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Tr a n s f o r ming e-Knowledge 1 3 3 enterprises refine routines, policies, p rotocols, use of auto-tagging tools and agents, and explore alternate sources of e - k n ow l e d g e ; • p ri c e of individual units of digital k n owledge will decline dramatically in the face of competition (including exc e l- lent sources of free e-know l e d g e ) , diminishing costs of production; • p remium prices will be accepted by indi- viduals for particular combinations of content, context, and tradecraft embed- ded in performances and experiences; • new markets for an individual’s or enter- p ri s e’s e - k n owledge will be opened by e- k n owledge marketplaces; • c r eation and use of knowledge will be combined in many settings (e.g. com- munities of practice) resulting in a sort of barter and free access for insiders; and • new patterns of interactivity will enable dramatic reductions in the cost and price of cohort-based learning experiences. One cannot precisely predict with elegant p r ecision the combination and range of choices that will constitute the e-know l- edge and e-learning marketplace of the f u t u r e. One thing is clear: e-know l e d g e will enable a new range of choices that will put the learner and knowledge seeker in the drive r’s seat. What are the top three success stories you have come across of e-learning in action? 1) Jones International University, which is the first fully accredited entirely online university in the USA and possibly the world; 2) Duke University Fuqua School of Management for running the most expensive online MBA program with a tuition fee of US $85,000—proving that people will pay for quality online education; and 3) MasterTutor.com, a little known but genuine effort which has a few thousand middle-class Indian students paying a few thousand rupees as fees per course. Madan Pant, Interviewed by Madanmohan Rao. D i s r uptive Reinvention from New Com - petitors and Innovators. For some time, traditional learning models have been chal- lenged by open universities, many of which e n roll hundreds of thousands of physical and virtual learners. To d a y, lowe r - c o s t , c o h o r t-based learning practices are being d e veloped in emerging markets in Asia and in Central and South America by Ma s t e r- Tu t o r.com, NTT, Ne x t Ed, ITESM, Un i s y s , and others. These models are driving dow n the cost and price of e-learning and know l- edge sharing. They will be refined in these settings and pro g re s s i vely applied to m a r kets in developed nations. T h e p rocesses, routines, and tradecraft used by these pioneering providers will be utilize d by other prov i d e r s . When a new model changes the economics of an industry and is difficult to replicate, it can by itself create a strong competitive advantage. Joan Magretta, 2002 Leveraging Relationships. The most successful business models in the e- K n owledge Economies will be based on l e veraging and extending existing re l a t i o n- ships. Whether it invo l ves creating or Best Practices, Business Models, and Strategies He who wishes to teach us a truth should not tell it to us, but simply suggest it with a brief gesture, a gesture which starts an ideal trajectory in the air along which we glide until we find ourselves at the feet of the new truth. Jose Ortega y Gasset Tr a n s f o r ming e-Knowledge 1 3 4 sharing knowledge or learning, re l a t i o n- ships with learners, members, customers, s t a f f, suppliers, and other stakeholders are at the center of the picture. What does this suggest for future pro s p e c t s of knowledge and learning enterprises? T h e f u t u r e belongs to knowledge and learning enterprises whose relationship is gro u n d e d on highly motivated stakeholders who a r e c o - c reators of the learning/know l e d g e sharing processes. Consider these examples: • The American Health In f o r m a t i o n Management Association (AHIMA) has defined the “body of know l e d g e” for HIM professionals, which is accessible f r om the AHIMA portal. Learning and k n o wledge seeking/creating experiences a r e also available through the port a l . The association has re i n vented its gov- ernance stru c t u re along a community of practice model, creating self-defining, emergent communities. • Claus Unger of Fern Un i v ersitaet in Germany (an open university) has described the "learning spaces" his insti- tution hopes to create. Students could use them repeatedly throughout their c a reers, pursuing different paths, pursu- ing learning at different depths, making use of sharable materials from across the Web that would be re c o n f i g u red in re a l time for different purposes. The