Introducing Knowledge Management

SL.No Particulars Sessions

Introduction to knowledge management 1 Session of

1. Understanding the significance of KM through a discussion on 3 hours
theories of the firm
Understanding the history, and the close relationship of KM with
other concepts
Understanding the three major inputs viz. strategy, people and IT
for a successful
KM system

2. Understanding knowledge 2 Sessions

Understanding the difference between data, information and of 3 hours
knowledge
Understanding the various types of knowledge viz. tacit and
explicit
The consequences of knowledge types on managing knowledge

3. Knowledge management and organization design 2 Sessions

Emphasis on people vs. emphasis on technology in managing of 3 hours
knowledge and its
impact on organization design
Understanding how organization structure can affect
knowledge
management
SL.No Particulars Sessions

4. Knowledge management and culture 2 Sessions

Why and how culture affects knowledge? of 3 hours
Why should an individual share knowledge and how
organizational culture can
help mitigate individuals fears

5. Knowledge management, strategy and HRM 2 Sessions

Understanding the need to align individual needs with organization of 3 hours
How HRM can design reward systems to facilitate KM
Using organizational routines for managing knowledge

Communities of Practice and KM 2 Sessions

Why CoP is important (and more significantly, what is it?)? of 3 hours
Designing CoP with people in mind and not technology
Making CoP work Need for customizing KM within organization
Pitfalls of a global KM system and problems of cross-border issues
in Knowledge
management
6. KM: the Indian experience 2 Sessions
Discussion of the case of Infosys, Tata Steel and other organizations of 3 hours
that are
experimenting with KM
The problems Indian organization face with respect to KM
7. Case Study and Presentation 2 Sessions
of 3 hours
The basic economic resource is no
longer capital, nor natural resources,
nor labor. It is and will be
knowledge.

Peter Drucker
Why the current interest in KM?
knowledge is at the heart of much of todays global
economy, and managing knowledge has become vital to
companies success
Kluge, et al (2001)

thistransformation from a world largely dominated by

physical resources, to a world dominated by knowledge,
implies a shift in the locus of economic power as profound
as that which occurred at the time of the industrial
revolution
Burton-Jones (1999)
Key themes in the knowledge society
literature

Knowledge is of central importance to advanced

economies
Knowledge is key to organizational performance
Organizations and work have become more
knowledge intensive

Hislop, D. (2005) KM in organisations, OUP

What is Knowledge
Management?
What is Data?
What is Information?
What is Knowledge?
What is Wisdom?
Can Knowledge be Managed?
Meaning of data, information,
knowledge and expertise
 Data
Data represents unorganized and unprocessed
facts.
Raw numbers, images, words, sounds, derived
from observations or measurements
Usually data is static in nature.
It can represent a set of discrete facts about
events.
An organization sometimes has to decide on the
nature and volume of data that is required for
creating the necessary information.
Data in itself has no meaning; it is the raw
material for information.
 What is information?

Information is processed data

Information is a subset of data, only
including those data that possess
context, relevance and purpose
Information involves manipulation of raw
data
 Information
Is data with a meaning assigned to it
Example: raw data from survey analyzed to
produce structured results
Information has meaning; it is organized for
some purpose.
Information can be considered as an
aggregation of data (processed data) which
makes decision making easier.
It is the raw material for knowledge
 Knowledge/1

Means to analyze/ understand information/data,

belief about causality of events/actions, provides
the basis to guide meaningful action and
thought.
Broader, deeper, richer than information
Knowledge is a basis for making decisions
A combination of information, instincts, rules,
ideas, procedures and experience that guide
actions and decisions
 Data are facts, numbers or
individual entities without
context or purpose.

Information is data that has

been organized into a
meaningful context (to aid
decision making).
 Knowledge is the human
capacity (potential & actual
ability) to take effective
action in varied and
uncertain situations.
Wisdom is a state of the human
mind characterized by profound
understanding and deep insight. It is
often, but not necessarily,
accompanied by extensive formal
knowledge.

Meeker, Joseph, What is Wisdom, LANDSCAPE,

Vol. 25, No. 1, Jan 1981.
 Expertise

Expert Skill Or Knowledge in a particular

field.
Knowledge can take
many forms
Concepts, methodologies
Facts, beliefs, truths & laws
Know what, Know how, Know why
Judgments & expectations, insights
Relationships, leverage points
Intuition & feelings
Meaning and sense making
Good things about
Knowledge
The foundation of the
enterprise
Grows with use
Increases when shared
Primary source of value
Only solution to understanding
complexity
 Bad things about
Knowledge
Usually exists in the minds of individuals

