WHAT IS KNOWLEDGE

MANAGEMENT?
Knowledge Management is the process of
capturing and making use of firm’s
collective expertise anywhere in the
business – on paper, in documents, in
databases (explicit knowledge) , or in
people’s heads (tacit knowledge) and
distributing it to where it can help produce
the biggest payoff (Hibbard 1997).
It is the capability of an organization to create
new knowledge, disseminate it throughout the
organization and embody it in products,
services and systems ( Nonaka and Takeuchi,
1995).
It is about ensuring that people :
Have the knowledge they need- right
knowledge
When they need it – at the right time
Where they need it- at the right place.
IT INCLUDES:
1. Using accessible knowledge from outside
sources.
2. Embedding and storing knowledge in
business process, products and services.
3. Representing knowledge in databases and
documents.
4. Transferring and sharing knowledge
throughout the organisation.
 HISTORY
A number of management theorists have
contributed to the evaluation of knowledge
management.
Drucker was the first to coin the term knowledge
worker in the early 1960’s.
In 1980’s , the importance of knowledge as a
competitive asset was apparent.
The knowledge was managed through artificial
intelligence and expert systems, and gave the
concept of knowledge acquisition.
Senge (1990) focused on the learning
organisation as one that can learn from past
experiences stored in corporate memory
systems.
By 1990, Knowledge management related
articles began appearing in journals and
books.
A number of management consultancy
firms had begun in-house knowledge
management programs.
Nonaka and Takeuchi (1995) studied how
knowledge is produced, used, and diffused
within organizations and how this
contributes to the diffusion of innovation.
The International Knowledge Management
Network (IKMN) went online in 1994.
DIMENSIONS OF KNOWLEDGE
MANAGEMENT
1. KM STRATEGY
A knowledge management strategy is simply
a plan that describes how an organization will
manage its knowledge better for the benefit of
the organization and its stakeholders. The
objective is to manage, share and create
relevant knowledge assets that will help meet
tactical and strategic requirements.
2. ORGANIZATIONAL CULTURE
The organizational culture influences the way
people interact, the context within which
knowledge is created, the resistance they will
have towards certain changes, and ultimately the
way they share knowledge.
3. ORGANIZATIONAL PROCESSES
A properly implemented organizing process
would result in a work environment where all
team members are aware of their responsibilities
and thus, increasing efficiency and effectiveness.
4. MANAGEMENT AND LEADERSHIP
KM requires competent and experienced
leadership at all levels.
5. TECHNOLOGY
The systems, tools and technologies that fit
the organization’s requirements should be
properly designed and implemented.
6. CORPORATE POLITICS
It includes the long term support to implement
and sustain KM initiatives.
MODELS OF KNOWLEDGE
MANAGEMENT
1. NONAKA- TAKEUCHI KNOWLEDGE
SPIRAL MODEL
 According to Nonaka, explicit knowledge is
knowledge that is easily expressed, captured, stored
and reused. On the contrary , tacit knowledge is
highly personal. The SECI model was first proposed
in 1991. It has four distinct knowledge interactions :
1. SOCIALIZATION
It is the process of converting new tacit
knowledge through shared experiences.
2. EXTERNALIZATION
It is the process of articulating tacit knowledge
into explicit knowledge.
3. COMBINATION
It is the process of converting explicit
knowledge into more complex and systematic
sets of explicit knowledge.
4. INTERNALIZATION
It is closely related to ‘ learning by doing’. It
is the process of embodying explicit knowledge
into tacit knowledge.
2. BOISOT MODEL
This model is based on the concept on
“informational asset” which is different from
physical asset.
Boisot made a distinction between information
and data, emphasizing that information is what
an observer will extract from data, according to
his own experience and previous knowledge.
3. WIIG MODEL
The base of this model is represented by the
following principle, “ if we want to have
useful and valuable knowledge, these must
be organized.”
Wiig model defines many levels regarding
the internalization of knowledge.
4. BENNET MODEL
Bennet model is based on a number of
subsystems which interacts and evolves in
order to generate an advanced and
intelligent technological company. It
includes the following key processes:
1. Understanding
2. Creation of new ideas
3. Problem solving
4. Decision taking
5. Following actions to obtain the desired
KNOWLEDGE VALUE
CHAIN
A knowledge value chain is a sequence of
intellectual tasks by which knowledge
workers build their employer’s unique
competitive advantage and social or
environmental benefits.
It is a methodology for understanding the
transformation of data into knowledge and
intelligence , and finally into value and
operating results.
It is based on the premise that knowledge is
not a cost- it is an investment.
IMPORTANCE OF
KNOWLEDGE
MANAGEMENT
For the individual, KM:
Helps people do their jobs and save time
through better decision making and problem
solving.
Facilitates more effective networking and
collaboration.
Helps people to keep up to date.
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.
HOW XEROX GOT ITS ENGINEERS TO USE A
KNOWLEDGE MANAGEMENT SYSTEM
In today’s business climate, capturing staff
knowledge and managing that data is more
critical than ever as IT leaders grapple with
downsizing, hiring freezes, and manpower
fluctuations.
Xerox Corp. designed Eureka when it
realized invaluable on-site solutions created
by engineers in its 24,000-member customer
service unit couldn’t be efficiently shared
among the engineers and the support staff.
Eureka, a KM application that leverages Xerox’s
Web-based DocuShare tool using an Oracle
 database. By logging in to Eureka, engineers
could easily document newly created solutions
using various templates via their office laptops.
 According to an April 2000 report by the
University of Southern California's Center for
Organizational Effectiveness and the executive-
search firm Korn/Ferry International, 64 percent of
knowledge workers say they are vastly underusing
organizational knowledge and the electronic tools
created to help them share it
 Xerox tried a number of incentives to book
employee interest and learned that professional
credit was the key. With a quick app revamp,
Eureka provided engineers an ability to "author’’
their solutions.
Xerox saw a 10 percent reduction in labor and cost
improvement just within the initial Eureka rollout
in France.
That return on investment jumped tremendously as
the company opened the application to its
Canadian, European, and South American
engineers.
 Today, Eureka is a global effort supporting six
different languages with high staff participation.