Knowledge Management Part One lecture No 1 Introduction

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Knowledge Management Part One lecture No (1) Introduction to knowledge management ® 1

Knowledge Management Part One lecture No (1) Introduction to knowledge management ® 1

Learning Objectives Gain an introduction to the field of KM. Understand Why do we

Learning Objectives Gain an introduction to the field of KM. Understand Why do we have to manage knowledge. Understand the role of KM in today’s organization. Determine the different perspectives of KM. Define the classification of Knowledge Management Systems Understanding the nature of knowledge ® 0 -2

The importance of knowledge Cases 0® -3

The importance of knowledge Cases 0® -3

Case One In one company, the financial manager decided to reduce the budget by

Case One In one company, the financial manager decided to reduce the budget by laying off some employees. One of them was the best maintenance engineer. After some months, one machine stopped working due to damage of some parts the company tried many times to fix it, but it could not. So it is forced to engage the engineer himself to repair that machine. Actually the engineer installed that part using his hammer for the convenience of the new part and put it in the right position so he returned the machine to work in minutes. After that he made a repair bill of $ 1000. However , the cost of the hammer by the engineer installed did not exceed one dollar? Can you justify ($ 999)!. . . 0® -4

Case Two One financial firm faced a complex problem due to the mistakes of

Case Two One financial firm faced a complex problem due to the mistakes of mathematical accumulated since the exit of financial manager of retirement. After that; many problems had been happened related to taxes and funded with many companies and banks. For solving these problems, several committees had been formed without any results, So the company decided to outsource the financial manager himself who had been able to solve the problem within three days After that, he had submitted an invoice for resolving these problems account in the amount of $ 5, 000, and when he asked about the actual amount used to accomplish the work during Three days it was $ 500 only Do you have any justification for ($ 4, 500)! 0® -5

The importance of knowledge 0® -6

The importance of knowledge 0® -6

Knowledge as a strategic Resource According to the resource-based view of the firm Knowledge

Knowledge as a strategic Resource According to the resource-based view of the firm Knowledge has become the key strategic resource, This theory attempts to explain and predict why some firms are able to establish positions of sustainable competitive advantage and, in so doing, earn superior returns. According to this theory; Knowledge can easily meet the four conditions to be strategic assets 1. It is Rare 2. It can add value 3. It can not be replaced 4. It can not be imitated ® 0 -7

Why do we have to manage knowledge? Marketplaces are increasingly competitive and the rate

Why do we have to manage knowledge? Marketplaces are increasingly competitive and the rate of innovation is rising. Reductions in staffing create a need to replace informal knowledge with formal methods. Competitive pressures reduce the size of the work force that holds valuable business knowledge The amount of time available to experience and acquire knowledge has diminished ® 0 -8

 Changes in strategic direction may result in the loss of knowledge in a

Changes in strategic direction may result in the loss of knowledge in a specific area. Early retirements and increasing mobility of the work force lead to loss of knowledge. ® 0 -9

What is Knowledge Management? (KM) may be defined simply as doing what is needed

What is Knowledge Management? (KM) may be defined simply as doing what is needed to get the most out of knowledge resources. (KM) focuses on organizing and making available important knowledge, wherever and whenever it is needed. (KM) is highly related to the concept of intellectual capital (both human and structural. ® 0 -10

Forces Driving Knowledge Management Increasing Domain Complexity Accelerating Market instability Intensified Speed of Responsiveness

Forces Driving Knowledge Management Increasing Domain Complexity Accelerating Market instability Intensified Speed of Responsiveness Diminishing Individual Experience ® 0 -11

Why KM is important ? Knowledge management provides benefits to individual, to communities of

Why KM is important ? Knowledge management provides benefits to individual, to communities of practice, and to the organization itself. ® 0 -12

For the individual, KM: q Helps people do their jobs and save time through

For the individual, KM: q Helps people do their jobs and save time through better decision making and problem solving q Helps people to keep up to date q Provides challenges and opportunities to contribute ® 0 -13

For the community of practice, KM Develops professional skills Promotes peer-to-peer mentoring Facilitates more

For the community of practice, KM Develops professional skills Promotes peer-to-peer mentoring Facilitates more effective networking and collaboration Develops a professional code of ethics that members can adhere to Develops a common language ® 0 -14

