Presentation that combines KM, Innovation Cluster, Portals and Communities of Practice and also presents a Brazilian case where all these concepts were applied to Research Institutes
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Economic Clusters 2003 Dr. Terra
1. Promoting Information Technology for
Industrial Trade Facilitations - UNIDO
Strengthening Economic Clusters
and Value Chains through the
development of Knowledge Portals
Dr. José Cláudio C. Terra
Damascus, October 20, 2003
2. Strengthening Economic Clusters and Value Chains
through the development of Knowledge Portals
The purpose of this presentation (paper) is to
establish the conceptual bases for the
development of a knowledge portal applied to a
generic economic cluster and value chain and to
report the initial results of a few Communities
of Practice developed across a number of
different Research Institutes in Brazil.
www.terraforum.com.br page 2
3. But, first…
…a bit of background
www.terraforum.com.br page 3
7. Distance:
Approximately
4.000 Km
www.terraforum.com.br page 7
8. STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Next steps & expectations
www.terraforum.com.br page 8
9. STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Next steps & expectations
Final Considerations
www.terraforum.com.br page 9
10. Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
Clusters Economics Knowledge Management
- Linkages - Identification, Generation,
Organization and Dissemination of
- Informal learning networks
Information
- Collaboration and Competition
- Tacit and Explicit Knowledge
- Common Resources
- Communities
- International Ambition
- E-learning
- Linkages with Academia and
- Intangible Assets
Government
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
www.terraforum.com.br page 10
11. Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
Clusters Economics Knowledge Management
- Linkages - Identification, Generation,
Organization and Dissemination of
- Informal learning networks
Information
- Collaboration and Competition
- Tacit and Explicit Knowledge
- Common Resources
- Communities
- International Ambition
- E-learning
- Linkages with Academia and
- Intangible Assets
Government
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
www.terraforum.com.br page 11
12. Some theoretical foundation (1)
Michael Porter, in his famous book
The Competitive Advantage of Nations,
called attention to the atmosphere of
learning, cooperation and high
competition existing in micro-regions.
www.terraforum.com.br page 12
13. Some theoretical foundation (2)
Anna Lee Saxenian related the
development of Silicon Valley, starting
with the informal flows and networks of
collaboration and knowledge among
enterprises, universities and government
Source: Saxenian, A., Regional Advantage: Culture and Competition in Silicon Valley and
Route 128, Harvard University Press, 1996
www.terraforum.com.br page 13
14. Some theoretical foundation (3)
The Japanese kairetsus and the just-in-
time methods of production, initially
developed by Toyota, have spread
throughout the world and have as one of
their bases a very high level of cooperation
and exchange of information among
enterprises in the productive chain.
www.terraforum.com.br page 14
15. Some theoretical foundation (4)
In Europe, there are already reports that speak of a new
corporate structure: the “syndicates of companies”,
that is, associations of small and medium companies,
which do not compete against each other and which are co-
proprietors of “cooperatives” which assume responsibility
for activities in common , such as: marketing,
distribution, entry into foreign markets, licensing of
technology, etc.
Source: The Economist, Will the corporation survive? November 1st, 2001
www.terraforum.com.br page 15
16. Some theoretical foundation (5)
“Research looking at knowledge networks between SMEs
in Australia showed that even when there was adoption of
networked technologies to allow connectivity between the
companies, the potential for knowledge exchange was
highly dependent on the level of trust. Similar work on
SME collaboration in Asia showed that information
sharing and learning was based on the prior existence of
trust and an atmosphere of continued trust building.”
Source: Braun, P., Digital knowledge networks: Linking communities of practice with innovation. Journal of
Business Strategies, 2002. 19(1): p. 43-54., in: Inter-Organizational Communities of Practice
by C. van Winkelen
www.terraforum.com.br page 16
17. Some theoretical foundation (6)
“Collaboration is: “a cooperative, inter-organizational
relationship that relies on neither market nor hierarchical
mechanisms of control but is instead negotiated in an
ongoing communicative process”
Source: Lawrence, T., N. Philips, and C. Hardy, Watching whale watching. Exploring the discursive foundations of
collaborative relationships. Journal of Applied Behavioural Science, 1999. 35(4): p. 479-502. in: Inter-Organizational
Communities of Practice by C. van Winkelen
www.terraforum.com.br page 17
18. Some theoretical foundation (7)
Government Government
Government
Academia Industry
Academia Industry Academia Industry
Triple Helix I Triple Helix II Triple Helix III
ETZKOWITZ, H. e LEYDESDORFF, L. - The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix
of university-industry-government relations. In: Research Policy, v. 29, n. 2, pp. 109-123, fevereiro 2000., in: Plonski, G.A., Public
Oral Examination as part of its candidacy to Full Professor at Business School at the University of São Paulo, July 16, 2003
www.terraforum.com.br page 18
19. Some theoretical foundation (8)
“The network is the enterprise”
Manuel Castells
www.terraforum.com.br page 19
20. Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
Clusters Economics Knowledge Management
- Linkages - Identification, Generation,
Organization and Dissemination of
- Informal learning networks
Information
- Collaboration and Competition
- Tacit and Explicit Knowledge
- Common Resources
- Communities
- International Ambition
- E-learning
- Linkages with Academia and
- Intangible Assets
Government
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
www.terraforum.com.br page 20
21. Knowledge Management
In the mid-nineties, Knowledge Management
emerged as a discipline and a formalized
organizational function, initially in private
enterprises and, a little later, in government
offices and state-owned enterprises and in
supranational entities, such as The World Bank
and the United Nations.
