1. Understanding Knowledge Lecture One – Part II

2. Chapter 1: Understanding Knowledge 1-2 Review of Last Lecture  What is Knowledge Management (KM)?Knowledge Management  What are the driving forces?driving forces  Role of KM in today’s organization  What is Knowledge Management System (KMS)?Knowledge Management System  Classification of Knowledge Management Systems  Effective Knowledge Management

3. Chapter 1: Understanding Knowledge 1-3 In this Lecture  Basic Knowledge-related Definitions  Data, Information and Knowledge  Data Processing versus Knowledge-based Systems  Types of Knowledge  What makes someone an expert (knowledge worker)?

4. Chapter 1: Understanding Knowledge 1-4 Basic Knowledge-Related Definitions Common Sense Fact Heuristic Knowledge Intelligence

5. Chapter 1: Understanding Knowledge 1-5 Basic Knowledge-Related Definitions Common Sense Inborn ability to sense, judge, or perceive situations; grows stronger over time Fact Heuristic Knowledge Intelligence

6. Chapter 1: Understanding Knowledge 1-6 Basic Knowledge-Related Definitions Common Sense Inborn ability to sense, judge, or perceive situations; grows stronger over time FactA statement that relates a certain element of truth about a subject matter or a domain Heuristic Knowledge Intelligence

7. Chapter 1: Understanding Knowledge 1-7 Basic Knowledge-Related Definitions Common Sense Inborn ability to sense, judge, or perceive situations; grows stronger over time FactA statement that relates a certain element of truth about a subject matter or a domain HeuristicA rule of thumb based on years of experience Knowledge Intelligence

8. Chapter 1: Understanding Knowledge 1-8 Basic Knowledge-Related Definitions Common Sense Inborn ability to sense, judge, or perceive situations; grows stronger over time FactA statement that relates a certain element of truth about a subject matter or a domain HeuristicA rule of thumb based on years of experience KnowledgeUnderstanding gained through experience; familiarity with the way to perform a task; an accumulation of facts, procedural rules, or heuristics Intelligence

9. Chapter 1: Understanding Knowledge 1-9 Basic Knowledge-Related Definitions Common Sense Inborn ability to sense, judge, or perceive situations; grows stronger over time FactA statement that relates a certain element of truth about a subject matter or a domain HeuristicA rule of thumb based on years of experience KnowledgeUnderstanding gained through experience; familiarity with the way to perform a task; an accumulation of facts, procedural rules, or heuristics IntelligenceThe capacity to acquire and apply knowledge

10. Chapter 1: Understanding Knowledge 1-10 Data, Information, and Knowledge  Data: Unorganized and unprocessed facts; static; a set of discrete facts about events  Information: Aggregation of data that makes decision making easier  Knowledge is derived from information in the same way information is derived from data; it is a person’s range of information

11. Chapter 1: Understanding Knowledge 1-11 Relationship between data, information and Knowledge Information Data ZeroLow Medium High Very High Value Knowledge

12. Chapter 1: Understanding Knowledge 1-12 An illustration ZeroLowMediumHighVery High Value Information Data H T H T T H H H T H … T T T H T p H = 0.40 p T = 0.60 R H = +$10 R T = -$8 n H = 40 n T = 60 EV = -$0.80 Knowledge Counting p H = n H /(n H +n T ) p T = n T /(n H +n T ) EV=p H R H + p T R T

13. Chapter 1: Understanding Knowledge 1-13 Relating Data, Information, and Knowledge to Events Knowledge InformationData Information System Decision Events Use of information Knowledge

14. Chapter 1: Understanding Knowledge 1-14

15. Chapter 1: Understanding Knowledge 1-15 Types (Categorization) of Knowledge  Shallow (readily recalled) and deep (acquired through years of experience)  Explicit (already codified) and tacit (embedded in the mind)  Procedural (repetitive, stepwise) versus Episodical (grouped by episodes or cases)

16. Chapter 1: Understanding Knowledge 1-16 Explicit and Tacit Knowledge  Explicit (knowing-that) knowledge: knowledge codified and digitized in books, documents, reports, memos, etc.  Tacit (knowing-how) knowledge: knowledge embedded in the human mind through experience and jobs

17. Chapter 1: Understanding Knowledge 1-17 Illustrations of the Different Types of Knowledge

18. Chapter 1: Understanding Knowledge 1-18 What makes someone an expert?  An expert in a specialized area masters the requisite knowledge  The unique performance of a knowledgeable expert is clearly noticeable in decision-making quality  Knowledgeable experts are more selective in the information they acquire  Experts are beneficiaries of the knowledge that comes from experience

19. Chapter 1: Understanding Knowledge 1-19 Expert’s Reasoning Methods  Reasoning by analogy: relating one concept to another  Formal reasoning: using deductive or inductive methods  Case-based reasoning: reasoning from relevant past cases

20. Chapter 1: Understanding Knowledge 1-20 Deductive and inductive reasoning exact facts and exact conclusions  Deductive reasoning: exact reasoning. It deals with exact facts and exact conclusions Deductive reasoning general conclusion  Inductive reasoning: reasoning from a set of facts or individual cases to a general conclusion Inductive reasoning

21. Chapter 1: Understanding Knowledge 1-21 Human’s Learning Models  Learning by experience: a function of time and talent  Learning by example: more efficient than learning by experience  Learning by discovery: undirected approach in which humans explore a problem area with no advance knowledge of what their objective is.

22. Chapter 1: Understanding Knowledge 1-22 End of Lecture One

23. Chapter 1: Understanding Knowledge 1-23 You’ve just been hired by Woolworth and have been asked to bag groceries for customers…. How would you do this?

24. Chapter 1: Understanding Knowledge 1-24 A classic example of deductive reasoning, given by Aristotle, isAristotle  All men are mortal. (major premise)  Socrates is a man. (minor premise)  Socrates is mortal. (conclusion)

25. Chapter 1: Understanding Knowledge 1-25 The wheel is round. (Or, all wheels I have seen are round) The bird flies. (Or, all birds I have seen could fly) to infer general propositions like: All wheels are round. All birds can fly.

26. Chapter 1: Understanding Knowledge 1-26 What is Knowledge Management?  Knowledge management (KM) may be defined simply as doing what is needed to get the most out of knowledge resources.  Related to the concept of intellectual capital (both human and structural).  KM focuses on organizing and making available important knowledge, wherever and whenever it is needed.

27. Chapter 1: Understanding Knowledge 1-27 Forces Driving Knowledge Management  Increasing Domain Complexity  Accelerating Market Volatility  Intensified Speed of Responsiveness  Diminishing Individual Experience

28. Chapter 1: Understanding Knowledge 1-28 What is Knowledge Management “Systems” ? mechanisms  Social/Structural mechanisms (e.g., mentoring and retreats, etc.) for promoting knowledge sharing. information technologies  Leading-edge information technologies (e.g., Web-based conferencing) to support KM mechanisms. synergy  Knowledge management systems (KMS): the synergy between social/structural mechanisms and latest technologies.