economic clusters 2003 dr. terra
DESCRIPTION
Presentation that combines KM, Innovation Cluster, Portals and Communities of Practice and also presents a Brazilian case where all these concepts were applied to Research InstitutesTRANSCRIPT
Strengthening Economic Clusters and Value Chains through the
development of Knowledge Portals
Dr. José Cláudio C. Terra
Damascus, October 20, 2003
Promoting Information Technology for
Industrial Trade Facilitations - UNIDO
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The purpose of this presentation (paper) is to
establish the conceptual bases for the
development of a knowledge portal applied to a
generic economic cluster and value chain and to
report the initial results of a few Communities
of Practice developed across a number of
different Research Institutes in Brazil.
Strengthening Economic Clusters and Value Chains
through the development of Knowledge Portals
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But, first…
…a bit of background
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Distance:
Approximately
4.000 Km
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STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Next steps & expectations
page 9www.terraforum.com.br
STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Next steps & expectations
Final Considerations
page 10www.terraforum.com.br
Clusters Economics
- Linkages
- Informal learning networks
- Collaboration and Competition
- Common Resources
- International Ambition
- Linkages with Academia and
Government
Knowledge Management
- Identification, Generation,
Organization and Dissemination of
Information
- Tacit and Explicit Knowledge
- Communities
- E-learning
- Intangible Assets
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
page 11www.terraforum.com.br
Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
Clusters Economics
- Linkages
- Informal learning networks
- Collaboration and Competition
- Common Resources
- International Ambition
- Linkages with Academia and
Government
Knowledge Management
- Identification, Generation,
Organization and Dissemination of
Information
- Tacit and Explicit Knowledge
- Communities
- E-learning
- Intangible Assets
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
page 12www.terraforum.com.br
Some theoretical foundation (1)
Michael Porter, in his famous book
The Competitive Advantage of Nations,
called attention to the atmosphere of
learning, cooperation and high
competition existing in micro-regions.
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Some theoretical foundation (2)
Anna Lee Saxenian related the
development of Silicon Valley, starting
with the informal flows and networks of
collaboration and knowledge among
enterprises, universities and government
Source: Saxenian, A., Regional Advantage: Culture and Competition in Silicon Valley and
Route 128, Harvard University Press, 1996
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Some theoretical foundation (3)
The Japanese kairetsus and the just-in-
time methods of production, initially
developed by Toyota, have spread
throughout the world and have as one of
their bases a very high level of cooperation
and exchange of information among
enterprises in the productive chain.
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Some theoretical foundation (4)
In Europe, there are already reports that speak of a new
corporate structure: the “syndicates of companies”,
that is, associations of small and medium companies,
which do not compete against each other and which are co-
proprietors of “cooperatives” which assume responsibility
for activities in common , such as: marketing,
distribution, entry into foreign markets, licensing of
technology, etc.
Source: The Economist, Will the corporation survive? November 1st, 2001
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Some theoretical foundation (5)
“Research looking at knowledge networks between SMEs
in Australia showed that even when there was adoption of
networked technologies to allow connectivity between the
companies, the potential for knowledge exchange was
highly dependent on the level of trust. Similar work on
SME collaboration in Asia showed that information
sharing and learning was based on the prior existence of
trust and an atmosphere of continued trust building.”
Source: Braun, P., Digital knowledge networks: Linking communities of practice with innovation. Journal of
Business Strategies, 2002. 19(1): p. 43-54., in: Inter-Organizational Communities of Practice
by C. van Winkelen
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Some theoretical foundation (6)
“Collaboration is: “a cooperative, inter-organizational
relationship that relies on neither market nor hierarchical
mechanisms of control but is instead negotiated in an
ongoing communicative process”
Source: Lawrence, T., N. Philips, and C. Hardy, Watching whale watching. Exploring the discursive foundations of
collaborative relationships. Journal of Applied Behavioural Science, 1999. 35(4): p. 479-502. in: Inter-Organizational
Communities of Practice by C. van Winkelen
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Some theoretical foundation (7)
Government
Academia Industry
ETZKOWITZ, H. e LEYDESDORFF, L. - The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix
of university-industry-government relations. In: Research Policy, v. 29, n. 2, pp. 109-123, fevereiro 2000., in: Plonski, G.A., Public
Oral Examination as part of its candidacy to Full Professor at Business School at the University of São Paulo, July 16, 2003
Triple Helix I Triple Helix II Triple Helix III
Government
Academia IndustryAcademia Industry
Government
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Some theoretical foundation (8)
“The network is the enterprise”
Manuel Castells
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Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
Clusters Economics
- Linkages
- Informal learning networks
- Collaboration and Competition
- Common Resources
- International Ambition
- Linkages with Academia and
Government
Knowledge Management
- Identification, Generation,
Organization and Dissemination of
Information
- Tacit and Explicit Knowledge
- Communities
- E-learning
- Intangible Assets
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
page 21www.terraforum.com.br
In the mid-nineties, Knowledge Management
emerged as a discipline and a formalized
organizational function, initially in private
enterprises and, a little later, in government
offices and state-owned enterprises and in
supranational entities, such as The World Bank
and the United Nations.
