Chapter 2-KM Foundations

Chapter II
Knowledge Management Foundations
By
Temtim Assefa
School of Information Science
Addis Ababa University
2020
Temtim Assefa (PhD), Addis Ababa University 1

Course Objective
Understand knowledge management solutions and
Foundations
Able to explain knowledge management infrastructure
Explain knowledge management mechanisms
Understand knowledge management technologies
Explain knowledge management process

Chapter topics
Infrastructure, Mechanisms and Technologies
Knowledge management solutions and Foundations
Knowledge management infrastructure
Knowledge management mechanisms
Knowledge management technologies
Knowledge management process
Knowledge management systems

1. Knowledge management
Knowledge management may be defined as doing what is
needed to get the most out of knowledge resources.
This definition implies that
knowledge resources might be those resources that
are relevant to the decisions, goals, and strategies of
an individual or an organization.
It also refers not only to the knowledge currently
possessed
by the individual or the organization
but also to the knowledge that can potentially be obtained from
other individuals or organizations.
KM …
The second objective is to enhance the impact of
knowledge in a cost-effective fashion
KM also includes a variety of activities which include
(a) discover new knowledge,
(b) capture existing knowledge,
(c) share knowledge with others, or
(d) apply knowledge.
to enhance, in a cost-effective fashion, the impact
of knowledge on the unit’s goal achievement.

2. Knowledge management and
Business Intelligence (BI)
There is interchangeable use of this words
BI focuses on providing decision makers with valuable
information and knowledge by utilizing a variety of
sources of data and structured and unstructured
information via the discovery of the relationships
1. KM starts with information and knowledge as
inputs,
 but BI begins with data and information as inputs
2. KM directly results in the discovery of new knowledge,
codification, sharing and application of knowledge but

KM and BI …
BI directly results newly created knowledge or
insights by revealing previously unknown patterns
within data and information.
3. KM involves using both social aspects as well as

information technology, and is sometimes viewed as
being more social than technical.
But BI is primarily technical in nature, and does not
incorporate social mechanisms such as meetings and
brainstorming retreats.

3. KM Foundations and Solutions
Knowledge management depends on two broad aspects:
KM solutions and KM foundations,
KM solutions refer to activities discovery, capture, sharing, and

application of knowledge.
KM solutions include KM processes and KM systems.
KM foundations are the broad organizational aspects that

support KM solutions in the short- and long-term.
They include KM infrastructure, KM mechanisms, and KM
technologies.
Thus, KM solutions depend on KM foundations (See Fig. below)

An Overview of KM Solutions
KM Processes
KM Solutions
KM Systems
KM Mechanisms and Technologies

KM
KM Infrastructure
Foundations

4. Dimensions of KM
Infrastructure

4.1 Organization Culture
Organization culture reflects the norms and beliefs that guide the
behavior of the organization’s members.
It is an important enabler of knowledge management in the organizations.
 Indeed, a survey of KM practices in U.S. companies (Dyer and
McDonough 2001) indicated that the four most important challenges in
knowledge management are nontechnical in nature and include, in
order of importance:
1. The organization’s employees have no time for knowledge management;
2. the current organization culture does not encourage knowledge sharing;
3. inadequate understanding of knowledge management and its benefits to
the company; and
4. inability to measure the financial benefits from knowledge management.

4.1 Organization culture …
Attributes of an enabling organizational culture
include
understanding the value of KM practices,
management support for KM at all levels,
incentives that reward knowledge sharing, and
encouragement of interaction for the creation
and sharing of knowledge (Armbrecht et al.
2001).

4.1 Organization culture …
Culture that inhibit knowledge sharing
stress individual performance and
hoarding of information within units encourage
limited employee interaction, and
lack of an involved top management
Fear of being labeled as ignorant if posting
questions to the portal

4.2 Organization Structure
Knowledge management also depends to a
considerable extent on the organization structure.
Hierarchical structure of the organization affects
the people with whom each individual frequently
interacts, and to or from whom to transfer knowledge.
Traditional reporting relationships influence the
flow of data and information as well as the nature of
groups who make decisions together, and
consequently affect the sharing and creation of
knowledge.

