University of Debrecen

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Knowledge management

• University of Debrecen
• Faculty of Economics and Business Administration
• Shared Services Experts Specialisation
• Lecturer Éva Farkas
• 2011/2012

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What is knowledge management?

• Introduction to Knowledge Management

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Introducing Thoughts

• Knowledge based economy
• Knowledge has become the key asset to drive
  organisational success
• Knowledge and intellectual capital
• Emerging knowledge intensive sectors (business
  services)
• Knowledge becomes obsolete
• Life Long Learning initiations

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The Roots of Knowledge Management

• Wide variety of disciplines such as philosophy,
  business management, anthropology, information
  sciences, psychology
• Multidisciplinary nature
• Some literature on knowledge management is
  heavily information systems oriented.
• Other literature focus on the HRM aspects of
  knowledge creation and sharing

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The Roots of Knowledge Management II.

• Discipline roots
• Anthropology, Economics, Strategy, Information
  Sciences, Computer Sciences, Psychology,
  Management Sciences, HRM, Sociology, Strategy
• Contents
• Change management, Culture, Intellectual capital,
  KM systems, KM tools, Learning organisation,
  Organisational learning, Strategic management
• Activities
• Knowledge creation, translation, mobilisation,
  transfer

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Jasaphara 201113
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Practical aspects on Knowledge Management

• KM is the critical element of a business strategy
  that will allow the firm to accelerate the rate
  at which it handles new market challenges and
  opportunities, and it does so by leveraging its
  most precious of resources, collective know-how,
  talent and experience intellectual capital.
• KM promotes practices and technologies that
  facilitate the efficient creation and exchange of
  knowledge on an organisation-wide level.
• KM is also extended to include partners,
  suppliers and customers to a so-called
  collaborative business environment.

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Practical aspects on Knowledge Management II.

• Knowledge Management
• is not a technology, although technology should
  be exploited as an enabler.
• is not a directive, although strategic
  leadership is imperative to successful KM.
• is not a business strategy, although one aligned
  with the tenets of knowledge management must
  exist.
• is not knowledge engineering.
• is about processes, not just digital networks.
• is not about building a smarter intranet.
• is not about a one-time investment.

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The relevance of KM Some typical KM job titles

• Knowledge coordinator
• Director of KM
• Knowledge economist
• Knowledge resources librarian
• KM project manager
• Knowledge consultant
• Chief knowledge officer
• Knowledge administrator
• Knowledge manager

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Data, knowledge, information, wisdom

• Basic elements of KM

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Data

• known facts or things used as a basis of
  inference or reckoning
• We acquire data from the external world through
  our senses and try to make sense of these signals
  through our experiences.
• Quantitative data narrow meanings
• Qualitative data depends on the perception of
  the transmitter and the reciever of the data

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Information

• Organised data depends on the situation
• Has deeper meanings
• Gives shape to the data and makes a difference to
  the insight of the reciever of the data.
• The reciever determines whether a message is data
  or information

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Knowledge

• actionable information helps to make better
  decisions
• Occurs by providing information at the right
  place, at the right time and in the appropriate
  format.
• Allows us to act more effectively than
  information and equips us with a greater ability
  to predict future outcomes.
• Complexity of knowledge
• Tacit knowledge (know how)
• Explicit knowledge (know what)

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• The Evolution of KM
• The drivers of the KM In which situations in
  firm level KM is useful?

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THE Evolution of knowledge management
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Historical aspect of Knowledge Management I.

• Oral traditions
• Human memory as a storage
• Reliability of oral traditions is questionable
• Limits our memories, context of the knowledge,
  social background
• Redundancy unnecessary words, less information
• Different bases similar/same expressions with
  different meaning

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Historical aspect of Knowledge Management II.

• Cuneiform
• The first possibility to codify the knowledge
• Archiving, searching
• Problems and solutions
• Libraries sources written by hand
• Huge amount of codified knowledge
• Timeless knowledge

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Historical aspect of Knowledge Management III.

