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KiKM - The Kaieteur Institute For Knowledge Management Toronto KM Cluster Fall 2003 Event The Real Time Knowledge EnterpriseThe Real Time Knowledge Enterprise e-KNOWLEDGE MARKETS their emergence and evolution their emergence and evolution Bryan Davis, President, The Kaieteur Institute for Knowledge Management

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KiKM - The Kaieteur Institute For Knowledge Management Abstract This presentation discusses the recent emergence and evolution of e- knowledge markets and exchanges. We review the types of e-knowledge markets that have emerged to-date and examine the real-world problems these structures are designed to help solve. We argue that there are powerful underlying trends that are driving continued innovation with these marketplaces which explains their persistence, variety, and ubiquity. We review the coming challenge of deploying e-knowledge marketplaces in support of the creation of the adaptive real-time enterprise. We also take a critical look at present short-comings and lack of maturity to-date. We pin- point weakness that need to be addressed if these knowledge exchange environments are going to live up to the tremendous transformational promise they hold.

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KiKM - The Kaieteur Institute For Knowledge Management e-Knowledge Markets As Enabling Infrastructure You cannot run on tracks you have not laid Stan Davis, Futurist

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KiKM - The Kaieteur Institute For Knowledge Management Knowledge Buyers, Sellers, and Brokers: The Political Economy of Knowledge Rapidly or slowly, usefully or unproductively, knowledge moves through organizations. It is exchanged, bought, bartered, found, generated, and applied to work. Organizational knowledge is dynamic: It is moved by a variety of forces. If we want knowledge to move and be used more effectively, we need to better understand the forces that drive it. We believe its movement is powered by market forces similar to those that animate markets for more tangible goods. There is a genuine market for knowledge in organizations.1 Like markets for goods and services, the knowledge market has buyers and sellers who negotiate to reach a mutually satisfactory price for the goods exchanged. It has brokers who bring buyers and sellers together and even some entrepreneurs who use their market knowledge to create internal power bases. Knowledge market transactions occur because all Laurence Prusak and Don Cohen 1997.

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KiKM - The Kaieteur Institute For Knowledge Management Knowledge Buyers, Sellers, and Brokers: The Political Economy of Knowledge of the participants believe that they will benefit from them in some particular way. In economists jargon, they expect the transactions to provide utility. People search for knowledge because they expect it to help them succeed in their work. Knowledge is the most sought-after remedy to uncertainty. We all try to reach knowledgeable people as soon as we are confronted with the need to deliver a solution to a problem. When we supply knowledge, we expect to benefit too. Cash is usually not involved in these transactions, but that should not disguise the fact that a market price system exists and payment is made or assumed. The knowledge market, like any other, can be defined as a system in which a scarce unit is exchanged for present or future value. Understanding that there are knowledge markets and that they operate similarly to other markets is essential to managing knowledge successfully in organizations. Many knowledge initiatives have been based on the utopian assumption that knowledge moves without friction or motivating force, that people will share knowledge with no concern for what they may gain or lose by doing so. Laurence Prusak and Don Cohen 1997.

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KiKM - The Kaieteur Institute For Knowledge Management SKs knowledge market helps power productivity SK Corp. has an online store that is open 24 hours a day, 365 days a year. When the market runs out of new stock, there is a sigh of frustration among the hundreds of people who visit the site each day. But the store is not a place where tangibles are for sale. It deals in the core precursors to goods knowledge and ideas. SKs knowledge marketplace opened in 1999, when SK introduced its Knowledge Management System, which is a depository for 140,000 pieces of information. The knowledge bank is open to all SK employees, who pay K-points to each other for data. But what began as an experiment to enhance worker productivity by widening the internal availability of the knowledge stream soon became an asset earning tens of billion of won for those who have valued information. In one case, SKs know-how in oil refining amassed over 40 years has been parlayed by company employees into a $16-million consulting contract with TOR, an Indonesian oil company. This is not an unusual case, the market is always full of company employees searching for information that will flatten the learning curve, saving those other valuable assets time and money. In another example, a member of Entrac, an SK development team, visited SKs knowledge marketplace to research terms for leasing software from an American firm. His experience demonstrates how the K market can be beneficial intellectually and monetarily. The Entrac member offered 50 K-points he had earned for the information. He received feedback from 5 people who had experience contracting with foreign firms and paid them equally. Kim Hyun-su, an official of Factory facility technology, launched as many products as 2,115. Yang Il-suk, a manager for the firms oil and chemicals division, holds the highest number of points -- 3,840, which are worth 384,000 won ($315). The points are taken into consideration on the performance evaluations and they can be converted to money and used at several shops and restaurants that participate in the program. Once a year SK awards 1 million won to the department or person who has sold the most products. A Knowledge Management Team manager said, The program has done much for increasing sales and activating the exchange of information. It has also bridged the communications gap between employees and managers. by Koh Yun-hee goman@joongang.co.kr 2003.03.10

