Chapter 4

Knowledge Management Process

1
• Knowledge Management Process
– Key processes
– Knowledge utilization and innovative
processes
– Learning Organization and knowledge
management
– Organizational impact of knowledge
management
2
KM Processes
• KM processes refer to the ways that an organization handles
knowledge at various stages of its life in an organization (KM
cycle).
• There are four main knowledge management processes, and
each process comprises two sub-processes:
– Knowledge discovery
• Combination
• Socialization
– Knowledge capture
• Externalization
• Internalization
– Knowledge sharing
• Socialization
• Exchange
– Knowledge application
• Direction
• Routines

3
KM Main Processes
Main Process Explanation
1) Knowledge Discovery Development of new tacit or explicit knowledge
from data and information
2) Knowledge Capture Defined as process of retrieving either explicit or
tacit knowledge that resides within people,
artifacts or organizational entities.
3) Knowledge Sharing Process through which explicit or tacit knowledge
is communicated to other individuals
4) Knowledge Application Process through which explicit or tacit knowledge
is utilized to guide decisions and actions.

4
Knowledge Discovery

• Knowledge Discovery Systems support

the process of developing new tacit or
explicit knowledge from data and
information.
• Sub processes:
– Combination
– Socialization

5
 Sub process Explanation

1) Combination • Discovery of new explicit knowledge through the

exchange and combination of explicit knowledge
held by individual in the organization
• Mechanisms:
• Meeting, telephone, conversation,
documents, collaborative creation of
documents
• Technologies:
• Databases, web-based access to data, data
mining, repositories of information, web
portal, best practices and lesson learned.

6
 Sub process Explanation
2) Socialization • Discovery of new tacit knowledge across individuals
through joint activities instead of written or verbal
instructions.
• Mechanisms:
• Employee rotation across departments,
conferences, apprenticeships, brainstorming,
cooperative projects.
• Technologies:
• Video conferencing, email, instant Messaging,
social chat groups, blogs, forum, wikis, VOIP

7
Knowledge Capture

• Process of retrieving either explicit or

tacit knowledge that resides within
people, artifacts or organizational
entities.
• Sub processes:
– Externalization
– Internalization

8
 Sub process Explanation
1) Externalization • Convert tacit knowledge into explicit knowledge such
as words, concepts, visual, figurative, so that it can be
documented, verbalized and shared. This is a difficult
process because tacit knowledge is often difficult to
articulate.
• Mechanisms:
• Models, prototypes, best practices, lesson
learned.
• Technologies:
• Expert system, chat groups, best practices,
lesson learned database.

9
 Sub process Explanation
2) Internalization • Convert explicit knowledge into tacit knowledge by
represent the traditional concept of learning.
• Mechanisms:
• Learning by doing, on the job training,
learning by observation, face to face meetings
• Technologies:
• Computer based communication, Al based
knowledge acquisition, computer based
simulations.

10
Knowledge Sharing

• Process through which explicit or tacit

knowledge is communicated to other
individuals.
• Sub processes:
– Socialization
– Exchange

11
 Sub process Explanation
1) Socialization • Discovery of new tacit knowledge across individuals
through joint activities instead of written or verbal
instructions.
• Mechanisms
• Employee rotation across departments,
conferences, apprenticeships, brainstorming,
cooperative projects.
• Technologies
• Video conferencing, email, instant Messaging,
social chat groups, blogs, forum, wikis, VOIP

12
Sub process Explanation
2) Exchange • Communication or transfer of explicit knowledge between
individuals, groups and organization.
• Mechanisms:
• Memos, manuals, letters, presentations
• Technologies
• Team collaboration tools, web based access to data,
databases, repositories of information, best practices
databases, lesson learned systems and expertise
locator systems.

13
Knowledge Application

• Process through which explicit or tacit

knowledge is utilized to guide decisions
and actions.
• Sub processes:
– Directions
– Routines

14
Sub process Explanation
1) Directions • Process through which individuals having the knowledge
direct the action of another individual without transferring
to that person another knowledge underlying the direction.
• Mechanisms:
• Traditional hierarchical relationships in organization,
help desk and support centres
• Technologies:
• Capture and transfer of experts knowledge,
troubleshooting systems, and case based reasoning
systems, decision support systems.

15
 Sub process Explanation
2) Routines • Involve utilization of knowledge in procedures, rules
that guide for future behaviour.
• Mechanisms:
• Organizational policies, work practices and
standards
• Technologies:
• Expert systems, enterprise resource planning
systems, management information systems.

16
KM Process Summary

17
Combination of Four Types of KM Processes and
Systems
• Knowledge application enables efficiency
– However, too much emphasis on knowledge application could reduce knowledge creation,
which often benefits from individuals viewing the same problem from multiple different
perspectives and thereby leads to reduced effectiveness and innovation
• Knowledge capture enables knowledge to be converted from tacit
form to explicit, or from explicit form to tacit, and thereby
facilitates knowledge sharing
– However, it might lead to reduced attention to knowledge creation. Knowledge capture
could lead to some knowledge being lost in the conversion process
• Knowledge sharing enables efficiency by reducing redundancy
– However, too much knowledge sharing could lead to knowledge leaking from the
organization and becoming available to competitors, and consequently reduce the
benefits to the focal organization.
• Knowledge discovery enables innovation
– However, too much emphasis on knowledge discovery could lead to reduced efficiency. It
is not always suitable to create new knowledge, just as it may not always be appropriate
to reuse existing knowledge.

