Development of the Virtual Business School Concept

Han van der Pool

 

(Strategic Issues at the dawn of the next Millennium 1999 Lansa Publishing)

1               INTRODUCTION

To be competitive in this global economy, businesses need to acquire a more sophisticated, more cost effective, and more on-going means for distributing knowledge and training. As we go into the next century, staying ahead of change is becoming the measure of success. Since change is occurring faster every day, a successful organisation will be one that learns continuously and quickly! Changes are demanding new strategies in the way employees are trained and educated. In our service oriented economy new jobs are requiring a higher skill level, increased flexibility, and an increased ability to deal with change.

In today’s Information Age, learning can no longer be confined within the four walls of a classroom.  The traditional instructor, armed with a textbook, is no longer the sole source of an educational experience. Information resources are everywhere, often separated from the learner by time and distance.

The changing demographics of participants of higher education are placing new demands on educational institutions. Employees are more diverse and expect to have greater access to educational resources and alternatives, particularly from beyond the school campus and at flexible times.

The demand for such educational expertise (to support social and economic development) is forcing higher education to look for new educational systems and new delivery mechanisms. A solution can be On-Demand Learning which provides for “anytime, anywhere” access to network based learning resources.

Roger Schank  (1997) states that the “teaching by telling” system of training is history. “The modern employee is raised on television, personal computers and microwave foods”. Today’s employees must be intrigued and actively motivated with attention being paid to “learning by doing” programmes. Through virtual reality used in computer simulations and role playing scenarios, virtual learning shows how to radically rethink the company’s entire training process.

Collis (1996) states that “Distance Learning” can be  recognised as the key to delivering more training to more people on more subjects with higher impact and effectiveness, in a more cost-effective way.

2        FACTORS DRIVING THE NEED FOR CHANGE.

Transforming the learning environment through innovative uses of technology is a goal of many education programmes today. Educators and policy leaders are envisioning a new approach to instruction based on communications and computer technology using On-Demand Learning. A number of factors are driving this need for change:

2.1         Technological Competency

Being technologically competent has become a requirement in the workforce. It is developing into a necessary and fundamental skill. On-Demand Learning puts technology in the hands of the employees, exposing them to computing and communications tools in a self-directed mode of learning.

2.2     Re-Skilling

It is estimated that the shelf life of a degree today is only five years, and the pace of knowledge advancement requires constant updating (Verville 1995). Re-skilling is becoming a requirement for workers. According to the American Society for Training and Development, by the year 2000, 75 percent of the current workforce will need to be retrained just to keep up with technological changes. On-Demand Learning allows for "just-in-time" access in electronic formats that ensure that the rapidly changing information is kept up to date.

2.3     Demographics

The changing demographics of higher education are placing new demands on institutions. Students, who represent future employees, are more diverse: they are older, must balance other life and career priorities, and some prefer to attend college on a part-time basis. Individuals expect to have greater access to educational resources and alternatives, particularly off-campus and at flexible times. On-Demand Learning provides for "anytime, anywhere" access to network based learning resources.

2.4     Increasing Demand

In many countries, the demand for higher education can not be met. This demand for educational expertise to support social and economic development is forcing higher education to look for new educational systems and new delivery mechanisms. By eliminating the need for instructors to be involved in some facets of the instruction process, On-Demand Learning allows for new efficiencies and therefore cost savings.

3        VIRTUAL BUSINESS SCHOOL

Ahold is one of the leading food retail companies in the world. From its homebase located in a small grocery shop in Zaandam, the company has expanded rapidly and currently has more than 3,000 outlets located on a few continents. The stores generated $ 25 billion USD in 1997 sales and offer jobs to more than 200,000 employees worldwide.

Since knowledge is one of the most important ingredients for Ahold in order to continue its competitive advantages, the management and distribution of this knowledge to employees within Ahold and its subsidiaries is paramount. This is especially important since Ahold´s employees are developing their retail formats in these different regions in the world. Tools for Distance Learning and Computer Based training are developed and the concept of a “Virtual Business School” has been studied (Jonker et al 1997).

A Virtual Business School is an on-line environment based on Intranet in which Ahold´s operating companies are able to both develop and manage skills and knowledge within and in between Ahold companies. The school facilitates knowledge exchange through a physically non-existing medium; consisting of a cooperation of several software applications. Input and output are distributed in this way via ‘cyberspace’. The Virtual Business School is the tool for the improved exchange of knowledge for the entire Ahold organisation. Through this tool, the company can deliver training in traditional group learning environments with a range of group video solutions or it can deliver programmes right to the desktop. The school is seen as the ideal tool to fulfill the continuous need for information in a more efficient global way.

 

The Virtual Business School can be visualized by the next figure:

 

 

 

 

 

 

These components facilitate the following activities:

3.1     Education Platform

This platform supplies Computer Based Training programmes, which come from a conversion of training programmes currently being used in classrooms with groups of people and a tutor. Together with the most recent Computer Based Training programmes these are being distributed through the Virtual Business School.

It is possible to download and fulfill the training from any location at any time with a connection to the Virtual Business School. Necessary tutoring and evaluation of results is accomplished by uploading this information to a (distant) tutor.

