km knowledge management

5/28/2018 KM Knowledge Management

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Knowledge Management

Minder Chen, Ph.D.

MBA 550

Process


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Minder Chen, 1996-2010 KM - 2

Knowledge Management

Introduction

Case Studies

KM Principles

Framework for Knowledge Management IT Enablers for Knowledge Management

Implementation of Knowledge Management

Some of the Big-Six Internal Practices

Conclusions


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Reference Books: The Know ledge-Creat ing Company : How Japanese Companies Create

the Dynamics o f Innovat ionby Ikujiro Nonaka, Hirotaka Takeuchi,Takeuchi Nonaka, Published by Oxford Univ Pr (Trade), May 1, 1995

Working Knowledge : How Organizations Manage What They Know, byThomas H. Davenport, Laurence Prusak, Published by McGraw-Hill,December 1, 1997

If Only we Knew What We Know : The Transfer of Internal Kn ow ledgeand Best Practic e, Carla O"dell and C. Jackson Grayson, Jr., Free

Press, 1998. Wellspr ings of K now ledge : Bu i ld ing and Sustain ing the Sources of

Innovat ion, by Dorothy Leonard-Barton, Published by HarvardBusiness School Press, October 1, 1995

Know ledge Management Tools(Resources for the Knowledge-Based

Economy) by Rudy L. Ruggles (Editor), Published by Butterworth-Heinemann, December 1, 1996

Intel lectual Capital : The New Wealth of Org anization s, by Thomas A.Stewart, Published by Doubleday, March 1997


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Knowledge Management (KM)

"I wish we knew what we know"

- a CEO -


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Definition of KM

Know ledge Management is the broad

pro cess o f locat ing, organizing ,t ransferring, and us ing the informat ion and

expert ise w ithin an organizat ion .

The overal l know ledge management

process is supported by fou r key enablers:

leadersh ip, cu lture, techno logy, and

measurement.

-- American Productivity & Quality Center


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Knowledge Hierarchy

Wisdom

Knowledge

Information

Data


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Information Information has meaning, relevance and purpose.

Information is organized with purpose and it can

potentially shape the receiver.

Data becomes information when its creator addsmeaning. We transform data into information by addingvalue in various ways:

Contextualized: we know for what purpose the datawas gathered

Categorized: we know the units of analysis or keycomponents of the data

Calculated: the data may have been analyzedmathematically or statically

Corrected: errors have been removed from the data

Condensed: the data may have been summarized in amore concise form

Source: Working Knowledge, p4


8/42 Minder Chen, 1996-2010 KM - 8Source: Working Knowledge, p. 6

Knowledge

Knowledge guides us in the process of analyzingdata and utilizing information.

Knowledge derives from information asinformation derives from data. Thistransformation happens through the followingprocesses:

Comparison: how does information about the situationcompare to other situations we have known?

Consequences: what implications does the informationhave for decisions and actions?

Connections: how does this bit of knowledge relate toothers?

Conversation: what do other people think about thisinformation?


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Wisdom Is

Unselfish

Enlightening

Insightful

Uncommon common sense Creative interpretation of patterns or

phenomenon

Applying knowledge and information for thegoodness of the world


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Information Overloading (Pollution)

"The impact of information is obvious. Itconsumes the attention of its readers.

Therefore, a wealth of information creates apoverty of attention."

-- Herbert Simon --

"Information absorbs the attention of therecipient. Therefore an overabundance ofinformation creates a deficit of attention."

-- Jeff Hire, Owens Corning Fiberglass --


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Moving Up the Knowledge Hierarchy

Where is the knowledge we have lost ininformation?

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


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Buckman Labs

Buckman Labs makes chemicals - but itsells knowledge. The challenge: invent away for the global sales force to spendmore time with customers and share itsbrainpower. What CEO Bob Buckman came

up with was

Source: Glenn Rifkin, "Buckman Labs In Nothing but Net," Fast

Company, June-July 1996, p. 118

http://www.fastcompany.com/03/buckman.html

Nothing but Net


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Knowledge Network

Close the gap with the customer. Stay in touchwith each other. Bring all of the company's

brainpower to bear in serving each customer. How do we stay connected?

How do we share knowledge?

How do we function anytime, anywhere - no matterwhat?

"When you ask one person a question, youhave the power of 1,200 employees behind you."

"Our knowledge network is the pillar of ourculture. And it's there to help you (thecustomer)."


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K'Netix

Used CompuServe to set up intra-companyprivate bulletin boards and e-mail access

($75,000 in monthly access charges).

Every Buchman salesperson has an notebookcomputer with a modem.

A case in point :1 question on pitch-controlstrategies, received 11 replies from 6 countries,and secured a $6 million order from a

Indonesian mill.


