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The following article emphasises on the eminent concepts that are understood as a part of this module. The main concept of knowledge management which is evident in almost all organisation is discusses is a wider perspective. Initially the articles highlights the essence of Knowledge Management (KM), Information Management (IM), the need for KM is an organisation, the transfer from IM to KM are discussed in a management perspective.
Going further the article is focuses on the case study of Celltech, the key concepts which were of high importance in the rejuvenation of the company from crisis with the new strategic methods that were carried out in the company by the ideas of Dr. Peter Fellner along with the new management team is also discussed. The main idea of the article the Information and the Knowledge management policy for Celltech which highlights the issues of the information environment, the knowledge of the organisation, the issues that are faced in the information policy development, the details of the information policy especially the macro contents and also the problems which are required to overcome in the implementation of the same is also discussed.
Knowledge Management: Meaning
Groff and Jones (2003, p2) states that "Knowledge management is taken as the tools, techniques and strategies to retain, analyze, organise, improve and share business expertise" (Groff & Jones, 2003)
Knowledge management is way in which the organisational goals can be achieved by means of paying particular attention to knowledge. The knowledge management involves the process of transferring data which is seen to be individual and apply them where ever necessary to attain organisational goal (Bornemann, Graggober, & etal, 2003) (p1)
Knowledge Management can also be understood as the process wherein which the tacit knowledge, that is the individual knowledge is changed in to explicit knowledge that can be shared among the organisation.
As said by Mr John Walton in the week III class of Business Intelligence, "Tacit knowledge is the one that is difficult to transfer to another person by writing down or verbalising it and Explicit knowledge is the one that can be articulated, codified or stored in a certain media that can be readily transmitted to others" (Walton, 2010).
The following figure shows the basic model of knowledge management system as cited by Bornmanne, Graggober (2003, p5)
KNOWLEDGE LEVELS - COMMUNICATION AND INTERACTIONS - KNOWLEDGE DOMAIN
Figure 1: Basic model of knowledge management (Bornemann, Graggober, & etal, 2003) (p5)
The knowledge management model as cited by Bornmanne, Graggober (2003, p5) is divided into three levels:
Knowledge level: At this level the individual knowledge of members and also contains their interactions with other members.
Data level: At the data level, knowledge is in the documented form which includes manuals, user guides etc.
Action level: The input for the action level is obtained from the data and knowledge level. It is at this level where the necessary processes are formulated in order to carry out the business efficiently.
In order to maintain the knowledge management the five processes that are used are:
(Bornemann, Graggober, & etal, 2003)
Difference between IM and KM:
As cited by Bouthillier and Shearer (2002), Information and knowledge are always moving around in an organisation and also the easiest way to differentiate between Knowledge management and Information management is to find the various stages involved in them (Bouthillier & Shearer, 2002).
Terra and Angeloni (2003, p 3) says that "From Management perspective the key difference between information and knowledge is that information is much more easily identified, organised and distributed. Knowledge on the other hand cannot be managed because it resided in one's mind" (Terra & Angeloni, 2003), hence it is found that KM has got a limitation of structures for a single person to learn , that can be applied in various forms to achieve the goal of the organisation (Terra & Angeloni, 2003)
KM /IM in an Organisation:
(Prusak, 2001) Says that KM is been widely used in large organisation. Also it is quoted that in the user perspective of the of IM is made available to KM. It's been noted that many organizations like the McKinsey and company, General Motors Corporation are making use of the knowledge management system in their organizations. (Prusak, 2001).
The knowledge can be utilized in all organisations so that achieve the goal that is need. As depicted in Figure 1, the knowledge management process can be implemented so to obtain leadership in the industry. Davenport and Prusak (1998 p 130) says about the key dimensions of Knowledge management tools. The following are the knowledge management tools -Constraint based, Expert systems, case based reasoning , knowledge component, web resources, notes and Neural networks (Davenport & Prusak, 1998).Hence these knowledge management tools can be incorporated in organization and achieve good knowledge management standards.
