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Analysing Knowledge Management Practising Organisations
A study submitted in partial fulfilment
of the requirements of the degree of
Masters of Information Management
at
University of Sheffield
by
Parul Bhandari
September 2004
i
ACKNOWLEDGEMENT
Enumerating and enlisting all the individuals whose contribution went into the development of
the dissertation is a very difficult task.
The encouragement and assistance given by my dissertation supervisor Dr. Miguel J.B.Nunes,
research student Fenio Annansingh made this a personally rewarding experience. I thank them
for their unrelenting support and constant inspiration, without which understanding the
intricacies of the study would have been exponentially difficult. They not only taught the
fundamentals essential for undertaking the research but also helped me develop as an
individual.
I would also like to acknowledge my hearty gratitude towards my personal tutor, Dr. Barry
Eaglestone. Without his guidance it would have been difficult to grasp and visualise the study
as a whole.
My heartfelt gratitude also goes to my alma mater, the University of Sheffield, UK, for
providing me with the opportunity to avail the excellent facilities and infrastructure. The values
inculcated and the management skills imparted to its entire pupil have been of immense help at
the very start of my career.
After undergoing these three months of rigorous study, I can confidently say that this
experience has not only enriched me with academic and industrial knowledge but has also
imparted the maturity of thought, vision, the attributes required to be a successful professional.
Last but not the least I would like to thank my family members and colleagues, who have been
helping hands throughout.
ii
ABSTRACT
Knowledge is considered one of the important firm resources, which is unique, inimitable and
valuable for the firms. In the knowledge society, one of most important challenges for every
organisation is to provide better quality, new services and products as well as be innovative.
Hence, the key to success in changing environment; organisation needs to create new
knowledge to compete in global market. Many organisations tend to leverage collective
knowledge by employing a knowledge management culture and systems.
This dissertation presents the analysis and findings of multiple case studies of organisations
where knowledge management is practiced. The study characterises the value of sharing
knowledge within the organisations and investigates how tacit knowledge is captured and
implemented. To undertake this study, a checklist was developed after reviewing the literature.
On the basis of this checklist the 10 case studies, identified as knowledge management case
studies, were analysed.
The study reveals that organisations first identify the need of knowledge and then capture the
knowledge explicitly. Further the study also helped in identifying the key benefits and barriers
faced by the organisations. It was observed that majority of the knowledge practicing
organisations were achieving benefits from the knowledge management initiatives taken by the
top management. Further the study analysed that organisations incorporated knowledge
management using both Information Technology and incentives for motivating employees to
share the knowledge. Both the methodologies were able to contribute a lot for the successful
implementation of knowledge management. However, it was observed that the organisations
had concerns regarding employee behaviour, organisational culture and technological issues.
Hence organisations need to take a proper strategy in order to eliminate the above barriers.
Overall, the knowledge management initiative was perceived positively, however its value
needs to be realized by the organisation as well as the employees.
iii
TABLE OF CONTENTS
ACKNOWLEDGEMENT.................................................................................................. i
ABSTRACT ..................................................................................................................... ii
TABLE OF CONTENTS ................................................................................................. iii
TABLE OF FIGURES ......................................................................................................vi
CHAPTER 1 � INTRODUCTION .....................................................................................1
1.0 Introduction .............................................................................................................1
1.1 Background and Motivation .....................................................................................1
1.2 Objectives and Deliverables .....................................................................................3
1.3 Methodology............................................................................................................4
1.4 Structure of the dissertation ......................................................................................5
CHAPTER 2 � LITERATURE REVIEW...........................................................................6
2.0 Literature Review.....................................................................................................6
2.1 Overview .................................................................................................................6
2.2 Knowledge � The Source of Wealth .........................................................................7
2.3 Different types of Knowledge Themes....................................................................10
2.4 Knowledge Management........................................................................................11
2.5 Traits of Knowledge Management..........................................................................13
2.6 Tacit Knowledge: The Valuable Asset ....................................................................14
2.7 Two thrusts of Knowledge Management.................................................................16
2.7.1 Importance of Codification Approach in Knowledge Management ................16
2.7.2 Importance of Personalisation Approach in Knowledge Management...........18
2.8 Issues and Challenges.............................................................................................20
2.9 Summary ...............................................................................................................21
iv
2.10 Schematic Representation.....................................................................................22
CHAPTER 3 � METHODOLOGY ..................................................................................24
3.0 Introduction ...........................................................................................................24
3.1 Research Methodology...........................................................................................24
3.2 Research Approach � Inductive Approach ..............................................................24
3.3 Research Method � Literature Review and Case study Analysis..............................26
3.3.1 Literature Review ...........................................................................................26
3.3.2 Case Study Analysis .......................................................................................27
3.4 Research design .....................................................................................................28
3.5 Data analysis � Checklist development ...................................................................31
3.6 Limitations.............................................................................................................33
3.7 Summary ...............................................................................................................34
CHAPTER 4 � ANALYSIS AND FINDINGS .................................................................35
4.0 Introduction ...........................................................................................................35
4.1 Case Study Analysis of Hewlett Packard (www.hp.com) ........................................35
4.2 Case Study Analysis of Chevron (www.chevrontexaco.com) ..................................40
4.3 Case Study Analysis of Ernst and Young (www.ey.com)........................................45
4.4 Case Study Analysis of Gelco (www.gelcoexpense.com)........................................49
4.5 Case Study Analysis of Infosys (www.infosys.co.uk) .............................................53
4.6 Case Study Analysis of Schlumberger (http://www.slb.com/aboutus/) ....................57
4.7 Case Study Analysis of Sequent (www.sequent.com or www.ibm.com)..................61
4.8 Case Study Analysis of Siemens (http://www.siemens.co.uk) .................................65
4.9 Case Study Analysis of Thales (www.thalesgroup.com) .........................................70
4.10 Case Study Analysis of Xerox (www.xerox.com) .................................................74
CHAPTER 5 � DISCUSSION..........................................................................................79
CHAPTER 6 � CONCLUSION AND FURTHER RESEARCH .......................................85
v
REFERENCES ................................................................................................................87
Glossary of References ................................................................................................87
Glossary of Case Studies..............................................................................................92
vi
TABLE OF FIGURES Figure 1: Data, Information and Knowledge .......................................................................8 Figure 2: Where Corporate Knowledge Lives ...................................................................15 Figure 3: Schematic Representation..................................................................................22 Figure 4: Framework of Inductive Approach ....................................................................26 Figure 5 : Basic Types of design for case studies ..............................................................29 Figure 6: Multiple case study approach ............................................................................30
1
CHAPTER 1 � INTRODUCTION
1.0 Introduction
Chapter 1 introduces the work undertaken in this dissertation and outlines the main objectives
and the ensuing deliverables. In section 1.1, this chapter provides the background and
motivations, which emphasize the importance of the study undertaken. These motivations and
objectives hence lay down the framework to guide the literature survey presented in the
following Chapter 2, towards refining and accomplishing these objectives. Section 1.2,
objective and deliverables, for this research work is discussed. Section 1.3 presents an
overview of the methodology, evaluating the case studies for knowledge management issues,
for this study. Finally section 1.4 gives an outline of the structure of this dissertation.
1.1 Background and Motivation
The rationale behind the evaluation conducted in this dissertation is that an organisation can be
qualified as a �knowledge-company� if it is able to capture the organisational internal
knowledge and disseminate this captured knowledge to its best.
This dissertation considers the different ways in which enterprise knowledge is being more
effectively exploited and how the �knowledge companies� can leverage their benefits for the
consummate implementation of the entire concept of knowledge management. For this purpose,
this section develops an understanding of visions of practitioners in this field on the demands,
challenges and importance of this �consummate implementation� of knowledge management.
Drucker (1993) stated, �We are entering the knowledge society in which the basic economic
resource� is knowledge�. Further as discussed by Hamel and Prahalad (1996) intellectual
capital depreciates steadily � thus it is required for every organisation to constantly invest in
managing, and renewing, its intellectual capital. Also Davenport and Prusak (1998) further
state that sustainable differentiation and competitive advantage derives from knowledge. This
realization has forced organisations to see knowledge as a �corporate asset�; it has the same
value as any other assets.
2
Many authors (Drucker, 1993; Nonaka and Takeuchi, 1995; Davenport and Prusak, 1998)
indicated that one of most important challenges for every organisation in the knowledge society
was to provide better quality, new services and products as well as be innovative. Nonaka and
Takeuchi (1995) suggested that the key to competitive success in the global economy was
effective exploiting knowledge, skills and creativity.
Thus in the 21st century terms such as intellectual capital, knowledge value added, and
knowledge mapping have increasingly become part of the corporate landscape. The term
Knowledge Management (KM) has come to include a range of organizational processes,
responsibilities and systems directed towards the assimilation, dissemination, capture and reuse
of knowledge. In simpler terms, KM is the answer to the question, �How can the organization
update and use its knowledge more effectively and efficiently�.
Davenport and Prusak (1998) indicated that knowledge not only makes the businesses perform
better but also is a part or the entire �product� that some organisations offer. He further implied
that if knowledge was regarded as a valuable asset in organisation, then it must be employee
accessed, developed and used to improve organisation. In other words, knowledge needs to be
managed to enable knowledge organisation adept with competitive environment, as a result the
desire for knowledge management emerges. In addition to this Dutta (1997) asserted effective
exploitation of knowledge to enhance organisational competitive advantage depended on how
organisation manages collective knowledge by capturing, storing, sharing, distribution and
using the knowledge. This has been regarded as objective of Knowledge Management by many
authors (Hedlund, 1994; Marshall et al. 1996; Davenport and Prusak, 1998).
To achieve the objectives, different strategies were adopted to implement knowledge
management in many organisations. Hansen et al. (1999) suggested two knowledge
management strategies including codification and personalization, which were learned from the
successful experiences at the forefront knowledge management industries, consulting firms.
They identified the codification strategy, as focused on using the technology to codify, store
knowledge enable every individual access and use knowledge from organisational network.
Furthermore, �The key issue is not about the latest information technologies, but whether those
technologies are used within, and for facilitating, a culture of information sharing, relationship
building and trust�, as quoted in Natalie Walker Whitlock (1999). Thus the concept of
3
personalization was evaluated where the focus is on using the computer to help individual share
and communicate knowledge in the organisation.
With ambiguous characteristics of the Knowledge as the centre and its widespread involvement
with �knowledge enabler�- people and technology, Knowledge Management has been
described as a major challenge to many organisations.
The above insights and implications provide motivations for this study, making apparent the
objectives of this dissertation. The objective lies in performing an evaluation to investigate the
implementation of the �knowledge management concept� by existing knowledge companies,
through the development of an evaluation framework. This study is offered to shorten the
discovery process for the prospective organizations looking into venturing into the knowledge
management field. It also an initiative to provide businesses not embarked on this path yet with
a �road map� which is believed to be important, and may prove to be rewarding, avenues to
pursue. The following section 1.2 describes these objectives in greater detail.
1.2 Objectives and Deliverables
The background and motivations discussed in section 1.1 have lead this research work to
reckon the critical need for identifying whether and how the existing knowledge companies
have adopted and facilitated knowledge management. It is an attempt to investigate what these
organisations have implemented knowledge management, in response to increased agility
demanded by the changing business and competitive environments.
Keeping in view the above understanding, the following objectives have been outlined which
guide the study and design of the study reported here:
! To design and develop a checklist of on which the knowledge companies will be
evaluated. This work is detailed in chapter 3.
! To perform qualitative evaluation of the sample case studies based on the above-
mentioned checklist. Chapter 3 discusses in detail the criteria of selecting case
studies along with the process of evaluating.
4
Consequently, the deliverables that have been identified following the accomplishment of the
above objectives in this study have been mentioned below:
! To obtain illustrations of checklist features or problems in the sample case studies.
These shall be annotated with references obtained through the analysis and
findings from the case studies (Chapter 4).
! To provide discussion based on the findings and analysis of all the sample case
studies (Chapter 5).
! To provide conclusions (Chapter 6) based on the findings and analysis of the
evaluation.
This dissertation limits itself to the study and evaluation of the sample case studies against the
derived checklist features. The underlying knowledge barrier, knowledge dissemination,
knowledge transfer, in depth technology issues and people issues in knowledge management,
are considered out of scope for this dissertation due to the limitation of time and structure.
1.3 Methodology
For evaluating the features of the knowledge management practicing organisations, the first
task is to identify the factors to be considered for the study. An exhaustive literature review
would form the basis of selecting the checklist features to be considered for this study.
Subsequently, to evaluate these features cases studies of organisations that have successfully
implemented knowledge management would be selected. Thereafter, an analysis on these
sample case studies will be conducted using the checklist developed.
The case studies for the analysis would be selected based on the criteria of selection of case
studies as stated by Yin (1993) and Stake (1995). In order to obtain sufficient results the
accepted sample size of 10 case studies would be used. The data for the same would be
obtained from textbooks and from individual websites of the various knowledge companies.
The companies selected are limited to those that are actively involved in knowledge
management, are mainly large size companies that are situated in different regions. Based on
the checklist developed the case studies will be analysed and results would be drawn.
5
1.4 Structure of the dissertation
This dissertation is divided into the following major sections:
! Chapter 1 introduces the research work undertaken in this dissertation coupled with the
underlying motivations and objectives of the study.
! Chapter 2 reviews the related literature and area of study to make the reader familiar
with the domain in context and to guide the design of study reported here.
! Chapter 3 reports the methodology adopted for the evaluation of the sample case
studies considered.
! Chapter 4 documents the findings of the evaluation, analysis and a discussion of the
results of individual sample case studies.
! Chapter 5 provides a discussion for all the case studies taken into consideration.
! Chapter 6 concludes with the future research recommendation for the evaluated
factors.
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CHAPTER 2 � LITERATURE REVIEW
2.0 Literature Review
Chapter 2 reviews the literature and area of study of this dissertation to make the reader
familiar with the domain in context and to guide the design of study reported here with a strong
grasp of the overall concept. It commences with a brief introduction to the domain followed by
definition and importance of the valuable asset - �knowledge� in section 2.2. It continues to
describe related key terms of the trade like data, information, and how they are linked to each
other and to �knowledge�. In section 2.3, the discussion then delves into the next key terms, the
Knowledge themes; tacit and explicit knowledge that forms the platform for implementation of
the main domain of this study. Within section 2.4, the study looks into an important aspect of
the importance of knowledge management (KM). This section reviews the relationship between
Knowledge Management and its importance in today�s competitive and customer oriented
environment.
All the aforesaid aspects draw together the importance of capturing tacit knowledge. From
here, the chapter continues to draw on the findings and study of the evolution and underlying
concepts of converting tacit knowledge to explicit knowledge. The latter sections deal with
technology and strategies used in capturing tacit knowledge, issues and challenges faced during
the process, opportunities and benefits achieved after the capture of the required knowledge
followed by lessons learnt after the successful implementation of knowledge management
systems within the organisations. The chapter concludes with a discussion about the insights
gained from the literature review which ensues to inspire the study in subsequent chapters.
2.1 Overview
In today�s highly innovative, extremely competitive and customer oriented environment,
organisations have understood that knowing how to do things is the core reason to achieve
sustainable competitive advantage. Knowledge is considered one of the important firm
resources, which is unique, inimitable and valuable for the firms (Cavusgil et al, 2003). Also, in
the knowledge society, one of most important challenges for every organisation is to provide
better quality, new services and products as well as be innovative (Nonaka and Takeuchi, 1995;
7
Davenport et al., 1998). Further, Nonaka and Takeuchi (1995) asserted the key to success in
changing environment; organisation needs to create new knowledge to compete in global
market.
The study of the domain of this dissertation looks into the different ways on how enterprise
knowledge is effectively managed and captured through various organisational strategies
and technology. Like most assets, knowledge is only valuable when it can be transformed and
re-utilised in terms of innovation. Here comes the concept of leveraging knowledge, looking at
adding value through its development and new areas of knowledge networking (sharing of
knowledge) is introduced - people enrich the knowledge asset through collaborative work.
Skyrme (1999) discusses that organisations were practicing knowledge management in some or
the other form, but were not very sure about it. At the same time many organisations named it
formerly and approached a more systematic and strategic approach and created formal
knowledge initiative. He also highlights the following trends that continue to influence the way
in which any knowledge agenda or strategy for action is developed:
# Knowledge Communities - Communities, which bring together people who have shared
interests, have proved an effective vehicle for knowledge exchange. But as knowledge
acquires value and the �possessor� of the knowledge is unwilling to share than these
communities fail to perform.
# Knowledge Processes - Computer applications are used where knowledge is being
packaged as objects that can be manipulated and transmitted in different ways to
people.
# Best Practices � Companies are now trying to motivate their employees to share their
experiences and ideas.
2.2 Knowledge � The Source of Wealth
�Knowledge is experience. Everything else is just information.� � Albert Einstein.
