Time Knowledge EnterpriseThe
Real Time Knowledge Enterprise e-KNOWLEDGE MARKETS their emergence
and evolution their emergence and evolution Bryan Davis, President,
The Kaieteur Institute for Knowledge Management
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KiKM - The Kaieteur Institute For Knowledge Management Abstract
This presentation discusses the recent emergence and evolution of
e- knowledge markets and exchanges. We review the types of
e-knowledge markets that have emerged to-date and examine the
real-world problems these structures are designed to help solve. We
argue that there are powerful underlying trends that are driving
continued innovation with these marketplaces which explains their
persistence, variety, and ubiquity. We review the coming challenge
of deploying e-knowledge marketplaces in support of the creation of
the adaptive real-time enterprise. We also take a critical look at
present short-comings and lack of maturity to-date. We pin- point
weakness that need to be addressed if these knowledge exchange
environments are going to live up to the tremendous
transformational promise they hold.
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KiKM - The Kaieteur Institute For Knowledge Management
e-Knowledge Markets As Enabling Infrastructure You cannot run on
tracks you have not laid Stan Davis, Futurist
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KiKM - The Kaieteur Institute For Knowledge Management
Knowledge Buyers, Sellers, and Brokers: The Political Economy of
Knowledge Rapidly or slowly, usefully or unproductively, knowledge
moves through organizations. It is exchanged, bought, bartered,
found, generated, and applied to work. Organizational knowledge is
dynamic: It is moved by a variety of forces. If we want knowledge
to move and be used more effectively, we need to better understand
the forces that drive it. We believe its movement is powered by
market forces similar to those that animate markets for more
tangible goods. There is a genuine market for knowledge in
organizations.1 Like markets for goods and services, the knowledge
market has buyers and sellers who negotiate to reach a mutually
satisfactory price for the goods exchanged. It has brokers who
bring buyers and sellers together and even some entrepreneurs who
use their market knowledge to create internal power bases.
Knowledge market transactions occur because all Laurence Prusak and
Don Cohen 1997.
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KiKM - The Kaieteur Institute For Knowledge Management
Knowledge Buyers, Sellers, and Brokers: The Political Economy of
Knowledge of the participants believe that they will benefit from
them in some particular way. In economists jargon, they expect the
transactions to provide utility. People search for knowledge
because they expect it to help them succeed in their work.
Knowledge is the most sought-after remedy to uncertainty. We all
try to reach knowledgeable people as soon as we are confronted with
the need to deliver a solution to a problem. When we supply
knowledge, we expect to benefit too. Cash is usually not involved
in these transactions, but that should not disguise the fact that a
market price system exists and payment is made or assumed. The
knowledge market, like any other, can be defined as a system in
which a scarce unit is exchanged for present or future value.
Understanding that there are knowledge markets and that they
operate similarly to other markets is essential to managing
knowledge successfully in organizations. Many knowledge initiatives
have been based on the utopian assumption that knowledge moves
without friction or motivating force, that people will share
knowledge with no concern for what they may gain or lose by doing
so. Laurence Prusak and Don Cohen 1997.
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KiKM - The Kaieteur Institute For Knowledge Management SKs
knowledge market helps power productivity SK Corp. has an online
store that is open 24 hours a day, 365 days a year. When the market
runs out of new stock, there is a sigh of frustration among the
hundreds of people who visit the site each day. But the store is
not a place where tangibles are for sale. It deals in the core
precursors to goods knowledge and ideas. SKs knowledge marketplace
opened in 1999, when SK introduced its Knowledge Management System,
which is a depository for 140,000 pieces of information. The
knowledge bank is open to all SK employees, who pay K-points to
each other for data. But what began as an experiment to enhance
worker productivity by widening the internal availability of the
knowledge stream soon became an asset earning tens of billion of
won for those who have valued information. In one case, SKs
know-how in oil refining amassed over 40 years has been parlayed by
company employees into a $16-million consulting contract with TOR,
an Indonesian oil company. This is not an unusual case, the market
is always full of company employees searching for information that
will flatten the learning curve, saving those other valuable assets
time and money. In another example, a member of Entrac, an SK
development team, visited SKs knowledge marketplace to research
terms for leasing software from an American firm. His experience
demonstrates how the K market can be beneficial intellectually and
monetarily. The Entrac member offered 50 K-points he had earned for
the information. He received feedback from 5 people who had
experience contracting with foreign firms and paid them equally.