Introduction to Celltech:
Celltech was established in the year 1980. During the early years the company mainly concentrated on contract manufacturing which led to the dissatisfaction of the company's share holders. They wanted the company to concentrate in the process of research and development.
It was only after Dr. Peter Fellner who joined the company as CEO in 1990,a new strategy was implemented in which Celltech focussed on developing innovative drugs and research and development.
The Celltech Biologics which dealt with the contract manufacturing which was established in the year 1990 was sold in the year 1996 to and Swiss firm Alusuisse - Lonza, post which Celltech solely concentrated on research and development if innovative drugs. The market share increased and with quite a few drugs in clinical trials Celltech found a strong position in the UK financial market and also one of the world leaders in the Biotechnology and pharmaceutical sector
Overview of the Challenges for Celltech
Celltech concentrated on the contract manufacturing which indeed has a low market share and also did not seem to have a future in the biotech sector. This led to the dissatisfaction of the stakeholders they found there is no big return of investment in the contract manufacturing; also with the retirement of the CEO in 1989 Celltech was found to emerge in to the crisis world. Dr. Peter Fellner found the future of Celltech in research and development and the development of the innovative drugs which as highly accepted by the management team. The company was then divided into two - Celltech Biologics (deals with the contract manufacturing) and Celltech Therapeutics (deals with the drug development)
The major challenge at this time was the upliftment of the financial downfall. Peter Fellner's main interest was to discover a new drug and obtaining the patent right for the same. This also changed the strategic approach where they concentrated more on product oriented research. In order to achieve scientific capability inter- disciplinary teams were formed which emphasis more on how to converse and work side by side and also the hierarchical structure was converted into more flat structure by hiring new management team.
It is also to be noted that the company had its employees involved in learning new technology, the commitment and strong leadership by the senior management. Also the organisational structure was changed from the hierarchical to more flatter structure by the formation of well experienced inter-disciplinary teams which included chemists, researchers and talented scientists.
They started with the drug discovery for asthma, oncology and anti TNF. Celltech, from the shareholders point of view need to have a decent market capitalisation and market share, in order to achieve the same the had collaborations with major pharmaceutical companies like Merck, Zeneca and Schering - Plough and one such collaborator was Bayer, a leading pharmaceutical firm.
Bayer Collaboration could be considered as a turning point in the history of Celltech as it was able to grow financially stronger as Bayer paid more money to Celltech to carry out the clinical trials for CDP571.But in contrast Celltech was unsuccessful in the trial II for CDP571 which lead to the failure of the Celltech- Bayer Collaboration, but Celltech indeed could be referred to as an Learning organisation as we are able to infer a lot from the failure and success of the organisation (McNamara & Fuller, 1999)
Shared Goal Concentrate on Drug Innovation and increase R&D
Strategy Collaboration with major Pharmaceutical firms
Skills Contract manufacturing expertise and ability to invest in R&D
Figure 2: Mc Kinsey's 7S Applied to Celltech
Style Safe player, New strategic approach of the senior management team
Staff talented researchers & well experienced senior management team
Systems Review systems to maintain constant success
Structure Hierarchical to flatter structure
Figure 2 Shows the McKinsey's 7S applied to Celltech which clearly portraits the 7s that are required for an organisation in terms of achieving goals.
Shared Goal which is ideally is the vision of the company is to concentrate on the drug discovery and the increase the R&D practices which would make Celltech one of the successful pharmaceutical companies.
Strategy which Celltech followed was the collaboration that they had with major companies like Bayer
Skills of expertise in the contract manufacturing, along with the ability to invest in R&D.
Structure from the hierarchical one was flattened through forming interdisciplinary teams which included employees working together to achieve a shared vision.
Staff of Celltech was excellent team of researchers, scientist along with the experienced senior management team.
Systems like the research review systems, strategic review systems, Development review systems and annual review systems which assist the company to analyse the progress at each stage of the development process.
Style of Celltech is the new management team implementing the new strategy with innovative ideas; also Celltech is found to be a safe player with regards to the Collaborations with other firms.
By analysing the McKinsey's 7s strategic approach we find that Celltech has the required IM and KM skills that are essential for an excellent learning organisation.