Knowledge is �Organized body of information�, (Web Definition, 2004). Knowledge is the
only source of a sustainable competitive advantage in today�s world (Davenport et al., 1998). It
is expandable, innovated and less tangible and depends on human cognition and awareness
(Amidon�s, 2003). Thus knowledge is nothing but a combination of personal experience, both
8
as an individual and as a collective capability, and other factors such as the embedded
intelligence in an organization's computer systems.
Knowledge is less tangible and depends on human cognition and awareness, as described by
Skyrme (2002). It has an important human dimension. He also suggested knowledge is a
combination of context sensing, personal memory and cognitive processes. Therefore,
measuring the knowledge asset means putting a value on people, both as individuals and more
importantly on their collective capability, and other factors such as the embedded intelligence
in an organization's computer systems.
Figure 1: Data, Information and Knowledge: adapted from the understanding construed from a study
(Firestone, 2001: 14-15) about the interrelation between the key terms of data, information and knowledge and their value.
Many authors (Davenport and Prusak, 1998; Alavi and Leidner, 2001) had been putting a lot of
efforts to make a distinction between data, information and knowledge. In Working Knowledge,
Davenport and Prusak (1998) made clear distinctions between data, information and knowledge
in terms of content, structure, and interpretability value, relationship between each other and
transformation methods as well as location. Exhibit 1 depicts that �knowledge� starts as data �
raw facts and numbers � for example, different figures provided by a company. Information is
data put into context- in the same example, the figures used in creating the balance sheet for the
company. Information is readily captured in documents or in databases; even large amounts are
fairly easy to retrieve with modern information technology systems. However, before acting on
information, another step needs to be taken. Only when information is combined with
experience and judgment does it become �knowledge�. Knowledge in the above example is
For information to become Knowledge, Human beings must do all the hard work.
Information is the data that makes the difference.i.e. it is meant to change the way the receiverperceives something, to have an impact on hisjudgment and behaviour. It is a structured format ofdata.
Data is a set of discrete, objective facts about events
Greater Value
9
using those figures to make short term and long term plans for the company to gain profits. It
includes the insight and wisdom of employees. Knowledge can be highly subjective and hard
to codify. It may be shared through emailed �best practices�, memos or even sticky notes on a
cubicle wall. And once knowledge is obtained, it can be put into work and applied to decision-
making.
But even today there is a debate that knowledge is nothing but a synonym for Information. A
research (Wilson Research, 2002:1) conducted in University of Sheffield, UK, critically
examines the similarity between knowledge and Information and articulated that knowledge
cannot be stored or manipulated as it resides within individual�s mind but information can. To
this McDermott (1999:110) tried distinguishing between the two,
�Knowing is a human act, whereas information is an object that can be filled, stored, and
moved around. Knowledge is a product of thinking, created in the present moment; whereas
information is fully made and can sit in storage. To share knowledge we need to think about the
current situation, whereas information can be moved from one mailbox to another�.
Further to this Haawamdeh (2002:2), Nanyang University, Singapore, contributes that
knowledge resides in the mind of people and the moment it leaves the human mind it becomes
information. To this Dawson (2000) also added that �Information can be anything that can be
digitised, while knowledge is the capacity to act effectively�. Thus, knowledge is much more
than information and knowledge sharing is not an information sharing.
To conclude this section, the following working definition of knowledge given by Thomas
Davenport & Laurence Prusak (1998) supports the understandings construed:
�Knowledge is a fluid mix of framed experience, values, contextual information, expert
insight and grounded intuition that provides an environment and framework for
evaluating and incorporating new experiences and information. It originates and is
applied in the mind of knower. In an organization, it often becomes embedded not only
in documents or repositories but also in organizational routines, processes, practices
and norms.�
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2.3 Different types of Knowledge Themes
Many authors seem to have concern with the different themes of knowledge. (Nonaka and
Takeuchi, 1995; Davenport and Prusak, 1998; Alavi and Leidner, 1999). Polyani (1966)
introduced the notion of tacit knowledge and made a distinction between �tacit� and �explicit�
knowledge in 1960s. Later Knowledge was categorized in two different categories: explicit and
tacit knowledge by Nonaka and Takeuchi (1995):
$ Explicit Knowledge: Explicit Knowledge is the most common type of knowledge. It is
'readily available' and can be codified and structured in a way that makes it easily
transmissible. Explicit Knowledge is the kind of knowledge that is recorded and allows
people to find it and use it. It can be found in a range of diverse sources, such as human
resources data, meeting minutes and the Internet. Nonaka (1995) refers to this knowledge
as �Formal and Systematic� and offers product specifications, scientific formulas and
many more as the examples.
$ Tacit Knowledge: This kind of knowledge exists in human minds only. It is most
unstructured, composed mainly of complex sensations, images and mental models that
haven�t originated clear statements in our minds, and so that are difficult to register and
communicate (Carvalho et al., 2001:5-6). Tacit knowledge comes with experience and it is
difficult to manage and express. This knowledge is difficult to communicate to others as
information, and can at best be difficult to digitalize. Tacit knowledge is defined by Howell
(1996: 92) as:
"�non-codified, disembodied know-how that is acquired via the informal
take-up of learned behaviour and procedures. Tacit knowledge does not
involve the generation and acquisition of tangible products and processes, or
the more formal element of intangible knowledge flows associated with specific
research, technical or training programs".
Fleck (1996: 119) describes tacit knowledge as, �a subtle level of understanding often
difficult to put into words, a trained recognition and perception, a good feeling for the
technology�. Polanyi (1966), who was the first one to introduce the concept of tacit
knowledge, expresses the meaning in a simple and precise way, �we can know more than
we can tell�.
11
It is these categories that organisations plan to manage and try to extract as much information
as possible, thus discovering a new word called �Knowledge Management.�
2.4 Knowledge Management
Important economics and business theorists have identified knowledge as the ultimate
competitive advantage for the modern firm. That is, it is a resource that is difficult to or rather
impossible to imitate or co-opt, giving its possessor a unique and inherently protected
commodity which make them superior to others. Therefore, any techniques or methods, which
sustain knowledge growth and distribution, are the key to success of today's organizations.
Hence, the term Knowledge Management (KM) was developed. Knowledge Management came
in the business world in mid 1990�s to manage knowledge. Knowledge Management as said by
Srikantaiah et al.(2000:3), �A discipline that promotes an integrated approach to identifying,
capturing, evaluating, retrieving and sharing all of an enterprise�s information assets�. These
assets are widely categorised as databases, documents, policies, procedures and experiences of
individual workers. KM is an emerging, interdisciplinary business model dealing with all
aspects of knowledge within the context of the firm, including knowledge creation,
codification, sharing, and how these activities promote learning and innovation. In practice,
KM encompasses both technological tools and organisational routines in overlapping parts.
Today organisations are realizing how important it is to �know what they know� and be able to
make maximum use of the knowledge. This knowledge which is distributed right across the
enterprise is stored in many different places such as in documents, databases and computers
and mentally in people�s heads. All too often one part of an organisation repeats work of
another part simply because it is impossible to keep track of or make use of knowledge in other
parts. Enterprises need to know what their knowledge assets are and how to manage and make
use of these assets to get maximum return. Knowledge management is not only about managing
these assets but also managing the processes that act upon the assets. These processes include:
developing knowledge; preservation of knowledge; and sharing knowledge. Therefore,
knowledge management involves the identification and analysis of available and required
knowledge assets and knowledge asset related processes, and the subsequent planning and
12
control of actions to develop both the assets and the processes so as to fulfill organizational
objectives.
Knowledge management is the explicit and systematic management of vital knowledge and the
associated processes of creating, gathering, organizing, diffusion, use and exploitation of this
knowledge. It requires turning personal knowledge into corporate knowledge that can be
widely shared throughout an organization and appropriately applied (Borgho and Pareschi,
1997:835-842).
It has been observed that companies adopt two broad thrusts in applying knowledge
management methods:
1. Sharing existing knowledge better - making implicit knowledge more explicit and
putting in place mechanisms to move it more rapidly to where it is needed.
2. Innovation - making the transition from ideas to commercialization more effective.
In today's emerging and competitive digital arena, businesses will need low-risk, cost-effective
tools, to improve communications and interactions among employees, and give management
the data and monitoring capabilities to unleash successful knowledge commerce business
channels.
Companies that have embarked on a knowledge commerce strategy anticipate two major
benefits: First, since knowledge determines profitability indirectly or directly, rewards
overcome the tendency to hoard and protect knowledge. For example, an employee spends
months creating a killer sales proposal, which leads to new business. Subsequently, a colleague
uses the intellectual framework, and perhaps some of the prose from that proposal, for his own
sales proposal, which also wins new business. Second, companies recognize the sizeable
productivity gains driving profitability that can be captured in not having to recreate the
proverbial wheel. While the second worker in the sales proposal example can't simply copy
verbatim the original proposal because it must be targeted to the unique circumstances of the
new customer, the intellectual framework and approach can be ported. This cuts down on the
time and knowledge required to complete it.
Thus the intellectual framework can be incorporated within organisations using the
appropriate strategy and information technology. Hence combining human and information
13
systems, organisations can have the ability to learn further than the learning of any of the
individuals within it.
2.5 Traits of Knowledge Management
DiMattia and Oder (1997) asserted that organisation employed Knowledge Management trends
to cope with information explosion and capitalise the knowledge in the workplace. They also
indicated that Knowledge Management was raised by two fundamental shifts including
downsizing and technology development. According to Forbes (1997) many organisations
applied downsizing strategy to reduce overhead and increase profits during 1980s. However, it
also brought with another results that organisation encounter a great loss of �expertise
knowledge� which was taken away by their employees when they left the organisation
(Piggott, 1997).
Many organisations regarded the objective of incorporating Knowledge Management as to
leverage knowledge from employee by sharing with others to obtain �competitive advantage�
which is primary business objective in an organisation. Wiig (1997) identified the objective of
KM were to secure organisations� viability and overall success by making it act intelligently as
well as to realize the best value of its knowledge.
Tacit knowledge also boosts �innovations�. This is because tacit knowledge is most difficult to
transfer and deploy, giving advantage to the possessor, and so more likely to be rare and
difficult for rivals to replicate the same.
Other successful implementation for capturing internal and tacit knowledge has provided
companies with enormous benefits. Few of them are listed below;
# Avoidance of costly mistakes - By retaining knowledge as organizations
downsize or restructure, organizations can save costly mistakes or 'reinventing the
wheel' and eliminating redundancy and unnecessary processes.
# Sharing of best practices - Companies save millions a year by taking the
knowledge from their best performers and applying it in similar situations
elsewhere.
14
# Successful Innovation - Companies applying knowledge management methods
have found that they developments such as the Internet bring the �global village�
ever nearer also promoting innovation by encouraging the free flow of ideas.
# Save members Time to Answers by harnessing collective brainpower.
# Boost revenues by getting products and services to market faster.
# Enhance employee retention rates by recognizing the value of employees'
knowledge and rewarding them for it.
# It helps in minimizing Information overload.
# People can access data from any corner of the world giving �Mobile workforce�
# Speeding up the decision-making abilities help the organisation to concentrate on
more important factors. Further it helps in creating a decentralised and global
environment
# Determining who knows what and where they are
# Optimising value from resources both human and technical
# Efficiency in working.
(Santosus, and Surmacz, 2001:3 and McDowall, 2002)
These and other benefits could be categorised as improved customer service, faster problem
solving and more rapid adaptation to market changes, have resulted from a focus on leveraging
knowledge and knowledge management practices.
2.6 Tacit Knowledge: The Valuable Asset
Today knowledge management is different from what it was practiced before, earlier it
acknowledged that the key asset were the technology, the process, or financial assets that a
company possesses, but lately organisations feel that knowledge is what which lies in the minds
of their workers and their infrastructure. This emerging business concept deals in managing
the tacit knowledge within an organization. �Tacit knowledge, the unspoken know-how in the
organisation, is among its potentially valuable assets� (Horvath, 2000). Faced with a rapidly
changing and unpredictable business climate, many companies are beginning to realize that
knowledge sharing and generation of new knowledge is critical for their survival. A recent
research done by Delphi Group and presented in Knowledge Management Yearbook 2000-
2001, explores the key areas where the corporate knowledge is stored. The following chart was
developed according to the study.
15
Figure 2: Where Corporate Knowledge Lives: adapted from Knowledge Management Yearbook 2000-2001, researched by Hickins,M. (Cortada, J. et. al., 2000)
According to the Exhibit 2, Employee Brains is where the maximum knowledge is stored. It is
this knowledge, tacit knowledge, which is the most valuable knowledge within a firm which is
essentially hidden � resides behind employees mind rather than documents or databases. The
challenge which is inherent with tacit knowledge is figuring out how to recognize, generate,
share and manage it. The major problem lies with the employees, who tend to hoard knowledge
and not communicate or share with other employees within the organisation.
For many organizations, using the axiom that "knowledge is power" creates an environment
that inhibits knowledge sharing; thus people believe that knowledge is the key to individual
success, therefore, are reluctant to share it freely. Thus intellectual capital is further difficult to
capture. Organisations also think that implementing IT in the form of e-mail, groupware,
instant messaging can help facilitate the dissemination of tacit knowledge.
Thus it is perceived that tacit knowledge could be best captured using a �mixture� of two key
strategies as discussed below in the next section.
Where Corporate Knowledge Lives
Employee Brains42%
Electronic Knowledge
Bases12%
Electronic Documents
20%
Paper Documents
26%
16
2.7 Two thrusts of Knowledge Management
Hansen, et al., (1999) suggested two knowledge management strategies; codification and
personalization which had been employed by the forefront knowledge management industries,
consulting firms.
$ Codification approach focuses on knowledge documents creation, storage, distribution
and reused in electronic format. In this approach, Information Technology is heavily
invested in order to connect people with reusable codified knowledge.
$ Personalization approach regards knowledge as closely tied to the person to person
who develops it, also knowledge shared mainly through person-to-person interaction.
Information Technology is used to facilitate knowledge exchange through people
communication.
They further indicated both approaches require people and new strategies to provide knowledge
and Information Technology thereby helping people in capturing and generating new
knowledge in order to achieve Knowledge Management successfully.
2.7.1 Importance of Codification Approach in Knowledge Management
The importance of codification approach is to make better use of the knowledge that already
exists within the firm, for example by sharing best practices. Very often leading managers
comment "if only we knew what we knew". Too frequently people in one part of the
organisation reinvent the wheel or fail to solve customer's problems because the knowledge
they need is elsewhere in the company but not known or accessible to them. Hence, the first
knowledge management initiative of many companies is that of installing or improving an
Intranet.
�Information Technology infrastructure has become one of the most important investment
decisions in today�s world� (Davenport et al, 2000). Information Technology aims at providing
a proper and manageable flow of information within the organisation that will benefit the
company in its long run. �In general, IT implementation has had a dominant automation focus
on internal productivity centred on the manufacturing and finance functions, which have seen
their efficiencies, increase� (Galliers et al, in Mairead 2003:125).
17
Information technology helps in access to up-to-date information of resources, relevant
information rapidly available. Every organization is filled with information which is used
during many analysis or studies. Information alone is not enough to solve the issues and
problems. Technology is needed to structure the information and to retrieve the best answer to
a particular question. Technology plays an important role in knowledge management, although
KM is not about technology (Santosus, and Surmacz, 2001:1). Technology facilitates the
process of transmitting and exchanging information (Haawamdeh, 2002:5). For example
Internet has made it possible for people all over the world to share their experiences and
knowledge with each other and also helps in accessing up-to-date information of resources
relevant to the work. Further, technology helps tacit knowledge to convert into explicit
knowledge which can be used by the staff of a company for further innovations. Other
Advantages of incorporating Information Technology in a knowledge-intensive organisation
are listed as follows;
1. Technology helps in expecting higher level of Return on Investment from applications
which address one or more of the organization�s critical success factors. Like Global
Market, Better Innovative technology (CRM or ERP), good customer services and
competition.
2. Staying ahead in Competition � Companies today face tough competition in the global
market; they need good technology which can deliver better knowledge intensive
services to consumers, and thereby enabling in achieving organisational efficiency.
3. Maximising Organisational Potential � It is said that having knowledge intensive
technology within organisation helps in building organizational strengths, retaining
knowledge workers, preserving corporate memory thus ensuring organisational
effectiveness.
4. Managing Intellectual Capital � Steward (1997), said that human capital is the most
important asset of the company, and he also noticed the different ways organisation
used to maintain their intellectual staff. He argued that human capital alone cannot
make any impact within the organisation, it requires a more structured and well-
maintained capital. It required a capital which continuously recycles and creates new
useful information. Thus it needs system/IT where one can save and preserve the
codify knowledge and let the people use the data for their working.
5. It provides a long-term investment � Incorporating knowledge within the organisations
helps in achieving long term goals, like DSS (Decision Support System), helps the top
18
management in making profitable decisions for the company. Thus providing a
Quantifiable benefits.
6. Information Systems are tends to be more reliable, accurate, and auditable particularly
when important and sensitive data is concern.
