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Knowledge Management: A Value-Chain Approach Albert Simard presented to Interdepartmental Knowledge Management Forum Octob...
An opening thought… <ul><li>An era in which the key economic resource is knowledge is startlingly different from an era in...
OUTLINE <ul><li>Knowledge Assets </li></ul><ul><li>Knowledge Value </li></ul><ul><li>Knowledge Management </li></ul>Knowle...
Knowledge Attributes <ul><li>Total knowledge is increasing; half-life is decreasing </li></ul><ul><li>Knowledge can be in ...
Knowledge Costs <ul><li>Production cost is independent of the number of users </li></ul><ul><li>Reproduction is controlled...
Explicit Knowledge <ul><li>Knowledge that has been formally expressed and transferred in a tangible form; intellectual pro...
531 assets; 211 responses
Tacit Knowledge <ul><li>Intangible personal knowledge gained through experience and self-learning.  It is influenced by be...
Intellectual Capital “ Intellectual capital is intellectual material … that can be put to use to create wealth.” Thomas St...
OUTLINE <ul><li>Knowledge Assets </li></ul><ul><li>Knowledge value </li></ul><ul><li>Knowledge Management </li></ul>If you...
Knowledge Value <ul><li>Value is very difficult to measure </li></ul><ul><li>Value is extracted when knowledge is used </l...
Knowledge Value Chains <ul><li>Flow of knowledge through a sequence of processes in which it’s value is increased at each ...
Knowledge Creation Value Chain Knowledge creation is a precursor to everything else Information Management Decision-making...
Creating Knowledge is not Enough <ul><li>Bell Labs:  lasers </li></ul><ul><li>Xerox:  graphical user interface, object-ori...
Knowledge  Use Value Chain The value of knowledge is realized only when it is used for something Individual  Opinion Compi...
Plant Hardiness Zones   Knowledge for Canadians (climate + elevation)
Knowledge for Practitioners Fire Monitoring, Mapping, and Modeling System
OUTLINE <ul><li>Knowledge Value </li></ul><ul><li>Knowledge Assets </li></ul><ul><li>Knowledge Management </li></ul>KM add...
Knowledge Management Value Chain Higher-level KM goals generally have decreasing ranges of applicability   Network Manager...
Knowledge Management: Linking Past, Present, & Future Capture   Archive Share Integrate Learn Adapt Past Present Future In...
Knowledge Management: A Definition Developing organizational capacity and processes to capture, preserve, share, and integ...
Knowledge  Preservation Value Chain Preservation is the foundation of knowledge management Capture  Maintain Organize Retr...
Briefing Note Database
Organizing Knowledge Assets <ul><li>Epistemology </li></ul><ul><li>Cognitive approaches </li></ul><ul><li>Automated method...
Storing Knowledge Assets <ul><li>Information Technology infrastructure </li></ul><ul><li>Systems for archiving and managin...
Retrieving Knowledge Assets <ul><li>Access to content </li></ul><ul><li>Browser interface </li></ul><ul><li>Search engine ...
Knowledge Sharing Value Chain The value of a network is proportional to the square of the number of users conversation let...
Sharing Knowledge: Methods <ul><li>Conversations, discussions, dialogue  </li></ul><ul><li>Advice, briefings, recommendati...
Sharing Knowledge: Technology <ul><li>Talking (real, virtual) </li></ul><ul><li>E-mail (individuals, list servers, distrib...
Knowledge Integration Value Chain The whole is more than the sum of it’s parts Coordinator Analyst Creator Synthesizer Iso...
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 - ...
“ Products are physical manifestations of knowledge, and their worth largely, if not entirely, depends on the value of the...
