Operations

Management
Nofie Iman
 • Introduction
• The importance of operations
• Organizational function
• Role of productions in global economy

Contents
• Production vs. operations
• Ten strategic operations decisions
• Characteristics goods vs. service
• Productivity challenge
• Division of labor
• Contemporary issues in operations
Blind monks
examining
an elephant,
an ukiyo-e
print by
Hanabusa
Itchō (1652–
1724).
Why Study Operations Management?
• Operations management is one of three major functions (marketing,
finance, and operations) of any organization
• To know how goods and services are produced/delivered
• To understand what operations managers do
• Operations management is a costly part of an organization
• Operations management presents interesting career opportunities e.g.,
supply chain management (SCM), quality assurance (QA), process re-
engineering, etc
Costs of Quality
• Prevention costs - reducing
the potential for defects
• Appraisal costs - evaluating
products, parts, and services
• Internal failure costs -
producing defective parts or
service before delivery
• External failure costs - defects
discovered after delivery
Main Organizational Functions

Marketing Operations Finance/

Accounting

gets customers creates obtains funds &

product or tracks money
service
 Manufacturing

Finance/
Marketing Operations
Accounting

Production Quality
Manufacturing Purchasing
Control Control
 Commercial Bank

Finance/
Marketing Operations
Accounting

Teller Check Transactions

Security
Scheduling Clearing Processing
 Airlines

Finance/
Marketing Operations
Accounting

Flight Ground Facility

Catering
Operations Support Maintenance
Production
is the creation of goods and services

Operations
is managing the set of activities
that creates value in the form
of goods and services by
transforming inputs into
outputs

Applies to both manufacturing and

service organizations
Operations and Transformation
Most products are a “bundle”
of goods and services
 Automobile
Computer
Installed Carpeting
Fast-food Meal
Restaurant Meal
Auto Repair
Hospital Care
Advertising Agency
Investment Management
Consulting Service
Counseling

100 75 50 25 0 25 50 75 100
Percent of Product that is a Good Percent of Product that is a Service

Most products are a “bundle”

of goods and services
Without Operations Management
• A normal queue at a bank would take 1 to 2 hours
• A 3 hours ferry crossing could require 9 hours, if not several days
• The Eurostar would take 15 hours to go from London to Paris
• Mail would rarely be delivered

Unless we could totally revise our every day’s perceptions of time and
performance, we could not live in such a world
 Strategies That Win Customers
Strategy for Attracting What the Company Does to Implement Its
Company
Customers Strategy
Toyota Quality Cars perform reliably, have an appealing fit and finish,
and consistently meet or exceed customer
expectations at a competitive price
Save-A-Lot Low cost Foods and everyday items offered at savings up to 40
percent less than conventional food chains

3M Flexibility Innovation, with more than 55,000 products in a

constantly changing line of convenience items for
home and office
FedEx Dependability Every delivery is fast and on time, as promised

Source: Ebert, R.J., Griffin, R. W. Business Essentials, 12th ed. (Pearson Education Ltd. 2019).
 Strategies for Competitive Advantage
• Differentiation – better, or at least different
• Cost leadership – cheaper
• Response – more responsive

Source: Heizer, J., Render, B., Munson, C. Operations Management, 13th ed. (Pearson Education Ltd. 2020).
 Strategies for Competitive Advantage
• Differentiation – better, or at least
•
different
Uniqueness can go beyond both the physical
• Cost leadership – cheaper characteristics and service attributes to encompass
everything that impacts customer's perception of
• Response – more responsive value
• Walt Disney Magic Kingdom – experience
differentiation
• Hard Rock Cafe – dining experience
• Engaging a customer with a product through
imaginative use of the five senses, so the customer
“experiences” the product
• Theme parks use sight, sound, smell, and participation
• Movie theatres use sight, sound, moving seats, smells,
and mists of rain
• Restaurants use music, smell, and open kitchens

Source: Heizer, J., Render, B., Munson, C. Operations Management, 13th ed. (Pearson Education Ltd. 2020).
 Strategies for Competitive Advantage
• Differentiation – better, or at least different
• Cost leadership – cheaper
• Response – more responsive • Provide the maximum value as perceived by
customer. Does not imply low quality.
• Southwest Airlines – secondary airports,
no frills service, efficient utilization of
equipment
• Walmart – small overhead, shrinkage,
and distribution costs

Source: Heizer, J., Render, B., Munson, C. Operations Management, 13th ed. (Pearson Education Ltd. 2020).
 Strategies for Competitive Advantage
• Differentiation – better, or at least different
• Cost leadership – cheaper
• Response – more responsive • Flexibility is matching market changes in
design innovation and volumes
• A way of life at Hewlett-Packard
• Reliability is meeting schedules
• German machine industry
• Quickness in design, production, and delivery
• Johnson Electric, Pizza Hut

Source: Heizer, J., Render, B., Munson, C. Operations Management, 13th ed. (Pearson Education Ltd. 2020).
Qualification Test

• Please each take a blank piece

of paper
• Draw a chicken
• Estimated time is 1 minute
• But, you have 2 minutes for
this first try
• Write your name on the
paper and hold it up
 1 2 3 4 5
A

How to draw
a chicken
B

C
1. Draw a big circle from F3 to
D5 in light yellow color
D
2. Draw a second circle from
B4 to halfway E5 and F5
3. Draw two eyes between C4 E
and D5
4. Put a mouth just below
those two eyes
5. Put three rectangular with
rounded corner as the tail
6. Do not forget to put two
feet between F4 and G5 in
orange
7. Finally, put three red crest on
top of the B circle
F

G
Process Standardization
• Fundamentally, process standardization describes the establishment of a
set of rules governing how people in an organization are supposed to
complete a given task or sequence of tasks.
• Every task — regardless of how often you do it — requires rules that
define the scope, quality, and methods to be followed. If you don’t
standardize these rules, you can’t have visibility over whether you’re
ensuring quality and reducing human error.
• Your company’s operations consist of tasks that must be completed on a
daily, weekly, monthly, or yearly basis to ensure that it runs smoothly. But
if these processes aren’t standardized, you’re inviting chaos.
• When done well, standardization can decrease ambiguity and guesswork,
guarantee quality, boost productivity, and increase employee morale.
Quality and Strategy
• Managing quality supports differentiation, low cost, and response strategies
• Quality helps firms increase sales and reduce costs
• Building a quality organization is a demanding task
Defining Quality
• Quality control is an action of ensuring that operations produce products that meet
specific quality standards (Ebert, Griffin, 2019)
• An operations manager’s objective is to build a total quality management system
that identifies and satisfies customer needs (Heizer, Render, Munson, 2020)
• Quality is the totality of features and characteristics of a product or service that
bears on its ability to satisfy stated or implied needs (American Society for Quality)
• Total quality management encompasses entire organization from supplier to
customer – it stresses a commitment by management to have a continuing
companywide drive toward excellence in all aspects of products and services that are
important to the customer
Different Views of Quality
• User based: better performance, more features
• Manufacturing based: conformance to standards, making it right the first
time
• Product based: specific and measurable attributes of the product
Implications of Quality
• Company reputation
• Perception of new products
• Employment practices
• Supplier relations
• Product liability
• Reduce risk and cost

• Global implications
• Improved ability to compete
 Operations Management as a Strategic Process

Source: Heizer, J., Render, B., Munson, C. Operations Management, 13th ed. (Pearson Education Ltd. 2020).
 Quality Service and Process/
management product design capacity design

Location Layout design

Human
resources, job
Ten
design Strategic
Supply-chain Inventory
Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design
How do we define quality?

Location Layout design

Who is responsible for
Human
quality?
resources, job
Ten
design Strategic
Supply-chain Inventory
Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design What product or service
should we offer?

Location Layout design

Human
resources, job
Ten
How should we design these
products and services?
design Strategic
Supply-chain Inventory
Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design

Location Layout design

Human
resources, job
Ten
What processes will these products
require and in what order?
design Strategic
What equipment and technology is
Supply-chain
necessary Inventory
for these processes? Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design

Location Layout design

Where should we put the
Human facility
resources, job
Ten
On what criteria should we
design Strategic
base this location decision?

Supply-chain Inventory
Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design

Location Layout design

Human
resources, job
Ten
design Strategic
How should we arrange the
facility?
Supply-chain Inventory
Scheduling
Operation
How large a facility is
required?
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design

Location Layout design

Human
resources, job
Ten
design Strategic
Supply-chain Inventory
How do we provide aScheduling
Operation
Decisions
management management
reasonable work
environment?
How much can we expect
Maintenanceto produce?
our employees
 Quality Service and Process/
management product design capacity design
Should we make or buy this item?

Ten
Who are our good suppliers and
Human
how many should we have?
Location Layout design resources, job
design Strategic
Supply-chain Inventory
Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design
How much inventory of each

Location Layout design

Human
When
resources,
Ten
item should we have?
job do we re-order?
design Strategic
Supply-chain Inventory
Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design Is subcontracting production
a good idea?

Location Layout design

Human
resources, job
Ten
Are we better off keeping
people on the payroll during
design Strategic
slowdowns?

