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Learning Objectives

11-1

Define knowledge and describe the
different types of knowledge
Describe the characteristics of knowledge
management
Describe organizational learning and its
relationship to knowledge management
Describe the knowledge management
cycle
Describe the technologies that can be
used in a knowledge management system

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Learning Objectives


11-2

Describe different approaches to
knowledge management
Describe the chief knowledge officer and
others involved in knowledge
management
Describe the role of knowledge
management in organizational activities
Describe the different ways of evaluating
intellectual capital in an organization
Describe how KMS are implemented

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives

11-3

Describe the roles of technology,
people, and management in knowledge
management
Describe the benefits and drawbacks of
knowledge management initiatives
Describe how knowledge management
can revolutionize the way an
organization functions
The future of KN: Web 2.0 and beyond…

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Inc. sharing. Copyright © 2011 Pearson Education. It refers to a multi-disciplined approach to achieving organisational objectives by making the best use of knowledge. developing. Publishing as Prentice Hall . and effectively using organisational  knowledge.Knowledge management   11-4 Knowledge management (KM) is the process of capturing.

Inc.Opening Vignette: “MITRE Knows What It Knows Through Knowledge Management” Company background Problem description Proposed solution Results Answer and discuss the case questions 11-5 Copyright © 2011 Pearson Education. Publishing as Prentice Hall .

Inc. Publishing as Prentice Hall .Opening Vignette: MITRE’s View to the KM Process 11-6 Copyright © 2011 Pearson Education.

It involves collecting. Publishing as Prentice Hall . Inc.Introduction to Knowledge Management  Knowledge management concepts and definitions  Knowledge management The active management of the expertise in an organization. categorizing. and disseminating knowledge  Intellectual capital The invaluable knowledge of an organization’s employees 11-7 Copyright © 2011 Pearson Education.

Publishing as Prentice Hall . perceived. “knowledge is information in action” 11-8 Copyright © 2011 Pearson Education. Inc. In a knowledge management system. discovered. relevant. inferred. or familiarity acquired through education or experience anything that has been learned. and actionable understanding. or understood. awareness.Introduction to Knowledge Management  Knowledge is    information that is contextual.

Inc. Publishing as Prentice Hall .Introduction to Knowledge Management 11-9 Copyright © 2011 Pearson Education.

. Inc. Information is organized or processed data that is timely (i.e. Knowledge is information that is contextual. measurements. inferences from the data are drawn within the time frame of applicability) and accurate (i. Copyright © 2011 Pearson Education.e. and actionable. with regard to the original data). and statistics. Data are facts. relevant. Publishing as Prentice Hall . which is also defined in this answer.    11-10 Knowledge and data are related through information..

leakage and the need to refresh Uncertain value Uncertain value of sharing Knowledge-based economy The economic shift from natural resources to intellectual assets Copyright © 2011 Pearson Education. Publishing as Prentice Hall . Inc.Introduction to Knowledge Management  Characteristics of knowledge      11-11 Extraordinary leverage and increasing returns Fragmentation.

and technical material (data. Publishing as Prentice Hall . software. policies. transferred. etc.) Easily documented. documents. Inc. rational and technical information in manuals. software. procedures.   11-12 Knowledge that deals with objective. rational.Introduction to Knowledge Management  Explicit and tacit knowledge  Explicit (leaky) knowledge  Explicit knowledge is knowledge that has been or can be articulated. documents. taught and learned Examples… Copyright © 2011 Pearson Education. codified. and even stories (though this last is less common in business). It deals with objective. and stored. procedures.

Some tacit knowledge could be made explicit if the person holding the knowledge recognized the value of doing so. Publishing as Prentice Hall . It is often highly personal and difficult to formalize. teach and learn Involves a lot of human interpretation Copyright © 2011 Pearson Education. cognitive and experiential learning. and experiential learning It is highly personal and hard to formalize Hard to document. Capturing and sharing tacit knowledge is a more difficult knowledge management task than is capturing and sharing explicit knowledge. transfer.    11-13 Knowledge that is usually in the domain of subjective. but in other cases it is difficult to codify (such as knowing how to ride a bicycle). Inc. cognitive. and deals with subjective.” as opposed to the “know-what” and “know-why” of explicit knowledge.Introduction to Knowledge Management  Explicit and tacit knowledge  Tacit (embedded) knowledge  Tacit knowledge has been described as “know-how.

