c








Chapter 1

CTIV
 hat is Knowledge Management?
 hy Knowledge Management
 KM Myths
 Implications for Knowledge Management

`
 ˜
 
  

 

 
  



Ôëao Tsu

Knowing ignorance is strength.

Ignoring knowledge is sickness.
If one is sick of sickness, then one is not sick.
The sage is not sick because he is sick of
sickness. Therefore he is not sick.





 


  
 orking marter, Not Harder
 erlapping Human/ rganizational/
Technological factors in KM:
± People (workforce)
± rganizational Processes
± Technology (IT infrastructure)

]
 Vë PPING F CT  F
KM

ë
ë

 ˜
 
 


ë
  

 



Ú
 Vë PPING F CT  F
KM
 The ideal organization is one where people
exchange knowledge across functional areas
of the business by using technology and
established processes. The exchange may
be for policy formulation and strategy, for
training and deelopment, or for problem
soling in teams. None of the three areas
can function independently of one another.
â
 H T I KN ë G
M N GMNT?
 Process of capturing and making use of a firmUs
collectie expertise anywhere in the business
 oing the right thing, N T doing things right
 Viewing company processes as knowledge
processes
 Knowledge creation, dissemination, upgrade,
and application toward organizational surial
 Part science, part art, part luck


 
PëICIT N T CIT
KN ë G
ral Communication
³Tacit´ Knowledge

Ú
Ú

Information equest
;xplicit´ Knowledge

Information Feedback

  


l
 TH KN ë G
G NIZ TI N
Culture
Competition
Collect
Create
rganize
Techno Intelligence
logy Maintain  


 
 

efine
isseminate
Knowledge
Management
ëeadership
Process
KM riers


 TH KN ë G
G NIZ TI N
 The middle layer addresses the KM life
cycle
 knowledge organization deries
knowledge from customer, product,
financial, and personnel practices
knowledge.

1

 TH KN ë G
G NIZ TI N
 Customer knowledge
± Their needs, who to contact, customer buying power, etc.
 Product knowledge
± The products in the market place, who is buying them, what prices
they are selling at, and how much money is spent on such products
 Financial knowledge
± Capital resources, where to acquire capital and at what cost
 Personnel practices knowledge
± The expertise aailable, the quality serice they proide, and how
to go about finding experts, especially in customer serice

11
 TH KN ë G
G NIZ TI N
 Indicators of knowledge: thinking actiely
and ahead, not passiely and behind
 sing technology to facilitate knowledge
sharing and innoation

1`
 I  ë KN ë G
M N GMNT


 





  New products



 New markets
 marter problemsoling
Valueadded innoation



etter quality customer
 
  serice
ë
ë More efficient processes

 
  More experienced staff
 


 

 
  
 


 

   

1
 I  ë KN ë G
M N GMNT
 The ideal knowledge organization allows
people to exchange knowledge across
functional areas ia technology and
established processes
 Knowledge internalized and adopted within
the culture of the organization

1]
 TMIN NT F KM
CC
 People
 haring knowledge based on V

 

1Ú
 HY KN ë G
M N GMNT?
 haring knowledge, a company creates exponential
benefits from the knowledge as people learn from it

uilding better sensitiity to šbrain drain
 eacting instantly to new business opportunities
 nsuring successful partnering and core competencies
with suppliers, endors, customers, and other
constituents
 hortens the learning cure

1â
 TH IV
 Technology riers.
± ata communications, networking, and wireless
transmission
± tore, communicate, and exchange data at high speed
 Process riers
± limination of duplicate mistakes
± The way companies react to market changes (IT)
 Personnelpecific riers
± Minimizing personnel turnoer
± Minimizing knowledge walkouts
1
 TH IV
 Knowledgeelated riers
± Knowledge sharing knowledge transfer
 Financial riers
± Knowledge defies economic theory, where
assets are subject to diminishing returns oer
the long run.
± Knowledge assets increase in alue as more and
more people use them.