7. A more organised, non-redundant and sense-making form of information is provided.
8. Integrates the community � As communities need to connect with each other for
sharing of knowledge and finding answers to similar problems which they are facing.
Examples E-mails and GroupWare.
9. Failures in implementing Knowledge Management Systems (KMS) are often blamed
on the organisation culture, as people don�t want to share their knowledge and
experiences with others in the same community. Thus incorporating IT-KM within
organisation helps in removing issues regarding culture changes.
The benefits of implementing Information Technology are a lot more than what is enumerated
above. Information Technology has made many small and medium companies a new world of
leveraged knowledge (McDermott, 1999:103). Leveraging knowledge involves a unique
combination of human and information systems.
2.7.2 Importance of Personalisation Approach in Knowledge Management
�Knowledge exchange initiatives require more than just flashy software to effect a change.�
� Megan Santosus Many organisations feel that incorporating Knowledge Management systems connects people
with information. But it is not the only solution, for motivating people to utilise the technology
for their benefits and for the benefits of the organisation, organisation need to develop new
strategies and approaches. Organisations need to create knowledge culture and behaviour
environment in order to share relevant best-practices, case studies, lesson-learned and many
more of internal as well as external sources.
Santosus (2001), states, �In my admittedly rudimentary test drives, the technology seems to
work as advertised. But after typing in my queries and waiting for answers, I have to admit: If
given the choice, I would prefer to gather around a water-cooler and ask a colleague a
question in person�. Thus technology just can�t take the place of a real life situation, even
though if it�s well-designed.
19
As said by Malhotra in the work of Pawar (2001) done in Nottingham University, �Technology
is not a panacea and in itself it has no answers to human sentiments. There is an overarching
need for building a KM culture within an organisation.� However the responsibility for
developing this culture is not only the concern of information technology specialists. The
human resources department as well as Top Management needs to ensure that people are
rewarded and given appropriate recognition for what they have contributed towards the well
being of the organisation.
For an organisation to implement a Knowledge Management strategy, it has to provoke a
knowledge culture. A research done by UMIST, on KLICON (1999) stated, �Sharing
information and being part of a team are both important in creating a culture in which the
organisation is able to learn.�
All organisations have to excel not just in managing but also creating, applying and exploiting
knowledge to the full. To realise its value, they must combine employee�s know-how skills
with appropriate assets. Since knowledge can be an extremely valuable organisational asset,
there should be a strategic framework within which it is generated/captured,
represented/codified, transferred, and assimilated.
While implementing a knowledge management strategy the following features should be well covered (UMIST, KLICON Paper, 1999):
i. Generating organisational knowledge.
ii. Knowing what knowledge is where / Improving access and retention of knowledge
through better knowledge representation.
iii. Transferring, re-using or sharing knowledge.
iv. Defining what knowledge should be shared, with whom, and how.
v. Ensuring knowledge is managed as an asset / Enhancing and promoting the
knowledge environment.
Further by generating a knowledge culture within the organisation is not a one time activity,
but need to be re-validated on a continuous basis. Organisations need to frequently capture the
customer needs and demands along with understanding the market requirements and act on
these in order to be ahead of their competitors.
20
2.8 Issues and Challenges
What is truly difficult in implementing knowledge management is to embed an appreciation for
knowledge creation and use in the culture of the organisations. Several barriers to knowledge
culture exist from problems of employees to organisational culture and many more.
The biggest challenge reported by practitioners in the implementation of KM practices, is that
of changing the culture from "knowledge is power" to "knowledge sharing is power". Other
common obstacles provided by Skyrme (1997) are as follows:
! Introversion - afraid to learn from outsiders or expose internal operations to customers
! Too focused on detailed process - rather than the big picture and the more chaotic process
of knowledge creation
! Treating it as one-off project or quick-win - knowledge management is a commitment to
the long-term: the organization�s future prosperity.
! Individual disciplines and 'turf wars' - knowledge management goes beyond the remit of
any single function or discipline. All functions must collaborate.
! Organizational recognition and reward systems usually do not sufficiently recognize
knowledge contributions.
! One of the most common complaints of the KM systems is that experts consistently refuse
to share knowledge (Seidman, 2002).
21
2.9 Summary
A new paradigm is sweeping the business environment across the world. In this emerging
paradigm, terms like information, communication, knowledge, and learning have acquired a
critical relevance to an understanding of the nature of contemporary business. The business
world is moving from its tangible bases to intangible ones (Sonnenberg, 1994).
Since the mid-1980s, however there has been a sudden avalanche of a new kind of vocabulary.
Corporations, which so far had been economic entities, are being described as �information-
based organization� (Drucker 1998), �educated organization� (Handy, 1989), �knowledge-
creating company� (Nonaka and Takeuchi, 1995) and �learning organization� (Senge, 1990),
and so on. Instead of product -market strategies, one has started to talk about core
competencies, intangible assets, knowledge-based capabilities, intellectual capital, knowledge
management etc.
The business world is not the same any more. Knowledge is being increasingly described as
resources, power-bases, assets, competitive advantages, strategic weapons and so on. There is
scarcely any dissent about it: Knowledge is the currency of the millennium, and knowledge
management is a key survival imperative (Infosys, 2004). Finally, knowledge needs to be
captured and organised in such a way that it connects the Right People at the Right Time and
with the Right Information.
The literature review in this chapter has helped to gain an insight into the study domain and to
acquire a firm grasp over the concepts involved. The area study has identified that
organisations has a wealth of unexploited knowledge which can be captured and managed
through an effective use of information technology and organisational culture. This is likely to
be tacit knowledge of experienced employees, customers and competitors, that can offer value
added services to the organisations. Such knowledge may be offered in the form of
implementation, training, and best practices.
From now onwards the study will be focused in discussing how tacit knowledge can be
captured and codified in a more explicit form such as documents, databases and computer
softwares by the various sample organisations. Further it will also identify the benefits and
22
barriers met by the organisation. Also the study will provide a detail structure on how the
organisations were able to implement KM using technology and personnel outlook.
2.10 Schematic Representation
Figure 3: Schematic Representation adopted by: Moyer, Don. Harvard Business Review,
May2004, Vol. 82 Issue 5, p155
Capturing this
Knowledge
23
24
CHAPTER 3 � METHODOLOGY
3.0 Introduction
This chapter sets out the research process used for this study. As a Case Study methodology
was adopted the research could be developed into four stages; finding the case studies,
analyzing the case study findings, extend an overall discussion of the findings and develop the
conclusions and further research area. This chapter includes six sections including research
approach, research strategy, research methods, research design, data analysis and limitation.
3.1 Research Methodology
Walliman (2001) describes research as �a term loosely used in everyday speech to describe a
multitude of activities�. Research methodology is a strategy of inquiry which moves from the
underlying philosophical assumptions to research design and data collection (Mason, 1996).
The choice of research methodology will influence the way in which a researcher collects data.
Specific research methods also imply different skills, assumptions and research practices.
Research methodology can be classified in various ways: Quantitative, Qualitative or Inductive
and Deductive approaches. For the purpose of this dissertation, the Inductive research approach
is adopted. The further discussion of Inductive approach and the reason of choosing the same
are discussed.
3.2 Research Approach � Inductive Approach
In order to outline the research in an appropriate way, Inductive approach is applied for the
dissertation study. Inductive approach is where one could collect data and develop theory as a
result of the data analysis, (Saunders et al., 2000). Through inductive argument we infer
general truths from the particular (Specific cases % Theoretical conclusion) as stated by
authors like Walliman (2001) and Ford (2002).
Inductive approach understands the meaning of humans attached to the event (Saunders et al.,
2000). Saunders (2000) also discusses that, inductive approach is more realistic when the focus
25
is towards the humans whose behaviour is a consequence of the way in which they perceive
their work experience.
Inductive approach starts with a question or �problem statement� (Glesne & Peshkin in Ford
2002) followed by conclusions that are generated from the existing data. In other words, it is
likely to obtain the academic concepts from the existing data or cases. Therefore, under the
intention of obtaining the reasons on how tacit knowledge is captured and what are the key
issues like barriers, challenges, benefits and affect towards organizational culture, inductive
approach is definitely more appropriate for the dissertation.
Research using this approach would be particularly concerned with the context in which such
events were taking place. Therefore the study of a small sample of subjects may be more
appropriate than a large number (Easterby-Smith, 2002). Further as stated by Saunders (2000),
Inductive research allows a more flexible approach, one can do changes accordingly as the
research progresses.
On the other hand, induction approach allows the data to determine the key concepts to be
discussed. Conclusions are drawn from the empirical data that is being observed during the
collection of the data (Bell in Ford 2002). Accordingly, it is better for this case study based
dissertation to use inductive approach.
According to the above-discussed arguments, a methodological framework was derived with
target of getting a brief understanding towards the research strategy. Exhibit 4 is a methodology
framework, which suits the domain of study appropriately. It is outlined from inductive
standpoint to facilitate the results from the background knowledge. In order to obtain the final
answer of the dissertation regarding �Capturing tacit knowledge� there are four main inductive
steps applied in the framework.
! A critical review of the researches and theories was carried in order to understand the
background of the study.
! Cases were selected on the basis of its validity, descriptive and reliability in order to
obtain the key questions for validation.
! Analysis of individual case study was done by using the former theoretical knowledge.
! Finally a theoretical discussion and conclusion was created.
26
Figure 4: Framework of Inductive Approach
Two main methods applied in this study are � Literature Review and Case Study Analysis. The
two are explained in more details in the next section, Research Methods.
3.3 Research Method � Literature Review and Case study Analysis
The purpose of this research is to uncover reasons during the capturing of tacit knowledge by
various organisations. In order to do this, a critical review on the past research and papers were
done along with analysing varied case studies to capture the knowledge for the same.
McNeill (1990) states that there are two kinds of data, which are involved in the sociological
research; they are Primary and Secondary Data. He characterizes that: �Primary data is
collected by the researcher at first hand, mainly through surveys, interviews, or participant
observation. Secondary data is available from some other source, and comes in various
forms�. There are no direct interviews or surveys conducted for this dissertation. Therefore, the
dissertation totally concentrates on the secondary data collection and analysis.
3.3.1 Literature Review
New Findings
Background Study
Secondary data collected
Analysis of each case
Theoretical conclusion
Background Knowledge
Exhibit 4
27
It has been acknowledged that literature review is essential to carry out a research. It helps to
establish the background knowledge by identifying the concepts and themes and trends of the
topic (Busha and Harter, 1980). It also enables researchers to formulate the research question
by identifying the knowledge gaps, significant issues and possible questions. Nevertheless, it
has always been a parametric part of research report. For instance, the literature review not only
presented as one of main chapter, but also provided evidence for other sections including
introduction as well as discussion section of this study. On the basis of the literature review a
set of questions were developed.
The literature was collected from various sources. The major two sources were the textbooks
on knowledge management available in the university as well as the British library and the
research papers, which have been widely published on the knowledge management issues.
More emphasis was given to literature from scholarly journals, text books although websites
like BRINT and many knowledge management website and newspapers were also consulted
for the review.
The literature review in this dissertation aims to understand how the tacit knowledge is
captured within the organization. As part of the literature review, some review was also given
to; benefits of tacit knowledge, how tacit knowledge is converted, barriers and challenges faced
by the organizations and the implication of technology and culture towards knowledge
management. All of these literature review topics were related to the underlying theme of the
benefits of tacit knowledge.
3.3.2 Case Study Analysis Some of the classic studies in organisational research have been derived from the detailed
investigation of organisations (Bryman, 2000). The term "case study" has multiple meanings. It
can be used to describe a unit of analysis (for example, a case study of a particular
organisation) or to describe a research method. The discussion here concerns the use of the case
study as a research method.
Case study research is the most common qualitative method (Alavi and Carlson, 1992;
Orlikowski and Baroudi, 1991). Although there are numerous definitions, Yin (1994) defines
the scope of a case study as follows:
28
A case study is an empirical inquiry that investigates a contemporary phenomenon within its
real-life context, especially when the boundaries between phenomenon and context are not
clearly evident.
Saunders (2000) defines case study as the �development of detailed, intensive knowledge about
a single �case� or a small number of related �cases��. This strategy is particularly useful for
this dissertation as it provides with an in depth understanding of the context.
The data collection method employed in this dissertation is finding different case studies of
different organisations, which practice knowledge management. According to Saunders (2000),
the case study approach generates answers to the questions �why�, �how� and �what�. This
research study satisfies the characteristics of a case study research by generating question like,
�Why the need of capturing tacit knowledge required in the organisations�, �What are the
benefits and barriers faced by the organisations� and �How is the tacit knowledge converted to
explicit�.
The next section focuses on how the case studies were identified in order to carry this
dissertation.
3.4 Research design
Every type of empirical research has an implicit, if not explicit, research design. Yin (1994)
defines research design as �an action plan for getting from here to there, where �here� may be
defined as the initial set of questions to be answered, and �there� is some set of conclusions
about the questions�. Between �here� and �there� may be found a number of major steps
including the collection and analysis of relevant data. Yin (1993) also stresses that a well
articulated research design might be one of the most important ingredients in doing a good case
study analysis. A case study is an empirical inquiry that; �Investigates a contemporary
phenomenon within its real life context when the boundaries between phenomenon and context
are not clearly evident and in which multiple sources of evidence are used�, (Yin, 1993).
Of the four types of case study designs proposed by Yin (1994) the one applicable for this
dissertation exercise is the multiple-case (embedded) design, that is, Type 4 of Exhibit 5 below.
29
Figure 5 : Basic Types of design for case studies adopted by Yin (1984)
The rationale for multiple cases being analysed in the study is that a detailed understanding was
required on how knowledge is captured. Further for the study it was difficult to acquire primary
data due to limitations of time constraint and geographical issues. Thus a second hand data of
case studies were collected which was associated with the area. Also as said by Yin (1984), �a
single case study is always not adequate enough to produce reliable results�. This does not
imply that one can simply group together any collection of data gathering and analytic
techniques and claim to have a rigorous case study, but the methods must be carefully
considered in light of all aspects of the study. Also, my dissertation was giving attention to the
units and subunits, like Organisation, Employees and Organisational Culture; an embedded
case study design was needed.
Selecting multiple cases to be studied is one of the most difficult steps in case study research
(Yin, 1993). The selection of multiple cases was part of the initial design. However one
constraint was that only a small number of cases could be the subject of the study. This
constraint along with other limitations is discussed further in section 3.5 of this chapter.
The criteria taken into consideration for selecting the cases were as follows (Yin, 1993 and
Stake, 1995);
30
! Every case was demonstrated before coming to a final selection.
! The type of organisations taken into consideration
! The cases will cover different regions of country emphasising on different
economic conditions
! Understanding the maximum learning�s one can get from the cases
According to above criteria, initially 30 case studies were identified from different resources
like; text books, journals, publication, white papers and websites of the company itself. After
reading and understanding the requirements finally 10 case studies were selected for the
analysis. These case studies were mainly from the �giant� organisations, like Hewlett Packard,
ChevronTexaco, Xerox, Sequent-IBM, Infosys and more. The cases were also from the varied
continents such as Hewlett Packard is an American company and Infosys an Indian company.
These were able to emphasise on different economic as well as working conditions of
organisations. Finally the cases were able to provide answers to all the questions of the
checklist developed from the literature review and are further discussed in the chapter.
The approach taken for the dissertation in analysing the data is shown in the exhibit 6.
Figure 6: Multiple case study approach adopted by Yin, 1984
Develop Theory
Select Cases
Design Data Collection Protocol
Conduct 1st Case study
Draw Cross case conclusion
Conduct 2nd
Conduct all Case studies
Write Individual Case report
Write Individual Case report
Write Individual Case report
SINGLE CASE COLLECTION & ANALYSIS CROSS CASE ANALYSISRESEARCH DESIGN
31
3.5 Data analysis � Checklist development This section deals with how the list of features was developed for the study as a framework for
evaluation of knowledge management to meet the objectives identified in chapter 1. The
approach to this development involves investigation of several case studies as stated above in
section 3.4 of this chapter and gain valuable insights for scenarios of use from work conducted
by leading practitioners in this field. The checklist generation was done after a brief discussion
on the potential features reviewed in the chapter 1, resulting in the derivation of the desired
checklist. This checklist serves as a basis of all subsequent evaluation detailed in chapter 4 of
this study.
Based on the understanding from the literature review the objectives of the checklist were
identified and listed below;
! Compare and evaluate the sample case studies identified for the study that facilitate
knowledge management.
! Identify and analyse the loopholes and successes of these sample case studies.
As stated by Buckingham (2000) a checklist can contribute substantially to the improvement of
validity, reliability, and credibility of an evaluation and to obtain some useful knowledge about
a domain. It forces the evaluator to consider separately and allocate appropriate merit to each of
the relevant dimensions of possible merit.
