Knowledge management and insurance plan working doc celltech

This report discusses lots of knowledge management frameworks and techniques which are more relevant for CellTech's business and procedures. We begin with analyzing the knowledge environment in CellTech research study over various stages of the organizational change and mapping that knowledge toward the Kilometres models and frameworks to comprehend the functional use of the techniques in real time.

The famous techniques or frameworks that are discussed in this record are "Exploration and exploitation", ethnical web, SECI, Garvin's 5 stop of learning group, I-Space and psychological cleverness. Using these techniques or platform we will understand the potential contribution and need for knowledge management in organizational development.

Finally the review will evaluate the possible issues encompassing the creation and transfer of knowledge in CellTech's knowledge management plan.

Understanding of CellTech circumstance study

Celltech Europe's one of the oldest biotechnology corporation into Biologics and Therapeutics development of drugs. The company got different management methodology from 1980 - 1996 with its conversional business of agreement manufacturing and biologics research to creation of impressive drugs and then toward the cooperation with leading large pharmaceutical companies. From your knowledge of the case study I classified the CellTech to three times,

During 1980's

Two business, deal creation and in-research. Agreement creation is the leading revenue making business and the expenses involved in researches are cover by the agreement manufacturing.

More volume of employee were working on biologics research and agreement manufacturing

Therapeutics research was done in-house and Biologics was with companies.

Shareholders weren't happy with CellTech revenue and cash burn for 2 years appears to be an overall matter.

Early 1990's

New CEO was appointed to bring new ideas to change CellTech's improvement (Dr. Peter Fellner).

Want to give attention to new medication development and seen the potential of innovative drugs developing (Restorative).

Flat organization framework was made and business was split into two divisions (Biologic and healing), and Fellner's eye-sight to expand therapeutic section R&D.

Interdisciplinary groups were created in research to build new capabilities among researchers.

Market penetration through medical trials Bayer collaboration and gain marketing knowledge.

To change the cash burn off situation through Bayer's cooperation Milestone payment.

New skills on therapeutics were required so scientists were recruited to replace the "clubs of old".

Late 1990's

Biologics division of the company was sold since profit percentage was heading down.

Change in concentrate to build up new innovative drugs to enhance the human health.

CellTech created strong partnership with world leading pharmaceutical companies for the restorative drugs breakthrough and development.

Senior management gained experience in both pharmaceutical and biotechnology sector.

To monitor the progress on various functions different review systems were setup.

By the end of 1996 CellTech experienced a good market position in UK biotech sector.

Balancing between Exploitation and Exploration - CellTech

Exploitation is defined as the utilization of already exiting things such as exiting product information, company framework or other phrase it's the firm's primary competencies. Exploration means pursue of new things which might become known otherwise exploring opportunities for building something new (Levinthal and March, 1993).

Exploitation and exploration mainly concentrate and revolve on the Main competency of the organization i. e. exploitation is the use currently known key competency and exploration is to pursue new center competency. Central competences are capability by which group deploy resources for their activities and process to get competitive edge over the others such that it can not be imitate or obtained.

According to Cohen and levinthal (1990), for the success a firm has to maintain balance between exploitation and exploration and March (1991) believe that the primary factor for the survival and success in long run would be balance between these two.

In the case of CellTech, they wanted move out of cash burn up and to be considered a financial successful business through exploration such as collaboration. CellTech center competences during 1980 were deal manufacturing and they developed world class antibodies with agreement companies. This is seen as the Levinthal and March's (1993) exploitation "the use of development of things already known".

Exploration Issue When the business wished for new management, to bring new thoughts and culture through visit Dr. Fellner as CEO so when Fellner arrived to the organization, he brought new idea to improve the current group style. Following are the some changes emerged through new CEO which supply the view of Levinthal and March's (1993) exploration,

Restructuring the organization with more even structure (two department Biologic and healing - to get control and monitoring).

Investment on Therapeutics new drugs development and also to bring more interdisciplinary team approach to build multi-skilled scientist.