future epicenter of e-know l e d g e sharing/e-learning appears to be: pro p r i- e t a ry learning and knowledge prov i d e r s , associations and professional societies, cor- porations with strong enterprise learning and communities of practice, open unive r- sities focusing on lifelong learning re l a - tionships, and traditional universities using relationships through alumni, extension and continuous learning channels. To paraphrase, the epicenter of knowledge may be with the individual but the epicenter of leverage is with the organization. Rudy Ruggles and Dan Holthouse Reinventing Strategies To assure success in the e-know l e d g e f u t u re, enterprises must re d i rect their strategies—not just for knowledge, but for all business processes, products, ser- vices, and experiences that depend on k n owledge. Some of that re d i r ection can s t a rt immediately, while other re f i n e m e n t s must await new technologies, standard s , m a rketplaces, changes in infrastru c t u re s , and re i n ventions of best practices a n d business models. The point is that the emergence of e-knowledge should affect e ve r y aspect of enterprise strategy and business planning. Take Immediate Actions to Improve Yo u r Readiness for e-Knowledge. In Chapter 7, we recommend 10 actions that your enter- prise can undertake immediately to enhance its readiness for e-knowledge. Craft an Enterprise Knowledge Strategy. Re i n v ention of enterprise strategy can s t a r t immediately through the crafting of an explicit knowledge strategy. At its first l e vel, this strategy identifies the cen- trality of knowledge to the enterprise’s mission, vision, and competitive posi- tion. At present time, enterprises bury their knowledge strategy implicitly within strategic and business plans. T h e enterprise must explicitly state its know l - edge strategies and link those strategies explicitly to unit business plans. Chapter 7 illustrates how to create a know l e d g e strategy that drives enterprise initiative s . Best Practices, Business Models, and Strategies The international dimension of higher education is an inherent part of its quality. Networking, which has emerged as a major means of action, should be based on sharing, solidarity and equality among partners. Marco Antonio Dias Tr a n s f o r ming e-Knowledge 1 3 5 Success in global markets depends on communities sharing knowledge across the globe. . . . Knowledge- driven markets make it imperative to develop a “knowledge strategy” along with a business strategy. Yet many organizations have no explicit, consolidated knowledge strategy. Rather, it exists implicitly at best, dispersed in strategic plans, human resource reports, or system- improvement proposals. A knowledge strategy details in operational terms how to develop and apply the capabilities required to execute the business strategy. Therefore, a knowledge strategy eventually depends on communities of practice.” Wenger et al, 2002 Take Advantage of Changes in the Mobility of Networked Knowledge. T h e p e rva s i ve spread of networks through enter- prises has changed the mobility and distri- bution of knowledge. Mohanabir Sa w n h e y and De val Parikh (2001) point out that back-office knowledge is often embedded in the network’s shared infrastru c t u re, while the front-office knowledge resides at the n e t w o r k’s periphery, where the users are . Significant units of formerly disconnected or isolated knowledge become available to users where ver they are needed. T h e s e d e velopments enable enterprises to consider a combination of four strategies for pro f i t- ing from knowledge mobility: • a r b i t ra g e— m oving knowledge to loca- tions where maintenance costs are lowe r ; • a g g re g a t i o n —combining formerly iso- lated knowledge into a pool of share d k n ow l e d g e ; Best Practices, Business Models, and Strategies Smart strategies are always based on a company’s unique knowledge . . . whether new knowledge, or existing knowledge. Rene Tissen, Daniel Andriessen, Frank Lekanne Deprez Reinvention of Strategies • Take immediate action to improve your enterprise’s readiness for e-knowledge (See Chapter 7 for 10 immediate actions). • Develop an explicit enterprise knowledge strategy. Develop an explicit enter- prise knowledge management strategy to tie knowledge asset management and reinventing knowledge ecology to business plans. (See Chapter 7 for examples) • Develop strategies to take advantage of changes in the mobility of networked knowledge: - arbitrage—moving knowledge to locations where maintenance costs are lower; - aggregation—combining formerly isolated knowledge into a pool of shared knowledge; - rewiring—connecting