KM Lecture

8/8/2019 KM Lecture

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Knowledge Management

AnandAnand Kumar Kumar

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Classic Data to Knowledge

Hierarchy

WisdomKnowledge

Information

Data

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From Facts to Wisdom(Haeckel & Nolan, 1993)

one example of the hierarchy

Facts

Information

Intelligence

Knowledge

Wisdom

Less is

More

Volume

Completeness

Objectivity

Value

Structure

Subjectivity

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What is Knowledge? Data ± collection of unprocessed facts

Information ± organized or meaningful data

Knowledge ± information that is contextual,

relevant, and actionable Strong experiential and reflective elements

Good leverage and increasing returns

Dynamic

Evolves over time with experience

Knowledge is also known as Intellectual Capital The primary difference between the termsinformation and knowledge is in the level of understanding of their underlying organizationaldata

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Two major types of

Knowledge Explicit knowledge

Deals with objective, rational, and technical knowledge

Examples: policies, goals, strategies, papers, reports

Structured knowledge that is easy to codify

Easily manipulated, shared, taught or learned

Tacit knowledge Unstructured knowledge ± in the domain of subjective,

cognitive, and experiential learning

Highly personal, hard to formalize and document

Cumulative store of the experiences, mental maps,insights, expertise, know-how, trade secrets, skills set,understanding, etc.

Involves a lot of human interpretation

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Need for Knowledge

Management

Knowledge has become the key resource, for a nation¶s military strength as well as for itseconomic strength« is fundamentally different from the traditional key resources of theeconomist ± land, labor, and even capital«weneed systematic work on the quality of knowledge and the productivity of knowledge«the performance capacity, if not the survival, of any organization in the knowledge society will

come increasingly to depend on those twofactors´ [Drucker,1994]

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What is Knowledge

Management?

Knowledge management (KM) is managing the

organization¶s knowledge (both explicit and tacit)

through the process of creating, structuring,

disseminating and applying knowledge to enhanceorganizational performance and create value

KM requires a major transformation in organizational

culture to create a desire to share

Structuring enables problem-solving, dynamiclearning, strategic planning, decision-making

Leverage value of intellectual capital through reuse

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Forces Driving Knowledge

Management Increasing Domain Complexity: Intricacy of internal

and external processes, the rapid advancement of

technology.

Accelerating Market Volat

ility: The pace of change, or volatility, within each market domain has increased

rapidly in the past decade.

Intensif ied Speed of Responsiveness: The time

required to take action based upon subtle changes

within and across domains is decreasing.

Diminishing Individual Exper ience: High employee

turnover rates have resulted in individuals with decision-

making authority having less tenure within their

organizations than ever before.

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So, what are the implications?

Faced with increased complexity , market volatility and accelerated responsiveness, today¶syounger manager feelsless adequate to make thedifficult decisions facedeach day.

KM is important for organizations thatcontinually face downsizingor a high turnover percentage due to thenature of the industry.

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Is Knowledge Management for

Everybody? KM is important for all

organizations

Today¶s decision maker

faces the pressure tomake better and faster decisions, even in light of

lack of experiencetypically from the

decision-maker outcome of those

decisions could havesuch a considerableimpact on the

organization

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Benefits of KM

People don¶t have to spend as much time looking for answers

People can move quickly on their problem-solvinganywhere and anytime

People can work more effectively and more efficiently Share best practices

Competitive advantage

Expertise can be leveraged

Better decision-making

Reduced costs, therefore increased profits

Retain key talent and expertise

Improve customer retention and/or satisfaction

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KM Initiatives

Aims

Make knowledge visible

Develop knowledge intensive culture

Build knowledge infrastructure

Surrounding processes

Creation of knowledge

Sharing of knowledge Seeking out (elicitation of) knowledge

Using knowledge

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KM Initiatives

Knowledge creation

Generating new ideas, routines, insights

Modes include socialization, externalization,

internalization, combination Knowledge shar ing

Willing explanation to another directly or throughan intermediary

Knowledge seeking or elicitation

Knowledge sourcing

Knowledge use

-- Leverage knowledge

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Approaches to KM

Process Approach

Codifies knowledge

Formalized controls, approaches, technologies

Fails to capture most tacit knowledge

Practice Approach

Assumes that most knowledge is tacit

Informal systems

Social events, communities of practice, person-to-personcontacts

Challenge to make tacit knowledge explicit, capture it,

add to it, transfer it

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Approaches to KM

Hybr id Approach Practice approach initially used to store explicit knowledge

Tacit knowledge primarily stored as contact information

Best practices captured and managed

Best practices Methods that effective organizations use to operate and

manage functions

Knowledge repository Place for capture and storage of knowledge

Different storage mechanisms depending upon datacaptured

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KM Cycle

Creates knowledge throughnew ways of doing things

Identifies and captures newknowledge

Places knowledge intocontext so it is usable

Stores knowledge inrepository

Reviews for accuracy andrelevance

Makes knowledge availableat all times to anyone

Disseminate

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KM as a Technological

Solution

Is KM

Big business?