4.2 Organization structure …
Decentralized or flat organization structures eliminate
organizational layers,
thereby placing more responsibility with each individual
and increasing the size of groups reporting to each
individual.
Knowledge sharing is likely to occur in more
decentralized organizations.
Matrix structures also facilitates greater knowledge
sharing

4.2 Organization structure …
Organization structures can facilitate knowledge
management through communities of practice.
A community of practice is an organic and self-
organized group of individuals who are dispersed
geographically or organizationally but communicate
regularly to discuss issues of mutual interest (Lave and
Wenger 1991).
For example, a tech-club at DaimlerChrysler included a
group of engineers who didn’t work in the same unit but
met regularly, on their own initiative, to discuss problems
related to their area of expertise.
4.3 Information Technology Infrastructure
Knowledge management is also facilitated by the
organization’s information technology (IT)
infrastructure.
There are some technologies such as data mining
specifically developed for KM
IT infrastructure comprises the entire spectrum of the
organization’s information systems, including
transaction processing systems and
management information systems,
databases (DB) and data warehouses, and enterprise
resource planning systems (ERP).

4.3 IT …
IT provides four capabilities: reach, depth, richness,
and aggregation
Reach pertains to access and connection and the
efficiency of such access.
Reach reflects the number and geographical locations
of the nodes that can be efficiently accessed.
Internet is attributed to its reach and the fact that
most people can access it quite inexpensively.

4.3 IT …
Depth focuses on the detail and amount of
information that can be effectively communicated over
a medium.
It refers to aspects of bandwidth and customization
Communicating deep and detailed information
requires high bandwidth.
Customization refers to the availability of deep and
detailed information about customers so that it
enables to generate different information from the
same data
4.3 IT …
Communication channels can be arranged along a continuum
representing their “relative richness” (Carlson and Zmud 1999).
The richness of a medium is based on its ability to:
 (a) provide multiple cues (e.g., body language, facial expression,
tone of voice) simultaneously;
(b) provide quick feedback;
(c) personalize messages; and
(d) use natural language to convey subtleties (Daft and Lengel 1986).
IT has traditionally been viewed as a lean communication
medium but latest technologies have the ability to support rich
communication.

4.3 IT …
Aggregation refers to summarization of large
volumes of information drawn from multiple sources.
For instance, data mining and data warehousing
together enable the synthesis of diverse information
from multiple sources, potentially to produce new
insights.
Enterprise resource planning systems (ERPs) also
present a natural platform for aggregating
knowledge across different parts of an organization.

4.4 Common Knowledge
Common knowledge refers to the organization’s
cumulative experiences and the organizing principles
that support communication and coordination (Zander
and Kogut 1995).
Common knowledge provides unity to the organization.
It includes: a common language and vocabulary,
recognition of individual knowledge domains, common
cognitive schema, shared norms, and specialized
knowledge that are common across individuals sharing
knowledge

4.4 Common knowledge
Common knowledge enhances integration of
individual expert’s knowledge with the knowledge of
others.
Common knowledge supports knowledge transfer
within the organization but impedes the transfer of
knowledge outside the organization (Argote and
Ingram 2000).
For example a system engineer in the Bank is different
from system engineer in the Telecommunication
industry.

Discussion
How common knowledge promotes knowledge
sharing within the organization?
How it impedes knowledge transfer to other
organization?

4.5 Physical Environment
The physical environment is another important
foundation upon which knowledge management rests.
Key aspects of the physical environment include the
design of buildings and the separation between them; the
location, size, and type of offices; the type, number, and
nature of meeting rooms; and so on.
Physical environment can foster KM by providing
opportunities for employees to meet and share ideas.
Coffee rooms, cafeterias, water coolers, and hallways do
provide venues where employees learn from and share
insights with each other
5. Knowledge
management mechanisms

5. Knowledge management mechanisms
Knowledge management mechanisms are organizational or
structural means used to promote knowledge management.
For examples of KM mechanisms include learning by doing,
on-the-job training, learning by observation, and face-to-face
meetings.
More long-term KM mechanisms include the hiring of a Chief
Knowledge Officer, cooperative projects across
departments, organizational structure, organizational
policies, standards, initiation process for new employees,
and employee rotation across departments.

Case of BP Amoco Chemical Company
 BP Amoco Chemical Company has benefitted from retrospect meetings at
the conclusion of projects. Each retrospect meeting is facilitated by
someone outside that project team and focuses on the following questions:
 What was the goal of the project?
 What did we accomplish?
 What were the major successes? Why?
 How can we repeat the successes?
 What were the significant disappointments? Why?
 How can we avoid them in the future?
 What kind of knoweldge is shared through the above knowledge

management mechanisms?

