Customer Reviews

The Future of Knowledge: Increasing Prosperity through Value Networks

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In this book Allee considers the changing nature, structure and identity of organizations, and the larger patterns of change that are currently unfolding in society. Taking the view that businesses are evolving into 'networked patterns of living systems', Allee observes that we require a different mindset and management tools to respond to these changes. This new mindset includes thinking of organizations as living systems, understanding the principles of networks and how they operate, taking a 'whole-system' view of the organization, understanding how intangibles go to market, and the significance of value networks, people and relationships.

Overall, the book offers a fresh, thought-provoking look at what have become already become well-worn concepts in the knowledge management field. Allee has synthesized a diverse array of ideas and concepts and theories from multiple disciplines to this work.

Part I tends to be a little abstract and theoretical and some of the ideas here about the new knowledge economy and intangible assets will not be new to anyone familiar with knowledge management. However, it does provide a useful context for subsequent chapters. At the end of chapter 5, the checklist of 'where we are now in the learning journey or knowledge continuum' is a useful summary of current thinking. Allee takes an organic view of knowledge networks and communities, such that rather than trying to create them in organizations, it is better to simply find those that already exist and make them visible to themselves and the rest of the organization.
The discussion on how intangibles 'go to market' challenges the notion that we can create value from them in the same way that we do from tangible assets. But perhaps the most interesting section of the book is that which discusses mapping value networks, and the practical examples that are provided. It is here that Allee brings together the concepts discussed in Part I and we begin to see the whole picture that she is building. These chapters will be of particular interest to practitioners who are attempting to grapple with creating value from knowledge in their own, or their client's organizations, and identifying where to focus their attention.
Allee has the capacity to discuss complex issues in a simple and straightforward way without allowing us to feel that we've been shortchanged. Essentially, each chapter offers a simple message. In her discussion of communities of practice, there is a clear message is that knowledge cannot be separated from the human networks that create it, use it and transform it. Similarly, in Chapter 6, she argues that the best technology infrastructure does not guarantee knowledge sharing - organizational intelligence is not a technology question, it is a human question.
At one point, Allee refers to the ancient saying that one cannot step into the same river twice (pp. 143) because the water is never the same water. This is analogous to what Allee has done with in this book - although the concepts, and ideas may seem familiar and have certainly been discussed previously in the plethora of books and articles currently available, she has presented them in a refreshing new way and brought together diverse ideas to challenge our assumptions. It is well worth reading.

This book again shows Verna Allee's great gift for making the complex simple and practical. In this book she builds and explores the metaphor of enterprise as a living network, successfully weaving together such diverse threads as value network analysis, communities of practice, social network analysis and biology. She shows us what to focus on now and, as always, provides a glimpse of the future. If you want to know what's coming next in this rapidly evolving field, read this book

In today's crowded marketplace of business publications, it takes something that bit special to stand out and be noticed. A decade ago, Peter Senge's The Fifth Discipline was widely regarded as one of the seminal business books of the 1990's, introducing to an appreciative and expanding audience the integrated concepts of systems thinking and the "learning organisation". This new book by fellow American author Verna Allee carries the potential to compete for similar accolades in this current decade.

The idea that there should be any enthusiasm about another book on knowledge would normally be questionable, given the number of books published on knowledge management in recent years, and the attendant hype accompanying such new challenges to business thinking. What makes Allee's contribution special is the elegant manner in which she takes a living systems approach to connect knowledge and value in a profound yet pragmatic way.

The focus on value is particularly appropriate for business given that profitability, the lifeblood of any commercial enterprise, depends on the discovery and creation of value. With the new era of the "extended enterprise" model of the organisation, in that any company competes in a supply chain and wider business ecosystem of customers, suppliers, joint venture partners and other stakeholders, the value network approach is a potentially powerful one in helping to identify, investigate and, ultimately exploit key relationships within the network.

Where Allee perhaps scores highest with her approach is in her treatment of intangible deliverables within value networks, and the introduction of a simple, practical set of tools to assist with the mapping of both intangible and tangible relationships. Because value networks take a living systems perspective, it deals with real people - either individuals, small groups or teams, business units, organisations, industry groups, communities or nation states - dealing with value exchanges flowing between participants in the network, linked by arrows showing the transactions and deliverables of value exchanges.

The power of value networks lies in its simplicity and practicality. As well as providing a structured framework for dealing with intangibles, it also raises interesting questions and challenges assumptions about the real nature of networks in action and the value being created (or destroyed) within these networks.

If business leaders aspire to understand the deeper dynamics of value creation in their extended enterprise networks, The Future of Knowledge will provide them with the philosophy, the roadmap and the tools to guide them.

I was very enthusiastic about the topic. Section I drops quotes from some of the most insightful people around, like Fritoj Capra. Section II says that technology has to be better at helping people share information. Section III says that Communities of Practice help generate new knowledge (a lot of 'borrowing' from E. Wegner for this section). Section IV says that you have to map a system by looking at participants, their outputs and the required inputs. Section V is a summary. The big 'insight' is that people seek intangibles that aren't always seen with a direct dollar value. No kidding, every car salesman in the world knows that he is not selling transportation, he is selling an image. Isn't that the whole idea behind conspicuous comsumption? No one really needs a Hummer, but what intangibles does one get? Very simply, intangibles are easy to measure in that they are all converted to an object, eventually. Ideas are made into books; engineering concepts are made into machines. That's where the price comes out. All in all, the book reads like a power brochure with several self-promotional descriptions in the book. Pass on this one and try out any of the authors she name drops in Section I.

There is a colossal organization structure issue that large corproations haven't yet faced. It is that the basic tool and meme for organization - the organization chart with structure, jobs and reporting lines - can not function in the new world of open innovation, process-driven organization, collaborative networks and roles in processes rather than jobs in structures.

Verna Allee has a novel solution in her concept of Value Networks. It passes the conceptual test by offering a new idea of how value is created via intangibles, and the credibility test by providing real-life, very large scale examples. She challenges us to think in an entirely new way about organization. She may have the answer for the 21st century, and you owe it to yourself to at least read it and consider it.

I'd definitely recommend it not only to the Knowledge Management professionals, but to the general public. It's a fun and easy read.

Verna's work makes it clear that the future belongs to those that can manage traditional assets and intangibles alike.
It is time to expand our accounting to reflect this reality.
Increasingly people choose to patron a company not as much by its numbers but how genuine and pleasant its people are.