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	<title>Experiment, Adopt, Achieve &#187; academic</title>
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	<description>On Innovation in Software Engineering</description>
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		<title>Post-graduate Dissertation Top Tips</title>
		<link>http://www.markgibaud.com/blog/2011/11/20/post-graduate-dissertation-top-tips/</link>
		<comments>http://www.markgibaud.com/blog/2011/11/20/post-graduate-dissertation-top-tips/#comments</comments>
		<pubDate>Sun, 20 Nov 2011 20:35:41 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[academic]]></category>

		<guid isPermaLink="false">http://www.markgibaud.com/blog/?p=144</guid>
		<description><![CDATA[A group of student friends and I were discussing some tools to help with a dissertation project over drinks one night recently. I decided that it would be a good idea to blog some lessons of experience from doing my dissertation, so that others may have an easier ride. While the university did provide some [...]]]></description>
			<content:encoded><![CDATA[<p>A group of student friends and I were discussing some tools to help with a dissertation project over drinks one night recently. I decided that it would be a good idea to blog some lessons of experience from doing my dissertation, so that others may have an easier ride. While the university did provide some guidance specifically for the dissertation, a lot of it was basic and generic and not hugely actionable. Further than that, some of the practices and techniques that I had to learn and then employ in doing the dissertation were only lightly covered in classes.</p>
<p>It should be noted that this advice is aimed mostly at management science students doing social science dissertations.</p>
<p><a href="http://www.amazon.co.uk/Business-Research-Jill-Collis/dp/0333983254"><img class="alignleft size-full wp-image-150" style="margin-left: 10px; margin-right: 10px;" title="businessresearch" src="http://www.markgibaud.com/blog/wp-content/uploads/2011/11/businessresearch.png" alt="" width="121" height="157" /></a>The first thing to do is to read a book like <a href="http://www.amazon.co.uk/Business-Research-Jill-Collis/dp/0333983254">Business Research by Collis and Hussey</a> to get a good grounding in the undertaking of research in the social science arena. This book goes through the theory of research paradigms and methodologies but also includes advice on the more practical side like organizing surveys, conducting interviews, what software to get, etc.</p>
<p>I found it useful to access more learning materials pertaining to my chosen methodology. For example, because I was conducting exploratory research from interviews, I watched <a href="http://www.youtube.com/watch?v=4SZDTp3_New">several lectures</a> from the University of Huddersfield's Graham Gibbs to gain a better understanding of Grounded Theory. I also read various texts on Grounded Theory and this helped me structure in my mind how the research was going to be conducted.</p>
<p>Once you start to make head or tail of how you might go about conducting the research, you can start reading the relevant literature on your topic. I found it very useful to create a spreadsheet listing the name of the paper, authors, rating out of 10 (how useful/relevant/interesting it was) and key takeaways. This is going to come in very handy later on when you've totally lost track of what concepts you've read where, and you have to trace certain ideas back to their source papers in order to substantiate your own observations in your dissertation writing. I used a Google Spreadsheet.</p>
<p><a href="http://www.markgibaud.com/blog/wp-content/uploads/2011/11/spreadsheet.png"><img class="size-full wp-image-145 aligncenter" title="Research paper spreadsheet" src="http://www.markgibaud.com/blog/wp-content/uploads/2011/11/spreadsheet.png" alt="" width="840" height="429" /></a></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p><img class="alignright size-full wp-image-149" style="border-style: initial; border-color: initial; margin-left: 10px; margin-right: 10px; border-width: 1px;" title="dropbox" src="http://www.markgibaud.com/blog/wp-content/uploads/2011/11/dropbox1.png" alt="" width="284" height="92" />I also found it useful to use a software tool called <a href="http://www.dropbox.com">Dropbox</a>. Dropbox makes a folder on your computer sync with any other computers/mobiles/tablets on which you've also installed Dropbox. This is handy for searching for research papers and saving copies when on a computer, but leaving the reading of those papers for somewhere more comfortable like an iPad. Dropbox also stores copies of all your files in the cloud, so nothing is ever lost.</p>
<p>If you are doing qualitative research, you will probably find <a href="http://www.qsrinternational.com/products_nvivo.aspx">NVIVO</a> to be your main tool of choice. This application lets you input a number of data sources (for example, interview transcripts) and lets you code them into categories and themes. Be sure to watch some of the<a href="http://www.youtube.com/results?search_query=nvivo+9+tutorial&amp;oq=nvivo&amp;aq=0&amp;aqi=g10&amp;aql=&amp;gs_sm=e&amp;gs_upl=148l185l0l3921l5l2l0l0l0l0l613l798l0.1.5-1l2l0"> numerous YouTube videos</a> covering coding in NVIVO (and general NVIVO usage for that matter) if you intend to include this activity in your research. The latest version is NVIVO 9 and a student license is around £80, although you should have it available through the university as well. I ended up recording interviews using my iPhone, playing them back at halfspeed using Windows Media Player and transcribing-on-the-go straight into NVIVO.</p>
<p><img class="alignleft" style="margin-left: 10px; margin-right: 10px; border-width: 1px; border-color: black; border-style: solid;" title="docs" src="http://www.markgibaud.com/blog/wp-content/uploads/2011/11/docs.png" alt="" width="247" height="240" /></p>
<p>When actually writing the dissertation, I found Google Documents more than sufficed. Again, stored in the cloud so it's accessible anywhere and never lost, even if your computer dies (avoiding that nightmare dissertation situation!). I know people use more sophisticated tools like LaTeX and MS Word, but I don't understand why more people don't use Google Docs - it's simple and reliable, and all you need to use it is a browser.</p>
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<p>One of the more important problems to solve in writing dissertations is creating a reference database. <a href="http://www.zotero.org/">Zotero </a>is an outstanding plugin for the Firefox browser which can automatically create reference items from popular websites supplying research papers, like Google Scholar or JSTOR. With a click of a button you can save a citation to your database, and when it comes time to create your dissertation's referencing section, it is simply a matter of a select-all and copy &amp; paste (with a little bit of tidying up) to get your references section automatically generated for you. No more manual reference-writing!</p>
<p>I hope that gives you some direction and a bit of a head-start in your dissertation preparation. If you have any questions about the tools or processes mentioned above, let me know at <a href="mailto:markgibaud@gmail.com">markgibaud@gmail.com</a> or <a href="http://www.twitter.com/markgibaud">@markgibaud</a>.</p>
<p>Good luck!</p>
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		<title>Open Innovation meets Social Media: The Rise of Social Coding</title>
		<link>http://www.markgibaud.com/blog/2011/04/22/open-innovation-meets-social-media-the-rise-of-social-coding/</link>
		<comments>http://www.markgibaud.com/blog/2011/04/22/open-innovation-meets-social-media-the-rise-of-social-coding/#comments</comments>
		<pubDate>Fri, 22 Apr 2011 22:35:02 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[academic]]></category>
		<category><![CDATA[innovation]]></category>
		<category><![CDATA[social media]]></category>

		<guid isPermaLink="false">http://www.markgibaud.com/blog/?p=127</guid>
		<description><![CDATA[Here is an academic essay I did for university recently. It explores how the social elements of the web, via Github and others, have contributed to Open Innovation and specifically open source software. Enjoy. &#160; Open Innovation meets Social Media: The Rise of Social Coding by Mark Gibaud Introduction This essay explores the new phenomenon [...]]]></description>
			<content:encoded><![CDATA[<div style="text-align: left;">
<p id="internal-source-marker_0.39675769582390785"><em>Here is an academic essay I did for university recently. It explores how the social elements of the web, via Github and others, have contributed to Open Innovation and specifically open source software. Enjoy.</em></p>
<p style="text-align: center;">&nbsp;</p>
<h1 style="text-align: center;">Open Innovation meets Social Media:</h1>
<h1 style="text-align: center;">The Rise of Social Coding</h1>
<p style="text-align: center;"><em>by Mark Gibaud</em></p>
<p><span style="text-decoration: underline;">Introduction</span></p>
<p>This essay explores the new phenomenon of ‘social coding’ within the context of open innovation. Social coding is a radical evolution in open source software development caused largely by the convergence of traditional open source software development and the new social networking paradigm. In our analysis we begin by exploring the transition from closed innovation to open innovation that has taken place largely over the last decade. We then look the open source software movement, and specifically review the literature explaining the motivations of software developers for contributing to open source projects. We briefly review the rise of social networking on the internet before examining the current leading ‘social coding’ website, Github.com, and analyse how this website allows software developers to experience traditional OSS contribution motivations more acutely than before and thus sustain and even increase their open innovation activity. Finally, we consider the opportunities for non high-tech sectors and discuss the challenges that might be faced in transplanting this specific flavour of open innovation embodied by social coding into arenas outside of software engineering.</p>
<p><span style="text-decoration: underline;">From Closed to Open</span></p>
<p>For much of the 20th century there was only one way to innovate. Firms would invest as many resources as they could afford into their own private R&amp;D labs while simultaneously seeking to fill those labs with the best and brightest engineers and scientists in an effort to invent, develop and commercialize innovations that would yield profit and growth (Chesbrough 2003). They also aggressively managed intellectual property related to these products which would protect their revenues and in turn allow them to further invest in R&amp;D and thus fund the next wave products, reinforcing a cycle of “closed innovation” (Chesbrough 2003). The prevailing school of thought was to have “innovation through total control” (Chesbrough 2003).</p>
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<td style="text-align: right;">Figure 1: Closed Innovation (Chesborough 2003)</td>
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<p>But several changes in the economic landscape of the late 20th and early 21st centuries have induced an eroding effect of this model of innovation. Firstly, the steady and persistent emergence of the knowledge-powered economy (Drucker 1992) has dramatically reduced the chance of any single company owning even a majority of a particular industry’s leading thinkers, much less all. Secondly, Chesbrough (2006) cites the increase in quantity and employment mobility of knowledge workers as contributory to the eroding of closed innovation, as firms naturally find it more difficult to own their employees’ ideas when they no longer work for the same company for decades at a time, as was prevalent in the 20th century. Along with this, the rise of globalisation has meant that even within a specific technology or science, “knowledge is distributed” (Chesbrough 2003) and experts in a particular field may often find themselves on opposite sides of the planet employed by different companies or even in different sectors. Another major catalyst for open innovation was the growth of the venture capital market, which better enabled innovation spillovers from both corporate research labs and universities to become commodotized within startups and therefore serve the marketplace, whereby previously, an innovation that was not considered related to the core offering of a firm would’ve died out. For these reasons, it is increasingly recognized (Chesbrough 2003, von Hippel 2001) that supplementing internal R&amp;D with knowledge from outside the boundary of the firm can give rise to commercialization prospects previously unavailable.</p>
<p>By the same token, organisations are more vigorously exploring efforts for internal innovations that may not relate intimately to their core offerings to follow novel paths to market and realise benefits other than profit for these products and services. For example, a firm could license out intellectual property (IP) for financial gain, contibute to a patent pool to access new technologies to use internally, or making technology freely available so as to encourage the market adoption of a standard (von Krogh and von Hippel, 2006). Organisations are finding out that the usual idea-commoditization route is only one way to capitalize from internal R&amp;D, and that through exploring other ways to the market an organisation can benefit in novel ways.</p>
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<td><img src="https://lh6.googleusercontent.com/vNX4DmfKVLa0yNDTgu08geaynSImO_5mAMYIUmUtPdQAxi8l1O-bZjB5BaAkb-275DogTNbKBtd0V-lSN4bqRm6H46McwweHhMyOsh3_kemyrWi_S4Y" alt="" width="476px;" height="303px;" />*</td>
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<td>Figure 2: Open Innovation (Chesborough 2006)</td>
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<p>Chesbrough’s defined open innovation in his 2003 book “Open Innovation: The new imperative for creating and profiting from technology”:</p>
<p><em>“Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology.”</em></p>
<p style="text-align: right;">- Henry Chesbrough (2006)</p>
<p>A definition that extends Chesbrough's original by usefully including the notions of the learning organisation, knowledge management and organisational boundaries is provided by Ulrich Lichtenthaler:</p>
<p><em>"Open innovation is defined as systematically performing knowledge exploration, retention, and exploitation inside and outside an organization’s boundaries throughout the innovation process.” </em></p>
<p style="text-align: right;">-  Ulrich Lichtenthaler (2010)</p>
