Whether it invo l ves creating or Best Practices, Business Models, and Strategies He who wishes to teach us a truth should not tell it to us, but simply suggest it with a brief gesture,
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enterprises refine routines, policies,
p rotocols, use of auto-tagging tools and
agents, and explore alternate sources of
e - k n ow l e d g e ;
• p ri c e of individual units of digital
k n owledge will decline dramatically in
the face of competition (including exc e
l-lent sources of free e-know l e d g e ) ,
diminishing costs of production;
• p remium prices will be accepted by
indi-viduals for particular combinations of
content, context, and tradecraft
embed-ded in performances and experiences;
• new markets for an individual’s or
enter-p ri s e’s e - k n owledge will be oenter-pened by
e-k n owledge mare-ketplaces;
• c reation and use of knowledge will be
combined in many settings (e.g
com-munities of practice) resulting in a sort
of barter and free access for insiders; and
• new patterns of interactivity will enable
dramatic reductions in the cost and price
of cohort-based learning experiences
One cannot precisely predict with elegant
p recision the combination and range of
choices that will constitute the e-know
l-edge and e-learning marketplace of the
f u t u re One thing is clear: e-know l e d g e
will enable a new range of choices that
will put the learner and knowledge seeker
in the drive r’s seat
What are the top three success stories you have come across of e-learning in action? 1) Jones International University, which is the first fully accredited entirely online university
in the USA and possibly the world;
2) Duke University Fuqua School of Management for running the most expensive online MBA program with
a tuition fee of US $85,000—proving that people will pay for quality online education; and 3) MasterTutor.com, a little known but genuine effort which has a few thousand middle-class Indian students paying a few thousand rupees as fees per course.
Madan Pant, Interviewed by Madanmohan Rao.
D i s ruptive Reinvention from New Com -petitors and Innovators.For some time, traditional learning models have been chal-lenged by open universities, many of which
e n roll hundreds of thousands of physical and virtual learners To d a y, lowe r - c o s t ,
c o h o rt-based learning practices are being
d e veloped in emerging markets in Asia and
in Central and South America by Ma s t e
r-Tu t o r.com, NTT, Ne x t Ed, ITESM, Un i s y s , and others These models are driving dow n the cost and price of e-learning and know l-edge sharing They will be refined in these settings and pro g re s s i vely applied to
m a rkets in developed nations T h e
p rocesses, routines, and tradecraft used by these pioneering providers will be utilize d
by other prov i d e r s
When a new model changes the economics of an industry and is difficult to replicate, it can by itself create a strong competitive advantage
Joan Magretta, 2002
Le veraging Rela tio nships. The most successful business models in the
e-K n owledge Economies will be based on
l e veraging and extending existing re l a t i o n-ships Whether it invo l ves creating or
Best Practices, Business Models, and Strategies
He who wishes to teach us a truth should not tell it to us, but simply suggest it with a brief gesture, a gesture which starts an ideal trajectory in the air along which we glide until
we find ourselves at the feet of the new truth.
Jose Ortega y Gasset
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1 3 4
sharing knowledge or learning, re l a t i o n-ships with learners, members, customers,
s t a f f, suppliers, and other stakeholders are
at the center of the picture
What does this suggest for future pro s p e c t s
of knowledge and learning enterprises? T h e
f u t u re belongs to knowledge and learning enterprises whose relationship is gro u n d e d
on highly motivated stakeholders who
a re c o - c reators of the learning/know l e d g e sharing processes Consider these examples:
• The American Health In f o r m a t i o n Management Association (AHIMA) has defined the “body of know l e d g e” for HIM professionals, which is accessible
f rom the AHIMA portal Learning and
k n owledge seeking/creating experiences
a re also available through the port a l The association has re i n vented its gov-ernance stru c t u re along a community of practice model, creating self-defining, emergent communities
• Claus Unger of Fern Un i versitaet in Germany (an open university) has described the "learning spaces" his insti-tution hopes to create Students could use them repeatedly throughout their
c a reers, pursuing different paths, pursu-ing learnpursu-ing at different depths, makpursu-ing use of sharable materials from across the Web that would be re c o n f i g u red in re a l time for different purposes
The future epicenter of e-know l e d g e sharing/e-learning appears to be: pro p r
i-e t a ry li-earning and knowli-edgi-e prov i d i-e r s , associations and professional societies, cor-porations with strong enterprise learning and communities of practice, open unive r-sities focusing on lifelong learning re l a-tionships, and traditional universities using relationships through alumni, extension and continuous learning channels
To paraphrase, the epicenter of knowledge may be with the individual but the epicenter of leverage is with the organization.