Hidden in some forgotten report

Knowledge is Power encourages Knowledge

Hoarding

Leaves the organization with the employee

 MEANING OF EPISTEMOLOGY
Epistemology is the branchofphilosophyconcerned with the theory
ofknowledge.
Epistemology studies the nature of knowledge, the rationality of
belief, and justification. Much of the debate in epistemology centers on
four areas: (1) thephilosophical analysisof the nature of knowledge
and how it relates to such concepts astruth,belief, and
justification,(2) various problems ofskepticism, (3) the sources and
scope of knowledge and justified belief, and (4) the criteria for
knowledge and justification.
The term was first used by Scottish philosopherJames Frederick
Ferrierin 1854.
The wordepistemologyis derived from the ancient
Greekepistmmeaning "justified true belief]" andlogosmeaning
"speech" or "word", in this context denoting "codified knowledge
of".J.F. Ferriercoinedepistemologyon the model of 'ontology', to
designate that branch of philosophy which aims to discover the
meaning of knowledge, and called it the 'true beginning' of
philosophy.
We know more than we can tell
Polanyi, 1966
Major Types of Knowledge
Types of Knowledge

Individual, social, causal,

conditional, relational and
pragmatic
Embodied, encoded and
procedural
Types of Knowledge

Subjective & Objective views of

knowledge,
procedural Vs. Declarative,
tacit Vs. explicit,
general Vs. specific.
Data, Information, Knowledge and Events

Knowledge
Knowledge

Information

Knowledge
Data Information
System

Use of
information

Decision

Events
Subjective View of
knowledge
Knowledge as State of Mind
Knowledge as Practice
Objective View of
knowledge
Knowledge as Objects
Knowledge as Access to
Information
Knowledge as Capability
 Kinds of knowledge
Shallow (readily recalled) and deep (acquired
through years of experience)
Explicit (codified) and tacit (embedded in the
mind)
Individual, social, causal, conditional,
relational and pragmatic
Embodied, encoded and procedural
 Types of knowledge
Procedural knowledge represents the
understanding of how to carry out a
specific procedure.
Declarative knowledge is routine
knowledge about which the expert is
conscious. It is shallow knowledge that
can be readily recalled since it consists of
simple and uncomplicated information.
This type of knowledge often resides in
short-term memory.
 Procedural and Declarative
Knowledge
Declarative knowledge (substantive
knowledge) focuses on beliefs about
relationships among variables
Procedural knowledge focuses on
beliefs relating sequences of steps
or actions to desired (or undesired)
outcomes
 Types Of Knowledge

Tacit knowledge usually gets embedded in human

mind through experience
Includes insights, intuitions, and hunches
Explicit knowledge is codified and digitized in
documents, books, reports, spreadsheets, memos
etc.
We can convert explicit knowledge to tacit
knowledge
Characteristics of tacit
and explicit knowledge
 Types Of Knowledge

General knowledge is possessed by a large

number of individuals and can be transferred
easily across individuals
Specific knowledge, or idiosyncratic
knowledge, "is possessed by a very limited
number of individuals, and is expensive to
transfer
 Types Of Knowledge

Technically specific knowledge is

deep knowledge about a specific
area
Contextually specific knowledge
refers to the knowledge of particular
circumstances of time and place in
which work is to be performed
Illustrations of the Different Types of
Knowledge
 Expert Knowledge
It is the information woven inside the mind of an expert for
accurately and quickly solving complex problems.
Knowledge Chunking
Knowledge is usually stored in experts long-range memory
as chunks.
Knowledge chunking helps experts to optimize their
memory capacity and enables them to process the
information quickly.
Chunks are groups of ideas that are stored and recalled
together as an unit.
Knowledge and Expertise

Expertise can be defined as

knowledge of higher quality
An expert is one who is
able to perform a task much
better than others
 Types of Knowledge
Simple knowledge focuses on one basic area
Complex knowledge draws upon multiple distinct areas of
expertise
Support knowledge relates to organizational infrastructure
and facilitates day-to-day operations
Tactical knowledge pertains to the short-term positioning of
the organization relative to its markets, competitors, and
suppliers
Strategic knowledge pertains to the long-term positioning of
the organization in terms of its corporate vision and
strategies for achieving that vision
 Expert knowledge
Hence, they tend to use knowledge-based decision
strategies starting with known quantities to deduce
unknowns.
If a first-cut solution path fails, then the expert can trace
back a few steps and then proceed again.
Non experts use means-end decision strategies to
approach the problem scenario.
Non experts usually focus on goals rather than focusing on
essential features of the task which makes the task more
time consuming and sometimes unreliable.
Specific individuals are found to consistently perform at
higher levels than others and they are labeled as experts.
 Knowledge as an
attribute of
expertise
In most areas of specialization, insight and knowledge accumulate quickly,
and the criteria for expert performance usually undergo continuous change.
In order to become an expert in a particular area, one is expected to master
the necessary knowledge and make significant contributions to the
concerned field.
The unique performance of a true expert can be easily noticed in the
quality of decision making.
The true experts ( knowledgeable) are usually found to be more selective
about the information they acquire, and also they are better able in
acquiring information in a less structured situation.
They can quantify soft in formation, and can categorize problems on the
basis of solution procedures that are embedded in the experts long range
memory and readily available on recall.
Types of Expertise