Supply-chain Inventory
Scheduling
Operation
Decisions
management management

Maintenance
 Quality Service and Process/
management product design capacity design

Location Layout design

Human
resources, job
Ten
Who is responsible
design
maintenance?
for
Strategic
Supply-chain Inventory
When do we do
Scheduling
maintenance?
Operation
Decisions
management management

Maintenance
Characteristics of goods

Tangible product

Production usually separate from

consumption

Consistent product definition

Low customer interaction

Can be inventoried
Characteristics of service
Intangible product (intangibility)

Produced & consumed at same time

(simultaneity)
Inconsistent product definition
(heterogeneity)

High customer interaction

Often unique

Often knowledge-based

Frequently dispersed
Productivity
• Productivity is the amount of output produced compared with the
amount of resources used to produce that output
• Measure of process improvement
• Represents ratio of output to input

Productivity Units produced

= Input used

• Only through productivity increases can our standard of living improve

Measurement Problems
• Quality may change while the quantity of inputs and outputs remains
constant
• External elements may cause an increase or decrease in productivity
• Precise units of measure may be lacking
Division of Labor
Division of Labor
• “The greatest improvement in the productive powers of labour,
and the greater part of the skill, dexterity, and judgment with
which it is anywhere directed, or applied, seem to have been the
effects of the division of labour.”
• “the important business of making a pin is, in this manner, divided
into about eighteen distinct operations, which, in some
manufactories, are all performed by distinct hands, though in
others the same man will sometimes perform two or three of
them.”
• Adam Smith calculated that 10 workers, who working alone could
make between 1 and 20 pins each per day, could collectively
make 48,000 pins in a day through the division of labour – a
massive increase in efficiency and productivity.
Division of Labor
• The objective is to specialize jobs by reducing them to their
most elementary tasks
• Results from the simultaneous application of two principles
• horizontal division of labor (Smith, Babbage)
• vertical division of labor (Taylor, introduction of
management science; Gilbreth, time and motion studies)
• The vertical division of labor implies:
• A design and planning activity
• A control activity
• A co-ordination role for operations management
 International
Division of
Labor

Source: From Joseph E. Stiglitz, Principles of Micro-economics, 2nd ed.

(New York: W.W. Norton and Company, 1997), p. 58.
Contemporary Issues

• Shift in balance of power to consumers

• Achieving higher levels of productivity
• Creating higher quality products
• Delivering better customer service
• Achieving shorter delivery times
• Reducing labor and material costs
• Globalization of business and markets
• E-commerce
• From a primary sector to a secondary sector economy
• From a manufacturing to a service economy
• E-service economy
• Case of developing economies: can we leap-frog the manufacturing stage?
• Post-covid economic recovery and supply chain
Thank you
See you anytime soon
Technological Innovation
Nofie Iman
1.Lack of Innovation: Nokia failed to keep up with the rapid pace of technological
advancements in the smartphone era. While competitors like Apple’s iPhone and
devices running Google’s Android operating system introduced revolutionary
touchscreen interfaces, app ecosystems, and multimedia capabilities, Nokia struggled
to innovate at the same pace.
2.Failure to Embrace Smartphones: Nokia was slow to recognize the growing
importance of smartphones and the shift in consumer preferences towards these
devices. Nokia continued to focus on its traditional strengths in feature phones and
resisted transitioning to smartphones until it was too late. By the time Nokia
introduced its Lumia series of smartphones running Microsoft’s Windows Phone
operating system, it had already lost significant ground to competitors like Apple and
Samsung.
3.Strategic Missteps: Nokia made several strategic missteps that further exacerbated
its decline. For instance, the decision to adopt Microsoft’s Windows Phone as its
primary smartphone platform instead of developing its own operating system or
adopting Android limited its ability to differentiate its products and compete effectively
in the market. Additionally, Nokia’s acquisition of Siemens’ stake in the Nokia Siemens
Networks joint venture in 2013 and subsequent sale of its devices and services division
to Microsoft in 2014 represented significant strategic shifts that failed to yield the
desired results.
4.Competition and Market Dynamics: Nokia faced intense competition from rivals
like Apple, Samsung, and Chinese smartphone manufacturers offering high-quality
devices at competitive prices. Moreover, changes in consumer preferences, such as
the growing demand for larger screens, better cameras, and longer battery life, posed
additional challenges for Nokia in meeting evolving market expectations.
5.Organizational Challenges: Nokia’s organizational structure and culture also
hindered its ability to adapt to changing market conditions and execute effective
strategies. The company faced internal challenges related to bureaucracy, decision-
making processes, and cultural resistance to change, which impeded innovation and
agility. Additionally, leadership changes and restructuring efforts failed to address
underlying issues within the organization, further contributing to Nokia’s decline.
Innovation as Creative
Destruction
• “Innovation would destroy existing technologies
and methods of production by newer and more
efficient products.”
• Digital economy’s discontinuity, uncertainty
• Telephone line » optical networks » wireless »
the Internet protocol platforms
• Mergers, acquisitions, investment and
disinvestment worldwide
• Social and political restructuring
Production Revolution
• New production systems—3D printers and robotics
are the beginning of new production systems:
‒ Speed and cost of production, including quality
control, drop substantially as every
manufactured products will be networked with
sensors
‒ Information technology enables production
breakthrough
• Smart materials are next step
• Replacing plastics with metal oxides in 3D
printers
• Sensors embedded in materials
Smart Materials

• Sensing materials and devices

• Actuation materials and devices
• Control devices and techniques
• Self-detection, self-diagnostic
• Self-corrective, self-controlled,
self-healing
• Shock-absorbers, damage arrest
Even Large-Scale
Production Will
Change

• Large scale production still

requires complex engineering and
high levels of quality assurance
and reliability
• But even this is changing quickly
 Tesla Auto Factory

Robotics, new tech, materials, new business

model reduced time from first design to product
from the traditional 5 years to 2 years
 Innovation Management
"Innovation management is a process which requires an
understanding of both market and technical problems,
with a goal of successfully implementing appropriate
creative ideas.
A new or improved product, service or process is its
typical output.
It also allows a consortium to respond to an external or
internal opportunity."
"Whoever
desires constant
success must
change his
conduct with the
times."
Honda and Hybrid Electric Vehicles
• Honda introduced its first hybrid electric vehicle
(HEV) in Japan in 1997.
• HEVs have increased fuel efficiency and decreased
emissions
• HEVs do not have to be plugged into an electrical
outlet
• Honda chose a different hybrid engine design
than Toyota and chose not to collaborate or
license its technology to others.
• Toyota, which engaged in both collaboration and
licensing, sold far more HEVs.
• Honda was also developing cars based on fuel
cells, clean diesel, and natural gas.
Honda and Hybrid Electric Vehicles
1. Are hybrid electrical vehicles a radical innovation or an incremental innovation?
Are they competence enhancing or competence destroying, and from whose
perspective? How would you answer these questions for fuel-cell vehicles?
2. What factors do you think will influence the rate at which hybrid electric vehicles
are adopted by consumers?
3. What would be the advantages or disadvantages of Honda and Toyota using the
same engine standard?
4. Is Honda’s strategy of producing a different engine standard than Toyota and not
collaborating or licensing to other automakers a good one? What would you
recommend?
5. Why do you think Honda simultaneously developed hybrids, diesel, natural gas,
and fuel cell cars? Should Honda pick one upon which to focus its efforts or is it
important for Honda to pursue synergies (and preserve its options) by developing
and promoting multiple technologies?
Overview of Innovations
• Several dimensions are used to categorize innovations.
• These dimensions help clarify how different innovations offer different
opportunities (and pose different demands) on producers, users, and
regulators.
• The path a technology follows through time is termed its
technology trajectory.
• Many consistent patterns have been observed in technology trajectories,
helping us understand how technologies improve and are diffused.
Types of Innovation
• Product versus Process Innovation
• Product innovations are embodied in the outputs of an organization – its
goods or services.
• Process innovations are innovations in the way an organization conducts
its business, such as in techniques of producing or marketing goods or
services.
• Product innovations can enable process innovations and vice versa.
• What is a product innovation for one organization might be a process
innovation for another
• E.g., UPS creates a new distribution service (product innovation) that enables its
customers to distribute their goods more widely or more easily (process innovation)
Types of Innovation
• Radical versus Incremental Innovation
• The radicalness of an innovation is the degree to which it is new and
different from previously existing products and processes.
• Incremental innovations may involve only a minor change from (or
adjustment to) existing practices.
• The radicalness of an innovation is relative; it may change over time or
with respect to different observers.
• E.g., digital photography are more radical innovation for Kodak than for Sony.
Types of Innovation
• Competence-Enhancing versus Competence-Destroying
Innovation
• Competence-enhancing innovations build on the firm’s existing
knowledge base
• E.g., Intel’s Pentium 4 built on the technology for Pentium III.
• Competence-destroying innovations renders a firm’s existing
competencies obsolete.
• E.g., electronic calculators rendered Keuffel & Esser’s slide rule expertise obsolete.
• Whether an innovation is competence enhancing or competence
destroying depends on the perspective of a particular firm.
Types of Innovation
• Architectural versus Component Innovation
• A component innovation (or modular innovation) entails changes to one
or more components of a product system without significantly affecting
the overall design.
• E.g., adding gel-filled material to a bicycle seat
• An architectural innovation entails changing the overall design of the
system, or the way components interact.
• E.g., transition from high-wheel bicycle to safety bicycle.
• Most architectural innovations require changes in the underlying
components also.
Technology S-Curves
• Both the rate of a technology’s improvement, and its rate of
diffusion to the market typically follow an s-shaped curve.
• S-curves in Technological Improvement

