Introduction to Knowledge Management

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1 Introduction to Knowledge Management SECI model Ikujiro Nonaka & Hirotaka Takeuchi 1995.

2 Introduction Japan top of the world economy - business, working discipline, organizational abilities After 2nd world war Japan started with very fast and successful progress in economy Japanese wonder First economy explosion, than in early 90 s economy stagnation, only 1.5% increase of BDP Efforts of the government no success One of the most famous and the biggest car industry Toyota new approach to production, organization, knowledge use Sociological toyotism (after fordism, postfordism)

3 Toyotism Characteristics: 1. Total control 2. Decentralization of initiative 3. Team involvement of workers Goal of toyotism reduce uncertainty instead of inducing adaptability Era of information capitalism and information global economy with some characteristics: Direction to management and control centers Firm networking Development investigations and scientific research Knowledge creation and information flow

4 Genchi Genbutsu means come and see key principle of Toyota Production System. On the working place (gemba) Taiichi Ohno creator of Toyota Production System Challenges solutions - Toyota way Genchi Genbutsu

5 Kaizen - Change to better Japanese business philosophy of life and work searching for continuous improvement of different processes without radical changes of production processes Contribution to success and competition of the company Goal of the kaizen philosophy reduce losses inside company without creating new costs Not only working place in company but also in the sector of suppliers, health insurance apply generally constant improvement of life quality

6 Toyota način Toyota believes that an effective workplace is one that allows people of different ages, genders, ethnic groups and cultural backgrounds to work together as a team. We believe in challenges and the importance of decisions based on personal investigation, efficient fact-finding and indepth analysis. Working at Toyota is also an exercise in long-term thinking.

7 Toyota way

8 First Chinese emperor followed Toyota way? The newest analysis of terracotta soldiers in X ian (China), which presented army of the first Chinese emperor Qin Shi Huang ( BC) they followed sophisticated working model today known as Toyota way Toyotism involves using of small workshops, small factories with engineers-specialists big tacit knowledge, ability to produce anything instead of production line specialized to produce only some special particular components

9 SECI MODEL Modeling of knowledge management big problem for those who are engaged to collect information, documents, professional experience and know how on corporation level Nonaka & Takeuchi proposed model of knowledge creation to understand dynamical nature of the knowledge creation and to manage this process efficiently Easy and simple to understand all activities we can perform with knowledge transforms tacit knowledge in some explicit forms One of the most famous model, the simplest and the clearest one useful approach to knowledge transfer processes

10 SECI model International Journal of Nuclear Knowledge Management transformation and transferring of knowledge (tacit tacit; tacit explicit) and vice versa: Socialization Externalization Combination Internalization (S) (E) (C) (I)

11 Spiral of knowledge Many similar concepts, this one is the best in the sense of demands Nonaka & Takeuchi model focused on knowledge spiral to explain transformation of tacit knowledge to explicit knowledge and then back as a base for particular, group and organizational learn and innovation

12 Spiral of knowledge Spiral of knowledge involved in model presents interaction between explicit and tacit knowledge in one continuous process Creation of new knowledge Central idea knowledge sharing leading to new knowledge Spiral of knowledge or amount of knowledge increases all the time going around and around

13 FIRST STEP: SOCIALIZATION (TACIT TACIT) Lots of knowledge in human brains, maybe 80% Goal find the way of collecting this tacit knowledge Socialization - knowledge sharing through social interactions People have know how, secrets, personal skills Socialization - face to face communication, directly on working place 2 roles: mentor (tutor) and student (newcomer)

14 FIRST STEP: SOCIALIZATION (TACIT TACIT) Mutual understanding mental models sharing Small risk - know how in company goes away with retirement!!!!! Socialization very efficient way of knowledge creation, but very limited Also, very hard to distribute whole knowledge using only this mode

15 SECOND STEP: EXTERNALIZATION TACIT EXPLICIT) Process of externalization (tacit explicit) giving visible form to tacit knowledge and converting to explicit knowledge process of important knowledge creation forms of metaphors, analogies, concepts, hypothesis, models (N&T, 1995). People are able to articulate knowledge and know how, sometimes know why Mediators for this mode (journalists) Externalized and theoretical knowledge base for new knowledge creation

16 THIRD STEP: COMBINATION (EXPLICIT EXPLICIT) Combination - process of recombination of discrete parts of explicit knowledge in some new form of explicit knowledge no new knowledge creation Improvement of collected knowledge synthesis, review, report, short analysis, new database Content logically organized consolidated Combination of explicit knowledge with already stored knowledge At the end of this phase knowledge is analyzed and organized

17 FOURTH STEP: INTERNALIZATION (EXPLICIT TACIT) Last process internalization through diffusion and embedding of new coming and consolidated knowledge learning during work. Internalization converts or integrates shared AND/OR particular knowledge and experience in individual mental models Internalized new knowledge can be used in company broadening of knowledge, increasing, new frames inside own tacit knowledge Habits are changed Internalization means understanding of explicit knowledge Explicit knowledge transformed to tacit knowledge

18 4 modes of knowledge conversion Cycle continues in knowledge spiral and goes again from socialization Amount of knowledge is increased Knowledge creation is continuous process dynamical interactions between tacit and explicit knowledge 4 modes of knowledge conversion in knowledge spiral Spiral grows going through all organizational levels possible triggering of new spirals

19 Advantages and failures of SECI model ADVANTAGES OF SECI MODEL: APPRECIATE dynamical nature of knowledge and knowledge creation ASSURE frame for relevant process management FAILURES OF SECI MODEL: BASED on Japanese organizations tacit knowledge is the most important workers all life in one company or??? Linearity of concept Forget some steps??? Opposite direction possible???

20 S E C I

21 Purpose of this story? Organizational learning particular, collective, tacit, explicit domain Data assimilated in information, information in knowledge, knowledge in wisdom Opposite direction: wisdom leads to knowledge application, knowledge helps in interpretation of information, information assimilate raw data Building and maintaining of organizational knowledge base assure own capacity for efficient decision making and efficient acting

22 Knowledge base is the sum of: - Total tacit knowledge (skills, tacit base, contribution to competencies) and - Explicit knowledge which is stored and presented in archives and artifacts (like database, information systems, documents, procedures, manuals, instructions, records ) Risks for organizational knowledge base: - Context of knowledge changed because of problems in - Context of knowledge changed because of problems in environment, - Or because of improvement in technology, - Critical tacit knowledge could be lost because of retirement or reorganization, - Or knowledge could be lost because we do not use it

23 ORGANIZATIONAL KNOWLEDGE process of continuous learning for good organizational knowledge base maintaining BASE OF ORGANIZATIONAL KNOWLEDGE = CAPACITY FOR EFFICIENT ACTING CONTINUOUS PROCESS OF ORGANIZATIONAL LEARNING

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