Recruitment of new experts in Healing to bring new skills on the drug development.

Collaboration with Bayer on the medical trials

The First balancing factors from the CellTech was, When Dr. Fellner seen more work at home opportunities in healing R&D, he divided the organization with exiting competency (Biologic, exploitation) and new competency (Restorative, exploration). In the initial stage healing business was such as a cost centre, more with respect to the revenue from agreement developing and later emerged as profit centre new employees were recruited on restorative part while "club of old" from biologic moved out.

In the late 1990's when the Healing side was successful with more professional medical trial on pipe brand and new collaborations with market leading and providing out the Biologic company see to be the next balancing factor. CellTech primary cooperation with Bayer helped them to determine better relationship with other later. The Bayer cooperation actually bailed them out from cash shed and to commit on therapeutic research.

According to March (1991), controlling factor between exploitation and exploration is difficult and complicated, learning can donate to imbalance. Levinthal and March (1991) believes competency trap will be the outcome of improper learning i. e. unwanted exploitation or exploration can result in imbalance. I really do agree that imbalance can grow however in this research study the application toward managing the horses (Exploitation and Exploration) were well maintained like providing interdisciplinary team, level organizational structure, poor increase of employee in healing research and using the learns discovered from Bayer cooperation to other collaborations.

Culture - Knowledge Writing in Organization

Culture can referred to as how thing are done which is the combination of values, tendencies, idea and paradigm (taken for granted assumptions). Organizational culture is the worthiness and beliefs which forms a fundamental element of organization - what is chosen to see and absorb (Davenport & Prusak 2000). It offers thoughts and opinions on the distributed actuality, regarding how things are behaving now and exactly how it ought to be in future. In a growing firm, knowledge and knowledge showing are the inseparable culture. Pursuing are three degrees of culture which can be found in an corporation (Schein 1992),

Artifacts imply the visible elements in the business such as processes, organization composition, and fixed investments. These elements can only understood inside the organization and from the outside it not comprehended why things are done in such ways.

Espoused beliefs are under the artifacts to support the organization's functions such as strategies and goals. These ideals are manufactured by the market leaders or the management in the business in case these values aren't framed correctly then your management is in big trouble.

Assumptions are the actual central value of the culture which mainly present at unconscious degree of the organization's real human tool like thought and thoughts.

Davenport & Prusak (2000) is convinced that knowledge writing culture plays an important role to permit the copy and creation of knowledge within the business. To make knowledge management as practice, the employees of the business much cooperate to share their knowledge with others (Interdisciplinary learning). The leader of the organization also should comprehend the culture from the entire corporation and community level to talk about knowledge.

New CEO's methodology towards organizational culture change

The first change Dr. Fellner taken to the business is to split up the business into two divisions and also to bring more focus on the restorative in-house research. Then he changed the organization to a set structure with an increase of target towards new medicine development. Interdisciplinary teams to concentrate on combination sectional learning within the organization to develop multi skilled researchers. The cooperation with Bayer was the major milestone for the CellTech from the financial side however when we see the knowledge perspective it was the scientific trial stage II knowledge transmitting to Bayer.

Mapping to Cultural Web

Johnson and Scholes (2002) talks about ethnical web as the indentifying factor to spell it out various factors influencing organizational ethnic both for current and future. The below number 1 shows the culture web mapping on the CellTech(after Dr. Fellner's change),

Figure 1: Cultural Web

Paradigm: The assumptions set by the organization overall for the long run.

Rituals and Exercises: These represent "what sort of things are do around here". The ways that organization's member behave each others.

Stories and myths: The various stakeholders of the organization spread common beliefs of days gone by incidents and reinforcing the people's action by telling the value of the organization.

Symbols: The components of the organizations, including titles, terminology and dress rules.

Control Systems: The various review establish by the business to gauge the final result of polices and to reward people based on the performance.

Organizational Constructions: It is the formal structure of the firm, how the string of command moves from the top to lower part.

