1. Knowledge Management Dave Owens T.J. Vogt
GROUP 5
Knowledge Management
Dave Owens
T.J. Vogt
Chatchawan Wongwattanakit “OT”
Yueping Wang

2. What is Knowledge Management?
“Knowledge Management is a waste of money. Organizations spend billions of dollars in their efforts to cut a corner or two resulting in just a fraction of savings”
Richard Sapio CEO, Mutual Capital Alliance
(8)

3. Agenda Knowledge Management Questions/ Discussion What is KM? Summary
Key Concepts
Knowledge
Management
KM in the Army
Implementation &
Maintenance
Other KM
Cases
PwC, LRC
KM in China

4. What is Knowledge Management?
Common Knowledge Management Definitions (just a few of the many)
Discipline within an organization that ensures that the intellectual capabilities of that organization are shared, maintained and institutionalized
The process of systematically and actively managing and leveraging the stores of knowledge in an organization
The way a company stores, organizes and accesses internal and external information.
Refers to an entire integrated system for accumulation, integration, manipulation, and access of data across multiple organizations
(9),(10)

5. What is Knowledge Management?
Knowledge Management is the explicit
and systematic management of vital
knowledge - and its associated processes
of creation, organization, diffusion, use and
exploitation.
(9),(10)

6. Knowledge Hierarchy Explicit Tacit This type of knowledge can be
Knowledge Management
Tacit Knowledge
Explicit Knowledge
Knowledge
Information
Data
Explicit
This type of knowledge can be
Processed by information systems
Codified and recorded
Archived and protected
Tacit
This type of knowledge exists in people’s heads, not articulated or documented

7. KM Significance
Knowledge assets have often become more important to companies than financial and physical assets and are often the only way for a company to distinguish itself from its competitor & gain competitive advantage
Lost knowledge given the enormous of baby boomers that will be changing jobs or retiring in next few years cause productivity cost of an employee leaving 85% of their base salary due to their replacement’s mistakes, lost knowledge and lost skill( Beazley et al, 2002)
Relate to the concept of knowledge half-life, from which it is found that knowledge reaches obsolescence, on average, in 500 days, but can be much quicker in some areas
- Lost knowledge obviously has a cost, estimated that $115 billion sits idle in
lost knowledge affiliated with production technologies
- An astounding example of this is the loss of the original computer source
code, written in the 1950’s, that spawned the Y2K software crisis, has cost
businesses worldwide an estimated $1 trillion (Petch, 1998)
(25) 7

8. People and Systems People
Knowledge Teams - multi-disciplinary, cross-functional
Learning Organization - personal/team/org development
Corporate Initiatives – Chief Knowledge Officer
Systems
Knowledge Data-bases - experts, best practice
Knowledge Centers - hubs of knowledge
Technology Infrastructure - Intranets, Domino Document Management
(9),(12)

9. Two Key Thrusts Sharing existing knowledge “Knowing what you know”
Knowledge for Innovation
“Creating and Converting”
(9)

10. Knowledge Cycle Innovation Cycle KM Cycle Collect Codify Identify
Classify
Embed
Product/
Process
Organize/
Store
Knowledge
Repository
Create
Share/
Disseminate
Diffuse
Use/Exploit
Access

11. Seven Levers Customer Knowledge - the most vital knowledge
Knowledge in Products - ‘smarts’ add value
Knowledge in People - but people ‘walk’
Knowledge in Processes - know-how when needed
Organizational Memory - do we know what we know?
Knowledge in Relationships - richness and depth
Knowledge Assets - intellectual capital
(9)

12. Implementing and Maintaining KM
Maintaining KMS KM
Why Implement KM?
Strategy for Implementing
Who’s Responsible?
IT’s Role in Implementing 12

13. Why Implement KMS? IBM, Oracle, Cisco
Measure intranet value at over $1 billion
BT, UK telecommunications company
Employee ideas have saved £100 million
Sodexho’s SuperSleuth
Cash reward for employees submitting sales leads
Led to over $90 million in sales volume
(20) 13

