Toronto KM Cluster Fall 2003 Event The Real Time Knowledge Enterprise

1
Toronto KM Cluster  Fall 2003 Event  The Real
Time Knowledge Enterprise
e-KNOWLEDGE MARKETS their emergence and evolution
Bryan Davis, President, The Kaieteur Institute
for Knowledge Management
2
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.

3
e-Knowledge Markets As Enabling Infrastructure

• You cannot run on tracks you have not laid
  Stan Davis, Futurist

4
Knowledge Buyers, Sellers, and BrokersThe
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.

5
Knowledge Buyers, Sellers, and BrokersThe
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.

6
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
ltgoman_at_joongang.co.krgt 2003.03.10
7
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
8
Emergence Of e-Knowledge Markets

• Taxonomy
• Knowledge Auctions
• Knowledge Stores
• Knowledge Banks
• Q A Exchanges
• Experts Exchange

9
Emergence Of e-Knowledge Markets

• Taxonomy
• e-Learning Exchanges
• Intellectual Property
• Idea Exchange
• Talent Exchanges
• Community Oriented or Social Capital Exchanges
  Exchanges
• Vertical Knowledge

10
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

11
What Problems Do They Solve ?

• Enhances transparency
• Stimulates new value and wealth
• Creates structural capital
• Networks knowledge resources

12
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

13
Drivers Trends

• Information Explosion
• Growth in Knowledge Economy
• Knowledge Work
• Knowledge Workers
• Free Agency
• Convergence of community, internet, and e-markets

14
Virtualization Of Markets

• 24x7x365
• Electronic
• Communications
• Networks
• ExampleThe arrival Of ECNS (electronic
  communications networks )

15
Markets For Everything

• Timeless
• Ubiquitous
• Organic
• Evolutionary
• Internet changes everything
• Arrival of e-Commerce
• ( Policy Analysis Market..???)

16
Why Not e-Bay For Ideas ?

• Trade
• Swap
• Exchange
• Auction
• Anytime
• Anywhere
• Globally

17
Enabling Technology New Engines

• Communications
• Search
• Question Answer
• Digital Publishing Of Content
• Expertise Matching
• Auction
• e-Commerce
• Learning Management

18
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)

19
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

20
A Model e-Knowledge Market
Registration
Search Navigation
e-Commerce
Trust
Content
Community
Performance Visualization
Service Support
Peer Rating System
Trading /Auction Engine
21
Business Model Innovation
22
Portal or Market Exchange

• Identity issue
• Strategy concern
• Portal vs knowledge market
• Divergent or complimentary ?

23
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 ?

24
Remote Services Marketplace

• 850b globally (acc. to McKinsey)
• Free Agents
• War For Talent
• Talent Retention Issue
• Case Example
• e-Lance.com

25
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

26
Community Oriented or Social Capital Exchanges
Exchanges
27
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..

28
Adoption Utilization Issues

• Diffusion of innovation
• Maturity
• Stability
• Critical Mass
• Experience
• Standards, Conventions, Rules
• Change Management
• Disruption

29
A Scenario Example

• In which an IP, Idea Exchange, Experts
• Exchange, Learning Marketplace, Question Answer
  Exchange, and Talent Exchange
• are implemented

30
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

31
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

32
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

33
Other Lessons

• The rule of law
• Standards, Protocols, Conventions
• Critical Mass
• Improvements to the user interface
• Understanding the science of networks

34
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
  Networksby Albert-Lásló Barabási
  http//www.nd.edu/networks/linked/

35
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

36
Small World Network Patterns
City Network Topographic Network
Tree Network
Protein Network Neural
Network Synaptic Network
37
Small World Network Patterns
Transportation Network River
Network Energy Pipeline
Network
Internet Connections Network Electricity Grid
Network Airline Hub Spoke Network
38
THE INTERNET
Mark Buchanan, a physicist and science writer,
reports on the emerging science of how networks
operate   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

• Hyper-linking Of Docs On The Web
• A Metaphor For Emerging Enterprise Architecture
• Everything Becomes Networked
• Everything Is CONNECTED to everything else.

39
Making 1111

• In the knowledge economy, the whole can be many
  times greater than the sum of the parts Leif
  Edvinsson
• http//www.corporatelongitude.com

40
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

41
New Trends

• Wireless enabled exchange
• Implicit vs Explicit
• B2C B2B B2E E2E..
• Business Model Innovation

42
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 bdavis_at_kikm.org

43
Virtual Tour Of Emerging Examples In The Legal
Vertical
44
(No Transcript)
45
(No Transcript)
46
(No Transcript)
47
(No Transcript)
48
(No Transcript)
49
(No Transcript)
50
(No Transcript)
51
(No Transcript)
52
(No Transcript)
53
(No Transcript)
54
(No Transcript)