The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation
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The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation

For tacit knowledge to be communicated and shared within the organization, it has to be converted into words or numbers that anyone can understand. It is precisely during the time this conversion takes place—from tacit to explicit, and, as we shall see, back again into tacit—that organizational knowledge is created.
He believes that knowledge is the ultimate replacement of other resources.
Another obvious, but major, limitation of the two models is the lack of recognition and relevance given to middle managers. They seem almost to have been neglected by the two models. In top-down management, the knowledge creator is top management. Middle managers process a lot of information in a typical top-down organization, but play at most a
... See moreBureaucracy and task force are two opposing organizational structures that have been around a long time. Bureaucracy, which is a highly formalized, specialized, and centralized structure, works well in conducting routine work efficiently on a large scale. The task force, on the other hand, is flexible, adaptive, dynamic, and participative, and is
... See moreSecond, companies need to make sure that a self-organizing project team is overseeing the new-product development process.
Many Japanese companies have adopted brainstorming camps as a tool for that purpose.
Organizational knowledge is also created through an interactive process.
The intelligence of a corporation does not come from the president nor top management. That must come from the gathering of all knowledge of all members. A big organization is separated into many sections. If that organization does not have the system to integrate the knowledge of each section, the newly created knowledge would be poor. Each
... See moreThey serve as the strategic “knot” that binds top management with front-line managers. They work as a “bridge” between the visionary ideals of the top and the often chaotic realities of business confronted by front-line workers. As we shall see later, they are the true “knowledge engineers” of the knowledge-creating company.