• Paradigm shifts
• Printing
• The durability of sources better
• The amount of codified stories and knowledge was
  increased in Europe
• It was possible to internalise the knowledge in
  the households
• Digital Age
• More storage
• More knowledge
• Impersonal knowledge
• E-books
• E-learning
• Telecommunication
• No borders and no limits

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• Many companies suffered from Air Flight
  In-house Magazine syndrome - where the busy
  executive (with a budget) read an article on
  Knowledge Management, arrived back in the office
  and implemented some sexy Knowledge Management
  technology.

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Drivers, problem symptoms and solutions of km
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Business drivers of the new economy
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Cross-global drivers of knowledge management

• Why managers might be interested in KM?
• Improving knowledge sharing across units
• Improving competitive response
• Accelerating the rate of innovation
• Reducing or controlling costs
• Reducing loss of intellectual assets from
  turnover
• Increased need to operate globally
• Emergence of internet technology
• Better integration of mergers and acquisitions

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Types of KM buying behaviours and costumer
segments Conservative Adopters (35-45)

• Needs basic functionality, cost savings, process
  efficiencies and service improvements
• Profile rely on groupware systems to provide KM
  functionality willing to trade functionality for
  seamless integration
• Example
• Our need for KM is not so great. We only have 30
  products. Our small organization learns
  informally. It is helpful for dealing with
  customers and suppliers as well as sales
  proposals. (Metal Component Manufacturer)

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Types of KM buying behaviours and costumer
segments Fast Followers (25-30)

• Needs deep KM functionality in a few critical
  business processes high needs low capabilities
• Profile initiate projects for limited set of KM
  components expect large savings from solving
  their most significant KM problem preferring
  all-in-one solutions
• Example We need KM to help makee a wafer
  fabrication plant capacity decision which
  provided an alternative to having to invest a lot
  of money in a new plant (Electronics
  Manufacturer)

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Types of KM buying behaviours and costumer
segments Solution Buyer (10-15)

• Needs broad range and deep functionality across
  KM components process efficiencies and service
  improvement
• Profile Typically larger companies with deep
  needs across a range of functions aggressively
  adopt technology on a project by project basis
  prefer all-in-one solutions from trusted advisors
• Example We generated over 100 m US dollar
  savings and revenues by using KM to deepen our
  understanding of our world-class patent
  inventory. This allowed us to identify obsolete
  patents to our business and generate royalties
  and tax credits from third parties with the help
  of our KM services vendor. (global
  pharmaceutical manufacturer)

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Types of KM buying behaviours and costumer
segments Self-sufficient Integrators (1-2)

• Needs innovative source of competitive advantage
  within their industries leading edge status in
  their industries
• Profile market leaders their competitive edge
  is based on adopting new technologies quickly
• Example The new world order is going to be
  swapping information for new revenues. We are
  taking what weve learnt internally and selling
  it to clients. Our vision is to create an
  electronic market place for intellectual property
  and intermediate between buyers and sellers.
  (prof. Services partnership)

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Types of KM buying behaviours and costumer
segments Business Design Innovators (1-4)

• Needs innovative source of competitive advantage
  within their industries sufficiently early to
  reap benefits first
• Profile market leaders, preferring 1-2 IT
  service providers often driven by visionary
  leaders who view advanced KM capabilities as a
  key to achieving leading edge status.
• Example We are extending our global KM Product
  Development 2000 project, which significantly
  improved efficiency by eliminating variation and
  improving performance. We are now using a
  trading network to leverage our entire supply
  chain and share best practices while driving down
  costs. (automotive manufacturer)

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Intellectual capital
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Different types of capitals

• Capital
• is mainly financial cathegory
• Indicates the worth of the company
• Financial
• Venture
• Knowledge
• Social
• Converting capitals
• The worthiest are the knowledge capital and
  social capital
• Different converting strategies
• Financial to knowledge
• Financial to social
• Knowledge to financial
• Knowledge to social

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Characteristics of intellectual capital

• Financial and non-financial sources in firms
• Until 2005 intellectual capital was particularly
  measured by financial indicators
• Intellectual capital the worth of knowledge and
  the level of education
• Differences between human and organisational
  capital
• Individualistic character of human capital
• Unique composition
• Synergy effect
• Efficiency
• Performance

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Characteristics of intellectual capital II.

