KNOWLEDGE MANAGEMENT KNOWLEDGE MANAGEMENT

maddeningpriceManagement

Nov 6, 2013 (3 years and 10 months ago)

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BetaCom (U) Ltd
BetaCom (U) Ltd
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KNOWLEDGE MANAGEMENT
KNOWLEDGE MANAGEMENT
A COMPETITIVE STRATEGY
A COMPETITIVE STRATEGY
OR
OR
A RISK MANAGEMENT CHALLENGE?
A RISK MANAGEMENT CHALLENGE?
Timothy A.M. Kabaza
Timothy A.M. Kabaza
B
B
-
-
Com, MBA. Dip.Telecom Management
Com, MBA. Dip.Telecom Management
Founder Vice
Founder Vice
-
-
President, ISACA K’la Chapter
President, ISACA K’la Chapter
Feb, 2010
Feb, 2010
BetaCom (U) Ltd
BetaCom (U) Ltd
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What is KM?
A new discipline in management whose objective is to systematically
A new discipline in management whose objective is to systematically
manage Knowledge
manage Knowledge


What:
What:
Set of cross
Set of cross
-
-
disciplinary organizational processes that seeks the on
disciplinary organizational processes that seeks the on
-
-
going
going
and continuous creation of new knowledge
and continuous creation of new knowledge


How:
How:
By leveraging the synergy of combining the creative and innovativeness
By leveraging the synergy of combining the creative and innovativeness
capacity of human beings and information technologies
capacity of human beings and information technologies
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-
-
>
>
IT governance (ISO/IEC 38500:2008), CobiT
IT governance (ISO/IEC 38500:2008), CobiT
-
-
> Controls should be based on risk assessment/management policies
> Controls should be based on risk assessment/management policies
and procedures:
and procedures:


Systems development life cycle (SDLC)
Systems development life cycle (SDLC)


Controls development life cycle (CDLC)
Controls development life cycle (CDLC)
( Control life cycle processes: Design, Implementation, operational
( Control life cycle processes: Design, Implementation, operational
effectiveness, monitoring)
effectiveness, monitoring)
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BetaCom (U) Ltd
BetaCom (U) Ltd
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Knowledge management refers to emerging set of strategies and
Knowledge management refers to emerging set of strategies and
approaches to create, safeguard, and use knowledge assets
approaches to create, safeguard, and use knowledge assets
-
-
including
including
people and information
people and information
-
-
which allows knowledge to flow to the right people
which allows knowledge to flow to the right people
at the right time so that these assets create more value for the enterprise
at the right time so that these assets create more value for the enterprise
and meet organizational objectives
and meet organizational objectives
(APQC, 2001).
(APQC, 2001).
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1.
1.
Knowledge Assets = Intangible Assets
Knowledge Assets = Intangible Assets
-
-
> Valuation?
> Valuation?
1.1. Google
1.1. Google


What are their assets?
What are their assets?
-
-
> Search Algorithm
> Search Algorithm
(now ICANN has increased NW addressing from 0.0.0.0 to
(now ICANN has increased NW addressing from 0.0.0.0 to
0.0.0.0.0.0 to accommodate the exponentially
0.0.0.0.0.0 to accommodate the exponentially
increasing networks and Bluetooth software embedded
increasing networks and Bluetooth software embedded
applications and equipment)
applications and equipment)
1.2. Coca Cola, Microsoft, previously Dell
1.2. Coca Cola, Microsoft, previously Dell
2. Introducing VAL IT shifts the business’s focus toward value creation
2. Introducing VAL IT shifts the business’s focus toward value creation
and retention
and retention
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APQC
APQC
-
-
American Productivity and Quality Centre
American Productivity and Quality Centre
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Knowledge Management Practices
Knowledge Management Practices


Knowledge acquisition
Knowledge acquisition
-
-
knowledge creation and content development
knowledge creation and content development
through the distillation of experiences and lessons learned from the
through the distillation of experiences and lessons learned from the
operations, by collecting, synthesizing and interpreting a variety of
operations, by collecting, synthesizing and interpreting a variety of
information
information
(Holsapple & Joshi, 2002)
(Holsapple & Joshi, 2002)