14. Common Misconceptions
Smaller companies, who often claim that they can’t afford to undertake KM activities, are wrong on two counts!
1.Knowledge is just as important, if not more so, to a smaller company
trying to compete in the rapidly changing global marketplace. Smaller
companies must capture, assimilate, and capitalize on every
advantage they can find, including KNOWLEDGE
2.Smaller firms have the advantages from Culture and Organizational
structure in place that is much more conducive to implementing
knowledge management effort such as type of environment, which is
predicated more on social relationship, familiarity and trust between
employees
A little Knowledge that acts is worth more than much knowledge that is idle.(Kahlil Gibran)
(25) 14

15. Who’s Responsible? Everyone: Managers/Supervisors The Knowledgeable
Leaders as knowledge champions
The Knowledgeable
Not a problem of knowing, but of access
End Users
Feedback
Psychological barriers
(13), (14) 15

16. Role of IT in Implementation
“The biggest contributor to this brilliant growth of the knowledge management system is information technology.”
Lee et al. also say, “...there are negative perspectives about information technology.”
According to a managing partner at a KM consultancy firm based in New York, “The biggest misconception that IT leaders make is that knowledge management is about technology...Usually people begin a KM project by focusing on the technology...But the key is people...”
(15),(16) 16

17. Strategy for Implementing KM The MeCTIP model
Macro-Environment
Organizational Climate
Technical Climate
Technical, Informational, Personal
(19) 17

18. Strategy for Implementing KM
Macro-Environment
Organizational Climate
Technical Climate
Technical, Informational, Personal
Macro-environment
External Factors
Globalization
Technology
E-companies
(19) 18

19. Strategy for Implementing KM
Organizational Climate
Structure
Formal Structures
Cross-functional project groups
Cross-discipline learning groups
Informal Structures
Grapevine/Underground
Cliques
Strategy/Goals
Culture
Macro-Environment
Organizational Climate
Technical Climate
Technical, Informational, Personal
The difference between, “...what is formally agreed and what actually takes place.”
(19) 19

20. Strategy for Implementing KM
Technical Climate
Infrastructure
Response to change
Resistance to change/Conflict
Listen to negative feedback
Conflict leads to improved ideas
Macro-Environment
Organizational Climate
Technical Climate
Technical, Informational, Personal
(13),(19) 20

21. Strategy for Implementing KM
Technical
System Standardization
Compatibility
Usability
Macro-Environment
Organizational Climate
Technical Climate
Technical, Informational, Personal
(13),(19) 21

22. Strategy for Implementing KM
Macro-Environment
Organizational Climate
Technical Climate
Technical, Informational, Personal
Informational
Info fatigue
Infofamine
Infoglut
According to Lee et al, “...users do not know how to utilize effectively the vast pool of information.”
(16),(19) 22

23. Strategy for Implementing KM
Macro-Environment
Organizational Climate
Technical Climate
Technical, Informational, Personal
Personal
Knowledge roles
Motivation
Learning networks
(19) 23

24. Maintaining KM Systems
Provide Adequate Access
Intranets
Classes
Psychological Barriers
Ook Lee study
103 questionnaires from Korean KMS users
93 respondents were reluctant to say that a knowledge management piece was not valid
(17) 24

25. Maintaining KM Systems
Use it or lose it
Cook compares KMS to draining battery
Share knowledge
Knowledge is individual power, not group power
Removing knowledge “constipation”
Crowded closet
(13) 25

26. Maintaining KM Systems
Incentives
Financial
Big Idea
Pub Money
Organizational Sociology
Know your audience
Be flexible
“No single recipe” for success
(13) 26

27. The Difference of Knowledge Management in US and CHINA27

28. Cultural Factors Impacting knowledge Management
Internationalization creates a need to know how peoples in different countries to apply knowledge management.
People from the United States and China have a distinctive prevailing decision style that reflects differences in cultural values
(4) 28