www.terraforum.com.br page 21
24. Typical Knowledge Management Objectives
Acceleration of the generation of new knowledge with competitive value:
Increased collaboration among employees;
Facilitation of employee access to the sources of training (on-line and
off-line), information and knowledge;
Supply of personalized information just-in-time (dealing with information
overload);
Preservation and Protection of the intellectual capital existing in the
company;
Leveraging of the knowledge existing in the company and in the external
environment to better serve the customers;
Improvement of the decision-making process at all levels of the company
(management, production and on the front line);
Reduction of costs and of re-working:
Don’t reinvent the wheel; and
Avoid activities which add little value.
www.terraforum.com.br page 24
25. KM Initiatives in Governments from OECD countries
Broad Definition of KM
Organisational arrangements (decentralisation of authority, opening up
bureaucratic divisions, use of information and communication
technologies etc.);
Personnel development (mentoring and training practices, mobility etc.)
and management of skills;
Transfer of competencies (databases of staff competencies, outlines of
good work practices, etc.);
Managerial changes and incentives for staff to share knowledge (staff
performance assessment and promotion linked to knowledge sharing,
evolution of the role of managers, etc.).
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
www.terraforum.com.br page 25
26. KM Initiatives in Governments from OECD countries
Good knowledge/information management is one of the top five internal priorities of your
organisation
44.8
45
40
35
30 26.1
25 21.7
20
15
10 5.8
5
0
Yes No, but it will certainly No, but it will probably No
become a priority in the become a priority in the
next 2 ye longer run
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
www.terraforum.com.br page 26
27. KM Initiatives in Governments from OECD countries
Efforts made at improving KM
(increasing with higher score on the indicator)
22
Swe Group 1
20
Group 2
Fin
18 Kor Can Ice
Nor Eng
Fra
16 Irl US Den
Hun Slo Ger
Group 3 Gre
14
Pol Bel
12 Por
10
8 10 12 14 16 18 20
,
Perception of level and quality of KM practices organisational and cultural change
(improving with higher score on the indicator)
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
www.terraforum.com.br page 27
28. KM Initiatives in Governments from OECD countries
Efforts made at improving KM
(increasing with higher score on the indicator)
19
Group 1 Finance
18 Group 2
Labour Trade & Industry
17 Prime Minister's Justice
Health /Social Office
16 Group 3 Affairs Economy Foreign
Affairs
Interior
15 Education
State
14 Reform/Public
Administration
13
13 14 15 16 17
Perception of level and quality of KM practices, organisational and cultural change
(improving with higher score on the indicator)
Source: KM Practices in 140 government organizations )Ministires/Departments/Agencies of Central Government), OECD, GOV/PUMA
(2003)1, 27th Session of the Public Management Committee, 3-4 April, 2003
www.terraforum.com.br page 28
29. Conceptual Model: Synergy of Concepts between
Clusters, Knowledge Management and Corporate Portals
Clusters Economics Knowledge Management
- Linkages - Identification, Generation,
Organization and Dissemination of
- Informal learning networks
Information
- Collaboration and Competition
- Tacit and Explicit Knowledge
- Common Resources
- Communities
- International Ambition
- E-learning
- Linkages with Academia and
- Intangible Assets
Government
Corporate Portals
- Single Point of Access
- Ubiquity and ease of use
- Open and closed communities
- Access and Publication
- Collaboration
www.terraforum.com.br page 29
30. Areas of a Knowledge Portal for Strengthening an
Economic Cluster Productive Chain
Information Flows;
Collaboration;
Training of Personnel;
Business Generation;
Promotion of Innovation; and
Optimization of Resources.
www.terraforum.com.br page 30
31. I - Information Flows (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Provide broad access to The portal can serve as an information
source for all organizations:
updated, relevant Various kinds of reports and market
information focused on studies are not normally accessible to most
the productive chain companies;
In certain cases, companies lack the
financial resources to acquire the reports;
in others, the companies do not even know
the reports exist;
It is also possible, via the portal, to reach
a large enough scale to look for and
organize widely-available data.
www.terraforum.com.br page 31
32. I - Information Flows (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Collect information from It’spossible, via the portal, to establish
quite simple and automatic mechanisms
the companies to for data collection from the companies.
execute and rapidly This not only permits reductions of cost,
update sectoral studies but also of time required to carry out
research and industry diagnoses.