• Stewart (1997) IC is the intellectual material
  knowledge, information, intellectual property,
  experience that can be put to create wealth
• Intangible assets of a company organisational
  (structural) and human capital
• Distinction between tangible and intangible
  assets
• Structural capital tangible asset
• Structural capital intangible asset
  (reputation, routines, habits, organisational
  culture)
• Human capital intangible asset (degrees,
  diplomas, tacit knowledge etc.)

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Characteristics of intellectual capital III.

• Approaches
• Business Strategy
• Knowledge development learning organisation,
  conservation management, innovation
• Knowledge leverage KM, core competencies,
  invisible assets
• Measurement financing
• HR Accounting intangible asset monitor
• Scorecards balanced scorecard, financial
  scorecard

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How to measure IC?

• Tobins q (1969)
• Nobel prize winner
• Compares the market value of an asset with its
  replacement cost (book value). If the quotient q
  (market-to-book-value) is less than 1, the market
  value of the product or service is lower than its
  cost of reproduction.
• HRM
• Identifying meaningful and reliable measurement
  tools
• Expensive, time-consuming, not enough exact
• Differences in each firms
• Defining whose potential benefits outweigh its
  expense
• Moral questions very subjective , superficial
• Benchmarking in measurement of HR performance
• Apparent similarities could cover differences

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Balance Scorecard Method

• Includes many different perspectives
• Costumer
• Financial
• Internal business perspective
• Organisational performance
• Innovation and learning performance
• Weaknesses
• How to compare?
• Different sectors, different meanings in each
  dimensions
• Mix of qualitative and quantitative aspects

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• Edvinson and Malone (1993)
• Intellectual capital Human capital Structural
  Capital
• Structural Capital customer capital
  organisational capital
• Organisational Capital innovation capital
  process capital
• Lowendahl (1997)
• Additional elements competences and relational
  resources
• Individual and collective dimensions
• Sullivan (1998)
• Human capital capabilities of employees,
  contractors and suppliers to solve customer
  problems
• Experiences, know how, skills, creativity
• Intellectual assets and intellectual property

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Intellectual capital as a narrative

• Qualitative evaluation methods
• Roos (1997) IC as a language for thinking,
  talking and doing something about the drivers of
  companies future earnings
• Elements
• Relationships with customers and partners
• Innovation efforts
• Company infrastructure
• Knowledge skills of organisational members
• Mouritsen (2002)
• Elements of a good narrative
• Product/service
• An account of value to user
• Presentation of firms intellectual production
  function
• Problems
• Knowledge sharing difficulties
• Relationships between interpreter and receiver

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Human and social capital

• Becker (1964)
• Development of human capital activities that
  influence monetary and psychic income by
  increasing the resources in people.
• Human vs. Intellectual capital
• Economic theory has not dealt adequately with the
  problem of knowledge creation.
• Human capital flows and their transformation are
  predominantly discussed from an individual or
  organisational learning perspective.
• There is a distinction between human embodied
  knowledge (human capital) and non-embodied
  knowledge (organisational capital).
• Social capital
• The organisational capabilities are higher
  through cooperating individuals.
• Structural dimension the linkages between actors
  (hierarchy of networks, density of networks)
• Relational dimension history of interactions
  between individuals
• Cognitive dimension leads shared meanings,
  interpretations, mental models of views

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Knowledge auditing in practice

• Truch (2001) value-based KM
• The evaluation of knowledge assets is most
  effective when linked to a firms key processes
  and aligned to its strategic development.
• Strategic review top-down review of a business
  strategy
• Process review bottom-up identification of key
  business processes and the knowledge assets they
  produce in terms of tacit and explicit knowledge.
  A knowledge inventory of tacit and explicit
  knowledge is developed at this stage.
• Synthesis evaluation of the knowledge inventory,
  cost-benefit analysis of current and potential
  knowledge assets

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Creating knowledge I.
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Knowledge Management Circle
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• Organisational learning

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Individual learning

• Skinner Stimulus-response
• Response probabilities from various stimuli in
  the learning process
• Reinforcement theory
• Positive and negative reinforcement
• Information-processing perspective
• Learning is the changing process regarding the
  state of knowledge
• Constructivist perspectives
• Learning is a process where individuals develop
  new ideas based on their current and past
  knowledge and experiences.
• Social learning (Bandura)
• Human behaviour continuous interaction between
  cognitive, behavioural and environmental factors.

