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 Why Knowledge is difficult to manage?  Knowledge management process

Two main reasons for difficulties 1. Traditional disciplines of management do not lend themselves to KM 2. Business impact of KM applications remains vague Source: Ichijo, K. and Nonaka, I Knowledge Creation and Management: New Challenges for Managers. Oxford University press.

1. Traditional disciplines of management do not lend themselves to KM  การบริหารจัดการระบบเดิมไม่เป็นแนวทางเดียวกันหรือ ไม่ได้ปรับตัวให้ระบบการจัดการความรู้ดำเนินไปอย่าง ได้ผล  การวางกลยุทธ์ การบริหารงานบุคค การลาด การเงิน กับ การจัดการความรู้ ต้องปรับรูปแบบใหม่ Source: Ichijo, K. and Nonaka, I Knowledge Creation and Management: New Challenges for Managers. Oxford University press.

2. Business impact of KM applications remains vague  การวัดผลที่ได้จากการใช้การจัดการความรู้  งานวิจัยเพื่อประเมินผลยังมีไม่มาก Source: Ichijo, K. and Nonaka, I Knowledge Creation and Management: New Challenges for Managers. Oxford University press.

 Knowledge has taken procedure over traditional organization resources- capital, land, labor.  In value creation, companies' success is now on its ability to tap into their biggest asset – the knowledge of employees. Knowledge can not be managed separately from knowledge workers

As an Intangible asset, knowledge:  Involves human beings  Has different dimensions  Feed on itself  Is public and private  Is hard to measure and quantify

Knowledge involves human beings The movement of knowledge  across individual and organizational boundaries, into and from KMS  Into organizational routines and practices Depend on The knowledge sharing behaviors of employees

Knowledge involves human beings The movement of knowledge Depend on The knowledge sharing behaviors of employees The quality of the work environment, motivational factors, trust and relationships assume fundamental relevance

Knowledge has different dimensions 2 Main knowledge dimensions 1.Tacit 2.Explicit

2 Main dimensions of Knowledge 1.Tacit knowledge – Implicit  Difficult to document in detail but can be exchanged through interactions with employees and customers  Highly dependent on the context of knowledge, experience, wisdom of person who carries the knowledge  Cannot be separated from its source, in order to request it, one need to identify the source of knowledge.

2 Main dimensions of Knowledge 1.Explicit knowledge  Formal, often in written form, easy to express  Can be made available to members – book, document, project report, case study, policy manual

Knowledge feeds on itself ◦ Knowledge is a source of generation and renewal of itself ◦ Value of knowledge does not diminished with use, ◦ knowledge can be shared and combined to generate new knowledge – has potential to yield increasing in return

Knowledge is a both public and a private good  Public good  non excluding, an inability to exclude an individual from enjoying that good  non rivalry – one person’s having it does not prevent another from having it.

Knowledge is a both public and a private good  Private good  Difficult to transfer without the context in which hat knowledge is developed and used

Knowledge is hard to measure and quantity  Traditional measurement systems are unable to capture, measure, and report on the benefit of KM.  A series of pragmatic way of demonstrating the impact of knowledge projects

Knowledge depreciates when content becomes dated, or when new knowledge renders it obsolete.

The value of knowledge depends on its quality and on potential users’ ability to interpret it and integrate it with their experience. To create the capacity for effective action and to influence decisions. So as to

KM is a systemic and organizationally specific process of acquiring, organizing, communicating knowledge  Internal – in the organization  External – to customers and steak holders Rely on four overlapping process

1. Knowledge creation 2. Storage 3. Distribution 4. Application

1. Knowledge creation  Practice, process and routines used to make knowledge creation effective and to move knowledge into a state where it is kept and available to use in the future. tools to support knowledge workers in creative process of generating ideas, in brain storming or innovation development. such as mind mapping need

2. Storage  Processes and facilitates used to keep knowledge and information until it is needed. requires steps to structure it and make it easy to access and reuse. KMS Tool such as associating documents with additional information (metadata) for retrieval purpose.