Associational Expertise
Motor Skills Expertise
Theoretical (Deep) Expertise
Characteristics of
Knowledge
Explicitness
Codifiability
Teachability
Knowledge Specificity
KM & HR
The contribution HR can make to knowledge
management
Knowledge management is an important area for HR
practitioners, who are in a strong position to exert
influence in this aspect of people management.
Scarborough et al (1999) believe that they should
have the ability to analyse the different types of
knowledge deployed by the organization (and) to
relate such knowledge to issues of organizational
design, career patterns and employment security.
HR practitioners should:
Help to develop an open culture that emphasizes the
importance of sharing knowledge.
Promote a climate of commitment and trust.
Advise on the design and development of
organizations that facilitate knowledge sharing.
Ensure that valued employees who can contribute to
knowledge creation and sharing are attracted and
retained.
Advise on methods of motivating people to share.
Help in the development of performance management
processes that focus on the development and sharing of
knowledge.
Develop processes of organizational and individual
learning that will generate and assist in disseminating
knowledge.
Set up and organize workshops, conferences and
communities of practice and symposia that enable
knowledge to be shared on a person-to-person basis.
In conjunction with IT, develop systems for capturing
and, as far as possible, codifying explicit and tacit
knowledge.
Generally, promote the cause of knowledge
management with senior managers.
 Data Information

contributes to

Knowledge

consists of

Explicit Stocks and flows Tacit knowledge

knowledge of knowledge

handled by

Knowledge management
linked to
dealt with by

Intranet
The concepts of: Data warehouses
The resource-based view Decision support systems
Intellectual capital Groupware
The learning organization Communities of practice
Mapping sources of internal expertise
 Questions/
Discussion Fad or Fundamental?
Why Knowledge, Why Now?

Action Plan
Getting Started
Knowledge Key Concepts
A Bit of Theory
Management

The Knowledge
Agenda
Critical KM
Success Cases
Factors
 t y al ue Tim Innovation in Products,
i e
c Ad de d V e-
So to
-m Services and Processes
n
io ar
at ke
m
f or Knowledge
t
In
Global Customers
Changing Needs
Goods & Services Time-to-market
ss Smart Products
ne
Information ve Customization
n si
Ma o Service
rke esp
td R Quality
riv
en Flexibility Intangibles
 Business
Transformation
Learning (BPR, TQM, culture)
Organization Innovation

Knowledge
Management

Intellectual Information
Assets/Capital Management
Knowledge-based
Systems
 Intelligence Human,
judgmental

Knowledge Contextual, tacit

Transfer needs
learning
Information
Codifiable, explicit
Easily transferable
Data
Introducing Knowledge Management
 Knowledge Management

United Features Syndicate, Inc.

Knowledge
Management
a useful definition
The systematic process of creating,
maintaining and nurturing an
organization to make the best use of
knowledge to create business value
and generate competitive advantage.
 Knowledge Management is the
explicit
and systematic management of vital
knowledge - and its associated
processes
of creation, organization, diffusion,
use and exploitation.
What is Knowledge Management?

Defined in a variety of ways.

KM in education: a strategy to enable people to develop a set of
practices to create, capture, share & use knowledge to advance.
KM focuses on:
people who create and use knowledge.
processes and technologies by which knowledge is
created, maintained and accessed.
artifacts in which knowledge is stored (manuals,
databases, intranets, books, heads).

Sources: Petrides, L.A. & Nodine, T.R (2003). Knowledge management in education: Defining the landscape. Edvinsson, L. &
Malone, M.S. (1997). Intellectual capital: Realizing your company's true value by finding its hidden brainpower. Ford, N. (1989).
From information- to knowledge-management. Journal of Information Science Principles & Practice.
 What is Knowledge?
Knowledge is justified true belief. Ayer, A.J.
(1956). The Problem of Knowledge.

Knowledge is a fluid mix of framed

experience, values, contextual
information and expert insight that
provides a framework for evaluating
and incorporating new experience and
information. It originates and is
applied in the minds of knowers. In
organizations it often becomes
embedded not only in documents or
repositories but also in organizational
processes, practices and norms. Davenport,
T.H. & Prusak, L (1998). Working Knowledge.

Knowledge is information in action.

