MODULE-2

Knowledge Management Concepts

LIFE IN ORGANIZATIONS
People are of Strategic Importance organizations success depends on the knowledge, skills, and abilities of employees sustained competitive advantage through people shift is taking place from touch labour to knowledge work

 Companies such as Dominos Pizza, Sony, Southwest Airlines, and Wal-Mart revolutionized their industries by developing skills core competencies- people. Different skill groups can be classified as 1) Core knowledge workers- employees has firm-specific skills that are directly linked to the companys strategy e.g., R&D scientists. Companies tend to make long-term commitments

 Traditional job-based employees- employees have skills that are quite valuable to a company, but not unique e.g., sales people in a department store Contract Labour- . This group of employees has skills that are of less strategic value and generally available to all firms e.g., clerical workers, maintenance workers, staff workers Alliance/partners- This group of individuals has skills that are unique, but not directly related to a companys core strategy e.g., attorneys, consultants, and research lab scientists

Human Resource Planning

Human resource planning plays an important role in helping managers weigh the costs and benefits of using one approach to employment versus another So environment scanning is important including factors like economic, competitive trends, technological trends, political and legislative issues and social concerns. Apart from it Internal Environment Scanning is also important. So Employee Attitudes, Cultural Audits are equally important.

Concept and Characteristics of KBOS

The definition of the knowledge-based organization is centered around three attributes : Its principal mission is to acquire, manipulate and deploy information and knowledge; It strives to be a learning organization. in which its members, both individually and collectively, are continuously enhancing their capacity to produce results and adapt to changing circumstances and It is guided by a commitment to organizational excellence through such pursuits as benchmarking, best practices and the fostering of collaborative relationships among its various stakeholders

 The competitive advantage for KBOs comes from having and effectively using knowledge. Examples include the law office, accounting firm, marketing firm, software company, most of the government agencies, universities, the military, and significant parts of most of the manufacturing companies. A knowledge-based organization has four characteristics- Process, Place, Purpose and Perspective

Process
Process refers to the activities within an organization, some of which are directly involved with making a product or selling a service and others that are ancillary but no less important. A KBO attends to two related processes i.e the effective application of existing knowledge and the creation of new knowledge

Place
Place refers to the boundaries of the organization, which for the purpose of sharing and creating knowledge often go beyond traditional legal boundaries. Companies are increasingly realizing that knowledge is often produced and shared as a byproduct of daily interactions with customers, vendors, alliance partners and even competitors. The knowledge-based organization, then, is a collection of people and supporting resources that creates and applies knowledge via continued interaction. Its boundaries are blurred, malleable and dynamic.

Purpose
Purpose refers to the mission and strategy of the organization how it intends to profitably serve its customers. Companies that succeed over the long term align their knowledge management processes with their strategy. The knowledge-based organization recognizes that knowledge is a key strategic resource, and asks what do we need to know to formulate and execute our desired strategy? What do we know? And what do our competitors know? So focus-SWOT

Perspective
Perspective refers to the worldview and culture that influences and constrains the decisions and actions of an organization. Each of these elements forms a basis for evaluating the degree to which knowledge is an integral part of the organization and the way it competes

 The knowledge-based organization, regardless of whether its products are tangible or not, holds a knowledge-oriented image of itself. That is, it takes knowledge into account in every aspect of its operation and treats every activity as a potentially knowledge-enhancing act. It uses knowledge and learning as its primary criteria for evaluating how it organizes, what it makes, where it locates, who it hires, how it relates to customers, the image it projects, and the nature of its competition.

