Knowledge Management 1 Dave Owens T.J. Vogt Chatchawan Wongwattanakit “OT” Yueping Wang GROUP 5.

Knowledge Management

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Dave Owens

T.J. Vogt

Chatchawan Wongwattanakit “OT”

Yueping Wang

GROUP 5


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What is Knowledge Management?

“Knowledge Management is a waste of money. Organizations spend billions of dollars in their efforts to cut a corner or two resulting in just a fraction of savings”

Richard Sapio CEO, Mutual Capital Alliance

(8)


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Agenda

KnowledgeManagement

Key Concepts

KM in the Army Implementation &Maintenance

KM in China

What is KM?Questions/Discussion

Other KM CasesPwC, LRC

Summary


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What is Knowledge Management?Common Knowledge Management Definitions

(just a few of the many)Discipline within an organization that ensures that the intellectual capabilities of that organization are shared, maintained and institutionalized The process of systematically and actively managing and leveraging the stores of knowledge in an organization

The way a company stores, organizes and accesses internal and external information. Refers to an entire integrated system for accumulation, integration, manipulation, and access of data across multiple organizations

(9),(10)


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Knowledge Management is the explicit

and systematic management of vital

knowledge - and its associated processes

of creation, organization, diffusion, use and

exploitation.

What is Knowledge Management?

(9),(10)


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Tacit Knowledge Explicit Knowledge

Knowledge

Information

Data

Tacit– This type of

knowledge exists in people’s heads, not articulated or documented

Explicit– This type of knowledge

can be» Processed by information

systems

» Codified and recorded

» Archived and protected

Knowledge Hierarchy


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Knowledge assets have often become more important to companies than financial and physical assets and are often the only way for a company to distinguish itself from its competitor & gain competitive advantage

Lost knowledge given the enormous of baby boomers that will be changing jobs or retiring in next few years cause productivity cost of an employee leaving 85% of their base salary due to their replacement’s mistakes, lost knowledge and lost skill( Beazley et al, 2002)

Relate to the concept of knowledge half-life, from which it is found that knowledge reaches obsolescence, on average, in 500 days, but can be much quicker in some areas- Lost knowledge obviously has a cost, estimated that $115 billion sits idle in lost knowledge affiliated with production technologies

- An astounding example of this is the loss of the original computer source code, written in the 1950’s, that spawned the Y2K software crisis, has cost businesses worldwide an estimated $1 trillion (Petch, 1998)

KM Significance

(25)


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People Knowledge Teams - multi-disciplinary, cross-functional Learning Organization - personal/team/org development Corporate Initiatives – Chief Knowledge Officer

Systems Knowledge Data-bases - experts, best practice Knowledge Centers - hubs of knowledge Technology Infrastructure - Intranets, Domino

Document Management

People and Systems

(9),(12)


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Sharing existing knowledge“Knowing what you know”

Knowledge for Innovation“Creating and Converting”

Two Key Thrusts

(9)


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CreateProduct/Process

Innovation Cycle KM Cycle

KnowledgeRepository

Codify

Embed

Diffuse

IdentifyClassify

AccessUse/Exploit

Collect

Organize/Store

Share/Disseminate

Knowledge Cycle


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Customer Knowledge - the most vital knowledge Knowledge in Products - ‘smarts’ add value Knowledge in People - but people ‘walk’ Knowledge in Processes - know-how when

needed Organizational Memory - do we know what we

know? Knowledge in Relationships - richness and depth Knowledge Assets - intellectual capital

Seven Levers

(9)


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Implementing and Maintaining KM

KM

Who’s Responsible?

Why Implement KM?

IT’s Role in Implementing

Maintaining KMS

Strategy for Implementing


Why Implement KMS?

