Chapter Five

Knowledge Management (Km)

5.1. Introduction to knowledge management

S
tudents! If you remember, we have defined and discuss more about data, information,
and knowledge at the 2nd chapter of this course. Recall that data consists of raw facts,
such as an employee number, number of hours worked in a week, inventory part
numbers, or sales orders. A list of the quantity available for all items in inventory is an
example of data. When these facts are organized or arranged in a meaningful manner,
they become information. Information is a collection of facts organized so that they
have additional value beyond the value of the facts themselves. An exception report of
inventory items that might be out of stock in a week because of high demand is an
example of information.
Knowledge is the awareness and understanding of a set of information and the ways
that information can be made useful to support a specific task or reach a decision.
Knowing the procedures for ordering more inventories to avoid running out is an
example of knowledge. In a sense, information tells you what has to be done (low
inventory levels for some items), while knowledge tells you how to do it (make two
important phone calls to the right people to get the needed inventory shipped
overnight). For more understanding on knowledge refer the following table.
Types of Definitions Example
Knowledge
Tacit knowledge is rooted in actions, best means of dealing with specific
experience, and involvement in specific customer
context individual belief on case-effect
Cognitive tacit mental models relationships
Technical tacit know-how application to specific work surgery skills
Explicit Articulated, generalized knowledge knowledge of major customers in a
region
Individual created by and inherent in the insights gained from completed
individual project
Social created by and inherent in collective norms for inter-group communication
actions of a group
Declarative know-about what drug is appropriate for an illness
Procedural know-how how to administer a particular drug
Causal know-why understanding why the drug works
Conditional know-when understanding when to prescribe the drug
Relational know-with understanding how the drug interacts with other drugs
Pragmatic useful knowledge for Best practices. Business framework. Project
an origination experiences, engineering drawings, market reports

Management Information System Chapter 5 1

What is knowledge?

 personalized information
 state of knowing and understanding
 an object to be stored and manipulated
 a process of applying expertise
 a condition of access to information
 potential to influence action

Knowledge is the full utilization of information and data, coupled with the potential of people's
skills, competencies, ideas, intuitions, commitments and motivations.

Knowledge Management is one of the hottest topics today in both the industry world
and information research world. In our daily life, we deal with huge amount of data
and information. Data and information is not knowledge until we know how to dig the
value out of it. This is the reason we need knowledge management. Unfortunately,
there's no universal definition of knowledge management, just as there's no agreement
as to what constitutes knowledge in the first place. We chose the following definition
for knowledge management for its simplicity and broad context.

Knowledge Management (KM) refers to a multi-disciplined approach to achieving organizational

objectives by making the best use of knowledge. KM focuses on processes such as acquiring,
creating and sharing knowledge and the cultural and technical foundations that support them.

 Knowledge Management may be viewed in terms of:

o People – how do you increase the ability of an individual in the organization
to influence others with their knowledge
o Processes – Its approach varies from organization to organization. There is no
limit on the number of processes
o Technology – It needs to be chosen only after all the requirements of a
knowledge management initiative have been established.
Or

o Culture –The biggest enabler of successful knowledge-driven organizations is

the establishment of a knowledge-focused culture
o Structure – the business processes and organizational structures that facilitate
knowledge sharing
o Technology – a crucial enabler rather than the solution.

Management Information System Chapter 5 2

What is KM? definition
Results-oriented “To have the right knowledge at the right place, at the right time
in the right format.”
Process-oriented “The systematic management of process by which knowledge is
Definition identified, created, gathered, shared and applied.”
Technology “Business intelligence + collaboration + search engines +
Oriented intelligent agents.”
Knowledge management systems refer to any kind of IT system that stores and
retrieves knowledge, improves collaboration, locates knowledge sources, mines
repositories for hidden knowledge, captures and uses knowledge, or in some other way
enhances the KM process.
Knowledge management systems (KMS) refer to a class of information systems applied
to managing organizational knowledge. That is, they are IT-based systems developed to
support and enhance the organizational processes of knowledge creation, storage or
retrieval, transfer, and application.