ODell C. & Grayson Jr., C.J. (1998). If only we knew what we know.
 What is Knowledge
Management (KM)?
Knowledge management (KM) may simply
be defined as doing what is needed to get
the most out of knowledge resources.
In general, KM focuses on organizing and
making available important knowledge,
wherever and whenever it is needed.
KM is also related to the concept of
intellectual capital, composed of both
human & structural capital
Knowledge
Management
a useful definition
The systematic process of creating,
maintaining and nurturing an
organization to make the best use of
knowledge to create business value
and generate competitive advantage.
 What is Knowledge Management?

Knowledge management is a discipline

that promotes an integrated approach to
identifying, managing and sharing all of
an enterprises information needs. These
information assets may include
databases, documents, policies and
procedures as well as previously
unarticulated expertise and experience
resident in individual workers.

Source: GartnerGroup Research.

Knowledge Teams - multi-disciplinary, cross-
functional
Knowledge (Data) bases - experts, best practice
Knowledge Centres - hubs of knowledge
Learning Organization - personal/team/org
development
Communities of Practice - peers in execution of
work
Technology Infrastructure - Intranets, Domino,
doc mgt
Corporate Initiatives - CKOs, IAM, IC accounting
Sharing existing knowledge
Knowing what you know

Knowledge for Innovation

Creating and Converting
 Customer Knowledge - the most vital
knowledge
Knowledge in Products - smarts add value
Knowledge in People - but people walk
Knowledge in Processes - know-how when
needed
Organizational Memory - do we know what we
know?
Knowledge in Relationships - richness and
depth
Knowledge Assets - intellectual capital
Reservoirs of
Knowledge
Knowledge sharing and
transfer requires trust
Trust is hard to build in cyberspace
Trust usually requires initial face-to-face
Sharing must be open and reciprocal
Based upon a commonality
Time to do so
Social identity in cyberspace
 Why KM?

Source: Luan, J & Serban, A. (2002, June). Knowledge management concepts, models and
applications. Paper presented at Annual AIR Forum, Toronto.
 Why KM?
Sharing knowledge, a company creates
exponential benefits from the knowledge as
people learn from it
Building better sensitivity to brain drain
Reacting instantly to new business opportunities
Ensuring successful partnering and core
competencies with suppliers, vendors,
customers, and other constituents
Shortens the learning curve
The purpose and significance of knowledge
management

Knowledge management is about getting knowledge from

those who have it to those who need it in order to improve
organizational effectiveness.
It is as much if not more concerned with people and how
they acquire, exchange and disseminate knowledge as it is
about information technology.
It is significant because, as Ulrich (1998) points out:
Knowledge has become a direct competitive advantage for
companies selling ideas and relationships. It is linked to the
concepts of:
The resource-based-view the concept that it is the
range of resources in an organization, including its human
resources, that produces its unique character and creates
competitive advantage.
Intellectual capital the stocks and flows of
knowledge available to an organization, i.e. the intangible
resources associated with people.
The learning organization defined by Garvin et al
(2008) as a place where employees excel at creating,
acquiring and transferring knowledge.
 Forces driving KM

Increasing Domain Complexity

Intricacy of internal and external processes, increased competition,
and the rapid advancement of technology all contribute to
increasing domain complexity.

Accelerating Market Volatility

The pace of change, or volatility, within each market domain has
increased rapidly in the past decade.
 Forces driving KM

Intensified Speed of Responsiveness

The time required to take action based upon subtle
changes within and across domains is decreasing.

Diminishing Individual Experience

High employee turnover rates have resulted in
individuals with decision-making authority having
less tenure within their organizations than ever
before.
 Implications

Faced with increased complexity, market

volatility and accelerated responsiveness,
todays younger manager feels less
adequate to make the difficult decisions
faced each day.
KM is important for organizations that
continually face downsizing or a high
turnover percentage due to the nature of
the industry
 Business
Transformation
Learning (BPR, TQM, culture)
Organization Innovation

Knowledge
Management

Intellectual Information
Assets/Capital Management
Knowledge-based
Systems
 Intelligence Human,
judgmental

Knowledge Contextual, tacit

Transfer needs
learning
Information
Codifiable, explicit
Easily transferable
Data
Knowledge Teams - multi-disciplinary, cross-
functional
Knowledge (Data) bases - experts, best practice
Knowledge Centers - hubs of knowledge
Learning Organization - personal/team/org
development
Communities of Practice - peers in execution of work
Technology Infrastructure - Intranets, Domino, doc
mgt
Corporate Initiatives - CKOs, IAM, IC accounting
Sharing existing knowledge
Knowing what you know

Knowledge for Innovation

Creating and Converting
 Innovation Cycle KM Cycle
Collect
Codify
Identify
Classify