6. KM Technologies
KM Technologies are information technologies that
can be used to facilitate knowledge management.
KM technologies are intrinsically no different from
information technologies, but they focus on
knowledge management rather than information
processing.
KM technologies also support KM systems and benefit
from the KM infrastructure

6. KM Technologies …
Technologies that support KM include artificial intelligence (AI)
technologies including those used for knowledge acquisition and
case-based reasoning systems,
Communication technologies like electronic discussion groups,
videoconferencing, Web 2.0 technologies, such as wikis and blogs
Knowledge repository technologies like databases, computer-
based simulations, ERPs,, MISs, expertise locator systems, and
information repositories
Knowledge based system like expert systems, case-based
reasoning systems, decision support systems, Recommender
systems, etc

7. Knowledge
management processes

7. KM processes
Knowledge management is defined as performing the
activities involved in discovering, capturing, sharing,
and applying knowledge so as to enhance, in a cost-
effective fashion, the impact of knowledge on the unit’s
goal achievement.
KM relies on four main kinds of KM processes (see
Fig. below)

Knowledge Management Processes
Discovery
•Combination
•Socialization Sharing Application
•Socialization •Direction
•Exchange •Routines
Capture
•Externalization
•Internalization

7.1 Knowledge Discovery Systems
Knowledge discovery systems support the process of
developing new tacit or explicit knowledge from data
and information or from the synthesis of prior
knowledge
Supports two KM sub-processes
combination, enabling the discovery of new explicit
knowledge
socialization, enabling the discovery of new tacit
knowledge

7.1 Discovery … Combination
Combination refers to integration of multiple bodies of explicit
knowledge (and/or data and/or information) to create new, more
complex sets of explicit knowledge (Nonaka 1994).
Through communication, integration, and systemization of multiple
streams of explicit knowledge, new explicit knowledge is created—
either incrementally or radically (Nahapiet and Ghoshal 1998).
Existing explicit knowledge, data, and information are reconfigured,
recategorized and recontextualized to produce new explicit
knowledge.
Example: writing a proposal, applying data mining, etc

7.1 Discovery …. Socialization
Socialization is the synthesis of tacit knowledge
across individuals, usually through joint activities
rather than written or verbal instructions.
For example, by transferring ideas and images,
apprenticeships help newcomers to see how others
think.
Davenport and Prusak (1998) described how
conversations at the watercooler helped knowledge
sharing among groups at IBM.

7.2 Knowledge Capture
It is the process of retrieving either explicit or tacit
knowledge that resides within people, artifacts, or
organizational entities.
Knowledge being captured might reside outside the
organizational boundaries including consultants,
competitors, customers, suppliers, and prior
employers of the organization’s new employees.

7.2 Knowledge capture …
Knowledge might sometimes reside within an individual’s
mind without that individual being able to recognize it
and share it with others.
Similarly, knowledge might reside in an explicit form in a
manual but few people might be aware of it.
It is important to obtain the tacit knowledge from
individuals’ minds as well as the explicit knowledge from
the manual to share with others.
It is benefitted from two KM subprocesses—
externalization and internalization
7.2 Knowledge capture … Externalization
Externalization involves converting tacit knowledge into explicit
forms such as words, concepts, visuals, or figurative language (e.g.,
metaphors, analogies, and narratives; Nonaka and Takeuchi 1995).
It helps translate individuals’ tacit knowledge into explicit forms that
can be more easily understood by the rest of their group.
Externalization may be accomplished through the use of metaphor—

that is, understanding and experiencing one kind of thing in terms of
another.
 An example of externalization is writing lessons learned in the project

by a consultant team about the client organization

7.2 Knowledge capture … Internalization
Internalization is the conversion of explicit knowledge into tacit
knowledge.
It represents the traditional notion of learning.
The explicit knowledge may be embodied in action and practice so

that the individual acquiring the knowledge can re-experience what
others have gone through.
An example of internalization is a new software consultant reading a
book on innovative software development and learning from it.
This learning helps the consultant to capture the knowledge
contained in the book

7.4 Knowledge Sharing
Knowledge sharing is the process through which explicit or tacit
knowledge is communicated to other individuals
It may take place across individuals, groups, departments or
organizations
It involves externalization of personal knowledge and
internalization of explicit knowledge
It also uses communication channels
The quality of communication channels has an effect on

effectiveness of the knowledge sharing process
Three important clarifications are in order.