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Lessons Learned at Buckman Labs Effectively engage with the customer on the front line:

To deploy knowledge at the point of sale

To win business and serve the customer By creating private forums for core customers

Knowledge sharing is power. The most powerful people are those who become a source of

knowledge by sharing what they know

Knowledge builds trust, trust build knowledge. "What happen here is 90% culture change. You need to change

the way you relate to one another. If you can't do that, you won'tsucceed."

New knowledge, new metrics. The number of people in the organization working on relationship

with the customer, relative to the total people of the organization,will determine the momentum of the organization (1979: 16%1997: 50%)


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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 frommarkets 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,"

http://www.utexas.edu/kman/kmprin.htm


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Knowledge Management Principles

The more your share, the more you gain.

The knowledge acquisition process should bepart of the work process.

Integration of knowledge from multiple

disciplines has the highest probability ofcreating new knowledge and value-added.

Knowledge valuation should be conducted from

customers perspective.

KM focus should be on core knowledge criticalto sustaining companys competitive edge.


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Organizational Knowledge Management Model

Share

Create

Identify

CollectAdapt

Organize

Apply

Leadership KM Process

Technology

Source: Adapted from Arthur Andersen and the American Productivity and Quality Center

Organization

Group

Individual

BusinessProcess

Culture

PerformanceMeasurement

K l d M t C t t


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Knowledge Management Context

IT Infrastructure

Business Environment

Business Process &

Work Environment

Context & Content

IT infrastructure is a critical component of knowledgemanagement (KM); however, KM encompasses much

more than IT does.

Business strategy/goals Customer/supplier alliance Competitive factors

Collaborative processes Information sharing Process teams Reward system

Intranets/groupware/e-mail Object databases Document management Videoconferencing/EMS

Best practices External/internal knowledge

Process models/templates

K l d A t


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Knowledge Assets

Codified Knowledge Assets (Legally Owned)

PatentsCopyrightsTrademarksDocuments

Working Solutions Web of Relationships Communities of Practice Experience

Expertise and Theoretical Knowledge Database

Tip of the

iceberg

Source: The Knowledge Evolution, p. 35

K l d M t C l


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Knowledge Management Cycle

Acquisition

Storage

Dissemination

Integration

Creation

Learning

Utilization

Categorization

K l d M t C l


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Knowledge Management Cosmology

Gathering Data entry, OCR Pull Search Voice input

Organizing Cataloging Filtering Indexing Linking

Refining

Compacting Collaborating Contextualizing Mining

Disseminating

Push Sharing Alert Flow

KnowledgeManagement

Source: Adapted from Jeff Angus and Jeetu Patel, Knowledge-Management

Cosmology, Information Week, March 16, 1998, p. 59.

Th f O i ti l K l d C ti


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Theory of Organizational Knowledge Creation

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.

Tacit knowledge is personal, context-specific, andtherefore hard to formalize and communicate.

Explicit or codified knowledge is transmittable in formal,systematic language.

Two Dimensions of Knowledge Creation


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Epistemological

Dimension

Explicit

Knowledge

OntologicalDimension

TacitknowledgeIndividual Group Organization Inter-organization

Knowledge Level


Current

Focus

Source: Adapted from Knowledge-Creating Company, p. 57.

F M d f K l d C i


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Four Modes of Knowledge Conversion

Socialization Externalization

Internalization Combination

Tacit

knowledge

Explicitknowledge

Tacit knowledge Explicit knowledge

To

From


1 + 1

3

F M d f K l d C i


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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 creationof 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

Metaphor and Analogy for Concept Creation


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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 developmentMan-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 manufactureLow-cost manufacturing process

Home Bakery Hotel bread Hint of more delicious bread(Matsushita) (metaphor)

Osaka International Twist doughHotel head baker(analogy)


Knowledge Spiral


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Knowledge Spiral

Socialization Externalization

Internalization Combination

Dialogue

(Collective Reflection)

LinkingExplicitKnowledge

FieldBuilding

Learning by Doing


Contents of Knowledge Created in Four Modes


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Contents of Knowledge Created in Four Modes

To

From


Tacitknowledge

Explicitknowledge

Tacit knowledge Explicit knowledge

(Socialization)SympathizedKnowledge

(Externalization)ConceptualKnowledge

(Internalization)OperationalKnowledge

(Combination)Systemic

Knowledge

Sympathized knowledge:Shared mental models and technical skills.

Conceptual knowledge:Analogies & metaphors of products or processes.

Systemic knowledge:Prototypes or new technologies.

Operational knowledge:Project management, production process, new

product usage, and policy implementation.



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Epistemological

Dimension

Explicit

Knowledge

OntologicalDimension

Tacit

knowledgeIndividual Group Organization Inter-organization

Knowledge Level


Source: Adapted from Knowledge-Creating Company, p. 73.

