Big Data, Tacit Knowledge and Organizational Competitiveness
Big Data, Tacit Knowledge and Organizational Competitiveness
54
ABSTRACT: In the process of conducting everyday business, organizations generate and gather a large number
of information about their customers, suppliers, competitors, processes, operations, routines and procedures.
They also capture communication data from mobile devices, instruments, tools, machines and transmissions.
Much of this data possesses an enormous amount of valuable knowledge, exploitation of which could yield
economic benefit. Many organizations are taking advantage of business analytics and intelligence solutions to
help them find new insights in their business processes and performance. For companies, however, it is still a
nascent area, and many of them understand that there are more knowledge and insights that can be
extracted from available big data using creativity, recombination and innovative methods, apply it to new
knowledge creation and produce substantial value. This has created a need for finding a suitable approach in
the firm’s big data related strategy. In this paper, the authors concur that big data is indeed a source of
firm’s competitive advantage and consider that it is essential to have the right combination of people, tool
and data along with management support and data‐oriented culture to gain competitiveness from big data.
However, the authors also argue that organizations should consider the knowledge hidden in the big data as
tacit knowledge and they should take advantage of the cumulative experience garnered by the companies
and studies done so far by the scholars in this sphere from knowledge management perspective. Based on this
idea, a big data oriented framework of organizational knowledge‐based strategy is proposed here.
KEYWORDS: Big data, tacit knowledge, big data strategy, knowledge management, knowledge strategies and
organizational knowledge
Opinion Section
55
allows creating insights and values that are not two sides of knowledge continuum (Nonaka and
possible to generate from smaller scale of same data Takeuchi, 1995). Explicit knowledge is the type of
(Jacobs, 2009). knowledge, which can be expressed using common
language and codes. It is fully transferable and easy
Douglas Laney (2001) of Gartner, while explaining to share (Nonaka, 1991). Tacit knowledge, on the
the challenges related to data growth noted that other hand, is subjective and informal (Polanyi,
there are three dimensions to this problem: 1958; Nonaka, 1995). Taking after Polanyi's view,
increasing amount of data – the growth of its the concept of tacit knowledge and its place in
volume, inflow and outflow speed of data – its organizational knowledge creation was largely
velocity and heterogeneity of the data types and popularized by Nonaka (1995) and defined as
sources – data variety, the three Vs. This has knowledge that indwells human mind and body
become the industry standard in characterizing big (Nonaka and Von Krogh, 2009). Many subjectivist
data. However, many argues that along with this scholars believe that tacit knowledge cannot be
model, value, veracity and variability also should articulated, captured or interpreted in any form as
be included as they are more important than the this type of knowledge gets developed and remains
attributes of 3Vs (Swoyer, 2012). embodied only in the human mind (See Tsoukas
2006). However, others conclude while some tacit
The concept of knowledge
knowledge is impossible to explicate, most tacit
Definition of knowledge in organizational science knowledge can be codified (Nonaka, 1995; Collins,
differs from the classical epistemological view of 2010).
knowledge as "justified true belief" (Nonaka and
We believe that reality exists independently from
Von Krogh, 2009). Despite its long history, the
the human mind and knowledge, including tacit
concept of knowledge is still subjective, complex
knowledge, can reside in various other silos apart
and opaque. As a result, we see numerous
from the human cognizance (Searle, 1993). Many
variations of definitions of knowledge depending
other scholars also support this notion. Walsh and
on discipline, context, approach and task at hand. In
Ungson (1991) posit that knowledge resides in five
a broader sense, and for the purpose of this article,
venues of an organization: people, roles and
knowledge can be defined as information that is
organizational structures, operating procedures and
validated, contextual, relevant and actionable
practices, culture, and the physical structure of the
(Soliman and Youssef, 2003). Another similar
workplace. Hershbach (1995) believes
definition is, knowledge is tested, validated and
Technological activities embody a larger portion of
codified information (Earl, 1994).