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Individual learning

• Learning circles
• Demming (1986) Plan Do Check Act (PDCA)
• Schein (1987) observation emotional reaction
  judgement intervention
• Argyris-Schon (1978) discovery invention
  production - generalisation
• Lewin observation and reflections concrete
  experience testing implications of concepts in
  new situations formation of abstract concepts
  and generalisations
• Bateson (1987) deutero-learning
• Argyris (1991) disparity between espoused
  theories and theories in use
• Revans (1977) action learning

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Team learning

• Senge (1990) the capacity of a group to engage
  appropriately in dialogue and discussion
• Effective team learning
• Ability to think insightfully about complex
  issues and bring together the collective
  intelligence of the team
• Ability to provide innovative and coordinated
  actions.
• Ability to share practices and skills between in
  organisations
• If I make a decision it is a possession, I take
  pride in it, I tend to defend it and not listen
  to those who question it. If I make sense, then
  this is more dynamic and I listen and I can
  change it. A decision is something you polish.
  Sense making is a direction for the next period.
  (Wick 2002)

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Drivers of organisational learning

• Success or failure?
• Failure and mistakes are often not tolerated
• Culture of Error harvesting
• People can share their mistakes
• People do not want to hide hard-won lessons
• The benefits of error harvesting
• Prevent costly mistakes
• Improve the organisational culture
• Quality circles and action learning groups

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Drivers of organisational learning II.

• Success or failure?
• Maintains the status quo
• Disincentive in terms of innovation
• Lead to
• Satisfaction
• Restricted search
• Restricted attention
• Risk aversion
• Homogeneity
• play it safe

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Organisational learning framework 4 I
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Intuiting

• Largely a subconscious process
• Often requires some form of pattern recognition
• Pattern recognition will support exploitation.
• For exploration help to generate new insights
  and novel applications.
• Metaphors and imagination
• Help provide the language to communicate ones
  insight to others.

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Interpreting

• Explaining throuh words and/or actions an insight
  or an idea to others
• The way how the person or the organisation thinks
• The framework of the interpretation is our
  cognitive map, our knowledge
• In a group multiple and potentially conflicting
  interpretations

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Integrating

• The field of developing shared understanding and
  taking coordinated actions through mutual
  adjustment.
• Group dialogue and storytelling are seen as major
  tools for developing new and deeper shared
  understandings.
• Institutionalising
• Ensures that routinized actions occur.
• Codification processes systems, structure and
  strategies

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Knowledge acquisiton

• Elements
• Congenital learning
• Experimental learning
• Vicarious learning,
• Searching and noticing
• Assumptions of creating knowledge
• Organisational experiments may take the form of
  pilot studies with feedback of findings and
  recommendations to the organisation
• Codification
• Enhancing adaptability as an experimenting
  organisation with a greater focus on exploration
  rather than exploitation
• Unintentional learning
• Learning by doing,

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Unlearning

• is a process through which learners discard
  knowledge. Unlearning makes way for new responses
  and mental map.
• Environment
• Stable
• Unstable

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Organisational routines

• Elements of Routines
• Organisations norms
• Conventions
• Rules
• Procedures
• the way it operates on a daily basis
• Embedded
• Organisations culture,
• beliefs,
• frameworks
• Inertia within organisations

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Organisational routines II.

• Communicational channels
• Imitation
• Socialization
• Education
• Personalization
• Procedural vs. Declarative memory
• Lack of organisational routines
• Less efficient methods of collective actions
• Problems with new employees inclusion

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Organisational routines III.