For the organization, KM • Helps drive strategy • Solves problems quickly • Diffuses

For the organization, KM • Helps drive strategy • Solves problems quickly • Diffuses best practices • Improves knowledge embedded in products and services • Cross-fertilizes ideas and increases opportunities for innovation • Enables organizations to better stay ahead of the competition • Builds organizational memory ® 0 -15

Origins of Knowledge Management Theoretical roots of KM , there a variety of areas

Origins of Knowledge Management Theoretical roots of KM , there a variety of areas informed the field of KM for example: Organization Science; There is a strong relation between km and organization science through the concept of learning organization (LO) which introduced by (Senge, 90) he describe (LO) as organizations where people continually expand their capacity to create the result they desire, and where people are continually learning to see the whole together, . Another relative concept in KM is the notion of communities of practice. ® 0 -16

 Accounting; A relationship between the KM and accounting is determined by the movement

Accounting; A relationship between the KM and accounting is determined by the movement of intellectual capital (IC) which focuses on the importance measurement of knowledge. the strategic concern was maximum return on investment in existing knowledge assets, as well as protection of intellectual property. ® 0 -17

 Human Resource Management; HRM is playing the important role in growing KM field

Human Resource Management; HRM is playing the important role in growing KM field through the concept of knowledge works and knowledge worker. Compared to traditional form of work, knowledge work has a broader scope, and less predictable Thus, it cannot be managed directly , also the knowledge worker as a new trend with some special characteristics (will be explained in details in the next chapter) requires a significant degree of job autonomy and flexibility, and need different incentive systems to get committed. As a result there is a need for different management provided by HRM. ® 0 -18

 Information technology ; KM is depending mainly on the new IT applications to

Information technology ; KM is depending mainly on the new IT applications to support the km processing. The most common type of imitative was building repositories of specific type of knowledge for use in particular business functions. Beside the implementation of IT application, there are many specific roles and positions created to advance KM agenda in organizations. As example designing knowledge architectures, and redesigning knowledge work process and activities. The following figure can summarize the main root of KM. ® 0 -19

The Theoretical roots of KM Human resource managmenet Organization science Knowledge Management Information technology

The Theoretical roots of KM Human resource managmenet Organization science Knowledge Management Information technology Accounting ® 0 -20

Empirical roots of KM Two fundamental shifts are essential for emerged KM; 1. Downsizing

Empirical roots of KM Two fundamental shifts are essential for emerged KM; 1. Downsizing During the 1980, downsizing was the popular strategy to reduce overhead costs and increase profits; however, the downside to being “lean and mean “soon became evident. Over time a successful downsizing strategy led to important knowledge has been lost , as employees left and took the knowledge that they had accumulated over the years with them , this led management to undertake a KM as a tool to retain and keep on employees’ knowledge and experts for a long time. By the way organizations have been more interested in using the more advanced IT to capture employees’ knowledge and disseminate it within and between organizational units to be more satisfied. ® 0 -21

 2 - Technology development The technology development has highlighted the interest in KM

2 - Technology development The technology development has highlighted the interest in KM through two main sources; the explosive growth of information resources such as (the internet) and the accelerating pace of technological change. The recent IT development has affected both the lives of people and organizations. Thus KM is an attempt to cope with the explosion of information and to capitalise on increased knowledge in the workplace. On the other hand, the emerging technological development enables global sharing of information across different countries, and can serve a tool within an organization to use knowledge more effectively. ® 0 -22

Knowledge Management “Systems” ? Knowledge management systems (KMS): the synergy between social/structural mechanisms and

Knowledge Management “Systems” ? Knowledge management systems (KMS): the synergy between social/structural mechanisms and latest technologies. ® 0 -23

Classification of Knowledge Management Systems q. Knowledge discovery & creating systems q. Knowledge capture

Classification of Knowledge Management Systems q. Knowledge discovery & creating systems q. Knowledge capture systems q. Knowledge sharing systems q. Knowledge application systems ® 0 -24

Effective Knowledge Management 80% - Organizational processes and human factors 20% - Technology PEOPLE

Effective Knowledge Management 80% - Organizational processes and human factors 20% - Technology PEOPLE OVERLAPPING FACTORS ORGANIZATIONAL PROCESSES TECHNOLOGY ® 0 -25

Management )Effective Knowledge (Cont q. Knowledge is first created in the people’s minds. q.