7.4 Knowledge sharing …
First, knowledge sharing means effective transfer, so that the recipient of
knowledge can understand it well enough to act on it (Jensen and
Meckling 1996).
Second, what is shared is knowledge rather than recommendations
based on the knowledge;
The former involves the recipient acquiring the shared knowledge as well as
being able to take action based on it,
whereas the latter simply involves utilization of knowledge without the
recipient internalizing the shared knowledge.
Third, knowledge sharing may take place across individuals as well as

across groups, departments, or organizations (Alavi and Leidner 2001).

7.4 Knowledge sharing …
For knowledge sharing, exchange or socialization
processes are used.
Socialization, as mentioned above, facilitates the
sharing of tacit knowledge
Exchange focuses on the sharing of explicit knowledge.
It is used to communicate or transfer explicit
knowledge among individuals, groups, and
organizations (Grant 1996).
An example of exchange is a product design manual
being transferred by one employee to another

7.5 Knowledge Application
Creation of new value from knowledge by solving
problems or creating new products and services
This involves solving problems in a novel way, creating
new products and services, etc
Examples include workflow automation so that new
employees can quickly learn existing knowledge
Development of different intelligent agents
It has two main components

7.5 Knowledge Application …
Direction involves the transfer of instructions or decisions and
not the transfer of the knowledge required to make those
decisions
This preserves the advantages of specialization and avoids the
difficulties inherent in the transfer of tacit knowledge.
 Example of direction is when a production worker calls an
expert to ask her how to solve a particular problem with a
machine and then proceeds to solve the problem based on the
instructions given by the expert.
Similarly a student asking his fellow classmate for the answer to
a question gets a direction
7.5 Knowledge Application …
Routines involve the utilization of knowledge embedded in procedures, rules,
and norms that guide future behavior.
Routines economize on communication more than directions as they are

embedded in procedures or technologies.
However, they take time to develop, relying on “constant repetition” (Grant

1996).
Routines could be automated through the use of IT, such as in systems that
provide help desk agents, field engineers and automated answers from a
knowledge base (Sabherwal and Sabherwal, 2007).
Routine is created to avoid reinvention by storing best practices in procedure

manual and software tools

8. KM Technologies
Technologies that support KM include artificial
intelligence (AI) technologies encompassing those
used for knowledge acquisition and case-based
reasoning systems, electronic discussion groups,
computer-based simulations, databases, decision
support systems, enterprise resource planning
systems, expert systems, management information
systems, expertise locator systems, videoconferencing,
and information repositories encompassing best
practices databases and lessons learned systems

9. Knowledge Management Systems
KM systems utilize a variety of KM mechanisms and
technologies to support the KM processes
1. Knowledge Management Discovery Systems
2. Knowledge Management Capture Systems
3. Knowledge Management Sharing Systems
4. Knowledge Application Systems

Knowledge Sharing Systems
Knowledge sharing systems support the process
through which explicit or implicit knowledge is
communicated to other individuals
Discussion groups or chat groups facilitate knowledge
sharing by enabling individuals to explain their
knowledge to the rest of the group

Knowledge Application Systems
Knowledge application systems support the process
through which some individuals utilize knowledge
possessed by other individuals without actually
acquiring, or learning, that knowledge
Mechanisms and technologies support knowledge
application systems by facilitating routines and
direction.

KM Technologies for Routine and directions
Technologies supporting direction include experts’
knowledge embedded in expert systems and decision
support systems, as well as troubleshooting systems
based on the use of technologies like case-based
reasoning
Technologies that facilitate routines are expert
systems, enterprise resource planning systems, and
traditional management information systems

KM Mechanisms
KM mechanisms are organizational or structural
means used to promote KM
Examples of KM mechanisms include learning by
doing, on-the-job training, learning by observation,
face-to-face meetings, standard work practices,
policies, etc

Mechanisms for Direction and Routines
Mechanisms facilitating direction include traditional
hierarchical relationships in organizations, help desks,
and support centers
Mechanisms supporting routines include
organizational policies, work practices, and standards

Overview of KM Solutions
Knowledge Knowledge Knowledge Knowledge
Discovery Capture Sharing Application
KM Processes
Combination Socialization Internalization Externalization Exchange Direction Routines
Knowledge Knowledge Knowledge Knowledge

