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Presented by Laurie FezeuPresented by Laurie Fezeu Undergraduate in Management information Undergraduate in Management information

systemssystems

Research that Reinvents Research that Reinvents the corporationthe corporation

By By John Seely BrownJohn Seely Brown

Former director of Xerox PARCFormer director of Xerox PARC

Published in Jan. 1991Published in Jan. 1991

OutlineOutline

► The new invention / CorporationThe new invention / Corporation► Technology Gets Out Of The Way Technology Gets Out Of The Way ► Harvesting Local InnovationHarvesting Local Innovation► Coproducing Innovation Coproducing Innovation ► Innovating with the CustomerInnovating with the Customer

The new invention / The new invention / corporationcorporation

“ “The most important invention that will come The most important invention that will come out of the corporate research lab in the out of the corporate research lab in the future will be the corporation itself ”.future will be the corporation itself ”.

Why?Why? The Xerox experience suggests that future The Xerox experience suggests that future

research success will be enhanced by first research success will be enhanced by first understanding how Xerox employees really understanding how Xerox employees really work and what customers’ real needs are, work and what customers’ real needs are, and then innovating accordingly.and then innovating accordingly.

Technology get out the wayTechnology get out the way

►The new research approach views The new research approach views technology differentlytechnology differently

►Because computing costs is decreasing:Because computing costs is decreasing: 1- More electronic technology incorporated in office devices1- More electronic technology incorporated in office devices

2- Users adapt technology to their specific needs2- Users adapt technology to their specific needs

These 2 trends result paradoxically in These 2 trends result paradoxically in technology that is so powerful that it is technology that is so powerful that it is invisible.( Technology get out of the way)invisible.( Technology get out of the way)

Technology get out the Technology get out the way….way….

PhotocopierPhotocopier► After 50 years the technology of photocopier After 50 years the technology of photocopier

has not changed much .has not changed much . ► Today transformation of the copiers with IT:Today transformation of the copiers with IT: - complex computing and - complex computing and

communications devices communications devices -easy to use with IS providing information -easy to use with IS providing information

linked to specific task linked to specific task

► Remote interactive Communication: RICRemote interactive Communication: RIC

RICRIC - New standard features on high end copiersNew standard features on high end copiers- System inside the copier that monitor System inside the copier that monitor

information technologyinformation technology- Predict when machine will next break down Predict when machine will next break down

using artificial intelligence techniques.using artificial intelligence techniques.- Branch office computer analyses the Branch office computer analyses the

problem and it will be fixed before the problem and it will be fixed before the expected time of failure.expected time of failure.

The purpose of this RIC is to show how the invisible technology to the user The purpose of this RIC is to show how the invisible technology to the user has transformed the copierhas transformed the copier

Harvesting local InnovationHarvesting local Innovation Organization must designing information Organization must designing information

system to support the way people really worksystem to support the way people really work Ideas generated in the course of work are lostIdeas generated in the course of work are lost PARC Anthropologist :PARC Anthropologist : -Lucy Suchman studies accounting clerks-Lucy Suchman studies accounting clerks She has discovered that people improvise their own She has discovered that people improvise their own

way to get their job done versus following formal way to get their job done versus following formal procedure which they learned via training or a job procedure which they learned via training or a job procedural manual. procedural manual.

-Tech – reps story-Tech – reps story

-Customized user-system program (CUSP)-Customized user-system program (CUSP)

Harvesting local Innovation…Harvesting local Innovation…

CUSP( customized user-system CUSP( customized user-system Program)Program)

►Programming languageProgramming language► It allows user to modify the system It allows user to modify the system

themselves. themselves. ►Design and program system to fit Design and program system to fit

office setting office setting

Co producing InnovationCo producing Innovation

Portray not just technology but also Portray not just technology but also technology “in use”.technology “in use”.

- - ”How do we communicate fresh insights about ”How do we communicate fresh insights about familiar problems so that others can grasp their familiar problems so that others can grasp their significance”?significance”?

- - Don’t just tell people about the new insight Don’t just tell people about the new insight - - Get them to experience it.Get them to experience it.

Old WayOld Way: Research Dept. comes up with innovation in : Research Dept. comes up with innovation in isolation, and then “dumps” it on people.isolation, and then “dumps” it on people.

