Chapter Three

Knowledge Management
Paradigm shift of data, information
management to knowledge
management
 Definitions of Data

Data is
a set of discrete, objective facts about
events.
In an organizational context, it is
most usefully described as structured
records of transactions.
essential raw material for the
creation of information.
 Definitions of Information

Information is
Collection of Data
Data becomes information when its
creator adds meaning.
is data endowed with relevance and
purpose.
 Methods of Transforming Data into
Information
• Data will be transformed into information
by adding value in various ways:
– Contextualized
• we know for what purpose the data
was gathered
– Categorized
• we know the units of analysis or key
components of the data
 Methods cont….
– Calculated
• the data may have been analyzed
mathematically or statically
– Corrected
• errors have been removed from the
data
– Condensed
• the data may have been summarized in
a more concise form
 Definition of Knowledge

Knowledge is
is a fluid mix of
• framed experience,
• values,
• contextual information,
• expert insight, and
• grounded intuition
that provides an environment and framework for
evaluating and incorporating new experiences and
information.
 Definition of Knowledge

Knowledge
originates and is applied in the minds of knowers.
In organizations,
• it often becomes embedded not only in
documents or repositories, but also in
organizational routines, processes, practices
and norms
 Knowledge cont…

• Knowledge
– guides us in the process of analyzing data and
utilizing information.
– derives from information
• Methods of information Transformation
into Knowledge:
– Comparison
• how does information about the
situation compare to other situations we
have known?
 Knowledge cont…
– Consequences
• what implications does the information
have for decisions and actions?
– Connections
• how does this bit of knowledge relate to
others?
– Conversation
• what do other people think about this
information?
Difference between Data, Information, and
Knowledge
Interpreted symbol structures
- used to interpret data, elaborate on
Knowledge information, and learn
- used withun the decision steps

Elaboration Learning

Interpreted symbols and symbol

Information structures
- input to a decision step
- output from a decision step
Data
interpretation

Observed uninterpreted symbols

Data - signs, character sequences,
patterns
Difference Between Data, Information, and Knowledge

Definition Example
Data is basically just raw facts
and figures. No single piece of
data can be useful by itself, as The number 37 is data.
it does not provide good
business information.
Information is data which has
37% of people eat junk food
been processed and has now
every day.
got some meaning behind it.
Knowledge is an
Those 37% of people lead a
understanding of the
very unhealthy lifestyle which
information which has been
could lead to bad problems.
given.
Knowledge Hierarchy

Wisdom

Knowledge

Information

Data
Wisdom Is…
• Unselfish

• Enlightening

• Insightful

• Uncommon common sense

• Creative interpretation of patterns or phenomenon

• Applying knowledge and information for the

goodness of the world
 KM Definitions (1)
Stress Systematic and Formal Aspects

• Knowledge Management is

– is a the systematic, explicit, and deliberate

building, renewal, and application of knowledge
to maximize an enterprises knowledge-related
effectiveness and returns from its knowledge
assets.
 KM Definitions (1)
Stress Systematic and Formal Aspects

• Knowledge Management is

– is the formalization of and access to experience,

Knowledge, and expertise that create new
capabilities, enable superior performance,
encourage innovation, and enhance custom
value.
 KM Definitions (1)
Stress Systematic and Formal Aspects

• Knowledge Management

– involves the identification and analysis of

available and required knowledge, and the
subsequent planning and control of actions to
develop knowledge assets so as to fulfill
organization objectives.
 KM Definitions (2)
View KM as a Process

• Knowledge Management is
– the process of creating value from an
organization’s intangible assets.
– a process through which organization’s create,
store and utilize their collective knowledge.
 KM Definitions (2)
View KM as a Process

• Knowledge Management
– is the process of capturing company’s collective
expertise wherever it resides-in databases, on
paper, or in peoples heads-and distributing it to
wherever it can help produces the biggest profit.
 KM Definitions (3)
Focusing on Organizational Aspects

• Knowledge Management is

– getting the right knowledge to the right people at

the right time so they can make the best decision.
– the art of creating value from an organization’s
intangible assets.
 KM Definitions (3)
Focusing on Organizational Aspects

• Knowledge Management is
– the explicit control and management of
knowledge within the organization aimed at
achieving the company’s objective.
– exactly the management of organizational
knowledge of creating greater value and
generating a competitive advantage.
 KM components (1)
From the point of view of knowledge flow

• The flow of knowledge

• Knowledge cryptography
• Communities of knowledge workers
• Knowledge repositories and libraries
 KM components (2)
From the technical viewpoint

• Software interface
• Access and authentication tools
• Collaborative intelligence tools
• Application level software
• Transport level software
• Middleware and legacy integration software
• Repositories
 Knowledge Management Principles
• KM is expensive (but so is stupidity!)
• Effective management of knowledge requires
hybrid solutions of people and technology.
• KM is highly political.
• KM requires knowledge managers.
• KM benefits more from map than models,
more from markets than from hierarchies.
• Sharing and using knowledge are often
unnatural acts.
 Knowledge Management Principles

• KM means improving knowledge work

processes.
• Knowledge access is only the beginning.
• KM never ends.
• KM requires a knowledge contract.
• The more your share, the more you gain.

