Chapter09

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Nov 6, 2013 (3 years and 1 month ago)

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1

Chapter 9

Knowledge
Management

2

Learning Objectives


Define knowledge and describe the different types of knowledge.



Describe the characteristics of knowledge management.



Describe the knowledge management cycle.



Describe the technologies that can be utilized in a knowledge
management system.



Describe the activities of the chief knowledge officer and others
involved in knowledge management.

3

Learning Objectives
(cont.)


Describe the role of
KM

in organizational activities.



Describe ways of evaluating intellectual capital in an organization.



Describe how knowledge management systems are implemented.



Describe the roles of technology, people, and management in
knowledge management.



Describe how knowledge man
agement

can revolutionize the way an
organization functions.

4

Case: Mitre & Knowledge Management

Problem:


Mitre Co., a global research and development center faced difficulties
with accessing
knowledge within the company.

Solution:


In 1993, Mitre technologists developed the groundwork for the
Mitre
Information Infrastructure

through a wide
-
area information system.


Results:


Enhanced collaboration within the organization and among clients.



On the

$7.19 million

invested into

the system,
there has been

$62.1
million

returned
in reduced operating costs and improved productivity.

5

Knowledge Management


Knowledge management

(KM)

is a process that helps
organizations identify, select, organize, disseminate, and transfer
important information and expertise that are part of the
organization’s memory
.



Knowledge

is information that is
contextual
,
relevant,
and
actionable
.


Tacit knowledge

is usually in the domain of subjective, cognitive,
and experiential learning.


Explicit knowledge

deals with more objective, rational, and
technical knowledge.

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Characteristics of Knowledge



Extraordinary leverage
&

increasing returns



Fragmentation, leakage

&

the need to refresh



Uncertain value



Uncertain value sharing


7

Data, Information & Knowledge

8

Knowledge
-
based Economy



Rapid changes in the business environment cannot be handled
in traditional ways.



Firms are much larger,
with higher

turnover

and require
better tools
for collaboration, communication, and knowledge sharing.



Firms
must
develop strategies to sustain competitive advantage by
leveraging their intellectual assets for optimum performance.



Managing knowledge is now critical for firms spread out over
wide geographical areas, and for virtual organizations.

9

Learning Organization


The term
learning organization

refers to an organization’s
capability of learning from its past experience.




To build a learning organization, it must tackle three critical
issues:


(1)

Meaning

(determining a vision of the learning organization);


(2) Management
(determining how the firm is to work); and


(3) Measurement

( assessing the rate and level of learning).

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Sharing Knowledge

Some reasons people are reluctant

to share knowledge
include;


No skill in knowledge management techniques.



Willing to share, but not enough time to do so.



Don’t understand knowledge management and benefits.



Lack of appropriate technology.



No commitment from senior managers.



No funding for knowledge management.



Culture does not encourage knowledge sharing.


11

Organization Culture


The ability of an organization to learn, develop memory, and
share knowledge is dependent on its
culture.



Culture
is a pattern of shared basic assumptions.



Over time organizations learn what works and what doesn’t work.
As the lessons become second nature, they become part of the
organizational culture
.




Generally when a technology project fails, it is because the
technology does not match the organization’s culture.


12

Objectives of Knowledge Management

Davenport et al. (1998) describe four broad objectives of knowledge
management systems in practice:




Create knowledge repositories.



Improve knowledge access.



Enhance the knowledge environment.



Manage knowledge as an asset.


13

The Knowledge Management Cycle

1.
Create knowledge

2.
Capture knowledge

3.
Refine knowledge

4.
Store knowledge

5.
Manage knowledg
e

6.
Disseminate knowledge

14

The Knowledge Management Cycle
(cont.)

15

Organizational Knowledge Repositories


Knowledge network model.

The individual who has the
knowledge transfers expertise through person
-
to
-
person
contacts.



Knowledge repository model.

