KNOWLEDGE MANAGEMENTKNOWLEDGE MANAGEMENT

““The Empires of the Future The Empires of the Future are Empires of the Mind”are Empires of the Mind”

Winston ChurchillWinston Churchill

Data & InformationData & Information

"Data are facts, observations, or measures "Data are facts, observations, or measures that have been recorded but not put into that have been recorded but not put into meaningful context. A single musical note is meaningful context. A single musical note is data." data."

Then data becomes information as soon as it Then data becomes information as soon as it is put into a context, and linked to an object. is put into a context, and linked to an object.

Data that has been arranged in a systematic Data that has been arranged in a systematic way to yield order and meaning. A series of way to yield order and meaning. A series of notes arranged into a tune is information."notes arranged into a tune is information."

The Five CsThe Five Cs

Data is summarized in more concise form, and unnecessary dept is eliminated

We know why the data was collected

Tabulate, relate and data to form bases for analysis

Errors have been removed, missing ‘data-holes’ have been accounted for

The basis of Analysis is known

Condensed

Contextualized

Calculated

Corrected

Categorized

What is Knowledge?What is Knowledge?

Knowledge is reasoning about Knowledge is reasoning about information and data to actively information and data to actively enable performance, problem – enable performance, problem – solving, decision – making, learning, solving, decision – making, learning, and teaching.and teaching.

(Beckman, T 1997)(Beckman, T 1997)

Knowledge is a mix of framed experience, values, contextual information, expert insight and intuition that provides an environment and framework for evaluating and incorporating new experiences and information. It originates in individuals’ minds but is often embedded in organizational routines, processes, practices, systems, software and norms.

Definition of Knowledge Definition of Knowledge

Elements of KnowledgeElements of Knowledge

Be Aware ofBe Aware ofBe Familiar Be Familiar withwithBe Be Acquainted Acquainted withwith

KNOW L EDGE

L

E

A

R

N

•An intense or striking quality (a quality or factor which gives superiority over close rivals)

•A slight advantage over somebody/ something

•To be Informed

•To gain Knowledge, Skill or Ability

•To be Skilful

•The term KNOWLEDGE is a process of learning to know to have an edge over others.

D I K W RelationshipD I K W Relationship

Data

Information

Knowledge

Wisdom

Unformatted, assorted, numerous transactional

records – Transactions

Data processed through5Cs – Interpreted

Data

Information + Experiences + Insights +

Judgment -Interpreted Information

Knowledge applied X Results Interpreted -

Interpreted Knowledge

From Facts to WisdomFrom Facts to Wisdom(Haeckel & Nolan, 1993)(Haeckel & Nolan, 1993)

Facts

Information

Knowledge

Wisdom

Less is

More

Volume

Completeness

Objectivity

Value

Structure

Categories of KnowledgeCategories of Knowledge

Knowledge

Type

Focus

Complexity

Perishability

Technological

Business

Environmental

Operational

Strategic

Explicit

Low

High

Tacit

InvolvementIndividual

Collective

Knowledge – Explicit, Tacit and Knowledge – Explicit, Tacit and PotentialPotential

• Explicit Knowledge

is that

component of knowledge that can

be codified and transmitte

d in a

systematic and formal language;

documents, databases,

webs, e-

mails, charts, p

ortals etc

•Tacit

Knowledge is

personal,

context-specific knowledge that is

difficult to formalize, record or

articulate; it is stored in the heads

of the people. It consists of various

components, such as intuition,

experience, truth,

judgment,

values, assumptions, beliefs and

intelligence. The tacit component

is developed by trial and error

encountered in practice

Building BlocksBuilding BlocksKNOWLEDGEKNOWLEDGE

Explicit TacitExplicit Tacit RecordedRecorded Residing in Residing in

Peoples’ Heads Peoples’ Heads Procedures, Manuals, Procedures, Manuals, Skills, Ideas, Skills, Ideas,

Documents, Practices…. Experience…. Documents, Practices…. Experience….

• Knowledge Management (KM) is the creation, distribution and exploitation of knowledge to create and retain greater value of core business competencies.

• KM addresses business problems particular to your business – whether it is creating and delivering innovative products or services; managing and enhancing relationships with customers, partners and suppliers; or improving work processes.

Definition of Knowledge ManagementDefinition of Knowledge Management

primary goal : To primary goal : To facilitate opportunistic facilitate opportunistic application of fragmented knowledge through application of fragmented knowledge through integration.integration.

