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Knowledge Management: An Emerging Discipline Rooted in a Long History

Article · December 2000


DOI: 10.1016/B978-0-7506-7247-4.50004-5

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Knowledge Management:
An Emerging Discipline Rooted in a Long History
Karl M. Wiig
Knowledge Research Institute, Inc.–kmwiig@krii.com
Draft of Chapter 1 in
Knowledge Management
Edited by Daniele Chauvel & Charles Despres
Scheduled for publication Fall, 1999.

Abstract
Introduction
History of Knowledge Management
Intellectual Roots of Knowledge Management
Different Brands of Knowledge Management
Knowledge and Information: The Need for Crisp Definitions
Driving Forces behind Knowledge Management
External Driving Forces
Internal Driving Forces
Ongoing Developments
What Is New?
What May Lie ahead for Knowledge Management?
The Changing Workplace
Towards a Knowledge Management Discipline
Concluding Perspectives
References
Notes
Knowledge Management:
An Emerging Discipline Rooted in a Long History
Karl M. Wiig
Knowledge Research Institute, Inc. – kmwiig@krii.com

Abstract
The business direction we call Knowledge Management (KM) has emerged over
the last decades as a result of many intellectual, societal, and business forces.
Some of its roots extend back for millennia, both in the West and the East, while
others, particularly those associated with Cognitive and Information sciences,
are quite recent. Globalization of business also plays an important role. Whereas
KM has become a valuable business tool, its complexity is often vexing, and as a
field, will still be under development for a long time to come. Significant changes
in the workplace have already taken place, but changes to come are expected to
be greater. As for other management directions, it is expected that KM will be
integrated into the basket of effective management tools, and hence disappear as
a separate effort.

prise.1 They form the fundamental re-


Introduction sources for effective functioning and pro-
Knowledge, what it is, what it means, vide valuable assets for sale or exchange.
and its roles for work and spiritual life, has From business perspectives, explicit and
a long history. The abstract considerations systematic knowledge management has not
and speculations by philosophers and re- been of general concern until recently, and
ligious thinkers have been of particular as a result, availability of competitive ex-
significance. In addition, the emphasis on pertise has been haphazard. This is now
knowledge has always had a practical work- changing.
related and secular side. It is this aspect we As we improve KM–and as our competi-
pursue in this chapter. tors improve–we must continue to develop
Knowledge in the workplace–the ability of our KM practices. These efforts, which
of people and organizations to understand become increasingly sophisticated and de-
and act effectively–has regularly been manding, must build upon the historic roots
managed by managers, coworkers, and pro- of knowledge-related considerations. In ad-
active individuals. Those responsible for dition we must pay attention to develop-
survival in competitive environments al- ments in technology and people-centric ar-
ways have worked to build the best possible eas like cognitive sciences. In other words,
knowledge within their area of responsibil- we must rediscover the power of past
ity. thinking as well as understand opportuni-
Knowledge, and other IC components, ties that lie ahead.
serve two vital functions within the enter- 1
See for example Stewart (1997) and Sveiby (1997).
Knowledge Management: An Emerging Discipline Rooted in a Long History

History of Knowledge Manage- person must be considered. We must inte-


ment grate cognition, motivation, personal satis-
faction, feeling of security, and many other
A historical perspective of today’s KM,
factors.3
indicates that this is an old quest. Knowl-
The present KM focus is not driven by
edge, including knowing and reasons for
commercial pressures alone. A practical,
knowing, were documented by Western
often implicit, aspect of KM is that effective
philosophers for millennia, and with little
people behavior required for success rests
doubt, long before that. Eastern philoso-
on delegating intellectual tasks and
phers have an equally long documented
authority to knowledgeable and empowered
tradition of emphasizing knowledge and
individuals. KM also represents an evolu-
understanding for conducting spiritual and
tion of the move towards personal and in-
secular life. Much of these efforts were di-
tellectual freedom that started with the age
rected to obtain theoretical and abstract
of enlightenment and reason over 200 years
understandings of what knowledge is
ago. One notion was that through proper
about.2
education, humanity itself could be altered,
Practical needs to know–or particularly,
its nature changed for the better. As other
needs for expertise and operational under-
social movements, this has taken a long
standing–have been important since the
time to penetrate, particularly into the con-
battle for survival first started, perhaps be-
servative ranks and practices of manage-
fore the first human. Managing practical
ment.4
knowledge was implicit and unsystematic
The emergence of the explicit knowledge
at first, and often still is! However, the
focus and the introduction of the term “KM”
craft-guilds and apprentice-journeyman-
in the 1980s was no accident and did not
master systems of the 13th century, were
happen by chance.5 Although it happened
based on systematic and pragmatic KM
gradually and often was met with manage-
considerations. Still, the practical concerns
ment uncertainty, it was a natural evolu-
for knowledge and the theoretical and ab-
tion brought about by the confluence of
stract epistemological and religious per-
many factors. The developments that have
spectives were not integrated then, and still
led to our present perspectives on KM come
are mostly kept separate.
from many areas. Some are intellectually
Our present focus on knowledge, par-
ticularly for KM, is often explicitly oriented
3
towards commercial effectiveness. However, See for example Boulding (1966), Cleveland (1985),
Drucker (1988), Stewart (1991), and Sveiby & Lloyd (1987).
there are emerging realizations that to 4
Managers, by necessity have been conservative. Manage-
achieve the level of effective behavior re- ment is not a science, and approaches to “control” the social,
quired for competitive excellence, the whole open systems of human and economic behavior in organiza-
tions and markets are fraught with problems and uncertainty
2
The epistemological considerations of the Greek philoso- (see Austin, 1996 and Hilmer & Donaldson, 1996). Success-
phers Socrates, Plato, and Aristotle are well known. Perhaps ful management approaches, therefore, are built on traditions
less known in the West are the teachings of Lao Tzu and and long experience.
5
Confucius in China, also about 2,500 years ago. Indian phi- A perspective of the history of KM can for example be
losophers also pursued similar topics. found in Wiig (1997).