Power set ups: It's the key element explains to about how the power is sent out in the organization, the paradigm is more shaped by the folks or the group has more electricity.

The knowledge showing for CellTech is known as more important since the company's emphasis not only on the medication development but also on the cooperation. For example we take the Bayer initial cooperation where CellTech was accountable for developing the drug up to cycle II and then cross it on to Bayer for further development. Here moving it to Bayer means plenty of knowledge in conditions of test outcomes and the encounters of the scientists at various levels are recorded and shared. As stated by Dr. Bloxham "lessons were learned which were put on the overdue, post 1992 cooperation", here knowledge isn't only distributed but being gained.

CellTech not only wanted to discuss knowledge with other competitor as collaborator but also wished the own scientists to talk about knowledge having an interdisciplinary team way in the medication development team. Building Biochemist would be a good exemplory case of CellTech's initiative on the interdisciplinary skill development on it scientists.

According to Knight and Howes (2003) there are habits which are greatly inbuilt in every single workplace to restrict the effectiveness of the knowledge posting. To start knowledge management it's important to know which of the manners can and cannot be improved and Cultural Web model categorize the influencing factors on the people's habit.

Knight and Howes (2003) feels cultural web can be utilized an auditing tool to evaluation "what is currently respected in the business" and also to establish the how best future culture is required for the organization. To help keep competitive advantage in the market to changing circumstances, culture and constructions have to be altered by increasing the efficiency and performance (Bali, Wickramasinghe, Lehaney (2009). The ethnical changes will be required whenever a new strategy is usually to be put in place and in this changing world it will likely be a cyclic process.

Knowledge era and transfer - SECI

Social connection is the means by which the Knowledge era and transfer happens which is the era and copy of tacit and explicit knowledge between specific and group. Nonaka and Takeuchi (1995) think of a model called SECI to understand process mixed up in nature of knowledge creation and effective management of knowledge in the powerful environment. The thought of the model to identify importances of the data possessed by individual is shared with other individual or group.

Explicit Knowledge - CellTech

Explicit knowledge is the data that can be expressed in a organized formal language and distributed in form of specs, guidelines and form of data. The knowledge here's captured and documented in a physical form which is very direct to understand and easy source to be obtained through papers (Nonaka and Takeuchi, 1995). ). From CellTech case study we can easily see explicit knowledge right from the commence and pursuing are a few of them,

Financial status of the CellTech especially the cash burn up was known by everyone in the organization and should have been know by the total amount sheet record.

Restructuring the organization to a flat structure

Contract manufacturing to research and development - redefining the concentration of the business by new CEO

The trail stages paid to cooperation companies - here the CellTech exchanges the intellectual knowledge to other company to further development and it should have been done with more documentation and knowledge transfer sessions.

All the review systems setup to screen the improvement of the organization

Tacit knowledge - CellTech

Tacit knowledge is the data which is very difficult to formalize or noted which is deeper rooted on the action and feeling. The most part of the tacit knowledge is attained by past experience and even more internal which knowledge can be moved in a verbal formal to some other (Nonaka and Takeuchi, 1995). From CellTech research study we can easily see tacit knowledge right from the begin and pursuing are some of them,

Scientists gaining knowledge in the Biologic and therapeutic research

Interdisciplinary leaning from researchers in restorative research

The skills of the new employees in therapeutic research

The lessons learned from the Bayer collaboration for the management to explore more cooperation later with other pharmaceutical companies

SECI Spiral

According to Nonaka and Takeuchi (1995), creation of knowledge is a spiral process concerning explicit and tacit knowledge connections which will lead to new knowledge creation. The explicit and tacit knowledge blend in SECI model is been conceptualized into four stages and the amount 2 shows the four phases,

Figure 2: SECI Knowledge Spiral

Socialization in SECI feels that knowledge creation commences with the tacit acquisition of knowledge by people i. e. from people who know to people who have no idea (Nonaka and Takeuchi, 1995: 62-4). From CellTech viewpoint it can be the new skills from the new researchers to the "clubs of old" and from the "clubs of old" the organizational process like research and development concentrate can be shared to the new worker. CellTech also created opportunity for the staff to socialize insurance agencies breakout area near to the drug development labs.

