ENTREE BTPN

KNOWLEDGE INNOVATION MANAGEMENT

BOOK SUMMARY
KNOWLEDGE MANAGEMENT –
STRATEGIC IMPLEMENTATION
by Jann Hidajat Tjakraatmadja & Didin Kristianawati

Summarised by:

YUDIA YULITA – 29318025

 SUMMARY

KNOWLEDGE MANAGEMENT – STRATEGIC IMPLEMENTATION

THE REASON BEHIND KNOWLEDGE MANAGEMENT

Knowledge era in 21st century has forced us to change some rules of games, working
processes, our behaviour and even turning our belief / paradigm upside down. This was due
to data and information keeps evolving and that’s why knowledge are also evolving.
Therefore, we all need knowledge management to help us to find information and other
knowledge related to us.

There are 3 keys in order to success:

KNOWLEDGE

INNOVATI
CHANGE
ON

We have to change in order to adapt to current condition and apply knowledge

management at all level of our life, i.e.:

a. As an individual (knowledge management as personal machine)

Personal knowledge management is a collection of processes that a person use to gather,
classify, store, search, retrieve, and share in their daily activities. Each individual needs
knowledge management because human are forgetful in nature and needs a system to
manage relevant data, information and knowledge for themselves. It is needed for each
individual growth in order to adapt with changes.
b. As an organization (knowledge management as organization machine)
Modern organization consider and treat their staffs as human capital as part of the
Company’s other capital. At organization level, knowledge can be both tangible and
intangible resources which can be captured, stored and shared which resulted to
 organization innovation so that those organization can be an organic organization (keeps
growing and evolving).
c. As a country (knowledge management as economic machine)
Natural resources of a country does not mean anything if a country cannot use knowledge
that is realized in technology-based industries or there are no educated and skilled labor to
process those natural resources. Knowledge management should be implemented
seriously and systemically so that knowledge based economy can be reached which
resulted to a sustainable national economic growth.

THE CHARACTERISTIC OF KNOWLEDGE MANAGEMENT

In general, knowledge are informations that becomes a reference for someone to act,
become a better person and work smarter. There are 2 kinds of knowledge, which are, tacit
knowledge (still conceptual/theoretical and have no articulation, not documented and/or not
yet coded) and explicit knowledge (knowledge which has been applied, written as guidance
and/or coded in a database). Knowledge is needed to transform tacit knowledge to become
explicit knowledge.

Three characteristics which characterize knowledge in knowledge management

context are:

a. There is a relationship between information and knowledge.

The transformation diagram from data to value is as follows:

Technology/
Human
Computer

Data Information Knowledge Wisdom innovation Value

The objective of knowledge management is to add value through 3 steps, i.e. know
how, use knowledge to increase work capacity and finally to add market and social values.
Through a systematic knowledge management, data and information can be transformed into
a meaningful knowledge which ultimately can add value to an individual, organization or
even a country. This added value becomes a competitive advantage to be able to survive.

KNOWLEDGE MANAGEMENT PRINCIPLES AND PARADIGM

There are 30 paradigms to understand knowledge management which are mentioned

in the book. To be able to understand the characteristics of knowledge era, we need to adjust
our paradigm so that our mindset and behaviour is suitable in the knowledge era. Beside of
these paradigmn, there are 10 important knowledge management principles which need
further attention or preparation so that knowledge management can run effectively.

KNOWLEDGE MANAGEMENT FRAMEWORK

There are so many factors which can leads to a successful knowledge management
implementation. There are so many literatures regarding knowledge management framework,
however this book only discuss in detail about Jann Model Framework and Asian
Productivity Organization (APO) Framework. However, NHS Framework and Global KM
Framework is also discussed at a glance.

1. Jann Model Framework

 Jann Model KM Framework pictured the KM frame work as learning
organization building where the member of organization interacts through learning
process or sharing knowledge.