IBM, Oracle, Cisco– Measure intranet value at over $1 billion

BT, UK telecommunications company– Employee ideas have saved £100 million

Sodexho’s SuperSleuth– Cash reward for employees submitting

sales leads– Led to over $90 million in sales volume

13(20)


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Smaller companies, who often claim that they can’t afford to undertake KM activities, are wrong on two counts! 1.Knowledge is just as important, if not more so, to a smaller company trying to compete in the rapidly changing global marketplace. Smaller companies must capture, assimilate, and capitalize on every advantage they can find, including KNOWLEDGEKNOWLEDGE

2.Smaller firms have the advantages from Culture and Organizational structure in place that is much more conducive to implementing knowledge management effort such as type of environment, which is predicated more on social relationship, familiarity and trust between employees

A little Knowledge that acts is worth more than much knowledge that is A little Knowledge that acts is worth more than much knowledge that is idle.(Kahlil Gibran)idle.(Kahlil Gibran)

Common Misconceptions

(25)


Who’s Responsible?

Everyone:– Managers/Supervisors

» Leaders as knowledge champions

– The Knowledgeable» Not a problem of knowing, but of access

– End Users» Feedback» Psychological barriers

15(13), (14)


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Role of IT in Implementation

“The biggest contributor to this brilliant growth of the knowledge management system is information technology.”

Lee et al. also say, “...there are negative perspectives about information technology.”

According to a managing partner at a KM consultancy firm based in New York, “The biggest misconception that IT leaders make is that knowledge management is about technology...Usually people begin a KM project by focusing on the technology...But the key is people...”

(15),(16)


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Strategy for Implementing KM The MeCTIP model

(19)


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Strategy for Implementing KM

Macro-environment– External Factors

» Globalization» Technology» E-companies

(19)


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Strategy for Implementing KM Organizational Climate

– Structure» Formal Structures

Cross-functional project groups

Cross-discipline learning groups

» Informal Structures Grapevine/Underground Cliques

– Strategy/Goals– Culture

(19)

The difference between, “...what is formally agreed and what actually takes place.”


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Technical Climate– Infrastructure– Response to change

Resistance to change/Conflict– Listen to negative

feedback– Conflict leads to

improved ideas

(13),(19)


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Technical– System

Standardization– Compatibility– Usability

(13),(19)


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Informational– Info fatigue– Infofamine– Infoglut

» According to Lee et al, “...users do not know how to utilize effectively the vast pool of information.”

(16),(19)


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Personal– Knowledge roles– Motivation– Learning networks

(19)


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Maintaining KM Systems

Provide Adequate Access– Intranets– Classes

Psychological Barriers– Ook Lee study

» 103 questionnaires from Korean KMS users» 93 respondents were reluctant to say that a knowledge

management piece was not valid

(17)


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Use it or lose it– Cook compares KMS to draining battery

Share knowledge– Knowledge is individual power, not group power

Removing knowledge “constipation”– Crowded closet

(13)


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Incentives– Financial– Big Idea– Pub Money

Organizational Sociology– Know your audience

Be flexible– “No single recipe” for success

(13)


The Difference of Knowledge Management in US and CHINA

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Cultural Factors Impacting knowledge Management

Internationalization creates a need to know how peoples in different countries to apply knowledge management.

People from the United States and China have a distinctive prevailing decision style that reflects differences in cultural values

28(4)


Why they express happiness differently

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American Chinese

Extroverted, encouraged to express and to show feelings

Introverted , not encouraged to show emotions,

Emphasis is placed on the individual and independence. Society is a collection of individuals

Emphasis is placed on the society and the role of the person in the social fabric

Rules and Regulations are written broad but what is written is enforced very strictly

Rules and Regulations are written very strictly but enforcement is selective

The difference of American and Chinese in personal character

30(2), (3)


The different ways in deal with gift

Presents are usually opened in front of the giver

Presents are usually opened in private

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The difference of U.S. and CHINA in Knowledge management

U.S. CHINAView of knowledge

Explicit and measurable Largely tacit and contextual

Key assumption

Knowledge is mostly objective and can be made explicit

Knowledge includes both objective and subjective element

Knowledge management role

Knowledge workers capture, codify , and share knowledge from experience

Senior manager are responsible for knowledge management

Communication process

collection, distribution, reuse, and measurement of existing codified knowledge and information in whole organize

One-way flow of information (from superior to subordinate) and by

guanxi net

32(5)


“guanxi” in China

Social ties -- interaction frequency, degree of intimacy and trust

It’s not what you know, it’s who you know. Business guanxi (personal relationships in

Chinese market) Government guanxi (personal relationships

with government officials in different levels and bureaus).