Kim Hyun-su, an official of Factory facility technology, launched
as many products as 2,115. Yang Il-suk, a manager for the firms oil
and chemicals division, holds the highest number of points --
3,840, which are worth 384,000 won ($315). The points are taken
into consideration on the performance evaluations and they can be
converted to money and used at several shops and restaurants that
participate in the program. Once a year SK awards 1 million won to
the department or person who has sold the most products. A
Knowledge Management Team manager said, The program has done much
for increasing sales and activating the exchange of information. It
has also bridged the communications gap between employees and
managers. by Koh Yun-hee [email protected] 2003.03.10
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KiKM - The Kaieteur Institute For Knowledge Management
e-Knowledge Markets As Wealth Enablers Knowledge Capital
Intellectual Capital Structural Capital Customer Capital Social
Capital Intangible Value Digital Capital the means of production
are now the minds of the producers - Tapscott
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KiKM - The Kaieteur Institute For Knowledge Management
Emergence Of e-Knowledge Markets Taxonomy Knowledge Auctions
Knowledge Stores Knowledge Banks Q & A Exchanges Experts
Exchange
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KiKM - The Kaieteur Institute For Knowledge Management
Emergence Of e-Knowledge Markets Taxonomy e-Learning Exchanges
Intellectual Property Idea Exchange Talent Exchanges Community
Oriented or Social Capital Exchanges Exchanges Vertical
Knowledge
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KiKM - The Kaieteur Institute For Knowledge Management What
Problem Do They Solve ? Efficiently match supply and demand Connect
seekers and providers Opens Channels 24 x 7x 365 Stimulates
Innovation Enhances Flexibility Provide more accurate Performance
signals
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KiKM - The Kaieteur Institute For Knowledge Management What
Problems Do They Solve ? Enhances transparency Stimulates new value
and wealth Creates structural capital Networks knowledge
resources
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KiKM - The Kaieteur Institute For Knowledge Management The
Tacit Knowledge Problem Unique properties of Knowledge Access to
people and their ideas, and expertise Not all knowledge easily
codified Trust Community context Peer rating feedback also
important
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KiKM - The Kaieteur Institute For Knowledge Management Drivers
& Trends Information Explosion Growth in Knowledge Economy
Knowledge Work Knowledge Workers Free Agency Convergence of
community, internet, and e-markets
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KiKM - The Kaieteur Institute For Knowledge Management
Virtualization Of Markets 24x7x365 Electronic Communications
Networks Example The arrival Of ECNS (electronic communications
networks )
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KiKM - The Kaieteur Institute For Knowledge Management Markets
For Everything Timeless Ubiquitous Organic Evolutionary Internet
changes everything Arrival of e-Commerce ( Policy Analysis
Market..???)
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KiKM - The Kaieteur Institute For Knowledge Management Why Not
e-Bay For Ideas ? Trade Swap Exchange Auction Anytime Anywhere
Globally
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KiKM - The Kaieteur Institute For Knowledge Management Enabling
Technology New Engines Communications Search Question & Answer
Digital Publishing Of Content Expertise Matching Auction e-Commerce
Learning Management
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KiKM - The Kaieteur Institute For Knowledge Management
Intellectual Property Steady Growth in patents and trademarks
Licensing IP as part of smart Intellectual Asset Management Case
Example: Yet2.com ( recently acquired by Scipher)
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KiKM - The Kaieteur Institute For Knowledge Management IP
Marketplaces - Segments Technology Licensing Focused University
Technology Licensing Invention oriented Government Supported
Private Corporate Exchanges Free and Open Source Exchanges Idea
Exchanges Vertical Or Industry Specific Legal IP Services
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KiKM - The Kaieteur Institute For Knowledge Management A Model
e-Knowledge Market Registration Search & Navigatione-Commerce
Community TrustContent Performance Visualization Service &
Support Trading /Auction Engine Peer Rating System
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KiKM - The Kaieteur Institute For Knowledge Management
Subscription Upfront Activation Seller Oriented Other
RoyaltyUtilityFee For ServiceSyndicationFreeValue BasedLicensing
SponsoredAdvertisingMembership Dues MerchantAuctioneerInvestor
Equity BrokerTrust Agent IncubatorPay Per UseMicrocash
Micropayments Business Model Innovation
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KiKM - The Kaieteur Institute For Knowledge Management Portal
or Market Exchange Identity issue Strategy concern Portal vs
knowledge market Divergent or complimentary ?
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KiKM - The Kaieteur Institute For Knowledge Management Ideas
Exchange Ideas economy Tapping the global brain The old suggestion
box on steroids Can be open source model Inside and outside game
Always-on ever-net model Whats a good idea worth ?