2
Knowledge Management: An Emerging Discipline Rooted in a Long History

based, others are pragmatic and rooted in Historic Efforts


the need to innovate to secure real life per- Ø Religion and Philosophy (e.g., episte-
formance. mology) to understand the role and
From our present-day perspective, in nature of knowledge and the permis-
sion of individuals “to think for them-
spite of increasing advances in thinking, selves.”
there were little change in needs for practi- Ø Psychology to understand the role of
cal KM until the industrial revolution knowledge in human behavior.
changed the economic landscape in the 17th Ø Economics and social sciences to un-
century. The introduction of factories and derstand the role of knowledge in so-
the related systematic specialization be- ciety.
came more pronounced to support the abil- Ø Business Theory to understand work,
ity to create and deliver goods in greater and its organization.
quantities and at lower costs. Still, KM was 20th Century Efforts to Improve Effec-
implicit and largely based on the appren- tiveness
tice-journeyman-master model. Schools and Ø Rationalization of Work (Taylorism),
universities mostly fulfilled a tacit mission Total Quality Management, and
to provide education as required for a Management Sciences to improve ef-
fectiveness.
leading minority. To some extent, this tacit
Ø Psychology, Cognitive Sciences, Artifi-
perspective survives to this day. Education,
cial Intelligence (AI), and Learning
be it primary, secondary, or higher, is per- Organization to learn faster than
ceived to be “good” and of general value, of- competition and provide foundation
ten with less thought given to which knowl- for making people more effective.
edge must be developed for which specific These and other perspectives on the roots
purposes. of KM are discussed by many authors.7

Intellectual Roots of Knowledge Different Brands of Knowledge


Management Management
Intellectually, broad, present-day KM We must specify what we mean by, and
has many origins. One comes from abstract include within broad KM. A few advanced
philosophical thinking. Another comes from enterprises pursue a central strategic
concrete concerns for requirements of ex- thrust with four tactical foci as indicated in
pertise in the workplace. Others come from Figure 1. However, most tailor KM prac-
perspectives of educators and business tices to their needs and environments and
leaders. Recent perspectives come from ef- have narrower perspectives. Of these, some
forts to explain economic driving forces in focus on knowledge sharing among indi-
the “knowledge era” and the 20th Century viduals or on building elaborate educational
efforts to increase effectiveness.6 Some of and knowledge distribution capabilities.
the intellectual roots include: Some emphasize use of technology to cap-

7
See for example Cleveland (1987) op.cit., Senge (1990),
6
See Romer (1989) and Kelly (1996). Simon (1976), and Wiig (1993).

3
Knowledge Management: An Emerging Discipline Rooted in a Long History

ture, manipulate, and locate knowledge and Our definition of KM is broad and em-
initially, many focus on knowledge-related braces related approaches and activities
information management rather than on throughout the organization. From this
KM. Others focus on knowledge utilization view, KM is partly practical, basic, and di-
to improve the enterprise’s operational and rectly aimed at supporting the enterprise’s
overall effectiveness. Still others pursue ultimate objectives. Other parts of KM are
building and exploiting IC to enhance the quite sophisticated and rely on under-
enterprise’s economic value. Some excep- standing of underlying processes to allow
tional enterprises have created “knowledge- targeted KM focused on the organization’s
vigilant” environments to focus constant, needs and capabilities. Many design sys-
widespread attention on ensuring competi- tematic and explicit KM practices to create
tive IC to sustain long-term success and vi- enterprise-wide, adaptive, contextual, com-
ability. The presumption is that competitive prehensive, and people-centric environ-
IC, properly utilized and exploited, is the ments that promotes continual personal fo-
central resource behind effective behavior. cus on knowledge-related matters.

IM & IT Intellectual
Focus Asset
Focus

Enterprise
People Focus Effectiveness
Focus

Figure 1. Comprehensive Knowledge Management Strategy Focus Areas.


Broad KM is the systematic and explicit From a slightly different perspective:
management of knowledge-related activi- “The goal of Knowledge Management is
ties, practices, programs, and policies to build and exploit intellectual capital
within the enterprise. Consequently, the effectively and gainfully.” This goal is
enterprise’s viability depends directly on: valid for the entire enterprise, for all of the
Ø The competitive quality of its knowl- enterprise’s activities, and has considerable
edge assets; and complexity behind it.8
Ø The successful application of these as-
sets in all its business activities–i.e., 8
Private communication from Fernando Simões, South Af-
realization of the knowledge assets’ rican KM professional (1998). This definition was adopted
value. by the Australian Parliament for their KM position paper.

4
Knowledge Management: An Emerging Discipline Rooted in a Long History

Some aspects of enterprise-wide intelli- application of knowledge assets (KAs). It


gent-acting behavior are indicated in Fig- also points to the need for permission, mo-
ure 2. The model outlines elements that fall tivations, opportunities, and capabilities for
under the auspices of KM, such as learning, individuals to act intelligently.
innovating, and the effective creation and

The Intelligent-Acting Enterprise


Intelligent Acting
Personnel
Permission Personnel Deal Directly Results
Motivation with Outside World from
Opportunities
Intelligent
Acting
Capabilities Personnel
Internal Operations and Customers
from
& Intelligent &
Learning "Daily Work"
&
Application Outside
of
Innovating Structural World
Create Utilize Knowledge
New KAs KAs Assets

Products & Services Technology


Systems & Procedures Patents & Licences Direct
Operating Practices Knowledge Bases Sales
of
Management Practices Permission Structural
Organizational Education & Knowledge
Structure Training Programs Assets
Structural Knowledge Assets

Figure 2. Individuals, Knowledge Assets, Learning and Innovation, and Internal


Operations in the Effective Enterprise.
One important aspect for effective KM is work. Instead, improved knowledge
the requirement to deal explicitly with the and its use, often far down in the or-
ganization, lead to less rework and
complexity of how people use their hand-offs, quicker analysis, decision,
minds–that is, think–to conduct work. It and execution, particularly of nonrou-
concerns what they must understand and tine tasks and other desirable and
how they must possess specific areas of work-reducing effects.
knowledge and have access to them to act Ø KM activities and initiatives, instead
effectively under different conditions. of being additional functions, must to
the largest extent possible be based
Similar considerations also hold on the or- on, and be part of, pre-existing and
ganizational level. ongoing efforts–often without making
Several aspects of effective, broad-based these more difficult, time consuming,
KM are of interest and should be empha- or demanding.9
sized. They dispel some myths often associ- Ø People are often afraid to share their
knowledge. They believe that they
ated with KM and include:
will lose the advantage that their ex-
Ø In the long run, KM initiatives and
activities normally do not lead to more 9
Lucier and Torsilieri (1997)

