Knowledge Management

MIS 650

Course Objectives

Arrive at a working definition of knowledge.Justify the need for a knowledge management system.Build a team and leadership for building a KMS.Building a KMS prototype.Evaluating KMS.

Course outlineKnowledge management

Module AConcepts

Module BBuilding the

KMS

Module CDeploying the system

Define knowledge

Knowledge management sub-processes

Organizational Learning

Knowledge management

platform

Designing the team and leading

Building a Knowledge

management System

Prototyping and Deploying the KMS

Evaluating the KMS

What is Knowledge?

Knowledge, as different from data and information.

Data

Information

Knowledge

Data

A collection of discrete, objective facts about events.

In organizational terms data are structured records of transactions.

Organizations have realized the importance of having data.

Investments have been made to gather, store and retrieve data.

Data quality issues have been stressed.

“Gather enough data and objectively correct decisions will soon follow.”

Information

Data that makes sense is information.“Information is data endowed with relevance and purpose.”- Peter Drucker“Inform” means “to shape.”Two parties are involved when information is shared: Sender and receiver.Also important is the medium: hard and soft networks.

Information contd.

Data becomes information when it is: Contextualized-The purpose for which data were

gathered is specified. Categorized- Data is organized into key components. Calculated- Some kind of mathematical or statistical

analysis is done. Corrected- errors have been removed. Condensed-Summarized in a concise form.

Role of information technology- is medium the message?

Knowledge

Resides in human minds.“Knowledge is a justified, true belief.” Nonaka and Takeuchi, 1995.Working definition: “Knowledge is a fluid mix of framed experience,

values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information.It originates and is applied in the minds of the knowers.” Davenport and Prusak 1998.

Knowledge

Information transform into knowledge through: Comparison- How does information about this situation

compare to other situations that we have known? Consequences- What implications does this information

have in terms of making decisions and taking actions. Connections- How does this bit of knowledge relate to

others? Conversations- What do other people think of this

information?

Illustration

Sally applies for a credit card and provides some details about herself to the customer support representative.These details are then “processed” to calculate a credit score for Sally.This credit score and her credit history aid the credit analysts in making a decision about whether to issue Sally a credit card or not.If Sally is a good customer, then credit analysts devise ways to keep her.

Key components of knowledge

Experience “Experts” are often the ones that have more knowledge about

a subject because they have “experience.” Experience helps people put new events in perspective.

Ground truth Knowing what really works and what doesn’t. Ground truths as opposed to heights of theory or

generalizations. Ground truth helps appreciate the gaps between what

“should” happen and what “does” happen. Large gaps between the what should happen and what

actually happens, provides a learning experience.

Components of knowledge

Complexity Knowledge deals with complexity in a complex way. Knowing more usually leads to better decisions than

knowing less. Since what you don’t know can hurt you, it is important

to have an idea of what we do not know. Example of a new variety of tomato that can be picked

and shipped much later than current varieties. Scientific success but a commercial failure.

Components of knowledge

Judgment Knowledge, like a living system, grows and changes as a

result of interaction with environment. Judgment is used to

Evaluate new situations in the light of already available information/experience

Revamp the current body of knowledge in response to changes in the environment.

Rules of thumb and intuition Heuristics- Shortcut solution to new problems that are

similar to old problems. Intuition is “compressed expertise”- Karl Weick

Components of knowledge

Values and beliefs Organizations are made up of people who have values and

beliefs. These influence their thoughts and actions. Depending on the organization's age, the organization itself

might have corporate beliefs and values. Corporate culture is one such value system. Values and beliefs determine the way people “see”

situations or events. Example of how different publication executives hold

different “views” on the proliferation of online technology.

Organizational knowledgeKnowledge is being recognized as a corporate asset Technology can be replicated sooner or later Knowledge that develops within a firm provides the firm

with a continued competitive advantage.

Knowledge-based view of the firm- Grant and Spender.Intellectual property issues.Corporate size and KM Chrysler’s “engineering books of knowledge.”

Computer networks- enablers of knowledge exchange.

BP’s virtual teamwork program

In 1993 BP Exploration organized its business centers into 42 separate business assets.

These units had the freedom to develop processes and solutions appropriate to their problems.

These “local” innovations could be used elsewhere in the company.

VTP was initiated to provide a virtual collaboration platform for these units.

Characteristics of BPX’s VTP

Network of people- not a data, information or knowledge store.Standard email, video conferencing systems, shared chalkboard, document scanner etc were present.Emphasis was on “coaching” as opposed to “training.”Four out of five groups that used virtual teamworking succeeded.Instant access to experts which can save money and time.

Lessons learned from BP

Members of knowledge community were identified and then linked by technology.Relationships were built through actual and virtual face-to-face meetings.Technology was used for communication and collaboration; training emphasized goals, not hardware and software.Training and upper management support emphasized the importance of new behaviors.

Lessons learned from BP

Upper management initiated the project and authorized funds and the core team.Five test groups allowed for variety and clear, limited goals.Savings and productivity increases were quantified; expanding VT use and participant enthusiasm were qualitative measures.In addition to having specific goals, the project left room for the unexpected.

Summary

Defined knowledge.

Differentiate among data, information and knowledge.

How knowledge is being recognized as a corporate asset.

Key components of knowledge.

BPX case and KM principles.