An important concept in inter organizational knowledge creation. Michael Porter coined this term to describe geographical concentrations of interconnected companies and institutions in a particular business.
Clusters39 include suppliers of components, machinery and services.
Institutions which provide specialized infrastructure and demanding customers also form part of a cluster. Other members of a cluster include the local government, universities, research centers and think tanks who facilitate learning. Clusters are important drivers of global competitiveness because they facilitate inter organizational learning and knowledge sharing. Silicon valley in California, USA is probably the world’s best known industrial cluster.
Clustering
The tendency to group objects, words, pictures or ideas into groups in some subjective ways. Data clustering is a technique for data analysis by partitioning a data set into subsets whose elements share common traits. Thus, a data mining tool can discover different groupings within data. For example, it can divide investors into groups based on their liquidity preferences.
(See also: Search Strategy).
Codification
Codification aims at putting knowledge that people have, into a form that makes it easily accessible across the organization. It attempts to make knowledge as organized, explicit and portable as possible. Codification allows knowledge to be shared, stored, combined and manipulated in various ways across the organization.
Some forms of knowledge, such as patents, are already codified and explicit. Similarly, manuals and other structured documents are examples of codified knowledge. In other cases, reports can be generated. But not all kinds of knowledge are amenable to codification. The rich, tacit, intuitive knowledge of a seasoned expert, developed and internalized over a long period of time is almost impossible to reproduce in a structured document or database.
The challenge for organizations is to codify knowledge and still leave its distinctive attributes intact. The process of codification should not severely dilute the richness and context. One way to deal with this problem is that instead of trying to turn knowledge into a “code”, or cram it into a template, companies can often encode the stories themselves. That way, the context can be preserved and meaning conveyed without losing much of its value. For example, managers can prepare a video that can narrate how a key sale was made.
(See also: Context Sensitivity)
Cognition
Refers to activities such as thinking and reasoning. For the cognitive psychologist, behavior requires explanations at the level of mental events, mental representations, beliefs, intentions, etc. Cognitive science is the name given to academic disciplines that study the human mind. Cognitive differences among people arise because of the different ways in which they perceive and assimilate data, make decisions, solve problems and relate to other people. Some people, for example, may use a lot of intuition while solving problems; others prefer a more analytical approach. People who use an analytical, logical, sequential approach to solving problems are left-brained while those who use an intuitive, value-based and non-linear approach are right-brained. Some people like to collaborate while solving problems, while others like to be on their own. Cognitive unconscious is a general term that describes a variety of mental processes and functions that take place largely independent of consciousness or awareness. Cognitive therapy is based on the assumption that the way in which individuals structure and interpret their experiences determine their subsequent behavior.
Collaborative Filtering
Technology which automatically compares attributes of one set of customers with other sets and facilitates personalization of websites by anticipating customer needs. It relies on an extensive base of similar customers. The software makes recommendations to users based on their presumed interests. Collaborate filtering requires scaleable personalization capabilities that can cope with increasing customer data volume.
Amazon website is a good example. The site recommends books to a site visitor, based on purchases by other customers with similar interests.
Collaborative Platform
Refers to the network, hardware and software that allow knowledge workers to perform tasks and work on projects together. Workers sitting at geographically dispersed locations can collaborate using such a platform. The ideal collaborative platform is characterized by portability, scalability, integration, customizability, security, flexibility, low implementation and training costs, minimum deployment time and open architecture.
Collaboration Work
A term coined by Tom Davenport to describe work involving a high degree of improvisation that, in turn, demands deep cross-functional expertise. Individual expertise and degree of interdependence among workers are both high in such kind of work. Investment banking is a good example. In the case of an M&A deal, experts in different functions like legal, human resources, valuation and accounting may have to come together and collaborate. It is difficult to automate or create a process flow for such work. So, knowledge can be made available in repositories which people can access as and when needed.
Combination
A term coined by Hirotaka Takeuchi and Ikujiro Nonakain their book, The Knowledge Creating Company, as part of their SECI (Socialization, Externalization, Combination, Internalization) model. This mode of knowledge conversion involves combining different bodies of explicit knowledge. Combination is the process of creating new explicit knowledge by sorting, adding, categorizing and combining existing explicit knowledge. Many software services companies store valuable documents in repositories, for easy access by employees. People refer to these documents, offer comments and also contribute new documents. This way, new knowledge is generated.