Monday, February 4, 2008

KNOWLEDGE CREATION

There is a famous advertisement of TISCO, highlighting, the entire social /educational /health related services that TISCO engages into, as their SOCIAL obligation.
Then the advertisement announces,” WE ALSO MAKE STEEL”
On similar lines, one may mention that, although most of the business organizations engage themselves in the activity of providing goods and services; that may seem to be an incidental activity.
They in effect, are primarily engaging themselves in the process of creation of new knowledge.
In the course of running a business; one interacts with the customers, vendors and general environment around. This activity generates unknowingly considerable new knowledge in the related fields.
For example if one is engaged in the process of manufacturing vehicles, the total focus is on understanding the needs of the customer. These
rapidly changing; expressed and latent needs ;are, kept in sharp focus by the marketing, design, production, quality, service; departments.
The classic example could be that of Euro II compliant vehicles. Whoever would have thought of pollution, as a prime vehicle-consumer concern, just ten years back? Today there are several new vehicle versions, electric, hybrid, fuel cell. Toyota, have commercially produced a car termed GREEN car, which is having pure, water vapors at the exhaust end. Zero pollution.
CFC free refrigerators could be another example.
In an attempt to meet the changing customer needs, new expertise gets developed.
In our country there is a large demand for IC engines for use as prime movers for fishing boats. Earlier on the diesel engines of 1250 rpm were used routinely for the purpose. These used to be heavy and bulky. Thereafter, the lighter version aluminum body, engines came into the market.
The fishermen promptly bought these. The advantage was that the fishermen could haul a larger catch to the shore, to the extent of the difference in weight, of the bulky steel bodied engines. It was faster too.
These however were of higher rpm, i.e. 4500. Later they found that the new engine was noisier. The fish would get shooed away, by the racket, the engine created.
This for some time gave a set back to embracing the modern technology. To get over this problem, a new device was invented which could dampen the noise, and the popularity of the newer version was restored.

PRESENT CONTEXT

In the times bygone also, there were numerous inventions, which have taken place continuously. The spread of radio took about 38 years to reach homes. The present global market context demands the changes to be leaping ones not incremental, and slow. The reach is boundary less, and speeds phenomenal. The rapid and sweeping growth of wireless telephony and Internet would be a case in point.
This process of generation of new knowledge is an important activity, which has to be encouraged consciously by the management.
After all, you are in the business to create a customer, for your product. By innovation, creativity, one captivates and keeps him, bound to one's brand.
During this process, one develops considerable specializations, in the related area. The expertise is enriched constantly, which generates new knowledge.
KNOWLEDGE CREATION.
Knowledge is the capacity for an effective action.
Knowledge is of two types. One is termed explicit and the other is implicit.
Explicit knowledge is a verbalized one, which is available in periodicals, scientific papers, books, with experts, on films, videos etc. Since it is expressed in words, it is available to whoever wishes to acquire it.
There is a tremendous amount of non-verbalized, knowledge, residing, in the minds of several individuals in a company, they know it, but it is not expressed in words. Management’s task is to convert the tacit knowledge into explicit, one. It is institutionalized later, for future use.
This is achieved through a conscious effort of socialization, termed as communities of practice. Getting likeminded persons together over informal meetings, gatherings etc followed by combining, of some innovative processes. Post verbalizing of these pieces of knowledge, internalizing these or embedding the same into the systems and procedures of the company is the next task. The new knowledge has to be an integral part of the organizational culture.

“BAA”; A CONDUCIVE ATMOSPHERE FOR KNOWLEDGE CREATION.

Once, a business executive from States was traveling in the Bullet train in Japan. On boarding the train, the American immediately commenced working on his laptop, no sooner he found a place to sit. The local Japanese, accompanying the visitor stopped him at once. He requested him to switch off the laptop,“You are disturbing the “BAA”.” He requested in a soft voice.BAA was enough of an explanation offered. The act of impudence; which normally no Jap would have resorted to; to stop his American visitor from operating the laptop, in the Bullet train.

BAA is a specific word in Japanese for an environment where innovative processes are encouraged.
BAA is a place or an environment where tranquility and peace, reigns naturally. Such an atmosphere is to be nurtured and maintained by business organizations to ensure that new ideas sprout forth freely, in it.
OVER HERE
One of the respected names, in pharmaceuticals sector, in our country, Lupin Laboratories, has opened up a RESEARCH center in Pune. It is in a rural setting, away from the hubbub of the urban complexity. Only research scientists work in here, a perfect example of BAA, where NEW knowledge is created, and no manufacturing activity; is planned.
One of the large business houses in Pune also took their corporate office, away from their factory. The idea was that the top management could have the right atmosphere, for new ideation, which may get disturbed by the routine rote, of the cookie-cutter manufacturing activity.
Now a days the company is not a workshop where only goods and services are produced. It is also a place where an environment is created and maintained, to generate new knowledge. The creation and commercial use of new knowledge is the key resource for generation of wealth, in the present context.

M.S.RANADE.
mranade@vsnl.com
PUBLISHED IN INDIAN EXPRESS PUNE, ON THURSDAY 14TH AUGUST, 03

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