Knowledge Management


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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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  • Better late than never: the definitions in slide 11 are mixed up...
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  • KM – Knowledge Management
  • KM – Knowledge Management
  • KM – Knowledge Management
  • Knowledge Management

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