Effectiveness of knowledge management depends on how knowledge management process are aligned with an organizations infrastructure and processes that supports the achievement of organizations goals. To understand and represent relationships a simple list of elements and process is scanty, we need a holistic framework where all are integrated into a dynamic framework. The proposed framework is particularly focused on dividing the identified organizational building blocks into their constituent elements along both time and content dimensions to define characteristics of these elements, and it also define the relationships between the organizations to form a social ecology in which people effectively create share and use knowledge in business management. In this way, the developed framework can assist management to understand the true nature of the relationship that exist between an organization and knowledge management process, and exploit them for an organizations success.

1. ANAG THE DIGITAL FIRM
August 12, 2014
Prepared By:
Monzer AL-Shaikh Warak
Under supervision of Dr. Mamata Bhandar
Business Model Framework using Knowledge
Management
FINAL INTEGRATED PROJECT
Knowledge Management

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Contents
INTRODUCTION................................................................................................2
KNOWLEDGE MANAGEMENT...............................................................3
BUSINESS MODEL FRAMEWORK.........................................................4
CONCLUSION ...................................................................................................7
REFERENCES ...................................................................................................7

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Introduction
Effectiveness of knowledge management depends on how knowledge management process
are aligned with an organizations infrastructure and processes that supports the
achievement of organizations goals.
To understand and represent relationships a simple list of elements and process is scanty,
we need a holistic framework where all are integrated into a dynamic framework.
The proposed framework is particularly focused on dividing the identified organizational
building blocks into their constituent elements along both time and content dimensions to
define characteristics of these elements, and it also define the relationships between the
organizations to form a social ecology in which people effectively create share and use
knowledge in business management. In this way, the developed framework can assist
management to understand the true nature of the relationship that exist between an
organization and knowledge management process, and exploit them for an organizations
success.
Knowledge economy, knowledge and intellectual capital are now bases of a new source of
wealth for organizations in terms of social and economic development.
Now, Knowledge intensive organization is quickly and these organizations create and
develop their appropriate value in unique ways, and many organizations started to
implement knowledge management strategy as well as including technology innovation
strategy in order to acquire knowledge superiority, core competencies and promote own
competitive advantage and market position.
In order to survive in the present competitive and global business environment, most
organizations are struggling to change their existing processes into more active business
process. Knowledge intensive organizations need simple method of mapping competition
in order to identify the best opportunities, to testament a new business model and direct
growth of that business model.
The framework of this FIP is as follows:
First: knowledge management defined the different framework for business process and
business management organization is selected to be
altered for knowledge intensive organizations.
In the second step, the research method applied in
this FIP is demonstrated and last the business model
suitable for knowledge intensive organization and
based on knowledge management cycle.

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KNOWLEDGE MANAGEMENT
In the rapidly changing environment, modern management uses knowledge from various
sources. Most organization currently engages in knowledge management in order to heave
knowledge both within their organization and externally to their stakeholders and
customers. Most organizations will use a combination of knowledge management solutions
as part of their enterprise wide knowledge management strategy.
KM is a process that helps organizations to identify and transfer important information and
expertise in the organizations memory. Knowledge Management characterizes a deliberate
and systematic approach to ensure the full utilization of the knowledge base of an
organization. A number of researchers have improved knowledge management
frameworks.
These frameworks can be broadly classified into two categories:
a. Descriptive Framework: The descriptive frameworks attempt to characterize the
nature of knowledge management incident.
b. Prescriptive Framework: The prescriptive framework defines methodologies to
follow in conducting knowledge management.
Many of the KM frameworks focus only on the knowledge cycle tasks and do not cover most
of the organizational knowledge management. The following recommendations exit in
knowledge management literature:
1. Knowledge management tasks must be defined and should include finding, verifying,
sharing, organizing, storing and using such activities by knowledge.
2. There should be a distinction between explicit and tacit knowledge and each should
be handled appropriately.
3. In knowledge management, single loop learning should be part of the framework.
Many researchers have described several frameworks of KM and every framework not
covers all elements and is applied to all
organization, but this framework covers all
elements of knowledge management and can
be used for several organizations.
This framework includes additional element
of knowledge management as people,
culture, technology and leadership, it also
includes knowledge workers, information
technology, organizational knowledge and
process knowledge management as in figure.
Figure1. Organizational Knowledge Management
Approaches