Purpose of a KMS

 Improved performance o Driving strategy

 Competitive advantage o Starting new lines of business
 Innovation o Solving problems faster
 Sharing of knowledge o Developing professional
 Integration skills
 Continuous improvement by: o Recruit and retain talent
5.2. The theory of knowledge management

According to theory of motivation, employees are not going to make contributions to

one knowledge management system if they don't receive something in exchange for the
knowledge that they input into the system. This means that in order to be effective you
need to know what will motivate each employee to contribute their knowledge to
organizational system.

There are three main motivational profiles for knowledge management systems. The
first motivational profile for a knowledge management system is the "connector"
profile. Connectors are members of your knowledge system who are motivated to make
contributions by the opportunity to make new connections with other knowledge
contributors. These are the networking people in your organization, they are vendors

Management Information System Chapter 5 3

that provide services or supplies to your company and they can even be other people in
your industry.

The "maven" is the next motivational profile. A maven is a knowledge inputter that is
motivated by the opportunity to gain more knowledge. These people are going to be the
corporate climbers, such as junior executives and entry level employees who are eager
to develop their resume and professional expertise.

The final motivational profile is the "evangelist." This knowledge inputter is interested
in spreading the word about new knowledge. They enjoy giving knowledge to others so
that they can apply the knowledge to new discoveries and applications.

In general the motivational theory of knowledge management system summarized the

way of managing knowledge through each of the following phases.

Knowledge Creation: This comprises activities associated with the entry of new
knowledge into the system, and includes knowledge development, discovery and
capture.
Knowledge Retention: This includes all activities that preserve knowledge and allow it
to remain in the system once introduced. It also includes those activities that maintain
the viability of knowledge within the system.
Knowledge Transfer: This refers to activities associated with the flow of knowledge
from one party to another. This includes communication, translation, conversion,
filtering and rendering.
Knowledge Utilization: This includes the activities using or consuming knowledge.
5.3. Knowledge Management sharing
Information sharing can be done informally or formally. When a learning need is more
appropriately addressed with information, knowledge management may be the
solution. Information sharing and knowledge management occur in organizations that
encourage sharing information and use collaboration, mentoring, and socialization to
inform people. This information sharing can be done at the workstation, in meetings, or
as issues happen.

Knowledge Sharing is an activity through which knowledge (i.e., information, skills, or

expertise) is exchanged among people, friends, families, communities.

Management Information System Chapter 5 4

“The exchange of knowledge between and among individuals, and within and among
teams, organizational units, and organizations. This exchange may be focused or
unfocused, but it usually does not have a clear a priority objective.”

“An exchange of knowledge between two individuals: one who communicates

knowledge and one who assimilates it. In knowledge sharing, the focus is on human
capital and the interaction of individuals. Strictly speaking, knowledge can never be
shared. Because it exists in a context; the receiver interprets it in the light of his or her
own background.”The differences between the definitions of knowledge transfer are
perhaps even clearer.

“Includes a variety of interactions between individuals and groups; within, between,

and across groups; and from groups to the organization.”

“The focused, unidirectional communication of knowledge between individuals,

groups, or organizations such that the recipient of knowledge (a) has a cognitive
understanding, (b) has the ability to apply the knowledge, or (c) applies the
knowledge.”

Organizations have recognized that knowledge constitutes a valuable intangible asset

for creating and sustaining competitive advantages. Knowledge sharing activities are
generally supported by knowledge management systems. However, technology
constitutes only one of the many factors that affect the sharing of knowledge in
organizations, such as organizational culture, trust, and incentives. The sharing of
knowledge constitutes a major challenge in the field of knowledge management
because some employees tend to resist sharing their knowledge with the rest of the
organization.

