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www.akwissensbilanz.org © 2012 alwert & Fraunhofer Academy, 1 SEPT SMALL ENTERPRISE PROMOTION + TRAINING Management in an Increasingly Knowledge-Based Economy _____________________________ Dr.-Ing. Kay Alwert alwert GmbH & Co. KG [email protected] _____________________________ adress. Dunckerstraße 27 zip/place. 10439 Berlin telefon. +49 (0) 30 / 201 44 538 telefax. +49 (0) 30 / 447 33 102 mobile. +49 (0) 170 / 47 55 805 e-mail. [email protected] web. www.alwert.com / www.wissensbilanz.net

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Page 1: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

www.akwissensbilanz.org

© 2012 alwert & Fraunhofer Academy, 1

SEPT SMALL ENTERPRISE PROMOTION + TRAINING

Management in an Increasingly Knowledge-Based Economy

_____________________________ Dr.-Ing. Kay Alwert alwert GmbH & Co. KG [email protected] _____________________________ adress. Dunckerstraße 27 zip/place. 10439 Berlin telefon. +49 (0) 30 / 201 44 538 telefax. +49 (0) 30 / 447 33 102 mobile. +49 (0) 170 / 47 55 805 e-mail. [email protected] web. www.alwert.com / www.wissensbilanz.net

Page 2: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 2

Agenda

1. “What the hell do you mean when you talk

about knowledge”?

2. Some aspects of a Knowledge-Based Economy

3. Management in a knowledge-based economy

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© 2012 alwert & Fraunhofer Academy, 3

“What the hell do you mean when you talk about knowledge”?

“The biggest mistake you can make when you are introducing knowledge management is to start a discussion about the definition of knowledge…” (Peter Heisig, Cambridge)

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© 2012 alwert & Fraunhofer Academy, 4

“What the hell do you mean when you talk about knowledge”?

The bad message… • There is no commonly accepted definition about knowledge

• Even the most known definition about knowledge as “true justified belief” which goes back to Plato (s. Theaitetos) concludes, that defining knowledge is unsatisfying because at the end you always have more questions than answers.

• Since than mankind has produced a vast amount of literature about knowledge from multiple disciplines and perspectives, which made it even worse.

• There are a lot of controversial questions e.g.: can only people have knowledge? What is truth? Does knowledge only exist in language? Are information and knowledge synonyms? Is implicit knowledge knowledge? Etc.

Page 5: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 5

“What the hell do you mean when you talk about knowledge”?

The good message… There are some aspects which always come around in most of the scientific

definition trials and are a good starting point to describe knowledge:

• Knowledge is a precondition for action and communication.

• There are at least two kinds of knowledge: know-how, which seems to be similar to competence and know-that, which is about true facts.

• Knowledge has a social component, which is responsible for its verification.

• Knowledge is intangible but somehow tied to a carrier (knower).

• Knowledge is created through processes like cognition, learning, interconnecting and has to do with the generation of structure/ models.

• The value of knowledge is highly context-sensitive …

Page 6: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

www.akwissensbilanz.org

© 2012 alwert & Fraunhofer Academy, 6

“What the hell do you mean when you talk about knowledge”?

The best message…

Even without a definition of knowledge, we have produced an enormous and increasingly growing amount of knowledge, which enables us to produce stunning technologies…

Somehow we have managed to organise all this without a commonly accepted definition.

Page 7: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

www.akwissensbilanz.org

© 2012 alwert & Fraunhofer Academy, 7

Agenda

1. “What the hell do you mean when you talk

about knowledge”?

2. Some aspects of a Knowledge-Based Economy

3. Management in a knowledge-based economy

Page 8: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

www.akwissensbilanz.org

© 2012 alwert & Fraunhofer Academy, 8

Some indicators about the importance of knowledge in society and economics

Source: Rollwagen & Voigt (2012): Mehr Wertschöpfung durch Wissen(swerte) - Folgen für regionale Wachstumsstrategien DB Research 2012

- Globally more than 5 Mio Researchers in 2008

- In 2008 more than 1,000 Billion USD Investments in R&D

- In 2008 nearly 1 Mio scientific publications

- In Japan, US, GB, Germany: ca. 4 – 5tsd Researchers per Mio inhabitants.

- 30 Mio Students in China in 2010, followed by 20 Mio US students.

- Number of valid patens is constantly rising. In 2010 4 Mio valid patents hold only by 3 countries (Korea, US, Japan)

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© 2012 alwert & Fraunhofer Academy, 9

New ways to work… New challenges… New pathways to value.

- Increasing knowledge intensity of products due to technological advance: nearly no single

person can understand an entire product (e.g. cars, computers, smart phones etc. …)

- New knowledge transfer mechanisms (e.g. Stanford internet lectures, youtube lectures from

nearly experts, forums, free flow of explicit knowledge, cross-licensing, scrum, extreme

programming, cloud cooperations, interims management etc.)

- Crowdsourcing (e.g. beta-testing, wikipedia, app-markets, programming libraries, crowdfunding)

- Open innovation (e.g. collaborative science, spin-offs, rapid exchange of employees, serial

entrepreneurs, copy cats, knowledge clusters)

How does theses developments affect me and my company?

Page 10: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 10

The value and values of an organisation in a knowledge-based Economy

Microsoft Corporation 1978

Would you have invested?

Page 11: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 11

There is a huge tacit part

Quelle wikipedia

We normally don‘t see…

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© 2012 alwert & Fraunhofer Academy, 12

wow!

Success Human Capital

§

Structural Capital

$

Relational Capital

Sales

production

R&D

Business Processes

What are the tacit assets of an organization…. And why is the Management of the Intellectual Capital so Difficult?

