Knowledge Management By: Jenny Enderby and Chris Papin

What is Knowledge Management? According to to –KM is “caters to the critical issues of organization adaptation, survival and competence in face of increasing discontinuous environmental change… Essentially, it embodies organizational processes that seen synergistic combination of data and information processing capacity of information technologies, and the creative innovative capacity of human beings.”

Simplified KnowledgeKnowledge –Refers to a set of information with which we have experience –Usually gained through work, school or other life experiences Management –Refers to the ability of an individual or group to lead and organize others in business to produce a desired outcome

The Knowledge Process The Knowledge Production Information Acquisition Individual and Group Learning Knowledge Claim Formulation and Evaluation

The Knowledge Process Knowledge Integration Knowledge and Information Broadcasting Searching and Reviewing Knowledge Sharing Teaching

Put it all together… Knowledge production and integration compile together with non-electronic information as well as electronic information to for a database of knowledge that is the basis for KM.Knowledge production and integration compile together with non-electronic information as well as electronic information to for a database of knowledge that is the basis for KM.

Electronic Information Data Mining and Data WarehousingData Mining and Data Warehousing –Two tools that help turn information and data into useful knowledge

Defined Data WarehouseData Warehouse –A database that stores larges amounts of historical business data –Another way: Warehousing brings your data together for analysis Data Mining –The practice of extracting data from a warehouse in order to analyze patterns trends and relationships –Another way: Mining sorts through the data you collected and turns up interesting and useful connections

Why Use DM? Firms identify patterns which generate valuable knowledge for the companyFirms identify patterns which generate valuable knowledge for the company

How Companies Use DM Market SegmentationMarket Segmentation Customer ChurnCustomer Churn Fraud DetectionFraud Detection Direct MarketingDirect Marketing Interactive MarketingInteractive Marketing Market Basket AnalysisMarket Basket Analysis Trend AnalysisTrend Analysis

Fraud Detection Example

Wal-Mart Example

How These Apply to KM DM and DW can turn data into useful knowledge that can give companies a competitive advantage over their rivalsDM and DW can turn data into useful knowledge that can give companies a competitive advantage over their rivals DM takes a proactive approach to selling products to customers rather than a reactive approach by predicting patterns, trends, and behaviors.DM takes a proactive approach to selling products to customers rather than a reactive approach by predicting patterns, trends, and behaviors.

Why So Difficult Implementation of KM programsImplementation of KM programs How to estimate the return on KMHow to estimate the return on KM How to store KM dataHow to store KM data Techniques on utilization of the knowledgeTechniques on utilization of the knowledge

Implementation Problems Knowledge is PowerKnowledge is Power –Incentive structures to share information Resistance to Change –People are reluctant to change –56% of executives say “changing people’s behavior” is the most difficult obstacle

“Sharing knowledge is an unnatural act. You can't just stand up and say, 'Thou shalt share knowledge'—it won't work.”“Sharing knowledge is an unnatural act. You can't just stand up and say, 'Thou shalt share knowledge'—it won't work.” HUBERT SAINT-ONGE, PRINCIPAL, SAINTONGE ALLIANCE

Returns on KM KPMG invests $40 millionKPMG invests $40 million Quality knowledge is the goalQuality knowledge is the goal “Data separates you from the competition”“Data separates you from the competition”

How to Store New Data New techniques to “gather, store, process and distribute this kind of knowledge”New techniques to “gather, store, process and distribute this kind of knowledge” It isn’t contained in typical rows or columnsIt isn’t contained in typical rows or columns How do we store the human element?How do we store the human element?

Utilization of the Knowledge Problems with changeProblems with change Dept. of Defense and post combat dataDept. of Defense and post combat data Management must encourage changeManagement must encourage change

Implementation Barrier “94% of business executives believe that it would be possible, through more deliberate management, to leverage the knowledge existing in [their organization] to a higher degree”“94% of business executives believe that it would be possible, through more deliberate management, to leverage the knowledge existing in [their organization] to a higher degree” BUT….BUT….

Implementation Barrier “71% believe embedding knowledge in process, products, and/or services”“71% believe embedding knowledge in process, products, and/or services” Why not in the people making these processes, products and/or services?Why not in the people making these processes, products and/or services?

Implementation Case Study E&Y implements a knowledge management system in an effort to reach $1 billion in revenues by 1997.E&Y implements a knowledge management system in an effort to reach $1 billion in revenues by Process called Future State 97 or FS97.Process called Future State 97 or FS97.

E&Y A major focus was to capture knowledgeA major focus was to capture knowledge Elected a Chief Knowledge OfficerElected a Chief Knowledge Officer Formed a Center for Business KnowledgeFormed a Center for Business Knowledge

E&Y People were the keyPeople were the key Technology was the enablerTechnology was the enabler How do you adapt to the change needed?How do you adapt to the change needed?

Similarities E&Y had the same difficulties as othersE&Y had the same difficulties as others –Implementation was a new venture and risky –Returns are still not 100% clear, though they are assumed to be part of the KM program –How did they obtain and keep the data? –Problems getting the knowledge distributed

Questions?