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CHAPTER 9
Knowledge Management
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Knowledge Management
Ancient Collaboration at the
organizational level Could revolutionize
collaboration and computing
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Opening Vignette: Knowledge Management
Gives Mitre a Sharper Edge
Mitre - knowledge management system (KMS) to leverage organizational knowledge effectively throughout the organization
Internal marketing during development Supported at the highest level Provided an important application
Organizational culture shift was critical Saved $54.91 million / invested $7.19 million
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge Management
Leverages intellectual assets Delivers appropriate solutions to
anyone, anywhere Good managers have always done
this Ancient concept
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge ManagementHelps organizations
Identify Select Organize Disseminate TransferImportant information and expertise
within the organizational memory in an unstructured manner
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge
As a form of capital, must be exchangeable among
persons, and must be able to grow
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge Management
Requires a major transformation in organizational culture to
create a desire to share
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge
Information that is contextual, relevant, and actionable
Knowledge is INFORMATION IN ACTION
Higher than data and information
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge Types
Advantaged knowledge Base knowledge Trivial knowledge Explicit knowledge Tacit knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Explicit Knowledge
Objective, rational, technical Easily documented Easily transferred / taught /
learned
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Tacit Knowledge
Subjective, cognitive, experiential learning
Hard to document Hard to transfer / teach / learn
Involves a lot of human interpretation
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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DATA
ProcessedINFORMATION
Relevant and actionable
KNOWLEDGE
Relevant and actionable data
Data, Information and Knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge Has
Extraordinary leverage and increasing returns
Fragmentation, leakage, and the need to refresh
Uncertain value Uncertain value sharing
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Organizational Learning and
Organizational Memory Group memory Learning The learning organization Organizational memory Organizational learning Organizational culture
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Organizational Memory
Individual wells Information well Culture well Transformation well Structural well Ecology well
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Organizational Learning Focuses
Knowledge source Product-process focus Documentation mode Dissemination mode Learning focus Value chain focus Skill development focus
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Organizational Culture
Culture is a pattern of shared basic assumptions
Most important aspect of KM success
Why don’t people share knowledge?
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge Management (KM)
A process of elicitation, transformation, and diffusion of knowledge throughout an enterprise so that it can be shared and thus REUSED
Helps organizations find, select, organize, disseminate, and transfer important information and expertise
Transforms data / information into actionable knowledge to be used effectively anywhere in the organization by anyone
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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How Core Competency is Linked to Explicit and Tacit Knowledge
TacitKnowledge
Policies, patents,decisions,stra tegies, IS, whitepapers, etc.
Conver t tacit knowledge intoarticulated and measurableexplicit knowledge
Core Competencies of the Organization
Explicit Knowledge
Expertise, know-how, ideas,organization culture, values, etc.
Process of explicationmay generate new tacitknowledge
TacitKnowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Objectives
Create knowledge repositories Improve knowledge access Enhance the knowledge
environment Manage knowledge as an asset
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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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
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge Repository
Not a database Not a knowledge base (like for
ES)
A collection of internal and external knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge Repository Types
External Structured internal knowledge Informal internal knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Activities
Externalization Internalization Intermediation Cognition
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Features
Create a knowledge culture Capture knowledge Generate knowledge Explicate (and digitize)
knowledge Share and reuse knowledge Renew knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Cyclic Model of KM
Create knowledge Capture knowledge Refine knowledge Store knowledge Manage knowledge Disseminate knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Cyclic Model of KM
ManageKnowledge
StoreKnowledge
DisseminateKnowledge
RefineKnowledge
Create Knowledge
CaptureKnowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Examples Mitre Dow Chemical Company Xerox Chrysler Monsanto Chevron Buckman Laboratories KPMG Ernst & Young Arthur Andersen Andersen Consulting
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Why Adopt KM
Cost savings Better performance Demonstrated success Share Best Practices Competitive advantage
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Chief Knowledge Officer (CKO)
Maximize firm’s knowledge assets
Design and implement KM strategies
Effectively exchange knowledge assets
Promote system use
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Development
Need a knowledge strategy Identify knowledge assets
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Development
1. Identify the problem2. Prepare for change3. Create the team4. Map out the knowledge5. Create a feedback mechanism6. Define the building blocks7. Integrate existing information
systemsDecision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Strategies for Successful KM
Implementation1. Establish a KM methodology2. Designate a pointperson3. Empower knowledge workers4. Manage customer-centric
knowledge5. Manage core competencies
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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More Strategies
6. Foster collaboration and innovation
7. Learn from best practices8. Extend knowledge sourcing9. Interconnect communities of
expertise (communities of practice)
10. Report the measured value of knowledge assets
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Methods, Technologies, and
Tools Email or messaging Document management Search engines Enterprise information portal Data warehouse Groupware Workflow management Web-based training Others
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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How to KM
Integrate the technologies to manage knowledge effectively
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Tool Categories
Information architecture Technical architecture Application architecture
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Software Knowware still developing but…
DecisionSuite Wincite DataWare KnowledgeX Knowledge Share
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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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
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Measuring Success
Balanced Scorecard Skandia Navigator Economic Value Added Inclusive Valuation
Methodology
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM Failure Causes
1. Unclear definition of knowledge2. Overemphasis on knowledge
stock, not flow3. Belief that knowledge exists
outside people’s heads4. Not recognizing the importance
of managing knowledge5. Failure to manage tacit
knowledgeDecision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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More Failure Causes6. Failure to disentangle knowledge from
its uses7. Downplaying reason and thinking8. Focusing on the past and present, not
the future9. Failure to recognize the importance of
experimentation10. Substituting technology contact for
human interface11. Overemphasis on measuring
knowledge, not its outcomes
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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KM and AI
Can use AI in KM Can use KM in AI Data mining can create
knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Electronic Document Management
A KM for documents Everyone is on the same page Documents are up to date Simple example: corporate
phonebook
Lower costs Better performance
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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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?
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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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
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Knowledge ManagementKey Issues
Organizational culture Executive sponsorship Measuring success
The future: Comprehensive standardized KM packages
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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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.
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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Case Applications
9.1 Chrysler’s New Know-Mobiles
9.2 Knowledge the Chevron Way
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.Copyright 2001, Prentice Hall, Upper Saddle River, NJ