1. Chapter 11
KNOWLEDGE MANAGEMENT

2. Learning Objectives
Define knowledge and describe the different types of knowledge
Describe the characteristics of knowledge management
Describe organizational learning and its relationship to knowledge management
Describe the knowledge management cycle
Describe the technologies that can be used in a knowledge management system

3. Learning Objectives
Describe different approaches to knowledge management
Describe the activities of the chief knowledge officer and others involved in knowledge management
Describe the role of knowledge management in organizational activities
Describe ways of evaluating intellectual capital in an organization

4. Learning Objectives Describe how KMS are implemented
Describe the roles of technology, people, and management in knowledge management
Describe the benefits and drawbacks of knowledge management initiatives
Describe how knowledge management can revolutionize the way an organization functions

5. Introduction to Knowledge Management
Knowledge management concepts and definitions
Knowledge management
is the systematic and active management of ideas, information and knowledge residing in an organization’s employees

6. Introduction to Knowledge Management
- Data, Information, Knowledge
- Knowledge is used to solve a problem
- knowledge provides a higher level of meaning

7. Introduction to Knowledge Management
Characteristics of knowledge
Extraordinary leverage and increasing returns
Fragmentation, leakage, and the need to refresh
Uncertain value
Uncertain value of sharing

8. Introduction to Knowledge Management
Knowledge-based economy
The modern, global economy, which is driven by what people and organizations know rather than only by capital and labor

9. Introduction to Knowledge Management

10. Introduction to Knowledge Management
Explicit and tacit knowledge
Explicit (leaky) knowledge
Knowledge that deals with objective, rational, and technical material (data, policies, procedures, software, documents, etc.)
- Leaky knowledge
Tacit knowledge
Knowledge that is usually in the domain of subjective, cognitive, and experiential learning. It is highly personal and hard to formalize
- Embedded knowledge

11. Introduction to Knowledge Management
Knowledge management systems (KMS)
A system that facilitates knowledge management by ensuring knowledge flow from the person(s) who know to the person(s) who need to know throughout the organization; knowledge evolves and grows during the process

12. Organizational Learning and Transformation
Learning organization
An organization capable of learning from its past experience, implying the existence of an organizational memory and a means to save, represent, and share it through its personnel
Organizational memory
That which an organization “knows”

13. Organizational Learning and Transformation
The process of capturing knowledge and making it available enterprisewide
Learning skills include:
Openness to new perspectives
Awareness of personal biases
Exposure to unfiltered data
A sense of humility

14. Organizational Learning and Transformation
Organizational culture
A pattern of shared basic assumptions
Produces strong measurable results

15. Organizational Learning and Transformation
Reasons people do not like to share knowledge:
General lack of time to share knowledge and time to identify colleagues in need of specific knowledge
Apprehension or fear that sharing may reduce or jeopardize people’s job security
Low awareness and realization of the value and benefit of the knowledge others possess
Dominance in sharing explicit over tacit knowledge, such as know-how and experience that requires hands-on learning, observation, dialogue, and interactive problem solving
Use of a strong hierarchy, position-based status, and formal power

16. Organizational Learning and Transformation
Reasons people do not like to share knowledge:
Insufficient capture, evaluation, feedback, communication, and tolerance of past mistakes that would enhance individual and organizational learning effects
Differences in experience levels
Lack of contact time and interaction between knowledge sources and recipients
Poor verbal/written communication and interpersonal skills
Age differences
Gender differences

17. Organizational Learning and Transformation
Reasons people do not like to share knowledge:
Lack of a social network
Differences in education levels
Ownership of intellectual property due to fear of not receiving just recognition and accreditation from managers and colleagues
Lack of trust in people because they may misuse knowledge or take unjust credit for it
Lack of trust in the accuracy and credibility of knowledge due to the source
Differences in national culture or ethnic background and values and beliefs associated with it

18. Knowledge Management Activities
Knowledge management initiatives and activities
Knowledge management initiatives have one of three aims:
To make knowledge visible, mainly through maps, yellow pages, and hypertext
To develop a knowledge-intensive culture
To build a knowledge infrastructure

19. Knowledge Management Activities
Knowledge creation is the generation of new insights, ideas, or routines
Four modes of knowledge creation:
Socialization
Externalization
Internalization
Combination

20. Knowledge Management Activities
Knowledge sharing
Knowledge sharing is the willful explanation of one person’s ideas, insights, solutions, experiences to another individual either via an intermediary or directly
In many organizations, information and knowledge are not considered organizational resources to be shared but individual competitive weapons to be kept private

21. Knowledge Management Activities
Knowledge seeking
Knowledge seeking (knowledge sourcing) is the search for and use of internal organizational knowledge
Lack of time or lack of reward may hinder the sharing of knowledge or knowledg seeking

22. Approaches to Knowledge Management
Process approach
The process approach to knowledge management attempts to codify organizational knowledge through formalized controls, processes and technologies
Explicit policies
Use of IT
Criticism
Favored by firms that sell standardized products