1l
 G ë F KM
 Produce a positie return on inestment in
people, processes, and technologies.

1
 INTNT C NTI
T
T TH  F KM
 The Internet is an incredible information source
 ith the orld ide eb, eery user can share
and update information at will
 The Internet uses a uniersal communication
standard protocol
 The Internet proides quicker interaction and
communication with knowledge workers

`

 KY CH ëëNG
 xplaining what KM is and how it can benefit a
corporate enironment
 aluate the firmUs core knowledge, by employee,
by department, and by diision
 ëearning how knowledge can be captured,
processed, and acted on
 ddressing the still neglected area of collaboration
 Continue researching KM to improe and expand
its current capabilities
 How to deal with tacit knowledge
`1
 KM MYTH
 KM is not a fad. Knowing what you know or what
you need to know is not a fad.
 KM and data warehouse are not the same. First,
data warehousing is a mere repository of data, not
knowledge. It is critical for KM, because data
warehousing is used in data mining and eliciting
new information for new products, new customer
demand, etc.
 KM is not a new concept. It has been practical
since the early 1l
s.

``
 KM MYTH
 KM is not technology, per se.It relies on
technology to expedite knowledge sharing and
transfer. It is a unique way of thinking about work
and about working.
 It is true that technology can store data,
information, and knowledge, but it cannot
guarantee that people will use it. Human
intelligence is usually tied to tacit knowledge,
which is in the human brain. ny exchange or
sharing of such knowledge is done facetoface,
using specialized tools or methodologies.

`
 KM ëIF CYCë
FourProcess View of KM:
   M data entry, scanning, oice
input, interiewing, brainstorming
 @   M cataloging, indexing, filtering,
linking, codifying
    M contexualizing, collaborating,
compacting, mining
 —
  M flow, sharing, alert, push

`]
 VIGHT  PITF ëë
 Failing to modify the compensation system
to reward people working as a team

uilding a huge database that is supposed to
cater to the entire company
 Viewing KM as a technology or a human
resources area
 Placing too much emphasis on technology

`Ú
 VIGHT  PITF ëë
 Introducing KM into the organization ia a
simple project to minimize possible losses
 Pursuing KM without being ready
 Haing poor leadership

`â
TH KM CYCë N TH
G NIZ TI N


 
    


 

 
 

 









 








 



  

`
 ë F TT IN TH KM
ëIF CYCë
 Trust supports the KM process by giing
employees clear impression that reciprocity,
free exchange, and proposing innoations
will be recognized and fairly compensated.
 The bottom line is that one cannot hae an
open, candid dialogue with someone he/she
does not trust.

`l
 P M TING TT
 ecentralize organization structure to allow
decision making by teamwork
 educe controlbased management and encourage
management by results
 eisit companyUs mission statement and ethics
policy to demonstrate its new iews about alues
 ssess and improe employee responsibilities and
accountability
 liminate unnecessary directies or barriers
 Install programs to improe employee
commitment to knowledge sharing
`
TH  ë F VYTHING
 Knowledge is productie only hen
captured in peopleUs mind
 hareability requires decentralized
intelligence
 e need to empower knowledge workers
 Top performers can be a problem; they are
not the most humble



 The Knowledge
usiness has already
changed
 re you in the knowledge business?
 How will you close your knowledge gap?
 Is your mind geared to rethink what you
think you know?

1
 TI N F  ICI N
 uppose you were asked to do a 1Úminute
presentation before the managers of a
small retailer about the pros and cons of
knowledge management. hat would you
say? utline the content of your talk.
 business manager, a programmer, and a
psychologist all want to become KM
designers. hich one do you feel will
hae the least difficulty? hy?
`
 TI N F  ICI N
 earch the Internet and current journals for
sureys that show how well companies
are adopting (or struggling with) KM.
eport your findings to class.


c








Chapter 1