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This document provides an overview of knowledge management and knowledge workers. It discusses how knowledge workers are becoming increasingly important as tangible resources like land and physical labor matter less in modern organizations. Knowledge workers are those employed in fields like management, business, engineering, healthcare, education, arts, and media, and they comprise around 40 million of the US labor force. Highly knowledge-intensive organizations tend to be the fastest growing and most profitable. However, improving knowledge worker productivity remains a challenge despite its importance to economic success. The document outlines Peter Drucker's perspective that managing knowledge workers productively will be a major task of the 21st century knowledge economy.
This document provides an overview of knowledge management and knowledge workers. It discusses how knowledge workers are becoming increasingly important as tangible resources like land and physical labor matter less in modern organizations. Knowledge workers are those employed in fields like management, business, engineering, healthcare, education, arts, and media, and they comprise around 40 million of the US labor force. Highly knowledge-intensive organizations tend to be the fastest growing and most profitable. However, improving knowledge worker productivity remains a challenge despite its importance to economic success. The document outlines Peter Drucker's perspective that managing knowledge workers productively will be a major task of the 21st century knowledge economy.
This document provides an overview of knowledge management and knowledge workers. It discusses how knowledge workers are becoming increasingly important as tangible resources like land and physical labor matter less in modern organizations. Knowledge workers are those employed in fields like management, business, engineering, healthcare, education, arts, and media, and they comprise around 40 million of the US labor force. Highly knowledge-intensive organizations tend to be the fastest growing and most profitable. However, improving knowledge worker productivity remains a challenge despite its importance to economic success. The document outlines Peter Drucker's perspective that managing knowledge workers productively will be a major task of the 21st century knowledge economy.
1 Managing Intangible Resources and Knowledge Workers 02 2 Dynamics and Interconnected Nature of 21 st entury !lobe 0" # $orces s%a&ing t%e future and mega trends of knowledge economy 11 ' Managerial onsiderations for Internet ustomers and K()ased Marketing 1* * $ramework wit% New +tructure, +trategies and -e.ers of +trategy 2# / 0istorical +%ifts in World 1conomies and t%e Role of Knowledge and Intelligence 22 " +trategic or&orate 3ssets of #rd Millennium 4rgani5ation6 Knowledge %aracteristics #1 2 7ers&ecti.es of Knowledge Management and t%e $orces Dri.ing KM #" 8 Knowledge 0ierarc%y $rom Data and Information to Knowledge and Wisdom '* 10 19tracting !old from Data6 :nderstanding on.ersion of Data into Knowledge ** 11 :nderstanding Data for 3nalysis and Decision;7olicy Making /1 12 Knowledge 0ierarc%y Indi.idual .s< 4rgani5ation /* 1# Dimensions of 0uman Knowledge, =ree of Knowledge "# 1' Dimensions of and Multi&le >iews of KM in 4rgani5ations "" 1* 0ow KM Im&acts 4rgani5ations? 2/ 1/ =%ree +c%ools of =%oug%t and 3&&roac%es to KM6 1conomic +c%ool and K>3 8# 1" 1conomic +c%ool@ Management and Knowledge Metrics 8" 12 Measures of Intellectual a&ital 88 18 Knowledge Market Model and K>3 ase +tudy 10# 20 +.eibyAs Intelligent a&ital Management 111 21 +trategic 7ers&ecti.e of Knowledge and +trategic +c%ool 3&&roac% in KM 11# 22 +trategic +c%ool@ +tock, $low, and !rowt% +trategy in KM 118 2# =%e 4rgani5ational +c%ool of =%oug%t in KM 12# 2' Im&ortance of =acit and 19&licit Knowledge 12/ 2* +1I 7rocess and )3 for K< reation 122 2/ Knowledge +&iral and +ustained 4rgani5ational 3d.antages t%roug% +1I 7rocess 1#2 2" 1nablers of +1I 7rocess 1#8 22 7rocess 3&&roac% to KM and Info(om =ec%nology BI=C in KM +ystems 1'# 28 4rgani5ational Issues in Managing Knowledge Worker 1** #0 4.er.iew of KM +olutions and 7rocesses 1/2 #1 KM +ystems, +olutions, and Infrastructure 1/8 #2 Knowledge 3rc%itecture, Internet and 1(World 1"# ## or&orate Intranet, 19tranet, and 7ortal 1"2 #' KM +ystems and =ec%nical -ayers 12' #* KM +ystem and -ife ycle 3&&roac%@ on.entional .s< KM 122 #/ KM +ystem Dustification and $easibility Issues, Im&lementation Issues and Resistance 181 #" a&turing =acit Knowledge and 19&ertAs 1.aluation 182 #2 Knowledge 1licitation@ Data Mining and Knowledge odification Met%ods 201 #8 Knowledge +%aring and =ransfer +ystems 210 '0 or&orate Memory6 =y&es of Knowledge Re&ositories 212 '1 Knowledge +%aring +tructure and +er.ices, ulture and Knowledge ommunities 220 '2 Knowledge 3&&lication +ystems and RM 22/ '# Role of ommunities in -earning and 7roduct De.elo&ment 228 '' -earning 4rgani5ation 2#2 '* =%e $uture of Knowledge Management 2#" LESSON 1 MANAGING INTANGIBLE RESOURCES AND KNOWLEDGE WORKERS Knowing ignorance is strengt% Ignoring knowledge is sickness E -<=+: =%e !rowing Im&ortance of Knowledge and Knowledge Workers =angible resources like ru&ees, land;buildings, motors;mac%inery and manual;&%ysical labors are no doubt im&ortant to run a farm or a factory but all of t%ese tangible resources can be boug%t or borrowed< 4n t%e ot%er %and, brand image, re&utation, information, talent, and knowledge are some of t%e intangible resources reFuired for a modern organi5ation to sur.i.e and t%ri.e in t%e 21 st century global markets and t%ese intangible resources cannot be boug%t or borrowed< =%e rise of information and knowledge based work %as been foreseen for many years< 3utomation in $actories and farms in de.elo&ed economies for more t%an a century ago freed most of t%e workforce from %a.ing to &erform &%ysical labor< 4.er t%e last %alf(century, t%e ad.ent of com&uters and t%e 7er.asi.e &resence of information created a demand for workers w%o could &roduce t%e information in =%e first &lace, e9tracts meaning from it, and takes action on it< 4rgani5ations wit% a %ig% &ro&ortion of knowledge workers E letAs call t%em knowledge intensi.e 4rgani5ations E are t%e fastest(growing and most successful in t%e :nited +tates, +inga&ore $inland, +weden and ot%er leading economies, and %a.e generated most of t%ese economiesA growt% in t%e &ast ou&le of decades< =%e market .alue of many knowledge(intensi.e com&anies E w%ic% includes t%e MarketAs &erce&tion of t%e .alue of knowledge and knowledge workers E dwarfs t%eir book .alues, w%ic% includes only tangible assets? 1.en in so(called GindustrialH com&anies, knowledge is increasingly used to differentiate &%ysical goods and to fuel di.ersification into &roduct(related ser.ice< 3s 7rof< Iuinn %as &ointed out, %ig% &ro&ortions of workers in manufacturing firms Broug%ly 80 &ercent in +emiconductors, for e9am&leC ne.er touc% t%e manufacturing &rocess, but instead &ro.ide knowledge()ased ser.ices suc% as marketing, distribution, or customer ser.ice< ItAs already a&&arent t%at t%e firms wit% t%e %ig%est degree and Fuality of knowledge work tend to be t%e fastest(growing and most &rofitable< Microsoft, for e9am&le, is one of t%e most &rofitable 4rgani5ations in t%e %istory of t%e &lanet< 7%armaceutical firms not only &roduce so&%isticated and life( +a.ing drug treatments, t%ey also tend to %a.e %ig% &rofit margins< !rowt% industries generally tend to be t%ose wit% a %ig% &ro&ortion of knowledge workers< $ollowing categories of work can be &laced into t%e knowledge workers cam&@ J Management J )usiness and financial o&erations J +oft;0ard ware and electronic engineer J 3rc%itecture engineering J -ife, &%ysical, and social scientists J -egal &ersonnel J 0ealt% care &ractitioners J ommunity and social ser.ices J 1ducation, training, and library staff J 3rts, design, entertainment, s&orts, media< J +ystem Manager;3nalyst, 7roKect Manager =%e classification abo.e yields about #/ million knowledge workers in t%e :nited +tates alone, or 22 7ercent of t%e labor force< W%ile no classification sc%eme is &erfect Bfor e9am&le, &rofessional at%letes 3re included in t%e knowledge worker grou&< )ecause t%e :<+ go.ernment data lum&s t%em in wit% arts, Design, entertainment, and media workersC, itAs clear t%at most &eo&le in t%ese Kobs t%ink to earn for t%eir li.ing< Wit%in organi5ations, knowledge workers tend to be closely aligned wit% t%e organi5ationAs growt% 7ros&ects< Knowledge workers in management roles come u& wit% new strategies< Knowledge workers In RLD and engineering create new &roducts< Knowledge workers in marketing &ackage &roducts and +er.ices in ways t%ose a&&eals to customers< Wit%out knowledge workers t%ere would be no new &roducts and ser.ices, and no growt%< Knowledge Workers and t%e World 1conomy 7rof< Dr<7eter Drucker, w%o was t%e first &erson to describe knowledge workers to any substantial degree Bin %is 18*8 book -andmarks of =omorrowC, said as far back as 18/8 t%at@ G=o make knowledge work &roducti.e will be t%e great management task of 21st century, Kust as to make manual work &roducti.e was t%e great management task of t%e 20t% century< =%en in 188" Drucker went e.en furt%er out along t%e knowledge worker limb@ G=%e &roducti.ity of knowledge and knowledge workers will not be t%e only com&etiti.e factor in t%e world economy< It is, %owe.er, likely to become t%e decisi.e factor, at least for most industries in t%e de.elo&ed;de.elo&ing countries< W%y did Drucker E and w%y s%ould we E belie.e t%at knowledge workers and t%eir &roducti.ity were so im&ortant to t%e world economy? =%ere are a .ariety of reasons< $irst, t%ey are large and growing category of workers< If we canAt figure out %ow to Make more t%an a Fuarter of t%e labor force more &roducti.e, weAre going to %a.e &roblems wit% our economy o.erall< +econd, t%ey are com&arati.ely e9&ensi.e ty&e of worker t%at organi5ations em&loy, so itAs doubly s%ameful if t%eyAre not as &roducti.e as t%ey could be< =%ird, t%ey are keys to t%e growt% of many economies< 3gricultural and manufacturing work %as generally become commoditi5ed, and is mo.ing to t%e economies w%ere t%ey can be &erformed at t%e lowest cost< =%e only forms of agricultural or industrial work t%at sur.i.e in so&%isticated economies are t%ose in w%ic% a %ig% degree of knowledge %as been inKected E for e9am&le, in biotec%nology manufacturing, or in G&recision farming,H in w%ic% t%e fertili5er and &esticides administered to a gi.en cro& are carefully monitored using !7+ de.ices in tractors< If agriculture and manufacturing are mo.ing to countries wit% low labor costs B%ina is a &articularly good e9am&leC, t%e Kobs t%at remain in t%e so(called knowledge(based economies are &articularly critical to t%ese countriesA economic sur.i.al< ItAs not clear e9actly w%at workers in t%e :nited +tates, Western 1uro&e, and Da&an are going to do for a li.ing in t%e future, but it is clear t%at if t%ese economies are to &ros&er, t%e Kobs of many of t%e workers must be &articularly knowledge Eintensi.e< Met des&ite t%e im&ortance of knowledge workers to t%e economic success of countries, com&anies, and ot%er grou&s, t%ey %a.enAt recei.ed sufficient attention< We know little about %ow to im&ro.e knowledge workersA &erformance, w%ic% is .ery unfortunate, because no less an aut%ority t%an 7eter Ducker %as said t%at im&ro.ing knowledge worker &erformance is t%e most im&ortant economic issue of t%e age< What is a Knowledge Worker? Knowledge workers %a.e %ig% degrees of e9&ertise, education, and;or e9&erience, and t%e &rimary &ur&ose of t%eir Kobs in.ol.es t%e inno.ation;creation, s%aring;distribution, or a&&lication of knowledge< Knowledge workers t%ink for a li.ing< =%ey li.e by t%eir wits(and %ea.y lifting on t%e Kob is intellectual, not &%ysical< =%ey sol.e &roblems6 t%ey understand and meet t%e needs of customers t%ey make decisions, and t%ey collaborate and communicate wit% ot%er &eo&le in t%e course of doing t%eir own work< ItAs easy to &oint to e9am&les of knowledge workers@ &%ysicians and &%ysicists, scientists and scientific writers, air&lane &ilots and air&lane designers, managers and marketers, and soft;%ard ware engineers< We know t%em w%en we see t%em< =%ey donAt necessarily %a.e to work in knowledge( intensi.e industries E managers of any com&any are knowledge workers, a&&lying knowledge to make decisions in t%e best interests of t%eir enter&rises< 1.en t%e most industrial com&any %as engineers, researc%ers, Marketers and &lanners< Knowledge workers work in small start(u&s and large global cor&orations< W%et%er someone is a knowledge worker or not is admittedly sometimes a matter of degree and inter&retation< Many &eo&le use knowledge in t%eir Kobs and %a.e some degree of education or e9&ertise, but for knowledge workers t%e role of knowledge must be central to t%e Kob, and t%ey must be educated or e9&ert< Working wit% data or information alone isnAt enoug% E it would be difficult to be a knowledge worker, for e9am&le, wit%out %a.ing a college degree Bcollege dro&outs )ill !ates and Mic%ael Dell notwit%standingC< ItAs clear t%at organi5ational success de&ends on t%e inno.ati.eness and &roducti.ity of t%ese knowledge workers wit%in t%eir organi5ations< 0owe.er, along wit% adding .alue, knowledge workers also &ose c%allenges to con.entional management wisdom and organi5ing &rinci&les@ t%ey are mobile and concerned t%at t%eir e9&eriences s%ould &osition t%em well for future o&&ortunities6 t%ey are dis&ersed across t%e organi5ational structure and t%e globe, yet t%e interde&endence and com&le9ity of t%eir work reFuires t%em to collaborate effecti.ely wit% ot%ers in different functions, &%ysical locations, time 5ones and e.en organi5ations6 t%ey must command a body of knowledge t%at needs to be constantly u&dated6 and t%eir work is in%erently emergent E t%e im&ortant &roblems t%ey sol.e and o&&ortunities t%ey ca&itali5e on are no.el and rarely, if e.er, standard to t%e &oint t%at t%e work can be come routine< In s%ort, knowledge workers are critical to t%e success of almost any organi5ation, but t%ey &resent uniFue c%allenges as well< Knowledge Workers as a lass Dust %ow uniFue are t%e c%allenges knowledge workers &resent? +ome mig%t argue t%at knowledge workers and knowledge work s%ould be managed in t%e same way t%at ot%er work is< +ome one may argue t%at knowledge workers s%ould be treated like any ot%er workers in business &rocesses, and t%at &rocess im&ro.ement a&&roac%es a&&ly Kust as well to knowledge workers as to anyone else< If managers ga.e similar e9&licit instructions to t%eir knowledge workers B+%ar&en your &encil before you start t%at financial &lanHC, as t%ey use to gi.e to &roduction or &rocess workers, itAs unlikely t%at t%eir em&loyees would stay wit% t%e com&any for long< If by some c%ance t%ey tolerated being managed t%is way, itAs unlikely t%at t%eyAd gi.e t%e Kob t%eir full commitment and intellectual %orse&ower< =%is substantial difference in autonomy is only one of t%e key attributes of knowledge workers, but by itself itAs enoug% to Kustify treating t%em as a se&arate class of workers deser.ing t%e se&arate a&&roac%es to &erformance im&ro.ement and management< ommitment matters< In t%e industrial economy, one could do a Kob wit% oneAs body e.en w%en t%e brain and %eart werenAt committed to t%e Kob< )ut t%is isnAt t%e case for knowledge work< ItAs unlikely t%at youAll get great &erformance out of a knowledge worker if %e or s%e isnAt mentally and emotionally committed to t%e Kob< =%e famous #M com&any a&&roac% of gi.ing researc%ers 1* &ercent of t%eir time to work inde&endently on somet%ing t%ey t%ink is im&ortant to t%e com&any 4b.iously knowledge workers are generally willing to do some t%ings t%at ot%ers ask Bor e.en tellC t%em to do, but a degree of .oluntarism %el&s a lot< 3not%er factor affecting commitment is a &erce&tion of Gfair &rocess<H 3s t%e strategy academics %a.e &ointed out, workers E and &articularly knowledge workers(care not only about t%e fairness of outcomes, but also about t%e fairness of t%e &rocess used to arri.e at outcomes@ $air &rocess turns out to be a &owerful management tool for com&anies struggling to make t%e transition from a &roduction(based to a knowledge(based economy, in w%ic% .alue creation de&ends increasingly on ideas and inno.ation< $air &rocess &rofoundly influences attitudes and be%a.iors critical to %ig% &erformance< It builds trust and unlocks ideas< Knowledge workers .alue t%eir knowledge, and donAt s%are it easily< Knowledge is all t%at knowledge workers %a.e E itAs t%e tool of t%eir trade, t%e means of t%eir &roduction< ItAs t%erefore natural t%at t%ey would %a.e difficulty relinFuis%ing or s%aring it in suc% a way t%at t%eir own Kobs mig%t be t%reatened< In t%e early days of knowledge management, w%en com&anies were beginning to talk about s%aring knowledge wit%in and across organi5ations, &eo&le used to say, G+%aring knowledge is an unnatural act<H G4f course, unnatural acts are committed e.ery day<H om&anies Kust needed to &ut t%e necessary incenti.es and assurances in &lace to ensure t%at &eo&le were willing to s%are t%eir knowledge< G3s t%e BinternetC world is flatH 3lmost e.ery knowledge worker in western countries is wondering w%et%er %is or %er Kob could be t%e ne9t to mo.e to India or %ina or Korea or 7akistan< ItAs enoug% to gi.e anyone &ause about contributing knowledge to some ot%er worker or a knowledge re&ository< 3gain, t%is doesnAt mean t%at we canAt design organi5ations and &rocesses in suc% a way t%at knowledge will flow across organi5ations< We Kust %a.e to acknowledge workers will .iew t%eir knowledge as a %ig%ly .aluable asset, and t%at t%ey will be reluctant to s%are it wit%out rewards and;or guarantees of continued em&loyment< +mart organi5ations will &ut smart a&&roac%es in &lace for t%e knowledge assets of t%eir knowledge workers< 3 knowledge worker in 7akistan can &ro.ide ser.ices c%ea&er t%an one in Nort% 3merica so t%e work will flow to a &lace w%ere it can be done c%ea&er BFuality being sameC< =%e global economy %as decisi.ely entered a new age< It is .ariously called t%e GInformation 3ge,H t%e G=%ird Wa.e,H or t%e G1lectronic 1conomy<H Regardless of t%e terminology, t%ese names and ot%ers refer to t%e transition t%at %as taken &lace in t%e economies of t%e industriali5ed nations, followed closely by t%e de.elo&ing nations< 3lt%oug% t%ere are a few economies &rimarily in.ol.ed in su&&orting traditional manufacturing industries, t%e future of de.elo&ment and growt% is clearly centered on automated manufacturing and information(de&endent ser.ices industries< W%ile knowledge, embedded in systems, brains, and tec%nology, %as always been t%e key to economic de.elo&ment, in recent years its im&ortance %as been steadily increasing< =%e 41D economies are more strongly de&endent on t%e &roduction, distribution, and use of knowledge t%an o.er before< 4ut&ut and em&loyment are e9&anding fastest in %ig%(tec%nology industries, suc% as com&uters, electronics, communications, %ealt%care and edutainment< During t%e &ast decade, t%e %ig%( tec%nology s%are of 41D manufacturing &roduction and e9&orts %as more t%an doubled, to reac% 20(2* &ercent< Knowledge BIntangibleC a&ital 3ccelerating t%e con.ersion of knowledge into financial gains using Information 3ge alc%emy is t%e real c%allenge for contem&orary organi5ations< =%e key to generating economic growt% and .alue in industrial(based economies was t%e accumulation of fi9ed, tangible assets, measured as ca&ital in.estment< =%e knowledge economy is one w%ere intangible assets or knowledge, in its .arious forms, combine wit% information tec%nology and network infrastructure to dri.e growt% and .alue creation< Knowledge assets include information and knowledge stored in &atents, co&yrig%ts, cor&orate data ware%ouses, em&loyeesA brains, &rocesses Be<g<, work rulesC, and information systems< =%ese tools and systems %a.e been used to le.erage em&loyee knowledge in &ursuit of im&ro.ements to core &rocesses< Dust as t%e means of &roduction in t%e Industrial 3ge was industrial ca&ital B&lant, eFui&ment, mac%ineryC, in todayAs economy t%e means of &roduction is knowledge ca&ital< =%e information tec%nology industry &lays a central role in t%ese acti.ities< =%e tools to store, disseminate, and mange t%ese .ital cor&orate assets are &ro.ided by com&anies in t%is industry< +&ecifically, t%e network com&anies &ro.ide t%e &latform for mo.ing knowledge, information, and raw data to di.erse locations w%ere it is used to com&lete essential core &rocesses, and to t%e end(users w%o &ay for ser.ices and &roducts wit%in w%ic% knowledge assets are embedded< I@ >isit a bank and identify knowledge workers< W%at is uniFue about knowledge workers? 