Technology improves slowly at

first because it is poorly
understood.
Then accelerates as
understanding increases.
Then tapers off as approaches
limits.
Technology S-Curves
• Technologies do not always get to reach their limits
• May be displaced by new, discontinuous technology.
• A discontinuous technology fulfils a similar market need by means of an entirely new
knowledge base.
• E.g., switch from carbon copying to photocopying, or vinyl records to compact discs
• Technological discontinuity may initially have lower performance than incumbent
technology.
• E.g., first automobiles were much slower than horse-drawn carriages.
• Firms may be reluctant to adopt new technology because performance
improvement is initially slow and costly, and they may have significant
investment in incumbent technology
Technology S-Curves
• S-Curves in Technology Diffusion
• Adoption is initially slow because the technology is unfamiliar.
• It accelerates as technology becomes better understood.
• Eventually market is saturated and rate of new adoptions declines.
• Technology diffusion tends to take far longer than information diffusion.
• Technology may require acquiring complex knowledge or experience.
• Technology may require complementary resources to make it valuable (e.g.,
cameras not valuable without film).
Technology S-Curves
• S-Curves as a Prescriptive Tool
• Managers can use data on investment and performance of their own
technologies or data on overall industry investment and technology
performance to map s-curve.
• While mapping the technology’s s-curve is useful for gaining a deeper
understanding of its rate of improvement or limits, its use as a prescriptive
tool is limited.
• True limits of technology may be unknown
• Shape of s-curve can be influenced by changes in the market, component
technologies, or complementary technologies.
• Firms that follow s-curve model too closely could end up switching technologies
too soon or too late.
Technology S-Curves
• S-curves of diffusion are in part a function of s-curves in
technology improvement
• Learning curve leads to price drops, which accelerate diffusion

Average Sales Prices of Consum er Electronics Penetration of Consum er Electronics

$1,000 100.00%
90.00%

Percent of U.S. Households

$800 80.00%
70.00%
$600 60.00%
50.00%
$400 40.00%
30.00%
$200 20.00%
10.00%
$0 0.00%

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80

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90

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04

19

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VCR CD Player Cell Phone VCR CD Player Cell Phone

2024 Toyota Prius
Typology of Adopters
• Innovators are the first 2.5% of individuals to adopt an innovation. They
are adventurous, comfortable with a high degree of complexity and
uncertainty, and typically have access to substantial financial resources.
• Early Adopters are the next 13.5% to adopt the innovation. They are well
integrated into their social system and have great potential for opinion
leadership. Other potential adopters look to early adopters for information
and advice, thus early adopters make excellent "missionaries" for new
products or processes.
• Early Majority are the next 34%. They adopt innovations slightly before
the average member of a social system. They are typically not opinion
leaders, but they interact frequently with their peers.
• Late Majority are the next 34%. They approach innovation with a sceptical
air and may not adopt the innovation until they feel pressure from their
peers. They may have scarce resources.
• Laggards are the last 16%. They base their decisions primarily on past
experience and possess almost no opinion leadership. They are highly
sceptical of innovations and innovators and must feel certain that a new
innovation will not fail prior to adopting it.
Diffusion of
Innovations
Disruptive Innovation
• Technologies often improve faster than customer requirements
demand
• This enables low-end technologies to eventually meet the needs
of the mass market.
Disruptive Innovation
• From 1980 to 2011, Microsoft was the dominant personal
computer operating system. However, operating systems for
smartphones and tablets were improving to the point where they
could replace many personal computer functions.
• In 2011, Apple’s iPhone operating system and Google’s Android
collectively controlled about 60% of the market for smartphone
purchases. Microsoft’s Windows Phone held a share of only 11%.
• As tablets based on these systems became fully functional
computers, would Microsoft’s dominance evaporate?
Technology Cycles
• Technological change tends to be cyclical:
• Each new s-curve ushers in an initial period of turbulence, followed by
rapid improvement, then diminishing returns, and ultimately is displaced
by a new technological discontinuity.
• Utterback and Abernathy characterized the technology cycle into two
phases:
• The fluid phase (when there is considerable uncertainty about the technology and
its market; firms experiment with different product designs in this phase)
• After a dominant design emerges, the specific phase begins (when firms focus on
incremental improvements to the design and manufacturing efficiency).
Technology Cycles
• Anderson and Tushman
(1986) also found that
technological change
proceeded cyclically.
• Each discontinuity
inaugurates a period of
turbulence and uncertainty
(era of ferment) until a
dominant design is selected,
ushering in an era of
incremental change.
Dominant design in app development?
Steer Design Thinking

DevOps
Operate Continuous Dev/Test
Feedback

Mobile

Containers Deploy
Tooling
APIs

IoT Microservices

Runtimes Extreme Agile

Cloud provides developers with instant access to the APIs, services and
infrastructure they need to launch their ideas into the present.
Technology Cycles
• Anderson and Tushman (1986) found that:
• A dominant design always rose to command the majority of market share
unless the next discontinuity arrived too early.
• The dominant design was never in the same form as the original
discontinuity but was also not on the leading edge of technology. It
bundled the features that would meet the needs of the majority of the
market.
• During the era of incremental change, firms often cease to invest
in learning about alternative designs and instead focus on
developing competencies related to the dominant design.
• This explains in part why incumbent firms may have difficulty
recognizing and reacting to a discontinuous technology.
Speeding Up Innovation
• Shrinking overhead costs and head counts reduces start-up costs
• Radical drop in cost of IT: WhatsApp has 450 million users and only 34 IT
engineers
• Non-rivalrous data use: Information derived from products can create
a collateral revenue stream
• Ads
• Using Facebook “likes” to predict behaviour
• Privacy issues
• User-co-invention: The ongoing, networked interaction of product
suppliers and users allows for a continual re-invention of the
product/business model
• Includes use of open-source software
• Users have flexibility in using product—play lists for music
Speeding Up Innovation
• Financial alternatives for funding innovation combines
experimentation and discovery model with new distribution
models:
• Crowd sourcing—traditional marketing yields to co-invention
• “The Store”—e.g., Apple and Amazon
• Alibaba — Alternative Funding Mechanism
• Batch-oriented production become more common, even in
mass production.
• Commercial scientific innovation processes are changing
• Emerald Therapeutics — networked robots operate lab testing equipment
More Complex Types and Patterns of
Innovation?
• BMW warns that new cars are networked—should information
about its performance be shared? Consumer privacy?
• Progressive Insurance: If you install a vehicle monitoring device,
good driving conduct (no sharp braking, less nighttime driving) will
yield discounts. Changes in valuation method and actuarial
practices?
• Facebook “likes” better predict consumer smoking and drug use
than other techniques—Facebook in insurance industry? Reshape
marketing and research industries?
Technological Ethics
• Would it be unethical to make learning addictive?
• Hint: TV, music, game, drug, pornography, gambling and
other industries do not understand the question
• Time=Value=Mind Share=Learning where the time goes,
the mind goes
Technological Ethics
• What about when we can digitally and elementally duplicate the
pleasurable to achieve the difficult?
• As we identify the electrochemical processes and stimulants that
are involved with pleasure, spirituality, comfort, fun, etc., will the
vice and commercial industries be the only ones willing and able
to use them?
• If we can make learning to solve quadratic equations feel like
eating junk food, gaming, and skateboarding all at once, what is
wrong with that?
Creative Deconstruction Destruction
• Modern science and technology
• Humanity’s Great Quest: Being able to observe, identify,
model, manipulate, create, form and combine the parts of
anything
• Cosmos, atoms, genes, cells, brains, bodies,
ecosystems, knowledge, work, processes, markets and
institutions
Key Effects of IT Age
• Digitalization • Globalization
• Automation • Mutation
• Robotization • Commoditization
• Miniaturization • Disintermediation
• Specialization • Modularization
• Customization • Technological
Determinism
Determinism: A Short Cut
• The long-term sneaky way to change the world without ever asking
permission or having to try to convince those who will be forced to
change and already hate the idea, whatever it is and no matter
what it is, before you even thought of it.
• Change key, interconnected tools, and the rest of the system will
change.
Technological
Determinism
• Technological systems are
interconnected webs.
• The history of such systems shows a
consistent repeating pattern.
• Changes in the speed, power or
complexity of one part causes
comparable changes in all other
parts to which it is connected.
The Internet and Social Interaction

• The widespread adoption of the internet has significantly

transformed how people interact socially. Social media
platforms, messaging apps, and online communities have
become integral parts of daily life for billions of people
around the world. Technological determinists argue that the
rise of the internet has fundamentally altered social
dynamics, communication patterns, and interpersonal
relationships.
• In this example, the internet’s technological advancements,
such as the development of social networking sites like
Facebook, Twitter, and Instagram, have reshaped the way
individuals connect, communicate, and share information.
People now have unprecedented access to instant
communication, global networking, and virtual
communities, transcending geographical boundaries and
time zones.
Automobile and Urbanization
• The widespread adoption of automobiles in the 20th century is
often cited as a classic example of technological determinism.
The invention and mass production of automobiles revolutionized
transportation, leading to the expansion of road networks, the
development of suburbs, and changes in urban planning. Critics
argue that the automobile’s dominance in transportation systems
has shaped cities around the world, prioritizing car-centric
infrastructure over public transit and pedestrian-friendly
environments.
 Auto-centric transportation systems go hand-in-hand with sprawling development patterns
that make it difficult (or, in some cases, impossible) to walk or bike to common destinations,
contributing to sedentary lifestyles that lead to substantial health risk. Walking, biking, and
public transportation, on the other hand, lend themselves well to compact development of the
kind found around the world in the pre-car era. (Image credit: Antonio Huerta)
The QWERTY
Keyboard Layout
• The QWERTY keyboard layout, commonly used in
English-speaking countries, is a classic example of
the social construction of technology. Although the
QWERTY layout was originally designed in the 19th
century to prevent mechanical typewriter jams by
spacing out commonly used letters, its continued
dominance in modern computer keyboards is not
solely due to its technical efficiency. Instead, the
QWERTY layout’s widespread adoption and
persistence are largely attributed to social factors,
such as user familiarity, industry standards, and
network effects. Despite the existence of potentially
more efficient keyboard layouts, the QWERTY layout
remains the standard due to its entrenched social and
institutional support.
Some Policy Implications of Digital Innovation
• Older industries transformed: Digital innovation revolutionizes even traditional
industries. Can state owned enterprises change fast enough?
• Small is beautiful: It rewards flexible exchange of ideas and talent. Need smaller
flexible places to meet, like universities, rather than huge technology parks (less
important for Japan than China)
• Public policy should emphasize small scale infrastructure of services: Public
investment in technical testing & quality certification systems for smaller
entrepreneurs helps
Takeaways?
• Faster, cheaper innovation with more specialized products and
new business models is much easier
• New innovation system transforms industries that largely escaped
the first wave of the Internet revolution
• Changes in innovation pose challenges for public policy
• Big technological/economic disruptions create political
conditions to consider big policy changes
• Trusted digital environment
• Trade and competition policies
Takeaways?
• A new system of innovation is emerging that transforms a broad
range of industries and products. What should we do?
• Silicon Valley model (“Regional Clusters”) emerged in 1980s: Research
university, start-ups, VC, and outsourcing combine into specialized
regional clusters.
• This approach re-established US leadership in high tech
• Successful clusters mainly focus on ICT or biotech
• Disrupts traditional industry leaders
Danke schön
See you anytime soon!
Ambidexterity in Operations
and Technology Management

