CHAPTER 9 Knowledge Management 1 Knowledge Management Ancient

CHAPTER 9 Knowledge Management 1

Knowledge Management § § § Ancient Collaboration at the organizational level Could revolutionize collaboration and computing Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 2

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 Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 3

Knowledge Management § § Leverages intellectual assets Delivers appropriate solutions to anyone, anywhere Good managers have always done this Ancient concept Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 4

Knowledge Management Helps organizations Identify § Select § Organize § Disseminate § Transfer Important information and expertise within the organizational memory in an unstructured manner § Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 5

Knowledge As a form of capital, must be exchangeable among persons, and must be able to grow Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 6

Knowledge Management Requires a major transformation in organizational culture to create a desire to share Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 7

Knowledge § Information that is contextual, relevant, and actionable § Knowledge is INFORMATION IN ACTION § Higher than data and information Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 8

Knowledge Types § § § Advantaged knowledge Base knowledge Trivial knowledge Explicit knowledge Tacit knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 9

Explicit Knowledge § § § Objective, rational, technical Easily documented Easily transferred / taught / learned Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 10

Tacit Knowledge § Subjective, cognitive, experiential learning § § Hard to document Hard to transfer / teach / learn § Involves a lot of human interpretation Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 11

Data, Information and Knowledge 12 Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ

Knowledge Has § § Extraordinary leverage and increasing returns Fragmentation, leakage, and the need to refresh Uncertain value sharing Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 13

Organizational Learning and Organizational Memory § § § Group memory Learning The learning organization Organizational memory Organizational learning Organizational culture Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 14

Organizational Memory § § § Individual wells Information well Culture well Transformation well Structural well Ecology well Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 15

Organizational Learning Focuses § § § § Knowledge source Product-process focus Documentation mode Dissemination mode Learning focus Value chain focus Skill development focus Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 16

Organizational Culture § § § Culture is a pattern of shared basic assumptions Most important aspect of KM success Why don’t people share knowledge? Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 17

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 Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 18

How Core Competency is Linked to Explicit and Tacit Knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 19

KM Objectives § § Create knowledge repositories Improve knowledge access Enhance the knowledge environment Manage knowledge as an asset Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 20

KMS Manage § § § Knowledge creation through learning Knowledge capture and explication Knowledge sharing and communication through collaboration Knowledge access Knowledge use and reuse Knowledge archiving Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 21

Knowledge Repository § § § Not a database Not a knowledge base (like for ES) A collection of internal and external knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 22

Knowledge Repository Types § § § External Structured internal knowledge Informal internal knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 23

KM Activities § § Externalization Intermediation Cognition Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 24

KM Features § § § Create a knowledge culture Capture knowledge Generate knowledge Explicate (and digitize) knowledge Share and reuse knowledge Renew knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 25

Cyclic Model of KM § § § Create knowledge Capture knowledge Refine knowledge Store knowledge Manage knowledge Disseminate knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 26

Cyclic Model of KM Capture Knowledge Create Knowledge Refine Knowledge Disseminate Knowledge Store Knowledge Manage Knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 27

KM Examples § § § Mitre Dow Chemical Company Xerox Chrysler Monsanto Chevron Buckman Laboratories KPMG Ernst & Young Arthur Andersen Consulting Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 28

Why Adopt KM § § § Cost savings Better performance Demonstrated success Share Best Practices Competitive advantage Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 29

Chief Knowledge Officer (CKO) § § Maximize firm’s knowledge assets Design and implement KM strategies Effectively exchange knowledge assets Promote system use Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 30

KM Development § § Need a knowledge strategy Identify knowledge assets Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 31

KM Development 1. 2. 3. 4. 5. 6. 7. 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 Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 32

Strategies for Successful KM Implementation 1. 2. 3. 4. 5. Establish a KM methodology Designate a pointperson Empower knowledge workers Manage customer-centric knowledge Manage core competencies Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 33

1. More Strategies 6. 7. 8. 9. 10. 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 Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 34

KM Methods, Technologies, and Tools § § § § § Email or messaging Document management Search engines Enterprise information portal Data warehouse Groupware Workflow management Web-based training Others Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 35

How to KM § Integrate the technologies to manage knowledge effectively Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 36

KM Tool Categories § § § Information architecture Technical architecture Application architecture Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 37

KM Software § Knowware still developing but… § Decision. Suite Wincite Data. Ware Knowledge. X Knowledge Share § § Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 38

KM Success § § § § § Economic performance Technical and organizational infrastructure Standard, flexible knowledge structure Knowledge-friendly culture Clear purpose and language Change in motivational practices Multiple channels for knowledge transfer Worthwhile level of process orientation Nontrivial motivational encouragement Senior management support Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 39

Measuring Success § § Balanced Scorecard Skandia Navigator Economic Value Added Inclusive Valuation Methodology Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 40

KM Failure Causes 1. 2. 3. 4. 5. Unclear definition of knowledge Overemphasis on knowledge stock, not flow Belief that knowledge exists outside people’s heads Not recognizing the importance of managing knowledge Failure to manage tacit knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 41

1. More Failure Causes 6. 7. 8. 9. 10. 11. Failure to disentangle knowledge from its uses Downplaying reason and thinking Focusing on the past and present, not the future Failure to recognize the importance of experimentation Substituting technology contact for human interface Overemphasis on measuring knowledge, not its outcomes Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 42

KM and AI § § § Can use AI in KM Can use KM in AI Data mining can create knowledge Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 43

Electronic Document Management § § § A KM for documents Everyone is on the same page Documents are up to date Simple example: corporate phonebook Lower costs Better performance Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 44

KM – The Future § § § Not a fad Impact is immense Research on organizational culture How to do each step Are they the right steps? Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 45

Knowledge Management § § § The definition is clear The concepts are clear The challenges are § Clear § Surmountable § § The benefits are clear (and can be huge) The tools and technologies are viable Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 46

Knowledge Management Key Issues § § Organizational culture Executive sponsorship Measuring success The future: Comprehensive standardized KM packages Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 47

Knowledge Mangement “The wise see knowledge and action as one” (Bhagvad Gita) Intelligent organizations recognize that knowledge is an asset, perhaps the only one that grows over time, and when harnessed effectively can sustain the ability to continuously compete and innovate. Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 48

Case Applications 9. 1 Chrysler’s New Know-Mobiles 9. 2 Knowledge the Chevron Way Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6 th edition. Copyright 2001, Prentice Hall, Upper Saddle River, NJ 49