• The knowledge acquisition process should be

part of the work process.
 Knowledge Management Principles

• Integration of knowledge from multiple

disciplines has the highest probability of
creating new knowledge and value-added.
• Knowledge valuation should be conducted
from customers’ perspective.
• KM focus should be on core knowledge
critical to sustaining company’s competitive
edge.
 Organizational Knowledge Management Model

Leadership KM Process Culture

Share
Apply Create
Organization
Group
Organize Individual Identify

Adapt Collect
Business Performance
Process Measurement

Technology
 Theory of Organizational Knowledge Creation
• Tacit knowledge is personal, context-specific, and therefore
hard to formalize and communicate.
• Explicit or codified knowledge is transmittable in formal,
systematic language.
Tacit Knowledge Explicit Knowledge
(Subjective) (Objective)

Knowledge of experience Knowledge of rationality

(body) (mind)

Simultaneous knowledge Sequential knowledge

(here and now) (there and then)

Analog knowledge Digital knowledge

(practice) (theory)
 Two Dimensions of Knowledge Creation
Epistemological
Dimension

Explicit
Knowledge Current
Focus

Tacit
Ontological
knowledge
Individual Group Organization Inter-organization Dimension

Knowledge Level
 Four Modes of Knowledge Conversion
To
Tacit knowledge Explicit knowledge

Socialization Externalization
Tacit
knowledge

From
Internalization Combination
1+1
Explicit
knowledge
3
 Four Modes of Knowledge Conversion
• Socialization:
– A process of sharing experiences
– Apprenticeship through observation, imitation,
and practice
• Externalization:
– A process of articulating tacit knowledge into
explicit concepts
– A quintessential knowledge-creation process
involving the creation of metaphors, concepts,
analogies, hypothesis, or models
– Created through dialogue or collective
reflection
 Four Modes of Knowledge Conversion
• Internalization:
– A process of embodying explicit knowledge into
tacit knowledge
– Learning by doing
– Shared mental models or technical know-how
– Documents help individual internalize what
they experience
• Combination:
– A process of systemizing concepts into a
knowledge system
– Reconfiguration of existing information and
knowledge
 Knowledge Spiral
Dialogue
(Collective Reflection)

Socialization Externalization

Linking
Field Explicit
Building Knowledge

Internalization Combination

Learning by Doing
 Contents of Knowledge Created in Four Modes

To
Tacit knowledge Explicit knowledge

(Socialization) (Externalization)
Tacit
knowledge Sympathized Conceptual
Knowledge Knowledge

From (Internalization) (Combination)

Operational Systemic
Explicit
knowledge
Knowledge Knowledge
 Contents of Knowledge Created in Four Modes

• Sympathized knowledge:
• Created through socialization
• Shared mental models and technical
skills.
• Conceptual knowledge:
• Created through externalization
• Analogies & metaphors of products or
processes.
 Contents of Knowledge Created in Four Modes

• Systemic knowledge:
• Created through combination
• Prototypes or new technologies.
• Operational knowledge:
• Created through internalization
• Project management, production process,
new product usage, and policy
implementation.
Two Dimensions of Knowledge Creation
Epistemological
Dimension
e d
on z
ati n ali
Explicit
bi n t e r
Knowledge
Co
m Ex

So

ed
cia

liz
l iza

na
tio

er
n

t
In
Tacit
Ontological
knowledge
Individual Group Organization Inter-organization Dimension

Knowledge Level
 Knowledge management tools

• Tools for knowledge socialization

– Communication Enablers (like water coolers,
chat rooms…)
– Video conferencing
– Web conferencing
– Digital whiteboards
– Bulletin boards
 Knowledge management tools

• Tools for knowledge externalization

– Expert system
– Yellow pages
– Knowledge maps
– Data Warehouse
– Intelligent agent based system
 Knowledge management tools

• Tools for knowledge combination

– Intranet
– Groupware
– Forums
– Workflow systems
– Balanced score card
 Knowledge management tools

• Tools for knowledge internalization

– Neural networks
– Case based reasoning
 Tools for knowledge socialization (1)

Communication enablers
Conversations at the water cooler or in the
company cafeteria are often occasions for
Watercoolers knowledge transfer

Telephone Telephone also is a form of knowledge

transfer through conversation

Chat is another form of informal

Chat
knowledge transfer through personal
conversation to electronic conversation.
 Tools for knowledge socialization (2)

Video conferencing
• Is used to see the person or group
with whom you are working virtually
• Combine virtuality with face-to-face
collaboration. It enables people to
exchange both video and audio
across a distributed network
• Allows people to meet face to face in
small or large groups with colleagues
 Tools for knowledge socialization (3)

Web Conferencing
• Enables virtual meetings where users from
different locations connect, conduct meetings,
and share information as if everyone were in
the same room
• Allow participants to collaborate, share
documents, and can add content to them
 Tools for knowledge socialization (4)

