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Knowledge Management.Introduction:Knowledge Management is one of the hottest topics today in both the industry worldand in...
Knowledge Management.Knowledge Management may be viewed in terms of:       People – how do you increase the ability of an ...
Knowledge Management.            electronic publishing technology, hypertext, and the World Wide Web;              help-d...
Knowledge Management.              Knowledge-Creating Company: How Japanese Companies Create the              Dynamics of ...
Knowledge Management.       Knowledge Management TodayAccording to a recent IDC report, knowledge management is in a state...
Knowledge Management.       E-Learning: As the economy becomes more global and the use of PCs more       pervasive, there ...
Knowledge Management.   efficiency gains resulting from knowledge management in terms of return on   investment.       Com...
Knowledge Management.   1. Knowledge is acquired or captured using intranets, extranets, groupware, web       conferencing...
Knowledge Management.The Effect of Knowledge Management on DatabasesMultiple corporate databases will merge into large, in...
Knowledge Management.       equally more complex. Both knowledge base developers and administrators       must understand ...
Knowledge Management.Why organizations launch their KM programs?   Source: IDC 1999 Knowledge management survey.          ...
Knowledge Management.       KNOWLEDGE MANAGEMNT HIERARCHY                                           WISDOM                ...
Knowledge Management.DATA:Data are unorganized and crude facts. They are stationary; they just sit there. For example, joh...
Knowledge Management.“direct business”modle. In 1992, direct sale accounted for only 15 percent of PC sale, but by1998 thi...
Knowledge Management.Conclusion:  Organizations are realizing that intellectual capital or corporate knowledge is a valuab...
Knowledge Management.Bibliography:1. Knowledge management- Sudhir Warier.2. Knowledge management- Elias M, Pearson Educati...
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What is knowledge management

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  1. 1. Knowledge Management.Introduction:Knowledge Management is one of the hottest topics today in both the industry worldand information research world. In our daily life, we deal with huge amount of data andinformation. Data and information is not knowledge until we know how to dig the valueout of of it. This is the reason we need knowledge management. Unfortunately, theresno universal definition of knowledge management, just as theres no agreement as towhat constitutes knowledge in the first place. We chose the following definition forknowledge management for its simplicity and broad context.Simple Definition:Knowledge Management (KM) refers to a multi-disciplined approach to achievingorganizational objectives by making the best use of knowledge. KM focuses onprocesses such as acquiring, creating and sharing knowledge and the cultural andtechnical foundations that support them.Knowledge management: Know L Edge Be aware of Learn A slight advantage Be familiar over something. with Be acquainted To be informed to with gain knowledge to be skillful.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 1
  2. 2. Knowledge Management.Knowledge Management may be viewed in terms of: People – how do you increase the ability of an individual in the organization to influence others with their knowledge? Processes – Its approach varies from organization to organization. There is no limit on the number of processes Technology – It needs to be chosen only after all the requirements of a knowledge management initiative have been established. Or Culture –The biggest enabler of successful knowledge-driven organizations is the establishment of a knowledge-focused culture Structure – the business processes and organizational structures that facilitate knowledge sharing Technology – a crucial enabler rather than the solution.What Is Knowledge Management Related To?Knowledge management draws from a wide range of disciplines and technologies:  Cognitive science  Expert systems, artificial intelligence and knowledge base management systems (KBMS)  Computer-supported collaborative work (groupware)  Library and information science  Technical writing  Document management  Decision support systems  Semantic networks  Relational and object databases  Simulation  Organizational science  object-oriented information modelingP G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 2
  3. 3. Knowledge Management.  electronic publishing technology, hypertext, and the World Wide Web; help-desk technology  full-text search and retrieval  performance support systemsAlthough around 20 kinds of disciplines and study areas were listed above, there is noway to include all of the related subjects to knowledge management.The History of Knowledge Management1. 70s, A number of management theorists have contributed to the evolution of knowledge management  Peter Drucker: information and knowledge as organizational resources  Peter Senge: "learning organization"  Leonard-Barton: well-known case study of "Chaparral Steel ", a company having knowledge management strategy2. 80s,  Knowledge (and its expression in professional competence) as a competitive asset was apparent  Managing knowledge that relied on work done in artificial intelligence and expert systems  Knowledge management-related articles began appearing in journals and books3. 90s until now,  A number of management consulting firms had begun in-house knowledge management programs  Knowledge management was introduced in the popular press, the most widely read work to date is Ikujiro Nonaka’s and Hirotaka Takeuchi’s TheP G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 3
