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Introduction
What do we mean by knowledge? Discussion Class Drucker (1994): The knowledge society will be more competitive than anything that we have seen so far. Why? With knowledge being universally accessible there will be no reason for por performance. Cyert (1991): The most crucial variable in economic development is Knowledge. Page 2
Introduction
Leonard-Barton (1995): Organizations that are successful innovators are those that build and manage knowledge effectively through activities as developing shared problem-solving skill, experimentation, integrating knowledge across functional boundaries, and importing expertise from external sources.
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Knowledge Management
Ancient Collaboration at the organizational level Could revolutionize collaboration and computing
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Organizational culture shift was critical Saved $54.91 million / invested $7.19 million
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Knowledge Management
Leverages intellectual assets Delivers appropriate solutions to anyone, anywhere Good managers have always done this Ancient concept
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DSS Insights- GEM: A DSS for Workload-Planning Decisions Berth . Equipment information . Availability of equipment . Maximum permitted length . Maximum permitted draught . Maximum permitted DWT
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Knowledge Management
Helps organizations Identify Select Organize Disseminate Transfer Important information and expertise within the organizational memory in an unstructured manner
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Knowledge
As a form of capital, must be exchangeable among persons, and must be able to grow Intellectual Capital- as the competence of an individual and the commitment of the individual to the organizations goals (competence * commitment)
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Knowledge Management
Requires a major transformation in organizational culture to create a desire to share
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Knowledge
Information that is contextual, relevant, and actionable Knowledge is INFORMATION IN ACTION Higher than data and information
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Knowledge Types
Advantaged knowledge Base knowledge Trivial knowledge Explicit knowledge Tacit knowledge
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Knowledge Types
Advantaged Knowledge- Knowledge that provides competitive advantage Base Knowledge- Knowledge that is integral to an organization, providing it with short-term solutions (i.e. best practices) Trivial knowledge- knowledge that has no impact on the organization
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Explicit Knowledge
Objective, rational, technical Easily documented Easily transferred / taught / learned
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Tacit Knowledge
Subjective, cognitive, experiential learning Hard to document Hard to transfer / teach / learn Involves a lot of human interpretation
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INFORMATION Processed
DATA
KNOWLEDGE
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Knowledge Has
Extraordinary leverage and increasing returns Fragmentation, leakage, and the need to refresh Uncertain value Uncertain value sharing
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Organizational Memory
Individual wells Information well Culture well Transformation well Structural well Ecology well
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Organizational Culture
Culture is a pattern of shared basic assumptions Most important aspect of KM success Why dont people share knowledge?
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Explicit Knowledge
Conver t tacit knowledge into artic ulated and measurable explicit knowledge Policies, patents, decisions, stra tegies, IS, white papers, etc.
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KM Objectives
Create knowledge repositories Improve knowledge access Enhance the knowledge environment Manage knowledge as an asset
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KMS Manage
Knowledge creation through learning Knowledge capture and explication Knowledge sharing and communication through collaboration Knowledge access Knowledge use and reuse Knowledge archiving
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Knowledge Repository
Not a database Not a knowledge base (like for ES) A collection of internal and external knowledge
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KM Activities
Externalization Internalization Intermediation Cognition
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KM Features
Create a knowledge culture Capture knowledge Generate knowledge Explicate (and digitize) knowledge Share and reuse knowledge Renew knowledge
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Cyclic Model of KM
Create knowledge Capture knowledge Refine knowledge Store knowledge Manage knowledge Disseminate knowledge
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Cyclic Model of KM
Capture Knowledge
Create Knowledge
Refine Knowledge
Disseminate Knowledge
Store Knowledge
Manage Knowledge
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KM Examples
Mitre Dow Chemical Company Xerox Chrysler Monsanto Chevron Buckman Laboratories KPMG Ernst & Young Arthur Andersen Andersen Consulting
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Why Adopt KM
Cost savings Better performance Demonstrated success Share Best Practices Competitive advantage
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KM Development
Need a knowledge strategy Identify knowledge assets
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KM Development
1. 2. 3. 4. 5. 6. 7. Identify the problem Prepare for change Create the team Map out the knowledge Create a feedback mechanism Define the building blocks Integrate existing information systems
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More Strategies
6. 7. 8. 9. Foster collaboration and innovation Learn from best practices Extend knowledge sourcing Interconnect communities of expertise (communities of practice) 10. Report the measured value of knowledge assets
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How to KM
Integrate the technologies to manage knowledge effectively
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KM Tool Categories
