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Presents an extended study of the transformation of a university research group into a learning organization. The transformation process was realized during the rapid development of a small group into a medium‐sized organization through the addition of major projects, necessitating change from a hierarchy to a matrix organization. Central to the development of the organization and its learning ethos was the introduction of a hypermedia groupware system (PD1). Documents the cycles of evaluation and change up to assessment of PD1. Concludes that the evolutionary transformation of an organization can be a managed and a learning process, involving, and depending on, all participants and their constructive use of an enabling information technology infrastructure in a period of change and transition.