Knowledge Management Strategies Prof Elaine Ferneley

Elaine Ferneley Knowledge Management: an Overview n1990s management realised knowledge rather than land, machines or capital was the firm’s critical resource nBroadly Knowledge management can be centred on:  Computer science  Economics  Sociology

Elaine Ferneley Earl’s (2001)Taxonomy of Knowledge Management Approaches SchoolTechnocraticEconomicBehavioural AttributeSystemsCarto- graphic Engineer- ing CommercialOrganiza- tion SpatialStrategic Focus TechnologyMapsProcessesIncomeNetworksSpaceMindset Aim Knowledge Bases Knowledge Directories Knowledge Flows Knowledge Assets Knowledge Pooling Knowledge Exchange Knowledge Capabilities Principle IT Element Knowledge -based Systems Profiles & Directories on Intranets Shared Databases Intellectual Asset Register & Processing System Groupware & Intranets Representati onal Tools Eclectic Philosophy CodifyConnectCapabilityCommercializeCollaborateContactConsciousness

Elaine Ferneley Technocratic – based on IT Systems School - Knowledge Bases nCapture specialist knowledge in knowledge bases for other ‘specialists’ to access, evolved over 25yrs nCodification to allow others to access and use in association with their own professional expertise nExamples:  Skandia database to support underwriters’ decision making;  Airbus CD-ROMS for airplane maintenance technical expertise

Elaine Ferneley Technocratic – based on IT Systems School - Knowledge Bases nAdvantages:  Explicit, verifiable nShortcomings:  Maintenance & updates,  needs reward mechanism of providing updates/amendments – often these are highly technical systems so reward is individual publicity  Not all knowledge is objective so difficult to codify  Very domain specific – difficult to generalise from

Elaine Ferneley Technocratic – based on IT Cartographic School - Knowledge Directories nMapping organizational knowledge – building knowledge directories or ‘yellow pages’ nConnecting knowledgeable people – gateways to knowledge rather than knowledge repositories – knowledge is as likely to be tacit as explicit nExamples:  McKinsey & Co early adopters – all employees must state 3 areas of expertise  WS Atkins – inclusion of personality traits e.g. good negotiator

Elaine Ferneley Technocratic – based on IT Cartographic School - Knowledge Directories nAdvantages:  Continuous self editing, cheap nShortcomings:  Assessment of expertise  People process, technology provides connectivity and possibly search capabilities  Internal ‘yellow pages’ can be regulated but how to regulate external ‘yellow pages’ e.g. ISWORLD!

Elaine Ferneley Technocratic – based on IT Process School - Knowledge Flows nDerived from Business Process Reengineering – enhance business performance by providing personnel with as much information as possible nWorkers are Capable of making decisions if they have the information – give decision relevant, contextual and best practice knowledge nExamples:  Hewlett-Packard open access databases  Fire Service mobile computing  Storytelling

Elaine Ferneley Technocratic – based on IT Process School - Knowledge Flows nAdvantages:  Empowered workforce  False departmental walls are broken down nShortcomings:  Information overload, requires alternative modes of delivery  Employee scepticism  Information taken out of context

Elaine Ferneley Economic – based on Profit Commercial School - Intellectual Assets nFocus on protecting and exploiting intellectual assets of the firm nKnowledge should be exploited for commercial gain nExamples:  Dow chemicals exploitation of its patent portfolio. Had 25k patents that cost $30m p.a. to maintain with a licensing income of only $25m. In 5 years increased revenue to $125m p.a. through sales and licensing  Cap Gemini – rent of technical subcontractors to health and local authorities revenue £87m

Elaine Ferneley nAdvantages:  Quick win  Inclusion of corporate knowledge as a company asset on the balance sheet nShortcomings:  Ongoing management of the ‘knowledge property’ – how do you manage knowledge efficiently and effectively  How to avoid employees feeling exploited Economic – based on Profit Commercial School - Intellectual Assets