33(5)


Could we combine two styles of

knowledge into an integral whole

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In the international work group, people need to know how to combine different knowledge into an integral whole. To achieve this goal we should understand the knowledge creation process

35(5)


The knowledge creation process

36(1)


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Knowledge Management in Practice


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PwC: The PricewaterhouseCoopers Law Firm & Law Department Service Group

The World’s largest professional service organization:

Service and Help general counsel and law firm executive management solve

complex business problems Measurably enhance their ability to build sustainable shareholder value Manage Risk Improve quality and performance by providing services based on quality and

integrity PwC includes the member firms of PricewaterhouseCoopers International Ltd.,

PricewaterhouseCoopers

(21)


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Helping corporate law departments and their outside counsel reduce their research costs and efficiently manage their legal knowledge for nearly 25 years

Remain the nation’s premier provider of outsourced legal research, KM, and compliance e-training services

Culturally committed to operational excellence Customer intimacy and product/service innovation

LRC: Legal Research Center

(21),(22)


The Study

In 2003, Florida Legal Technology Institute Study Reviewed the marriage between PwC and LRC,

catalog the advantages of KM in PwC law firms and departments

KM Study with 348 legal professionals around the world (law departments and outside law firms)

+ =40


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PwC and LRC KM Study Results Announced

70% of law firm respondents and 63% of Law Dept. respondents reported having KMS in place indicated that they use KMS either “frequently” or “all the time”

The survey indicated that their KM program either meets or exceeds their targeted ROI

85% of the law firms

78% of the law dept. The Avg. budget to support KM initiative was reported at 4.7% of the total

legal spend. Quality, speed and cost containment are what a majority of legal

professionals are seeking from their KM solution providers. The most common standards to measure the value of KM programs are

productivity enhancement and cost reduction.

(21),(22)


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Legal professionals are increasingly cognizant of the value of KMS that retrieve information from multiple sources and locations. 82% said they would be more efficient if their KM solution could access legal knowledge in multiple formats from multiple resources.

The majority of legal professionals surveyed believe that research redundancy, the reduction of which is a key goal of KM, is caused by lack of communication inside the firm or law dept., and by the lack of incentives to motivate knowledge reuse and eliminate redundant research

“With the ever – increasing volume and types of information available, KM is With the ever – increasing volume and types of information available, KM is more critical than ever. This study provides compelling data on the value more critical than ever. This study provides compelling data on the value and important of KMS. KM is an essential ingredient for efficient and and important of KMS. KM is an essential ingredient for efficient and effective delivery and management of legal services.”effective delivery and management of legal services.” (Jonathan Bellis)

(21),(24)

PwC and LRC KM Study Results Announced (cont.)


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Charles Lucier, Chief Knowledge Officer at International management and technology consulting firm said up to 84% of all KM programs fail.

A global bank spanning 70 countries abandoned their KMS before it was ever rolled out. A European manufacturing company successfully implemented a KMS, but it was rarely used. A pharmaceutical company implemented a KMS that could not be easily adapted to specific context of each work group

(21), (26)

When Knowledge adds up to nothing


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Many companies find that their departments have different takes on what the project means or what it is trying to achieve

Many KM program leaders are ignorant when it comes to the “complexity of these micro-political processes”

Even though some firms are implementing KM programs with support from senior management, it can still fail as a result of lack of support

Some organizations do not achieve adequate ROI from KM as they are failing to measure effectively

Many companies professed to suffer from “information overload” and a shortage of time with which to both share and utilize knowledge

Many firms rely too heavily on consultants who position themselves in highly influential positions within the organization

Many initiatives fails as they only enjoy superficial support from the top management

(21)

Why Knowledge Can add up to nothing --


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Evidence shows that, despite the potential pitfalls and seemingly high failure rate, companies are still willing to invest in KM. Why? Because there are big benefits there for taking.