Management )Effective Knowledge (Cont q. Knowledge is first created in the people’s minds. q. KM practices must first identify ways to encourage and stimulate the ability of employees to develop new knowledge. ® 0 -26

Effective Knowledge Management Cont q q KM technologies must enable effective ways to extract,

Effective Knowledge Management Cont q q KM technologies must enable effective ways to extract, create, represent, organize, re-use, and renew this knowledge KM should not distance itself from the knowledge owners, but instead celebrate and recognize their position as experts in the organization ® 0 -27

Understanding Knowledge Philosophical Perspectives on Knowledge Part One lecture No (2) ® 2 8

Understanding Knowledge Philosophical Perspectives on Knowledge Part One lecture No (2) ® 2 8

What is knowledge ? As an essential part of KM is, of course, knowledge

What is knowledge ? As an essential part of KM is, of course, knowledge , so In order to comprehend knowledge management, it is necessary first to understand the concept of knowledge. What is knowledge? ® 0 -29

THINKERS ON KNOWLEDGE ACROSS HISTORY ®Figure 2. 1 Idealist and empiricist perspectives on knowledge

THINKERS ON KNOWLEDGE ACROSS HISTORY ®Figure 2. 1 Idealist and empiricist perspectives on knowledge ® 0 -30

PLATO (427– 347 BC) – Greek philosophers Addressed knowledge as “Justified True Belief “

PLATO (427– 347 BC) – Greek philosophers Addressed knowledge as “Justified True Belief “ ® 0 -31

ARISTOTLE (384– 322 BC) – THE METAPHYSICS Start with ‘appearances’ – ordinary believes Work

ARISTOTLE (384– 322 BC) – THE METAPHYSICS Start with ‘appearances’ – ordinary believes Work through puzzles (contradictions and find central beliefs) Come back to ‘appearances’ with better understanding ® 0 -32

DESCARTES (1596– 1650) – MEDITATIONS Lay aside things on common-sense grounds that are doubtful

DESCARTES (1596– 1650) – MEDITATIONS Lay aside things on common-sense grounds that are doubtful Doubt you are recognizing or perceiving anything at any moment ® 0 -33

BUZZ GROUP Which philosopher has the greatest influence on your thinking? ® 0 -34

BUZZ GROUP Which philosopher has the greatest influence on your thinking? ® 0 -34

What is Knowledge ? ® 0 -35

What is Knowledge ? ® 0 -35

Knowledge A great deal of conceptual challenge derives from the fact that a word

Knowledge A great deal of conceptual challenge derives from the fact that a word such as knowledge is necessarily subjective in nature, not to mention value in interpretation. ® 0 -36

Definition of knowledge The definition of knowledge is extremely challenging : - Davenport &

Definition of knowledge The definition of knowledge is extremely challenging : - Davenport & Prusak (1998 ) defined knowledge as “ A Mix of experiences, values , information and expert insight that provides a framework for evaluating and creating new experience and information” ® 0 -37

 Brooking (1999 ) defined knowledge as “Information in context with understanding on how

Brooking (1999 ) defined knowledge as “Information in context with understanding on how to use it”. ® 0 -38

 Knowledge also defined as “ A meaning resulting from using the available information

Knowledge also defined as “ A meaning resulting from using the available information in high subjective context; that’s why the variances in meaning among people on the same things “ ® 0 -39

Data, Information, and Knowledge How is knowledge different from information? and how is information

Data, Information, and Knowledge How is knowledge different from information? and how is information different from data? ® 0 -40

Data ? Data is Unorganized and unprocessed facts; it can be considered as the

Data ? Data is Unorganized and unprocessed facts; it can be considered as the basic or the raw material for creating information , it is a set of discrete facts about events. Data is a number, word or letter without any context. For example, numbers like 5 or 100, without any context, are mere data. these numbers or data are meaningless points. It is called “out of context”. For example, movie listings; giving the times and locations of all movies being shown today. ® 0 -41

Information In contrast to data information ; refers to a context, and considered as

Information In contrast to data information ; refers to a context, and considered as messages or news created by the interpretation of data, this information can be understood and has meaning by the receiver. It can defined as aggregation of data that makes decision making easier ex. most of the film movie listings are drama films. ® 0 -42