Nofie Iman
Contents
• Inevitable changes
• Organizational responses
• Organizational ambidexterity
• Limited resources and retrofitting
• Tensions and truth/power dynamics
• Transformational challenges
• Transformational leadership
In a complex world, we face contingency, recursiveness, and indeterminacy, so we need
systems, organisations, or actors capable of learning by doing, of developing structures that
can react flexibly and adapt, and of ‘self-organising’ — Dietmar Braun (2003)
Type of Change The big change that happens to people no
matter what they do, such as technology,
politics, social change, pandemic, and so
forth.

Global
change
“Little and micro changes that All the “revolutionary”
assail us on an individual level”, change initiatives that
such as a loss of the security most organizations
that goes with a specific job, undertake to cope
lack of skills and stamina with the pressure of
needed for change, among environmental change
others. such as restructuring.
Type of
change Organi-
Personal
zational
change
change

Adapted from Robbins & Finley (1996)

Product Life Cycle
Now: Shorter and irregular life cycle

Then: Longer and regular life cycle

Modes of Transition (Bridges, 2009)
• Ending phase involves ‘letting go’ of the old situation and the identity that went with it.
It is impossible for employees to fully engage in a new role or have a new purpose until
they have let go of the old role or purposes. Change can only begin when one thing
ends and something new starts.
• Neutral zone is the in-between stage. This phase is a period of disorientation, self-doubt
and anxiety, but it can also be a period of growth in which new opportunities are
identified. It involves recognition of the need to change and uncertainty about the
nature of desirable end states.
• Beginning phase involves direction to a new situation and the development of a new
identity. In this phase as the new situation is identified more clearly and a new identity is
internalized, the forces for maintenance and growth achieve a new balance.
Kurt Lewin’s (1947) change
theory
• Unfreeze: The aim of this step is to reduce the
forces that are striving to maintain the status
quo and undoing the current mind set by
showing problems make individuals realize the
necessity of change.
• Transition: Developing new ways of doing
things, values, behaviours and attitudes
through organizational re-structuring process
and development techniques.
• Freeze: The final stage of refreezing and the
adaptation of ownership of the new ‘as is’. This
phase is very critical as the organization may
revert to former ways of doing things unless
the changes are reinforced through freezing.
Types of Encounter (Guinea & Webster, 2011)
• A good event (discovery);
• take place when users find new functions in a technology or a new
way of using the technology that makes the completion of their tasks
easier or more effective
• An expected event (normal); and
• when things go smoothly and technology behaves as expected
• An unexpected technological interruption (negative).
• represents a stressful situation and will be appraised by the users as
threatening
Types of Encounter (Guinea & Webster, 2011)
• A good event (discovery);
• take place when users find new functions in a technology or a new
way of using the technology that makes the completion of their tasks
easier or more effective
• An expected event (normal); and
• when things go smoothly and technology behaves as expected
• An unexpected technological interruption (negative).
• represents a stressful situation and will be appraised by the users as
threatening
How Do Organization React?
• A major challenge facing organizations is that of adapting to major
technological advancements that influence daily work routines.
• Challenges include employee’s emotion, user’s psychological stress, among
others.
• Benefits of implementing new technology/innovation occur only to
the degree that users of the technology adapt by proactively
changing themselves (self), their work routines (task), and even the
IT system itself (technology) in order to leverage its strategic
capability.
• Thus, organizational agility is becoming a focal point for
competitive success because it reflects a firms’ responsiveness to
market changes
Fall of the Mighty, Rise of the
Innovative
• Innovations and changes in the environment that destroys the
value of know-how in existing technology or product (Tushman &
Anderson, 1986).
• Getting better at what the organization is doing well does not help.
• World’s most successful companies are not doing as well as they
used to: Kodak, GE, Ford, Chrysler, Sears, Motorola, Sony, etc.
• Fortune 500 in 2000, only 30% remain in the list in 2007. Fortune
500 in 1955, only 60 remain in 2017.
• Rapid rise of innovative firms: Facebook, Google, Amazon, Tesla…
What should organization do?
Ambidexterity
[ˌambɪdɛkˈstɛrɪti]

• When people are equally

skillful with their left and
their right hand;
• The art of simultaneously
orchestrating exploitation
and exploration, e.g. when
companies improve their
present business and
simultaneously unlock
future digital business
opportunities
Ambidexterity (Levinthal & March, 1993; March, 1991)
• Exploration refers to the efforts to learn and discover how to
combine and recombine potential resources in novel ways to
create new capabilities and opportunities.
• Exploitation, on the other hand, relates to the efficient
leverage and refinement of existing resources through known
processes.
• The concept of organizational ambidexterity provides an
excellent mental model for the process of organizational
transformation.
Exploitation vs. Exploration
§ Two types of organizational changes suggested by J. March (1991).

Improvements Innovations
= Exploitation = Exploration
• Efficiency/Productivity • Shift in organizational model
• Reliability • Risk taking
• Incremental • Discontinuous
• Short-term performance • Long-term performance

Q. Which is more important?

Q. Investing only in exploitation? Investing only in exploration?
Exploitation vs. Exploration

High

Success Trap
Exploitation

Failure Trap
Low High
Exploration

§ Too much exploitation leads to success trap, and too much exploration leads
to failure trap (Levinthal & March, 1993).
§ Balancing is very difficult. Most businesses struggle to find the balance.
Types of Organizational
Ambidexterity
1. Sequential/cyclical ambidexterity
Temporal sequence of exploration and
exploitation (e.g., one follows the other)
2. Structural/spatial ambidexterity
Local or organizational separation of
exploration and exploitation (e.g., different
business units)
3. Contextual/integrative ambidexterity
Contextual balancing of exploration and
exploitation (e.g., simultaneous activities in one
organizational unit)
4. Intellectual ambidexterity
Cross-over capability or talent of single persons
Are we?

Locally
Rooted,
Globally
Respected

Mengakar
Kuat,
Menjulang
Tinggi
Dynamic Capability
• “The firm’s ability to integrate, build, and reconfigure internal and external
competences to address rapidly changing environments” (David J. Teece,
Gary Pisano, and Amy Shuen, 1997)
• Constantly reinventing the resource-base to maintain sustainable competitive
advantage.
• Three types of dynamic capabilities are needed:
• Learning: Employees need the capability to learn quickly. To do that, they need
common codes of communication and coordinated search procedures.
• Building New Assets: Firms need to quickly acquire, orchestrate and reconfigure
externally sourced resources
• Transforming Existing Assets: Reconfiguring current resources so that they can be
used in the new environment
What if changes happen too often?
What if we have limited resources?
Organizational Capacity Individual Competencies
• Information and evidence • Knowledge of context
• Supply of, and capacity to generate, information and evidence for • Including organizational, political and wider social context
issue analysis and for development and evaluation of policy
options • Knowledge of different disciplines
• Personnel management and workforce development • Including law, economics, accountancy, statistics, the social
sciences, project management and information technology
• Adequate supply of highly skilled policy personnel and
appropriate skill mix in policy units; supported by personnel • Comparative and historical knowledge
management and workforce development practices • Knowledge of systems and developments in other countries and
• Relationships with stakeholders ability to learn from them (facts, general principles, judgement)
• Formal and informal relationship with internal and external • Analytic skills
stakeholders, including capacity for timely and comprehensive • Ability to frame problems; appraise research evidence; evaluate
consultation policy options; predict likely consequences and evaluate risks
• Intergovernmental and cross-portfolio co-ordination • Practical skills of policy development and analysis
• Co-ordination within and between departments and between • Researching, drafting, consulting, evaluating, project management
different levels of government
• Implementation links • Personal attributes
• Communication skills; creativity, intuition and judgement
• Closer links between policy development and implementation (inventiveness, insight, foresight)
• Monitoring, evaluation and review
• Systematic processes for monitoring, evaluation and review which
are institutionally integrated with policy development
• Leadership and organizational culture
• Policy leadership (overall direction and policy frameworks);
strategic management of the policy process; culture characterized
by clarity of direction, innovation and preparedness to take risk,
teamwork and trust

Gleeson et al. (2011)

Retrofitting?

