The SECI Model
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 consists 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.
SECIThe 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.
SocializationSharing tacit knowledge through face-to-face communication or shared experience, an example is an apprenticeship.
ExternalizationDeveloping concepts, which embed the combined tacit knowledge, and which enable its communication.
CombinationCombination 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.
BAThis 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.
There are Four types of Ba, each offering a context for a specific step in the knowledge-creating process.
Originating BaThe shop floor, it enables people to interact with each other and with customers.
Dialoguing BaThe tacit knowledge of local employees is used to create sales forecasts, in dialogue with each other.
Systemizing BaThe 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 improves their skills and ability to make the forecasts.
Knowledge AssetsThese 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. 
• Ba
• Knowledge Assets
• 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.
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.
There are Four types of Ba, each offering a context for a specific step in the knowledge-creating process.
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 improves their skills and ability to make the forecasts.
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.
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