• Triggers of changes in habitual routines in
  groups (Gersick and Hackman 1990)
• Encountering a novel state of affairs
• Experiencing a failure
• Reaching a milestone in the life of work of the
  group
• Receiving an intervention
• Having to cope with change in the structure of
  the group itself
• Different changes in OR
• Repairing routines
• Expanding routines
• Striving routines

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Absorptive capacity

• Applying new knowledge
• the ability of a firm to recognize the value of
  new external information, assimilate it, and
  apply it to commercial ends is critical to
  innovative capabilities. (Cohen Levinthal
  1990)
• Absorptive capacity
• Recognizing and understanding potentially
  valuable new knowledge outside the firm through
  exploratory learning
• Assimilating valuable new knowledge through
  transformative learning
• Using the assimilated knowledge to create new
  knowledge and commercial outputs through
  exploitative learning

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• Learning organisation

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• Learning organisation (Senge)
• System thinking
• Team learning
• Shared vision
• Mental models
• Personal mastery
• Organisational learning (Garvin)
• Problem solving
• Experimental learning
• Knowledge sharing
• Vicarious learning
• Experimenting

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The SECI model
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The starting point of the SECI model
Explicit
Tacit
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The elements of the SECI
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Self-transcending processes in SECI

• Socialization - Empathizing
• Tacit knowledge can only be shared if the self is
  freed to become a larger self that includes the
  tacit knowledge of the other.
• Externalization - Articulating
• Articulation of tacit knowledge involves
  techniques that help to express ones ideas or
  images as words, concepts, figurative language
  and visuals.
• Translating the tacit knowledge of customers or
  experts into readily understandable forms.
• Combination - Connection
• Capturing and integrating new explicit knowledge
• Dissemination of explicit knowledge
• Editing explicit knowledge in order to make it
  more usable
• Internalization - Embodying
• Explicit knowledge has to be embodied in action
  and practice
• Using simulations or experiments to trigger
  learning by doing processes

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The nature of Ba

• Originating ba
• Individuals share feelings, emotions, experiences
  and mental models
• Interacting/Dialoguing ba
• Collective reflection are institutionalized in
  the company culture
• Cyber ba
• Place of interaction in a virtual world instead
  of real space and time
• Exercising ba
• Facilitate the conversion of explicit knowledge
  to tacit knowledge

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Knowledge assets in organizations

• Experimental knowledge assets
• Tacit knowledge through common experiences
• Skills and know-how of individuals
• Care, trust, loyalty
• Energy, passion and tension
• Routine knowledge assets
• Tacit knowledge routinized and embedded in
  actions and practices
• Know-how in daily operations
• Organizational routines
• Organizational culture

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Knowledge assets in organizations II.

• Conceptual knowledge assets
• Explicit knowledge articulated through images,
  symbols and language
• Product concepts
• Design
• Brand equity
• Systemic knowledge assets
• Systemized and packaged explicit knowledge
• Documents, specifications, manuals
• Database
• Patents and licenses

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Mobilising knowledge
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Organisational climate

• Lewin social environment theory
• Behaviour f (Person and Environment)
• Organisational vs. Psychological climate
• Shared perception or shared set of conditions?
• Organisational climate, , portrays
  organisational environments as being rooted in
  the organisations value system, but tends to
  present these social environments in static
  terms, describing them in terms of a fixed (and
  broadly applicable) set of dimensions.

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Organisational culture

• Organisational culture is the result of
  processes that arise from dynamic interactions
  between members of a social system.
• Culture refers to the deep structure of
  organizations, which is rooted in the values,
  belefs and assumpitons held by organisational
  members.

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Norms, artefacts and symbols

• The manifestations of culture
• Norms
• expectations of appropriate and inappropriate
  behaviour.
• Attach approval and disapproval to holding
  certain beliefs and attitudes and acting in
  particular ways.
• Artefacts
• Material objects, physical layouts, technology,
  etc
• Corporate architechture, etc.
• Symbols
• Words, statements, actions, material phenomenon

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How can norms promote innovation?