Knowledge contribution and use
follows a two
-
step transfer procedure of person
-
to
-
repository and
repository
-
to
-
person.


Captured knowledge is stored in a

knowledge repository
, a collection of
both internal and external knowledge.




Hybrid Model.

Many organizations use a hybrid of the network
and repository models.


16

Knowledge Repositories


Databases
.

It is possible to
structure part of a knowledge
repository as a database.



Data warehouses,

large
repositories of important data, can
also be used for knowledge
management, especially in
conjunction with
customer
relationship management (CRM)

systems.

17

Knowledge Repositories
(cont.)


Specially Structured Databases.

Some systems have been
developed in Lotus Notes/Domino Server and hence utilize the
Notes database structure.


These specialized databases are ideal for storing
tacit knowledge

because of its nature.



Electronic Documents.

Others have been developed around
electronic document management systems.


e.g., DocuShare by Xerox


18

Strategies for Knowledge Management


The codification strategy

typically is adopted by
companies that sell relatively
standardized products that fill
common needs.



Knowledge is carefully codified
and stored in knowledge
repositories structured as
databases
.


The personalization strategy

typically is adopted by
companies that provide highly
customized solutions to unique
problems.



Knowledge is shared mostly
through
person
-
to
-
person
contacts.



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Knowledge Systems Development

1.

Identify the problem

2

.

Prepare for change

3.


Create the team

4.

Map the knowledge

5.

Create a feedback mechanism

6.

Define the building blocks
for the system

7.

Integrate existing information systems

20

Challenges of KM Implementation



Lack of understanding of
KM

and its benefits



Lack of time by employees for knowledge management



Lack of skill in knowledge management techniques



Organizational culture does not encourage knowledge sharing



Lack of incentives to share



Lack of funding of knowledge management initiatives



Lack of appropriate technology



Lack of commitment from senior management


21

Case: Xerox as a Knowledge Enterprise


Xerox Co. recognized that the bulk of the knowledge in an organization
is contained in its
documents
and in how people use these documents.





Xerox decided to transform itself from a copy
-
machine developer and
manufacturer to a developer of
knowledge management
.


They started by developing internal
knowledge
-
sharing systems

such as
Eureka, a service
-
technician system


In early 2000,
a
community
-
of
-
practice

Web site
was used by 30,000
Xerox employees.


They developed
DocuShare

for in
-
house use.


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Knowledge Management Facilities


As

storage models become increasingly important, there is a
need to have dedicated staff to manage the knowledge
repository.




The leaders in knowledge storage are major consulting firms
such as Accenture, Ernst & Young, KPMG, and so on.




Most of these firms have one or more Knowledge Center that is
open 24 hours per day, every day.



These facilities are accessible via the Internet, as is the KMS.




These centers function as a reference library, with a manager and
reference knowledge specialists.

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KM & Information Technologies

The KMS challenge is to identify and integrate the following three
technologies to meet the KM needs of an organization.



Communication technologies

allow users to access needed
knowledge, and to communicate with each other
--
especially with
experts.



Collaboration technologies

provide the means to perform group
work.


Storage technologies

use a database management system to
capture, store and manage knowledge.

24

KM Technologies


Knowware

are technology tools
that support KM.



Collaboration tools
, or
groupware, were the first used to
enhance collaboration for tacit
knowledge transfer within an
organization.




KM suites

are complete KM
solutions out
-
of
-
the
-
box.



Knowledge Servers
contain the
main KM software, including the
knowledge repository.



25

KM Technologies
(cont.)


Electronic document
management


systems focus on
the document in electronic form as
the collaborative focus of work.




KM Tools

capture knowledge
unobtrusively (with minimal effort
and impact).




E.g. Tacit Knowledge Systems'
KnowledgeMail



Enterprise knowledge portals

are the doorway into many KM
systems.




XML

provides standardized
representations of data structures
so data can be processed without
case
-
by
-
case programming.



Application Software
Providers

have evolved as a
form of KMS outsourcing on the
Web.


