0. INTRODUCTION TO KNOWLEDGE MANAGEMENT
OCMT
KNOWLEDGE MANAGEMENT
UNIT I
INTRODUCTION TO KNOWLEDGE MANAGEMENT
Dr Uday

1. UNIT I - INTRODUCTION TO KNOWLEDGE MANAGEMENT Learning objectives
Meaning and definition
Basic terminology: Data, information and knowledge
Characteristics of knowledge
Types of knowledge: Explicit and tacit
Difference between explicit and tacit knowledge
Concept of knowledge management
Benefits of knowledge management
Forces driving knowledge management
Intellectual capital: Types
Knowledge management system cycle

2. 1. Knowledge Management: Meaning and Definition
Knowledge Management (KM) is a process of acquiring, creating and sharing knowledge in order to achieve the organizational objectives by making the best use of the knowledge.
KM is a group of systems and practices for identifying, capturing, storing and disseminating information

3. 2. Basic terminology: Data, Information and Knowledge
Knowledge Management
4/27/2017
2. Basic terminology: Data, Information and Knowledge
Old Py
data
information
knowledge
wisdom
Collection of facts, measurements,
statistics
Organized data,
Contextual, relevant,
actionable information
J. Goho

4. 3. Characteristics of knowledge
Explicitness
Codifiability
Teachability
Knowledge Specificity
careful thoroughness of detail ; leaving nothing merely implied
Arranged in systematic collection
suitability for use in teaching
Specific knowledge possessed

5. 4. Types of Knowledge: Explicit and Tacit
Explicit: Explicit knowledge is the knowledge that is codified, recorded, or actualized into some form outside of the head
Eg.: Books, periodicals, journals, maps, photographs, audio-recordings, web pages, websites, portals
Tacit: Tacit knowledge is the knowledge that is available from experience and insight, not in a recorded form, but in our heads and intuition.

6. 5. Explicit and Tacit: Differences
Knowledge Management
4/27/2017
5. Explicit and Tacit: Differences
Documented information that can facilitate action.
Know-how & learning embedded within the minds people.
Explicit knowledge
Formal or codified
Documents: reports, policy manuals, white papers, standard procedures
Databases
Books, magazines, journals (library)
Tacit (Implicit) knowledge
Informal and un-codified
Values, perspectives & culture
Knowledge in heads
Memories of staff, suppliers and vendors
J. Goho

7. 6. Concept of Knowledge Management
There are two general types of information, explicit and tacit.
Tacit and Explicit Knowledge often conflict.
Not all information is valuable.
Need to recognize how people
communicate and share information
and knowledge
“I know that’s what the manual says, but this is how we really do it”
The explosion of communication modalities means that you need a triage function.
People know more than what they say, and they say more than what they write down.

8. 7. Benefits of KM Leveraging core business competencies
Accelerating innovation and time to market
Improving cycle times and decision making
Strengthening organizational commitment
Building sustainable competitive advantage

9. 8. Forces driving KM Increasing Domain Complexity
Accelerating Market Volatility
Intensified Speed of Responsiveness
Diminishing Individual Experience

10. Forces driving KM: Summary
1. Increasing Domain Complexity: Intricacy of internal and external processes, increased competition, and the rapid advancement of technology all contribute to increasing domain complexity. 2. Accelerating Market Volatility: The pace of change, or volatility, within each market domain has increased rapidly in the past decade. 3. Intensified Speed of Responsiveness: The time required to take action based upon subtle changes within and across domains is decreasing. 4. Diminishing Individual Experience: High employee turnover rates have resulted in individuals with decision-making authority having less tenure within their organizations than ever before.

11. Increasing Domain Complexity
Complexity of the underlying knowledge domains is increasing.
Thus, complexity of the knowledge required to complete a specific business process task has increased as well.
Intricacy of internal and external processes, increased competition, and the rapid advancement of technology all contribute to increasing domain complexity.
Example: New product development now typically requires:
- not only brainstorming sessions by freethinking product designers
- but also partnership of inter-organizational teams representing many
various functional subunits (finance, marketing, engineering, …)
Professional recruiters increasingly emphasize not just excellent educational and professional qualifications, but also have outstanding communication and team collaboration skills…
enabling them to share their knowledge for the benefit of the organization.

12. Accelerating Market Volatility
The pace of change, or volatility, within each market domain has increased rapidly in the past decade.
Market and environmental influences can result in overnight changes in an organization.
Corporate announcements of a missed financial quarterly target could send a company’s capitalization into a downward spiral.
- Along with their entire industry, sometimes!
Stock prices have become increasingly volatile in recent years
- A result of “day trading” phenomenon (sharp increase in
nonfinancial professionals who are making a living from
exploiting steep market fluctuations).

13. Intensified Speed of Responsiveness
The time required to take action based upon subtle changes within and across domains is decreasing.
Rapid advances in technology is continually changing the decision-making landscape.
- Decisions must be made and implemented quickly –
otherwise the window of opportunity closes.
Example: hotel booking business
- Yesterday… low-tech…
 customer makes a request
 individual sales representatives return to the office
 discuss the opportunity with their manager
 draft a proposal
 mail the proposal to the client
 client accepts or rejects the offer
- Today… with online auctioning/bidding markets…
 hotel manager: “should I book a $200 room for the bid offer of $80 and fill the room,
or risk not accepting the bid hoping to get a walk-in customer that will pay the
$200?”
 manager only has minutes after a bid offer to make the decision!

14. Diminishing Individual Experience
High employee turnover rates have resulted in individuals with decision-making authority having less tenure within their organizations than ever before.
• Example: Fortune 300 CEOs
 Proportion below age 50:
-1998: 5%
-2000: 15%
 Median tenure in office:
-1998: 7 years
-2000: 5 years

15. 9. Intellectual Capital: Types
Human capital
The body of knowledge the company possesses
Knowledge in the minds of Microsoft and Yahoo’s software
developers, researchers, academic collaborators, business
managers, …
Also, knowledge in the minds of vendors and customers
2. Structural capital
Everything that remains after the employees go home
Copyrights, customer files, business process software, databases, software manuals, trademarks, organizational structures, …
In other words, organizational capability
Intellectual capital is ubiquitous – but there are still no standard tools to manage it as an asset!

16. 10. Knowledge Management System Cycle
Creates knowledge through new ways of doing things
Identifies and captures new knowledge
Places knowledge into context so it is usable
Stores knowledge in repository
Reviews for accuracy and relevance
Makes knowledge available at all times to anyone
Disseminated knowledge becomes tacit to become explicit again in the cycle.
Create
Knowledge
Capture
Disseminate
Refine
Manage
Store