In his recent post, “Understanding Tacit Knowledge to Mitigate Risks in the AI Era,” Paul Baier discusses the following three types of knowledge that require greater understanding for people and organizations to succeed in the GenAI era:
To grasp the implications of AI on business competitiveness, we must first understand three types of knowledge:
- Explicit Knowledge: Information that can be easily documented, shared, and applied, such as manuals, databases, or formalized processes.
- Tacit Knowledge: This is deeply ingrained, intuitive knowledge typically gained through experience. It includes insights, techniques, and processes that are not easily codified or transferred.
- Emergent Knowledge: A new concept arising from the AI era, representing insights and patterns that emerge when vast amounts of data are processed by AI systems, particularly Large Language Models (LLMs).
So, the question that immediately came to my mind reading the above is: What does this have to do with utilizing an agent-based versus equation-based model?
For example, which one of the three must you possess, or are having all three essential to success?
Stuck On #1 (Explicit Knowledge)
When it comes to the curriculum, most procurement and supply chain education programs are stuck at the “Explicit Knowledge” stage. In short, this is the starting point or procurement primer stage, in which there is an understandable focus on the basics.
But this is where most education programs end. As a side note, the initial accreditation courses should also include solution provider sales and marketing professionals – in fact, it might be a great idea to make that a mandatory requirement for anyone serving the procurement and supply chain industries.
After all, how can you sell something or write about something if you don’t have at least a basic understanding of the industry you are trying to service?
However, more than academic understanding and knowledge is needed, and this is where questions arise regarding procurement accreditation courses, or for that matter, any academic-only oriented courses in all industry sectors. Do a little research on the perceived value of an MBA, and you will likely see a steady decline in its “status” as an indication of elevated expertise and success.
Based on the above, this is where the following two knowledge types come into play.
Unspoken Knowledge #2 (Tacit Knowledge)
Understanding how to do something well technically doesn’t necessarily mean you will seamlessly transition to practical accomplishment in the real world. There are book smarts and street smarts. I have rarely met anyone who can succeed without the latter, no matter how high their SATs may be.
Empirical knowledge – the ability to observe and understand a real-life situation and know what to do through a combination of knowledge types one and two- makes the first a worthwhile exercise in knowledge acquisition. However, having explicit knowledge without tacit knowledge diminishes the value of having the first dramatically, or as Calvin Coolidge once said, “Education will not; the world is full of educated derelicts.”
In this area of knowledge type, the separation between people begins to widen.
Not So New #3 (Emergent Knowledge)
In the late 1990s, I developed a theory called “strand commonality,” in which seemingly unrelated and disparate data streams contained attributes that were actually related, impacting a collective outcome.
With funding from the Government of Canada’s Scientific Research & Experimental Development program “SR&ED, my team and I created one of the first web-based platforms using advanced self-learning algorithms within a nascent AI architecture to support the Department of National Defence’s IT infrastructure. Once again, you can read about the results through the following two links:
This third “emergent knowledge” type empowers and fully validates the previous two, e.g., explicit knowledge and tacit knowledge. I would even suggest that developing an effective ProcureTech solution is very difficult without this third knowledge type. If any of the three knowledge types are missing, your chances of developing an effective and enduring solution beyond the pilot stage are highly unlikely.
“The success rate of ProcureTech initiatives moving beyond the pilot stage varies, but a significant percentage fail to progress to full implementation. Estimates suggest that 30-50% of procurement technology pilot programs do not transition to wider adoption. These failures can be attributed to a variety of reasons, including:” (Source: ChatGPT)
As you contemplate the above statistic, what percentage of the 30 – 50% that advance beyond the pilot stage are considered successful? I see that number as more sobering.
What Does It All Mean?
Unpacking the meaning of the above will take more virtual ink and space than I want to spend at this point.
However, to stimulate the initial discussion, I would suggest the following “procurement professional” classification or taxonomy:
Explicit Knowledge – Non-strategic, entry-level transactional positions.
