April 9 - Value of IT and COPs

We have learned that a COP blossoms within an organization in many ways, but one of the most important ways is by bringing value to the business. Once an organization realizes this value, the COP is supported through funding, management backing, and encouragement by the company for employees to become members. According to Wenger, McDermott, & Snyder (2002), “communities of practice create value by stewarding highly prized knowledge resources” (p. 166). But, how does an organization measure and manage the value of knowledge since it is a dynamic, intangible item? The answer is, you cannot measure knowledge specifically, “but you can measure and manage the “knowledge system” through which it flows and creates value” (Wenger, McDermott, & Snyder, 2002, p. 166). An organization wants to understand how an idea was created, how it was stewarded by the community, and then how it helped solve a client’s problem or how it influenced a client to do business with the organization. This information is then reviewed and used to determine how much value a COP is bringing to the organization. To find the steps in a knowledge system, the authors explain that stories would be a good place to start. “Stories are the best way to traverse the knowledge system in a way that explains the linkages between community activities, knowledge resources, and performance outcomes” (Wenger, McDermott, & Snyder, 2002, p. 168).

Authors Post and Anderson (2006) pose two very interesting questions, “how can you use information technology to improve your organization and make it better than your competitors” (p. 395) and “how can IT support the operations of the firm to provide a competitive advantage” (p. 408). The answers to these questions are nevertheless important, but even more importantly, the words information technology can be replaced with community of pratice. How can you use COPs to improve your organization and make it better than your competitors, and how can COPs support the operations of the firm to provide a competitive advantage? A COP is nothing more than a tool to be utilized an organization to expand and grow. If one determines the value of information technology in a firm, why wouldn’t the firm want to determine the value of COPs?

If a COP is not contributing an acceptable amount of value to an organization, would it be more beneficial for the business to dismiss the COP or try to find ways to bring it back to life?

Post, G. V., & Anderson, D. L. (2006). Management Information Systems: Solving business problems with Information Technology. New York: McGraw-Hill/Irwin.

Wenger, E., McDermott, R., & Snyder W. M. (2002). Cultivating communities of practice: A guide to managing knowledge. Boston: Harvard Business School Press.