Knowledge Management

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Knowledge Management

• Class 01 O1-O4 R1-R2 G1

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Data, Information, Knowledge and Wisdom

• See p. 5 Supermarket chain example.
• Accumulates data on customer buying behavior
• Correlation analysis to get information about
  buying patterns beer and diaper sales are
  related
• Hypothesized to create knowledge to put it into
  action put the diapers and beer near each other
• Wisdom?

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Intangible Assets

• Have value, but no physical existence
• Karl Erik Sveiby self-publishes at
  www.sveiby.com.au
• Intellectual capital includes everything an
  organization knows.

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Knowledge

• Data
• Information
• Knowledge
• (Wisdom)
• See test score example, p. 7

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Knowledge

• Is actionable

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Knowledge

• is the INFINITE ASSET.
• Why?

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Knowledge

• is the INFINITE ASSET.
• Why?
• It is the only asset that increases when it is
  shared
• Leveraging

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Knowledge

• Tacit knowledge
• Explicit knowledge

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Tacit Knowledge

• Personal knowledge embedded in individual
  experience and involving intangible factors such
  as personal belief, perspective, and values

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Explicit Knowledge

• Refers to tacit knowledge that has been
  documented.
• It has been articulated into formal language and
  can be much more easily transferred among
  individuals.

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• Making tacit knowledge explicit is a key function
  of knowledge management

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Knowledge Repository

• Where the knowledge lives
• Groff and Jones call it a knowledge base

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Dialogue

• What types of tacit knowledge do you think would
  be valuable to capture in a corporate
  (organizational) knowledge base?
• What benefits for the company (organization) do
  you imagine could be gained from making this
  knowledge explicit?

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In-Class Exercise Saving Money

• Describe ways to save money
• Create a list of three money-saving techniques
• Document the exact procedures involved

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In-Class Exercise

• In your opinion, where is knowledge created?
• In your opinion, where is knowledge really stored?

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Best Practices

• Create
• Identify
• Collect
• Organize
• best practices and internal knowledge to
  understand what they know and where it is

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The Knowledge Transfer Process

• Figure 1.1, p. 7

Use
Adapt
Create
Share
Identify
Organize
Collect
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The Knowledge Transfer Process

• Figure 1.1, p. 7

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Knowledge

• Try to explicate tacit knowledge
• General Electric
• Others

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Knowledge Management

• The tools, techniques, and strategies to retain,
  analyze, organize, improve, and share business
  expertise.
• Relate to Best Practices!

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Knowledge Management

• Is the systematic processes by which knowledge
  needed for an organization to succeed is created,
  captured, shared, and leveraged

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The Least You Need to Know R

• Knowledge is the most important asset for
  organizations today. Knowledge is information in
  context to produce an actionable understanding.
• Knowledge management is the systematic processes
  by which knowledge needed for an organization to
  succeed is created, captured, shared, and
  leveraged.
• There are many drivers for organizations to
  effectively manage their knowledge.
• Barriers to managing knowledge can be overcome.
• Managing knowledge pays off well.

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KM Should become a way of operating (not a fad)

• Thomas Cahill How the Irish Saved Civilization
• Major cultures
• Major (and minor) religions

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KM Not a Fad

• Built on the never-obsolete power of learning
• Is practical and action oriented, not ideological
  and theoretical produces bottom-line results
  (if done right!)
• Does NOT rely on technology to make processes
  more efficient. Recognizes the knowledge in
  peoples minds. Technology facilitates sharing,
  not replaces human origins.
• Is consistent with emerging models of
  organizations (teamwork, virtual teams, etc.)

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2. KM in Action The Transfer of Best Practices

• the fastest, most effective and powerful way
  companies can manage knowledge assets is through
  the systematic transfer of best practices

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Objectives of Knowledge Management (APQC, 1996)

• Figure 2.1, p. 13

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Best Practices (Know How)

• Produce results
• Better practices exemplary practices
  successfully demonstrated practices, etc.
• Whatever you call them, they have worked well in
  the past and we can learn from them

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Best Practices

• Are those that have produced outstanding results
  in another situation and that could be adapted
  for our situation.
• Like all knowledge, it is contextual
• A best practice is what is best for you

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Chevrons Four Levels of Best Practices

• Good idea unproved, not yet substantiated, but
  makes sense. Could have a positive impact on
  business performance
• Good practice has worked but limited data
• Local best practice a good practice that has
  worked, and has been analyzed to be a good idea
• Industry best practice everyone in the
  organization (or industry) who solves this kind
  of problem should use this idea/method

