Frameworks Frameworks

of of

Knowledge Knowledge ManagementManagement

Madz QuiamcoMadz Quiamco

AIJCAIJC

Frameworks of KM

Highest ranking authors in KM (Social Science Citation Index, 2008):• Ikujiro Nonaka

The Knowledge-Creating Company: How Japanese The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation Companies Create the Dynamics of Innovation

by Ikujiro Nonaka and Hirotaka Takeuchi by Ikujiro Nonaka and Hirotaka Takeuchi (1995) NY: Oxford University Press(1995) NY: Oxford University Press

• Thomas DavenportThomas Davenport Working Knowledge: Working Knowledge:

How Organizations Manage What they KnowHow Organizations Manage What they Know by Thomas Davenport and Lawrence Prusak by Thomas Davenport and Lawrence Prusak

(1998) Cambridge, MA: Harvard Business School Press(1998) Cambridge, MA: Harvard Business School Press

Frameworks of KM

• Nonaka:Nonaka:

Knowledge - a Knowledge - a dynamic human dynamic human process of justifying process of justifying personal belief personal belief toward ‘truth’toward ‘truth’

Differing concepts of knowledge:

• Western concept:

emphasizes the absolute, static, and nonhuman nature of knowledge, e.g., in propositions and formal logic

The Knowledge-Creating The Knowledge-Creating Company: Company:

How Japanese Companies How Japanese Companies Create the Dynamics Create the Dynamics

of Innovationof Innovation

The Knowledge-Creating Company

• Central idea:Central idea: knowledge creation knowledge creation through knowledge conversion – through knowledge conversion – from existing to newfrom existing to new

==

‘‘justified true belief’justified true belief’

KnowledgeKnowledge

The Knowledge-Creating Company

• Production/Creation of new knowledge through Production/Creation of new knowledge through knowledge amplificationknowledge amplification

1) FROM

TACIT…

…TO EXPLICIT

…to organization

2) From individual…

A. The SECI ModelA. The SECI Model

4 modes of organizational

knowledge creation:

Conversion

Interaction

The Knowledge-Creating Company

• SocializationSocialization – – acquiring tacit knowledge by sharing experiencesacquiring tacit knowledge by sharing experiences

Apprentices learn from masters throughApprentices learn from masters through- observation- observation- imitation- imitation- practice- practice

Employees learn new skills through Employees learn new skills through on-the-job trainingon-the-job training

The Knowledge-Creating Company

• ExternalizationExternalization – – converting tacit knowledge into explicit concepts converting tacit knowledge into explicit concepts throughthrough- abstractions- abstractions- metaphors- metaphors- analogies- analogies- models; - models;

or triggered byor triggered by- dialogue- dialogue- collective reflection- collective reflection

The Knowledge-Creating Company

• CombinationCombination – – creating explicit knowledge by bringing them creating explicit knowledge by bringing them together from different sourcestogether from different sources

Individuals exchange and combine explicit Individuals exchange and combine explicit knowledge throughknowledge through- telephone conversations- telephone conversations- meetings- meetings- memos, etc.- memos, etc.

Existing info may be categorized, collated, Existing info may be categorized, collated, sorted to produce new explicit knowledgesorted to produce new explicit knowledge

The Knowledge-Creating Company

• InternalizationInternalization – – embodying explicit knowledge into tacit embodying explicit knowledge into tacit knowledge, internalizing experiences into knowledge, internalizing experiences into individuals’ tacit knowledge bases through individuals’ tacit knowledge bases through sharedshared- mental models, or - mental models, or - work practices- work practices

Internalization is facilitated byInternalization is facilitated by- documents- documents- stories- stories

Four categories of ‘ba’‘Ba’ –

a shared context in which knowledge is shared, created, and utilized through interaction.

B. The Concept of ‘Ba’

The Knowledge-Creating Company

Using the 4 categories of ‘ba’ (Example: 711 Using the 4 categories of ‘ba’ (Example: 711 Stores in JapanStores in Japan

• Originating ‘ba’Originating ‘ba’ – the shop floor; enables people – the shop floor; enables people to interact with each other and with customersto interact with each other and with customers

• Dialoguing ‘ba’Dialoguing ‘ba’ – employees’ tacit knowledge – employees’ tacit knowledge created through dialogue is used to create sales created through dialogue is used to create sales forecastsforecasts

• Systemizing ‘ba’Systemizing ‘ba’ – sales forecasts are tested vs. – sales forecasts are tested vs. actual sales and are fed back to sales units, i.e., actual sales and are fed back to sales units, i.e., the storesthe stores

• Exercising ‘ba’Exercising ‘ba’ – using this info and comparing it – using this info and comparing it with reality, sales staff improve their sales with reality, sales staff improve their sales forecasting skills and abilityforecasting skills and ability

C. Knowledge AssetsC. Knowledge Assets

- company-specific resources indispensable company-specific resources indispensable for creating value; for creating value;

- the inputs, outputs, and moderating factors the inputs, outputs, and moderating factors of the knowledge creation processof the knowledge creation process

Four categories of knowledge assets

Working Knowledge: Working Knowledge: How Organizations Manage How Organizations Manage

What they Know What they Know

• a fluid mix of - framed experience - values - contextual info - expert insight

that provides a framework for evaluating and incorporating new experiences and info