<div>When considering open source software (OSS) development, as we do next, this definition better frames open innovation in this industry. This is because programmers routinely explore the world of OSS (which is external to the firm) for software that will satisfy their own product needs, retain the knowledge needed to integrate that project into their software ecosystem, and seek to exploit some value from that integration.&nbsp;</p>
<p><span style="text-decoration: underline;">Open Source Software: Radical Open Innovation</span></p>
<p>No industry has embodied the principles of open innovation so passionately as the software product development industry. For decades, informal networks of professional and hobbyist computer programmers have sought to contribute to and participate in the communal creation of a great variety of software products in order to fulfil their own technological needs (von Hippel 2001). Two of the most successful open source projects are Apache Web Server and the Linux computer operating system (Hertel et al 2003). According to the Netcraft January 2011 Web Server Survey (2011), Apache has been the most popular server software in use since April 1996, and currently serves more than half of all websites on the internet and almost two thirds of websites with the highest internet traffic. The Linux open source project also demonstrates the viability of open source software (Hars and Ou 2001). The Linux operating system is one of the most popular server operating systems in the world (most Apache web servers installations run on Linux servers) and is selected to run on the fastest supercomputers in the world (Cray 2011). Open source software products are also dominating emergent industry areas in high-tech including cloud computing, for which most products (Cassandra, MongoDB, Hadoop) are licensed similarly to Apache.</p>
<p>There can be no doubt that in the wake of the success of these and other products, open source software development has become the flagship industry for the new open innovation paradigm.</p>
<p>But why do programmers give up their spare time to contribute to open source projects? From Maslow Hierarchy to Hetzberg’s Two Factor theory, much research has been done on motivation. Motivation has been broadly divided into internal and external motivation (Deci and Ryan 1995). Internal motivation is more likely to be present when individuals believe that they have the capabilities and skills to contribute (rather than being out of their depth), that their efforts effect the goal (rather than being determined by luck), and when they are interested in mastering a particular skill (rather than learning by rote to affect an entirely different outcome, like passing a  test) (Deci and Ryan 1985). Examples of positive external motivations are various forms of financial rewards and increased power and influence, while the threat of punishment can serve as an external demotivation.</p>
<p>It is not surprising that open source programmers realise some forms of internal motivation. Firstly, there is a motivation to write code so as to become better at software programming, ie. pursuing mastery. Hars and Ou found that 70.9% of respondents to their OSS survey included “improving my programming skills” in reasons for participation (Hars and Ou 2001). Raymond (2001) found that the process whereby code is peer-reviewed before making it into the product provided programmers with learning opportunities further enhancing both their motivation to participate and the quality of the product. Hars and Ou also suggest that open source programmers are altruistic, as they derive motivation from “increasing the welfare of others”, specifically the users other than themselves of the product that they are contributing to. Another motivation outlined was the sense of belonging to a community.</p>
<p>Open source projects also benefit from the external motivations of contributors. Programmers who submit code are quite usually improving a product that they themselves need and use (von Hippel 2001), so they would naturally benefit from using a better product. Recognition from a community would also serve as motivation, and programmers experience rewards as they increase their marketability should they publicize their contributions (Hars and Ou 2001). Lakhani and Wolf (2003) further confirm the presence of these motivations as they also found that programmers pursue the enjoyment of being creative when programming software, with 44.9% of respondents to their survey indicating that “Project code is intellectually stimulating to write”. These programmers also have a strong sense of community identification with the OSS movement, and are motivated to increase their marketability as they become more attractive to firms that are themselves heavy users of open source products (Lakhani and Wolf 2003).</p>
<p>But a new evolution of open source software development is emerging. A form driven by the same social networking constructs as we have seen at the core of the success enjoyed by such websites as Facebook and Twitter. The era of ‘social coding’ has begun and is energising open innovation in software engineering at a scale heretofore unseen by increasing and improving the realisation of the above motivations through new social web mechanisms.</p>
<p><span style="text-decoration: underline;">Social Media</span></p>
<p>The previous decade has been described as the decade of social media (Wide Angle 2011). As of January 2011, Facebook had over 600 million registered users (MSNBC 2011). As of February 2010, Twitter processes over 50 million “tweets” per day (TechCrunch 2010).YouTube is the third most-visited site on the internet (according to Alexa.com) and users upload 35 hours of video every minute (YouTube 2010). There can be no doubt that people connect and share using the internet now more than ever before, whether in personal or professional capacities, or even as ambassadors for the brands of their organisations (Kaplan and Haenlein 2010). However, innovation in social media is by no means destined to plateau any time soon. The current flagship websites of the social media phenomenon all cater to mass-market needs, eg. friends (Facebook), information-sharing (Twitter) and video-sharing (YouTube). The next phase in the evolution of social media will be the emergence of websites that cater to more specialized needs. For example, sharing specific types of information which are more intricate in their content, like architectural blueprints or perhaps 3D wireframes of model aeroplanes. Let us explore how one website has achieved this for software programs.</p>
<p><span style="text-decoration: underline;">Github</span></p>
<p>Github (http://www.github.com) (see Addendum A) launched in February 2008 as a web-based source code hosting service for computer programmers using the increasingly popular Git source control system. As of 2009 it was the most popular online hosting service for the Git source control system (which was originally created by Linus Torvalds, the creator of the Linux computer operating system and related open source project). In July 2010 Github hit the milestone of 1 million hosted repositories (Techcrunch 2010) clearly indicating that open source has come a long way since von Krogh and von Hippel reported in 2006 with admiration that SourceForge.net, also a source code hosting site, hosted “more than 110 000 projects” (von Krogh and von Hippel, 2006). Github has quickly become a key part of the open source software development ecosystem, hosting the codebases for the new hot software development platform Ruby on Rails, the world’s most popular javascript framework jQuery, and even the Linux kernel itself. Even engineering teams from the likes of Facebook and Twitter have chosen Github to host technologies that these companies have decided to open source.</p>
<p>The typical modus operandi of Github is thus: A developer signs up for an account and can then fork an existing project (see Addendum B), copying a complete repository of that project to his own account space online (or create a new repository and upload his own project to that repository in his account space. After copying the repository content to his own workstation from his Github account space, a developer could then make a few changes to the source code on his own computer and then “push” these changes to his project repository in his account space. Finally, he can issue a “pull request” (see Addendum C) to the original author (or current manager) of the project and that user will get notified immediately of a potentially valuable incoming changeset. An online code review and discussion can then take place (see Addenum D) before the original owner incorporates these new changes into the “master copy” of the project’s source code. Github enables all of these steps through an easy-to-use, socially-powered web interface in true Web 2.0 style.</p>
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<p>Figure 3: A typical Github developer’s workflow</td>
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<p>The team behind the design of Github have taken a number of decisions to greatly foster collaboration. First and foremost, the site charges users for wanting to host their source code privately, ie. in a private repository where only certain users may access the code. This in turn means that the vast majority of projects hosted on Github are open source by default, as users get “public” code hosting at no cost. Therefore, any user can fork these projects and begin contributing.</p>
<p>Github also redefined the concept of forking an open source project. Most research on open source software has concurred that forking a project is a harmful last-resort (Kogut and Metiu 2001), but Github has turned this phenomenon on it’s head by greatly encouraging developers to fork projects, innovate on the product and then issue pull requests.</p>
<p>But most critically, Github has a mature and developed social layer that is designed to make key OSS operations easier, quicker and more satisfying to do than ever before, and leverages key motivations of open source programmers as outlined earlier. Users have profiles with job descriptions and pictures, can “watch” projects they are interested in and “follow” other programmers activity. They can also mention usernames in discussions (for eg. @markgibaud) immediately notifying those users. Mechanisms like these greatly encourage community collaboration and increase participation behaviours, foster belonging, and enable the pursuing of reputational gains among developers. Users can easily and clearly engage in pull request discussions, providing and receiving feedback on code changes and thereby providing all participants with greater and more satisfying learning opportunities (Raymond 2001).</p>
<p>Github also continues to add new functionality that caters to the most common motivations of OSS developers. For example, it recently made Github user data available to other websites. Stack Overflow Careers is a website where thousands of programmers have created online curriculum vitaes and users can now incorporate a view of their Github activity (see Addendum E) directly to their online CV. This is a direct facilitation of the motivation of OSS developers to increase their marketability.</p>
<p>Github has been very successful in creating an active, motivated community of open source developers to collaborate and communicate through a social web application to be able to produce superior quality innovations in the high tech and software industries. It remains the goal of other industries to find ways to replicate this successful open innovation in their own sectors.</p>
<p><span style="text-decoration: underline;">Challenges</span></p>
<p>When referencing the innovative practices that open source software displays, it has been propounded that “There is no reason to believe that those practices cannot spread to other areas of economic and social activity.” (Von Krogh and von Hippe,l 2006). This author disagrees. It will take very careful and considerate analysis of sectors that do not share a few key traits with OSS to allow them to enjoy open innovation as successfully as OSS.</p>
<p>OSS is a natural leader in open innovation because of a few factors. Firstly, the actual output of innovative activity, computer code, is highly distributable at negligible cost. Along with this, the components of contributions in open source software (textual differentials) are sufficiently defined and discrete so as to easily allow focused discussion on each individually, before that contribution is accepted into the product (or rejected). The fact that incremental innovations can be so readily appraised, discussed and accepted using a low-friction process through an easy-to-use social website is a major factor enabling high levels of open innovation in software development. It is not easy to intuit how more sophisticated forms of data representation, for example architectural blueprints or 3D models, can take on forms that allow the same kind of distributed online collaboration that OSS enjoys.</p>
<p>Software application development itself is also at an advantage when exploiting open innovation because of it’s inherently component-based nature. Solutions to software “problems” like database access, integration with Twitter.com and authentication mechanisms are discrete enough that they can be implemented without impacting other modules, thus making decisions regarding one problem independent from another. What this translates into is massively increased cross-pollination and collaboration, rather than developer communities forming ‘silos’ around particular technologies and this in turn facilitates innovation across the sector.</p>
<p>Lastly, one critical distinction between software development and most other sectors is that open innovation in software has traditionally occurred in non-competitive areas. For example, for the most part, banks don’t compete with other banks when it comes to database access, and airlines don’t compete with other airlines on their website login systems. This enables developers across organisations to freely help each other with solving these non-competitive problems, such that they can then spend more time on improving their respective organisations’ core offerings. It remains a challenge for organisations in other industries to more clearly separate their core and differentiated offerings from problems encountered by all players in a particular market. This author argues that the lessons learnt from open innovation literature could, for example, advise the airline industry to form a coalition to create a global flight-searching platform that all players would benefit from. Individual airlines should then focus on increasing the value of their differentiated offerings such as customer service, in-flight comfort and entertainment, etc.</p>
<p><span style="text-decoration: underline;">Conclusion</span></p>