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KiKM - The Kaieteur Institute For Knowledge Management Remote
Services Marketplace $ 850b globally (acc. to McKinsey) Free Agents
War For Talent Talent Retention Issue Case Example:
e-Lance.com
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KiKM - The Kaieteur Institute For Knowledge Management
Education & Learning $750b. Globally Demand For Continuous
Learning Opportunity for providers Reach Opportunity Rich media
will offer immersion and simulation experience Gaming industry a
lesson
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KiKM - The Kaieteur Institute For Knowledge Management
Community Oriented or Social Capital Exchanges Exchanges
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KiKM - The Kaieteur Institute For Knowledge Management Start-Up
Failures To-Date Dot bomb Under-capitalization Lack Of Critical
Mass Flawed Business Model Usability Lack of Community Yet, the
idea lives on..
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KiKM - The Kaieteur Institute For Knowledge Management Adoption
& Utilization Issues Diffusion of innovation Maturity Stability
Critical Mass Experience Standards, Conventions, & Rules Change
Management Disruption
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KiKM - The Kaieteur Institute For Knowledge Management A
Scenario Example In which an IP, Idea Exchange, Experts Exchange,
Learning Marketplace, Question & Answer Exchange, and Talent
Exchange are implemented
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KiKM - The Kaieteur Institute For Knowledge Management Scenario
Exercise Some Lessons To be Learned: Integration challenge Politics
of ownership Contrast with existing intranets and portal models
Community readiness Trust Linking inside and outside the
enterpise
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KiKM - The Kaieteur Institute For Knowledge Management It Takes
A Village It takes a village to make A Mall Community precedes
Commerce Achieving a critical mass of users Attracting attention
Designing a positive user Experience
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KiKM - The Kaieteur Institute For Knowledge Management Rules,
Standards, & Conventions Trust Security Changing roles and
responsibilities Adherence To Fundamental Principles: fair exchange
Market is a network Confidence from clear rules and good Governance
Less friction more exchange
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KiKM - The Kaieteur Institute For Knowledge Management Other
Lessons The rule of law Standards, Protocols, Conventions Critical
Mass Improvements to the user interface Understanding the science
of networks
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KiKM - The Kaieteur Institute For Knowledge Management THE
EMERGING SCIENCE OF NETWORKS Small Worlds Six Degrees We Are All
Connected Complexity & Self-Organization Emergence A Common
Architecture & Pattern To Networks Book Reference : Linked: The
New Science of Networks b y Albert-Lsl Barabsi
http://www.nd.edu/~networks/linked/
http://www.nd.edu/~networks/linked/
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KiKM - The Kaieteur Institute For Knowledge Management KEY
NETWORK PRINCIPLES The principle of self-similarity ( same fractal
pattern throughout) The principle of network phase transitions (
tipping points ) The principle of preferential attachment ( the
rich get richer..) Importance of Hubs and being connected to
Hubs
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KiKM - The Kaieteur Institute For Knowledge Management Protein
Network Neural Network Synaptic Network City Network Topographic
Network Tree Network Small World Network Patterns
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KiKM - The Kaieteur Institute For Knowledge Management Internet
Connections Network Electricity Grid Network Airline Hub &
Spoke Network Transportation Network River Network Energy Pipeline
Network Small World Network Patterns
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KiKM - The Kaieteur Institute For Knowledge Management THE
INTERNET Hyper-linking Of Docs On The Web A Metaphor For Emerging
Enterprise Architecture Everything Becomes Networked Everything Is
CONNECTED to everything else. Mark Buchanan, a physicist and
science writer, reports on the emerging science of how networks
operate : identical in their architecture Social networks turn out
to be identical in their architecture to the World Wide Web the
network of web pages connected by hypertext links. Book: Nexus:
Small Worlds and the Groundbreaking Science of Networks
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KiKM - The Kaieteur Institute For Knowledge Management Making
1+1=11 In the knowledge economy, the whole can be many times
greater than the sum of the parts Leif Edvinsson
http://www.corporatelongitude.com
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KiKM - The Kaieteur Institute For Knowledge Management
Structural Capital Formation Generation of new knowledge capital A
system of dynamic valuation Enhanced metrics as interactions flow
through the system Greater reach, agility, and responsiveness The
knowledge marketplace will become a prime instrument for creating
structural capital
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KiKM - The Kaieteur Institute For Knowledge Management New
Trends Wireless enabled exchange Implicit vs Explicit B2C; B2B;
B2E; E2E.. Business Model Innovation
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KiKM - The Kaieteur Institute For Knowledge Management
Conclusion In my view, the knowledge exchange marketplace has a
pivotal role to play in the formation and development of a Real
Time Adaptive Enterprise Thank You !! Contact Information : Bryan
Davis :[email protected]@kikm.org
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KiKM - The Kaieteur Institute For Knowledge Management Virtual
Tour Of Emerging Examples In The Legal Vertical
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KiKM - The Kaieteur Institute For Knowledge Management