Knowledge Management

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CHAPTER 9

• Knowledge Management

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Knowledge Management

• Ancient
• Collaboration at the organizational level
• Could revolutionize collaboration and computing

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9.1 Opening Vignette Knowledge Management Gives
Mitre a Sharper Edge

• Mitre - knowledge management system (KMS) to
  leverage organizational knowledge effectively
  throughout the organization
• Internal marketing during development
• Supported at the highest level
• Provided an important application
• Organizational culture shift was critical
• Saved 54.91 million / invested 7.19 million

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9.2 Knowledge Management

• Leverages intellectual assets
• Delivers appropriate solutions to anyone,
  anywhere
• Good managers have always done this
• Ancient concept

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Knowledge Management

• Helps organizations
• Identify
• Select
• Organize
• Disseminate
• Transfer
• Important information and expertise within the
  organizational memory in an unstructured manner

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Knowledge

• As a form of capital,
• must be exchangeable among persons, and
• must be able to grow

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Knowledge Management

• Requires a major transformation in organizational
  culture to create a desire to share

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9.3 Knowledge

• Information that is contextual, relevant, and
  actionable
• Knowledge is INFORMATION IN ACTION
• Higher than data and information

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Data, Information and Knowledge
Relevant and actionable
Processed
Data
INFORMATION
KNOWLEDGE
Relevant and actionable data
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Knowledge Types

• Advantaged knowledge
• Base knowledge
• Trivial knowledge
• Explicit knowledge
• Tacit knowledge

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Explicit Knowledge

• Objective, rational, technical
• Easily documented
• Easily transferred / taught / learned

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Tacit Knowledge

• Subjective, cognitive, experiential learning
• Hard to document
• Hard to transfer / teach / learn
• Involves a lot of human interpretation

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The SECI model
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Knowledge Has

• Extraordinary leverage and increasing returns
• Fragmentation, leakage, and the need to refresh
• Uncertain value
• Uncertain value sharing

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9.4 Organizational Learning and Organizational
Memory

• Group memory
• Learning
• The learning organization
• Organizational memory
• Organizational learning
• Organizational culture

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Organizational Memory

• Individual wells
• Information well
• Culture well
• Transformation well
• Structural well
• Ecology well

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Organizational Learning Focuses

• Knowledge source
• Product-process focus
• Documentation mode
• Dissemination mode
• Learning focus
• Value chain focus
• Skill development focus

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Organizational Culture

• Culture is a pattern of shared basic assumptions
• Most important aspect of KM success
• Why dont people share knowledge?

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9.5 Knowledge Management (KM)

• A process of elicitation, transformation, and
  diffusion of knowledge throughout an enterprise
  so that it can be shared and thus REUSED
• Helps organizations find, select, organize,
  disseminate, and transfer important information
  and expertise
• Transforms data / information into actionable
  knowledge to be used effectively anywhere in the
  organization by anyone

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How Core Competency is Linked to Explicit and
Tacit Knowledge
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KM Objectives

• Create knowledge repositories
• Improve knowledge access
• Enhance the knowledge environment
• Manage knowledge as an asset

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KMS Manage

• Knowledge creation through learning
• Knowledge capture and explication
• Knowledge sharing and communication through
  collaboration
• Knowledge access
• Knowledge use and reuse
• Knowledge archiving

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Knowledge Repository

• Not a database
• Not a knowledge base (like for ES)
• A collection of internal and external knowledge

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Knowledge Repository Types

• External
• Structured internal knowledge
• Informal internal knowledge

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KM Activities

• Externalization
• Internalization
• Intermediation
• Cognition

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Integration of organizational elements through a
knowledge management system
Organization s store of individual and
collective experiences, learning, insights,
values, etc.
KMS
Organizational information technology
infrastructure
Organizational culture
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KMS Features

• Create a knowledge culture
• Capture knowledge
• Generate knowledge
• Explicate (and digitize) knowledge
• Share and reuse knowledge
• Renew knowledge

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Cyclic Model of KM

• Create knowledge
• Capture knowledge
• Refine knowledge
• Store knowledge
• Manage knowledge
• Disseminate knowledge

