1

CHAPTER 9

Knowledge Management

2

Knowledge Management

Ancient Collaboration at the

organizational level Could revolutionize

collaboration and computing

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

3

Opening Vignette: Knowledge Management

Gives Mitre a Sharper Edge

Mitre - knowledge management system (KMS) to leverage organizational knowledge effectively throughout the organization

Internal marketing during development Supported at the highest level Provided an important application

Organizational culture shift was critical Saved $54.91 million / invested $7.19 million

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

4

Knowledge Management

Leverages intellectual assets Delivers appropriate solutions to

anyone, anywhere Good managers have always done

this Ancient concept

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

5

Knowledge ManagementHelps organizations

Identify Select Organize Disseminate TransferImportant information and expertise

within the organizational memory in an unstructured manner

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

6

Knowledge

As a form of capital, must be exchangeable among

persons, and must be able to grow

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

7

Knowledge Management

Requires a major transformation in organizational culture to

create a desire to share

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

8

Knowledge

Information that is contextual, relevant, and actionable

Knowledge is INFORMATION IN ACTION

Higher than data and information

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

9

Knowledge Types

Advantaged knowledge Base knowledge Trivial knowledge Explicit knowledge Tacit knowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

10

Explicit Knowledge

Objective, rational, technical Easily documented Easily transferred / taught /

learned

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

11

Tacit Knowledge

Subjective, cognitive, experiential learning

Hard to document Hard to transfer / teach / learn

Involves a lot of human interpretation

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

12

DATA

ProcessedINFORMATION

Relevant and actionable

KNOWLEDGE

Relevant and actionable data

Data, Information and Knowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

13

Knowledge Has

Extraordinary leverage and increasing returns

Fragmentation, leakage, and the need to refresh

Uncertain value Uncertain value sharing

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

14

Organizational Learning and

Organizational Memory Group memory Learning The learning organization Organizational memory Organizational learning Organizational culture

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

15

Organizational Memory

Individual wells Information well Culture well Transformation well Structural well Ecology well

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

16

Organizational Learning Focuses

Knowledge source Product-process focus Documentation mode Dissemination mode Learning focus Value chain focus Skill development focus

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

17

Organizational Culture

Culture is a pattern of shared basic assumptions

Most important aspect of KM success

Why don’t people share knowledge?

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

18

Knowledge Management (KM)

A process of elicitation, transformation, and diffusion of knowledge throughout an enterprise so that it can be shared and thus REUSED

Helps organizations find, select, organize, disseminate, and transfer important information and expertise

Transforms data / information into actionable knowledge to be used effectively anywhere in the organization by anyone

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

19

How Core Competency is Linked to Explicit and Tacit Knowledge

TacitKnowledge

Policies, patents,decisions,stra tegies, IS, whitepapers, etc.

Conver t tacit knowledge intoarticulated and measurableexplicit knowledge

Core Competencies of the Organization

Explicit Knowledge

Expertise, know-how, ideas,organization culture, values, etc.

Process of explicationmay generate new tacitknowledge

TacitKnowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

20

KM Objectives

Create knowledge repositories Improve knowledge access Enhance the knowledge

environment Manage knowledge as an asset

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

21

KMS Manage

Knowledge creation through learning Knowledge capture and explication Knowledge sharing and

communication through collaboration Knowledge access Knowledge use and reuse Knowledge archiving

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

22

Knowledge Repository

Not a database Not a knowledge base (like for

ES)

A collection of internal and external knowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

23

Knowledge Repository Types

External Structured internal knowledge Informal internal knowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

24

KM Activities

Externalization Internalization Intermediation Cognition

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

25

KM Features

Create a knowledge culture Capture knowledge Generate knowledge Explicate (and digitize)

knowledge Share and reuse knowledge Renew knowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

26

Cyclic Model of KM

Create knowledge Capture knowledge Refine knowledge Store knowledge Manage knowledge Disseminate knowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