islands of intelligence by creating an information back- bone; and - reassembly—organizing pieces of knowledge from diverse sources into coherent, customized packages for customers. • Prepare to use expeditionary strategies to take advantage of opportunities. • Develop a strategy portfolio dealing with productivity improvement, incre- mental innovation and radical innovation (transformation) (See Chapter 7 for portfolio strategy methodology). • Enterprises leverage their relationships with learners, members, customers, and other stakeholders to provide new, personalized versions products, services, and experiences. Tr a n s f o r ming e-Knowledge 1 3 6 • re w i r i n g —connecting islands of intelli- gence by creating an information back- bone; and • re a s s e m b l y—organizing pieces of know l- edge from diverse sources into cohere n t , c u s t o m i zed packages for customers. Enterprises can fashion strategies for taking advantage of these opportunities to a d v ance the enterprise mission thro u g h n e t w o r ked e-know l e d g e . It may now make more sense to talk about a company’s distributed capabilities’ instead of ‘core capabilities’. Mohanabir Sawnhey and Deval Parikh P re p a re to Use Expeditionary Strategies to Take Advantage of New Opport u n i t i e s . Corporations, associations, gove r n m e n t agencies, and even universities have dis- c ove red the wisdom of taking an “e x p e d i- t i o n a r y” approach to developing strategies, p r oducts, services, and experiences for t o d a y’s market. They re a l i z e that during periods of technology disruption, “killer a p p s” are discove red not through flashes of re velation, but through expeditionary i n i t i a t i v es that use product platforms as continuously adapting probes into the f u t u re. The killer apps for e-know l e d g e will emerge over time, not in a flash of dot.com brilliance. In the words of James Brian Quinn, com- panies spot promising opportunities like s u r fers ride waves or scientists conduct re s e a r ch: by systematically observ i n g e n v i ronments, scanning ripples of oppor- tunity on multiple horizons, and learning to re c o g n i z e patterns of impending change, anomalies, or promising interac- tions that can be monitored, re i n f o rc e d , and exploited. Enterprises need flexible k n owledge platforms and the entre p re- neurial skill to seize opportunity wave s . This re q u i r es the systematic dissemina- tion and trading of knowledge, even pro- p r i e t a r y knowledge if necessary, to enable larger innovations that will leverage their own innova t i o n’s value by an order of magnitude (Quinn, 2002). Best Practices, Business Models, and Strategies Dialectic of Enterprise Knowledge Initiatives If your knowledge category has substantial competition, a “less is more” strategy works best. Thomas H. Davenport and John C. Beck. S t a b i l i t y D y n a m i s m Operate in current enviro n m e n t A g g r essively serve customers, l e a r ners, members, and stakeholders under current value p ro p o s i t i o n s Make current processes more e f ficient—enhance productivity and optimize workflow S t ru c t u re d / d i r ected learn i n g Vision future enviro n m e n t Rethink value propositions for customers, learners, members, and other stakeholders Reinvent current processes using collaboration and innovation to change enterprise dynamics— rethink every t h i n g Autonomic learn i n g Tr a n s f o r ming e-Knowledge 1 3 7 Best Practices, Business Models, and Strategies Tr a n s f o r ming e-Knowledge 1 3 8 Develop a Strategic Portfolio of e-Knowl - edge Initiatives. At any point in time, an enterprise will need to manage a port f o- lio of initiatives having va rying objec- t i v es, ranging from improvement to i n c r emental innovation to radical inno- vation. This will enable your enterprise to deal with the dialectic of enterprise ini- t i a t i v es, maintaining a balance betwe e n stability and dynamism, between oper- ating in today’s environment and making a jump shift in vision to the e- k n o wledge future . Leverage Relationships to Create New P roducts, Services, Knowledge Resourc e s and Experiences. Like best practices and business models, enterprise strategies should begin and end with re l a t i o n s h i p s . Mobile, networked e-knowledge prov i d e s a powe r ful instrument for establishing indispensable re l a t i o n s h i p s with members, customers, learners, staff, suppliers, and other stakeholders who not only want it, they want to participate in its creation. So what is it about the relationship and the associated experiences that can be both indispensable and differe n t i a t i n g ? Relationship is the only thing