3. Distribution Organizational mechanism and processes to diffuse knowledge and make it accessible to knowledge workers who needs it, when needs it. Users must know what they are looking for and specify their needs precisely

4. Application  Using existing knowledge and applying it in their respective job activities as well as making knowledge easy to access, frequent updating.  The stated objective of KMS implementation is to enable knowledge reuse rather than reinventing existing processes.

Discovery Combination Socialization Discovery Combination Socialization Capture Externalization Internalization Capture Externalization Internalization Sharing Socialization Exchange Application Direction Routines Application Direction Routines

One widely adopted classification of knowledge management strategies – two broad classes 1.Personalization 2.Codification 1.Personalization 2.Codification

1. Personalization – Focus on tacit dimension of knowledge and assume that knowledge is shared mainly through direct inter- personal combination. person – to – person approach

2. Codification – Knowledge can be effectively extracted and codified, document- to - person approach Knowledge are stored and indexed in data bases that enable easy retrieval.

Company can pursue different knowledge management strategies to support the KM process Depending on what type of knowledge they consider most valuable

The genera tendency today suggests that companies need to balance 2 strategies.

SocializationExternalization InternalizationCombination Explicit Tacit Explicit Tacit

เปรียบเทียบ KM Strategies กับ SECI Model ของ Nonaka นำเสนอ งาน

GoalsPercentage Gaining competitive advantage79% Increasing market efficiencies75% Developing customer focuses72% Improving product innovation64% Mertims et. al., 2005 The majority of firms become involved in KM initiatives.

Unrealistic expectations of IT solutions that are often hyped by vendors as easy solutions for managing knowledge Majority of firms’ mistake to approach KM.

Cause Mistake Thinking that: relying on specific technology, KM can capture “best practice”, success story and lesson learned that can be applied by others Emphasis is placed on technology rather than How it should operate What problem it is supposed to address How it be integrated with the overarching technology strategy Emphasis is placed on technology rather than How it should operate What problem it is supposed to address How it be integrated with the overarching technology strategy

Cause Mistake Implementing KM program because the competitors did and achieved concrete benefits KM implementation should drive from company problem or opportunity. KM should start at department or existing process is most likely to provide a context for a KM initiative. KM implementation should drive from company problem or opportunity. KM should start at department or existing process is most likely to provide a context for a KM initiative.

Cause Mistake Failing to address the important question from a knowledge worker’s perspective of “what’s in it for me? ” Knowledge workers are unlikely to exchange their knowledge without a fair return for their time and energy

Cause Mistake Considering KM as a deterministic, static, and one - time - event KM is a dynamic, evolutionary process in which each state requires specific mechanisms to be effective manage.

 Macro trend ◦ Increasing in the information and communication technologies and digital network ◦ Globalization of the economy ◦ Importance of intangible asset view of the firms ◦ The challenge of lost knowledge ◦ The rise of service economy  Micro trend- focus on organization

 Macro trend ◦ Increasing in the information and communication technologies and digital network Data and information are much more accessible to all sectors than before Agents in the economy are better linked to information and knowledge

Data and information are much more accessible to all sectors than before 1.The reduction in the cost of computer and component 2.Increase in the speed and bandwidth of communication networks and falling communication equipment cost 3.The liberalization of telecommunication sector – decrease in the cost of network access

 Macro trend ◦ Globalization of the economy The worldwide scale of production, distribution, and ownership The need for systems to enable interaction between people having knowledge and those seeking knowledge as well as system to make organizational knowledge globally accessible cause

Developing the bridge geographical locations, suppliers, and business partners is one of the key roles of KMS Change in business environment is not a cause of interest in KNOWLEDGE and KNOWLEDGE MANAGEMENT but the burst of intellectual activities KNOWLEDGE is a primary driver of firms’ value and sustain competitive advantage

 Macro trend ◦ Importance of intangible asset view of the firms Traditional economy – Industries based on financial capital (money, land, machine, equipment) Since 1990s, New economy – Industries based on knowledge and intangible assets and focus on long-term value creation Knowledge-based economy – because it is based on production, distribution, and use of knowledge and information in the design, produce, distribute products and services.

