CMN5150 Knowledge Management - An oral presentation on Nonaka & Takeuchi's book.

1. * * *
The Knowledge-Creating
Company
How Japanese Companies Create the
Dynamics of Innovation
November 28, 2011
UOKM
H. Wang

2. Table of Contents
Ch.No Title of content
1. Introduction to Knowledge in Organizations
2. Knowledge and Management
3. Theory of Organizational Knowledge Creation
4. Creating Knowledge in Practice
5. Middle-up-down Management Process for Knowledge Creation
6. A New Organizational Structure
7. Global Organizational Knowledge Creation
8. Managerial and Theoretical Implications
/ References
UOKM
Hanjun

3. Ch.1 Introduction to Knowledge in Organizations UOKM
Hanjun
The new focus on “knowledge” as a competitive resource
Uncertainty → fear → changes → knowledge creation → continuous
innovation → competitive advantage
The distinctive Japanese approach to knowledge creation
Explicit/tacit knowledge Tacit knowledge → explicit
The distinction is the key knowledge → tacit knowledge →
knowledge creation
Three key characteristics of
knowledge creation that relate to
how tacit can be made explicit
1) To express the inexpressible
2) To disseminate knowledge among
individuals
3) New knowledge is born in the
midst of ambiguity and
redundancy
The Honda City Example

4. Ch.2 Knowledge and Management UOKM
Hanjun
Western:
What is Knowledge? Justified true
belief. There are two traditions of
mutually
Western epistemology: complemen-
• Empiricism: Aristotle, Locke,
tary
etc.
• Rationalism: Plato, Descartes,
etc.
Synthesize the two: Kant, Hegel,
Marx, etc.
Oneness of … From what kind of Japanese intellectual traditions
Humanity/Nature a unique view of time and space
Body/Mind the ultimate ideal condition that Zen
practitioners seek
Self/Other the Japanese language

5. Ch.3 Theory of Organizational Knowledge Creation
UOKM
Hanjun
Organizational knowledge creation
Organization’s innovation: an outside-in and inside-out process
The key to knowledge creation: tacit knowledge
The engine of the knowledge creation process: four modes of
knowledge conversion
5 conditions
Tacit knowledge Explicit knowledge
to 5-pased model
knowledge
Tacit
(Socialization) (Externalization)
Sympathized Conceptual
Knowledge Knowledge
from
(Internalization) (Combination)
knowledge
Explicit
Operational Systemic
Knowledge Knowledge

6. Ch.4 Creating Knowledge in Practice
Matsushita Electric
UOKM
Hanjun

7. Ch.5 Middle-up-down Management Process for UOKM
Knowledge Creation Hanjun
Top-down model:
pyramid / top managers / combination /
internalization •Practitioners
•Engineers
Bottom-up model: •Officers
flat & horizontal / front-line
employees / socialization /
externalization Knowledge Creating Crew
Limitation:
ignoring middle managers
Middle-up-down management
Knowledge is created by middle managers, who
are the key to continuous innovation
Main job of middle managers: orient chaos
toward knowledge creation
Advantages: who/what/where/how

8. Ch.6 A New Organizational Structure UOKM
Hanjun
“Hypertext”
 To create K. efficiently and continuously, which should has
oscillated between two basic types: bureaucracy and task force.
 Attempt case: U.S. military (bureaucracy + task force) and
Japanese army & navy (bureaucracy) in WWII
 Advantages:
• bureaucracy + task force
• Knowledge base: the
“clearinghouse”
 Key characteristics of a
hypertext organization: the
ability of its members to shift
contexts, moving easily in and
out of one context into another
Failed to “unlearn” past
success factors

9. Ch.7 Global Organizational Knowledge Creation
Differences between the Japanese and Western approaches
The interaction between tacit and
explicit knowledge: individual VS
group
Emphasis on: explicit VS tacit
Certainty VS ambiguity
“knowledge specialists”
UOKM
Hanjun

10. Ch.8 Managerial and Theoretical Implications
UOKM
Hanjun
7 guidelines (organizationally)
1. Create a knowledge vision 5. Adopt middle-up-down management
2. Develop a knowledge crew 6. Switch to a hypertext organization
3. Build a high-density field of 7. Construct a knowledge network with
interaction at the front line the outside world
4. Piggyback on the new-product
development process
7 dichotomies (theoretically)
1. Tacit/explicit 5. Bureaucracy/task
2. Body/mind force
3. Individual/organi 6. Relay/rugby
zation 7. East/west
4. Top-down/bottom-
up

11. References
• A review and critique of Nonaka and Takeuchi’s theory of
organizational knowledge creation
http://mcleanglobal.com/public/MGC/publications/Nonaka%20and%20T
akeuchi.pdf
• Nonaka SECI model http://editthis.info/jsarmi/Nonaka_SECI_Model
• Nonaka’s knowledge model
http://www.youtube.com/watch?v=p_FcJaknptY
• Nonaka & Takeuchi - Seci, Ba & Knowledge Assets
http://paei.wikidot.com/nonaka-takeuchi-seci-ba-and-knowledge-
assets
• A graphic depiction of Nonaka’s & Takeuchi’s theory on knowledge
creation
http://usineaprojet.wikispaces.com/file/view/km_beckwith.pdf
• The Big Idea: The Wise Leader
• http://hbr.org/2011/05/the-big-idea-the-wise-leader/ar/1
• Wise leadership http://www.youtube.com/watch?v=Rp-cjRhWoV0
• Knowledge management in times of social media
http://www.youtube.com/watch?v=qnfYzKiW50Q
UOKM
Hanjun

12. Thank you!
Hanjun Wang
Nov.28,2011
UOKM
Hanjun