Knowledge Management
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Knowledge Management
Information Management
Managing Knowledge
Philosophy
Psychology
Management Science
Anthropology
Sociology
Economics
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Managing Knowledge
Management Science
Strategy
Human Resources
Organizational Culture
IT
Finance
R&D & Innovation
Marketing
Knowledge Management
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Typical Knowledge Management Objectives
Acceleration of the generation of new knowledge with competitive value:
Increased collaboration among employees;
Facilitation of employee access to the sources of training (on-line and
off-line), information and knowledge;
Supply of personalized information just-in-time (dealing with information
overload);
Preservation and Protection of the intellectual capital existing in the
company;
Leveraging of the knowledge existing in the company and in the external
environment to better serve the customers;
Improvement of the decision-making process at all levels of the company
(management, production and on the front line);
Reduction of costs and of re-working:
Don’t reinvent the wheel; and
Avoid activities which add little value.
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KM Initiatives in Governments from OECD countries
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
Organisational arrangements (decentralisation of authority, opening up
bureaucratic divisions, use of information and communication
technologies etc.);
Personnel development (mentoring and training practices, mobility etc.)
and management of skills;
Transfer of competencies (databases of staff competencies, outlines of
good work practices, etc.);
Managerial changes and incentives for staff to share knowledge (staff
performance assessment and promotion linked to knowledge sharing,
evolution of the role of managers, etc.).
Broad Definition of KM
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44.8
26.1
21.7
5.8
0
5
10
15
20
25
30
35
40
45
Yes No, but it will certainly
become a priority in the
next 2 ye
No, but it will probably
become a priority in the
longer run
No
Good knowledge/information management is one of the top five internal priorities of your
organisation
KM Initiatives in Governments from OECD countries
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
page 27www.terraforum.com.br
KM Initiatives in Governments from OECD countries
10
12
14
16
18
20
22
8 10 12 14 16 18 20Perception of level and quality of KM practices, organisational and cultural change
(improving with higher score on the indicator)
Efforts made at improving KM
(increasing with higher score on the indicator)
Pol Bel
Por
Hun
Irl US
NorKor
Swe
Slo
Den
Eng
Fin
Ger
Gre
Can
FraIce
Group 1Group 2
Group 3
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
page 28www.terraforum.com.br
KM Initiatives in Governments from OECD countries
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
13
14
15
16
17
18
19
13 14 15 16 17
Efforts made at improving KM
(increasing with higher score on the indicator)
Finance
Trade & Industry
JusticeLabour
Prime Minister's
OfficeHealth /Social
Affairs Foreign
Affairs
Economy
EducationInterior
StateReform/Public Administration
Group 1Group 2
Group 3
Perception of level and quality of KM practices, organisational and cultural change
(improving with higher score on the indicator)
page 29www.terraforum.com.br
Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
Clusters Economics
- Linkages
- Informal learning networks
- Collaboration and Competition
- Common Resources
- International Ambition
- Linkages with Academia and
Government
Knowledge Management
- Identification, Generation,
Organization and Dissemination of
Information
- Tacit and Explicit Knowledge
- Communities
- E-learning
- Intangible Assets
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
page 30www.terraforum.com.br
Areas of a Knowledge Portal for Strengthening an
Economic Cluster Productive Chain
Information Flows;
Collaboration;
Training of Personnel;
Business Generation;
Promotion of Innovation; and
Optimization of Resources.