0ow do you distinguis% t%em from regular em&loyees? 3@ 19ecuti.es at front end in banks are known as =ellers w%o sim&ly take de&osits, enter t%em in t%e customerAs account, and issue a recei&t cannot be considered knowledge workers< 4n t%e ot%er N o&yrig%t >irtual :ni.ersity of 7akistan *Knowledge Management EM!M=(/#0 >: %and, if a teller negotiates a de&osit, w%ere &artial &ayments are made to &ay t%e customerAs lease;mortgage, &lace some of t%e money in a urrent De&osit, and w%ere s%e notices t%at t%e total .alue of %is urrent De&osits is at a &oint w%ere t%e customer is ad.ised to buy treasury bills or in.est in funds t%at &ay more di.idends would be more of a knowledge worker< 3 Kob, w%ere analysis and use of %euristics and tec%nology are &art of t%e day(to(day Kob is close to w%at is called knowledge work< N o&yrig%t >irtual :ni.ersity of 7akistan /Knowledge Management EM!M=(/#0 >: -1++4N 2 DMN3MI+ 3ND IN=1R4NN1=1D N3=:R1 4$ 21+= 1N=:RM !-4)1 In a Nuts%ell Welcome to t%e twenty(first century and t%e knowledge society< =%e business landsca&e is c%anging ra&idly< =%e com&etiti.e en.ironment is no longer linear or &redictable< +ur.i.al and success de&end entirely on t%e organi5ationAs ability to adKust to t%e dynamics of t%e business en.ironment< %anges in information;communication tec%nology BI=C %a.e generated ga&s in access and control of information and knowledge< 1.en w%en t%ese ga&s are bridged, se.eral fundamental c%allenges remain< 0ow do we a&&ly knowledge for .alue(added and com&etiti.e ad.antage? 0ow do we con.ert information into knowledge? 0ow do we use tec%nology to con.ert c%allenges into o&&ortunities? Knowledge management is t%e solution for realigning t%e firmAs tec%nical ca&abilities to create t%e knowledge t%at dri.es t%e firm forward< =%ere is ob.ious room for c%ange in t%e way we work and communicate and in relations%i&s and &rocesses among &eo&le wit%in and across organi5ations< =o be em&owered to face t%ese c%allenges means not only accessing tec%nology, but also de.elo&ing t%e ability to manage knowledge< =%e key Fuestions an organi5ation must consider are GDoes your com&any knows w%at you know?H Do you know w%at you know?H G0ow do you make best use of t%e knowledge you %a.e?H It also means t%inking Gout(of(t%e(bo9,H w%ere Gt%e bo9H is w%at re&resents all t%e tried(and(true &rocedures t%at %a.e worked in t%e &ast< =%ere is less room for G&ackaged solutionsH to sol.e most of a firmAs &roblems< Knowledge management means t%inking outside t%e boundaries of current &ractices, &roducts, ser.ices, and organi5ations< =%e new and un&redictable business en.ironment &uts a &remium on inno.ation and creati.ity muc% more so t%an it %as in t%e &ast< We %a.e &rogressed from t%e data &rocessing age of t%e 18/0s and 18"0s to t%e information age of t%e 1820s and 1880s to t%e knowledge age of t%e 2000s< =%e latest transformation re&resents t%e most fundamental c%ange since t%e introduction of t%e digital com&uter ' decades ago< Knowledge and intellectual ca&ital B.iewed %ere as accrued knowledgeC re&resent our cor&orate and national wealt%< Knowledge workers are found in e.ery organi5ation, and t%ey are t%e backbone of e.ery successful business< Knowledge workers use tec%nology to reason t%roug% &roblems and reac% successful solutions< om&uterEaided software gi.es t%em an edge o.er workers using con.entional met%ods< $or a com&any to manage knowledge, it must first in.entory its &eo&le, systems, and decisions< 7rofessional knowledge workers wit%in t%e com&any must be identified, and t%eir functions must be defined< Knowledge tec%nologies must be incor&orated to reengineer t%e entire business &rocess< MaKor decisions s%ould be re.iewed, and a knowledge system for making eac% decision s%ould be de.elo&ed< =%e com&anyAs information system s%ould also be e9amined to determine %ow to benefit from emerging knowledge tec%nologies< =%is self(assessment makes a com&any more cogni5ant of its strengt%s and weaknesses< It s%ould also lead to c%anges t%at are more in tune wit% t%e com&etiti.e nature of t%e business en.ironment< 0istorical 4.er.iew Knowledge %as been t%e sta&le source of com&etiti.e ad.antage for many com&anies for %undreds of years< $or e9am&le, t%e idea of &assing knowledge to an a&&rentice from a master was used e9tensi.ely during medie.al times< 7assing t%e Gfamily reci&eH t%at makes a certain &roduct uniFue from one generation to anot%er also attests to t%e notion of knowledge transfer and knowledge s%aring< 3lt%oug% suc% transfer was e9tremely slow, it o&ened t%e door to modern met%ods of knowledge management t%at can e9&loit faster media of knowledge e9c%ange, suc% as t%e Internet< =%e recorded %istory of knowledge dates back to 7lato and 3ristotle, but its modern day understanding is credited to sc%olars like Daniel )ell B18"#C, Mic%ael 7olanyi B18*2, 18"'C, 3l.in =offler B1820C, and t%e Da&anese guru, IkuKiro Nonaka B188*C< 4t%er writers like +.eiby B188"C and +tewart B2000C &romoted t%e conce&t knowledge as t%e core asset for an organi5ation< N o&yrig%t >irtual :ni.ersity of 7akistan "Knowledge Management EM!M=(/#0 >: In t%e early 18"0s, researc%ers at MI= and +tanford were analy5ing ways in w%ic% com&anies &roduced, used, and diffused knowledge< =%is was t%e first essential ste& in t%e e.olution of knowledge management, as we know it today< Wit% t%e %el& of t%e Internet, KM became a feasible conce&t for many com&anies< It &ro.ided more o&&ortunities for knowledge s%aring and knowledge transfer t%an t%ere %ad been in t%e &ast< In terms of met%odology, KM was briefly &resented in total Fuality management B=IMC &%iloso&%y< 7rofessor Deming e.en asked e.ery manager to de.elo& %is;%er t%eory of knowledge at work and moti.ated t%e Da&anese to work in teams to &roduce t%e Fuality &roduct< )usiness &rocess reengineering B)7RC, downsi5ing, and outsourcing were also attem&ts to im&ro.e t%e &erformance of t%e firm, alt%oug% t%ey %ad limited success< =%ey resol.ed t%e &roducti.ity factor, but drained knowledge from t%e organi5ation< =%ese attem&ts were more like round one, w%ere com&anies managed t%eir knowledge assets in t%e same way t%ey managed &%ysical assets< 7%ysical goods were stored in t%e ware%ouse, but for t%e intellectual eFui.alent, it was in t%e knowledge re&ository< W%en databases and Gware%ousesH were full Btoo many &%ysical assetsC, t%ey began t%inking about su&&ly c%ain management B+MC, trying to matc% t%e su&&ly of goods wit% demand and reduce in.entories to w%at was actually ordered for &roduction< It was more like rewarding t%e efficiency(dri.en &rediction of t%e future based on &ast trends(doing t%ings rig%t< In contrast, in round two of KM, com&anies began to reali5e t%at to fit t%e su&&ly of knowledge to t%e demand for it in &roducts and ser.ice6 t%ey needed to toy wit% %ow knowledge worker did t%eir Kobs< =o be effecti.e, KM %as to be Gbaked intoH t%e Kob and be &art of t%e fabric of t%e work to bring in knowledge w%en needed and e9&ort it anyw%ere in t%e organi5ation w%en it is acFuired BDa.en&ort 1888C< =%is is w%ere we began to see a s%ift from Gdoing t%ings rig%tH to Gdoing t%e rig%t t%ingH E working smarter, not %arder< !i.en t%e &rogress made in automating &rocedures in t%e 18"0s and communications and networking Bmostly t%roug% e(mailC in t%e 1820s t%e focus of tec%nology in t%e 1880s was on cogniti.e com&uting to augment t%e knowledge work of %umans< 4f t%ese, t%e Internet and intranets %a.e %ad t%e most &rofound im&act on s&reading t%e know(%ow< $rom a knowledge &ers&ecti.e, t%e internet and accom&anying tec%nologies %a.e demonstrated se.eral c%aracteristics in knowledge management@ J =%e internet is an incredible information source< Internet access is a.ailable worldwide< It means a com&anyAs knowledge workers can access information and s%are knowledge anyw%ere, any&lace, anytime, wit%out delay< J Wit% t%e World Wide Web, e.ery user can s%are and u&date information at will< =%is is es&ecially attracti.e wit% t%e decreasing cost of communication< J =%e internet uses a uni.ersal communication standard &rotocol< =%is &rotocol, =7;I7, makes information access and e9c%ange accessible from anyw%ere t%ere is a com&uter and an internet ser.ice &ro.ider< J =%e internet &ro.ides Fuicker interaction and communication wit% fellow knowledge workers< =%is interaction can be one(on(one as a grou&< +etting t%e onte9t@ 3n Interde&endent World !lobali5ation, intense com&etition Boften from une9&ected FuartersC, demanding customers, regulatory c%anges, t%e relentless &rogress of tec%nology (all are factors t%at recur %ig% on t%e list of key c%allenges affecting businesses< 0ow do t%ey res&ond? Many management books, suc% as =%ri.ing on %aos by =om 7eters B182"C, om&eting for t%e $uture by !ary 0amel and < K< 7ra%alad B188'C and =%e World is $lat by =%omas $riedman B 200"C offer &rescri&tions< 3 common t%read in t%ese is t%e need for organi5ations to be fle9ible, ada&ti.e and to continually rein.ent t%emsel.es< =%e %ars% message is (( if t%ey donOt t%ey wonOt sur.i.e< =%e single most im&ortant factor t%at is dri.ing most of t%ese c%anges in t%e business en.ironment, and wit%in organi5ations, is t%at of information and communications tec%nology BI=C< It is often said t%at information and communications tec%nologies are business enabler, and s%ould su&&ort business strategy< 7rogress in I= and ot%er tec%nologies is so dramatic t%at it is fundamentally transforming our en.ironment, t%e way we li.e, work and t%e business landsca&e and society itself< 4rgani5ations t%erefore need to understand and acti.ely embrace new tec%nologies as a core dimension of strategy< N o&yrig%t >irtual :ni.ersity of 7akistan 2Knowledge Management EM!M=(/#0 >: 7er%a&s t%e biggest c%ange during t%e last decade of information tec%nology BI=C is not continual im&ro.ement in functionality and &erformance ( incidentally a trend t%at %as been %a&&ening continuously since t%e 18/0s E but interconnectedness< =oday, communications and com&uter networks are &er.asi.e< 4rgani5ations, go.ernments, indi.iduals are becoming more closely interconnected in ways not %it%erto &ossible or economic< Networks, %owe.er, are relati.ely %ig%ly structured around a su&&ly c%ain and well(defined business need< W%at is %a&&ening today is t%e growt% of more dynamic networks, and a new layer of .alue on to& of information( knowledge< We must also not forget t%e e9istence of many informal &ersonal networks, often %ailed as t%e main way t%at t%ings mo.e forward in business, scientific and ot%er communities< We are creating not national utility grids but global knowledge networks or webs< =%ese connect inde&endent dis&arate knowledge t%at w%en combined and aggregated can lead to new knowledge and new o&&ortunities< 1.ery few years t%ere is anew strategic focus t%at &romises %it%erto unac%ie.able im&ro.ement in business &erformance or a means of com&etiti.e ad.antage< +ome initiati.es are merely fads t%at disa&&ear, w%ile ot%ers become more establis%ed as mainstream business acti.ities, &er%a&s after some res%a&ing< =otal Fuality management B=IMC and business &rocess re(engineering B)7RC, for e9am&le, were two of t%e most significant management initiati.es of recent years< Now anot%er is on t%e scene E knowledge management< )ut is t%is somet%ing fundamental to e.ery business or is it merely anot%er consultantOs fad? =%e fundamentalistsO argument is t%at knowledge is an im&ortant contributor to t%e &erformance, .alue and future &ros&erity of an organi5ation< In order to ma9imi5e t%e benefits it must be &ro&erly managed and e9&loited< =oo freFuently, com&anies do not know w%at t%ey know, t%ereby rein.enting t%e w%eel, or fail to a&&ly best &ractice because t%at knowledge %as not been s%ared< =%e Networked Knowledge 1conomy Many terms are used to describe t%e c%anging world in w%ic% we li.e and work ((t%e &ost(industrial economy, information society, knowledge era, and Onetworked knowledge economyO < W%ate.er term is used, t%is new en.ironment %as c%aracteristics Fuite distincti.e from t%e industrial era of t%e last two centuries< 4ld certainties no longer e9ist =%roug%out t%e 1880s we %a.e witnessed c%ange as ne.er before< =%e demise of t%e former +o.iet :nion, t%e fragmentation of Mugosla.ia and t%e rise t%en fall and t%en rise of t%e 3sian economies were ty&ical u&%ea.als affecting stability and &redictability in our en.ironment< oincident wit% closer integration wit%in t%e 1uro&ean :nion B1:C, indi.idual regions like atalonia and +cotland gain more control o.er t%eir own affairs< %ina is emerging as a new economic &ower and is a big factor itself< ounter(currents, not Kust in 1uro&e but elsew%ere, are simultaneously strengt%ening t%e need for local autonomy alongside t%at for closer cross(border co(o&eration< W%ere will it all ends? W%at is t%e future of t%e nation state? 3s indi.iduals, we witness c%ange at first %and< -ife in t%e late twentiet% century seems beset wit% com&le9ity and uncertainty, resulting in a growing incidence of stress< =%e &ros&ect of a secure Kob until &ension(able age no longer e9ists< We li.e longer, but we face concerns about &aying for nursing care in our old age as %ealt% ser.ices are stretc%ed of resources< $or organi5ations, Obusiness as usualO is rarely a sustainable o&tion< 1.en a&&arently &owerful multinationals %a.e %ad to bow to t%e influence of outside forces, suc% as +%ellOs re.ersal of &lans for t%e &ro&osed dum&ing of t%e redundant )rent +&ar oil &latform in t%e lig%t of concerted action by en.ironmentalists< 1.eryw%ere you look, t%e cor&orate landsca&e is c%anging< =%e c%anging cor&orate landsca&e In t%e new economy .alue is s%ifting to ser.ice(related and knowledge intensi.e industrial 0ealt%, education, finance, information systems, media and telecommunications %a.e been growing strongly for o.er a decade< 3n analysis s%ows t%at during one year, :+ %ouse%old s&ending on Oold economyO items N o&yrig%t >irtual :ni.ersity of 7akistan 8Knowledge Management EM!M=(/#0 >: E food, cars, a&&liances and clot%ing (increased less t%an 1 &ercent, w%ile t%at for a cluster of new economy items Etele&%one, entertainment, cable tele.ision, financial ser.ices and %ome com&uters E rose 12<* &er cent during t%e same &eriod< 0ow is it in 7akistan? =%e demise of Kobs 3not%er trend associated wit% dis&ersion of business acti.ity and t%e growt% of small businesses is t%at of self(em&loyment< Most em&loyees can no longer rely on organi5ations to &ro.ide t%em wit% a Kob for life< 3 significant trend is t%e ra&id growt% of self(em&loyment by &rofessionals, &articularly t%ose w%o %a.e %ad &re.ious large com&any e9&erience< Many draw on t%is e9&erience to create inno.ati.e o&&ortunities, often global in nature< In turn, many large organi5ations contract wit% t%ese indi.iduals for s&ecialist ser.ices< 1m&loyment in t%e future s%ould be .iewed not in terms of full(time Kobs, but in terms of work acti.ities t%at are &arceled out in t%e most cost(effecti.e way to t%ose wit% t%e necessary knowledge and skills< In t%e networked economy we %a.e t%e o&&ortunity to create electronic work markets, bot% wit%in and beyond firms< !lobali5ation 3lt%oug% brands suc% as oca(ola, =oyota and 7%ili&s are globally recogni5ed, many industries and many com&anies are far from global< 1.en if its marketing is global, a com&anyOs manufacturing may be centrali5ed< In retail, for e.ery =oys ORO :s t%at %a.e e9&anded successfully o.erseas, ot%erwise successful retailers like Marks L +&encer %a.e struggled %ard in t%eir o.erseas ambitions, or like Wal( Mart %a.e remained largely in t%eir %ome country< Ne.ert%eless, globali5ation is steadily increasing< Many large multinational com&anies design and manufacture at se.eral locations around t%e world< =%ey c%oose locations based on access to skills, markets and infrastructure< Many consumer and electronic &roducts formerly manufactured in t%e :+3 and 1uro&e are now manufactured in t%e $ar 1ast< 1.en t%ere manufacturing %as migrated from %ig%er wage countries suc% as =aiwan and Malaysia to lower wage countries, suc% as %ina< !lobal knowledge In t%e industrial economy two reasons for going global were economies scale and t%e need to reduce &%ysical trans&ortation costs by manufacturing close to key markets< Now globali5ation is as muc% a res&onse to regional s&eciali5ation and e9&ansion of long(distance relations%i&s and markets< =%roug% t%e Internet firms can reac% distant markets at a &rice different from customers in t%eir locality< $urt%ermore, %ig%er .alue to weig%t ratios and networks like t%at of $ed19 mean t%at global distribution is cost(effecti.e< 3 global enter&rise takes ad.antage of uniFue skills and resources, w%ere.er t%ey are located< It may be t%e software e9&ertise of India or artistic wea.ing skills of .illagers in 7akistan, in 3frica or in )anglades%< =%is o&&ortunity to %arness knowledge on a scale %it%erto unimaginable before t%e internet makes globali5ation attracti.e and e9citing and is a &%enomenon of 21st century< N o&yrig%t >irtual :ni.ersity of 7akistan 10Knowledge Management EM!M=(/#0 >: -1++4N # $4R1+ +037IN! =01 $:=:R1 3ND =01 M1!3 =R1ND+ 4$ KN4W-1D!1 14N4MM -et us look at t%e networked knowledge economy t%roug% t%e &ers&ecti.e of maKor s%ifts or mega trends< =%is is followed by an o.er.iew of res&onses t%at are needed to ada&t and t%ri.e in t%e new economy< =%e Mega =rends =%e term mega trend was used by Do%n Naisbitt to describe a fundamental underlying trend s%a&ing t%e future< In %is 1822 book Mega trends, %e identified ten key s%ifts t%at were res%a&ing t%e world< 3mong t%ese, were J Industrial society Information society J National economy World economy J 0ierarc%ies Networking Information and knowledge based industry Information and knowledge are &er.ading all sectors of industry as well as creating new industries based around t%em< =%ere are se.eral distincti.e c%aracteristics of t%is new economy< 1< 1.ery industry is becoming more knowledge intensi.e< 1.en in agriculture, knowledge adds .alue< )y combining knowledge about t%e effect of a fertili5er, soil condition, t%e state of &lant growt% Busing information from satellite &%otogra&%sC, and t%e forecast weat%er conditions, farmers can use '0 &er cent less fertili5er on t%eir cro&s, yet ac%ie.e t%e same results< 3 new generation of combine %ar.esters automatically measures t%e weig%t and moisture content of t%e corn and calculates yields &er acre< 1.ery industry %as com&arable e9am&les< 2 +mart &roducts< 3not%er manifestation of knowledge intensity comes in so called Osmart &roductsA< =%ese use information or knowledge to &ro.ide better functionality or ser.ice t%at can command &remium &rices< =%ere is a smart tire t%at senses t%e load it %as to carry and adKusts its &ressure accordingly< =%ink of smart &%ones and smart %omes< I(&ods &ro.ides best way of carrying your music around< +er.ices can be en%anced t%roug% better customer knowledge< Marriott 0otels kee&s track of indi.idual references so t%at it can offer su&erior ser.ice to t%eir customers w%en t%ey c%eck in< # 0ig%er information to weig%t ratios< =%e .alue of electronics in cars now e9ceeds t%at of t%e .alue of t%e metal c%assis, w%ic% itself, t%roug% better knowledge of structures, is significantly lig%ter t%an t%at of its &redecessors< 3n indication of t%is trend at t%e macroeconomic le.el is t%e trend in weig%t< 3t t%e start of t%e twentiet% century t%e ratio was roug%ly 1@1< =oday t%e financial .alue is twenty times %ig%er, w%ile t%e &%ysical weig%t of goods is about t%e same< ' >alue in intangibles< =%e market .alue of most com&anies is se.eral times %ig%er t%an t%e .alue of t%eir &%ysical assets as recorded in t%eir balance s%eets< * =rade