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From Making Bread to the Knowledge Spiral

• The Knowledge-Creating Company, by Ikujiro Nonaka
  and Hirotaka Takeuchi
• Bread machine problems (Matsushita Electric
  Industrial Company, 1985)
• Nonaka (software developer) apprenticed with a
  real bread maker

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The Knowledge Spiral

• A SECI model (proposed by Ikujiro Nonaka) to
  represent how tacit knowledge and explicit
  knowledge interact to create knowledge in an
  organization through four conversion processes or
  patterns
• Socialization (tacit to tacit)
• Externalization (tacit to explicit)
• Combination (explicit to explicit)
• Internalization (explicit to tacit)

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SECI Model
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The Knowledge Spiral
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Socialization (tacit to tacit)

• Mentoring
• Apprenticing
• On-the-job training
• People to people, usually 2 at a time

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Externalization (tacit to explicit)

• Someone talks about their tacit knowledge in
  words, metaphors, and analogies.
• Dialogue
• Sharing beliefs
• People to people

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Combination (explicit to explicit)

• IT is important
• Documented knowledge spreads
• Machine to machine
• Transfer among groups across organizations

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Internalization (explicit to tacit)

• Most difficult form of knowledge explication
• One person learning through experience
• Most valuable
• Hardest

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Learning Organization

• Creates, acquires, transfers, and retains
  knowledge.
• Is particularly good at changing its behavior to
  reflect new knowledge and insights
• Rarely makes the same mistake twice
• (does not reinvent the wheel!)

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Sengs Five Core Concepts or Disciplines of
Learning Orgs

• Personal mastery
• Building shared vision
• Team learning
• Mental models
• Systems thinking
• Peter Seng, The Fifth Discipline

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Value network

• Is a web of relationships that generates economic
  value through complex exchanges of both tangibles
  and intangibles.

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The Least You Need to Know

• Most workers today are knowledge workers who must
  define their own jobs
• Intangible assets consist of employee competence,
  internal structure, and external structure
• Knowledge creation is a spiral of converting
  tacit knowledge to explicit knowledge and then
  back again
• A learning organization has the capability to
  learn new things and change the way it behaves
• Buyers and sellers exchange more than good,
  services and revenue. They also exchange
  intangibles-knowledge and benefits.

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3. Barriers to Internal Transfer

• All are based on culture and management /
  executive support
• Historical reasons
• Ignorance
• No absorptive capacity
• Lack of preexisting relationships (trust, etc.)
• Lack of motivation

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Confronting Systematic Barriers

• Silos
• Not Invented Here (NIH)
• Babelitis (no common perspectives and terms for
  effective communication and knowledge transfer)
• By-the-book (explicit knowledge mostly)
• Bolt-it-on (does not embed KM practices-instead
  it is extra work)

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To Share Knowledge and Get Benefits

• Adopt a strong intention and methodological
  approach to the management and transfer of
  knowledge. You need
• A compelling need to change
• A clear-eyed assessment of the current state of
  knowledge and transfer relative to that problem
  or opportunity (knowledge audit)
• A detailed project design and ongoing management
  involvement
• A good implementation plan to provide and align
  supportive organizational resources and structures

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KM Implementation PreviewYou need

• Strong business need
• Strong executive sponsor
• (Strong) operational sponsor
• A CKO to do internal marketing and organize the
  effort
• User involvement, especially the experts
• User training
• Not a reliance on technology

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4. Model for Best Practice Transfer

• Figure 4.1, p. 22

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Model for Best Practice Transfer

• 3 Value Propositions what a firm hopes to
  achieve through the most effective management and
  transfer of knowledge
• 4 Enablers to ensure knowledge is created,
  captured, shared, and leveraged (create an
  appropriate environment)
• 4 Step Change Process system (etc.)
  implementation

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Figure 4.1 Model for Best Practice Transfer, p.
22
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Value Proposition Basic Categories

• Customer intimacy
• Product-to-market excellence
• Operational excellence

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The Four Enablers

• Culture
• Technology
• Infrastructure
• Measurement
• Not to mention
• Executive support
• Operational support
• User involvement
• User training

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The Four Phase Change Process

• Plan
• Design
• Implement
• Scale up
• (Look at any systems analysis and design book
  Planning, Analysis, Design, Implementation PADI)

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END OF PPT PRESENTATION

• END OF PPT PRESENTATION