tacit knowledge than we normally recognize. Some
Scarbrough & Barrel (1996) propose the content researchers describe tacit knowledge as uncertain,
theory of knowledge, where knowledge is deemed unstructured, indeterminate, and indirect (See
as an object that can be codified and stored. This Kikoski and Kikoski, 2004) and others conclude
approach of objectification of knowledge brings tacit knowledge is the kind of knowledge which is
flexibility to the perception of knowledge. implied but not yet documented (Junnarkar and
Knowledge as an object can be acquired, integrated, Brown, 1988). These views support the idea that
stored and disseminated much like a commodity and knowledge, insights, patterns, indicators and
becomes a tradable product (Carlsson et al., 1996). pointers embedded in big data and waiting to be
In knowledge science knowledge is also considered extracted are a form of tacit knowledge.
as information with meaning, information is data
Knowledge management strategy
with context and data is a basic element of analysis
(Boisot, 1995). This concatenation of data, Organizational knowledge management strategy
information and knowledge is the most popular refers to planning and deployment of methods,
model of their correlation in knowledge and processes, procedures and guidelines of knowledge
information literature (Rowley, 2007). acquisition, organization, utilization and
distribution in order to achieve business goals.
Tacit knowledge
Knowledge being a valued resource, knowledge
Much of the theoretical understanding of tacit management strategy must be always aligned with
knowledge in knowledge science derives from the organization's business strategy (Eisenhardt and
Polanyi's concept of tacit and explicit knowing Santos, 2002). For example, focus of knowledge
(Polanyi, 1962). Tacit and explicit knowledge are management strategy can be the development of
intellectual capital using both knowledge
Opinion Section
57
it would require at the IT level specialists in cloud sense from big data. Business intelligence
architecture, Hadoop, MapReduce, Semantic Webs professional understands the business decisions
and number of other key areas. Vital to big data needs and capable of analyzing the big data in order
project are the holders of a new job title called data to divulge correlations, knowledge and insights.
scientist. Data scientists are necessary for making
of the big data projects initiated never get completed Metrics selection
(LaValle et al., 2011).
The criticism of financial performance based
Team building management style that does not accommodate
knowledge as one of the most valuable assets has
Because of the complex knowledge and skill set that been well documented (Meyer and Gupta, 1994).
are required for receiving effective results from a big Efforts have been made to develop performance
data project, it is necessary to organize the team measurement frameworks that are more
according to organization's business objectives. encompassing and comprehensive in relation to
The two most needed members of such a team are intangible assets (Epstein and Manzoni, 1997) and
a data scientist and a business analytics which in various degrees encapsulate knowledge
professional. Other members may include IT assets measurements (See for example: Edvinsson
specialists and workers from the business and Malone, 1997). Since, big data analytics don't
department most relevant to the data project. For impact on the revenue generation directly, the ROI
example, if the big data team is working on analysis metrics should include indirect benefits
finding a solution related to marketing, for best that emanate from the big data initiative.
result it has to incorporate people from the
marketing department as well (Ohlhorst, 2013). Plan implementation
Mistake will be to assign the team to IT
department. Analyzing information from a number In line with the strategic goals and expected
of large corporations, researchers found that while outcome, a firm needs to create and deploy a
IT departments are highly efficient in data storage roadmap of big data initiative. Along with setting
and protection, they are unable to offer solutions that objectives and milestones, selecting teams
can convert data into business value (Beath et al., members and developing proof of concept one
2012). More over, organizations that are endowed more important issue is to identify and obviate
with a large amount of big data, they have 70 stifles related to the specificity of big data
percent more chances of having business initiative environment. Big data fundamentally
intelligence projects initiated by the business differ from any other technology related projects. At
community rather than IT people (Rowe and White, one side, the team members work with the high
2012). velocity, high volume, high intensity and complex
data in a real‐time environment of discovery and
Technology selection innovation, but the insights and knowledge garnered
in this environment ultimately need to be aligned
Big data projects are complex systems requiring with traditional technology based environment of
various types of information technologies that data compliance, governance, security and
encompasses from storage to applications and perfunctory decision making. Organizations should
include data warehouse solutions, information and be aware that this coupling of the two different
data management, virtualization and visualization, environments might not go smoothly and may have
different analytical tools to name a few. These a negative impact on the implementation of a well
elements can be divided into three categories: developed plan.
