Knowledge Creation Systems in Seven-Eleven Japan

SENOO, Dai
Graduate School of Decision Science and Technology, TITECH, Tokyo, 152-8552, Japan 2004.08.04 at Chengdu

August 05, 2004

Outline

SENOO, Dai
Tokyo Institute of Technology

Case study of Seven-Eleven Japan

Objectives:
Examine how information system can support knowledge creation.

Conclusion:
Facilitating dialogue and reinforcing creative routine might be the most important functions of information system to support knowledge creation.

August 05, 2004

1 Conceptual Framework

SENOO, Dai
Tokyo Institute of Technology

Knowledge Creation Process

Performance

Continuous Innovation
Ba / Network Information Systems Knowledge Spiral Environment

Competitive Advantage

Supreme Sustainable Profit

(SECI)

Ba / Network Information Systems Environment

Fig.1 Conceptual Framework of This Study

August 05, 2004

1.1 Knowledge Spiral

SENOO, Dai
Tokyo Institute of Technology

Sharing and creating tacit knowledge through direct experience

Tacit
Socialization
Environment I Individual

Tacit
Externalization
E I Group I I I O I I

Articulating tacit knowledge through dialogue and reflection

Ta 1. walking around inside the company cit 2. walking around outside the company 3. accumulating tacit knowledge 4. transferring of tacit knowledge
Learning and acquiring new tacit knowledge in practice

Ex pli cit

5. articulating tacit knowledge 6. translating tacit knowledge Systemizing and applying explicit knowledge and information

Ta Internalization cit O
G I E

Combination
E G G Org. G G

Ex pli cit

10. embodying explicit knowledge through action and practice 11. using simulation and experiments

Explicit

Explicit

7. gathering and integrating explicit knowledge 8. transferring and diffusing explicit knowledge 9. editing explicit knowledge

I = Individual, G = Group, O = Organization, E = Environment

August 05, 2004

1.2 Ba / Network Ba is the ontological platforms for knowledge creation. Ba can be thought as a shared context for emerging relationships that give the basis for one to interpret information to create meanings.

SENOO, Dai
Tokyo Institute of Technology

University Customer

Ba is a kind of open network to the environment.

Supplier

Government

Firm

Competitor

August 05, 2004

3.1 The history of information system Generation 1st (1978) Terminal Seven 2nd (1982) Point Of Sales 3rd (1985) Graphic Information Computer 4th (1990) GOT: Graphic Order Terminal SC: Store Computer ST: Scanner Terminal

SENOO, Dai
Tokyo Institute of Technology

August 05, 2004

3.1 The history of information system (cont.)

SENOO, Dai
Tokyo Institute of Technology

5th (1999) 1. store system 2. order, distribution and vendor system 3. network system 4. groupware system 5. multimedia information transmission system 6. POS information system 7. store POS register system

August 05, 2004

SEJs knowledge creation process

Dialogue (external)

SENOO, Dai
Tokyo Institute of Technology

Market

Customers knowledge Order

Dialog Observation

New product development with makers and trading firms

Products & Service

Hypothesis

POS data

Employees knowledge (Stores)

OFC GOT

Team merchandising

Logistics

Check Creative Routine

Manager meeting (every Monday) FC meeting every Tuesday

Organization

Employees knowledge (Headquarter) F2F communication OJT Store patrol by field counselors and owner consultant Cyber communication Point Of Sales system Graphic Order Terminal

Technologies & Know how

Dialogue (internal) Sharing Philosophy & Vision Adopt to changes Pursue fundamentals Quick response to stores demand

August 05, 2004

3.2System for internal knowledge flow Chairmans speech

SENOO, Dai
Tokyo Institute of Technology

The business revolution meeting

Costly meeting (every week, nation wide) to share the context for knowledge creation (Ba)

August 05, 2004

3.3 System for stores-headquarters knowledge sharing

SENOO, Dai
Tokyo Institute of Technology

OFCs visit stores twice a week and teach ordering or hypothesis building capabilities, raise problem awareness, and provide external information to support owners and staff.

August 05, 2004

Knowledge-Creating Components of SEJ

Vision
Responding to changes and Relentless pursuit of the basics
t bjec e (s u ivity )

SENOO, Dai
Tokyo Institute of Technology

Environment
Penetration of the essence with unclouded eyes (CEO Suzuki)

Ta

g wled kno cit

Dialogue
Weekly face-to-face Meetings, OFC store visits, Etc.

Driving Objectives
Opportunity Loss

Creative Routines
Employee participation In the cycle of hypothesis, execution, and inspection
i ctiv bj e e (o e dg owl n

BA/ Network
ty)

k icit xpl E

Information System
Place orders at the point that is closest to customers physically and psychologically (shop-floor employees)

August 05, 2004

Implication

SENOO, Dai
Tokyo Institute of Technology

Dialogue

Document utilization

Creative Routines

efficient
Information Systems

reinforcing
Information Systems

facilitating