The Origin of Knowledge by B. Nugroho Budi Priyanto Knowledge Management The Origin of Knowledge by B. Nugroho Budi Priyanto

Topics Differentiate: knowledge, information and data

Information vs Knowledge Processed data Actionable information Simply gives us the facts Allows making prediction, casual associations, or predictive decisions Clear, crisp, structured, and simplistic Muddy, fuzzy, partly unstructured Easily expressed in written form Intuitive, hard to communicate, and difficult to express in words and illustrations Obtained by condensing, correcting, contextualizing, and calculating data Lies in connections, conversations between people, experience-based intuition, and people’s ability to compare situations, problems, and solutions Devoid of owner dependencies Depends on the owner Handled well by information systems Also needs informal channels Key resources in making sense of large volumes of data Key resources in intelligent decision making, forecasting, design, planning, diagnosis, and intuitively judging Evolves from data; formalized in databases, books, manuals, and documents Formed in and shared among collective minds; evolves with experience, successes, failures, and learning over time Formalized, captured, and explicated; can easily by packaged into an reusable form Often emerges in minds of people through their experiences.

Converts data to information Condensation Calculate Contextualization Correction Categorization Information

Creating Information Addition to Data Result Condensed Data is summarized in more concise form, and unnecessary depth is eliminated Contextualized We know why the data was collected Calculated Analyzed data, similar to condensation of data Categorized The unit of analysis is known Corrected Errors have been removed, missing “data holes” have been accounted for

Integration of Knowledge Integration of knowledge creates new knowledge at the subsequent levels

A map of some key facet of knowledge

Comparing Tacit & Explicit Knowledge Characteristic Tacit Explicit Nature Personal, context-specific Can be codified and explicated Formalization Difficult to formalize, record, encode, or articulate Can be codified and transmitted in a systematic and formal language Development process Through trial and error in practice Through explication of TK understanding and interpretation of info. Location Stored in the heads of people Documents, etc. Conversion process To EK through externalization that is often driven by metaphors and analogy IT support Hard to manage, share, or support with IT Well supported by existing IT Medium needed Needs a rich communication medium Can be transferred through conventional electronic channels

KM system must support Truth Judgment Experience Values, Assumptions, and beliefs Intelligence

Fundamental processes in KM

Levels of Professional Knowledge

Learning company vs knowledge-leveraging company

Retrofitting knowledge to the choice and implementation of IT & IT support functions (1) Aspect Asset & Outcome Technology as Secondary Asset-Based Choice What is managed Knowledge Knowledge creation Knowledge reuse Knowledge integration Hardware Software Communication network Why managed it? Provide historical basis for decisions Enabled sound decisions Increase decision accuracy and choice efficiency Implement reliable and high quality hardware, software, and communication systems How do we manage it? Integrated, cross-functional approach Include the entire extended enterprise, i.e., suppliers, consumers, consultants, vendors, and buyers Integrated existing systems Control costs Make processes more efficient Learn from mistakes Reuse, not reinvent Inventorize

Retrofitting knowledge to the choice and implementation of IT & IT support functions (2) Aspect Asset & Outcome Technology as Secondary Asset-Based Choice Metrics and success criteria Financial, tangible and intangible gains realized Impact on performance Impact on competitiveness Timelines Benchmark performance A working KM system A well-used KM system A growing KM system User increasingly contribute and demonstrate reciprocity Who manages it? The CKO or equivalent manager Individual organizational units using it The CKO or equivalent managerial employee The information technology function Network service providers. Practice leaders

Three factors that distinguish company Leveraged core competencies Continuous improvement of the value-added chain Ability to revitalized fundamentally

Is your company ready for KM? The scanning imperative: Does your company truly understand the environment in which is functions? Does it gather information about practices and condition outside the organization? Is there awareness about how your company’s internal operation compare with those of your competitors? Shared perception of performance gap Metrics Corporate culture Knowledge champions Strategic alignment Begin with what you know

Lesson learned There are two primary types of knowledge Experiential knowledge is stored in scripts Knowledge is essentially collaborative and falters with data-hoarding mentality The five Cs for data to information Managing knowledge is essential Managing knowledge effectively can produce enviable results Beyond know-how towards care-why. Intranets and extranets can be a starting point for building a KM system Success of a KM system depends on reciprocity Is your company ready for KM?