29. Why they express happiness differently29

30. The difference of American and Chinese in personal character
Extroverted, encouraged to express and to show feelings
Introverted , not encouraged to show emotions,
Emphasis is placed on the individual and independence. Society is a collection of individuals
Emphasis is placed on the society and the role of the person in the social fabric
Rules and Regulations are written broad but what is written is enforced very strictly
Rules and Regulations are written very strictly but enforcement is selective
(2), (3) 30

31. The different ways in deal with gift
Presents are usually opened in front of the giver
Presents are usually opened in private 31

32. The difference of U.S. and CHINA in Knowledge management
View of knowledge
Explicit and measurable
Largely tacit and contextual
Key assumption
Knowledge is mostly objective and can be made explicit
Knowledge includes both objective and subjective element
Knowledge management role
Knowledge workers capture, codify , and share knowledge from experience
Senior manager are responsible for knowledge management
Communication process
collection, distribution, reuse, and measurement of existing codified knowledge and information in whole organize
One-way flow of information (from superior to subordinate) and by guanxi net
(5) 32

33. “guanxi” in China
Social ties -- interaction frequency, degree of intimacy and trust
It’s not what you know, it’s who you know.
Business guanxi (personal relationships in Chinese market)
Government guanxi (personal relationships with government officials in different levels and bureaus).
(5) 33

34. Could we combine two styles of knowledge into an integral whole34

35. In the international work group, people need to know how to combine different knowledge into an integral whole. To achieve this goal we should understand the knowledge creation process
(5) 35

36. The knowledge creation process
(1) 36

37. Knowledge Management in Practice37

38. PricewaterhouseCoopers
PwC: The PricewaterhouseCoopers Law Firm & Law Department Service Group
The World’s largest professional service organization:
Service and Help general counsel and law firm executive management solve
complex business problems
Measurably enhance their ability to build sustainable shareholder value
Manage Risk
Improve quality and performance by providing services based on quality and
integrity
PwC includes the member firms of PricewaterhouseCoopers International Ltd.,
(21) 38

39. LRC: Legal Research Center
Helping corporate law departments and their outside counsel reduce their research costs and efficiently manage their legal knowledge for nearly 25 years
Remain the nation’s premier provider of outsourced legal research, KM, and compliance e-training services
Culturally committed to operational excellence
Customer intimacy and product/service innovation
(21),(22) 39

40. + = The Study In 2003, Florida Legal Technology Institute Study
Reviewed the marriage between PwC and LRC, catalog the advantages of KM in PwC law firms and departments
KM Study with 348 legal professionals around the world (law departments and outside law firms) + = 40

41. PwC and LRC KM Study Results Announced
70% of law firm respondents and 63% of Law Dept. respondents reported having KMS in place indicated that they use KMS either “frequently” or “all the time”
The survey indicated that their KM program either meets or exceeds their targeted ROI
85% of the law firms
78% of the law dept.
The Avg. budget to support KM initiative was reported at 4.7% of the total legal spend.
Quality, speed and cost containment are what a majority of legal professionals are seeking from their KM solution providers.
The most common standards to measure the value of KM programs are productivity enhancement and cost reduction.
(21),(22)

42. PwC and LRC KM Study Results Announced (cont.)
Legal professionals are increasingly cognizant of the value of KMS that retrieve information from multiple sources and locations. 82% said they would be more efficient if their KM solution could access legal knowledge in multiple formats from multiple resources.
The majority of legal professionals surveyed believe that research redundancy, the reduction of which is a key goal of KM, is caused by lack of communication inside the firm or law dept., and by the lack of incentives to motivate knowledge reuse and eliminate redundant research
“With the ever – increasing volume and types of information available, KM is more critical than ever. This study provides compelling data on the value and important of KMS. KM is an essential ingredient for efficient and effective delivery and management of legal services.” (Jonathan Bellis)
(21),(24) 42

43. When Knowledge adds up to nothing
Charles Lucier, Chief Knowledge Officer at International management and technology consulting firm said up to 84% of all KM programs fail.
A global bank spanning 70 countries abandoned their KMS before it was ever rolled out.
A European manufacturing company successfully implemented a KMS, but it was rarely used.
A pharmaceutical company implemented a KMS that could not be easily adapted to specific context of each work group
(21), (26)