<p>In this essay we have reviewed how organisations are increasingly undergoing a change in their R&amp;D regime from a closed model to a open model of innovation. At the forefront of this movement are the participants of the open source software industry who have been innovating across firm boundaries for decades. We also reviewed specific motivations as to why this behaviour is sustained. We discussed how, in parallel to the increase of open innovation, social media has enabled people from all over the world to communicate and collaborate in unprecedented ways and at unprecedented scale. We then looked at how the most popular source code hosting website leverages many popular social media mechanisms in order to facilitate OSS developers experiencing their motivations for contribution more acutely than ever before. Finally, we elucidated the challenges that other sectors face if they wish to replicate the open innovation success enjoyed by the OSS fraternity, including desegregating their core offerings from their non-competitive pursuits so as to better enable openly innovating on the latter.</p>
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<div><span style="text-decoration: underline;"><em>References:</em></span></div>
<div><span style="text-decoration: underline;"><em> </em></span><br />
<em>Chesbrough, H.W., 2003. Open innovation: The new imperative for creating and profiting from technology, Harvard Business Press.</em></div>
<div>
<p><em>Chesbrough, H. W, W. Vanhaverbeke, and J. West. 2006. Open innovation: Researching a new paradigm. Oxford University Press, USA.</em></p>
<p><em>Cray Inc., The Supercomputer Company - Products - XT - XT5. http://www.cray.com/Products/XT/Systems/XT5.aspx.</em></p>
<p><em>Deci, Edward L., and Richard M. Ryan. 1985. Intrinsic motivation and self-determination in human behavior. Springer, August 31.</em></p>
<p><em>Drucker, P.F., 1992. The Age of Discontinuity 2nd ed., Transaction Publishers.</em></p>
<p><em>Eclipse Community Survey 2010 http://www.eclipse.org/org/community_survey/Eclipse_Survey_2010_Report.pdf.</em></p>
<p><em>TechCrunch: GitHub Hits One Million Hosted Projects. http://techcrunch.com/2010/07/24/github-one-million/.</em></p>
<p><em>Git User’s Survey 2009 http://www.survs.com/WO/WebObjects/Survs.woa/wa/shareResults?survey=2PIMZGU0&amp;rndm=678J66QRA2.</em></p>
<p><em>MSNBC.com: Facebook has 600 million users - Technology &amp; science - Tech and gadgets - Business Insider - msnbc.com. http://www.msnbc.msn.com/id/40929239/ns/technology_and_science-tech_and_gadgets/.</em></p>
<p><em>Hars, A., and S. Ou. 2001. Working for Free? - Motivations of Participating in Open Source Projects. In Hawaii International Conference on System Sciences, 7:7014. Los Alamitos, CA, USA: IEEE Computer Society. doi:http://doi.ieeecomputersociety.org/10.1109/HICSS.2001.927045.</em></p>
<p><em>Hertel, G., Niedner S. and Herrmann S. 2003. “Motivation of software developers in Open Source projects: an Internet-based survey of contributors to the Linux kernel.” Research Policy 32 (7) (July): 1159-1177. doi:10.1016/S0048-7333(03)00047-7.</em></p>
<p><em>January 2011 Web Server Survey | Netcraft. http://news.netcraft.com/archives/2011/01/12/january-2011-web-server-survey-4.html.</em></p>
<p><em>Kaplan, A. M., and Haenlein, M. 2010. “Users of the world, unite! The challenges and opportunities of Social Media.” Business Horizons 53 (1): 59-68. doi:10.1016/j.bushor.2009.09.003.</em></p>
<p><em>Kogut, B., and A. Metiu. 2001. “Open-Source Software Development and Distributed Innovation.” Oxford Review of Economic Policy 17 (2): 248.</em></p>
<p><em>Lakhani, K., and Wolf, R.G. 2003. “Why Hackers Do What They Do: Understanding Motivation and Effort in Free/Open Source Software Projects.” SSRN eLibrary (September). http://papers.ssrn.com/sol3/papers.cfm?abstract_id=443040.</em></p>
<p><em>Raymond, E. S. 2001. The cathedral and the bazaar: musings on Linux and open source by an accidental revolutionary. O’Reilly &amp; Associates, Inc.</em></p>
<p><em>TechCrunch: Twitter Hits 50 Million Tweets Per Day. http://techcrunch.com/2010/02/22/twitter-50-million-tweets-day/.</em></p>
<p><em>Von Hippel, E. 2001. “Learning from open-source software.” MIT Sloan management review 42 (4): 82–86.</em></p>
<p><em>Von Krogh, G., and E. von Hippel. 2006. “The promise of research on open source software.” Management Science 52 (7): 975.</em></p>
<p><em>Wide Angle » This Decade’s Social Media: The Game Layer. http://mlcwideangle.exbdblogs.com/2011/03/14/this-decades-social-media-the-game-layer/.</em></p>
<p><em>YouTube Blog: Great Scott! Over 35 Hours of Video Uploaded Every Minute to YouTube. http://youtube-global.blogspot.com/2010/11/great-scott-over-35-hours-of-video.html.</em></p>
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		<title>Successful Innovation</title>
		<link>http://www.markgibaud.com/blog/2010/04/02/successful-innovation/</link>
		<comments>http://www.markgibaud.com/blog/2010/04/02/successful-innovation/#comments</comments>
		<pubDate>Fri, 02 Apr 2010 13:28:42 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[academic]]></category>
		<category><![CDATA[innovation]]></category>

		<guid isPermaLink="false">http://www.markgibaud.com/blog/?p=70</guid>
		<description><![CDATA[This is an academic essay written for my Msc in Management at Birkbeck University, London. Why some enterprises become successful innovators and why others do not. by Mark Gibaud Today's organisations have to take into account a number of different aspects when attempting to deepen their capacity for, and evolve capabilities facilitating, innovation. Distilling the [...]]]></description>
			<content:encoded><![CDATA[<p><em>This is an academic essay written for my Msc in Management at Birkbeck University, London. </em></p>
<p><em><br />
</em></p>
<div style="text-align: center;"><span style="font-size: large;">Why some enterprises become successful innovators </span></div>
<div style="text-align: center;"><span style="font-size: large;">and why others do not.</span></div>
<div style="text-align: center;"><span style="font-size: medium;">by Mark Gibaud</span></div>
<div style="text-align: center;"><span style="font-size: medium;"><br />
</span></div>
<p>Today's organisations have to take into account a number of different aspects when attempting to deepen their capacity for, and evolve capabilities facilitating, innovation. Distilling the most relevant academic literature results in several organisational capabilities that must underpin several distinct phases of innovation if the firm is to achieve sustainable economic rents and ongoing growth from it's efforts in this direction. These capabilities are separated broadly into those supporting the identification of potentially lucrative innovations and those that support the exploitation of those innovations along lines that maximize their opportunity for profit. This essay will attempt to enumerate the most important of these capabilities together with said phases and summarise the operational details of each giving examples where possible.</p>
<p>Mastering innovation requires mature capabilities in several phases identified by Professor Joe Tidd (2005). The first of these are concerned with searching or scanning the environment for "signals" (Tidd 2005) that indicate an opportunity for innovation. These could form new technological advances in the market place; for example, the success of the iPhone presents many brands with a more compelling opportunity than ever before to represent themselves on a mobile platform. Signals could also be changes in legislation or changing behaviour in a competitor (who perhaps themselves are reacting to signals). Signals can also appear simply "in the wild", an example being on the Facebook page of Contiki Holidays (http://www.facebook.com/contiki), where users are indicating a strong desire to make contact with other travellers sharing their specific tour departure. Successfully innovating organisations have developed sophisticated methods for continuously capturing signals from a broad range of sources.</p>
<p>While signals might originate from outside the firm, the opportunities for innovation that they represent might not be immediately obvious. The right information in the right place at the right time can spark a profitable innovation that would otherwise delay coming to market if at all. Organisations naturally amplify knowledge through the efforts of their workers collaborating on projects (Nonaka &amp; Takeuchi 1995), and firms should put resources and practices in place that support capturing and codifying what would otherwise remain less accessible but valuable tacit knowledge (Polanyi 1966). Referencing Knowledge Management best practices, creating a knowledge repository with an emphasis on collaboration, such as an enterprise wiki solution or groupware, broadens the reach of the sum of organisational knowledge and can quickly become a breeding ground of innovative ideas, evolving from signals captured from outside the firm. The paper and packaging group Mondi have a web-based system named the "Innovation Zone" through which employees can share and improve ideas (Koudal 2005). A dedicated team evaluates especially innovative ideas and creates plans to develop them further. In this way Mondi managers can enable the entire company to contribute to it's innovation efforts, with a team possessing the required authority and resources to facilitate the commercialization of ideas into new products or processes.</p>
<p>If an organisation is successful in it's search for and processing of innovation signals, it may well identify more opportunities than it can realistically afford to commit to. Thus, selection of the correct opportunities is critical to maximising return on investment in innovation efforts. It quickly becomes apparent that successful innovation is an interactive process between what the organisation can supply as per it's technological competences (technology push) and the demand it may identify from signals in the market (customer pull) (Tidd et al 2001). The organisation should select opportunities that are likely good answers to one or more marketplace questions, achievable in terms of it's current capabilities (though a little stretching of current capabilities is desirable, as this presents the opportunity for learning), and finally, well aligned with the broader strategy of the business. A mark of a successfully innovating firm is a mature mechanism for the "coupling and matching process" (Tidd 2005) of innovation supply and demand. A secondary point here is the implication that an organisation should be constantly deepening it's technological capabilities as this will result in the potential for diversification and thus more opportunities to <em>map supply to demand</em> regarding innovation efforts.</p>
<p>Following from actually preparing the market (this could be advertising for a new product or evangelising for a new process), successfully launching an innovation should be accompanied by mechanisms by which feedback can be both gained and acted upon rapidly. Customer feedback on products and services, especially those characterised by higher novelty and frequent change such as fashion and high technology, has become an especially valuable source of 'sustaining' innovation (ie. incremental improvements) (Christensen 1997). Efforts in this area range from the more loosely connected, such as the ever popular anonymous feedback forms, to a much more tightly integrated collaboration with "lead users" (Von Hippel 1986) that steer ongoing incremental improvements to existing products or services as they typically experience needs before more mainstream users. To pick an example from midway along this continuum, Zara store staff are equipped with PDA's and are able to gather information from browsing customers about what more they would like to see in store, like existing designs in different formats or colours. Once the store doors close, information is also gathered from the shelves that are more depleted than others and the stock of clothes that customers tried on but didn't buy. All this data is linked up to the point of sale system which allows branches to issue re-buy orders based on hard data instead of hunches and guesswork. The qualitative data gained by the PDA users makes its way back to Inditex  (Zara's parent company) headquarters in La Coruña, Spain, where the hundreds of designers employed there are tasked to respond to the data in designing their future products. Innovations like these have spurred Inditex to grow from $2.43 billion in 2001 to $13.6 billion in 2007 (Gallaugher 2010) and fueled massive global expansion, opening hundreds of new stores around the world. Inditex's ability to continuously launch new products and then refine them rapidly using customer feedback has paid dividends.</p>
<p>Finally, it is recommended that after an innovation is successfully brought to it's target, the firm retrospects on the entire development process and draws lessons that may be used in future innovation efforts (Tidd 2005). Furthermore, management is compelled to create new processes and routines around lessons learnt such that the organisation can form new behaviours that eventually make innovation-inducing practices the new norm. But what gives firms the ability to carry out the Tidd's phases of innovation successfully?</p>
<p>Successfully innovating companies put full time resources behind innovation endeavors (Koudal 2005). Whether individual employees are tasked with a few weeks of dedicated research and experimentation, new middle management teams are created with innovation-centric remits, or perhaps entire departments spun off as new innovation-chasing entities, organisations are learning that they can no longer concern themselves with sustaining the status quo and flirting with the odd idea on the side. Following the examples of 3M and Google, more and more companies are formally dedicating a percentage of their employees time to innovation to better incentivise ideation. This practice leverages the growing agreement that "front-line staff" are in the best position to generate ideas (Poppendieck &amp; Poppendieck 2006, Mesaglio 2010) since usually they are regularly exposed to the customer and have most of the information available with which they might think of a better or entirely novel way to satisfy customers' needs. Van de Ven (1999) suggests that employees be given sufficient time to experiment with new ways of doing the work, while Tidd (2005) recommends that employees have the opportunity to work cross-functionally. A compelling method for gaining new organisational resources for innovation is put forward by Geoffrey Moore in his book <em>Dealing with Darwin</em>: that of "extracting resources from context to repurpose for core" (Moore 2006). Moore defines context as the efforts of the organisation concerned with continuing to provide existent products and services to customers, whereas core is the effort behind new products and services which seek to further differentiate the organisation. Moore investigates how the networking infrastructure products company Cisco goes about extracting resources from existing operations to apply to new ventures, enabling them to innovate on their own products but also quickly regain parity with any products from competitors who attempt to disrupt Cisco's market. Moore suggests that firms perform a "context/core analysis" followed by a resource allocation strategy that complements this analysis with the goal of setting a path to a more innovative future. It is clear that successfully innovating companies both allocate sufficient resources to innovation and also make it easier to do so by innovatively driving down the resource cost of day-to-day overhead.</p>
