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Knowledge Management StrategiesKnowledge Management Strategies
Prof Elaine FerneleyProf Elaine Ferneley
Elaine Ferneley
Knowledge Management: an OverviewKnowledge Management: an Overview
1990s management realised knowledge rather than land, machines or capital was the firm’s critical resource
Broadly Knowledge management can be centred on:Computer scienceEconomicsSociology
Elaine Ferneley
Earl’s (2001)Taxonomy of Knowledge Earl’s (2001)Taxonomy of Knowledge Management ApproachesManagement Approaches
School Technocratic Economic Behavioural
Attribute Systems Carto-graphic
Engineer-ing
Commercial Organiza-tion
Spatial Strategic
Focus Technology Maps Processes Income Networks Space Mindset
Aim Knowledge Bases
KnowledgeDirectories
Knowledge Flows
Knowledge Assets
Knowledge Pooling
Knowledge Exchange
Knowledge Capabilities
Principle IT Element
Knowledge-based
Systems
Profiles & Directories on
Intranets
Shared Databases
Intellectual Asset Register &
Processing System
Groupware & Intranets
Representational Tools
Eclectic
Philosophy Codify Connect Capability Commercialize Collaborate Contact Consciousness
Elaine Ferneley
Technocratic – based on ITTechnocratic – based on ITSystems School - Knowledge BasesSystems School - Knowledge Bases
Capture specialist knowledge in knowledge bases for other ‘specialists’ to access, evolved over 25yrs
Codification to allow others to access and use in association with their own professional expertise
Examples: Skandia database to
support underwriters’ decision making;
Airbus CD-ROMS for airplane maintenance technical expertise
Elaine Ferneley
Technocratic – based on ITTechnocratic – based on ITSystems School - Knowledge BasesSystems School - Knowledge Bases
Advantages: Explicit, verifiable
Shortcomings: Maintenance & updates, needs reward mechanism of
providing updates/amendments – often these are highly technical systems so reward is individual publicity
Not all knowledge is objective so difficult to codify
Very domain specific – difficult to generalise from
Elaine Ferneley
Technocratic – based on ITTechnocratic – based on ITCartographic School - Knowledge DirectoriesCartographic School - Knowledge Directories
Mapping organizational knowledge – building knowledge directories or ‘yellow pages’
Connecting knowledgeable people – gateways to knowledge rather than knowledge repositories – knowledge is as likely to be tacit as explicit
Examples: McKinsey & Co early adopters
– all employees must state 3 areas of expertise
WS Atkins – inclusion of personality traits e.g. good negotiator
Elaine Ferneley
Technocratic – based on ITTechnocratic – based on IT Cartographic School - Knowledge Cartographic School - Knowledge DirectoriesDirectories
Advantages: Continuous self editing,
cheap Shortcomings:
Assessment of expertise People process,
technology provides connectivity and possibly search capabilities
Internal ‘yellow pages’ can be regulated but how to regulate external ‘yellow pages’ e.g. ISWORLD!
Elaine Ferneley
Technocratic – based on ITTechnocratic – based on ITProcess School - Knowledge FlowsProcess School - Knowledge Flows
Derived from Business Process Reengineering – enhance business performance by providing personnel with as much information as possible
Workers are Capable of making decisions if they have the information – give decision relevant, contextual and best practice knowledge
Examples: Hewlett-Packard open
access databases Fire Service mobile
computing Storytelling
Elaine Ferneley
Technocratic – based on ITTechnocratic – based on IT Process School - Knowledge Flows Process School - Knowledge Flows
Advantages: Empowered workforce False departmental walls
are broken down Shortcomings:
Information overload, requires alternative modes of delivery
Employee scepticism Information taken out of
context
Elaine Ferneley
Economic – based on ProfitEconomic – based on ProfitCommercial School - Intellectual AssetsCommercial School - Intellectual Assets
Focus on protecting and exploiting intellectual assets of the firm
Knowledge should be exploited for commercial gain
Examples: Dow chemicals exploitation of
its patent portfolio. Had 25k patents that cost $30m p.a. to maintain with a licensing income of only $25m. In 5 years increased revenue to $125m p.a. through sales and licensing
Cap Gemini – rent of technical subcontractors to health and local authorities. 2003 revenue £87m
Elaine Ferneley
Advantages: Quick win Inclusion of corporate
knowledge as a company asset on the balance sheet
Shortcomings: Ongoing management of
the ‘knowledge property’ – how do you manage knowledge efficiently and effectively
How to avoid employees feeling exploited
Economic – based on ProfitEconomic – based on Profit Commercial School - Intellectual Assets Commercial School - Intellectual Assets
