Knowledge Management
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Knowledge Management



Study of Knowledge Management Articles:...

Study of Knowledge Management Articles:
Part 1: A Critical Review Of Knowledge Management As A Management Tool.
Part 2: The Use Of Tacit Knowledge Within Innovative Companies: Knowledge Management In Innovative Enterprises.
Part 3: Knowledge Management and Process Performance.
Part 4: Knowledge Outsourcing.



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  • KM – Knowledge Management
  • KM – Knowledge Management
  • KM – Knowledge Management

Knowledge Management Presentation Transcript

  • 1. A CRITICAL REVIEW OF KNOWLEDGE MANAGEMENT AS A MANAGEMENT TOOL Prepared by Yaw Chooi Fun, Master of Business Administration, University of Hertfordshire, UK @ July 2009
  • 2. Origins and domain of Knowledge Management
    • Roos et al suggest that “intellectual capital” can be traced to two streams of thought, strategy and measurement.
    • Strategic area, focus on studying the creation and use of knowledge and the relationship between knowledge and success or value creation.
    • Measurement, focus on the need to develop new information systems, measuring non-financial data alongside the traditional financial.
  • 3. Origins and domain of Km….
      • Figure 2 Intangible resources
      • Sources: Haanes & Lowendahl, 1997
  • 4. Origins and domain of KM…
    • Haanes & Lowendahl categorise intangible resources into competence and relational resources.
    • Competence, the ability to perform a given task and exist at both the individual and organizational level.
  • 5. Origins and domain of KM…
  • 6. Empirical origins to KM
    • DiMattia and Oder (1997) argue that the growth of KM has emerged from 2 fundamental shifts:
      • Downsizing strategy
      • Technological development
  • 7. Downsizing strategy
    • Downsizing => reduce overhead and increase profits => resulted in a loss of the knowledge => Organizations recognize that lost years of valuable information and expertise and were now determined to protect themselves against a recurrence.
    • Use technology and system to capture the knowledge residing in the minds of their employees, easily shared within organization.
    • Stored and reusable resource
  • 8. Technological development
    • KM is an attempt to cope with the explosion of information and to capitalize on increased knowledge in the workplace.
    • The emerging technological development enables global sharing of information across platforms and continents and serve as a tool within an organization to use knowledge more effectively.
  • 9. Domain of Knowledge Management
    • Definition of knowledge:
      • Characteristics of knowledge
      • Tacit and explicit knowledge
  • 10. Characteristics of knowledge
    • Knowledge cannot easily be stored.
    • Knowledge involves the processing, creation, or use of information in the individual mind.
    • Knowledge is information combined with experience, context, interpretation, reflection, and perspective.
    • Knowledge is ineffectual if it’s not used.
  • 11. Tacit and explicit knowledge
    • Tacit knowledge
      • is documented and public; structured, fixed-content, externalized, and conscious. It can be captured and shared.
    • Explicit knowledge
      • is resides in the human mind, behaviour, and perception. People’s interactions and requires skill and practice.
  • 12. KM as a Management tool
    • KM as an information handling tool
    • KM as an strategic management tool
  • 13. KM as an information handling tool
    • KM is regarded as an information handling problem.
    • Acquisition of information, collecting;
    • Storage system, organized;
    • Archived by technologies, conversion of tacit knowledge to explicit knowledge;
    • Utilization of information, sharing and exchanging.
  • 14. KM as an strategic management tool
    • Organizations must adjust their capabilities to constantly changing complex external environment.
    • Must build systems for capturing and transferring internal knowledge and best practices.
    • Expected outcomes of an organisation with KM:
      • improve performance, productivity, and competitiveness
      • improve effective acquisition, sharing and usage of information
      • improve decision making
      • capture best practices
      • reduce research costs and delays
      • more innovative organization.
  • 15. Critical elements of KM strategy
    • Suggestions for critical elements must be included to successfully create and implement a KM strategy.
      • The “so what?” question
      • Support from top management
      • Communication
      • Creativity
      • Culture and people
      • Sharing knowledge
      • Incentives
      • Times
      • Evaluation
  • 16. Knowledge management in organization
    • 2 types of knowledge
      • Explicit knowledge
        • Embodies in a code or a language
        • Can be verbalized, communicated, processed, transmitted and stored relativelt easily
      • Tacit knowledge
        • Rooted in action, procedures commitment, values and emotions.
        • Acquired by sharing experiences, by observation and imitaiton
  • 18. Tacit knowledge Management
    • Tacit knowledge
      • as personal knowledge that each individual possesses that is unique and once unlocked can be creative contribution in an organization
      • Critical to the key organizational task of creating new knowledge, generating new products and improving new business procedures leading to innovation.
  • 19. Evolution of tacit knowledge
    • Knowledge conversion – SECI
      • Socialisation (from tacit knowledge to tacit knowledge)
      • Externalisation (from tacit knowledge to explicit knowledge)
      • Combination (from explicit knowledge to explicit knowledge)
      • Internalisation (from explicti knowledge to tacit knowledge)