Rudy Ruggles and Dan Holthouse
Reinventing Strategies
To assure success in the e-know l e d g e
f u t u re, enterprises must re d i rect their strategies—not just for knowledge, but for all business processes, products, ser-vices, and experiences that depend on
k n owledge Some of that re d i rection can
s t a rt immediately, while other re f i n e m e n t s must await new technologies, standard s ,
m a rketplaces, changes in infrastru c t u re s , and re i n ventions of best practices a n d business models The point is that the emergence of e-knowledge should affect
e ve ry aspect of enterprise strategy and business planning
Take Immediate Actions to Improve Yo u r Readiness for e-Knowledge In Chapter 7,
we recommend 10 actions that your enter-prise can undertake immediately to enhance its readiness for e-knowledge
Craft an Enterprise Knowledge Strategy.
Re i n vention of enterprise strategy can
s t a rt immediately through the crafting of
an explicit knowledge strategy At its first l e vel, this strategy identifies the cen-trality of knowledge to the enterprise’s mission, vision, and competitive posi-tion At present time, enterprises bury their knowledge strategy implicitly within strategic and business plans T h e enterprise must explicitly state its know l-edge strategies and link those strategies explicitly to unit business plans Chapter
7 illustrates how to create a know l e d g e strategy that drives enterprise initiative s
Best Practices, Business Models, and Strategies
The international dimension of
higher education is an inherent
part of its quality Networking,
which has emerged as a major
means of action, should be
based on sharing, solidarity and
equality among partners
Marco Antonio Dias
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Success in global markets depends on
communities sharing knowledge
across the globe
Knowledge-driven markets make it imperative to
develop a “knowledge strategy” along
with a business strategy Yet many
organizations have no explicit,
consolidated knowledge strategy.
Rather, it exists implicitly at best,
dispersed in strategic plans,
human resource reports, or
system-improvement proposals.
A knowledge strategy details in
operational terms how to develop and
apply the capabilities required to
execute the business strategy.
Therefore, a knowledge strategy
eventually depends on communities
of practice.”
Wenger et al, 2002
Take Advantage of Changes in the Mobility of Networked Knowledge.T h e
p e rva s i ve spread of networks through enter-prises has changed the mobility and distri-bution of knowledge Mohanabir Sa w n h e y and De val Parikh (2001) point out that back-office knowledge is often embedded
in the network’s shared infrastru c t u re, while the front-office knowledge resides at the
n e t w o rk’s periphery, where the users are Significant units of formerly disconnected
or isolated knowledge become available to users where ver they are needed T h e s e
d e velopments enable enterprises to consider
a combination of four strategies for pro f i t-ing from knowledge mobility:
• a r b i t ra g e— m oving knowledge to
loca-tions where maintenance costs are lowe r ;
• a g g re g a t i o n—combining formerly
iso-lated knowledge into a pool of share d
k n ow l e d g e ;
Best Practices, Business Models, and Strategies
Smart strategies are always based on a company’s unique knowledge whether new knowledge, or existing knowledge.
Rene Tissen, Daniel Andriessen, Frank Lekanne Deprez
Reinvention of Strategies
• Take immediate action to improve your enterprise’s readiness for e-knowledge
(See Chapter 7 for 10 immediate actions)
• Develop an explicit enterprise knowledge strategy Develop an explicit
enter-prise knowledge management strategy to tie knowledge asset management and
reinventing knowledge ecology to business plans (See Chapter 7 for examples)
• Develop strategies to take advantage of changes in the mobility of networked
knowledge:
- arbitrage—moving knowledge to locations where maintenance costs are lower;
- aggregation—combining formerly isolated knowledge into a pool of shared
knowledge;
- rewiring—connecting islands of intelligence by creating an information
back-bone; and
- reassembly—organizing pieces of knowledge from diverse sources into coherent,
customized packages for customers
• Prepare to use expeditionary strategies to take advantage of opportunities.
• Develop a strategy portfolio dealing with productivity improvement,
incre-mental innovation and radical innovation (transformation) (See Chapter 7 for
portfolio strategy methodology)
• Enterprises leverage their relationships with learners, members, customers, and
other stakeholders to provide new, personalized versions products, services,
and experiences.
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1 3 6
• re w i r i n g—connecting islands of
intelli-gence by creating an information back-bone; and
• re a s s e m b l y—organizing pieces of know
l-edge from diverse sources into cohere n t ,
c u s t o m i zed packages for customers
Enterprises can fashion strategies for taking advantage of these opportunities to
a d vance the enterprise mission thro u g h
n e t w o rked e-know l e d g e
It may now make more sense
to talk about a company’s distributed capabilities’ instead
of ‘core capabilities’.