in intangibles< =%e ultimate information to weig%t ratios is t%e weig%tless &roduct or ser.ice< =%ere is a growing range of t%ese intangibles t%at are traded in t%eir own rig%t< $inancial markets are almost w%olly intangible< $utures o&tions and com&le9 deri.ati.es are &er%a&s t%e ultimate intangible knowledge &roduct, %a.ing been created t%roug% %uman ingenuity< New knowledge industries 3 conseFuence of t%ese trends is t%e creation of industries t%at are almost w%olly information and knowledge based< M< Masuda describes a w%ole set of Fuaternary industries, as distinct from &rimary N o&yrig%t >irtual :ni.ersity of 7akistan 11Knowledge Management EM!M=(/#0 >: BagriculturalC, secondary BmanufacturingC and tertiary Bser.icesC industries B=able belowC< W%ile we are now starting to recogni5e t%ese as distinct and .aluable industries, it must %a.e taken some foresig%t to en.isage t%ese in 1820s, w%en MasudaOs book was first &ublis%ed< 0e also described t%e Oinformation utilityO, in w%ic% %e en.isaged many of t%e features t%at we now see in t%e Internet and on(line communities< Iuaternary industries as defined by Masuda B1820C Information industries 7rinting and &ublis%ing News and ad.ertising Information ser.ices E 4n(line analysis Information &rocessing E software ser.ices Knowledge industries -egal, accountancy, consultancy, design Researc% and de.elo&ment 1ducation and =raining 3rts industries reators E aut%ors, com&osers, artists, singers etc< 7erformers E orc%estras, actors, singers Infrastructure E t%eatres, tele.ision, broadcasting, museums 1t%ics industries or&orate +ocial Res&onsibility Religion, +&iritual and 0a&&iness 1n.ironment New knowledge(intensi.e industries are being created all t%e time< =%e biotec%nology industry is only fifteen years old but %as more t%an 2000 com&anies and is e9&ected to %a.e annual re.enues in e9cess of P*00 billion by t%e year 2010< 4t%er industries are emerging around t%e trading of information and knowledge using t%e Internet< Networking (%ard and soft =%ere are two defining c%aracteristics t%at are fundamental in &ractice@ 1< Networked organi5ations are less about organi5ational structure? and more about informal %uman networking@ &rocesses< 2 =%e tec%nology of com&uter networking bot% under&ins and en%ances %uman networking< >irtuali5ation 3 key effect of information and communications tec%nologies suc% as t%e internet is an increase of .irtuali5ation in business acti.ities and ways of working< >irtuali5ation o.ercomes constraints of time and distance< =%e term O.irtualO is now a&&earing in many guises< =%us one .iew of a .irtual cor&oration is@ Oa tem&orary network of inde&endent com&anies t%at co(ordinate acti.ities to meet a common obKecti.e, suc% as anew &roduct de.elo&ment or to meet a customer need<O =%is .iew relates to t%e dimension of time< 0owe.er, anot%er .iew relates to an organi5ation not %a.ing a clear &%ysical locus< 0ere a ty&ical definition is@ Oan organi5ation distributed geogra&%ically and w%ose work is coordinated t%roug% electronic communications<O >irtual ness can also o&erate at se.eral le.els, from indi.idual to inter organi5ational< =%ese .ariations gi.e rise to many ty&es of .irtuality, ranging from workers communicating wit% colleagues globally .ia &%one or email, or t%e creation of consortia to work on a s&ecific &roKect< Making a .irtue of .irtuality +ome of t%e common ty&es of .irtuality are t%e following< 1< >irtual &roducts and ser.ices< =%e cost of an electronic transaction is ty&ically a tent% of t%at of t%e corres&onding traditional transaction< Dell generates o.er P* million of business a day t%e Internet< )ookseller 3ma5on<com sells e9clusi.ely t%is way< 1lectronic markets t%at matc% buyers and sellers are now emerging in e.eryt%ing from Dutc% flowers to second(%and cars< N o&yrig%t >irtual :ni.ersity of 7akistan 12Knowledge Management EM!M=(/#0 >: 2 >irtual working or telework< +e.eral million &eo&le in 1uro&e and t%ousands in 7akistan now telework for some or &art of t%eir working week< =%ey may work from %ome, from client &remises, or indeed anyw%ere t%at %as tele&%one access, w%ic% wit% cellular &%ones is now .irtually e.eryw%ereQ Wit% t%e ubiFuitous notebook com&uter, it %as been said t%at Omy office is w%ere I %ang my modemO< # >irtual offices< 3 related ty&e of .irtuali5ation is t%e .irtual office, w%ere t%e &%ysical office is re&laced by office ser.ices< I)M is one of many com&anies t%at %a.e ado&ted O%ot(deskingO< 3t se.eral of its &remises, em&loyees do not %a.e &ersonal works&aces, but are allocated desks w%ene.er t%ey are in t%e office< ' >irtual teams< =o gi.e fle9ibility and to a.oid relocation, many com&anies sim&ly create .irtual teams, w%ere em&loyees work at locations more con.enient to t%em< 4t%er e9am&les are w%ere se.eral teams working in con.entional office settings at different locations co(o&erate .irtually, suc% as engineering teams at =oyota, $ord or )oeing in locations across 1uro&e and t%e :+3< * >irtual organi5ations< =%ese can range from a stable su&&ly network t%at works as a single organi5ation, to a loose federation of inde&endent firms t%at come toget%er tem&orarily for s&ecific acti.ities< / >irtual communities< Instead of a local community a .irtual community is one of s%ared in terms, w%ate.er t%e location< =%ey are found on Internet newsgrou&s and discussion lists, or on an organi5ationOs intranet< W%ate.er form .irtuali5ation takes, t%ere are some common features t%at distinguis% it from traditional forms@ J Information and communications tec%nology allows o&erations to be dis&ersed< J =%e barriers of time and s&ace are reduced Bor e.en disa&&ear com&letelyC< J 4rgani5ational structures are network(like, and more dynamic< J =%e interface wit% customers and markets is different( J 1m&loyees and associates Bbusiness &artners, su&&liers, customers etc<C ado&t new &atterns of work< J =%e locus of knowledge is diffused< It is not necessarily in a s&ecific &lace< =ec%nology E a fundamental dri.ing force :nder&inning eac% mega trend is t%e fundamental dri.ing force of tec%nology< =ec%nology am&lifies %uman ca&abilities< In t%e industrial re.olution, t%e core tec%nology was steam &ower t%at ga.e %umans a 1* times im&ro.ement in &rice(&erformance o.er manual met%ods< In t%e knowledge era it is I= t%at is boosting our ability to &rocess information< 0owe.er, t%e &ace of im&ro.ement in t%e information re.olution is muc% faster< =%e rate of im&ro.ement in microc%i&s, t%e fundamental com&onent of com&uters, %as been fairly constant o.er se.eral decades< In 18/* IntelOs co(founder, !ordon Moore, &roKected t%at &erformance doubles and costs %al.e roug%ly ,e.ery eig%teen mont%s, an obser.ation now ens%rined as MooreOs -aw< +uc% im&ro.ements are almost un&aralleled in t%e world of science and tec%nology< =%e Massac%usetts Institute of =ec%nologyOs BMI=C landmark study, Management in t%e 1880s indicated t%at o.er a ten( year &eriod, I= s%owed a 2* times &rice(&erformance im&ro.ement, com&ared to 1<' times for t%e si9 ot%er most im&ro.e &roduct grou&s< =%is rate of im&ro.ement eFuates to an industrial re.olution e.ery se.en yearsQ =%e Re.olution ontinues MooreOs -aw seems set to continue, at least t%roug% to t%e year 2010 , alt%oug% t%ere are likely to be c%anges in t%e s&ecific tec%nology used< =%us R(ray lit%ogra&%y s%ould re&lace o&tical lit%ogra&%y, leading to t%e de.elo&ment of circuits only 0<01 microns Bmilliont%s of an inc%C wide by 2010, com&ared to around <2* microns today, and &rocessors t%at are 1000 times more &owerful< =%ereafter, &ro.ided new a&&lications become economic and sustain demand, in.estments in a .ariety of new N o&yrig%t >irtual :ni.ersity of 7akistan 1#Knowledge Management EM!M=(/#0 >: tec%nologies, suc% as %ologra&%ic memory and molecular com&uters, s%ould maintain t%e fundamental trend< I= =rends@ Decade on Decade Im&ro.ements 1822 1882 2002 om&onents@ 7rocessor s&eeds =ransistors &er c%i& Memory c%i&s )asic disk ca&acity 10M05 2"* 000 /' Kbits 20 M) '00 M05 "<* million /' Mbits 1 !) 10 000 M05 2*0 million 1/ !bit 2*0 !) 7ersonal com&uter Bty&icalC 7(#2/ B2 M05C 2*/ K) R3M /0 M) disk 1'H R= 7entium #2 M) +DR3M ' !) disk D(R4M B#2RC 1"H R= 10 !05 ' !) memory *00 !) disk S100(S2000 20H flat &anel Desk(to& &lus &alm( %eld integrated 7 and communicators +oftware and a&&lications )asic 4ffice +uite Bword &rocessing, s&reads%eetC< 7rofession s&ecific 3dds database, email< Internet Integrated .oice and data messaging< >isual knowledge na.igation :sers 7rofessionals, clerical staff %a.e access in office Most staff including unskilled< 7rofessionals %a.e se.eral Boffice, %ome, mobileC 1.erybody< om&uters are consumer a&&liances Boften for s&ecific a&&licationsC =y&ical functions alculations6 &rocedures6 transactions Information retrie.al6 communications6 dTcision su&&ort Knowledge de.elo&ment6 learning6 symbiotic decision(making N o&yrig%t >irtual :ni.ersity of 7akistan 1'Knowledge Management EM!M=(/#0 >: -1++4N ' M3N3!1RI3- 4N+ID1R3=I4N+ $4R IN=1RN1= :+=4M1R+ 3ND K( )3+1D M3RK1=IN! In t%e industrial era, com&anies o&erated on assum&tions rooted in tangible(assets(based e9&lanations t%at basically tracked t%e &%ysical transformations of atoms into finis%ed goods in order to create wealt%< 3toms re&resent t%e raw material used to create .alued out&uts< In t%is framework t%e +ultan of )runei became one of t%e wealt%iest indi.iduals in t%e world by e9tracting &etroleum atoms, or oil, t%at is e.entually transformed into gasoline< om&anies com&eting under t%e old model tend to %a.e %ig%ly standardi5ed o&erational &rocedures for relati.ely sim&le &roducts< Design and o&erational com&le9ity, as well as customi5ability, is generally sFuee5ed out of t%e &roduction &rocess< 19am&les of com&anies like t%ese can be found in t%e commodity industries< In t%e modern era based on knowledge, t%is a&&roac% can be suicidal because re.erse( knowledge engineering enables com&etitors to &roduce t%e same &rocesses;&roducts easily< 7ersonal com&uter manufacturing is a familiar e9am&le because com&onents are based on defined common standards and com&anies readily &roduce commodity com&onents< 4n t%e ot%er %and, t%e 7 software industry is a .ery different en.ironment w%ere Microsoft, 4racle, and +37 ca&ture and reuse uniFue knowledge in t%e form of lines of code and in t%e met%ods to &roduce t%at code< 3s e.idence of t%e s%ift in &ower from t%e Industrial to t%e Information 3ge, )ill !ates, 14 of Microsoft, is wealt%ier t%an t%e +ultan of )runei< Microsoft, for e9am&le, ultimately creates .alue by com&iling bits into &rograms< =%e &rimary engine of wealt% is not t%e com&act disc or manual< Wealt% is created by selling new and reused com&ute code< )ot% old and new &aradigms &ro.ide assum&tions t%at allow managers to manage cor&orate assets< ritically, t%e assum&tions go.erning t%e management of knowledge assets differ radically from t%ose go.erning t%e management of industrial(era tangible assets< Managers from bot% &ers&ecti.es would see a grou& of em&loyees and mac%inery, but t%e in&uts, &rocesses, and out&uts are .iewed in radically different ways< Information 3ge manager see a set of knowledge assets distributed among &eo&le, mac%ines, and &rocesses coordinated to &roduce desired out&uts< )asic decisions are based on assum&tions about t%e knowledge reFuired to o&erate a gi.en &rocess and %ow it can be embedded in information tec%nology to make it easily reusable< =%ese managers also recogni5e t%at some knowledge assets are better left in t%e brains of em&loyees< =%eir intellectual ca&ital creates t%e le.erage and fle9ibility to ra&idly de&loy new knowledge and create an e.er(c%anging array of &roducts and ser.ices< In t%is way, t%e critical &roblem for management is %ow to best introduce, utili5e, and de&loy knowledge t%roug%out t%e com&anyAs core &rocesses< In contrast, Industrial 3ge managers see a com&anyAs core &rocesses as &iece &arts of a mac%ine o&erating in &redetermined ways to yield a more or less consistent set of tangible out&uts< 1nsuring t%at t%e &arts are interc%angeable is a common goal< 1mbedding knowledge wit%in mac%ines and em&loying tig%tly defined Kob descri&tions are common a&&roac%es< +u&er.ision aims to ensure t%at em&loyees be%a.e wit%in t%e well(defined limits, and managers belie.e t%at obtaining enoug% measures of t%e &rocess will o&timi5e t%e &rocess< =%is seeing t%e Gtrees t%roug% t%e forestH a&&roac% is based on t%e reductions it assum&tions of t%e industrial(era &aradigm< $ocusing on tangible out&uts rat%er t%an on t%e knowledge assets de&loyed to &roduce t%e out&uts is common &ractice< 3lt%oug% bot% managers focus on t%e same tangible assets, t%e Information 3ge managerAs &aradigm leads to e9&licit management of intangible assets< =%e Industrial assets %e literally does not Gsee<H =%e Information 3ge &aradigm allows managers to GseeH &atterns, and t%e &atterns t%at &ro.ide t%e most le.erage in todayAs economy are based on knowledge< N o&yrig%t >irtual :ni.ersity of 7akistan 1*Knowledge Management EM!M=(/#0 >: Knowledge Management in 7ractice 4rgani5ations around t%e world are ado&ting knowledge management &ractices at an accelerating &ace< =%ey %a.e combined cultural and &rocedural c%anges wit% enabling tec%nology to reali5e bottom( line im&ro.ements< 3 number of com&re%ensi.e sur.eys %a.e indicated t%at organi5ations are engaged in wide(ranging efforts to im&lement and im&ro.e knowledge management &ractices< 7ercei.ed )enefits from Knowledge Management Im&ro.ed decision making 28U Im&ro.ed res&onsi.eness to customers 2'U Im&ro.ed efficiency of &eo&le and o&erations 22U Im&ro.ed inno.ation "#U Im&ro.ed &roducts;ser.ices "#U $ollowing are some of t%e organi5ations w%ere managers took t%e c%allenge and im&lemented KM &rograms< =%e World )ank =%e World )ank is an organi5ation owned by many of t%e go.ernments of t%e world< It lends money to su&&ort economic de.elo&ment and &ro.ides ad.ice< In 188/, t%e &resident made an announcement t%at forced t%e rum to make c%anges in %ow knowledge was managed< 0e announced t%at t%e organi5ation was going to manage and s%are its knowledge wit% clients around t%e world.iat%e1nternetandot%er met%ods< =%e goal of t%e initiati.e is to make World )ank knowledge a.ailable in a database to &ro.ide assistance for all &ersonnel<
=%e conce&tual model t%ey are using treats knowledge management as a &rocess of creating, organi5ing, and a&&lying data< =%e organi5ation as a w%ole %as t%ese se.en goals< 1< 3ssembling a large knowledge base in a knowledge management system< 2< reating a %el& desk t%at can %el& users find t%e t%ings t%ey need< #< 1stablis%ing an e9&ertAs directory< '< De.elo&ing data and statistics on c%anges in eac% country< *< 3rticulating engagement information and links wit%in t%e organi5ation< /< 7ro.iding dialog s&ace for Fuestions, answers, and con.ersations< "< $acilitating access to users out side t%e organi5ation< 3t t%is &oint t%e World )ank is still trying to make t%is w%ole &rocess a success and con.ince ske&tics t%at an organi5ation known for its static ways can c%ange into an organi5ation of t%e times< +kandia In t%e early 1820s, managers at +kandia found t%at traditional management and accounting t%eories did not accurately reflect .alue found wit%in t%eir com&any< +ince +kandia is a knowledge(intensi.e ser.ice com&any, its in.entory was only a fraction of its assets< Re&orts stro.e to define new met%ods of .aluation and described ways to attac% im&ortance to a com&anyOs intangible assets< -eif 1d.isson, t%e director of t%e +wedis% oalition of +er.ice Industries, was named director of t%e intellectual ca&ital management function for t%e 3$+ business unit of +kandia in 1881< =%is was &art of t%e effort to ca&ture and define t%e .alue of intellectual ca&ital as a com&lement to t%e balance s%eet 14 )Korn Wolrat% and to& e9ecuti.e Dan arendi .iewed intellectual ca&ital BIC re&orting as a tool to aid internal decisions and descri&tions of t%e com&anyOs knowledge assets to t%e s%are%olders< Ra&id growt% occurred in t%e 3$+ di.ision under 1d.isson from 1881 to 188*, and %e stro.e to create a system t%at could make t%e growt% truly a&&reciated< During t%ese years alliances grow from *0,000 to /*,000, and t%e em&loyee count increased from 1,100 to 2,000 during t%e same &eriod< In May 188*, t%e I team released t%e first &ublic I annual re&ort as a su&&lement to t%e financial re&ort, and o.er *00 cor&orations %a.e contacted 1d.isson for assistance in de.elo&ing t%eir own I re&orts< +kandiaOs N o&yrig%t >irtual :ni.ersity of 7akistan 1/Knowledge Management EM!M=(/#0 >: effort was not t%e first attem&t to manage knowledge, but it was t%e most concentrated, and by doing so &ublicly t%ey set t%e trend for ot%er com&anies to <follow suit< Knowledge Management 7ractices om&any ountry Knowledge Management 4bKecti.es Knowledge Management 7ractices and Initiati.es #M :+3 )uild knowledge(s%aring culture Managers are reFuired to link continuous learning to re.enues< 3nalog De.ices :+3 )uild knowledge(s%aring culture 14 Ray +tat initiated breakdown of functional barriers and com&etiti.e atmos&%ere ad created a collaborati.e knowledge(s%aring culture from t%e to&< om&any encourages Gcommunity of inFuirersH rat%er t%an Gcommunity of ad.ocates<H )oeing "" :+3 )uild knowledge(s%aring culture $irst G&a&erlessH de.elo&ment of aircraft< Included customers in design teams< More t%an 200 teams wit% wide range of skills bot% designed and constructed sub&arts, rat%er t%an usual organi5ation design team and construction team< +u&&liers worldwide used same digital databases as )oeing< )uckman -abs :+3 1< )uild knowledge(s%aring culture 2< reate careers based on knowledge management 3 biotec% firm t%at %as reorgani5ed itself to o&timi5e knowledge s%aring< reated knowledge =ransfer De&artment to coordinate efforts< 1m&loyeesA best at knowledge s%aring gain bot% financial rewards and management &ositions< %a&arral +teel :+3 )uild knowledge(s%aring culture Mini steel mill t%at %as introduced broad range of initiati.es suc% as@ flat %ierarc%y, broad education, blue(collar workers res&onsible for customer contacts and rewarded for &ersonal initiati.es< %a&arral uses 1<* %rs labor &er ton6 industry standard of 1<*(#<0 %rs< &er ton $ord Motor :+3 )uild knowledge(s%aring culture om&any t%at %as transformed itself by outsourcing and creating .irtual networks of .endors using I=< 4ticon Denmark )uild knowledge(s%aring culture 0as created a Gs&ag%etti organi5ation<H 3 c%aotic tangle of interrelations%i&s and interactions< Knowledge workers %a.e no fi9ed Kob descri&tions but work entirely on &roKect basis< 0ewlett( 7ackard :+3 1< )uild knowledge( s%aring culture< 2< reate micro( en.ironments for tacit knowledge transfer< Im&lemented an o.erall culture of collaboration, w%ic% encourages knowledge s%aring and risk taking on all le.els< 0(7 e.en su&&orts &eo&le w%o try out t%ings t%at donAt work< 3ffaers( .aerlden +weden reate micro(en.ironments for tacit knowledge transfer< )usiness Kournal uses G&iggy(backingH and Gteam(writingH to s&eed u& learning among new Kournalists< Inter.iews and larger articles are routinely assigned as team work, rat%er t%an one(man s%ows< =%is s&eeds u& transfer of t%e seniorsA tacit skills and networks to t%e Kuniors< N o&yrig%t >irtual :ni.ersity of 7akistan 1"Knowledge Management EM!M=(/#0 >: 0onda Da&an reate micro(en.ironments for tacit knowledge transfer< GRedundancyH routinely used6 &eo&le are gi.en information t%at goes beyond t%eir immediate o&erational reFuirements< =%is facilitates s%aring in res&onsibilities and creati.e solutions from une9&ected sources and acts as a self(control mec%anism< 7-+(onsult Denmark 1< Measure knowledge( creating &rocesses and intangible assets< 2< reate micro( en.ironments for tacit knowledge transfer< ategori5es customers according to .alue of knowledge contribution to t%e firm< $ollows u& in management information system< 3&&oints GmentorsH wit% task to facilitate transfer of tacit skills between members in large &roKects< 3cti.ely seeks large &roKects, so t%at Kunior consultants can be added to t%e teams for learning< 3gro :+3 4ffer customers additional knowledge Data on farmers and soils are combined wit% weat%er forecasts and information on cro&s< 3nalyses are fed