5
Knowledge Management: An Emerging Discipline Rooted in a Long History

pertise gives them among their peers Knowledge and Information: The
and within the organization. How-
Need for Crisp Definitions
ever, under the best of circumstances,
only a small fraction of an individual’s The intent with KM is to manage knowl-
applicable expertise can be elicited edge practically and effectively to reach
and shared. Frequently, only concrete, broad operational and strategic objectives.
operational or routine knowledge can That requires crystal-clear understanding
be communicated. Deep, broad in-
sights are generally not available–and of what is meant by knowledge. We must be
may not exist except as a capability to specific about what knowledge is to ma-
reason until the situation requires it. nipulate, monitor, and judge how it af-
Importantly, when experts provide fects–and is affected by–people, culture,
knowledge openly and widely, they
KM activities, and other factors within the
tend to be considered important by
their peers and gain status and recog- enterprise and its environment.
nition. We must distinguish clearly between
Ø Personal knowledge cannot be shared what we mean by “knowledge” and “infor-
directly. Perspectives of, and informa- mation.”10 At first, it may appear that there
tion about knowledge can be commu- is a continuum from signals to data to in-
nicated. Recipients make sense of the
formation to knowledge–and onwards, per-
received information and internalize
their interpretation of the communi- haps to wisdom. However, when examining
cation as new knowledge. Knowledge the nature of these conceptual constructs
is built by complex learning processes and the processes that create them, we find
and result in highly individual mental discontinuities that make information fun-
models and associations that for some,
may be quite different from the source damentally different from knowledge.
knowledge. Most people think of knowledge as a rec-
To be competitive, proactive enterprises ipe–a defined procedure–to deal with a con-
must increasingly manage knowledge sys- crete, routine situation. However, few
tematically–although many KM activities situations are repeated–most situations are
and functions may be implicit in each em- novel, particularly in their details. Hence,
ployee’s and department’s daily work and 10
From practical KM perspectives, operational definitions
practice. Enterprises will continue to be
are: Information consists of facts and other data orga-
motivated by several end-goals, to secure nized to characterize a particular situation, condition,
short-term success and long-term viability. challenge, or opportunity. Knowledge is possessed by
A particular KM objective in support of humans or inanimate agents as truths and beliefs, perspec-
whichever strategy the enterprise pursues, tives and concepts, judgments and expectations, method-
is to leverage the best available knowledge ologies and know-how. Knowledge is used to receive in-
formation–to recognize and identify; analyze, interpret,
and other ICs to make people, and therefore
and evaluate; synthesize, assess, and decide; adapt, plan,
the enterprise itself, act as effectively as implement, and monitor–to act. Understanding based on
possible to deal with operational, customer, knowledge is used to determine what a specific situation
supplier, and all other challenges to imple- means and how to handle it. Following this definition, in-
ment the enterprise strategy in practice. formation and rudimentary knowledge may be codifiable
and may exist outside a person’s mind. Understanding,
however, may be difficult to codify and is primarily peo-
ple-based.

6
Knowledge Management: An Emerging Discipline Rooted in a Long History

knowledge must provide us with the capa- Figure 3. In this system, information is con-
bility–the understanding–that permits us tinually obtained on the operating state of
to envision possible ways of handling differ- the process. Knowledge from process ex-
ent situations and to anticipate implica- perts is embedded in the process control
tions and judge their effects. It allows us to programs to automate operations. The ex-
improvise and “jam.”11 Our knowledge–in perts provide personal knowledge and deep
the form of mental models, scripts, and understanding as general principles and
schemata–provides us with the capability to specific cases on how to deal with routine
work with novel situations by including not and undesired operating situations. They
only concepts and predefined methods and may pool their process knowledge with that
judgments, but numerous connections with of other experts who earlier have embedded
other detailed concepts, meta-concepts, and knowledge on optimization and control
mental models.12 principles in the generic computer software
The discontinuity between information used to generate the control algorithms.
and knowledge, referred to above, is caused In addition, process operating history is
by how new knowledge is created from re- analyzed (by conventional statistical meth-
ceived information. The process is complex. ods or advanced knowledge discovery in da-
To become knowledge, new insights are in- tabases [KDD]) to obtain selected process
ternalized by establishing links with al- characteristics, including process dynamics.
ready existing knowledge, and these links This information also becomes part of the
can range from firmly characterized rela- control algorithms embedded in the control
tionships to vague associations. Prior computer after it has been interpreted and
knowledge is used to make sense of received linked to the experts’ personal knowledge.
information, and once accepted for inclu-
sion, internalizes the new insights by link- Driving Forces behind Knowl-
ing with prior knowledge. Hence, the new edge Management
knowledge is as much a function of prior
The emergence of KM may be explained
knowledge as it is of received inputs. A dis-
by the confluence and natural evolution of
continuity is thus created between the in-
several factors. The needs to manage
puts and the resulting new knowledge. The
knowledge are strong. For those who now
resulting knowledge and understanding is
are engaged in KM it is not an alternative
formed by combinations of mental objects
or a luxury. It is a necessity driven by the
and links between them and allow us to
forces of competition, market place de-
sense, reason, plan, judge, and act.
mands, new operating and management
A practical example portrays how infor-
practices, and the availability of KM ap-
mation and knowledge differ. Consider the
proaches and information technology.
regular and supervisory control functions
for an automated factory as illustrated in
External Driving Forces
11
Most organizations operate in environ-
See Kao (1997).
12
ments that they cannot control. Their vi-
See for example Gardner (1983), Gardner (1985), Lakoff
(1987), Schank & Abelson (1977), and Wiig (1995).
ability and success are subject to external

7
Knowledge Management: An Emerging Discipline Rooted in a Long History

forces that they must live with and respond have emerged. Among these we find the
to as best they can to survive. Over the last following:
decades considerable external driving forces

Knowledge Information

Optimization and
Special Situation
Operating Strategies
Abnormal and Undesired
Operating Situations
Control Algorithms
to
Regulate Process
Routine and Normal
Knowledge Operation

Information
Process Dynamics KDD
and Knowledge Operating
Characteristics Discovery History
in Databases

Figure 3. Differences between Knowledge and Information in Process Control.


