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• Knowledge Management

2
Overview of Presentation (1)
2
3
Approaches To KM
Managing Knowledge
4
1
Implementing Knowledge Management

• What is Enterprise
• Knowledge?

3
The need to focus on knowledge

• Downsizing
• Taking vast knowledge
• bases from organisations

Mobile Workforce Need for constant access to
know-how interactive on-line support
Need to Focus on Enterprise Knowledge
Rapid Changes Need to benefit from
lessons- learned and minimise costs of
reinventions
Globalisation Need to generate global- wide
practices and support global collaboration
4
Data, Information and Knowledge
Experience Skills Insights
Context
Information
Knowledge
Data

• Static
• Independent of individual
• Explicit
• Digital
• Easy to duplicate
• Easy to broadcast
• Meaningless

• Dynamic
• Dependent on individual
• Tacit
• Analogue
• Must be recreated
• Face-to-face
• Meaningful

Access Assess Action
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Corporate Knowledge is ...

• capability for effective action

• TO knowledge that
• solves business problems
• produces corporate value
• enhances competitiveness

• FROM knowledge that is
• fragmented dispersed
• difficult to locate share
• redundant inconsistent

6
Where is corporate knowledge found?
Corporate knowledge is created by individuals and
is embedded / embodied in
Processes
People
Systems
Networks

• Training
• Documentation

• Databases
• Expert Systems

• Formal
• Informal

• Policies
• Procedures

7
Attributes of Corporate Knowledge
The value of corporate knowledge increases with
use (law of increasing returns)
There is an inherent value in knowledge
Knowledge decays with time, timeliness of
knowledge is important
Sharing enriches knowledge, the value of
knowledge increases with the number of people
that use it
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Knowledge Types

• Tacit Knowledge
• informal and subjective
• developed through practice
• embedded in individual experience
• communicated through word-of-mouth or through
  informal communications

• Explicit Knowledge
• formal and objective
• validated by management
• can be articulated in formal language
• stored in databases, libraries, etc.

• Tacit and Explicit knowledge are mutually
  complementary
• Human knowledge is created and expanded through
  social interaction between tacit and explicit
  knowledge

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The Spiral of Knowledge
TO
Tacit Knowledge Explicit Knowledge
Tacit Knowledge Explicit Knowledge

• SOCIALISATION

• EXTERNALISATION

FROM

• INTERNALISATION

• COMBINATION

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The Spiral of Knowledge
TO
Tacit Knowledge Explicit Knowledge
Tacit Knowledge Explicit Knowledge
FROM
Source Nonaka Takeuchi (1995)
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The Spiral of Knowledge
TO
Tacit Knowledge Explicit Knowledge
Tacit Knowledge Explicit Knowledge

• SOCIALISATION
• e.g. exchanging experiences while drinking coffee

FROM
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IT needs for Socialisation

• generates new tacit knowledge by sharing and
  exchanging know-how and past experience

Tacit TO Explicit
Tacit FROM Explicit

• SOCIALISATION

• EXTERNALISATION

• COMBINATION

• INTERNALISATION

• Support required for
• informal communication
• on-line discussions during work
• question raising information discovery

• Examples of tools
• e-mail
• discussion lists
• bulletin boards
• collaborative hypermedia
• multimedia conferencing

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The Spiral of Knowledge
TO
Tacit Knowledge Explicit Knowledge
Tacit Knowledge Explicit Knowledge

• EXTERNALISATION
• e.g. capturing personal knowledge in
  transmittable form

FROM
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IT needs for Externalisation

• maps tacit knowledge into explicit knowledge

Tacit TO Explicit
Tacit FROM Explicit

• SOCIALISATION

• EXTERNALISATION

• COMBINATION

• INTERNALISATION

• Support required for
• concept mapping
• tacit knowledge
• categorisation / representation
• group memory creation
• personalised pathways

