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					      Knowledge & Networks
   Enabling Technologies (KNETs)

Class 5: ISM   P3 January 2005
Xerox PARC, California
                                  Very creative!

 First Mouse

                        First Network     First

 Class 5: ISM   P3 January 2005
                 Tech Reps at Xerox

  Process Perspective             Practice Perspective
• Read error codes and
                                • Copier specific
  check copier-independent        knowledge not
  manual of copier                documented anywhere
• Follow manual                 • Call up for help
  instructions for fixing the
                                • Collective improvisation
  copier step by step
                                  and problem solving
• No memory or
                                • Share learned tips
  communication of
                                  through “war stories”

  Class 5: ISM           P3 January 2005
            Processes Vs. Practices
Towards PET                                  Towards KNET
(Explicit knowledge)                         (Tacit knowledge)

           Process                       Practice
• The way tasks are                 • The way tasks are
  organized a priori                  done
• Routine                           • Spontaneous
• Orchestrated                      • Improvised
• Assumes a predictable             • Responds to a changing,
  environment                         unpredictable environment
• Relies on explicit                • Driven by tacit knowledge
• Linear                            • Weblike

                          Seely Brown & Duguid, 2000
 Class 5: ISM          P3 January 2005
      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)                        Soft (non-measurable)
                                             + Transfer of tacit knowledge
                                             + Increased organizational memory
Reduced costs: decreases service            + Increased employee and customer
costs, decreases new product (e.g. code)       satisfaction
development costs                            + Many spill-over effects (e.g. Eureka to
Increased efficiency: faster trouble-

shooting, faster customer service, steeper   + More innovation (?)
learning curve                               ? Culture Change (more sharing, more
Measurable innovation: faster
product cycle, more patents, more reliable   - Information overload
products                                     - Decreased creativity (“re-use” solutions)
                                             - Lack of “face-to-face” socialization

   Class 5: ISM                        P3 January 2005
                            Some Metrics
                                                              Eureka Active Users

     Service Cost Savings in Millions         20000

               with Eureka

15                                                0
                                                       1999        2000     2001    2002
                                                      Number of Calls Solved with
 5                                          400000             Eureka

 0                                          300000

      1999     2000      2001       2002    200000


                                                       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
•A chicken-and-egg problem: change the
 culture to implement successfully the
 technology, or implement successfully the
 technology to change the culture? Where to
            How are KNETs adopted?

 Class 5: ISM     P3 January 2005
            Early Approaches to KNET
Put the knowledge of the            But…Many useless databases
organization in a database          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
   Part III: A Coordination Process

               TIP               Submit         Pending

   Validate                                               Review
                Certified                     Yes     NO

   Use                      Apply
               TIP                         Comments
                             TIP life cycle:
                         Improve TIP or Replace

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

 • 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
 More knowledge for more innovation

 Class 5: ISM     P3 January 2005
          New approaches to KNETs

• Knowledge lives in communities:    • Develop communities of
                                       practice for strategic domains

                                     • Technology is used to support
• The key to managing knowledge        the work of communities
  is connecting experts

    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
      • 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 Examples
  Laboratory experts in the field of corrosion (e.g.
   VW Group)
  Engineers engaged in deep-water drilling (e.g.
  Operational managers in charge of credit
   checking (e.g. World Bank)
  Clubs of engineers and car designers (e.g.
  Product delivery consultants (e.g. HP)
  Academic researchers
  The 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

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

Class 5: ISM     P3 January 2005

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