  4. 4. Knowledge Management. Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation (1995)  The International Knowledge Management Network(IKMN) went online in 1994  Knowledge management has become big business for such major international consulting firms as Ernst & Young, Arthur Andersen, and Booz-Allen & Hamilton The Value of Knowledge ManagementSome benefits of KM correlate directly to bottom-line savings, while others are moredifficult to quantify. In todays information-driven economy, companies uncover the mostopportunities — and ultimately derive the most value — from intellectual rather thanphysical assets. To get the most value from a companys intellectual assets, KMpractitioners maintain that knowledge must be shared and serve as the foundation forcollaboration. Yet better collaboration is not an end in itself; without an overarchingbusiness context, KM is meaningless at best and harmful at worst. Consequently, aneffective KM program should help a company do one or more of the following:  Foster innovation by encouraging the free flow of ideas  Improve decision making  Improve customer service by streamlining response time  Boost revenues by getting products and services to market faster  Enhance employee retention rates by recognizing the value of employees knowledge and rewarding them for it  Streamline operations and reduce costs by eliminating redundant or unnecessary processesThese are the most prevalent examples. A creative approach to KM can result inimproved efficiency, higher productivity and increased revenues in practically anybusiness function.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 4
  5. 5. Knowledge Management. Knowledge Management TodayAccording to a recent IDC report, knowledge management is in a state of high growth,especially among the business and legal services industries. As the performancemetrics of early adopters are documenting the substantial benefits of knowledgemanagement, more organizations are recognizing the value of leveraging organizationalknowledge. As a result, knowledge management consulting services and technologiesare in high demand, and knowledge management software is rapidly evolving. Knowledge Management DriversThe main drivers behind knowledge management efforts are:  Knowledge Attrition: Despite the economic slowdown, voluntary employee turnover remains high. A recent survey by the global consulting firm Drake Beam Morin revealed an average voluntary employee turnover rate of 20 percent with 81 percent of organizations citing employee turnover as a critical issue. An estimated annual cost of employee turnover was a staggering $129 million per organization. Much of this cost is due to knowledge attrition, which can be effectively minimized using knowledge management techniques.  Knowledge Merging: Since 1980, the annual value of mergers has rised 100 fold reaching a cumulative $15 trillion in 1999. Over 32,000 deals were announced; triple the number of 10 years earlier and more than 30 times as many as in 1981. The recent frenzy of corporate mergers coupled with the increased need to integrate global corporate communications requires the merging of disparate and often conflicting knowledge models.  Content Management: The explosion of digitally stored business-critical data is widely documented. Forester Research estimates that online storage for Global 2,500 companies will grow from an average of 15,000 gigabytes per company in 1999 to 153,000 gigabytes by 2003, representing a compound annual growth rate of 78%. As the volume of digital information expands, the need for its logical organization is critical for purposes of information retrieval, sharing and reuse.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 5
  6. 6. Knowledge Management. E-Learning: As the economy becomes more global and the use of PCs more pervasive, there has been a dramatic increase in e-learning, also known as computer based training. E-learning is closely linked to an overlapping with, but not equal to knowledge management. E-learning can be an effective medium for knowledge management deliverables. KM ObjectivesThe graph below shows the results of a recent IDC study in which corporations citedvarious objectives for knowledge management efforts: Activities related to these objectives include: creating knowledge sharing networks that facilitate a corporate knowledge culture, developing knowledge leaders, optimizing intellectual capital by producing knowledge management solutions such as codification strategies and knowledge bases, and estimating revenue andP G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 6
  7. 7. Knowledge Management. efficiency gains resulting from knowledge management in terms of return on investment. Components of knowledge management: organisation component Technolog Componen Knowledge t management Technologies That Support Knowledge Management The following diagram reflects the main technologies that currently support knowledge management systems.These technologies roughly correlate to four main stages of the KM life cycle:P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 7