• Examples of tools
• semantic networks
• knowledge ontologies
• network publishing
• push technologies
• issue-based argumentation

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The Spiral of Knowledge
TO
Tacit Knowledge Explicit Knowledge
Tacit Knowledge Explicit Knowledge
FROM

• INTERNALISATION
• e.g. implementing knowledge acquired in a
  training course

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IT needs for Internalisation

• maps explicit knowledge into tacit knowledge --
  use of re-experiencing approaches

Tacit TO Explicit
Tacit FROM Explicit

• SOCIALISATION

• EXTERNALISATION

• COMBINATION

• INTERNALISATION

• Support required for
• search for methods lessons-learned
• process documentation
• knowledge sharing
• knowledge interpretation

• Examples of tools
• lessons-learned databases
• information retrieval
• process history tracking
• hypermedia CBT

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The Spiral of Knowledge
TO
Tacit Knowledge Explicit Knowledge
Tacit Knowledge Explicit Knowledge
FROM

• COMBINATION
• e.g. adding new knowledge in a corporate database

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IT needs for Combination

• generates new knowledge by combining pre-existing
  explicit knowledge

Tacit TO Explicit
Tacit FROM Explicit

• SOCIALISATION

• EXTERNALISATION

• COMBINATION

• INTERNALISATION

• Support required for
• knowledge sharing
• decision co-ordination

• Examples of tools
• computer-mediated comm.
• searching and filtering
• document management
• workflow systems
• Group DSS

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The Spiral of Knowledge
TO
Tacit Knowledge Explicit Knowledge
Tacit Knowledge Explicit Knowledge

• SOCIALISATION
• e.g. exchanging experiences while drinking coffee

• EXTERNALISATION
• e.g. capturing personal knowledge in
  transmittable form

FROM

• COMBINATION
• e.g. adding new knowledge in a corporate database

• INTERNALISATION
• e.g. implementing knowledge acquired in a
  training course

Source Nonaka Takeuchi (1995)
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The need to manage knowledge

• Knowledge management is absolutely critical to
  the success of my company
• 60 of Chief Executive Officers surveyed in a
  1998 CEO survey sponsored by the World Economic
  Forum
• Enterprises that lack KM programmes will lag
  KM-enabled companies by 30-40 in speed of
  deployment of new products and services
• Gartner Group (1999)
• The average percent or revenue spent on KM in
  Europe is expected to increase to 5.5 in the
  next three years
• Which is more than European companies spend on RD

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What is KM?

• Corporate Knowledge Management is
• the new discipline of enabling
• individuals, teams and entire organisations
• to collectively and systematically
• create, share and apply corporate knowledge
• to better achieve organisational efficiency,
  responsiveness, competency and innovation

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Overview of Presentation (2)
2
3
Approaches To KM
Managing Knowledge
4
1
Implementing Knowledge Management

• What is Enterprise
• Knowledge?

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The four challenges of KM 1. Capture and
organise knowlege
Content Management
Time-Sensitive Information
External Information Sources
Internal Information Sources
CAPTURE
FILTER
STORE
DIFFUSE
USE
BUSINESS PROCESSES
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The four challenges of KM 2. Facilitate
collaboration and sharing
Collaboration Management
Customer VirtualCommunities
COMMUNITIES OF INTEREST / PRACTICE
ORGANIZATIONAL STRUCTURE
COMMUNITY B
COMMUNITY A
SUPPORT TEAM
ORGANIZATIONALSTRUCTURE
Communication collaboration
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The four challenges of KM 3. Knowledge-enabled
processes
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The four challenges of KM 4. Inter-organisational
knowledge sharing
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Managing Corporate Knowledgemeans having
Leadership
Apply
Adapt
Create
Measurement
Culture
Corporate Knowledge
Share
Identify
Organise
Collect
Source APQC
Technology
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Poor Knowledge Management

• Reinventing the Wheel
• Inability to access knowledge in a timely/useful
  manner.
• Having knowledge and expertise leave when people
  leave.