44. Why Knowledge Can add up to nothing --
Many companies find that their departments have different takes on what the project means or what it is trying to achieve
Many KM program leaders are ignorant when it comes to the “complexity of these micro-political processes”
Even though some firms are implementing KM programs with support from senior management, it can still fail as a result of lack of support
Some organizations do not achieve adequate ROI from KM as they are failing to measure effectively
Many companies professed to suffer from “information overload” and a shortage of time with which to both share and utilize knowledge
Many firms rely too heavily on consultants who position themselves in highly influential positions within the organization
Many initiatives fails as they only enjoy superficial support from the top management
(21)

45. Knowledge Management Success
Evidence shows that, despite the potential pitfalls and seemingly high failure rate, companies are still willing to invest in KM. Why? Because there are big benefits there for taking.
The results of several surveys met:
87% of European business directors believe they could enhance their company’s competitiveness with improved KM and 76% believe Building + Sharing Knowledge is important for their company.
Study of 500 firms conducted by KPMG illustrated 80% of senior executives feel that KM is strategic to their organization and 78% feel they have missed business opportunities.
Hoffmann-Roche, the Swiss pharmaceutical firm, has estimated that it saves over $1 million per day due to its KM activities
BP Amoco attributed $260 million in bottom-line savings to a KM program
(23) 45

46. Knowledge Management Success (Cont.)
Energy firm Schlumberger Ltd. reported an estimated 668% ROI on a $72 million investment in KM over a period of six years
Chevron Corporation estimates that it saved an initial $150 million, plus at least another $20 million annually by instituting a best practices program
Teltech Communications, a firm that specializes in aiding companies to implement knowledge management programs, reports that its clients enjoy an average ROI of 12:1 for their efforts
In a survey carried out by Information Week , IT executives said they considered KM a strategic initiative of high importance, and KM spend is to climb at 62% of the IT institutions surveyed
Hewlett-Packard’s knowledge efforts aimed at customer service have reduced average call times by two-thirds and the cost per call has fallen by 50 percent
(21),(23),(25) 46

47. Keys to successful KM
As is the case with many new practices in workplace:
Getting employees on board from day one and making sure they realize exactly how KM program is to impact on their routines and bring benefits for the organization as a whole is pivotal
Make sure KM becomes a fundamental aspect of the way you do business
Be sure your KM implementation is less about reporting and more about sharing knowledge
“Knowledge is a company asset, hidden, until the knowledge worker releases it. The key to generating the best returns from your KM Program is to implement a well-planned methodology and ensure that your organization facilitates this release of information.”
-Mike Bagshaw, Development Director at Trans4mation Training Ltd,
(24)

48. Army Knowledge Management48

49. 49

50. Army Knowledge Management
“It is the Army’s goal to deliver critical capabilities to the warfighter, and oversee the development of a knowledge-based workforce”
LTC William Nelson Deputy Director GA & CKO
(Governance, Acquisition and Chief Knowledge Office) Army Office of CIO/G-6
(7) 50

51. Army Knowledge Management
Development of Army IM/IT and KM
Coordination between Combatant Commands and Joint Staff, components and agencies, etc…
Serves as the focal point for management and integration with IM/IT
Oversees the acquisition of IM/IT and KM solutions
(7) 51

52. KM is a Journey, not a destination. (Warick Holder)
Knowledge resides in the users and not in the collection.
(Y. Maholtra)
Successful knowledge transfer involves neither computers nor documents but rather interactions between people!!
(Mason & Mitroff; 1973)

53. Summary Key Concepts of KM Implementation, Maintenance China
Explicit Knowledge
Tacit Knowledge
Implementation, Maintenance
China
KM cases, advantages and disadvantages
Army KM 53