Elaine Ferneley Behavioural – based on Sociology Organizational School - Community nUse organizational structures & networks to share or pool knowledge nCollaboration within communities (of practice) to encourage sharing and exchange of knowledge nExamples:  BP Amoco through Lotus notes and video conferencing developed the drilling platform expertise global community – saving $27m in one year  Ford’s knowledge and best practice forums, self regulating, anyone can join

Elaine Ferneley nAdvantages:  Break down organisational barriers  Members ‘should’ be there because they choose to be nShortcomings:  Will only work if there is a tradition of sociability and networking, BP and Ford are famous for connectivity, expat communities, graduate entry networks etc  Moderators or brokers may be required  IT must be an enabler not a regulator Behavioural – based on Sociology Organizational School - Community

Elaine Ferneley Behavioural – based on Sociology Spatial School nUse of space to facilitate knowledge exchange – the water cooler nContactivity – people are social animals who prefer conversations to documents or IT nExamples:  Yahoo’s kitchen, bar, bean bag environment  British Airways at Waterside medieval street inc. café, newsagent, grocery store

Elaine Ferneley British Airways (Waterside) and Google Offices

Elaine Ferneley nAdvantages:  Meet people you would not normally encounter  Level of informality that encourages innovation nShortcomings:  Yahoo drank the bar dry  Other metrics take over so spatial features are slowly withdrawn  Resentment from ‘have- nots’ Behavioural – based on Sociology Spatial School

Elaine Ferneley Behavioural – based on Sociology Strategic School nKnowledge management as the ‘essence’ of the firm’s strategy nConsciousness raising – the organisation moves to being the ‘intelligent organisation’ or the ‘life long learning’ organisation nExamples:  Skandia is THE example – they embrace all the former schools and view the development of intellectual capital as their core mission  Buckman Labs (see case study) Information & Communication Technology ProcessesInformation People

Elaine Ferneley The Knowledge Organisation nThe middle layer addresses the KM life cycle nA knowledge organization derives knowledge from customer, product, and financial knowledge. Also from financial practices nIndicators of knowledge: thinking actively and ahead, not passively and behind nUsing technology to facilitate knowledge sharing and innovation Collect Organize Refine Disseminate Culture Leadership Technology Intelligence Maintain Competition Knowledge Management Process KM Drivers Knowledge Organizatio n Create

Elaine Ferneley Knowledge Value Chain CreateCodifyDiffuseUse Learning organizations Stimulating working environments Time to think Trust Reward & Recognition Organise Classify Hard or soft structure – database friendly/free text Access – who/how Transfer Share Examples – , knowledge maps (yellow pages), best practice, discussion groups Product development Service provision Process improvement Measures of success Hard Infrastructure - technology platform Soft Infrastructure - skills, processes etc. Asset Management - measure, protect, exploit

Elaine Ferneley Knowledge Map Example (Corporate Yellow Pages) – Assumption that it’s Web-based CreateCodifyDiffuseUse Who Why Reward Content Searchability Access – who/how Transfer/push Share Update For what Measures of success 65% of Corporate intranets fall into disuse between 1 & 2 years (KPMG, Parlby 2006)

Elaine Ferneley Earl’s (2001)Taxonomy of Knowledge Management Approaches SchoolTechnocraticEconomicBehavioural AttributeSystemsCarto- graphic Engineer- ing CommercialOrganiza- tion SpatialStrategic Focus TechnologyMapsProcessesIncomeNetworksSpaceMindset Aim Knowledge Bases Knowledge Directories Knowledge Flows Knowledge Assets Knowledge Pooling Knowledge Exchange Knowledge Capabilities Principle IT Element Knowledge -based Systems Profiles & Directories on Intranets Shared Databases Intellectual Asset Register & Processing System Groupware & Intranets Representati onal Tools Eclectic Philosophy CodifyConnectCapabilityCommercializeCollaborateContactConsciousness

Elaine Ferneley Summary