Information architecture Technical architecture Application architecture
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KM Software
Knowware still developing but DecisionSuite Wincite DataWare KnowledgeX Knowledge Share
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KM Success
Economic performance Technical and organizational infrastructure Standard, flexible knowledge structure Knowledge-friendly culture Clear purpose and language Change in motivational practices Multiple channels for knowledge transfer Worthwhile level of process orientation Nontrivial motivational encouragement Senior management support
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Measuring Success
Balanced Scorecard Skandia Navigator Economic Value Added Inclusive Valuation Methodology
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KM Failure Causes
1. Unclear definition of knowledge 2. Overemphasis on knowledge stock, not flow 3. Belief that knowledge exists outside peoples heads 4. Not recognizing the importance of managing knowledge 5. Failure to manage tacit knowledge
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KM and AI
Can use AI in KM Can use KM in AI Data mining can create knowledge
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The Knowledge-Based View of Decision Making Accepting Messages: see next slide
y A decision maker (human-being) can accept stimuli from the environment y The stimuli are messages that carry knowledge (information) y Some messages have a direct and immediate impact on the decisions being manufactured Other messages can be: . discarded . passed along to others and or other places . stored for future use
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The Knowledge-Based View of Decision Making Issuing Messages The decision maker can issue messages to the surroundings: . other people . documents/storage vessels The message may also be the Manufactured Decision
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The Knowledge-Based View of Decision Making Recognizing the Need for a Decision
May be very obvious: . Highly structured . Happens frequently May be take many repetitions of the event/stimuli to initiate action, thus it is: . unstructured . novel . by observing conditions (economic, political, mechanical) we may come to recognize that: - a problem exits - a solution is required Page 64
The sources of raw materials is the decision makers storehouse of knowledge (experience, facts, rules, etc). Knowledge is extracted on an as needed basis and manipulated by Cognitive abilities to produce solutions for the flow of problems that constitutes the KNOWLEDGE Manufacturing Process. The solution that is the product of the process is the NEW KNOWLEDGE.
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1. A Manufacturing Analogy Material Product Decision 1. The process begins in reaction to a customer The process begins in reaction to a recognized order or anticipated order. need or opportunity. 2. The process draws on an inventory of raw The process draws on an inventory of materials. KNOWLEDGE. 3. Items entering inventory are subject to Knowledge is assimilated into inventory only if quality testing controls. it is expected to be usable. 4. Abilities for manipulating materials Abilities for manipulating knowledge transform/assemble raw materials into final transformation/assemble existing knowledge into new knowledge about what to do. products. During the process there are intermediate 5. During the process may yield material bypieces of knowledge called problem solutions. products that are stored in inventory or discarded. 6. The process may yield material by-products The process may yield knowledge by-products that are stored in inventory or are discarded. that are stored in inventory or are discarded. 7. The manufacture may be an individual or The decision maker may be an individual or have multiple participants. consist of multiple participants 8. The finished product is packaged for The decision is packaged for distribution. distribution. From Holsapple & Whinston, 1996, page 100.
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Defining Knowledge
Three Views of Knowledge
y Knowledge Representations:
If a system has and can use a representation of something then the system itself can also be said to have KNOWLEDGE. The textbook can be a representation of knowledge if it can be read.
Representation is an abstraction pattern of Symbols =>
It embodies knowledge:
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Defining Knowledge
A useable representation of something
From a DSS point of view we must be concerned with
the computer memory and how it
processes knowledge represents knowledge
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Knowledge States
Defining Knowledge
One state of knowledge can be used to generate different states of knowledge DSS help in:
Acquiring knowledge deriving knowledge
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Knowledge Production
y The result of a productivity activity (i.e. LEARNING) involving acquisition and/or derivation
The flows and stock of knowledge Figure 4.3, page 106 Stocks are the inventories of knowledge The flows are the messages that tell the stock to do something
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Knowledge Sources
The decision makers store house of Knowledge: Internal & External
y The DM can be active or Passive about acquiring knowledge y Active: Message can be emitted to invoke a response y Passive the DM observes without invoking reactions
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Knowledge Sources
The Decision to Acquire/ Derive Knowledge
General a mixture of acquiring and derivation of knowledge Acquiring knowledge may tax: cognitive abilities, time, economic limits There are tradeoffs DSS tens to promote greater reliance on internal production of knowledge
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Knowledge Sources
Reliability of Knowledge:
Do we get the same knowledge from internal and external sources? If there are multiple external sources- to they yield the same result DSS y Without a DSS it may be infeasible to produce
the it internally Use the DSS in parallel with the knowledge acquisition to check the source reliability
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Knowledge Sources
Knowledge Qualities
DSS
y accurately retaining knowledge y flagging inconsistencies y analyzing uncertainties y tracking multiple sets of knowledge