Elaine Ferneley
Behavioural – based on SociologyBehavioural – based on SociologyOrganizational School - CommunityOrganizational School - Community
Use organizational structures & networks to share or pool knowledge
Collaboration within communities (of practice) to encourage sharing and exchange of knowledge
Examples: BP Amoco through Lotus notes
and video conferencing developed the drilling platform expertise global community –saving $27m in one year
Ford’s knowledge and best practice forums, self regulating, anyone can join
Elaine Ferneley
Advantages: Break down organisational
barriers Members ‘should’ be there
because they choose to be Shortcomings:
Will only work if there is a tradition of sociability and networking, BP and Ford are famous for connectivity, expat communities, graduate entry networks etc
Moderators or brokers may be required
IT must be an enabler not a regulator
Behavioural – based on SociologyBehavioural – based on SociologyOrganizational School - CommunityOrganizational School - Community
Elaine Ferneley
Behavioural – based on SociologyBehavioural – based on SociologySpatial SchoolSpatial School
Use of space to facilitate knowledge exchange – the water cooler
Contactivity – people are social animals who prefer conversations to documents or IT
Examples: Yahoo’s kitchen, bar, bean
bag environment British Airways at
Waterside medieval street inc. café, newsagent, grocery store
Elaine Ferneley
British Airways (Waterside) and British Airways (Waterside) and Google OfficesGoogle Offices
Elaine Ferneley
Advantages: Meet people you would
not normally encounter Level of informality that
encourages innovation Shortcomings:
Yahoo drank the bar dry Other metrics take over
so spatial features are slowly withdrawn
Resentment from ‘have-nots’
Behavioural – based on SociologyBehavioural – based on SociologySpatial SchoolSpatial School
Elaine Ferneley
Behavioural – based on SociologyBehavioural – based on SociologyStrategic SchoolStrategic School
Knowledge management as the ‘essence’ of the firm’s strategy
Consciousness raising – the organisation moves to being the ‘intelligent organisation’ or the ‘life long learning’ organisation
Examples: Skandia is THE example –
they embrace all the former schools and view the development of intellectual capital as their core mission
Buckman Labs (see case study)
Information & Communication
Technology
ProcessesInformation
People
Elaine Ferneley
The Knowledge OrganisationThe Knowledge Organisation
The middle layer addresses the KM life cycle
A knowledge organization derives knowledge from customer, product, and financial knowledge. Also from financial practices
Indicators of knowledge: thinking actively and ahead, not passively and behind
Using technology to facilitate knowledge sharing and innovation
Collect
Organize
RefineDisseminate
Culture
Leadership
Technology
Intelligence
Maintain
Competition
KnowledgeManagementProcess
KM Drivers
KnowledgeOrganization
Create
Elaine Ferneley
Knowledge Value ChainKnowledge Value Chain
Create Codify Diffuse Use
•Learning organizations•Stimulating working environments•Time to think•Trust•Reward & Recognition
•Organise•Classify•Hard or soft structure – database friendly/free text
•Access – who/how•Transfer•Share•Examples – email, knowledge maps (yellow pages), best practice, discussion groups
•Product development•Service provision•Process improvement•Measures of success
Hard Infrastructure - technology platform
Soft Infrastructure - skills, processes etc.
Asset Management - measure, protect, exploit
Elaine Ferneley
Knowledge Map Example (Corporate Yellow Pages) Knowledge Map Example (Corporate Yellow Pages) – Assumption that it’s Web-based– Assumption that it’s Web-based
Create Codify Diffuse Use
•Who•Why•Reward
•Content•Searchability
•Access – who/how•Transfer/push•Share•Update
•For what•Measures of success
65% of Corporate intranets fall into disuse between 1 & 2 years(KPMG, Parlby 2006)
Elaine Ferneley
Earl’s (2001)Taxonomy of Knowledge Earl’s (2001)Taxonomy of Knowledge Management ApproachesManagement Approaches
School Technocratic Economic Behavioural
Attribute Systems Carto-graphic
Engineer-ing
Commercial Organiza-tion
Spatial Strategic
Focus Technology Maps Processes Income Networks Space Mindset
Aim Knowledge Bases
KnowledgeDirectories
Knowledge Flows
Knowledge Assets
Knowledge Pooling
Knowledge Exchange
Knowledge Capabilities
Principle IT Element
Knowledge-based
Systems
Profiles & Directories on
Intranets
Shared Databases
Intellectual Asset Register &
Processing System
Groupware & Intranets
Representational Tools
Eclectic
Philosophy Codify Connect Capability Commercialize Collaborate Contact Consciousness
Elaine Ferneley
SummarySummary
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