Ø Globalization of business and in- their success and in turn are needed
ternational competition. Interna- to serve their own customers better.
tional commerce has increased. Prod- Everywhere there are requirements
ucts that were created within one for new features, better fulfillment of
company or country are now assem- individual needs, higher quality, and
bled from parts from multiple sources quicker response–all at an increas-
world-wide. Where before there were ingly feverish pace. To survive in this
few product alternatives, there now environment, enterprises must per-
are many. Production and service ca- form on par with–or better–than its
pabilities that were available from competition by improving their under-
limited sources in advanced countries, standing of customer needs and capa-
are frequently found in countries that bilities.
were considered developing and inca- Ø Sophisticated competitors. Com-
pable of sophisticated work. These de- peting organizations are constantly
velopments have led to cut-throat implementing innovations in prod-
competition–where only the most ef- ucts, services, and practices. They also
fective will survive by being effective implement “discontinuous break-
in operations, marketing, and creation throughs” by adopting new technolo-
of products and services. gies and practices. To keep up, these
Ø Sophisticated customers. Custom- changes require constant learning to
ers have become more demanding. build competitive expertise.
They increasingly desire customized Ø Sophisticated Suppliers. Suppliers
products and services that support continue to improve their capabilities

8
Knowledge Management: An Emerging Discipline Rooted in a Long History

and can participate in creating and Ø Understanding of human cogni-


supporting innovations to deliver so- tive functions. People and their
phisticated products. To take advan- work behavior are at the center of the
tage of these opportunities, enter- effective enterprise. Therefore, it is
prises must understand new supplier important to incorporate better pro-
capabilities and how to integrate fessional understanding of cognitive
them with internal efforts, directions, aspects of how knowl-
and culture. edge–understanding, mental models,
and associations–affect decision
Internal Driving Forces making and performing knowledge-
intensive work when deciding how to
Within enterprises, developments of conduct KM.
many types have created opportunities for
managing knowledge better, and in some Ongoing Developments
cases differently. Examples of important Many developments are underway that
changes include: will affect KM further and some of these
Ø Bottlenecks in enterprise effec- include:
tiveness. Typically, enterprise effec-
tiveness is limited by restrictions in Ø Economics of Ideas. Innovations
flows of work, information, etc. Bot- and new, path-breaking ideas have
tlenecks have been removed–and relo- brought about knowledge-driven eco-
cated to other sites–through many nomic changes of societal signifi-
improvements: investments in tech- cance.13
nology and logistics; personnel work- Ø Information Management and
ing harder and longer; organized work Technology. Information-related
tasks and work flows; improved in- practices and capabilities are trans-
formation for decision making and forming the way business is con-
other work (more accurate, complete, ducted.
and timely); and increased intelligent Ø Cognitive Science. Our under-
automation of routine and simpler op- standing of how people function has
erational tasks. direct impact for how we manage
New requirements place demands knowledge.
on increased effectiveness and intelli- Ø Shifts in Bottlenecks. Under-
gent behavior. Bottlenecks have standing best practices and others’
moved from visible and tangible sites experiences provide information about
to knowledge-intensive work areas potential candidates for streamlining
require better understanding and ex- operations.
pertise.
Ø Customization Requirements for
Ø Increased technological capabili- Sophisticated Customers. Great
ties. New KM approaches are made opportunities are available by satis-
possible by advances in information fying unique customer demands on
management and technology and ap- reasonable terms.
plied AI. Examples include groupware
for collaborative work, knowledge en- Ø Sophisticated Competitors.
coding for knowledge bases, perform- Threats require agile behaviors and
ance support systems, natural lan- rapid learning to remain viable
guage understanding, and advanced
search engines.
13
Romer (1989) and Kelly (1996), op. cit.

9
Knowledge Management: An Emerging Discipline Rooted in a Long History

Ø Globalization. International busi- sights, emphases, and approaches. They


ness changes provide business oppor- also require new values, insights, and pri-
tunities and threats that must be un-
derstood to be managed. orities. What is more, they require a new
These, and other driving forces encourage focus on the role that knowledge and un-
companies to focus attention and efforts to derstanding play in the enterprise’s–and in
areas that provide greatest pay-back. In individuals’–ability to deliver quality work.
general, it requires delivering “more with Advanced KM now start to rely on new
less.” That, however, requires extensive approaches that integrates theoretical and
understanding and ability to build and abstract perspectives of epistemology and
maintain competitive IC in many areas. cognitive sciences with the pragmatic con-
siderations of expertise required to conduct
business and the technical directions of in-
What Is New?
formation management and technology.
KM practitioners recognize that KM has
Three additional conditions have also con-
brought new elements into the enterprise.
tributed to these developments. First of
Entirely new perspectives and activities are
these are AI and management sciences con-
introduced. Others are not new per sé, but
cerns for how people reason and think when
have taken on new roles. For example,
performing intellectual work and the effect
there is little new in the concepts behind
of knowledge and understanding to deliver
educating and training people to be able to
quality work.14 Second are learning theory,
deliver competent work. The same is true
social sciences, and psychological concerns
for many other KM-related activities. How-
for approaches to effective learning, team-
ever, perspectives, priorities, and purposes
work and collaboration, and for cognitive
are new.
styles.15 Third are advances in information
Most knowledge-based organizations re-
technology that allow extending KM prac-
alize that the largest part of their market
tices into new areas by building on ontolo-
value is their IC, not the sum of their finan-
gies, NLU, automated reasoning, and intel-
cial and tangible assets. They find that no
ligent agents.
one have specialized in understanding the
New understandings of how people make
mechanisms that govern the processes that
decisions have made it clear that previous
result in valuable IC. They also realize that
principles for managing knowledge may be
no one is responsible for maintaining and
misguided. It now is realized that most de-
improving the value of these large assets.
cisions are made based on “intuition”
What is new–certainly in the form of
(strong associations) rather than on delib-
broadly accepted management thrusts–are
erate and systematic reasoning.16 This has
the explicit, deliberate, and systematic ap-
considerable consequences for which
proaches to orchestrate KM efforts and to
knowledge people must possess and how
rely upon their results to achieve enterprise
they are supported to function effectively
objectives. From management’s point of
view, the perspectives, coordination, facili- 14
See Suchman (1995).
tation, and monitoring activities necessary 15
Gardner (1983) op.cit..
for active KM require new and different in- 16
See Bechara et al. (1997) and Klein (1998).

