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Chapter 2

Chapter 2. Knowledge Management in Organization. What is Knowledge ?.

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Chapter 2

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  1. Chapter 2 Knowledge Management in Organization

  2. What is Knowledge ? Knowledge is a fluid mix of framed experience, values, contextual information, expert insight, and intuition that provides an environment and framework for evaluating and incorporating new experiences and information. It originates in individual minds but is often embedded in organizational routines, processes, practices, systems, software, and norms. 344-493 SP (KMS)

  3. Knowledge Management’s value proposition • Knowledge integration is the engine of economic prosperity. • Unpredictable markets necessitate “organization abandonment” • KM lets you lead change so that change does not lead you. • Cross-industry amalgamation is breeding complexity. • Those who forget the past are condemned to repeat it. • A bridge is needed to across the Atlantic. • Tacit knowledge is mobile. • Knowledge application requires “water-cooler” and “coffee-machine” cultures; IT barely support sharing. 344-493 SP (KMS)

  4. What Knowledge Management is not about • KM ไม่ใช่การจัดความรู้ให้ผู้อื่นใช้ • KM ไม่ใช่การจัดความรู้เข้าสู่ระบบ IT 344-493 SP (KMS)

  5. What Knowledge Management is not about • KM is not Knowledge Engineering. KM is a business problem and falls in domain of information systems and management, not in computer science. KM = Information System + people. • KM is about process, not just digital networks. KM goal is to improve business process. • Km is not building a smarter intranet. • KM is not about one time investment. • KM is not about enterprise-wide “infobahns”. KM is on helping the right people apply the right knowledge at the right time. 344-493 SP (KMS)

  6. Reasons for being successful business? Brand recognition Industry-driven vision Patterns and breakthroughs Customer Royalty and its reach Innovation business ideas Anticipated future products Past achievements Groundbreaking strategies • Coke/Coca Cola • Walmart • Microsoft/Intel • eBay • Yahoo • AOL • Citibank • Pfizer These companies are driven by and valued for their knowledge not their assets. 344-493 SP (KMS)

  7. Barriers to KMS • No recognition and reward for sharing knowledge • People are competitive & believe that knowledge increases their power • No vehicle for storing & categorizing knowledge, or the existing vehicle is difficult to use • They don’t know anyone who would be interested in what they want • They don’t share knowledge because they are not aware of what they know. 344-493 SP (KMS)

  8. Old/New Economy • Old Economy : • ตัววัดความสำเร็จใช้การเงิน Financial เป็นหลัก • (Tangible Asset) • มูลค่าแห่งบัญชี (Finance value) • New Economy : • ตัววัดความสำเร็จไม่ได้ใช้การเงิน เป็น Non-Financial เป็นหลัก • ตัววัดจะใช้ Shareholder wealth การสร้างมูลค่าเพิ่มให้องค์กร • ความสำคัญของทรัพย์สินหรือทุนที่จับต้องไม่ได้ • (Intellectual Capital, Intangible Asset) 344-493 SP (KMS)

  9. Tangible/Intangible Asset • Tangible Asset • Land • Building • Facilities • Inventory • Intangible Asset • Leadership • Knowledge • Relationship • Brand 344-493 SP (KMS)

  10. Tangible/Intangible Asset • To win old economy of tangible assets such as entity, people and money were main management themes. • To win in new economy : Maximize intangible assets which were not shown on the balance sheet is a key success. • Customer relationship:ความจงรักภักดี สานสายใยลูกค้า • Brand image (Top 10) : ความพอใจ เต็มใจ ของผู้ซื้อ 344-493 SP (KMS)

  11. Case studies : Group Discussion (16) • Drivers • Knowledge Centric drivers • Technology drivers • Structural drivers • Process focused drivers • Economic drivers • Problem symptoms • Threat and KM Solutions • Notes and Exemplars Table 2-1 Amrit Tiwana p.19-29 344-493 SP (KMS)

  12. ??? Assignment 1 • State problems in your organization. • What need to be done for a better organization in term of using and sharing knowledge. • business process • technology / infrastructure • culture/ people 344-493 SP (KMS)

  13. Summary • Physical assets : production-oriented and technologies = lose value as they are used. • Knowledge increases in value. • KM helps avoid unnecessary work duplication, and repeated mistakes. • KM can save your company from “knowledge walkout”. • KM can make your company a proactive anticipator. “We must become the change we want to be”. 344-493 SP (KMS)

  14. A journey of a thousand miles must begin with asingle step.

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