Knowledge Management, then, is the process of transforming INFORMATION and INTELLECTUAL ASSETS into enduring VALUE - All this requires a blend of PEOPLE PROCESSES (Strategy) TECHNOLOGY

 People- Organizations can promote those policies and practices that build teamwork to help people share and manage knowledge but people ultimately manage knowledge Technology- Enhances the ability to rapidly disseminate information and develop knowledge bases thereby presenting opportunities to: change traditional organizational structures inspire an informal style promote social networks Knowledge-sharing underpinnings

Knowledge Management Practices

Draw out the tacit knowledge people have, what they carry around with them, what they observe and learn from experience, in addition to what is usually explicitly stated. Explicit knowledge is formal and systematic and can be easily communicated and shared, i.e., in a book or a database in the library, a product specifications, or a scientific formula or a computer program. Tacit knowledge is highly personal, is unrecorded and unarticulated and is hard to formalize and therefore difficult, if not sometimes impossible, to communicate.

 Tacit information is more difficult to obtain because it is buried : in web-based links to other sites, databases, publications, and in the knowledge of experts employed in institutions (the value-added dimension) in the past, communication of this information has always been informal, word-of-mouth, and not the province of any organizational unit Unlike Information, Knowledge is not just a: thing to be managed . It is a Capacity - of people and communities - to continuously generate and renew themselves to meet new challenges and opportunities; it is the collective knowledge of the organization

Knowledge Repositories
Databases. It is possible to structure part of a knowledge repository as a database. Data warehouses, large repositories of important data, can also be used for knowledge management, especially in conjunction with customer relationship management (CRM) systems. Specially Structured Databases. Some systems have been developed in Lotus Notes/Domino Server and hence utilize the Notes database structure.
These specialized databases are ideal for storing tacit knowledge because of its nature.

Electronic Documents. Others have been developed around electronic document management systems.
e.g., DocuShare by Xerox

Knowledge Management Process

The Knowledge Management process has six basic steps assisted by different tools and techniques. When these steps are followed sequentially, the data transforms into knowledge. Step 1: Collecting- This is the most important step of the knowledge management process. If you collect the incorrect or irrelevant data, the resulting knowledge may not be the most accurate. The data collection procedure defines certain data collection points. Some points maybe the summary of certain routine reports. As an example, monthly sales report and daily attendance reports maybe two good resources for data collection.

 Step 2: Organizing- The data collected need to be organized. This organization usually happens based on certain rules. These rules are defined by the organization. As an example, all sales related data can be filed together and all staff related data could be stored in the same database table. This type of organization helps to maintain data accurately within a database. If there is much data in the database, techniques such as 'normalization' can be used for organizing and reducing the duplication.

 Step 3: Summarizing In this step, the information is summarized in order to take the essence of it. The lengthy information is presented in tabular or graphical format and stored appropriately. For summarizing, there are many tools that can be used such as software packages, charts (Pareto, cause-and-effect), and different techniques Step 4: Analyzing At this stage, the information is analyzed in order to find the relationships, redundancies, and patterns. An expert or an expert team should be assigned for this purpose as the experience of the person / team plays a vital role. Usually, there are reports created after analysis of information

 Step 5: Synthesizing At this point, information becomes knowledge. The results of analysis (usually the reports) are combined together to derive various concepts and artifacts. A pattern or behavior of one entity can be applied to explain another and collectively, the organization will have a set of knowledge elements that can be used across the organization. This knowledge is then stored in the organizational knowledge base for further use. Usually, the knowledge base is a software implementation that can be accessed from anywhere through the Internet.

 Step 6: Decision Making At this stage, the knowledge is used for decisions making. As an example, when estimating a specific type of a project or a task, the knowledge related to previous estimates can be used. This accelerates the estimation process and adds high accuracy. This is how the organizational knowledge management adds value and save money in the long run.

Knowledge Systems Development

1. Identify the problem 2 . Prepare for change 3. Create the team 4. Map the knowledge 5. Create a feedback mechanism 6. Define the building blocks for the system 7. Integrate existing information systems

Strategies for Knowledge Management

The codification strategy typically is adopted by companies that sell relatively standardized products that fill common needs. Knowledge is carefully codified and stored in knowledge repositories structured as databases. - The personalization strategy typically is adopted by companies that provide highly customized solutions to unique problems. Knowledge is shared mostly through person-toperson contacts.

Knowledge Transfer
The process of sharing tacit knowledge or facilitating the learning of explicit knowledge between one person and another.

