Overview of Knowledge Management

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Knowledge Management is the one imperative that holds the key to creating, sustaining and tapping competitive advantage as well as to nurture Innovation and create a 'desired future.' The presentation covers both theoretical as well as empirical aspects of the topic. Knowledge Strategy and the various strategic options available to an organization are highlighted. The presentation wounds up with caveats, success ingredients and inherent risk factors of KM.

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Overview of Knowledge Management

  1. 1. KNOWLEDGE MANAGEMENTTRIMESTER 6: PGDM 2011-13ByFIRDAUS KHANAssoc. Professor (Finance & Corp. Training)ICBM-SBE, AP, Indiafirdaus@icbm.ac.in4/30/2013
  2. 2. Data Overload?Or Knowledge Revolution?• Every day, we create 2.5 quintillion bytesof data — so much that 90% of the data inthe world today has been created in thelast two years alone!• 1.8 zettabytes is being created & replicatedthis year alone. It would require 57.5billion 32 GB iPads to store & will beworth about $34.4 trillion - equivalent tothe GDP of USA, Japan, China, Germany,France, UK & Italy combined!!firdaus@icbm.ac.in
  3. 3. firdaus@icbm.ac.inKnowledge Shared = (Knowledge)2
  4. 4. HOW HAS THE MODERN WORKENVIRONMENT CHANGED?firdaus@icbm.ac.in
  5. 5. Traditional Work• Data oriented• Internal• Centralized• Hierarchy• Structured,deterministic• 1 position, 1 person• Fixed work station• Things• Coordination ofaccess, integrity &control ofredundancyKnowledge Work• Communication oriented• Cooperation, Coopetition,Networks• Decentralized• Network• Unstructured, ad-hocworkflows• Multiple roles per person• Mobile, virtual, multipleworkstations,telecommuting• Flows• Synchronization, infosharing, search &retrievalfirdaus@icbm.ac.inCriteria• Orientation• Focus• Command• Structure• Process• Role• Workspace• Location ofvalue• DataHandling
  6. 6. DIMENSIONS OF KNOWLEDGE WORKfirdaus@icbm.ac.in
  7. 7. DATAvs.INFORMATIONvs.KNOWLEDGEfirdaus@icbm.ac.in
  8. 8. Data, Information & Knowledge• Data refers to facts, which have not beenstructured & have not been interpreted,therefore have no meaning.• Information is relevant, structured andmeaningful data. There is a sender & areceiver. It can be stored on media such aspaper, computer, audio tape, etc.• Knowledge is factual information acquiredthrough personal experience. It has a purpose& intent but is emergent & sociallyconstructed. It exists only in people’s heads.firdaus@icbm.ac.in
  9. 9. FROM DATA TO WISDOMWisdomKnowledgeInformationDatafirdaus@icbm.ac.inMEANINGCONTEXTINSIGHT
  10. 10. TYPES OF KNOWLEDGETACIT KNOWLEDGEEXPLICIT KNOWLEDGEEMBRAINED KNOWLEDGEEMBODIED KNOWLEDGEENCULTURED KNOWLEDGEEMBEDDED KNOWLEDGEENCODED KNOWLEDGEfirdaus@icbm.ac.in
  11. 11. firdaus@icbm.ac.in
  12. 12. firdaus@icbm.ac.in
  13. 13. KM DRIVERSKMFragmentationof KnowledgeNeed forSpeed –Cycle TimeReductionKnowledgeAttritionGlobalization& KnowledgeMergingContentManagementE-Learningfirdaus@icbm.ac.in
  14. 14. KM IS INTER-DISCIPLINARY• Cognitive science• Relational and object databases,• Expert systems, Artificial Intelligence,• Computer-supported collaborative work (groupware),object-oriented information modeling• Library and information science• Technical writing, Document management• Decision support systems, Simulation• Semantic networks• Organizational science, performance support systems• Electronic publishing technology, hypertext, internetfirdaus@icbm.ac.in