54. Questions 54

55. Sources
(1) Communications of the ACM ,Volume 48, Number 4 (2005), Pages ,Knowledge management in China, Glen R. Burrows, Damon L. Drummond, Maris G. Martinsons
(2) KNOWLEDGE MANAGEMENT OF HIGH-TECH FIRMS
Chung-Ming Lau, Yuan Lu and Shige Makino;The Chinese University of Hong Kong
(3) Xiaohong Chen ;State Development Research Center, PRC ;Ryh-Song Yeh ,Peking University
SOURCE:
(4) Inkpen, A.C Learning through joint ventures: A framework of knowledge acquisition. Journal of Management Studies, 37:
(5) Hoskisson, R.E., Eden, L., Lau, C. M., & Wright, M Enterprise strategies in emerging economies. Academy of Management Journal, 43:
(6) Army Regulation 25-1 “Army Information Management”
(7) LTC William Nelson, Deputy Director GA&CKO, Office of Army G6, interviewed by phone by Dave Owens, October 2007.
(8) Richard Sapio, CEO of Mutual Capital Alliance, interviewed in person by Dave Owens, 22 September 2007
(9) Skyrme, David J, “Developing a Knowledge Strategy” STRATEGY, January 1998,
(10) Corral, Sheila, “Are We in the Knowledge Management Business?” ARIADNE, February 1999,

56. Sources
(11) KNOVA, “10 Principles for Knowledge Management Success”, Gartner INC., April 2003
(12) Ferran-Urdaneta, Carlos, “Organizational Structures for Knowledge Management”, Boston University Systems Research Center, 1999
(13) Cook, P. (1999). I heard it through the grapevine: making knowledge management work by learning to share knowledge, skills and experience. Industrial and Commercial Training , 31 (3),
(14) Gottschalk, P., & Holgersson, S. (2006). Stages of knowledge management technology in the value shop: the case of police investigation performance. Expert Systems , 23 (4),
(15) Kulkarni, U. R., Ravindran, S., & Freeze, R. (2006). A Knowledge Management Success Model: Theoretical Development and Empirical Validation. Journal of Management Information Systems , 23 (3),
(16) Lee, H.-S., Chae, Y.-I., & Suh, Y.-H. (2004). Knowledge Conversion and Practical Use with Information Technology in Korean Companies. Total Quality Management , 15 (3),
(17) Lee, O. (2006). Psychological Barriers to Maintaining Knowledge Management Systems. CyberPsychology & Behavior , 9 (3),
(18) Moffett, S., & McAdam, R. (2006). The Effects of Organizational Size on Knowledge Management Implementation: Opportunities for Small Firms? Total Quality Management , 17 (2),

57. Sources
(19) Moffett, S., McAdam, R., & Parkinson, S. (2003). Technology and people factors in knowledge management: an empirical analysis. Total Quality Management , 14 (2),  
(20) Ward, T. (2007). Does Your Intranet Pay Its Way? SCM , 11 (2), 10.
(21) “When knowledge adds up to nothing: Why knowledge management fails and what you can do about it”, Journal of Development and Learning in Organizations (2003), Vol. 17 Issue:1 Page: 32-35
(22) News & Legal Editors from Legal Research Center KM Study (2003) “Legal Knowledge Management Improves Quality and Speed of Service, Reduces Costs and Delivers High ROI, According to Landmark PricewaterhouseCoopers”, Business Wire, June 9, 2003.
(23) Braganza, A., Mollenkramer, G.J. (2002), “Anatomy of a failed knowledge management initiative: lessons from PharmaCorp’s experience”, Knowledge and Process Management (UK), Vol. 9 No.1,.
(24) Storey, J., Barnett, E. (2000), “Knowledge management initiatives: learning from failure” Journal of Knowledge Management, Vol.4 No.2, .
(25) Yeldon, Eugene F., Synrad INC, Albers, James A., Pacific Lutheran University, Journal of Knowledge Management Practice, The Business Case for Knowledge Management, August 2004
(26) Chua, A., & Lam, W. (2005). Why KM projects fail: a multi-case analysis . Journal of Knowledge Management , 9 (3), 6-17.

58. Implementation