27

Cyclic Model of KM

ManageKnowledge

StoreKnowledge

DisseminateKnowledge

RefineKnowledge

Create Knowledge

CaptureKnowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

28

KM Examples Mitre Dow Chemical Company Xerox Chrysler Monsanto Chevron Buckman Laboratories KPMG Ernst & Young Arthur Andersen Andersen Consulting

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

29

Why Adopt KM

Cost savings Better performance Demonstrated success Share Best Practices Competitive advantage

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

30

Chief Knowledge Officer (CKO)

Maximize firm’s knowledge assets

Design and implement KM strategies

Effectively exchange knowledge assets

Promote system use

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

31

KM Development

Need a knowledge strategy Identify knowledge assets

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

32

KM Development

1. Identify the problem2. Prepare for change3. Create the team4. Map out the knowledge5. Create a feedback mechanism6. Define the building blocks7. Integrate existing information

systemsDecision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.

Copyright 2001, Prentice Hall, Upper Saddle River, NJ

33

Strategies for Successful KM

Implementation1. Establish a KM methodology2. Designate a pointperson3. Empower knowledge workers4. Manage customer-centric

knowledge5. Manage core competencies

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

34

More Strategies

6. Foster collaboration and innovation

7. Learn from best practices8. Extend knowledge sourcing9. Interconnect communities of

expertise (communities of practice)

10. Report the measured value of knowledge assets

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

35

KM Methods, Technologies, and

Tools Email or messaging Document management Search engines Enterprise information portal Data warehouse Groupware Workflow management Web-based training Others

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

36

How to KM

Integrate the technologies to manage knowledge effectively

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

37

KM Tool Categories

Information architecture Technical architecture Application architecture

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

38

KM Software Knowware still developing but…

DecisionSuite Wincite DataWare KnowledgeX Knowledge Share

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

39

KM Success Economic performance Technical and organizational infrastructure Standard, flexible knowledge structure Knowledge-friendly culture Clear purpose and language Change in motivational practices Multiple channels for knowledge transfer Worthwhile level of process orientation Nontrivial motivational encouragement Senior management support

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

40

Measuring Success

Balanced Scorecard Skandia Navigator Economic Value Added Inclusive Valuation

Methodology

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

41

KM Failure Causes

1. Unclear definition of knowledge2. Overemphasis on knowledge

stock, not flow3. Belief that knowledge exists

outside people’s heads4. Not recognizing the importance

of managing knowledge5. Failure to manage tacit

knowledgeDecision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.

Copyright 2001, Prentice Hall, Upper Saddle River, NJ

42

More Failure Causes6. Failure to disentangle knowledge from

its uses7. Downplaying reason and thinking8. Focusing on the past and present, not

the future9. Failure to recognize the importance of

experimentation10. Substituting technology contact for

human interface11. Overemphasis on measuring

knowledge, not its outcomes

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

43

KM and AI

Can use AI in KM Can use KM in AI Data mining can create

knowledge

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

44

Electronic Document Management

A KM for documents Everyone is on the same page Documents are up to date Simple example: corporate

phonebook

Lower costs Better performance

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

45

KM – The Future

Not a fad Impact is immense Research on organizational

culture How to do each step Are they the right steps?

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

46

Knowledge Management

The definition is clear The concepts are clear The challenges are

Clear Surmountable

The benefits are clear (and can be huge)

The tools and technologies are viable

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

47

Knowledge ManagementKey Issues

Organizational culture Executive sponsorship Measuring success

The future: Comprehensive standardized KM packages

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

48

Knowledge Mangement“The wise see knowledge and action

as one” (Bhagvad Gita)Intelligent organizations recognize

that knowledge is an asset, perhaps the only one that grows over time, and when harnessed effectively can sustain the ability to continuously compete and innovate.

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ

49

Case Applications

9.1 Chrysler’s New Know-Mobiles

9.2 Knowledge the Chevron Way

Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