SECI model
(Nonaka Takeuchi)

A unified model of dynamic organizational knowledge creation. Explanation of SECI model of Nonaka and Takeuchi. ('95)

What is the SECI model? Description

Ikujiro Nonaka and Hirotaka Takeuchi propose a model of the knowledge creating process to understand the dynamic nature of knowledge creation, and to manage such a process effectively: the SECI model. It consist of 3 elements:

SECI
Ba
Knowledge Assets

These 3 elements interact with each other organically and dynamically. The knowledge assets of an organization are mobilized and shared in 'Ba' whereas the tacit knowledge held by individuals is converted and amplified by the spiral of knowledge through:

Socialization
Externalization
Combination
Internalization

The three elements should be integrated under clear leadership so that the organization can create knowledge continuously and dynamically: it must become a discipline for organizational members.

SECI

The creation of knowledge is a continuous process of dynamic interactions between tacit and explicit knowledge. The four modes of knowledge conversion interact in the spiral of knowledge creation. The spiral becomes larger in scale as it moves up through organizational levels, and can trigger new spirals of knowledge creation.
SECO model four categories of Ba
Socialization. Sharing tacit knowledge through face-to-face communication or shared experience. An example is an apprenticeship.
Externalization. Developing concepts, which embed the combined tacit knowledge. And which enable its communication.
Combination. Combination of various elements of explicit knowledge: building a prototype is an example.
Internalization. Closely linked to learning by doing, the explicit knowledge becomes part of the individual's knowledge base (e.g. mental model) and becomes an asset for the organization.

Ba

This difficult concept (there is no exact translation of the word) can be defined as a shared context in which knowledge is shared, created and utilized through interaction.

The diagram illustrates the various types of Ba, each offering a context for a specific step in the knowledge-creating process.

Examples of the categories, using Seven-Eleven (Japanese convenience shops):

Originating Ba: the shop floor, it enables people to interact with each other and with customers.
Dialoguing Ba: the tacit knowledge of local employees is used to create sales forecasts, in dialogue with each other.
Systemizing Ba: the forecasts of sales are tested against the sales results and are fed back to the local stores.
Exercising Ba: using this information, and comparing it to reality, staff improve their skills and ability to make the forecasts.

Knowledge assets

These are company-specific resources that are indispensable to create values for the firm. They are the inputs, outputs, and moderating factors, of the knowledge-creating process.

To effectively manage knowledge creation and exploitation, a company has to 'map' its inventory of knowledge assets. Cataloguing is however not enough: knowledge assets are dynamic; new knowledge assets can be created from existing knowledge assets.

The role of leadership is illustrated in the next diagram:
SECI - role of leadership

Origin of the SECI model. History

The model from Nonaka and Takeuchi is based on Polanyi's distinction between tacit and explicit knowledge (1983) and provides an understanding of knowledge creation and management from a Japanese business culture perspective.

Strengths of the SECI model. Benefits

Appreciates the dynamic nature of knowledge and knowledge creation.
Provides a framework for management of the relevant processes.

Limitations of the SECI model. Disadvantages

It is based on a study of Japanese organizations, which heavily rely on tacit knowledge: employees are often with a company for life.
The linearity of the concept: can the spiral jump steps? Can it go counter-clockwise?

Book: Ikujiro Nonaka, Hirotaka Takeuchi - The Knowledge-Creating Company -

SECI model Forum (15)

Linking SECI Model to Innovation
"I have some thoughts on how Knowledge Management and Innovation are linked... There are a number of models for implementing innovation. A simple model that I like involves 5 steps:
1. Idea Generation
2. Idea Selection
3. Idea Implementation
4. Idea Sustaining
5. Idea Diffusion
I can see a close link between this model (which is still to be proven?) to the SECI model for Knowledge Management.
If we look on innovation management as managing "ideas", there seems to be an even closer link.
If we combine item 1. and 2. above and call them "Socialisation", the rest fits well with the final 3 steps in the SECI model.
I'd welcome your reactions on my observations. This could be an interesting discussion..."

(How) Does the SECI Model Work in Western Cultures?
"The SECI concept was developed (and works extremely well) for Japanese businesses (culture). I would be interested in how it is applied in Japan.
I believe it will not work well in western cultures that have a hierarchical approach to management (top down), where the boss "knows it all" and tells you what to do."

What is the Best Way to Transfer Tacit Knowledge?
"In my opinion, the SECI model is essence of knowledge management. With this model, we can grow to complex models creating complementary models and support tools.
The greater doubt is: what is the best way for transfering tacit knowledge?"

SECI Software Tools?
"Hi Everybody. I am looking for a software solution to support a SECI implementation.
Does anybody has a software product in mind? One based on SECI model?
Best regards..."

History of Knowledge Management
"I found that other models and concepts came after SECI model. Referring to history,
- "Since 1975, the knowledge management (KM) related developments have been the emerging subject in organizations" (Wigg, 1997).
- The momentum in knowledge management popularity came after Harvard Business Review published the first article by Nonaka, 1991 on “The Knowledge-creating Company”.
- In 1995, Oxford University Press published the book on “The Knowledge-creating Company – How Japanese companies create the dynamics of innovation” by Nonaka and Takeuchi.
- By 1997, numerous KM conferences were held in the US, Europe, Asia and Africa. Papers related to KM in journals and knowledge management-related books were published (Wigg, 1997).
- The SECI model was regarded as a dynamic model and was well received by the management practitioners (Rice and Rice, 2002)."

Commonality of SECI Model
"Is the SECI model the most used knowledge management model? Or, at least, the most 'adapted' one?"

Advantages Disadvantages Between SECI Model and Other Models
"What are the main advantages/disadvantages (and other main differences) between SECI model and other models?"

SECI for Integration between eTOM and KM System
"The SECI model has been implemented in many industries. Telecom industry has eTOM as business process framework with critical knowledge in each level of processes. It needs specific effort to integrate SECI with eTOM dealing with three different process areas: planning & thinking, operations and enterprises support."

SECI Model as a tool for developing an effective teaching pedagogy.
"My paper entitled "effects of mountain climbing learning analogy in the achievement and attitudes of university freshmen in mathematics" proved that this model, despite developed as an organizational knowledge creation process (for businesses), that it can be applied as a basis for effective knowledge transfer in the classroom. This is very important particularly in subjects like mathematics, where some students find it hard to cope with the lesson. It likewise supports the Social Learning Theory and the concept of John Dewey on "Learning by Doing"."

Capturing Experiences
"The best model of capturing data from those who posses experience/s. Sadly overlooked by Commercial & Research entities. e.g Ayurveda, Arts etc. "

SECI is a knowledge management process
"The SECI model can be easily appreciated as a KM process comprising (1) harnessing existing and creating new knowledge through the SECI process (2) implemented at forum(s) like shop floors/offices providing environment and incentive to share knowledge (3) among the concerned people. It makes lot of sense and can be easy to implement provided the leader demonstrates 'open door' and 'continuing dialogue' . It will however require huge commitment of time by the leader to 'listening'. But it is worth it!"

The Meaning of the Japanese Word Ba
"I need a bit more on "Ba". Is this word coming from Japanese? And if, yes, is it written with which kanji for "ba"? (場?)"

Implementing SECI in an Organization
"Can anyone explain how an implementation of SECI works and plz explain with an example? Thanks"

Recognition SECI Model
"I believe the SECI Model developed by Nonaka and Takeuchi has come to be the most recognised and accepted model of knowledge transfer all over the world. It is precise, clear and simple to understand.... That's what a good model should be like..."