<p>Clayton Christensen articulates another innovation management question to be answered: The Innovator's Dilemma. In his 1997 book of the same name, Christensen discusses the question facing every innovating organisation: What is the most beneficial distribution of resources between sustaining or incremental innovation efforts and efforts behind disruptive or radical innovation? Essentially, organisations need to develop an "ambidextrous capability" (Tidd 2005) that allows them to effectively pursue both courses of innovation, with considerable allowance made for their different risk/reward profiles, the different paths they follow and the different "innovation architectures" (Tidd et al 2001) they require. While it's likely that sustaining innovations can be facilitated by relatively established routines, disruptive innovations will require innovation management that is highly flexible, tolerant of ambiguity and uncertainty, and seeks to hedge risk by limiting commitment (Tidd 2005).</p>
<p>In a discussion of how enterprises become successful innovators it is also prudent to discuss how enterprises might <em>stay </em>successful innovators. Mastering the complexity in their value-chain and innovation capabilties has gained successfully innovating firms the ability to sustain their competitive advantage as their operations and infrastructure is characterised by several attributes evident in the resource-based view of the firm (Wernerfelt 1984, Penrose &amp; Pitelis 2009). Firm resources can include highly-skilled personnel, valuable branding, intellectual property rights, an advanced ICT infrastructure, and even customer loyalty (Wernerfelt 1984).  Possibly the most compelling attribute is that their operational configuration and infrastructure is difficult to imitate. Referring back to the example of Inditex, other fashion organisations may attempt to copy their infrastructure wholesale but this is a high risk strategy since Inditex regards people (specifically, the store managers and designers) as key resources. These employees are empowered to make decisions that drive Zara's rapid response to customer trends in fashion. Also present in successfully innovating firms is a <em>managerial capability</em> required to achieve rewarding innovations in the first place, and these managers are supported by a <em>corporate culture</em> that allows them to do their best work. Perhaps the best example is that of Jonothan Ive, who joined Apple in 1992, became VP of Industrial Design in 1998 and Senior VP of Design in 2005, and has been the main proponent in the design (and thus success) of the PowerBook G4, the Macbook, the unibody Macbook Pro, the iPod, iPhone and now the iPad. Apple doing their best to retain Jonothan and his team is a major contributor to Apple's ongoing successful innovation. Finally, it is worth remembering that no firm is an open book, and there are likely many more innovative processes and practices at work inside Inditex and Apple that have not found their way to the public domain but are central to sustaining each their competitive edge. This is the idea of 'causal ambiguity' (King 2007) and it represents a major problem for imitators in that they cannot exactly articulate how Inditex, Apple, etc remain successful innovators. Indeed, Tidd asserts (2005) that any successful "innovation management routines" are difficult to copy simply because they represent the accumulation of a long line of lessons learnt along the way. This essentially means that firms should seek to forge their own learning path to successful innovation and avoid the temptation to copy "fashions" if they are to sustain their competitive edge through successful innovation management.</p>
<p>There is no sure way to guarantee value-creating, growth-inducing innovation. Ultimately, to 'manage innovation' is to establish the resources and develop the capabilities to merely increase the chances, radically or less so according to the skill of management, that successful innovation will flow from the organisation. Organisations must evolve capabilities to scan the marketplace for signals, select high-potential ideas, resource and manage their execution effectively, quickly gain and react to customer feedback, and in the final stages, retrospect on the initiative and learn as much as possible regardless of success or failure. In parallel, firms must constantly broaden their resources for knowledge management, cross-functional communication and collaboration of employees, effective collaboration with customers, suppliers and partners, and leverage advanced ICT infrastructures to support all of the above. This represents a major challenge for organisations, but one that cannot be ignored, because to ignore the challenge of innovating successfully is to doom the organisation to disruption by another and eventual extinction.</p>
<p><span style="text-decoration: underline;">References:</span></p>
<p>Christensen, C.M., 1997. <em>The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail</em> illustrated edition., Harvard Business School Press.</p>
<p>Gallaugher, John., <em>Information Systems: A Manager's Guide To Harnessing Technology.</em> Retrieved Mar 19, 2010 from <a href="http://www.flatworldknowledge.com/node/41126">http://www.flatworldknowledge.com/node/41126</a> .</p>
<p>King, A., 2007. Disentangling Inter-and Intra-Firm Causal Ambiguity: A Conceptual Model of Causal Ambiguity and Sustainable Competitive Advantage. <em>Academy of Management Review</em>, 32(1), 156–178.</p>
<p>Koudal, P., 2005. Mastering Innovation–Exploiting Ideas for Profitable Growth. <em>Deloitte research</em>.</p>
<p>Mesaglio, Mary., <em>IT-Enabled Innovation</em>, lecture given at Travel Corporation luncheon, Rubens Hotel, London. 24th March 2010.</p>
<p>Moore, G., 2006. <em>Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution</em>, Capstone.</p>
<p>Nonaka, I.A. &amp; Takeuchi, H.A., 1995. <em>The knowledge-creating company: How Japanese companies create the dynamics of innovation</em>, Oxford university press.</p>
<p>Penrose, E. &amp; Pitelis, C., 2009. <em>The Theory of the Growth of the Firm</em> 4th ed., Oxford University Press, USA.</p>
<p>Polanyi, M., 1966. The tacit dimension. <em>New York</em>.</p>
<p>Poppendieck, M. &amp; Poppendieck, T., 2006. <em>Implementing Lean Software Development: From Concept to Cash (The Addison-Wesley Signature Series)</em>, Addison-Wesley Professional.</p>
<p>Tidd, J., Bessant, J. &amp; Pavitt, K., 2001. <em>Managing Innovation: Integrating Technological, Market, and Organizational Change, 2nd Edition</em> 2nd ed., John Wiley &amp; Sons.</p>
<p>Van de Ven, A.H. et al., 1999. <em>The innovation journey</em>, Oxford University Press New York.</p>
<p>Von Hippel, E., 1986. Lead users: A source of novel product concepts. <em>Management science</em>, 32(7), 791–805.</p>
<p>Wernerfelt, B., 1984. A Resource-Based View of the Firm. <em>Strategic Management Journal</em>, 5(2), 171-180.</p>
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		<title>On the Nature of Knowledge, Public and Private</title>
		<link>http://www.markgibaud.com/blog/2009/12/15/on-the-nature-of-knowledge-public-and-private/</link>
		<comments>http://www.markgibaud.com/blog/2009/12/15/on-the-nature-of-knowledge-public-and-private/#comments</comments>
		<pubDate>Tue, 15 Dec 2009 21:40:16 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[academic]]></category>

		<guid isPermaLink="false">http://www.markgibaud.com/blog/?p=39</guid>
		<description><![CDATA[The following is an academic essay prepared for my Msc in Managment at Birkbeck University. [Update: This essay received 70%] The Nature of Knowledge as an Economic Good, Public and Private by Mark Gibaud In the 19th century industrialist society, the capacity to generate wealth was inextricably linked to physical property rights. This means that [...]]]></description>
			<content:encoded><![CDATA[<p><em>The following is an academic essay prepared for my Msc in Managment at Birkbeck University.</em></p>
<p><em>[Update: This essay received 70%]</em></p>
<p><em><br />
</em></p>
<div style="margin-top: 0px; margin-bottom: 0px; text-align: center;"><span style="text-decoration: underline;"><span style="font-size: small;">The Nature of Knowledge as an Economic Good, Public and Private</span></span></div>
<div style="margin-top: 0px; margin-bottom: 0px; text-align: center;"><span style="font-size: small;">by Mark Gibaud</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">In the 19th century industrialist society, the capacity to generate wealth was inextricably linked to physical property rights. This means that wealth generation was implicitly excludable. In the new intellectually-powered economy knowledge is the source of wealth but must be afforded a special mechanism of protection since new knowledge is expensive to create but often (though not always) easier and cheaper to imitate. It is in society's interest to reward these creators of new knowledge so as to incentivise their ongoing efforts such that new knowledge is continually created. However, society also benefits when knowledge is freely diffused, disseminated and leveraged as shown by the Open Source Software movement. This dilemma has given rise to the debate of knowledge being an economic good, but should it be public or private, or both? This essay attempts to answer this question by further analysing the nature of both public knowledge and private knowledge and qualifies the role of intellectual property rights (IPRs). A deeper analyses the nature of the relationship between public and private knowledge is followed by the policy implications suggested by that relationship.</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">A 'pure' public good by definition is non-excludable. That is, one's consumption of it does not prohibit another's ability to also enjoy it. Also, it is non-rival, meaning, as more people enjoy it, there is no reduction in supply which may cause others to go without it (public goods exhibiting only one of these characteristics are not noted as 'pure' public goods) (Kaul and Mendoza 2003). Air, for breathing, is an example of a pure public good in that it is neither excludable nor rival, since my breathing the air does not leave less of it for you, nor can I do very much to prohibit you from enjoying it. Though there are kinds of knowledge that do not have these characteristics, the majority of scientific knowledge (including economics and the social sciences) does enjoy these characteristics and is thus a prime public good. Public knowledge generally refers to knowledge coming from academics and researchers in universities, but can also include industry 'best practices' like Total Quality Management or Capability Maturity Model Integration (Matusik 2002). Private knowledge on the other hand is knowledge unique to particular firms and can be wrapped up inside company policies and processes (for eg. Google's "20% time"), and also embodied in services and products (Nelson 1992). Keith Pavitt argues compellingly for the distinction between science and technology, where technology "ecompass[es] both physical artefacts themselves, and the person-embodied knowledge to develop, operate and improve them." (Pavitt 1987). However, the real-world actualisation of that distinction is slightly more difficult to locate. For instance, two researchers may be performing the same basic undertaking of research into a particular topic or field, but one might be working at Google Research and the other at Stanford University (Nelson (1992) makes a similar observation of engineers engaged in research at IBM, AT&amp;T and DuPont at that time). The university researcher is motivated to publish his research and contribute to the stock of knowledge, while the Google researcher is bound to keeping the results of his research private, and allow Google to benefit from the Schumpeterian rents associated with leveraging private knowledge (Nelson 1992). This is done either through patents, in which case the knowledge is public but protected, or through secrecy, by which the knowledge stock is left bereft of the Google researcher's new knowledge altogether (Nelson 1992). This is the distinction between science and technology implicitly proposed by the economists Sir Partha Dasgupta and Paul David when they argued that science contributes to the stock of knowledge, while technology does not (Dasgupta &amp; David 1985). Finally, Dasgupta and David also reason (1985) that science produces knowledge that is more "general and fundamental" in nature and lacking in "immediate practical applicability" than what technological research tends to pursue. A distinction then, not so much of nature, but of goals, and a distinction that is illuminating when considering what direction public policy should take.</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">We have established that knowledge can be a public good. The fact that it is non-excludable and non-rival, means that it is effectively free, and no profit can thus be generated from public knowledge in and of itself (transmission costs of knowledge is a separate issue). This in turns means that there is no financial incentive to contribute to the stock of public knowledge. Thus, if left to the open market, any contribution will likely not occur and lead to a "tragedy of knowledge", where players might deplete the stock of knowledge (as it is still profitable to embed and evolve ideas from public knowledge into private products) without any replenishment of new knowledge into that stock taking place (David 2001). For an analogy, the same problem affects pollution, where no one company will curb its carbon emissions as it then puts itself at a disadvantage with competing companies in terms of manufacturing output. In matters like these, it is a compelling argument for the state to get involved, as can be seen by the recent lobbying activity in Copenhagen recently for climate change. As knowledge itself is an input to new knowledge (Stiglitz 1999, David 2001), this public good is critical to fostering ongoing innovation, and thus it is imperative that the state facilitate the cultivation of knowledge as a public good, as it does with other public goods. But the state does not directly incentivise this creation process. Rather, academia centres around a compelling code of conduct relating to publication, scientific priority and reputation building. Scientific priority is the phenomenon whereby fame and recognition is accorded to that discoverer who </span><em><span style="font-size: small;">published</span></em><span style="font-size: small;"> his discovery first, irrespective of whether one or more other researchers made the same discovery independently at the same or similar times. In Robert K Merton's seminal discussion of scientific priority  (1957), he tells of some fierce battles of priority such as Galileo who, in </span><em><span style="font-size: small;">The Assayer,</span></em><span style="font-size: small;"> "flayed four other would be rivals" in aid of protecting his discoveries. Notwithstanding with this winner-takes-all approach for scientific discoveries, a steady building of reputation is also very important to scientific researchers. Charles Darwin, the first to develop the theory of evolution through natural selection, is quoted as saying "My love of natural science . . . has been much aided by the ambition to be esteemed by my fellow naturalists." (Barlow 1958). It would appear that the state only has to facilitate this self-promotion of the academic community in order to safeguard a continual contribution to the public stock of knowledge.