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421 672 Management Of Technological Enterprises (2008 Lecture 2)


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421 672 Management Of Technological Enterprises (2008 Lecture 2)

  1. 1. 421-672 Management of Technological Enterprises Managing Knowledge in Technological Enterprises (II) – Knowledge Engineering in the Organisation William P. (Bill) Hall (PhD) Evolutionary Biology of Species and Organizations Ex Documentation and KM Systems Analyst Head Office Tenix Group Williamstown, Vic. 3016 National Fellow Australian Centre for Science, Innovation and Society Melbourne University Uni Office: ICT 3.67, 111 Barry St., Carlton Phone: +61 3 8344 1488 (Thurs-Fri) Email: [email_address] 1 April 2008 People Process Infrastructure Organizational knowledge Leave one of the legs off, and the stool will fall over
  2. 2. What are organisations? <ul><li>A level of complexity in a hierarchically complex world </li></ul><ul><li>Stanley Salthe (1993) Development and Evolution: Complexity and Change in Biology </li></ul>ORGANISATION — People, Machines — Living Cells, Parts <ul><li>Emergent </li></ul><ul><li>properties </li></ul><ul><li>Synthesis cannot predict higher level properties </li></ul><ul><li>B ehaviour is uncomputable </li></ul><ul><li>Boundary conditions & constraints select </li></ul><ul><li>Analysis can explain </li></ul>
  3. 3. The organisation is a self-sustaining complex system in the environment <ul><li>Processes (which may be complex subsystems in their own rights) are necessary responses to imperatives: </li></ul><ul><ul><li>Survival </li></ul></ul><ul><ul><li>Self-maintenance of the processes themselves </li></ul></ul>Constraints and boundaries (laws of nature determine what is possible) The organisation's imperatives and goals Hall, W.P. 2006 Emergence and growth of knowledge and diversity in hierarchically complex living systems .
  4. 4. Where can knowledge be found? <ul><li>Popper's three worlds </li></ul>Energy Thermodynamics Physics Chemistry Biochemistry Cybernetic self-regulation Cognition Consciousness Heredity Recorded thought Expressed language Computer memory Logical artifacts Reproduction/Production Development/Recall Drive/Enable Regulate/Control Inferred logic Describe/Predict Test Observe Existence/Reality World 1 World 3 The world of explicit/ objective knowledge Produced / evaluated by world 2 processes World 2 World of mental or psychological states and processes, subjective experiences Emerges from world 1 processes. Tacit organismic/personal knowledge Polanyi's epistemology of personal knowledge encompassed within Popper's World 2
  5. 5. What kinds of knowledge exist in a complex hierarchy? <ul><li>Tacit knowledge (= Popper's dispositional knowledge) </li></ul><ul><ul><li>Humans - Personal propensities or capabilities to behave or perform in certain ways that cannot readily be expressed in words: experience, natural talent, unconscious knowledge, etc. </li></ul></ul><ul><ul><li>Organisations - structure of networks formed by members of the organization, electronic networks, computational apparatus, production lines, organisational routines, and the physical layout, capabilities and etc., ( Nelson and Winter 1982) . </li></ul></ul><ul><li>Implicit knowledge </li></ul><ul><ul><li>Humans - personal knowledge that can be expressed linguistically </li></ul></ul><ul><ul><li>Organisations - Some undocumented personal knowledge held by individuals relates to organisational roles rather than to the person's life and activities independent from the organisation. </li></ul></ul>
  6. 6. What kinds of knowledge exist in a complex hierarchy? <ul><li>Explicit knowledge </li></ul><ul><ul><li>Humans - linguistically articulated knowledge preserved and disseminated for intersubjective understanding and criticism in the form of discussions, books, papers, on-line articles etc. </li></ul></ul><ul><ul><li>Organisations </li></ul></ul><ul><ul><ul><li>Explicit knowledge produced by individual humans for organizations they belong to that conveys meaning that is important to the functioning of the organizational entity, but has little or no relevance to the individual person in isolation </li></ul></ul></ul><ul><ul><ul><li>Explicit forms of knowledge stored in computer memories and disseminated electronically to effect actions (e.g., regulatory instructions in a continuous flow chemical plant, instructions for numerically controlled tools in a robotically controlled assembly line, etc.). May be automatically produced without human involvement </li></ul></ul></ul>