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I - Information Flows (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Provide broad access to updated, relevant information focused on the productive chain
The portal can serve as an information
source for all organizations:
Various kinds of reports and market
studies are not normally accessible to most
companies;
In certain cases, companies lack the
financial resources to acquire the reports;
in others, the companies do not even know
the reports exist;
It is also possible, via the portal, to reach
a large enough scale to look for and
organize widely-available data.
page 32www.terraforum.com.br
I - Information Flows (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Collect information from the companies to execute and rapidly update sectoral studies
It’s possible, via the portal, to establish
quite simple and automatic mechanisms
for data collection from the companies.
This not only permits reductions of cost,
but also of time required to carry out
research and industry diagnoses.
One can also think about creating
innovative indicators of the evolution of
the industry’s intellectual capital.
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II - Collaboration (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote information exchange and collaboration among companies in the productive chain
The portal can use various tools which
permit the virtual exchange of information
(discussion forums, chats, etc.) and also
the decentralized publication of the
contents by the companies participating in
the cluster.
Stimulate the development of “Practice
Communities” involving persons from
diverse companies.
These may include information about the
company itself, as well as a description of
projects in progress.
It’s also possible to consider areas such
as “Urgent Questions”.
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II - Collaboration (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote interchange between the private sector and knowledge sources in the public sector and academia
The portal may be designed to provide
quite specific information so that,
especially small businesses, have
instantaneous access to governmental
reports (e.g., trade missions) and
academic information (e.g., lists of experts
and national and international laboratories
relevant to the sector).
Persons from academia, research
institutes and government may also utilize
the portal to monitor the companies’
activities, projects and needs.
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III – Training of Personnel (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Centralize and reduce the cost by on-line training
On-line training modules may be made
available to all the companies.
There’s a clear reduction in the individual
costs of licensing and development of the
courses.
Increases are evident in the speed of
dissemination of new concepts.
Divulge opportunities for off-line training
The portal may have an area for the
divulgation of recommended opportunities
for training offered by third parties.
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III – Training of Personnel (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Create a more efficient job market
The portal may become a reference centre for work opportunities.
The liquidity and the “oxygenation” of the market are increased.
Elements of confidentiality must be introduced in order to assure the adherence of the companies.
Promote greater use of information technology and Internet tools
The very opportunity to utilize the portal may become an important incentive for a more intense use of IT
Courses in IT are ideal for training via the Internet.
Special conditions for acquiring computers could be offered to participating small businesses.
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IV – Business Generation (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote opportunities for business between companies
Mechanisms so that companies may promote their commercial interests and find partners within and outside the cluster is quite interesting.
The promotion of the formation of temporary and/or permanent consortia may be facilitated by e-project tools.
Promote local companies globally
The portal may help to divulge the products and services of the cluster and also for the quick localization of and contact with the companies.
If translated to the English language, the portal could serve as an excellent marketing tool and help develop
international business.
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IV – Business Generation (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote electronic trading
Tools which permit the rapid
configuration of e-business may be made
available on the portal.
The tools may be pre-negotiated and
adapted to meet the needs of the
productive chain.
Auction-like electronic markets may also
be established.
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V – Promotion of Innovation
OBJECTIVES OF THE PORTAL MOTIVATION
Promote success stories The portal may be utilized to describe success stories among cluster companies. These kinds of stories are known to incite innovative behaviour.
Disseminate technical norms
The faster diffusion of technical norms has a positive impact on the productive quality.
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VI – Optimization of Resources
OBJECTIVES OF THE PORTAL MOTIVATION
Map and optimize the utilization of the productive resources of the productive chain
Just as multinationals do it internally, the
industry portal may enable associated
companies to “rent” some of their idle
resources.
A market may also be created for trading
competencies and intellectual capacity.
Provide common services to all the companies
The portal may be utilized to automate
the providing of electronic services (e.g.,
travel reservations, accounting, etc.).
page 41www.terraforum.com.br
STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
page 42www.terraforum.com.br
The Context (1)
Association of Research Institutes (ABIPTI)
125 member organizations
Lobbying
Benchmarking
Training
Publications
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Location of
participating
organizations
Distance:
Approximately
2,500 miles
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The Context (2)
15 Research Institutes are selected (best
managed & top performers)
From small (300 researchers) to large
organizations (3000 researchers)
From very focused (e.g. agriculture, oil, nuclear)
to very diversified research institutes
From private foundations (few) to government-
owned (States and Federal)
page 45www.terraforum.com.br
STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
page 46www.terraforum.com.br
The Project (1)
The Goal: Bring KM
concepts and practice to 15
selected Research Institutes
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The Project (2)
A Knowledge Portal was developed with key functionalities
to support the development of Communities of Practice:
Knowledge Bases;
Members’ Directory;
Content and Document Management;
Advanced Search;
Events Management;
Alert and Subscription Tools, Forums, Personalization, etc).