Knowledge filtering
Knowledge filtering
-
-
After information has been created, it is interpreted
After information has been created, it is interpreted
and evaluated from a contextual mental model to filter knowledge that is
and evaluated from a contextual mental model to filter knowledge that is
important and useful for the firm; individuals and companies have different
important and useful for the firm; individuals and companies have different
mental models
mental models
(Senge, 1994)
(Senge, 1994)


Knowledge configuration
Knowledge configuration
-
-
When acquired knowledge has been filtered
When acquired knowledge has been filtered
for its strategic and practical usefulness, it is organized and stored for
for its strategic and practical usefulness, it is organized and stored for
present and future use
present and future use
(Gupta & McDaniel, 2002).
(Gupta & McDaniel, 2002).
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-
1. Relevancy, Accuracy, Completeness, Integrity
1. Relevancy, Accuracy, Completeness, Integrity
2.
2.
Storage = Security Issues: Authorization, Access, Retrieval
Storage = Security Issues: Authorization, Access, Retrieval
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Knowledge Management Practices
Knowledge Management Practices
(cont)
(cont)


Knowledge sharing
Knowledge sharing
-
-
Knowledge sharing process enables the flow of
Knowledge sharing process enables the flow of
knowledge among and between individuals, groups and organisation,
knowledge among and between individuals, groups and organisation,
whereby one unit is affected by the experience of another
whereby one unit is affected by the experience of another
(Argote & Ingram,
(Argote & Ingram,
2000; Egbu et al., 2005; Hoon, 2003).
2000; Egbu et al., 2005; Hoon, 2003).


Knowledge application
Knowledge application
-
-
Knowledge application is the use of knowledge
Knowledge application is the use of knowledge
assets
assets
-
-
including people and information
including people and information


to get knowledge to the right
to get knowledge to the right
people at the right time to create more value for the organisation and solve
people at the right time to create more value for the organisation and solve
client problems while meeting organisational objectives
client problems while meeting organisational objectives
(APQC, 2001; Payne &
(APQC, 2001; Payne &
Sheehan, 2004; Tiwana, 2004).
Sheehan, 2004; Tiwana, 2004).
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Communications, Mobile Computing, Networks, ERPs = Security issues
Communications, Mobile Computing, Networks, ERPs = Security issues


Encryption
Encryption


Digital signatures and key Management
Digital signatures and key Management


Biometric controls
Biometric controls


Intrusion protection
Intrusion protection


Authorization and Access
Authorization and Access


Viruses
Viruses
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2 MAJOR SCHOOLS OF THOUGHT
2 MAJOR SCHOOLS OF THOUGHT
People Vs ICTs
People Vs ICTs


Organic perspective
Organic perspective
(
(
Brown and Duguid, 2001)
Brown and Duguid, 2001)
:
:
Knowledge, know
Knowledge, know
-
-
how and skills as well as their management from
how and skills as well as their management from
the perspective of the management of people and organizations
the perspective of the management of people and organizations


> process centers on individuals and K is shared via face
> process centers on individuals and K is shared via face
-
-
to face
to face
contacts, using IT systems primarily for communications not storage
contacts, using IT systems primarily for communications not storage


IT and information control
IT and information control
(
(
Cole
Cole
-
-
Gomolski,1997):
Gomolski,1997):
Using IT tools and business processes
Using IT tools and business processes


> codification centering on computers; storage in databases for
> codification centering on computers; storage in databases for
access and retrieval by those authorized
access and retrieval by those authorized
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KM DEFINITIONS
KM DEFINITIONS
Given the multidisciplinary nature of KM, definitions
Given the multidisciplinary nature of KM, definitions
come from different perspectives:
come from different perspectives:


Information systems perspective
Information systems perspective
(
(
Mertins et al., 2000)
Mertins et al., 2000)


HR perspective
HR perspective
(
(
Skyrme,1999; Swan et al.,1999)
Skyrme,1999; Swan et al.,1999)


