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KNOWLEDGE ORGANIZATION
THE KNOWLEDGE ORGANIZATION
Culture
Competition
Collect
Create
Organize
TechnoMaintain
logy
Intelligence
Knowledge
Organization
Refine
Disseminate
Knowledge
Management
Process
Leadership
KM Drivers
THE KNOWLEDGE ORGANIZATION




The middle layer addresses the KM life cycle
A knowledge organization derives knowledge
from customer, product, and financial
knowledge. Also from financial practices
Indicators of knowledge: thinking actively and
ahead, not passively and behind
Using technology to facilitate knowledge
sharing and innovation
IDEAL KNOWLEDGE
MANAGEMENT
Existing methods/
processes
Outside
Environment
Learning
Conversion
PEOPLE
Insights
New
ideas
Knowledge
Creation
Knowledge
Base
Codified Technology
Organizational
Benefits
• New products
• New markets
• Smarter problem-solving
•Value-added innovation
•Better quality customer
service
•More efficient processes
•More experienced staff
IDEAL KNOWLEDGE
MANAGEMENT
Strategy
Measurement
Policy
Content
Process
Technology
Knowledge
Internalization
Knowledge
Exchange
People
Knowledge
Assets
People
Knowledge
Reuse
Knowledge
Capture
Knowledge
Exchange
Knowledge
Reuse
People
Culture
IDEAL KNOWLEDGE
MANAGEMENT (FIG. 1.4)
The ideal knowledge organization allows people to
exchange knowledge across functional areas via
technology and established processes
 Knowledge internalized and adopted within the
culture of the organization

THE KM CYCLE AND THE
ORGANIZATION
Organizational
personnel
Managemen
t
Decision
making
KM Life
Cycle
. capture
. gathering
. organizing
. refining
. transfer
Culture
Information
technology
Figure 1-6 The KM cycle and the organization
WHAT KM IS NOT ABOUT

Reengineering (Fundamental rethinking and radical redesign of business process to

Intellectual capital (The value of a company or organization's employee knowledge,

Based on information or about data

Information value chain or knowledge capture


achieve dramatic improvements in critical measures of performance such as cost, service, and
speed.)
business training and any proprietary information that may provide the company with
a competitive advantage. ex: patents, brand names, company’s trademarks)
Limited to gathering information from the company’s domain
experts or retiring employees and creating databases accessible
by intranets
Digital networks
WHY KNOWLEDGE MANAGEMENT?





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
KM SYSTEM JUSTIFICATION
Is current knowledge going to be lost?
 Is proposed system needed in several locations?
 Are experts available/willing?
 Can experts articulate how problem will be solved?
 Is there a champion in the house?

THE DRIVERS
Technology Drivers
 Process Drivers
 Personnel-Specific Drivers
 Knowledge-Related Drivers
 Financial Drivers

FACTORS TRIGGERING INTEREST
IN KM
 Innovation
as core competency
 Globalization and geographic dispersion
changed the organization’s scope
 Downsizing and reengineering resulted in staff
attrition and knowledge drain
 Networking and data communications made it
easier and faster to share knowledge
 Increasing dominance of knowledge as a basis
for improving efficiency and effectiveness
triggered the need for utilizing knowledge
gained from previous experiences
KEY CHALLENGES
 Explaining
what KM is and how it can benefit
a corporate environment
 Evaluate the firm’s core knowledge, by
employee, by department, and by division
 Learning how knowledge can be captured,
processed, and acted on
 Addressing the still neglected area of
collaboration
 Continue researching KM to improve and
expand its current capabilities
 How to deal with tacit knowledge
KM MYTHS
 KM
is a fad
 KM and data warehousing are essentially the
same
 KM is a new concept
 KM is mere technology
 Technology distributes human intelligence
 KM is another form of reengineering
 Company employees have difficulty sharing
knowledge
 Technology is a better alternative than face-toface
 It is “no brainer” to share what you know
KM PROCESS LIFE CYCLE
Four-Process View of KM:
 Capturing – data entry, scanning, voice
input, interviewing, brainstorming
 Organizing – cataloging, indexing, filtering,
linking, codifying
 Refining –contextualizing, collaborating,
compacting, Projecting, mining
 Transfer – flow, sharing, alert, push
PROMOTING TRUST
 Decentralize
organization structure to allow
decision making by teamwork
 Reduce control-based management and
encourage management by results
 Revisit company’s mission statement and
ethics policy to demonstrate its new views
about values
 Assess and improve employee responsibilities
and accountability
 Eliminate unnecessary directives or barriers
 Install programs to improve employee
commitment to knowledge sharing
EXPERT’S REASONING METHODS
Reasoning
by
analogy: relating one
concept to another
 Formal reasoning:
using deductive or
inductive methods
 Case-based
reasoning: reasoning
from relevant past cases
THE WORLD OF RE-EVERYTHING
Knowledge is productive ONLY when captured in
people’s mind
 Shareability requires decentralized intelligence
 We need to empower knowledge workers
 Top performers can be a problem; they are not the
most humble

HUMAN’S LEARNING MODELS
 Learning
by experience: a
function of time and talent
 Learning
by example: more
efficient than learning by
experience
 Learning
by discovery:
undirected approach in which
humans explore a problem area
with no advance knowledge of
what their objective is.
1-20
The Knowledge Business has already changed
 Are you in the knowledge business?
 How will you close your knowledge gap?
 Is your mind geared to re-think what you think you
know?
