From: Knowledge Management: From Brain to Business ©APO 2007, ISBN: 92-833-7062-7 Edited by Dr. Serafin D. Talisayon Manila, Philippines Published by the Asian Productivity Organization 1-2-10 Hirakawacho, Chiyoda-ku, Tokyo 102-0093, Japan Tel: (81-3) 5226 3920 • Fax: (81-3) 5226 3950 E-mail: [email protected] • URL: www.apo-tokyo.org Disclaimer and Permission to Use This document is a part of the above-titled publication, and is provided in PDF format for educational use. It may be copied and reproduced for personal use only. For all other purposes, the APO's permission must first be obtained. The responsibility for opinions and factual matter as expressed in this document rests solely with its author(s), and its publication does not constitute an endorsement by the APO of any such expressed opinion, nor is it affirmation of the accuracy of information herein provided. Bound editions of the entire publication may be available for limited purchase. Order forms may be downloaded from the APO's web site. Knowledge Management From Brain to Business 2007 Asian Productivity Organization Proceedings of the International Productivity Conference 2007, Thailand, 18–19 January 2007, jointly organized by the Asian Productivity Organization and the Foundation for Thailand Productivity Institute. This volume was edited by Dr. Serafin D. Talisayon, Manila, the Philippines. The opinions expressed in this publication do not reflect the official view of the APO. For reproduction of the contents in part or in full, the APO’s prior permission is required. ©Asian Productivity Organization, 2007 ISBN 92-833-7062-7 CONTENTS Title Speaker Page Welcome Address Dr. Phanit Laosirirat 1 Welcome Address Mr. Shigeo Takenaka 3 Keynote Address Mr. Piyabutr Cholvijarn 6 Strategy as Distributed Phronesis: Knowledge Prof. Ikujiro Nonaka 9 Creation for the Common Good Collaborative Enterprise-Wide Knowledge Ms. Martha Seng 23 Sharing and Organizational Learning – Taking Knowledge Sharing to the Next Level Connecting Strategy and Operations through Mr. T.S. Rangarajan 34 Knowledge Management – The Tata Group Experience Knowledge Sharing Session, Day 1 Mr. Prasit Tansuvan, 48 Moderator Innovation and Intellectual Capital Management Mr. Rory L. Chase 58 Set the Agenda Knowledge Management Practices at Toyota Mr. Atsushi Niimi (Summary Motor Corporation not available for publication) From Knowledge Management to Operational Mr. Dirk Ramhorst 71 Excellence Integration of Knowledge Management and Mr. Chaovalit Ekabut 81 Learning for Innovation Knowledge Sharing Session, Day 2 Ms. Porntip 96 Kanjananiyot, Moderator Biographies of Resource Persons 104 WELCOME ADDRESS Dr. Phanit Laosirirat Executive Director Thailand Productivity Institute The International Productivity Conference (IPC) is one of the prestigious public forums of the Asian Productivity Organization (APO,) held on special occasions to celebrate the APO’s attainment of crucial milestones. This year’s gathering is in recognition of the 45th anniversary of hard work to promote the national productivity movement of member countries and it is also the 12th anniversary of the Thailand Productivity Institute’s presence in promoting the productivity movement in Thailand. For each IPC, National Productivity Organizations and the APO Secretariat carefully select emerging productivity topics, for which discussion will strengthen the productivity movement in member countries. This conference has adopted the theme of “Knowledge Management – From Brain to Business” and through it we will showcase outstanding knowledge management applications by globally renowned enterprises from Asia, Europe and the United States. IPC 2007 continues our tradition of identifying the latest developments among “The International Productivity Conference…will bring the best and the productivity tools and techniques within brightest in the world of knowledge government, business and at the grassroots management together in one place.” level. This year, the International Productivity Conference will showcase the newest techniques, the latest developments and bring the best and the brightest in the world of knowledge management together in one place. These highly qualified speakers will cover the advanced topics that meet the needs of the evolved knowledge management practicing organization. One such speaker we are honored to have with us today is Professor Ikujiro Nonaka. His presentation will recognize the importance of knowledge management as an essential tool to drive strategy for any organization, while underscoring that for a company to create value, it must possess the ability to determine and undertake the best action in a specific situation so as to serve the common good. This point is further confirmed by