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Knowledge Management (INSY 521) By Dr. Temtim Assefa School of Information Science Addis Ababa University 2015 2 Course Objective • Explain basic concepts in the field of knowledge management • explain historical and societal challenges that lead for the development of KM discipline • understand the different theories, principles and approaches used to in knowledge management • Identify the different knowledge taxonomies • describe knowledge management cycles 3 Course Objective • Identify the different knowledge management tools • Able to explain knowledge acquisition methods such as from domain experts • Develop basic skills to analyze and design a KMS • Develop a skill to manage a KMS within the organization Chapter 1 - Introduction Chapter 1: Introduction to Knowledge Management • Knowledge Management Definition? • Alternative views of knowledge • Different types of knowledge • Location of knowledge • Forces driving knowledge management • Knowledge management systems 5 Knowledge Software Capability 6 What is KM? • Knowledge management (KM) is a process that helps organizations identify, select, organize, disseminate, and transfer important information and expertise that are part of the organization’s memory and that typically reside within the organization in an unstructured manner. • It is a process through which organizations generate value from their intellectual property and knowledge-based assets 7 KM? • KM involves the creation, dissemination, and utilization of knowledge • It is also viewed as the intersection between People, Processes and Technology • The information technologies that together make knowledge management available throughout an organization are referred to as a knowledge management system (KMS). 8 Knowledge Management Components Knowledge management components, cycles and technologies Components • People • Strategies • Processes • Metrics Cycles: Knowledge creation, capturing, storing, disseminating, applying and evaluating Technologies: Expert systems Collaboration Training Web 9 Alternative Views of Knowledge • There is interchangeable use of the terms data, information and knowledge • These concepts are not the same • Data is a raw facts on any thing ▫ Example - Addis Ababa, 1000, 1.8cm • Information is ▫ a processed data meaningful to the user ▫ A relationship between data sets ▫ Example Tigist’s height is 1.8 cm The Programmer salary is 2000 birr 10 Alternative views … • Information can have different meanings in different contexts ▫ ▫ • 40 degrees can have different meanings. Is the context Medical, Geographical or Technical? Example ▫ ▫ 40 deg Celsius (is a sign of fever in Medicine); 40 deg Angle (has a shape like V in Geometry) 11 Knowledge • Knowledge is information combined with experience, interpretation and reflection of an individual • Knowledge is a justified personal belief. ▫ Knowledge is relative to the knower ▫ More structured information in the human mind • A capability to apply information • Example The programmer salary is small, I will not be a programmer • Actionable information 12 Wisdom • It is Knowledge that is combined with Learning, Insight, Intuition and Judgmental abilities. • Almost exclusive to our own minds. • An Ability to make wise decisions and judgment using one’s knowledge • Example – King Solomon’s decision for two mothers 13 Data to Knowledge Hierarchy Wisdom Knowledge Information Data 14 From Facts to Wisdom one example of the hierarchy Volume Completeness Objectivity Less is Value More Structure Wisdom Knowledge Intelligence Information Facts Subjectivity 15 Data Knowledge Information Simple observations of the world: •Easily captured •Easily structured •Easily transferred •Compact, quantifiable Data with relevance and purpose: •Requires unit of analysis •Needs consensus on meaning •Human mediation necessary •Often garbled in transmission Valuable information from the human mind: includes reflection, synthesis, context •Hard to capture electronically •Hard to structure •Often tacit •Hard to transfer •Highly personal to the source More human contribution Greater value The relationships between data, information, and knowledge. 16 Types of Knowledge • There are different classification of knowledge • Example ▫ ▫ ▫ ▫ ▫ Know how and know what Procedural and declarative knowledge Tacit and explicit Tacit, implicit and explicit Etc • Commonly knowledge is classified as tacit and explicit knowledge 17 Tacit versus Explicit knowledge Explicit knowledge Tacit knowledge 18 Tacit Knowledge • • • • A knowledge that is embedded with the knower Highly contextual knowledge Unstructured as compared to explicit knowledge Difficult to verbalize and codify on knowledge repositories • It contains the largest part of our knowledge • As Polanyi Said “We know more than we can say” 19 Explicit knowledge • • • • • • • • Knowledge that can be verbalized and codified Knowledge that we found in books, databases Structured compared to tacit knowledge Easy to store in databases and documents It is easily accessible to every one Knowledge that is detached from the Knower Some Researcher label it as Information The Issue is not resolved among philosophers and scholars • The smaller part of our knowledge 20 Location of knowledge • Knowledge is classified as individual, group and organizational knowledge