  7. 7. Individual knowledge in the organization <ul><li>Important difference </li></ul><ul><ul><li>individual knowledge (in any form), known only by a person </li></ul></ul><ul><ul><li>organizational knowledge is (socially) available and accessible to those who can apply it for organizational needs </li></ul></ul><ul><ul><li>E ven where explicit knowledge exists , individual knowledge may be required to access it within a useful response time. </li></ul></ul><ul><li>Individual knowledge addresses questions like: </li></ul><ul><ul><li>who has the tacit capabilities and experience to perform a task </li></ul></ul><ul><ul><li>what knowledge is needed </li></ul></ul><ul><ul><li>where explicit knowledge may be found </li></ul></ul><ul><ul><li>why the knowledge is important or why it was created </li></ul></ul><ul><ul><li>when the knowledge was or may be needed </li></ul></ul><ul><ul><li>how to apply the knowledge. </li></ul></ul><ul><li>T o improve organizational OODA performance a way is needed to rapidly find and coordinate people who have appropriate individual knowledge but don't know the problem exists. </li></ul>
  8. 8. &quot;Living knowledge“ : source of organisational knowledge Vines, R., Hall, W.P., Naismith L. 2007. Exploring the foundations of organisational knowledge: An emergent synthesis grounded in thinking related to evolutionary biology . actKM Conference, Australian National University, Canberra, 23-24 October 2007.
  9. 9. The organization may know less than its members <ul><li>Organizational knowledge is more than the sum of the knowledge of the organization's individual members, but people with their individual knowledge count </li></ul><ul><li>People have lives outside their local organizational circumstances ( ' boundaryless careers ') Arthur 1994) </li></ul><ul><li>People know a lot the organization doesn't </li></ul><ul><ul><li>T acit ( Polanyi 1958, 1966) skills and understandings that cannot readily be expressed in words; </li></ul></ul><ul><ul><li>I mplicit knowledge the person can articulate and which could readily be shared if anyone knew to ask for it ( Snowden 2000 , 2002 ) </li></ul></ul><ul><ul><li>E xplicit documents and other tangible resources the individual may know about but that are not generally known about in the organization. </li></ul></ul><ul><li>Social cooperation coordinates individual knowledge for organizational purposes </li></ul><ul><ul><li>Explicit knowledge becomes common knowledge as awareness spreads </li></ul></ul><ul><ul><li>Common knowledge becomes formal knowledge when reviewed, approved and signed off </li></ul></ul>
  10. 10. Cycling between W2 and W3 to build personal knowledge
  11. 11. Building organisational knowledge
  12. 12. Building and maintaining an adaptive KM architecture to meet organisational imperatives DRIVERS ENABLERS & IMPEDIMENTS PEOPLE PROCESS STRATEGY DEVELOPMENT STRATEGIC REQUIREMENTS OBSERVATION OF CONTEXT & RESULTS ORIENTATION & DECISION ENACTED STRATEGY <ul><li>In competition </li></ul><ul><li>Win more contracts </li></ul><ul><li>Perform better on contracts won </li></ul><ul><li>Minimise losses to risks and liabilities </li></ul><ul><li>Meet statutory and regulatory requirements </li></ul><ul><li>Operational Excellence </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Stakeholder intimacy </li></ul><ul><li>Service delivery </li></ul><ul><li>Growth </li></ul><ul><li>Sustainability </li></ul><ul><li>Profitability </li></ul><ul><li>Risk mitigation </li></ul><ul><li>Knowledge audit </li></ul><ul><li>Knowledge mapping </li></ul><ul><li>Business disciplines </li></ul><ul><li>Technology & systems </li></ul><ul><li>Information disciplines </li></ul><ul><li>Incentives & disincentives </li></ul><ul><li>Etc. </li></ul><ul><li>Internal / external communication </li></ul><ul><li>Taxonomies </li></ul><ul><li>Searching & retrieval </li></ul><ul><li>Business process analysis & reengineering </li></ul><ul><li>Tracking and monitoring </li></ul><ul><li>Intelligence gathering </li></ul><ul><li>QA / QC </li></ul><ul><li>Strategic management </li></ul><ul><li>Architectural role </li></ul><ul><li>Communities of Practice </li></ul><ul><li>Corporate communications </li></ul><ul><li>HR practices </li></ul><ul><li>Competitive intelligence </li></ul><ul><li>IT strategy </li></ul><ul><li>Etc. </li></ul>… ITERATION …
