Transcript Slides here - The Kaieteur Institute For Knowledge

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
KiKM - The Kaieteur Institute For Knowledge Management
Abstract
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This presentation discusses the recent emergence and evolution of eknowledge 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 pinpoint weakness that need to be addressed if these knowledge exchange
environments are going to live up to the tremendous transformational
promise they hold.
KiKM - The Kaieteur Institute For Knowledge Management
e-Knowledge Markets As Enabling
Infrastructure
“You cannot run on tracks you
have not laid” – Stan Davis,
Futurist
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Knowledge Buyers, Sellers, and Brokers:
The 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.
KiKM - The Kaieteur Institute For Knowledge Management
Knowledge Buyers, Sellers, and Brokers:
The 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.
Laurence Prusak and Don Cohen 1997.
KiKM - The Kaieteur Institute For Knowledge Management
SK’s 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.
SK’s 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, SK’s 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 SK’s 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 firm’s 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 <[email protected]>
2003.03.10
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e-Knowledge Markets As Wealth
Enablers
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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
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Emergence Of e-Knowledge Markets
•Taxonomy
•Knowledge Auctions
•Knowledge Stores
•Knowledge Banks
•Q & A Exchanges
•Experts Exchange
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Emergence Of e-Knowledge Markets
•Taxonomy
•e-Learning Exchanges
•Intellectual Property
•Idea Exchange
•Talent Exchanges
•Community Oriented or Social
Capital Exchanges Exchanges
•Vertical Knowledge
KiKM - The Kaieteur Institute For Knowledge Management
What Problem Do They Solve ?
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Efficiently match supply and demand
Connect seekers and providers
Opens Channels 24 x 7x 365
Stimulates Innovation
Enhances Flexibility
Provide more accurate Performance
signals
KiKM - The Kaieteur Institute For Knowledge Management
What Problems Do They Solve ?
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Enhances transparency
Stimulates new value and wealth
Creates structural capital
Networks knowledge resources
KiKM - The Kaieteur Institute For Knowledge Management
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
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Drivers & Trends
•Information Explosion
•Growth in Knowledge
Economy
•Knowledge Work
•Knowledge Workers
•Free Agency
•Convergence of
community, internet,
and e-markets
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Virtualization Of Markets
•24x7x365
•Electronic
•Communications
•Networks
Example
The arrival Of ECNS (electronic
communications networks )
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Markets For Everything
•Timeless
•Ubiquitous
•Organic
•Evolutionary
•Internet changes
everything
•Arrival of e-Commerce
•( Policy Analysis Market..???)
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Why Not e-Bay For Ideas ?
•Trade
•Swap
•Exchange
•Auction
•Anytime
•Anywhere
•Globally
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Enabling Technology – New Engines
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Communications
Search
Question & Answer
Digital Publishing Of Content
Expertise Matching
Auction
e-Commerce
Learning Management
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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)
http://www.european-patent-office.org/tws/tsr_2000/31demand.htm
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IP Marketplaces - Segments
•Technology Licensing Focused•Idea Exchanges
•University Technology
•Vertical Or Industry Specific
Licensing
•Legal IP Services
•Invention oriented
•Government Supported
•Private Corporate Exchanges
•Free and Open Source
Exchanges
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A Model e-Knowledge Market
Registration
Search & Navigation
e-Commerce
Community
Trust
Content
Performance
Visualization
Service & Support
Trading /Auction Engine
Peer Rating System
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Business Model Innovation
Subscription
Royalty
Utility
Fee For Service
Syndication
Free
Value Based
Licensing
Sponsored
Advertising
Membership
Dues
Merchant
Auctioneer
Investor
Equity
Broker
Trust Agent
Incubator
Pay Per Use
Microcash
Micropayments
Upfront
Activation
Seller
Oriented
Other
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Portal or Market Exchange
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Identity issue
Strategy concern
Portal vs knowledge market
Divergent or complimentary ?
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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
•What’s a good idea worth ?
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Remote Services Marketplace
•$ 850b globally
(acc. to McKinsey)
•Free Agents
•War For Talent
•Talent Retention Issue
•Case Example:
•e-Lance.com
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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
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Community Oriented or Social Capital
Exchanges Exchanges
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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..
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Adoption & Utilization Issues
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Diffusion of innovation
Maturity
Stability
Critical Mass
Experience
Standards, Conventions, & Rules
Change Management
Disruption
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A Scenario Example
In which an IP, Idea Exchange, Experts
Exchange, Learning Marketplace, Question
& Answer Exchange, and Talent Exchange
are implemented
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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
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It Takes A Village
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It takes a village to make A Mall
Community precedes Commerce
Achieving a critical mass of users
Attracting attention
Designing a positive user Experience
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Rules, Standards, & Conventions
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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
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Other Lessons
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The rule of law
Standards, Protocols, Conventions
Critical Mass
Improvements to the user interface
Understanding the science of networks
KiKM - The Kaieteur Institute For Knowledge Management
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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 Networks
by Albert-Lásló Barabási
http://www.nd.edu/~networks/linked/
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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
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Small World Network Patterns
City Network
Protein Network
Topographic Network
Neural Network
Tree Network
Synaptic Network
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Small World Network Patterns
Transportation Network
River Network
Internet Connections Network Electricity Grid Network
Energy Pipeline Network
Airline Hub & Spoke Network
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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.
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Making 1+1=11
“ In the knowledge
economy, the whole can
be many times greater
than the sum of the
parts”
Leif Edvinsson
http://www.corporatelongitude.com
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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
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New Trends
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Wireless enabled exchange
Implicit vs Explicit
B2C; B2B; B2E; E2E..
Business Model Innovation
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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 :[email protected]
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Virtual Tour Of Emerging
Examples In The Legal Vertical
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KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management
KiKM - The Kaieteur Institute For Knowledge Management