New WayNew Way: Research Dept. interacts with other Depts. : Research Dept. interacts with other Depts. Both gain more accurate assessment of problem, Both gain more accurate assessment of problem, and come up with solution that works in other Deptsand come up with solution that works in other Depts

Coproduction InnovationCoproduction Innovation

Research can’t just produce innovation Research can’t just produce innovation it must “coproduce” it. it must “coproduce” it.

The video of the “Unfinished DocumentThe video of the “Unfinished Document””

Researchers showed Top Management a Video of a Researchers showed Top Management a Video of a preliminary research idea.preliminary research idea.

Top Management brainstormed in how this new Top Management brainstormed in how this new technology might be used, before the product was technology might be used, before the product was ever even developed.ever even developed.

Researchers used those insights to actually translate Researchers used those insights to actually translate the prelim. Research idea into a more effective final the prelim. Research idea into a more effective final productproduct

Coproducing InnovationCoproducing Innovation

►Conceptual envisioning environmentConceptual envisioning environment

►Researchers must co-produce new Researchers must co-produce new technologies and work practices by technologies and work practices by developing with partners throughout developing with partners throughout the organization a shared the organization a shared understanding of why these understanding of why these innovations are importantinnovations are important

Innovation with the customerInnovation with the customer

►Coproduction needs to be done outside Coproduction needs to be done outside the organization, not just within it.the organization, not just within it.

►Customization of technology.Customization of technology.►Coproducing products with customers – Coproducing products with customers –

customers may be unaware of their customers may be unaware of their need, and product may not yet exist.need, and product may not yet exist.

► Express projectExpress project Express project – where Syntex company sent reps to study Express project – where Syntex company sent reps to study

Xerox’s technology in process of being developed, while Xerox’s technology in process of being developed, while Xerox sents reps. to study Syntex’s business needs.Xerox sents reps. to study Syntex’s business needs.

► The Forms of Receptionist SystemThe Forms of Receptionist System

PARC: Seedbed of the Computer PARC: Seedbed of the Computer RevolutionRevolution

Revolutionized computer in 1970.Revolutionized computer in 1970.►Bit map Bit map ((Screen with easy-- to –use graphics Screen with easy-- to –use graphics

and interfaceand interface))

►LAN LAN (for distributed computing)(for distributed computing)

►Overlapping Screen windowsOverlapping Screen windows►Point and click Point and click ((using a mouseusing a mouse))

►Small talk Small talk ((11stst object-oriented programming object-oriented programming languagelanguage))

►Laser printing prototype in 1973Laser printing prototype in 1973

How Xerox Redesigned Its How Xerox Redesigned Its CopiersCopiers

► Increasing call for complaints in early Increasing call for complaints in early 1980’s1980’s

►Copier design problemCopier design problem►Not really a machine failureNot really a machine failure►Convincing the technology designersConvincing the technology designers►No more flip cardsNo more flip cards►Display panelDisplay panel►Dramatic change in resultsDramatic change in results

ConclusionConclusion

In the information-based economy we live in In the information-based economy we live in today, research on new work structures is as today, research on new work structures is as important than research on new products. important than research on new products.

The successful company of the future must The successful company of the future must understand how people really work and how understand how people really work and how technology can help them work more technology can help them work more effectively.effectively.

Managing Professional Managing Professional Intellect—Intellect—

Making the most of the Making the most of the bestbest

James Brian QuinnJames Brian Quinn

Philip Anderson Philip Anderson

Sydney FinkelsteinSydney Finkelstein

Published April,1996Published April,1996

OutlineOutline

► A Corporation’ SuccessA Corporation’ Success►What is Professional Intellect?What is Professional Intellect?► Developing Professional IntellectDeveloping Professional Intellect► Leveraging Professional Intellect.Leveraging Professional Intellect.► Inverting Organizations.Inverting Organizations.► Creating Intellectual Webs.Creating Intellectual Webs.

A Corporation' success A Corporation' success

► The Capacity of a company leader to find ways The Capacity of a company leader to find ways to nurture, develop, and utilize the intellectual to nurture, develop, and utilize the intellectual capabilities of the people at all levels of their capabilities of the people at all levels of their organization organization

► It has more to do with “working It has more to do with “working smarter” (producing better products and smarter” (producing better products and services) than with “working harder” services) than with “working harder”

► In spite of this, little attention is being In spite of this, little attention is being paid to the subject of developing and paid to the subject of developing and utilizing professional intellect.utilizing professional intellect.