  13. 13. Team Expertise Knowledge Mapping (TEAM) Susu Nousala 2006; PhD RMIT Eng (submitted) <ul><li>Nousala, S., Miles, A., Kilpatrick, B., Hall, W.P. 2005. Building knowledge sharing communities using team expertise access maps (TEAM) . Proceedings, KMAP05 Knowledge Management in Asia Pacific Wellington, N.Z. 28-29 November 2005. </li></ul><ul><li>Nousala, S. 2005. PhD Thesis . RMIT University </li></ul><ul><li>K nowledge pertinent to organizational survival may exist in world 2 and world 3 in a variety of forms. </li></ul><ul><ul><li>Knowledge held individually by people belonging to the organization </li></ul></ul><ul><ul><li>T acit organizational routines belonging to internal communities (i.e., CoPs) that may be autopoietic in their own rights </li></ul></ul><ul><ul><li>P hysical layout ( Nelson and Winter 1982) </li></ul></ul><ul><ul><li>Corporate documentation </li></ul></ul><ul><li>To respond rationally to imperatives and perturbations </li></ul><ul><ul><li>I dentify, access , assemble and use relevant knowledge </li></ul></ul><ul><ul><li>O rganizational resources and time available to do it are limited </li></ul></ul><ul><li>Effective o rgani z ational response is bounded by these limitations </li></ul><ul><li>TEAM study focuses on individual knowledge </li></ul>
  14. 14. Knowledge mapping <ul><li>Codification of knowledge vs pointing to people who have knowledge </li></ul><ul><ul><li>Snowden's paradoxes </li></ul></ul><ul><ul><ul><li>know more than we can say </li></ul></ul></ul><ul><ul><ul><li>say more than we can write </li></ul></ul></ul><ul><ul><ul><li>knowledge will be volunteered but cannot be conscripted </li></ul></ul></ul><ul><ul><li>Availability of the knowledge is more important than its form </li></ul></ul><ul><li>Mind mapping was originally a brainstorming tool to help codify </li></ul><ul><ul><li>Offers flexibility </li></ul></ul><ul><ul><li>Substantial textual annotation capabilities </li></ul></ul><ul><ul><li>Linking </li></ul></ul><ul><li>Used to facilitate social coordination of individual knowledge </li></ul><ul><ul><li>Socialization in the interview process </li></ul></ul><ul><ul><ul><li>People happy to share career successes and war stories </li></ul></ul></ul><ul><ul><li>Socialization in the search and retrieve process </li></ul></ul><ul><ul><ul><li>Experts introduced as people with rich stores of experience </li></ul></ul></ul>
  15. 15. L. Greiner 1998. Evolution and revolution as organizations grow. Harvard Business Review May-June 1998 creativity direction delegation coordination collaboration leadership autonomy control red tape -???- AGE OF ORGANISATION SIZE OF ORGANISATION Small Young Large Old organisatioal revolution evolutionary growth
  16. 16. Organisational knowledge in world 3 managing engineering content <ul><li>Persistent objects of corporate knowledge </li></ul><ul><ul><li>Articles of incorporation & employment agreements </li></ul></ul><ul><ul><li>Contracts </li></ul></ul><ul><ul><li>E-mails & correspondence </li></ul></ul><ul><ul><li>Graphics and drawings </li></ul></ul><ul><ul><li>Plans, records, process & procedure documents </li></ul></ul><ul><ul><li>Enacted workflow systems </li></ul></ul><ul><ul><li>Written history </li></ul></ul><ul><ul><li>Links & captured contexts </li></ul></ul><ul><ul><li>Databases </li></ul></ul><ul><ul><li>AV recordings </li></ul></ul><ul><li>World 3 comprises the bulk of organizational memory or heredity = &quot;content&quot; </li></ul>
