The Knowledge-creating Company

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CMN5150 Knowledge Management -
An oral presentation on Nonaka & Takeuchi's book.

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The Knowledge-creating Company

  1. 1. * * *The Knowledge-Creating CompanyHow Japanese Companies Create the Dynamics of Innovation November 28, 2011 UOKM H. Wang
  2. 2. Table of Contents Ch.No Title of content 1. Introduction to Knowledge in Organizations 2. Knowledge and Management 3. Theory of Organizational Knowledge Creation 4. Creating Knowledge in Practice 5. Middle-up-down Management Process for Knowledge Creation 6. A New Organizational Structure 7. Global Organizational Knowledge Creation 8. Managerial and Theoretical Implications / References UOKM Hanjun
  3. 3. Ch.1 Introduction to Knowledge in Organizations UOKM HanjunThe new focus on “knowledge” as a competitive resourceUncertainty → fear → changes → knowledge creation → continuousinnovation → competitive advantageThe distinctive Japanese approach to knowledge creationExplicit/tacit knowledge Tacit knowledge → explicitThe distinction is the key knowledge → tacit knowledge → knowledge creationThree key characteristics ofknowledge creation that relate tohow tacit can be made explicit1) To express the inexpressible2) To disseminate knowledge among individuals3) New knowledge is born in the midst of ambiguity and redundancy The Honda City Example
  4. 4. Ch.2 Knowledge and Management UOKM HanjunWestern:What is Knowledge? Justified truebelief. There are two traditions of mutuallyWestern epistemology: complemen- • Empiricism: Aristotle, Locke, tary etc. • Rationalism: Plato, Descartes, etc.Synthesize the two: Kant, Hegel,Marx, etc. Oneness of … From what kind of Japanese intellectual traditionsHumanity/Nature a unique view of time and space Body/Mind the ultimate ideal condition that Zen practitioners seek Self/Other the Japanese language
  5. 5. Ch.3 Theory of Organizational Knowledge Creation UOKM Hanjun Organizational knowledge creation Organization’s innovation: an outside-in and inside-out process The key to knowledge creation: tacit knowledge The engine of the knowledge creation process: four modes of knowledge conversion 5 conditions Tacit knowledge Explicit knowledge to 5-pased modelknowledgeTacit (Socialization) (Externalization) Sympathized Conceptual Knowledge Knowledgefrom (Internalization) (Combination)knowledgeExplicit Operational Systemic Knowledge Knowledge
  6. 6. Ch.4 Creating Knowledge in Practice Matsushita Electric UOKM Hanjun
  7. 7. Ch.5 Middle-up-down Management Process for UOKMKnowledge Creation Hanjun Top-down model: pyramid / top managers / combination / internalization •Practitioners •Engineers Bottom-up model: •Officers flat & horizontal / front-line employees / socialization / externalization Knowledge Creating Crew Limitation: ignoring middle managersMiddle-up-down management Knowledge is created by middle managers, who are the key to continuous innovation Main job of middle managers: orient chaos toward knowledge creation Advantages: who/what/where/how
  8. 8. Ch.6 A New Organizational Structure UOKM Hanjun“Hypertext” To create K. efficiently and continuously, which should has oscillated between two basic types: bureaucracy and task force. Attempt case: U.S. military (bureaucracy + task force) and Japanese army & navy (bureaucracy) in WWII Advantages: • bureaucracy + task force • Knowledge base: the “clearinghouse” Key characteristics of a hypertext organization: the ability of its members to shift contexts, moving easily in and out of one context into another Failed to “unlearn” past success factors
  9. 9. Ch.7 Global Organizational Knowledge CreationDifferences between the Japanese and Western approaches The interaction between tacit and explicit knowledge: individual VS group Emphasis on: explicit VS tacit Certainty VS ambiguity “knowledge specialists” UOKM Hanjun
  10. 10. Ch.8 Managerial and Theoretical Implications UOKM Hanjun7 guidelines (organizationally)1. Create a knowledge vision 5. Adopt middle-up-down management2. Develop a knowledge crew 6. Switch to a hypertext organization3. Build a high-density field of 7. Construct a knowledge network with interaction at the front line the outside world4. Piggyback on the new-product development process7 dichotomies (theoretically)1. Tacit/explicit 5. Bureaucracy/task2. Body/mind force3. Individual/organi 6. Relay/rugby zation 7. East/west4. Top-down/bottom- up
  11. 11. References• A review and critique of Nonaka and Takeuchi’s theory of organizational knowledge creation akeuchi.pdf• Nonaka SECI model• Nonaka’s knowledge model• Nonaka & Takeuchi - Seci, Ba & Knowledge Assets assets• A graphic depiction of Nonaka’s & Takeuchi’s theory on knowledge creation• The Big Idea: The Wise Leader•• Wise leadership• Knowledge management in times of social media UOKM Hanjun
  12. 12. Thank you! Hanjun Wang Nov.28,2011 UOKM Hanjun