Ch. 12 Knowledge ManagementRev: May, 2015

Euiho (David) Suh, Ph.D.

POSTECH Strategic Management of Information and Technology Laboratory(POSMIT: http://posmit.postech.ac.kr)

Dept. of Industrial & Management EngineeringPOSTECH

Contents1 Concept of Knowledge

2 Knowledge Management (KM)

(1) Concept and Technology of KM

(2) Knowledge Management Process (KMP)

3 Knowledge Management System (KMS)

4 Knowledge Management & IT

5 Communities of Practice (CoP)

6 Case Study

3

Knowledge

■ Definition of Knowledge– A justified belief that increases an entity’s capacity for effective action

[Huber, 1991; Nonaka, 1994]– Personalized information related to facts, procedures, concepts, interpretations, ideas,

observations, and judgments [Alavi, 2001]

■ Data vs. Information vs. Knowledge [Dreske, 1981; Machlup, 1983; Vance, 1997]

■ Alternative Perspectives

Data Information Knowledge

Raw numbers and facts Processed dataAuthenticated Informa-

tion

Perspective Definition of Knowledge

State of mind State of Knowing and Understanding

Object Object to be stored and manipulated

Process Process of Applying Expertise

Access to Informa-tion

Condition of access to information

Capability Potential to influence action

1. Concept of Knowledge

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Knowledge Management (KM)

■ Definition– Strategies and processes designed to identify, capture, structure, value, leverage, and

sharean organization’s intellectual assets (knowledge) to enhance the organization’s per-formance and competitiveness

■ Critical Activities of KM

■ Purposes of KM– Making knowledge visible and show the role of knowledge in an organization– Developing a knowledge-intensive culture– Building a knowledge infrastructure

■ Successful knowledge management– Creating techniques, technologies, systems, & rewards for getting employees to share

what they know

– Making better use of accumulated workplace and enterprise knowledge

Capture and documentationof individual explicit and tacit knowledge

Disseminate itwithin the organization

2. Knowledge Management(1) Concept and Technology of KM

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Knowledge Management Techniques

Document Management

Information Cre-ation, Sharing,

and Management

EnterpriseIntelli-gence

Leveraging organizational “know-how”Performance supportInteracting with operational data-basesBuilding expert networks

Capturing & distributing expert sto-riesReal-time information managementCommunication and collaborationNew content creation

Accessing and retrievingdocuments stored online

2. Knowledge Management(1) Concept and Technology of KM

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Knowledge Management Process (KMP)

Knowledge Creation

Knowledge Storage/Retrieval

Knowledge Transfer(Sharing)

KnowledgeApplication

2. Knowledge Management(2) Knowledge Management Process

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Knowledge Creation

■ Definition [Pentland, 1995]– Developing new content or replacing existing content within the organization’s tacit

and explicit knowledge

■ Four modes of Knowledge Creation [Nonaka, 1994]– Socialization, Externalization, Combination, Internalization

■ Organization’s “ba” [Nonaka and Konno, 1998]– Environments facilitating new knowledge creation– Common place or space for creating knowledge

Type of baCorrespond-

ing modeExplanation

Originating ba SocializationCommon place where individuals share experiences through face-to-face interactions

Interacting baExternaliza-

tion

Space where tacit knowledge is converted to explicit knowl-edge andshared through the process of dialogue and collaboration

Cyber ba Combination Virtual space of interaction

Exercising ba Internalization Space for active and continuous individual learning

2. Knowledge Management(2) Knowledge Management Process

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Knowledge Storage/Retrieval

■ Definition [Stein and Zwass, 1995]– Collective or organizational memory; the means by which knowledge from the past,

experience, and events influence present organizational activities

■ Necessity [Argote et al., 1990; Darr et al., 1995]– While organizations create knowledge and learn, they also forget

(i.e., do not remember or lose track of the acquired knowledge)

■ Types of Organizational Memory [El Sawy et al., 1996; Stein and Zwass, 1995]

■ Effects of Knowledge Storage

Semantic Episodic

• General, explicit, and articulated knowledge• e.g., organizational archives of annual reports

• Context-specific and situated knowledge• e.g., specific circumstances of organizational decisions and their outcomes, place, and time

Positive Negative

• Facilitating implementation of the change• Storing and reapplying workable solutions in the for of standards and procedures→ Avoiding waste of resources from previous work

• Individual level: Possibility of decision-making bias • Organizational level: Possibility of maintaining the status quo by reinforcing single loop learn-ing

2. Knowledge Management(2) Knowledge Management Process

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Knowledge Transfer

■ Definition– Process of transferring knowledge

to locations where it is needed and can be used

■ Driving Force– Communication processes– Information flows

■ Five Elements ofKnowledge Transfer[Gupta and Govindarajan, 2000]

1) Perceived valueof the source unit’s knowledge

2) Motivational dispositionof the source

3) Existence and richnessof transmission channels

4) Motivational dispositionof the receiving unit

5) The absorptive capacityof the receiving unit

Fig 1. Knowledge Transfer among Individuals in a Group

2. Knowledge Management(2) Knowledge Management Process

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Knowledge Application

■ Definition– Integration of knowledge to create organizational capability

■ Importance of Knowledge Application– Source of competitive advantage resides in the application of the knowledge,

rather than in the knowledge itself

■ Three Primary Mechanisms [Grant, 1996b]1) Directives• Specific set of rules, standards, procedures, and instructions developed through the conversion of

specialists’ tacit knowledge to explicit and integrated knowledge for efficient communication to non-specialists [Demsetz, 1991]