  • 20. Evolution of tacit knowledge...
  • 21. Evolution of tacit knowledge...
    • Innovation can only evolve through practical experience
  • 22. Vitalisation of tacit knowledge
    • Can be transferred both in and outside the organization
    • Inside the organization
      • Enhance the tacit know-how competence
    • Outside the organization
      • Recruit the right individuals with the requisite education or work experience
      • By acquiring parts of or whole new companies
      • By engaging appropriate consultants or building network with other companies.
  • 23. Innovation Management
    • Innovations in different industries
  • 24. Transfer of tacit knowledge
    • Barriers
      • Fear of losing ownership
      • A position of privilege
      • Superiority
      • Lack of insufficient rewards
      • Unaware their knowledge might be interest to others
  • 25. Success factors to tacit knowledge transfer
    • Human related factors such as Motivation, Commitment, Hopes and Rewards
    • Good relationship, trust and openess between sender and recipient
    • Behavior of the management leader as role models to offer reward for imitation
    • Personal interaction processes: Informal atmosphere and face-to-face
  • 27. KM and Process Performance
    • Processes are activities that use resources to stimulate and bring about change.
    • Process improvements focus on being more responsive to customers and improve performance in quality, time, speed and reliability with reduced production costs.
  • 28. KM and Process Performance…
    • Radical improvements in numerous performance dimensions simultaneously were attained through quality management approaches.
    • Total quality management approaches identify an organisation as a set of business processes incorporated for operational and strategic levels.
  • 29. KM and Process Performance…
    • Business process management manages these flows of materials, people and information.
    • Links strategy to operational implementation and defines management responsibility focused on processes rather than functions.
    • These processes allows knowledge to play an important role in organisational effectiveness.
  • 30. Points to Ponder
    • Can the incorporation of ideas about knowledge processes lead to greater effectiveness in operational processes for the organisation?
    • Will taking a knowledge management approach help to open up new possibilities?
  • 31. Points to Ponder…
    • Knowledge management (KM) focuses on core competences providing sustainable advantage over competitors
    • KM accepts that processes, people and technology come together to improve organisational effectiveness through learning.
    • KM processes with greatest impact on operations are the creation, transfer, embedding and using of knowledge
  • 32. Points to Ponder…
    • Creation – network of experts with access to knowledge technologies to produce solutions in the problem solving domain.
    • Transfer – individuals within networks who facilitate the access and transfer of knowledge.
    • Embedding – organisational effectiveness through incorporation of knowledge into organisational processes
  • 33. Points to Ponder…
    • Knowledge based process management leads to improved capability and performance through three conversion processes:-
      • Improvement or change of form – manufacturing of goods
      • Care and counter effects of potential harm – crowd control
      • Transfer or change of place – transport and telecomunications
  • 34. Points to Ponder…
    • The knowledge model addresses customer knowledge with an holistic approach to gain understanding of the needs, condition and expectations of the customer.
    • The knowledge equivalent of material supply chain is the basis of a model applicable to variety of operational processes in manufacturing, public administration and consultancy.
  • 35. Points to Ponder…
    • Knowledge processes are supported by information and communication technology in 4 areas;
      • Databases
      • Decision support tools – Artificial Intelligence
      • Group ware – Email, Video Conferencing
      • Net technology – Intranets
  • 36. Points to Ponder…
    • Application of KM in operations to assess KPIs:
      • Quality, dependability, responsiveness and speed of delivery system
      • Flexibility of operational processes
      • Cost reduction
    • Issues addressed by KM:
      • Increasing market turbulence
      • Reduced tolerance for trade offs in performance
      • Network organisations
  • 37. Points to Ponder…
    • Knowledge processes require effective collaboration, used as source of competitive advantage and forces constant examination of operational processes
    • KM introduces new measures of customer service and efficiency by allowing managers to reduce the effects of difficult processes and achieve operational success
  • 38. Points to Ponder…
    • KM assists in the planning and control of achieving performance excellence and enables improvements to operational processes.
  • 39. KNOWLEDGE OUTSOURCING Prepare By Eu Wee Khai
  • 40. Knowledge Outsourcing
    • Knowledge Management ( KM )
      • how organizations capture knowledge from experts with the organization, and formalise and package knowledge assets for dissemination and reuse by other employees ( Markus 2001 )
    • Knowledge Outsourcing ( KO )
      • The external experts are clearly contracted to generate knowledge-intensive assets which are subsequently internalized by the organization.
  • 41. Outsourcing Concept
    • Information systems where there has already been significant study in outsourcing as starting point to conceptualize to KO.
    • Is a business transaction which involves contracting or selling an organisation’s IT assets., people and activities to a third party supplier. ( Kern 1997 )