Adapted from Zimmermann et al. (2018)

Retrofitting?
Dualities refer to alternative decision-making pairs (i.e., the poles of the duality)
where both options are important but are to some degree in conflict with one
Duality
another (Birkinshaw et al. 2016). The twofold nature of an object of study without
separation (Gaim et al. 2018).
“[C]ontradictory yet interrelated elements […] that exist simultaneously and persist
Paradox over time (Smith and Lewis 2011, p. 387). “contradictory, mutually exclusive
elements that are present and operate at the same time” (Cameron 1986, p. 545).
“Simultaneous presence of presumed opposites, incompatibilities, or irrationalities
Contradiction that characterize the ambiguous, ever-changing, and complex features of
organizational life” (Jones 2004; cf. Putnam et al. 2016, p. 70).
“Stress, anxiety, discomfort, or tightness in making choices, responding to, and
moving forward in organizational situations” (Putnam et al. 2016, p. 69). Tension can
Tensions
also generate creativity, innovation, and pleasure (e.g., Lê and Jarzabkowski 2015;
Lewis 2000; Gaim and Wåhlin 2016).
Retrofitting?
Examples of duality in management theory include the
Dualities refer
tension to alternative
between centralizationdecision-making
and decentralization,pairs
or (i.e., the poles of the duality)
where both options
between stabilityare
and important butcase,
change. In each areboth
to some degree in conflict with one
Duality elements are necessary for a well-functioning
another (Birkinshaw et al. 2016). The twofold nature of an object of study without
organization, and finding the right balance between
separation (Gaim et al.them 2018).
is key. Unlike duality, paradox cannot be resolved through
compromise or finding a middle ground. Instead, it requires a
“[C]ontradictory yet interrelated elements […] that exist
deeper simultaneously
understanding and acceptanceandofpersist
the contradictions
Paradox over time (Smith and Lewis 2011, p. 387). “contradictory, mutually
at play. Examples exclusive
of paradox in management theory include
the tension between short-term and long-term goals, or
elements
For example, the tensionthat areinnovation
between present andand operate
efficiency. On one at the same
hand, time”
between (Cameron
innovation 1986,
and stability. p.case,
In each 545).both elements
organizations need to continuously innovate and adapt to remain are necessary for success, but resolving the paradox requires
“Simultaneous
competitive in the market. On thepresence of presumed
other hand, they opposites, incompatibilities,
also need to maintain a more nuanced and orcomplex
irrationalities
approach.
operational efficiency and control costs. Another example of a contradiction
Contradiction that characterize the ambiguous, ever-changing, and complex features of
is the tension between autonomy and control. Employees need autonomy
organizational
to be creative, life” (Jones
innovative, and engaged 2004;
in their work. cf. Putnam
However, managers et al. 2016, p. 70).
also need to maintain control over the organization and ensure that
“Stress,
employees are anxiety, discomfort,
following established policies or
andtightness
procedures. in making choices, responding to, and
moving forward in organizational situations” (PutnamOrganizational tension
et al. 2016, can also
p. 69). arise from
Tension canthe
Tensions competing demands of different stakeholder
also generate creativity, innovation, and pleasure (e.g., Lê and Jarzabkowski 2015;
groups, such as shareholders, employees,
Lewis 2000; Gaim and Wåhlin 2016). customers, and the community.
Retrofitting?
Examples of duality in management theory include the
Dualities refer
tension to alternative
between centralizationdecision-making
and decentralization,pairs
or (i.e., the poles of the duality)
where both options
between stabilityare
and important butcase,
change. In each areboth
to some degree in conflict with one
Duality elements are necessary for a well-functioning
another (Birkinshaw et al. 2016). The twofold nature of an object of study without
organization, and finding the right balance between
separation (Gaim et al.them 2018).
is key. Unlike duality, paradox cannot be resolved through
compromise or finding a middle ground. Instead, it requires a
“[C]ontradictory yet interrelated elements […] that exist
deeper simultaneously
understanding and acceptanceandofpersist
the contradictions
Paradox over time (Smith and Lewis 2011, p. 387). “contradictory, mutually
at play. Examples exclusive
of paradox in management theory include
the tension between short-term and long-term goals, or
elements
For example, the tensionthat areinnovation
between present andand operate
efficiency. On one at the same
hand, time”
between (Cameron
innovation 1986,
and stability. p.case,
In each 545).both elements
organizations need to continuously innovate and adapt to remain are necessary for success, but resolving the paradox requires
“Simultaneous
competitive in the market. On thepresence of presumed
other hand, they opposites, incompatibilities,
also need to maintain a more nuanced and orcomplex
irrationalities
approach.
operational efficiency and control costs. Another example of a contradiction
Contradiction that characterize the ambiguous, ever-changing, and complex features of
is the tension between autonomy and control. Employees need autonomy
organizational
to be creative, life” (Jones
innovative, and engaged 2004;
in their work. cf. Putnam
However, managers et al. 2016, p. 70).
also need to maintain control over the organization and ensure that
“Stress,
employees are anxiety, discomfort,
following established policies or
andtightness
procedures. in making choices, responding to, and
moving forward in organizational situations” (PutnamOrganizational tension
et al. 2016, can also
p. 69). arise from
Tension canthe
Tensions competing demands of different stakeholder
also generate creativity, innovation, and pleasure (e.g., Lê and Jarzabkowski 2015;
groups, such as shareholders, employees,
Lewis 2000; Gaim and Wåhlin 2016). customers, and the community.
 Continuous Tensions

substance articulacy

technocratic politic

elitist populist
Truth vs. Power Dynamics
Academics/
Professionals Administrators Politicians
Researchers

Academic Popular
consent as a consent as a
source of source of
authority authority

TRUTH POWER

Legitimate Illegitimate
claims for claims for
institutional institutional
autonomy autonomy
Adapted from Gustavsson (1984)
HiPPO is an acronym for the
“highest paid person’s opinion”
or the “highest paid person in
the office.” The acronym is used
to describe the tendency for
lower-paid employees to defer
to higher-paid employees
when a decision has to be
made.

The term can also be used to

describe an organization’s
reliance on human instinct
rather than data in the
decision-making process.
 Do we have a digital culture and
mindset?
Transformation Can we get out of the “resource
Challenge curse”?
(Case in Indonesia)
Can regulators keep up with
technological changes?
Challenge #1
• Do we have a digital culture and mindset?
• Digital culture is more than just working with digital devices. It goes beyond digital tools into
skills, environments, and artefacts that evolve to provide relevant information and facilitate
routines.
• Some relevant characteristics:
• An environment with high performing, responsible and independent individuals
• Excellent and positively integrated team
• High level of discipline and ability to move quickly
• A strong digital strategy is supported by a high execution capacity
• Digital talent and capabilities
• Long term focus
• Passion for risk
Culture is the biggest challenge in digital transformation.

Source: Capgemini (2017)

Dehomag or Deutsche Hollerith Maschinen is a card punching
machine manufactured by a subsidiary of IBM in Germany. At
that time, Hitler employed at least 500 statisticians in Krakow
to arrange the scheduling of trains that brought prisoners
from various countries in Europe to Poland. They also use the
machine to carry out national censuses, calculate military
logistics, and so on. They even calculated the death rate per
square kilometer as a result of starvation and a number of
other mysterious facts. Therefore, IBM was accused of
contributing to the genocide committed by the Nazis.

Because it has a dark history regarding data, it’s no wonder

that Germany is a progressive country when it comes to data.
Data Protection Act has been stamped since 1970. Germany
has data protection authorities in 16 states (Länder). In
addition, the Federal Commissioner for Data Protection and
Freedom of Information (Bundesbeauftragte für Datenschutz
und Informationsfreiheit or BfDI) was co-founded with the
Data Protection Conference (Datenschutzkonferenz or DSK),
which comprises public and private sector authorities.
Challenge #1
• Why is promoting digital culture so important?
• Breaking down hierarchies and speeding things up – it is important to let members make
their own judgments and breaking down hierarchies empowers people to make decisions
more quickly.
• Drive innovation – digital culture allows organizations to develop a workplace that motivates
members to try new things while enhancing organizational learning.
• Attracting new age talent and retaining the current workforce – Millennials and GenZ no
longer want to work in a conservative environment. They want to be part of a digital culture
that enables a collaborative and autonomous workplace. It also increases employee
engagement, enabling them to voice their opinions and create impact.
Challenge #2
• Can we get out of the “resource curse”?
• Grab & Greed: Decreased level of competition in other economic sectors, volatility of natural
resource income due to changes in global commodity markets (such as palm oil and coal),
mismanagement of natural resources, or weak, ineffective, unstable institutions, or corrupt, and so
on.
• Natural resources usually create conflicts between communities (Collier, 2007) as different
groups and factions fight over their share. The ambitions of the people and the government can
conflict with each other.
• Countries that depend on the export of natural resources tend to ignore education because they
think it is not needed in the near future.
• The relationship between the abundance of natural resources and slow economic growth has
been proven empirically (Sachs & Warner, 1995). Financial flows from foreign aid can have a
similar impact.
• Leonard Wantchekon in his research – Why Do Resource Dependent Countries Have Authoritarian
Governments? –stated that a 1 (one) percent increase in dependence on natural resources can
increase the probability of an authoritarian government by almost 8 (eight) percent.
The figure shows the Regional Natural Resource Curse Index
(RRCI) for each province. The greater the RRCI value, the
higher the natural resource curse (NRC) level.