There are many organisations today claiming that they practice knowledge management. Yet
despite the large number of organisations marketing their views, it is often difficult for anyone
to find literature and information that could comprehensively list out the criteria for evaluation
of knowledge management organisations. Given the constraint this checklist was developed
with the following considerations:
! The checklist should be generic enough not to slant on one organisation.
! The checklist should be unbiased with the intention to highlight both the strengths
and the weaknesses of the organisation.
! The checklist should be simple and intuitive so as not to pose difficulties even for a
person unfamiliar with the domain.
! The checklist should focus on features and functionalities, which have direct
impact on knowledge management.
32
Guided by the design considerations, the following checklist was developed;
Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required.
Efficient implementation of this feature will enable organisations to understand the key areas
where tacit knowledge could be best utilised there by improving the flow of information in the
organisations. This requires looking closely into where are the possibilities of using the tacit
knowledge is required by the organisations.
As reviewed in Chapter 1, identifying tacit knowledge can be advantageous to organisations as;
retaining expert knowledge, innovations, competitive advantages, best practices, reducing
errors, saving time and money, minimising information overload, improving decision making
abilities, improving customer services and many more.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit
knowledge).
The above feature makes it apparent that tacit knowledge, which is explicitly available to the
employees, increases wealth by adding knowledge value to the organisations. The efforts are
directed towards repeating and maintaining customers so that they continue to add genuine
value to the entire system. The feature helps in identifying the techniques used by the different
organisations to make the tacit knowledge available explicitly.
As reviewed in Chapter 1, if tacit knowledge of the organisation is not available explicitly,
organisations are unable to prosper.
Feature 3: Benefits to the company as well as employees.
This feature is able to identify the benefits incurred by the organisation as well as the
employees of the organisation after successful implementation of knowledge management
within the business.
Further as reviewed in Chapter 1, organisations are benefited as a whole as well as from the
employee prospective, customers prospective and process prospective.
33
Feature 4: Barriers/Challenges faced by organisation while implementing KMS.
Any new approach faces barriers and challenges whether internal, like employees, or external,
like customers and environment. This feature is able to identify the key areas where
organisations can be faced with barriers and challenges thereby enabling them to take proper
steps during the implementation
Chapter 1 illustrates, Employees and Organisational culture as the biggest barrier for
implementing knowledge management by many researchers. Thus this feature will able to
understand to what extend is the above truthful.
Feature 5: What was the methodology applied in the organisation: Strategy and
Information Technology.
It has been observed during literature review that organisations should not only concentrate on
information technology but should also focus in developing personalisation strategy for a
successful implementation. This feature identifies what methodology is used by the
organisation and how they have incorporated the same.
Feature 6: To what extent capture of tacit knowledge and translation to explicit
knowledge affects the Organisational culture and Behaviour.
As discussed in Chapter 1, �Failures in implementing Knowledge Management are often
blamed on the organisation culture and behaviour, as people don�t want to share their
knowledge and experiences with others in the same community�. Thus it is required to
understand, to what extent does the successful implementation of Knowledge Management,
changes the organisational culture as well as behaviour.
Henceforth, the chapters will be focused on analysing the case studies on the bases of the
checklist identified and stated above.
3.6 Limitations
Like any other research, this study also has some limitations. Overall, time constraints were a
big problem with data collection and analysis. Due to less data available on knowledge
34
management case studies, I was only able to analyse 10 case studies to the maximum. Further
as stated by Professor Cavaye, University of Southern Cross that �number of cases should not
be less than 4, too little information and more than 12, otherwise too much time is required�.
Another limitation was on the number of features for checklist developed. This was because the
dissertation will be too voluminous and time consuming thus only six features were analysed.
Finally the dissertation only aimed on �Knowledge Capture� and not on the other aspects of
knowledge management which are knowledge barrier, knowledge dissemination, knowledge
transfer, in depth Information technology issues as well as People issues in knowledge
management and many more.
3.7 Summary
To sum up, the chapter was totally focused on the research methodology used during the
dissertation. The research approach adopted was Inductive. Further the research methods were
Literature Review and case study analysis. A checklist was developed after critically reviewing
the literature. The checklist provided a framework to analyse the case studies providing an in
depth understanding to the subject. Finally, few constraints of the dissertation were identified
during the process.
35
CHAPTER 4 � ANALYSIS AND FINDINGS
4.0 Introduction
This chapter is focused on analysing the case studies on an individual basis. The cases are
studied using the framework provided by the checklist prepared in the previous chapters. Each
case study starts with a brief introduction of the organisation, followed by the analysis of the
case, based on each question identified in the checklist. Finally, each case concludes with a
discussion.
4.1 Case Study Analysis of Hewlett Packard (www.hp.com)
4.1.1 Introduction of Hewlett Packard (HP)
Hewlett-Packard (HP) is a large, successful company with over $31 billion in 1995 revenues.
Its fast annual revenue growth of approximately 30% from such a large base has astounded
observers. HP delivers vital technology for both business and life. The company competes in
many markets, including computers and peripheral equipment, test and measurement devices,
electronic components, and medical devices. HP�s $4 billion annual R&D investments fuels the
invention of products, solutions and new technologies, so that they can better serve customers
and enter new markets. HP invents engineers and delivers technology solutions that drive
business value, create social value and improve the lives of its customers. HP has a dynamic,
powerful team of 142,000 employees with capabilities in 170 countries doing business in more
than 40 currencies and more than 10 languages.
HP is known for its relaxed, open culture. All employees, including the CEO, work in open
cubicles. Many employees are technically oriented engineers who enjoy learning and sharing
their knowledge. In mid-1995 it became apparent that several knowledge management
initiatives were underway in various HP business units. Some of these initiatives had been in
place for several years; others were just beginning. Noticing this phenomenon, Bob Walker,
HP's CIO and Vice President, and Chuck Sieloff, Manager of Information Systems Services
and Technology (ISST), decided to attempt to facilitate knowledge management at HP.
36
4.1.2 Analysis of HP knowledge Management Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
To facilitate knowledge management within the organisation HP decided to hold a series of
workshops, with the aim to identify the areas where tacit knowledge of employees could be
well utilised.
$ �Employees of the educational community complaint that they had no idea what was
happening in another part of the organisation� (HP Case study). Thus it was identified
that a system was required in order to share knowledge between the departments.
$ Even though HP was known for its relaxed and open-culture but there was no
�organised form of sharing information�. (HP Case study) Employees were moving
around for the information, which was not very fruitful for the organisation.
$ HP realised that by best utilising internal human knowledge they will be able to
remove duplication that is the process of re-inventing the wheel.
$ Employees of HP were facing problems in finding experts related to major subject
areas. In order to reduce problems that caused delays in the completion of work, a
system was required where information regarding the experts profile is stored which
could be accessed timely.
$ HP realised that it required capturing the knowledge from the Computer Products
Organisation (CPO) Dealer Channel. This organisation is concerned in dealing
customers problems. As the business was growing the number of calls were also
increasing thus were time consuming. HP was looking for an easily accessible database
for frequently asked questions to reduce time per customer.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
To capture the above identified tacit knowledge HP incorporated the following techniques.
$ HP developed a discussion database, Trainer�s Training Post, on all the training topics
where employees �log in� and discuss their problems and provide solutions for other
employee�s problems.
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$ A review platform was created for the feedback of the employees regarding the
improvement of the knowledge-sharing database and for the review of already posted
comments.
$ Another database called Connex was developed where the �updated� profiles of all
experts were stored so incase of any suggestions one can contact the person directly.
$ A new database, maintained by HP�s Product Process Organisation (PPO), developed
knowledge links, a web-based collection of product details. �Knowledge Links
contained knowledge contributed by "knowledge reporters and editors," who obtained
it through interviews with experts� (HP case study). The employees of diverse
functions could further use this information.
$ A dialup database, HP Network News, was developed where frequently asked questions
were stored thereby reducing the number of time per calls from the customers. This
tool was further converted to Lotus Notes and was frequently updated with the new
queries and knowledge from both the customers and employees.
$ Further employees were given incentives to make their tacit knowledge available to the
other part of the organisation. Along with this many strategies were used in order to
�push� the employees to contribute their internal knowledge.
Feature 3: Benefits to the company as well as employees
HP was able to achieve all those benefits for which the tacit knowledge from employees was
required.
$ Employees had knowledge/information about the recent developments that were taking
place in the other units of the organisation.
$ Employees were ready to share their experiences and skills and also were keen on
learning new methods from other employee experiences. Thus Knowledge sharing
culture helped in innovating new ideas for problem solving.
$ Customer services were greatly improved due to the implementation of the dialup
database. As stated in the case �HP workers began to put frequently-asked questions on
a dialup database, and the number of dealer support calls began to decline�. (HP Case
study) Thereby reducing the time per call which was needed before. Regular problems
were solved giving more time to employees to concentrate on more concrete issues.
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$ Time and energy was not wasted in locating experts concerning the problems.
$ HP saw an increase in the profits as well as returns on investment.
$ Finally, employee satisfaction was increased because of recognitions and rewards
given by the organisation.
Feature 4: Barriers/Challenges faced by the organisation while implementing tacit knowledge
According to the case study, to implement knowledge management initiatives, HP faced the
following barriers and challenges:
$ Employees of HP were reluctant on sharing their experiences and skills.
$ Employees were considering the initiative as a profit motive, which was a constraint.
�Few business units are willing to invest time and money in �leveraged� efforts that
do not have an obvious and immediate payback for the unit�
$ Even after all the efforts employees had to be continuously reminded to update their
profiles on the �expert system�.
$ Employees� notion about knowledge management was that it was an over-ambitious
dream. Thus they were not very keen on participating or contributing to the knowledge
environment.
$ Less support from the employee culture for sharing knowledge across the units. As
stated by Chuck Sieloff and Joe Schneider, �Changes to culture was like �Tail wagging
the dog��. Thus it was difficult to change the views and ideas of the employees.
$ Despite the continuous motivation factors given to the employees, a need of new
contribution or incentive was always required. �Karney was frustrated. Despite his
countless attempts with free miles and e-mail and voice mail exhortations, he still felt
the need to continually scare up fresh contributions�. (HP Case study)
Feature 5: What was the methodology applied in the organisation: Strategy and Information Technology.
As seen in the case, HP applied both the methodology.
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Information technology:
For the information technology methodology many new tools and softwares were implemented
to capture and disseminate knowledge amongst the employees. These tools could be
enumerated as Lotus Notes, Dialup databases and various other internal softwares that were
developed like Connex and Trainer�s Trading Post and Database library of experts. The tools
were well maintained through uploading new documents and information whenever required.
Strategies:
For the Strategy methodology different developers of different tools incorporated many
innovative tactics for motivating the employees to use the tools and provide with the
knowledge of their own into the knowledge bases. The tactics could be enumerated as:
$ Free Lotus Notes Licenses to prospective users
$ Free Airline miles were given accordingly; like 2000 free miles for new users,
500miles to contributors.
$ A �nag� feature was incorporated reminding people to update their profiles.
$ Further rewards and recognition were provided to the user for contributing and using
the knowledge.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
As stated before HP was already known for its relaxed and open culture where all employees
including the CEO worked in open cubicles. After knowledge management implementation the
changes that could be seen were; employees trust factor towards other employees had
increased. Further HP was able to create an open and organised culture for the information to
be shared. Overall as the employees were gaining from this new environment HP was able to
create a better organisational culture for the employees.
4.1.3 Discussion
The above case study indicates that HP has been able to initiate knowledge management within
the organisation. The discussion helps in understanding how the three different units of HP
were able to implement knowledge management systems using the technology and different
strategies. Further all three units gained some benefits from their work but it is also well
40
noticed that a continuous process is required for the knowledge management to be a successful
tool in the organisation. Continuous motivation is needed for employees to understand the
importance of knowledge management and thereby pressing them to contribute. But knowledge
Management initiators are working hard to improve the system. Finally, after all these
weaknesses knowledge management is able to provide good benefits to the organisation.
4.2 Case Study Analysis of Chevron (www.chevrontexaco.com)
4.2.1 Introduction of Chevron
Chevron � and predecessor Standard Oil Company (California) � have been fuelling travel
by automobile, airplane and ship, and providing the energy to power industry. In 2004,
Chevron, today ChevronTexaco, celebrates its 125th anniversary. Chevron-branded products
are sold in North America by business units of ChevronTexaco Corporation; included are
Chevron Products Co., which operates five major U.S. refineries and markets petroleum
products, primarily gasoline.
An innovative and motivated work force is a key competitive advantage in the global
marketplace. With employees, operations and partners in more than 180 countries,
ChevronTexaco works to leverage the rich diversity of ideas, experience and skill of its
employees. They express their belief in the value of diversity through principles, practices and
accountability. This begins with the ChevronTexaco Way, which states, �We learn from and
respect the cultures in which we work. We value and demonstrate respect for the uniqueness of
individuals and the varied perspectives and talents they provide. We have an inclusive work
environment and actively embrace a diversity of people, ideas, talents and experiences�.
4.2.2 Analysis of Chevron�s Knowledge Management Feature1: Identifying the Key Areas where the usage of tacit knowledge is required
Chevron realized the importance of Knowledge management during the early phases, and
wanted to increase the initiatives in order to gain more profits from its internal knowledge. The
following areas were the initial step in identifying the usage of knowledge.
$ Chevron needed knowledge management to maintain the six refineries that it owned.
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$ Chevron wanted to improve the procedure of getting the right information from its
employees. It needed to figure out what information the personnel require and how
different countries are handling their information.
$ Chevron was keen in improving the timeliness of document access, management and
integration, and sharing of information among individual divisions to meet regulatory
compliance. The best possible solution was to initiate knowledge management.
$ Many processes were identified where the required documents were difficult to locate
and updated. The employees were unable to use them when needed. These were
process safety management/safe operations, drilling and well files, reference
information, administrative documents, environmental records and permits, and
geological and geographical records.
$ Preckett, system manager of Chevron, realised that the mass of information, which
resided on different tools were unable to provide the best of the information. Therefore
a step was required in order to improve the quality of information.
$ A KM solution was required to automate the paper base information. The need was
because, �� (Organisation) realized that much of the critical information resided on
paper, where it could neither be updated nor retrieved efficiently�. (Chevron case
study)
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
The following tools were implemented in Chevron in order to capture the tacit knowledge from
the employees.
$ Chevron adopted Organizational learning system (OLS) that improves drilling
performance by sharing information between locations all over the world. The system
uses a simple software tool to capture lessons from the first well in a new area, and
then the lessons are further used in drilling the rest of the wells faster and cheaper.
Thus improving the cost of reinventing the wheel for the same procedure.
$ A process call Broadbase was evolved to improve the information and knowledge
sharing capabilities within the organisation. Broadbase concept revolves around
structures. As Preckett stated; �structures we think we can use and structures they
think are saleable�. (Chevron case study)
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$ To facilitate knowledge sharing, drop-down boxes in the �Indus system� captured the
feedback of workers regarding their experiences and skills.
$ Another tool was installing DocMan system � a document management system.
DocMan project was focused to improve the timeliness of document access,
management and integration, and sharing of information among individual divisions to
meet regulatory compliance.
Feature 3: Benefits to the company as well as employees
By incorporating knowledge management Chevron accomplished the following benefits:
$ Chevron was able to reduce Operating costs as well as energy costs; �improved
management of knowledge as a key to reducing operating costs from $9.4 billion to
$7.4 billion in the last seven years and to reducing energy costs by $200 million a
year�. (Chevron case study)
$ Knowledge management efforts were able to improve the productivity which was
gained by 30% and also employee safety performance was further improved by 50%.
$ Improvement was also seen in Process Manufacturing department. The efficiency was
well measured and, ��the cost dropped by 12% to 20% and cycle time reduced as
much as 40% in some cases--and that really adds up with big offshore drilling vessels
that cost up to $250,000 a day�. (Chevron case study)
$ Employees of the organisation were also able to get benefits from the new solution.
Few could be stated below in terms of what employees say;
o 'I'm now able to do what I was supposed to be doing all along. For
example, I am able to manage material safety data sheets during the year
instead of in a two-week crunch. (Chevron case study)
o Drafting supervisor David Hinton said, 'I got half of my day back. I used to
spend 50% of my time searching for drawings and making copies for other
people. Now they find the drawings themselves and make their own prints
and copies�. (Chevron case study)
$ The benefits were not only in the form of numbers, but also employees realised the
benefits of sharing knowledge and learning from others experiences. As said by the
CEO of Chevron, �The fact is finding and applying new knowledge makes everyone's
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work more interesting and more challenging�. (Chevron case study) Thus the
employees� job gave them more satisfaction and more personal rewards. Also as stated
by the system manager of the organisation, �creative thinking is promoted from the
executive level and that 'allows him to do interesting things' to achieve efficiency
gains through knowledge sharing�. (Chevron case study)Thus the main aim of the
organisation, �Employees� Satisfaction� was achieved.
Feature 4: Barriers/Challenges faced by the organisation while implementing KMS
As stated in the case the only barrier which was faced by the organisation was the Cultural
barrier. Employees were resistant to change which was occurring within the organisation.