  17. 17. Configuration and knowledge management architecture goals for a large project <ul><li>Product and textual data are structured and are managed as content (SGML/XML) </li></ul><ul><li>Production mgmt data is transactional and is managed as records and fields </li></ul><ul><li>Goal is to manage all project data within a single configuration management umbrella </li></ul> RFT Capability requirements Documentation requirements Link element to component Manage elements Manage design activities Manage documentation activities MRP / PRODUCTION MGMT • MBOM • Production planning • Production schedule • Procurement • Warehousing • Establish & release workorders Project Schedule HRM Accounting CS 2 PRODUCT MODELS ( structured designs ) MODELS / BOMs: • Component definitions • Component hierarchies - System - Physical structural - Availability OBJECTS MANAGED • Drawings • Parts lists • Configurations • Component metadata DOCUMENT MODELS ( structured documents ) MODELS: • Element definitions - Content - Attributes • Element hierarchies • Element sequences OUTPUT OBJECTS • Contract/subcontract documents • Procedures/instructions • Deliverable documents • All other controlled documents COMMON REQUIREMENTS • Config control / Change mgmt - Develop/Author - Release - Effectivity • Workflow management - Configuration changes - Document changes - Other business objects • Track and control source data LSA tools LSAR database EBOM EBOM Catalogue Drawings
  18. 18. Managing contractual knowledge • 20 - 50 year lifecycle Project A Design Study Review, edit, signoff Negotiate Review, negotiate, amend Project A Prime Contract RFT and Bid Review, edit, signoff Project A Bid Documents RFQs Bids Negotiations Project A Subcontracts Review, negotiate, amend Project A Procedures, Design Docs Review, edit, signoff Project A Support Documents Project B Design Study Review, edit, signoff Project B Design Study Review, edit, signoff Project B Design Study Review, edit, signoff Operational experience
  19. 19. Streamline bidding documentation funnel <ul><li>Huge task </li></ul><ul><ul><li>Uses production resources </li></ul></ul><ul><ul><li>Don’t reinvent knowledge </li></ul></ul><ul><li>Conflicting views of time </li></ul><ul><ul><li>Supplier: crushing deadline </li></ul></ul><ul><ul><li>Client: inordinate delay </li></ul></ul><ul><li>Word processing friction </li></ul><ul><ul><li>multiplies task magnitude </li></ul></ul><ul><ul><li>wastes resources & time </li></ul></ul><ul><ul><li>major source of delay </li></ul></ul><ul><li>Delay generates crisis </li></ul><ul><ul><li>disorientation </li></ul></ul><ul><ul><li>panic </li></ul></ul><ul><ul><li>error </li></ul></ul>
  20. 20. Prime contractor production/mgmt issues <ul><li>Effective contract management critical to business </li></ul><ul><li>Prime contractor multiplies all process inefficiencies many times over! </li></ul><ul><ul><li>Customer presents wants, supplier must offer solutions </li></ul></ul><ul><ul><li>Tender won must pay for all lost tenders (  5 to 10 ) </li></ul></ul><ul><ul><li>Contract flows down to many subcontracts (  10 to 100 ) </li></ul></ul><ul><ul><li>Comparatively unskilled authors (  2 ) </li></ul></ul><ul><li>Client pays for all suppliers’ inefficiencies! </li></ul>
  21. 21. Exari Pty Ltd <ul><li>Independent software developer, Queen St., Melbourne </li></ul><ul><ul><li>http:// </li></ul></ul><ul><li>Significant relationships </li></ul><ul><ul><li>Oasis eContracts WG </li></ul></ul><ul><ul><li>CCH Australia/Wolters Kluwer Pacific </li></ul></ul><ul><li>SmartPrecedent </li></ul><ul><ul><li>XML based precedent management and intelligent authoring system </li></ul></ul><ul><ul><li>Round trip between XML and RTF </li></ul></ul><ul><ul><li>Based on a DTD for the structural hierarchy of contractual documents </li></ul></ul>
  22. 22. Document Assembly - defined Document assembly is the process by which an instance document is produced from a template document. Exari™ Software TEMPLATE DOCUMENT INSTANCE DOCUMENT A template document is a document which may contain certain blanks and pieces of optional text. It captures what is common, and what may differ, between a set of similar instance documents. An instance document is a document created to meet a particular need in some transaction. Input from a person or database is required in order to fill in the blanks and choose between the optional texts.
