Knowledge Management

1
Knowledge Management

• By Jenny Enderby
• and Chris Papin

2
What is Knowledge Management?

• According to www.brint.com
• KM is caters to the critical issues of
  organization adaptation, survival and competence
  in face of increasing discontinuous environmental
  change Essentially, it embodies organizational
  processes that seen synergistic combination of
  data and information processing capacity of
  information technologies, and the creative
  innovative capacity of human beings.

3
Simplified

• Knowledge
• Refers to a set of information with which we have
  experience
• Usually gained through work, school or other life
  experiences

• Management
• Refers to the ability of an individual or group
  to lead and organize others in business to
  produce a desired outcome

4
The Knowledge Process

• The Knowledge Production
• Information Acquisition
• Individual and Group Learning
• Knowledge Claim Formulation and Evaluation

5
The Knowledge Process

• Knowledge Integration
• Knowledge and Information Broadcasting
• Searching and Reviewing
• Knowledge Sharing
• Teaching

6
Put it all together

• Knowledge production and integration compile
  together with non-electronic information as well
  as electronic information to for a database of
  knowledge that is the basis for KM.

7
Electronic Information

• Data Mining and Data Warehousing
• Two tools that help turn information and data
  into useful knowledge

8
Defined

• Data Warehouse
• A database that stores larges amounts of
  historical business data
• Another way Warehousing brings your data
  together for analysis

• Data Mining
• The practice of extracting data from a warehouse
  in order to analyze patterns trends and
  relationships
• Another way Mining sorts through the data you
  collected and turns up interesting and useful
  connections

9
Why Use DM?

• Firms identify patterns which generate valuable
  knowledge for the company

10
How Companies Use DM

• Market Segmentation
• Customer Churn
• Fraud Detection
• Direct Marketing
• Interactive Marketing
• Market Basket Analysis
• Trend Analysis

11
Fraud Detection Example

12
Wal-Mart Example

13
How These Apply to KM

• DM and DW can turn data into useful knowledge
  that can give companies a competitive advantage
  over their rivals
• DM takes a proactive approach to selling products
  to customers rather than a reactive approach by
  predicting patterns, trends, and behaviors.

14
Why So Difficult

• Implementation of KM programs
• How to estimate the return on KM
• How to store KM data
• Techniques on utilization of the knowledge

15
Implementation Problems

• Knowledge is Power
• Incentive structures to share information

• Resistance to Change
• People are reluctant to change
• 56 of executives say changing peoples
  behavior is the most difficult obstacle

16

• Sharing knowledge is an unnatural act. You can't
  just stand up and say, 'Thou shalt share
  knowledge'it won't work.
• HUBERT SAINT-ONGE, PRINCIPAL, SAINTONGE
  ALLIANCE

17
Returns on KM

• KPMG invests 40 million
• Quality knowledge is the goal
• Data separates you from the competition

18
How to Store New Data

• New techniques to gather, store, process and
  distribute this kind of knowledge
• It isnt contained in typical rows or columns
• How do we store the human element?

19
Utilization of the Knowledge

• Problems with change
• Dept. of Defense and post combat data
• Management must encourage change

20
Implementation Barrier

• 94 of business executives believe that it would
  be possible, through more deliberate management,
  to leverage the knowledge existing in their
  organization to a higher degree
• BUT.

21
Implementation Barrier

• 71 believe embedding knowledge in process,
  products, and/or services
• Why not in the people making these processes,
  products and/or services?

22
Implementation Case Study

• EY implements a knowledge management system in
  an effort to reach 1 billion in revenues by
  1997.
• Process called Future State 97 or FS97.

23
EY

• A major focus was to capture knowledge
• Elected a Chief Knowledge Officer
• Formed a Center for Business Knowledge

24
EY

• People were the key
• Technology was the enabler
• How do you adapt to the change needed?

25
Similarities

• EY had the same difficulties as others
• Implementation was a new venture and risky
• Returns are still not 100 clear, though they are
  assumed to be part of the KM program
• How did they obtain and keep the data?
• Problems getting the knowledge distributed

26
Questions?