Brief summary

The concept of the Knowledge Creating Company describes organizations that understand knowledge as their most important resource and purposefully translate new insights into products, services, and systems. This is based on the connection between individual and organizational learning processes, fostered by deliberate structures, open communication, and creative dynamics. The goal is to continuously generate and share knowledge and transform it into innovation.

General ideas

• Knowledge is the central economic resource of modern organizations.

• Competitive advantages arise from the development of knowledge-based intangible assets.

• The key lies in the systematic handling of explicit and implicit knowledge.

• Organizations must constantly transform themselves and establish innovation as a process.

• Explicit knowledge: Easily expressed and communicated. It includes data, formulas, procedures, and principles.

  Implicit knowledge: Is personal in nature, difficult to formulate, and based on experience, intuition, and insight.

• Learning methods:

  Learning I (Single-Loop): Know-how is acquired based on existing premises.

  Learning II (Double-Loop): New premises and models of thought are developed.

• Personal and organizational knowledge:

  Knowledge begins with the individual and is transformed into organizational knowledge through dialogue, discussion, shared experiences, and observation. Conflict and ambiguity foster new perspectives. Redundancy strengthens knowledge exchange.

Contents

Organizational knowledge creation

Organizational knowledge creation refers to the ability to generate new knowledge and integrate it into products, services, and systems. Crucially, this requires a willingness to continuously question successful practices. Knowledge is the most important source of competitive advantage.

Theory of Organizational Knowledge Creation

• Difference between knowledge and information:

  Knowledge is based on conviction, meaning, and perspective. Information complements knowledge but does not fundamentally change it.

• Two dimensions of knowledge: Knowledge can be explicit or implicit and can be held by an individual or by one or more companies.

  Epistemologically: from implicit to explicit knowledge. Ontologically: from individual to organization and beyond.

Four modes of knowledge conversion

• Socialization:

  Transforming implicit knowledge into tacit knowledge through shared experiences and observation. Fosters trust and common alignment.

• Externalization:

  Transformation of implicit to explicit knowledge through language, metaphors, and models. Enables shared understanding and concept formation.

• Combination:

  Conversion of explicit knowledge to explicit knowledge through sorting, linking, and categorizing existing information.

• Internalization:

  Conversion of explicit to implicit knowledge through documentation, training, and reliving experiences.

The process is spiral-like and repeats itself at all levels of the organization.

Five conditions for knowledge creation

• Intention:

  Intention describes an organization's strategic direction. It serves as a benchmark for evaluating the truth and relevance of new knowledge and strengthens employee engagement. Organizations clearly formulate their intention and communicate it openly. This results in a vision of what kind of knowledge should be created and how it should be implemented. An example of a successful corporate vision is Sharp's: "Don't imitate."

• Autonomy:

  Autonomy means that all members of an organization are given as much freedom to make decisions as possible. This motivates them, promotes initiative, and facilitates the absorption and interpretation of new information.

  • Minimum Critical Specification : Standardize only what is absolutely necessary, while allowing employees the greatest possible freedom.

  • Autopoietic system: An organization in which each unit controls its own further development. Similar to cells in an organism.

  • Self-organized teams with diverse competencies (e.g., SED systems from sales, technology and development) enable diverse perspectives.

  • Rugby Approach: All team members work together from start to finish towards a common goal, which they achieve as a unit.

• Fluctuation and creative chaos:

  This condition focuses on the dynamic interaction between organization and environment. Creative chaos fosters ambition, innovation, and the emergence of new concepts. It helps to identify and overcome outdated ways of thinking. This involves consciously breaking down routines and mental models, questioning existing knowledge, and setting ambitious goals to generate a sense of productive uncertainty. Slogans like "Let's change the flow" encourage questioning the status quo and actively shaping change.

• Redundancy:

  Redundancy means that information is intentionally available multiple times. This facilitates knowledge sharing and reinforces learning through repetition. It is encouraged by close collaboration between different departments. Product teams are divided into competing groups, and employees regularly rotate between areas. Both scheduled and spontaneous meetings support this exchange. It is important to clearly define where information is available. However, excessive redundancy can lead to information overload and should therefore be controlled.

• Requisite Variety:

  Requisite Variety states that an organization must be as diverse internally as its environment in order to respond flexibly to change. This includes building a central knowledge base with easy access to relevant information. Equal access to information for all employees and regularly adapted organizational structures ensure adaptability and promote collective learning.

  
  

Five-phase model of knowledge creation

1. Sharing implicit knowledge

2. Development of concepts

3. Evaluation of concepts based on the company vision

4. Building a prototype

5. Cross-departmental exchange for further development

Management models

• Top-down:

  Knowledge is generated at the management level and passed down.

• Bottom-Up:

  Employees create knowledge independently. High level of personal responsibility, but less coordination.

• Middle-Up-Down:

  Middle management combines the vision of leadership with the knowledge of the operational level. It fosters continuous knowledge transfer.

Knowledge Creating Crew

Roll

• Knowledge Practitioners: Working with knowledge. Creating and revising knowledge through new insights.

• Knowledge Engineers: They control the knowledge process.

• Knowledge Officers: Manage the knowledge acquisition process. Shape the vision and strategic direction. Set the standard for the team.

This collaboration enables a continuous and dynamic knowledge system.

Hypertext structure

A hypertext system combines hierarchy and flexible teams. It connects bureaucracy and project work, enabling free access to information and fluid exchange. Three levels:

1. Business system (routine work)

2. Project teams (product development)

3. Knowledge Base (central knowledge database)

Examples include ECHO systems and Urgent Project teams, which link information, ideas, and projects.

Steps towards a learning organization:

1. Promoting systemic thinking

2. Develop personal mastery

3. Reflecting mental models

4. Building shared visions

5. Enabling team learning

Steps to realizing a Knowledge Creating Company

1. Develop a knowledge vision

2. Build a knowledge crew

3. Creating interaction fields

4. Using product development as a vehicle for new ideas

5. Introduce middle-up-down management

6. Building a knowledge network