KM is a newly emerging, KM is a newly emerging, interdisciplinary interdisciplinary business modelbusiness model dealing with all aspects of dealing with all aspects of knowledge within the context of the firm, knowledge within the context of the firm, including knowledge creation, codification, including knowledge creation, codification, sharing, and how these activities promote sharing, and how these activities promote learning and innovation.learning and innovation. In practice, In practice, KM KM encompasses both technological tools and encompasses both technological tools and organizational routinesorganizational routines in overlapping parts.  in overlapping parts. 

Knowledge AssetsKnowledge Assets

An organization’s schematic and content An organization’s schematic and content knowledge resources, including knowledge resources, including knowledge held by the organization’s knowledge held by the organization’s participants, various artifacts belonging participants, various artifacts belonging to the organization (e.g., documents, to the organization (e.g., documents, manuals, videos), the organization’s manuals, videos), the organization’s culture, and its particular infrastructure culture, and its particular infrastructure of roles, relationships, and regulations.of roles, relationships, and regulations.

Knowledge WorkerKnowledge Worker

A knowledge worker (also referred to as A knowledge worker (also referred to as an intellectual worker or brain worker) is an intellectual worker or brain worker) is a person employed due to his or her a person employed due to his or her knowledge of a subject matter, rather knowledge of a subject matter, rather than their ability to perform manual than their ability to perform manual labor.labor.

The term was coined by Peter Drucker in The term was coined by Peter Drucker in

1959, as one who works primarily with 1959, as one who works primarily with information or one who develops and information or one who develops and uses knowledge in the workplace.uses knowledge in the workplace.

Knowledge Management may be Knowledge Management may be viewed in terms ofviewed in terms of

– PeoplePeople– ProcessesProcesses– TechnologyTechnology

OrOr– Culture Culture

Structure Structure – TechnologyTechnology

Major Drivers behind KMMajor Drivers behind KM

Globalization of BusinessGlobalization of Business Learner organizationsLearner organizations Corporate AmnesiaCorporate Amnesia Technological advancesTechnological advances

The Knowledge EconomyThe Knowledge Economy The new source of wealth is knowledge, and not The new source of wealth is knowledge, and not

labor, land, or financial capital. It is the intangible, labor, land, or financial capital. It is the intangible, intellectual assets that must be managed. intellectual assets that must be managed.

The key challenge of the knowledge-based economy The key challenge of the knowledge-based economy is to foster innovation.is to foster innovation.

Two Questions:Two Questions:

Is KM related to innovation?Is KM related to innovation?

Is there any difference between KE and KBE?Is there any difference between KE and KBE?

DefinitionDefinition

  Knowledge economy as one that Knowledge economy as one that creates, disseminates, and uses creates, disseminates, and uses knowledge to enhance its growth and knowledge to enhance its growth and development. development.

The Knowledge EconomyThe Knowledge Economy

For several decades the world's best-known For several decades the world's best-known forecasters of societal change have forecasters of societal change have predicted the emergence of a new economy predicted the emergence of a new economy in which brainpower, not machine power, is in which brainpower, not machine power, is the critical resource. But the future has the critical resource. But the future has already turned into the present, and the era already turned into the present, and the era of knowledge has arrived.of knowledge has arrived.

--"The Learning Organization," Economist Intelligence --"The Learning Organization," Economist Intelligence UnitUnit

Intellectual CapitalIntellectual Capital

Intangible AssetsIntangible Assets could be any asset that can be or could be any asset that can be or cannot be measured, but is used by a company to its cannot be measured, but is used by a company to its advantage.advantage.

An intangible asset An intangible asset if measured and valuedif measured and valued for become for become the intellectual capital of the company.the intellectual capital of the company.

Skilled people & their competencies (knowledge / Skilled people & their competencies (knowledge / expertise), market positions, goodwill, recognition, expertise), market positions, goodwill, recognition, achievements, patents, contracts, support, achievements, patents, contracts, support, collaborations, brand value, leadership, collaborations, brand value, leadership, and and loyal loyal customer bases.customer bases.

Knowledge, collective expertise, goodwill, brand value Knowledge, collective expertise, goodwill, brand value and patents are not regularly shown up on conventional and patents are not regularly shown up on conventional financial statements.financial statements.