The results of several surveys met: 87% of European business directors believe they could enhance their

company’s competitiveness with improved KM and 76% believe Building + Sharing Knowledge is important for their company.

Study of 500 firms conducted by KPMG illustrated 80% of senior executives feel that KM is strategic to their organization and 78% feel they have missed business opportunities.

Hoffmann-Roche, the Swiss pharmaceutical firm, has estimated that it saves over $1 million per day due to its KM activities

BP Amoco attributed $260 million in bottom-line savings to a KM program

(23)

Knowledge Management Success


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Energy firm Schlumberger Ltd. reported an estimated 668% ROI on a $72 million investment in KM over a period of six years

Chevron Corporation estimates that it saved an initial $150 million, plus at least another $20 million annually by instituting a best practices program

Teltech Communications, a firm that specializes in aiding companies to implement knowledge management programs, reports that its clients enjoy an average ROI of 12:1 for their efforts

In a survey carried out by Information Week , IT executives said they considered KM a strategic initiative of high importance, and KM spend is to climb at 62% of the IT institutions surveyed

Hewlett-Packard’s knowledge efforts aimed at customer service have reduced average call times by two-thirds and the cost per call has fallen by 50 percent

(21),(23),(25)

Knowledge Management Success (Cont.)


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Keys to successful KM

As is the case with many new practices in workplace:

Getting employees on board from day one and making sure they realize exactly how KM program is to impact on their routines and bring benefits for the organization as a whole is pivotal

Make sure KM becomes a fundamental aspect of the way you do business

Be sure your KM implementation is less about reporting and more about sharing knowledge

“Knowledge is a company asset, hidden, until the knowledge worker releases it. The key to generating the best returns from your KM Program is to implement a well-planned methodology and ensure that your organization facilitates this release of information.”-Mike Bagshaw, Development Director at Trans4mation Training Ltd,

(24)


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Army Knowledge Management


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“It is the Army’s goal to deliver critical capabilities to the warfighter, and oversee the development of a knowledge-based workforce”

LTC William Nelson Deputy Director GA & CKO

(Governance, Acquisition and Chief Knowledge Office) Army Office of CIO/G-6


(7)


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Development of Army IM/IT and KM Coordination between Combatant Commands and

Joint Staff, components and agencies, etc… Serves as the focal point for management and

integration with IM/IT Oversees the acquisition of IM/IT and KM

solutions

(7)


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KM is a Journey, not a destination.KM is a Journey, not a destination. (Warick Holder)

Knowledge resides in the users and not in the collection.Knowledge resides in the users and not in the collection.

(Y. Maholtra)

Successful knowledge transfer involves neither Successful knowledge transfer involves neither computerscomputers nor nor documentsdocuments but rather but rather interactionsinteractions between between peoplepeople!!!!

(Mason & Mitroff; 1973)


Summary

Key Concepts of KM– Explicit Knowledge– Tacit Knowledge

Implementation, Maintenance China KM cases, advantages and disadvantages Army KM

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Questions

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Sources(1) Communications of the ACM ,Volume 48, Number 4 (2005), Pages 73-76 ,Knowledge management in China, Glen R. Burrows, Damon L. Drummond, Maris G. Martinsons

(2) KNOWLEDGE MANAGEMENT OF HIGH-TECH FIRMSChung-Ming Lau, Yuan Lu and Shige Makino;The Chinese University of Hong Kong

(3) Xiaohong Chen ;State Development Research Center, PRC ;Ryh-Song Yeh ,Peking UniversitySOURCE: http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN020318.pdf

(4) Inkpen, A.C. 2000. Learning through joint ventures: A framework of knowledge acquisition. Journal of Management Studies, 37: 1019-1043.