strong enough to resist the siren call of ten million other sites that are just a click away . . . In the digital world, the one with the best conversation usually wins. And I assure you that there are many dialogues out there still in search of a village square. Mikela Tarlow, 2002 T h e re are as many answers to this question as there are individuals seeking know l e d g e or engaging in learning. It seems clear, h owe ve r, that in the information surfeit of the attention economy, most individuals will forge indispensable relationships with a re l a t i vely small number of trusted orga- nizations, associations, institutions, and enterprises whose brand has been affirmed as meaning “giving me the know l e d g e I want, when I need it, efficiently, and as p a r t of an engaging experience.” So u n d s like a strategy for success. In Chapter 4, we introduced a quote by H.G. Wells expressing the potential for marshalling the fragmented know l e d g e re s o u rces around the world to address the difficulties of the age. This grand idea could not be implemented 60 years ago because we lacked the technology and the c a p a c i t y, let alone the will. In the near f u t u re, we shall possess the technologies and tradecraft to attempt We l l s’ vision. We h a ve come to comprehend the complexity of knowledge and the importance of c u l t u r e and knowledge ecology in estab- lishing meaning. What will the future of e - k n owledge hold for the re c e i v i n g , s o r ting, summarizing, digesting, clarify- ing, and comparing of the know l e d g e and ideas of our time? We shall all par- ticipate in crafting the answe r. An immense and ever-increasing wealth of knowledge is scattered about the world today; knowledge that would probably suffice to solve all the mighty difficulties of our age, but it is dispersed and unorganized. We need a sort of mental clearing house: a depot where knowledge and ideas are received, sorted, summarized, digested, clarified, and compared. H.G. Wells, 1940 Best Practices, Business Models, and Strategies Someday, in the distant future, our grandchildren’s grandchildren will develop a new equivalent of our classrooms. They will spend many hours in front of boxes with fires glowing within. May they have the wisdom to know the difference between light and knowledge. Plato Tr a n s f o r ming e-Knowledge 1 3 9 C H A P T E R Achieving Success in the Emerging e-Knowledge Industry • 10 Ways to Accelerate Your Readiness for e-Knowledge • Mobilizing Leaders, Policy Makers, and Practitioners • Developing a Knowledge Strategy that Drives Enterprise Initiatives 7 This book concludes as it began, with a simple vision: In the Knowledge Economy, individuals and enterprises that s h a re and process their knowledge most effectively have a gre a t advantage. To keep up, most of us will need an ord e r- o f - m a g n i t u d e leap in our ability to handle knowledge. This won’t happen without a genuine transformation in the ways in which knowledge is c reated, managed, re p u r p o s e d , combined, exchanged and experienced. This transformation is underw a y. Participation is m a n d a t o ry for all hoping to achieve success in the Knowledge Economy. We offer three instruments to help in preparing you and your enterprise for success in the Knowledge Economy. 10 Ways to Accelerate Yo u r Readiness for e-Knowledge. Individuals and organizations need practical, yet visionary actions that they can take to accelerate their capacity to develop infrastru c t u re s and capabilities and participate in the cascading cycles of re i n v e n t i o n . Mobilizing Leaders, Policy Makers, and Practitioners. The time is ripe to mobilize leaders, policy makers, and practitioners to shape the e-knowledge re v o l u t i o n . Developing a Knowledge Strategy that Drives Enterprise Initiatives. A concise knowledge strategy states how knowledge is essential to competitive advantage. It shapes the enterprise knowledge management strategy and initiatives that build competitive a d v a n t a g e . Tr a n s f o r ming e-Knowledge 1 4 0 Accelerating Readiness for e - K n o w l e d g e : Enterprises can gain a competitive advantage by accelerating their development of the perspectives, visions, infrastructures, processes, and capabilities needed for e-knowledge. Digital Rights Management (DRM)/Digital Asset Management: Enterprises develop the policies, protocols, and infrastructures needed to manage, meter and exchange their knowledge. e-Business: e-Business is more than e-commerce. It is the use of ICT to transform the way organizations conduct their business. e-Business enables enterprises to fundamentally change their relationships with