2) Organizational routines• The development of task performance and coordination patterns• Interaction protocols• Process specifications• Allowing individuals to apply and integrate their specialized knowledge without articulation or com-

munication• Relatively simple or highly complex

(e.g. organizing activities based on time-patterned sequences such as an assembly line / a cockpit crew flying a large passenger airplane)

3) Self-contained task teams• Solving problems in situations where task uncertainty and complexity prevent

the specification of directives and organizational routines

2. Knowledge Management(2) Knowledge Management Process

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Knowledge Management System (KMS)

■ Definition– A class of information systems applied to managing organizational knowledge

■ Necessity of KMS– Reliance of knowledge management on IT as an important enabler

■ Characteristics of KMS– Major strategic use of IT – Managing organizational learning and know-how– Helping knowledge workers create, organize, and make available important knowledge– Making knowledge available wherever and whenever it is needed

■ Common Applications of IT to KM– Coding and sharing best practices: internal benchmarking– Creation of corporate knowledge directories: map internal expertise– Creation of knowledge networks: online forums for discussions

3. Knowledge Management System

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KMP & IT

Knowledge Manage-

ment Process

Knowledge Cre-ation

Knowledge Stor-age/Retrieval

Knowledge Trans-fer

Knowledge Appli-cation

Supporting In-formation

Technologies

• Data mining• Learning tools

• Electronic bulletin boards• Knowledge reposi-tories• Databases

• Electronic bulletin boards• Discussion forums• Knowledge directo-ries

• Expert systems•Workflow systems• Know

IT Enables

• Combining new sources of knowl-edge• Just in time learn-ing

• Support of individ-ual and organiza-tional memory• Inter-group knowl-edge access

•More extensive in-ternal network•More communica-tion channels available• Faster access to knowledge sources

• Knowledge can be applied in many lo-cations•More rapid applica-tion of new knowl-edge through work-flow automation

Platform Technologies

Groupware and communication technologies

INTRANETS

■ Knowledge Management Processes and the Potential Role of IT

4. Knowledge Management & IT

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Knowledge Perspectives & KM & KMS

Perspectives Definition of KnowledgeImplications for Knowledge

ManagementImplications for Knowledge

Management Systems

Knowledge vis-a-vis Data and

informationPersonalized Information

Exposing individuals to poten-tially useful information and fa-cilitating assimilation of infor-mation

Extending toward helping in user assimilation of information

State of mindThe State of Knowing and Un-derstanding

Enhancing individual’s learning and understanding through pro-vision of information

Providing access to sources of knowledge rather than knowl-edge itself

ObjectAn Object to be stored and ma-nipulated

Building and managing knowl-edge stocks

Gathering, storing, and transfer-ring knowledge

Process A Process of Applying ExpertiseKnowledge flows and the process of creation, sharing, and distributing knowledge

Providing link among sources of knowledge to create wider breadth and depth of knowl-edge flows

Access to In-formation

A Condition of access to infor-mation

Organized access to and re-trieval of content

Providing effective search and retrieval mechanisms for locat-ing relevant information

Capability The Potential to influence actionBuilding core competencies and understanding strategic know-how

Enhancing intellectual capital by supporting development of individual and organizational competencies

■ Knowledge Perspectives and Their Implications

4. Knowledge Management & IT

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Communities of Practice (CoP) (1/2)

■ Definition of CoP– Groups of people informally bound together by shared expertise and passion in free-

flowing, creative ways that foster new approaches to problems• Engineers engaged in deep-water drilling• Consultants who specialize in strategic marketing• Frontline managers in charge of check processing at a large commercial bank

■ Purposes of CoP– To develop members’ capabilities and to build and exchange knowledge

■ Functions of CoP– Driving strategy– Generating new lines of business– Solving problems– Promoting the spread of best practices– Developing people’s professional skills– Helping companies recruit and retain talent

5. Communities of Practice

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Communities of Practice (CoP) (2/2)

■ Reasons Why CoP aren’t More Prevalent– Recently established term– Only several dozen forward-thinking companies trying to “install” or nurture them– CoP’s characteristic that it is not particularly easy to build and sustain them or to inte-

grate them with the rest of organization

■ Way to successfully Nurture CoP

5. Communities of Practice

Bring the right People together

Provide an Infrastructure where communities can

thrive

Evaluate the Communi-ties’ value in nontradi-

tional ways The effects of CoP are often delayed

Results generally appear in the work of teams and businesses, not in the CoP

The best way to evaluate CoP is lis-tening to members’ stories, which can clarify the complex relationships among activities, knowledge, and performance

CoP are vulnerable because they lack the legitimacy – and the budgets – of established departments

One way to strengthen CoP is to pro-vide them with official sponsors and support teams

The task is to identify such groups and help them come together as CoP

Defining a community’s domain makes members feel personally con-nected to the group’s area

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Reference

■ O’Brien & Marakas, “Introduction to Information Systems – Sixteenth Edition”, McGraw – Hill, Chapter 2

■ Maryam Alavi and Dorothy E. Leidner, “Review: Knowledge Management and Knowledge Manage Systems: Conceptual Foundations and Reasarch Issues”,MIS Quarterly Vol.25 No.1, pp.107-136/March 2001

■ Etienne C. Wegner and William M. Snyder, “Communities of Practice: The Organizational Frontier, Harvard Business Review, January-February 2000

■ “What is knowledge management? definition and meaning”, BusinessDictionary.com