The foundation – act as the learning habitat. It is a media for learning and
sharing among one another to achieve collective goals. It is very important to motivate
and give all members to show their best performance. Learning habitat the quality is
measured from trust with each other and learning culture.

1st pillar – human capital quality which has good skills and knowledge to
solve issues systematically and also to transfer knowledge effectively. There are 3
components of a human capital, i.e. intelectual capital, credibility capital and social
capital. 2nd pillar – learning system and facility, both physical or policy (organization
structure and reward system) which should motivates the learning process. To harmonize
the first and second pillar, a learning organization needs enabler leader who can organize
and developed human capital and learning system to be ready to act as the organization’s
future capital (always ready for a change and also a mature human capital) and become an
effective learning organization.

The next level of KM building is learning organization where an organization

should be able to learn and adapt quicly to a change and the goals is to perform
continuous improvement/innovation. There are 5 learning organization disciplines based
on Peter Senge which are used as indicators of success of a learning habitat, i.e. personal
mastery, vision sharing, mental model, systemic thinking and learning team.

There are 2 pillars to support learning organication, they are: knowledge

management method which is used to ensure the smooth implementation of KM process.
The method used should be in line with the needs of organization. The other pillar is
 information technology which is used to help human capital to distribute or store
organization information easily, faster and accurately to achieve better
performance/quality and faster working process. Knowledge management process is the
main activity of KM implementation which harmonize knowledge management method
and sharing information.

1. Asian Productivity Organization (APO) KM Framework

APO is intergovernmental organization among Asia Pacific which was
established in 1961 with the objective of productivity increase of the members. Indonesia
is one of APO member.
APO has 6 layers of KM development in an organization which focused on the
following processes: knowledge identification, knowledge creation, knowledge storing,
knowledge sharing and knowledge application. In APO framework, the most important
thing is not information technology but the human capital itself which defines the
successfullness of KM implementation within an organization. Individual learning
becomes the foundation to expand the organization capability which followed by group
learning through collaboration and knowledge sharing to achieve collective intelligence.

ORGANIZATION READINESS ASSESSMENT

KM initiative implementation within an organization are done in 3 steps as follows:

a. KM readiness: when organization members shows receptive action to KM

implementation.
 b. KM adoption: when an organization change their behaviour according to KM
characteristics or needs.
c. KM institutionalization: when KM becomes the tools of work, daily mindset &
behaviour as an individual or group.

KM implementation can be done using 3 approach, i.e. Process approach, Practice

approach and best practice approach. It is recommended that KM implementation is done fom
a pilot project in a certain division only rather than at corporate level. KM readiness
assessment can be done using 3 ways. The easiest way is to do a KM readiness survey to all
employees. The second way is social network analysis to analyze the strength of employee
social networks. It is a systematic way to analyze a relationhip of an employee within a
group/company and how big is their knowledge flow. The last one is knowledge mapping
which will be very helpful during KM implementation. Knowledge mapping can give us
initial information to identify critical knowledge (what knowledge do we have now but needs
to be elaborated and what knowledge do we need). Based on these critical knowledge, KM
strategy can be made.

KNOWLEDGE MANAGEMENT PROCESS

KM process is the core of KM implementation, it have 5 significant process shown in

picture below.