back to t%e farmer .ia sales re&s to %el& farmer select best combinations of cro&s $rito(-ay :+3 4ffer customers additional knowledge< +ales re&s collect daily s&ot data about s%elf s&ace utili5ation for all brands< Data are com&uted, combined wit% market information, and refer to t%e sales re&s, w%ic% use it to gi.e t%e retailers information on best s%elf utili5ation< )enetton Italy !ain customer knowledge 7roduces Gmass(customi5edH a&&arel to fit latest trends in colors and designs< Daily sales data from t%eir own boutiFues are integrated wit% com&uter( aided design and com&uter(integrated manufacturing< !eneral 1lectric :+3 !ain customer knowledge< +ince 1822, t%e com&any %as collected all customer com&laints in a database t%at su&&orts tele&%one o&erators in answering customer calls< !1 %as &rogrammed 1<* million &otential &roblems and t%eir solutions into its system< National )icycle Da&an !ain customer knowledge 7roduces Gmass(customi5edH bikes to fit customersA e9act %eig%t, weig%t, and color &references in a day< Is ac%ie.ed t%roug% com&uter(aided design and com&uter(integrated manufacturing integrated wit% customer database< Netsca&e :+3 !ain customer knowledge >ery close links .ia Internet to o&inion leaders among customers, w%o are encouraged to re&ort &roblems to enable it to create new generations of software at a .ery fast &ace< Rit5 arlton Worldwide !ain customer knowledge +taff reFuired to fill out cards wit% information from e.ery &ersonal encounter wit% a guest< Data &lus all Fuest reFuirements are stored and &rinted out to all staff w%en t%e guest arri.es again, so t%at eac% guest recei.es &ersonal treatment< )ritis% :K a&ture, store, and s&read :sing knowledge management to draw N o&yrig%t >irtual :ni.ersity of 7akistan 12Knowledge Management EM!M=(/#0 >: 7etroleum indi.idualsA tacit knowledge< toget%er talents from all o.er t%e organi5ation< )7 em&%asi5es transfer of tacit knowledge rat%er t%an accumulation and transmission of raw data and %as installed a communication network com&rising .ideoconferencing, multimedia, and e(mail< %e.ron :+3 a&ture, store, and s&read indi.idualsA tacit knowledge< reated a Gbest &racticeH database t%at ca&tures e9&erience of drilling conditions and inno.ati.e solutions to &roblems on site in a database for s%aring globally wit% ot%er sites< McKinsey and )ain L o< :+3 a&ture, store, and s&read indi.idualsA tacit knowledge< =%ese two management consulting firms %a.e de.elo&ed Gknowledge databasesH t%at contain e9&eriences from e.ery assignment including names of team members and client reactions< 1ac% team must a&&oint a G%istorianH to document t%e work< Dow %emical :+3 reate new re.enues from e9isting knowledge< 7uts all its 2*,000V &atents into a database, w%ic% is used by all di.isions to e9&lore %ow e9isting &atents can gain more re.enues< =%e e9&erience from t%is a&&lication is now being transferred into ot%er intellectual assets< 4utoku( m&&u :+3 reate new re.enues from e9isting knowledge< Knowledge on %ow to build smelting &lants is used to construct w%ole &lants including education of &ersonnel and managers to customer all o.er t%e world< =%is business is now more &rofitable t%an its original business base< +teel case :+3 reate new re.enues from e9isting knowledge Does basic researc% into inno.ation and learning, best learning en.ironments, and new interfaces B#D and .irtual toolsC< +teel case sells its knowledge in t%is area to ot%er com&anies< I)M :+3 reate careers based on knowledge management< 1m&loyees are encouraged to switc% between &rofessional and managerial Kobs in order to gain more %olistic knowledge about t%e com&any< elemi +weden Measure knowledge(creating &rocesses and intangible assets< 7ublis%ed first audit of its intangible assets in 3nnual Re&ort 188*< =elia +weden Measure knowledge(creating &rocesses and intangible assets +wedenAs =elecom com&any &ublis%es since 1880 an annual +tatement of 0uman Resources including a &rofit and loss account .isuali5ing %uman resource costs and a balance s%eet s%owing in.estments in %uman resources< It is interesting to note t%e large number of +wedis% com&anies in.ol.ed in knowledge management< +wedis% com&anies %a.e been &ioneers in t%is field and were t%e first to monitor and systemi5e intelligence acti.ities in large 1uro&ean com&anies< 4bser.ations at 3stra(Draco, 1ricsson Radio, !ambro, elsius =ec%, +kandia, +3+, =elia, and >ol.o identified four common features@ 1< )alance between strategy and o&erational obKecti.es< 2< 3 systematic su&&ly(on(demand intelligence for cor&orate management< #< 3 focus on information(s%aring cultures, including systematic community meetings linking business&eo&le, academics, and military officers< N o&yrig%t >irtual :ni.ersity of 7akistan 18Knowledge Management EM!M=(/#0 >: '< 1m&%asis on knowledge(s%aring acFuisition &rocesses< Intellectual a&ital =racking a com&anyAs &%ysical assets is straig%tforward enoug%, as long as youAre counting com&uters, adding salaries, and estimating %eating bills< )ut managing intellectual ca&ital is a different ball game, and one in w%ic% few com&anies consistently %it %ome runs< Intellectual ca&ital in.ol.es a com&anyAs em&loyee e9&ertise, uniFue organi5ational systems, and intellectual &ro&erty< $or e9am&le, if a com&anyAs book .alue is P10 &er s%are and its stock is selling for P'0 &er s%are, t%e difference is often attributed to intellectual ca&ital< GW%en you subtract book .alue from market .alue, t%e remaining is all t%e intellectual and knowledge and market ca&ital< It includes all t%e &atents t%ey mig%t %a.e and all ot%er intangibles,H says >is% Kris%na, associated &rofessor of management at t%e Mcombs +c%ool of )usiness at t%e :ni.ersity of t%e =e9as at 3ustin< 4nce a com&any identifies its intellectual ca&ital, t%e ne9t ste& is to maintain it< 4ne of t%e tec%niFues t%at Dollar )ank uses to manage intellectual ca&ital is to kee& em&loyees in.ol.ed in decision making and &lanning, says 3bra%am Nader, senior .ice &resident and c%ief o&erating officer at t%e 7ittsburg%(based bank< Ron !riffin, I4 at =%e 0ome De&ot, Inc<, says t%at 3tlanta(based %ome im&ro.ement retailer %as tried(and(true structures in &lace for measuring, maintaining, and growing intellectual ca&ital< =%e com&any uses a nine(bo9 grid system to measure eac% em&loyeeAs &erformance and &otential, and it offers de.elo&mental courses to bring em&loyees u& to s&eed on certain issues< =%e categories measured include leaders%i& ability, %ow an em&loyee fits into t%e 0ome De&ot culture, financial acumen, and &roKect management ca&abilities $or its &art, 0ome De&ot &osts a bulletin on its intranet wit% Fuick references on to&ics suc% as %ow to re&air a leaky toilet or build a deck< =%at way, knowledge is a.ailable for em&loyees to remain u& to s&eed and to &ass suc% information along to customers< GItAs not Kust about selling &roduct in our business6 itAs a lot of t%e knowledge, and we train on t%at e9tensi.ely,H !riffin says< +4:R1@ 19cer&ted from =aylor, %ristie< GIntellectual a&ital,H om&uterworld< Marc% 12,2001, &<*1< 3s a result of KM, systems %a.e been de.elo&ed to gat%er, organi5e, refine, and distribute knowledge t%roug%out t%e business< In %is study of +mart )usiness, )otkin B1888C suggests si9 to& attributes of knowledge &roducts and ser.ices@ J -earn< =%e more you use t%em, t%e smarter t%ey get and t%e smarter you get, too< J Im&ro.e wit% use< =%ese &roducts and ser.ices are en%anced rat%er t%an de&leted w%en used, and t%ey grow u& instead of being used u&< J 3ntici&ate< Knowing w%at you want, t%ey recommend w%at you mig%t want ne9t< J Interacti.e< =%ere is two(way communication between you and t%em< J Remember< =%ey record and recall &ast actions to de.elo& a &rofile< J ustomi5e< =%ey offer uniFue configuration to your indi.idual s&ecifications in real time at no additional cost< During t%e 18/0s and 18"0s, tec%nology was focused on automating %ig%(.olume static &rocesses suc% as claims &rocessing, mortgage loan u&dating, airline reser.ation systems, and t%e like< =%e emergence of e(commerce in t%e late 1820s and 1880s s%owed %ow information tec%nology could im&lemented a new way of doing business effecti.ely< 1.er(increasing &rocessing &ower, %ig% bandwidt% data transmission, and networking made it &ossible to re(en.ision %ow business gets done< It %as also c%anged t%e business en.ironment and introduced new com&etiti.e im&erati.es< 3mong t%em are@ J Reacting instantly to new business o&&ortunities, w%ic% led to decentrali5ed decision making Band com&etencyC at t%e front lines, w%ere t%e action is< Wit% t%at came t%e desire to build mutual trust between knowledge workers and management and to coo&erate in %andling time(sensiti.e tasks< J )uilding better sensiti.ity to Gbrain drain<H It %as been said t%at Ge9&ertise gra.itates toward t%e %ig%est bidderH B3&&le%ans et al< 1888, 1"C< More and more com&anies reali5e t%e im&ortance of managing and &reser.ing e9&ertise turno.er< $or t%e %uman resources N o&yrig%t >irtual :ni.ersity of 7akistan 20Knowledge Management EM!M=(/#0 >: de&artment, t%e key Fuestion is G0ow does t%e firm re&lace e9&ertise w%en it retires, resigns, or sim&ly lea.es? J 1nsuring successful &artnering and core com&etencies wit% su&&liers, .endors, customers, and ot%er constituents< =odayAs tec%nology %as enabled com&anies to reengineer t%e ways to do business< !etting &artners u& to your s&eed reFuires more t%an fast tec%nology< Knowledge workers and ot%ers wit%in t%e com&any s%ould ensure t%at coo&eration and coordination of work are &racticed for t%e good of t%e firm< om&anies and managers t%at fail to embed a .iable KM o&eration &robably suffer from se.eral o.ersig%ts or &itfalls@ J $ailing to modify t%e com&ensation system to reward &eo&le working as a team< =%e traditional met%od of com&ensating &eo&le based on t%e old(fas%ioned Ginformation(%oardingH &ractice does not work in a knowledge(s%aring en.ironment< Merit increases and bonuses s%ould be based on team contribution and team &erformance rat%er t%an Fuantity or .olume< J )uilding a %uge database t%at is su&&osed to cater to t%e entire com&any< !enerali5ed systems do not usually work well, because information and knowledge are not stratified to address s&eciali5ed areas of e9&ertise< Ideally, t%e %uman resources de&artment s%ould first determine w%o works best wit% w%o based on commonality of Kob ty&e or Kob e9&erience and t%en disco.er t%e knowledge t%at can be s%ared for eac% em&loyee to be more successful< J >iewing KM as a tec%nology or a %uman resource area< =%is o.ersig%t relates to t%e earlier one E w%ere %uman resources and information tec%nology efforts are &oorly coordinated E and defeats t%e &ur&ose be%ind embedding KM into t%e fabric of t%e organi5ation< =%e two de&artments s%ould work Kointly at introducing KM as &art of t%e organi5ational &rocesses< J 7lacing too muc% em&%asis on tec%nology< 3lt%oug% intranets, knowledge(based tools, data ware%ouses, and ot%er com&uter(based software are &art of t%e way todayAs organi5ation must ado&t, tec%nology is only t%e enabler of knowledge management< =%e knowledge it makes a.ailable must be organi5ed and disseminated to %uman decision makers to be of any use< J Introducing KM into t%e organi5ation .ia a sim&le &roKect to minimi5e &ossible losses< =%is is t%e wrong way to start KM< 3 com&any s%ould start wit% a strategy and a c%am&ion, wit% a focus on a wort%w%ile, %ig% &rofile &roKect t%at can set t%e tone for t%e rest of t%e organi5ation< It is a %ig% risk a&&roac%, but one t%at is most likely to &ay di.idends in t%e long run< J 7ursuing KM wit%out being ready< +&urred by t%e &aradigm s%ift in our economy, many cor&orations &ursue KM wit%out e.aluating w%et%er t%ey are organi5ationally ready 8stewart et al< 2000, '*C< In ot%er words, cor&orations t%at %a.e been o&erating under classical management &rinci&les cannot be successful in ado&ting KM wit%out maKor c%anges in culture, management attitudes, and communication skills< J 0a.ing &oor leaders%i&< -ike any %ig% &riority &roKect, KM is best im&lemented wit% determined c%am&ions and to& management commitment< $or e9am&le, !eneral 1lectric B!1C recogni5es an organi5ational culture o&en to ideas from all le.els of t%e com&any< )y encouraging best(&ractice s%aring, t%e com&any can gras& t%e knowledge wit%in t%e em&loyees and inno.ate t%e organi5ationAs &rocesses< Dack Welc%, former 14, %as establis%ed a knowledge management uni.ersity and freFuently teac%es t%e classes %imself< 4nly 10 &ercent of t%e 8/ com&anies sur.eyed by t%e onference )oard s&onsored by 7ricewater%ouseoo&ers identified t%e 14 as a com&onent of a KM initiati.e< )y integrating t%e 14 of t%e com&any into t%e KM system, KM acFuires a le.el of im&ortance and res&ect t%at would ot%erwise be lacking< !1 %as incor&orated all le.els of t%e business and is well designed to s%are knowledge< =%e com&any is successfully able to use em&loyee in&ut and knowledge to &roduce a strategic ad.antage BDones 188,#(12C N o&yrig%t >irtual :ni.ersity of 7akistan 21Knowledge Management EM!M=(/#0 >: KM is slowly gaining acce&tance across industries< +e.eral factors triggered interest in KM@ J =%e &ace of c%ange %as accelerated dramatically during t%e &ast decade< om&anies are looking at inno.ati.e says of taking on t%e com&etition< Inno.ation is t%e one core com&etency needed by all organi5ation BDrucker 18/8C< J !lobali5ation and geogra&%ic dis&ersion c%ange t%e organi5ationAs sco&e< More and more organi5ations are trying to lean on years of e9&erience to manage t%eir global commitment in a timely and &rofitable fas%ion< J Downsi5ing and reengineering resulted in staff attrition and knowledge drain< =%is &rom&ted organi5ations to assess t%eir knowledge core and make more effecti.e use of it< Reengineering assumed a one(time fi9 to a situation< =%is created a .icious cycle, w%ere solutions became new &roblems< It failed to recogni5ed ra&id c%anges in todayAs market< J Networking and data communication made it easier and faster to s%are knowledge< Knowledge s%aring is becoming t%e best way to distribute e9&ertise across and around t%e firm .ia tec%nology< =ec%nology alone is insufficient< J =%e increasing dominance of knowledge as a basis for im&ro.ing efficiency and effecti.eness triggered many com&anies to find t%e means for utili5ing t%e knowledge t%ey %a.e gained from &re.ious e9&erience< Wit% t%ese factors, it is easy to see %ow knowledge management works for t%e sur.i.al of t%e firm< Knowledge is t%e key< It is t%e core com&etence of any business< It is a function t%at can and s%ould be embedded into e.ery business &rocess E new &roducts and ser.ices, new c%annels of distribution, new marketing strategies, and new industry definitions< =ec%nology is t%e backbone, and %uman com&onents are necessary to utili5e it< N o&yrig%t >irtual :ni.ersity of 7akistan 22Knowledge Management EM!M=(/#0 >: -1++4N * $R3M1W4RK WI=0 N1W +=R:=:R1, +=R3=1!I1+ 3ND -1>1R+ 4$ +=R3=1!M Knowledge@ =%e +trategic Im&erati.e 1.ery few years a new management &%iloso&%y ca&tures t%e attention of strategists and business leaders< In t%e 1880s, suc% mo.ements %a.e included t%ose of total Fuality management B=IMC and, more recently, business &rocess re(engineering< =%e last few years %a.e seen knowledge take centre stage< New +trategies, New +tructures +uccessful strategies will e9&loit t%e de.elo&ments in I tec%nology< =%ey will take ad.antage of t%e Internet and electronic commerce to create global markets for new &roducts and ser.ices< >alue to customers will be en%anced t%roug% information and knowledge< Information &roducts, suc% as database, and knowledge(based ser.ices, suc% as consultancy, will become im&ortant ways of generating re.enues< =ec%nology will be used to tailor ser.ices to indi.idual customer needs and de.elo& closer customer relations%i&s< In terms of structure, res&onsi.e organi5ations will be t%ose t%at are more networked< >irtual teams and organi5ations will allow t%em to create .alue t%roug% uniFue combinations of skills t%at are fle9ibly combined as needed< =%e future organi5ation is most likely to consist of networks of self( managed teams t%at reconfigure o ada&t to o&&ortunity and c%ange< =eams, not functions or de&artments, will become t%e core &roducti.e units wit%in organi5ations< +trategies based on com&etiti.e ad.antage E con.entional wisdom in t%e 1820s E may %a.e done many organi5ations more %arm t%an good< +ustainable wealt% comes t%roug% creating and growing new markets, not com&eting in e9isting ones< =%us com&eting I= manufacturers increasingly co(o&erate on matters of standards, w%ile care(makers collaborate on safety< =%e inno.ation im&erati.e 4ne of t%e main c%allenges for any organi5ation is sur.i.al< =%e a.erage life e9&ectancy of most firms is low, around twenty years< 4ne(t%ird of all businesses in 18"0 %ad disa&&eared t%irteen years later< =oday t%e en.ironment is more turbulent and dynamic, so sur.i.al becomes e.en %arder< Met t%ere are com&anies, like +%ell Bfounded 180"C, +iemens B12'"C, Du 7ont B1202C and #M B1802C t%at sur.i.e and t%ri.e< 0ow do t%ey do t%is? =%ey ada&t and inno.ated< Inno.ati.e #M introduced *00 new &roducts in 188/< 3 188" sur.ey by 3rt%ur D< -ittle of "00 com&anies in twenty(t%ree countries s%owed t%at 2' &er cent of com&anies belie.ed t%at inno.ation was more crucial for t%eir business success t%an it was in a similar sur.ey carried out in 1881< =%ey seek inno.ation for gaining new customers and creating new markets wit% inno.ati.e &roducts, ser.ices and &rocesses 4f all t%e res&onses to t%e c%allenges, t%e most im&ortant can be summari5ed in two words (fast inno.ation< ontinuous im&ro.ement initiati.es gi.e incremental benefits< W%at is needed in t%e new economy is radical inno.ation< It is not uncommon to find organi5ations succeeding in creating im&ro.ements of not Kust a few &er cent but a factor of ten< Remember w%en it took days or weeks to get &rescri&tion s&ectacles< Now you can get t%em in one or two %ourW< It used to take )7 100 days wit% an e9&ensi.e s%i& to drill anew dee&(sea oil well< Now, by a&&lying learning gained elsew%ere t%is can be reduced to fi.e days or less< Researc% at Rensselaer 7olytec%nic in New Mork +tate found t%at a key c%aracteristic of organi5ations t%at make suc% breakt%roug%s is a free of ideas, in and out< In e.ery case networking &layed a big role@ Ot%e most successful researc%ers %a.e wide(ranging networks of &eo&leA< =%ey %a.e disco.ered knowledge networking< N o&yrig%t >irtual :ni.ersity of 7akistan 2#Knowledge Management EM!M=(/#0 >: +e.en le.ers of strategy W%at can be done to secure a strategic ad.antage t%roug% knowledge? 