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AL E XANDRA KL I MOVA, I T MO UNI VE RS I T Y

KNOWLEDGE MANAGEMENT
SOLUTIONS AND
FOUNDATIONS
LECTURE 2
CONTENTS
1. KM Foundations:
1.1. KM Infrastructure
1.2. KM Mechanisms
1.3. KM Technologies
2. KM Processes
3. KM Systems

LECTURE OBJECTIVES
Understand the concept of knowledge management
Examine knowledge management foundations
Describe three components of knowledge management
foundations
Examine knowledge management solutions
Describe two levels of knowledge management
solutions:
KM processes
KM systems

KM SOLUTIONS AND
FOUNDATIONS



KM Processes

KM Systems

KM Mechanisms KM Technologies


KM Infrastructure
KM Solutions
KM Foundation
Source: Becerra-Fernandez, et al., 2010.
KM INFRASTRUCTURE
Organizational Culture
Organizational Structure
Information Technology
Common Knowledge
Physical Environment
ORGANIZATIONAL CULTURE
Organizational Culture norms and beliefs that guide
the behavior of the organizations members
Most important challenges (Dyer and McDonough 2001):
1) The organizations employees have no time for
knowledge management;
(2) the current organization culture does not encourage
knowledge sharing;
(3) inadequate understanding of knowledge
management and its benefits to the company; and
(4) inability to measure the financial benefits from
knowledge management.


ORGANIZATIONAL CULTURE
What could be done?

Understanding the value of KM practices,
Management support for KM at all levels,
Incentives that reward knowledge sharing,
Encouragement of interaction for the creation and
sharing of knowledge (Armbrecht et al. 2001).

KNOWLEDGE SHARING AT HILL AND
KNOWLTON

Source: Compiled from: Meister and Mark 2004;
http://www.hillandknowlton.com/

Background:
Hill and Knowlton (founded in 1927), is a leading international communications
consultancy. It headquarters in New York with 74 offices in 41 countries and an
extensive associate network.
It is part of one of the worlds largest communications services groups (WPP).
Hired by organizations to manage their product launches, media relations, and
communication during crises.

Beenz, a system of micropayments, to encourage employees to
contribute case studies and bios.
An employee could win a weekend for two in a Caribbean villa for
110,000 Beenz.
Gift certificates and pizza parties.
Bonuses to individuals managing departments that were active in
knowledge sharing.
best-seller list to publicize the contributions that were most
frequently accessed.

ANOTHER EXAMPLES
Shell Oil Company: informal recognition for
individuals (mentioning their accomplishments in a
newsletter, an e-mail, or during a meeting)
Halliburton Company: most valuable player
program, acknowledging each month the person
who provides the best idea.
Consulting firm Bain & Company: two annual
awards, one of them is for the employee that best
carried on the goals of knowledge management
and innovation.

Source: Becerra-Fernandez, et al., 2010.
ORGANIZATIONAL STRUCTURE
Communities of practice an organic and self-organized
group of individuals who are dispersed geographically or
organizationally but communicate regularly to discuss
issues of mutual interest (Lave and Wenger 1991).
provide access to a larger group of individuals than
possible within traditional departmental boundaries
there are more numerous potential helpers, and this
increases the probability that at least one of them will
provide useful knowledge.
provide access to external knowledge sources.

ORGANIZATIONAL STRUCTURE
How to facilitate communities of practice?
legitimize them through support for participation in them
seeking advice from them.
providing them with resources, such as money or
connections to external experts
access to information technology that supports their
virtual meetings and knowledge sharing activities, blogs
and social networking technologies



COMMUNITIES OF PRACTICE AT
MONTGOMERY WATSON HARZA
(Source: Compiled from Parise, Rolag, and Gulas 2004, http://www.mwhglobal.com/).
Background
Montgomery Watson Harza is a global engineering firm with about 200 offices in 38 countries.
In 1999: new KM approach People First, Technology as Support.
formal and informal communities of practice, which would be supported by establishing a
global Intranet, called KNet.
People First, Technology as
Support.
Knowledge Center
- Formal community
- partially funded by management,
- created from the top down to
facilitate strategic initiatives
Knowledge Base
- Informal community,
- locally driven
- easier to set up.
- started by practitioners themselves.
SOME OTHER EXAMPLES
DaimlerChrysler tech-club: group of engineers who met
regularly, on their own initiative, to discuss problems related
to their area of expertise.
Xerox Corporation: a strategic community of IT professionals,
involving frequent informal interactions among them,
promotes knowledge sharing (Storck and Hill 2000).
ORGANIZATIONAL STRUCTURE
Specialized structures and roles that specifically
support knowledge management (Chief
knowledge officer, department for KM).