</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">Knowledge can also be a private good. Successful companies seek to employ effective strategies to cultivate the generation, capture and dissemination (Nonaka and Takeuchi 1995, Senge 1991) of their private knowledge as this contributes directly to an organisation's competitive advantage (Teece 2000) and is key to providing new products and services (Kessels 2001). Nelson (1992) pointed out that firms make use of intellectual property rights (mainly patenting) and secrecy to pursue profit from their organisational private knowledge. But Mansfield (1985) found that secrecy is often not very effective. He noted after studying 100 American firms that "information concerning the detailed nature and operation of a new product or process generally leaks out within about one year". The argument that the state must safeguard </span><em><span style="font-size: small;">some</span></em><span style="font-size: small;"> kind of reward for innovators and their product and process breakthroughs is unassailable, though precisely how and what is the subject of increasing debate. Still dominant in these times though, is the patenting system.</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">The patenting system intends to encourage innovation and technological breakthrough by firstly creating a temporary monopoly for the inventor or inventors such that they are rewarded for their efforts, and secondly by requiring disclosure of the knowledge that led to the new product or process, such that that knowledge may be diffused to the benefit of wider society (Griliches 1990). It asserts that firms will not invest in innovation activities if they cannot reasonably expect profits to be generated from innovative breakthroughs. If imitators should come into possession of knowledge that innovative firms have invested heavily to develop, these "free-riders" will negatively affect the motivation of firms to invest in innovation (Gault and Von Hippel 2009). It is argued that any abolition of IPRs risks a "tragedy of knowledge", as it might benefit society at the present, since their would be an influx of new knowledge that may well be leveraged usefully. However, without any legal monopoly afforded by IPRs, there would no longer be a strong incentive to engage in expensive research and development and the creation of new knowledge would ebb away, leaving us at a relative standstill before long. Attention must be drawn, however, to the alternatives presented by, among others, Paul David (2001) such as "fair use" exclusions to the public research sector, and "compulsory licensing" which would enable the inventor to be rewarded but also society to benefit from the diffusion of the innovation. Gault and Von Hippel (2009) also cite government R&amp;D subsidies and tax credits as helpful mechanisms to "lower innovator's private costs" and go on to point out the Open Source Software phenomenon, where source code contributors act under agreement to engage in 'free-revealing' of their privately-generated knowledge in an effort to build reputations in their communities which would in turn lead to more income-generating opportunities for both that individual and their full-time employer. Products and processes that are subject to free-revealing also generate valuable feedback from the wider community so that a company might improve that product or process improving its quality and thus potentially improving profitability. De Jong and von Hippel (2009) also present 'free-revealing' to have similarly rewarded innovation in the process equipment industry for high-tech SME's in Holland. It is clear that there is increasing innovation in reward systems for inventiveness and the current debate in IPR circles may well begin a steady journey towards revolutionizing the system. </span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">Leonard-Barton asserts that "few if any companies can build capabilities without importing knowledge from outside its boundaries" (Leonard-Barton 1992). Remembering that firms on the whole seek to retain their own private knowledge, any company wanting to begin to deepen its capability has only one recourse: the public stock of knowledge. It can thus be said that in this aspect, private enterprise depends both initially and continually on the 'communal well' of public knowledge. In addition to the broadly applicable research that is generated in public academia, Nelson (1986) and Levitt et al (1984) found that across a wide range of sectors, there exists a dependency on the public academic infrastructure itself, in that the private sector directly values the training and research-orientated skills acquisition of future industrial researchers, as well as the academic "hive-mind" they bring with them in the form of a network of academic colleagues. It would appear that the nature of the public-private knowledge relationship is largely one of public creation and private consumption. Furthermore, it seems that there is no real risk of a confusion in roles as the institutions are, as discussed earlier, geared towards fundamentally different goals and outputs. </span><span style="font-size: small;">Although he notes computer programs (Google Search started life as a university research project) and biotechnology products as exceptions, Nelson (1992) suggests that, </span><span style="font-size: small;">"in most fields of technology what gives advantage to a company is a particular manifestation of a generic technology that is tailored to its own circumstance, products and processes." Although de Solla Price (1965) sums up the intent by stating that </span><span style="font-size: small;">"scientists are highly motivated to publish </span><span style="font-size: small;">but not to read, whereas technologists read assiduously but are not motivated to publish", it must be said that companies occasionally do also publish papers that contribute to public knowledge (Hicks et al. 1996).</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">Paul David tells us (2001) that the public good nature of public knowledge asserts that the free market cannot responsibly price that commodity such to align with the maximum benefit to society. Thus, the state has to engage in "public patronage for fundamental, exploratory research". This is a noble endeavour but one that subject to fiscal pressure on an ongoing basis, since any 'oversupply' of public knowledge could be wasteful in terms of taxpayer's money. On the other hand, the state must also govern the innovation-reward institution with an even hand. If governments overstate the benefit of innovation to private companies, the scales will tip in favour of turning public knowledge into private profits and we could advance the journey toward a "tragedy of the public knowledge commons". Furthermore, governments would be well advised to pay close attention to the research uncovering new ways by which innovators and inventors could be rewarded, but in addition, downstream innovation is further infused than it is currently, under the contemporary IPR system.</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><strong><span style="font-size: small;">Conclusion:</span></strong></div>
<div style="margin-top: 0px; margin-bottom: 0px; text-align: left;"><span style="font-size: small;">In summary, given that the over-arching goal is the betterment of society generally, through the continual upgrading of existing, and the invention of new technology, it would appear that a public-private partnership where researchers and academics "push" knowledge of a more fundamental nature and of more general applicability to the stock of public knowledge, and in turn the private sector be incentivised to "pull" from this common stock, perhaps adding it to their internal research (which is of a more focused and specified nature) to then internally develop products which embed the science into new technology, this societal goal is served the best. Consequently, public policy needs to centre around maintaining this balance. By way of simple analogy, it falls to the state to ensure that the tree of knowledge is adequately watered, such that its trunk and branches, the public knowledge, may support the growing of new leaves of private knowledge to the benefit of society at large.</span></div>
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<div style="margin-top: 0px; margin-bottom: 0px;"><em><span style="font-size: small;">References:</span></em></div>
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<div style="margin-top: 0px; margin-bottom: 0px;"><span style="font-size: small;"> </span><span style="font-size: small;">Barlow, N., 1958. The Autobiography of Charles Darwin. </span><em><span style="font-size: small;">London: Collins</span></em><span style="font-size: small;">, 119–120.</span></div>
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<p style="margin: 0px;"><span style="font-size: small;">Dasgupta, P. et al., 1997. On Institutions that Produce and Disseminate Knowledge. </span><em><span style="font-size: small;">Fondazione Eni Enrico Mattei, Nota di lavoro</span></em><span style="font-size: small;">, 68. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=On%20Institutions%20that%20Produce%20and%20Disseminate%20Knowledge&amp;rft.jtitle=Fondazione%20Eni%20Enrico%20Mattei%2C%20Nota%20di%20lavoro&amp;rft.volume=68&amp;rft.aufirst=P.&amp;rft.aulast=Dasgupta&amp;rft.au=P.%20Dasgupta&amp;rft.au=K.%20G.%20M%5C%C3%A4ler&amp;rft.au=G.%20B.%20Navaretti&amp;rft.au=D.%20Siniscalco&amp;rft.date=1997"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Dasgupta, P. &amp; David, P., 1985. </span><em><span style="font-size: small;">Information Disclosure and the Economics of Science and Technology</span></em><span style="font-size: small;">, C.E.P.R. Discussion Papers. Available at: </span><a href="http://ideas.repec.org/p/cpr/ceprdp/73.html"><span style="font-size: small;">http://ideas.repec.org/p/cpr/ceprdp/73.html</span></a><span style="font-size: small;"> [Accessed November 22, 2009].</span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">David, P.A., 2001. A tragedy of the public knowledge ‘commons’? Global science, intellectual property and the digital technology boomerang. </span><em><span style="font-size: small;">Research Memoranda</span></em><span style="font-size: small;">, 3. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=A%20tragedy%20of%20the%20public%20knowledge%20%E2%80%98commons%E2%80%99%3F%20Global%20science%2C%20intellectual%20property%20and%20the%20digital%20technology%20boomerang&amp;rft.jtitle=Research%20Memoranda&amp;rft.volume=3&amp;rft.aufirst=P.%20A&amp;rft.aulast=David&amp;rft.au=P.%20A%20David&amp;rft.date=2001"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Debackere, K., Clarysse, B. &amp; Rappa, M.A., 1994. Science and industry: a theory of networks and paradigms. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=Science%20and%20industry%3A%20a%20theory%20of%20networks%20and%20paradigms&amp;rft.aufirst=K.&amp;rft.aulast=Debackere&amp;rft.au=K.%20Debackere&amp;rft.au=B.%20Clarysse&amp;rft.au=M.%20A%20Rappa&amp;rft.date=1994"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Gault, F. &amp; Hippel, E.A.V., 2009. The Prevalence of User Innovation and Free Innovation Transfers: Implications for Statistical Indicators and Innovation Policy. </span><em><span style="font-size: small;">SSRN eLibrary</span></em><span style="font-size: small;">. Available at: </span><a style="color: #551a8b;" href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1337232"><span style="font-size: small;">http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1337232</span></a><span style="font-size: small;"> [Accessed December 15, 2009]. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=The%20Prevalence%20of%20User%20Innovation%20and%20Free%20Innovation%20Transfers%3A%20Implications%20for%20Statistical%20Indicators%20and%20Innovation%20Policy&amp;rft.jtitle=SSRN%20eLibrary&amp;rft.aufirst=Fred&amp;rft.aulast=Gault&amp;rft.au=Fred%20Gault&amp;rft.au=Eric%20A.%20Von%20Hippel&amp;rft.date=2009-02-03"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Griliches, Z., 1990. Patent Statistics as Economic Indicators: A Survey. </span><em><span style="font-size: small;">Journal of Economic Literature</span></em><span style="font-size: small;">, 28(4), 1661-1707. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=Patent%20Statistics%20as%20Economic%20Indicators%3A%20A%20Survey&amp;rft.jtitle=Journal%20of%20Economic%20Literature&amp;rft.volume=28&amp;rft.issue=4&amp;rft.aufirst=Zvi&amp;rft.aulast=Griliches&amp;rft.au=Zvi%20Griliches&amp;rft.date=1990-12&amp;rft.pages=1661-1707&amp;rft.issn=00220515"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;"><span style="font-size: small;">Hicks, D.M., Isard, P.A. &amp; Martin, B.R., 1996. A morphology of Japanese and European corporate research networks. </span><em><span style="font-size: small;">Research Policy</span></em><span style="font-size: small;">, 25(3), 359-378. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_id=info%3Adoi/10.1016/0048-7333%2895%2900830-6&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=A%20morphology%20of%20Japanese%20and%20European%20corporate%20research%20networks&amp;rft.jtitle=Research%20Policy&amp;rft.volume=25&amp;rft.issue=3&amp;rft.aufirst=Diana%20M.&amp;rft.aulast=Hicks&amp;rft.au=Diana%20M.%20Hicks&amp;rft.au=Phoebe%20A.%20Isard&amp;rft.au=Ben%20R.%20Martin&amp;rft.date=1996-05&amp;rft.pages=359-378"><span style="font-size: small;"> </span></span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;"><span style="font-size: small;">de Jong, J. &amp; Hippel, E.A.V., 2009. Free Transfer of User-Developed Process Innovations to Producers: A typical behavior among Dutch High-Tech SMEs. Forthcoming.