KNOWLEDGE MANAGEMENT (KM) Session # 23

SCM and Knowledge Exchange SCM means having the right product in the right place, at the right time, at the right price, in the right condition SCM means collaboration, knowledge sharing of logistics, and consensus among knowledge workers and suppliers Goals of SCM is improving efficiency and profitability SCM employs powerful tools to allow companies to exchange and update information

Customer Relationship Management (CRM) Goal is to enhance relationship management with customers and supply chain partners A business strategy to learn more about customers’ needs and behavior to develop stronger relationships with them

CRM’s Analytical Component Allow capture of a very large volume of data and transform it into analysis formats to support enterprise-wide analytical requirements Deploy knowledge—an integrated system that quickly enables processing of the intelligence gathered from analytical environments

Typical CRM Network Customer IP Phone Supply Chain Partners Telephone Call ----- Call Center Purchase Order Returns Corporate Database Customer Information Web-Based Portal

Approaches to KM The Strategic School: Which Strategy for KM to gain competitive Edge? Stock vs Flow vs Growth Expert vs Experience vs Efficiency

Knowledge For Sale! Kindly listen, read, think, discuss and use your knowledge to come up with strategies for sale of knowledge in Pakistan, if you feel like it?

Approaches to KM The Economic School The Strategic School Three Schools of Thoughts! The Economic School The Strategic School The Organizational School

Approaches to KM 3.The Organizational School: The organization is not merely an information processing machine, BUT an entity that creates K. continuously through Action and Interaction with its environment and people.

Approaches to KM 3.The Organizational School: The organizations create and define problems, develop and apply K. to solve the problems, and then further generate new K. through the action of problem solving.

Value of KM Depends NOT on Knowledge or ICT BUT on the use of Knowledge by an Organization’ s Members!

Organizational Knowledge Generation / Creation 1. Central message from Davenport P’s emphasis: - ‘Get Knowledge’ – suitable for Explicit type K. 2. Central message from Nonaka: (Knowledge is created by Epistemological and Ontological conversion of K.) - ‘Create Knowledge’ – suitable for both Explicit and Implicit/Tacit types, and addresses the issue of creation directly. Epistemological: involves various types of knowledge - Tacit, Explicit. Ontological: involves knowledge creating entities – Individuals, Groups, Organization, and Inter-organizations.

Organizational Knowledge Generation Knowledge generation process (Most authors in west like Davenport & Prusak emphasize on increasing Explicit Stock of K. by one or more of following:) 1. Acquire Buy – IBM-Lotus, AOL-Netscape ‘Borrow’ – BP’s “Thief of the Year” award ‘Steal’ by Style – Steve Jobs of Apple 2. Rent – University – Industry partnership, Consultant 3. Dedicate (Resource) R&D’s role and gaps in organizations like Xerox’s PARC (Palo Alto Research Center) 4. Adapt – ‘Core Rigidities’ 5. Network

Approaches to KM 3.The Organizational School Prof. NONAKA (Japan) SECI Management Process of K. Creation Prof. NONAKA (Japan) www.nonaka.com