Workers of Chevron were not very enthusiastic on contributing their views towards the
knowledge culture. Further the case was unable to provide any more information on the barriers
and challenges in the organisation
Feature 5: What was the methodology applied by in the organisation: Strategy and Information Technology.
As the case discusses, �Process, culture, best practices and technology are able to achieve the
best results�. Chevron incorporated the following methodologies;
Technology:
Many information technology tools were implemented in order to achieve the whole process.
These were mainly organisational learning system (OLS), Broadbase and document
management system. Further drop-down boxes were able to capture feedbacks from the
employees in order to improve the knowledge management system.
Strategy:
As the organisation was well aware of the cultural issues they implemented strategies to
encourage people to contribute and participate in the new technology.
$ Creative thinking is promoted allowing employees to do interesting things and also
achieving efficiency through knowledge sharing.
$ Emphasis was made on the faster processing of data. There was proper communication
between the management and employees regarding the need of the new system.
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$ Finally the pressure was to make the technology more easy and simple, so that the
employees did not feel the extra burden of work on them.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
�Cultural concerns are also an issue. Chevron is trying to entice workers to participate who
aren't that enthusiastic about participating�, said Preckett. (Chevron case study)
Cultural issues were present within the organisation, but due to the implementation of the
knowledge management solution, the organisation was able to change the organisational
culture to some extent.
Reduction in stress was seen after the implementation. �The fact is finding and applying new
knowledge makes everyone's work more interesting and more challenging�. (Chevron case
study)
Timely communication of new developments helped in motivating the employees to use the
tool to their best and thus employees were finding their work more challenging and interesting.
4.2.3 Discussion
It was observed in the case study that knowledge management was taken as a big element for
success by Chevron, as the rewards were commendable. Knowledge Management was able to
achieve the benefits from reducing the overall costs to employees� safety performance and
satisfaction. The barriers faced by the organisation, employee resistance to change in their work
environment, were well accepted. But Chevron was able to overcome all the barriers and
challenges faced. Employees who initially oppose to the change were now having job
fulfilment feelings. Further they realised that the work was more challenging and interesting
than what it was before. The combination of technology and strategy was able to achieve the
goals which were stated by the organisation. Though, Information Technology was given the
major credit in making sharing of information possible in an easy and accessible form.
Further a commendable point within the case was that, OLS was actually not started by
Chevron itself, but it came as a best practices survey, thereby showing how best practices
between various organisations improves the working environment, �The OLS is not exclusive
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to Chevron; it was developed by Oil & Gas Consultants International for Amoco (now BP
Amoco, London). It came to Chevron via a best-practices survey.�
4.3 Case Study Analysis of Ernst and Young (www.ey.com)
4.3.1 Introduction of Ernst and Young
The members of the Ernst & Young (E&Y), global organization help companies in businesses
across all industries�from emerging growth companies to global powerhouses�deal with a
broad range of business issues. Its 103,000 people in more than 140 countries around the globe
pursue the highest levels of integrity, quality and professionalism to provide clients with a
broad array of services relating to audit and risk-related services, tax, and transactions. Ernst &
Young�s integrity and professional competence are the cornerstones of its global organization.
The organisation work hard to earn and maintain clients� trust and confidence. Ernst & Young
provides a range of services, including accounting and auditing, tax reporting and operations,
tax advisory, business risk services, technology and security risk services, transaction advisory,
and human capital services. Globally, Ernst & Young focuses on seven major industry groups:
financial services; technology, communications and entertainment; energy, chemicals and
utilities; industrial products; retailing and consumer products; health sciences; and real estate,
hospitality and construction.
Ernst & Young would not be such a successful organization without great people and strong
teamwork. It provides its people with solid career growth opportunities and a people-oriented
workplace environment. The philosophy of organisation is quite simply � that its people
achieve their best, so do the clients, and also the business prospers.
4.3.2 Analysis of Ernst and Young Knowledge Management Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
To implement knowledge management for improving management consulting process, the
following key areas were initially identified within the organisation.
$ The aim of the knowledge process was to capture and leverage the knowledge from the
consulting managements, and contributing the same to E&Y�s stock of knowledge.
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$ Knowledge from the employees was needed in order to speed up the process of
providing consulting solutions.
$ Finally Ernst and Young was determined to solve issues related not only to consulting
but also to audit, tax as well as to address issues in the entire E&Y organisation
globally.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
It was observed from the case study that Ernst and Young implemented the following
techniques to capture the tacit knowledge of its employees and transfer it throughout the
organisation.
$ The Centre of Business knowledge (CBK) developed the tools which included; a
library or an online database which stored all the information, a call centre for
answering consultant requests and a database for consultant skills.
$ CBK also had the responsibility of developing knowledge networks within the
consulting practice. These were 22 networks which were based on particular topics like
energy, technology, etc. Each network usually had online discussions and occasionally
met face-to-face. The network also had a document database in Lotus Notes.
$ Another responsibility of the centre was to maintain a skill possessed database. This
database stored information on consultants and experts profiles.
$ A tool called PeopleSoft was also developed for competencies of consultants. The
objective of this database was evaluating and describing competencies of consultants.
It was also able to provide combinations of requisite skills required to develop a
consulting team for each client team to succeed.
$ Lotus Notes was selected as the primary technological platform for capturing and
disseminating internal knowledge.
$ Also CBK aimed on developing a Knowledge Architecture and Taxonomy. The case
study states that �The purpose of this architecture was to focus knowledge acquisition
and retrieval efforts. The architecture would also be used by consultants and
knowledge facilitators in searching databases and document files. Key areas of E&Y
knowledge would be represented in "Power Packs", a structured and filtered set of
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online materials including qualifications, sales presentations, proposal templates, and
answers to frequently-encountered issues�.
$ Another technology implemented was Accelerated Solutions Environment (ASE); its
key focus was to put knowledge, models, tools and techniques in one environment
which could be easily accessed. �ASE was how E&Y consultants would deliver many
of their services in the future, and had already been used on several client
engagements�.(E&Y Case study)
Feature 3: Benefits to the company as well as employees
The case was not able to identify the benefits properly. However, it was well stated in the case
that, �Knowledge management had apparently been successful in consulting�. The only
benefits stated in the case were the advantages of implementing Accelerated Solutions
Environment (ASE) within the organisation. This tool was able to provide a central database
for all the tools and procedures and also reduced the normal time of solving an issue, as stated
in the case �In one situation, two banks had merged and had to decide what information
systems would be used in the combined bank. A fact base and approaches for using it were put
into the ASE automated toolkit, and used in a 3 day event with the client. A more traditional
approach might have required several months.�
Feature 4: Barriers/Challenges faced by the organisation while implementing KMS
Ernst and Young were able to achieve considerable progress in implementing knowledge
management initiative but challenges were still there:
$ Embedding knowledge in technology was a challenge and a continual process. Further
it was difficult to use technology to support some types of consulting knowledge �
�e.g., building relationships with senior client executives�which were tacit in nature
and difficult to extract from the minds of practitioners.� (E&Y Case study)
$ Organisational Culture issues where a concern whilst implementing knowledge
management. The implementation of KM was supported by the senior management but
consulting practitioners of the organisation still worked traditionally, based on
pragmatism and experience rather than a conceptual orientation. They found the new
technology more difficult to pursue. One key question among E&Y knowledge
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managers was on how �rapidly to proceed in trying to change the receptiveness to a
strong knowledge orientation�.
$ Another concern was whether the organisation was experiencing any progress
subsequent to the adoption of knowledge management and whether the resources
available were justified or not. As stated, �It assessed, the number of telephone and
computer-based requests for its services, and tried to track sales or engagement wins
in which knowledge use had been a critical factor. For each of the firm�s knowledge
networks a "dashboard" was created assessing such topics...still knowledge managers
felt that it was impossible to fully justify knowledge management investments and that
some level of faith was required�. (E&Y Case study)
Feature 5: What was the methodology applied in the organisation: Strategy and Information Technology.
In the Information Technology methodology Lotus Notes was selected as the primary
technological platform for disseminating knowledge. More applications like the web, the skill
database and a few others were added. Knowledge architecture was developed in order to
disseminate knowledge. A tool for competency evaluation was developed for the supervisors.
A Knowledge network of 22 networks was developed for all key units. Finally Ernst and
Young wanted consultants to focus on the content rather than the applications, thus they were
in the process of developing a tool which could support knowledge management. Also the need
of technology was generated due to the following; �E&Y knowledge managers believed that
knowledge primarily resided in people, not technology. However, the scope and geographical
distribution of the E&Y knowledge base and its users meant that technology had to be used as
an enabler wherever possible�.
The Strategies adopted for changing the culture within the organisation included embedding
knowledge orientation into the firm�s performance evaluation process; consultants were now
evaluated on their contributions towards knowledge and its use. Strategies not only were
incorporated to encourage the employees to use the tools of knowledge management; but also
were developed in order to understand where knowledge is required most, its issues and finally
developing a network in order to bring all the experts together, who had either expertise or
strong interests in knowledge management issues. These strategies address knowledge
management issues that cut across the management consulting. A committee was developed to
49
oversee the processes and technologies that were related to the knowledge. They also managed
the above strategies by implementing conferences, creating a multi-client program and also
forming a �Knowledge Management Network�.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
The case was unable to highlight any information related to the organisational culture or
behaviour after implementing the knowledge management techniques.
4.3.3. Discussion
The case was able to provide required information about how knowledge management was
practiced in E&Y. Key issues such as management concerns were identified through various
committees and conferences. The knowledge management network helped in getting views
from the experts of KM. The process of capturing the knowledge in the organisation was very
systematic. Technology was used as a virtual tool to minimise distance between the offices
located in various geographic locations. The case was unable to evaluate any information
regarding the changes in the organisation culture or behaviour but was able to identify the
barriers and challenges faced and to be faced within the organisation. Also, the case evaluated
is when knowledge management initiative was in its early phase thus the need for more efforts
is required in order to over-come the cultural and technological issues. Finally as knowledge
management was a success in the management consulting unit, E&Y was keen to implement
the same in other services, audit and tax, of the organisation.
4.4 Case Study Analysis of Gelco (www.gelcoexpense.com)
4.4.1 Introduction to Gelco
Founded in 1894, Gelco is the recognized leader in expense management and has been
providing automated expense management and payment solutions for global organizations.
Now after 100 years Gelco Information Network has been helping organizations manage their
travel expenditures for greater profitability. Today, Gelco�s Expense Management Group helps
more than 1200 corporations and public sector organizations � including over 150 federal
agencies � realize T&E cost savings by enforcing policy compliance, gaining processing
50
efficiencies, and capturing comprehensive travel data for enhanced supplier negotiations and
spending analysis.
Gelco was able to achieve a great deal of success with their original KM solution � a solution
developed by Molloy Group; however, as their customer service needs exceeded the
functionality in their legacy software, they decided to look for an innovative solution. In
addition to more robust KM functionality, the company also needed a self-help solution so their
customers could find answers on their own via a new 24x7 self-service Web site. Thus the
requirement of a knowledge management solution was generated. The following case explores
how the tacit knowledge of Gelco was identified and further was accessed by the employees to
achieve the desired goals.
4.4.2 Analysis of Gelco Knowledge Management Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
Gelco needed a self-help and robust solution for the customers to easily locate answers on web-
based technology. Thus a database having a collection of frequently asked question by the
customers was required in order to receive greater customer satisfaction.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
After understanding the requirements, Gelco implemented the following techniques to make
the tacit knowledge available to the rest of the employees and customers:
$ Gelco decided on a solution which was robust in nature and had a user-friendly self-
service component. The company implemented ServiceWare�s eService Suite, because
the organization had already faced a successful experience using the same software for
its initial knowledge base.
$ Another tool which was implemented was the Cognitive Processor search technology,
which learns with each interaction and prioritizes answers according to the similar
support issue in the past. Thus the user is able to trace his queries again in the future.
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Feature 3: Benefits to the company as well as employees
Implementing the above solutions proved to be beneficial to both the organisation and the
employees. As said by the Director, ��solutions enable us to eliminate the need to recreate the
wheel every time we have a new product release. Our knowledge base is the cornerstone of our
operation and it enables our customers to receive the best service, no matter who they speak
with in our call centre�. Other benefits were
$ Gelco experienced improvements in its agent�s productivity and efficiency. �Agents
are now able to get up to speed on new product knowledge in less than one week�.
$ The greatest benefit Gelco achieved was the high rate in its customer satisfaction,
�98% customer satisfaction�. Further the number of customer calls reduced
drastically, 17% decrease; and the company�s customer�s sessions are also increasing
rapidly after the implementation of the self-service web. Thus making the incoming
interactions by the customers to 43% of the Web-based technology.
$ The tool enables the customers to find the right answers faster and in a more efficient
manner. �The dynamic FAQs proved to be worthwhile for Gelco�s self-service users.
With quick access to the most common questions, customers are able to find critical
information without initiating a knowledge base search�.(Gelco Case study)
$ Also the new system helped in updating issues related to any new technology which is
out in the market. �This is done prior to the customer plans to call and ask about the
product�. (Gelco Case study)
$ Finally the system was able to reduce staff for its call centre staffing requirements.
Feature 4: Barriers/Challenges faced by the organisation while implementing KMS
As evaluated in the case the following challenges were faced by Gelco during the
implementation of the KM solution.
$ Gelco needed to overcome two internal issues � knowledge possessiveness and
knowledge creation. Gelco�s agents were concerned that their know-how knowledge
would be taken away if they had to share it with the team. As said in the case by the
Call Centre Director, �We had to overcome the job security mentality hurdle that we
were facing when we began evaluating a new knowledge management system� (Gelco
Case study).
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$ Also Gelco had to capture all the knowledge which was residing inside the employees,
��had a lot of disparate knowledge sources in addition to the tacit knowledge that was
held in individual agents� heads� (Gelco Case study). Therefore for capturing this
knowledge Gelco had to extract all the possible sources of knowledge residing outside
of the formal knowledge base.
$ Gelco was also having problems in capturing the knowledge which was stored in
different sources of the organisation which was actually residing outside the formal
knowledge base.
Feature 5: What was the methodology applied in the organisation: Strategy and Information Technology.
The case study was not able to explore much information on this feature. Though it
implemented both the methodologies however it is difficult to pinpoint the more important one.
In the technology terms, implementation of a KM System � ServiceWare and Cognitive
Processor search technology was done. This helped the organisation as well as the employees
in solving issues regarding customer satisfaction and increase in the financial returns.
In the Strategy methodology the organisation induced incentives to initiate the employees to
share the knowledge. As said, �These processes enabled our agents to open their minds about
sharing knowledge and adding existing information to the knowledge base� (Gelco Case
study). Also guidelines and expectations were established which required all new knowledge to
be submitted within a 24hour turn around time. Further the idea of making the agents the
owners of the organisation also proved to be beneficial.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
The Organisational culture and the behaviour were influenced by the implementation of KM.
The process enabled the agents of Gelco to share their knowledge and also adding existing
information to the knowledge base. The agents were given the authority to handle the tool for
adding relevant and new information; maintaining the consistency of the knowledge fulfilling
the requirements of quality assurance process. This increased the sense of responsibility
amongst the agents. The organisational policy implemented by the director demanded that the
all new knowledge was submitted within the 24-hour period of its production. This also added
53
to the responsibility factor. �Now that our agents have taken ownership of the knowledge base,
we are able to utilize one person to administer the solution, but also our call tracking system,
phone system, intranet � all tools within the call center � without feeling overloaded,�
continued Carlson (Gelco Case study). Thus a new cultural change was seen within the
organisation.
4.4.3 Discussion
The case study was able to provide information on how the tacit knowledge was captured
within the organisation. The major internal problems faced by Gelco, regarding knowledge
possessiveness and knowledge creation were well dealt with after the implementation of KM.
The case study was clearly able to explain the key benefits of implementing KM solution
within the organisation. Also, Gelco experienced many barriers and challenges before
implementing the solution. However, it was able to overcome these by using the right strategies
at the right time. The strategies were able to not only gain the confidence among the agents and
but also motivate them to use the knowledge base.
4.5 Case Study Analysis of Infosys (www.infosys.co.uk)
4.5.1 Introduction to Infosys
Infosys Technologies Ltd. provides consulting and IT services to clients globally � as partners
to conceptualize and realize technology driven business transformation initiatives. With over
27,000 employees worldwide, it uses a low-risk Global Delivery Model (GDM) to accelerate
schedules with a high degree of time and cost predictability. The services address specific
needs of enterprise IT programs, or communications and Internet technology product
development, and also engineering product design and data management. Clients benefit from
seamless coordination across strategy, implementation, and management of their technology
programs; and from their expertise in focused industries, strong quality orientation, cross-
technology expertise, and distributed project management capabilities. At Infosys, innovation
with speed and imagination is emphasized in whatever they do � for clients, employees,
investors, and for the society at large.