Mohanabir Sawnhey and Deval Parikh
P re p a re to Use Expeditionary Strategies
to Take Advantage of New Opport u n i t i e s
Corporations, associations, gove r n m e n t agencies, and even universities have
dis-c ove red the wisdom of taking an “e x p e d
i-t i o n a ry” approach i-to developing si-trai-tegies,
p roducts, services, and experiences for
t o d a y’s market They re a l i ze that during
periods of technology disruption, “killer
a p p s” are discove red not through flashes
of re velation, but through expeditionary
i n i t i a t i ves that use product platforms as continuously adapting probes into the
f u t u re The killer apps for e-know l e d g e will emerge over time, not in a flash of dot.com brilliance
In the words of James Brian Quinn, com-panies spot promising opportunities like
s u rfers ride waves or scientists conduct
re s e a rch: by systematically observ i n g
e n v i ronments, scanning ripples of oppor-tunity on multiple horizons, and learning
to re c o g n i ze patterns of impending change, anomalies, or promising interac-tions that can be monitored, re i n f o rc e d , and exploited Enterprises need flexible
k n owledge platforms and the entre p re-neurial skill to seize opportunity wave s This re q u i res the systematic dissemina-tion and trading of knowledge, even
pro-p r i e t a ry knowledge if necessary, to enable larger innovations that will leverage their own innova t i o n’s value by an order of magnitude (Quinn, 2002)
Best Practices, Business Models, and Strategies
Dialectic of Enterprise Knowledge Initiatives
If your knowledge category has
substantial competition, a “less
is more” strategy works best.
Thomas H Davenport
and John C Beck.
Operate in current enviro n m e n t
A g g ressively serve customers,
l e a rners, members, and stakeholders under current value
p ro p o s i t i o n s Make current processes more
e fficient—enhance productivity and optimize workflow
S t ru c t u re d / d i rected learn i n g
Vision future enviro n m e n t Rethink value propositions for customers, learners, members, and other stakeholders
Reinvent current processes using collaboration and innovation to change enterprise dynamics—
rethink every t h i n g Autonomic learn i n g
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Best Practices, Business Models, and Strategies
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Develop a Strategic Portfolio of eKnowl -edge Initiatives At any point in time, an enterprise will need to manage a port f o-lio of initiatives having va rying
objec-t i ves, ranging from improvemenobjec-t objec-to
i n c remental innovation to radical inno-vation This will enable your enterprise to deal with the dialectic of enterprise
ini-t i a ini-t i ves, mainini-taining a balance beini-twe e n stability and dynamism, between oper-ating in today’s environment and making a jump shift in vision to the
e-k n owledge future
Leverage Relationships to Create New
P roducts, Services, Knowledge Resourc e s and Experiences.Like best practices and business models, enterprise strategies should begin and end with re l a t i o n s h i p s Mobile, networked e-knowledge prov i d e s
a powe rful instrument for establishing
indispensable re l a t i o n s h i p s with members,
customers, learners, staff, suppliers, and other stakeholders who not only want it, they want to participate in its creation So what is it about the relationship and the associated experiences that can be both indispensable and differe n t i a t i n g ?
Relationship is the only thing strong enough to resist the siren call of ten million other sites that are just a click away In the digital world, the one with the best conversation usually wins And I assure you that there are many dialogues out there still in search of a village square
Mikela Tarlow, 2002
T h e re are as many answers to this question
as there are individuals seeking know l e d g e
or engaging in learning It seems clear,
h owe ve r, that in the information surfeit of the attention economy, most individuals will forge indispensable relationships with
a re l a t i vely small number of trusted orga-nizations, associations, institutions, and enterprises whose brand has been affirmed
as meaning “giving me the know l e d g e
I want, when I need it, efficiently, and as
p a rt of an engaging experience.” So u n d s like a strategy for success
In Chapter 4, we introduced a quote by H.G Wells expressing the potential for marshalling the fragmented know l e d g e
re s o u rces around the world to address the difficulties of the age This grand idea could not be implemented 60 years ago because we lacked the technology and the
c a p a c i t y, let alone the will In the near
f u t u re, we shall possess the technologies and tradecraft to attempt We l l s’ vision We
h a ve come to comprehend the complexity
of knowledge and the importance of
c u l t u re and knowledge ecology in estab-lishing meaning What will the future of
e - k n owledge hold for the re c e i v i n g ,
s o rting, summarizing, digesting, clarify-ing, and comparing of the know l e d g e and ideas of our time? We shall all par-ticipate in crafting the answe r
An immense and ever-increasing wealth of knowledge is scattered about the world today; knowledge that would probably suffice to solve all the mighty difficulties of our age, but it is dispersed and unorganized We need
a sort of mental clearing house: a depot where knowledge and ideas are received, sorted, summarized, digested, clarified, and compared H.G Wells, 1940
Best Practices, Business Models, and Strategies
Someday, in the distant future,
our grandchildren’s
grandchildren will develop a
new equivalent of our
classrooms They will spend
many hours in front of boxes
with fires glowing within.