Introduction to Knowledge Management  11-14 Knowledge management systems (KMS) A system that facilitates knowledge management by ensuring knowledge flow from the person(s) who know to the person(s) who need to know throughout the organization. Publishing as Prentice Hall . Inc. knowledge evolves and grows during the process Copyright © 2011 Pearson Education.

Organizational Learning and Transformation   11-15 Learning organization An organization capable of learning from its past experience. Inc. Publishing as Prentice Hall . implying the existence of an organizational memory and a means to save. and share it through its personnel Organizational memory Repository of what the organization “knows” Copyright © 2011 Pearson Education. represent.

Inc. Publishing as Prentice Hall .Organizational Learning and Transformation  Organizational learning      11-16 Development of new knowledge and insights that have the potential to influence organization’s behavior The process of capturing knowledge and making it available enterprise-wide Need to establish corporate memory Modern IT helps… People issues are the most important! Copyright © 2011 Pearson Education.

Organizational
Learning and Transformation

Organizational culture
The aggregate attitudes in an
organization concerning a certain issue
(e.g., technology, computers, DSS)



11-17

How do people learn the “culture”?
Is it explicit or implicit?
Can culture be changed? How?
Give some examples of corporate culture:
Microsoft, Google, Apple, HP, GM, …

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Organizational
Learning and Transformation

11-18

Why people don’t like to share knowledge:

Lack of time to share knowledge and time to
identify colleagues in need of specific knowledge

Fear that sharing may jeopardize one’s job security

Low awareness and realization of the value and
benefit of the knowledge others possess

Dominance in sharing explicit over tacit knowledge

Use of a strong hierarchy, position-based status,
and formal power

Insufficient capture, evaluation, feedback,
communication, and tolerance of past mistakes

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Organizational
Learning and Transformation

11-19

Why people don’t like to share knowledge:

Differences in experience and education levels

Lack of contact time and interaction between
knowledge sources and recipients

Poor verbal/written communication and
interpersonal skills

Age, gender, cultural and ethical defenses

Lack of a social network

Ownership of intellectual property

Lack of trust in people because they may misuse
knowledge or take unjust credit for it

Perceived lack of accuracy/credibility of
knowledge

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Inc. 11-20 To make knowledge visible To develop a knowledge-intensive culture To build a knowledge infrastructure Copyright © 2011 Pearson Education.Knowledge Management Activities  Knowledge management initiatives and activities  Most knowledge management initiatives have one of three aims: 1. Publishing as Prentice Hall . 3. 2.

or routines Four modes of knowledge creation:        11-21 Socialization :Tactic to Externalization Internalization Combination Analytics-based knowledge creation? Copyright © 2011 Pearson Education.Knowledge Management Activities Knowledge creation is the generation of new insights. ideas. Inc. Publishing as Prentice Hall .

Publishing as Prentice Hall . information and knowledge are not considered organizational resources to be shared but individual competitive weapons to be kept private Copyright © 2011 Pearson Education.Knowledge Management Activities Knowledge sharing    11-22 Knowledge sharing is the willful explication of one person’s ideas. insights. experiences to another individual either via an intermediary or directly In many organizations. Inc.

Publishing as Prentice Hall .Knowledge Management Activities Knowledge seeking    11-23 Knowledge seeking (knowledge sourcing) is the search for and use of internal organizational knowledge Lack of time or lack of reward may hinder the sharing of knowledge or knowledge seeking Copyright © 2011 Pearson Education. Inc.

Publishing as Prentice Hall .Approaches to Knowledge Management  Process approach to knowledge management attempts to codify organizational knowledge through formalized controls. processes and technologies   Practice approach focuses on building the social environments or communities of practice necessary to facilitate the sharing of tacit understanding  11-24 Focuses on explicit knowledge and IT Focuses on tacit knowledge and socialization Copyright © 2011 Pearson Education. Inc.

