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CHAPTER 9

CHAPTER 9. Knowledge Management. Introduction. What do we mean by knowledge? Class Discussion Drucker (1994): “ The knowledge society will be more competitive than anything that we have seen so far. ”

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CHAPTER 9

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  1. CHAPTER 9 Knowledge Management

  2. Introduction • What do we mean by knowledge? Class Discussion • Drucker (1994): “The knowledge society will be more competitive than anything that we have seen so far.” • Why? With knowledge being universally accessible there will be no reason for por performance. • Cyert (1991): “The most crucial variable in economic development is Knowledge.”

  3. Introduction • Leonard-Barton (1995): “Organizations that are successful innovators are those that build and manage knowledge effectively through activities as developing shared problem-solving skill, experimentation, integrating knowledge across functional boundaries, and importing expertise from external sources.”

  4. Knowledge Management • Ancient • Collaboration at the organizational level • Could revolutionize collaboration and computing

  5. Opening Vignette: Knowledge Management Gives Mitre a Sharper Edge • Mitre - knowledge management system (KMS) to leverage organizational knowledge effectively throughout the organization • Internal marketing during development • Supported at the highest level • Provided an important application • Organizational culture shift was critical • Saved $54.91 million / invested $7.19 million

  6. Knowledge Management • Leverages intellectual assets • Delivers appropriate solutions to anyone, anywhere • Good managers have always done this • Ancient concept

  7. DSS Insights- GEM: A DSS for Workload-Planning Decisions Overview:. GEM a large stevedoring company. Schedules developed a week ahead. Each ship is expected to arrive within 10 days. Unexpected conditions cause the schedule to be re- written

  8. DSS Insights- GEM: A DSS for Workload-Planning Decisions System Description:* means very important variable • Ships. ETA. Cargo Information. Ship’s workload per location. DWT. Permitted berths. Maximum number of elevators. ETD*

  9. DSS Insights- GEM: A DSS for Workload-Planning Decisions Berth. Equipment information. Availability of equipment. Maximum permitted length. Maximum permitted draught. Maximum permitted DWT

  10. DSS Insights- GEM: A DSS for Workload-Planning Decisions • Other characteristics.The planner can override the system.Each ship has a max number of elevators which can be set by the planner • System operation.Run planning scenario with no penalties.Study results.If there are ships in an unfavorable position (ETD) - manipulate penalties to improve ships position.Repeat until satisfactory • Class discussion!!!!!!

  11. Knowledge Management Helps organizations • Identify • Select • Organize • Disseminate • Transfer Important information and expertise within the organizational memory in an unstructured manner

  12. Knowledge As a form of capital, must be exchangeable among persons, and must be able to grow Intellectual Capital- as the competence of an individual and the commitment of the individual to the organization’s goals (competence * commitment)

  13. Knowledge Management Requires a major transformation in organizational culture to create a desire to share

  14. Knowledge • Information that is contextual, relevant, and actionable • Knowledge is INFORMATION IN ACTION • Higher than data and information

  15. Knowledge Types • Advantaged knowledge • Base knowledge • Trivial knowledge • Explicit knowledge • Tacit knowledge

  16. Knowledge Types • Advantaged Knowledge- Knowledge that provides competitive advantage • Base Knowledge- Knowledge that is integral to an organization, providing it with short-term solutions (i.e. best practices) • Trivial knowledge- knowledge that has no impact on the organization

  17. Explicit Knowledge • Objective, rational, technical • Easily documented • Easily transferred / taught / learned

  18. Tacit Knowledge • Subjective, cognitive, experiential learning • Hard to document • Hard to transfer / teach / learn • Involves a lot of human interpretation

  19. Data, Information and Knowledge

  20. Knowledge Has • Extraordinary leverage and increasing returns • Fragmentation, leakage, and the need to refresh • Uncertain value • Uncertain value sharing

  21. Organizational Learning and Organizational Memory • Group memory • Learning • The learning organization • Organizational memory • Organizational learning • Organizational culture

  22. Organizational Memory • Individual wells • Information well • Culture well • Transformation well • Structural well • Ecology well

  23. Organizational Learning Focuses • Knowledge source • Product-process focus • Documentation mode • Dissemination mode • Learning focus • Value chain focus • Skill development focus

  24. Organizational Culture • Culture is a pattern of shared basic assumptions • Most important aspect of KM success • Why don’t people share knowledge?

  25. Knowledge Management (KM) • A process of elicitation, transformation, and diffusion of knowledge throughout an enterprise so that it can be shared and thus REUSED • Helps organizations find, select, organize, disseminate, and transfer important information and expertise • Transforms data / information into actionable knowledge to be used effectively anywhere in the organization by anyone

  26. How Core Competency is Linked to Explicit and Tacit Knowledge

  27. KM Objectives • Create knowledge repositories • Improve knowledge access • Enhance the knowledge environment • Manage knowledge as an asset

  28. KMS Manage • Knowledge creation through learning • Knowledge capture and explication • Knowledge sharing and communication through collaboration • Knowledge access • Knowledge use and reuse • Knowledge archiving

  29. Knowledge Repository • Not a database • Not a knowledge base (like for ES) • A collection of internal and external knowledge

  30. Knowledge Repository Types • External • Structured internal knowledge • Informal internal knowledge

  31. KM Activities • Externalization • Internalization • Intermediation • Cognition

  32. KM Features • Create a knowledge culture • Capture knowledge • Generate knowledge • Explicate (and digitize) knowledge • Share and reuse knowledge • Renew knowledge

  33. Cyclic Model of KM • Create knowledge • Capture knowledge • Refine knowledge • Store knowledge • Manage knowledge • Disseminate knowledge

  34. Cyclic Model of KM Capture Knowledge Create Knowledge Refine Knowledge Disseminate Knowledge Store Knowledge Manage Knowledge

  35. KM Examples • Mitre • Dow Chemical Company • Xerox • Chrysler • Monsanto • Chevron • Buckman Laboratories • KPMG • Ernst & Young • Arthur Andersen • Andersen Consulting

  36. Why Adopt KM • Cost savings • Better performance • Demonstrated success • Share Best Practices • Competitive advantage

  37. Chief Knowledge Officer (CKO) • Maximize firm’s knowledge assets • Design and implement KM strategies • Effectively exchange knowledge assets • Promote system use

  38. KM Development • Need a knowledge strategy • Identify knowledge assets

  39. KM Development • Identify the problem • Prepare for change • Create the team • Map out the knowledge • Create a feedback mechanism • Define the building blocks • Integrate existing information systems

  40. Strategies for Successful KM Implementation • Establish a KM methodology • Designate a pointperson • Empower knowledge workers • Manage customer-centric knowledge • Manage core competencies

  41. More Strategies • Foster collaboration and innovation • Learn from best practices • Extend knowledge sourcing • Interconnect communities of expertise (communities of practice) • Report the measured value of knowledge assets

  42. KM Methods, Technologies, and Tools • Email or messaging • Document management • Search engines • Enterprise information portal • Data warehouse • Groupware • Workflow management • Web-based training • Others

  43. How to KM • Integrate the technologies to manage knowledge effectively

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