KM Systems Discovery Capture Sharing Application
Systems Systems Systems Systems
KM Mechanisms Analogies and metaphors Decision support systems KM Technologies

Brainstorming retreats Web-based discussion groups
On-the-job training Repositories of best practices
Face-to-face meetings Artificial intelligence systems
Apprenticeships Case-based reasoning
Employee rotation Groupware
Learning by observation Web pages
…. …
Organization Organization IT Common Physical

KM Infrastructure Culture Structure Infrastructure Knowledge Environment
KM Processes, Mechanisms, and Technologies

Limitation in KM implementation
Enterprise invested in KM-relevant technology
Intranets
Groupware
Data warehouses
Data mining
Enterprises forgot the non-technical work
Aligning knowledge to business goals
Mapping knowledge content
Creating networks of knowledge users
Changing culture and defining KM role

Conclusions
Described the key aspects of knowledge management
Provided a working definition of knowledge
management
Examined knowledge management solutions at four
levels
KM processes
KM systems
KM mechanisms and technologies
KM infrastructure

Review Questions
What is KM
What is KM mechanisms
What are the components of KMS infrastructure
Describe KM cycles?
What is the implication of KM cycles for knowledge
management?
Explain the difference between routine and directives?
Construct the Visual representation of KM solutions
What is the limitation in the KM implementation

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Chapter 2-KM Foundations

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Chapter II

Knowledge Management Foundations

Temtim Assefa (PhD), Addis Ababa University 1

Temtim Assefa (PhD), Addis Ababa University 2

Temtim Assefa (PhD), Addis Ababa University 3

Temtim Assefa (PhD), Addis Ababa University 5

Temtim Assefa (PhD), Addis Ababa University 6

3. KM involves using both social aspects as well as

Temtim Assefa (PhD), Addis Ababa University 7

KM solutions refer to activities discovery, capture, sharing, and

KM foundations are the broad organizational aspects that

Temtim Assefa (PhD), Addis Ababa University 9

KM Mechanisms and Technologies

Temtim Assefa (PhD), Addis Ababa University 10

Temtim Assefa (PhD), Addis Ababa University 11

Temtim Assefa (PhD), Addis Ababa University 12

Temtim Assefa (PhD), Addis Ababa University 13

Temtim Assefa (PhD), Addis Ababa University 14

Temtim Assefa (PhD), Addis Ababa University 15

Temtim Assefa (PhD), Addis Ababa University 16

Temtim Assefa (PhD), Addis Ababa University 18

Temtim Assefa (PhD), Addis Ababa University 19

Temtim Assefa (PhD), Addis Ababa University 21

Temtim Assefa (PhD), Addis Ababa University 22

Temtim Assefa (PhD), Addis Ababa University 23

Temtim Assefa (PhD), Addis Ababa University 24

Temtim Assefa (PhD), Addis Ababa University 25

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Temtim Assefa (PhD), Addis Ababa University 29

 What kind of knoweldge is shared through the above knowledge

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Temtim Assefa (PhD), Addis Ababa University 35

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Temtim Assefa (PhD), Addis Ababa University 37

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Externalization may be accomplished through the use of metaphor—

 An example of externalization is writing lessons learned in the project

Temtim Assefa (PhD), Addis Ababa University 41

The explicit knowledge may be embodied in action and practice so

Temtim Assefa (PhD), Addis Ababa University 42

The quality of communication channels has an effect on

Temtim Assefa (PhD), Addis Ababa University 43

Third, knowledge sharing may take place across individuals as well as

Temtim Assefa (PhD), Addis Ababa University 44

Temtim Assefa (PhD), Addis Ababa University 45

Temtim Assefa (PhD), Addis Ababa University 46

Routines economize on communication more than directions as they are

However, they take time to develop, relying on “constant repetition” (Grant

Routine is created to avoid reinvention by storing best practices in procedure

Temtim Assefa (PhD), Addis Ababa University 48

Temtim Assefa (PhD), Addis Ababa University 49

Temtim Assefa (PhD), Addis Ababa University 50

Temtim Assefa (PhD), Addis Ababa University 51

Temtim Assefa (PhD), Addis Ababa University 52

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Combination Socialization Internalization Externalization Exchange Direction Routines

Knowledge Knowledge Knowledge Knowledge