Warehouse infrastructure, big data analytics
platforms and big data applications. Big data Outcome
analytics is not a recent phenomenon. Business
intelligence tools are getting used in business The big data generated by the organization's
decision making for more than several decades. business processes and operational activities,
What is new now is the explosive growth of data which include innovation and knowledge related
and capacity to store that data. The sudden activities, as well as employee's skill development,
popularity of big data can be attributed to the have all the potential to become instrumental to
new technological platforms that haveemerged developing competitive advantage. The big data
recently. They are capable of processing and base innovations are still in its infancy! Early
analyzing data in various structures outperforming signs from various large corporations, however,
traditional database technologies in massive scale. demonstrate the immense possibilities that are hold
Selection of needed technologies will depend on in the tacit knowledge hidden in big data.
the followings: data amount, speed of data flow,
Improved human capital
structure of data expected to be used, integration
requirement of the data, expected outcomes from the One of the fundamental elements of organizational
data analysis, users' need, costs, etc. intellectual capital is human capital (Edvinsson and
60
Sullivan, 1996). Stewart (1999) defines intellectual capturing new business opportunities thanks to
capital as a combination of intellectual elements that aggressive acquisition of external knowledge,
include knowledge, information, intellectual which in turn leads to better innovation, is a key
properties and experience that are applied to to firm's competitiveness (Zhou and Uhlaner,
generate wealth. The execution of big data projects 2009). Big data initiative develops a kind of
requires hiring new talents and developing new dynamic capability that contributes significantly to
professional skills among existing workers. The organizations knowledge base in respect to
experiences of the professionals developed in the knowledge repositories, employees' knowledge
process of big data project are indubitably valuable foundation and absorptive capacity.
assets. Their contribution to the creation of new
knowledge and innovative products, services and Conclusion
processes has a positive influence on the top and
In this paper, we have explored the idea that
bottom lines of an organization.
knowledge residing in the big data is indeed tacit
Innovation and in most of the cases open to explicability. Once
extracted this new knowledge can be transferred,
Most organizations understand that key to used and shared much like any other explicit
sustainable competitive advantage in today's knowledge. This new and unique knowledge has all
globalized and wired world is innovation. In fact, the potential of creating economic value for an
Innovation capabilities, arguably, are the most organization and bolster innovation, productivity
important determinant of firm's performance (Mone and growth. Thus, It is also a possible major
et. al., 1998). Big data is an enabler, a driver and a source of competitive advantage.
source of new products, processes, services,
strategies and business models (Manyika et al., We then proposed a big data centric knowledge
2011). Through big data capturing, aggregating, strategy framework that outlines requirements,
storing and analyzing companies from every processes and outcomes of a big data initiative that
industry and sector have the potential to reap aims at creating competitive advantage. We
benefits of innovation. Innovations originated and recommend consulting and adopting the strategy
spawned from big data can be divided into three framework prior to engaging in a big data project.
categories: The main limitation of this paper is, although, in
this paper we have delineated a strategy model that
Big data‐driven innovation: Innovation where big can be implemented in any organization, the concept
data is the primary material in the development of a is not validated by any empirical research. We
product, service, process or model. One example is suppose that study covering multiple industries on
high speed trading. the impact of this strategic framework is necessary to
identify its strength and weakness.
Big data enabled innovation: In an innovation
where big data works as a catalyst. Examples are: References
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