Knowledge Models and Tools

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Knowledge Models and Tools

• Piero Formica

2
Finite and Infinite Games

• Finite game
• Leans toward competition.
• The object is to win the game.
• Adherence to contract terms.
• Competing for segments of existing
• markets.

Competition
product-out attitude selling what is produced

• Infinite game
• Leans toward co-operation.
• The object is to improve the plays.
• Dynamic reciprocity of relationships
• One partner does more than the
• contract specifies and obligates the
• customer to do more also.
• Creating new markets.

producing what can be sold
Co-operation Co-opetition
3
6
MI
MI
C
T
3
TI
TI
Ferrari
2
R
6
1
CL
Luxottica
4
Sony
5
6
4
early market
very high pain
tech enthusiasts visionaries
1
chasm trap
discomfort
dead zone
CUSTOMER PAIN
mainstream market
2
modest discomfort
niche of pragmatists
4
3
painless adoption requirement
mature markets
tornado
CUSTOMER GAIN
5
Leadership Cycle
1
2
the new heroes
DECLINE
INCUBATION
search for new perception (cognition)
down to the know-nothing land
P1
P2
P3
young Turks role models
tiranny of seniority
creation of myths and symbols (staging)
passage to action (conation)
3
4
emergence of titans
START-UP AND EARLY DEVELOPMENT
GROWTH AND MATURITY
6
What type of leadership will transform innovation
consumption into innovation production ?
Linking dispersed resources and skills
Reconciling short-term and long-term
commitments and pressures
Encouraging and supporting extroverted
initiatives
Building a context of strong trusting
relationships
Challenging the embedded success factors by a
new vision
Creating a spirit of common purposes ambitions
Understanding of how doing new things in new
ways
Inspiring confidence creating beliefs
Ability to communicate
Insightful
Visionary-minded
Fairness
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The entrepreneur is somebody who starts a
business ..
to master his/her future
to make money
because has money
to follow a vision
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TheAutocatalytic Network Model
3
2
1
4
5
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What works and why for the emerging
nations? TheAutocatalytic Network model
Food Molecule Catalyst
Complementary talents
Brain circulation
Growth nodes as attractors propellers of new
ideas
Pollinating spin- off companies
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Organic Evolution and Co-evolution of the
Packaging Machinery Industry in Bologna
powder to add effervescence to drinking water (
Idrolitina )
PERFORMANCE
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1 2 3 4
ambitious goals at the heart of the initial vision
create and manage a tension between order and
chaos
clarity of leadership
2
1
attempt to maintain clear view
avoiding flying too close to others
copy near neighbors
move towards center of perceived neighbors
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Family Business
13
Experience Curve and Learning Curve
Experience Curve
cost
20 to 30 percent
Manufacturing
Efficiency increasing with experience and scale
in the manufacturing of any product
0 1 2
volume
Learning Curve
productivity
HIGH ENTROPY VS LOW ENTROPY In communications you
want unexpected news (high entropy). In
manufacturing process you want predictability
(low information uncertainty- low entropy).
Content Industry
time
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LAW OF TIPPING POINT
significance precedes momentum
path-dependence lock-in
Performances
THRESHOLD OF SIGNIFICANCE
Resources
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Knowledge Cluster Dynamics
Such changes make the timescale of the clusters
in Italy seem almost a snails pace in comparison
The latest incomers are working in Genetic
engineering Bioelectronics and Nanotechnology
2000-10s
Successive layers of innovation, each creating a
new industry
1990s The Internet
Silicon Valley
1980s PC Software
1970s Microprocessors
1960s Integrated circuits
1950s semiconductors
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Knowledge markets are a conceptual market space
in which bits are traded across the continents in
a broad range of content that would include

• Knowledge and information systems.
• Customer knowledge and support.
• Knowledge arbitrage and exchange.
• Expert exchange.
• E-learning exchange.
• Intellectual property.
• Economic and business intelligence.

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CAPITAL REQUIREMENTS
INTELLECTUAL CAPITAL Stock or Market Value -
Book Value
STRUCTURAL CAPITAL
HUMAN CAPITAL
The organisational capabilities of the
organisation to meet market requirements.
The capabilities of the individuals required
to provide solutions to customers.

• CUSTOMER CAPITAL
• ORGANISATIONAL CAPITAL

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30
80
50
70
20
50
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support to management

• Level
• of
• risk

• Founder,
• Friends Family

Seed Funds

• Business
• Angels

• Venture
• Capitalists

• Quoted Markets

• Banks

• Start - up

• Seed

• Early Growth

• Expansion

• Stages of development

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The Amazons case
Start-up reaching mezzanine financing or venture
capital or an IPO.
326000

x
49000
8000
937
245
54
54
20
June 96 May 98
54 54 000
May 96
June 94 - July 95
Aug 95 May 96
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• FINALE

There is a Dinosaur. The view that
innovation can be planned and directed and a
gazelle labelled Knowledge Pool Cluster
You dont get a gazelle by breeding dinosaurs