Infoscions are a friendly bunch with a driving ambition to be the best in whatever they do.
They are highly motivated with a zest for life that is reflected in all they do. Most of all, they
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make Infosys a fun place to work for themselves and for their colleagues. People management
practices to create this environment, distinguishing them among other technology companies,
enabling Infoscions to excel and innovate in what they do for clients and in what they stand for
as a company.
4.5.2 Analysis of Infosys Knowledge Management Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
The case was able to identify two areas for Infosys to implement knowledge management. The
first was, as the company entered the big market, the need of efficient and effective
consolidation of knowledge from the experts was required. This knowledge could then be used
for innovations and best practices. Second was, as the e-business was coming up with its
premium on speed, alertness and competitiveness, knowledge management was further
required.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
Many initiatives were taken by Infosys to capture the tacit knowledge and share it with other
employees.
$ A database Body of Knowledge (BoK) was maintained by the company, where all the
experiential learnings of past projects are listed.
$ A knowledge directory was established where the links to expert profile were available
within the organisation. It is known as, People-knowledge Map, and provides an
intranet-based interface through which people can register and locate experts.
$ Another Intranet, Sparsh, acts as a central information portal. The intranet has access to
official policies, documentation, press realises and articles. This central portal also
holds other key features as discussion groups, chat rooms, user reviews and ratings
regarding the content, news snippets and many more. The portal also allows navigation
to other websites maintained by competency groups and business units.
$ The company�s e-mail system supports bulletin boards for official announcements as
well as technical queries.
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$ A web-based virtual classroom is also developed; it allows access to various courses
whose content has been developed internally. Further this system also incorporates a
discussion forum where participants can post their comments and feedbacks.
$ Best practices, spread through seminars and sessions, also hold a place in capturing
tacit knowledge and converting it to explicit. Further performance appraisal and peer
recognition also motivates employees to transfer their internal knowledge.
$ Another system, Odyssey, provides links to websites maintained by individual projects.
It is also a marketing intranet which provides information and reusable apparatus used
in other projects.
Feature 3: Benefits to the company as well as employees The case study was unable to provide much information regarding the benefits accrued by the
organisation.
Feature 4: Barriers/Challenges faced by the organisation while implementing KMS The case study was unable to provide much information regarding the barriers and challenges
faced by the organisation.
Feature 5: What was the methodology applied in the organisation: Strategy and Information Technology.
As stated in the case, �KM strategy revolves around the key constituents: People, Process and
Technology�. Thus strategies were implemented for a proper and smooth working of the
knowledge management initiatives.
For the information technology methodology Infosys, linked all the other intranets to the main
central intranet. This facilitated the ease of submitting and retrieving the information from the
portal. Thus employees became keener on accessing the information as the portal is user
friendly. Further the importance is given on the content and not on the format of the
information saving time on formatting the information. Also implementing various tools with
easy usability factor enabled the user to use the technology and contribute their knowledge
without overburdening the employee with work.
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For strategy, Infosys has given the ownership of the content to the groups and individuals. This
increased the responsibility and quality assurance of the content that belongs to the owner
itself.
To promote KM initiative internally, performance incentives and peer recognition are deployed
in the system. Knowledge Currency Units concepts were provided to employees to share their
knowledge and experiences. Further these accumulated currencies were used to give bigger
cash rewards.
Internal seminars were also held, which focused mainly on knowledge management and its
advantages. This was focused on knowledge sharing issues thereby motivating people to share
knowledge.
A committee was also developed to initiate the process, for the proper working and also for the
up to date knowledge in the portals.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour The case is unable to provide enough information regarding the change in the organisational
culture or behaviour. But as discussed, by giving ownership for the content of the knowledge to
the employees, their responsibility towards the organisation was increased. Thus the
relationship between the management and employees improved.
4.5.3 Discussion
The aforesaid findings evaluated that Infosys was able to capture the required knowledge. It
was able to successfully incorporate the strategies for motivating employees in sharing the
knowledge. Although the case was unable to provide much details on benefits, barriers and
changes in organisational culture. However it was able to provide enough information about
how to motivate employees and how to capture tacit knowledge. Infosys�s aim was to enable
the power of knowledge among its employees for innovations and it was able to achieve the
goals.
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4.6 Case Study Analysis of Schlumberger (http://www.slb.com/aboutus/)
4.6.1 Introduction of Schlumberger
Schlumberger Limited is the leading oilfield services company supplying technology, project
management and information solutions that optimize performance for customers working in the
international oil and gas industry. The company comprises two primary business segments -
Schlumberger Oilfield Services and WesternGeco. The company is committed to excellence in
technical innovation, teamwork and creating value for our customers, our shareholders and our
employees.
The businesses are managed through a global network of regions. The approach brings together
focused teams to meet local needs, deploy critical technology and provide customized
solutions. Employees are committed to working together within the organization and with the
customers to create the highest level of added value. Knowledge communities and special
interest groups enable teamwork and knowledge sharing unencumbered by geographic
boundaries. With 19 research and engineering facilities worldwide, the strong emphasis is on
developing innovative technology that adds value for our customers.
Schlumberger Information Solutions (SIS) is an operating unit of Schlumberger. SIS provides
consulting, software, information management and IT infrastructure services to support the
core operational processes of the oil and gas industry. SIS enables oil and gas companies to
drive their business performance and realize the potential of the digital oilfield.
4.6.2 Analysis of Schlumberger Knowledge Management Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
Schlumberger Oilfield Services Company supply a wide range of products and services from
formation evaluation through directional drilling, well cementing and stimulation, well
completions and productivity. For a proper management of the above, it is essential to find
knowledge and good practices that are used in the field, ensuring that this information is
entered into the knowledge base flawless. The key areas as identified by the company are:
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$ Oilfield techniques and technology change rapidly as the industry continues to innovate. To
keep pace with these advances, training and best practices management must be established
within the organization to improve efficiency and reduce operational risk.
$ As Schlumberger is spread all across the world, technology is the only mode of
communication between all the units. Communication between the centers at many times
could be slow, expensive and not feasible thus a sharing experience tool is required where
employees can discuss the challenging operating conditions in their work in order to
progress and increase the drilling efficiency.
$ To capture, share and apply expertise knowledge worldwide it is required to continue
supply best possible solutions and practices consistently in such a dynamic environment.
Thus a knowledge solution is required where all the best solutions are stored for future
access.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
Schlumberger started a KM pilot to build a knowledge sharing environment. The various
techniques and tools were used in order to best utilise the internal knowledge of the
employees�.
The initial phase was to create a committee with the purpose to organise the information in a
hierarchical structure for easier accessibility and sharing. Inputs for the same was taken from
the field community and further entered into the technology. The various techniques
incorporated were;
$ A Global intranet � SINet, already working in the system provided secure and
authenticated connectivity between most of the company�s sites and offices
$ A corporate knowledge hub was developed where information can be easily published and
disseminated and whose primary aim was to provide the best quality service.
$ Also capturing of tacit knowledge from the Bulletin Boards within the organization
provided as a good tool in identifying the key areas, as said in the case �Mining of bulletin
boards provided one of many rich resources�.
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Feature 3: Benefits to the company as well as employees
It was evaluated from the case study that the organisation and the employees were well
benefited from the implementation of the knowledge management.
The Knowledge Management tools improved the ability of its people to provide the best quality
service towards the knowledge. Also for the employees the new culture came as a bonus. The
case study states that, �For workers, a knowledge-sharing culture translates into reduced job
preparation time, less stress and better performance, leading to recognition by our customers.
These are powerful incentives�.
Further the Dramatic Results that happened in the organization was reduction in the drilling
time providing the maximum returns. One example of this dramatic change as given in the case
study is, �A high-risk, deepwater exploration project was successfully drilled in the Gulf of
Mexico by applying the learning from previous wells and integrating it efficiently in the drilling
process. Drilling time was reduced by 39% compared to the goal of 30% and the overall
savings were of the order of USD $14.3 million�.
Feature 4: Barriers/Challenges faced by the organisation while implementing KMS
Schlumberger experienced some barriers and challenges while implementing knowledge
management initiatives. As said in the case study, �people are both the key to successful KM
and its most challenging element�. The success of KM depends on motivating people to share
their knowledge and reusing other employees� knowledge to get the best from the daily
operations. Thus creating this knowledge sharing culture among the personnel was a barrier for
the company.
Another challenge faced was looking and finding the appropriate expert for the knowledge
which could be used as a best practices solution. As said in the case study �Getting good input
from the field community�, required a good amount of time.
Phase 2 of the implementation process also required to identify �the factors required to
identifying the factors that motivate individuals to share, and rewarding the behaviors that
support the culture� (Schlumberger case study). Identifying these factors was in itself a
challenge.
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Feature 5: What was the methodology applied in the organisation: Strategy and Information Technology.
For KM to run successfully within the organisation, Schlumberger applied both the
methodologies in a very systematic form. The two phases of implementation concentrated both
on the technology as well as the strategy to develop a knowledge sharing environment for the
employees. The first phase concentrated on getting the best knowledge from the employees and
implementing within the technology in the best possible manner which could be easily accessed
by any employee from any where. The second phase concentrated on the strategy, where
various incentives were identified to motivate individuals to share.
Technology:
In the technology methodology, Schlumberger incorporated a global intranet called SINet,
providing a secure connectivity between the offices. Further a software tool was offered by the
knowledge hub for sharing and accessing information. As the tools were easy to use and
manage technology was well appreciated.
Strategy:
The Phase two of the implementation was totally concentrated in identifying the factors that
�motivate individuals to share, and rewarding the behaviours that support the culture�
(Schlumberger case study). Schlumberger already believes that for a successful KM, employees
of the organisation need to be supported and should be given time to time recognition and
rewards.
Recognition by management as well as from the peer community is much valued. The case
study discusses this as, �Recognition is now a key competency in the performance appraisal
form and all contributors are recognized publicly on the Knowledge Hub and a quarterly non-
monetary award is given in each of the four geographic operating areas�.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
Implementation of knowledge management created some affects in the organisational culture
and individual behaviour. The affect was seen as a positive remark. An environment was
created where field experts systematically share their experience and incorporate the
knowledge of their peers as a normal part of the everyday job. As an individual behaviour,
recognition from the management, peers and customers motivated them further. Thus the
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employees were able to share more and more of information. Due to this reason now, �sharing
is a key competency on the Schlumberger performance appraisal form� (Schlumberger case
study).
Also for the employees the new culture came as a bonus. The case says that, �For workers, a
knowledge-sharing culture translates into reduced job preparation time, less stress and better
performance, leading to recognition by our customers. These are powerful incentives�.
4.6.3 Discussion
The case study was able to provide information on how the tacit knowledge of the organization
was identified, captured and provided benefits. Schlumberger clearly identified their audiences
and their requirements and catered to their needs specifically offering them a platform for
knowledge creation and sharing environment. A systematic approach to implement KM was
achieved and also proved to be successful in terms of both technology and culture of the
company. The employees of Schlumberger realized the benefits of the new tool. By adopting
the incentives recognized during the phase, the company was able to accomplish the goals.
4.7 Case Study Analysis of Sequent (www.sequent.com or www.ibm.com)
4.7.1 Introduction to Sequent
Sequent Corporation was in operation for over 15 years as a developer and provider of high-
end multi-processor systems designed for open applications. Centred in Beaverton, Oregon,
Sequent has a sales force that covers the globe. The majority of their 3000 plus workforce
works mainly in the field, where they are up against some significant competitors, such as
DEC, Sun, and Hewlett-Packard. Sequent was a leader in large-scale NT and heterogeneous
NT/UNIX multiprocessor system deployments worldwide. Sequent was leading in Windows
NT and UNIX interoperability. Many of the world's largest e-business-related applications,
databases, data warehouses, application environments, and business intelligence applications
run on Sequent servers often running Oracle as software. Sequent also has a solutions business,
adding software and services to its hardware products. Sequent sells into several markets,
including customer relationship management, call centres, decision support/data warehousing,
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and enterprise resource planning. The company has a related professional services and
customer services business.
But in 1999, Sequent merged with IBM to form a subsidiary of IBM. IBM is now selling
Sequent's product line worldwide and has integrated Sequent technologies into IBM products.
IBM and Sequent became technology partners a few years ago when the two companies were
founding members of �Project Monterey�.
4.7.2 Analysis of Sequent/ IBM Knowledge Management
Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
Sequent, before merging with IBM, was competing with the giants of the market. In order to
maintain its complex systems it was required to leverage knowledge as a strategic driver. Thus
there was a need to improve the communication between its staff in the sales and the project
developers.
It was also evaluated that initial information between clients and employees is very sensitive
and it is not an easy task to retrieve it. A system was required to solve the issue and enable the
field personnel to extract the relevant data as and when required.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
A knowledge management solution was implemented to solve the above stated problem. A
system was required which could store all the frequently asked questions in a database on a
platform independent tool, and could also be accessed from anywhere in the world.
$ Sequent implemented list server technology originally which helped in enabling field
personnel to pull the required information as and when it was required from anywhere
they were situated i.e. around the world. But the system was having some
disadvantages. A new system was developed when web became a visible tool in the
market.
$ The other system which was developed was the Sequent Corporate Electronic Library
(SCEL). It was an online library where all the relevant data was stored; it involved a
shared file system which was originally known as �Knowledge Garden�. This system
also failed in the beginning but in Late 1995, SCEL was able to take over the �sharing
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of knowledge� concept. It is now regarded as one of the best portal for capturing,
storing and disseminating knowledge to all the organisations spread all over the world.
Feature 3: Benefits to the company as well as employees
Successful implementation of SCEL portal brought many improvements and benefits within the
organisation.
$ Incorporating SCEL helped employees in accessing not only client particulars, but also
all the relevant data on issues like best practices or locating a particular competency
within the company to get help addressing a specific problem. As stated in the case
study the employees� say that �if SCEL were disconnected, that they would "go postal"
without it.�
$ SCEL is not providing any standard format; each user of the technology can submit
their work in whichever format it resides in. Thus the easy format helps the employee
by not providing with extra burden and it�s also not very time consuming.
$ Feedbacks for the SCEL portal have shown improvement in areas such as marketing
and project delivery. �The ability of new sales personnel to come on line quickly and
effectively is significantly greater than pre-SCEL days.�
Feature 4: Barriers/Challenges faced by the organisation while implementing KMS
The system which was implemented was not flawless, most of the problems were mainly the
people issues rather than to the technology issues. The barriers were
$ Sequent faced a challenge in keeping the system organized, consistent, and up-to-date.
The case describes that the authors of the information were reluctant in keeping the
content current, �there is sometimes a reluctance to author, and to keep content
current (Sequent Case study).�
$ Mr. Carney feels that this may, to some degree, is the perception that to do so requires
"additional steps", rather than the process being seen as "part of how I do my job"
(Sequent Case study). The above example implements that employees were not taking
KM as a part of their job, rather they took it as an overburden work given by the top
management. Thus they were unable to provide the needed information and time
required for the system.
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$ Even after communicating to the employees that information/content is more important
than the appearance of the content, they were making it more appearance oriented
document. Thereby creating problems when another user�s searched for the data. �This
sometimes makes retrieval and relevance problematic, leading to grumbles that there
is "too much stuff" and "who organized this stuff?� (Sequent Case study).
$ Further the issue to make SCEL open to the outsiders without giving them access to the
crucial information was a concern.
$ Sequent also faced problems in finding the right person who can provide the right
information as well as making the right information reachable to the right and
concerned people.
Feature 5: What was the methodology applied in the organisation: Strategy and Information Technology.
The organisation applied information technology as its main methodology. Sequent provided
easy and compatible tools, for the information to be easily accessed from anywhere in the
world. Though the initial implementation of both the technologies failed but with better
parameters and easy accessibility of the information, the technology was well appreciated and
accepted by the employees.
For the strategy methodology Sequent was able to create a template which helped the user to
see the process more organically, and for experienced users to act as models themselves. Most
employees become users after seeing a current user employ SCEL to good effect. For solving
issues on �bringing the information and people together�, Sequent tried implementing a �push�
technology. This strategy was to push employees to participate and provide guide to the
relevant employee, with the information they required.
Feature 6: To what extend capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
According to the case study knowledge management initiative was unable to affect any cultural
issues within the organisation. Sequent being a technology company shared the knowledge
across all the functional disciplines. Thus the case study is unable to provide any clear picture
for the same.
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4.7.3 Discussion
It is clear from the evaluation that Sequent has benefited from the knowledge management
solution and its implementation. The core team which had initiated the process sees that this is
a long- term process and is trying to improve the level of information accessed by the
employees. The information technology which was implemented initially faced some problems
due to the early approach taken by Sequent. But Sequent realised the importance and tried to
improve the drawbacks and weaknesses from the early tools. The case study was unable to
discuss issues related to the organisational culture in depth. Further the organisation faced
many barriers from the employees during the implementation phase of the tool. Issues such as;
�additional steps of work�, �not understanding the usage of the tool�, �problems in retrieving
the right information� and many more. But Sequent was able to face the challenges brought
forward and tried showing the employees the benefit of the technology. Finally the case
discusses that incorporating �right technology at the right time helps a lot in sharing and
capturing information�.