Intelligent Tutoring systems are capable of corrective feedback and adapt their presentations to suit the learner, basing the responses on the actions of the learner.

This tutorial software usually includes work examples and provides the student the opportunity to assess their understanding with questions, answers and feedback.

Drill and practice packages offer structured reinforcement of previously learned concepts. They are based on question and answer interactions and should give the student appropriate feedback. Drill and practice packages may even use games to increase motivation.

Computer Based Simulations model an experiment or a real life or imaginary situation. The context of the simulation may be a business plan or an animation of the daily worktasks of a supermarket manager. Simulations usually are based on interactive graphics and give the learner the ability to visualise a process and explore the effect of changing parameters on the operation of a system.

In the case of training programmes or courseware where personal human interaction is mandatory, the theoretic part could be done via the Virtual Business School in advance thus reducing the total time the employee is actually visiting the course.

Employees’ performance could be assessed in the form of pre-tests and the evaluation of results through final testing exercises.

 

3.2     Discussion Platform

This platform supplies meeting places for virtual discussion groups. These groups can discuss business topics or specific upcoming problems. The platform facilitates guided discussions following the ‘chatbox’ principle. The discussion platform is interactive (or semi-interactive in the case of discussions between employees in different time zones).

The Computer-mediated communication consists of several forms including electronic mail, electronic conferencing, video conferencing and the World Wide Web. These tools allow employees to share ideas and information and to collaborate on joint work.

3.3     Library Platform

This platform provides information and knowledge stored in databases, where it can be supplemented and from which it can be retrieved. It informs employees on company policies, regulations and best practices in certain operations. More specifically, it informs employees on market/region information in terms of population, preferences, cultures, habits, governments, regulations/laws, economical and financial information.

Information retrieval systems store knowledge in a structured way and allow the learner to browse or search for information as required.

3.4     Social Platform

This platform gives the opportunity to discuss various topics with employees from the same or other functional areas. Depending on the topic, the discussion could be inter-company. As well as providing a range of on-line communication tools, on-line communications can provide access to the World Wide Web (WWW) which consists of millions of informative sites valuable to the company. By visiting one site of particular relevance, you are likely to find at that site a number of links to other link sites, which will also prove of interest to you. The WWW is capable of supporting multimedia pages as well as plain text. It is by no means a passive resource.

It is possible for employees to search the web to locate sites of interest, to give feedback to information providers through on-line comment forms and to create web sites for use within the teaching and learning process.

3.5     Company Platform

This is where all general information of the company is accessible. This also can be used for information access by external stakeholders. It can inform “visitors” on the individual organisations and their structures. This platform could contain information regarding company organisations and structures, addresses, e-mail, fax and telephone numbers.

3.6     Career Platform

This platform provides information linked to promotion policies, management development, development tracks and job-profiles. Employees can judge their own competencies against the necessary job requirements by using self-assessments tests to benchmark themselves against other employees. The career platform also lists the available vacancies in the different operating companies.

4        IMPACT ON LEARNING

4.1     Learning Effectiveness

One of the key questions associated with educational technology is whether or not the technology actually contributes to learning. Since the first uses of educational radio and television, hundreds of studies have tried to assess the instructional effectiveness of new technologies. The understanding of educational technology's effectiveness has evolved through the outcomes of studies, which focused on mode of instruction, media attributes, context of learning and distance learning success factors. Learning effectiveness, in these studies, has been defined in terms of traditional measures of student achievement, for example, test scores and final grades.

A range of studies about technology's impact on learning effectiveness have demonstrated positive results when educational technology is employed (Minoli 1996). Much of this research has focused on specific features or contexts of educational technology use, providing rich information to those interested in the effective use of technology especially in terms of specific factors, which have contributed to learning success

4.2     Knowledge Management

The Virtual Business School can also have an important effect on the knowledge management within the company. According to Weggeman (1997), knowledge is the capability of a person to conduct some task by connecting (external) information with his own information, experiences and attitudes.

 

The definitions about knowledge in the literature are diverse. That is mainly caused by the fact that knowledge can be split up into two types: tacit knowledge and explicit knowledge. (Nonaka et.al. 1995)

·     Tacit knowledge is personal, context specific and therefore hard to formalise and communicate;

·     Explicit knowledge is theoretical and is easy to communicate by using language and/or numbers.

 

These kinds of knowledge can be converted. These conversion processes are shown below and will be explained afterwards.

  Tacit Knowledge      to  Explicit Knowledge
Tacit    
Knowledge Socialisation  Externalisation
 

From

   
   
Explicit Internalisation  Combination
Knowledge    

 

4.2.1  Socialisation

This is the process where tacit knowledge goes to tacit knowledge. In practice this is the process where a person requires knowledge from others without the need for language. Through observation, imitation and trial and error, one can obtain tacit knowledge. The key in this process is experience.

Without some form of sharing experiences socialisation is a very difficult process. Just giving information is useless when no emotion or context is included. An example is the process that occurs between product developers and the customer. The interactive contact with the customer before, during and after product development and introduction is an ongoing process of socialisation.