• Norms to promote implementation
• Common goals
• Autonomy
• Belief in action
• Norms to promote creativity
• Risk taking
• Rewards for change
• Opennes

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Values, beliefs, attitudes and assumptions

• Organisational values
• Core values
• Deeply ingrained principles that guide a
  companys action
• Often reflect the values of the founders
• Aspirational values
• Support new strategy,
• The company needs to compete in the future
• Permission-to-play values
• Minimum behavioral and social standards required
  of employees in the organisation
• Accidental values
• Common interest or personalities of employees

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Values, beliefs, attitudes and assumptions II.

• Dimensions of basic assumptions
• Whether an organisation dominates the external
  environment or is dominated by it.
• Whether truth and reality are recieved dogma,
  rules and procedures, a consequence of debate or
  what works
• Whether people are inherently lazy or
  self-motivated
• Whether doing and work are more primary than
  being and valueing employees private lives
• Whether human interaction is based on
  individualism or collectivism

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Typologies of organisational culture

• Handys typology of culture
• Power culture
• A person or a small group at the center of this
  culture
• Few rules, acting politically
• Role culture
• Bureaucracies where rules, procedures and job
  descriptions tend to predominate
• Stable environment is a good framework
• Person culture
• Individual autonomy and collective action
• Acacemies, architechts, etc
• Task culture
• Project or matrix organisations
• Mutual respect is based on ability rather than
  status or age

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Typologies of organisational culture II.

• Deal and Kennedys typology
• Tough-guy/macho culture
• High risks and fast feedback
• Speed, international competition
• Uncooperative and lead to high staff turnover
• Work-hard, play-hard culture
• Low-risk but quick feedback environments
• Action oriented but quick-fix solutions
• Bet-your company culture
• High-risk but slow-feedback environments
• Cooperation and innovation
• Process culture
• Low-risk and slow-feedback environments
• High level of standardization (routines,
  procedures, rules, hierarchy)

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Measuring organisational culture

• Typing surveys
• Classify organisations culture and the connected
  values
• Assumption the organisations fit into strictly
  defined categories ? the organisational decisions
  can be predictable thanks to these typology
• Profiling surveys
• Develop a profile of the organisaton on multiple
  categories of norms, behaviours and values
• Effectiveness survey assess organisational
  values associated with high levels of performance
• Descriptive survey measure organisational values
• Fit profiles assess the level of fit between an
  individual and organisation

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Organisatonal Culture Inventory

• Instruments
• Concern for people or task
• Behaviour driven by self-actualisation or
  security needs
• Profile survey
• Self-Actualising norms/Humanistic-encouraging
  norms
• Conventional / Dependent norms
• Power/Competitive norms
• Achievement/Affiliative norms
• Approval/Avoidance norms
• Oppositional/Perfectionistic norms
• Typing survey
• Constructive culture
• Passive/Defensive culture
• Aggressive/Defensive Culture

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Constructive norms (promoting satisfaction
behaviours)

• Achievement culture
• Valueable members,
• who set challenging but realistic goals,
• establish plans to reach those goals,
• Persue a standard of excellence
• Self-actualising culture
• Value creativity
• Quality over quantity
• Both task accomplisment and individual growth
• Members are encouraged to gain enjoyment from
  their work, develop themselves
• Think in unique and independent ways
• Humanistic-Encouraging
• Person-centered organisation
• Members are expected to be supportive,
  constructive
• Help others to grow and develop
• Affiliative culture
• Interpersonal relations are important
• Deal with others in a friendly way

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Passive/Defensive norms(promoting
people-security behaviours)

• Approval culture
• Conflicts are avoided
• Interpersonal relations are pleasant
• Go along with others
• Conventional culture
• Conservative, traditional and bureaucratically
  controlled
• Members are expected to be conform, follow the
  ruls and make good impressions
• Always follow policies and practices
• Dependent culture
• Hierarchically controlled and non-participative
• Centralised decision making routins
• Please those in positions of authority
• Avoidance culture
• Negative reward system
• Wait for others to act first

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Aggressive/Deffensive norms(promoting
task-security behaviours)