4.8 Case Study Analysis of Siemens (http://www.siemens.co.uk)
4.8.1 Introduction to Siemens Siemens is behind nearly all of the technology and services in everybody�s daily lives. Its
products and systems range from traffic lights and turbine spares to the superconducting
magnets used in medical scanners, the servers at the heart of telecommunication networks and
the drives which are behind many of the UK�s manufacturing plants. More than 40 per cent of
the UK turnover comes from the provision of services - for example, managing Barclays' back-
office processes, BP's UK telecommunications infrastructure and the running of several major
hospital PFI projects. Siemens technological achievements - from electric street lighting to
domestic washing machines - help to make people�s lives easier, safer and more
comfortable. Its knowledge and solutions help create a better world. Siemens believe that its
employees are the key to the company's success and that they enable the organisation to meet
the challenges of the business environment. That is why Siemens is committed to safeguard its
employee�s future through training and continued education as well as ensuring that the
environments in which they work are safe and risk-free.
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The need of knowledge management within Siemens was recognised two to three years ago.
Being an international company, the need of sharing knowledge and information was far more
needed.
4.8.2 Analysis of Siemens Knowledge Management
Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
For the knowledge management initiative in Siemens the following areas were identified where
the tacit knowledge from employees was required;
$ Due to the new entrants coming in the telecommunication market and competing
prices for the services required new innovations to sustain in this competitive
world were needed.
$ Clients and customers are not looking for a product but rather for more complex
solutions. The customers now are thinking a step ahead, thus to cope up with the
customers thinking, one needs to know what is happening around the world in
order to give the best solution to its clients.
$ As the focus has shifted towards the business knowledge intensity, the sales
personnel of the organisation need more knowledge on both; the aspects of
individual components of solutions and the integration of these components. As
stated in the case, �Once we start negotiations about a new project with the
customer, we have to immediately identify internal and external qualified people to
build and operate these new businesses jointly with the customers�We have to get
used to integrating internal and external know-how�(Siemens case study). This
problem also required a solution.
$ Further now the individual sales person has to act as a consultant, thus knowledge
regarding, finance, business analysis and network planning was required. This
could only be possible if tacit knowledge of the experts is available to the sales
person.
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Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
As this case only focuses on the development of a web-based technology, called ShareNet, the
tacit knowledge of the employees who were situated globally, was converted using this
technology. Further another form of converting the tacit knowledge was by motivation and
reward system given to the contributor as well as the user of the knowledge.
Feature 3: Benefits to the company as well as employees
Incorporating ShareNet for the global market, Siemens was able to receive many benefits;
$ ShareNet was able to provide information regarding similar customer solutions
accompanied with the sale arguments, descriptions of successful projects,
presentations, relevant business plans as well as details of employees who could
help in the technical queries.
$ It was able to make each sales person�s learning experiences accessible to the
entire sales personnel, thereby facilitating in saving time and money which further
leads to increased revenue with higher profit margins.
$ ShareNet function as a business application, hence was easily merged with the
employee�s ways of solving customer problems.
$ ShareNet was able to cover not only the tacit knowledge of various businesses but
also was storing information regarding the explicit knowledge. Thus providing a
�field experience� to the employees.
$ ShareNet was able to provide information which was needed urgently, under the
group named as �Urgent Requests�. Urgent request was developed keeping in mind
where employees need information which requires an urgent reply. Thus able to
receive urgent reply without even searching the entire database for the information.
$ ShareNet was able to reduce costs by re-using knowledge on how to simplify
processes. And increase in revenues was also seen by the organisation.
$ Finally, ShareNet helped in understanding the customer needs, by recognising
important trends and developments worldwide.
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Feature 4: Barriers/Challenges faced by the organisation while implementing KMS
In order to make knowledge freely available to the employees, Siemens was obstructed by the
potential barriers and challenges.
$ The main barrier, Siemens faced was concerning knowledge of sales personnel. Sales
knowledge in general is difficult to share and is bound to a single person. It cannot be
shared with others unless the employee is willing to share.
$ Further constraint was that knowledge sharing was regarded as a time-consuming and
tedious exercise. At times employees used to wonder how they will be benefited from
this solution.
$ Siemens employees were also reluctant to adopt knowledge from other employees.
$ Organisational culture was also a barrier during the implementation process. It is said
in the case, �A culture of openness, mutual respect and the absence of ambiguity are
fundamental for fostering knowledge sharing�. And this culture was missing in
Siemens.
$ The other barrier was regarding the strong hierarchy nature in the organisation, which
was not allowing employees to take the authority of producing new knowledge.
Feature 5: What was the methodology applied in the organisation: Strategy and Information Technology
For the successful execution of Knowledge Management, a proper balance between
information technology and strategy is needed. For information technology Siemens
implemented a web based technology, user friendly tool called ShareNet and in the case of
motivating employees to use this technology Siemens incorporated many strategies. The
following strategies were evaluated during the analysis of the case study.
Siemens formed a committee in order to understand the employees� ways of doing business and
handling the problems they encountered. This committee was involved in developing strategic
plans of ShareNet worldwide. The size of the committee was deliberated kept small because it
enabled the members to develop consistent decision making consistency and react quickly to
the suggestions. Siemens also motivated people to integrate suggestions from different origins
and make a successful project out of it. As the case discusses, �Sometimes, knowledge which
has been brought from the external sources, raises defence reactions. People often do not use it
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for the simple and stupid reason that they did not invent it.� Thus Siemens developed an
interactive approach towards the knowledge sharing approach.
Further, a motivation and reward system was also developed in order to remove the fears and
anxieties which are present during knowledge sharing. Siemens incorporated schemes like
frequent flier mile systems and giving �shares� of ShareNet to the employees who were
contributing as well as using the knowledge from the system.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
The case study was able to explore the following information regarding the feature.
$ Employees of Siemens were able to reduce their fears and anxieties of employees to
share tacit knowledge among themselves.
$ The sharing of knowledge had also incorporated a trust factor between the worldwide
employees.
$ A best practice environment was developed within the organisation.
4.8.3 Discussion
The case was able to demonstrate how Siemens was able to incorporate knowledge
Management within the organisation. Siemens was able to form a right balance between
information technology as well as organisation culture by implementing various strategies for
motivating employees. The benefits received from ShareNet were remarkable and
commendable. Though the case was not able to provide with the information related to the
changes in organisation culture after the implementation but it was well inferred that the
barriers and challenges faced by the organisation were easily managed. The development of the
committee proved to be quite advantageous to the organisation as issues were scanned more
properly and also relevant suggestions were also provided as quickly as possible. Lastly the
case was able to provide a clear outlook that even being a global company, it was able to well
initiate the knowledge management solutions.
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4.9 Case Study Analysis of Thales (www.thalesgroup.com)
4.9.1 Introduction of Thales
Established in France more than a century ago, Thales is a global electronics company serving
Aerospace, Defence, and Information Technology markets worldwide. With operations in more
than 30 countries and 65,000 employees, the Thales Group generated 10.6 billion euros in
revenues in 2003.
Across all businesses in all countries, the Thales core values are the same: focusing on
customers, developing people, being entrepreneurs & innovators, performing through
teamwork and sharing knowledge.
Each Thales business around the world has experience and specialised know-how that the
entire Group can and must benefit from. Today, Thales is organised to operate as a worldwide
knowledge network that shares complementary expertise and skills sets while respecting
obligations for security and customer confidentiality. By sharing best practices, Thales
leverages the talents of an entire generation to deliver best-in-class technologies and services to
high-tech markets worldwide.
Thales Group already incorporated knowledge management techniques within their
organisation in various sectors. This could be noticed when the organisation regularly took its
cost effective IT products and reutilised them back into the varied sectors thereby providing
benefits to their customers from its global resources and best practices. Further Thales created
13 virtual communities, known as Common Efficiency Teams, for best practices purpose.
This case study which is further analysed was to create, share and use knowledge and best
practices more easily among the 18,000 researchers and technology engineers spread all across
the world.
4.9.2 Analysis of Thales Knowledge Management
Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
While evaluating Thales group case study, it was observed that to incorporate knowledge
management, Accenture and Thales, collaborated to implement an innovative networked
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knowledge solution and organisational culture. The following areas were evaluated during for
the implementation.
$ As Thales comprises of 3 distinct units � defence, aerospace and technology, each of
which is independent in their own perspectives, it needed a technology which could
achieve optimal benefits within these distinctive units. Thus the aim was to build links
between the various units and promote the sharing of best practices. The company
further recognized the need of installing an efficient knowledge management tool to
further transform the capabilities of its workforce.
$ Accenture and Thales surveyed members of the Common Efficiency Teams as well as
the field engineers of various units to identify their primary frustrations, their
expectations and their knowledge management needs. The team members� main
concern, which centred on finding the information they needed quickly, confirmed the
Accenture/Thales strategy of installing a tool that would facilitate access to knowledge
and improve productivity.
$ The need of new system was to centralize data and help Thales� employees find
information faster, collaborate within and across teams, and benefit from a
personalized interface.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
For implementing the above areas Thales realised that incorporating technology will be the best
option.
Thales implemented a collaborative, Web-based portal that served as a working tool for the
Common Efficiency Teams. This portal helped the team in publishing Web contents and also
facilitating a virtual team work environment. It was also a knowledge sharing tool for all
Thales engineers, which would allow them to more easily access the content published.
Further a knowledge management portal was developed which was implemented to provide
Thales engineers access to relevant knowledge based on their competencies. The tool was
designed as an integrated collection of 13 made-to-measure sub-portals, aligned to the
competency areas already identified by the Common Efficiency Teams.
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After incorporating the above portal, the team identified the need of developing a unique portal
in which the search engine was not the core of the portal. Instead the aim was to give easy
mouse clicks to reach the 30 giga-octets of information. This system had more innovative
features like temporary workspaces for team projects, displaying of published materials by
researchers with a single operation, the interface was highly intuitive allowing easier
information access and retrieval capabilities.
Feature 3: Benefits to the company as well as employees
The main aim of incorporating knowledge management techniques within the organisation was
to create, share and use knowledge and best practices more easily. The organisation was able to
achieve the goals in the following manner
1. The company estimated that the new system will allow its users to take less amount of
time in searching the relevant information then it actually used to take. As stated in the
case study, ��estimates that the new system will allow its users to shave one hour from
the four-to-five hours they typically devoted to searching for information each week�.
This in longer run will reduce thousands of extra hours used in just searching the
database for the required information.
2. The system developed not only provided better and faster access to information at the
user-level but also offered greater visibility into researches which were currently in
progress. In a scenario where it requires more mobilization of the teams such visibility
dramatically improves the decision-making capabilities.
3. The new system is also highly scalable means able to increase the performance, which
means Thales can apply it quickly and cost-effectively to a number of different
business functions across different markets.
Feature 4: Barriers/Challenges faced by organisation while implementing KMS
The case was unable to provide any proper information of the barriers faced while
incorporating knowledge management techniques.
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Feature 5: What was the methodology applied the organisation: Strategy and Information Technology.
The case is only able to provide enough data on the information technology used by the
organisation for the development of the knowledge management. But any particular strategies
for motivating employees to use the tools are not specified.
Technology:
While developing the knowledge management portal which was integrated with 13 made-to-
measure sub portals, many tools from varied organisations were used to provide the best
enterprise wide knowledge management capabilities. The applications which were selected for
the implementation were IBM�s portal management tool suite, Websphere Portal Server, and
Interwoven content management tool, TeamSite. Further the new portal which was able to
provide information with less time and easily contributed a lot in knowledge management
initiative.
Feature 6: To what extent capture of tacit knowledge and translation to explicit knowledge affects the Organisational culture and Behaviour
The case study is unable to give any information on how capturing the knowledge actually
affected the organisational culture and behaviour. As stated in the case the techniques within
the organisation were used to create, share and use knowledge and improve best practices. The
company was able to benefit from the portal as produced, it can be interpreted that the
employees were keen to participate in this new developed culture.
4.9.3 Discussion The above findings indicate that Thales was able to implement an innovative networked
knowledge solution and organisational culture. The knowledge portal which was developed
was able to bridge the gap between the three autonomous business units � aerospace, defence
and technology. The portal was able to provide key benefits to the employees working within
Thales. It was able to provide a flexible, better and faster and easy to access tool to the
employees. Further as the new system was highly scalable in nature it can be further
incorporated into different markets of the Thales. The case was unable to provide any clear
picture towards the organisational culture and the barriers but as stated �the success of the tool
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depends only if the solutions are aligned to corporate objectives and to the specific needs of its
people�.
4.10 Case Study Analysis of Xerox (www.xerox.com)
4.10.1 Introduction of Xerox Xerox Limited was established in 1965 as a joint venture between the US-based organisations.
Xerox (UK) Limited was formed in 1972 as the UK sales, marketing & support subsidiary of
Xerox Limited. Following its purchase of the remaining shares from The Rank Organisation in
1997, Xerox Limited is now a wholly-owned subsidiary of Xerox Corporation. The current
European operation (Xerox Limited) employs around 19,500 people, with around 4,000 people
being employed by Xerox UK. The Digital Document Company, Xerox, provides solutions to
manage documents - paper, electronic, online. Whether it�s a small business, a global
enterprise, or a home office, it offers high-value products and services.
A pioneer in Knowledge Management, Xerox is consciously managing knowledge since 1990
(Hickens, 2001). Today Xerox is one of the top five �Most Admired Knowledge Enterprise:
MAKE�.
The need of knowledge management started in 1995 when Xerox was still emerging as the
document company. Xerox realised that to be successful in a competitive world, gaining
customers along with the employee�s interest is the �key element�. Thus implementing new
tools and developing a knowledge culture, in order to focus on new areas and sharing
information were incorporated.
4.10.2 Analysis of Xerox Knowledge Management
Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required While investigating the case study, few key areas were identified where the use of capturing
tacit knowledge was required. The main purpose for capturing the knowledge was to share
internal information of employees� within the organisations which could be further used in
innovating and creating new ideas, reducing the turn around time of a job and also reducing the
number of errors done. Further information from the customers were used in implementing new
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strategies in providing a better customer service by understanding the customers needs and also
mining the undesirable issues of customers.
The key areas which were identified in knowledge management could be broadly classified as
following:
$ Xerox wanted its employees� to share information concerned mainly with the area of
interest or common practices rather than aiming at providing solutions for specific
product or research.
$ Xerox realised that the �service reps� within the company get the challenge of solving
a new problem but they do not contribute the experience by sharing it with the other
employees. The new knowledge is produced but is not being shared. It was realised
that there was a need to create an environment where if another service rep is faced by
the similar problem and is unable to resolve, then probably a common database in
which �tips� are stored could help in solving the problem within less period of time.
Thus the process of �reinventing the wheel� is minimised.
$ Xerox being known for its customer services, needs to best utilise the knowledge and
information gained from their customers to provide them with better and correct
solutions within a less amount of time.
$ Xerox thought of capturing and reusing the past experiences of employees which could
be further used in developing new innovations.
$ Xerox thought of getting the experts and the novice together where they can exchange
their knowledge and experiences.
$ Xerox wanted to capture that knowledge within employees� which could be later
embedded within products, services and processes to provide better facilities to the
customers.
$ Improving knowledge sharing and knowledge generation for innovations
$ Finally, Xerox wanted to fully utilise the intellectual assets of the organisation.
Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit knowledge)
Xerox implemented various tools to create a sharing environment as seen in the case.
The implementation of a web-based tool, DocuShare�AmberWeb, allowed employees� to
share their departments� progress of their new projects. This product is not only a collaborative
workspace but also has the document management abilities. Here employees can come and
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attach their files which can be further shared by any other employee of concern. The main
purpose of this, as stated in the case study was �to allow employees to stop sending
attachments and long files, thereby fewer duplicate files were on everyone�s hard drive and
also allowing people to share the knowledge�, admitted by HoltsHouse, Director of Xerox.
Another tool called Eureka implemented within the organisation. It was designed for service
reps to contribute solutions to specific problems which they experience very rarely. Eureka is
again a web-based technology and has all the latest capabilities installed in it; like search,
independent of the format and easy update of information.
Further it was noticed that these tools were developed keeping in mind that employees� have
less time to train themselves in using a new component. Also it requires too much �pushing�
from the management for employees to use softwares which are time consuming and difficult
in remembering the passwords or difficulty in using any facilities provided. Thus interface was
developed like the web and as stated in the case, �Like the Web, it requires little or no
training�.
Feature 3: Benefits to the company as well as employees
Capturing the tacit knowledge and further making it explicit for the use of the employees
provided some benefits to Xerox in both organisation and individual level.