Externalization is the second stage in knowledge alteration where tacit knowledge is converted to explicit. Here specific tacit knowledge comes out and become explicit group knowledge (Nonaka and Takeuchi, 1995: 66). From your CellTech perspective the interdisciplinary learning gives opportunity to the team to learn the abilities that they don't possess like chemist assisting biologist team.

Combination is another stage where the knowledge is systematized and it just happened when group of people synthesis various explicit source of knowledge into strategies, documents or reports (Nonaka and Takeuchi, 1995: 67). From the CellTech point of all review systems installation to keep an eye on all the functions of the organizations will be the systemizing process for the data management.

Internalization is the fourth stage in the SECI and described as an activity of personifying the explicit to tacit knowledge. Internalization can also be mention as learning explicit knowledge and doing thing through tacit knowledge (Nonaka and Takeuchi, 1995: 69). In CellTech research study we can see internalization when clinical trials move in one phase to another scientist pass on the knowledge drugs development and when CellTech used the Bayer cooperation experience to make more lucrative future collaboration also can be looked at internalization.

The knowledge conversion is considered to be always a interpersonal process where from individual to group at different organizational levels the knowledge is amplified and crystallized as part of the organization knowledge network (Nonaka and Takeuchi, 1995: 73). This model assists the organization to regulate the data creation at various levels. The understanding of tacit and explicit knowledge within an group is important before considering the knowledge capturing and creation and good understanding of both will identify what part of knowledge is important also to be shared. The controlled way of controlling knowledge can help the organization to attain the tactical goal easily. Arriving at CellTech like corporation where there is plenty of tacit knowledge, should be formalized to a process to make it explicit. Hereby make it explicit help the organization to develop and create awareness of the knowledge i. e. professional medical drug development experience from person can be formally documents from the average person team and circulated to the other development teams so everyone will be aware of the particular situation or incident.

Other Frameworks

Learning Organization - Garvin's 5 Blocks

As commonly said, to be before competition, organization constantly must improve the way the business enterprise is done. To enhance the business, group must learn things much faster than their opponents. But more such improvements running a business fail because many mangers do not realize the importance of learning (Garvin, 1993).

Garvin (1993) say if a business wants to become learning group then it is strongly recommended to master these five activities,

Systematic problem dealing with - Don't solve problem on gut instinct but instead used data.

Experimentation with new methods - Bring small tests to existing process and gain knowledge.

Learning using their own experience and past background - Review and use of learns learned from the past

Learning from the encounters and guidelines of others - Usage of knowledge from the macro environment like competition.

Transferring knowledge effectively throughout the organization - Initiating interdisciplinary and cross disciplinary learning environment to switch and talk about knowledge.

Social Learning - I Space

I-Space is a communal learning conceptual model that relates to data structuring to data posting within the business (Boisot, 1995). This construction really helps to analysis the energetic flow of knowledge in two aspects i. e. framework and showing of information, more you structure information more faster and extensively used. I-Space is otherwise represented as three dimensional model (amount 3) - codification, abstraction and diffusion. Structuring of information will be offered by the codification and abstraction dimension and sharing of information will diffusion sizing (Boisot, 1995).

Dalkir (2007) feels Boisot model is the integration of theoretical groundwork of communal learning and provides the hyperlink between information and knowledge management in a best way. He also suggest through this I-Space cultural cycle business can control their knowledge property well we compare to other KM models.

Figure 3: The Community Learning Pattern [Boisot 1998:60]

Emotional Brains and Knowledge Transfer

Emotional intelligence is being well alert to own feelings and of others within an organization, managing emotions well within our home and in other's romance (Mortiboys, 2005:7). Corresponding to McKenna (2006) it is more worried about psychological action and social skill of person.