Knowledge-based resources are considered as the most critical to gain competitive advantage, to do things differently in order to prosper

 Macro trend ◦ The challenge of lost knowledge Highly skilled labors spend long time to build up huge amount of knowledge about how things work and get done Organizations face with retirement, downsizing, or other turnover are threatened by the loss of value knowledge

Knowledge leave organization without attempt being made to identify, capture and share it with others Remaining employees often search for answers to questions that have been answered, recreate analyses that have been conducted many times over Aerospace company Discuss

 Macro trend ◦ The rise of service economy Over 50% of labor force n USA is in service sector (Cleveland, 1999). IBM generates more than half of revenue from services. Increasing in the importance of Service sector.

 Macro trend ◦ The rise of service economy Service sector – activities of knowledge workers in service sector added in the form of labor, advice, managerial skilled, entertainment, training. All professional services is based on special knowledge.

When professional services are based on their clients to make them more knowledgeable, they implement knowledge based services KM and KMS are needed

Beyond these macro trends, KMS implementation is one of a parts helps to solve several organization problems

 Micro trend- focus on organization Two dimension used to classified when prioritization is necessary 1.The level of work complexity 2.Degree of collaboration required Two dimension used to classified when prioritization is necessary 1.The level of work complexity 2.Degree of collaboration required

 Micro trend- focus on organization Integrate Model งานประสานงาน เป็นงานประจำ Collaboration Model งานประสานงาน การตีความ การตัดสิน Transactional Model งานรับผิดชอบเฉพาะ คน เป็นงานประจำ Expert Model งานรับผิดชอบเฉพาะ คน การตีความ การตัดสิน Collaborative groups Individual actors Routine Interpretation / Judgment Complexity of work Level of Interdependent

 Micro trend- focus on organization Transactional Model Front-line employees: call center, staff or maintenance crews To ensure consistency, accuracy, repeatability Challenge for front-line

 Micro trend- focus on organization Often KM technologies used for this purpose are aimed at reducing costs of repetitive processes Transactional Model Routine work Reliant on formal rules, procedures and training Dependent on low discretion work force or information

 Micro trend- focus on organization Integration Model systemic, repeatable work, most of knowledge – related process that remain dispersed To ensure consistency, repeatability, and efficiency of the processes and products Challenge

 Micro trend- focus on organization Integration Model Reliant on processes, methodologies or standard Dependent on integration across functional boundaries KMS in this model consists in providing detailed description of the process and activities, together with inputs and outputs

 Micro trend- focus on organization Integration Model The approaches provide consistency of performed activities within the specific process

 Micro trend- focus on organization Collaboration Model reflected in the need to look to unfamiliar techniques to drive innovation Knowledge – intensive activities Rely on deep expertise across different function and on diversified and flexible teams to perform specific job Knowledge – intensive activities Rely on deep expertise across different function and on diversified and flexible teams to perform specific job

 Micro trend- focus on organization Expert Model Highly skilled knowledge worker who rely on individual experience and expertise to realize their work They are autonomous, and use interpretation and judgment to conduct specific processes. The work can not be supported by workflows or similar things.

 Micro trend- focus on organization Expert Model To improve knowledge expert: it should provide templates, sample outputs, high level glide line.

KM is successful when it meets actual needs Critical condition: Identifying the needs within organization Designing activities And then

KM Implementation : IBM, case study ประมวลประเด็นที่เรียนรู้ จาก case Analyze: what are the main challenges

KMS Taxonomy