• Knowledge Hoarding
• Knowledge is power
• Knowledge is job security

• Poor Decisions
• Potential useful knowledge is ignored when making
  decisions
• Trying to apply old rules to new situations

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Indicative Successful Cases

• Arthur Andersen
• ICL
• Dow Chemical
• Hughes Space
• Sequent
• Compaq
• Skandia AFS

• Buckman Labs
• Monsanto
• Xerox Corp.
• Texas Instruments
• EDF
• Royal Shell
• Chevron

• IBM
• Ernst Young
• EDS
• British Petroleum
• Hoffman LaRoche
• Hewlett Packard
• Microsoft

• informed business decisions
• improved customer service
• less time spent for
• recreating work
• searching for information

• increased speed to market
• high ROIs
• as high as 1700
• short payback periods

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State of the corporate KM market

• OVUM global market analysis (2001)
• 1999 2000 2004
• 3,100 4,500 12,000
• European S/W market
• 200 350 1,500
• European Services market
• 1000 1,500 4,000
• (numbers in million)

• Suppliers
• Management consultants
• Software Vendors
• Intranets
• Groupware tools
• Search and retrieval tools
• Document management
• Agent and push technology
• Corporate portals
• Other (ERP, RDBMS, etc)

• Users
• Consultancy services
• Chemicals
• Software companies
• High-tech manufacturing
• Banks and financial
• Insurance
• Pharmaceuticals
• Utilities

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Components of Knowledge Infrastructure

• Integration
• Services

• Search, Retrieval
• Navigation Services

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Search and Retrieval Services

• concurrent local and remote search
• hierarchical content (topic) searching
• graphical query wizards
• unified view and retrieval
• navigation facilities
• agent technology for site-watching
• transparent access to multiplatform,
  heterogeneous sources
• Internet / WWW / remote offices / intranet
• file servers / databases
• Notes files / documents / CD-ROM

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Indexing and Mapping Services

• real-time, flexible content mapping
• topic-subject / business significance
• custom queries user-defined indices
• ability for index restructuring incremental
  index updating
• for index-data synchronisation
• explicit context linking and user / team
  profiling
• ability to
• index compound documents
• preview and profile documents
• summarise (index-time and dynamic)

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Storage and Metadata Services

• user-centered content organisation
• content aggregation and annotation
• metadata capabilities
• ability to define handle metadata
• object and relationships descriptions
• scaleable repositories
• e.g. through relational DBMSs
• support for diverse information formats
• HTML, doc, ppt, pdf, Notes, ...

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Distribution and Publication Services

• subscription-based approaches
• pull push delivery approaches
• real-time news feeds
• channel consolidation for push delivery
• CDF (Microsoft) or Netcaster (Netscape)
• webcrawling facilities for broadcasting

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Collaboration Services

• e-mail / messaging
• electronic scheduling / meeting
• global/group discussions/bulletin boards
• (un)moderated, threaded discussions
• public bookmarks folder applications
• workgroup pages and group filters
• just-in-time workgroup alerting
• group decision support group editing
• desktop video and audio conferencing

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Integration Services

• integration with relational DBMSs
• integration with legacy applications
• integration with other products
• process automation
• workflow management
• integration with third-party tools
• MS-applications, Lotus Notes, etc
• integration with business applications
• OLE-extensions / RPCs / Java / APIs ...
• support communication protocols
• TCP/IP, IPX/SPX, NetBIOS, HTTP, ....

