KM Terminology

confusion - data, information and knowledge

firms do not distinguish

clear definition is important for information and knowledge strategy

differences in the way how we we manage data, information and knowledge

- everything we can monitor by our senses- everything we can feel, smell, taste, and hear- a set of discrete, objective facts about events

Data can be evaluated by quantitative means:

Costs - how much we have to pay to get themSpeed - how quickly we can get themCapacity - how much data is available at the moment

and by qualitative means:

Do we have an access to data when we need itDo data meet our requirements, do they give us what we needCan we understand the message they bring

Data

Information is a building material of knowledge. Information is data with context.

Context is given to data during the process of their interpretation by the user.data related to his or hertheir needs and requirements relevance and purpose, some type of message or story receiver (user) makes the decision if the message is information or no

Information moves through both hard (technology) and soft (human) networks.

Quantitative measures: connectivity and transactions ( how many letters and e-mails come today)

Qualitative measures - usefulness = relevance

Information

value of information depends on the price and the personal relation

too much information success relies on our ability to choose

implementation of various, more or less convenient, information systems.

value creating activities

Contextualisation - the user knows for what purpose it was gatheredClassification – the user knows to which categories the data belongCalculation - data are analysed by mathematical and statistical methodsCorrection - data are corrected and errors are removedCondensation – the user summarises data

Information

Knowledge

 a changing system with interactions among experience, skills, facts, relations, values, thinking processes and meanings

simply: Knowledge = Information + x x is represented by our experience, mental models, relations, values, principles we live by, believes, commitments, etc.  related to human action and emotion

in human minds

in routines, processes, practices and norms in organisations

Knowledge

Knowledge is created from information through: Comparison - we compare the new information with what we know

about similar or other situations

Consequences - we evaluate what implications the information has for decisions and actions

Connections - we search for relations to knowledge we or other people already have

Conversation - we find out what other people think about the information

- in human minds

- it’s value is validated in an action

- difficult to trace the relation between it and the action

- too subtle and fluid to be stored, transported and created by technology – damage

- knowledge management no IS/IT solutions but work with knowledge bearers and owners - people

Knowledge

Knowledgeknowledge = information + experience, mental models, relations,

values, principles we live by, believes, commitment related to human action and emotion; it is created in our heads.

 two dimensions:

explicit and tacit

 can be expressed in formal and systematic language

shared in the form of data, scientific formulae, specifications, manuals, specifications, and so on

easily processed, transmitted and stored

Some authors think that explicit knowledge is equal to information.

Explicit Knowledge

Tacit Knowledge

highly personal and hard to discover and formalise

created from explicit knowledge and intuition, mental models, experience, crafts, skills etc., create it

rooted in action, procedures, routines, commitment, ideas, valueand emotions

difficult to communicate and share

can be turned to explicit (Nonaka and Takeuchi), cannot be turned to explicit (Polanski)

if we try to formalise it we damage it

Western nations tend to view knowledge as explicitrequire ‘truthfulness’ of knowledge

Japanese as primarily tacit

Knowledge and Cultures

these two types of knowledge are complementary and they are crucial for knowledge creation

• too much focus on explicit knowledge - ‘paralysis by analysis’

• too much focus on tacit knowledge - over reliance on past success and the elimination of new information,

ideas and viewpoints

Tacit and Explicit Knowledge

explicit and tacit knowledge interact with each other in people’s creative activities

Example: pianist

concentrating on how but fully concentrating on what

The same happens if we learn something new

- riding a bike, skating, walking, etc.  

Interaction of Explicit and Tacit Knowledge

is called ‘knowledge conversion’

within the individual - without the help of others

through interactions between individuals who own different types and contents of knowledge.

Interaction of Explicit and Tacit Knowledge

Socialisation Externalisation

Emphatising Arcticulating

Internalisation Combination

Embodying Connecting

Explicit Explicit

Explicit

Tac

it

Tac

it Explicit

Knowledge Conversion - SECI

process of connecting discrete elements of explicit knowledge into set of explicit knowledge that is more complex and systematic than any of its parts

combined through documents, meetings, phone calls

also includes the break down of concepts - corporate objectives

through three processesknowledge is collected and combined the new explicit knowledge is spread aroundexplicit knowledge is edited and again spread around

Combination

Internalisation is the process of embodying explicit knowledge as tacit knowledge

learning-by-doing

internalised knowledge is used to broaden, extend and change people’s tacit knowledge

base for shared mental models or various types of know-howputs together two dimensions:

- explicit knowledge is embodied in action and practice - explicit knowledge can be embodied by simulation and experiments

Internalisation

process of articulating tacit knowledge as explicit knowledge

explicit concepts from tacit knowledge

can be shared and becomes the basis for the creation of new knowledge

success depends on metaphors, analogies and models

Externalisation

process of sharing tacit knowledge through shared experience

people have to share the same experience through joint activities

traditional apprenticeship, communities, storytelling

difficult to manage

• personal experience with some activity or situation

• trust, love and care cultivated between members of the company or the community.