Embed
Product/ Knowledge Organize/
Process Create Store
Repository

Share/
Use/Exploit Disseminate
Diffuse Access
Shift from Managing Stocks of Stuff to Managing
Flows of Knowledge (Nielson)

Librarians use to managing stuff

Books
Magazines
Cassettes
Administrators use to managing stuff
Buildings and furniture, land
People
Money
Automators use to Managing Stuff
Computers
Fiber optics
Bandwidth
 Knowledge Requires Capture,
Organization, Access and Leverage
OLD WAY NEW WAY
Capture form is written, Capture from is digits
auditory or graphical in cyberspace
representations Organization via
Organization is via software programs
tables of content, designed upon
indexes, classification engineering
systems used by principles,
mathematical
publishers, libraries, etc equations, word
Access when physical associations in
body goes to where the cyberspace 24/7/365
knowledge is located Access wherever the
a library, a company, a physical bodies link
research laboratory, a via computers
school Tacit knowledge
Tacit knowledge rarely tapped using many
tapped different
technological tools
Leverage is a sum Leverage
game is
exponential, multiples
upon multiples
Organizational Knowledge
Management Components and
Functions
 Knowledge Work Activities

Acqu i r e
An a l yz e
Or ga n i z e
Cod i fy
Com m u n i
ca Utti
el i z e
Result
 Knowledge Management
Process

Knowledge
Knowledge Knowledge Storage Sharing Knowledge
Acquisitions And Processing or Application
and Creation Dissemination
Km is a conscious strategy of getting the right
knowledge , to the right people , at the right
time and helping people share and put
information into actions in ways that will
improve organizational performance.
Bill Gates has defined KM as nothing more
than managing information flow , getting the
right information to people who need it so
that they can act on it quickly.
Major Areas of Knowledge
Management

Knowledge Creation
Knowledge Identification
Knowledge Collection
Knowledge Organization
Knowledge Sharing
Knowledge Adaption
Using knowledge

Transfer knowledge from the individual to the

collective realm
Fig: KM Components

Technology
Components
Organizational
Components
KMS

Knowledge
Processes
Knowledge Architectures: It
Takes a Lot -- the Four Pillars
KM
Environmental Influences
Political Governmental

Social Economic
KNOWLEDGE MANAGEMENT
The Architecture of Enterprise Engineering

LEADERSHIP ORGANIZATION TECHNOLOGY LEARNING

Business Culture BPR E-mail Intuition

Strategic Planning - Processes OLAP Innovation vs.
- Vision and Goals - Procedures Data Warehousing Invention
Climate Metrics Search Engines Learning
Growth MBO Decision Support Community
Segmentation TQM/L Process Modeling Virtual Teams
Communications Workflow Management Tools Shared Results
Communications Communications Exchange Forums
Communications

LEADERSHIP ORGANIZATION TECHNOLOGY LEARNING

MULTIPLE DISCIPLINES
Systems Engineering Organization Development Systems Management Organization Behavior

Stankosky, Calabrese, Baldanza, 1999

 Data, Information & Knowledge

Source: Luan, J & Serban, A. (2002, June). Knowledge management concepts, models and applications.
Paper presented at Annual AIR Forum, Toronto.

"We are drowning in information but starved for knowledge"

Naisbitt , J. (1984) Megatrends: Ten new directions transforming our lives.
 Knowledge Types

Explicit knowledge

Tacit knowledge
Basic Types of Knowledge
Explicit knowledge that is codified,
recorded, or actualized into some form
outside of the head
Books, periodicals, journals, maps, photographs,
audio-recordings
Webpages, websites, portals

Tacit Knowledge from experience and

insight, not in a recorded form, but in our
heads, intuition
Intellectual capital -
Doesnt mean much unless packaged in useful ways
technology and global environment is redefining
useful ways
 Explicit Knowledge

Objective, rational, technical

Easily documented
Easily transferred / taught /
learned
 Tacit Knowledge

Subjective, cognitive, experiential

learning

Hard to document
Hard to transfer / teach / learn

Involves a lot of human interpretation

 First, what is knowledge
In simplest terms, knowledge is the ability of an
actor to respond to a body of facts and principles
accumulated over a period of time
One way to look at knowledge is as the apogee of
the following continuum
data information knowledge
Data=1 unit of fact; information=aggregation of
data; knowledge=potential for action on
information
Data and information have intrinsic properties,
the quality of knowledge depends on the
properties of the agent
 Knowledge assets

There are two types of knowledge assets

Explicit or formal assets like copyrights, patents,
templates, publications, reports, archives, etc.
Tacit or informal assets that are rooted in human
experience and include personal belief, perspective,
and values
 Two types of knowledge

Know-how & learning

Documented embedded within the minds
information that can people.
facilitate action.
Explicit knowledge
Implicit (Tacit) knowledge
Formal or codified
Informal and uncodified
Documents: reports,
policy manuals, Values, perspectives &
white papers, culture
standard procedures Knowledge in heads
Databases
Memories of staff,
Books, magazines, suppliers and vendors
journals (library)

Knowledge informs decisions and actions.