Tacit Knowledge – Strategic, mid to senior management relational positions.
Emerging Knowledge – ProcureTech solution developers and providers.
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Procurement Insights
Which Knowledge-Type Are You?
Posted on September 9, 2024
0
In his recent post, “Understanding Tacit Knowledge to Mitigate Risks in the AI Era,” Paul Baier discusses the following three types of knowledge that require greater understanding for people and organizations to succeed in the GenAI era:
To grasp the implications of AI on business competitiveness, we must first understand three types of knowledge:
So, the question that immediately came to my mind reading the above is: What does this have to do with utilizing an agent-based versus equation-based model?
For example, which one of the three must you possess, or are having all three essential to success?
Stuck On #1 (Explicit Knowledge)
When it comes to the curriculum, most procurement and supply chain education programs are stuck at the “Explicit Knowledge” stage. In short, this is the starting point or procurement primer stage, in which there is an understandable focus on the basics.
But this is where most education programs end. As a side note, the initial accreditation courses should also include solution provider sales and marketing professionals – in fact, it might be a great idea to make that a mandatory requirement for anyone serving the procurement and supply chain industries.
After all, how can you sell something or write about something if you don’t have at least a basic understanding of the industry you are trying to service?
However, more than academic understanding and knowledge is needed, and this is where questions arise regarding procurement accreditation courses, or for that matter, any academic-only oriented courses in all industry sectors. Do a little research on the perceived value of an MBA, and you will likely see a steady decline in its “status” as an indication of elevated expertise and success.
Based on the above, this is where the following two knowledge types come into play.
Unspoken Knowledge #2 (Tacit Knowledge)
Understanding how to do something well technically doesn’t necessarily mean you will seamlessly transition to practical accomplishment in the real world. There are book smarts and street smarts. I have rarely met anyone who can succeed without the latter, no matter how high their SATs may be.
Empirical knowledge – the ability to observe and understand a real-life situation and know what to do through a combination of knowledge types one and two- makes the first a worthwhile exercise in knowledge acquisition. However, having explicit knowledge without tacit knowledge diminishes the value of having the first dramatically, or as Calvin Coolidge once said, “Education will not; the world is full of educated derelicts.”
In this area of knowledge type, the separation between people begins to widen.
Not So New #3 (Emergent Knowledge)
In the late 1990s, I developed a theory called “strand commonality,” in which seemingly unrelated and disparate data streams contained attributes that were actually related, impacting a collective outcome.
With funding from the Government of Canada’s Scientific Research & Experimental Development program “SR&ED, my team and I created one of the first web-based platforms using advanced self-learning algorithms within a nascent AI architecture to support the Department of National Defence’s IT infrastructure. Once again, you can read about the results through the following two links:
This third “emergent knowledge” type empowers and fully validates the previous two, e.g., explicit knowledge and tacit knowledge. I would even suggest that developing an effective ProcureTech solution is very difficult without this third knowledge type. If any of the three knowledge types are missing, your chances of developing an effective and enduring solution beyond the pilot stage are highly unlikely.
“The success rate of ProcureTech initiatives moving beyond the pilot stage varies, but a significant percentage fail to progress to full implementation. Estimates suggest that 30-50% of procurement technology pilot programs do not transition to wider adoption. These failures can be attributed to a variety of reasons, including:” (Source: ChatGPT)
As you contemplate the above statistic, what percentage of the 30 – 50% that advance beyond the pilot stage are considered successful? I see that number as more sobering.
What Does It All Mean?
Unpacking the meaning of the above will take more virtual ink and space than I want to spend at this point.
However, to stimulate the initial discussion, I would suggest the following “procurement professional” classification or taxonomy:
Explicit Knowledge – Non-strategic, entry-level transactional positions.
Tacit Knowledge – Strategic, mid to senior management relational positions.
Emerging Knowledge – ProcureTech solution developers and providers.
30
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