Publishing as Prentice Hall .Approaches to Knowledge Management  Hybrid approaches to knowledge management  Hybrid at 80/20 to 50/50 11-25   The practice approach is used so that a repository stores only explicit knowledge that is relatively easy to document Tacit knowledge initially stored in the repository is contact information about experts and their areas of expertise Increasing the amount of tacit knowledge over time eventually leads to the attainment of a true process approach Copyright © 2011 Pearson Education. Inc.

Inc. demand-driven KM Activity 11-26 Copyright © 2011 Pearson Education.Knowledge Management A Demand Led Business  Supply-driven vs. Publishing as Prentice Hall .

the best methods for solving problems. Similar in nature to a database. Inc. but generally text-oriented Copyright © 2011 Pearson Education.Approaches to Knowledge Management   11-27 Best practices In an organization. Publishing as Prentice Hall . These are often stored in the knowledge repository of a knowledge management system Knowledge repository is the actual storage location of knowledge in a knowledge management system.

A Comprehensi ve View to Knowledge Repository 11-28 Approaches to Knowledge Management Copyright © 2011 Pearson Education. Inc. Publishing as Prentice Hall .

Publishing as Prentice Hall . Inc.Approaches to Knowledge Management  Developing a knowledge repository   11-29 Knowledge repositories are developed using several different storage mechanisms in combination The most important aspects and difficult issues are making the contribution of knowledge relatively easy for the contributor and determining a good method for cataloging the knowledge Copyright © 2011 Pearson Education.

Publishing as Prentice Hall . Create knowledge 2. Inc. Refine knowledge 4. Capture knowledge 3. Store knowledge 5. Manage knowledge 6.Information Technology (IT) in Knowledge Management The KMS cycle   11-30 KMS usually follow a six-step cycle: 1. Disseminate knowledge Copyright © 2011 Pearson Education.

Publishing as Prentice Hall .Information Technology (IT) in Knowledge Management The Cyclic Model of Knowledge Management 11-31 Copyright © 2011 Pearson Education. Inc.

Publishing as Prentice Hall .Information Technology (IT) in Knowledge Management Components of KMS    11-32 KMS are developed using three sets of core technologies: 1. Communication 2. Inc. Storage and retrieval Technologies that support KM  Artificial intelligence  Intelligent agents  Knowledge discovery in databases  Extensible Markup Language (XML) Copyright © 2011 Pearson Education. Collaboration 3.

g. Inc..Information Technology (IT) in Knowledge Management  Artificial intelligence  AI methods used in KMS:     11-33 Assist in and enhance searching knowledge Help for knowledge representation (e. Publishing as Prentice Hall . ES) Help establish knowledge profiles of individuals and groups Help determine the relative importance of knowledge when it is contributed to and accessed from the knowledge repository Copyright © 2011 Pearson Education.

Inc. Publishing as Prentice Hall . documents. determine meaningful relationships and rules Identify patterns in data (usually through neural networks and other data mining techniques) Forecast future results by using data/knowledge Provide advice directly from knowledge by using neural networks or expert systems Provide a natural language or voice command– driven user interface for a KMS Copyright © 2011 Pearson Education. and databases to perform knowledge discovery.Information Technology (IT) in Knowledge Management  AI methods used in KMS:      11-34 Scan e-mail.

com for examples Combined with enterprise knowledge portal to proactively disseminate knowledge Copyright © 2011 Pearson Education. gentia. Inc. Publishing as Prentice Hall .com.Information Technology (IT) in Knowledge Management  Intelligent agents   Intelligent agents are software systems that learn how users work and provide assistance in their daily tasks They are used to elicit and identify knowledge   11-35 See ibm.

Publishing as Prentice Hall .a. or a related procedure to establish (or create) knowledge from large databases  11-36 a.Information Technology (IT) in Knowledge Management  Knowledge discovery in databases (KDD) A machine learning process that performs rule induction.k. Inc. Data Mining (and/or Text Mining) Copyright © 2011 Pearson Education.

Similar to data warehouses Copyright © 2011 Pearson Education. generally enterprise-wide repositories of knowledge created by employing knowledge-discovery techniques.Information Technology (IT) in Knowledge Management   11-37 Model marts Small. Publishing as Prentice Hall . Inc. Similar to data marts Model warehouses Large. generally departmental repositories of knowledge created by employing knowledge-discovery techniques on past decision instances.