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Knowledge Sources
Utility of Knowledge: Usefulness
Knowledge can be useful to different people To a history professor knowledge about particle physics is probably not useful Figure 4.4 DSS:
Present what is relevant to a specific DM Provide high quality knowledge
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Knowledge Management
Techniques
Text Management Forms Management Business Graphics Solver Management Rule Management Database Management Report Generation Spreadsheet Analysis Programming Message Management
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Knowledge Management
Reasons for Understanding Knowledge Management
Position or integrate Knowledge into a decision Extend the role of supporting participants from mere production to the processing, storage, retrieval, dissemination, utilization and general management of knowledge. Facilitate and develop a philosophy and methodologies for handling knowledge Shift the role of supporting participants from producing certainty and complete knowledge to structuring ignorance and managing uncertainty
Lohuizen & Kochen, 1986 in Holsapple & Whinston, 1996, page 112
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Knowledge Management
y Five types of Knowledge 1. 2. 3. 4. 5. Practical Intellectual Pastime Spiritual Unwanted
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Knowledge Management
Three Primary Types of Knowledge 1. Descriptive: Includes descriptions of past, present, future, and hypothetical situations. DATA and INFORMATION- To Know What 2. Procedural Knowledge: The how to do; Step-by-Step 3. Reasoning Knowledge: To know WhyApproaches to problem solving
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Knowledge Management
Three Secondary Types of Knowledge
1. Linguistic: Vocabulary and grammar, body language, meaning of gestures. 2. Assimilation Knowledge: The basis for controlling changes to the knowledge store. A filtering mechanism 3. Presentation Knowledge: The basis for packaging outgoing responses Page 82
Knowledge Management
y The Decision Maker possess knowledge y The DSS has processing abilities that can supplement the Decision Maker
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Cognitive- Knowledge
Some knowledge can be encoded in a declarative format which can later be transformed into a procedural format as we become familiar with the information. Examples: Reading Windows for Dummies Reading a Golf technique book then truing on the PC/ Play golf
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Cognitive Knowledge
Attention: the concentration and focusing of mental activity Paying attention seems to accentuate, or enhance, sensory input that has been focused on
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Information Processing
Sensory system: where specific aspects of the environment are detected and organizedinto cognitive code The code is passed into memory Memory
Working memory: a workbench for cognitive codes (short term memory) Permanent memory: long term storage of declarative and procedural knowledge
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Memory
External Input Sensory Register Short-term Storage Long-term Storage
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Sensory Register
Where our feature detection and pattern recognition process produce a cognitive code that can be stored for a short time. The Sensory register does not depend on resource allocation- we do not have to pay attention to incoming stimuli in order to have this cognitive code created.
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Sensory Register
It must have a large storage capacity It is modality specific:
has difference storages for audio, visual
The code in storage Decays over time Resources must be allocated to transfer the code to STM or LTM
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Short-term Memory
Limited capacity (RAM) Storage is organized by sensory component:
acoustic, verbal, linguistic
Storage duration of unrehearsed material is about 30 seconds Material that is not elaborated or transferred decays.
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Long-term Memory
To go from STM to LTM requires rehearsal Rehearsal:
procedures that maintain the vitality of the code STS code will last indefinitely if it is occasionally refreshed by rehearsal. Rehearsal duplicates and augments the code for long-term storage (associations/links are created),
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U S E R S
Process Platform
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Knowledge Views Knowledge Repository Repository * Content * Structure * Content * Packaging/Format * Accessing/ Distribution
Discussion Participants
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PERSON Expert performance of some task in some domain Feedback Elicitation Psychology of person
Personal construct psychology of person as an anticipatory system
Ontology of computer
knowledge representation and operationalizing an anticipatory system
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Tactical
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Identification
Requirements
Conceptualization
Concepts
Formalization
Structure
Implementation
Rules
Testing
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Individual
Individual
Individual
Individual
Individual
Individual
Individual
Constructs Element 1 Element 2 Element 3 Distinction 1Constraint 1,1Constraint 1,2Constraint 1,3 Distinction 2Constraint 2,1Constraint 2,2Constraint 2,3 Distinction 3Constraint 3,1Constraint 3,2Constraint 3,3 Distinction 4Constraint 4,1Constraint 4,2Constraint 4,3 Distinction 5Constraint 5,1Constraint 5,2Constraint 5,3
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KM The Future
Not a fad Impact is immense Research on organizational culture How to do each step Are they the right steps?
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Knowledge Management
The definition is clear The concepts are clear The challenges are
Clear Surmountable
The benefits are clear (and can be huge) The tools and technologies are viable
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Knowledge Mangement
The wise see knowledge and action as one (Bhagvad Gita) Intelligent organizations recognize that knowledge is an asset, perhaps the only one that grows over time, and when harnessed effectively can sustain the ability to continuously compete and innovate.
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