Source: Rahma et al. (2019)

Provinces are numbered from 1 to 32. Radial distances are at intervals of 650 km from Jakarta.
Challenge #3
• Can regulators keep up with technological changes?
• Technology can bring a myriad of benefits, but it also carries harmful risks
and facilitates crime, such as terrorist activity, drug trafficking, smuggling, or
cyber attacks.
• If the speed of technological innovation is a headache, then the speed at
which laws and regulations move can seem like moving mountains.
• Fragmented regulations can limit access and stifle innovation. At the same
time, the government is under extreme pressure from market leaders looking
to level the playing field.
• The tension between innovation and regulation will become more
pronounced.
Challenge #3
• Principles to guide the future of regulation:
• Adaptive regulation. Shift from “regulate and
forget” to a responsive and iterative approach.
• Regulatory sandbox. Prototype and test new
approaches by building sandboxes and
accelerators.
• Result-based regulation (outcome-based
regulation). Focus on results and performance
rather than form.
• Risk-weighted regulation. Move from one size
fits all regulation to a data-driven and
segmented approach.
• Collaborative regulation. Align regulations
nationally and internationally by involving more
players across the ecosystem.

Source: Deloitte (2020)

Who should leads fundamental
changes in organizations?
Transformational
Leadership
• Transactional leadership vs. Transformational leadership
• Transactional: Leader helps employees improve
their performance toward current objectives
• Transformational: Leader identifies needed
change, create a vision to guide the change
through inspiration, and execute the change
• Characteristics of transformational leadership:
• Early Awareness of Environmental Change: e.g.,
Jack Welch
• Create and communicate vision: direction of
change
• Commitment Building: To the Vision
• Transformational Leadership: Leading by
visions
• Transactional Leadership: Leading by reward
and punishment
• Intellectual Stimulation and Empowerment:
Encouraging organizational members’ initiative. Not
blindly following the leader.
Transformational Leadership
• Transformational leadership can be an effective approach for guiding an organization through
dynamic changes and uncertainty. It emphasizes inspiring and motivating employees to work
towards a shared vision, empowering them to take ownership of their work, and fostering a culture
of innovation and creativity.
• By providing a clear vision of where the organization is headed and how each employee can
contribute to that vision, transformational leaders can help employees see the bigger picture and
feel more invested in their work. This can lead to increased engagement, higher levels of creativity
and problem-solving, and a stronger sense of commitment to the organization’s goals.
• In times of uncertainty or change, transformational leaders can help to create a sense of stability
and direction by providing regular communication and feedback, being transparent about
challenges and setbacks, and remaining adaptable and open to new ideas.
• By fostering a culture of trust and collaboration, transformational leaders can also encourage
employees to work together to find solutions and overcome obstacles, further strengthening the
organization’s ability to navigate change and uncertainty.
Ambidextrous Innovation Challenge
(Group Assignment)
• Each student teams must develop innovative solutions to real-world
operational and technological challenges faced by organizations.
• Each team must balance exploration (e.g., introducing new technologies,
processes, or business models) and exploitation (e.g., leveraging existing
resources and capabilities) in their proposed solutions.
• Teams should present their ideas in a “pitch competition” format, where
they showcase the feasibility, viability, and desirability of their solutions.
Thank you
I hope you enjoyed the course
Knowledge Management in Operations

Nofie Iman
Key Aspects
Knowledge Creation •KM helps in systematically capturing new ideas and research outcomes. In technology-driven operations,
KM ensures that valuable insights from R&D are documented and made available for future use.
•Employees in operations and technology often possess tacit knowledge (know-how, insights) that is not
and Capture formally documented. KM systems facilitate capturing this knowledge through interviews, debriefs, and
collaborative tools.

Knowledge •Implementing robust data management systems that categorize and store knowledge effectively. This
includes databases, document management systems, and content management systems that make
retrieval of information seamless.

Organization •Developing taxonomies and ontologies to classify knowledge in a way that aligns with the organization’s
operations and technological framework.

•Utilizing tools like intranets, knowledge repositories, and collaborative platforms (e.g., SharePoint,

Knowledge Sharing Confluence) to facilitate sharing of information across departments.

•Establishing communities of practice where employees with similar interests or roles can share insights,
solve problems collaboratively, and build collective expertise.

•Integrating KM with decision support systems (DSS) to provide managers and employees with relevant

Knowledge Utilization information and insights, enhancing decision-making processes.

•Using knowledge to identify inefficiencies and optimize processes. For instance, lessons learned from
previous projects can be applied to improve future operations and technology initiatives.
 Knowledge Management
Knowledge Technology
Practice
1. Making knowledge visible
(clarifying the process and procedures for the
concerned stakeholders)
2. Building knowledge intensity
(refining knowledge continuously to obtain core
knowledge of lasting value)
GRID COMPUTING KNOWLEDGE SEMANTIC ARTIFICIAL 3. Developing a knowledge culture
TO SUPPORT E- EXCAVATION AND INFORMATION INTELLIGENCE
RESEARCH KNOWLEDGE RETRIEVAL TOOLS PRODUCTS FOR
(basing all the transactions employing standard
MANAGEMENT NATURAL norms and procedures; no ad-hoc actions)
SYSTEMS LANGUAGE
PROCESSING 4. Building knowledge infrastructure
(creating a huge, but well-organised knowledgebase
like a knowledge repository)

KNOWLEDGE CLOUD COMPUTING IN 3D

REFINING & COMPUTING (3-D PRINTING &
PACKAGING MORE)
UTILITIES
Belok sebentar
From Oral Tradition to Cuneiform
• From the oldest times, we • The first major shift in storing
relied on our human memory to knowledge away from using
store and transfer knowledge. human memory came with
the Sumerians around 3000
• But, we found that there were B.C.
huge problem with human
memory particularly in terms of • Developed writing system
its fallibility. called cuneiform
• We forgot things or we • Three-corned stylus cut
discarded certain bits of different combination of
knowledge intentionally or wedges (‘cunei’) into damp
unintentionally that we didn’t clay tablets
consider important. • Early tablets mainly
contained numbers – point to
• Can you imagine the amount of money
dedication required in the old
days to memorize poems and • Developed ‘archive
stories? mindedness’
From Ancient Egypt to Rome
• The Ancient Egyptians • By the time of the Ancient Greeks, The tradition of books and libraries
shifted their writing to we find that books begin to continued into the Roman era. There
wood, bamboo, palm leaf, emerge written on papyrus.
were two main problems with the
bone, leather, metal, cloth, knowledge contained in scrolls in
silk, Papyrus for storing • It was not long before we saw the Roman libraries.
their knowledge. Papyrus development of libraries
had the advantage of being containing large scrolls Firstly,
lighter and much more
easily transportable. containing text. These texts They were able to damage through
included works of history, fires or dampness or insect attack.
• The Egyptians inscribed philosophy, music and arts.
their formal records in Secondly,
stone but used papyrus for • During Cleopatra’s time, the knowledge was liable to the
their informal records. great library of Alexandria in Egypt sensibilities of the emperor at the
• The papyrus contains the contained 400,000 scrolls around time. If a scholar or poet fell out of
oldest tacit knowledge 50 B.C. That is a lot of knowledge favor with an emperor, their whole
collection of works was banished
which recorded through stored in one place. from the libraries. Hence, entire
informal interactions collections of knowledge were lost.
between people. • The Egyptian government has
recently built a national library at
Alexandria in honor of the famous
old library.
From Cathedral Libraries to the Digital Era
• By the fourth century the most • The next major shift in managing • The next paradigm shift occurred in the late
common texts were the Bible, and knowledge came with the advent twentieth century from the introduction of
church service books. of print in 1455 . computers to all aspects of life, computers
allowed storage large amounts of data.
• The traditional life of a monk was • By Printing many books had • Communication of knowledge occurred easily
to read. These monks were the been printed. through local networks as well as the internet.
gatekeepers of all knowledge Emails could be sent almost around the world
which was not available to the • This made knowledge
and people could communicate easily via
ordinary person. accessible to the ordinary internet phones or engage in video-
person who could read and conferencing.
• By the twelfth century, education interpret texts for themselves.
and training for people were • Dialogue through email, groupware and video
developed through the • Soon this access to knowledge conferencing systems can store vast amounts of
for the masses led to the data into data warehouses for store, analysis
universities . and retrieval.
development of learned
• Oxford University became the societies and dissemination of • Search engines became very powerful results.
first university to be established in specialist knowledge occurred This led to high quality retrieval of relevant
England in 1167. Books were through printed journals. knowledge at the right time. It is within this
expensive and knowledge was context that KM emerged as a discipline. The
purely for the privileged few. development of information and communication
technologies has been a revolution.
Emerging(ed)
Technology
• The expanding use of the internet and
the growth of E-Business & E-
Commerce
• The explosion in social media
• The proliferation of mobile devices
• Cloud Computing & SAAS- (Software as
a Service)
• The evolution of 'Big Data‘, Analytics &
IoT
• Data Risk & Security issues,
including……… Cybercrime
 • System:
• An array of components that work together to achieve a
common goal or multiple goals

• Business System:
• A methodical procedure or process that is used as a
delivery mechanism for providing specific goods or
Systems- services to customers

Definitions • Information System:

• Computer-based set of applications supported by
People and Processes to process Data and turn it into
Information

Oz, Jones and Gowthorpe (2012)

 • “A set of interrelated components working together to collect,
retrieve, process, store and disseminate information for the
purpose of facilitating, planning, controlling, co-ordinating,
analysing and decision making in business and other
organisations” Laudon and Laudon (2016)

Information • This definition suggests all elements of an information system are

required to operate together in order to facilitate management
operations
Systems:
Definitions • “A combination of working practices, information, people and
information technologies, organised to accomplish goals in an
organisation” Alter (1998)

• Plumbing analogy

• NOTE- IT is not always an essential element of IS

Levels of Management Decision Making and IS support

Type of IS Groups Served

Executive Senior
Information System Managers
Strategic External/Internal
data
Decision
Level
Support System Decisions
Middle
Managers
Management Tactical Level Internal/External
Information System Decisions data