Nonaka (1994) belief the success and failing of knowledge management within an organization depends how the individual worker create and copy knowledge with others so worker is the best accountable person deciding the success. Higgs and Dulewicz (2002) discuss about seven elements like self applied awareness, emotional inspiration and management, taking care of marriage with others will help individual more brilliant on any situation and also add towards team working.

Knowledge Management potential issues and conquer - CellTech

Excess of exploitation or exploration - competency trap

During the 1980's CellTech was more comfortable in doing deal manufacturing which period refers to Exploitation. When new CEO shifted the concentration of the company to product development through R&D collaboration which period can be referenced exploration. In order of the case study CellTech appears to have managed a balance between exploitation and exploration but taking into consideration the period of a decade in contract manufacturing with hardly any focus on exploration gives a picture that CellTech prefers to stay on the safe place with exploration. When CellTech got into the cash shed and lost the support of talk about holders, then only realized to do something different from the usual.

According to March (1991) business prefer to stay either on exploitation or exploration in long haul which means this competency snare lead the business for an unacceptable learning. In order to avoid competency capture CellTech should constantly create center competencies in its business to remain prior to the competition and since main competencies are the one's which are not easily copied by other rival.

Change Management

During the organizational change culture regularly becomes the target of attention. Culture has great impact on productivity and working environment of a business (Boonstra, 2004). Inside the CellTech research study when the organizational change was going on after the appointment of new CEO, organizational cultural elements were not be considered for the change but instead top management were pushed to talk short-term improvement decision to improve current situations.

Davenport & Prusak (2000) feels the leader of the organization should understand the culture from the entire firm and community level to share knowledge. The change management will bring changes in the working culture of the individual and can impact the cultural learning pattern. Johnson and Scholes (2002) ethnical web can help the organization to recognize the cultural impact using the paradigm. CellTech should use Culture web when going for any change management to audit the current cultural component and define the future culture predicated on the paradigm. This will re-mould value and action of the individuals and make then to feel better destination to work and show knowledge.

Classification of Knowledge

Goh (2002) says Performance of knowledge transfer depends on Kind of knowledge that s being shared so CellTech should recognize the various type of knowledge available and created in the organization i. e. the tacit and explicit knowledge. CellTech should use SECI model to build up supportive framework that encourage the transfer of knowledge between tacit and explicit. This framework will help CellTech to bring the tacit individual knowledge out to the group and last make other individual to internalize it. Because the emphasis of CellTech is within R&D, there will be more tacit knowledge created at the end of each new development like personal connection with certain drug symptoms through the research.

Relationship between source and recipient

For the data transfer to be effective the recipient and source should maintain an intention to talk about and get knowledge of course, if the recipient absence interest to soak up and retain the knowledge then it become a barrier to the data transfer (Szulanski, 1996). The "Clubs of old" versus new scientist will be the best instance to use from CellTech, creating sentiment brains among individuals and teams to make sure they are aware of company value of posting and moving knowledge. By increasing the value through emotional brains will create awareness subconsciously to drive everyone to talk about knowledge without attracting any limitations. Creating breakout areas near laboratory can help certain lengthen to socialize people but creating awareness mental will drive them to create opportunities independently. This might be the greater share of tacit to tacit knowledge.


From the CellTech we can easily see the knowledge advancement and presence during different growth periods and it attracts the organization to regulate the knowledge effectively. By see the end part of the research study, it is clear that CellTech wanted to learn and monitor the business by setting-up various review systems. This working report also have researched few potential issues in putting into action knowledge management plan and the workaround solution to get over using frameworks also have been suggested to comprehend knowledge circuit.

Gavin's (2002) say that "Learning organizations aren't build overnight" and it needs to be cultivated, processed progressively over time. On this report we've discussed various models and frameworks as part of knowledge management which may bring CellTech a great edge in controlling its business and stay competitive on the market. To form a learning organization it is highly reliant on exchange of experience and knowledge with others and as a result execution of knowledge management will lead to upsurge in competitiveness.

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