INFORMATION TECHNOLOGY
data processing,
storage,
communication technologies and systems
e.g. databases (DB) and data warehouses
Capabilities it provides (Daft and Lengel 1986; Evans
and Wurster 1999):
reach,
depth,
richness,
aggregation

INFORMATION TECHNOLOGY
access and connection and the efficiency of such access.
reflects the number and geographical locations of the nodes that
can be efficiently accessed.
Power of the Internet: its reach and the fact that it can be efficiently
accessed
Reach
detail and amount of information that can be effectively
communicated.
Depth

provide quick feedback;
personalize messages
Richness
Aggregiation
ability to store and quickly process information
COMMON KNOWLEDGE
Provides unity to the organization:
- common language and vocabulary,
- recognition of individual knowledge domains,
- shared norms,
- elements of specialized knowledge are common across
individuals
Helps enhance the value of an individual experts
knowledge by integrating it with the knowledge of
others.
Supports knowledge transfer within the organization but
impedes the transfer (or leakage) of knowledge outside
the organization (Argote and Ingram 2000).

PHYSICAL ENVIRONMENT
Design of buildings (offices, meeting rooms, hallways)
The location, size, and type of offices;
The type, number, and nature of meeting rooms;
Spaces specifically designed to facilitate informal
knowledge sharing (coffee rooms, cafeterias, water
coolers)
London Business School: attractive space between two
major departments, which were earlier isolated, to
enhance knowledge sharing between them.
Reuters News Service installed kitchens on each floor to
foster discussions.
knowledge accidents.
KM MECHANISMS
Knowledge management mechanisms are
organizational or structural means used to promote
knowledge management.
KM mechanisms may (or may not) utilize technology, but
they do involve some kind of organizational
arrangement or social or structural means of facilitating
KM.
Examples of KM mechanisms:
learning by doing,
on-the-job training,
earning by observation,
and face-to-face meetings.
KM MECHANISMS
Phonak, Inc., a worldwide leader in digital hearing instruments, a
series of events occur throughout the year (every six weeks or so)
enabling employees to get to know each other through informal
interactions including barbecues, company days out, and
bicycle tours.

BP Amoco Chemical Company: meetings at the conclusion of
projects. Each meeting is facilitated by someone outside that
project team and focuses on the following questions: What was
the goal of the project? What were the major successes? Why?
How can we repeat the successes? What were the significant
disappointments? Why? How can we avoid them in the future?

Katzenbach Partners: light-hearted contests and events to
facilitate knowledge management.
Source: Compiled from: Burgelman and Blumenstein 2007; Hoegl
and Schulze 2005.

KM TECHNOLOGIES

KM technologies are information technologies that can be
used to facilitate knowledge management.
case-based reasoning systems,
electronic discussion groups,
computer-based simulations,
databases,
decision support systems,
enterprise resource planning systems,
expert systems, expertise locator systems,
videoconferencing, and information repositories including
best practices databases and lessons learned systems.

Web2.0 technologies
KM TECHNOLOGIES IN CISCO
Variety of technologies including:
Ciscopedia, which is an internal document site;
C-Vision;
and the Idea Zone, which is a wiki for employees to
post and discuss business ideas.
companywide social computing platform
(Fitzgerald 2008).

Source: Becerra-Fernandez, et al., 2010.
KM FOUNDATIONS
Infrasructure
Technologies
Mechanisms
KM PROCESSES
Discovery
Combination
Socialization
Capture
Externalization
Internalization
Sharing
Socialization
Exchange
Application
Direction
Routines
Source: Becerra-Fernandez, et al., 2010.
KNOWLEDGE DISCOVERY
Knowledge discovery - the development of new
tacit or explicit knowledge from data and
information or from the synthesis of prior knowledge.
Combination is a process of discovering explicit
knowledge (through communication, integration,
and systemization of multiple streams of explicit
knowledge)
Socialization is the synthesis of tacit knowledge
across individuals, usually through joint activities
rather than written or verbal instructions (Nonaka,
1994).

COMBINATION
Combination phase relies on three processes
(Nonaka):
Collecting externalized knowledge from inside or
outside the company and the combining such
data.
Transferring this form of knowledge directly by using
presentations or meeting.
Editing or processing of explicit knowledge makes it
more usable (e.g. documents such as plans, report,
market data).
SOCIALIZATION
Water cooler discussions
new ideas,
stronger work
relationships
increase in productivity
KNOWLEDGE CAPTURE
Knowledge capture - the process of retrieving either
explicit or tacit knowledge that resides within
people, artifacts, or organizational entities.
Externalization involves converting tacit knowledge
into explicit forms such as words, concepts, visuals,
or figurative language (e.g., metaphors, analogies,
and nar- ratives; Nonaka and Takeuchi 1995).
Internalization is the conversion of explicit
knowledge into tacit knowledge. It represents the
traditional notion of learning.