18
KM MODEL
• A model
– is defined as representation of a system that
allows for investigation of the properties of
the system and, in some cases, prediction of
future outcomes.
• A knowledge management model
– gives us the representation of the KM for
the investigation of its properties for better
understanding and systematizing our
knowledge about knowledge management.
19
Major Knowledge Management Models
• The Nonaka and Takeuchi Knowledge
Spiral Model (1995)
• The Von Krogh and Roos Model of
Organizational Epistemology (1995)
• The Choo Sense-Making KM Model (1998)
• The Wiig Model for Building and Using
Knowledge (1993)
• The Boisot I-Space KM Model (1998)
• Complex Adaptive System Models of KM
20
SECI MODEL by NONAKA & TAKEUCHI

Knowledge Spiral Model Nonaka & Takeuchi

21
Knowledge creation process

• Begin with individual, personal and

private knowledge (researcher,
manager, worker)
• Translate into valuable, public,
organizational knowledge.
• Continuously and occurs at all level in
organization.

22
SECI Model
• Ikujiro Nonaka and Hirotaka Takeuchi propose a model of
the knowledge creating process to understand the
dynamic nature of knowledge creation, and to manage
such a process effectively.
• There is a spiral of knowledge involved in their model,
where the explicit and tacit knowledge interact with each
other in a continuous process.
• This process leads to creation of new knowledge. The
central thought of the model is that knowledge held by
individuals is shared with other individuals so it
interconnects to a new knowledge.
• The spiral of knowledge or the amount of knowledge so to
say, grows all the time when more rounds are done in the
model.
23
24
 SOCIALIZATION
Conversion Type: Tacit to Tacit
Empathy and shared experiences create tacit
knowledge
Change level: Individual to individual (between
people)
Advantage: Rich experiences can be shared, easy to
do
Disadvantage: Hard to document
INTERNALIZATION
Conversion Type: Explicit to Tacit
Practice and review embodies explicit knowledge
and become tacit knowledge.
Change level: Organization to individual
Advantage: Internalization can result in new ways
of doing the same job
Disadvantage: The new knowledge created cannot
be easily shared
EXTERNALIZATION
Conversion Type: Tacit to Explicit
Articulating tacit knowledge converts it into
explicit knowledge
Change level: Individual to group
Advantage: Knowledge becomes permanent
and easier to share
Disadvantage: Content has to be managed
COMBINATION
Conversion Type: Explicit to Explicit
Reviewing, connecting and systematizing
explicit knowledge
Change level: Group to organization
Advantage: New knowledge can be easily
documented and share
Disadvantage: Can be costly and time
consuming
25
Example
• Socialization
– Where a new member of a group acquires the tacit
knowledge possessed by other group members through
observation, dialogue or cooperative working.
• Externalization
– Where an individual is able to make their tacit knowledge
explicit through the process of communication and dialogue
with others.
• Combination
– The linking together of bodies of knowledge to create more
complex knowledge.
• Internalization
– Where an individual converts explicit knowledge into tacit
knowledge, through applying it to their work tasks.

26
Advantages & Disadvantages of SECI
• Advantages of the SECI model
– Appreciates the dynamic nature of knowledge and
knowledge creation.
– Provides a framework for management of the
relevant processes.

• Disadvantages of the SECI model.

– It is based on a study of Japanese organizations, which
heavily rely on tacit knowledge: employees are often
with a company for life.
– The linearity of the concept: can the spiral jump
steps? Can it go counter-clockwise?

27
Learning Organization
• Definition:
– Learning organization as an organization
skilled at creating, acquiring, and transferring
knowledge, and at modifying its behaviour to
reflect new knowledge and insights.
• Learning organizations and the people in
them learn constantly from everything they
do. They use their own experience and that
of others to improve their performance.
They learn from their successes and also
from their failures.
28
Elements of learning organization
• Respect for diversity and diverse perspectives
• Organization that matches the desired outcomes
• Leadership at all levels
• Supporting and fostering relationships
• Team work
• Team learning
• Experimenting with new tools
• Experimenting with new methods
• Maximizes individual talent
• Employees developing new skills
• Provide a safe space for thinking, creating and
experimenting
29
Characteristics Learning organization

30
KM Impacts

• People,
• Processes,
• Products and
• Organizational performance

31
KM Impacts on People

• KM can have the following impacts on

people:
– KM can facilitate employee learning,
– KM can facilitate employee adaptability
and cause employees to become more
flexible and
– KM can also enhance employee job
satisfaction.
32
KM Impacts on Processes
• KM enables improvements in organizational
processes such as marketing,
manufacturing, accounting, engineering,
and public relations.
• These impacts can be seen along three
major dimensions as follows:
– Effectiveness,
– Efficiency and
– Degree of innovation of the processes.
33
KM Impacts on Products

• KM Impact on products can be

- Value added products
- Knowledge based products

34
Knowledge Management Impacts on
Organizational Performance
• The organizational performance can be
improved through the following:
- Scale economies,
- Scope economies and
- Sustainable competitive advantage.

35
Exercise

• Mind map for Chapter 4

• Submit during next lecture class.

36