10
Knowledge Management: An Emerging Discipline Rooted in a Long History

and deliver quality work under various Ø Extensive experiences will spread
conditions. from many organizations about how
effective KM is organized, supported,
and facilitated. Obvious changes will
What May Lie ahead for Knowl- include placement and organization of
the KM effort itself, be it a Chief
edge Management? Knowledge Officer (CKO) or a distrib-
KM promotes development and applica- uted effort. Changes that deal with
tion of tacit, explicit, and embedded IC; that reorganization of work and the abol-
is, leveraging personal understanding, or- ishing of whole departments when
their responsibilities are integrated
ganizational action capabilities, and other
into other operations, will be preva-
intellectual assets to attain the enterprise’s lent but less apparent.
ultimate goals, such as ascertaining profit- Ø Management practices will change to
ability, ensuring long-term viability, or de- facilitate KM. Incentives will be in-
livering quality services. This perspective of troduced and disincentives eliminated
KM, and given its history, suggest that a to promote innovation, effective
knowledge exchange (“sharing”),
number of developments will take place in
learning, and application of best
coming years. They include: knowledge for work. Cultural drivers
Ø An area of increasing insight in the such as management emphasis and
role that understanding–or meaning- personal behaviors will be changed to
connected knowledge–and abstract create environments of trust and ef-
mental models play in intellectual forts to find root causes of problems
work. The 1990’s notion that “knowl- without assigning blame.
edge is actionable information” and Ø KM perspectives and considerations
similar early perspectives will be re- will be embedded in regular activities
placed by more detailed characteriza- throughout the enterprise. An exam-
tions of both personal and inanimate ple of how broadly KM may affect an
knowledge. Insights from cognitive re- organization is indicated in Figure 4.
search and business experiences with It highlights some separate and
deep knowledge will elucidate what, shared responsibilities for KM-related
and how, people must understand activities within research and devel-
how to handle complex challenges opment (R&D), human resources
competently. (HR), information management and
Ø Caused by KM’s importance, future technology (IM & IT), and a KM su-
practices and methods will be pur- pervisory function.
poseful, systematic, explicit, and de- Ø New practices will focus on combining
pendent upon advanced technology for understanding, knowledge, skills, and
knowledge capture and codification, attitudes (“KSAs”) when assembling
automated reasoning, natural lan- work teams or analyzing require-
guage understanding, and so on. ments for performing work.18 The em-
Overall, KM will become people- phasis on complementary work teams
centric since it is networking of com- will coincide with the movement to-
petent and collaborating people that wards virtual organizations where
makes successful organizations.17 many in-house teams will include ex-
ternal workers who are brought in for
17
See Terry Winograd (1988), Cannon-Bowers & Salas
18
(1999) op.cit., and Wellman (1999). Cannon-Bowers & Salas (1999), op.cit.

11
Knowledge Management: An Emerging Discipline Rooted in a Long History

limited periods to complement in- festation but is expected to increas-


house competencies for specific tasks. ingly involve self-employed external
The present use of consultants from knowledge workers.
large consulting houses is one mani-

Enterprise-Wide Knowledge Management


• Identify and Conceptualize Complementary Knowledge Processes across Departments and Other Silos
• Oversee Creation of Integrated Comprehensive Knowledge Capture and Transfer Program
• Align Knowledge Strategies and Tactics with Enterprise Direction
HR & • Create Knowledge-Related Capabilities Shared Across Enterprise
Competency-Based • Support Enterprise Strategy and Direction by Facilitating Effective Communication to All
HR Management • Facilitate and Monitor Knowledge Management-Related Activities and Programs

• Issue and Manage • Provide General Education and Training Programs


Personnel Policies • Institute Incentives to Motivate Personal Knowledge Creation, Sharing, and Use
• Conduct and Monitor • Coordinate and Govern "Integrated Learning Programs" (ILP)
Personnel Management • Understand legislation and determine the implications for Enterprise
• Provide General • Provide Metaknowledge to All Personnel
Personnel Relation Services

• Hire Personnel for Businesses • Establish Knowledge


• Assist in Personnel Evaluation Requirements for Quality Work • Operate Intranet
• Support Promotion Assessments • Conduct Succession Planning Personal Homepages • Build and Maintain Personnel
• Maintain Personnel Records • Conduct Specific Skill Training • Operate Knowledge-Related Data Bases
Personnel Evaluation
& Review System
• Plan and Manage R&D Operations • Determine R&D Agenda • Manage Corporate Memory • Create IT Infrastructure
• Develop New Intellectual Capital • Transfer Knowledge • Provide KDD Capabilities • Create KBS Development
• Build and Maintain Content to Points of Action Capabilities
Knowledge • Motivate Knowledge Creation
• Staff Collaborating Teams • Promote Knowledge Use
• Perform Quality Work • Renew and Improve Practices
• Provide on-the-Job Training
• Operate R&D Information • Build IT Systems
• Maintain, Renew, and Improve
Environment and IT Resources • Conduct Planning and Manage IT
Operating Facilities
• Deliver Business-Specific • Produce High Quality Information
Information Services

Research & Development Function


Information Management & Technology

Figure 4. Examples of Sole and Shared Responsibility KM Activities.


Ø Most organizations will create effec- knowledge-related functions such as:
tive approaches to transfer personal sourcing from internal and external
knowledge to structural IC to allow knowledge experts; knowledge cap-
better utilization and leveraging. Ex- ture, codification, and organization
ternal subject matter experts will lev- into repositories; deployment (e.g.,
erage and sell their expertise to many training and educational programs,
enterprises for continued use. 19 expert networks, and knowledge-
based systems [KBSs]); and functions
Ø Comprehensive approaches to create
where work is performed or knowl-
and conduct broad KM practices will
edge assets are sold, leased, or li-
become the norm. For example, de-
censed.
signing, implementing, and operating
comprehensive multi-mode knowledge Ø Education and knowledge support ca-
transfer programs will be common. 20 pabilities such as expert networks or
Such programs include systematic performance support systems (PSSs)
approaches to integrate primary will be matched to cognitive and
learning styles and dominant intelli-
gences.21 That will help workers per-
19
See Edvinson &Malone (1997), Stewart (1991), Stewart form more effectively. Highly effective
(1997), and Sveiby (1997).
20 21
Wiig (1995) p. 358 discusses such programs. See Kurtzman (1999).