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Indicative Firms and Products

• CompassWare (InfoMagnet)
• Wayfarer (Incisa)
• PointCast (I-server)
• Intermind (Communicator)
• Sage (KnowledgeSite)
• KnowledgeX (KnowledgeX)

• Fulcrum (Knowledge Network)
• Verity (Search)
• Intraspect
• Excalibur (RetrievalWare)
• InfoMation (Echo)
• PFN (PFN Continuum)

Components of the Knowledge Infrastructure

• grapeVine (grapeVine)
• Knowledge Associates
• Xerox (DocuShare)
• Lotus (Domino, Notus, TeamRoom)
• Microsoft (Exchange)
• Netscape (SuiteSpot)

• Digital Knowledge Assets (Tours)
• LearnerFirst (Harvesting)
• Community Intelligence Labs

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Other Techniques and Indicative Tools

• From Help Desk to Customer Relationships
• e.g. Siebel (SiebelSales)
• Molloy (TopOfMind)
• Vantive (Vantive Enterprise)
• Remedy (AR System)
• Scopus, Clarify, etc
• Data warehousing /mining
• Oracle, Sybase, Informix, ...
• Redbrick, SAS, Sagent, ...

• Concept Mapping
• e.g. CMS (QuestMap)
• Web-based training
• e.g. ILS (WisdomLink)
• Neural networks
• e.g. WiseWire
• Simulation software
• e.g. ThinkingTools (Project Challenge)

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KM should be embodied in business context
Communities of-Practice
Business Processes
Knowledge Infrastructure
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Knowledge Management Process Enablers
Individual/Group Accountability and Rewards
Strong KM Culture
Senior Management Vision
Feedback on Future State
Pilots to Test Future Value
Knowledge Team Networks
Full-time Knowledge Workers
Quantitative/ Qualitative Measures
Hard-copy Document Exchange
Electronic Document Exchange
KM Process Training
Low Contribution to Effectiveness High
Knowledge Building/ Sharing Technology
Knowledge sharing in Functional Areas
Knowledge Hoarding
Low Contribution to Leverage High
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Overview of Presentation (3)
2
3
Approaches To KM
Managing Knowledge
4
1
Implementing Knowledge Management
What is Enterprise Knowledge?
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The product view
The process view

• Proposition knowledge can be represented as a
  thing
• that can be located and manipulated as an object
• it is possible to capture, distribute, measure
  and manage knowledge

• Proposition it is only feasible to promote,
  motivate, encourage, nurture or guide the process
  of knowing
• the idea of trying to capture and distribute
  knowledge seems senseless

44
Strategic Implications of
The product view
The process view

• competitive strategy
• exploit organised, standardised and re-useable
  knowledge
• focus of KM strategy
• connect people with re-usable codified knowledge
• focus of IT strategy
• heavy emphasis
• develop document management systems
• focus of HR strategy
• train in groups
• reward for using and contributing to databases

• competitive strategy
• empower and channel individual and team expertise
• focus of KM strategy
• facilitate conversations to exchange knowledge
• focus of IT strategy
• moderate emphasis
• develop network management systems
• focus of HR strategy
• train by apprenticeship
• reward for sharing knowledge with others

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IT Support forProduct Process Views
Knowledge as a Product (knowledge content)
Knowledge as a Process (knowledge transfer)
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The key link KM to business strategy

• strategy as a key driver for knowledge management
  
• relate the choice to the vital characteristics of
  a companys product or service

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Emerging trend Need for holistic KM

• Companies of the future will deliver neither
  products nor services but product-service
  offerings
• Need for a balanced fusion of the two KM views.
• Gartner Group 2000-2004 KM report
• Our motivation
• to design, develop and test a total KM solution
• that would explicitly provide for such a fusion.

