Making Enterprise 2.0 Knowledge Markets

Here is a useful article from McKinsey on changes for the 21st century organization. It came out a year ago but is even more relevant now. The writers argue that today’s hierarchical organizations are dysfunctional for the knowledge economy. Now they are not the first to say this, of course, but they give some useful suggestions including four main changes. I especially liked this one; “Developing knowledge marketplaces, talent marketplaces, and formal networks to stimulate the creation and exchange of intangibles.”

This required change fits right into Enterprise 2.0 for this should be one the main reasons for bringing Web 2.0 tools and user-generated content inside the firewall. They add on this required change, “Real value comes less from managing knowledge and more—a lot more—from creating and exchanging it… Exchanging knowledge on a company-wide basis in an effective way is much less a technological problem than an organizational one.” While this last statement is very true, Web 2.0 technologies will make it much easier.

They go on, and this is where it gets interesting, “What's the best way of encouraging strangers to exchange valuable things? The well-tested solution, of course, is markets, which the economy uses for just this purpose. The trick is to take the market inside the company.” To address this issue they offer the following, “Among other things, working markets need objects of value for trading, to say nothing of prices, exchange mechanisms, and competition among suppliers. In addition, standards, protocols, regulations, and market facilitators often help markets to work better.”

I think this approach will be a very useful to get Enterprise 2.0 working inside the organization. In many ways, this is how Web 2.0 works in the broader internet with user generated content that is vetted through the wisdom of crowds. Enterprise 2.0 initiatives should look at themselves as knowledge markets and look at how successful markets operate to get clues to guide implementation. enterprise 2.0 enterprise social media

Comments

[Hu Dou]

Knowledge management is a problem not solved well so far, even for the simplest problem: vocabulary management. The huge success of wikipedia might give enterprise a hint. Do you have successful stories to share? Thanks!