</span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Kaul, I. &amp; Mendoza, R.U., 2003. Advancing the concept of public goods. </span><em><span style="font-size: small;">Providing global public goods: Managing globalization</span></em><span style="font-size: small;">, 78. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=Advancing%20the%20concept%20of%20public%20goods&amp;rft.jtitle=Providing%20global%20public%20goods%3A%20Managing%20globalization&amp;rft.aufirst=I.&amp;rft.aulast=Kaul&amp;rft.au=I.%20Kaul&amp;rft.au=R.%20U%20Mendoza&amp;rft.date=2003&amp;rft.pages=78"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Leonard-Barton, D., 1992. Core capabilities and core rigidities: A paradox in managing new product development. </span><em><span style="font-size: small;">Strategic management journal</span></em><span style="font-size: small;">, 111–125. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=Core%20capabilities%20and%20core%20rigidities%3A%20A%20paradox%20in%20managing%20new%20product%20development&amp;rft.jtitle=Strategic%20management%20journal&amp;rft.aufirst=D.&amp;rft.aulast=Leonard-Barton&amp;rft.au=D.%20Leonard-Barton&amp;rft.date=1992&amp;rft.pages=111%E2%80%93125"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Mansfield, E., 1985. How Rapidly Does New Industrial Technology Leak Out? </span><em><span style="font-size: small;">The Journal of Industrial Economics</span></em><span style="font-size: small;">, 34(2), 217-223. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=How%20Rapidly%20Does%20New%20Industrial%20Technology%20Leak%20Out%3F&amp;rft.jtitle=The%20Journal%20of%20Industrial%20Economics&amp;rft.volume=34&amp;rft.issue=2&amp;rft.aufirst=Edwin&amp;rft.aulast=Mansfield&amp;rft.au=Edwin%20Mansfield&amp;rft.date=1985-12&amp;rft.pages=217-223&amp;rft.issn=00221821"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Nelson, R.R., 1992. What is ‘commercial’and what is ‘public’about technology, and what should be. </span><em><span style="font-size: small;">Technology and the Wealth of Nations</span></em><span style="font-size: small;">, 57–71. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=What%20is%20%E2%80%98commercial%E2%80%99and%20what%20is%20%E2%80%98public%E2%80%99about%20technology%2C%20and%20what%20should%20be&amp;rft.jtitle=Technology%20and%20the%20Wealth%20of%20Nations&amp;rft.aufirst=R.%20R&amp;rft.aulast=Nelson&amp;rft.au=R.%20R%20Nelson&amp;rft.date=1992&amp;rft.pages=57%E2%80%9371"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Pavitt, K., 1987. On the nature of technology. </span><em><span style="font-size: small;">University of Sussex</span></em><span style="font-size: small;">. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=On%20the%20nature%20of%20technology&amp;rft.jtitle=University%20of%20Sussex&amp;rft.aufirst=K.&amp;rft.aulast=Pavitt&amp;rft.au=K.%20Pavitt&amp;rft.date=1987"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Matusik. S., 2002. An Empirical Investigation of Firm Public and Private Knowledge. </span><em><span style="font-size: small;">Strategic Management Journal</span></em><span style="font-size: small;">, 23(5), 457-467. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=An%20Empirical%20Investigation%20of%20Firm%20Public%20and%20Private%20Knowledge&amp;rft.jtitle=Strategic%20Management%20Journal&amp;rft.volume=23&amp;rft.issue=5&amp;rft.aulast=Sharon%20F.%20Matusik&amp;rft.au=Sharon%20F.%20Matusik&amp;rft.date=2002-05&amp;rft.pages=457-467&amp;rft.issn=01432095"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;"><span style="font-size: small;">Senge, P.M., 1993. </span></span><em><span style="font-size: small;"><span style="font-size: small;">The Fifth Discipline: Art and Practice of the Learning Organization</span></span></em><span style="font-size: small;"><span style="font-size: small;"> New edition., Random House Business Books. </span></span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_id=urn%3Aisbn%3A0712656871&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=The%20Fifth%20Discipline%3A%20Art%20and%20Practice%20of%20the%20Learning%20Organization&amp;rft.publisher=Random%20House%20Business%20Books&amp;rft.edition=New%20edition&amp;rft.aufirst=Peter%20M.&amp;rft.aulast=Senge&amp;rft.au=Peter%20M.%20Senge&amp;rft.date=1993-05-06&amp;rft.isbn=0712656871"><span style="font-size: small;"><span style="font-size: small;"> </span></span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Stephan, P.E. &amp; Audretsch, D.B., 2000. </span><em><span style="font-size: small;">The economics of science and innovation</span></em><span style="font-size: small;">, Edward Elgar Publishing. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_id=urn%3Aisbn%3A1858987555%2C%209781858987552&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&amp;rft.genre=book&amp;rft.btitle=The%20economics%20of%20science%20and%20innovation&amp;rft.publisher=Edward%20Elgar%20Publishing&amp;rft.aufirst=Paula%20E.&amp;rft.aulast=Stephan&amp;rft.au=Paula%20E.%20Stephan&amp;rft.au=David%20B.%20Audretsch&amp;rft.date=2000&amp;rft.isbn=1858987555%2C%209781858987552"><span style="font-size: small;"> </span></span></p>
<p style="margin-top: 1.1em; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;"><span style="font-size: small;">Stiglitz, J.E., 1999. Knowledge as a global public good. </span><em><span style="font-size: small;">Global Public Goods: International cooperation in the 21st century</span></em><span style="font-size: small;">, 308–25. </span><span title="url_ver=Z39.88-2004&amp;ctx_ver=Z39.88-2004&amp;rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&amp;rft.genre=article&amp;rft.atitle=Knowledge%20as%20a%20global%20public%20good&amp;rft.jtitle=Global%20Public%20Goods%3A%20International%20cooperation%20in%20the%2021st%20century&amp;rft.aufirst=J.%20E&amp;rft.aulast=Stiglitz&amp;rft.au=J.%20E%20Stiglitz&amp;rft.date=1999&amp;rft.pages=308%E2%80%9325"><span style="font-size: small;"> </span></span></p>
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		<title>Knowledge Management Essay</title>
		<link>http://www.markgibaud.com/blog/2009/12/05/knowledge-management-essay/</link>
		<comments>http://www.markgibaud.com/blog/2009/12/05/knowledge-management-essay/#comments</comments>
		<pubDate>Sat, 05 Dec 2009 19:14:32 +0000</pubDate>
		<dc:creator>Mark</dc:creator>
				<category><![CDATA[academic]]></category>

		<guid isPermaLink="false">http://www.markgibaud.com/blog/2009/12/05/knowledge-management-essay/</guid>
		<description><![CDATA[The following is an academic essay on Knowledge Management prepared for my Msc in Management at Birkbeck University, London. [Updated 15 Dec with final version] Organisational Knowledge as One of the Core Assets of our Time: Implications for Management by Mark Gibaud Knowledge is one of the key assets of the intellectually-powered "new" economy. Organisations [...]]]></description>
			<content:encoded><![CDATA[<p><em>The following is an academic essay on Knowledge Management prepared for my Msc in Management at Birkbeck University, London. </em></p>
<p><em> </em></p>
<p>[Updated 15 Dec with final version]</p>
<p><em> </em></p>
<p align="center"><span style="text-decoration: underline;"><strong>Organisational Knowledge as One of the Core Assets of our Time:</strong></span></p>
<p align="center"><span style="text-decoration: underline;"><strong> Implications for Management</strong></span></p>
<p align="center"><span style="font-size: xx-small; ">by Mark Gibaud</span></p>
<p><span style="font-size: small; ">Knowledge is one of the key assets of the intellectually-powered "new" economy. Organisations can achieve critical competitive differentiation if they learn to leverage the collective and cumulative knowledge of their employees. Starting earnestly in the mid 90's, Knowledge Management (KM) has emerged as the key discipline to support this endeavour, but many organisations have not yet fully recognised the benefits of managing their knowledge due to a poor understanding of the nature of workplace knowledge itself and how to effectively manage its capture, storage and distribution within the organisation. This essay aims to explore the implications for management by illuminating the nature of knowledge in the workplace, how it is generated and how to further amplify its generation such that an organisation can be in a better position to capture and diffuse it. Also highlighted are the compelling reasons as to why knowledge should be managed. Finally, one leading strategy, of moving from "channels" to "platforms", is more fully explored through the analysis of a new type of "wiki" software.</span></p>
<p><span style="font-size: x-small;"></p>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Knowledge is defined by the Oxford English Dictionary as "expertise and skills acquired by a person through experience or education". One might think that simply by extending this definition to include the situational context of the workplace, one can then arrive at an accurate assessment of organisational knowledge. However, this is only a part of the story. Organisations amplify knowledge in a number of ways from the cumulative efforts of its staff (Nonaka 1994), potentially creating a knowledge repository contributed to and in turn leveraged by all employees. Michael Polyani popularised the nature of tacit or implicit knowledge which is embodied in an individual and not easily codified or transferred (Polanyi 1966). Later, Ikujiro Nonaka focused on the distinction between tacit knowledge and explicit knowledge, which can be written down and transferred (Ikujiro &amp; Takeuchi 1991). Polyani also argued (1966:55) that all knowledge is either tacit or rooted in tacit knowledge.  Pairing this observation with the fact that the world is full of visible codified knowledge, it follows that tacit knowledge could be further broken down into that which is codifiable, albeit with more intensive effort and management, and that which remains uncodifiable, such as intuition gained from experience, vis-à-vis Polanyi's "We can know more than we can tell". Organisations have historically exhibited a high level of explicit knowledge codification such as operational manuals, process documentation and annual financial reports. However, it is the generation, codification and dissemination of knowledge further along the knowledge continuum (Leonard &amp; Sensiper 1999) (that is, increasingly tacit knowledge) that represents the major challenge for contemporary organisations and thus becomes the primary opportunity for knowledge management solutions (Twentyman 2006) (see diagram 1). In turn, the term "Knowledge Management" has many definitions. The common elements of the most-cited definitions centre around defining a strategy for creating, capturing, storing, accessing, and distributing knowledge across individuals, teams and the entire organisation (and sometimes even outside it) in an effort to generate value (increased skill in employees, more innovative products or services, etc) from an organisation's knowledge-based assets (Stankosky 2005, Davenport et al. 2008, O'dell &amp; Grayson 1998, Rumizen 2001, Brooking 1998).</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Nonaka, through the development of his SECI model (Nonaka 1994), argued that organisational knowledge can take on a self-generative nature when knowledge is transferred between tacit and tacit, tacit and explicit, and explicit and explicit states. He argued, after closely studying Japanese firms, that organisational knowledge takes on a "spiral" nature when transferring between these states, inferring that this "knowledge conversion" process serves to continually increase the organisation's total stock of knowledge as learning becomes embedded in the organisation's culture. A deeper analysis of Nonaka's SECI model is beyond the scope of this essay, but the key implication for management is that in order to create a useful knowledge base from which employees may leverage value, an organisation must first take the necessary steps to begin to support and facilitate the generation of that knowledge.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Another useful lens through which to define knowledge is with reference to the Knowledge Hierarchy (Zeleny &amp; von Hayek 1980) or DIKW (Data to Information to Knowledge to Wisdom) taxonomy, if only to assert that while an organisation might record data and make sense of that data turning it to information, gaining knowledge from that information is indeed the next level entirely. Consider when Google asked users in a survey whether they would prefer more search results per page (Millis 2006). Users responded that "more is better", so Google lengthened the results from 10 to 30 for some users. However, it turned out that the extra half-second that the page took to load drastically decreased user satisfaction such that users conducted fewer searches. Google took the data from the initial survey, turned it to information (a recommendation to provide more search results per page and thereby increase user satisfaction) but then, only after going forward with an experiment, did Google gain the knowledge that users actually far preferred faster load times than more results per page. The lesson here is that the management of knowledge, is very different to the management of mere data and information.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Much reference is also made to the dynamic nature of organisational knowledge (McInerney 2002), in that it is constantly being updated, upgraded and refreshed, and should be regarded and managed as a living entity rather than a static artifact.  Davenport &amp; Prusak argue that knowledge is not only bound to "documents and repositories" but also "routines, processes, practices and norms" (Davenport &amp; Prusak 2000). Knowledge is produced, captured and transferred in many ways, from formal mentoring arrangements, apprenticeships and training programs to informal workplace discussions. Since these workplace practices occur on an ongoing basis, it is imperative that any KM strategy and/or solution needs to facilitate the consistent and continual upgrading and improving of the organisation's knowledge.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">There is broad and growing consensus that the strategic management of knowledge assets contributes directly to an organisation's competitive advantage (Teece 2000) and is key to providing new products and services (Kessels 2001). On the other hand, neglecting this need leads to organisations suffering redundancy in effort and repeating past mistakes (Garfield 2007). International Data Corporation, a technology research group, reported that a poor capability to manage knowledge cost the Fortune 500 $12 billion per year (Stewart 2001, cited by McInerney 2002). But knowledge cannot be bought in and of itself; rather, it has to be cultivated in-house (Teece 2000) before any opportunity to embed it into new products or services can be fully exploited. The more salient knowledge an organisation has, and the more accessible it is, the more opportunities employees will find to leverage that knowledge in the innovation of new products and services. This will not only  decrease time-to-market and increase quality, but also expand the potential for future improvements to said products and services. It would appear that executives can no longer afford to lack a strategy for managing the collective of their employees' knowledge.