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Integration ofProcess and Product Views
Process-
centric view
KM applications
KM Process
Knowledge
Ontology-based Indexing and Retrieval
Object
Product (Content)-
centric view
Disseminate
Index
Organise
Searchó
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The Know-Net Solution
KnowNet Framework
KnowNet Method
KnowNet Tool
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A Framework for Managing Knowledge Assets
Assets
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Knowledge Assets

• Human Knowledge Assets
• Staff capabilities
• Staff experience
• Staff skills
• Creativity of staff
• Innovation of staff

• Structural Knowledge Assets
• Patents, Methods
• Best Practices
• Administrative systems
• Training Seminars
• RD Material
• Company standards/processes

• Market Knowledge Assets
• Knowledge about Industry
• Knowledge about Customers
• Knowledge about Partners
• Knowledge about Competitors

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Building Blocks of the Know-Net Method
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Stage I Strategic Planning
Link KM to Corporate Strategy
Develop the KM Case
Obtain Top Mngmt Approval
Provide Leadership
Perform Knowledge analysis
Assess Risk Change Readiness

• Goals of Stage I
• Align Knowledge strategy
• Assess Change Readiness
• Define KM Business Case

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Knowledge Strategy
Growth through share, market strength,
distribution external market focus
Forging long-term, deep relationships with
customers external focus, growing with customer
success
MarketGrowth
CustomerIntimacy
OperationalEffectiveness
Profit through productivity and cost control
internal development focus
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Knowledge Strategy (continued)
Product InnovationKnowledge CreationNew
Competency
Process InnovationKnowledge SharingDeveloping
Learning Culture
Business InnovationCustomer Knowledge
IntegrationBranding Knowledge
KnowledgeStrategy
Expand - Enter Enhance Embrace
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Building Knowledge Assets

• Core Knowledge Assets
• Shared by all members of industry gt No
  competitive value
• E.g., Internet technology, XML
• Advanced Knowledge
• Differentiated, but accessible
• Positioning of available knowledge
• E.g., advanced UIs for Web products, usability
• Innovative Knowledge
• Significant, non-replicable differentiation
• Products, processes, and markets interrelated
• E.g., Intels lead in processors affords superior
  access to market and next-generation PC products

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Where do you stand vs your competitors?
advancement
exit strategy
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Stage II Developing the K.Org
Analyse
Leverage
Integrate the KM Architecture
Knowledge in Business Processes
Knowledge in People Networks
Information Technology Systems
Develop Knowledge Asset Schema

• Goals of Stage II
• Leverage Knowledge Process/People/Technology
• Define Knowledge Objects
• Integrate the KM Architecture

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Knowledge Organisation

• Leadership Roles
• Chief Knowledge Officers (CKOs)
• Chief Learning Officers (CLOs), etc.
• Management Roles
• Knowledge managers
• Knowledge integrators
• Knowledge facilitators, etc.
• Technical Roles
• Knowledge editors/ analysts/ engineers/ etc.
• All employees participate in the knowledge
  processes - knowledge workers

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Example of KnowledgeOrganisational Structure
Chief Knowledge Officer

• Has overall strategic direction
• Monitors and supervises KM programme

Subject Matter
CROSS UNIT COMMUNITIES
Knowledge Facilitators
Specialists

Provide leading edge
Overall responsibility for ensuring process
thinking

is knowledge rich

Ensure quality of network

Provides sponsorship for knowledge
content filter analyse
management activities
content

• Ensures appropriate use of knowledge tools
• Ensures valuable, reusable knowledge is captured

Drive network research
agenda
Knowledge Community
Coordinator

Promote growth of content knowledge

Embed knowledge sharing culture

Facilitate knowledge management
processes
KNOWLEDGE OFFICE
Knowledge Tools and Advice
Research Information

Helpdesk provides

Provide knowledge tools,
support for navigation of
techniques and training

• Rapid research and analysis
• Store, categorize and update knowledge sources
• Analyze needs and propose enhancements

knowledgebases

Provide guidance to knowledge
facilitators
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Knowledge Processes
Apply
Store
Acquire
Deploy
AddValue
Create Value
Provide Infrastructure
Client
Learn
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Measuring knowledge assets
Market Assets
Human Assets

• Focus on key knowledge assets
• Distinction between stocks and flows
• Must be linked to strategy
• Both business and KM strategy
• Company-specific