Sources: Polanyi, M. (1967). The tacit dimension. Leonard, D. & Sensiper, S. (1998). The Role of Tacit Knowledge in Group
Innovation. California Management Review.
 Layers of knowledge

Implicit (Tacit) Explicit

In peoples heads. Individual Personal documents

on my C:\

Undocumented
ways of working in Formalized process
teams, teaching. for developing
Cultural Organizational curriculum.
conventions Corporate polices
known and and
followed procedures.
but not formalized.
Source: Luan, J & Serban, A. (2002, June). Knowledge management concepts, models and applications.
Paper presented at Annual AIR Forum, Toronto.
 Fig :Tacit and Explicit
Knowledge

Documented Not Documented

Known Explicit Knowledge

Knowledge Gaps

Unknown Tacit Unknown

Knowledge Gaps
 Cyclic Model of KM

Capture
Knowledge

Create Refine
Knowledge Knowledge

Disseminate Store
Knowledge Knowledge

Manage
Knowledge
In an economy where the only certainty is uncertainty,
the one sure source of lasting competitive advantage
is knowledge.
I. Nonaka (1995)
 Davenport and Prusak (1998, p. 2) provide the following
distinctions between data, information:
Data: A set of discrete, objective facts about events.
Information: A message, usually in the form of a document
or an audible or visible communication.
Knowledge: A fluid mix of framed experiences, 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 knowers. In organizations, it often becomes
embedded not only in documents or repositories but also in
organizational routines, processes, practices, and norms.
 The von Krogh and Roos
Model of Organizational
The vonEpistemology
Krogh and Roos KM model (1995) distinguishes between
individual knowledge and social knowledge, and they take an
epistemological approach to managing organizational knowledge:
the organizational epistemology KM model. Whereas the definition of
organization has been problematic and the term is often used
interchangeably with information, a number of issues must be
addressed:
How and why individuals within an organization come to know.
How and why organizations, as social entities, come to know.
What counts for knowledge of the individual and the organization.
What are the impediments in organizational KM.
 The von Krogh and Roos
Model of Organizational
The
Epistemology
cognitivist perspective (e.g., Varela, 1992) proposes that a
cognitive system, whether it is a human brain or a computer, creates
representations (i.e., models) of reality and that learning occurs when
these representations are manipulated. A cognitive organizational
epistemology views organizational knowledge as a self-organizing
system in which humans are transparent to the information from the
outside (i.e., we take in information through our senses, and we use
this information to build our mental models). The brain is a machine
based on logic and deduction that does not allow any contradictory
propositions. The organization thus picks up information from its
environment and processes it in a logical way. Alternative courses of
action are generated through information search, and the cognitive
competence of an organization depends on the mobilization of
individual cognitive resourcesa linear summation of individuals to
form the organizational whole.
 The von Krogh and Roos
Model of Organizational
The Epistemology
connectionist approach, on the other hand, is more holistic than
reductionist. The brain is not assumed to sequentially process
symbols but to perceive wholeness, global properties, patterns,
synergies, and gestalts. Learning rules govern how the various
components of these whole networks are connected.
Information is not only taken in from the environment but also
generated internally. Familiarity and practice lead to learning.
Individuals form nodes in a loosely connected organizational
system, and knowledge is an emergent phenomenon that stems
from the social interactions of these individuals. In this perspective,
knowledge resides not only in the minds of individuals but also in
the connections among these individuals. A collective mind is
formed as the representation of this network, and it is this that lies
at the core of organizational knowledge management.
 The von Krogh and Roos
Model of Organizational
Von Epistemology
Krogh and Roos adopt the connectionist approach. In their
organizational epistemology KM model, knowledge resides both in the
individuals of an organization and, at the social level, in the relations
between the individuals. Knowledge is said to be embodied; that is,
everything known is known by somebody (von Krogh and Roos,
1995, p. 50). Unlike cognitivism, which views knowledge as an abstract
entity, connectionism maintains that there can be no knowledge
without a knower. This notion fits nicely with the concept of tacit
knowledge, which is very difficult to abstract out of someone and is
made more concrete. It also reinforces the strong need to maintain
links between knowledge objects and those who are knowledgeable
about themauthors, subject matter experts, and experienced users
who have applied the knowledge both successfully and unsuccessfully.
 The von Krogh and Roos
Model of Organizational
Epistemology
In 1998, von Krogh, Roos, and Kleine examined the fragile nature of KM in
organizations in terms of the mind-set of the individuals, communication in
the organization, the organizational structure, the relationship between the
members, and the management of human resources. These five factors could
impede the successful management of organizational knowledge for
innovation, competitive advantage, and other organizational goals. For
example, If the individuals do not perceive knowledge to be a crucial
competence of the firm, then the organization will have trouble developing