Knowledge =

Working Knowledge

Working Knowledge

Knowledge

• among individuals, originates and is applied in the knowers’ mind

• in organizations, are embedded in

- documents

- repositories

- organizational routines, processes, practices, norms

Organizations behave as knowledge markets, withOrganizations behave as knowledge markets, with• buyersbuyers – people seeking knowledge to solve – people seeking knowledge to solve

an issuean issue• sellerssellers – people with internal reputation to – people with internal reputation to

have knowledge about a process or subjecthave knowledge about a process or subject• brokersbrokers – people who connect those who need – people who connect those who need

and have the knowledge, i.e., gatekeepers, and have the knowledge, i.e., gatekeepers, boundary spanners, corporate librarians boundary spanners, corporate librarians

A.A.The Knowledge MarketThe Knowledge Market

Working Knowledge

Knowledge markets have pricing and Knowledge markets have pricing and payment mechanisms:payment mechanisms:• reciprocity reciprocity • reputationreputation• altruismaltruism

REMEMBER:REMEMBER:Knowledge markets require Knowledge markets require

trusttrust to function. to function.

Working Knowledge

KM processes required to excel:KM processes required to excel:

• Knowledge generationKnowledge generation

• Knowledge codificationKnowledge codification

• Knowledge transferKnowledge transfer

B. KM ProcessesB. KM Processes

Working Knowledge

• Knowledge generationKnowledge generation

-- activities that increase activities that increase the stock of organizational the stock of organizational knowledge knowledge

Modes of knowledge generation:Modes of knowledge generation:- - AcquisitionAcquisition – by hiring, buying another – by hiring, buying another organization, or renting/leasing external organization, or renting/leasing external knowledgeknowledge- - Dedicating resourcesDedicating resources – setting up R&D units, – setting up R&D units, corporate libraries developing and providing new corporate libraries developing and providing new knowledgeknowledge- - FusionFusion – bringing together individuals and – bringing together individuals and groups with different specializations and groups with different specializations and perspectives to working on a problem or projectperspectives to working on a problem or project- - AdaptationAdaptation – organization responding to new – organization responding to new conditions in its external environmentconditions in its external environment- - Building knowledge networksBuilding knowledge networks – linking people – linking people who share common work interest, problems, or who share common work interest, problems, or motivation to exchange knowledge motivation to exchange knowledge

Working Knowledge

• Knowledge codificationKnowledge codification

- - creating symbols to represent a certain knowledge and the particular process of knowing

- codification of tacit knowledge – limited to locating the knowledge (person), pointing seeker to it, and encouraging them to interact

Principles of knowledge codification:

Task InvolvedTask Involved Main ActorMain Actor

• Decide what business goals the codified knowledge will serve

(managers)

• Identify knowledge existing in various forms appropriate to the goal

(managers)

• Evaluate knowledge for usefulness and appropriateness for codification

(knowledge managers)

• Identify an appropriate medium for codification and distribution of knowledge

(codifiers)

Working Knowledge

• Knowledge transferKnowledge transfer- market spaces and places where trading and - market spaces and places where trading and sharing of knowledge can happen; sharing of knowledge can happen; - occurs through personal conversations.- occurs through personal conversations.

Encourage conversations throughEncourage conversations through-- water coolers-- water coolers-- talk rooms-- talk rooms-- knowledge fairs-- knowledge fairs-- open forums-- open forums-- etc.-- etc.

Working Knowledge

Barriers to knowledge sharing:Barriers to knowledge sharing:- lack of trust- lack of trust- different cultures, vocabularies, frames of - different cultures, vocabularies, frames of referencereference- lack of time and meeting places- lack of time and meeting places- status and rewards going to knowledge owners- status and rewards going to knowledge owners- lack of absorptive capacity in recipients- lack of absorptive capacity in recipients- belief and knowledge a prerogative of particular - belief and knowledge a prerogative of particular groupsgroups- the ‘not-invented-here’ syndrome and - the ‘not-invented-here’ syndrome and intolerance for mistakes or need for helpintolerance for mistakes or need for help

Working Knowledge

• Communities of practiceCommunities of practice – – self-organizing teams that emerge around self-organizing teams that emerge around shared interests and work practices to exchange shared interests and work practices to exchange knowledgeknowledge

Wenger (1998): CoP – groups whose members Wenger (1998): CoP – groups whose members - face common work tasks and interests- face common work tasks and interests- can see the benefits of sharing knowledge- can see the benefits of sharing knowledge- share norms of trust and reciprocity.- share norms of trust and reciprocity.

C. Communities of Practice (CoP)

• Nonaka and Takeuchi - the dynamics of knowledge Nonaka and Takeuchi - the dynamics of knowledge creation, particularly the creation, particularly the conversion ofconversion of tacit into tacit into explicit knowledgeexplicit knowledge

• Davenport and Prusak – the design of Davenport and Prusak – the design of organizational processesorganizational processes that enable knowledge that enable knowledge generation, codification, and transfergeneration, codification, and transfer

• Both models recognize that Both models recognize that knowledge creation, knowledge creation, sharing, and use are social activitiessharing, and use are social activities embedded in a embedded in a web of cultural norms and human relationships.web of cultural norms and human relationships.

• Davenport and Prusak: Davenport and Prusak: ‘communities of practice’‘communities of practice’ Nonaka and Takeuchi: Nonaka and Takeuchi: concept of ‘concept of ‘baba’’ (shared (shared contexts for knowledge creation and sharing).contexts for knowledge creation and sharing).

SummarySummary