Knowledge Is derived from information in the same way information is derived from data;

Knowledge Is derived from information in the same way information is derived from data; it is a person’s range of information knowledge involving the processing, creating, or use of information in the mind of individual, which mean that information has little value and will not become knowledge until it is processed by human mind. I'll watch a movie that I know heroes ® 0 -43

Relationship between data, information and Knowledge ®Value ®Zero ®Low ®Medium®High®Very ®Data High ®Information ®

Relationship between data, information and Knowledge ®Value ®Zero ®Low ®Medium®High®Very ®Data High ®Information ® 0 -44

An illustration ®Knowledge ®Counting ® p. H = n. H/(n. H+n. T) ® p.

An illustration ®Knowledge ®Counting ® p. H = n. H/(n. H+n. T) ® p. T = n. T/(n. H+n. T) ®H T T ®EV=p. H RH+ p T RT ®p. H = 0. 40 ®H H H T H ®n. H = 40 ®p. T = 0. 60 ®… ®n. T = 60 ®RH = +$10 ®T T T H T ®EV = -$0. 80 ®RT = -$8 ®Information ®Data ®Value ®Zero ®Low ®Medium ®High ®Very High ® 0 -45

Relating Data, Information, and Knowledge to Events ®Knowledge ®Data processing ®Information ®Use of ®information

Relating Data, Information, and Knowledge to Events ®Knowledge ®Data processing ®Information ®Use of ®information ®Knowledge ®Data ®Decision ®Even ts ® 0 -46

Exercise As you are a traditional management student, which of the following statements would

Exercise As you are a traditional management student, which of the following statements would you describe as data, information or knowledge? A report on career progression prospects of MBA students. An Excel spreadsheet with questionnaire data on MBA students Critical success factors on interview success with your favored company A visit to an art exhibition The latest figures on unemployment The content list of your KM book. Travel to England at Christmas ® 0 -47

DATA, INFORMATION & KNOWLEDGE ®Figure 1. 4 Data, information, knowledge and purposeful action ®

DATA, INFORMATION & KNOWLEDGE ®Figure 1. 4 Data, information, knowledge and purposeful action ® 0 -48

WISDOM knowing how to use information, it presents an integration of all aspects of

WISDOM knowing how to use information, it presents an integration of all aspects of the personality including affects, willing, cognition, and life experience ® 0 -49

WISDOM Children have more need of models than of critics (French) You can’t see

WISDOM Children have more need of models than of critics (French) You can’t see the whole sky through a bamboo tube (Japanese) There is plenty of sound in an empty barrel (Russian) Trust in Allah, but tie your camel (Muslim) Wonder is the beginning of wisdom (Greek) ® 0 -50

 Significant implication of this view of knowledge is that for individuals to arrive

Significant implication of this view of knowledge is that for individuals to arrive at the same understanding of data or information they must share a history or context. KM can play a collaboration role by which employees can be able to assign meaning to information and data they also can capture and swap some of their knowledge with each other. ® 0 -51

Exercise: Sharing knowledge What happened when you shared your colleagues knowledge ? ® 0

Exercise: Sharing knowledge What happened when you shared your colleagues knowledge ? ® 0 -52

Classification of “knowledge” ® 0 -53

Classification of “knowledge” ® 0 -53

Types (Categorization) of Knowledge had been classified according to its orientation into : 1.

Types (Categorization) of Knowledge had been classified according to its orientation into : 1. know-what …… It is related to having information about facts and state of things ® 0 -54

Know-Why It is related to causal relationships between different element, it depends on the

Know-Why It is related to causal relationships between different element, it depends on the ability to articulate a conceptual understanding of an experience, it may called (conditional knowledge) 0® 55

 know- how is related to how people understood and how they learn including

know- how is related to how people understood and how they learn including their physical ability to produce some action, it is called (procedural knowledge) know- who which related to who know- what and how. ® 0 -56

Knowledge had been classified according to its importance to the operations into : 1.

