KM Terminology

1. KM Terminology confusion - data, information and knowledge firms do not distinguish clear definition is important for information and knowledge strategy differences in the way how we we manage data, information and knowledge

2. Data - everything we can monitor by our senses - everything we can feel, smell, taste, and hear - a set of discrete, objective facts about events Data can be evaluated by quantitative means: Costs - how much we have to pay to get them Speed - how quickly we can get them Capacity - how much data is available at the moment and by qualitative means: Do we have an access to data when we need it Do data meet our requirements, do they give us what we need Can we understand the message they bring

3. Information Information is a building material of knowledge. Information is data with context. Context is given to data during the process of their interpretationby the user. data related to his or hertheir needs and requirements relevance and purpose, some type of message or story receiver (user) makes the decision if the message is information or no Information moves through both hard (technology) and soft (human) networks. Quantitative measures: connectivity and transactions ( how many letters and e-mails come today) Qualitative measures - usefulness = relevance

4. Information value of information depends on the price and the personal relation too much information success relies on our ability to choose implementation of various, more or less convenient, information systems. value creating activities Contextualisation - the user knows for what purpose it was gathered Classification – the user knows to which categories the data belong Calculation - data are analysed by mathematical and statistical methods Correction - data are corrected and errors are removed Condensation – the user summarises data

5. Knowledge a changing system with interactions among experience, skills, facts, relations, values, thinking processes and meanings simply: Knowledge = Information + x x is represented by our experience, mental models, relations, values, principles we live by, believes, commitments, etc. related to human action and emotion in human minds in routines, processes, practices and norms in organisations

6. Knowledge Knowledge is created from information through: Comparison - we compare the new information with what we know about similar or other situations Consequences - we evaluate what implications the information has for decisions and actions Connections - we search for relations to knowledge we or other people already have Conversation - we find out what other people think about the information

7. Knowledge - in human minds - it’s value is validated in an action - difficult to trace the relation between it and the action - too subtle and fluid to be stored, transported and created by technology – damage - knowledge management no IS/IT solutions but work with knowledge bearers and owners - people

8. Knowledge knowledge = information + experience, mental models, relations, values, principles we live by, believes, commitment related to human action and emotion; it is created in our heads. two dimensions: explicit and tacit

9. Explicit Knowledge can be expressed in formal and systematic language shared in the form of data, scientific formulae, specifications, manuals, specifications, and so on easily processed, transmitted and stored Some authors think that explicit knowledge is equal to information.

10. Tacit Knowledge highly personal and hard to discover and formalise created from explicit knowledge and intuition, mental models, experience, crafts, skills etc., create it rooted in action, procedures, routines, commitment, ideas, value and emotions difficult to communicate and share can be turned to explicit (Nonaka and Takeuchi), cannot be turned to explicit (Polanski) if we try to formalise it we damage it

11. Knowledge and Cultures Western nations tend to view knowledge as explicit require ‘truthfulness’ of knowledge Japanese as primarily tacit

12. Tacit and Explicit Knowledge • these two types of knowledge are complementary and they are • crucial for knowledge creation • too much focus on explicit knowledge - ‘paralysis by analysis’ • too much focus on tacit knowledge - over reliance on past • success and the elimination of new information, • ideas and viewpoints

13. Interaction of Explicit and Tacit Knowledge explicit and tacit knowledge interact with each other in people’s creative activities Example: pianist concentrating on how but fully concentrating on what The same happens if we learn something new - riding a bike, skating, walking, etc.

14. Interaction of Explicit and Tacit Knowledge is called ‘knowledge conversion’ within the individual - without the help of others through interactions between individuals who own different types and contents of knowledge.

15. Knowledge Conversion - SECI

16. Combination process of connecting discrete elements of explicit knowledge into set of explicit knowledge that is more complex and systematic than any of its parts combined through documents, meetings, phone calls also includes the break down of concepts - corporate objectives through three processes knowledge is collected and combined the new explicit knowledge is spread around explicit knowledge is edited and again spreadaround

17. Internalisation Internalisation is the process of embodying explicit knowledge as tacit knowledge learning-by-doing internalised knowledge is used to broaden, extend and change people’s tacit knowledge base for shared mental models or various types of know-how puts together two dimensions: - explicit knowledge is embodied in action and practice - explicit knowledge can be embodied by simulation and experiments

18. Externalisation process of articulating tacit knowledge as explicit knowledge explicit concepts from tacit knowledge can be shared and becomes the basis for the creation of new knowledge success depends on metaphors, analogies and models

19. Socialisation • process of sharing tacit knowledge through shared experience • people have to share the same experience through joint activities • traditional apprenticeship, communities, storytelling • difficult to manage • personal experience with some activity or situation • trust, love and care cultivated between members of the company • or the community.