Intellectual CapitalIntellectual Capital Relational capital: All relations a company Relational capital: All relations a company

entertains with external subjects, such as entertains with external subjects, such as suppliers, partners, clients (brands, ...), suppliers, partners, clients (brands, ...), research centres, etc.;research centres, etc.;

Human capital: The sum total of the useful Human capital: The sum total of the useful knowledge of your employees and your knowledge of your employees and your customers with more emphasis on knowledge customers with more emphasis on knowledge and competences residing with the and competences residing with the company's employees;company's employees;

Organizational capital: Collective know-how, Organizational capital: Collective know-how, beyond the capabilities of individual beyond the capabilities of individual employees. E.g.: information systems; employees. E.g.: information systems; policies; intellectual property.policies; intellectual property.

Characteristics of Knowledge Characteristics of Knowledge ManagementManagement

Pervasive (spreading widely)Pervasive (spreading widely) Formal management Formal management Involves management of Involves management of

organizationorganization Consists of integrated processesConsists of integrated processes Technology serves as backboneTechnology serves as backbone Disciplinary approachDisciplinary approach

Barriers to Knowledge Barriers to Knowledge ImplementationImplementation

Barriers

19%

16%

12%5%

48%

Immaturity ofTechnology

Immaturity of Industry

Cost

Lack of need

Cultural resistance

Wonders of Knowledge ManagementWonders of Knowledge Management

KNOWLEDGE MANAGEMENT

Reducing costs/ time for information collection, dissemination & reuse

Improving Customer/Vendor service & support processes

Identifying innovative business/revenue generation opportunities

Shrinking cycle times for product / market development

Stemming intellectual losses linked to employee turnover

Accelerated

Organizational

learning

Enhanced

Enterprise

Profitability

Knowledge RepositoryKnowledge Repository

Not a databaseNot a database Not a knowledge base (like for Not a knowledge base (like for

ES)ES)

A collection of internal and A collection of internal and external knowledgeexternal knowledge

Cyclic Model of KMCyclic Model of KM

ManageKnowledge

StoreKnowledge

DisseminateKnowledge

RefineKnowledge

Create Knowledge

CaptureKnowledge

Chief Knowledge Officer Chief Knowledge Officer (CKO)(CKO)

Maximize firm’s knowledge Maximize firm’s knowledge assetsassets

Design and implement KM Design and implement KM strategiesstrategies

Effectively exchange knowledge Effectively exchange knowledge assetsassets

Promote system usePromote system use

KM StrategiesKM Strategies

Codification StrategyCodification Strategy– Identify who has knowledgeIdentify who has knowledge– Classify and extract the knowledgeClassify and extract the knowledge– Manage the knowledgeManage the knowledge

Personalization StrategyPersonalization Strategy– Identify who has knowledgeIdentify who has knowledge– Classify the knowledge and store Classify the knowledge and store

information about who to contact to get information about who to contact to get itit

– Manage the “pointers to the knowledge”Manage the “pointers to the knowledge”

Storage StrategiesStorage Strategies

Repository Storage StrategyRepository Storage Strategy– For the For the Codification StrategyCodification Strategy– Develop a Knowledge Repository, andDevelop a Knowledge Repository, and– The Technology and People to Manage itThe Technology and People to Manage it

Network Storage StrategyNetwork Storage Strategy– For the For the Personalization StrategyPersonalization Strategy– Heavily based on communication to Heavily based on communication to

connect with people who have knowledgeconnect with people who have knowledge

KM TechnologiesKM Technologies

1. Communication1. Communication– To enable people to connect to other To enable people to connect to other

people or the KMSpeople or the KMS

2. Collaboration2. Collaboration– To enable people to work togetherTo enable people to work together

3. Storage3. Storage– To store and maintain the knowledge or To store and maintain the knowledge or

knowledge about who has knowledgeknowledge about who has knowledge

KM – The FutureKM – The Future

Not a fadNot a fad Impact is immenseImpact is immense Research on organizational Research on organizational

cultureculture How to do each stepHow to do each step Are they the right steps?Are they the right steps?

Knowledge ManagementKnowledge ManagementKey IssuesKey Issues

Organizational cultureOrganizational culture Executive sponsorshipExecutive sponsorship Measuring successMeasuring success

The future: Comprehensive The future: Comprehensive standardized KM packagesstandardized KM packages

Knowledge MangementKnowledge Mangement

““The wise see knowledge and action The wise see knowledge and action as one” (Bhagvad Gita). as one” (Bhagvad Gita).

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