Information and Knowledge Management Policy:
The IM and KM policy play a vital role in the success of a company as they portray various pros and cons in developing a new strategic plan which in turn helps the company to decide about the future progress.
The Knowledge management process in applied to Celltech. Namara and Fuller (1999) say that the history of Celltech from 1980 to 1998 can be divided in to four stages or phases.
Biologics Phase (1985-1990)
R&D phase (1990-1992)
The Collaboration Phase (1992-1996)
Post biologics phase(1996-1998)
(McNamara & Fuller, 1999)
While analyzing the core competences at the Biologics phase it's found that Celltech had expertise in the Contract manufacturing and biologics, and also they had a stability market. It's found that at the post biologics phase the core competences notices where they had collaborating skills which managed them to collaborate with major pharmaceutical companies like Bayer, they concentrated more on the development of the innovative drugs.
By analyzing the core competences of Celltech in the beginning and at the later stage we are able to find there is a rapid change in the strategic approaches in the organization which enables it to become an excellent learning organization.
Considering the information gained from the McKinsey's 7s and the core competences for Celltech the SECI-Ba approach can be used to convert the knowledge from Tacit to explicit. As per Nonaka et al (2000) Explicit Knowledge is referred as the knowledge can be defined as the knowledge that can be shared. This shared knowledge can be in the form of documents or in the form specifications that can be used by anyone in the organization, also the Tacit knowledge can be explained as the knowledge that is perceived by one own self, the tacit knowledge has more values, experience and also contain high end procedures. (Nonaka, Toyama, & Konno, 2000) .In general as said by Mr John Walton in the week III class of Business Intelligence, "Tacit knowledge is the one that is difficult to transfer to another person by writing down or verbalising it and Explicit knowledge is the one that can be articulated, codified or stored in a certain media that can be readily transmitted to others" (Walton, 2010)
Figure 3 Creating Knowledge with outside constituents (Nonaka, Toyama, & Konno, 2000)
Figure 3 shows how the knowledge is created with the outside constituents, where we find that the tacit knowledge is solely internal knowledge and the conversion of Tacit to explicit knowledge occurs only by externalization.
SECI Ba - General Overview
The Following figure depicts the SECI-Ba approach that has been formulated for Celltech
Figure 4 : SECI-BA analysis for Celltech
By applying the SECI- Ba approach to Celltech, it is found that from the McKinsey's 7s structure in figure1 the information that are required for the KM/IM policy is generated whereby using the SECI-Ba approach we can convert information that is gained into knowledge, where in turn using the SECI-Ba the knowledge conversion can be done.
The SECI Spiral of Knowledge as described by Nonaka et al (2000)
Tacit Individual Tacit Group (Socialization - leadership)
Tacit Group Explicit Group ( Externalization - agreeing)
Explicit Group Explicit Individual( Combination- teaching)
Explicit Individual Tacit Individual (Internalization - Accepting)
(Nonaka, Toyama, & Konno, 2000)
Detailed analysis of SECI-Ba for Celltech
As said by Nonaka et al (2000)
Socialization (Originating Ba): The tacit knowledge is converted by means of experiences. As discussed the formalization of this type of knowledge is difficult as it is time bound. The Tacit knowledge can be accomplished by meetings that can be organized within the organization. The Originating Ba is said by one to one interaction. (Nonaka, Toyama, & Konno, 2000). Celltech has informal meetings between the staff along with resource allocation to the staff within the organization. During the failure of the drug discovery, sharing of the experience has taken place to that it could of use in future.
Externalization (Dialoguing Ba): The tacit knowledge that is gained from the socialization is articulated into explicit knowledge, as said by Nonaka et al (p-9) "When tacit knowledge is made explicit knowledge is crystallized thus allowing it to be shared by others and it becomes basis of new knowledge" (Nonaka, Toyama, & Konno, 2000)(p-9). In the dialoguing Ba individual knowledge and skills are combined into one single concept. (Nonaka, Toyama, & Konno, 2000).Celltech organized inter-disciplinary teams for sharing the knowledge; also there were many discussions of the asthma projects that were carried out by Dr.Bloxham.
