05 - Knowledge Management

Decision Support and Business
Intelligence Systems
(9th Ed., Prentice Hall)
Chapter 11:
Knowledge Management
Learning Objectives
 Define knowledge and describe the different
types of knowledge
 Describe the characteristics of knowledge
management
 Describe organizational learning and its
relationship to knowledge management
 Describe the knowledge management cycle
 Describe the technologies that can be used in
a knowledge management system
1-2 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives
 Describe different approaches to knowledge
management
 Describe the chief knowledge officer and
others involved in knowledge management
 Describe the role of knowledge management
in organizational activities
 Describe the different ways of evaluating
intellectual capital in an organization
 Describe how KMS are implemented

Learning Objectives
 Describe the roles of technology, people, and
management in knowledge management
 Describe the benefits and drawbacks of
knowledge management initiatives
 Describe how knowledge management can
revolutionize the way an organization
functions
 The future of KN: Web 2.0 and beyond…

Opening Vignette:
“MITRE Knows What It Knows Through
Knowledge Management”
Company background
Problem description
Proposed solution
Results
Answer and discuss the case questions

Opening Vignette:
MITRE’s View to the KM Process
ENABLING TECHNOLOGIES FOR
Collaboration Communication
KNOWLEDGE MANAGEMENT
Data
Internet KM LIFE-CYCLE Mining
Create Share
Expert
Extranet
Systems
Search
Intranet
Engine
Identify Modify
Artificial
Web 2.0
Intelligence feedback
Machine
Act Apply Databases
Learning
Measurements Portals
Knowledge CULTURE PROCESS PRACTICE Web

representation technologies
INFLUENCING FACTORS

fyi
 Intranet  untuk keperluan internal,
bias diakses dimana saja dengan
domain sama
 Ekstranet  B2B (missal dengan
supplier)
 Internet  B2C atau C2C

Introduction to
 Knowledge management concepts and
definitions
 Knowledge management
The active management of the expertise in an
organization. It involves collecting,
categorizing, and disseminating knowledge
 Intellectual capital
The invaluable knowledge of an organization’s
employees

Introduction to
 Knowledge is
 information that is contextual, relevant, and
actionable
 understanding, awareness, or familiarity
acquired through education or experience
 anything that has been learned, perceived,
discovered, inferred, or understood.
In a knowledge management system,

“knowledge is information in action”
Introduction to
Data Relevant and

Knowledge
Processed Information Actionable
DEPLOYMENT CHART
Database DEPT 1
PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5
DEPT 2
Wisdom
DEPT 3
DEPT 4
4 5
2 3
1
Relevant and actionable processed-data

Introduction to
 Characteristics of knowledge
 Extraordinary leverage and increasing returns
 Fragmentation, leakage and the need to refresh
 Uncertain value
 Uncertain value of sharing
 Knowledge-based economy
The economic shift from natural resources to
intellectual assets

Introduction to
 Explicit and tacit knowledge
 Explicit (leaky) knowledge
Knowledge that deals with objective,
rational, and technical material (data,
policies, procedures, software, documents,
etc.)
 Easily documented, transferred, taught
and learned
 Examples…

Introduction to
 Explicit and tacit knowledge
 Tacit (embedded) knowledge
Knowledge that is usually in the domain of
subjective, cognitive, and experiential
learning
 It is highly personal and hard to formalize
 Hard to document, transfer, teach and learn
 Involves a lot of human interpretation
 Examples…
Introduction to
 Knowledge management systems
(KMS)
A system that facilitates knowledge
management by ensuring knowledge
flow from the person(s) who know to
the person(s) who need to know
throughout the organization;
knowledge evolves and grows during
the process
Organizational
Learning and Transformation
 Learning organization
An organization capable of learning from
its past experience, implying the
existence of an organizational memory
and a means to save, represent, and
share it through its personnel
 Organizational memory
Repository of what the organization
“knows”
Organizational
 Organizational learning
 Development of new knowledge and
insights that have the potential to
influence organization’s behavior
 The process of capturing knowledge and
making it available enterprise-wide
 Need to establish corporate memory
 Modern IT helps…
 People issues are the most important!