4.2.2  Externalisation.

This process, where you go from tacit knowledge to explicit knowledge, is probably the most interesting one. As long as knowledge stays tacit and therefore is in the mind of only one person and can only be spread around the company in a one-on-one situation, just a small part of the company takes advantage of this knowledge.

As soon as the externalisation takes place the knowledge can be spread out and therefore reach more people in a faster way. As a result, more people can use the knowledge in their job or in their process of creating new tacit knowledge. When people are busy with this conversion they start using metaphors, concepts, hypotheses or models. All these are expressed in language. Because language is often inadequate, conversation or interaction between individuals is stimulated. Externalisation is typically seen in the process of concept creation where the use of metaphors is most common.

The discussion platform within the Virtual Business School facilitates guided discussions or applications following the ‘chatbox’ principle. The discussion platform is interactive and supports this externalisation process. It allows employees to share ideas and information and to collaborate on joint work.

4.2.3  Internalisation

 

This denotes the process from explicit knowledge to tacit knowledge. This conversion takes place when people use explicit knowledge to create or rather to enrich their own tacit knowledge. “Learning by doing” is a good example of this conversion. By performing a job you use explicit knowledge to know what you are doing and why you are doing that, but by increasing your experience you create tacit knowledge.

4.2.4  Combination

This is the process where a person goes from explicit knowledge to explicit knowledge. This conversion is a result of combining different aspects of explicit knowledge. Reconfiguration of existing information through sorting, adding, combining and categorising can lead to new knowledge. These Combinations can happen when people exchange documents, have meetings or even use the telephone. This process constantly takes place for example, when two departments are working together on one joint process.

A Virtual Business School as an on-line environment in the form of an Intranet, in which the companies will help to develop and manage skills and knowledge within and in between companies, facilitates knowledge exchange in the total Ahold organisation and facilitates the creation of new knowledge.

 

Although knowledge has always been around in companies, today knowledge management becomes increasingly more important.

Weggeman (1997) defines Knowledge Management as: The combination of activities which seeks ways to improve performance of processes, organisations and systems in general from the perspective that knowledge is the crucial production factor.

A Virtual Business School facilitates knowledge exchange within the organisation and will help to create new knowledge.

The knowledge intensity is being supported by two factors: technology push and a pull factor comprised of the adverse economical effects for a company. When securing its competitive position, a company has to follow its competitors going into the information age.

5        FUTURE DIRECTIONS

The company’s competitive edge will be greatly influenced by its acquisition and the application of knowledge in its operations. Globalisation translates as having open borders, international mobility of employees, technological improvements in IT, telecommunication and transport. As such, globalisation opens new and daring possibilities for companies.

Globalisation has social effects as well. Not only are employees internationally mobile, they are increasingly willing to be employed in an internationally operated company.

Distance Learning programmes will take many new and increasingly more powerful forms on tomorrow’s superhighway. As the world continues to change, business, industry, education and governments alike are finding it increasingly difficult to keep their workforces competitive and ‘up-to-date’. Further, the imposition of time, distance, and other constraints on workers and learners will create a strong demand for more efficient and expedient ways to distribute necessary information.

The call will be for innovative technological systems that can reach a great number of people with vast amounts of information under a variety of conditions. The challenge laying ahead is the conceptualisation of how such systems might work, given the current and future state of the technology; the needs of the workers (e.g., entry-level skills, workload capacities, degree of control and satisfaction) and teaching effectiveness via Distance Learning.

A key difference will be in terms of time, place, and type of information exchange. For many users, training and education in the future, will be a ”just-in-time” knowledge experience. Students will not need to travel to a distant classroom or arrange their schedules to allow them to interact with other students and the instructor. Rather, in the twenty-first century, employees and students will access necessary or desired information from a Distance Learning system when they need it, where they need it, and in a form convenient to them.

REFERENCES

·     Collis, B., 1996, Tele-learning in a digital world, the future of distance learning, International Thomson computer press.

·     Grenier, R. and G. Metes, 1995, Going Virtual: moving your organisation into the 21st century, Prentice Hall.

·     Jacobs, D., 1996, Het Kennisoffensief, Samson Bedrijfsinformatie, Alphen aan den Rijn.

·     Jonker, J. et.al., November 1997, Building a Conglomerate Virtual University, Nijenrode University.

·     Minoli, D., 1996, Distance Learning Technology and Applications, Artech House, Boston.

·     Nonaka, I. and H. Takeuchi, 1995, The knowledge creating company, Oxford University Press, Oxford, New York.

·     Odenwald, S.B., 1993, Global training; How to design a programme for the multinational Corporation, The American Society for Training and Development.

·     Pool, J.P. van der, 1996, Just-in-time Learning bij Ahold, MD journal.

·     Schank, R., 1997, Vitual Learning, McGraw-Hill.

·     Weggeman, M., 1997, Kennismanagement; Inrichting en besturing van kennisintensieve organisaties, Scriptum, Schiedam.

·     Verville, A.L., 1995, in: L.J. Bassie, G. Benson and S. Cheney, The Top Ten Trends, American Society for Training and Development.