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">There are many opportunities to both capture and diffuse knowledge already present in most organisations. Any design, development or engineering of a product is fundamentally a knowledge creation process, and the lessons of bringing a product to market are invariably valuable to future efforts (M. Poppendieck &amp; T. Poppendieck 2006). Davenport and Prusak, in their book "Working Knowledge: How Organisations Manage What They Know", highlight the value of interpersonal communication when facilitating knowledge transfer (Davenport &amp; Prusak 2000). Time should be allotted, they argue, to allow staff members to engage in spontaneous conversations, organised group KT (knowledge transfer) sessions, demonstrations, presentations and experience reports, and the idea of "productivity" should be broadened to include these activities. Swap et al. suggest (2001) that storytelling and mentoring are also powerful ways to diffuse knowledge if well managed, and highly recommend the practice of joint-problem solving involving a senior and junior practitioner (Leonard &amp; Swap 2004). A good example of this is in the software development industry where two programmers engage in "pair programming" (Williams &amp; Kessler 2002). Two programmers sit at one computer, taking turns to command the keyboard and mouse while the other reviews the code as it is written. The result is a higher quality piece of work, and a good deal of knowledge transfer between the programmers involved. Peter Senge also advocates creating learning situations (Senge 1993). In his book "The Fifth Discipline", he champions the creation of a "learning organisation" through five key disciplines including "team learning" through dialogue and group discussion. It is clear that there is already a wealth of key opportunities for the capturing of knowledge in the workplace, but the key is to institutionalise the culture of knowledge capture and sharing. Workers should not feel harried or rushed; rather, they must have the opportunity to constantly reflect and analyse how practices and processes might be improved (Garvin 2003). Projects should end with (or be punctuated by) "retrospectives" or "post-mortems" where questions such as "What did we do right?", "What did we do wrong?" and "How can we improve?" are asked and provoke discussion in their answers (Derby et al. 2006). Another key aspect to evolving towards a culture that facilitates KM is the breaking down of boundaries and isolated teams and individuals. Along with the aforementioned communities of practice, working groups provide an opportunity for individuals to share and collaborate with employees outside of their day-to-day teams. Management teams that cultivate this kind of culture will, in addition to fostering innovation, prime themselves for return on investment when engaging in KM practices.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">But how exactly do we use these opportunities to capture a deeper set of knowledge? Andrew McAfee recommends that organisations move away from communication "channels" where knowledge is one-to-one, formulated haphazardly and expended quickly, to communication "platforms" where knowledge has a bigger audience (and thus often displays more care in its creation) and can be kept relevant, salient and accessible (McAfee 2006). An instruction sent in an email to a new employee detailing the tools, practices and processes of the organisation is redundant effort, likely to be incomplete, and loses accessibility and visibility rapidly after its immediate use has expired. But a web page on the corporate intranet titled "Things you need to know to start" that is both easy to find, and easy to update, is instantly accessible to anyone, likely to be kept relevant and updated, and also likely to be a product of a group of people rather than one individual, greatly increasing the chance that it is of a higher quality (Mader 2007). A "wiki" is a website that allows users to create and edit HTML pages with rich content for immediate consumption by potentially everyone with a web browser. Wikipedia has built its success and huge popularity on this model. Contemporary wiki products include features like configurable access rights, a WYSIWYG (what-you-see-is-what-you-get) text editor, document revision history and several more features that make it an extremely compelling KM tool for the enterprise. A number of organisations have identified wikis as an excellent tool to facilitate communication and collaboration (Grace 2009) and one of the easiest ways to move from the "channel" of communication (often email) to a "platform" of wiki documents, photo galleries and blog entries. Management teams should look keenly to this and other "Web 2.0" technologies that contribute in bringing people together, as Nonaka's spiral can be greatly infused when large groups of employees, who are otherwise distributed across the organisation, are brought together in the same virtual space.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">However, it is important to note that the role of technology in Knowledge Management has historically been misdiagnosed and overstated. Consequently a number of organisations have missed the mark by focusing too much on the technology (Davenport et al. 2008). According to Teech (2000), IT solutions are only an enabler, and they should be implemented not to enable the storage and retrieval of knowledge, but the connection of people. This should be self-evident in today's Facebook dominated world, but as Joel Spolsky says, to promote the successful community-driven collaboration tool he helped create, "A successful Exchange [an installation of the product] depends on whether you [the product buyer] can supply the community", implying that even the best software solution will not create a useful knowledge base without the engagement of a community.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Microsoft chairman Bill Gates framed the challenge precisely in an interview for a Newsweek magazine article in 2006: “While information wants to be free, knowledge is much ‘stickier’ – harder to communicate, more subjective, less easy to define.” He continued that an employee's value to their firm is wrapped up in their tacit knowledge. “Your ability to combine it with the knowledge of co-workers, partners and customers can make the difference between success and failure – for you and your employer.” (Twentyman 2006) The message to management is clear: the cultivation and generation of strategic knowledge, followed by the effective capture, diffusion and consequent amplification will define competitiveness in tomorrow’s businesses. Organisations are highly advised to adopt strategies for the effective management of their employees' collective knowledge, as it is critical to survival in a knowledge-driven economy of the 21st century.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">References:</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Brooking, A., 1998. Corporate Memory: Strategies For Knowledge Management 1st ed., Cengage Learning Business Press.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Davenport, S.T., Prusak, L. &amp; Strong, B., 2008. Putting Ideas to Work. Wall Street Journal.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Davenport, T.H. &amp; Prusak, L., 1998. Working knowledge: How organizations manage what they know, Harvard Business School Pr.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Derby, E., Larsen, D. &amp; Schwaber, K., 2006. Agile Retrospectives: Making Good Teams Great illustrated edition., Pragmatic Bookshelf.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Elinor Millis, 2006. Google says speed is king - CNET News. CNet News. Available at: http://news.cnet.com/2100-1032_3-6134247.html [Accessed November 16, 2009].</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Garfield, S., 2007. Knowledge Management in the Real World. Lecture at Lawrence Technological University. Available online at</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">http://www.slideshare.net/SGarfield/knowledge-management-in-the-real-world [Accessed November 16, 2009].</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Grace, T.P.L., 2009. Wikis as a knowledge management tool. Journal of Knowledge Management, 13(4), 64 - 74.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Kessels, J.W., 2001. Learning in organisations: a corporate curriculum for the knowledge economy. Futures, 33(6), 497–506.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Lave, J. &amp; Wenger, E., 1991. Situated learning: Legitimate peripheral participation, Cambridge Univ Pr.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Leonard, D. &amp; Sensiper, S., 1999. The role of tacit knowledge in group innovation. Knowledge and Strategy, 281.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Leonard, D. &amp; Swap, W., 2004. Deep smarts. IEEE Engineering Management Review, 32(4), 3–10.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Mader, S., 2007. WikiPatterns, John Wiley &amp; Sons.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">McAfee, A.P., 2006. Enterprise 2.0: The dawn of emergent collaboration. MIT Sloan Management Review, 47(3), 21.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">McElroy, M.W., 2003. The new knowledge management: Complexity, learning, and sustainable innovation, Butterworth-Heinemann.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">McInerney, &amp;., 2002. Knowledge Management and the Dynamic Nature of Knowledge. Journal of the American Society for Information Science and Technology, 53(12), 1009–1018.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Nonaka, I., 1994. A Dynamic Theory of Organizational Knowledge Creation. Organization Science, 5(1), 14-37.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">O'dell, C. &amp; Grayson, C.J., 1998. If Only We Knew What We Know: The Transfer of Internal Knowledge and Best Practice 1st ed., Free Press.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Polanyi, M., 1966. The tacit dimension. New York.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Poppendieck, M. &amp; Poppendieck, T., 2006. Implementing Lean Software Development: From Concept to Cash (The Addison-Wesley Signature Series), Addison-Wesley Professional.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Rumizen, M.C., 2001. The Complete Idiot's Guide to Knowledge Management 1st ed., Alpha.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Senge, P.M., 1993. The Fifth Discipline: Art and Practice of the Learning Organization New edition., Random House Business Books.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Senge, P.M., 1990. The Leader's New Work: Building Learning Organizations. Sloan Management Review, 32(1), 7-23.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Spolsky, J., 2009. StackOverflow Podcast 70, IT Conversations. Transcript available at: http://blog.stackoverflow.com/2009/10/podcast-70/ [Accessed November 16, 2009].</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Stankosky, M., 2005. Creating the Discipline of Knowledge Management: The Latest in University Research, Butterworth-Heinemann.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Swap, W. et al., 2001. Using Mentoring and Storytelling to Transfer Knowledge in the Workplace. Journal of Management Information Systems, 18(1), 95-114.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Teece, D.J., 2000. Strategies for managing knowledge assets: the role of firm structure and industrial context. Long Range Planning, 33(1), 35–54.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Twentyman, J., 2006. Capturing knowledge Knowledge capture is an area that has traditionally been poorly served by supporting software tools. INSIDE KNOWLEDGE, 9(6), 42.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Wenger, E., 1999. Communities of practice: Learning, meaning, and identity, Cambridge Univ Pr.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Williams, L. &amp; Kessler, R., 2002. Pair Programming Illuminated, Addison Wesley.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Zeleny, M. &amp; von Hayek, F.A., 1980. Management support systems: Towards integrated knowledge management. Management, 1(1), 7.</div>
<p>Knowledge is defined by the Oxford English Dictionary as "expertise and skills acquired by a person through experience or education". One might think that simply by extending this definition to include the situational context of the workplace, one can then arrive at an accurate assessment of organisational knowledge. However, this is only a part of the story. Organisations amplify knowledge in a number of ways from the cumulative efforts of its staff (Nonaka 1994), potentially creating a knowledge repository contributed to and in turn leveraged by all employees. Michael Polyani popularised the nature of tacit or implicit knowledge which is embodied in an individual and not easily codified or transferred (Polanyi 1966). Later, Ikujiro Nonaka focused on the distinction between tacit knowledge and explicit knowledge, which can be written down and transferred (Ikujiro &amp; Takeuchi 1991). Polyani also argued (1966:55) that all knowledge is either tacit or rooted in tacit knowledge.  Pairing this observation with the fact that the world is full of visible codified knowledge, it follows that tacit knowledge could be further broken down into that which is codifiable, albeit with more intensive effort and management, and that which remains uncodifiable, such as intuition gained from experience, vis-à-vis Polanyi's "We can know more than we can tell". Organisations have historically exhibited a high level of explicit knowledge codification such as operational manuals, process documentation and annual financial reports. However, it is the generation, codification and dissemination of knowledge further along the knowledge continuum (Leonard &amp; Sensiper 1999) (that is, increasingly tacit knowledge) that represents the major challenge for contemporary organisations and thus becomes the primary opportunity for knowledge management solutions (Twentyman 2006) (see diagram 1). In turn, the term "Knowledge Management" has many definitions. The common elements of the most-cited definitions centre around defining a strategy for creating, capturing, storing, accessing, and distributing knowledge across individuals, teams and the entire organisation (and sometimes even outside it) in an effort to generate value (increased skill in employees, more innovative products or services, etc) from an organisation's knowledge-based assets (Stankosky 2005, Davenport et al. 2008, O'dell &amp; Grayson 1998, Rumizen 2001, Brooking 1998).</p>