May they have the wisdom to
know the difference between
light and knowledge.
Plato
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C H A P T E R
Achieving Success
in the Emerging
e-Knowledge Industry
• 10 Ways to Accelerate Your Readiness for e-Knowledge
• Mobilizing Leaders, Policy Makers, and Practitioners
• Developing a Knowledge Strategy
that Drives Enterprise Initiatives
7 This book concludes as it began, with a simple vision:
In the Knowledge Economy, individuals and enterprises that
s h a re and process their knowledge most effectively have a gre a t advantage To keep up, most of us will need an ord e r- o f - m a g n i t u d e leap in our ability to handle knowledge This won’t happen without a genuine transformation in the ways in which knowledge is
c reated, managed, re p u r p o s e d , combined, exchanged and experienced This transformation
is underw a y Participation is
m a n d a t o ry for all hoping to achieve success in the Knowledge Economy.
We offer three instruments to help
in preparing you and your enterprise for success in the Knowledge Economy.
10 Ways to Accelerate Yo u r Readiness for e-Knowledge.
Individuals and organizations need practical, yet visionary actions that they can take to accelerate their capacity to develop infrastru c t u re s and capabilities and participate in the cascading cycles of
re i n v e n t i o n Mobilizing Leaders, Policy Makers, and Practitioners The time is ripe
to mobilize leaders, policy makers, and practitioners to shape the e-knowledge re v o l u t i o n Developing a Knowledge Strategy that Drives Enterprise Initiatives.
A concise knowledge strategy states how knowledge is essential
to competitive advantage.
It shapes the enterprise knowledge management strategy and
initiatives that build competitive
a d v a n t a g e
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1 4 0
Accelerating Readiness for
e - K n o w l e d g e :Enterprises can gain a competitive advantage by accelerating their development of the perspectives, visions, infrastructures, processes, and capabilities needed for e-knowledge
Digital Rights Management (DRM)/Digital Asset Management:
Enterprises develop the policies, protocols, and infrastructures needed to manage, meter and exchange their knowledge
e-Business: e-Business is more than e-commerce It is the use of ICT to transform the way organizations conduct their business e-Business enables enterprises to fundamentally change their relationships with customers, members, learners, suppliers/partners, and/or other stakeholders
O rganizational Story t e l l i n g :
The essential tool of leadership wishing to engage their enterprise in understanding the future, disruptive technologies, and how they feel about change
Activity Based Costing (ABC):
Accounting practices that enable measurement of the cost of enterprise activities
N o n - G o v e rnmental Org a n i z a t i o n s (NGOs): Nonprofit organizations that are not governmental entities
C o - C re a t i o n :When customers, members, or learners not only consume products, services, experiences, and knowledge, but participate in their creation, that is called co-creation By definition, co-created knowledge is personalized to the needs of the co-creators
Operational Excellence:Providing world-class efficiencies, timeliness, and cost/price
G reat Pro d u c t s :Providing excellence and leadership in product quality and innovation
Customer Intimacy:Developing intimate indispensable relationships with customers, members, learners, and other stakeholders
Achieving Success in the Emerging e-Knowledge Industry
The three [knowledge-sharing]
myths are (1) build it and they
will come, (2) technology can
replace face-to-face, and
(3) first you have to create
a learning culture.
