Knowledge Management


Nov 6, 2013 (4 years and 5 months ago)



By: Jenny Enderby

and Chris Papin

What is Knowledge Management?

According to

KM is “caters to the critical issues of organization
adaptation, survival and competence in face of
increasing discontinuous environmental change…
Essentially, it embodies organizational processes that
seen synergistic combination of data and
information processing capacity of information
technologies, and the creative innovative capacity of
human beings.”



Refers to a set of
information with which
we have experience

Usually gained through
work, school or other life


Refers to the ability of an
individual or group to
lead and organize others
in business to produce a
desired outcome

The Knowledge Process

The Knowledge Production

Information Acquisition

Individual and Group Learning

Knowledge Claim Formulation and


The Knowledge Process

Knowledge Integration

Knowledge and Information Broadcasting

Searching and Reviewing

Knowledge Sharing


Put it all together…

Knowledge production and integration compile
together with non
electronic information as well
as electronic information to for a database of
knowledge that is the basis for KM.

Electronic Information

Data Mining and Data Warehousing

Two tools that help turn information and data into
useful knowledge


Data Warehouse

A database that stores
larges amounts of
historical business data

Another way:
Warehousing brings your
data together for analysis

Data Mining

The practice of extracting
data from a warehouse in
order to analyze patterns
trends and relationships

Another way: Mining
sorts through the data you
collected and turns up
interesting and useful

Why Use DM?

Firms identify patterns
which generate valuable
knowledge for the

How Companies Use DM

Market Segmentation

Customer Churn

Fraud Detection

Direct Marketing

Interactive Marketing

Market Basket Analysis

Trend Analysis

Fraud Detection Example

Mart Example

How These Apply to KM

DM and DW can turn data into useful
knowledge that can give companies a
competitive advantage over their rivals

DM takes a proactive approach to selling
products to customers rather than a reactive
approach by predicting patterns, trends, and

Why So Difficult

Implementation of KM programs

How to estimate the return on KM

How to store KM data

Techniques on utilization of the knowledge

Implementation Problems

Knowledge is Power

Incentive structures to
share information

Resistance to Change

People are reluctant to

56% of executives say
“changing people’s
behavior” is the most
difficult obstacle

“Sharing knowledge is an unnatural act. You
can't just stand up and say, 'Thou shalt
share knowledge'

it won't work.”


Returns on KM

KPMG invests $40 million

Quality knowledge is the goal

“Data separates you from the competition”

How to Store New Data

New techniques to “gather, store, process and
distribute this kind of knowledge”

It isn’t contained in typical rows or columns

How do we store the human element?

Utilization of the Knowledge

Problems with change

Dept. of Defense and post combat data

Management must encourage change

Implementation Barrier

“94% of business executives believe that it
would be possible, through more deliberate
management, to leverage the knowledge existing
in [their organization] to a higher degree”


Implementation Barrier

“71% believe embedding knowledge in process,
products, and/or services”

Why not in the people making these processes,
products and/or services?

Implementation Case Study

E&Y implements a knowledge management
system in an effort to reach $1 billion in
revenues by 1997.

Process called Future State 97 or FS97.


A major focus was to capture knowledge

Elected a Chief Knowledge Officer

Formed a Center for Business Knowledge


People were the key

Technology was the enabler

How do you adapt to the change needed?


E&Y had the same difficulties as others

Implementation was a new venture and risky

Returns are still not 100% clear, though they are
assumed to be part of the KM program

How did they obtain and keep the data?

Problems getting the knowledge distributed