20. Work with Tacit Knowledge Tacit knowledge can be shared By sharing we leave it in the tacit form. can be shared between two people or by the group Whole nations share their knowledge based on the a common history and experience. There are three ways of how to share knowledge: storytelling apprenticeship communities of practices.

21. Storytelling old and very efficient tool of knowledge sharing. Success depends on: The content of the story - e.g.. the tacit knowledge we are transferring Storyteller - his personality, language skills and his ability to transform the knowledge to the story The audience - their activity and relation to the story and the storyteller, their previous knowledge, experience, mental models, etc. The story telling also depends on the ability of the audience to open their minds to the story requires a closer relationship between the storyteller and the audience

22. Apprenticeship traditional model of tacit knowledge exchange relationship between the master and the apprentice 1. master tries to articulate (make explicit) and demonstrate his knowledgeto the apprentice 2. sharing through the non-verbal personal practical experience of the apprentice, carefully monitored by the master. The apprentice is reshaping the master’s knowledge to his/her own knowledge. process is slow and it is based on social contract - co-operation important in later phases of the apprenticeship when master may feel threaten by a bright apprentice

23. Disadvantages of Apprenticeship • The relationship must not be interrupted • The master must be patient and be a good teacher • It takes time • The master must be rewarded for his effort

24. Communities of Practices groups of people who have some common interest (domain), strong relationship, share knowledge or need to share knowledge, experiences, tools and, best practices to solve some problem depend on each others’ knowledge, skills and expertise created purposefully or emerge naturally from volunteers can be efficient only when there is a good connection and communication between people People join communities to fulfil their emotional, intellectual and other needs.

25. Communities of Practices • Intellectual needs: • Develop own expertise • Awareness of opportunities • New perspectives • High return on the effort • Improve status • Increase of influence • Improve skills, knowledge and abilities • Contact with people with similar interests

26. Communities of Practices • Emotional needs: • Satisfaction from helping others • Recognition and kudos • Increased confidence • New relationships/network • Sense of belonging • Other needs: • Improved performance • Better salary

27. Communities of Practices The purpose of the community should be clear The community may create the shared vision and strategy and define objectives Community members do not have to necessarily work in the same field The community always needs the support of the organisation

28. Communities of Practices • Companies benefit from communities of practices in following areas: • Human Resources: • Community develops employees • Community improves competence • Improves the quality of thinking • Building of cross-organisational alliances • Increasing employee satisfaction and retention • Improving informal communication • Identifying skilled employees

29. Communities of Practices • Structural Capital • Reduces costs by sharing best practices • Reduces duplication of effort • Reduces cycle times • Improves quality • Develops and share new intellectual capital • Increases capacity for innovation • Connections are built across organisational boundaries and • the knowledge flow improves Motivating factors: the trust and opened corporate culture

30. Knowledge Market exchange of knowledge between KWs physical and virtual in every organization • Advantages of healthy knowledge market: • enables knowledge exchange • improves quality of intellectual work • improves informal communication • improves quality of work • eliminates duplicities • cuts down costs • improves innovation capacity

31. Knowledge Market • Knowledge market participants: • sellers – have knowledge • buyers – search for knowledge • agents – help sellers and buyers meet • Currency: • reciprocity • reputation • altruism • Money? usually no!

32. Knowledge Market Trust: Feeling that other person will not jeopardize your interests. At least. based on: power, knowledge, friendship, institution, etc. Consistent behavior!

33. Knowledge Market Knowledge market signals: Formal – education and position Informal – knowledge network, gossips COPs Market place: physical – explicit and tacit knowledge virtual – only explicit knowledge

34. Knowledge Market • Dysfunctions of knowledge market: • buyer and seller have problem to find each other • for of payment for knowledge shared is clear, payment unsure • difficult to evaluate a quality of knowledge • Knowledge market dysfunctions are caused by: • managers do not know which knowledge is in their organization and • who owns it • asymmetry of knowledge market – knowledge is concentrated in one • part of organization, other parts do not have access to it • (marketing department and strategy) • localization of knowledge – people share knowledge and ask for new • knowledge only when they know each other

35. Knowledge Market • Pathologies: • monopolies – sb. has knowledge and does not share it with others • artificial deficiency – monopoly, organization looses KWs • barriers – organization or its part refuses to use new knowledge or • participate in knowledge market

36. Knowledge Market • Knowledge market enablers and inhibitors: • environment of trust • KWs know corporate strategy • proper organizational structure • integration of systems • close relation to customers • KWs understand what tacit knowledge is and know how to work with • it • managers are visible and involved • proper system of rewarding