Combination (Systemizing Ba): Here the explicit knowledge that is gained from the externalization stage is converted in to more complicated explicit knowledge, the knowledge from all over the organization is formed into new set of knowledge which is combined totally and this knowledge is shared among all employees of the organization (Nonaka, Toyama, & Konno, 2000) . The results of the clinical trials were shared among collaborators of Celltech; the experimental knowledge was share by means of online resources and also through journals.
Internalization (Exercising Ba): The explicit knowledge that is gained in the combination stage is shared and again it is changed to tacit knowledge by individuals. Nonaka et al (2000) (p-10) says that "Internalization is closely related to Learning by doing" (Nonaka, Toyama, & Konno, 2000). Thus internalization can be carried out by documents, manuals etc which can be used by the employees for future reference. Also the exercising Ba emphasis the need for practices all the learning from other phased of the SECI-Ba. (Nonaka, Toyama, & Konno, 2000).Celltech was engaged in knowledge acquisition programs and therefore it's been applied in the day to day activities.
Thus the SECI-Ba frame work is used to convert the information that is gained from the McKinsey's 7s frame work to knowledge which is a combination of both the tacit and the explicit knowledge. But the main issue that is found at this stage is that for Celltech the most of the knowledge is in the form of tacit knowledge, where as in order to formulate the IM/KM policy for Celltech there needs to be a systems which can convert it into explicit knowledge. So in order formulate the key aspects of the IM/KM policy the Social Learning Cycle (Boisot, 1998) is used as a framework to proceed further.
Figure 5: Transformation of Information into knowledge between frameworks
Analysis for Celltech in the I-Space
The Social Learning Cycle- SLC (Boisot M. H., 1998) is used to develop this policy and it is also and an important framework through the rejuvenation for Celltech can be easily understood. Firstly the I-Space is analyzed based on the institutions as said by (Boisot M. , 2000)the insititutions in a firm can be classified as
Fiefs ( R&D)
Bureaucracies ( Production)
Markets ( sales)
Clans ( Strategy)
(Boisot M. , 2000)
Table 1: Institutions in I-Space (Boisot M. , 2000)(p-121)
Table 1 shows the various institutions in the I-space as discussed by (Boisot M. , 2000)(p-121) this gives clear ideas which ideally helps in analyzing the I-space for Celltech.
In order to carry out the I-Space analysis, Celltech is divided in to two phases for a better understanding: Celltech before rejuvenation and Celltech after rejuvenation.
At the beginning , when Celltech is analyzed before the rejuvenation it is found that the company revolved round the two institutions of Bureaucracies and markets which mainly focuses on the production and sales in an organization (Boisot M. , 2000). This is depicted in figure X the red eclipse shows clearly that Celltech concentrated mainly on production and sales before the rejuvenation period.
Figure 6: Institutions in I-Space firm level functions (Boisot M. , 2000) - Celltech before Rejuvenation
Contrastingly after the rejuvenation period they had adopted new strategies which helped Celltech to overcome the crisis situation, also the concentration was more on R&D of innovative drugs which gives an understanding that Celltech can be cited as a leaning organization, the following figure X1 depicts the social learning cycle for Celltech after rejuvenation. The red eclipse portrays that Celltech remarkably had all the institutions utilized for better prospects in the pharmaceutical industry.
Figure 7: Institutions in I-Space - firm level functions (Boisot M. , 2000) - Celltech after rejuvenation
SLC Analysis in the I-space for Celltech
The I-space analysis can further be narrowed down to a more definite perspective where the model can be analyzed by the various processes of the social learning cycle. The following are the various stages of the Social learning cycle as said by Bosoit (1998),
As said by Bosoit (1998) (p-59-61) are explained in detail
Scanning: The main objective of the scanning process is the identification of the threats and the various opportunities in an organization. Ideally at this stage the data that is available is in an uncodified structure. If the data is in a more formal structure that is if it is more codified the scanning process can be carried out at much faster rate. (Boisot M. H., 1998)(p59). Celltech also following the same strategy of analyzing the threats and opportunities that were prevailing with in the organisation
Problem Solving: At the problem solving stage the data is given a concrete framework in general it can be said as the data is codified at the problem solving phase. It is also to be noted that in case the problem solving is at the uncodified regions there are chances of more risk involved. (Boisot M. H., 1998) (p59). Celltech carried out the problem solving technique through the reconstruction of the biologics and also develop the therapeutic innovation.
