Knowledge Management Value Chains

Knowledge Management: A Value-Chain Approach Albert Simard presented to Interdepartmental Knowledge Management Forum October 27, 2004

An opening thought…
An era in which the key economic resource is knowledge is startlingly different from an era in which the key resources were capital, raw materials, land, and labor.
James Martin
CYBERCORP (1996)

OUTLINE
Knowledge Assets
Knowledge Value
Knowledge Management
Knowledge is different from industrial resources

Knowledge Attributes
Total knowledge is increasing; half-life is decreasing
Knowledge can be in more than one place at one time
Knowledge may be permanent or time sensitive
Knowledge can be used without being consumed
Selling does not reduce supply nor ability to sell again
Buyers only purchase knowledge once
Once disseminated, knowledge cannot be recalled
Thomas Stewart (1997)

Knowledge Costs
Production cost is independent of the number of users
Reproduction is controlled by users, not producers
Production cost greatly exceeds reproduction cost
Costs accumulate at the front-end of production
The more intangible, the greater the cost discrepancy
Inputs and outputs for creative work are uncorrelated

Explicit Knowledge
Knowledge that has been formally expressed and transferred in a tangible form; intellectual property.
databases, statistics, collections
books, publications, reports, documents, correspondence
photographs, diagrams, illustrations
computer code, expert systems, decision-support systems
presentations, speeches, lectures
recorded experiences, stories
materials for education, teaching, and training
laws, regulations, procedures, rules, policies
embedded into products

531 assets; 211 responses

Tacit Knowledge
Intangible personal knowledge gained through experience and self-learning. It is influenced by beliefs, perspectives, and values.
awareness
skills
mental models
expertise
judgement
wisdom
corporate memory
The Thinker - Rodin

Intellectual Capital “ Intellectual capital is intellectual material … that can be put to use to create wealth.” Thomas Stewart Intellectual Capital (1997) Intellectual capital includes both tangible, material (explicit knowledge) and intangible knowledge in the minds of individuals (tacit knowledge)

OUTLINE
Knowledge Assets
Knowledge value
If you can’t measure it, you can’t manage it.

Knowledge Value
Value is very difficult to measure
Value is extracted when knowledge is used
Sharing increases the value of knowledge
Value increases with abundance
Buyer cannot judge value in advance
Value can be added by filtering knowledge
Value is not well related to acquisition cost

Knowledge Value Chains
Flow of knowledge through a sequence of processes in which it’s value is increased at each stage.
Creation
Use
Management
Preservation
Sharing
Integration

Knowledge Creation Value Chain Knowledge creation is a precursor to everything else Information Management Decision-making Knowledge Management Data Management Acquisition Data Wisdom Information Knowledge Inputs sensing facts meaning understanding judgement

Creating Knowledge is not Enough
Bell Labs: lasers
Xerox: graphical user interface, object-oriented programming, laser printer, Ethernet
IBM, DEC: mainframe/mini computers
CERN: World-Wide Web
Encyclopaedia Britannica: synthesizing knowledge

Knowledge Use Value Chain The value of knowledge is realized only when it is used for something Individual Opinion Compiled Targeted Recommend Reporter Analyst Advocate Author Marketer promote publish represent influence agenda

Plant Hardiness Zones Knowledge for Canadians (climate + elevation)

Knowledge for Practitioners Fire Monitoring, Mapping, and Modeling System

OUTLINE
Knowledge Value
Knowledge Assets
KM adds value by linking creation and use

Knowledge Management Value Chain Higher-level KM goals generally have decreasing ranges of applicability Network Manager Executive Senior Manager Custodian Preservation Management Sharing Integration interface interoperability organization availability

Knowledge Management: Linking Past, Present, & Future Capture Archive Share Integrate Learn Adapt Past Present Future Infrastructure Content Processes People

Knowledge Management: A Definition Developing organizational capacity and processes to capture, preserve, share, and integrate data, information, and knowledge to support organizational goals, learning, and adaptation.

Knowledge Preservation Value Chain Preservation is the foundation of knowledge management Capture Maintain Organize Retrieve Store Librarian Systems Manager Codifier Provider access inventory map capacity continuity

Briefing Note Database

Organizing Knowledge Assets
Epistemology
Cognitive approaches
Automated methods
Classification systems
Thesauri
Interdisciplinary issues
Linguistic issues
Metadata
Knowledge map
Library of Alexandria – artist’s concept

Storing Knowledge Assets
Information Technology infrastructure
Systems for archiving and managing content
Interface for entry and administration
Data warehouse, distributed databases
Information repository, records management
Knowledge repository, knowledge map
Digital libraries, traditional libraries

Retrieving Knowledge Assets
Access to content
Browser interface
Search engine
Extraction tools
Manipulation tools
Assembly tools
Retrieval system
Relativity - Escher

Knowledge Sharing Value Chain The value of a network is proportional to the square of the number of users conversation letters speaking publishing hoarding networking synergy Individual Groups Colleagues Community personal synergy dialogue evolution

Sharing Knowledge: Methods
Conversations, discussions, dialogue
Advice, briefings, recommendations
Mentoring, teaching, examples
Questions & answers, knowledge extraction
Presentations, lectures, speeches, stories
Documents, books, manuals, instructions
Education, training, demonstration
Meetings, workshops, conferences, forums
Networks, communities of practice

Sharing Knowledge: Technology
Talking (real, virtual)
E-mail (individuals, list servers, distribution lists)
Chat rooms, forums, discussion groups
Communities of interest, informal networks
Groupware (teams, working groups)
Conferences, workshops, knowledge fairs
Data bases, information bases, knowledge bases
Digital libraries (repositories, search, retrieval)
Information & knowledge markets

Knowledge Integration Value Chain The whole is more than the sum of it’s parts Coordinator Analyst Creator Synthesizer Isolated Integrated Organized Whole structure element relationships system

Soils of Canada

Land Cover Natural Resources Canada Ressources naturelles Canada Canadian Forest Service Service canadien des for ê ts

Climate Change

Distribution of Black Spruce B) climate at 1.5 X CO 2 A) present climate 0 - 10% 11 - 20% 21 - 30% 31 - 40% 41 - 50% 51 - 60% 61 - 70% 71 - 80% 81 - 90% 91 - 100% X location of black spruce sites

“ Products are physical manifestations of knowledge, and their worth largely, if not entirely, depends on the value of the knowledge they embody.” Dorothy Leonard Wellsprings of Knowledge (1995) A final thought….

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Knowledge Management Value Chains

by Albert Simard on Apr 28, 2007

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