page 48www.terraforum.com.br
The Project (3)
The initial focus on the development of Communities
of Practice across all organizations aimed at rapidly
achieving tangible results and, therefore, also
fostering the development of KM initiatives within
each one of the fifteen research institutes. An
important consideration in the choice of Communities
of Practice was the fact that these institutes had very
different technological capabilities and interests.
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Generic Domains related to the management skills and techniques of research institutes
Management of Intellectual Property;
Quality Management;
Technology Forecasting and Monitoring;
Client Relationship Management (CRM);
Scientific Domains that may involve a number of institutes but not all of them
Environment;
Design;
Chemistry;
Food quality.
National themes domains defined by the Federal Government’s Industrial Policies
Support to Exports;
Support to Small and Medium Enterprises.
Possible Domains for the Communities of Practice
The Project (4)
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Selection of CoPs to get started…
The Project (5)
Three CoPs were selected: Management & Commercialization of Intellectual Property
and Quality Management, and “Geological Risks”. These topics were chosen for the
following reasons:
There was enough critical mass both in terms of available digital content, as
well as interested and qualified personnel;
They are well-defined domains and are non-proprietary in nature;
They are topics that can engage and motivate wide participation;
They are strategic topics with a wide gap between the top and bottom
performers;
A core group that had a sense of a Community were identified;
A few experts that could help with valuable initial content were also identified;
These are topics that are directly related to the services provided to the clients
of these research institutes;
These communities can rapidly expand to include personnel from other types of
organizations (industry, government and universities, etc).
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…and now…
…understanding a bit of the
phases of the project
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The Project (6)
Training
in KM
Project
Plan
Seek
Support
Foster
CoPs
Roll-out
Portal
200
researchers
were trained
throughout
Brazil
Develop a
strategy:
CoPs are
chosen
Develop
horizontal
and focused
CoPs
Choose
Technology
platform
Get CEOs
to meet and
discuss KM
Show
Benchmarks
Show
prototype
Face-to-
face meeting
Invite
experts
Hire
dedicated
moderators
Use free
web-base tool
Start with
good content
Launch
event
Train users
page 53www.terraforum.com.br
STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
page 54www.terraforum.com.br
Early Results
KM goals are fairly well-understood at senior
management levels
Greater understanding of skills, competencies and
methods used by different Institutes in the domains
supported by CoPs
Some tips, ideas, and documents have been exchanged
A core group of researchers that have embraced CoPs
and KM
Demand for building many other CoPs
page 55www.terraforum.com.br
STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
page 56www.terraforum.com.br
Lessons Learned
Do not underestimate the need for fostering social
contact – (Latin culture???)
Definition of a domain and then taxonomy is critical
Find leaders and “cool people”!!
Technology is not that important…changing mindset
is huge!
Attention to IT skills of involved personnel
Use a PULL strategy…not a PUSH strategy
Attention to the ENERGY!!
page 57www.terraforum.com.br
STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
page 58www.terraforum.com.br
Final Considerations (1)
Just as is the case when applying portals to
Knowledge Management in large privately-
owned companies, the main challenge is not
technological. There are several strategic,
operational and organizational elements that
are critical to the success of such initiatives.
page 59www.terraforum.com.br
Final Considerations (2)
The initiative described here is significant in its ambition.
Its success may have a profound impact on how Brazil
integrates the considerable amount of knowledge that is
available in this very large country, but that is currently
very much dispersed. Geographical isolation is no longer a
viable option for any organization or even country.
Individuals and organizations now seek information and
knowledge regardless of their location.
page 60www.terraforum.com.br
Final Considerations (3)
These kinds of initiatives are of particular importance to
developing countries. Such countries do not have the
resources of most multinationals that are developing their
own internal knowledge portals and leveraging knowledge
from all over the world. The route for inter-organizational
collaboration through knowledge portals is not an easy
route, but one that is very promising. Indeed, it is probably
a necessity to compete in the Knowledge Era.
page 61www.terraforum.com.br
Thank You!Dr. José Cláudio Terra
www.terraforum.com.br