Information Technology (IT) in Knowledge Management  Extensible Markup Language (XML)   Web 2. Publishing as Prentice Hall . Inc.0  11-38 XML enables standardized representations of data structures so that data can be processed appropriately by heterogeneous information systems without case-by-case programming or human intervention The evolution of the Web from statically disseminating information to collaboratively creating and sharing information Copyright © 2011 Pearson Education.

Publishing as Prentice Hall . Inc.KM System Implementation  Knowledge management products and vendors   Knowware Technology tools (software/hardware products) that support knowledge management Software development companies / vendors    11-39 Collaborative computing tools Knowledge servers Enterprise knowledge portals (EKP) An electronic doorway into a knowledge management system… Copyright © 2011 Pearson Education.

retrieval. Publishing as Prentice Hall . Inc. and presentation  Content management systems (CMS) An electronic document management system that produces dynamic versions of documents. manipulation. including capture. and automatically maintains the current set for use at the enterprise level Copyright © 2011 Pearson Education.KM System Implementation  11-40 Software development companies / vendors  Electronic document management (EDM) A method for processing documents electronically. storage.

Inc. Publishing as Prentice Hall .KM System Implementation  Software development tools      11-41 Knowledge harvesting tools Search engines Knowledge management suites Knowledge management consulting firms Knowledge management ASPs Copyright © 2011 Pearson Education.

Publishing as Prentice Hall . Inc.KMS Implementation  Integration of KMS with other business information systems       11-42 With DSS/BI Systems With AI With databases and information systems With CRM systems With SCM systems With corporate intranets and extranets Copyright © 2011 Pearson Education.

Publishing as Prentice Hall .Roles of People in Knowledge Management  Chief knowledge officer (CKO) The person in charge of a knowledge management effort in an organization        11-43 Sets KM strategic priorities Establishes a repository of best practices Gains a commitment from senior executives Teaches information seekers how to better elicit it Creates a process for managing intellectual assets Obtain customer satisfaction information Globalizes knowledge management Copyright © 2011 Pearson Education. Inc.

Roles of People in Knowledge Management  Skills required of a CKO include:        11-44 Interpersonal communication skills Leadership skills Business acumen Strategic thinking Collaboration skills The ability to institute effective educational programs An understanding of IT and its role in advancing knowledge management Copyright © 2011 Pearson Education. Inc. Publishing as Prentice Hall .

Roles of People in Knowledge Management  The CEO. Publishing as Prentice Hall . other chief officers. Inc. and managers   The CEO is responsible for championing a knowledge management effort The officers make available the resources needed to get the job done     11-45 CFO ensures that the financial resources are available COO ensures that people begin to embed knowledge management practices into their daily work processes CIO ensures IT resources are available Managers also support the KM efforts by providing access to sources of knowledge Copyright © 2011 Pearson Education.

7 as an example of how Xerox successfully improved practices and cost savings through CoP Copyright © 2011 Pearson Education. Publishing as Prentice Hall . often self-organized for managing knowledge in a knowledge management system  11-46 See Application Case 11. Inc.Roles of People in Knowledge Management  Community of practice (CoP) A group of people in an organization with a common professional interest.

Inc.Roles of People in Knowledge Management  KMS developers    KMS staff  11-47 The team members who actually develop the system Internal + External Enterprise-wide KMS require a fulltime staff to catalog and manage the knowledge Copyright © 2011 Pearson Education. Publishing as Prentice Hall .

Ensuring the Success of Knowledge Management Success stories of knowledge management Efforts Implementing a good KM strategy can:     11-48 Reduce…  loss of intellectual capital  costs by decreasing the number of times the company must repeatedly solve the same problem  redundancy of knowledge-based activities Increase…  productivity  employee satisfaction Copyright © 2011 Pearson Education. Inc. Publishing as Prentice Hall .

6. Creating a knowledge-driven corporate culture Developing knowledge workers through leadership Fostering innovation Maximizing enterprise intellectual capital Creating an environment for collaborative knowledge sharing Facilitating organizational learning Delivering value based on stakeholder knowledge Transforming enterprise knowledge into stakeholders’ value 2. 4. 11-49 Copyright © 2011 Pearson Education. 5. Publishing as Prentice Hall . 3.Ensuring the Success of Knowledge Management MAKE: Most Admired Knowledge Enterprises Efforts “Annually identifying the best practitioners of KM”   Criteria (performance dimensions): 1. 8. 7. Inc.