The knowledge must both be learned and be useable in a relevant context; if both conditions do not exist, the knowledge has not been transferred

Process
Determine what knowledge must be transferred. Be able to articulate why the knowledge must be transferred. Determine to whom the knowledge is to be transferred. Determine how the knowledge will be transferred. Transfer the knowledge. Test knowledge transfer by observing its recall and use.

Knowledge Transfer Tools

Job Aids Mentoring Job Shadowing Process Documentation Critical Incident Review Identification of Best Practices Storytelling Communities of Practice Document Repositories Structured On the Job Training

 Job Aid- Assist people in applying knowledge to complete tasks as they do them on-the-job. Mentoring- An organizationally sponsored relationship that focuses on coaching without a performance management or supervisory component. Process Documentation- The step-by-step documentation of any process, task or procedure. It is most effective in the form of a flowchart.

 Identification of best practices- Best practices are relevant processes or systems to perform work that have had measurable success and effectiveness and are likely transferable. They may be discovered within or outside the organization. Best practices are determined in a variety of ways: through meetings of similar functional groups; polling employees; internal or external surveys.

 Communities of Practice- A community of practice is a group that forms and functions together to share information and knowledge about a common area of interest, issue, or topic. Job Shadowing- A less-experienced performer pairs with a veteran performer on-job to facilitate knowledge transfer. Critical Incident Review-A critical incident is an identifiable event that results in either a very negative or a very positive impact on a process, deliverable or relationship. An individual, work team, task force or project team conducts the review to determine root causes and capture best practice or determine remedies.

 Story Telling- A narrative description of what happened in a situation or over a period of time. This is one of the most effective ways of transferring knowledgeindeed wisdomfrom one person to another Document Repositories- A collection of textual resources that can be retrieved, viewed and interpreted. Document repositories add navigation and categorization to the information stored. Structured On The Job Training- Knowledge Transfer takes place on the actual job site with task accomplishment as a part of the process.

KM Technologies
Knowware are technology tools that support
KM.

Collaboration tools, or groupware, were the

first used to enhance collaboration for tacit knowledge transfer within an organization. the-box.

KM suites are complete KM solutions out-of-

Knowledge Servers contain the main KM

software, including the knowledge repository.

KM Architecture
It builds as a repository system upon manifold different sources, and thus exploits the value already existing Information source. It creates a unifying view via the so-called knowledge map, or corporate taxonomy, in order to provide a content-oriented integration of different sources. It provides both collaboration and discovery services thus addressing to some extent both the process-view and the product-view on KM. It supports through a knowledge portal as the integrated interface directly a number of predefined knowledge management practices as Competitive Intelligence, Best Practice gathering, etc.

Components of Knowledge Management Systems

Technologies
Communication
Access knowledge Communicates with others

Collaboration
Perform groupwork Synchronous or asynchronous Same place/different place

Storage and retrieval

Capture, storing, retrieval, and management of both explicit and tacit knowledge through collaborative systems

 Supporting technologies
Artificial intelligence
Expert systems, neural networks, fuzzy logic, intelligent agents

Intelligent agents
Systems that learn how users work and provide assistance

Knowledge discovery in databases

Process used to search for and extract information
Internal = data and document mining External = model marts and model warehouses

XML
Extensible Markup Language Enables standardized representations of data Better collaboration and communication through portals

Metrics
Financial ROI Perceptual, rather than absolute Intellectual capital not considered an asset Non-financial Value of intangibles
External relationship linkages capital Structural capital Human capital Social capital Environmental capital

Factors Leading to Success and Failure of Systems

Success
Companies must assess need System needs technical and organizational infrastructure to build on System must have economic value to organization Senior management support Organization needs multiple channels for knowledge transfer Appropriate organizational culture System does not meet organizations needs Lack of commitment No incentive to use system Lack of integration

Failure

Organizational Learning
Learning organization
Ability to learn from past To improve, organization must learn Issues
Meaning, management, measurement