3nalysis of many cases indicates se.en commonly used le.ers@ 1< ustomer knowledge E de.elo&ing dee& knowledge t%roug% customer relations%i&s, and using it to en%ance customer success t%roug% im&ro.ed &roducts and ser.ices< 2 Knowledge in &roducts and ser.ices E embedding knowledge in &roducts and surrounding t%em wit% knowledge(intensi.e ser.ices< # Knowledge in &eo&le E de.elo&ing %uman com&etencies and nurturing an inno.ati.e culture w%ere learning is .alued and knowledge is s%ared< ' Knowledge in &rocesses E embedding knowledge into business &rocesses, and gi.ing access to e9&ertise at critical &oints< * 4rgani5ational memory E recording e9isting e9&erience for future use, bot% in t%e form of e9&licit knowledge re&ositories and de.elo&ing &ointers to e9&ertise< / Knowledge in relations%i&s E im&ro.ing knowledge flows across boundaries wit% su&&liers, customers, em&loyees, etc< " Knowledge assets E measuring intellectual ca&ital and managing its de.elo&ment and e9&loitation< =%e core le.ers are knowledge in &eo&le, &rocesses and &roducts< In most situations winning strategies are de.elo&ed by concentrating on Kust two or t%ree of t%e se.en le.ers< ustomer knowledge >irtually e.ery sur.ey ranks customer knowledge as an organi5ationOs, most im&ortant knowledge< In trut%, most com&anies know a lot less about t%eir customers and t%eir markets t%an t%ey claim< =%ey &lace too muc% reliance on traditional market researc%< =%ey carry out customer satisfaction sur.eys t%at tell t%em little of customersO real wis%es and concerns< ustomers can &ro.ide .ital insig%ts into t%e a&&lication of your &roducts and ser.ices, but t%is reFuires forging close working relations%i&s t%at surface t%is dee& knowledge< De.elo&ing good customer knowledge also needs effecti.e en.ironment scanning and market intelligence systems to gat%er and collate knowledge< +uc% systems s%ould co.er not Kust customers and markets but a w%ole range of e9ternal factors including tec%nology, social, &olitical, economic and regulatory de.elo&ments< Knowledge in &roducts and ser.ices 3lmost e.ery &roduct is knowledge intensi.e, e.en if we donOt reali5e it< W%en we buy a &rescri&tion drug, we are not buying merely a tablet but also t%e knowledge it enca&sulates, t%at of t%e t%era&eutic benefits and side effects gleaned from years of e9tensi.e clinical trials< We can use genetic knowledge to create genetically modified foods, suc% as disease resistant &otatoes or sFuare tomatoes t%at are easier to &ack< om&anies %old .ast amounts of knowledge t%at can be e9&loited as &art of t%eir &roduct or ser.ice offering< +uc% knowledge includes a&&lications knowledge, market knowledge, and %ow to sol.e &roblems encountered by users< Muc% of t%is is accumulated during t%e &roduct de.elo&ment and testing &rocess, but is t%en o.erlooked< 4nly a fraction is enca&sulated into t%e final &roduct, lea.ing under(utili5ed a ric% source of knowledge t%at could create additional re.enues < =%is knowledge can be e9&loited in se.eral ways< 4ne way is t%roug% additional &aid ser.ices, suc% as consultancy or training ser.ices< 3not%er way is to make t%e &roduct OsmartO or OintelligentO< =%ere is an intelligent oil drill, w%ic% OknowsO t%e s%a&e of t%e reser.oir it is drilling, and so e9tracts more oil< 7roducts and ser.ices can be customi5ed by combining &roduct and customer knowledge< 4ne e9am&le is t%e &ersonali5ed daily new bulletin t%at combines information from many dis&arate sources< 3not%er is am&bell +ou&sO OIntelligent IuisineO, designed for &eo&le suffering %y&ertension or %ig% c%olesterol< It deli.ers weekly &ackages of nutritionally designed, &ortion(controlled meals based on &ersonal information< N o&yrig%t >irtual :ni.ersity of 7akistan 2'Knowledge Management EM!M=(/#0 >: Knowledge in &eo&le O7eo&le are our most .aluable assetO runs t%e line in many com&any annual re&orts< om&anies t%at truly belie.e it a&&ly t%is knowledge le.er t%roug% a com&etence or learning lens< 4ne underlying model used in t%is a&&roac% is t%at of a re&eating action(learning cycle@ J 7lan@ t%ink, conce&tuali5e, and de.ise a set of actions< J 3ct@ do, gain e9&erience ofO t%eory in &racticeO< J 4bser.e@ record e9&eriences, s%are knowledge wit% ot%ers< J Reflect@ consider w%at %as been learnt and %ow it can be used to make im&ro.ements< -earning &rograms ty&ically mes% com&etence de.elo&ment acti.ities at se.eral le.els (indi.idual, team and organi5ation< Indi.idual com&etence and knowledge is de.elo&ed t%roug% &ersonal de.elo&ment &lans t%at meet t%e needs of indi.iduals as well as t%e organi5ation< =eam knowledge is en%anced t%roug% learning &rocesses t%at encourage indi.iduals to s%are t%eir knowledge in teamwork< 3t t%e organi5ational le.el t%e focus s%ifts to o.erall com&etence measurement, cor&orate uni.ersities and %uman resource &olicies t%at reward learning and knowledge s%aring< Moti.ating knowledge workers +o t%at t%ey work energetically and are committed to t%e success of t%e organi5ation is anot%er im&ortant as&ect of a &eo&le(focused knowledge strategy< In reality, many organi5ations fail to effecti.ely use t%e knowledge in t%eir &eo&le< =%ey allow insufficient time for learning or reflection< =%ey regard &eo&le as %ired %ands, rat%er t%an borrowed brains< =%ey dictate to t%em w%at to do, gi.ing t%em little discretion in %ow t%ey do it< It is little wonder t%at t%eir em&loyees feel under.alued, and will indeed OwalkO at t%e first o&&ortunity and take t%eir knowledge wit% t%em< In contrast, +%ell is an organi5ation long acknowledged as an e9cellent e9am&le of nurturing and de.elo&ing its &eo&le< It %as an initiati.e wit%in its e9&loration business to O%arness t%is talentO and make Obetter use of t%is intellectual ca&italO <Its focus is t%e de.elo&ment of an infrastructure for learning and le.erage of knowledge< =%ere are o&en learning centers and databases of learning resources on t%e com&anyOs intranet< 0owe.er, t%e most significant de.elo&ments %a.e been t%e establis%ment of knowledge communities and de.elo&ing skills for Fuality &erson(to(&erson dialogue and reflection< -earning is being built into daily work acti.ities< 4ne com&any t%at combines bot% &roduct and &eo&le le.ers is t%at of =eltec% Resources< =eltec% (&eo&le are t%e &roduct =eltec% Resources of Minnea&olis manages a knowledge network of some #000 %uman e9&erts w%ose knowledge is %arnessed to tackle difficult &roblems< =%is network includes academics, industry e9&erts and recent if retirees w%o %a.e s&ecialist in(de&t% tec%nical knowledge< Knowledge analysts &ro.ide a %uman interface between t%e client w%o %as a &roblem, t%e e9&ert network and o.er 1/00 tec%nical databases< =eltec%Os business is based on a dee& understanding of %ow its clients gat%er and use knowledge< It t%en de.elo&s close relations%i&s wit% bot% su&&liers and users of t%at knowledge< It also blends e9&licit and tacit knowledge< 19&licit knowledge is structured according to a well(de.elo&ed t%esaurus of knowledge domain classifications< =%is also &ermits many synonyms, cross(referencing and multi&le &lacements< 3nalysts Oact as guides in defining, clarifying and inter&reting database(searc% resultsO< In one case, a medical &roducts de.elo&er %ad tried in .ain to make a %eart &um& leak(&roof in a saline solution< =%e answer came from an e9&ert in submarine tec%nology, w%ose eFui&ment also o&erates in similar en.ironments< Knowledge in &rocesses 1.ery business &rocess contains embedded knowledge< 3d %oc acti.ities, &re.iously &erformed by &eo&le wit% s&ecialist knowledge, become codified into routine &rocesses< It is t%en more readily diffused t%roug%(out an organi5ation< 1.en so, muc% tacit knowledge is freFuently needed to &erform N o&yrig%t >irtual :ni.ersity of 7akistan 2*Knowledge Management EM!M=(/#0 >: t%e &rocess effecti.ely and to deal wit% e9ce&tions< 0ence t%e e9&licit &rocess knowledge is ty&ically accom&anied by training, &rocedure manuals and access to e9&erts< 4ne way to enric% knowledge in &rocesses is to embed backu& resource material< 3ccess to %uman e9&ertise is a.ailable on I= systems t%roug% a Oclick %ere for %el&O screen icon< =%is may eit%er trigger an email or e.en a com&uter(generated &%one call to a %uman e9&ert< 4t%er organi5ations use workflow software to blend com&uter %eld knowledge wit% %uman knowledge< =%e software a&&lies rules to determine w%ic% transactions are straig%tforward, and are t%erefore %andled automatically by com&uter, and w%ic% reFuire %uman inter.ention< 4rgani5ational memory =%is strategic le.er %el&s address t%e issue of Oknowing w%at you knowO< It is also used to a.oid re&eating t%e mistakes of t%e &ast, and to draw lessons from similar situations or cases from elsew%ere< 4rgani5ational memory e9ists in many &laces, most notably t%e brains of its &eo&le< )ut it also e9ists in records, filing cabinets, &ersonal com&uter disk files and t%e &%ysical surroundings< 19ternal sources s%ould not be o.erlooked< 3fter all, many outsiders follow an organi5ationOs actions, or %a.e e.en been &art of it at one time< 3 common a&&roac% to managing organi5ational memory is to ca&ture in e9&licit form t%e most im&ortant knowledge and enter it into knowledge databases< =%ese databases may be in document management systems, in grou&ware suc% as -otus Notes, or as web &ages on an intranet< 4ften suc% databases will not contain t%e knowledge &er se, but will &ro.ide &ointers to it< 19am&les of knowledge databases include@ J ustomer %istories< =%ese detail interactions wit% a gi.en customer@ &roducts boug%t, sales .isit re&orts, etc< J )est &ractices< %e.ron %as best &ractices databases and a resource ma& organi5ed according to t%e categories of t%e )aldridge Fuality award< J 7roducts and tec%nologies< Details of t%e organi5ationOs .arious &roducts and %istory< 19&licit knowledge bases, %owe.er, ty&ically contain less t%an 10 &er cent of an organi5ationOs memory< =%erefore ot%er a&&roac%es are used to make it easier to access t%e minds of e9&erts< 3 common e9am&le is an on(line directory of e9&ertise, often called Mellow 7ages, because t%ey are structured by skill and disci&line, not by de&artment< No.artis %a.e also added )lue 7ages t%at contain details of e9ternal e9&erts wit% w%om t%ey collaborate< Knowledge(s%aring e.ents &ro.ide anot%er way of s%aring tacit knowledge< =%omas Miller L o<, a mutual insurance com&any, runs Oknowledge in a nuts%ellO e.ents< om&any e9&erts gi.e talks on t%eir areas of e9&ertise and describe t%eir e9&eriences< =%ese li.e sessions are also recorded on .ideo for furt%er distribution and subseFuent recall< =%e key to en%ancing organi5ational memory is to make ongoing e9&erience ca&ture an integral &art of e.eryday work< =ec%niFues include decision diaries, learning %istories and &ost(&roKect re.iews< Knowledge in relations%i&s Many com&anies %a.e an in.aluable resource of knowledge de.elo&ed t%roug% indi.idual relations%i&s (wit% customers, su&&liers, business &artners, &rofessional and trade associations< W%en a sales&erson lea.es your com&any, it is not Kust t%eir &roduct or customer knowledge t%at is lost< It may be muc% of t%e customer relations%i&< =%is relations%i& in.ol.es s%ared knowledge and understanding (not Kust of needs and factual information, but of dee&er knowledge suc% as be%a.iors, moti.ations, &ersonal c%aracteristics, ambitions and feelings< +uc% de&t% of knowledge is not easily re&laced o.ernig%t< 4rgani5ations can dee&en t%eir relations%i& knowledge by increasing t%eir interaction wit% t%e outside world< =%is may take t%e form of regular meetings for knowledge e9c%ange and s%aring of databases< =os%iba collects com&arati.e data on su&&liers ranking 200 Fuantitati.e and Fualitati.e factors< It %as an acti.e su&&lierAs network w%ere knowledge is s%ared and su&&liers are integrated into future strategies< 19tranets &ro.ide anot%er way to de.elo& wider linkages< )y increasing t%e number of contacts wit% key stake%olders, at all le.els and functions, you become less .ulnerable to t%e loss of a single contact< Relations%i& knowledge can also be dee&ened by taking a w%ole range of inter(com&any interactions to dee&er le.els of intimacy, and by strengt%ening knowledge e9c%ange< Relations%i& marketing, t%e new N o&yrig%t >irtual :ni.ersity of 7akistan 2/Knowledge Management EM!M=(/#0 >: .ogue in consumer marketing, goes far beyond issuing customers loyalty cards< ustomer relations%i& knowledge comes t%roug% e9&loring mutual interests, seeking new insig%ts t%roug% e9tensi.e dialogue, and Kointly creating new business o&&ortunities< 3cti.ities t%at mig%t &re.iously %a.e been considered confidential to t%e com&any are e9tended to in.ol.e stake%olders< =%ese include &roduct &lanning, marketing cam&aigns and %uman resource com&etency de.elo&ment< +ocial e.ents also strengt%en relations%i& knowledge< or&orate %os&itality does %a.e its benefitsQ Knowledge as an asset =%e final le.er is t%at of knowledge as an asset< =%is builds on t%e notion, mentioned earlier, of measuring and managing intellectual ca&ital< W%ile many organi5ations %a.e accountants and auditors track in detail e.ery &iece of &%ysical &lant and mac%inery, few de.ote e.en a fraction of t%is attention to intellectual ca&ital< Met t%is is muc% more .aluable, since it includes knowledge and &eo&le< =%e starting &oint of <any asset(based a&&roac% is t%at of understanding its different com&onents< Intellectual assets are freFuently categori5ed into t%e following grou&s< 1< 0uman ca&ital E in t%e minds of indi.iduals6 knowledge, com&etencies, e9&erience, know(%ow, etc< 2 +tructural ca&ital E Xt%at w%ic% is left after em&loyees go %ome for t%e nig%tO@ &rocesses, information systems, databases, etc< #< ustomer ca&ital E customer relations%i&s, brands, trademarks, etc< Dow %emical &ro.ides a good e9am&le of t%is knowledge le.er< In 188' it %ad o.er 28000 &atents in force around t%e world< 0owe.er, maintaining t%e .alidity of a &atent can be costly (u& to P2*0000 o.er its lifetime< DowOs Intellectual 3sset Management team de.elo&ed a com&re%ensi.e framework for acti.ely measuring and managing its &atent &ortfolio< It found many &atents not being effecti.ely e9&loited, and ot%ers wit% no ob.ious owners%i&< It took measures to e9&loit &atents, eit%er t%roug% internal use, licensing or sale, w%ile allowing ot%ers to la&se by not &aying renewal fees< Wit%in t%ree years t%e team %ad generated P12* million in additional re.enues, t%eir original target for t%e year 2000< N o&yrig%t >irtual :ni.ersity of 7akistan 2"Knowledge Management EM!M=(/#0 >: -1++4N / 0I+=4RI3- +0I$=+ IN W4R-D 14N4MI1+ 3ND =01 R4-1 4$ KN4W-1D!1 3ND IN=1--I!1N1 W%ere is Wisdom? We know t%at data and information does not con.ey wisdom and we also know t%at knowledge is also not wisdom< More we know, t%e more we know t%at we donAt know< 1ducation itself is a &rogressi.e disco.ery of our own ignorance< 3s your knowledge increases, w%at %a&&ens to your ignorance? It ob.iously becomes larger, or at least your awareness of your ignorance becomes larger< W%en information and knowledge are im®nated wit% wort%y &ur&oses and &rinci&les, you %a.e wisdom< 0istory of Management@ =o understand current management dilemma, we mig%t re.iew t%e demands on management from t%e 3grarian age t%roug% Industrial Re.olution and on into t%e Information;Knowledge age w%ic% %as broug%t wit% it t%e Fuickening and flattening &ace &f c%ange< =%e 3grarian age@ During t%e agrarian age &eo&le worked first as %unters and gat%erers and t%en as farmers< Most &eo&le de&end and li.ed on land and t%e r%yt%m and &ace of life were defined by t%e seasons< =%ey &lanted in s&ring, cro&s grew in summer and wasY %ar.ested in t%e autumn and t%en &loug%ed and t%e land remained fallow in t%e winter< +kills were &assed down t%roug% families< =rade skills were learned under t%e a&&rentice;mastery system< =%e Industrial age@ =%e agrarian way of life was c%anged for some if not for all fore.er w%en in 1"/# Dames Watt in.ented t%e steam engine< =%e &ower of steam engine %el&ed in t%e steal &roduction and also increased our ability significantly to &roduce goods and t%us broug%t t%e beginning of industrial re.olution< =%e %ig%er tensile strengt% of steal beams enabled t%e construction of large factories t%at %oused t%e manufacturing mac%ines t%at were dri.en by steam &ower< =%e mac%ines were designed to &roduce goods but needed &eo&le to o&erate t%em< +o w%ere did t%e labor come from? =%e labor came from t%e land and .illages< 7eo&le flocked from t%eir farms to work in t%e factories w%ic% were in and around cities and so town and cities grew larger and larger< !enerally t%ese &eo&le coming from farms were farmers< =%e ca&italists w%o owned t%e mac%ines and factories reFuired a new ty&e of worker, t%e manager< =%e manager was needed to tell t%e &oorly educated workers w%at to do< In t%e agrarian age, t%e seasons defined t%e &ace of life< 4nce you %a.e t%e steam engine, you can run factory 2' %ours a day, se.en days a week< =%e &ace of t%e game of life and business was c%anged fore.er< In early days, labor was e9&loited by ca&italists and t%eir trusted managers and %ence union mo.ement was born to fig%t inKustice< -aborers w%o com&lained for %ars% conditions, it was easy to get rid of t%em as t%ere were &lenty more w%ere t%ey came from t%e .illages< Is it not t%e case going on still in many =e9tile ;-eat%er factories of 7akistan< =%e fundamental &rinci&le be%ind t%e industrial re.olution was t%at managers needed to be intelligent and trained to direct workers acti.ity< =%ey understood w%at needed to be done in t%e factory< Managers directed and workers worked< Western education system de.elo&ed to su&&ly workers wit% basic &rimary and basic tec%nical skills and &ro.ided managers wit% secondary en%anced trade and commerce and accounting skills< entral idea became t%at mangers know w%at to do< =%ey tell t%e workers and workers do it< N o&yrig%t >irtual :ni.ersity of 7akistan 22Knowledge Management EM!M=(/#0 >: =%e Information age@ We %a.e mo.ed from industrial re.olution into information age< We no longer rely only on steam &ower and electricity< Muc% of our information is mo.ing down glass fibers at lig%t s&eed< =%e &ace of c%ange is also Fuickening< Manufactured goods account for far less t%an t%ey used to in world economies w%ic% are now more ser.ice dri.en< =%e endless range of c%oice %as s%ifted t%e game of business to a customer focus, customer .alue, customer loyalty and t%e creati.ity to differentiate yourself from t%e com&etition< In e.ery organi5ation staff is s&ending more time wit% t%e customers < =%ey like to know about t%eir customers on a day to day basis and e.en %our to %our to %our basis< In t%e information age, it is not &ossible for managers alone to satisfy t%e customers and all t%e stake%olders of t%e organi5ation< Knowledge 7ers&ecti.e and 7aradigm +%ift@ It is not only t%e info and knowledge of select few managers w%ic% is reFuired to sustain and grow in t%e 21st century global market< In fact to deal wit% customer market, you %a.e to take care of t%e internal em&loyee market< =%ey are t%e one w%o know t%e business &rocess, sales &rocess, marketing &rocess and o&eration &rocess< If t%ey are %a&&y and com&etent, t%ey will &ro.ide t%e better ser.ice and &roducts to t%e e9ternal customers and bring %ig%er &rofits< =%e e9&erience, e9&ertise of t%e staff must be continuously en%anced t%roug% learning and u&dation in t%eir formal and informal knowledge< In t%e twenty(first(century landsca&e, firms must com&ete in a com&le9 and c%allenging conte9t t%at is being transformed by many factors, from globali5ation, tec%nological de.elo&ment, and increasingly ra&id diffusion of new tec%nology, to t%e de.elo&ment and use of knowledge< =%is new landsca&e reFuires firms to do t%ings differently in order to sur.i.e and &ros&er< +&ecifically, t%ey must look to new sources of com&etiti.e ad.antage and engage in new forms of com&etition< =%is, in turn, reFuires a clear understanding of t%e nature of com&etition and com&etiti.e dynamics< 4ne &o&ular a&&roac% to understanding com&etiti.e dynamics is t%e resource(based .iew of t%e firm< 3ccording to t%is .iew, t%e e9&lanation for w%y some firms ultimately succeed and ot%ers fail can be found in understanding t%eir resources and ca&abilities< 3 firmAs resources and ca&abilities influence bot% t%e strategic c%oices t%at managers make and t%e im&lementation of t%ose c%osen strategies< =o understand w%y certain com&etiti.e strategies are more effecti.e t%an ot%ers, one must consider t%e distribution of resources in com&eting firms< 3lt%oug% a gi.en firm may &ossess more or less of any &articular resource, only t%ose resources t%at are rare, .aluable, and difficult to imitate &ro.ide a sustainable com&etiti.e ad.antage< W%en t%e strategies em&loyed are successful in le.eraging t%e firmAs rare, .aluable, and difficult(to(imitate resources t%at firm is likely to gain an ad.antage o.er its com&etitors in t%e market&lace and t%us earn %ig%er returns< om&etiti.e ad.antages t%at are sustained o.er time lead to %ig%er &erformance< =%ese arguments are somew%at clear w%en we consider tangible resources suc% as buildings, mac%inery, or access to ca&ital< 3nd in t%e more traditional com&etiti.e landsca&e, t%ese tangible resources were t%e most im&ortant &otential sources of com&etiti.e ad.antage< =%us, if a firm could moderni5e its &lant, or de.elo& a more efficient distribution &rocess, or access c%ea&er credit, it could com&ete successfully and &ros&er< )ut firms em&loy bot% tangible and intangible resources in t%e de.elo&ment and im&lementation of strategies, and as t%e nature of work and com&etition c%anges, intangible resources are becoming more im&ortant< 19am&les of intangible resources are re&utation, brand eFuity, andZfor our &ur&oses t%e most im&ortant of t%ese %uman ca&ital< In fact, in any com&etiti.e landsca&e it %as been