  23. 23. issues and frustrations – keeping things up-to-date the maintenance monster <ul><li>clauses copied across hundreds of documents </li></ul><ul><li>dependent on technical support for updating </li></ul><ul><li>hard to get end user feedback </li></ul>LOTS OF COPIES TO UPDATE ONE C LAUSE Exari™ Software
  24. 24. S trategies and solutions – easier maintenance shared clause libraries CLAUSE CLAUSE CLAUSE CLAUSE CLAUSE BOILERPLATE CLAUSE CLAUSE CLAUSE COMMON CONTRACT CONTRACT CONTRACT update boilerplate & other common clauses in one place <ul><li>LESS DEPENDENCE ON TECHNICAL SUPPORT AND CODING SKILLS </li></ul><ul><li>IMPROVED CAPTURE OF FEEDBACK & SUGGESTIONS FOR IMPROVEMENT </li></ul>Exari™ Software
  25. 25. CONCLUSIONS <ul><li>Electronic content management is revolutionary technology that is reinventing the nature of humanity (to say nothing of organizations). </li></ul><ul><ul><li>(Barring differences in the language of expression) one person can access the persistent memory our our entire species for specific knowledge </li></ul></ul><ul><ul><ul><li>I use Google many times every day when I want to know something </li></ul></ul></ul><ul><ul><ul><li>Google can do it in milliseconds! </li></ul></ul></ul><ul><ul><ul><li>ISI's Web of Science is better for more specific and detailed knowledge - searches may take minutes and you may still have to resort to paper (economic issues not technical ones) </li></ul></ul></ul><ul><ul><li>An increasing number of cognitive processes are already automated and many more are in the process </li></ul></ul><ul><ul><ul><li>Indexing </li></ul></ul></ul><ul><ul><ul><li>Semantic retrieval </li></ul></ul></ul><ul><ul><ul><li>Alerts </li></ul></ul></ul><ul><li>The revolution may be essentially complete within my own lifetime. It will affect everything we do and are as humans. </li></ul>
  26. 26. Tenix/Navy architecture developed in Melbourne for managing ANZAC Ship support knowledge DESIGN / ENG PRODUCT DATA MANAGEMENT • Product Model • CAD / Drawing Mgmt • Config Mgmt • Eng Change • Workflow Process Control • Doco Revision & Release DOCO CONTENT MANAGEMENT DOCUMENT AUTHORING LSAR DATABASE LOGISTIC ANALYSIS TOOLS (prime) PRODUCT CONFIG MANAGEMENT • Product Model • Drawing Mgmt • Config Mgmt • Change Request • Workflow Process Control • Doco Revision & Release MAINTENANCE MANAGEMENT • Schedule • Resource Reqs • Procedures • Completion • Downtime • Resource Usage RECORDING REPORTING ANALYSIS TOOLS (prime) MRP SYSTEM • Plan • Fabricate • Assemble SUPPLY SYSTEM change request config change doco change ECO change effected doco change order released doco change config changes EC / doco change request maintenance history doco server Analysis & optimisation orders receipts change task doco change shared systems? data change & Release UPDATE MAINT DATA / PROCEDURE UPDATE CONFIG Navy Systems Crossbow Validates and i ntegrates data across 15 legacy systems TeraText Content management AMPS Navy's maint mgmt CSARS Provides corrective feedback from AMPS into supplier's knowledge development activities
  27. 27. Some of our vehicle jobs (Another country in the region recently procured around 100 new LAVs for approx. $600 M) <ul><li>The Australian Army M113A1s were originally brought into service during the early 1960’s. </li></ul><ul><li>The purpose of the M113 Upgrade Contract is to improve protection, mobility, communications and firepower. </li></ul><ul><li>Tenix is turning 350 &quot;well used&quot; hulls into new state-of-the-art vehicles with totally new technical data packs for a contract value of $A 391 M. </li></ul>M113A1 &quot;Upgrade“
  28. 28. The M113 challange <ul><li>Coherently manage all data and documents required to support the M113 fleet through life </li></ul><ul><ul><li>Engineering data (well known solutions for this) </li></ul></ul><ul><ul><li>Technical data and publication content </li></ul></ul>7 variants ~25 builds 350 vehicles