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Knowledge Management Value Chains

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Describes Knowledge creation, management, preservation, sharing, integration, and use from a value-chain perspective (2004)

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Knowledge Management Value Chains

  1. 1. Knowledge Management: A Value-Chain Approach Albert Simard presented to Interdepartmental Knowledge Management Forum October 27, 2004
  2. 2. An opening thought… <ul><li>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. </li></ul><ul><li>James Martin </li></ul><ul><li>CYBERCORP (1996) </li></ul>
  3. 3. OUTLINE <ul><li>Knowledge Assets </li></ul><ul><li>Knowledge Value </li></ul><ul><li>Knowledge Management </li></ul>Knowledge is different from industrial resources
  4. 4. Knowledge Attributes <ul><li>Total knowledge is increasing; half-life is decreasing </li></ul><ul><li>Knowledge can be in more than one place at one time </li></ul><ul><li>Knowledge may be permanent or time sensitive </li></ul><ul><li>Knowledge can be used without being consumed </li></ul><ul><li>Selling does not reduce supply nor ability to sell again </li></ul><ul><li>Buyers only purchase knowledge once </li></ul><ul><li>Once disseminated, knowledge cannot be recalled </li></ul>Thomas Stewart (1997)
  5. 5. Knowledge Costs <ul><li>Production cost is independent of the number of users </li></ul><ul><li>Reproduction is controlled by users, not producers </li></ul><ul><li>Production cost greatly exceeds reproduction cost </li></ul><ul><li>Costs accumulate at the front-end of production </li></ul><ul><li>The more intangible, the greater the cost discrepancy </li></ul><ul><li>Inputs and outputs for creative work are uncorrelated </li></ul>Thomas Stewart (1997)
  6. 6. Explicit Knowledge <ul><li>Knowledge that has been formally expressed and transferred in a tangible form; intellectual property. </li></ul><ul><ul><li>databases, statistics, collections </li></ul></ul><ul><ul><li>books, publications, reports, documents, correspondence </li></ul></ul><ul><ul><li>photographs, diagrams, illustrations </li></ul></ul><ul><ul><li>computer code, expert systems, decision-support systems </li></ul></ul><ul><ul><li>presentations, speeches, lectures </li></ul></ul><ul><ul><li>recorded experiences, stories </li></ul></ul><ul><ul><li>materials for education, teaching, and training </li></ul></ul><ul><ul><li>laws, regulations, procedures, rules, policies </li></ul></ul><ul><ul><li>embedded into products </li></ul></ul>
  7. 7. 531 assets; 211 responses
  8. 8. Tacit Knowledge <ul><li>Intangible personal knowledge gained through experience and self-learning. It is influenced by beliefs, perspectives, and values. </li></ul><ul><ul><li>awareness </li></ul></ul><ul><ul><li>skills </li></ul></ul><ul><ul><li>mental models </li></ul></ul><ul><ul><li>expertise </li></ul></ul><ul><ul><li>judgement </li></ul></ul><ul><ul><li>wisdom </li></ul></ul><ul><ul><li>corporate memory </li></ul></ul>The Thinker - Rodin
  9. 9. 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)
  10. 10. OUTLINE <ul><li>Knowledge Assets </li></ul><ul><li>Knowledge value </li></ul><ul><li>Knowledge Management </li></ul>If you can’t measure it, you can’t manage it.