argued t%at intangible resources are more likely to &roduce a com&etiti.e ad.antage because t%ey often are truly rare and can be more difficult for com&etitors to imitate< 3mong a firmAs intangible resources, %uman ca&ital may be t%e most im&ortant and critical for com&etiti.e ad.antage because it is t%e most difficult to imitate< !enerally s&eaking, %uman ca&ital is more mobile t%an ot%er intangible resources< =%erefore, it may seem an unlikely source of sustained com&etiti.e ad.antage< 4nce an organi5ation integrates %uman ca&ital wit% ot%er com&lementary resources and uses t%is integration to create organi5ational ca&abilities Bt%at is, le.erages t%emC, losing one or a few indi.iduals may not lead to a loss of com&etiti.e ad.antage< Instead, a com&etitor would %a.e to gain access to all of t%e resources and t%e system in &lace to le.erage t%ose resources< 0uman a&ital as a +trategic Resource 0uman ca&ital is a general term t%at refers to all of t%e resources t%at indi.iduals directly contribute to an organi5ation@ &%ysical, knowledge, social, and re&utation< 0owe.er, we need to under(stand w%at it is about N o&yrig%t >irtual :ni.ersity of 7akistan 28Knowledge Management EM!M=(/#0 >: %uman ca&ital resources t%at %el&s indi.iduals contribute to gaining and sustaining a com&etiti.e ad.antage< During t%e industrial age, %uman ca&ital was .alued because of &%ysical resources suc% as strengt%, endurance, and de9terityZ t%ese were t%e as&ects of %uman ca&ital t%at were most likely to lead to com&etiti.e ad.antage< )ut as new mac%inery and tec%nology were introduced, t%ese c%aracteristics became less im&ortant< In t%e current economic landsca&e, %uman ca&ital is more likely to be .alued for intellect, social skills, and re&utation< In todayAs com&etiti.e en.ironment, w%ere t%ere is e.en more uncertainty and dynamism, t%ese knowledge( based resources are e.en more im&ortant t%an t%ey were in t%e &ast< =%e term knowledge(based resources refer to skills, abilities, and learning ca&acity< 7eo&le can de.elo& t%ese t%roug% e9&erience and formal training< +ocial resources Bnow sometimes referred to as social ca&italC include t%e &ersonal relations%i&s t%at bind toget%er members of an organi5ation as well as relations%i&s t%at link organi5ational members to ot%er e9ternal sources of %uman ca&ital< =%roug% social ca&ital, indi.iduals can gain access bot% to ot%er %uman resources Bt%e &%ysical and intellectual ca&ital, for e9am&leC and to ot%er forms of ca&ital Bfinancial, for e9am&leC< We must em&%asi5e again, %owe.er, t%at it is not enoug% to acFuire indi.iduals w%o %a.e suc% attributes< It is also necessary to de.elo& structures, systems, and strategies t%at allow t%e organi5ation to e9&loit t%e resources and gain com&etiti.e ad.antage< $or e9am&le, a football team t%at acFuires a strong &assing Fuarter(back only gains a com&etiti.e ad.antage w%en it s%ifts its offensi.e strategy to focus on &assing< 7rofessional ser.ice firms le.erage t%eir %uman ca&ital by forming &roKect teams led by senior e9&erienced &rofessionals, often &artners in t%e firm< =%e ot%er members of t%e &roKect teams usually are younger, less e9&erienced associates< In t%is way, t%ey le.erage t%eir most .aluable %uman ca&ital to com&lete &roKects for clients< Working toget%er on t%e &roKect also allows t%e associates to gain some of t%e tacit knowledge &ossessed by t%e more senior &artners6 t%ey learn by doing 4f course, some sc%olars and &ractitioners %a.e always under(stood t%e role of %uman ca&ital in creating an organi5ationAs success< arly $iorina, 14 of 0ewlett(7ackard, em&%asi5ed t%e role of %uman ca&ital in an address s%e made to MI= graduates@ G=%e most magical and tangible and ultimately t%e most im&ortant ingredient in t%e transformed landsca&e of 21st century and in knowledge based economy is &eo&le< =%e greatest strategy, t%e greatest financial &lan, t%e greatest turnaround, is only going to be tem&orary if it is not grounded in &eo&leH Knowledge()ased Resources Knowledge(based resources include all t%e intellectual abilities and knowledge &ossessed by em&loyees, as well as t%eir ca&acity to learn and acFuire more knowledge< =%us, knowledge(based resources include w%at em&loyees %a.e mastered as well as t%eir &otential for ada&ting and acFuiring new information< $or se.eral reasons, t%ese resources are seen as being e9tremely im&ortant for sustaining com&etiti.e ad.antage in todayAs en.ironment< $irst, t%e nature of work %as been c%anging o.er t%e &ast se.eral decades, so t%at many Kobs reFuire &eo&le to t%ink, &lan, or make decisions, rat%er t%an to lift, assemble, or build< =%is kind of work reFuires bot% tacit and e9&licit knowledge< )ut work continues to c%ange, and in un&redictable ways< It is often difficult to state e9actly w%at kinds of knowledge a &erson needs to succeed on t%e Kob, and it is almost im&ossible to &redict w%at ty&es of knowledge %e or s%e will need in t%e future< %ange and un&redictability in organi5ations mean t%at knowledge(based resources suc% as t%e ability to learn and &ersonality traits suc% as ada&tability are e9tremely im&ortant, and some organi5ations %a.e begun rewarding em&loyees financially w%en t%ey demonstrate an ability to acFuire and master new knowledge< N o&yrig%t >irtual :ni.ersity of 7akistan #0Knowledge Management EM!M=(/#0 >: -1++4N " +=R3=1!I 4R74R3=1 3++1=+ 4$ 3 #RD MI--1NNI:M 4R!3NI[3=I4N, KN4W-1D!1 03R3=1RI+=I+ %aracteristics of Knowledge Knowledge defies normal economic rules< 0arlan le.eland, writing in %is eminently readable book, =%e Knowledge 19ecuti.e, describes si9 s&ecial c%aracteristics of information or e9&licit knowledge< It is 1< 19&andable< :nlike ot%er resources t%at are managed because of t%eir scarcity .alue, t%e more it is used t%e more is generated< 2 om&ressible< It can be summari5ed for easier %andling and can be &ackaged into small &%ysical formats< #< +ubstitutable< In many situations it can re&lace &%ysical and ot%er forms of resource< =%us telecommunications reduces t%e need for &%ysical trans&ort< '< =rans&ortable< It can mo.e from &lace to &lace, Fuickly and easily, ready for collecting w%en t%e reci&ient c%ooses< *< Diffusi.e< It tends to leak< 3s tec%nology im&ro.es, it become e.er more difficult to sto& re&roduction and transmission< / +%areable< If it is gi.en to anot%er &erson, t%e first &erson does not lose it< =acit knowledge is also e9&andable, diffusi.e and s%areable, but is not as easily transmitted or diffused< It is intangible and difficult to identify and describe< It is conte9t de&endent< =%ese c%aracteristics &resent some interesting management c%allenges< Making knowledge e9&licit means t%at it can be more readily co&ied, diffused and s%ared< 4n t%e ot%er %and t%is makes it OleakyO, and it could reac% undesirable &arties< =%e increasing rate of knowledge generation means t%at muc% e9isting knowledge %as s%ort O%alf(lifeO and its .alue decays Fuite Fuickly< It needs constant refres%ing and re.alidating t%roug% use< J Knowledge in.ol.es a %uman interaction wit% reality Bor wit% information about reality, or information about ot%er knowledge or informationC, w%ere t%e %uman is t%e subKect and acts as t%e acti.e, creati.e element, and modifies t%e latter by way of reconstructing it< Knowledge in.ol.es attribution of meaning and significance by t%e knower as a &erson< In fact, e.ery reconstruction is a reinter&retation as well< J W%en I know somet%ing, it is relati.e to me< =%ere can be no knowledge wit%out me< It is always in relation to my e9istence and my knowing it< Wit% my deat% dies my world, and wit% it my knowledge< In knowing somet%ing, I indi.iduali5e, subKectify, and a&&ro&riate it and make it my own< W%at I know, in t%e &rocess, becomes my own< J Knowledge is essentially social in nature< We need uni.ersal categories for generation, e9&ression, re&resentation, storage, retrie.al, and e9&ro&riation of knowledge< =%e categories are uni.ersal in t%e sense t%at BaC t%ey are ca&able of %olding t%e same meanings for all %umans belonging to t%e same community and BbC t%e categories can be sociali5ed in terms of being s%ared, reconstructed, and a&&lied by ot%er %umans belonging to t%e concerned uni.erse of discourse< J In knowing somet%ing, I belie.e it to be true< Wit%out t%is belief, it could Kust be some information, wit%out t%at stam& of indi.iduali5ed identity marked on it< =%is belief is a &art of a system of beliefs, .alues, and rationality, and %ence constitutes a res&onsibility and &otential commitment< J Knowing takes &lace in relation to e9isting knowledge(it is &lacing t%ings in conte9t, in relation to e9isting constructions of reality, content, and conce&ts, J Knowledge in.ol.es a Kudgment, a subsum&tion of t%e &articular under t%e uni.ersal< It in.ol.es a certain amount of synt%esis and integration of discreet information under a category, a construction, or an attribution of a causality or Kustifiability, relati.e to t%e knowerAs frame of reference< J Knowledge %as a moment of categorical im&erati.e and can induce a cogniti.e dissonance between belief and &ractice, between t%e &ast and t%e &resent, between t%e &reset and t%e future, N o&yrig%t >irtual :ni.ersity of 7akistan #1Knowledge Management EM!M=(/#0 >: between w%at is and w%at oug%t to be, and so on, and t%erefore, can form a s&ringboard for &otential action< In ot%er words, knowledge by definition is dri.en into &ractice< J Knowledge is always a &art of a dynamic system< Knowledge %as t%e tendency to go for more of itself, to by&ass itself, and t constantly de.elo& itself< It is only limited by mental and en.ironmental constraints< J Knowledge is gregarious by nature and %as a tendency to sociali5e itself< +ociali5ation is t%e means by w%ic% indi.idual knowledge gets reinforced, c%allenged, modified, im&ro.ed, and .alidated< J Knowledge &rocesses are always a &art of an, o&en system< It is like a game w%ere t%e goal&ost kee&s s%ifting itself< =%e meanings, t%e dictionaries, and e.en t%e rules of t%e language are always in flu9 E as .olatile as t%e turns in modern life< Knowledge creation, by definition, is a &rocess of inno.ation< W%at an 0a&&en =o Knowledge Knowledge an )e )orn W%at a&&arently distinguis%es 0omo sa&iens from t%e rest of t%e animal world is our ability to concei.e, store, and mani&ulate ideas linguistically a&art form t%e stimuli t%at ga.e rise to t%em< We can t%ink about and name a&&les E make reci&es for t%eir use, use t%eir .isual image for decoration, e.en name com&uters after t%em (( wit%out being under t%e influence of t%e smell, taste, feel, and a&&earance of actual a&&les< We can gi.e birt% to ideas as well as mani&ulate and c%ange t%em< ertainly e.ery com&any desires suc% intellectual fertility on t%e &art of its em&loyees, &articularly its leaders< )ut w%at are t%e circumstances t%at &ro.e most conduci.e to t%e birt% of new knowledge? W%ic% indi.iduals are most fertile in t%eir ability to generate new knowledge? W%y t%ese indi.iduals and not ot%ers? 0ow can t%ese indi.iduals be disco.ered and nurtured? =%ese are Fuestions asked by organi5ation and %uman enter&rises of all kinds< 4rgani5ations car.e knowledge s&anners muc% as li.ing organisms car.e re&roducti.e o&&ortunities and ca&abilities< In bot% cases, t%e moti.e is t%e same@ sur.i.al and ma9imi5ation of life e9&erience< =%e latter &%rase, admittedly .ague, may in.ol.e fulfillment t%roug% growt%, and &erce&tual satisfaction B&leasures of t%e senseC< Knowledge s&anners eFui& t%eir organi5ations to confront c%ange successfully, for e9am&le, ra&idly c%anging global markets can t%reaten t%e .iability of e.en t%e most establis%ed businesses< =%ese com&anies rely u&on new knowledge to maintain and e9tend t%eir markets< =%e com&anies %ig%ly .alued knowledge s&anners come u& wit% t%e biomedical formula, t%e algorit%m for a faster c%i&, t%e alloy for a lig%ter auto(body, or t%e economic model for a better de&loyment of resources t%at allow t%eir organi5ations to t%ri.e w%en ot%ers are failing< Increasingly, t%e s&anning of knowledge in.ol.es a &artners%i& between %uman cognition and mac%ine E based intelligence< W%en a &%armaceutical com&any conducts a com&le9 series of drug tests by means of com&uter analysis6 w%en a &%ysician makes a diagnosis based &rimarily on out&ut from an e9&ert system6 w%en an aeronautics cor&oration designs an aircraft form com&uter E based flig%t test data, t%e Fuestion of w%ere reFuisite knowledge resides for t%ese tasks is not easily answered< 4n one %and, %uman &roKect designers and data inter&reters are certainly im&ortant knowledge sources< 4n t%e ot%er %and, com&uters or ot%er systems generate substantial and significant knowledge< =raditionally based on %uman in&uts, t%is artificial knowledge is increasingly self E generated by artificial intelligence ca&abilities< 3ny &lan for knowledge management must make &ro.ision for bot% direct %uman knowledge an indirect %uman knowledge, as mediated by mac%ines, w%ic% e9tend and en%ance t%e &owers of mind< Knowledge an Die In terms of s%eer Fuantity, t%e .ast maKority of t%ings knows by %uman beings die wit% t%em< $ew of us record e.en on E t%ousandt% &art of our knowledge accumulated form life e9&eriences< 7ut in organi5ational terms, we are indi.idually Fuite &oor at Gtransition &lanning<H 4ur stores of knowledge go wit% us to t%e gra.e almost entirely w%ole, lea.ing eac% new generation to rein.ent muc% knowledge t%at could %a.e been its birt%rig%t< N o&yrig%t >irtual :ni.ersity of 7akistan #2Knowledge Management EM!M=(/#0 >: It could be argued, of course, t%at most im&ortant knowledge ac%ie.ed during indi.idual %uman li.es gets &reser.ed in t%e form of books, Kournal an maga5ine articles, &atents, documentaries, oral %istories, and ot%er means< )y t%is logic, t%e loss of s%eer Fuantity of %uman knowledge t%roug% mortality is adeFuately com&ensated fro by &reser.ation of Fuality of knowledge< In effect, we are t%e ti& of t%e iceberg and t%erefore do not mourn t%e loss of t%e great unformed and une9amined mass of knowledge beneat% t%e surface< $or e9am&le, we cling to t%e works of Mo5art Bt%e ti& of t%e icebergC and are %ardly aware of w%at it means to lose t%e ca&acity Bi<e<, t%e geniusC to &roduce suc% works< =%e deat% of knowledge for an organi5ation occurs by means ot%er t%an t%e mortality of its members< $irms t%at downsi5e wit%out &ro.ision to &reser.e and e9tend necessary intellectual ca&ital can find t%emsel.es brain dead after terminations and layoffs< 3fter all, knowledge resides &rimarily wit%in %uman %eads6 w%en G%ead countH is reduced, ine.itably t%e sum of knowledge wit%in t%e organi5ations reduced, sometimes critically so< =%is %a&&ens es&ecially w%en a firm looks first to its %ig%est &aid, longest tenured em&loyees as &rime candidates for cor&orate bloodletting< $orm a financial management &ers&ecti.e, terminating a few %ig% &aid em&loyees may be less traumatic t%an firing many of t%e rank E and E file< )ut from a knowledgeEmanagement &ers&ecti.e, cutting off t%e e9&erienced %ead from t%e working body may be foolis% surgery indeed< Knowledge can also die due to &aradigm s%ifts< 3s&ects of knowledge t%at were im&ortant or sacred for one generation may cease to matter for anot%er generation< Inter&reting %uman c%aracter and %ealt%, for e9am&le, was inconcei.able for Western medie.al men and women a&art form t%e t%eory of bodily G%umorsH Bbe%a.ior E influencing fluidsC, suc% as &%legm, c%oler, and black bile< =%eir knowledge of t%ese mysterious substances %as become obsolete or anti E intellectual because t%e &aradigms we use to understand mental and &%ysical %ealt% %a.e c%ange< W%en &aradigm s%ifts occur, little intellectual effort is s&ent &ro.ing t%e &ast wrong< 3ll knowledge resources Fuickly turn to t%e larger and a&&arently more &romising task of &ro.ing t%e new .ision rig%t< In s%ort, w%en t%e &aradigm s%ifts, t%e knowledge of t%e &ast is not GkilledH or &ro.en to be wrong< Instead, it is allowed to die from inattention, in t%is sense, &aradigm s%ifts are largely r%etorical acts arising form t%e ability of new &aradigm t%inkers to &ro.ide &owerful e9&lanations of anomalies in t%e old &aradigm< Knowledge management takes t%e deat% of knowledge seriously and acce&ts no &aradigm s%ift on blind fait%< Knowledge management takes t%e deat% of knowledge seriously and acce&ts no &aradigm s%ift on blind fait%< Knowledge managements seeks to understand causes for t%e failing %ealt% or deat% of knowledge< It memoriali5es and &er&etuated w%at can and s%ould be sal.aged from t%e demise of a &aradigm< Knowledge an )e 4wned In s&ite of %ig% literacy rates in de.elo&ed countries, most knowledge .aluable for increasing wealt% is &ri.ately %eld< Knowledge unrelated to or marginally related to wealt% is freely a.ailable because it ser.es no oneAs s&ecific interest in t%e market&lace< +uc% free knowledge is t%e stuff of general education E %istory, literature, music, art, &%iloso&%y, cultural a&&reciation, languages, and so fort%< In ot%er words, t%e works of +%akes&eare are a.ailable to all of us not because +%akes&eare willed it so E %e c%arged &er .iew, in fact, as co(owner of t%e globe =%eatre E but because since +%akes&eareAs deat% no one %as built an industry based on any kind of s&ecial or &ro&rietary knowledge contained wit%in %is &lays and &oetry< =%e same cannot be said for t%e knowledge necessary to make &aint, &reser.e food, make or re&air com&uters, or remo.e air &ollution< =%ese and countless ot%er tec%nological and industrial functions are based on knowledge t%at is not made generally a.ailable< 3 com&anyAs com&etiti.e ad.antage,H in fact, often lies &recisely in its &ri.ately %eld knowledge< +e.eral im&lications fan out from t%e notion of &ri.ately owned knowledge< $irst, t%e identity of t%e owner must be clarified< Researc% ad de.elo&ment &ersonnel at com&uter, drug, cosmetic, and ot%er similar com&anies routinely sign e9&licit and binding agreements wit% t%eir em&loyer t%at all knowledge accumulated, disco.ered, or de.elo&ed during and after t%eir em&loyment remains t%e sole &ossession of t%e em&loyer< No mater %ow careful t%e wording of owners%i& agreements, of course, truly ad.antageous knowledge often %as a way of Ggetting out,H usually wit% de.astating results in t%e market&lace< Netsca&eAs N o&yrig%t >irtual :ni.ersity of 7akistan ##Knowledge Management EM!M=(/#0 >: Gowners%i&H of Internet browsing tec%nologies, for e9am&le was closely imitated Esome %a.e said stolen E by Microsoft, wit% substantial market losses to Netsca&e< Knowledge management de.ises ways to determine w%at knowledge s%ould be &ri.ately %eld and %ow it can be &rotected from com&etitors and clients< Modern organi5ation find uniFue ways to &ierce t%e s%ield of &ri.ately %eld knowledge< In t%e many industries, com&anies acFuire &ro&rietary knowledge Bfriendly or %ostile acFuisitions, %iring away key em&loyees, and re.erse engineering &roducts are common tacticsC< =%en t%at knowledge is o&enly imitated, wit% t%e often(cynical strategy t%at legal c%allenges will take years in t%e courts to resol.e E years during w%ic% t%e war for market s%are and &rofitability will be won and t%e issue of knowledge owners%i& will become moot< )y and large, com&anies %a.e been unsuccessful in attem&ting to &rotect knowledge t%at dri.es sustained com&etiti.e ad.antage< 1.en &roducts and &rocesses t%at are &atented or trademarked under t%e laws of one country are stolen by com&anies not .ulnerable to legal or &olitical sanctions from t%at country< =%e blatant t%eft of :<+< tele.ision tec%nology in t%e 18/0s by 3sian com&etitors is a classic e9am&le< +o de.astating was t%is loss of &ro&rietary knowledge t%at, for all intents and &ur&oses, t%e :<+< tele.ision manufacturing industry ceased to e9ist by 1820< +imilar GborrowingH %as occurred more recently in t%e c%i& making, disk dri.es, and telecommunication de.ice industries< :<+< manufacturers %a.e largely gi.en u& efforts to sto& knowledge &iracy t%roug% international courts or t%roug% t%e 3merican &olitical system< Instead, :<+< manufacturers %a.e ado&ted a Gfirst;best;leastH &%iloso&%y of %itting t%e market &lace first and %ard wit% new &roducts, maintaining Fuality standards, and &ricing &roducts at le.els t%at discourage start(u& enter&rises from co&ying t%em< 3t best, %owe.er, t%is a&&ears to be a des&eration strategy t%at concei.es and de.elo&s new markets only to gi.e t%em o.er e.entually to t%e idea &irates< =%e im&etus falls u&on 3merican com&anies to continually inno.ate E and con.ince t%e market&lace to &urc%ase GnewH E w%ile foreign com&etitors &lay a waiting game based on ser.ing mass markets wit% ine9&ensi.e imitations< 1ffecti.e knowledge management assesses w%at knowledge must be &rotected for com&etiti.e ad.antage, %ow t%at knowledge will be &rotected, and to w%at degree legal and &olitical entities can be trusted to enforce laws related to owners%i& of intellectual &ro&erties< Knowledge is Immanent as Well as 19tant Not all knowledge wort% managing in an organi5ation is e9&licit and .isible< Muc% organi5ational knowledge is %eld in creati.e reser.e in t%e form of %uman resources and com&uter e9&ert systems< =%is immanent and &reformed knowledge %as t%e &otential for becoming e9tant and formed at any moment, Kust as t%e energy wit%in a battery can be ta&&ed w%en needed< 3 brain surgeonAs e9&ertise and ca&acity for action is an e9am&le of immanent knowledge< 3fter years of study and &ractice, few brain surgeons can list t%e items wit%in t%eir knowledge bases< +urgeonsA core com&etencies lie in immanent knowledge E dee& wells of insig%t, reflection, memory, and intuition t%at can be summoned w%en t%e need arises< =%e .isible, e9tant Gs&arkH of correct decisions and actions come to t%e fore in life(and(deat% circumstances< +imilar knowledge banks are in t%e minds of .irtually all &ersonnel w%o e9ercise creati.e, t%inking functions wit%in organi5ations< Immanent knowledge remains a c%allenging but crucially im&ortant as&ect of knowledge management< Dust as brain surgeons must create and maintain t%eir immanent knowledge, organi5ations may use knowledge management to &reser.e suc% .ital knowledge< =%is &ros&ect forces us to confront se.eral key Fuestions< 0ow does one nurture immanent knowledge wit%out force(feeding it in a disru&ti.e way? $urt%er, %ow does one monitor immanent knowledge to ensure t%at its store of resources is increasingly .ital and rele.ant to t%e needs of t%e organi5ation? $inally, %ow does an organi5ation &re.ent unnecessary redundancy in immanent knowledge? 