(5) Hoskisson, R.E., Eden, L., Lau, C. M., & Wright, M. 2000. Enterprise strategies in emerging economies. Academy of Management Journal, 43: 249-267.

(6) Army Regulation 25-1 “Army Information Management”

(7) LTC William Nelson, Deputy Director GA&CKO, Office of Army G6, interviewed by phone by Dave Owens, 15 October 2007.

(8) Richard Sapio, CEO of Mutual Capital Alliance, interviewed in person by Dave Owens, 22 September 2007

(9) Skyrme, David J, “Developing a Knowledge Strategy” STRATEGY, January 1998, http://www.skyrme.com/pubs/knwstrat.htm

(10) Corral, Sheila, “Are We in the Knowledge Management Business?” ARIADNE, February 1999, http://ariadne.ac.uk/issue18/knowledgemgt/


Sources

(11) KNOVA, “10 Principles for Knowledge Management Success”, Gartner INC., April 2003

(12) Ferran-Urdaneta, Carlos, “Organizational Structures for Knowledge Management”, Boston University Systems Research Center, 1999

(13) Cook, P. (1999). I heard it through the grapevine: making knowledge management work by learning to share knowledge, skills and experience. Industrial and Commercial Training , 31 (3), 101-105.

(14) Gottschalk, P., & Holgersson, S. (2006). Stages of knowledge management technology in the value shop: the case of police investigation performance. Expert Systems , 23 (4), 183-193.

(15) Kulkarni, U. R., Ravindran, S., & Freeze, R. (2006). A Knowledge Management Success Model: Theoretical Development and Empirical Validation. Journal of Management Information Systems , 23 (3), 309-347.

(16) Lee, H.-S., Chae, Y.-I., & Suh, Y.-H. (2004). Knowledge Conversion and Practical Use with Information Technology in Korean Companies. Total Quality Management , 15 (3), 279-294.

(17) Lee, O. (2006). Psychological Barriers to Maintaining Knowledge Management Systems. CyberPsychology & Behavior , 9 (3), 367-368.

(18) Moffett, S., & McAdam, R. (2006). The Effects of Organizational Size on Knowledge Management Implementation: Opportunities for Small Firms? Total Quality Management , 17 (2), 221-241.


Sources

(19) Moffett, S., McAdam, R., & Parkinson, S. (2003). Technology and people factors in knowledge management: an empirical analysis. Total Quality Management , 14 (2), 215-224.

(20) Ward, T. (2007). Does Your Intranet Pay Its Way? SCM , 11 (2), 10.

(21) “When knowledge adds up to nothing: Why knowledge management fails and what you can do about it”, Journal of Development and Learning in Organizations (2003), Vol. 17 Issue:1 Page: 32-35 (22) News & Legal Editors from Legal Research Center KM Study (2003) “Legal Knowledge Management Improves Quality and Speed of Service, Reduces Costs and Delivers High ROI, According to Landmark PricewaterhouseCoopers”, Business Wire, June 9, 2003. (23) Braganza, A., Mollenkramer, G.J. (2002), “Anatomy of a failed knowledge management initiative: lessons from PharmaCorp’s experience”, Knowledge and Process Management (UK), Vol. 9 No.1,. (24) Storey, J., Barnett, E. (2000), “Knowledge management initiatives: learning from failure” Journal of Knowledge Management, Vol.4 No.2, .

(25) Yeldon, Eugene F., Synrad INC, Albers, James A., Pacific Lutheran University, Journal of Knowledge Management Practice, The Business Case for Knowledge Management, August 2004

(26) Chua, A., & Lam, W. (2005). Why KM projects fail: a multi-case analysis . Journal of Knowledge Management , 9 (3), 6-17.


Implementation

Knowledge Management 1 Dave Owens T.J. Vogt Chatchawan Wongwattanakit “OT” Yueping Wang GROUP 5.

Documents

Transcript of Knowledge Management 1 Dave Owens T.J. Vogt Chatchawan Wongwattanakit “OT” Yueping Wang GROUP 5.