KNOWLEDGE MANAGEMENT

The Empires of the Future

are Empires of the Mind

Winston Churchill

Data & Information

"Data are facts, observations, or measures

that have been recorded but not put into
meaningful context. A single musical note is
data."

Then data becomes information as soon as it

is put into a context, and linked to an object.

Data that has been arranged in a systematic

way to yield order and meaning. A series of
notes arranged into a tune is information."

The Five Cs
Condensed
Contextualized

Data is summarized in more concise form,

and unnecessary dept is eliminated
We know why the data was collected

Calculated

Tabulate, relate and data to form bases for

analysis

Categorized

The basis of Analysis is known

Corrected

Errors have been removed, missing dataholes have been accounted for

What is Knowledge?
Knowledge is reasoning about
information and data to actively
enable performance, problem
solving, decision making, learning,
and teaching.
(Beckman, T 1997)

Definition of Knowledge
Knowledge is a mix of framed experience, values,
contextual information, expert insight and intuition that
provides an environment and framework for evaluating
and incorporating new experiences and information. It
originates in individuals minds but is often embedded in
organizational routines, processes, practices, systems,
software and norms.

Elements of Knowledge
KNOW

Be

Aware of
Be Familiar
with
Be
Acquainted
with

L
E
A
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N

EDGE

An intense or striking quality

(a quality or factor which gives
superiority over close rivals)
A slight advantage
somebody/ something

over

To be Informed
To gain Knowledge,
Skill or Ability
To be Skilful

The term KNOWLEDGE is a process of learning to know to have an edge over others.

D I K W Relationship
Knowledge applied X
Results Interpreted Interpreted Knowledge

Information +
Experiences + Insights +
Judgment Interpreted Information

Wisdom
Knowledge
Information
Data
Unformatted, assorted,
numerous transactional
records
Transactions

Data
processed through
5Cs Interpreted
Data

From Facts to Wisdom

(Haeckel & Nolan, 1993)

Categories of Knowledge
Technological

Type

Business
Environmental

Focus

Operational
Strategic
Individual

Knowledge

Involvement

Collective
Explicit

Complexity
Tacit

Perishability

Low
High

Knowledge Explicit, Tacit and

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Building Blocks
KNOWLEDGE

Explicit
Recorded
Procedures, Manuals,
Documents, Practices.

Tacit
Residing in
Peoples Heads
Skills, Ideas,
Experience.

Definition of Knowledge Management

Knowledge Management (KM) is the creation,
distribution and exploitation of knowledge to create
and retain greater value of core business competencies.

KM addresses business problems particular to your

business whether it is creating and delivering
innovative products or services; managing and
enhancing relationships with customers, partners and
suppliers; or improving work processes.

primary goal : To facilitate opportunistic

application of fragmented knowledge through
integration.

KM is a newly emerging, interdisciplinary

business model dealing with all aspects of
knowledge within the context of the firm,
including knowledge creation, codification,
sharing, and how these activities promote
learning and innovation. In practice, KM
encompasses both technological tools and
organizational routines in overlapping parts.

Knowledge Assets
An organizations schematic and content
knowledge resources, including
knowledge held by the organizations
participants, various artifacts belonging
to the organization (e.g., documents,
manuals, videos), the organizations
culture, and its particular infrastructure
of roles, relationships, and regulations.

Knowledge Worker
A knowledge worker (also referred to as
an intellectual worker or brain worker) is
a person employed due to his or her
knowledge of a subject matter, rather
than their ability to perform manual
labor.
The term was coined by Peter Drucker in
1959, as one who works primarily with
information or one who develops and
uses knowledge in the workplace.

Knowledge Management may be

viewed in terms of
People
Processes
Technology
Or

Culture
Structure
Technology

Major Drivers behind KM

Globalization

of Business
Learner organizations
Corporate Amnesia
Technological advances

The Knowledge Economy

The

new source of wealth is knowledge, and not

labor, land, or financial capital. It is the intangible,
intellectual assets that must be managed.
The key challenge of the knowledge-based economy
is to foster innovation.
Two Questions:
Is KM related to innovation?
Is there any difference between KE and KBE?

Definition

Knowledge economy as one that

creates, disseminates, and uses
knowledge to enhance its growth and
development.

The Knowledge Economy

For several decades the world's best-known
forecasters of societal change have
predicted the emergence of a new economy
in which brainpower, not machine power, is
the critical resource. But the future has
already turned into the present, and the era
of knowledge has arrived.
--"The Learning Organization," Economist Intelligence
Unit

Intellectual Capital
Intangible Assets could be any asset that can be or
cannot be measured, but is used by a company to its
advantage.

An intangible asset if measured and valued for become

the intellectual capital of the company.

Skilled people & their competencies (knowledge /

expertise), market positions, goodwill, recognition,
achievements,
patents,
contracts,
support,
collaborations, brand value, leadership, and loyal
customer bases.

Knowledge, collective expertise, goodwill, brand value

and patents are not regularly shown up on conventional
financial statements.

Intellectual Capital
Relational capital: All relations a company
entertains with external subjects, such as
suppliers, partners, clients (brands, ...),
research centres, etc.;
Human capital: The sum total of the useful
knowledge of your employees and your
customers with more emphasis on knowledge
and competences residing with the
company's employees;
Organizational capital: Collective know-how,
beyond the capabilities of individual
employees. E.g.: information systems;
policies; intellectual property.

Characteristics of Knowledge
Management
Pervasive

(spreading widely)
Formal management
Involves management of
organization
Consists of integrated processes
Technology serves as backbone
Disciplinary approach

Barriers to Knowledge
Implementation

Wonders of Knowledge Management

Reducing costs/ time for information
collection, dissemination & reuse
Improving Customer/Vendor service
& support processes

Accelerated
Organizational
learning

KNOWLEDGE
MANAGEMENT

Identifying innovative business/revenue

generation opportunities

Shrinking cycle times for product /

market development

Enhanced
Enterprise
Profitability

Stemming intellectual losses linked

to employee turnover

Knowledge Repository

Not a database
Not a knowledge base (like for
ES)
A collection of internal and
external knowledge

Cyclic Model of KM
Capture
Knowledge

Create
Knowledge

Refine
Knowledge

Disseminate
Knowledge

Store
Knowledge

Manage
Knowledge

Chief Knowledge Officer

(CKO)

Maximize firms knowledge

assets
Design and implement KM
strategies
Effectively exchange knowledge
assets
Promote system use

KM Strategies

Codification Strategy

Identify who has knowledge

Classify and extract the knowledge
Manage the knowledge

Personalization Strategy
Identify who has knowledge
Classify the knowledge and store
information about who to contact to get it
Manage the pointers to the knowledge

Storage Strategies

Repository Storage Strategy

For the Codification Strategy

Develop a Knowledge Repository, and
The Technology and People to Manage it

Network Storage Strategy

For the Personalization Strategy
Heavily based on communication to
connect with people who have knowledge

KM Technologies
1. Communication
To enable people to connect to other
people or the KMS

2. Collaboration
To enable people to work together

3. Storage
To store and maintain the knowledge or
knowledge about who has knowledge

KM The Future

Not a fad
Impact is immense
Research on organizational
culture
How to do each step
Are they the right steps?

Knowledge Management
Key Issues

Organizational culture
Executive sponsorship
Measuring success

The future: Comprehensive

standardized KM packages

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.

Thanks