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BUSINESS MODEL FRAMEWORK
A business model is nothing else than a description of the value that a company offers to
one or several segments of customer and its network of business partners for forming,
marketing and delivering this value and relationship for generating profitable and
sustainable revenue streams. Many knowledge intensive organizations are developing
quickly because there is necessary to develop or create a new business model for
organization.
The main component of business model for an organization:
1. New customer value preposition.
2. A value network configuration for that value creation.
3. Leadership capabilities that ensure the satisfaction of relevant stakeholders.
The following steps will be used to outline the organizations operating business model:
A. Identify all organization Source of Revenue
Identify the key factors underlying the organization ability to attract and retain each revenue
stream. These are value preposition. It will also enable to deliver the organization value
prepositions profitably and consistently these make up organization delivery model and
funding model.
B. Identify the Leverage Able Assets, Capabilities, Relationships, and Knowledge
Business Model Ontology presented by Osterwalder (2004) in his PhD thesis suggest
adopting a framework that emphasizes on the following four areas that a business model
and he split the four pillars of the business model ontology into nine interrelated business
model building blocks.
1. Product: value proposition
2. Costumer interface: distribution channel, target customer, and relationship
3. Infrastructure management: value configuration, partnership and capability
4. Financial Aspects: cost structure and revenue model
Based on our proposition Business Model framework could be useful for knowledge
intensive organization.

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Figure2. Business Model for knowledge intensive organization
C. Value Configuration
Value configuration block describes what abilities are necessary to provide its value
proposition and maintain its customer interface. Activities are the basis for create value
and product services in general organizations, but activities produce new knowledge in
knowledge intensive organizations. Value configuration in knowledge based
organization focus on create, capture, store, manage, refine, and dissemination of
knowledge.
In knowledge based organization, there must be strong executive leadership, clearly
expressed goals and user involvement in the system that provides real value of
employees.
For implement knowledge management process within organization, managers should
re-examine their organization culture, because culture stimulate employees’
organizational commitment and encourage employees to participate in decision making
and increase willingness to share knowledge. Knowledge management is processes that
clarify using knowledge creation cycle (see table below).

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Table: Knowledge Management Cycle
Create
Knowledge
People determines new ways of doing things or develop it using
knowledge
Capture
Knowledge
Knowledge must be identified as valuable and be represented in
reasonable way
Refine
Knowledge
New knowledge must be in context so that it is actionable
Store
Knowledge
Knowledge must then be stored in reasonable format in a knowledge
repository
Manage
Knowledge
The knowledge must be kept current and it must be reviewed to verify
that it is relevant and accurate
Disseminate
Knowledge
Knowledge must be available in a useful format to anyone in the
organization who needs it.
D. Capability
A capability describes the ability to execute a repeatable pattern of actions. Capabilities
are based on resources. Many organizations depend on their resources to create and
propose value to customers. In knowledge based organizations resource includes
Knowledge worker, Organizational knowledge, and information technology that are
necessary for many organizations.
1) Knowledge Worker
The success of many KM systems has been attributed to active involvement of the
people who contribute to and benefit from using knowledge. An organization cannot
create knowledge without individuals. The organization support creative individuals
to create knowledge. The individual knowledge worker is the fundamental unit of
knowledge creation, storage and use within organization. An organization should
identify their knowledge worker for fostering new knowledge. Managers who wish to
increase the incentive to share knowledge should first establish fosters interpersonal
atmosphere among employees to work closely together.

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2) Organizational Knowledge
The critical success factor for implementing knowledge management is knowledge
architecture. It is designed to capture knowledge and enable the knowledge
management processes take place. The main components of knowledge architecture
are people, process, behaviors, content and technology.
3) Information Technology
Information technology is one of the elements for success implementing of
knowledge management framework for business model for an organization. This
element helps to create knowledge and share them between knowledge workers,
knowledge management initiatives and information technology are developing
quickly and organization managers are facing challenges decisions for selecting
information technology.
New technology used in business model with great potential to help companies focus
on the most important information in their data warehouse search engine locating
and retrieving necessary document from vast collections accumulated in corporate
repositories.
Conclusion
In this FIP, the new business model based on knowledge management framework proposed
that is suitable for knowledge intensive organization. This developed on Business Model
framework expand the infrastructure structure based on knowledge management
framework.
References
1- “Visual representations in knowledge management framework and cases “, By: Burkhard, E. (2007), Journal of knowledge
management.
2- “Business model innovation breakthrough Moves”, By: Coles, M. (2004), Journal of business strategy.
3- “A stage model of organizational knowledge management: a latent content analysis”, By: Kim, J. H. (2001), Journal of Expert
Systems with Applications
4- “A Framework for Practicing Knowledge Management”, By: Meakins, A. (2002), Journal of Long Range Planning.
5- “Information Technology Management”, By: Turban, E. M.(2006), Transforming Organization in the Digital Economy.
6- "A set of frameworks to aid the project manager in conceptualizing and implementing knowledge management initiatives", By:
Megbolugbeb, J. L. (2003), Published by Elsevier Science Ltd and IPMA.
7- “Business Model Framework for Knowledge Intensive Organizations”, By: Nastaran Hajiheydari and others, International
Journal of Information and Electronics Engineering- 2012
8- “Description and Analysis of Existing Knowledge Management Frameworks”, By: C. W. Holsapple and others, Proceedings of
the 32nd Hawaii International Conference on System Sciences - 1999