Organizational
 Organizational culture
The aggregate attitudes in an
organization concerning a certain issue
(e.g., technology, computers, DSS)
 How do people learn the “culture”?
 Is it explicit or implicit?
 Can culture be changed? How?
 Give some examples of corporate culture:
Microsoft, Google, Apple, HP, GM, …
Organizational
 Why people don’t like to share knowledge:
 Lack of time to share knowledge and time to
identify colleagues in need of specific knowledge
 Fear that sharing may jeopardize one’s job
security
 Low awareness and realization of the value and
benefit of the knowledge others possess
 Dominance in sharing explicit over tacit knowledge
 Use of a strong hierarchy, position-based status,
and formal power
 Insufficient capture, evaluation, feedback,
communication, and tolerance of past mistakes
Organizational
 Why people don’t like to share knowledge:
 Differences in experience and education levels
 Lack of contact time and interaction between
knowledge sources and recipients
 Poor verbal/written communication and
interpersonal skills
 Age, gender, cultural and ethical defenses
 Lack of a social network
 Ownership of intellectual property
 Lack of trust in people because they may misuse
knowledge or take unjust credit for it
 Perceived lack of accuracy/credibility of knowledge
Knowledge Management Activities
 Knowledge management initiatives and
activities
 Most knowledge management initiatives
have one of three aims:
1. To make knowledge visible
2. To develop a knowledge-intensive culture
3. To build a knowledge infrastructure

 Knowledge creation is the generation
of new insights, ideas, or routines
 Four modes of knowledge creation:
 Socialization
 Externalization
 Internalization
 Combination
 Analytics-based knowledge creation?
FYI
TACIT
Socialization Externalization
EXPLICIT
TACIT
Internalisasi Combination
EXPLICIT

 Knowledge sharing
 Knowledge sharing is the willful
explication of one person’s ideas, insights,
experiences to another individual either
via an intermediary or directly
 In many organizations, information and
knowledge are not considered
organizational resources to be shared but
individual competitive weapons to be kept
private
 Knowledge seeking
 Knowledge seeking (knowledge sourcing)
is the search for and use of internal
organizational knowledge
 Lack of time or lack of reward may
hinder the sharing of knowledge or
knowledge seeking

Approaches to
 Process approach to knowledge management
attempts to codify organizational knowledge
through formalized controls, processes and
technologies
 Focuses on explicit knowledge and IT
 Practice approach focuses on building the
social environments or communities of
practice necessary to facilitate the sharing of
tacit understanding
 Focuses on tacit knowledge and socialization

Approaches to
 Hybrid approaches to knowledge
management
 The practice approach is used so that a
Hybrid
repository stores only explicit knowledge
at
that is relatively easy to document
80/20  Tacit knowledge initially stored in the
to repository is contact information about
50/50 experts and their areas of expertise
 Increasing the amount of tacit knowledge
over time eventually leads to the
attainment of a true process approach
Knowledge Management -
A Demand Led Business Activity
 Supply-driven vs. demand-driven KM
Supp
ly-dr oach
iven y app
r
: DIK o l o g
Data AR Tech
n
Results
obtain
summarize
Information Action
contextulize utilize
Knowledge
Busi
ne : RAKID
ss-va
iven
lue a
ppro and-dr
a ch Dem

fyi
Input  process  output

output  process  outcome
outcome  process  impact

Approaches to
 Best practices
In an organization, the best methods
for solving problems. These are often
stored in the knowledge repository of a
knowledge management system
 Knowledge repository is the actual
storage location of knowledge in a
knowledge management system. Similar in
nature to a database, but generally text-
oriented
Approaches to
KNOWLEDGE MANAGEMENT PLATFORM (KMP)
KNOWLEDGE PORTAL
(Web-based End User Interface)
KNOWLEDGE UTILIZATION
Human Experts
Ad hoc
Search
Intelligent Broker
A
Comprehensive KNOWLEDGE REPOSITORY
(Knowledge / Information / Data Nuggets)
View to
Knowledge Web Crawler Data/Text Mining Tools
Manual
Repository
KNOWLEDGE CREATION
Entries
DIVERSE INFORMATION / DATA SOURCES

(Weather / Medical Info / Finance / Agriculture / Industrial)

Approaches to
 Developing a knowledge repository
 Knowledge repositories are developed
using several different storage mechanisms
in combination
 The most important aspects and difficult
issues are making the contribution of
knowledge relatively easy for the
contributor and determining a good
method for cataloging the knowledge

Information Technology (IT) in
 The KMS cycle
 KMS usually follow a six-step cycle:
1. Create knowledge
2. Capture knowledge
3. Refine knowledge
4. Store knowledge
5. Manage knowledge
6. Disseminate knowledge