Operational
Transaction Operational Level Managers &
Processing Decisions Staff
System

Functional Corporate Database ERP/CRM

systems
 Data to Wisdom Data and Wisdom

• What the heck are ‘data’ and • For now:

information’ anyway? • Data can be structured to fit a database,

• Answer: • Information is what you didn’t know

before,
• Do we really know? • Knowledge can get you out of trouble and
• There are a lot of opinions and • Wisdom can help you avoid trouble in the
first place”
it gets worse if we throw in
(Redman 2005: 22).
‘knowledge’ and ‘wisdom’.”
Data and Information
• Are seen as inter-changeable in every-day
terminology (both in practice and elements of
academic theory) but we will try to make a clearer
distinction
• Data:
• Raw facts which are capable of being processed
to form information i.e. data is an Input
• Information:
• Data which has been processed in such a way
as to be meaningful to the audience and in
context hence information is the Output
• Creating Information from Data requires Processes
or a System whether they are supported with
Technology or not
• Information only becomes truly useful when it can be
translated into Intelligence & Knowledge
 Data/Information/Knowledge Process Model

Generic System
Input Process Output Recipient

Manufacturing System
Raw Production Finished
Materials Line Products Customer

Information System
Raw Process/ Information Information
Data Database Products Consumer

Knowledge

Decision Making

(Strategic, Tactical, Operational)

Based upon: Strong, Lee and Wang (1997: 104); Wang (1998: 59) and Orna (1996)
 Following on
Checkland and Howell (1997) Mutch (2008)

Traditional thinking

• Data Information Knowledge

• We may be better reversing the direction

Knowledge Information Data

• Rather than information somehow emerging out of data and creating knowledge, it is
knowledge that suggests the data that we need and the information that we can draw from
it
• Data is not simply waiting to be found, but is created by the questions which we ask,
questions which can change with changing conditions
• We can view information as both a process and a product, although one helpful way of
viewing its would be as packaged knowledge
 Enterprise Data
Relationships and Complexity
Customers

Operations
Personnel

Vendors
Inventory

Products Sales

Locations Financials

Marketing Technology

Industry

Robison (2010)
Enterprise Resource Planning

• ERP’s allow companies to replace their

existing information systems, with a
single integrated system.

• They promise the seamless integration

of all the information flowing throughout
a company.

• They integrate production, finance,

sales and distribution, human resources
etc.
Anatomy of an Enterprise System (ERP)
At the heart of an enterprise system is a central database that draws data from and
feeds data into a series of applications supporting diverse company functions. Using a
single database dramatically streamlines the flow of information throughout a business

Managers and
stakeholders

Reporting
applications
Financial
appliactions
Sales and
delivery
applications

Sales force Back-office

Customers and customer Central Manufacturing administrators Suppliers
service reps database applications and workers

Service
applications
Inventory
Human and supply
resource applications
management
appications

Employees

Davenport (1998: 124)

Universidad Politécnica de Valencia Logistic

Supply Chain (Information) Management

Strategies for delivering
Information and Knowledge
• Evaluating emerging and alternative approaches
and strategies for delivering organisational
information and knowledge
• Traditional approaches- Client-server, VPN
• Outsourcing
• Cloud Computing
• SaaS, IaaS, PaaS
• Social media
• Other approaches?
Direct Assists Computer Logics LLP
Cloud Computing
• A style of computing in which scalable and
elastic IT-enabled capabilities are delivered
as a service using Internet technologies.

• A style of computing in which dynamic,

scalable and virtual resources are provided
over the Internet. Cloud computing refers to
services that provide common business
applications online, which are accessed
from a Web browser, while the software and
data are stored on the servers
 The Growth of Data
Zettabytes = I billion terabytes or 1 trillion gigabytes
Structured & Unstructured
Big Data
• Estimation in 2020 45-50 zettabytes
• Data production will be 50 times greater in 2020 than in 2010.
• The size of the digital universe will double every two years at
least (AKA Moore’s Law in 1965)
• Wal-Mart processes one million customer transactions per
hour, stored in databases estimated to contain more than 2.5
petabytes of data.
• The enormous data influx is straining IT infrastructures. In a
recent survey, 55 percent of executives said data is slowing
down their IT systems.
• Business Ethics and Big Data
The Internet of Things
Louis Columbus
 • A problem that affects real people in the real world
that has, at its heart, poor quality information

• A failure to manage the quality of data/information.

Data • Can range from poor customer service to the loss of

Disasters life or limb that might arise if there is a failure to
manage data/information appropriately.

Overarching theme: Data Quality

 Personal definition
“Having the right and correct data in the right format, in
the right place at the right time, by having one single
version of the truth across the enterprise” (O'Brien 2011)

Cost of Poor Data Quality

Data Quality Companies can lose up to 10% of their revenues as a
result of poor operational data, together with other serious
consequential effects relating to tactical decision making
and strategy generation.
(Redman 2001:)

Tom Redman's lake...

 • TDWI: Data quality problems costs US business $600 billion a year
(5% of US GDP) (Eckerson 2002)
• PWC Report: 75% of those surveyed reported major problems
resulting from faulty data, (Informatica. 2005:).
• “Every business function will have direct costs associated with
poor data quality” (Dun and Bradstreet (2006).

Costs of • A Survey of 193 organisations sponsored, 39% of which had

revenues in excess of US $1 billion: 33% rated their data quality as

Poor Data poor at best, whilst only 4% reported it as excellent (Information

Difference 2009).

Quality • 33% of Fortune 100 organisations will experience a data crisis by

2017 arising from their inability to value, govern or trust their
enterprise data (Gartner 2014)
• On average global companies feel that 26% of their data is
inaccurate (up 25% on last year) and 80% do not have a
sophisticated approach to data quality . (Experian 2015)
• Nearly 60% of organisations do not measure the cost of poor data
quality (Gartner 2017)
Data Disaster to Competitive Advantage

Data Disaster
Research findings and horror stories

Data is an enterprise-wide asset,

therefore it must be managed or
governed appropriately

‘Intelligent’ Business Intelligence

and Management information
to generate strategic knowledge
and derive real competitive
advantage
 • Data itself remains one of our most abundant yet under-
utilised resources” (Davenport, Harris, De Long and
Jacobson 2001: 1)

• Many organisations will readily agree that their data is an

important asset, but fail to take any action (Hewlett
Data Seen Packard 2007: 3)

as an • Less than one third of organisations regularly monitor data

quality (Hayler 2010: 22).
Asset? BUT

• Companies who are able to gain a better understanding of

their customers through improved information may be in a
position to enhance their operating margins by up to six
percent (Davenport and Harris 2002: 30).
Bringing everything
together

Data is both an organisational resource

and an enterprise-wide asset, as valuable
as any of physical, financial or personal
assets and therefore must be managed
appropriately.

Its sole purpose is to serve the

organisation to enable the it to attain its
objectives and goals whilst conforming to
the requirements of overall corporate
governance
Kita balik lagi
Benefits of KM
• Streamlining processes by avoiding redundant work and making sure
Enhanced Efficiency employees have access to the knowledge they need when they need it.

Innovation and Continuous • Fostering a culture of continuous improvement and innovation by leveraging
Improvement shared knowledge and collaborative problem-solving.

• Providing a robust foundation of knowledge that supports more informed and

Better Decision-Making effective decision-making.

• Reducing operational risks by ensuring that critical knowledge is retained

Risk Management within the organization, even if key personnel leave.

• Enhancing training and development programs through accessible knowledge

Employee Development resources, thereby improving overall employee competence and satisfaction.
 • Knowledge management is an
organizational process that aims to
create centralize knowledge source
within the organization that acquire,
assimilate, distribute, integrate, share,
retrieve and reuse the internal and
Knowledge external, explicit and tacit to bring
innovation in the organization in the form
Management of the product, people and
organizational process.
• Polanyi (1962) identified the duality of
the knowledge.
• Tacit knowledge
• Explicit knowledge
Tacit Knowledge
• Polanyi (1962) defined tacit knowledge as the abilities,
expertise and conceptual thinking. Tacit knowledge is
not only attributed to the, what is know, but it is also
attributed to the knower as well. Because sometimes
knower’s knowledge level is soaring but he could not
explain in efficient way or sometimes knower does not
have adequate sources to disseminate his knowledge to
the person who actually needs this.
• Tacit knowledge is very difficult to acquire because it is
embedded in the form of capabilities, skills and ideas
which individuals carry in their minds.
• Tacit knowledge can only be seen through the
application that is why tacit knowledge is difficult to
capture, exploit and diffuse among the organizational
members.
Explicit Knowledge

• Polanyi (1962) said that explicit

knowledge can be disseminated
and shared in the form of hard
data, well defined procedures,
and standardized principles.
• Nonaka & Takeuchi (1995) defined
explicit knowledge as “Knowledge
of Rationality”. Explicit knowledge
is easy to capture, manage, share
and disseminate to the people.
Forms of Knowledge

Explicit
• Codified in blueprints, designs, drawings “We know more
and specifications
than we can tell.”
• Knowledge of rationality (mind)
Polanyi, M. (1967)
• Sequential knowledge (there and then)
• Digital knowledge (theory)
Tacit
• Uncodified, kept in human brains
• Knowledge of experience (body)
• Simultaneous knowledge (here and now)
• Analogy knowledge (practice)
Knowledge Management Cycles
Knowledge Cycle

Innovation Cycle Knowledge Management Cycle

Collect
Codify
Identify
Classify

Embed
Product/ Knowledge Organize/
Create Store
Process Repository

Share/
Use/Exploit Disseminate
Diffuse Access
 Creation
Acquisition

Knowledge Integration
Management
Cycle Learning
Categorization

Utilization Storage

Dissemination
Ernst & Young’s Framework for
Knowledge Management
Storage
• Input, Purge
• Archive, Abstract Deploy
Acquire • Index, Catalog • On-demand
• Engagement • Coordinate • Repeatable
based • Content • Event-based
• Non • Subscription
engagement Add Value
based • Commercialize
• Identify needs
• External • Monitor usage
• Research
• Measure
• Develop
satisfaction
proprietary
• Package

Provide Infrastructure
Organization - Culture - Technology - Public Relations
Source: Ernst & Young, and “A Note on Knowledge Management,” Harvard Business School 9-398-031, 1997
Knowledge Management Framework

A structure that Serves as a strategic Allow for the Facilitate the Help organizations
provides guidance roadmap for effective capture management of to better understand
and support for managing, creating, and leveraging of tacit knowledge, the relationship
managing, creating, and distributing knowledge assets, which between knowledge
and distributing various forms of resulting in encompasses and innovation.
organizational knowledge within an enhanced transferable skills,
knowledge. organization. productivity, best practices, and
engaged employees, industry expertise in
and overall success. employees' minds
and experiences
 To

SECI Model of Tacit knowledge Explicit knowledge

Knowledge Tacit
Socialization Externalization

Management knowledge

From
Internalization Combination
1+1
Explicit
knowledge

Source: Knowledge-Creating Company, p. 62.