Knowledge
Identification

Knowledge
Knowledge
Storing &
Creation
Search

Knowledge Knowledge
Application Sharing
a. Knowledge identification
In this step, an organization have to search and find the organization knowledge (usually
stored in files or if it still in form of tacit knowledge the company should perform special
studies/interviews). After that, perform evaluation of the organization knowledge to
decide whether the knowledge is relevant and analysis of the organization knowledge to
convert information to knowledge. The last step is knowledge mapping through mind
map, taxonomi, etc.
b. Knowledge Storing & Search
Knowledge storing and search should be easily accessible and find in times of need and
therefore a company should categorizes and classifies information using methodical
approach and information technology. Knowledge storing should also be safe from loss
and theft, especially for confidential information.
c. Knowledge sharing or transfer
This is the core from KM process, the effectivity of knowledge creation are highly
dependent to knowledge sharing/transfer. This process are also very dependent to
people’s behaviour and interconnectedness strength of the peoples within the same
organization. They should be able to collaborate, publish their tacit knowledge in forms
of procedures or presentation and able to maintain relationship with others.
d. Knowledge application process
Knowledge flow inside an organization should be in supply and demand basis. There
should be supplier (knowledge creator), storage place (data repository) and buyers (those
who needs the knowledge). It needs a best strategy to create continuous interconectedness
between the supplier and the buyers which will be explained in the next section.
e. Knowledge creation
Knowledge creation is basically a process to create new knowledge based on capturing
and integrating available knowledge. There are several factors which should be noticed
by the leaders/management to boost a habitat that support knowledge creation, i.e.:
intensity, autonomy, creative chaos, redundancy, and variation. Models that are used to
depicts knowledge creation process are SECI model (1994), British Petroleum Model
(2004), Jann Model – learning institution (2017)

There are also various technique and methods which was frequently used in KM
process, such as: knowledge cafe, knowledge-based exit interview, peer assist, after action
review, restrospect, learning histories, etc.
KM IMPLEMENTATION STRATEGY

KM implementation stage is done by 5 steps as follows:

• KM implementation preparation
Preparation
• Context indicator identification
program
• KM Habitat development

KM Strategic • KM implementation
Implementation • KM evaluation

The rules that should be followed by KM Planners are that “KM is a management tools to
achieve a more effective organization goals”. Diagram below shows the relationship between
KM Strategy which are a part of Organization Strategy:

Organization vision KM Vision

Business Objectives/Goals KM Objective/Goals

Business Strategy KM Strategy

Business Roadmap KM Roadmap

The components of KM implementation strategy includes:

a. Vision and mission of KM implementation

KM Vision should be aligned with organization vision. After KM vision is established,
KM planner should define a measurable KM objectives or goals. These goals should not
 be short term or quick yielding in order to be an innovative learning organization, to
facilitate employees to become knowledge workers which will need quite some time and
to build collective intelligent. The most important is to integrate all knowledge from all
units to become a collective intelligent of a company.
b. KM implementation strategy
KM implementation strategy should be contextual and should consider the readiness of a
community when KM is going to be implemented. There are at least 9 methods which can
be used to formulate a KM implementation strategy.
c. KM Policy and Organization Structure
KM implementation strategy could not applied effectively without being supported by a
clear KM policy to support KM organization, administrative work facilities, KM budget
and top management commitment to support KM implementation. KM organization
structure is needed for a company which planned to implement KM in order to support
socialization process, coaching & mentoring process in each KM units. Some companies
do have Chief Knowledge Officer as part of the top management.

d. Knowledge Storage and Flow

Knowledge flow needs to be analysed to depicts knowledge capturing process, knowledge
repository and knowledge distribution process.
e. KM initiative formulation
The most important ascpect of KM initiative formulation are the strategy description to
achieve KM goals which should always include initiatives related to People, Business
Proess (policy, rules, system or work procedures) and Infomation Technology used.

PEOPLE

I.T. PROCESS

f. KM road map
After a KM initiatives are stipulated as work plan to achieve KM objectives/goals, chosen
KM initiatives should be placed in a road map so that the achievement of KM initiatives
are clearly stated and managed.
g. KM Implementation Strategy Map
This is the last tool of KM planning process which integrates and find causal relationships
between KM initiatives – KM process – KM strategy – KM objectives.

However, based on several cases of KM implementation some actual implementation

does not follow the theory, such as: KM strategy not inline with organization strategy,
knowledge supply are not integrated with knowledge demand, soft skills training are highly
needed to develop employees productivity and so on and so forth. Therefore, to implement
KM in an organization, KM planning should be carefully made and a KM planner should
have a thorough understanding of an organization.

~~~end~~~