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KM & Artificial Intelligence

AI is us
ed in knowledge management systems to do the following:


Assist in and enhance searching knowledge (e.g., in Web searches).



E
stablish profiles to determine what kinds of knowledge to scan for individuals
and groups.



Help determine the relative importance of knowledge.



Scan e
-
mail, documents, and databases to perform knowledge discovery to
determine meaningful relationships or to glean knowledge.



Scan e
-
mail, documents, and databases to perform knowledge discovery to
induce rules for expert systems.



Identify patterns in data (usually neural networks).



27

Knowledge Discovery in Databases


Knowledge discovery in databases (KDD)

involves tasks
known as knowledge extraction, data archaeology, data
exploration, data pattern processing, data dredging, and
information harvesting.



This is accomplished with the tool of

Data mining
.




Model marts

and
model warehouses

are analogous to data
marts and data warehouses for
models
.


They act as repositories of knowledge

by using KDD techniques on
past decision instances (stored in data marts and data
warehouses).

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Knowledge Management Benefits


Reduction in loss of intellectual capital when people leave the company



Reduction in costs by decreasing the number of times the company must
repeatedly solve the same problem



Economies of scale in obtaining information from external providers



Reduction in redundancy of knowledge
-
based activities



Increase in productivity by making knowledge available more quickly & easily



Increase in employee satisfaction by enabling greater personal development
and empowerment



Strategic competitive advantage in the marketplace

29

KM Value Matrices

(
Allee, 1999)



External relationship capital
:

how an organization links with its
partners, suppliers, customers, regulators, and so on.



Structural capital
:

systems and work processes that leverage
competitiveness, such as information systems, and so on.



Human capital
:

individual capabilities, knowledge, skills,
etc.




Social capital
:

the quality of relationships with the larger society.




Environmental capital
:
the value of relationships with the
environment.


30

Case: KM Failure at Ford


In 2000 A failure to
share knowledge

between Ford and Firestone
resulted in a Ford Explorer tire disaster.



Although Ford shares knowledge extremely well, no one knew about
the tremendous problem

for
two main reasons
;


1.
Knowledge is best shared
within

communities.


2.
The more widely dispersed knowledge is, the more powerful a force
is needed to extract and share it.



A major

lesson
from this KM

failure:

Organizations should extract as
much important knowledge as they can because they never know what
might prove truly important, or when.



31

Knowledge Management Issues

Buying
&

Selling Knowledge



Most firms are reluctant to sell
knowledge, unless they are
expressly in the business of
doing so.



A firm’s knowledge is an asset
that has competitive value.


Encouraging System Use



Employees must be motivated
properly

to contribute
knowledge.



The mechanism for doing so
should be part of their job, and
their salaries should reflect this.


32

People in the KM System



The Chief Knowledge Officer



CEO, Officers & Managers of the Organization



Communities of Practice




KMS Developers




KMS Staff

33

Chief Knowledge Officer

A
CFO

must do the following (adapted from Duffy, 1998):



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
&

smarter questions.


Establish a process for managing intellectual assets.


Obtain customer satisfaction information in near real time.


Globalize knowledge management.


34

Integration


Since a KM system is an enterprise system, it must be integrated
with other enterprise and information systems in an organization.



The most important systems to integrate with are;


Decision Support Systems


Artificial Intelligence


Databases and Information Systems


Customer Relationship Management Systems


Supply Chain Management Systems


Corporate Intranets and Extranets

35

Managerial Issues


Organizational culture change.

How can we change organizational
culture so that people are willing to
both contribute knowledge to and
use knowledge from a KMS?




How to store tacit knowledge.



How to measure the tangible
and intangible benefits of KMS.



36

Managerial Issues
(cont.)


The importance of knowledge
management. KM is not another
management fad
.



Implementation in the face of
quickly changing technology.






How can our organization
develop a successful knowledge
management system?



Determining the roles of the
various personnel in a KM
effort.