Four Modes of Knowledge Conversion
• Socialization:
• A process of sharing experiences
• Apprenticeship through observation, imitation, and practice
• Externalization:
• A process of articulating tacit knowledge into explicit concepts
• A quintessential knowledge-creation process involving the creation of metaphors, concepts, analogies,
hypothesis, or models
• Created through dialogue or collective reflection
• Internalization:
• A process of embodying explicit knowledge into tacit knowledge
• Learning by doing
• Shared mental models or technical know-how
• Documents help individual internalize what they experience
• Combination:
• A process of systemizing concepts into a knowledge system
• Reconfiguration of existing information and knowledge
 Dialogue

Knowledge (Collective Reflection)

Spiraling Socialization Externalization

Linking
Field Explicit
Building Knowledge

Internalization Combination

Learning by Doing
Source: Knowledge-Creating Company, p. 71.
Challenges in Building Knowledge Management Systems

Knowledge evaluation —
Culture — getting people to
assessing the worth of
share knowledge
knowledge across the firm

Knowledge implementation —
Knowledge processing — organizing knowledge and
documenting how decisions integrating it with the
are reached processing strategy for final
deployment

50
Not Only in Operations, but
Promoting Innovation
• Innovation is closely related to knowledge management
because innovation often requires the application of new
knowledge or the combination of existing knowledge in
new ways.
• Existing research suggests that knowledge management
has a positive influence on innovation, but there is limited
research on how knowledge mechanisms interact with
innovation processes.
• By further exploring this relationship, organizations can
develop more effective strategies for managing knowledge
to support innovation.
 Why Does It Matter?

Innovation relies heavily on the effective Knowledge management practices such Conversely, innovation can also
management of knowledge assets. as knowledge sharing platforms, contribute to knowledge creation and
Knowledge about market trends, communities of practice, and lessons accumulation. Through experimentation,
customer needs, technological learned repositories facilitate idea research, and development efforts,
advancements, and internal processes generation, collaboration, and learning organizations generate new insights and
fuels the innovation process. within organizations, thus fostering a expertise that can be captured and
culture of innovation. incorporated into the knowledge
management framework.
 Knowledge vs. Technology
What is technology? What is knowledge?
“The combination of human “Knowledge is a fluid mix of framed
understanding of natural laws and experience, values, contextual
phenomena accumulated since
ancient times to make things that information, and expert insight that
fulfil our needs and desires.” provide a framework for evaluating and
incorporating new experiences and
information.”
• Technique
• Knowledge ◼ Truth
• Organisation ◼ Believes
• Product (four closely-linked ◼ Perspectives
elements)
◼ Concepts
◼ Judgments
◼ Expectation
◼ Methodologies
◼ Know-how
 What Is Technology Transfer?

Flows of technological knowledge to market;

The movement of science and technology from one group
to another group;
The transfer of hardware objectives, traditionally;
It often involves information (e.g. a computer software
programme or a new idea);

“The transfer of systematic

knowledge for the manufacture
of a product or provision
of service.”
Work Regulation of United Nations
 A Basic
Model of
Technology
Transfer
Challenges
and Barriers
of Technology
Transfer
 Technology Theory Discover that sustainable

From transfer
and
practice
technology transfer cannot
happen without knowledge
transfer

Technology Discover that explicit

knowledge is easy to track but
Establish
importance of

Transfer to not only part of knowledge

transfer
tacit knowledge
transfer

Knowledge Develop model for improving tacit

knowledge transfer as it deliver
“Technology transfer does not
take place without knowledge
Transfer
the most competitive advantage
transfer, as knowledge is the
key to control technology
(Li-Hua, 2006)
as a whole.”
Categories of Tacit Knowledge

• Hard to pin down skills-”know how”

The skills that people need to repeatedly practice and feedback and get the feel for them.
• Mental models or schema
How we understand cause-effect connections and what meaning we give to events.
• Ways of approaching problems
Tacit knowledge underlines the decision trees people use.
• Organisational routine
Routine refers to regular and predictable behaviour patterns, including ways of producing
things, ways of hiring and firing personnel, ways of handling inventory, decision-making
procedures, advertising policy and R&D procedures, etc.
Relationship There are features of
knowledge transfer
High
between that appear to be
associated with levels

Knowledge
of economic
development. Certain
aspects of knowledge Medium

Transfer and transfer is paralleled

by the notional line of Economy
Economic economic
development.
Low

Development
Relationship (notional hypotheses) between knowledge transfer and economic growth
 Relationship “Knowledge transfer is not obtainable

between Transfer if there is too big gap in terms of

economic development between transferor

of Explicit and transferee.”

Knowledge and
Tacit Knowledge

Need for knowledge transfer

Need for tacit
knowledge
There is more demand
for tacit knowledge
transfer in well-
developed region while Need for explicit
there is more demand knowledge
for explicit knowledge
Levels of economic development
in less developed
Low Medium High
region.

Relationship (notional hypotheses) between tacit knowledge transfer and explicit knowledge transfer
 Knowledge Transfer Process
New knowledge is
unlikely to deliver its full Transferor
potential if it remains with
the originators in an
organization-it needs to be Knowledge
transferred to others.

Knowledge
Explicit Tacit
Channels
•Conferences •On the job training

Transfer Process •Meetings

•Seminars
•Telephonic communication
•Social occasions
•Training sessions •Chance meetings at work

Explicit Tacit

Knowledge

Transferee
Tacit Knowledge Transfer

• Knowledge, in particular tacit knowledge

that are the keys often to deliver the
sustainable competitive advantage because it
is this part that competitors have trouble in
replicating.
• To provide sustained competitive advantage,
we need tacit knowledge that is difficult for
outsiders to copy as well as the ability to
rapidly develop new knowledge.
Challenges in Implementing KM

Cultural Barriers • Overcoming resistance to sharing knowledge, which can stem from a
culture of hoarding information or lack of trust.

Technology • Ensuring that KM systems are effectively integrated with existing

Integration operational and technological systems without causing disruptions.

Quality of Knowledge • Maintaining the accuracy, relevance, and up-to-date status of the
knowledge within the system.

• Quantifying the return on investment (ROI) of KM initiatives can be

Measuring ROI challenging, making it difficult to justify the resources allocated to these
efforts.
Problem Area: Channel Blockage of Tacit Knowledge Transfer

Explicit No need to
Technique convert
Knowledge

Product Technology Knowledge Transfer

Tacit Need to
Organization convert
Knowledge

Channel blocked?
Un-blockage ?
IP strategy?
Tacit Knowledge Transfer Is Achievable if …

• At institutional level: A strong IP framework and appropriate IP strategy are essential in

achieving tacit knowledge transfer
• However, at personal level, the following elements are important:
• Trust and friendly relationship building
• Motivation of knowledge transfer
• Share a vision of future and develop a knowledge-sharing culture
• Be aware of motivators and barriers
• Think globally and act locally
• Effective and appropriate communication
• Cross-culture team building
• Deal with defensive mechanisms
Un-blockage of Tacit Knowledge
Transfer

• If technology transfer leverages the innovation

capacity building, however the blockage of tacit
knowledge transfer has to be properly addressed
• Strengthening IP framework and appropriate IP
strategy will
• accelerate the transfer of technology between the
developed and the developing and
• induce more technological innovation in the global
economy
• IP strategy channels smooth technology transfer
Strategies for Effective KM

Leadership Support • Securing commitment from top management to foster a culture that
values and promotes knowledge sharing and utilization.

User-Friendly Tools • Implementing intuitive and user-friendly KM tools that encourage

widespread adoption and use.

Training and • Providing training to employees on the importance of KM and how to use
Incentives KM tools, and creating incentive programs to reward knowledge sharing.

Continuous • Regularly reviewing and updating KM practices and tools to ensure they
meet the evolving needs of the organization and its technology
Improvement landscape.
Danke schön
Until next time
Meme Your Knowledge
Gap!
• Objective: Identify gaps in knowledge sharing within organizations
and how to solve them.
• Students create original and interesting memes that related to
knowledge management failures (e.g., communication gaps, outdated
procedures, inaccessible information) or operational settings.
• Students must accompany the meme with a short explanation
(tweet-sized).
• Email me today. The most creative yet insightful meme gets
highlighted.