2
Capture
The Cyclic Model Knowledge
of Knowledge
Management
1 3
Create Refine
Knowledge Knowledge
6 4
Disseminate Store
Knowledge Knowledge
5
Manage
Knowledge

fyi
Conversation Capture Synthesis Access

People
Process
Technology
Government

 Components of KMS
 KMS are developed using three sets of core
technologies:
1. Communication
2. Collaboration
3. Storage and retrieval

 Technologies that support KM
 Artificial intelligence
 Intelligent agents
 Knowledge discovery in databases
 Extensible Markup Language (XML)
 Artificial intelligence
 AI methods used in KMS:
 Assist in and enhance searching knowledge
 Help for knowledge representation (e.g., ES)
 Help establish knowledge profiles of individuals
and groups
 Help determine the relative importance of
knowledge when it is contributed to and
accessed from the knowledge repository

 AI methods used in KMS:
 Scan e-mail, documents, and databases to
perform knowledge discovery, determine
meaningful relationships and rules
 Identify patterns in data (usually through neural
networks and other data mining techniques)
 Forecast future results by using data/knowledge
 Provide advice directly from knowledge by using
neural networks or expert systems
 Provide a natural language or voice command–
driven user interface for a KMS
 Intelligent agents
 Intelligent agents are software systems that
learn how users work and provide
assistance in their daily tasks
 They are used to elicit and identify
knowledge
 See ibm.com, gentia.com for examples
 Combined with enterprise knowledge portal
to proactively disseminate knowledge

 Knowledge discovery in databases
(KDD)
A machine learning process that
performs rule induction, or a related
procedure to establish (or create)
knowledge from large databases
 a.k.a. Data Mining (and/or Text Mining)

 Model marts
Small, generally departmental repositories of
knowledge created by employing knowledge-
discovery techniques on past decision
instances. Similar to data marts
 Model warehouses
Large, generally enterprise-wide repositories
of knowledge created by employing
knowledge-discovery techniques. Similar to
data warehouses
 Extensible Markup Language (XML)
 XML enables standardized representations of
data structures so that data can be
processed appropriately by heterogeneous
information systems without case-by-case
programming or human intervention
 Web 2.0
 The evolution of the Web from statically
disseminating information to collaboratively
creating and sharing information
KM System Implementation
 Knowledge management products and
vendors
 Knowware
Technology tools (software/hardware products)
that support knowledge management
 Software development companies / vendors
 Collaborative computing tools
 Knowledge servers
 Enterprise knowledge portals (EKP)
An electronic doorway into a knowledge management
system…

 Software development companies / vendors
 Electronic document management (EDM)
A method for processing documents
electronically, including capture, storage,
retrieval, manipulation, and presentation
 Content management systems (CMS)

An electronic document management system
that produces dynamic versions of documents,
and automatically maintains the current set for
use at the enterprise level

 Software development tools
 Knowledge harvesting tools
 Search engines
 Knowledge management suites
 Knowledge management consulting firms
 Knowledge management ASPs

KMS Implementation
 Integration of KMS with other business
information systems
 With DSS/BI Systems
 With AI
 With databases and information systems
 With CRM systems
 With SCM systems
 With corporate intranets and extranets

Roles of People in
 Chief knowledge officer (CKO)
The person in charge of a knowledge
management effort in an organization
 Sets KM strategic priorities
 Establishes a repository of best practices
 Gains a commitment from senior executives
 Teaches information seekers how to better elicit it
 Creates a process for managing intellectual assets
 Obtain customer satisfaction information
 Globalizes knowledge management

Roles of People in
 Skills required of a CKO include:
 Interpersonal communication skills
 Leadership skills
 Business acumen
 Strategic thinking
 Collaboration skills
 The ability to institute effective educational
programs
 An understanding of IT and its role in advancing
knowledge management

Roles of People in
 The CEO, other chief officers, and managers
 The CEO is responsible for championing a
knowledge management effort
 The officers make available the resources needed
to get the job done
 CFO ensures that the financial resources are available
 COO ensures that people begin to embed knowledge
management practices into their daily work processes
 CIO ensures IT resources are available
 Managers also support the KM efforts by providing
access to sources of knowledge

Roles of People in
 Community of practice (CoP)
A group of people in an organization
with a common professional interest,
often self-organized for managing
knowledge in a knowledge management
system
 See Application Case 11.7 as an example of
how Xerox successfully improved practices
and cost savings through CoP
Roles of People in
 KMS developers
 The team members who actually develop
the system
 Internal + External
 KMS staff
 Enterprise-wide KMS require a full-time
staff to catalog and manage the knowledge