<p>Nonaka, through the development of his SECI model (Nonaka 1994), argued that organisational knowledge can take on a self-generative nature when knowledge is transferred between tacit and tacit, tacit and explicit, and explicit and explicit states. He argued, after closely studying Japanese firms, that organisational knowledge takes on a "spiral" nature when transferring between these states, inferring that this "knowledge conversion" process serves to continually increase the organisation's total stock of knowledge as learning becomes embedded in the organisation's culture. A deeper analysis of Nonaka's SECI model is beyond the scope of this essay, but the key implication for management is that in order to create a useful knowledge base from which employees may leverage value, an organisation must first take the necessary steps to begin to support and facilitate the generation of that knowledge.</p>
<p>Another useful lens through which to define knowledge is with reference to the Knowledge Hierarchy (Zeleny &amp; von Hayek 1980) or DIKW (Data to Information to Knowledge to Wisdom) taxonomy, if only to assert that while an organisation might record data and make sense of that data turning it to information, gaining knowledge from that information is indeed the next level entirely. Consider when Google asked users in a survey whether they would prefer more search results per page (Millis 2006). Users responded that "more is better", so Google lengthened the results from 10 to 30 for some users. However, it turned out that the extra half-second that the page took to load drastically decreased user satisfaction such that users conducted fewer searches. Google took the data from the initial survey, turned it to information (a recommendation to provide more search results per page and thereby increase user satisfaction) but then, only after going forward with an experiment, did Google gain the knowledge that users actually far preferred faster load times than more results per page. The lesson here is that the management of knowledge, is very different to the management of mere data and information.</p>
<p>Much reference is also made to the dynamic nature of organisational knowledge (McInerney 2002), in that it is constantly being updated, upgraded and refreshed, and should be regarded and managed as a living entity rather than a static artifact.  Davenport &amp; Prusak argue that knowledge is not only bound to "documents and repositories" but also "routines, processes, practices and norms" (Davenport &amp; Prusak 2000). Knowledge is produced, captured and transferred in many ways, from formal mentoring arrangements, apprenticeships and training programs to informal workplace discussions. Since these workplace practices occur on an ongoing basis, it is imperative that any KM strategy and/or solution needs to facilitate the consistent and continual upgrading and improving of the organisation's knowledge.</p>
<p>There is broad and growing consensus that the strategic management of knowledge assets contributes directly to an organisation's competitive advantage (Teece 2000) and is key to providing new products and services (Kessels 2001). On the other hand, neglecting this need leads to organisations suffering redundancy in effort and repeating past mistakes (Garfield 2007). International Data Corporation, a technology research group, reported that a poor capability to manage knowledge cost the Fortune 500 $12 billion per year (Stewart 2001, cited by McInerney 2002). But knowledge cannot be bought in and of itself; rather, it has to be cultivated in-house (Teece 2000) before any opportunity to embed it into new products or services can be fully exploited. The more salient knowledge an organisation has, and the more accessible it is, the more opportunities employees will find to leverage that knowledge in the innovation of new products and services. This will not only  decrease time-to-market and increase quality, but also expand the potential for future improvements to said products and services. It would appear that executives can no longer afford to lack a strategy for managing the collective of their employees' knowledge.</p>
<p>There are many opportunities to both capture and diffuse knowledge already present in most organisations. Any design, development or engineering of a product is fundamentally a knowledge creation process, and the lessons of bringing a product to market are invariably valuable to future efforts (M. Poppendieck &amp; T. Poppendieck 2006). Davenport and Prusak, in their book "Working Knowledge: How Organisations Manage What They Know", highlight the value of interpersonal communication when facilitating knowledge transfer (Davenport &amp; Prusak 2000). Time should be allotted, they argue, to allow staff members to engage in spontaneous conversations, organised group KT (knowledge transfer) sessions, demonstrations, presentations and experience reports, and the idea of "productivity" should be broadened to include these activities. Swap et al. suggest (2001) that storytelling and mentoring are also powerful ways to diffuse knowledge if well managed, and highly recommend the practice of joint-problem solving involving a senior and junior practitioner (Leonard &amp; Swap 2004). A good example of this is in the software development industry where two programmers engage in "pair programming" (Williams &amp; Kessler 2002). Two programmers sit at one computer, taking turns to command the keyboard and mouse while the other reviews the code as it is written. The result is a higher quality piece of work, and a good deal of knowledge transfer between the programmers involved. Peter Senge also advocates creating learning situations (Senge 1993). In his book "The Fifth Discipline", he champions the creation of a "learning organisation" through five key disciplines including "team learning" through dialogue and group discussion. It is clear that there is already a wealth of key opportunities for the capturing of knowledge in the workplace, but the key is to institutionalise the culture of knowledge capture and sharing. Workers should not feel harried or rushed; rather, they must have the opportunity to constantly reflect and analyse how practices and processes might be improved (Garvin 2003). Projects should end with (or be punctuated by) "retrospectives" or "post-mortems" where questions such as "What did we do right?", "What did we do wrong?" and "How can we improve?" are asked and provoke discussion in their answers (Derby et al. 2006). Another key aspect to evolving towards a culture that facilitates KM is the breaking down of boundaries and isolated teams and individuals. Along with the aforementioned communities of practice, working groups provide an opportunity for individuals to share and collaborate with employees outside of their day-to-day teams. Management teams that cultivate this kind of culture will, in addition to fostering innovation, prime themselves for return on investment when engaging in KM practices.</p>
<p>But how exactly do we use these opportunities to capture a deeper set of knowledge? Andrew McAfee recommends that organisations move away from communication "channels" where knowledge is one-to-one, formulated haphazardly and expended quickly, to communication "platforms" where knowledge has a bigger audience (and thus often displays more care in its creation) and can be kept relevant, salient and accessible (McAfee 2006). An instruction sent in an email to a new employee detailing the tools, practices and processes of the organisation is redundant effort, likely to be incomplete, and loses accessibility and visibility rapidly after its immediate use has expired. But a web page on the corporate intranet titled "Things you need to know to start" that is both easy to find, and easy to update, is instantly accessible to anyone, likely to be kept relevant and updated, and also likely to be a product of a group of people rather than one individual, greatly increasing the chance that it is of a higher quality (Mader 2007). A "wiki" is a website that allows users to create and edit HTML pages with rich content for immediate consumption by potentially everyone with a web browser. Wikipedia has built its success and huge popularity on this model. Contemporary wiki products include features like configurable access rights, a WYSIWYG (what-you-see-is-what-you-get) text editor, document revision history and several more features that make it an extremely compelling KM tool for the enterprise. A number of organisations have identified wikis as an excellent tool to facilitate communication and collaboration (Grace 2009) and one of the easiest ways to move from the "channel" of communication (often email) to a "platform" of wiki documents, photo galleries and blog entries. Management teams should look keenly to this and other "Web 2.0" technologies that contribute in bringing people together, as Nonaka's spiral can be greatly infused when large groups of employees, who are otherwise distributed across the organisation, are brought together in the same virtual space.</p>
<p>However, it is important to note that the role of technology in Knowledge Management has historically been misdiagnosed and overstated. Consequently a number of organisations have missed the mark by focusing too much on the technology (Davenport et al. 2008). According to Teech (2000), IT solutions are only an enabler, and they should be implemented not to enable the storage and retrieval of knowledge, but the connection of people. This should be self-evident in today's Facebook dominated world, but as Joel Spolsky says, to promote the successful community-driven collaboration tool he helped create, "A successful Exchange [an installation of the product] depends on whether you [the product buyer] can supply the community", implying that even the best software solution will not create a useful knowledge base without the engagement of a community.</p>
<p>Microsoft chairman Bill Gates framed the challenge precisely in an interview for a Newsweek magazine article in 2006: “While information wants to be free, knowledge is much ‘stickier’ – harder to communicate, more subjective, less easy to define.” He continued that an employee's value to their firm is wrapped up in their tacit knowledge. “Your ability to combine it with the knowledge of co-workers, partners and customers can make the difference between success and failure – for you and your employer.” (Twentyman 2006) The message to management is clear: the cultivation and generation of strategic knowledge, followed by the effective capture, diffusion and consequent amplification will define competitiveness in tomorrow’s businesses. Organisations are highly advised to adopt strategies for the effective management of their employees' collective knowledge, as it is critical to survival in a knowledge-driven economy of the 21st century.</p>
<p>References:</p>
<p>Brooking, A., 1998. Corporate Memory: Strategies For Knowledge Management 1st ed., Cengage Learning Business Press.</p>
<p>Davenport, S.T., Prusak, L. &amp; Strong, B., 2008. Putting Ideas to Work. Wall Street Journal.</p>
<p>Davenport, T.H. &amp; Prusak, L., 1998. Working knowledge: How organizations manage what they know, Harvard Business School Pr.</p>
<p>Derby, E., Larsen, D. &amp; Schwaber, K., 2006. Agile Retrospectives: Making Good Teams Great illustrated edition., Pragmatic Bookshelf.</p>
<p>Elinor Millis, 2006. Google says speed is king - CNET News. CNet News. Available at: http://news.cnet.com/2100-1032_3-6134247.html [Accessed November 16, 2009].</p>
<p>Garfield, S., 2007. Knowledge Management in the Real World. Lecture at Lawrence Technological University. Available online at</p>
<p>http://www.slideshare.net/SGarfield/knowledge-management-in-the-real-world [Accessed November 16, 2009].</p>
<p>Grace, T.P.L., 2009. Wikis as a knowledge management tool. Journal of Knowledge Management, 13(4), 64 - 74.</p>
<p>Kessels, J.W., 2001. Learning in organisations: a corporate curriculum for the knowledge economy. Futures, 33(6), 497–506.</p>
<p>Lave, J. &amp; Wenger, E., 1991. Situated learning: Legitimate peripheral participation, Cambridge Univ Pr.</p>
<p>Leonard, D. &amp; Sensiper, S., 1999. The role of tacit knowledge in group innovation. Knowledge and Strategy, 281.</p>
<p>Leonard, D. &amp; Swap, W., 2004. Deep smarts. IEEE Engineering Management Review, 32(4), 3–10.</p>
<p>Mader, S., 2007. WikiPatterns, John Wiley &amp; Sons.</p>
<p>McAfee, A.P., 2006. Enterprise 2.0: The dawn of emergent collaboration. MIT Sloan Management Review, 47(3), 21.</p>
<p>McElroy, M.W., 2003. The new knowledge management: Complexity, learning, and sustainable innovation, Butterworth-Heinemann.</p>
<p>McInerney, &amp;., 2002. Knowledge Management and the Dynamic Nature of Knowledge. Journal of the American Society for Information Science and Technology, 53(12), 1009–1018.</p>
<p>Nonaka, I., 1994. A Dynamic Theory of Organizational Knowledge Creation. Organization Science, 5(1), 14-37.</p>
<p>O'dell, C. &amp; Grayson, C.J., 1998. If Only We Knew What We Know: The Transfer of Internal Knowledge and Best Practice 1st ed., Free Press.</p>
<p>Polanyi, M., 1966. The tacit dimension. New York.</p>
<p>Poppendieck, M. &amp; Poppendieck, T., 2006. Implementing Lean Software Development: From Concept to Cash (The Addison-Wesley Signature Series), Addison-Wesley Professional.</p>
<p>Rumizen, M.C., 2001. The Complete Idiot's Guide to Knowledge Management 1st ed., Alpha.</p>
<p>Senge, P.M., 1993. The Fifth Discipline: Art and Practice of the Learning Organization New edition., Random House Business Books.</p>
<p>Senge, P.M., 1990. The Leader's New Work: Building Learning Organizations. Sloan Management Review, 32(1), 7-23.</p>
<p>Spolsky, J., 2009. StackOverflow Podcast 70, IT Conversations. Transcript available at: http://blog.stackoverflow.com/2009/10/podcast-70/ [Accessed November 16, 2009].</p>
<p>Stankosky, M., 2005. Creating the Discipline of Knowledge Management: The Latest in University Research, Butterworth-Heinemann.</p>
<p>Swap, W. et al., 2001. Using Mentoring and Storytelling to Transfer Knowledge in the Workplace. Journal of Management Information Systems, 18(1), 95-114.</p>
<p>Teece, D.J., 2000. Strategies for managing knowledge assets: the role of firm structure and industrial context. Long Range Planning, 33(1), 35–54.</p>
<p>Twentyman, J., 2006. Capturing knowledge Knowledge capture is an area that has traditionally been poorly served by supporting software tools. INSIDE KNOWLEDGE, 9(6), 42.</p>
<p>Wenger, E., 1999. Communities of practice: Learning, meaning, and identity, Cambridge Univ Pr.</p>
<p>Williams, L. &amp; Kessler, R., 2002. Pair Programming Illuminated, Addison Wesley.</p>
<p>Zeleny, M. &amp; von Hayek, F.A., 1980. Management support systems: Towards integrated knowledge management. Management, 1(1), 7.</p>
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