Challenges in Knowledge Sharing

Knowledge sharing can sometimes constitute a major challenge in the field of

knowledge management. The difficulty of knowledge sharing resides in the
transference of knowledge from one entity to another. Some employees tend to resist
sharing their knowledge. Because of the notion that knowledge is property; ownership,
therefore, becomes very important. In order to counteract this, individuals must be
reassured that they will receive some type of incentive for what they create.

Management Information System Chapter 5 5

However, Dalkir (2005) demonstrated that individuals are most commonly rewarded
for what they know, not what they share. Negative consequences, such as isolation and
resistance to ideas, occur when knowledge sharing is impeded. To promote knowledge
sharing and remove knowledge sharing obstacles, the organizational culture of an
entity should encourage discovery and innovation.

5.4. Technologies to support KM

In a knowledge management strategy technology is an instrument in a collection of
processes that govern the creation, dissemination and utilization of knowledge to fulfil
organizational objectives. KM should be supported by a collection of technologies for
authoring, indexing, classifying, storing, and retrieving information, as well as for
collaboration and application of knowledge.

IT systems are common tools that help facilitate knowledge sharing and knowledge
management. The main role of IT systems is to help people share knowledge through
common platforms and electronic storage to help make access simpler, encouraging
economic reuse of knowledge. IT systems can provide codification, personalization,
electronic repositories for information and can help people locate each other to
communicate directly. With appropriate training and education, IT systems can make it
easier for organizations to acquire, store or disseminate knowledge.

Knowledge Management requires technologies to support the new strategies, processes,

methods and techniques to better create, disseminate, share and apply the best
knowledge, anytime and anyplace, across the team, across teams, across the
organisation and across several organisations, especially its clients, customers, partners,
suppliers and other key stakeholders.

The key technologies are communication and collaboration technologies that are web
based for internet and intranet usage, as well as mobile technologies such as PDA’s,
PC’s, telephone and videoconferencing. New technologies are rapidly emerging that act
as intelligent agents and assistants to search, summarize, conceptualize and recognize
patterns of information and knowledge.

For an effective KM initiative across the organization, there needs to be in place, at least:

Management Information System Chapter 5 6

▪ Knowledge Portal: There is often confusion between the terms ‘information portal’
and ‘knowledge portal’.

An information portal is often described as a gateway to information to enable the user

to have one, more simplified way of navigating towards the desired information.

However a ‘knowledge portal’ is far more than an information portal because, as well
as information navigation and access, it contains within it software technologies to, at
least, support the processes of virtual team communication and collaboration and
software technologies to support the 9 step process of managing knowledge.
Furthermore, it contains intelligent agent software to identify and automatically
distribute information and knowledge effectively to knowledge workers based on
knowledge profiling.

▪ Knowledge Profiles: Within the knowledge portal, each knowledge worker can
update and maintain a personal ‘knowledge profile’ which identifies his/her specific
knowledge needs, areas of interest and frequency of distribution.

▪ Collaborative workspaces: Within the knowledge portal, shared work spaces can be
set up for each new team or project. These will become knowledge repositories from
which new knowledge will be distilled regularly and systematically and shared across
other teams in the organization. Within the shared and collaborative workspace, at
least, the following communication and collaboration functions could be performed:

▪ Shared vision and mission ▪ Specific team objectives ▪ Knowledge Plan ▪ Team
members roles and responsibilities ▪ Team contract ▪ Best Knowledge Bases or Banks ▪
Expert locator ▪ Task management ▪ Shared Calendar management ▪ Meeting
management ▪ Document libraries ▪ Discussion forums ▪ Centralized email ▪ Capturing
of new learnings and ideas ▪ Peer reviews, learning reviews, after action reviews ▪ New
knowledge nominations

▪ Urgent requests: Within the knowledge portal, it is very useful to have a facility and
underlying process to enter any ‘Urgent Request’ into the portal and receive back any
responses from across the organization. Rather than needing to know ‘who might
know’ the request is entered blindly and responses will be made if it is known in the
organization and people are willing to support and respond to this activity. This is a
very effective way of better leveraging the knowledge across the organization.