Strategic management perspective for gaining
Strategic management perspective for gaining
competitive advantage
competitive advantage
(uit Beijerse, 2000; Newell et al.,2002)
(uit Beijerse, 2000; Newell et al.,2002)
Recommendation:
Recommendation:
Adopting an integrated
Adopting an integrated
(Davenport
(Davenport
and Prusak,1998),
and Prusak,1998),
interdisciplinary and strategic
interdisciplinary and strategic
approach
approach
BetaCom (U) Ltd
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THE PARADIGM SHIFT IN THE 21
THE PARADIGM SHIFT IN THE 21
ST
ST
CENTURY
CENTURY
GLOBAL ECONOMY
GLOBAL ECONOMY
Shift from the Industrial, then to the Service, and to the
Shift from the Industrial, then to the Service, and to the
21
21
st
st
century Knowledge Economy requires:
century Knowledge Economy requires:


Strategies designed for knowledge
Strategies designed for knowledge
-
-
based competition
based competition
(Kaplan & Norton,2001)
(Kaplan & Norton,2001)


Knowledge workers
Knowledge workers


ICT enabled business processes
ICT enabled business processes
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1. Knowledge workers may walk away with the K in their heads
1. Knowledge workers may walk away with the K in their heads
2. ICT enabled processes create risk management nightmares
2. ICT enabled processes create risk management nightmares
(e.g. networks, Internet, E
(e.g. networks, Internet, E
-
-
commerce applications, EFT)
commerce applications, EFT)
3. Traditional auditing techniques and skills are not effective thus
3. Traditional auditing techniques and skills are not effective thus
increasing risk and exposure e.g. what audit trails provide visible
increasing risk and exposure e.g. what audit trails provide visible
evidence?
evidence?
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THE MAIN PRAGMATIC OUTCOME
THE MAIN PRAGMATIC OUTCOME
OF IMPLEMENTING KM
OF IMPLEMENTING KM
is
is
Leveraging Knowledge to develop
Leveraging Knowledge to develop
competitive strength in an organization
competitive strength in an organization
(
(
Earl
Earl
and Scott,1999)
and Scott,1999)
leading to the attainment of
leading to the attainment of
numerous benefits to the organization
numerous benefits to the organization
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POTENTIAL BENEFITS OF KM
POTENTIAL BENEFITS OF KM
( Ahmed et al.,2002)
( Ahmed et al.,2002)


Improved innovation leading to improved products and services
Improved innovation leading to improved products and services


Improved decision making
Improved decision making


Quicker problem solving and fewer mistakes
Quicker problem solving and fewer mistakes


Reduced product development time
Reduced product development time


Improved customer service and satisfaction
Improved customer service and satisfaction


Reduced R & D costs
Reduced R & D costs
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Requires the development of performance metrics
Requires the development of performance metrics
e.g. Balanced scorecard:
e.g. Balanced scorecard:
1. Financial metrics (historical)
1. Financial metrics (historical)
2. Customer satisfaction metrics (current)
2. Customer satisfaction metrics (current)
3.Learning organization metrics (future)
3.Learning organization metrics (future)
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WHAT IS COMPETITIVE
WHAT IS COMPETITIVE
ADVANTAGE?
ADVANTAGE?
Competitive advantage refers to the
Competitive advantage refers to the
attributes and resources of an organization
attributes and resources of an organization
that allow it to outperform others in the
that allow it to outperform others in the
same industry or service market
same industry or service market
(Christensen &
(Christensen &
Fahey, 1984; Kay, 1994; Porter, 1980)
Fahey, 1984; Kay, 1994; Porter, 1980)
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KM VISION
KM VISION
“This is the ultimate vision for KM
“This is the ultimate vision for KM


an
an
organization that, at all levels, guards what it
organization that, at all levels, guards what it
knows, learns what it needs to learn, and applies
knows, learns what it needs to learn, and applies
that knowledge to overwhelming competitive
that knowledge to overwhelming competitive
advantage. In competition there’s little you can
advantage. In competition there’s little you can
do against an organization like this, except to try
do against an organization like this, except to try
and learn even faster”
and learn even faster”
(
(
KM REVIEW
KM REVIEW
)
)
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IMPORTANT TO NOTE DISTINCTION
IMPORTANT TO NOTE DISTINCTION
BETWEEN:
BETWEEN:
Data, Information, Knowledge
Data, Information, Knowledge
1. Data
1. Data
-
-
symbolic representation of numbers, letters, facts
symbolic representation of numbers, letters, facts
and magnitudes and are the means through which
and magnitudes and are the means through which
information and knowledge are stored and transferred
information and knowledge are stored and transferred
2. Information
2. Information
-
-
data arranged in meaningful patterns,
data arranged in meaningful patterns,
embedded with relevance and purpose. It requires a unit for
embedded with relevance and purpose. It requires a unit for
analysis, necessary to achieve consensus about its meaning
analysis, necessary to achieve consensus about its meaning
and requires human intervention
and requires human intervention
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3. Knowledge
3. Knowledge
-
-
2 types of knowledge:
2 types of knowledge:


Tacit knowledge
Tacit knowledge
which is stored in people’s heads and includes insights,
which is stored in people’s heads and includes insights,
intuition, and hunches
intuition, and hunches


which are often built by experience and training and
which are often built by experience and training and
cannot be easily formalized and shared
cannot be easily formalized and shared
(
(
Polanyi, 1964; Nonaka, 1998; Carrillo &
Polanyi, 1964; Nonaka, 1998; Carrillo &
Chinowsky, 2006)
Chinowsky, 2006)


Explicit knowledge
Explicit knowledge
that is easily documented, and physically or
that is easily documented, and physically or
electronically stored. It is normally captured in manuals, knowledge bases,
electronically stored. It is normally captured in manuals, knowledge bases,
technical notes, databases, best practice guides, standards and procedures,
technical notes, databases, best practice guides, standards and procedures,
filing cabinets and organizational processes and policies
filing cabinets and organizational processes and policies
(
(
Carrillo et al; 2000;
Carrillo et al; 2000;
Nonaka, 1998; Andreasson & Svartling, 1999
Nonaka, 1998; Andreasson & Svartling, 1999
).
).
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1.
1.
Tacit Knowledge
Tacit Knowledge
-
-
how does an organization protect K in
how does an organization protect K in
peoples’ heads from abuse or loss?
peoples’ heads from abuse or loss?
2.
2.
Explicit Knowledge
Explicit Knowledge


Security of databases and applications
Security of databases and applications
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UNIQUE CHARACTERISTIC OF
UNIQUE CHARACTERISTIC OF
KNOWLEDGE
KNOWLEDGE
Knowledge, unlike other assets which depreciate,
Knowledge, unlike other assets which depreciate,
appreciates with usage
appreciates with usage
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1. K sharing and K application
1. K sharing and K application
-
-
> Value Appreciation
> Value Appreciation
2. Valuation?
2. Valuation?
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WHAT IS KNOWLEDGE?
WHAT IS KNOWLEDGE?


What K is needed in the organization?
What K is needed in the organization?


What is the high value K?
What is the high value K?


What K gives a competitive edge?
What K gives a competitive edge?


What K gives first learner advantage?
What K gives first learner advantage?
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A SUCCESSFUL KM PROCESS DEPENDS ON
A SUCCESSFUL KM PROCESS DEPENDS ON
FOCUSING THE KM STRATEGY,
FOCUSING THE KM STRATEGY,
PRIORITIZING THE ORGANIZATION’S
PRIORITIZING THE ORGANIZATION’S
KNOWLEDGE AND MAXIMISING ITS
KNOWLEDGE AND MAXIMISING ITS
EFFECTIVENESS
EFFECTIVENESS
(Milton,2007)
(Milton,2007)
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Knowledge Effectiveness
Knowledge Effectiveness
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THEREFORE THERE IS NEED TO FOCUS
THEREFORE THERE IS NEED TO FOCUS
KM STRATEGY
KM STRATEGY
Organizations may have:
Organizations may have:


Unfocused KM
Unfocused KM


processes and technologies put in place for general K
processes and technologies put in place for general K
sharing, without high
sharing, without high
-
-
grading the K
grading the K
-
-
passive and reactive approach
passive and reactive approach
-
-
no advanced planning to capture high
no advanced planning to capture high
-
-
value K
value K
-
-
learning after the fact
learning after the fact
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Relevancy issues
Relevancy issues
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Semi
Semi
-
-
focused KM
focused KM
A somewhat more focused KM system is a network
A somewhat more focused KM system is a network
-
-
led
led
system
system
-
-
various key knowledge areas are identified
various key knowledge areas are identified
-
-
networks are set up to manage each area
networks are set up to manage each area
-
-
reactive and unfocused exchange of knowledge
reactive and unfocused exchange of knowledge
(i.e. a problem has to occur before the sharing
(i.e. a problem has to occur before the sharing
happens
happens
-
-
> Fire fighting)
> Fire fighting)
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Focused KM
Focused KM
Knowledge of greatest value is defined by
Knowledge of greatest value is defined by
organization
organization
-
-
focuses on this knowledge
focuses on this knowledge
-
-
proactively set up learning systems to acquire
proactively set up learning systems to acquire
the knowledge
the knowledge
-
-
protects that knowledge
protects that knowledge