  11. 11. Knowledge Value <ul><li>Value is very difficult to measure </li></ul><ul><li>Value is extracted when knowledge is used </li></ul><ul><li>Sharing increases the value of knowledge </li></ul><ul><li>Value increases with abundance </li></ul><ul><li>Buyer cannot judge value in advance </li></ul><ul><li>Value can be added by filtering knowledge </li></ul><ul><li>Value is not well related to acquisition cost </li></ul>Thomas Stewart (1997)
  12. 12. Knowledge Value Chains <ul><li>Flow of knowledge through a sequence of processes in which it’s value is increased at each stage. </li></ul><ul><ul><li>Creation </li></ul></ul><ul><ul><li>Use </li></ul></ul><ul><ul><li>Management </li></ul></ul><ul><ul><ul><li>Preservation </li></ul></ul></ul><ul><ul><ul><li>Sharing </li></ul></ul></ul><ul><ul><ul><li>Integration </li></ul></ul></ul>
  13. 13. 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
  14. 14. Creating Knowledge is not Enough <ul><li>Bell Labs: lasers </li></ul><ul><li>Xerox: graphical user interface, object-oriented programming, laser printer, Ethernet </li></ul><ul><li>IBM, DEC: mainframe/mini computers </li></ul><ul><li>CERN: World-Wide Web </li></ul><ul><li>Encyclopaedia Britannica: synthesizing knowledge </li></ul>
  15. 15. 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
  16. 16. Plant Hardiness Zones Knowledge for Canadians (climate + elevation)
  17. 17. Knowledge for Practitioners Fire Monitoring, Mapping, and Modeling System
  18. 18. OUTLINE <ul><li>Knowledge Value </li></ul><ul><li>Knowledge Assets </li></ul><ul><li>Knowledge Management </li></ul>KM adds value by linking creation and use
  19. 19. 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
  20. 20. Knowledge Management: Linking Past, Present, & Future Capture Archive Share Integrate Learn Adapt Past Present Future Infrastructure Content Processes People
  21. 21. 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.
  22. 22. 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
  23. 23. Briefing Note Database
  24. 24. Organizing Knowledge Assets <ul><li>Epistemology </li></ul><ul><li>Cognitive approaches </li></ul><ul><li>Automated methods </li></ul><ul><li>Classification systems </li></ul><ul><li>Thesauri </li></ul><ul><li>Interdisciplinary issues </li></ul><ul><li>Linguistic issues </li></ul><ul><li>Metadata </li></ul><ul><li>Knowledge map </li></ul>Library of Alexandria – artist’s concept
  25. 25. Storing Knowledge Assets <ul><li>Information Technology infrastructure </li></ul><ul><li>Systems for archiving and managing content </li></ul><ul><li>Interface for entry and administration </li></ul><ul><li>Data warehouse, distributed databases </li></ul><ul><li>Information repository, records management </li></ul><ul><li>Knowledge repository, knowledge map </li></ul><ul><li>Digital libraries, traditional libraries </li></ul>
  26. 26. Retrieving Knowledge Assets <ul><li>Access to content </li></ul><ul><li>Browser interface </li></ul><ul><li>Search engine </li></ul><ul><li>Extraction tools </li></ul><ul><li>Manipulation tools </li></ul><ul><li>Assembly tools </li></ul><ul><li>Retrieval system </li></ul>Relativity - Escher
  27. 27. 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
  28. 28. Sharing Knowledge: Methods <ul><li>Conversations, discussions, dialogue </li></ul><ul><li>Advice, briefings, recommendations </li></ul><ul><li>Mentoring, teaching, examples </li></ul><ul><li>Questions & answers, knowledge extraction </li></ul><ul><li>Presentations, lectures, speeches, stories </li></ul><ul><li>Documents, books, manuals, instructions </li></ul><ul><li>Education, training, demonstration </li></ul><ul><li>Meetings, workshops, conferences, forums </li></ul><ul><li>Networks, communities of practice </li></ul>
  29. 29. Sharing Knowledge: Technology <ul><li>Talking (real, virtual) </li></ul><ul><li>E-mail (individuals, list servers, distribution lists) </li></ul><ul><li>Chat rooms, forums, discussion groups </li></ul><ul><li>Communities of interest, informal networks </li></ul><ul><li>Groupware (teams, working groups) </li></ul><ul><li>Conferences, workshops, knowledge fairs </li></ul><ul><li>Data bases, information bases, knowledge bases </li></ul><ul><li>Digital libraries (repositories, search, retrieval) </li></ul><ul><li>Information & knowledge markets </li></ul>
  30. 30. 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
  31. 31. Soils of Canada
  32. 32. Land Cover Natural Resources Canada Ressources naturelles Canada Canadian Forest Service Service canadien des for ê ts
  33. 33. Climate Change
  34. 34. 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
  35. 35. “ 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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