A competitive advantage? Intellectual capital?

An intranet solution?

An asset dimension?

A technological infrastructure?

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Systems IT facilitates sharing as well as

accelerated growth of

knowledge.

IT allows the movement of

information at increasing speedsand efficiencies.

³ T oday, knowledge is

accumulating at an ever

increasing rate. It is estimated

that knowledge is currently doubling every 18 months and,

of course, the pace is

increasing... T echnology

facilitates the speed at which

knowledge and ideas proliferate´

Bradley [1996]

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Systems (cont¶d)

Knowledge management mechanisms (i.e., organizational

or structural means) for promoting knowledge management

are needed.

The use of leading-edge information technologies (e.g.,Web-based conferencing) to support KM mechanisms

enables dramatic improvement in KM.

Knowledge management systems (KMS): the synergy

between latest technologies and social/structural

mechanisms

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Systems KM systems

classif ication based on

observations on the KM

systems implementations: Knowledge Discovery

Systems

Knowledge Capture

Systems Knowledge Sharing

Systems

Knowledge Application

Systems

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Contentnets

have a role to play in KM

As knowledge repositories for tacit

knowledge that has been madeexplicit

For best practices databases

For expert ³yellow pages´

Online learning and knowledgesharing

Knowledge sharing ³boards´

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Peoplenets &

Processnetshave a role to play in KM For group learning applications

To connect individuals with each other for mentoring and knowledge sharing

For decision support & decision making

To sense, share, and respond to the

³signals´ coming from the environment

To capture ideas and turn them into action

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Effective Knowledge

Management

80% - Organizational processes and

human factors 20% - Technology

PEOPLE

TECHNOLOGY

ORGANIZATIONAL

PROCESSESOVERLAPPINGFACTORS

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Issues in Knowledge

Management (Cont¶d) One of the primary

differences between

traditional informationsystems and KM

systems is the active

role that users of KM

systems play onbuilding the content of

such systems.

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Value to

Organization

Organ

izational

Learning

Active Knowledge

Transfer

Expert Knowledge

Base

Contact Links

Expert Assistance as

Needed

Communities of

Practice Index

Decision Making

Tools

Prof iles for

Customization

Pushed Reports &

News

Collaboration Tools

Repositor ies

Best Practices

Reports

Documents

Presentation Slides

Tips

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KM: Learning and

Communication Process In simple language KM is an effort to

capture not only explicit factualinformation but also the tacit informationand knowledge that exists in anorganization, usually based on theexper ience and learning of individual

employees

,in order to ad

vance theorganization's mission. The eventual

goal is to share knowledge amongmember s of the organization.

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Human Resources Chief knowledge off icer

Senior level

Sets strategic priorities

Defines area of knowledge based on organization mission and goals

Creates infrastructure

Identifies knowledge champions Manages content produced by groups

Adds to knowledge base

CEO Champion knowledge management

Upper management Ensures availability of resources to CKO

Communities of practice Knowledge management system developer s

Team members that develop system

Knowledge management system staff Catalog and manage knowledge

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Essence of KM (1)

Knowledge is first

created in the people¶s

minds. KM practicesmust first identify ways

to encourage and

stimulate the ability of

employees to developnew knowledge.

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Essence of KM (2)

KM methodologies

and technologies

must enableeffective ways to

elicit, represent,

organize, re-use,

and renew thisknowledge.

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Essence of KM (3)

Valuation

Asset-based approaches Identifies intellectual assets

Focuses on increasing value Knowledge linked to applications and

business benef its approaches Balanced scorecard

Economic value added

Inclusive valuation methodology Return on management ratio

Knowledge capital measure

Estimated sale pr ice approach

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Metrics

Financial ROI

Perceptual, rather than absolute

Intellectual capital not considered an asset Non-f inancial

Value of intangibles External relationship linkages capital

Structural capital Human capital

Social capital

Environmental capital

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Essence of KM (4)

KM should not

distance itself from

the knowledgeowners, but instead

celebrate and

recognize their

position as expertsin the organization.

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Factors Leading to Success and

Failure of Systems

Success Companies must assess need

System needs technical and organizational infrastructure tobuild on

System must have economic value to organization Senior management support

Organization needs multiple channels for knowledge transfer

Appropriate organizational culture

Failure System does not meet organization¶s needs

Lack of commitment No incentive to use system

Lack of integration