Page 13: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 13

Why is the Management of the Intellectual Capital so Difficult?

wow

SuccessHuman Capital

§

Structural Capital

$

Relational Capital

Sales

production

R&D

BusinessProcesses

wow

Success

wow

SuccessHuman CapitalHuman Capital

§

Structural Capital

§

Structural Capital

§

Structural Capital

§

Structural Capital

$

Relational Capital

$$

Relational Capital

Sales

production

R&D

BusinessProcesses

Sales

production

R&D

BusinessProcesses

Page 14: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 14

But this is far not the end of the complexity….

Page 15: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 15

Agenda

1. “What the hell do you mean when you talk

about knowledge”?

2. Some aspects of a Knowledge-Based Economy

3. Management in a knowledge-based economy

Page 16: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 16

Two Perspectives in Knowledge Management Two combined SME-instruments

Deriving Actions

Measuring Success

ICS

Stra

tegi

c Pe

rspe

ctiv

e O

perational Perspective

KM

Page 17: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

www.akwissensbilanz.org

© 2012 alwert & Fraunhofer Academy, 17

Two Perspectives in Knowledge Management Two combined SME-instruments

Deriving Actions

Measuring Success

ICS

Stra

tegi

c Pe

rspe

ctiv

e O

perational Perspective

KM

Page 18: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 18

Structural Model for Knowledge Management

Business Environment (Possibilities & Risks)

Organisation

Business Processes Measures Strategy Vision Business Success

Other Resources

Initial Situation

Knowledge Processes

Human Capital

Structural Capital

Relational Capital

Intellectual Capital

External Impact

Page 19: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 19

Make the tacit part visible by an impact analyses

Structural Capital

Human Capital

Business Strategy and Processes Relational

Capital Production Sales R&D

Customer

Cooperations

Page 20: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 20

Analyse the Quantity, Quality and Systematic in Managing your Intellectual Capital (QQS Assessment)

Product innovation

New products in developement

Evaluation scale: 0% = not sufficient 30% = partly sufficient 60% = mostly sufficient 90% = always sufficient 120% = better than necessary

„Do we have enough product innovations according to the strategic requirements?“

„Are the product innovations good enough according to the strategic requirements?“

„How systematic is our product innovation process? “

Main Arguments

Main Arguments

Main Arguments

Page 21: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 21

Representatives of the organisational knowledge identify and evaluate the Intellectual Capital – towards collective leadership…

Page 22: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

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© 2012 alwert & Fraunhofer Academy, 22

Prioritize the fields of intervention

IC Management Portfolio QQS Assessment

Impact Analysis

Relational Capital

Production Sales R&D

Customer

Cooperations

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© 2012 alwert & Fraunhofer Academy, 23

Relational Capital

Production Sales R&D

Customer

Cooperations

Secure a systematic learning process by solutions which support a closed circle of knowledge activities

Generate knowledge Use knowledge

Distribute knowledge

Store knowledge

Quelle: Heisig, P.: Integration von Wissensmanagement in Geschäftsprozesse. Dissertation, Hrsg. Dr.-Ing. Kai Mertins. Berlin: Produktionstechnisches Zentrum 2005.

Page 24: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

www.akwissensbilanz.org

© 2012 alwert & Fraunhofer Academy, 24

Two Perspectives in Knowledge Management Two combined SME-instruments

Deriving Actions

Measuring Success

ICS

Stra

tegi

c Pe

rspe

ctiv

e O

perational Perspective

KM

Page 25: Management in an Increasingly Knowledge-Based Economy · • Knowledge is . a precondition for action and communication. • There are at least two kinds of knowledge: know-how, which

www.akwissensbilanz.org

© 2012 alwert & Fraunhofer Academy, 25

Management in an Increasingly Knowledge-Based Economy

“There is a theory which states that if ever anybody discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable.

There is another theory which states that this has already happened.”

Douglas Adams

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© 2012 alwert & Fraunhofer Academy, 26

•_____________________________

•Dr.-Ing. Kay Alwert •_____________________________ •adress. Dunckerstraße 27 zip/place. 10439 Berlin telefon. +49 (0) 30 / 201 44 538 telefax. +49 (0) 30 / 447 33 102 mobile. +49 (0) 170 / 47 55 805 e-mail. [email protected] web. www.alwert.com / www.wissensbilanz.net

Fragen und Antworten

Wissensbilanzen für mittelständische Organisationen Alwert, Kay: Dissertationsschrift IRB Verlag 2005 Wissensbilanzen Intellektuelles Kapital erfolgreich nutzen und entwickeln Hrsg.: Mertins, Alwert, Heisig Beiträge von über 20 namhaften Experten!

www.bmwi.bund.de

www.akwissensbilanz.org

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© 2012 alwert & Fraunhofer Academy, 27

Derive KM Actions which close the KM cycle

0,25Y – 1Y

1Y – 2Y

0,25Y – 1Y

1Y – 2Y

0,25Y – 1Y

0,25Y – 1Y

1Y – 2Y

>2Y

1. Product process

8. Co-operation/

knowledge transfer

10. Product

innovation

12. Customer relations

27. Financial results

28. Image/brand

5. Employee motivaion/leadership

Use ideas to develop new products

Idea development in interdisciplinary teams

Communicate knowledge about Innovation to the

customer

Measure success of new products

- Image as an „Innovator“ by Customer survey

Transfer knowledge about new product between

development and production

Measure success of innovation process

- Sales share of new products - Profitability of new products

Transfer knowledge about Requirements to

idea team