0o many &eo&le need s&eciali5ed &rocedures t%at only a few will e.er &erform? 0asty answers are dangerous because t%e absence of suc% knowledge in%ibits Gs&in(offH insig%ts and may corru&t decision making in related areas< In s%ort, a degree of redundancy in immanent knowledge resources &robably is desirable if it encourages w%oleness of .ision and broad &ers&ecti.e in decision making< N o&yrig%t >irtual :ni.ersity of 7akistan #'Knowledge Management EM!M=(/#0 >: Knowledge an be +tored It can safely be estimated t%at more knowledge %as been e9ternali5ed Bt%at is, made obser.able and &reser.ableC in t%e last 20 years t%an in t%e entire &re.ious %istory of mankind< 4n &a&er, film, ta&e, and abo.e all by electronic storage means we %a.e Glent our minds out< $or e9am&le, 12,000 new sites &er week continue to a&&ear on t%e Internet< )ut now t%at we %a.e so energetically e9ternali5ed knowledge we face an une9&ected and ironic &roblem@ %ow to internali5ed knowledge again< !etting knowledge out of our %eads and onto disks or &a&er was a feat of tec%nology6 getting facts back into our %eads for &ractical and creati.e use is a task t%at in.ol.es muc% more t%an tec%nology< =%e central intellectual work of t%e 21st century may lie not so muc% in accumulating e9ternali5ed banks of knowledge as in de.elo&ing time(efficient ways to &rocess selected &ortions of t%at knowledge t%roug% a c%i& w%ose essential circuits %a.e not and will not c%ange@ t%e c%i& between t%e ears< GReal( timeH internali5ation of knowledge may be t%e most im&osing c%allenge< 3 training .ideota&e or mo.ie, for e9am&le, cannot be internali5ed by t%e %uman mind using a Gfast(forwardH tec%niFue< =%e ta&e must be &layed in real time for %uman learning to take &lace< =raditional lectures and muc% educational software are similarly bound by real(time constraints< )y contrast, still &%otos and, to a lesser degree, book or maga5ine &ages can be accessed in Gmind time,H wit% t%e ro.ing intellectual eye free to locate and select bits of content wit%out also in.ol.ing t%e entire surrounding conte9t< D, .ideodisk, and Gcom&uter searc%H tec%nologies offer similar accessibility wit%out t%e necessity to &lay t%roug% a co%esi.e conte9t to ferret out a desired bit of content< =%e most &oignant e9am&le of t%is dilemma lies in t%e efforts of elementary sc%ools to Gget wiredH to t%e Internet and t%ereby en%ance t%e accessible knowledge and e9&erience base of t%eir students< )ut w%en well(intentioned teac%ers ad.ise students to searc% for information on to&ics of interest, bot% teac%ers and students Fuickly confront t%e c%aos of knowledge t%at currently c%aracteri5es t%e Internet< 3 second(grader searc%ing for information on Ggoldfis%H using t%e Info(seek searc% engine was dumfounded and discouraged to confront more t%an 100,000 G%itsH for %is searc% term E wit% t%e o&tion, adding insult to inKury, to seeing t%em 10 at a time< BGlick to see t%e ne9t ten<HC W%ere does one begin to make sense or use out of knowledge base t%at lacks familiar searc% &at%s, or %euristics, congenial to %uman learning and reflections? Knowledge an )e ategori5ed In addition to t%e distinctions already suggested between immanent and e9tant knowledge, t%e .arious ty&es of knowledge common wit%in an organi5ation can be enumerated< -abel knowledge is t%e .ast catalog of names t%at we attac% to t%e flora and fauna t%at make u& t%e Kungle of our &articular organi5ation< 3s a &ractical organi5ational necessity, names for t%ings matter for day(to(day o&erations and efficiency< )ut label knowledge too often becomes an obsessi.e( com&ulsi.e totem for minds t%at eFuate organi5ational learning wit% mastery of Kargon ad labels< In suc% an en.ironment, newcomers to t%e organi5ation are &illoried by old(timers until t%e ingTnues are able to s&eak t%e s&eciali5ed language of terms, tags, and titles correctly< 1ntire cultures wit%in branc%es of t%e military, academic disci&lines, and t%e &rofessions are built u& in large &art of suc% sensiti.ity to label knowledge< !od %el& t%e GgruntH w%o doesnAt know t%e internal label language of t%e 3rmy E or t%e sociologist, for t%at matter, w%o accidentally calls a s&ade a s&ade< It goes almost wit%out saying t%at label knowledge makes u& an e9clusionary wall by w%ic% lawyers se&arate t%emsel.es, e9&ensi.ely, from t%e world of common sense and fort% brig%t e9&ression< 7rocess knowledge in.ol.es knowing %ow t%ings work, e.en if one cannot name all com&onents acti.e wit%in t%e &rocess Bi<e<, label knowledgeC< )usiness en.ironments .alue &rocess knowledge on t%e micro(le.el E engineers w%o know %ow a %eating system o&erates, for e9am&le E but often fail to recogni5e t%e im&ortance of &rocess knowledge at t%e macro(le.el< =%is %as occurred, and still occurs, in s&ite of nearly a decade of )usiness 7rocess Reengineering t%at e9&licitly focused management attention on gaining knowledge about &rocesses< 0ow can one describe t%e core &rocesses at work in a large organi5ation suc% as !eneral 1lectric< Indi.idually, eac% em&loyee knows Bor s%ould knowC t%e &rocesses in w%ic% %e or s%e is in.ol.ed< )ut w%at can be said of larger &rocess &atterns E and w%o is in a &osition to obser.e and describe t%ose &rocesses? N o&yrig%t >irtual :ni.ersity of 7akistan #*Knowledge Management EM!M=(/#0 >: Knowledge management s%ould &ay attention to bot% t%e micro( and macro(le.els of &rocess knowledge< If t%e macro(le.el &rocess is t%e building of a &yramid, for e9am&le, t%at knowledge influences t%e s&ecific work of stonecutters and laborers at t%e micro(le.el< )ut, beyond a .ague notion of increasing s%are%older .alue, too many organi5ations des&air of attaining &rocess knowledge at suc% a macro(le.el< In effect, t%ey do not know w%et%er t%ey are building a &yramid or a coliseum, but t%eir em&loyees %ad better be Fuick about doing so< +kill knowledge knows %ow to do somet%ing of .alue to t%e organi5ation< =%is le.el of knowledge %as long been managed de.otedly by com&anies t%roug% Kob descri&tions, training &rograms, &erformance e.aluations, and ot%er means< )ut once skill sets %a.e been determined, com&anies tend to look u&on t%em as unc%anging constellations in t%e nig%t sky E &atterns t%at are Gt%ereH along wit% t%e furniture at t%e com&any< =%ese skill sets become t%e basis of most %iring, and %ence define t%e o.erall core com&etencies of t%e organi5ation< =%e coming era reFuires a muc% more fluid .iew of skill knowledge< om&uter com&anies %a.e already found t%at an em&loyeeAs ability to learn Fuickly and well is an infinitely more .aluable skill in a ra&idly c%anging business en.ironment t%an is a more .ocationally oriented, s&ecific skill< Knowledge management for t%e new century reFuires t%at skill knowledge be defined and de.elo&ed so t%at new &atterns Bconstellations of skill &ointsC can come toget%er Fuickly to meet emerging market needs< 7eo&le knowledge< =%is diffuse but .irtually im&ortant category of knowledge com&rises all t%e insig%ts, intuitions, and relational information we use to work wit% ot%er &eo&le< In t%e iceberg analogy &re.iously cited, t%is kind of knowledge is truly subsurface but wit%in organi5ations< :sually it is managed ineffecti.ely or not at all &reface but .ast wit%in organi5ations< :sually it is managed ineffecti.ely or not at all &recisely because of its lack of .isibility< $ew com&anies t%ink about w%at knowledge t%eir em&loyees s%ould %a.e about one anot%erAs moti.es, communication styles, or &rofessional goals< Interestingly, t%e same com&anies e9&ect em&loyees to congeal into efficient, co%esi.e work teams but de.ote little t%oug%t to t%e &eo&le knowledge t%at makes suc% tams &ossible< Knowledge management brings &eo&le knowledge to .isibility and to a &osition of &rominence in a framework for understanding and using knowledge wit%in t%e cor&oration< N o&yrig%t >irtual :ni.ersity of 7akistan #/Knowledge Management EM!M=(/#0 >: -1++4N 2 71R+71=I>1+ 4$ KN4W-1D!1 M3N3!1M1N= 3ND =01 $4R1+ DRI>IN! KM W%y Knowledge Management? 3 new word for t%e consumer in todayAs market, G&rosumer,H refers to t%e consumer w%o is no longer in t%e &assi.e market w%ere goods are offered at t%e e9act face .alue< 7rosumers are more educated consumers, and t%ey demand more< =%ey &ro.ide feedback to manufacturers regarding t%e design of &roducts and ser.ices from a consumer &ers&ecti.e < =%is %as initiated new and radical c%anges in t%e business world< 1.en wit% recent tec%nology de.elo&ments suc% as networking, e(mail, and t%e Web, business %as yet to fully res&ond to t%e societal, cultural, and tec%nical c%allenges< 0owe.er, a &ositi.e res&onse to knowledge s%aring and knowledge management among growt%(oriented firms is beginning to a&&ear< KM %as already demonstrated a number of benefits and %as offered Kustification for furt%er im&lementation< =%e Internet facilitated its de.elo&ment and growt% .ia fast and timely s%aring of knowledge< )y s%aring knowledge, an organi5ation creates e9&onential benefits from t%e knowledge as &eo&le learn from it< =%is makes business &rocesses faster and more effecti.e and em&owers em&loyees in a uniFue way< $or e9am&le, MicrosoftAs 0otmail ser.ice ad.anced t%e wide use of e(mail t%at allowed users to e9c%ange information t%roug% any Web browser< =odayAs Web(based interface is t%e norm for most Internet ser.ice &ro.iders< )ased on a number of &ublis%ed studies, KM %as %ad a &ositi.e im&act on business &rocesses< =%e goal is to ca&ture t%e tacit knowledge reFuired by a business &rocess and encourage knowledge workers to s%are and communicate knowledge wit% &eers< Wit% suc% knowledge, it is easier to determine w%ic% &rocesses are more effecti.e or less effecti.e t%an ot%ers< =%e main constraint in KM, %owe.er, is initially ca&turing it< 0owe.er, if an organi5ation can succeed in ca&turing and dis&ersing knowledge, t%e benefits are endless< 3 com&any can le.erage and more fully utili5e intellectual assets< It can also &osition itself in res&onding Fuickly to customers, creating new markets, ra&idly de.elo&ing new &roducts, and dominating emergent tec%nologies< 3not%er benefit of KM is t%e intangible return on knowledge s%aring rat%er t%an knowledge %oarding< =oo often, em&loyees in one &art of a business start from Gscratc%H on a &roKect because t%e knowledge needed is somew%ere else but not known to t%em< 3s a result of KM, systems %a.e been de.elo&ed to gat%er, organi5e, refine, and distribute knowledge t%roug%out t%e business< In %is study of +mart )usiness, )otkin B1888C suggests si9 to& attributes of knowledge &roducts and ser.ices@ J -earn< =%e more you use t%em, t%e smarter t%ey get and t%e smarter you get, too< J Im&ro.e wit% use< =%ese &roducts and ser.ices are en%anced rat%er t%an de&leted w%en used, and t%ey grow u& instead of being used u&< J 3ntici&ate< Knowing w%at you want, t%ey recommend w%at you mig%t want ne9t< J Interacti.e< =%ere is two(way communication between you and t%em< J Remember< =%ey record and recall &ast actions to de.elo& a &rofile< J ustomi5e< =%ey offer uniFue configuration to your indi.idual s&ecifications in real time at no additional cost< During t%e 18/0s and 18"0s, tec%nology was focused on automating %ig%(.olume static &rocesses suc% as claims &rocessing, mortgage loan u&dating, airline reser.ation systems, and t%e like< =%e emergence of e(commerce in t%e late 1820s and 1880s s%owed %ow information tec%nology could im&lemented a new way of doing business effecti.ely< 1.er(increasing &rocessing &ower, %ig% bandwidt% data transmission, and networking made it &ossible to re(en.ision %ow business gets done< It %as also c%anged t%e business en.ironment and introduced new com&etiti.e im&erati.es< 3mong t%em are@ N o&yrig%t >irtual :ni.ersity of 7akistan #"Knowledge Management EM!M=(/#0 >: J Reacting instantly to new business o&&ortunities, w%ic% led to decentrali5ed decision making Band com&etencyC at t%e front lines, w%ere t%e action is< Wit% t%at came t%e desire to build mutual trust between knowledge workers and management and to coo&erate in %andling time(sensiti.e tasks< J )uilding better sensiti.ity to Gbrain drain<H It %as been said t%at Ge9&ertise gra.itates toward t%e %ig%est bidderH << More and more com&anies reali5e t%e im&ortance of managing and &reser.ing e9&ertise turno.er< $or t%e %uman resources de&artment, t%e key Fuestion is G0ow does t%e firm re&lace e9&ertise w%en it retires, resigns, or sim&ly lea.es? J 1nsuring successful &artnering and core com&etencies wit% su&&liers, .endors, customers, and ot%er constituents< =odayAs tec%nology %as enabled com&anies to reengineer t%e ways to do business< !etting &artners u& to your s&eed reFuires more t%an fast tec%nology< Knowledge workers and ot%ers wit%in t%e com&any s%ould ensure t%at coo&eration and coordination of work are &racticed for t%e good of t%e firm< 3ndersen consulting Bnow 3ccentureC &ro.ides anot%er e9am&le of a well(de.elo&ed knowledge( s%aring system, called 3Net< =%is electronic system connects em&loyees and encourages t%e s%aring of knowledge< 3Net allows an em&loyee to use t%e total knowledge of 3ccenture Bformerly 3rt%ur 3ndersenC to sol.e a customer &roblem anyw%ere in t%e world t%roug% electronic bulletin boards and to follow u& wit% .isual and data contacts< In t%eory, 3Net e9&ands t%e ca&abilities and knowledge a.ailable to any customer to t%at of t%e entire organi5ation< It furt%er en%ances em&loyee &roblem( sol.ing ca&acity by &ro.iding access to com&iled subKect, customer(reference, and resource files a.ailable eit%er directly t%roug% t%e system or from D(R4Ms a.ailable to all offices< )ased on e9&erience, 3ccenture re&orted t%at tec%nological c%anges alone could not make 3Net successfully used by em&loyees< MaKor c%anges wit%in t%e organi5ation, suc% as c%anges in incenti.es and culture, were needed to create &artici&ation< KM Dustification J reates e9&onential benefits from t%e knowledge as &eo&le learn from it J 0as a &ositi.e im&act on business &rocesses J 1nables t%e organi5ation to &osition itself for res&onding Fuickly to customers, creating new markets, de.elo&ing new &roducts, and dominating emergent tec%nologies J )uilds mutual trust between knowledge workers and management and facilitates coo&eration in %andling time(sensiti.e tasks J )uilds better sensiti.ity to Gbrain drainH J 1nsures successful &artnering and core com&etencies wit% su&&liers, .endors, customers, and ot%er constituents J +%ortens t%e learning cur.e, facilitates s%aring of knowledge, and Fuickly enables less trained brokers to ac%ie.e %ig%er &erformance le.els J 1n%ances em&loyee &roblem(sol.ing ca&acity by &ro.iding access to com&iled subKect, customer(reference, and resource files a.ailable eit%er directly t%roug% t%e system or from D( R4Ms a.ailable to all offices< om&anies t%at fail to embed a .iable KM o&eration &robably suffer from se.eral o.ersig%ts or &itfalls@ J $ailing to modify t%e com&ensation system to reward &eo&le working as a team< =%e traditional met%od of com&ensating &eo&le based on t%e old(fas%ioned Ginformation(%oardingH &ractice does not work in a knowledge(s%aring en.ironment< Merit increases and bonuses s%ould be based on team contribution and team &erformance rat%er t%an Fuantity or .olume< J )uilding a %uge database t%at is su&&osed to cater to t%e entire com&any< !enerali5ed systems do not usually work well, because information and knowledge are not stratified to address s&eciali5ed areas of e9&ertise< Ideally, t%e %uman resources de&artment s%ould first determine w%o works best wit% w%o based on commonality of Kob ty&e or Kob e9&erience and t%en disco.er t%e knowledge t%at can be s%ared for eac% em&loyee to be more successful< N o&yrig%t >irtual :ni.ersity of 7akistan #2Knowledge Management EM!M=(/#0 >: J >iewing KM as a tec%nology or a %uman resource area< =%is o.ersig%t relates to t%e earlier one E w%ere %uman resources and information tec%nology efforts are &oorly coordinated E and defeats t%e &ur&ose be%ind embedding KM into t%e fabric of t%e organi5ation< =%e two de&artments s%ould work Kointly at introducing KM as &art of t%e organi5ational &rocesses< J 7lacing too muc% em&%asis on tec%nology< 3lt%oug% intranets, knowledge(based tools, data ware%ouses, and ot%er com&uter(based software are &art of t%e way todayAs organi5ation must ado&t, tec%nology is only t%e enabler of knowledge management< =%e knowledge it makes a.ailable must be organi5ed and disseminated to %uman decision makers to be of any use< J Introducing KM into t%e organi5ation .ia a sim&le &roKect to minimi5e &ossible losses< =%is is t%e wrong way to start KM< 3 com&any s%ould start wit% a strategy and a c%am&ion, wit% a focus on a wort%w%ile, %ig% &rofile &roKect t%at can set t%e tone for t%e rest of t%e organi5ation< It is a %ig% risk a&&roac%, but one t%at is most likely to &ay di.idends in t%e long run< J 7ursuing KM wit%out being ready< +&urred by t%e &aradigm s%ift in our economy, many cor&orations &ursue KM wit%out e.aluating w%et%er t%ey are organi5ationally ready 8stewart et al< 2000, '*C< In ot%er words, cor&orations t%at %a.e been o&erating under classical management &rinci&les cannot be successful in ado&ting KM wit%out maKor c%anges in culture, management attitudes, and communication skills< J 0a.ing &oor leaders%i&< -ike any %ig% &riority &roKect, KM is best im&lemented wit% determined c%am&ions and to& management commitment< $or e9am&le, !eneral 1lectric B!1C recogni5es an organi5ational culture o&en to ideas from all le.els of t%e com&any< )y encouraging best(&ractice s%aring, t%e com&any can gras& t%e knowledge wit%in t%e em&loyees and inno.ate t%e organi5ationAs &rocesses< Dack Welc%, former 14, %as establis%ed a knowledge management uni.ersity and freFuently teac%es t%e classes %imself< !1 %as incor&orated all le.els of t%e business and is well designed to s%are knowledge< =%e com&any is successfully able to use em&loyee in&ut and knowledge to &roduce a strategic ad.antage< =%e $orces Dri.ing KM< J Increasing Domain om&le9ity< =%e com&le9ity of t%e underlying knowledge