Abstraction: The phase of abstraction involves the process of defining them in to more discrete features, which can be called generally referred to as conceptualization. It is also noted that the problem solving and the abstraction phase go hand in hand with each other (Boisot M. H., 1998)(p-60). Celltech tried to focus on five major projects that concentrated on the three main areas of Immunomodulation, oncology and Inflammation.
Diffusion: At the diffusion phase the sharing takes place, where the data that is well codified is shared among the people in an organization. There needs to be a mutual relationship between the person who is sending the data and the one who is receiving it. This ideally increases the rate at which the uncodifed date is diffused.
(Boisot M. H., 1998) (P-60&61). Celltech at this phase understood the need to collaborators and also the implementation of the new strategic plan that has to be put into action.
The following figure shows the Social learning Cycle in the I-space (Boisot M. H., 1998) (p60)
Figure 8: Social learning cycle in I-space (Boisot M. H., 1998) (p-60)
Absorption: The process in the which the codified data that is obtained in the diffusion phase is applied to as Bosoit (1998) (p-61) says "learning by doing or learning by using fashion" (Boisot M. H., 1998). There was inter-disciplinary learning among the teams.
Impacting: the process where combining of the knowledge is done. Combing the knowledge can be done in various ways like defining rules, practicing the rules etc. Also it is noted that the two phases of absorption and impacting work hand in hand (Boisot M. H., 1998) (p-61). Periodic reviews have been carried out through review systems like the research review systems, strategic review systems which assists in embedding knowledge into practices.
Further more to all the frameworks that have been discussed so far the Knowledge Management policy can be implemented using the knowledge management strategy that was formed by Earl (Earl, 2001), which assists the organisation to achieve the goals of the organisation.
The following diagram shows Earl's (2001) idea of formulating a knowledge management strategy.
1. KNOWLEDGE BUSINESS VISION?
2. BUSINESS PERFORMANCE GAP?
3. HOW COULD KNOWLEDGE MAKE DIFFERENCE?
4. ALTERNATE KNOWLEDGE MANAGEMENT INITIATIVES?
5. DEGREE OF FIT AND FEASIBLITY?
KNOWLEDGE MANAGEMENT PROGRAM?
Figure 9 : Formulation a Knowledge management Strategy (Earl, 2001)
Celltech can use this knowledge management strategy to achieve the organisational goal. The KM strategy as proposed by Earl (2001) gives us a radical thinking as to what are the questions that we need to answers while going through the process of the knowledge management. Here it is also noted that there are few areas where Celltech needs to have attention , which at present do not affect the operation of the company but certain issues which includes managing teams, conducting periodic assessments with the employees. This can be analyzed by other frameworks such as the SWOT analysis, PESTEL Analysis, Force field analysis, which also helps in developing an efficient knowledge management and information policy for Celltech. These frameworks have not been explained in detail as the attributes that pertain to these frameworks are prone to change on a timely basis for an organisation. Hence they are not discussed in this article. But the certain minor issue that has been identified within the company can be sorted out by using the frameworks.
Thus the policy is formulated by the experiences that have been gained by Celltech before and after the rejuvenation and also the efficient knowledge management strategies and the frameworks that have been discussed will help the company to manage the knowledge gained and help in the future endeavours.
The KM/IM policy for Celltech is given in this article from a management perspective. The various frameworks has been applied to the generate the policy in more efficient way. The module business intelligence helped in acquiring the skills required from business point of view. The various frameworks learnt in the module have been correlated with the Celltech organisation and the document has been formulated. Also with the works of many people like Nonaka Davenport, Prusak etc, the Policy document has been developed. Also it has given a chance to understand the various knowledge management concepts that can be incorporated to any organisation irrespective of the industry which they belong to .