This document discusses how communities of practice (CoPs) can capture value for both individuals and organizations. It presents the Macuarium Quadrant model which categorizes CoPs based on whether knowledge provides direct or indirect value, and objective or subjective value. Examples are given of how value can be captured in each type of CoP through tools, fees, advertising, and other methods. The goal is to help organizations measure and eventually monetize the value generated by CoPs.

1. MacuariumNetwork
Living Knowledge
Explaining and capturing CoP value
Miguel Cornejo
miguel@macuarium.com
3rd European Knowledge Management Summer School
San Sebastián, 7-12 September 2003

2. Contents
• Goals
• Knowledge as an enabler
• Knowledge as an asset
• Macuarium Quadrant and examples
• Capturing value
• Open discussion

3. Goals
• how Communities accrue value for users,
• how to map it
• how to capture that value in a way that the
organization can measure... and eventually charge
for.
for orgs: get value, publish news

4. Knowledge as an enabler
“knowledge” (model)
• the set of information that enables the receiver to satisfy a need.
• The sum of data and context necessary for a person to perform a
desired activity (physical, commercial, mental or emotional).
Value of being able
• it enables the holder to do something productive (allows to
create value).
• a scarcity component and will often be lower as more people
share it
• a competitive component, since it enables differentiation
The “share and keep fallacy”

5. Knowledge as an asset
An Asset:
• Quantifiable. Measure, parcel and trade.
• Valuable. Cost-independent. Expressable in a
common exchange good (say, money).
• Tradable. Can change hands and still be useful.
• Private. Someone can decide on it, and it can be
exclusively exploited.
Essentially: you can withhold, you can charge.
Communities are working knowledge exchanges.

6. Macuarium Quadrant and examples
People and organizations have different behaviour when:
• knowledge received can be directly applied to the improvement of
economic situation or the execution of a job,
• … or knowledge’s quality as an asset is high.
SUBJECTIVE / INDIRECT VALUE OBJECTIVE / DIRECT VALUE
Than when:
• knowledge received can only indirectly affect productive capacity, or not
at all (curiosity, leisure… the “priceless”),
• … or has low asset quality (unmeasurable, untradeable, public…).

7. Macuarium Quadrant and examples
OBJECTIVE
PROJECT C.
INDIVIDUAL
C. OF PRACTICE
INDIRECT DIRECT C. OF INTEREST
AMORPHOUS C.
SUBJECTIVE
ORGANIZATION

8. Capturing value in CoI
Individual wants:
OBJECTIVE
• Information
• Social integration
PROJECT C. Capture with:
INDIVIDUAL
C. OF PRACTICE • Extra search tools
INDIRECT DIRECT C. OF INTEREST
AMORPHOUS C.
• Member galleries / directories
• Private forums / chats
• Individualization (avatar)
Corporates want:
SUBJECTIVE
• Promotional target
ORGANIZATION
• Marketing research group
Capture with:
• Traditional advertising
• Infomercials
• Events
• Content-related ads
• Market-research tools

9. Capturing value in CoPs
Individual wants:
OBJECTIVE
• Solve practical doubts
• Recognition
Capture with:
PROJECT C.
• Membership fee
INDIVIDUAL
C. OF PRACTICE
INDIRECT DIRECT C. OF INTEREST • Extra search tools
AMORPHOUS C. • Paid content
• Yellow page listing
• Expert hotline
Corporates want:
SUBJECTIVE • Support service
ORGANIZATION • Innovation and best practices
• Knowledge stewardship (internal)
Internal CoP can be:
• (Strategic) marketing
- tool to enable knowledge transmission and work
efficiency of knowledge workers. Capture with:
- steward for a range of knowledge domains. • (see CoIs)
- upkeeper of knowledge objects. • Sponsored / dedicated CoPs
- emergency management tool. • Outsourced support
- talking-shop and decision-making centre • Goal measurement (internal)

10. Capturing value in Amorphous Coms.
Individual wants:
OBJECTIVE
• Gossip (low relevance info)
• Loose social integration
Capture with:
PROJECT C.
• Private forums /chats
INDIVIDUAL
C. OF PRACTICE
INDIRECT DIRECT C. OF INTEREST • Gaming clans
AMORPHOUS C. • Instante messaging options
• Personalization (avatars)
Corporates want:
• Wide-focus marketing
SUBJECTIVE • Potential targeting
ORGANIZATION Capture with:
• User data mining
• Low price traditional advertising

11. Capturing value in Project Coms.
Individual wants:
OBJECTIVE
• Shared-goal collaboration
• Relevance to work
Capture with:
PROJECT C.
• Collaboration tools on demand
INDIVIDUAL
C. OF PRACTICE
INDIRECT C. OF INTEREST
(elancers)
DIRECT
AMORPHOUS C. • Private areas on demand (elancers)
Corporates want:
• Higher employee efficiency
• Better management and control
SUBJECTIVE Capture with:
ORGANIZATION • Wider collaboration toolset
• Wider control toolset
• Better reporting tools

12. Open discussion
• Comments, disagreements
• Examples
• More ideas for capturing value
• …

13. Macuarium Quadrant and examples
OBJECTIVE
PROJECT C.
INDIVIDUAL
C. OF PRACTICE
INDIRECT DIRECT C. OF INTEREST
AMORPHOUS C.
SUBJECTIVE
ORGANIZATION

14. MacuariumNetwork
Living Knowledge
Contact: Miguel Cornejo
miguel@macuarium.com