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KiKM - The Kaieteur Institute For Knowledge Management e-Knowledge Markets As Wealth Enablers Knowledge Capital Intellectual Capital Structural Capital Customer Capital Social Capital Intangible Value Digital Capital the means of production are now the minds of the producers - Tapscott

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KiKM - The Kaieteur Institute For Knowledge Management Emergence Of e-Knowledge Markets Taxonomy Knowledge Auctions Knowledge Stores Knowledge Banks Q & A Exchanges Experts Exchange

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KiKM - The Kaieteur Institute For Knowledge Management Emergence Of e-Knowledge Markets Taxonomy e-Learning Exchanges Intellectual Property Idea Exchange Talent Exchanges Community Oriented or Social Capital Exchanges Exchanges Vertical Knowledge

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KiKM - The Kaieteur Institute For Knowledge Management What Problem Do They Solve ? Efficiently match supply and demand Connect seekers and providers Opens Channels 24 x 7x 365 Stimulates Innovation Enhances Flexibility Provide more accurate Performance signals

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KiKM - The Kaieteur Institute For Knowledge Management What Problems Do They Solve ? Enhances transparency Stimulates new value and wealth Creates structural capital Networks knowledge resources

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KiKM - The Kaieteur Institute For Knowledge Management The Tacit Knowledge Problem Unique properties of Knowledge Access to people and their ideas, and expertise Not all knowledge easily codified Trust Community context Peer rating feedback also important

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KiKM - The Kaieteur Institute For Knowledge Management Drivers & Trends Information Explosion Growth in Knowledge Economy Knowledge Work Knowledge Workers Free Agency Convergence of community, internet, and e-markets

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KiKM - The Kaieteur Institute For Knowledge Management Virtualization Of Markets 24x7x365 Electronic Communications Networks Example The arrival Of ECNS (electronic communications networks )

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KiKM - The Kaieteur Institute For Knowledge Management Markets For Everything Timeless Ubiquitous Organic Evolutionary Internet changes everything Arrival of e-Commerce ( Policy Analysis Market..???)

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KiKM - The Kaieteur Institute For Knowledge Management Why Not e-Bay For Ideas ? Trade Swap Exchange Auction Anytime Anywhere Globally

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KiKM - The Kaieteur Institute For Knowledge Management Enabling Technology New Engines Communications Search Question & Answer Digital Publishing Of Content Expertise Matching Auction e-Commerce Learning Management

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KiKM - The Kaieteur Institute For Knowledge Management Intellectual Property Steady Growth in patents and trademarks Licensing IP as part of smart Intellectual Asset Management Case Example: Yet2.com ( recently acquired by Scipher)

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KiKM - The Kaieteur Institute For Knowledge Management IP Marketplaces - Segments Technology Licensing Focused University Technology Licensing Invention oriented Government Supported Private Corporate Exchanges Free and Open Source Exchanges Idea Exchanges Vertical Or Industry Specific Legal IP Services

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KiKM - The Kaieteur Institute For Knowledge Management A Model e-Knowledge Market Registration Search & Navigatione-Commerce Community TrustContent Performance Visualization Service & Support Trading /Auction Engine Peer Rating System

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KiKM - The Kaieteur Institute For Knowledge Management Subscription Upfront Activation Seller Oriented Other RoyaltyUtilityFee For ServiceSyndicationFreeValue BasedLicensing SponsoredAdvertisingMembership Dues MerchantAuctioneerInvestor Equity BrokerTrust Agent IncubatorPay Per UseMicrocash Micropayments Business Model Innovation

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KiKM - The Kaieteur Institute For Knowledge Management Portal or Market Exchange Identity issue Strategy concern Portal vs knowledge market Divergent or complimentary ?

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KiKM - The Kaieteur Institute For Knowledge Management Ideas Exchange Ideas economy Tapping the global brain The old suggestion box on steroids Can be open source model Inside and outside game Always-on ever-net model Whats a good idea worth ?