Management Information System Chapter 5 7

▪ Document Libraries: The document library is typically the location where all
documents are stored. The library should be context relative and allow the ease of
control over any document type. Many organizations now employ an Electronic
Document and Records Management System (EDRMS) for this requirements but the
integration of the EDRMS with all other relevant information and knowledge sources is
imperative.
▪ Knowledge Server and services: In order to foster knowledge networking across the
entire organization and support knowledge processes for creating, retaining,
leveraging, reusing, measuring and optimizing the use of the organizational knowledge
assets, a centralized knowledge server is required that will:
▪ Manage the communications and collaboration between networks of people
▪ Enable the access, creation and sharing of knowledge between them
The centralized knowledge server will manage the processes and knowledge services
that generate and disseminate knowledge assets.
The key components of a generic knowledge server are:
▪ a knowledge portal interface designed around a knowledge asset schema as a gateway
to user access, security and applications
▪ Knowledge banks:▪ Advanced search capabilities, collaboration services, search and
discovery services, publishing services based on user knowledge needs and knowledge
profiling, a knowledge map (taxonomy), knowledge repository for information and
process management, Text summarizing and conceptualizing, Intelligent agent ware, an
Intranet infrastructure for integrated email, file servers, internet/intranet services.
5.5. KM application in organizations
Organizations are realizing that intellectual capital or corporate knowledge is a valuable
asset that can be managed as effectively as physical assets in order to improve
performance. The focus of knowledge management is connecting people, processes and
technology for the purpose of leveraging corporate knowledge.

In practice, knowledge management involves, among others, the identification and

mapping of intellectual assets within an organization. This basically means identifying
who knows what within the company. When viewed from this perspective, knowledge
management can be considered as a process of performing an audit of intellectual assets
focusing on the organization’s unique resources and their crucial functions.
The implication of Knowledge Management

Database Users: From business class users to the general public, database users will
enjoy a new level of interaction with the KM system including just-in-time knowledge
that delivers precise relevant information on demand and in context. More complex,

Management Information System Chapter 5 8

smart systems will translate to optimal usability and less time spent searching for
relevant information. For example, data analysts will enjoy simplified access and more
powerful tools for data exploitation. The use of knowledge bases can reduce customer
service costs by providing customers with easy access to self service via smart systems
that reduce the need to contact customer service or technical support staff. Database
users may even create customized views of knowledge bases that support their needs.

Database Developers: The design and development of knowledge based systems will
be considerably more complex than current database development methods.
Developers must consider the overall technical architecture of the corporation to ensure
seamless interoperability. The use of standardized metadata and methods will also
facilitate both intra-corporate and inter-corporate interoperability. Making effective
physical storage and platform choices will be equally more complex. Both knowledge
base developers and administrators must understand the role of the knowledge base in
the overall KM system.

Database Administrators: Database Administrators will evolve into Knowledge

Managers. The knowledge base will store and maintain corporate memory and
Knowledge Managers will become the gatekeepers of corporate knowledge. The lines
between technical roles such as Web Developer, Data Analyst or Systems Administrator
will blur as these systems merge into and overlap with KM systems. DBAs will need to
have some knowledge about each of these disciplines.

General Public: Even if they are not interacting directly with a knowledge base, the
general public will benefit from the secondary effects of improved customer service due
to faster access to more accurate information by service providers.

Organizations are realizing that intellectual capital or corporate knowledge is a valuable

asset that can be managed as effectively as physical assets in order to improve
performance. The focus of knowledge management is connecting people, processes and
technology for the purpose of leveraging corporate knowledge. The database
professionals of today are the Knowledge Managers of the future, and they will play an
integral role in making these connections possible.

Management Information System Chapter 5 9