Structural Assets
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The Know-Net ToolPlaying several parts of the
tool together
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The case of UBS- MRP

• The company
• One of the worlds leading financial services
  groups
• MRP (Methodology Rating and Processes) division
  of UBS
• develops rating tools to measure risk of credit
  portfolio
• The challenge
• Knowledge required to measure credit risk in each
  case is unique
• Teams change from project to project
• extremely important to conserve know-how
  associated with each team
• No mechanism for systematic feedback from client
  departments
• Solution and benefits
• team-based solution for coordination of knowledge
  created during development of credit risk
  management methods and algorithms
• MRP can effectively transfer this knowledge to
  internal clients
• MRP can keep track of this knowledge so that it
  is easily accessible to all members within the
  division

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The case of NAI Gooch Webster

• The company
• UK-based global firm of Chartered Surveyors and
  Commercial Property Agents
• Focus on the Building Consultancy Group (BCG) of
  the firm
• The challenge
• To support sharing of best practices across the
  firm
• To define policy on information created, acquired
  and shared
• To create an environment of trust and learning
• Solution and benefits
• System developed for continuous exchange of best
  practices
• Key project learnings and best practices
  identified and shared
• Results used for larger-scale knowledge
  management effort
• Improved mobility and freedom from operating from
  a static base
• Leveraged knowledge across the group to enhance
  profitability

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The case of Singular

• The company
• Leading company in Greece in the area of business
  software
• Focus on the RD unit of the firm
• The challenge
• Capture new knowledge created within the firm
• In RD projects and in product development
• Realise effective mechanisms for knowledge
  management
• without imposing overhead to highly dynamic,
  highly creative teams
• Solution and benefits
• Focus on the creation of new Communities of
  Practice
• Mechanisms put in place for
• information collection during CoP lifetime
• reviewing knowledge so that aging knowledge is
  disposed
• Improved knowledge re-usability and better
  utilisation of internal competencies

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The case of Alphanova

• The company
• UK-based global developer of CRM software
  solutions
• Vision is to build eCentres where collaborative
  partners can work together to service common
  customers on a one-to-one basis
• The challenge
• Rapid expansion and high employee intake
• Harness and maintain the knowledge of existing
  employees
• Knowledge developed by one group is not available
  to other groups
• Solution and benefits
• Implementation of a team-based solution for
  knowledge exchange
• Formalisation of knowledge flow between groups
  and standardization of knowledge items
• Enhances professional image
• Development of existing and targeted customer
  knowledge base
• Facilitates expansion of customer and market base

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The case of Debus

• The company
• ERP training and localisation centre
• based in the Czech Republic
• The challenge
• Improve quality (content and timing) of training
  courses
• Enhance communications effectiveness and
  collaborative working between Debus I.T. and the
  ERP vendor
• Solution and benefits
• Capture learnings and content from training
  seminars
• Effective marketing performance from customised
  training courses
• better quality and speedier response to sales
  enquiries, and
• prompt delivery of higher quality, technical
  solutions to client

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Overview of Presentation (4)
2
3
Approaches To KM
Managing Knowledge
4
1
Implementing Knowledge Management

• What is Enterprise
• Knowledge?

71
Key lessons learned

• Focus on People Processes, not Technology
• Enhance the way people work
• Tie KM into existing and evolving business
  processes
• Transform organisational boundaries
• Shared information corporate power
• Recognize knowledge as the most valuable asset
• Establish senior leadership oversight and
  guidance
• Institutionalise the project
• Advertise and sell the project
• Capture metrics and user feedback at every step
• Begin with easily executable pilot projects
• low-hanging fruit

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Key issues to be considered for KM

• Knowledge Management should be holistic
• It fuses
• people and culture issues
• intra- or inter-organisational business processes
• IT tools
• Knowledge Management is a means to an end
• not an end in itself
• The end is performing work better, faster and
  smarter
• Knowledge cannot be managed
• only its environment can be managed!