Socialisation

Tacit knowledge can be shared

By sharing we leave it in the tacit form.

can be shared between two people or by the group

Whole nations share their knowledge based on the a common history and experience.

There are three ways of how to share knowledge: storytelling apprenticeship communities of practices.

Work with Tacit Knowledge

old and very efficient tool of knowledge sharing.

Success depends on:

The content of the story - e.g.. the tacit knowledge we are transferring

Storyteller - his personality, language skills and his ability to transform the knowledge to the story

The audience - their activity and relation to the story and the storyteller, their previous knowledge, experience, mental models, etc.

The story telling also depends on the ability of the audience to open their minds to the story

requires a closer relationship between the storyteller and the audience

Storytelling

traditional model of tacit knowledge exchange relationship between the master and the apprentice

1. master tries to articulate (make explicit) and demonstrate his knowledge to the apprentice

2. sharing through the non-verbal personal practical experience of the apprentice, carefully monitored by the master.

The apprentice is reshaping the master’s knowledge to his/her own knowledge.

process is slow and it is based on social contract - co-operation

important in later phases of the apprenticeship when master may feel threaten by a bright apprentice

Apprenticeship

• The relationship must not be interrupted

• The master must be patient and be a good teacher

• It takes time

• The master must be rewarded for his effort

Disadvantages of Apprenticeship

groups of people who have some common interest (domain), strong relationship, share knowledge

or need to share knowledge, experiences, tools and, best practicesto solve some problemdepend on each others’ knowledge, skills and expertise

created purposefully or emerge naturally from volunteerscan be efficient only when there is a good connection and communication between people

People join communities to fulfil their emotional, intellectual and other needs.

Communities of Practices

Communities of PracticesIntellectual needs:

•Develop own expertise•Awareness of opportunities•New perspectives•High return on the effort•Improve status•Increase of influence•Improve skills, knowledge and abilities•Contact with people with similar interests

Emotional needs:

•Satisfaction from helping others•Recognition and kudos•Increased confidence•New relationships/network•Sense of belonging

Other needs:

•Improved performance•Better salary

Communities of Practices

The purpose of the community should be clear

The community may create the shared vision and strategy and define objectives Community members do not have to necessarily work in the same field The community always needs the support of the organisation

Communities of Practices

Companies benefit from communities of practices in following areas:

Human Resources:

•Community develops employees•Community improves competence•Improves the quality of thinking•Building of cross-organisational alliances•Increasing employee satisfaction and retention•Improving informal communication•Identifying skilled employees

Communities of Practices

Communities of Practices

Structural Capital

•Reduces costs by sharing best practices•Reduces duplication of effort•Reduces cycle times•Improves quality•Develops and share new intellectual capital•Increases capacity for innovation•Connections are built across organisational boundaries and

the knowledge flow improves

Motivating factors:the trust and opened corporate culture

Knowledge Market

exchange of knowledge between KWsphysical and virtualin every organization

Advantages of healthy knowledge market:

• enables knowledge exchange• improves quality of intellectual work• improves informal communication• improves quality of work• eliminates duplicities• cuts down costs• improves innovation capacity             

Knowledge Market

Knowledge market participants:

• sellers – have knowledge• buyers – search for knowledge• agents – help sellers and buyers meet

Currency:

• reciprocity• reputation• altruism

Money? usually no!

Knowledge MarketTrust:

Feeling that other person will not jeopardize your interests. At least.

based on: power, knowledge, friendship, institution, etc.

Consistent behavior!

Knowledge Market

Knowledge market signals:

Formal – education and positionInformal – knowledge network, gossipsCOPs

Market place:

physical – explicit and tacit knowledge

virtual – only explicit knowledge

Knowledge MarketDysfunctions of knowledge market:

• buyer and seller have problem to find each other• for of payment for knowledge shared is clear, payment unsure• difficult to evaluate a quality of knowledge

Knowledge market dysfunctions are caused by:

• managers do not know which knowledge is in their organization andwho owns it

• asymmetry of knowledge market – knowledge is concentrated in onepart of organization, other parts do not have access to it(marketing department and strategy)

• localization of knowledge – people share knowledge and ask for newknowledge only when they know each other

Knowledge Market

Pathologies:

• monopolies – sb. has knowledge and does not share it with others• artificial deficiency – monopoly, organization looses KWs• barriers – organization or its part refuses to use new knowledge or

participate in knowledge market

Knowledge Market

Knowledge market enablers and inhibitors:

• environment of trust •KWs know corporate strategy• proper organizational structure• integration of systems• close relation to customers• KWs understand what tacit knowledge is and know how to work with

it• managers are visible and involved• proper system of rewarding