by possession • Individual knowledge is knowledge created and possessed by individuals • It is the base for other categories of knowledge • It is more of personal belief which may or may not be accepted by the group and the organization • More of tacit type knowledge • Emanates from experience by doing tasks 21 Location … Group Knowledge • Individual knowledge shared among groups • Group knowledge is a relationship among individuals • Constructed through collective actions and owned by all members of the group. • Dialog is the main form of group knowledge creation • Community of Practices (CoP) are examples of groups that create and possess group knowledge in an organization • Knowledge created in the group is largely tacit knowledge and “its presence is reflected by an ability to collaborate effectively” (De Long and Fahey, 2000) 22 Location …. Organizational knowledge • Organization knowledge is knowledge that is institutionalized as organizations procedures, rules and policies • Emerges from individual or group knowledge • Largely explicit knowledge and easily accessible to anyone • The tacit type of organization knowledge is often embedded in work processes which are hard to imitate by other organizations • Organizations knowledge is also internalized by individuals so that they behave according to the organizations norms and standards 23 Factors to consider in Knowledge Management • Information and knowledge have become the fields in which businesses compete. • Several important factors include: ▫ ▫ ▫ ▫ ▫ ▫ ▫ Sharing Best Practice Globalization Rapid Change Downsizing Managing Information and Communication Overload Knowledge Embedded in Products Sustainable Competitive Advantage 24 Sharing Best Practices • Sharing best practices means leveraging the knowledge gained by a subset of the organization. • Increasingly important in organizations who depend on applying their expertise such as accounting, consulting and training firms. • KM systems capture best practices to disseminate their experience within the firm. • Problems often arise from employees who may be reluctant to share their knowledge (managers must encourage and reward open sharing). 25 Globalization • Historically three factors, land, labor and capital were the key to economic success • Knowledge has become a fourth factor. • Low international labor costs are driving globalization (as is telecom) and pushing companies that fail to take part out of business. • Knowledge has become the key resource for any organization (government, financial, production, etc.). • Lastly, knowledge is portable and must be managed carefully. 26 Other factors • Rapid change: firms must be nimble and adaptive to compete • Downsizing: sometimes the wrong people get fired when creating a leaner organization • Managing Info Overload: data must be categorized in some manner if it is to be useful rather than overwhelming • Knowledge Embedded in Products: the intangibles that add the most value to goods and services are becoming increasingly knowledge-based • Sustainable Competitive Advantage: KM is the way to do this. Shorter innovation life cycles keep companies ahead of the competition. 27 Sustainable Competitive Advantage •Shorter life-cycle of innovation •Knowledge as an infinite resource •Direct bottom-line returns •Inability to assimilate knowledge •Data organization and storage is needed Sharing Best Practices •Avoid “ reinventing the wheel” •Build on previous work Downsizing •Loss of knowledge •Portability of workers •Lack of time and resources for knowledge acquisition Managing Overload Globalization Why Manage Knowledge? •Decreased cycle times •Increased competitive pressures •Global access to knowledge •Adapting to local conditions Embedded Knowledge Rapid Change •Smart products •Blurring of distinction between service and manufacturing firms •Value-added through intangibles •Avoid obsolescence •Build on previous work •Streamline processes •Sense and respond to change Reasons for Managing Knowledge. 28 Top Reason’s for Adopting KM 1. Creating easy access and visibility to organizational knowledge 2. retaining expertise of personnel, 3. increasing customer satisfaction, 4. improving profits or increasing revenues. KM is clearly suited to capturing both internal (employees’) and external (customers’) knowledge. 29 Knowledge Management Systems • The term Knowledge management started to be used in 1980s • However activities were practiced before that by Librarians, philosophers, teachers, and writers • Denning (2000) relates how from ▫ “time immemorial, the elder, the traditional healer and the midwife in the village have been the living repositories of distilled experience in the life of the community” 30 KMS … • The use of leading-edge information technologies (e.g., Web-based conferencing) to support KM mechanisms enables dramatic improvement in KM. • Knowledge management mechanisms are organizational or structural means used to promote knowledge management. • knowledge management systems (KMS): the synergy between latest technologies and social/structural mechanisms • Technology + Social Mechanisms = KMS 31 Review questions • • • • What is knowledge? What is knowledge management? Explain the difference between KM and KMS? What is the driving force for adopting KM solutions • What are the main reasons for adopting KM in the organizations