  8. 8. Knowledge Management. 1. Knowledge is acquired or captured using intranets, extranets, groupware, web conferencing, and document management systems. 2. An organizational memory is formed by refining, organizing, and storing knowledge using structured repositories such as data warehouses. 3. Knowledge is distributed through education, training programs, automated knowledge based systems, expert networks. 4. Knowledge is applied or leveraged for further learning and innovation via mining of the organizational memory and the application of expert systems such as decision support systems. All of these stages are enhanced by effective workflow and project management. Present and Future State of KM Currently, communities of practice such as the Knowledge Management Network and the development of standards and best practices are in a mature stage of development. KM curricula such as certification, corporate training and university graduate certificate programs are on the rise. Techniques such as data mining and text mining that use KM for competitive intelligence and innovation are in the early stages of development. Finally, organizations are investing heavily in ad hoc KM software that facilitates organizational knowledge. The chart below estimates the state of their current and future KM activities.The Future of Knowledge ManagementIn the next several years ad-hoc software will develop into comprehensive, knowledgeaware enterprise management systems. KM and E-learning will converge intoknowledge collaboration portals that will efficiently transfer knowledge in aninterdisciplinary and cross functional environment. Information systems will evolve intoartificial intelligence systems that use intelligent agents to customize and filter relevantinformation. New methods and tools will be developed for KM driven E-intelligence andinnovation.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 8
  9. 9. Knowledge Management.The Effect of Knowledge Management on DatabasesMultiple corporate databases will merge into large, integrated, multidimensionalknowledge bases that are designed to support competitive intelligence andorganizational memory. These centralized knowledge repositories will optimizeinformation collection, organization, and retrieval. They will offer knowledge enrichingfeatures that support the seamless interoperability and flow of information andknowledge. These features may include: the incorporation of video and audio clips, linksto external authoritative sources, content qualifiers in the form of source or referencemetadata, and annotation capabilities to capture tacit knowledge. Content will be in theform of small reusable learning objects and associated metadata that providescontextual information to assist KM reasoning and delivery systems.The Implications of Knowledge Management for...  Database Users: From business class users to the general public, database users will enjoy a new level of interaction with the KM system including just-in- time knowledge that delivers precise relevant information on demand and in context. More complex, smart systems will translate to optimal usability and less time spent searching for relevant information. For example, data analysts will enjoy simplified access and more powerful tools for data exploitation. The use of knowledge bases can reduce customer service costs by providing customers with easy access to 24/7 self service via smart systems that reduce the need to contact customer service or technical support staff. Database users may even create customized views of knowledge bases that support their needs.  Database Developers: The design and development of knowledge based systems will be considerably more complex than current database development methods. Developers must consider the overall technical architecture of the corporation to ensure seamless interoperability. The use of standardized metadata and methods will also facilitate both intra-corporate and inter-corporate interoperability. Making effective physical storage and platform choices will beP G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 9
  10. 10. Knowledge Management. equally more complex. Both knowledge base developers and administrators must understand the role of the knowledge base in the overall KM system.  Database Administrators: Database Administrators will evolve into Knowledge Managers. The knowledge base will store and maintain corporate memory and Knowledge Managers will become the gatekeepers of corporate knowledge. The lines between technical roles such as Web Developer, Data Analyst or Systems Administrator will blur as these systems merge into and overlap with KM systems. DBAs will need to have some knowledge about each of these disciplines.  General Public: Even if they are not interacting directly with a knowledge base, the general public will benefit from the secondary effects of improved customer service due to faster access to more accurate information by service providers. Need for knowledge management: Knowledge management underlines a growing structure of ideas, Techniques and technologies. Fortune 500 companies loose close to 12 billion dollars annually due poorly managed KM. With this background the need of KM become ever more pressing. However, skepticism that surrounds knowledge management is not surprising given the fact that is seem like just another craze, and one that can be, extremely expensive to follow. But for multinational companies on the global stage and the new entrants on the global stage, the demand of speed and distance make easy available information inevitable, with company remaining local and domestic both in old age economy traditional industrial sectors, the demand may be less pressing for now.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 10
  11. 11. Knowledge Management.Why organizations launch their KM programs? Source: IDC 1999 Knowledge management survey. Increase profit of Revenue 67% Retain key and expertise 54% Improve customer retention and 52% satisfaction Defend market share against new entrant 44% Accelerate time to market with product 39% Penetrate new market segments 39% Reduce costs 38% Develop new products and services 35% 0.8 0.7 0.6 0.5 0.4 0.3 Series6 0.2 Series5 0.1 0 Series4 Series3 Series2 Series1P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 11
