1. Minder Chen, Ph.D. Minder.Chen@csuci.edu
Knowledge Management
Minder Chen, Ph.D.
People
Technology
Process

2. Reference Books:
The Knowledge-Creating Company : How Japanese Companies Create the Dynamics of Innovation by Ikujiro Nonaka, Hirotaka Takeuchi, Takeuchi Nonaka, Published by Oxford Univ Pr (Trade), May 1, 1995
Working Knowledge : How Organizations Manage What They Know, by Thomas H. Davenport, Laurence Prusak, Published by McGraw-Hill, December 1, 1997
If Only we Knew What We Know: The Transfer of Internal Knowledge and Best Practice, Carla O"dell and C. Jackson Grayson, Jr., Free Press, 1998.
Wellsprings of Knowledge : Building and Sustaining the Sources of Innovation, by Dorothy Leonard-Barton, Published by Harvard Business School Press, October 1, 1995
Knowledge Management Tools (Resources for the Knowledge-Based Economy) by Rudy L. Ruggles (Editor), Published by Butterworth-Heinemann, December 1, 1996
Intellectual Capital : The New Wealth of Organizations, by Thomas A. Stewart, Published by Doubleday, March 1997

3. Knowledge Management (KM)
"I wish we knew what we know…"
- a CEO -

4. Wisdom Knowledge Information Data
Knowledge Hierarchy
Wisdom
Knowledge
Information
Data

5. Knowledge
Knowledge guides us in the process of analyzing data and utilizing information.
Knowledge derives from information as information derives from data. This transformation happens through the following processes:
Comparison: how does information about the situation compare to other situations we have known?
Consequences: what implications does the information have for decisions and actions?
Connections: how does this bit of knowledge relate to others?
Conversation: what do other people think about this information?
Source: Working Knowledge, p. 6

6. Information Overloading (Pollution)
"The impact of information is obvious. It consumes the attention of its readers. Therefore, a wealth of information creates a poverty of attention."
-- Herbert Simon --
"Information absorbs the attention of the recipient. Therefore an overabundance of information creates a deficit of attention."
-- Jeff Hire, Owens Corning Fiberglass --

7. Moving Up the Knowledge Hierarchy
Where is the knowledge we have lost in information?
Where is the wisdom we have lost in knowledge?
Where is the life we have lost in living?
T.S. Eliot, Choruses from "The Rocks," 1934

8. Knowledge Management Cycle
Creation
Acquisition
Integration
Learning
Categorization
Utilization
Storage
Dissemination

9. KM Enabling Technologies
Groupware
Data warehouse and data mining
Expert systems and knowledge based systems
Intranet
Electronic Performance Support Systems
CBT, WBT
Problem/Solution Database (Case-Based Reasoning Systems)

10. Team Work & Groupware Same Time Different Time Same Place Different
Project/team rooms
Shared offices
Same
Place
Multi-media presentation systems
Key-pad based voting tools
Facilitated meetings using a PC
Networked PCs based GDSS
Different
Place
Data & file sharing
Group authoring tools
Computer conferencing
Work flow management systems
Screen sharing
Audio/video conferencing

11. 3Cs of Groupware
Source: Lotus Corp.

12. Knowledge Management Cosmology
Gathering
Data entry, OCR
Pull
Search
Voice input
Organizing
Cataloging
Filtering
Indexing
Linking
Knowledge
Management
Disseminating
Push
Sharing
Alert
Flow
Refining
Compacting
Collaborating
Contextualizing
Mining
Source: Adapted from Jeff Angus and Jeetu Patel, Knowledge-Management Cosmology, Information Week, March 16, 1998, p. 59.

13. Knowledge Management Principles
KM is expensive (but so is stupidity!)
Effective management of knowledge requires hybrid solutions of people and technology.
KM is highly political.
KM requires knowledge managers.
KM benefits more from map than models, more from markets than from hierarchies.
Sharing and using knowledge are often unnatural acts.
KM means improving knowledge work processes.
Knowledge access is only the beginning.
KM never never ends.
KM requires a knowledge contract.
Source: Thomas Davenport, "Some Principles of Knowledge Management,"

14. Knowledge Management Principles
The more your share, the more you gain.
The knowledge acquisition process should be part of the work process.
Integration of knowledge from multiple disciplines has the highest probability of creating new knowledge and value-added.
Knowledge valuation should be conducted from customers’ perspective.
KM focus should be on core knowledge critical to sustaining company’s competitive edge.