12
Knowledge Management: An Emerging Discipline Rooted in a Long History

approaches to elicit and transfer deep retrieve and communicate knowledge


knowledge will be introduced to allow to end users.
experts to communicate understand- Realization that KM is the cornerstone of
ings and concepts and facilitate every knowledge-organization’s strategy
building corresponding concepts, asso-
ciations, and mental models by other will bring about:
practitioners.22 Ø New ways of working–collaboration,
Ø KM will be supported by many AI de- new ways of assembling expertise for
velopments. Some of these are intelli- special purposes.
gent agents; natural language under- Ø New roles for people management.
standing and processing functions; Ø New roles for training and education
reasoning strategies; and knowledge within the firm.
representations and ontologies23 that Ø New roles and methods for knowledge
will continue to be developed and, by capture, organization, automation and
providing greater capabilities, will be deployment.
relied on to organize knowledge and
facilitate application. Ø New focus for management science on
organization of work with knowledge
To create broad and integrated capabili- perspective, change management to
ties, most of the changes introduced by facilitate growth and innovation, and
these developments will not be stand-alone, on KM details.
but will be combined with other changes, Ø New focus for strategy setting on de-
many of which have foci different from KM. veloping knowledge- and IC-related
Increased specialization in enterprises to opportunities and associated devel-
opment of capabilities to realize and
work with various KM aspects: capitalize on the possibilities.
Ø On the Firm level: Expertise with em- As organizations develop their KM prac-
phasis on managing IC.
tice further, most enterprises after some
Ø On the middle management level:
Understanding the importance of time will pursue all four thrusts as part of
managing local investments in, and their overall KM strategy.
coordination and application of,
knowledge assets to meet operating The Changing Workplace
objectives.
We do expect the enterprise to change.
Ø On the KM level: Enterprise-wide co- Advances in KM practices will continue to
ordination and facilitation of KM-
related functions, capabilities, and ac- modify the workplace–sometimes drasti-
tivities. cally. Visible changes will be evident by in-
Ø On the knowledge-operational level: creased application of, and reliance on,
Local hands-on capabilities to obtain technology for cognitive support compared
and organize knowledge, automate to the information focus of the 1980s and
knowledge and build knowledge-based 1990s. Less visible changes may be more
support and educational systems, and
important since they will improve the way
people work with their minds and thereby
alleviate bottlenecks. The changes that
22
Wiig & Wiig (1999) discuss some existing approaches
people will experience in the workplace in-
and the reasoning behind them.
23
For an excellent discussion of ontologies and their role in
clude:
KM, see Chandrasekaran et al (1999).

13
Knowledge Management: An Emerging Discipline Rooted in a Long History

Ø Emphasis on using interdisciplinary applied to the work at hand. Figure 5


teams with focus on best mix of com- shows an example of the proficiency
petencies and understanding to be profile of such a team.

In-House Understanding of
In-House
Management-Corp Strategy Corporate Project Leader
Specialist Strategy and
Direction Corporate
Desired
Customer Service E Policies
Paradigm and
P Practices

External C In-House
Subject Matter Expert Project Content
(SME) A Specialist
Customer Project
Service System B Management
Implementation and System
and Start-Up I Implementation

External In-House
Project Staff Marketing - Customer
Specialist Specialist
Analysis &
Customer Service Design of
Models and People/Technology
Their Efficacies Systems
LEGEND
I - Ignorant Customer Market Place;
B - Beginner Support System Customer Needs
A - Advanced Beginner Operations and Behaviors
C - Competent Performer
P - Proficient Performer Effective Project Team Knowledge Profile
E - Expert

Figure 5. Knowledge Profile Example of a Virtual Team with Six Members.


Ø Temporary nature of many employ- Ø Increased personal understanding by
ment situations. Emphasis will be employees of how they personally will
placed on assembling short-lived benefit from delivering effective work.
teams with complementing knowledge Ø Greater job security and less hesita-
profiles to address specific tasks. Peo- tion to undertake complex tasks after
ple will improve their personal exper- employees build increased
tise to maintain and enhance personal metaknowledge and professional or
competitiveness. craft knowledge about work for which
Ø Good understanding of the importance they are responsible.
of relying upon strong mental associa- Ø Increased reliance on automated in-
tions and conceptual knowledge to telligent reasoning to support work.
guide direction of work. For example, when confronted with
Ø Better understanding by knowledge complex situations, automation may
workers of how to implement enter- assist knowledge workers by identi-
prise strategy by the small decisions fying and making available relevant
and acts that are part of their daily support information and knowledge,
work. making preliminary sense of the
Ø Greater willingness to collaborate situation, and locating and presenting
with associates and coordinate with suggestions for how it should be han-
other activities. dled.

14
Knowledge Management: An Emerging Discipline Rooted in a Long History

Ø Intelligent agents deployed internally take advantage of the new capabilities.


