1. CHAPTER 9
Knowledge Management

2. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

3. 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.
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4. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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.
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5. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
Knowledge Management
Helps organizations
Identify
Select
Organize
Disseminate
Transfer
Important 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

6. must be exchangeable among persons, and
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

7. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

8. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

9. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

10. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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.
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11. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

12. Data, Information and Knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
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13. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

14. 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

15. 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

16. 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

17. 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

18. 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

19. How Core Competency is Linked to Explicit and Tacit Knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
Copyright 2001, Prentice Hall, Upper Saddle River, NJ

20. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

21. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

22. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

23. 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

24. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

25. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

26. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

27. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
Cyclic Model of KM
Capture
Knowledge
Create Knowledge
Refine
Knowledge
Disseminate
Knowledge
Store
Knowledge
Manage
Knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
Copyright 2001, Prentice Hall, Upper Saddle River, NJ

28. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

29. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

30. 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

31. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

32. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
KM Development
Identify the problem
Prepare for change
Create the team
Map out the knowledge
Create a feedback mechanism
Define the building blocks
Integrate existing information systems
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
Copyright 2001, Prentice Hall, Upper Saddle River, NJ

33. Strategies for Successful KM Implementation
Establish a KM methodology
Designate a pointperson
Empower knowledge workers
Manage customer-centric knowledge
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

34. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
More Strategies
Foster collaboration and innovation
Learn from best practices
Extend knowledge sourcing
Interconnect communities of expertise (communities of practice)
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

35. KM Methods, Technologies, and Tools
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

36. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

37. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

38. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

39. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

40. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

41. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
KM Failure Causes
Unclear definition of knowledge
Overemphasis on knowledge stock, not flow
Belief that knowledge exists outside people’s heads
Not recognizing the importance of managing knowledge
Failure to manage tacit knowledge
Decision Support Systems and Intelligent Systems, Efraim Turban and Jay E. Aronson, 6th edition.
Copyright 2001, Prentice Hall, Upper Saddle River, NJ

42. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
More Failure Causes
Failure to disentangle knowledge from its uses
Downplaying reason and thinking
Focusing on the past and present, not the future
Failure to recognize the importance of experimentation
Substituting technology contact for human interface
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

43. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

44. 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

45. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

46. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

47. Knowledge Management Key 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

48. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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

49. Copyright 2001, Prentice Hall, Upper Saddle River, NJ
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