INTERNALIZATION
Internalization relies on two dimensions:
Explicit knowledge has to be embodied in action
and practice. Thus, the process of internalizing
explicit knowledge actualizes concepts or methods
about strategy, tactics, innovation or improvement.
Embodying the explicit knowledge by using
simulations or experiments to trigger learning by
doing processes. New concepts or methods can
thus be learned in virtual situation
EXTERNALIZATION
Externalization is supported by two key factors.
Articulation of tacit knowledgethat is, the conversion
of tacit into explicit knowledge involves techniques that
help to express ones ideas or images as words,
concepts, figurative language (such as metaphors,
analogies or narratives) and visuals. Dialogues, "listening
and contributing to the benefit of all participants,"
strongly support externalization.
Translating the tacit knowledge of people into readily
understandable forms. This may require
deductive/inductive reasoning or creative inference
(abduction).
NONAKAS FOUR MODES OF
KNOWLEDGE CONVERSION

Socialization Externalization
Internalization Combination
Tacit Tacit
Explicit Explicit
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KNOWLEDGE SHARING
Knowledge sharing - is the process through which explicit or
tacit knowledge is communicated to other individuals
(Nonaka, 1994).

1. knowledge sharing means effective transfer, so that the
recipient of knowledge can understand it well enough to
act on it (Jensen and Meckling 1996).
2. what is shared is knowledge rather than recommendations
based on the knowledge;
3. knowledge sharing may take place across individuals as well
as across groups, departments, or organizations (Alavi and
Leidner 2001).

Exchange, in contrast to socialization, focuses on the sharing
of explicit knowledge..

KNOWLEDGE APPLICATION
Knowledge application - is the process of using knowledge to make
decisions and perform tasks (Nonaka, 1994).

Direction involves the transfer of instructions or decisions and not the
transfer of the knowledge required to make those decisions, and
hence it has been labeled as knowledge substitution (Conner and
Prahalad 1996).
Routines involve the utilization of knowledge embedded in
procedures, rules, and norms that guide future behavior. (Grant
1996).
e.g. help desk agents with specific and automated answers from a
knowledge base (Sabherwal and Sabherwal, 2007).

KNOWLEDGE MANAGEMENT SYSTEMS
Knowledge management systems are the integration of
technologies and mechanisms that are developed to support
the four KM processes.
Each KM system utilizes a combination of multiple mechanisms
and multiple technologies.
knowledge application systems,
knowledge capture systems,
knowledge sharing systems,
and knowledge discovery systems.
KNOWLEDGE DISCOVERY SYSTEMS
Knowledge discovery systems support the process of developing new
tacit or explicit knowledge from data and information or from the
synthesis of prior knowledge.
Mechanisms:
Combination: collaborative problem-solving, joint decision-making,
and collaborative creation of documents
Socialization: apprenticeships, employee rotation across areas,
conferences, brainstorming retreats, cooperative projects across
departments, and initiation process for new employees.
Technologies:
knowledge discovery systems
databases, and Web-based access to data.
Repositories of information, best practice databases, and lessons
learned systems videoconferencing and electronic support for
communities of practice.

KNOWLEDGE CAPTURE SYSTEMS
Knowledge capture systems support the process of retrieving either
explicit or tacit knowledge that resides within people, artifacts, or
organizational entities.
KM mechanisms: externalization or internalization.
Learning by doing, on-the-job training, learning by observation, and
face-to-face meetings are some of the mechanisms that facilitate
internalization.
KM Technologies:
Externalization through knowledge engineering (expert systems,
case-based reasoning systems, and knowledge capture systems.
Internalization include computer-based training and communication
technologies.
KNOWLEDGE SHARING SYSTEMS
Knowledge sharing systems support the process through which
explicit or tacit knowledge is communicated to other individuals.
Mechanisms: memos, manuals, progress reports, letters, and
presentations.
Technologies:
groupware and other team-collaboration mechanisms;
Web-based access to data and databases;
repositories of information, including best practice databases,
lessons learned systems,
expertise locator systems.
KNOWLEDGE APPLICATION SYSTEMS
Knowledge application systems support the process through which
some individuals utilize knowledge possessed by other individuals
without learning that knowledge.
Mechanisms:
hierarchical relationships in organizations, help desks, and support
centers.
organizational policies, work practices, organizational procedures,
and standards.
Technologies:
decision-support systems,
troubleshooting
expert systems
enterprise resource planning systems,
traditional management information systems.
KEY TERMS
Externalisation
Internalisation
Knowledge management solutions
Knowledge management foundations
Knowledge discovery
Knowledge application
Knowledge capture
Knowledge sharing
REVIEW
Give an example of one knowledge management
mechanism that could be used to facilitate each of
the four knowledge management processes.
Give an example of one knowledge management
technology that could be used to facilitate each of
the four knowledge management processes.