Nancy M Dixon
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T h e re is no cookbook for preparing yo u r
organization for e-knowledge
transforma-tion No formulaic process or canned
con-sulting methodology will guarantee
success Building the perspectives, visions,
i n f r a s t ru c t u res, processes, and capabilities
needed to transform current practices to
embrace e-knowledge is an expeditionary
ve n t u re requiring years to accomplish
And the jump shifts re q u i red may
necessi-tate discontinuities in current practice
A number of actions at key pre s s u re
points can make a dramatic differe n c e ,
s t a rting immediately Some can enable
your enterprise to engage its leadership,
s t a f f, faculty, learners, members, and
other stakeholders in formative conve r s
a-tions that will elevate their e-know l e d g e
p e r s p e c t i ves and build capabilities Ot h e r s
will develop plans, pilot projects, and new
i n f r a s t ru c t u res and capabilities Some will
collect and reflect on best practices and
c o m p e t i t i ve intelligence The sum total of
such actions can accelerate your
organiza-t i o n’s readiness for e-knowledge They can
also stimulate the expected cycles of re i
n-vention in e-knowledge strategies,
busi-ness models and best practices
These initiatives should not be treated as independent, one-time, or even sequential activities Rather, they should be integrated into organizational processes for planning,
d e velopment, management, and operation
Mo re ove r, they should be used as the
i n s t rument for re i n venting those pro c e s s e s
to reflect the strategic importance of
e-k n owledge To succeed in the Know l e d g e
Ec o n o m y, your organization must harness and transform the capacity of individuals and the organization as a whole to acquire , manage, and share knowledge Such expe-ditions re q u i re changes in your enterprise’s
k n owledge ecology
These initiatives are organized using the
s t ru c t u re of the thre e - p a rt model of the indicators of the e-Knowledge Ec o n o m y
We have purposefully re versed the ord e r, beginning with best practices, business models, and strategies This formulation is
a superior instrument for capturing the attention and evoking understanding fro m
e ve ryone in the enterprise from grassro o t s
to top leadership
Achieving Success in the Emerging e-K nowledge Industry
Discovery and discernment are the cornerstone skills of the New Economy.
Van B Weigel
10 Ways to Accelerate
Your Readiness for e-Knowledge
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1 4 2
Best Practices Business Models and Strategies
The next few years will witness dramatic changes in best practices, business models, and strategies for e-knowledge W h i l e these cycles of re i n vention will continue for years, enterprises should move out immediately on five actions to enhance their readiness for e-know l e d g e
Engage everyone in the enterprise
on the subject of e-knowledge Use
s t o rytelling to explore how individuals will experience knowledge Mobilize
e n e rgies from grassroots to the CEO and Board
e - K n owledge is not the subject of a
m o m e n t a ry conversation, a fad, the
busi-ness school topic du jour Your enterprise’s
response to this topic may define yo u r
e n t e r p r i s e’s success in the next five ye a r s The challenge for leadership is how to make e-knowledge a central topic in engaging conversations that mobilize ener-gies and release cre a t i v i t y
Talk the talk The strategic conve r s a t i o n s
about knowledge can focus on a variety of
t h e m e s :
• Using storytelling to engage broad cro s s -sections of your enterprise in addre s s i n g the eknowledge future and sharing re a l -life success stories;
• De veloping a range of future scenarios about the use of knowledge and the changing roles of organizations and
i n d i v i d u a l s ;
• Using these stories and scenarios to
e x p l o re the possibilities of truly transfor-mational, and likely disru p t i ve, changes
in the existing knowledge value chain and power relationships; and
• Exploring the ecology, roles, and inter-actions of different knowledge enti-ties—individuals, teams and work
g roups, communities of practice, and
k n owledge networks of various kinds Strategic, enterprise-wide conve r s a t i o n s about knowledge should balance visioning with stories of successful transformation
a l ready achieved
Walk the talk It’s not just about
story-telling Enterprises should begin to utilize
t e c h n o l o g y - s u p p o rted tools for sharing
k n owledge, such as those using the Se m a n-tic Web and intelligent agent capabilities
E x e m p l a ry Resourc e s : Engage the Enterprise
• The Squirrel: The Se ven Highest Va l u e
Fo rms of Organizational St o ry t e l l i n g,
Stephen De n n i n g
w w w s t e ve d e n n i n g c o m / s q u i r re l h t m
• Eastern Michigan Un i versity story t e l l i n g about technology-driven change
w w w t r a n s f o r m i n g e k n ow l e d g e i n f o
• C o l l a b o r a t i ve Decisionmaking and Personal Knowledge Ma n a g e m e n t with R-Objects Pepper
w w w r - o b j e c t s c o m / p a p e r s / w w w 2 0 0 2 / j e r n s t - w w w 2 0 0 2 p d f
Develop a knowledge strategy for the enterprise that brings into alignment: 1) management of the enterprise’s knowledge assets, and
2) the enterprise’s business plans to achieve its mission and goals.
De velop a contemporary perspective on the strategic importance of know l e d g e , complementing the VOI perspective on the strategic importance of technology In the past, a laissez - f a i re approach to know l-edge was sufficient, but no longer
Achieving Success in the Emerging e-Knowledge Industry
Envisioning the end is enough
to put the means in motion
Dorothea Brande
1
S t o ry t e l l i n g
2
Knowledge Strategy