Two Ways of Knowledge Transfer


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Two Ways of Knowledge Transfer

Information

Transfers articulated information

Independent of the individual

Static

Quick

Codified

Easy mass distribution

Uncodified

Slow

Dynamic

Dependent and independent

Transfers unarticulated

and articulated abilities

Tradition

Difficult mass distribution

Source: The New Organizational Wealth, p. 45

Japanese-Style vs Western-Style Organizational Knowledge Creation


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Japanese-Style vs. Western-Style Organizational Knowledge Creation

Group-based Tacit knowledge-oriented

Strong on socialization andinternalization

Emphasis on experience

Danger of group thinking & over-adaptation to past successes

Ambiguous organizational intention

Group autonomy

Creative chaos through overlappingtasks

Less fluctuation from topmanagement

Less redundancy of information

Requisite variety through cross-functional teams

Japanese Organization Western Organization

Individual-based Explicit knowledge-oriented

Strong on externalization andcombination

Emphasis on analysis

Danger of paralysis by analysis

Clear organizational intention

Individual autonomy

Creative chaos through individualdifferences

Less fluctuation from topmanagement

Less redundancy of information

Requisite variety throughindividual differences

Communities of Practice


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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 arewhere 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 tryto 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, "TheInvisible Key to Success," Fortune, August 5, 1996.

Knowledge Categorization


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Knowledge Categorization

Knowledge of products/services

Knowledge of processes/procedures

Knowledge of production technology

Knowledge of customers and markets

Knowledge of your competitors

Knowledge of your own people

Meta-knowledge

KM Enabling Technologies


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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-BasedReasoning Systems)

Knowledge Acquisition Sample


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Knowledge Acquisition Sample Goal:To capture the knowledge of high-performance Customer Service

Representatives (CSR)

Fosters learning

If the high-performing CSR left the firm, their knowledge wouldremain

Know ledge Needed:

What roles do the CSRs play? (expert, confidant, friend, salesman,

sympathizer?) What makes one CSR better than another?

What skills are required to be a good CSR?

What kinds of knowledge do CSRs need (procedures, regulations,products, industry trends)?

How do CSRs get this knowledge and keep it current? What knowledge and skills are not supported by current tools and

training?

What personality types tend to be more effective in this job?

APQC KM Inventory


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APQC KM Inventory1. Do you know what knowledge you have now? Who has

it? How to get it?

2. Are you systematically transferring knowledge insideyour own organization? How? Who?

3. Are you systematically acquiring outside knowledge?How? From whom? Is it being used?

4. Are you creating new knowledge? How? Where? Who?Is it being captured? Shared?

5. Are you leveraging knowledge: As a product? In yourproducts?

APQC KM Inventory


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APQC KM Inventory6. Are you measuring your knowledge assets? Your

return on knowledge? Are you investing in it? Wheredoes the investment appear in your financials?

7. Are you using technology to acquire, disseminate, andtransfer knowledge? To everyone? Everywhere?Anytime?

8. Are you encouraging...or discouraging...knowledgesharing? Are people sharing? If not, why not?

9. Do senior managers understand and supportmanagement of knowledge as a business strategy?

10. Are you looking at metaphors from the "new science"to help improve knowledge management?

Friction and Possible Solutions


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Minder Chen, 1996-2010 KM - 39Source: Working Knowledge, p. 97

Friction and Possible Solutions Lack of trust

Build relationships and trust through face-to-face meetings

Different cultures, vocabularies, frames of reference

Create common ground through education, discussion, publications,teaming, job rotation

Lack of time and meeting places:narrow idea of productive work Establish times and places for knowledge transfers:fairs,talk

rooms,conference reports

Status and rewards go to knowledge owners Evaluate performance and provide incentives based on sharing

Lack of absorptive capacity in recipients Educate employees for flexibility; provide time for learning; hire for

openness to ideas

Belief that knowledge is prerogative of particular groups not invented

here syndrome Encourage nonhierarchical approach to knowledge; quality of ideas more

important than status of source

Intolerance for mistakes or need for help Accept and reward creative errors and collaboration; no loss of status from

not knowing everything

Ernst & Youngs Framework for KM


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Ernst & Young s Framework for KM

Acquire Engagement

based Non

engagementbased

External

Input, Purge

Archive, Abstract Index, Catalog Coordinate Content

Storage

Add Value Identify needs Research Develop

proprietary

Package

Deploy On-demand Repeatable Event-based Subscription

Commercialize Monitor usage Measure

satisfaction

Provide InfrastructureOrganization - Culture - Technology - Public Relations

Source: Ernst & Young, and A Note on Knowledge Management, Harvard Business School 9-398-031, 1997

KPMG Peat Marwick U S : The Giant Brain


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KPMG Peat Marwick U.S.: The Giant Brain

Function Assurance

Tax Consulting

Line of Businesses Financial services

Healthcare & life services

Information and communication & entertainment

Manufacturing, retail, and distribution

Public services

GeographicAreas West

Southwest

Midwest

Southeast

MidAtlantic

Northeast

KPMG Intranet Categories


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KPMG Intranet Categories

Industry

Competitor

Client

Practice

Engagement

Product

News

Web