Mr. T.S. Rangarajan, who makes a presentation from the perspective of the Tata Group’s experiences. IPC 2007 will also offer presentations that are truly based on firms’ experiences of tackling the knowledge management initiative at the organization level. Ms. Martha Seng, who is the Knowledge Transfer Manager of Buckman Laboratories (Asia,) will stress the need to engage individual workers in learning since their willingness to participate in knowledge sharing is directly related to a need or desire to learn. Individuals, she will point out, must be supported with the tools, resources and environment needed to engage freely in various communities. Mr. Dirk Ramhorst, Vice President of Operations, Seimens Business Service Germany, will focus on new territories of knowledge management. He is a true believer in knowledge Page 1 management in every aspect of the organization and his presentation will be on how to structure project management and even organizational design based on knowledge management. IPC 2007 would like to extend its thanks to Mr. Chaovalit Ekabut, President, Siam Pulp and Paper, SCG Group, for attending the IPC. The Thai business community has a keen and constant interest in the activities of the SCG Group . At this conference, Khun. Ekabut will shed some light on an ongoing project of the Group, which is how the integration of knowledge management and learning leads to innovation. We are also pleased to have Mr. Atsushi Niimi, Senior Managing Director, Toyota Motor Corporation Japan, with us at the conference. Toyota has become the number one automaker in the world and it intensively applies knowledge management in its operations. Mr. Niimi’s presentation will focus on knowledge management practices at Toyota Motor Corporation. Last but not least, Mr. Rory Chase, Managing Director, Teleos, share his views and experiences with us. Teleos is the main principal that established the Most Admired Knowledge Enterprises (MAKE) research program. In association with the Know Network, it identifies and recognizes those organizations which are leaders at creating intellectual capital and shareholder wealth by transforming new as well as existing enterprise knowledge into superior products/services/solutions. The conference’s rich and diverse group of resource speakers will strengthen our understanding of knowledge management. Whether it is growing and developing internal talent, guiding one’s organization through new transformations, bringing knowledge strategy to new heights, or finding out what is new in the field, this conference will provide a great opportunity for learning and networking. Finally, I would like to thank all resource speakers, the APO, supporting organizations and participants who have made this conference a dream come true. Sitting here today you are all already winners. I hope each and every one of you enjoy the conference and return home with a heightened awareness and understanding that you can put into fruitful practice within your own organizations. Page 2 WELCOME ADDRESS Mr. Shigeo Takenaka Secretary-General Asian Productivity Organization On behalf of the Asian Productivity Organization, I would like to extend a very warm welcome to all the distinguished delegates to the International Productivity Conference on Knowledge Management here in the bustling and beautiful city of Bangkok. We organized this conference to mark two important events, the 45th anniversary of the Asian Productivity Organization and the 12th anniversary of the Foundation for Thailand Productivity Institute. Knowledge management is not only one of the APO’s thrust areas but it is growing in importance in this fast-changing and globalized world. That is why we decided to choose it as the central theme of our combined celebration. I very much hope that the coming two days will prove that our decision was right. Knowledge management is not merely a fashionable new management trend. It is instead a logical consequence of developments occurring around us right now. Among them, the most significant development in terms of elevating the status of knowledge management is, in my view, the growing importance of innovation as a means to achieve sustained economic growth in many countries. In Singapore, a policy shift from productivity-induced growth to innovation-induced growth took place decades ago. The Republic of Korea has long prided itself on producing human resources who can lead industry to innovation and breakthroughs. Japan’s new government came out with a statement that it would make innovation the centerpiece of its economic policy. In a way, it is inevitable that high-performing countries will resort to innovation as a means to stimulate economic growth, as their population growth rates are dwindling and are likely to