  12. 12. Knowledge Management. KNOWLEDGE MANAGEMNT HIERARCHY WISDOM KNOWLEDGE INFORMANTION DATAWisdom:Wisdom is a condition of the human mind typified by deep understanding and deep insight. It isoften accompanied by widespread formal knowledge. Uneducated people can acquire wisdom,and wise people can be found among the ordinary class of the people. Where ever it exists,wisdom reveals itself as a perception of the relativity and relationships among things.KNOWLEDGE:Knowledge is processed information. Knowledge is fluid mix of framed experience, values,contextual information, expert insight, and intuition.INFORMANTION:Information is collected of the data that make decision making easier. It is also facts and figuresbased on reformatted or processed data. For example, a profit and loss statement providesinformation. It is a collective fact put into a form that shows an organization’s state of heathover a period of time.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 12
  13. 13. Knowledge Management.DATA:Data are unorganized and crude facts. They are stationary; they just sit there. For example, johnis 6 feet tall. This is Data; It does not necessarily lead one anywhere, however, the meaning onebring to the evaluation of this data could be important. Such an assessment may indicate thatjohn’s height would make him an asset to the basket ball team. This becomes information.NEED FOR KNOWLEDGE MANAGEMENT:Knowledge management underlines a growing structure of ideas, techniques and technologies.Fortune 500 companies loose close to 12 billion dollar annually due to poorly managed KM.With this background the need of KM becomes even more pressing, however, skepticism thesurrounds knowledge management is not surprising giving the fact that it seems like justanother craze and one that can be, extremely expensive to follow. But for multinationalcompanies on the global stage and the new entrants on the global stage, the demand of speedand distance make easily available information inevitable, while companies remaining local anddomestic both in the old age economy and traditional industrial sectors, they may be lesspressing for now.The survival and success of business in the ever increasing competitive market place dependssignificantly on the quality of knowledge, which those organizations apply to their businessprocesses. For example, the supply chain depends on knowledge of diverse area including rawmaterial, planning, manufacturing and distribution. Likewise product development requiresknowledge of customer requirements, new science, and new technology marketing.etc.Case Study:Dell Computer Corporation is a leading direct computer system company. In the United States,Dell ranks number one and is a premier supplier, of PCs to business customer, governmentagencies, educational institutions, and customers. Dell’s success has come from focusing ondirect sales, While other companies ignore this channel, Michael Dell formed the company in1984 the Dollar 1000 of starting capital and venture capital forming what he refer to as theP G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 13
  14. 14. Knowledge Management.“direct business”modle. In 1992, direct sale accounted for only 15 percent of PC sale, but by1998 this sale method accounted for one –third of PC sales. Dell’s PCs are build to order, andare enhanced by the knowledge the company gains from direct sale made in the past.Dell has been able to succeed because it strives for quicker operation and lower overhead. Dellkeeps inventory cost low by turning inventory over every seven days on average and can turn-sales into cash in 24 hours compare to Compaq’sAverage of 35 days. Dell is still improving its operations. The company has reduce the numberof parts in a PC from 204-to 47 and has been working on speeding up delivery of these parts,moving selected distribution center from Malaysia to Mexico.However, all of these achievements pale in comparison to Dell’s use of these internets. Dellbegan selling PCs from the site www.dell.com in 1996 and recording daily sales over theinternet of dollar 50 million per day just 4 years later. The company set a goal in 1997 to have50 percent of sale be over the internet, and reached that goal by the end of the first quarter of2000. This is an increase from dollar 30 million per day over the past year.However, Michael Dell does not see sale as the only value of the internet. Direct contact withcustomers over the internet helps keep inventory cost down and gives the company acompetitive advantage. By having extensive knowledge of what the customer wants, money isnot wasted on un purchased inventory, crucial in the customer software industry whereinventory value decreases about 1 percent per week. These saving allow Dell to sell theircomputers at 10 to 15 percent less than their rivals.Dell’s direct sales method has translated to success in the computer industry on and off-line.Question for Discussions: 1. how has Dell leverage knowledge and the new economic order to succeed? 2. What must the management of Dell do to continue its success? 3. How will their management of knowledge assets come into play?P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 14
  15. 15. Knowledge Management.Conclusion: Organizations are realizing that intellectual capital or corporate knowledge is a valuableasset that can be managed as effectively as physical assets in order to improve performance.The focus of knowledge management is connecting people, processes and technology for thepurpose of leveraging corporate knowledge. The database professionals of today are theKnowledge Managers of the future, and they will play an integral role in making theseconnections possible.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 15
  16. 16. Knowledge Management.Bibliography:1. Knowledge management- Sudhir Warier.2. Knowledge management- Elias M, Pearson Education.3. http//:km/Introduction%20to%20Knowledge%20Management.htm.4. http//:New%knowledgemanagement/20%/The%20Business%20Cycle%20Phases.htm.P G Department of Management Studies and Research Center., PESITM, Shivamogga. Page 16

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