Knowledge had been classified according to its importance to the operations into : 1. 2. 3. The core knowledge The advanced knowledge The innovative knowledge 0® 57

Tacit knowledge & explicit knowledge “ We know more than we can tell”. Polanyi

Tacit knowledge & explicit knowledge “ We know more than we can tell”. Polanyi 1966 According to Polani 1966 and Nonaka and Takeuchi (1995) identified the most famous categories of knowledge as Tacit knowledge & Explicit knowledge ® 0 -58

Explicit knowledge Refers to knowledge that is transmittable in formal, systematic language, which can

Explicit knowledge Refers to knowledge that is transmittable in formal, systematic language, which can be captured and shared through information technology so, it is easy to transfer within and between people ® 0 -59

Any organization supposes to obtain three types of explicit knowledge; v Cognitive knowledge ;

Any organization supposes to obtain three types of explicit knowledge; v Cognitive knowledge ; the basic discipline that professionals achieve through extensive training and certification v Advanced skills ; the ability to apply rules of a discipline to complex real- world problem. v System understanding ; the deep understanding of the web of cause – and effect relationships underlying a discipline ® 0 -60

Tacit knowledge Tacit knowledge; resides in the human mind, behavior, and perception It is

Tacit knowledge Tacit knowledge; resides in the human mind, behavior, and perception It is derived empirically and held by the organization's employees It is hidden and refers to; intuitions and insights ® 0 -61

Implicit knowledge Although the view of knowledge as tacit and explicit is well known

Implicit knowledge Although the view of knowledge as tacit and explicit is well known to date and involved in the majority of current literature on organizational knowledge Some scholars advocated that knowledge shouldn't seen as two separate types of knowledge. They suggested that all knowledge has both tacit and explicit components, and knowledge exists along a continuum of tacitness and explicitness For this reason it is existed a middle ground between tacit and explicit knowledge termed implicit knowledge that refers to the subset of tacit knowledge that can be transformed into explicit ® 0 -62

Basic distinction between tacit and explicit knowledge Tacit Knowledge Explicit Knowledge Tacit knowledge is

Basic distinction between tacit and explicit knowledge Tacit Knowledge Explicit Knowledge Tacit knowledge is hidden and refers to intuitions experiences and insights. Explicit knowledge can be articulated and codified items Tacit knowledge dissemination is difficult and only happens through people Explicit knowledge dissemination is easy and can happen through information technology Tacit knowledge is personal, and can be easily lost if the key people of organizations leave them Explicit knowledge is impersonal, so it can be stacked through the organizational memories. Tacit knowledge can be found in the form of values, ideas, beliefs, insight and innovation Explicit knowledge can be found in the form of rules, policies, procedures, researches and manuals Tacit knowledge has more significance as a potential source for innovation and competitive advantage Explicit knowledge has less significance as a source for innovation and competitive advantages ® 0 -63

What makes someone an expert? An expert in a specialized area masters the requisite

What makes someone an expert? An expert in a specialized area masters the requisite knowledge The unique performance of a expert is clearly recognizes in decision-making quality Knowledgeable experts are more selective in the information they acquire Experts benefit from the knowledge that comes from experience ® 0 -64

Expert’s Reasoning Methods Reasoning by analogy: relating one concept to another Formal reasoning: using

Expert’s Reasoning Methods Reasoning by analogy: relating one concept to another Formal reasoning: using deductive or inductive methods Case-based reasoning: reasoning from relevant past cases ® 0 -65

Deductive and inductive reasoning Deductive reasoning Access to the special cases of generalities :

Deductive and inductive reasoning Deductive reasoning Access to the special cases of generalities : Inductive reasoning: Reasoning from a set of facts or individual cases to a general conclusion ® 0 -66

A classic example of reasoning, given by Aristotle, deductive is All men are mortal.

A classic example of reasoning, given by Aristotle, deductive is All men are mortal. (major proposition ) Socrates is a man. (minor proposition) Socrates is mortal. (conclusion) ® 0 -67

An example of inductive Most wheels I have seen are round Most birds I

An example of inductive Most wheels I have seen are round Most birds I have seen could fly We can infer general propositions like: All wheels are round. All birds can fly. ® 0 -68

Human’s Learning Models Learning by experience: a function of time and talent Learning by

Human’s Learning Models Learning by experience: a function of time and talent Learning by discovery: undirected approach in which humans explore a problem area with no advance knowledge of what their objective is. Learning by doing: the most efficient model ® 0 -69

The End ® 0 -70

The End ® 0 -70