customers, members, learners, suppliers/partners, and/or other stakeholders. O rganizational Story t e l l i n g : The essential tool of leadership wishing to engage their enterprise in understanding the future, disruptive technologies, and how they feel about change. Activity Based Costing (ABC): Accounting practices that enable measurement of the cost of enterprise activities. N o n - G o v e rnmental Org a n i z a t i o n s (NGOs): Nonprofit organizations that are not governmental entities. C o - C re a t i o n : When customers, members, or learners not only consume products, services, experiences, and knowledge, but participate in their creation, that is called co-creation. By definition, co-created knowledge is personalized to the needs of the co- creators. Operational Excellence: Providing world-class efficiencies, timeliness, and cost/price. G reat Pro d u c t s : Providing excellence and leadership in product quality and innovation. Customer Intimacy: Developing intimate indispensable relationships with customers, members, learners, and other stakeholders. Achieving Success in the Emerging e-Knowledge Industry The three [knowledge-sharing] myths are (1) build it and they will come, (2) technology can replace face-to-face, and (3) first you have to create a learning culture. Nancy M. Dixon Tr a n s f o r ming e-Knowledge 1 4 1 T h e re is no cookbook for preparing yo u r organization for e-knowledge transforma- tion. No formulaic process or canned con- sulting methodology will guarantee success. Building the perspectives, visions, i n f r a s t ru c t u res, processes, and capabilities needed to transform current practices to embrace e-knowledge is an expeditionary ve n t u r e requiring years to accomplish. And the jump shifts re q u i red may necessi- tate discontinuities in current practice. A number of actions at key pre s s u re points can make a dramatic differe n c e , s t a r ting immediately. Some can enable your enterprise to engage its leadership, s t a f f , faculty, learners, members, and other stakeholders in formative conve r s a- tions that will elevate their e-know l e d g e p e r s p e c t i ves and build capabilities. Ot h e r s will develop plans, pilot projects, and new i n f r a s t ru c t u res and capabilities. Some will collect and reflect on best practices and c o m p e t i t i ve intelligence. The sum total of such actions can accelerate your organiza- t i o n’s readiness for e-knowledge. They can also stimulate the expected cycles of re i n- vention in e-knowledge strategies, busi- ness models and best practices. These initiatives should not be treated as independent, one-time, or even sequential activities. Rather, they should be integrated into organizational processes for planning, d e velopment, management, and operation. Mo re ove r, they should be used as the i n s t rument for re i n venting those pro c e s s e s to reflect the strategic importance of e- k n owledge. To succeed in the Know l e d g e Ec o n o m y, your organization must harness and transform the capacity of individuals and the organization as a whole to acquire , manage, and share knowledge. Such expe- ditions re q u i re changes in your enterprise’s k n owledge ecology. These initiatives are organized using the s t ru c t u re of the thre e - p a rt model of the indicators of the e-Knowledge Ec o n o m y. We have purposefully re v ersed the ord e r, beginning with best practices, business models, and strategies. This formulation is a superior instrument for capturing the attention and evoking understanding fro m e ve ryone in the enterprise from grassro o t s to top leadership. Achieving Success in the Emerging e-Knowledge Industry Discovery and discernment are the cornerstone skills of the New Economy. Van B. Weigel 10 Ways to Accelerate Your Readiness for e-Knowledge Tr a n s f o r ming e-Knowledge 1 4 2 Best Practices Business Models and Strategies The next few years will witness dramatic changes in best practices, business models, and strategies for e-knowledge. W h i l e these cycles of re i n vention will continue for years, enterprises should move out immediately on five actions to enhance their readiness for e-know l e d g e . Engage everyone in the enterprise on the subject of e-knowledge. Use s t o rytelling to explore how individuals will experience knowledge. Mobilize e n e r gies from grassroots to the CEO and Board . e - K n owledge is not the subject of a m o m e n t a r y conversation, a fad, the busi- ness school topic du jour. Your enterprise’s response to this topic may define yo u r e n t e r p r i s e’s success in the next five ye a r s . The challenge for leadership is how to make e-knowledge a central topic in engaging conversations that