• Oppositional
• Members gain status and influenc by being
  critical
• Confrontation and negativism are rewarded
• Point out of flaws
• Power
• Structured on the basis of authority inherent in
  members positions
• Charge taking and controlling subordinates are
  rewarded
• Build up ones power base
• Competitive
• Members are rewarded for outperforming one
  another
• Win-lose framework
• Turn the job into a contest
• Perfectionist
• Perfectionism, persistence and hard work are
  valued
• Members must avoid any mistake, keep track of
  everything and work long hours
• Do things perfectly

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Communities of practice

• CoP are groups of people who share a concern, a
  set of problem, or a passion about a topic, and
  who deepen thier knowledge and expertise in this
  area by interacting on an ongoing basis.
• The role of internet
• Communities of transactions
• Communities of interest
• Communities of relationships (shared life
  experience)

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Communities of practice II.
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Communities of practice III.

• Benefits for individuals
• Sense of identity
• Confidence and trust through meeting like-minded
  individuals
• Share similar problems and outlooks
• Provide forum to facilitate knowledge creation
  through externalization of tacit knowledge
• Increasing knowledge flows
• Benefits in organisations
• Help drive strategy
• Start new lines of business
• Transfer best practices
• Develop professional skills
• Help companies recruit and retain talents.

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Communities of practice IV.

• Communities of practice vs. Networks of practice
• Network of practice
• Not self-selecting
• Rely on formal institutional arrangements
  (examination to control membership)
• Similar to canonical practices
• ? Communities of practice or Network of practice
  led groups?
• Enhancing features of communities of practice
• Events
• Leadership
• Connectivity
• Membership
• Learning projects
• Artefacts

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Strategic management perspectives

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Developing a knowledge management strategy

• Mintzberg (1991)
• The connection between efficiency and innovation
• Slow market changes
• Rapid market changes
• The most common KM strategies
• Codification strategy
• Achieve scale in knowledge reuse
• Personalisation strategy
• Less about technology and more about people

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Codification strategy

• Technology led
• Explicit knowledge orientation
• Codify knowledge
• Use databases
• High turnovers

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Personalisation strategy

• People-led
• Tacit knowledge orientation
• Engage in dialogue
• Channel expertise
• High profits

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Manifestations of strategies

• Codification strategy
• Identifies different knowledge bases (Zack 1999)
• Mapping the knowledge
• Core knowledge
• Advanced knowledge
• Innovatitve knowledge
• Business knowledge and the tools associated with
  them (Drew 1999)
• What we know we know
• What we know w do not know
• What we do not know we know
• What we dont know we dont know
• The case of the knowledge gap

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Knowledge and strategic gap

• Knowledge gap
• Given vs. Required knowedge
• Strategic gap
• What a firm must do vs. What a firm can do
• Solving strategies
• Persue a conservative knowledge strategy of
  exploiting past internal knowledge (similar to a
  codificaiton strategy)
• Persue an aggressive knowledge strategy that
  integrates exploration and exploitation of
  internal and external knowledge (a combination of
  a codifcation and personalisation strategy)

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Innovation strategies

• The roots of the ideas
• Appreciation a threatening, disruptive event
  leading to the idea
• Articulation ideas surface as solutions
• Adoption ideas may galvanise through networks
  and political debate
• Institutionalisation ideas gain legitimacy and
  are taken for granted
• Decay ideas become outmoded

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Knowledge management systems
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KM perspectives I. - Data and information

• Elements
• Data is facts, raw numbers.
• Information is processed / interpreted by data.
• Knowledge is personalised information.
• Implication for Knowledge Management
• KM focuses on exposing individuals to potentially
  useful information and facilitating assimilation
  of information
• Implications for KM Systems
• KMS will not appear radically different from
  existing IS, but will be extended towards helping
  in user assimilation of information

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KM perspectives II. State of mind

• Starting point
• Knowledge is the state of knowing and
  understanding
• Implications for KM
• KM involves enhancing individuals learning and
  understanding thorugh provision of information
• Implications for KMS
• Role of IT is to provide access to sources of
  knowledge rather than knowledge itself

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KM perspectives III. - Object