What is Professional Intellect? What is Professional Intellect?

The Crucial Challenge of Managing Professional Intellect The Crucial Challenge of Managing Professional Intellect in today’s organization:in today’s organization:

► In the industrial-based economy of yesterday, In the industrial-based economy of yesterday, professionals more or less stayed professionals more or less stayed withinwithin their their discipline discipline

► In the information-based, rapidly In the information-based, rapidly technologically advancing economy of today, technologically advancing economy of today, professionals also need to know how to work professionals also need to know how to work creatively creatively betweenbetween disciplines in order to be disciplines in order to be competitive (i.e., they need to develop the competitive (i.e., they need to develop the third and fourth levels of professional intellect: third and fourth levels of professional intellect: know why and care why)!know why and care why)!

Four Levels of Four Levels of Professional IntellectProfessional Intellect

► Cognitive knowledgeCognitive knowledge (know what)(know what) – or “book – or “book learning”.learning”.

► Advanced skillsAdvanced skills (know how)(know how) - or “translating - or “translating book learning into action” in the completion of book learning into action” in the completion of one’s own job.one’s own job.

► Systems understandingSystems understanding (know why)(know why) – or – or “knowing how one’s job, contributes to the success “knowing how one’s job, contributes to the success or total output of the entire organization”.or total output of the entire organization”.

► Self-motivated creativitySelf-motivated creativity (care why)(care why) – or – or “finding new ways to contribute to the success or “finding new ways to contribute to the success or total output of the organization, via better total output of the organization, via better utilization of one’s specialty knowledge and utilization of one’s specialty knowledge and abilities. ” abilities. ”

Developing Professional IntellectDeveloping Professional Intellect Four best practices for developing professional intellect Four best practices for developing professional intellect

1 Recruit the best.1 Recruit the best.

-Intensely screen initial applicants-Intensely screen initial applicants

-Want to work with the best-Want to work with the best

-Microsoft : 100 interviews for 1-Microsoft : 100 interviews for 1

-Four Seasons Hotel: 50 for 1-Four Seasons Hotel: 50 for 12 Force intensive early development2 Force intensive early development..

-Rapid Development of advanced skills professionals -Rapid Development of advanced skills professionals from real problems,from real problems,

-Interactions with customers-Interactions with customers

-Growth through: mentoring, rewards for -Growth through: mentoring, rewards for performanceperformance

Developing Professional Developing Professional Intellect….Intellect….

3 Constantly increase professional challenges.3 Constantly increase professional challenges.

-Leaders too demanding-Leaders too demanding

-stretch goals which challenge intellect.-stretch goals which challenge intellect.

-Push beyond book Knowledge-Push beyond book Knowledge

4 Evaluate and weed4 Evaluate and weed

-performance evaluation and feedback. -performance evaluation and feedback.

-Objective appraisal important-Objective appraisal important

Anderson Consulting 10% make partnerAnderson Consulting 10% make partner

Leveraging Professional IntellectLeveraging Professional Intellect

Leveraging : More effectively utilizing a Leveraging : More effectively utilizing a professional’s abilities.professional’s abilities.

► In industrial society, main two ways to In industrial society, main two ways to leverage leverage - learning and working more- learning and working more

- Increasing a professional’s support staff.- Increasing a professional’s support staff.► In information society, leverage can be In information society, leverage can be

attained attained - performance-improving technology, - performance-improving technology, - implementing effective management - implementing effective management

approaches.approaches.

Leverage professional intellectLeverage professional intellect

► Utilizing performance improving Utilizing performance improving technologytechnology

Capturing knowledge in systems and software Capturing knowledge in systems and software can boost professionals’ problem solving-can boost professionals’ problem solving-abilities. abilities.

► Implementing more effective Implementing more effective management approachesmanagement approaches

Strategies can overcome professionals’ Strategies can overcome professionals’ reluctance to share information, via incentives reluctance to share information, via incentives and technology that encourage sharing. and technology that encourage sharing.