knowledge-based competencies. If there is no legitimate language to express
new knowledge in the individual, contributions will fail. If the organizational
structure does not facilitate innovation, KM will fail. If individual members are
not eager to share their experiences with their colleagues on the basis of
mutual trust and respect, there will be no generation of social, collective
knowledge within that organization. Finally, if those contributing knowledge
are not highly evaluated and Acknowledged by top management, they will
lose their motivation to innovate and develop new knowledge for the firm.
 The Nonaka and Takeuchi
Knowledge Spiral Model
Nonaka and Takeuchi (1995) studied the success of
Japanese companies in achieving creativity and
innovation. They quickly found that it was far from a
mechanistic processing of objective knowledge. Instead,
they discovered that organizational innovation often
stemmed from highly subjective insights that can best be
described in the form of metaphors, slogans, or symbols.
The Nonaka and Takeuchi model of KM has its roots in a
holistic model of knowledge creation and the management
of serendipity. The tacit/explicit spectrum of knowledge
forms (the epistemological dimension) and the
individual/group/organizational or three-tier model of
knowledge sharing and diffusion (the ontological
dimension) are both needed in order to create knowledge
and produce innovation.
 The Knowledge Creation
Process
Knowledge creation always begins with the individual. A
brilliant researcher, for example, has an insight that ultimately
leads to a patent. Or a middle manager has an intuition about
market trends that becomes the catalyst for an important new
product concept. Similarly, a shop floor worker draws upon
years of experience to come up with a process innovation that
saves the company millions of dollars. In each of these
scenarios, an individuals personal, private knowledge
(predominately tacit in nature) is translated into valuable,
public organizational knowledge. Making personal knowledge
available to others in the company is at the core of this KM
model. This type of knowledge creation process takes place
continuously and occurs at all levels of the organization. In
many cases, the creation of knowledge happens in an
unexpected or unplanned way.
According to Nonaka and Takeuchi, there are four modes of
knowledge conversion that
constitute the engine of the entire knowledge-creation process.
These modes are what the individual experiences. They are also
the mechanisms by which individual knowledge gets articulated
and amplied into and throughout the Organization (p. 57).
Organizational knowledge creation, therefore, should be
Understood as a process that organizationally amplies the
knowledge created by individuals and crystallizes it as a part of
the knowledge network of the organization.(p. 59)
Knowledge creation consists of a social process between
individuals in which knowledge transformation is not simply a
unidirectional process but it is interactive
and spiral. (pp. 6263)
Knowledge Conversion
There are four modes of knowledge conversion, as illustrated in Figure 3-1:
1. From tacit knowledge to tacit knowledge: the process of socialization.
2. From tacit knowledge to explicit knowledge: the process of externalization.
3. From explicit knowledge to explicit knowledge: the process of combination.
4. From explicit knowledge to tacit knowledge: the process of internalization.
For example, General Electric has developed a system of documenting all customer
complaints and inquiries in a database that can be accessed by all its employees. This
system allows the employees to nd answers to new customers questions much more
quickly because it facilitates the sharing of employees experiences in problem
solving. This system also helps the workers to internalize others experiences in
answering questions and solving problems.
 Knowledge Spiral
Knowledge creation is not a sequential process. Rather, it depends on a
continuous and dynamic interaction between tacit and explicit knowledge
throughout the four quadrants. The knowledge spiral (see Figure 3-2) shows
how organizations articulate, organize and systematize individual tacit
knowledge.
Organizations produce and develop tools, structures, and models to
accumulate and share knowledge. The knowledge spiral is a continuous
activity of knowledge ow, sharing, and conversion by individuals,
communities, and the organization itself.
The two steps in the knowledge spiral that are the most difcult are those
involving a change in the type of knowledge, namely, externalization, which
converts tacit into explicit knowledge, and internalization, which converts
explicit into tacit knowledge.
 Knowledge Spiral
These two steps require a high degree of personal commitment, and they will
typically involve mental models, personal beliefs and values, and a process of
reinventing yourself, your group, and the organization as a whole. A metaphor
is a good way of expressing this inexpressible content. For example, a
slogan, a story, an analogy, or a symbol of some type can encapsulate
complex contextual meanings. A metaphor is often used to convey two ideas in
a single phrase and may be dened as accomplishes in a word or phrase
what could otherwise be expressed only in many words, if at all (Sommer and
Weiss, 1995, p. vii). All of these vehicles are good models for representing a
consistent, systematic, and logical understanding of content without any
contradictions. The better and the more coherent the model, and the better the
model ts with existing mental models, the higher the likelihood of successful
implementation of a knowledge spiral.
 Knowledge Spiral