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Cyclic Model of KM
Capture Knowledge
Refine Knowledge
Create Knowledge
Disseminate Knowledge
Store Knowledge
Manage Knowledge
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KM Examples

• Mitre
• Dow Chemical Company
• Xerox
• Chrysler
• Monsanto
• Chevron
• Buckman Laboratories
• KPMG
• Ernst Young
• Arthur Andersen
• Andersen Consulting

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Why Adopt KM

• Cost savings
• Better performance
• Demonstrated success
• Share Best Practices
• Competitive advantage

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9.6 Chief Knowledge Officer (CKO)

• Maximize firms knowledge assets
• Design and implement KM strategies
• Effectively exchange knowledge assets
• Promote system use

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9.7 KM Development

• Need a knowledge strategy
• Identify knowledge assets

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KM Development

• Identify the problem
• Prepare for change
• Create the team
• Map out the knowledge
• Create a feedback mechanism
• Define the building blocks
• Integrate existing information systems

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Strategies for Successful KM Implementation

• Establish a KM methodology
• Designate a pointperson
• Empower knowledge workers
• Manage customer-centric knowledge
• Manage core competencies

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More Strategies

• Foster collaboration and innovation
• Learn from best practices
• Extend knowledge sourcing
• Interconnect communities of expertise
  (communities of practice)
• Report the measured value of knowledge assets

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9.8 KM Methods, Technologies, and Tools

• Email or messaging
• Document management
• Search engines
• Enterprise information portal
• Data warehouse
• Groupware
• Workflow management
• Web-based training
• Others

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How to KM

• Integrate the technologies to manage knowledge
  effectively

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KM Tool Categories

• Information architecture
• Technical architecture
• Application architecture

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KM Software

• Knowware still developing but
• DecisionSuite
• Wincite
• DataWare
• KnowledgeX
• Knowledge Share

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9.9 KM Success

• Economic performance
• Technical and organizational infrastructure
• Standard, flexible knowledge structure
• Knowledge-friendly culture
• Clear purpose and language
• Change in motivational practices
• Multiple channels for knowledge transfer
• Worthwhile level of process orientation
• Nontrivial motivational encouragement
• Senior management support

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Measuring Success

• Balanced Scorecard
• Skandia Navigator
• Economic Value Added
• Inclusive Valuation Methodology

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KM Failure Causes

• Unclear definition of knowledge
• Overemphasis on knowledge stock, not flow
• Belief that knowledge exists outside peoples
  heads
• Not recognizing the importance of managing
  knowledge
• Failure to manage tacit knowledge

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More Failure Causes

• Failure to disentangle knowledge from its uses
• Downplaying reason and thinking
• Focusing on the past and present, not the future
• Failure to recognize the importance of
  experimentation
• Substituting technology contact for human
  interface
• Overemphasis on measuring knowledge, not its
  outcomes

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9.10 KM and AI

• Can use AI in KM
• Can use KM in AI
• Data mining can create knowledge

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9.11 Electronic Document Management

• A KM for documents
• Everyone is on the same page
• Documents are up to date
• Simple example corporate phonebook
• Lower costs
• Better performance

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9.12 KM The Future

• Not a fad
• Impact is immense
• Research on organizational culture
• How to do each step
• Are they the right steps?

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Knowledge Management

• The definition is clear
• The concepts are clear
• The challenges are
• Clear
• Surmountable
• The benefits are clear (and can be huge)
• The tools and technologies are viable

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Knowledge ManagementKey Issues

• Organizational culture
• Executive sponsorship
• Measuring success
• The future Comprehensive standardized KM packages

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Knowledge Management

• The wise see knowledge and action as one
  (Bhagvad Gita)
• Intelligent organizations recognize that
  knowledge is an asset, perhaps the only one that
  grows over time, and when harnessed effectively
  can sustain the ability to continuously compete
  and innovate.

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Case Applications

• 9.1 Chryslers New Know-Mobiles
• 9.2 Knowledge the Chevron Way