Activities
Problem-solving, experimentation, learning from past, learning from acknowledged best practices, transfer of knowledge within organization

Must have organizational memory, way to save and share it

Organizational learning
Develop new knowledge Corporate memory critical

Organizational culture
Pattern of shared basic assumptions

Concept of Learning Organization

Continuous learning at the systems level. Individuals are expected to learn frequently and to share their learning in ways that enable the larger system to learn. This involves more than one level of learning (individuals, teams, organization as a whole) but it may not always include everyone and may not always involve all possible levels. Knowledge generation and sharing. Employees are called upon to think in new ways; critically in order to identify assumptions; and collaboratively through dialogue with one another about work. Value is placed on creating, capturing, and moving knowledge rapidly and fluidly so that people who need it can access and use it quickly.

 Systemic thinking capacity. Employees are asked to think systemically in order to see linkages and feedback loops. Greater participation and accountability by a larger percentage of employees. Ideas and information should emerge from those who have something to contribute, regardless of their position in the organization. Increased accountability demands new learning. Culture and structure of rapid communication and learning. Learning is rewarded, supported, and promoted from the top down and through various reward systems. At least on paper, people are expected to take calculated risks, experiment, learn from their mistakes, and share information freely across boundaries.

DRIVERS
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

Maintains the status quo

Disincentive in terms of innovation Lead to

Satisfaction, Restricted search, Restricted attention, Risk aversion, Homogeneity, play it safe

Organisational learning framework

Level
Individual

Process
Intuiting

Inputs/outcomes
Experiences, Images Methaphors Language Cognitive map Conversation/dialogue Shared understandings Mutual adjustments Interactive systems

Interpreting

Group

Integrating

Organisation

Institutionalising

Routines Diagnostic systems Rules and procedures

Organisational learning
Means Process or activity

Learning organisation
End Idealised form

Attainable
Descriptive research Inductive Academic and scholarly orientation

Easily lost due to changes

Prescriptive research Deductive (normative) Practitioner and consultancy orientation

Predominantly quantitative Predominantly qualitative research research (little empirical evidence) Theoretical orientation Action orientation

 Learning organisation (Senge)

System thinking Team learning Shared vision Mental models Personal mastery Problem solving Experimental learning Knowledge sharing Vicarious learning Experimenting

Organisational learning (Garvin)

 In todays knowledge era, intellectual capital is most frequently described as having three components : human capital, structural capital, and customer capital. Human capital resides in the people who work in a system themselves with all of their knowledge, experience, and capacity to grow and innovate. Structural capital is what remains behind when people leave the premises: systems, policies, processes, tools, or intellectual property that become property of the system itself. Customer capital is the system of relationships that an organization has with its clients irrespective of the people who work there or the structural capital that is in place.

Intellectual Capital and Knowledge Management

 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

Problems:
Knowledge sharing difficulties Relationships between interpreter and receiver

Human Resources
Chief knowledge officer
Senior level Sets strategic priorities Defines area of knowledge based on organization mission and goals Creates infrastructure Identifies knowledge champions Manages content produced by groups Adds to knowledge base

CEO

Upper management

Champion knowledge management Ensures availability of resources to CKO Team members that develop system Catalog and manage knowledge

Communities of practice Knowledge management system developers Knowledge management system staff

Roles & Responsibilities

Agency Management Identify critical knowledge components and KSAs Develop Knowledge Transfer Plan including development of appropriate tools. Assure Plan is accomplished Management Services Consultants Coach managers in identifying KSAs Coach managers in developing Knowledge Transfer Plan and tools. Available for ongoing consultation and coaching.

 Organizational culture change. How can we change

Managerial Issues

organizational culture so that people are willing to both contribute knowledge to and use knowledge from a KMS?

How to store tacit knowledge. How to measure the tangible and intangible benefits of KMS
The importance of knowledge management. KM is not another management fad. Implementation in the face of quickly changing technology How can our organization develop a successful knowledge management system? Determining the roles of the various personnel in a KM effort.

THANKS