Digital Whiteboards
• Permits real time display of
drawings, pictures or documents
for group discussion and
comment
• Can capture whatever is drawn
on regular paper notepads, and
store as image on a personal
computer
• Can be networked to allow
multi-user collaboration over
the Internet
 Tools for knowledge socialization (5)

Bulletin boards
• Bulletin boards are used to post notices and facilitate
discussions on any topic
• Electronic bulletin boards allow users to publish live, digital
content to public spaces
• Two types
– Simple bulletin boards
– Electronic bulletin boards
 Tools for knowledge externalization (1)

Expert systems
• Knowledge intensive computer programs that
capture the expertise of a human in limited domains
of knowledge
• Include rule-based systems, decision trees and also
case-based reasoning systems
• Arrives at intelligent solutions to user queries by
using the rules contained in the system’s knowledge
base
 Tools for knowledge externalization (2)
Yellow Pages
• Web-searchable electronic version of skills list
• Pointers to expertise
• Helps on locating and discovering
organizational knowledge
• Sample key entries in Yellow Pages
– Persons name
– Contact information (address, e-mail,
telephone, web page)
– Professional background
– Practical experience
– Training
The idea of Yellow Pages

Findpointerto
knowledgeresource

Shareknowledge
withexpert
 Tools for knowledge externalization (3)

Knowledge maps
• Graphical representation of knowledge and its
relation to organizational concepts
• A form for categorizing organizational
knowledge systematically mapping them
• Are designed to help people find where they have
to go to get the required knowledge
• Yellow Pages also can be organized as a
knowledge map by categorizing and representing
personal profile data in specific manner
 Yellow Pages as a knowledge map
ITEMS OF SELECTED DOMAIN

DOMAINS OF MAP

Marketing Information Systems PERSONAL PROFILE

Finances Technician
 Tools for knowledge externalization (4)
Data warehouse
• Collection of summarized data from various
sources
• Are used to hold explicit knowledge which helps
people to create new tacit knowledge
• Helps company personnel to identify hidden
business opportunities
• Improves productivity through improved access
to information and knowledge
 Tools for knowledge externalization (5)

Intelligent Agent-based tools

• Filtering, editing, searching, and organizing pieces of
knowledge are essential though frequently overlooked
components of successful knowledge management
• Different types of intelligent agents
– Search agents
– Browsing agents
– Monitoring agents
– E – Commerce agents
– Mail agents
– Web mastering agents
 Tools for knowledge combination (1)

Intranets
• Designed to focus on the employee, and on improving
workflow and business processes
• Useful for knowledge distribution, connectivity, and
publishing
• Besides information distribution and publication, intranets
provide the backbone platform for push delivery of
information to user’s desktops
 Tools for knowledge combination (2)

Groupware
• Software that supports communication and
collaboration between people
• Groupware tools provide a document repository,
remote integration, and a base for collaborative work
Tools for knowledge combination (3)

Forums
• In forums topics are posted to a website for discussion
and comment where participants can follow a line of
discussion on a topic
• These discussions give rise to a library of information
on a wide variety of subjects
• New knowledge can be transmitted via the forums to
others who have similar problems
 Tools for knowledge combination (4)

Workflow management systems

• Workflow can be described simply as the
movement of documents and tasks through a
business process
• Workflow Management Systems allow
organizations to define and control the various
activities associated with a business process
 Tools for knowledge combination (5)

Balanced scorecard
• The balanced scorecard is a management system (not only a
measurement system) that enables organizations to clarify
their vision and strategy and translate them into action
• It provides feedback around both the internal business
processes and external outcomes
• The balanced scorecard retains traditional financial measures
 Four dimensions of balanced scorecard

http://www.balancedscorecard.org/basics/bscl.html
 Tools for knowledge internalization (1)
Neural networks
• is a hardware and software that attempt to emulate the
processing patterns of the biological brain
• have learning capabilities
• a computational system consisting of a set of highly
interconnected processing elements, called neurons
• becomes immensely promising when you have data but
lack experts to make judgments about it
• But it is necessary to spend much time training the neural
network, cleaning up data, and pre-processing
Some points how neural networks can be used
• Neural networks can be developed for
capturing the meaning of words relative to
the context in which they appear
• Neural networks can be used in data mining
• Neural networks have been much applied
within the medical domain.
– For example, for clinical diagnosis, image
analysis and interpretation, signal analysis and
interpretation, drug development
 Tools for knowledge internalization (2)

Case-based reasoning
• allows companies to learn from previous problems or
cases to solve the present problems similar to the past
ones
• The case-based reasoner solves new problems by using or
adapting solutions that were used to solve old problems
• Using past knowledge gained from several projects
reduce the task to a simple match and cut-and-paste job
• Solving the problem by analogy make the process of
arriving at the solution faster, better, and easier than it
would have been had if started from scratch
 Two Ways of Knowledge Transfer

Information Tradition

Transfers articulated information Transfers unarticulated and

articulated abilities

Independent of the individual Dependent and independent

Static Dynamic

Quick Slow

Codified Uncodified

Easy mass distribution Difficult mass distribution

End of Chapter three