  15. 15. KNOWLEDGE MANAGEMENT• Knowledge Management can be defined as asystematic process that creates, captures, shares,and analyzes knowledge in ways that directlyimprove organizational performance.• It comprises a range of strategies and practicesused in an organization to identify, create,represent, distribute, and enable the adoptionof insights and experiences.• It is the ability to get the right information to theright people at the right time, and in the rightplace, so that an organization can be operatedsmoothly and efficiently.firdaus@icbm.ac.in
  16. 16. COMPONENTS OF KM CYCLEfirdaus@icbm.ac.in
  17. 17. KM TECHNOLOGIESfirdaus@icbm.ac.in
  18. 18. KM LIFE CYCLE• Knowledge is acquired or captured using intranets,extranets, groupware, web conferencing, anddocument management systems.• An organizational memory is formed by refining,organizing, and storing knowledge usingstructured repositories such as data warehouses.• Knowledge is distributed through education,training programs, automated knowledge basedsystems, expert networks.• Knowledge is applied or leveraged for furtherlearning and innovation via mining of theorganizational memory and the application ofexpert systems such as decision support systems.firdaus@icbm.ac.in
  19. 19. TOOLS USED IN EACH PHASE OF KMfirdaus@icbm.ac.in
  20. 20. OUTCOMES OF KM• Foster innovation and organizational learning byencouraging the free flow of ideas• Improve decision making• Improve customer service by streamliningresponse time• Boost revenues by getting products and services tomarket faster• Enhance employee retention rates by recognizingthe value of employees knowledge and rewardingthem for it• Streamline operations and reduce costs byeliminating redundant or unnecessary processesfirdaus@icbm.ac.in
  21. 21. OUTCOMES OF KM (contd.)• Achieving shorter new product development cycles• Leveraging the expertise of people across theorganization• Increasing network connectivity between internaland external individuals• Managing business environments and allowingemployees to obtain relevant insightsand ideas appropriate to their work• Managing intellectual capital and intellectualassets in the workforce (such as the expertise andknow-how possessed by key individuals)firdaus@icbm.ac.in
  22. 22. KM IN PRACTICE• Large revenue gains & efficiency improvementshave been recorded by many major companies.• Ford Motor Company accelerated its concept-to-production time from 36 months to 24months.• Dow Chemical Company saved $40 million ayear in the re-use of patents.• Chase Manhattan Bank used CRM KMinitiatives to increase its annual revenue by 15%• Pfizer credits KM practices for discovering thehidden benefits of the Viagra drug.firdaus@icbm.ac.in
  23. 23. CAN KNOWLEDGECREATECOMPETITIVE ADVANTAGE?firdaus@icbm.ac.in
  24. 24. “An organization’s capacity toimprove existing skills and learnnew ones is the most defensiblecompetitive advantage of all.”- C.K. Prahladfirdaus@icbm.ac.in
  25. 25. firdaus@icbm.ac.in
  26. 26. KNOWLEDGE STRATEGYfirdaus@icbm.ac.inA Knowledge Strategy refers to theplanned balancing of an organization’sknowledge resources & capabilities withthe knowledge required for providingproducts and services superior to those ofits competitors.– (Zack 1999b,131)
  27. 27. WHAT STRATEGIC OPTIONSDOES A FIRM HAVE IN TERMSOF A KNOWLEDGE STRATEGY?firdaus@icbm.ac.in
  28. 28. Key Aspects of a Knowledge Strategy• Which business areas should be the focus?• Which type of knowledge should becaptured?• Who is the target group?• Which business process will the knowledgestrategy be applied to?• Will the orientation be more human ortechnological?firdaus@icbm.ac.in