15. Communities of Practice
"A group of people who are informally bound to one another by exposure to a common class of problem, common pursuit of solutions, and thereby themselves embodying a store of knowledge."
-- Brook Manville, Director of Knowledge Management at McKinsey & Co.
Shadowy groups called communities of practice are where learning and growth happen. Learning is social.
The shop floor of human capital.
You can't control them -- but they are easy to kill if you try to manage them.
They have history -- they develop over time.
A community of practice has an enterprise - but not an agenda.
They develop customs, culture, and a way of dealing with the world they share.
Source: Thomas Stewart and Victoria Brown, "The
Invisible Key to Success," Fortune, August 5, 1996.

16. Knowledge Assets Codified Knowledge Assets (Legally Owned)
Tip of the iceberg
Patents
Copyrights
Trademarks
Documents
Working Solutions
Web of Relationships
Communities of Practice
Experience
Expertise and Theoretical Knowledge
Database
Source: The Knowledge Evolution, p. 35

17. Organizational Knowledge Management Model
KM Process
Leadership
Culture
Share
Organization
Group
Individual
Create
Apply
Organize
Identify
Adapt
Collect
Business
Process
Performance
Measurement
Technology
Source: Adapted from Arthur Andersen and the American Productivity and Quality Center

18. Theory of Organizational Knowledge Creation
Tacit knowledge is personal, context-specific, and therefore hard to formalize and communicate.
Explicit or codified knowledge is transmittable in formal, systematic language.
Tacit Knowledge Explicit Knowledge (Subjective) (Objective)
Knowledge of experience Knowledge of rationality
(body) (mind)
Simultaneous knowledge Sequential knowledge
(here and now) (there and then)
Analog knowledge Digital knowledge
(practice) (theory)
Source: Knowledge-Creating Company, p. 57.

19. Four Modes of Knowledge ConversionTo
Tacit knowledge Explicit knowledge
Tacit
knowledge
Explicit
Socialization Externalization
Internalization Combination
From
1 + 1 3
Source: Knowledge-Creating Company, p. 62.

20. Four Modes of Knowledge Conversion
Socialization:
A process of sharing experiences
Apprenticeship through observation, imitation, and practice
Externalization:
A process of articulating tacit knowledge into explicit concepts
A quintessential knowledge-creation process involving the creation of metaphors, concepts, analogies, hypothesis, or models
Created through dialogue or collective reflection
Internalization:
A process of embodying explicit knowledge into tacit knowledge
Learning by doing
Shared mental models or technical know-how
Documents help individual internalize what they experience
Combination:
A process of systemizing concepts into a knowledge system
Reconfiguration of existing information and knowledge

21. (Collective Reflection)
Knowledge Spiral
Dialogue
(Collective Reflection)
Socialization Externalization
Internalization Combination
Linking
Explicit
Knowledge
Field
Building
Learning by Doing
Source: Knowledge-Creating Company, p. 71.

22. Two Dimensions of Knowledge Creation
Epistemological
Dimension
Current
Focus
Explicit
Knowledge
Tacit
knowledge
Ontological
Dimension
Individual Group Organization Inter-organization
Knowledge Level
Source: Adapted from Knowledge-Creating Company, p. 57.

23. Two Dimensions of Knowledge Creation
Epistemological
Dimension
Externalized
Combination
Explicit
Knowledge
Internalized
Socialization
Tacit
knowledge
Ontological
Dimension
Individual Group Organization Inter-organization
Knowledge Level
Source: Adapted from Knowledge-Creating Company, p. 73.

24. Knowledge Cycle Tacit Share/Publish Knowledge Knowledge Innovate
Internalized
Knowledge
Explicit
Knowledge
Internalize Knowledge

25. Conversion Between Explicit and Tacit Knowledge

26. Metaphor and Analogy for Concept Creation
Product(Company) Metaphor/Analogy Influence on Concept Creation
City “Automobile Evolution” Hint of maximizing passenger (Honda) (metaphor) space as ultimate auto development
“Man-maximum,machine-minimum”
The sphere Hint of achieving maximum passenger
(analogy) space through minimizing surface area
“Tall and short car(Tall Boy)”
Mini-Copier Aluminum beer can Hint of similarities between
(Canon) (analog) inexpensive aluminum beer can
and photosensitive drum manufacture
“Low-cost manufacturing process”
Home Bakery Hotel bread Hint of more delicious bread
(Matsushita) (metaphor)
Osaka International “Twist dough”
Hotel head baker
(analogy)
Source: Knowledge-Creating Company, p. 66.