23. Approaches to Knowledge Management
Practice approach
The practice approach toward knowledge management focuses on building the social environments or communities of practice necessary to facilitate the sharing of tacit understanding
Informal social groups meet regularly
Adopted by companies that sell highly customized solutions

24. Approaches to Knowledge Management
Hybrid approaches to knowledge management
Initially, the practice approach is used so that a repository stores only explicit knowledge that is relatively easy to document
Tacit knowledge initially stored in the repository is contact information about experts and their areas of expertise
Best practices can eventually be captured and managed so that the knowledge repository will contain an Increasing amount of tacit knowledge over time

25. Approaches to Knowledge Management
Best practices
In an organization, the best methods for solving problems. These are often stored in the knowledge repository of a knowledge management system

26. Approaches to Knowledge Management
Knowledge repository
The actual storage location of knowledge in a knowledge management system. Similar in nature to a database, but generally text-oriented
Knowledge base of an expert system VS Organizational knowledge base

27. Approaches to Knowledge Management
Developing a knowledge repository
Knowledge repositories are developed using several different storage mechanisms
The most important aspects and difficult issues are making the contribution of knowledge relatively easy for the contributor and determining a good method for cataloging the knowledge

28. Information Technology (IT) in Knowledge Management
The KMS cycle
KMS follows six steps in a cycle:
Create knowledge
Capture knowledge
Refine knowledge
Store knowledge
Manage knowledge
Disseminate knowledge

29. Information Technology (IT) in Knowledge Management

30. Information Technology (IT) in Knowledge Management
Components of KMS
KMS are developed using three sets of technologies:
Communication
Collaboration
Storage and retrieval.

31. KMS Implementation
The challenge with KMS is to identify and integrate the three essential components-communication, collaboration, and storage and retrieval technologies

32. KMS Implementation Knowledge management products and vendors Knowware
Technology tools that support knowledge management
Software development companies and EIS vendors
Software development companies and EIS vendors offer numerous knowledge management packages, from individual tools to comprehensive knowledge management suites

33. KMS Implementation
Knowledge management consulting firms
Knowledge management ASPs
Integration of KMS with other business information systems

34. Roles of People in Knowledge Management
Chief knowledge officer (CKO)
The person in charge of a knowledge management effort in an organization
objectives

35. Roles of People in Knowledge Management
The functions of the CKO include:
Set knowledge management strategic priorities.
Establish a knowledge repository of best practices.
Gain a commitment from senior executives to support a learning environment.
Teach information seekers how to ask better and smarter questions.
Establish a process for managing intellectual assets.
Obtain customer satisfaction information in near real-time.
Globalize knowledge management

36. Roles of People in Knowledge Management
Skills required of a CKO include:
Interpersonal communication skills
Leadership skills
Business acumen
Strategic thinking
Collaboration skills
The ability to institute effective educational programs
An understanding of IT and its role in advancing knowledge management

37. Roles of People in Knowledge Management
The CEO
The CEO is responsible for championing a knowledge management effort
Finding a competent CKO
Prepare the organization for the changes that are about to happen
Support
Make available to the CKO the resources needed to get the job done

38. Roles of People in Knowledge Management
Officers
CFO ensures that the financial resources are available
COO ensures that people begin to embed knowledge management practices into their daily work processes
CIO ensures IT resources are available
Managers also support the knowledge management effort and provide access to sources of knowledge

39. Roles of People in Knowledge Management
Community of practice
A group of people in an organization with a common professional interest, often self-organized for managing knowledge in a knowledge management system
Make organizations run smoothly
Informed people make better decisions
Happier workers

40. Roles of People in Knowledge Management
KMS developers
The team members who actually develop the system
KMS staff
Enterprisewide KMS require a full-time staff to catalog and manage the knowledge
Help and train users

41. Ensuring the Success of Knowledge Management Efforts
Causes of knowledge management failure
The effort mainly relies on technology and does not address whether the proposed system will meet the needs and objectives of the organization and its individuals
Lack of commitment
Failure to provide reasonable incentive for people to use the system

42. Ensuring the Success of Knowledge Management Efforts
Factors that lead to knowledge management success
A link to a firm’s economic value, to demonstrate financial viability and maintain executive sponsorship
A technical and organizational infrastructure on which to build
Senior management support
A change in motivational practices, to create a culture of sharing

43. Ensuring the Success of Knowledge Management Efforts
Factors that lead to knowledge management success
Nontrivial motivational methods to encourage users to contribute and use knowledge
A knowledge-friendly culture that leads directly to user support
Multiple channels for knowledge transfer

44. Ensuring the Success of Knowledge Management Efforts
Potential drawbacks of KMS
Failing to pick up the signals in the environment that might have suggested a change in strategy or product focus
Neglecting the creative process of new knowledge creation—applying yesterday’s solutions to tomorrow’s problems