Ensuring the Success of
Knowledge Management Efforts
 Success stories of knowledge management
 Implementing a good KM strategy can:
 Reduce…
 loss of intellectual capital
 costs by decreasing the number of times
the company must repeatedly solve the

same problem
 redundancy of knowledge-based activities
 Increase…
 productivity
 employee satisfaction

 MAKE: Most Admired Knowledge Enterprises
“Annually identifying the best practitioners of KM”
 Criteria (performance dimensions):
1. Creating a knowledge-driven corporate culture

2. Developing knowledge workers through leadership
3. Fostering innovation
4. Maximizing enterprise intellectual capital
5. Creating an environment for collaborative knowledge sharing
6. Facilitating organizational learning
7. Delivering value based on stakeholder knowledge
8. Transforming enterprise knowledge into stakeholders’ value

 MAKE: Most Admired Knowledge Enterprises
“Annually identifying the best practitioners of KM”
 2008 Winners:
1. McKinsey & Company 10. PricewaterhouseCoopers

2. Google 11. Ernst & Young
3. Royal Dutch Shell 12. IBM
4. Toyota 13. Schlumberger
5. Wikipedia 14. Samsung Group
6. Honda 15. BP
7. Apple 16. Unilever
8. Fluor 17. Accenture
9. Microsoft 18. …
 Useful applications of KMS
 Finding experts electronically and using
expert location systems
 Expert location systems (know-who)
Interactive computerized systems that help
employees find and connect with colleagues
who have expertise required for specific
problems—whether they are across the county
or across the room—in order to solve specific,
critical business problems in seconds

 Knowledge management valuation
 Financial metrics for knowledge
management valuation
 Focus knowledge management projects on
specific business problems that can be easily
quantified
 When the problems are solved, the value and
benefits of the system become apparent

 Knowledge management valuation
 Nonfinancial metrics for knowledge
management valuation—new ways to view
capital when evaluating intangibles:
 Customer goodwill
 External relationship capital
 Structural capital
 Human capital
 Social capital
 Environmental capital
 Causes of knowledge management failure
 The effort mainly relies on technology and
does not address whether the proposed
system will meet the needs and objectives of
the organization and its individuals
 Lack of emphasis on human aspects
 Lack of commitment
 Failure to provide reasonable incentive for
people to use the system…

 Factors that lead to knowledge
management success
 A link to a firm’s economic value, to
demonstrate financial viability and maintain
executive sponsorship
 A technical and organizational
infrastructure on which to build
 A standard, flexible knowledge structure to
match the way the organization performs
work and uses knowledge
management success
 A knowledge-friendly culture that leads
directly to user support
 A clear purpose and language, to
encourage users to buy into the system
 A change in motivational practices, to
create a culture of sharing
 Multiple channels for knowledge transfer

management success
 A significant process orientation and
valuation to make a knowledge
management effort worthwhile
 Nontrivial motivational methods to
encourage users to contribute and use
knowledge
 Senior management support

Last words on KM
 Knowledge is an intellectual asset
 IT is “just” an important enabler
 Proper management of knowledge is a
necessary ingredient for success
 Key issues:
 Organizational culture
 Executive sponsorship
 Measurement of success
End of the Chapter
 Questions / comments…

All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2011 Pearson Education, Inc.

Publishing as Prentice Hall

05 - Knowledge Management

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

05 - Knowledge Management

Uploaded by

Copyright:

Available Formats

Decision Support and Business

1-2 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-4 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Answer and discuss the case questions

1-5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Knowledge CULTURE PROCESS PRACTICE Web

1-6 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-7 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

In a knowledge management system,

Data Relevant and

Relevant and actionable processed-data

1-10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-12 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-20 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-22 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-24 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-25 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-27 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Input  process  output

1-28 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

DIVERSE INFORMATION / DATA SOURCES

1-30 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-31 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-32 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-33 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Conversation Capture Synthesis Access

1-34 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

3. Storage and retrieval

1-36 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-38 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-39 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-42 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 Content management systems (CMS)

1-43 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-44 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-45 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-46 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-47 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-48 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-50 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

 loss of intellectual capital

 costs by decreasing the number of times

the company must repeatedly solve the

1-51 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1. Creating a knowledge-driven corporate culture

1-52 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1. McKinsey & Company 10. PricewaterhouseCoopers

1-54 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-55 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-57 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-59 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-60 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

1-62 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright © 2011 Pearson Education, Inc.

1-63 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

You might also like