and externally will offload “data de- Even so, with increased responsibilities,
tective work” now required to locate
and evaluate information required in knowledge workers are expected to feel
many knowledge worker situations more confident and have better under-
ranging from plant operators to ad standing of work to be done. They also will
hoc strategic task forces. receive better knowledge support and more
Ø New organization of the physical work jobs will be done right the first time, adding
environment will change the way peo- to confidence and job satisfaction on the in-
ple work together and allow greater
richness and effectiveness of interac- side, and better market acceptance on the
tion. New work environments will be outside.
designed to foster knowledge ex- The nature of work is changing. Already,
change through networking and col- we have learned to prepare our workforce
laboration and facilitate innovations
better, automate many routine functions,
through serendipity.
and organize work to deliver higher quality
Ø Improved understanding of different
levels of work complexities and what products and services more effectively.
that means for knowledge require- There is a shift towards more complex work
ments. A useful categorization of work as outlined in Figure 6. There are many
complexity consists of six levels: identifiable targets for intelligent automa-
1. Routine worktasks (simple, repeti- tion in routine areas and potentials for ap-
tive, and well understood). plication of greater understanding and ex-
2. Logical or less common variations pertise in more demanding work. Advanced
(transformations) of routine situa- technology and experiences by sophisticated
tions. organizations motivate continued refine-
3. Complex, yet expected extensions of ment of work in general. Hence, to stay
known routines integrated with ex- ahead of competitors, enterprises ask their
ternal factors. personnel to engage in increasingly complex
4. Unexpected challenges (conditions), work to deliver better products and serv-
but with a mix of routines and ex- ices. Service paradigms become more com-
ternal factors. plex.
5. Totally unexpected situations and
non-routine challenges, yet within Towards a Knowledge Management
the larger job scope. Discipline
6. Unusual challenges outside job The changes to manage knowledge ex-
scope. plicitly and in detail place great demands
In total, KM will lead to less effort to de- on supporting disciplines. They range from
liver present day service paradigms. How- cognitive sciences and educational methods
ever, as Figure 6 indicates, work is chang- to management sciences and economics to
ing to satisfy the ever-increasing market AI and information management and tech-
requirements for new features and capabili- nology. Enterprises pay new attention to
ties in products and services. Successful or- maintaining and enhancing the competitive
ganizations will provide better script and power of their IC. They realize that man-
schema knowledge and work will expand to

15
Knowledge Management: An Emerging Discipline Rooted in a Long History

aging IC is complex and extensive and re- reality. As indicated in Figure 7, the disci-
quires expertise and management atten- plines and other areas that KM relies upon
tion. The new profession of KM specialists, include:
from several academic fields, is becoming a

Relative Conventional Distribution of Work


Frequency of Future Distribution of Work
Work

Targets for
Intelligent
Potentials for
Automation
Delivering Work
Requiring
Greater Knowledge

1. Routine 2. Logical or less 3. Complex, yet 4. Unexpected 5. Totally 6. Unusual Complexity of


(simple, common expected challenges unexpected challenges Knowledge-Intensive
repetitive, and variations extensions of (conditions), situations and outside and Other Work
well understood) (transformations) routines integrated but with a mix non-routine job scope
of with of routines and challenges,
Routine Situations external factors external factors yet within the
larger job scope

Figure 6. Changes Will Make Work More Complex.

Disciplines in Support of KM Ø Knowledge Engineering to elicit and


codify knowledge.
Ø Business Theory & Economics to cre-
ate strategies, determine priorities, Ø AI to automate routine and assist
and evaluate progress. knowledge-intensive work with rea-
soning and other high-level functions.
Ø Cognitive Sciences to understand how
best to support knowledgeworkers’ Ø Management Sciences to optimize op-
mental functioning required by their erations and integrate KM efforts
work settings. with other enterprise efforts.
Ø "Cybrary" Sciences to bring knowl- Ø Social Sciences to provide KM-related
edge-related services to everyone.24 motivations, people processes, and
cultural environments.
Ø Ergonomics to create effective and ac-
ceptable work environments. General Principles for Effective KM
Ø Information Sciences to build sup- Ø Systematic and explicit KM to maxi-
porting infrastructure and special mize the effectiveness of the enter-
knowledge-related capabilities. prise business drivers.
Ø Knowledge-Based vision to provide
24
the long-term basis for a broad KM
“Cybrarians” combine expertise from library science and practice.
cyberspace to obtain and organize information and
knowledge.

16
Knowledge Management: An Emerging Discipline Rooted in a Long History

Information
People-Centric Intellectual Enterprise
Management & IT
Focus Capital Focus Effectiveness Focus
Focus

- Business Theory & Economics


- Cognitive Sciences
- "Cybrary" Sciences
- Ergonomics
- Information Sciences
- Knowledge Engineering & AI
- Management Sciences Disciplines Knowledge
- Social Sciences Historic Efforts to Understand:
Management
- The Nature and Role of
Practices
Knowledge (Epistemology)
- Manage Knowledge Systematically & - Role of Knowledge in Human
Explicitly Behavior (Psychology)
- Create Knowledge-Based Vision - Economics
- Identify Knowledge Requirements - Work, and Its Organization
- Determine Knowledge TOWS
- Align Knowledge Efforts & Enterprise Principles
Direction
- Systematize Knowledge-Related Efforts
- Implement with Priority and Purpose The Emerging
Intellectual Roots
Knowledge of Knowledge
Management Management
- KM-Centered Strategy
Discipline
- IC Management
- IC-Based Evaluations & Administration
- Environment for Innovation
- Learning Organization Approach Key Elements
- IT-Based Infrastructure 20th Century Efforts:
- IT-Based Knowledge Discovery (KDD) - Rationalization of Work (Taylor)
- Knowledge Automation (KBSs) - Total Quality Management
- Cognitive Sciences & Psychology
Intellectual and - Artificial Intelligence
Pragmatic - Management Sciences
- Documented Knowledge Management and/or Trajectory - Learning Organization
Intellectual Capital Strategy - Business Theory
- Documented Knowledge Landscape Map - Sociology
- Senior Management Reliance on KM
- Enterprise-Wide KM Practices
- Enterprise-Wide Coordination of Knowledge- Land Marks
Related Efforts External Driving Forces
- KM-Supportive Infrastructure - Globalization of business and Ongoing Developments:
- KM-Supportive Incentive Programs international competition - Economics of Ideas
- Knowledge Vigilant Enterprise Focus - Sophisticated customers - IM & IT
- Sophisticated competitors - Cognitive Science
- Sophisticated Suppliers - Shifts in Bottlenecks
Internal Driving Forces - Sophisticated Customers
Basic & Fundamental - Bottlenecks in enterprise Require Customization
Need to Organize & effectiveness - Sophisticated Competitors
Manage Knowledge - Increased technological capabilities - Globalization
- Understanding of human cognitition

Figure 7. A Perspective of the Emerging Knowledge Management Discipline.