4. McKinsey & 10. PricewaterhouseCoope KM” Company rs  2008 Winners: 2. Inc. 15. 5. 3. 18. 17. 11-50 9. 6. 7. Publishing as Prentice Hall . 14. Google Royal Dutch Shell Toyota Wikipedia Honda Apple Fluor Microsoft 11. 16. 8. 12. Ernst & Young IBM Schlumberger Samsung Group BP Unilever Accenture … Copyright © 2011 Pearson Education.Ensuring the Success of Knowledge Management  MAKE: Most Admired Knowledge Efforts Enterprises “Annually identifying the best practitioners of 1. 13.

Publishing as Prentice Hall . Inc. critical business problems in seconds Copyright © 2011 Pearson Education.Ensuring the Success of Knowledge Management  Useful applications of KMS Efforts  Finding experts electronically and using expert location systems  11-51 Expert location systems (know-who) Interactive computerized systems that help employees find and connect with colleagues who have expertise required for specific problems—whether they are across the county or across the room—in order to solve specific.

the value and benefits of the system become apparent Copyright © 2011 Pearson Education.Ensuring the Success of Knowledge Management  Knowledge management valuation Efforts  Financial metrics for knowledge management valuation   11-52 Focus knowledge management projects on specific business problems that can be easily quantified When the problems are solved. Inc. Publishing as Prentice Hall .

Ensuring the Success of Knowledge Management  Knowledge management valuation Efforts  Nonfinancial metrics for knowledge management valuation—new ways to view capital when evaluating intangibles:       11-53 Customer goodwill External relationship capital Structural capital Human capital Social capital Environmental capital Copyright © 2011 Pearson Education. Inc. Publishing as Prentice Hall .

Publishing as Prentice Hall .Ensuring the Success of Knowledge Management  Causes of knowledge management Efforts failure     11-54 The effort mainly relies on technology and does not address whether the proposed system will meet the needs and objectives of the organization and its individuals Lack of emphasis on human aspects Lack of commitment Failure to provide reasonable incentive for people to use the system… Copyright © 2011 Pearson Education. Inc.

flexible knowledge structure to match the way the organization performs work and uses knowledge Copyright © 2011 Pearson Education. Inc.Ensuring the Success of Knowledge Management  Factors that lead to knowledge Efforts management success    11-55 A link to a firm’s economic value. to demonstrate financial viability and maintain executive sponsorship A technical and organizational infrastructure on which to build A standard. Publishing as Prentice Hall .

Ensuring the Success of Knowledge Management  Factors that lead to knowledge Efforts management success     11-56 A knowledge-friendly culture that leads directly to user support A clear purpose and language. to encourage users to buy into the system A change in motivational practices. to create a culture of sharing Multiple channels for knowledge transfer Copyright © 2011 Pearson Education. Publishing as Prentice Hall . Inc.

Ensuring the Success of Knowledge Management  Factors that lead to knowledge Efforts management success    11-57 A significant process orientation and valuation to make a knowledge management effort worthwhile Nontrivial motivational methods to encourage users to contribute and use knowledge Senior management support Copyright © 2011 Pearson Education. Inc. Publishing as Prentice Hall .

Publishing as Prentice Hall . Inc.Last words on KM     Knowledge is an intellectual asset IT is “just” an important enabler Proper management of knowledge is a necessary ingredient for success Key issues:    11-58 Organizational culture Executive sponsorship Measurement of success Copyright © 2011 Pearson Education.

End of the Chapter  11-59 Questions / comments… Copyright © 2011 Pearson Education. Inc. Publishing as Prentice Hall .

No part of this publication may be reproduced. Inc. recording. or otherwise. photocopying. mechanical. stored in a retrieval system. Inc. or transmitted. Publishing as Prentice Hall . Printed in the United States of America.All rights reserved. Copyright © 2011 Pearson Education. in any form or by any means. electronic. without the prior written permission of the publisher.   Publishing as Prentice Hall 11-60 Copyright © 2011 Pearson Education.