> proactive and active learning, problem
> proactive and active learning, problem
avoidance thus maximizing the rate of return
avoidance thus maximizing the rate of return
(ROI) on
(ROI) on
the KM investment
the KM investment
Categorization of areas of key K focus so that
Categorization of areas of key K focus so that
correct KM tactics can be brought into play
correct KM tactics can be brought into play
(Gorelick, April, Milton. 2004)
(Gorelick, April, Milton. 2004)

New emergent

Knowledge




Strategic

Competence








Competitive

Competence




Non
-
core

Competence








Core

Competence




Old established


Low level of in
-
house



High level of
in
-

house


Knowledge




Knowledge






Knowledge

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Strategic Competence
Strategic Competence
Areas of new evolving K of future importance
Areas of new evolving K of future importance
-
-
Organization knows little about it and how it may
Organization knows little about it and how it may
be applied
be applied


>
>
knowledge acquisition processes
knowledge acquisition processes
As more and more proficiency and expertise are gained,
As more and more proficiency and expertise are gained,
this knowledge moves to the competitive competence
this knowledge moves to the competitive competence
box
box
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Competitive Competence
Competitive Competence
Areas of new evolving knowledge
Areas of new evolving knowledge
-
-
Organization knows a lot about it
Organization knows a lot about it


>
>
continuous capture of Knowledge from
continuous capture of Knowledge from
practice and development of best practice
practice and development of best practice
As more and more best practice is gained, the
As more and more best practice is gained, the
knowledge will mature until the area is well known and
knowledge will mature until the area is well known and
established, and it moves to the core competence box
established, and it moves to the core competence box
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Core Competence
Core Competence
Clear areas of established Knowledge
Clear areas of established Knowledge
-
-
Organization knows a lot about it
Organization knows a lot about it
-
-
Knowledge is core to the business
Knowledge is core to the business
processes for efficiency and effectiveness
processes for efficiency and effectiveness
-
-
Core knowledge to be protected and
Core knowledge to be protected and
managed as well as strategic and
managed as well as strategic and
competitive knowledge
competitive knowledge


>
>
Knowledge area mature and established,
Knowledge area mature and established,
best practice can be codified into standards and
best practice can be codified into standards and
routines and embedded in work practices and
routines and embedded in work practices and
procedures, in some cases embedded in software
procedures, in some cases embedded in software
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Non
Non
-
-
core Competence
core Competence
Areas of knowledge where an organization has chosen not
Areas of knowledge where an organization has chosen not
to apply this knowledge itself as a strategic decision
to apply this knowledge itself as a strategic decision


>
>
outsourcing ( not a buzz word but a strategic decision! )
outsourcing ( not a buzz word but a strategic decision! )
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Outsourcing presents another set of Risk
Outsourcing presents another set of Risk
Management issues:
Management issues:
Effect of 3
Effect of 3
rd
rd
parties on the organization’s internal control system
parties on the organization’s internal control system
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CHALLENGES
CHALLENGES
How do we develop ISACA Kampala Chapter as
How do we develop ISACA Kampala Chapter as
a Knowledge organization?
a Knowledge organization?
Are our organizations positioned to compete in
Are our organizations positioned to compete in
the Knowledge economy?
the Knowledge economy?
How about issues related to the valuation and
How about issues related to the valuation and
risk management aspects of the Knowledge
risk management aspects of the Knowledge
assets?
assets?
How are we positioned to compete with
How are we positioned to compete with
Knowledge workers in the EAC job market?
Knowledge workers in the EAC job market?
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Thank
Thank
you
you
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?
?
QUESTION TIME
QUESTION TIME