One can also think about creating
innovative indicators of the evolution of
the industry’s intellectual capital.
www.terraforum.com.br page 32
33. II - Collaboration (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote information The portal can use various tools which
permit the virtual exchange of information
exchange and (discussion forums, chats, etc.) and also
collaboration among the decentralized publication of the
contents by the companies participating in
companies in the the cluster.
productive chain Stimulate the development of “Practice
Communities” involving persons from
diverse companies.
These may include information about the
company itself, as well as a description of
projects in progress.
It’s also possible to consider areas such
as “Urgent Questions”.
www.terraforum.com.br page 33
34. II - Collaboration (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote interchange The portal may be designed to provide
quite specific information so that,
between the private especially small businesses, have
sector and knowledge instantaneous access to governmental
reports (e.g., trade missions) and
sources in the public academic information (e.g., lists of experts
sector and academia and national and international laboratories
relevant to the sector).
Persons from academia, research
institutes and government may also utilize
the portal to monitor the companies’
activities, projects and needs.
www.terraforum.com.br page 34
35. III – Training of Personnel (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Centralize and reduce On-line training modules may be made
available to all the companies.
the cost by on-line
There’s a clear reduction in the individual
training costs of licensing and development of the
courses.
Increases are evident in the speed of
dissemination of new concepts.
Divulge opportunities for The portal may have an area for the
divulgation of recommended opportunities
off-line training for training offered by third parties.
www.terraforum.com.br page 35
36. III – Training of Personnel (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Create a more efficient The portal may become a reference
centre for work opportunities.
job market The liquidity and the “oxygenation” of the
market are increased.
Elements of confidentiality must be
introduced in order to assure the
adherence of the companies.
Promote greater use of The very opportunity to utilize the portal
may become an important incentive for a
information technology more intense use of IT
and Internet tools Courses in IT are ideal for training via the
Internet.
Special conditions for acquiring
computers could be offered to participating
small businesses.
www.terraforum.com.br page 36
37. IV – Business Generation (1)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote opportunities Mechanisms so that companies may
promote their commercial interests and
for business between find partners within and outside the cluster
companies is quite interesting.
The promotion of the formation of
temporary and/or permanent consortia
may be facilitated by e-project tools.
Promote local companies The portal may help to divulge the
products and services of the cluster and
globally also for the quick localization of and
contact with the companies.
If translated to the English language, the
portal could serve as an excellent
marketing tool and help develop
international business.
www.terraforum.com.br page 37
38. IV – Business Generation (2)
OBJECTIVES OF THE PORTAL MOTIVATION
Promote electronic Tools which permit the rapid
configuration of e-business may be made
trading available on the portal.
The tools may be pre-negotiated and
adapted to meet the needs of the
productive chain.
Auction-like electronic markets may also
be established.
www.terraforum.com.br page 38
39. V – Promotion of Innovation
OBJECTIVES OF THE PORTAL MOTIVATION
Promote success stories The portal may be utilized to describe
success stories among cluster companies.
These kinds of stories are known to incite
innovative behaviour.
Disseminate technical The faster diffusion of technical norms
has a positive impact on the productive
norms quality.
www.terraforum.com.br page 39
40. VI – Optimization of Resources
OBJECTIVES OF THE PORTAL MOTIVATION
Map and optimize the Just as multinationals do it internally, the
industry portal may enable associated
utilization of the companies to “rent” some of their idle
productive resources of resources.
the productive chain A market may also be created for trading
competencies and intellectual capacity.
Provide common The portal may be utilized to automate
the providing of electronic services (e.g.,
services to all the travel reservations, accounting, etc.).
companies
www.terraforum.com.br page 40
41. STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
www.terraforum.com.br page 41
42. The Context (1)
Association of Research Institutes (ABIPTI)
125 member organizations
Lobbying
Benchmarking
Training
Publications
www.terraforum.com.br page 42
43. Distance:
Location of Approximately
participating 2,500 miles
organizations
www.terraforum.com.br page 43
44. The Context (2)
15 Research Institutes are selected (best
managed & top performers)
From small (300 researchers) to large
organizations (3000 researchers)
From very focused (e.g. agriculture, oil, nuclear)
to very diversified research institutes
From private foundations (few) to government-
owned (States and Federal)
www.terraforum.com.br page 44
45. STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
www.terraforum.com.br page 45
46. The Project (1)
The Goal: Bring KM
concepts and practice to 15
selected Research Institutes
www.terraforum.com.br page 46
47. The Project (2)
A Knowledge Portal was developed with key functionalities
to support the development of Communities of Practice:
Knowledge Bases;
Members’ Directory;
Content and Document Management;
Advanced Search;
Events Management;
Alert and Subscription Tools, Forums, Personalization, etc).