Employees were able to reduce the time of finding and sending the required information to the
customer or another employee in need. DocuShare tool helped them uploading all the important
and required files, which could be accessed by anyone and everyone in the organisation. Greg
Cholmondeley, customer of the tool, discusses the advantage, �Previously everyone would
send information by E-mail. Now they can post to DocuShare sites and access the information
as needed�.(Xerox Case study)
Employees� using another web-based technology, Eureka, which is developed to solve specific
problems of the service reps has also benefited from the technology. The technology �allows
service reps to contribute information and access it from laptops from anywhere in the
world�(Xerox case study). It is estimated that 25% of the service reps around the world are
using the service and also providing contributions. This tool further helps in improving
customer services thereby providing a competitive edge towards other businesses in the market.
Further as stated in the case, the development of both DocuShare and Eureka, has provided
benefits to the organisation, Corporate strategy as well as Solution strategy.
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Also it was quite clear from the number of employees, who were using the tools, were
increasing with the passing year. Employees were able to understand the importance of
products and thus used the same to not only gain their learning�s and personal knowledge but
also shared their experiences on the collaborative tools. This could be clearly seen from two
instances that happened after the incorporating the tools, ��departments have bought it since--
so far 25,000 employees use it� and ��that knowledge repository now contains about 5,000
"tips" and estimated that 25% of the service reps worldwide are contributing�.
Feature 4: Barriers/Challenges faced in the organisation while implementing KMS
The case study was unable to provide much information regarding the barriers and challenges
faced by the organisation. It was only able to state that culture was a barrier in implementing
knowledge sharing environment, �Like everyone else, the Xerox corporate culture did not
revolve around sharing�.
Q5. What was the methodology applied by the organisation: Strategy or Information Technology.
Both the methodologies were equally used to implement knowledge management.
Technology:
The developing for tools like, AmberWeb and Eureka helped the organisation to bring
employees from far distance together to share their knowledge with others. Further technology
also helped in increasing the accessibility of information from any part of the world, whether
sitting at home or working in fields, using their laptops. The independent format and search
capabilities helped the employees to save time uploading the files as required by the system and
also reduced the time for searching for the required system at the point of need.
Strategy:
As stated in the literature, implementing technology is not the only solution, organizations
should provide incentives and motivation factors to the employees to use the technology for not
only their benefit but also as a benefit for the whole organization as a whole. Keeping this in
mind Xerox implemented various strategies within the organizations. The incentives were not
only financial or threatened punishment but more of recognition. �Contributors get known.
People notice: �Oh yeah, that guy up in Canada solved these problems,��, said the director of
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the company. Further employees were given the responsibility of sharing the knowledge rather
than a duty or an added burden.
Feature 6: To what extent capture of tacit knowledge and translation to explicit
knowledge affects the Organisational culture and Behaviour
Implementing a knowledge management within the organisation was able to change
organisational culture to some extent. It was stated that implementing a knowledge sharing
environment has changed the employees� perspective on managing knowledge, �Like everyone
else, the Xerox corporate culture did not revolve around sharing. But to a degree, that has
changed�. Employees appreciated the tools at the first instance, due to its easy usability factor
and thereby motivated themselves to further contribute to the Knowledge-Sharing Culture of
Xerox. Also the initiative was able to create a sense of responsibility within the organisation.
4.10.3 Discussion
The above analysis indicates that, Xerox understood the importance of sharing knowledge and
identified the key areas where knowledge from employees could be best utilised. Xerox�s main
aim was to create awareness of varied kinds of information among the employees which could
be further used in creating new ideas and innovations for the betterment of the organisation in
order to sustain themselves in a competitive environment. Further Xerox, with the help of
technology and Strategy implemented knowledge management effectively and efficiently. By
incorporating an easy to use and web-based technology employees were able to acquaint
themselves with the system without any related training required. Also technology helped in
minimising the �distance� between the employees from all over the world. The incentives and
recognition strategies used within the case helped in motivating the employees to use the new
developed technology. The implementation was able to change the culture for sharing
knowledge. Finally, the case gave a clear outlook of how the key areas of tacit knowledge
could change the environment of an organisation and also contribute to the benefit of the
customers as well as employees. However the case study was unable to show any clear picture
regarding the barriers faced while initiating the knowledge management process.
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CHAPTER 5 � DISCUSSION
5.0 Discussion
This chapter discusses the overall findings of the evaluation of sample case studies that was
carried out in the previous chapter, against each feature of the checklist. The findings are
supported by relevant comments from the sample case studies and literature reviews gathered
during the entire work.
5.1 Feature 1: Identifying the Key Areas where the usage of tacit knowledge is required
The analysis of feature 1 of the sample case studies identified that organisations have
individual requirements for capturing and disseminating tacit knowledge in order to sustain in a
competitive world. As discussed in chapter 2 by many authors (Piggott (1997), Wiig (1997)
Santosus, and Surmacz (2001) and McDowall (2002)), capturing tacit knowledge is required
for issues such as expert knowledge, innovations, competitive advantages, best practices,
reducing errors, saving time and money, minimising information overload, improving decision
making abilities and improving customer services. Interestingly, the case studies analyses
highlighted similar key areas where the use of capturing tacit knowledge is required. It was
observed from the analyses that, amongst others, knowledge sharing and best practices were
key features required for capturing tacit knowledge. Also HP, Schlumberger and Sequent
required the internal knowledge to improve the communications between the departments for
sharing expert knowledge to enable better innovations and higher return on investments.
Chevron, an energy and oil major, also required capturing tacit knowledge in order to improve
the communication between its six refineries to enhance maintenance standards. Customer
based companies like Infosys, Ernst and Young and Gelco needed a robust solution for
improving customer satisfaction.
Most of the companies studied were facing problems in not only locating information but also
locating the concerned employee for help, causing delays. These companies required systems
to provide a central base of information saving time in both; locating the concerned employee
and reducing the chances of duplication.
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The case studies evaluated were able to provide the key areas for capturing tacit knowledge
however; organisations also require understanding of its goals and objectives in order to
identify areas where capturing tacit knowledge is required.
5.2 Feature 2: Capturing the tacit knowledge to make it available to everyone (explicit
knowledge
During the analysis of the case studies key areas were identified through which tacit knowledge
could be made available. Knowledge management initiatives were taken by organisations in
order to capture the widely existing tacit knowledge and make it available to all. In chapter 2 it
was discussed that Information Technology aims at providing a proper and manageable flow of
information within the organization that will benefit the company in its long run. Technology
facilitates the process of transmitting and exchanging information (Haawamdeh, 2002:5). As
expected the companies analysed for this study used Information technology to capture tacit
knowledge. As many researchers such as (Davenport et al, 2000, Mairead 2003) suggest that
for the purpose of converting tacit knowledge to explicit knowledge technology is the most
sought after methodology. Most companies analysed, used the following methods:
1. An Online discussion database to share knowledge as well as to post announcements.
2. A collaborative centralised database or an online library, which can archive
information regarding the documents of past as well as recent project, profiles of
experts, competencies. This could be used when an employee is needed to take an
advice regarding their work, the employee can access the above database.
3. A dialup service for the customers� queries.
4. A feedback system.
However to make knowledge management an effective tool it is required to use these methods
optimally. This is discussed in section 5.5.
5.3 Feature 3: Benefits to the company as well as employees
As discussed in the literature review, �DiMattia and Oder (1997) asserted that organisation
employed Knowledge Management trends to cope with information explosion and capitalise the
knowledge in the workplace�. It was analysed from the case studies that organisations were
able to get the most out of their knowledge management initiatives. It is interesting to note that
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the knowledge management initiative benefited not only the organisation but also the
employees as well as customers and clients of the organisation. As discussed by Santosus and
Surmacz (2001) and McDowall (2002), organisations were able to increase profits, returns on
investment, productivity, employee satisfaction as well as performance, increase in customer
services, reduction in overhead costs in terms of operating costs and staff reduction.
Also employees were able to receive the benefits of knowledge management by efficiency in
work, save time on answering using the collective brainpower, rewards and recognition, less
job preparation time by speeding up the decision making abilities and less stress.
The literature review in the study identified the organisational and employees benefits.
However, the analysis in the study also highlighted customers/clients benefits and process
benefits in terms of effective and efficient query services, new innovations and skills from the
organisations, improved and faster communication, increase staff participation, and greater
efficiency.
5.4 Feature 4: The barriers and challenges faced by the organisations while implementing
tacit knowledge
As stated in the literature review, �The biggest challenge reported by practitioners in the
implementation of KM practices, is that of changing the culture from "knowledge is power" to
"knowledge sharing is power�. Interestingly areas were identified in accordance to the
common obstacles provided by Skyrme (1997) in chapter 2. The organisations were unable to
motivate employees in sharing the knowledge due to �introversion factor�. Also as observed in
the analysis of Gelco case study, �employees were concerned that their know-how knowledge
would be taken away and they would no more benefit from being experts in their field�.
Furthermore employees were seeing a profit motive behind knowledge management initiative.
They were seeing the benefits of contributing the knowledge in terms of individualism.
Employees were finding sharing of knowledge as both wastage of time and efforts because they
were unable to receive any rewards or recognition. It was analysed in the cases that employee
were resistant to change. Companies like HP and Ernst and Young were unable to understand
employees� reluctance and were trying hard to eliminate this barrier. Problems regarding
motivating employees by generating new incentives, rewards and recognition were seen by
many organisations. It was analysed in the cases that developers were frequently looking for
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new approaches in order to motivate the employees. In many cases it was observed that
Technology was also a barrier for organisations as it was difficult to embed information from
various sources and experts in a centralised portal. Lastly the Organisational culture proved to
be barrier as the management was unable to foster a culture of openness, security and respect
for the employees, as in the case of Siemens.
5.5 Feature 5: Methodology applied in the organisation for the proper working of
knowledge management.
As perceived in the literature review, �...that tacit knowledge could be best captured using a
�mixture� of two key strategies: Codification and Personalisation�. Evaluation of case studies
were able to identify that organisations implemented information technology for capturing the
tacit knowledge and also created a knowledge sharing environment where employees were
eager to share their knowledge. Also as discussed in chapter 2, �Enterprises need to know what
their knowledge assets are and how to manage and make use of these assets to get maximum
return. Knowledge management is not only about managing these assets but also managing the
processes that act upon the assets�.
Thus it was identified that use of IT was able to store information in one place which could be
easily accessed by employees from around the world. However, it was observed that in order to
encourage employees to use the technology many aspects need to be taken into consideration.
Firstly technology should facilitate the ease of submitting and retrieving information from the
portal. Secondly for developing a friendly user-interface, capabilities such as Search tools, drop
down boxes for the feedback were an essential part. Besides, it was identified during the
analysis �that Chevron main pressure was on making the technology more easy and simple, so
that the employees couldn�t feel the extra burden of work on them�. Thus the technology used
should be having easy accessibility and the functionalities should not be very difficult to
understand. The lack of the above features will not only frustrate employees who are using it
but will �put them off� by using the technology further. Further the independent format method
which was adopted by many companies also reduced the extra burden of formatting the
document according to the system.
It was further conceived that Technology was able to provide all the advantages which were
identified during the literature review. Information technology was able to provide higher level
returns, maximising organisational potential, managed intellectual capital, a more organised,
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non redundant and sense making information, integrated the community and finally was able to
change the organisational culture.
�Technology plays an important role in knowledge management, although KM is not about
technology� (Santosus, and Surmacz, 2001). Thus for developing a motivated environment,
strategies are used. As stated in the literature review, �for motivating people to utilise the
technology for their benefits and for the benefits of the organisation, organisation needs to
develop new strategies and approaches�. Analysis of the case studies highlighted different
strategies which focus mainly on creating an environment where employees� are motivated to
contribute their internal knowledge to the organisation. The various incentives used were
rewards, recognition, performance appraisal for contributions as well as using the knowledge
from the system, giving the responsibility/ownership to the employees in order to maintain the
information content. Schlumberger, Siemens and Ernst and Young setup a committee to
facilitate many seminars and sessions on the theme of knowledge management. These
committees were given the responsibility to update the knowledge and motivate other
employees to share the knowledge. Many types of rewards were given to the employees for
sharing the knowledge in the organisations; these were giving free license for lotus notes, free
airline miles and Knowledge Currencies which were developed by Schlumberger. However it
was observed in the analysis of Schlumberger, �incentives were required to be changed on a
frequent basis else employees are not very enthusiastic on sharing the knowledge�.
5.6 Feature 6: To what extent capture of tacit knowledge and translation to explicit
knowledge affects the organisational culture and behaviour.
For an organisation to implement a Knowledge Management strategy, it has to provoke a
knowledge culture. From the analysis of feature 6 it was observed that organisations were able
to incorporate organisational culture and behaviour to some extent. Implementation of the KM
initiative changed employees� perception towards knowledge management and also towards the
organisation. It was evaluated that employees were more loyal towards the organisation and
were contributing more towards the knowledge sharing developing a �best practiced�
organisation. Also employees were able to develop interest in their work which translated into
reduction in stress, fears and anxieties. Further it is stated in a �research by UMIST (1999)
�Sharing information and being part of a team are both important in creating a culture in
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which the organisation is able to learn.� This was very well observed within the case studies as
the communication between the departments, units and businesses were improved.
Gelco and Infosys gave authority to their employees for managing the tool and adding
information as required, thus developing a �decentralised� organisation. This decentralisation
of responsibilities further encouraged employees to contribute more to the organisation. Finally
for the employees the new culture came as a bonus. The Gelco case study states that, �For
workers, a knowledge-sharing culture translates into reduced job preparation time, less stress
and better performance, leading to recognition by our customers. These are powerful
incentives�.
Further as stated in the chapter 2, organisations need to create a knowledge culture and
behaviour environment to motivate and encourage employees to contribute. Though it is
required to create an organisational culture, but it was observed that many organisations were
unable to after analysing the cases.
5.7 Summary
This chapter was able to provide a combined discussion of the findings and analysis
documented in chapter 4. The chapter discusses the common issues that most of the
organisations, which have been analysed for the purpose of this dissertation, faced before,
during and after the implementation of the Knowledge Management initiative. The chapter
along with chapter 4 has been able to deliver the goals that were sought while doing this
dissertation, �The need, challenges and rewards of Knowledge Management.�
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CHAPTER 6 � CONCLUSION AND FURTHER RESEARCH 6.0 Introduction
In this chapter, the research conclusion will be presented in the context of research objectives
which was given in chapter 1, section 1.2. The chapter concludes with the discussion on
recommendations for further research.
6.1 Conclusion
This dissertation has considered the different ways in which organisations effectively capture
and exploit tacit knowledge through information technology and personalisation. The purpose
underlined here is that organisations should not only aim to embark knowledge management
systems in facilitating knowledge management but also aim to understand the needs of
knowledge, explicitly codify them, make the tacit knowledge easily accessible, facilitate a
culture of knowledge sharing, relationship building, and trust. For this purpose this study has
developed a checklist for carrying out subsequent evaluation of the sample case studies to
identify and gain an insight into the endeavours of the organisations in facilitating knowledge
management. The findings and analysis of this evaluation revealed that these organisations
have made consistent efforts towards driving the knowledge economy, its trends and
challenges. For this purpose, they implemented information technology and also created a
knowledge sharing environment for the employees. The study evaluated different parameters of
knowledge management as in �key areas where knowledge is required�, �making the tacit
knowledge explicitly available�, �benefits of capturing the knowledge�, �barriers and
challenges faced�, �methodology used for proper working of knowledge� and �changes in
organisational culture after the incorporation of knowledge management�. The case studies
were able to deduce that knowledge management will help workers in areas such as user needs
profiling, intelligent internet searching, will make the job easier, communication between the
workers and employee and customer satisfaction.
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However, the results of the evaluation also indicate that there is still some scope for
improvement for the organisations for the proper optimisation of knowledge management. In
particular, they are blind to the employee considerations and many still see knowledge
management in purely technological terms. As a result, employees complain of information
overload and of policies that fail to reward them for driving KM initiatives � for instance by
sharing and maintaining knowledge. Organisations are failing to grasp the fundamental changes
to their day-to-day operations and culture that successful KM implementation requires.
This in turn will drive a more sophisticated understanding for the organisations. The result will
be a virtuous circle as organisations take knowledge management seriously, change the internal
culture, encourage the employees and see the benefits in terms of shareholder value.
6.2 Recommendations for further research.
So far the aim of dissertation has been satisfied and the research objectives met. However, it is
not the end as knowledge management is a vast subject and capturing tacit knowledge is merely
a part of it. A further study can be carried out on a range of topics such as knowledge barrier,
knowledge dissemination, and knowledge transfer, in depth Information technology issues as
well as People issues in knowledge management. It would be interesting to dwell in depth of
these topics in order to generate a comprehensive study on implementation and benefits of
knowledge management within organisations.
Due to the limitation of time and structure of the study as it is a part of the MSc. Programme,
the number of case studies analysed were ten in number. However further research on the same
can be carried out by analysing different case studies and observing whether they comply with
the findings of this study.
Therefore, the recommendations for the further study are represented next to facilitate the
lifelong learning purpose.
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