  29. 29. KM Strategy Focusing On KeyBusiness AreasImproveorganization-widehandling ofknowledgeCRMR & DValue ChainMgt.GeographicalExpansionPost MergerIntegrationVirtualOrganizationfirdaus@icbm.ac.in
  30. 30. KM Strategy Based on Type ofKnowledgeDegree of Increase inKnowledge:Primary Source ofKnowledgeSpeed of LearningKnowledge BaseType of Knowledge toFocus onOrientation• Exploitation• Exploration• Internal• External• Fast• Slow• Broad• Narrow• Tacit• Explicit• Human• Technologicalfirdaus@icbm.ac.in
  31. 31. KM Strategy Based On TargetGroupEmployeeRankEmployeeManagerExecutiveEmployee LifeCycleNew recruitsRetirees“To-be-Promoted”TypesOrganizationalScopeCore GroupOrganizationOrganization& PartnersUnlimitedfirdaus@icbm.ac.in
  32. 32. KM Strategy Based on BusinessProcessWhichbusinessprocessto target?Simple vs.HighlyComplexProcessesMgt. vs.Core vs.ServiceProcesses Oneprocess vs.Few vs. Allprocessesfirdaus@icbm.ac.in
  33. 33. firdaus@icbm.ac.in
  34. 34. firdaus@icbm.ac.inEMPIRICAL ASPECTS -Strategic KM InitiativesUndertaken by Organizations
  35. 35. firdaus@icbm.ac.in• Expert Directories• Skill Databases• Yellow Pages based on Knowledge AreasMap Sources ofInternal Expertise• Separate Unit headed by CKO• Roles for Knowledge related tasks• (K. Broker/Engineer, Subject Matter Expert)Establish NewKnowledge Roles• Greater number of mobile workers• Disrupted social connections in a workcommunityCreate a VirtualWorkEnvironment• People working on same problem areas• People having complementary knowledgeCreate Networks ofKnowledgeWorkers• Balancing Push & Pull of Knowledge• Connect seekers & providers of KnowledgeSupportknowledge FlowsIn an Organization
  36. 36. firdaus@icbm.ac.in• Making Knowledge available at points of action• Spread the good word to as many in the networkTransfer ofKnowledge &Best Practices• Pull approach, not push. No micro-managing• Each responsible for renewing & sharing ownknowledge assetsPersonalResponsibility forKnowledge• Capture knowledge about customers• Provide customer-centric solutions, increasecustomer loyaltyCustomerFocusedKnowledge• Basic & Applied R&D• Employee Motivation & Insights for InnovationInnovation &KnowledgeCreation• Enterprise level management of patents,technology, practices, etc• Valuating, safekeeping, marketing of K. assetsIntellectual AssetManagementStrategy
  37. 37. OPERATIONAL RISKS IN A KNOWLEDGE STR.DEPENDENCY LIMITED QUALITYINSUFFICIENTKNOWLEDGE TRANSFERLOSS OF KNOWLEDGEASSETSKNOWLEDGERISKSfirdaus@icbm.ac.in
  38. 38. Barriers to a Knowledge Strategy• Lack of motivation, ignorance or skilledincompetence of knowledge provider• Lack of motivation or insufficientlearning/retentive capacity or role –constrained learning by knowledge seeker• Insufficient context or ambiguity ofcausality of transferred knowledge• Infrastructural and cultural inadequaciesor hindrancesfirdaus@icbm.ac.in
  39. 39. Factors Essential for the Successof a Knowledge Strategy• Holistic, integrated & standardized approach• Knowledge Oriented Culture• Management support• Clear economic benefits• Exact vision & language• Effective aids for motivation• Appropriate process orientation• ICT & organizational infrastructure• Stable knowledge structures• Continuous participation of employeesfirdaus@icbm.ac.in
  40. 40. “Knowledge has to be improved, challenged,and increased constantly, or it vanishes.”– Peter Druckerfirdaus@icbm.ac.in
  41. 41. Sources• http://www.unc.edu/~sunnyliu/inls258/Introduction_to_Knowledge_Management.html• Knowledge Management Systems - RonaldMaier (3rd Edition, Springer)• Mashable.comfirdaus@icbm.ac.in

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