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Knowledge Management

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Knowledge Management

Knowledge management (KM) is a process that helps organizations identify, select, organize, disseminate, and transfer important information and expertise that are part of the organization’s memory.

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Data, Information & Knowledge

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Knowledge Management

Knowledge is information that is contextual, relevant, and actionable. Tacit knowledge is usually in the

domain of subjective, cognitive, and experiential learning.

Explicit knowledge deals with more objective, rational, and technical knowledge.

5By Nonaka and Takeuchi, 1995

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Knowledge-based Economy

Rapid changes in the business environment cannot be handled in traditional ways.

Firms are much larger, with higher turnover and require better tools for collaboration, communication, and knowledge sharing.

Firms must develop strategies to sustain competitive advantage by leveraging their intellectual assets for optimum performance.

Managing knowledge is now critical for firms spread out over wide geographical areas, and for virtual organizations.

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Sharing Knowledge Some reasons people are reluctant to

share knowledge include; No skill in knowledge management techniques. Willing to share, but not enough time to do so. Don’t understand knowledge management and

benefits. Lack of appropriate technology. No commitment from senior managers. No funding for knowledge management. Culture does not encourage knowledge sharing.

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Organization Culture The ability of an organization to learn, develop

memory, and share knowledge is dependent on its culture. Culture is a pattern of shared basic assumptions.

Over time organizations learn what works and what doesn’t work. As the lessons become second nature, they become part of the organizational culture.

Generally when a technology project fails, it is because the technology does not match the organization’s culture.

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The Knowledge Management Cycle

1. Create knowledge

2. Capture knowledge

3. Refine knowledge

4. Store knowledge

5. Manage knowledge

6. Disseminate knowledge

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The Knowledge Management Cycle (cont.)

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Knowledge Repositories Databases. It is

possible to structure part of a knowledge repository as a database.

Data warehouses, large repositories of important data, can also be used for knowledge management, especially in conjunction with customer relationship management (CRM) systems.

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KM & Information TechnologiesThe KMS challenge is to identify and integrate

the following three technologies to meet the KM needs of an organization.

Communication technologies allow users to access needed knowledge, and to communicate with each other--especially with experts.

Collaboration technologies provide the means to perform group work.

Storage technologies use a database management system to capture, store and manage knowledge.

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Knowledge Management Benefits

Reduction in loss of intellectual capital when people leave the company

Reduction in costs by decreasing the number of times the company must repeatedly solve the same problem

Economies of scale in obtaining information from external providers

Reduction in redundancy of knowledge-based activities

Increase in productivity by making knowledge available more quickly & easily

Increase in employee satisfaction by enabling greater personal development and empowerment

Strategic competitive advantage in the marketplace

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Managerial Issues: Integration Since a KM system is an enterprise system, it must

be integrated with other enterprise and information systems in an organization.

The most important systems to integrate with are; Decision Support Systems Artificial Intelligence Databases and Information Systems Customer Relationship Management Systems Supply Chain Management Systems Corporate Intranets and Extranets