Wharton Chapter 15 - Managing Dynamic Knowledge Networks

Chapter 15 discusses the power of networks and knowledge sharing is very important with emerging technology. Firms must gather the knowledge that circulates around the web and couple that with their own knowledge to form new, useful knowlegde that can be used the firms advantage.

This is first done by analyzing the network and determining the relationships, the flow of knowlege in and around the networks, and who the contacts or "actors" are in the network. Links can then be established to determine the flow and the possible linkages to knowledge. These linkages might include alliances, joint authorship, board interlocks, job changers, or electronic communication. Linkages that may also include "proximity" or area links based on geographics, similar works in technology, cliques working on common goals, or through patent citations.

Networks help establish the outcome of a technology. The sharing of information can help shape the technology both in function and use. Ultimately, these technologies can shape the future for many companies and there are many M&A that occur because of the networks and the technologies a company might possess. Companies should analyze and envision what the networks might looks like, how they will participate in the networks, and how they can harness the knowledge from these networks to create their own advantage.

A new startup firm such as EtripTrader might look at the networks avaible to the company to help build the product and protect the innovation. The idea started with the pilot contacting his son to code the project. The CEO then looked at the competitors products (Sabre airline software - http://www.sabreairlinesolutions.com/products.htm) to analyze features and functionalities. They then called upon Microsoft to help with the coding aspect of the project and used the resources from the Idaho Small Business Development center to gain more networks and contacts to further develop the company. Now, the company is networking with Angel Investors and other VC's to gain money to further develop and market the system. All of these networks were necessary to create and further develop the product.