mobilize ener- gies and release cre a t i v i t y. Talk the talk. The strategic conve r s a t i o n s about knowledge can focus on a variety of t h e m e s : • Using storytelling to engage broad cro s s - sections of your enterprise in addre s s i n g the e-knowledge future and sharing re a l - life success stories; • De veloping a range of future scenarios about the use of knowledge and the changing roles of organizations and i n d i v i d u a l s ; • Using these stories and scenarios to e x p l o re the possibilities of truly transfor- mational, and likely disru p t i ve, changes in the existing knowledge value chain and power relationships; and • Exploring the ecology, roles, and inter- actions of different knowledge enti- ties—individuals, teams and work g r oups, communities of practice, and k n owledge networks of various kinds. Strategic, enterprise-wide conve r s a t i o n s about knowledge should balance visioning with stories of successful transformation a l ready achieved. Walk the talk. It’s not just about story- telling. Enterprises should begin to utilize t e c h n o l o g y - s u p p o rted tools for sharing k n owledge, such as those using the Se m a n- tic Web and intelligent agent capabilities. E x e m p l a r y Resourc e s : Engage the Enterprise • The Squirrel: The Se ven Highest Va l u e Fo r ms of Organizational St o ry t e l l i n g , Stephen De n n i n g . w w w. s t e ve d e n n i n g . c o m / s q u i r re l . h t m • Eastern Michigan Un i versity story t e l l i n g about technology-driven change. w w w. t r a n s f o r m i n g e k n ow l e d g e . i n f o • C o l l a b o r a t i ve Decisionmaking and Personal Knowledge Ma n a g e m e n t with R-Objects Pepper . w w w. r - o b j e c t s . c o m / p a p e r s / w w w 2 0 0 2 / j e r n s t - w w w 2 0 0 2 . p d f Develop a knowledge strategy for the enterprise that brings into alignment: 1) management of the enterprise’s knowledge assets, and 2) the enterprise’s business plans to achieve its mission and goals. De velop a contemporary perspective on the strategic importance of know l e d g e , complementing the VOI perspective on the strategic importance of technology. In the past, a laissez - f a i re approach to know l- edge was sufficient, but no longer. Achieving Success in the Emerging e-Knowledge Industry Envisioning the end is enough to put the means in motion. Dorothea Brande 1 . S t o ry t e l l i n g 2 . Knowledge Strategy [...]... knowledge” is an essential developmental step in becoming reflective about your knowledge ecology Achieving Success in the Emerging e-Knowledge Industry a Practice process reinvention and innova tion Unlike 199 0s reengineering, today’s process reinvention takes a more sophisticated view of knowledge management, recognizing and incorporating the importance of organizational culture, embedded knowledge, and... importance of this initiative and its impact on the enterprise must be understood and reflected on at all levels For most organizations, it may be the most important single expedition in their development of eknowledge capabilities • Second, continuous improvement and assessment of user satisfaction need to be integral elements of this expedition, and the pace of adaptation needs to be accelerated • Third,... programs, products, services, and experiences E x e m p l a ry Resources: VOI-Based Strategies and ICT Plans • Donald M Norris 2002 Assuring Value from Your ICT Investment White Paper www.transformingeknowledge.info b Begin to fuse key knowledge functions/ p rocesses/technologies, building tow a rd E A I S This evo l u t i o n a ry process is at work today Colleges and universities are fusing portal,... need for organizations to become more intentional and systematic about ‘managing’ knowledge E x e m p l a ry Resourc e s : Knowledge Strategy E n v i ronmental Scan • AHIMA Case Study www.transformingeknowledge.info models, and strategies regarding e-knowledge; collect competitive 3 a Develop a knowledge strategy—a clear concise articulation of the role of knowl edge in achieving the enterprise’s mission, . won’t happen without a genuine transformation in the ways in which knowledge is c reated, managed, re p u r p o s e d , combined, exchanged and experienced. This transformation is underw a y f o r ming e-Knowledge 1 4 7 a. Practice process re i n vention and innova - t i o n . Unlike 199 0s reengineering, today’s p r ocess re i n v ention takes a more sophis- ticated view of knowledge. to know the difference between light and knowledge. Plato Tr a n s f o r ming e-Knowledge 1 3 9 C H A P T E R Achieving Success in the Emerging e-Knowledge Industry • 10 Ways to Accelerate Your

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