Ø Identification of knowledge require- Ø Implementation of KM with priority
ments for individual functions to de- and purpose to minimize waste and
termine which knowledge to make maximize KM value.
available.
Key Elements of KM Practices
Ø Determination of Knowledge TOWS
(Threats, Opportunities, Weaknesses, Ø KM-Centered strategy to achieve ef-
Strengths) to set priorities and de- fective, integrated KM practice and
velop needed KM tasks. coordinate KM activities.
Ø Alignment of knowledge efforts & en- Ø Focused IC management to maximize
terprise direction to realize the best overall value of building and exploit-
value of the KM practice. ing IC.
Ø Systematized knowledge-related ef- Ø IC-Based evaluations and administra-
forts to make the KM practice effec- tion to optimize local IC investments,
tive. utilization, and caretaking.

17
Knowledge Management: An Emerging Discipline Rooted in a Long History

Ø Provision of environment for support Ø Enterprise-Wide Coordination of


of innovation to build competitive IC. Knowledge-Related Efforts indicating
Ø Learning Organization Approach to sophistication of KM involvement.
build competitive knowledge faster Ø KM-Supportive Infrastructure indi-
than competition. cating potential efficiency of KM prac-
Ø IT-Based Infrastructure to provide ef- tice.
fective support for KM. Ø KM-Supportive Incentive Programs
Ø IT-Based Knowledge Discovery (KDD) indicating realization that KM is peo-
to learn maximally from the past. ple-centric.
Ø Knowledge Automation (KBSs) to Ø Knowledge Vigilance indicating reli-
streamline operations. ance on knowledge and IC for success
and viability.
Key Elements of KM Practices
Ø KM-Centered Strategy to drive to- Knowledge Management Must Jus-
wards effective, integrated KM prac-
tice and coordinate KM activities. tify Its Existence
Ø IC Management to maximize overall Most organizations still pursue KM with-
value of building and exploiting IC. out ascertaining that hard business reasons
Ø IC-Based Evaluations and Admini- require it. This is changing–and for good
stration to optimize local IC invest- reasons. The premises are that competitive
ments, utilization, and caretaking. knowledge backed by deliberate KM are
Ø Provide Environment for Innovation important for sustained success and viabil-
to build competitive IC. ity and that the enterprise value largely
Ø Learning Organization Approach to comes from IC. It may therefore be irre-
build competitive knowledge faster
than competition. sponsible to pursue KM without having ex-
plicit understanding of how the efforts will
Ø IT-Based Infrastructure to provide ef-
fective support for KM. be of value. There are several reasons for
Ø IT-Based Knowledge Discovery (KDD) establishing the effects and benefits of po-
to learn maximally from the past. tential KM actions. As the example in Fig-
Ø Knowledge Automation (KBSs) to ure 8 indicates, the immediate effects, fol-
streamline operations. lowed by intermediate and final effects of
Landmarks for Developing KM Prac- the KM effort should be explicated for five
tices major purposes:
Ø Documented KM and/or Intellectual Ø To support KM planning, decision
Capital Strategy indicating the extent making, and priority setting, and to
and maturity of KM preparation. obtain estimates of magnitude and
timeframe of potential benefits, costs,
Ø Documented Knowledge Landscape and risks.
Map indicating understanding of
knowledge TOWS. Ø To delineate the nature of expected
and desired KM-related events and
Ø Senior Management Reliance on KM agree with stakeholders about suit-
indicating enterprise commitment. able descriptions of expected events
Ø Enterprise-Wide KM Practices indi- and their benefits or associated risks,
cating extent to which KM is pursued and provide a graphical (visual)
in practice. framework to support the collabora-
tive KM planning process.

18
Knowledge Management: An Emerging Discipline Rooted in a Long History

Ø To enable the desired outcomes from and provide sufficient understanding


KM efforts, delineate the various ef- of the anticipated events by outlining
fects that are sought or expected with expectations over time in sufficient
identification of ancillary activities detail.
that must be considered. The proposed KM efforts–and later, KM
Ø To promote understanding of desired implementation–need to be outlined in
effects to support implementation
some detail to support these purposes.
over the life-time of the process by de-
scribing the events and associated
characteristics.
Ø To monitor the KM-influenced event
process to manage it appropriately,

Greater & Greater customer Increased


Knowledgeable products/services Market
easier access people – motivated product/service
value to make Image
to knowledge to use knowledge understanding
KBS to Support customer succeed
Production Line
Workers Improved Improved reuse of Products/services Increased Enterprise
understanding of technology & with better fit to customer Profitability
relevant expertise lessons-learned customer needs satisfaction
Elicit & Codify
Key Worker
Expertise
Increased Lower operating Higher quality Increased product/ Enterprise
knowledge costs – fewer products/services services demand Viability
sharing & creation operating errors Increased orders

More effective Faster responses Improved relations Employee,


Quicker decisions
renewal & removal Less time from Quicker delivery of between customer Community, &
of knowledge design to product products/services & enterprise Society Relations

KBS-Related Internal Benefits & EffectsImproved Deliverables External Benefits & Reaction
Knowledge KM Effects - Operations Focus - Product & Service Focus -- Customer & Market Focus -
Management Bottom-Line
Intermediate Effects and Benefits Benefits
Activities

Figure 8. Knowledge Management Activities Are Expected to Progress


through Internal and External Events to Deliver Bottom-Line Benefits.
ences will provide methods for managing IC
Concluding Perspectives renewal, priorities, and investments. AI
KM will continue to evolve and draw and advanced information technology will
upon support from many theoretical and increase abilities to supplant and support
methodological areas. For instance, cogni- complex work tasks. New directions such as
tive sciences will increase understanding of “Economics of Ideas,” “Economics of
decision making, cognitive support needed Chance,” and Chaos Theory will provide
for work, effective learning, and skills new perspectives and new guidelines for
transfer processes. Research on the nature effective management in the knowledge so-
of intellectual work will explicate how dif- ciety. New models for Theory of the Firm
ferent kinds of knowledge is used, should be will elucidate new tactical values, princi-
possessed, and accessed. Management sci- ples, and judgments.

19
Knowledge Management: An Emerging Discipline Rooted in a Long History

However, much needs to be done. We do thriving!” Human history is not a history of


not understand much about knowledge. cleverness and increasing acuity of vision.
Our understanding of the cognitive aspects KM is not a result of people having become
of human functioning (as related to decision smarter, only more knowledgeable by
masking and knowledge-intensive work) is building on powerful concepts inherited
marginal. There is not an accepted eco- from prior generations.
nomic “theory of knowledge” that is appli-
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