  29. 29. This is what the revolution looks like now! MRP = Mfg. Resource Planning CAD = Computer Aided Design LORA = Level of Repair Analysis RAM = Reliability & Maintainability LSA = Logistic Support Analysis
  30. 30. CMIS was conceived as an &quot;umbrella&quot; system <ul><li>Single user interface </li></ul><ul><li>Data normalization applies to all project data and document components from the start </li></ul><ul><li>Common workflow management environment </li></ul><ul><li>Single point: </li></ul><ul><ul><li>electronic signoff </li></ul></ul><ul><ul><li>engineering change management and tracking </li></ul></ul><ul><ul><li>cost and schedule control </li></ul></ul><ul><li>The umbrella covers everything! </li></ul>
  31. 31. CMIS Overview <ul><li>CMIS provides primary user interface </li></ul><ul><li>Two major modules </li></ul><ul><ul><li>PDM – product data manager – Matrix10 </li></ul></ul><ul><ul><ul><li>Configuration management </li></ul></ul></ul><ul><ul><ul><li>Workflow process </li></ul></ul></ul><ul><ul><ul><li>Object management </li></ul></ul></ul><ul><ul><li>Content Manager – RMIT developed TeraText </li></ul></ul><ul><ul><ul><li>Authoring activities delegated from Matrix10 </li></ul></ul></ul><ul><ul><ul><li>Configuration management of elements within documents </li></ul></ul></ul><ul><ul><ul><li>Paragraph management </li></ul></ul></ul><ul><ul><ul><li>Authoring in S1000D - deliver any required structured/ unstructured format </li></ul></ul></ul>
  32. 32. Content Management in the M113 Upgrade Users Manual This is section 1 of the document This is the Work File System Chapter Section Document PDF Fragment Fragment Graphic Storage and Dis/assembly Rules WEB Protocol Save Edit
  33. 33. The cost/benefit equation for content management vs DMS Implementation Initial document set Proliferation of configurations In-service maintenance Cost Time Traditional DMS Note: CMIS cost is for first project only. New CMS
  34. 34. Knowledge Based Improvement of Business Processes Dalmaris - PhD 2006 UTS <ul><li>Developed in a framework of Popperian epistemology </li></ul><ul><ul><li>three worlds </li></ul></ul><ul><ul><li>evolutionary theory of knowledge </li></ul></ul><ul><li>An &quot;organizational learning&quot; method </li></ul>Fundamental assumptions about knowledge Explicit specification of the concept of “Business Process” A guide to the improvement process Improvement methodology components Auditing and analysis tools facilitate process improvement tasks Dalmaris, P., Tsui, E., Hall, W.P., Smith, B. 2007. A Framework for the improvement of knowledge-intensive business processes . Business Process Management Journal. 13(2): 279-305 Dalmaris, P. 2005. PhD Thesis . University of Technology Sydney P e r f o r m a n c e E v a l u a t i o n P e r f o r m a n c e A n a l y s i s P r o c e s s M o d e l l i n g I m p r o v e m e n t S y n t h e s i s P r o c e s s A u d i t i n g IMPROVEMENT METHODOLOGY PROCESS ONTOLOGY EPISTEMOLOGY TOOLS
  35. 35. Evolutionary improvement of the methodology <ul><li>Evolutionary improvement of the methodology </li></ul><ul><ul><li>Problem formulation </li></ul></ul><ul><ul><li>Reaching the solution </li></ul></ul>Literature Review Case 1 Case 2 Case 3 Error reduction Problem Re - Formulation Tentative Theory Re - formulation Tentative Theory Formulation ( Framework ) Problem Formulation
  36. 36. The current state of the methodology <ul><li>Observe </li></ul><ul><ul><li>Establish business ontology </li></ul></ul><ul><ul><li>'As is'audit </li></ul></ul><ul><li>Orient </li></ul><ul><ul><li>Map, analyze, synthesize </li></ul></ul><ul><li>Decide </li></ul><ul><ul><li>Present 'as could' </li></ul></ul><ul><li>Implement </li></ul>