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KiKM - The Kaieteur Institute For Knowledge Management Remote Services Marketplace $ 850b globally (acc. to McKinsey) Free Agents War For Talent Talent Retention Issue Case Example: e-Lance.com

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KiKM - The Kaieteur Institute For Knowledge Management Education & Learning $750b. Globally Demand For Continuous Learning Opportunity for providers Reach Opportunity Rich media will offer immersion and simulation experience Gaming industry a lesson

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KiKM - The Kaieteur Institute For Knowledge Management Community Oriented or Social Capital Exchanges Exchanges

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KiKM - The Kaieteur Institute For Knowledge Management Start-Up Failures To-Date Dot bomb Under-capitalization Lack Of Critical Mass Flawed Business Model Usability Lack of Community Yet, the idea lives on..

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KiKM - The Kaieteur Institute For Knowledge Management Adoption & Utilization Issues Diffusion of innovation Maturity Stability Critical Mass Experience Standards, Conventions, & Rules Change Management Disruption

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KiKM - The Kaieteur Institute For Knowledge Management A Scenario Example In which an IP, Idea Exchange, Experts Exchange, Learning Marketplace, Question & Answer Exchange, and Talent Exchange are implemented

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KiKM - The Kaieteur Institute For Knowledge Management Scenario Exercise Some Lessons To be Learned: Integration challenge Politics of ownership Contrast with existing intranets and portal models Community readiness Trust Linking inside and outside the enterpise

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KiKM - The Kaieteur Institute For Knowledge Management It Takes A Village It takes a village to make A Mall Community precedes Commerce Achieving a critical mass of users Attracting attention Designing a positive user Experience

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KiKM - The Kaieteur Institute For Knowledge Management Rules, Standards, & Conventions Trust Security Changing roles and responsibilities Adherence To Fundamental Principles: fair exchange Market is a network Confidence from clear rules and good Governance Less friction more exchange

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KiKM - The Kaieteur Institute For Knowledge Management Other Lessons The rule of law Standards, Protocols, Conventions Critical Mass Improvements to the user interface Understanding the science of networks

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KiKM - The Kaieteur Institute For Knowledge Management THE EMERGING SCIENCE OF NETWORKS Small Worlds Six Degrees We Are All Connected Complexity & Self-Organization Emergence A Common Architecture & Pattern To Networks Book Reference : Linked: The New Science of Networks b y Albert-Lsl Barabsi http://www.nd.edu/~networks/linked/ http://www.nd.edu/~networks/linked/

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KiKM - The Kaieteur Institute For Knowledge Management KEY NETWORK PRINCIPLES The principle of self-similarity ( same fractal pattern throughout) The principle of network phase transitions ( tipping points ) The principle of preferential attachment ( the rich get richer..) Importance of Hubs and being connected to Hubs

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KiKM - The Kaieteur Institute For Knowledge Management Protein Network Neural Network Synaptic Network City Network Topographic Network Tree Network Small World Network Patterns

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KiKM - The Kaieteur Institute For Knowledge Management Internet Connections Network Electricity Grid Network Airline Hub & Spoke Network Transportation Network River Network Energy Pipeline Network Small World Network Patterns

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KiKM - The Kaieteur Institute For Knowledge Management THE INTERNET Hyper-linking Of Docs On The Web A Metaphor For Emerging Enterprise Architecture Everything Becomes Networked Everything Is CONNECTED to everything else. Mark Buchanan, a physicist and science writer, reports on the emerging science of how networks operate : identical in their architecture Social networks turn out to be identical in their architecture to the World Wide Web the network of web pages connected by hypertext links. Book: Nexus: Small Worlds and the Groundbreaking Science of Networks

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KiKM - The Kaieteur Institute For Knowledge Management Making 1+1=11 In the knowledge economy, the whole can be many times greater than the sum of the parts Leif Edvinsson http://www.corporatelongitude.com

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KiKM - The Kaieteur Institute For Knowledge Management Structural Capital Formation Generation of new knowledge capital A system of dynamic valuation Enhanced metrics as interactions flow through the system Greater reach, agility, and responsiveness The knowledge marketplace will become a prime instrument for creating structural capital

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KiKM - The Kaieteur Institute For Knowledge Management New Trends Wireless enabled exchange Implicit vs Explicit B2C; B2B; B2E; E2E.. Business Model Innovation

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KiKM - The Kaieteur Institute For Knowledge Management Conclusion In my view, the knowledge exchange marketplace has a pivotal role to play in the formation and development of a Real Time Adaptive Enterprise Thank You !! Contact Information : Bryan Davis :bdavis@kikm.orgbdavis@kikm.org

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KiKM - The Kaieteur Institute For Knowledge Management Virtual Tour Of Emerging Examples In The Legal Vertical

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KiKM - The Kaieteur Institute For Knowledge Management

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