Knowledge sharing and use occurs through the knowledge

spiral, which,starting at the individual level and moving up
through expanding communities of interaction,...crosses sectional,
departmental, divisional and organizational boundaries (Nonaka
and Takeuchi, 1995, p. 72). Nonaka and Takeuchi argue that an
organization has to promote a facilitating context in which the
organizational knowledge-creation process and the individual one
can easily take place, acting as a spiral.
 Knowledge Spiral
They describe the following Enabling Conditions for Organizational
Knowledge Creation:
1. Intention: an organizations aspiration to its goals (strategy formulation in a
business setting).
2. Autonomy: condition whereby individuals act autonomously, according to the
minimum critical specication principle, and are involved in cross-functional
self-organized teams.
3. Fluctuation and Creative Chaos: condition that stimulates the interaction
between the organization and the external environment and/or Creates
uctuations and breakdowns by means of creative chaos or Strategic
equivocality.
4. Redundancy: existence of information that goes beyond the immediate
operational requirements of organizational members; competing multiple teams
on the same issue; and strategic rotation of personnel.
5. Requisite Variety: internal diversity to match the variety and complexity of the
environment, and to provide everyone in the organization with the fastest access
to the broadest variety of necessary information; at and exible organizational
structure interlinked with effective information networks.
 STRATEGIC IMPLICATIONS OF KM MODELS
Models help us to put the disparate pieces of a puzzle together in a
way that leads to a deeper understanding of both the pieces and the
ensemble they make up. Models supplement the concept analysis
approach in order to take our understanding to a deeper level. KM
models are still fairly new to the practice or business of knowledge
management, and yet they represent the way ahead. A coherent model
of knowledge-driven processes is crucial to the KM initiatives ability
to address strategic business goals, even if only partially. This is not to
say that KM is a silver bullet or that it will solve all organizational
problems. Those areas of knowledge-intensive work and
intellectual capital development that are amenable to KM processes,
on the other hand, require a solid foundation of understanding of what
KM is, what the key KM cycle processes are, and how these t in to a
model that enables us to interpret, to establish cause and effect, and to
successfully implement knowledge management solutions.
PRACTICAL IMPLICATIONS OF KM MODELS
For many years now, KM practitioners have been practicing KM on
the y. Many valuable empirical lessons and best practices have
been garnered through experience with many diverse organizations.
However, KM needs to be grounded in more robust, sound theoretical
foundationssomething more than it worked well last time so . . . .
The KM models key role is to ensure a certain level of completeness
or depth in the practice of KM: a means of ensuring that all critical
factors have been addressed. The second practical benet of a model-
driven KM approach is that models not only enable a better
description of what is happening but also help provide a better
prescription for meeting organizational goals. KM models help to
explain what is happening now, and they provide us with a valid
blueprint or road map for getting Organizations where they want to
be with their knowledge management efforts.
 Create/discover - 3M, Glaxo Wellcome
Codify - BHA, Standard Life, PwC
Diffuse - H-P, Thos. Miller, Rover, BP
Use - Buckman, Steelcase, PwC, Andersen etc.
Process/culture - Cigna, Analog
Conversion - Monsanto
Measure/exploit - Skandia, Dow
 A strategy led initiative - learning org. focus
Workshops to convert rhetoric to action plans
Using Intranets to share R&D, help approvals
Library, document management support
Reoriented Technical Architecture
Challenge is creating sharing culture
Bottom Line - better RoIC
 Learning History
Team Skills
Process Improvements
- Quality etc.

Knowledge New science

Network competencies
Communications
Architecture

People Marketing products

- manager skills - customer dialogue
- Yellow pages Strategy
- expertise
 SM

Knowledge is their business

Systematic processes - sharing best practice
Knowledge centres - editors and advisers
Taxonomy - International Business Language
Common formats on information
Lotus Notes for multiple views
Adding contextual/contact information
Bottom Line: Better solutions in less time
 Solutions lie in minds, not databases
Corporate network (V1 - CIS) - up in 30 days
Knowledge Transfer department and VP
CEO monitors and uses the network
FAQs, virtual conferences, forums
KNetix (sm) - knowledge sharing Intranet
Metrics - direct customer engagement
Bottom line - open, unrestricted communication
 First to publish intellectual balance sheet
Visible assets vs. invisible assets
IC = customer + human + structural
IT + IC + values = Intelligent organisation
Not just sums - will drive operating units
visualise, success factors, indicators, development
Bottom line - ongoing growth and value