Boost professionals’ problem-solving Boost professionals’ problem-solving abilities by capturing knowledge in systems abilities by capturing knowledge in systems

and softwareand software► Financial organizationsFinancial organizations

Human experts and system software collect and Human experts and system software collect and analyzeanalyze

Advice distributed via software systems to Advice distributed via software systems to retailers and brokers who further customize retailers and brokers who further customize informationinformation

Know-why is increased at center, then incentive Know-why is increased at center, then incentive structures create care-whystructures create care-why

Overcome professionals’ reluctance Overcome professionals’ reluctance to share informationto share information

► Knowledge and intellect grow exponentially when Knowledge and intellect grow exponentially when shareshare

► Difficulty to overcome natural reluctanceDifficulty to overcome natural reluctance Competition between professionalsCompetition between professionals Difficult to assign creditability to knowledgeDifficult to assign creditability to knowledge

► Anderson Worldwide – ANetAnderson Worldwide – ANet Post problems on electronic billboardsPost problems on electronic billboards Electronic system connecting 85% of professionalElectronic system connecting 85% of professional Incentives and cultural change were essentialIncentives and cultural change were essential

Inverting OrganizationsInverting Organizations

► Organize patterns tailored for intellect in a Organize patterns tailored for intellect in a way to create most value way to create most value breaking away from traditional Thinking of the breaking away from traditional Thinking of the

center as the directing forcecenter as the directing force

► Supporting organization Supporting organization Distributes logistical, analytical, and Distributes logistical, analytical, and

administrative supportadministrative support Does not give them ordersDoes not give them orders Former line order becomes supportive structure Former line order becomes supportive structure

and become staff peopleand become staff people

Inverting OrganizationsInverting Organizations

Person 1 Person 1Person 1Person 1Person 1 Person 1Person 1Person 1

Person 1 Person 1Person 1

Person 1

Person 1 Person 1

Person 1

Individual Professionals

Support Staff

CEO

Inverting OrganizationsInverting Organizations

►Nova Care – NovaNetNova Care – NovaNet Largest, fastest-growing health care companiesLargest, fastest-growing health care companies Captures the organizations systems knowledge Captures the organizations systems knowledge

– rules, schedules, customer billing. – rules, schedules, customer billing. Captures information for therapists about costs, Captures information for therapists about costs,

services, techniques that work well, and services, techniques that work well, and changing care patternschanging care patterns

Therapists can give orders to line organizations Therapists can give orders to line organizations and make decisions on patients careand make decisions on patients care

CEO refers to therapists as “my bosses”CEO refers to therapists as “my bosses”

Creating Intellectual WebsCreating Intellectual Webs

► Spider’s webs Spider’s webs Self-organizing Self-organizing Form quickly, disbands quicklyForm quickly, disbands quickly Solve problems no one or organization may Solve problems no one or organization may

know exactly the full dimensions or issues know exactly the full dimensions or issues Can leverage knowledge capabilities by Can leverage knowledge capabilities by

hundreds of timeshundreds of times Shared interest, common values, and Shared interest, common values, and

mutually satisfactory solution is essentialmutually satisfactory solution is essential

Spider’s WebSpider’s Web

Person 1

Person 1

Person 1

Person 1

Person 1

Person 1

Person 1

Person 1

Person 1

Person 1

Person 1Person 1

Specialists

Client-relationship managers

SummarySummary

►A corporation’s success in the A corporation’s success in the information society of today has more information society of today has more to do with “working smarter” to do with “working smarter” ( producing better products and ( producing better products and services) than with “working harder” services) than with “working harder” (producing more products and (producing more products and services).services).

CritiquesCritiques► Research That Reinvents The CorporationResearch That Reinvents The Corporation

Pro: very interesting article . Many examples. He Pro: very interesting article . Many examples. He emphasizes Partnership versus rigidity and isolation emphasizes Partnership versus rigidity and isolation (working “for” people, or alone).(working “for” people, or alone).

Con: People may not be accustomed to Con: People may not be accustomed to teamwork/might overload them. No Guarantee teamwork/might overload them. No Guarantee

► Managing Professional IntellectManaging Professional Intellect

Pro :Easy to read. Plenty of examples. Talks about Pro :Easy to read. Plenty of examples. Talks about creating a challenging learning environment.creating a challenging learning environment.

Con : Perhaps too challenging, highly stressful Con : Perhaps too challenging, highly stressful environment. environment.

Additional RessourcesAdditional Ressources

► James Quinn Website with different James Quinn Website with different articlesarticles

► Interview with John Seely BrownInterview with John Seely Brown

http://www.sethkahan.com/Resources_0Jhttp://www.sethkahan.com/Resources_0JohnSeelyBrown.htmlohnSeelyBrown.html

Thank YouThank You

Q&AQ&A