www.terraforum.com.br page 47
48. The Project (3)
The initial focus on the development of Communities
of Practice across all organizations aimed at rapidly
achieving tangible results and, therefore, also
fostering the development of KM initiatives within
each one of the fifteen research institutes. An
important consideration in the choice of Communities
of Practice was the fact that these institutes had very
different technological capabilities and interests.
www.terraforum.com.br page 48
49. The Project (4)
Possible Domains for the Communities of Practice
Generic Domains related to the management skills and techniques of research institutes
Management of Intellectual Property;
Quality Management;
Technology Forecasting and Monitoring;
Client Relationship Management (CRM);
Scientific Domains that may involve a number of institutes but not all of them
Environment;
Design;
Chemistry;
Food quality.
National themes domains defined by the Federal Government’s Industrial Policies
Support to Exports;
Support to Small and Medium Enterprises.
www.terraforum.com.br page 49
50. The Project (5)
Selection of CoPs to get started…
Three CoPs were selected: Management & Commercialization of Intellectual Property
and Quality Management, and “Geological Risks”. These topics were chosen for the
following reasons:
There was enough critical mass both in terms of available digital content, as
well as interested and qualified personnel;
They are well-defined domains and are non-proprietary in nature;
They are topics that can engage and motivate wide participation;
They are strategic topics with a wide gap between the top and bottom
performers;
A core group that had a sense of a Community were identified;
A few experts that could help with valuable initial content were also identified;
These are topics that are directly related to the services provided to the clients
of these research institutes;
These communities can rapidly expand to include personnel from other types of
organizations (industry, government and universities, etc).
www.terraforum.com.br page 50
52. The Project (6)
Training Project Seek Foster Roll-out
in KM Plan Support CoPs Portal
200 Develop a Get CEOs Face-to- Start with
researchers strategy: to meet and face meeting good content
were trained CoPs are discuss KM
Invite Launch
throughout chosen
Show experts event
Brazil
Develop Benchmarks
Hire Train users
horizontal
Show dedicated
and focused
prototype moderators
CoPs
Use free
Choose
web-base tool
Technology
platform
www.terraforum.com.br page 52
53. STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
www.terraforum.com.br page 53
54. Early Results
KM goals are fairly well-understood at senior
management levels
Greater understanding of skills, competencies and
methods used by different Institutes in the domains
supported by CoPs
Some tips, ideas, and documents have been exchanged
A core group of researchers that have embraced CoPs
and KM
Demand for building many other CoPs
www.terraforum.com.br page 54
55. STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
www.terraforum.com.br page 55
56. Lessons Learned
Do not underestimate the need for fostering social
contact – (Latin culture???)
Definition of a domain and then taxonomy is critical
Find leaders and “cool people”!!
Technology is not that important…changing mindset
is huge!
Attention to IT skills of involved personnel
Use a PULL strategy…not a PUSH strategy
Attention to the ENERGY!!
www.terraforum.com.br page 56
57. STRUCTURE OF THIS PRESENTATION
Some theoretical foundation
The context
The project
Early results
Lessons learned
Final Considerations
www.terraforum.com.br page 57
58. Final Considerations (1)
Just as is the case when applying portals to
Knowledge Management in large privately-
owned companies, the main challenge is not
technological. There are several strategic,
operational and organizational elements that
are critical to the success of such initiatives.
www.terraforum.com.br page 58
59. Final Considerations (2)
The initiative described here is significant in its ambition.
Its success may have a profound impact on how Brazil
integrates the considerable amount of knowledge that is
available in this very large country, but that is currently
very much dispersed. Geographical isolation is no longer a
viable option for any organization or even country.
Individuals and organizations now seek information and
knowledge regardless of their location.
www.terraforum.com.br page 59
60. Final Considerations (3)
These kinds of initiatives are of particular importance to
developing countries. Such countries do not have the
resources of most multinationals that are developing their
own internal knowledge portals and leveraging knowledge
from all over the world. The route for inter-organizational
collaboration through knowledge portals is not an easy
route, but one that is very promising. Indeed, it is probably
a necessity to compete in the Knowledge Era.
www.terraforum.com.br page 60
61. Thank You!
Dr. José Cláudio Terra
jcterra@terraforum.com.br
www.terraforum.com.br
www.terraforum.com.br page 61