• Starting point
• Knowledge is an object to be stored and
  manipulated
• Implications for KM
• Key KM issue is building and managing knowledge
  stocks
• Implications for KMS
• The role of IT involves gathering, storing and
  transferring knowledge

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KM perspectives IV. - Process

• Starting point
• Knowledge is a process of applying expertise
• Implications for KM
• KM focus is on knowledge flows and the process of
  creation, sharing and distributing knowledge
• Implications for KMS
• Role of IT is to provide link among sources of
  knowledge to create wider breadth and depth of
  knowledge flows

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KM perspectives V. Access to information

• Starting point
• Knowledge is a condition of access to information
• Implications for KM
• KM focus is organised access to and retrieval fo
  content
• Implications for KMS
• Role of IT is to provide effective search and
  retrieval mechanisms for locating relevant
  information

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KM perspectives VI. - Capability

• Starting point
• Knowledge is the potential to influence action
• Implications for KM
• KM is about buliding core competences and
  understanding strategic know-how
• Implications for KMS
• Role of IT is to enhance intellectual capital by
  supporting development of individual and
  organisational competences

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Document management systems

• Value adding facilites of DMS
• Control to ensure only one user modifies a
  document at a time
• Audit trail to monitor changes in a document over
  time
• Security processes to control user access to
  documents
• Organisation of documents into related groups and
  folders
• Identifacion and retrieval of documents according
  to text they contain (free-text searching)
• Recording information assosiated with the
  document as meta data suc as author, creation
  date and title
• Ability to route documents from one user to
  another in a controlled fasion based on the
  workflow
• Converting paper documents into electronic format
  by scanning
• Organising documents into groups to enable them
  to be distributed to target audiences

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DMS II.

• Organisational challenges
• Privacy the need to balance the desire to track
  visitors through site logs and the need for
  privacy also the need to deliver sensitive
  information in a largely anonymous manner
• Currency of information whether documents are
  updated regularly date of last change
• Performance becomes an issue in high-volume,
  transaction oriented application.
• Security to bar access to unathorised personnel
  from sensitive financial, company or personnel
  records.

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Decision support system

• Major capabilties of DSS
• Provide support in semi-structured and
  unstructured situations
• Support several sequential and interdependent
  decisions
• Support intelligence, design, choice and
  implementation phases of decision making
• Support a variety of styles and processes
• Are adaptive and flexible over time
• Improve accurancy, timeliness and quality of
  decision making
• Have substantial modelling capability to allow
  experimentation with different strategies under
  different scenarios

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DSS II.

• Model-driven DSS
• Provide a range of statistical, financial,
  forecasting etc models that may be applied at
  strategic.
• Allow the user to conduct what if analyses
  under a range of scenarios.
• Strategic models tend to help high-level
  strategic planninc processes within organisations
• Tactical models assist in allocating and
  controlling organisational resources such as
  capital budgeting and HR planning.
• Operational models help support day-to-day
  decision making.
• Analytical models cover methods of analysis
  (e.g. statistical model, financial model, etc.)
• Data-driven DSS
• More focus on examining patterns and
  relationships in large amounts of data.

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Group support systems

• Commercial products
• Lotus Notes, Microsoft NetMeeting, etc.
• Basic team processes supported by these products
• Communication easy, fast, cheap technologies
  (e.g. e-mails, voice-mail or video system, chat
  system, etc.)
• Knowledge sharing and learning quick, reliable
  and cheap tools (e.g message boards, document
  sharing sys. Or tele-consultation sys.,
  co-browser, etc.)
• Cooperation co-authoring facilities, etc.
• Coordination group calendar, event manager,
  etc. Or comand and control centre support system
• Social interactions media spaces and virtual
  reality

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Further Systems

• Executive information system providing high
  quality information and knowledge to executives
  to aid strategic plannings and controll processes
• Workflow management systems knowledge associated
  with workflows and aligning cases with rsources
  such as employees
• Customer relationship management systems
  developing knowledge about customers individual
  preferences and needs using knowledge
  repositories and knowledge disovery techniques.

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• Thank you for your attention!