domains is increasing< 3s a direct conseFuence, t%e com&le9ity of t%e knowledge t%at is reFuired to com&lete a s&ecific business &rocess task %as increased as well< !lobali5ation %as increased t%e domain com&le9ity for many organi5ations, w%ic% need to &ro.ide &roducts and ser.ices t%at meet t%e needs of customers across t%e globe< J 3ccelerating Market >olatility< =%e &ace of c%ange, or .olatility, wit%in eac% market domain %as increased ra&idly in t%e &ast decade< =%e e.ent of +e&tember 11 2001, cri&&led t%e tra.el industry almost o.ernig%t< In order to stimulate tra.el, com&anies in t%is industry were forced to reduce &rices to le.els way below t%eir break(e.en &rices< 3s a result, many com&anies in t%is sector were forced into bankru&tcy< J Intensified +&eed of Res&onsi.eness< =%e time reFuired to take action based on subtle c%anges wit%in and across domains is decreasing< =%e ra&id ad.ance in tec%nology continually c%anges t%e decision(making landsca&e, making it im&erati.e t%at decisions be made and im&lemented Fuickly, lest t%e window of o&&ortunity closes< In order to be able to continue to su&&ort rele.ant I= education, uni.ersities need to ada&t t%eir curriculum to current industry trends< In t%e &ast, degree curriculums were more static wit% infreFuent re.isions< In todayAs en.ironment t%ree(year(old I= curriculums are old E in terms of Internet yearsQ J Diminis%ing Indi.idual 19&erience< 0ig% em&loyee turno.er rates %a.e resulted in indi.iduals wit% decision(making aut%ority %a.ing less tenure wit%in t%eir organi5ations t%an e.er before< =%e recent dot(com e9&losion created many new o&&ortunities for I= &rofessionals t%at lured t%em away from t%eir &ositions< 3s a result, many organi5ations %ad to N o&yrig%t >irtual :ni.ersity of 7akistan #8Knowledge Management EM!M=(/#0 >: re%ire new talent to fulfill t%eir I= needs, and are now left wit% I= &rofessionals w%o lack t%e business e9&erience or understand t%e business culture at t%eir organi5ations< =%is creates a %uge barrier in terms of adeFuately su&&orting t%e needs of t%e organi5ation< =%e recent dot(com e9&losion created many new o&&ortunities for I= &rofessionals t%at lured t%em away from t%eir &ositions< 3s a result, many organi5ations %ad to re%ire new talent to fulfill t%eir I= needs, and are now left wit% I= &rofessionals w%o lack t%e business e9&erience or understand t%e business culture at t%eir organi5ations< =%is creates a %uge barrier in terms of adeFuately su&&orting t%e needs of t%e organi5ation< =%e Dri.ers Wit% t%ese Kustifications to consider, se.eral key KM dri.ers are wort% noting< 1ac% dri.er makes a com&elling case for KM< =ec%nology Dri.ers =%e &roliferation of tec%nology, data communications, networking, and wireless transmission %as re.olutioni5ed t%e way em&loyees store, communicate, and e9c%ange data at %ig% s&eed< =%e World wide Web %as c%anged KM from a fad to an e(business reality< Wit% a &ersonal com&uter , anyone can access &eo&le and information at any time and from anyw%ere< =oday, t%e same tec%nological infrastructure makes it &ossible to store, communicate, and e9c%ange knowledge< =%is makes tec%nology as core ca&ability le.eler, lea.ing knowledge as a com&etiti.e differentiator< It means t%at alt%oug% tec%nology can mo.e information or knowledge from %icago to )ombay to -a%ore at lig%tening s&eed, it is &eo&le w%o turn knowledge into timely and creati.e decisions< =omorrowAs successful com&anies are ones t%at use information tec%nology to le.erage t%eir em&loyeesA knowledge in ways t%at makes knowledge immediately a.ailable and useful< It also im&lies Fuality ma9imi5ation and cost minimi5ation o.er t%e long term< 7rocess Dri.ers 4ne of t%e most critical sets of KM dri.ers is designed to im&ro.e work &rocesses< Im&lied in t%is area is t%e elimination of du&licate mistakes by learning from t%e &ast and by transferring t%e best e9&eriential knowledge from one location or &roKect in t%e firm to anot%er< +tarting from scratc% wit% eac% &roKect makes no sense in terms of efficiency, &roducti.ity, and .alue( added contribution to t%e com&anyAs bottom line< 3not%er area w%ere KM can im&ro.e &rocess is t%e way com&anies react to market c%anges< GDust in timeH is one a&&roac% to minimi5ing in.estment in in.entory and more e9&editiously meting t%e demands of t%e consumer< Res&onsi.eness t%at e9ceeds t%e com&etition becomes t%e key contributor to differentiation< It reFuires knowledge of control &rocesses< KM means allowing com&anies to a&&ly uniFue knowledge t%at makes t%em more res&onsi.e to market c%anges by t%e %our< 7ersonnel(+&ecific Dri.ers =%is area of KM dri.ers focuses on t%e need to create cross( functional teams of knowledge workers to ser.e anyw%ere in t%e organi5ation and minimi5e &ersonnel turno.er as a t%reat to collecti.e knowledge< More and more of w%at was once .iewed as im&endent firms are now closely cou&led< 7roducts and ser.ices are Kointly %andled from di.erse disci&linary areas Bsuc% as &ackaging, manufacturing, engineering, and tec%nical skillsC, w%ere creati.e coo&eration is essential for inno.ation< )rainstorming, com&etiti.e res&onse, and &roacti.e &ositioning(all reFuire collaboration and coordination of .arious tasks wit%in and among cor&orations< 3not%er &ersonnel(s&ecific dri.er is minimi5ing knowledge walkouts< 0ig%ly marketable em&loyees wit% uniFue knowledge can s&ell disaster for t%eir em&loyer< om&etence drain t%at goes to t%e com&etition is &robably t%e worst t%at can %a&&en to a com&any struggling t%roug% t%e new knowledge economy< Knowledge(Related Dri.ers +e.eral KM dri.ers relate to t%e .ery conce&t of knowledge s%aring and knowledge transfer wit%in t%e firm< =%ey include re.isiting o.erlooked em&loyee knowledge, making critical knowledge a.ailable at t%e time it is needed, and finding a mec%anism to e9&edite a.ailable knowledge for immediate use< om&anies often know w%at t%ey know but %a.e difficulty locating it< =ake t%e case of a customer w%o wanted to return a &roduct t%at was initially &urc%ased from t%e same outfit in a different city to a local c%ain store< 3 code %ad to be entered into t%e com&uter to debit t%e initial store by t%e &rice of t%e &roduct and t%en credit t%e local store by t%e same amount< =%ere was only one em&loyee in t%e local store w%o knew t%e code< +%e %a&&ened to be on N o&yrig%t >irtual :ni.ersity of 7akistan '0Knowledge Management EM!M=(/#0 >: .acation< =%e customer ser.ice em&loyee could not find critical e9isting knowledge in time< +o, s%e %ad to contact t%e ot%er store for instructions on %ow to %andle t%e returned item< ounting wait time and learning t%e &rocedure took close to 1 %our, w%ile t%e customer was waiting< $inancial Dri.ers 3s an asset, knowledge defies economic t%eory, w%ere assets are subKect to diminis%ing returns o.er t%e long run< Knowledge assets increase in .alue as more and more &eo&le use t%em< Wit% t%is in mind, knowledge follows t%e law of increasing returns E t%e more knowledge is used, t%e more .alue it &ro.ides< KM &ro.ides a wort%w%ile o&&ortunity to integrate knowledge in a way t%at enric%es t%e Fuality of decision making t%roug%out t%e organi5ation< In t%e final analysis, t%e goal of KM is to &roduce a &ositi.e return on in.estment in &eo&le, &rocesses, and tec%nology< It means measurable efficiencies in &roduction< W%at is Knowledge Management? Knowledge management BKMC is a newly emerging, interdisci&linary business model t%at %as knowledge wit%in t%e framework of an organi5ation as its focus< It is rooted in many disci&lines, including business, economics, &syc%ology, and information management< It is t%e ultimate com&etiti.e ad.antage for todayAs firm< Knowledge management in.ol.es &eo&le, tec%nology, and &rocesses in o.erla&&ing &arts< Researc%ers as well as &ractitioners %a.e yet to agree on a definition< 0owe.er, eac% definition of KM contains se.eral integral &arts@ J :sing accessible knowledge from outside sources< J 1mbedding and storing knowledge in business &rocesses, &roducts, and ser.ices< J Re&resenting knowledge in data bases and documents J 7romoting knowledge growt% t%roug% t%e organi5ationAs culture and incenti.es J =ransferring and s%aring knowledge t%roug%out t%e organi5ation J 3ssessing t%e .alue of knowledge assets and im&act on a regular basis< In some ways, KM is about sur.i.al in a new business world E a world of com&etition t%at increases in com&le9ity and uncertainly eac% day< It is a world t%at c%allenges t%e traditional ways of doing t%ings< =%e focus is not only on finding t%e rig%t answers, but also on asking t%e rig%t Fuestions< W%at worked yesterday may or may not work tomorrow< =%e focus is on Gdoing t%e rig%t t%ingH rat%er t%an Gdoing t%ings rig%tH so t%at core com&etencies do not become core rigidities in t%e future< KM is t%e &rocess of ca&turing and making use of a firmAs collecti.e e9&ertise anyw%ere in t%e business E on &a&er, in documents, in databases Bcalled e9&licit knowledgeC, or in &eo&leAs %eads called tacit knowledgeC< It is im&lied t%at u& to 8* &ercent f information is &reser.ed as tacit knowledge< It is t%e fuel or raw material for inno.ation E t%e only com&etiti.e ad.antage t%at can sustain a com&any in an un&redictable business en.ironment< It is not intended to fa.or e9&ert systems of t%e early 1880s, w%en com&uters were &rogrammed to emulate %uman e9&ertsA t%oug%t &rocesses< =%e goal is to &resent a balanced .iew of %ow com&uter tec%nology ca&tures, distributes, and s%ares knowledge in t%e organi5ation by linking %uman e9&erts and documented knowledge in an integrated KM system< =%e goal is for an organi5ation to .iew all its &rocesses as knowledge &rocesses< =%is includes knowledge creation, dissemination, u&grade, and a&&lication toward organi5ational sur.i.al< =odayAs knowledge organi5ation %as a renewed res&onsibility to %ire knowledgeable em&loyees and s&ecialists to manage knowledge as an intangible asset in t%e same way t%at one calls on an in.estor to manage a financial &ortfolio< 3 firm seeks to add .alue by identifying, a&&lying, and integrating knowledge in un&recedented ways, muc% like an in.estor adds .alue by uniFue combinations of stocks and bonds< =%e &rocess is &art science, &art art, and &art luck< 3lternati.e definitions of Knowledge Management J Knowledge management is t%e &rocess of gat%ering a firmAs collecti.e e9&ertise w%ere.er it resides E in databases, on &a&er, or in &eo&leAs %eads E and distributing it to w%ere it can %el& &roduce t%e biggest &ayoff B0ibbard 188"C< N o&yrig%t >irtual :ni.ersity of 7akistan '1Knowledge Management EM!M=(/#0 >: J KM is a newly emerging, interdisci&linary business modeling wit% all as&ects of knowledge wit%in t%e conte9t of t%e firm, including knowledge creation, codification, s%aring, and %ow t%ese acti.ities &romote learning and inno.ation Bencom&assing tec%nology tools and organi5ational routines in o.erla&&ing &artsC )erkeley 2001C< J KM caters to t%e critical issues of organi5ational ada&tation, sur.i.al, and com&etence in t%e face of increasingly discontinuous en.ironmental c%ange< 1ssentially, it embodies organi5ational &rocesses t%at seek synergistic combinations of data and information &rocessing ca&acity of information tec%nology, and t%e creati.e and inno.ati.e ca&acity of %uman beings BMal%otra 1888C< J Knowledge management is t%e art of creating .alue from an organi5ationAs intangible assets B+.eiby 2000C< J Knowledge management is t%e classification, dissemination, and categori5ation of information and &eo&le t%roug%out an organi5ation B=aft 2000C< J Knowledge management is t%e disci&line of ca&turing knowledge(based com&etencies and t%en storing and diffusing t%at knowledge into business< It is also t%e systematic and organi5ed attem&t to use knowledge wit%in an organi5ation to im&ro.e &erformance BK7M! 2000C< J KM is really about recogni5ing t%at regardless of w%at business you are in, you are com&eting based on t%e knowledge of your em&loyees BDo%nson 2001C< J KM is a conscious strategy of getting t%e rig%t knowledge to t%e rig%t &eo&le at t%e rig%t time6 it is also %el&ing &eo&le s%are and &ut information into action in ways t%at stri.e to im&ro.e organi5ational &erformance B4ADell et al< 2000C< J Knowledge management is a framework, a management mind(set, t%at includes building on &ast e9&eriences Blibraries, data banks, smart &eo&leC and creating new .e%icles for e9c%anging knowledge Bknowledge(enabled intranet sites, communities of &ractice, networks B4ADell et al< 2000C< J KM is accumulating knowledge assets and using t%em effecti.ely to gain a com&etiti.e ad.antage B)rooking 188/C< J KM is a framework wit%in w%ic% t%e organi5ation .iews all its &rocesses as knowledge &rocessing, w%ere all business &rocesses in.ol.e creation, dissemination, renewal, and a&&lication of knowledge toward organi5ational sustenance and sur.i.al BMal%otra 2000C< J Knowledge management includes a combination of software &roducts and business &ractices t%at %el& organi5ations ca&ture, analy5e, and distill information Braig 2000C< J KM is not about tec%nology6 it is about ma&&ing &rocesses and e9&loiting t%e knowledge database< It is a&&lying tec%nology to &eo&leAs minds BDe.eau 2000C< J Knowledge management is t%e s%aring of information t%roug%out a com&any or e.en between business &artners< It creates an en.ironment in w%ic% t%e com&any le.erages all its knowledge assets B=re&&er 2000C< J KM can automate t%e classification of documents w%ile using mac%ine logic t%at comes as close as &ossible to %uman logic B0ersey 2000C< J Knowledge management is a disci&line of identifying, ca&turing, retrie.ing, s%aring, and e.aluating an enter&riseAs information assets B)air 2001C< =%e Knowledge 4rgani5ation 3 conce&tual structure of t%e knowledge organi5ation is as follows<< =%e middle layer addresses t%e KM life cycle E knowledge creation, knowledge collection or ca&ture, knowledge organi5ation, knowledge refinement, and knowledge dissemination< =%e ideal knowledge organi5ation is one w%ere &eo&le e9c%ange knowledge across t%e functional areas of t%e business by using tec%nology and establis%ed &rocesses< 7eo&le e9c%ange ideas and knowledge for &olicy formulation and strategy< Knowledge is also internali5ed and ado&ted wit%in t%e culture of t%e organi5ation< 3ll knowledge workers B&eo&leC are in an en.ironment w%ere t%ey can freely e9c%ange and &roduce knowledge assets by using .arious tec%nologies< =%is &rocess influences t%e com&any as a w%ole in a &ositi.e way< N o&yrig%t >irtual :ni.ersity of 7akistan '2Knowledge Management EM!M=(/#0 >: KM is Not 3bout J Knowledge management is not reengineering< Reengineering im&lies one(s%ot, drastic Gelectrical s%ockH c%ange in organi5ational &rocesses to im&ro.e efficiency< It is a mec%anical s%ift from one stage of o&eration to a more efficient stage, and it usually in.ol.es radical c%anges of business &rocesses and t%e &eo&le in.ol.ed< In contrast, KM im&lies continuous c%ange and addresses future t%reats and uniFue o&&ortunities< =%ere is continuous learning, unlearning, and relearning to ensure smoot% c%ange from to& to bottom< =%e focus is on c%ange t%at will generate gradual but solid gains in t%e com&etiti.e en.ironment< Knowledge management is engrained in t%e day(to(day o&erations of t%e business and directed by &eo&le w%o are directly connected wit% t%e c%anging world of t%eir com&anyAs business< J Knowledge management is not a disci&line< It is anot%er way of im&ro.ing Fuality, &rofitability, and growt%< J Knowledge management is not a &%iloso&%ic calling< KM goes to t%e core of an organi5ationAs intangible asset BknowledgeC, re.isits t%e knowledge, and ta&s into it< J Knowledge management is not intellectual ca&ital, &er se< Intellectual ca&ital BIC re&resents t%e .alue of a com&anyAs trademarks, &atents, or brand names< Intellectual ca&ital is a com&anyAs collecti.e brain&ower, or a com&osite of e9&erience, knowledge, information, and intellectual &ro&erty E all t%e &ro&erty of t%e organi5ation< 3lt%oug% treated in t%e literature t%e same as knowledge, knowledge, &er se, is t%e conseFuence of actions and interactions of &eo&le wit% information and knowledge e9c%ange based on e9&erience o.er time< J Knowledge management is not based on information< Information can become knowledge after &eo&le use it in ways t%at create .alue< Knowledge %as been .iewed as information in action< 3s we s%all e9&lain in %a&ter 2, information is conte9t(sensiti.e6 knowledge is consensus(oriented< J Knowledge management is not about data< Data Bfacts wit%out conte9tC or information Binter&retation or &atterns of dataC is not knowledge< J Knowledge .alue c%ain is not information .alue c%ain< In contrast, knowledge .alue c%ains .iew %umans as t%e key com&onents assessing and reassessing information stored in a tec%nological system< )est &ractices into organi5ational business &rocesses are carried out after acti.e %uman inFuiry, and suc% &rocesses are continuously u&dated in line wit% t%e c%anging e9ternal en.ironment< J Knowledge management is not limited to gat%ering information from t%e com&anyAs domain e9&erts or retiring em&loyees and creating databases accessible by intranets< KM is a collecti.e conce&t of t%e organi5ationAs entire core knowledge< J Knowledge management is not digital networks< KM is about im&ro.ing business &rocesses wit% &eo&le and tec%nology in mind< 1ffecti.e tec%nology is t%e enabler of KM, and &eo&le must be in t%e eFuation from t%e start to use tec%nology effecti.ely< J Knowledge management is not about Gknowledge ca&ture,H &er se< Knowledge cannot be ca&tured in its entirety< 7roblems in.ol.ing collaboration, coo&eration, and organi5ational culture must be addressed before on can be sure or reliable knowledge ca&ture< Regardless of t%e business, a com&any com&etes based on t%e knowledge of its em&loyees< 3 com&any also %as a management mind(set t%at relies on &ast e9&erience Bsuc% as smart &eo&le, documents, or databasesC and creates a new way for e9c%anging knowledge by using intranets, t%e Internet, local area networks, and t%e like< onsider t%e case of a )ritis% su&ermarket c%ain t%at used a customer data( mining a&&lication to assess buying be%a.ior< 3fter running correlation analyses among se.eral .ariables, it Fuickly disco.ered a clear association between t%e &urc%ases of dia&ers and beer by male N o&yrig%t >irtual :ni.ersity of 7akistan '#Knowledge Management EM!M=(/#0 >: customers on $riday afternoons< 3rmed wit% t%is knowledge, t%e store began to stack dia&ers and beer toget%er< I@ 19&lain t%e difference wit% res&ect to t%e centrality of decision making between decision makers today and from &re(1880 and w%y t%is is leading to a greater em&%asis on effecti.e KM< In t%e &ast t%e knowledge for making %ig% Fuality decisions lay &rimarily in t%e &ersonal knowledge and e9&erience of t%e decision maker B14C< =%e recent increase in com&le9ity and decreases in reFuired res&onse time and business e9&erience of decision leaders reFuires t%at additional sources of knowledge Be<g<, t%e WWW, ot%er grou& membersC be incor&orated into t%e decision(making &rocess to de.elo& t%e %ig%est Fuality, most informed decisions< =%ese trends are some of t%e dri.ing forces in t%e need for more effecti.e KM< N o&yrig%t >irtual :ni.ersity of 7akistan ''Knowledge Management EM!M=(/#0 >: -1++4N 8 KN4W-1D!1 0I1R3R0M < $R4M D3=3 3ND IN$4RM3=I4N =4 KN4W-1D!1 3ND WI+D4M KM Myt%s KM is interwo.en into all of an organi5ationAs &rocesses< 3lt%oug% effecti.e utili5ation of tec%nology is essential, KM is not constrained by collecting knowledge from domain e9&erts and building networked databases or databases su&&orted by t%e com&anyAs intranet< $inally, KM is not defined in terms of t%e s&ecific knowledge needs of e.ery em&loyee, t%e rele.ant knowledge needed, or t%e knowledge to be s%ared< =%ere are se.eral myt%s as well@ Myt% 1@Knowledge management is a fad< 3s mentioned earlier, t%ere are many &essimists in industry w%o doubt t%e Ggood fitH &otential of KM< )eing at a crossroads, .endors &us% older software &roducts under t%e KM label< )7R and artificial intelligence %ad t%eir &ositi.e turn, alt%oug% t%ey suffered from raised e9&ectations< :nlike earlier trends, %owe.er, true KM becomes embedded in t%e way &eo&le work in business< +o, knowing w%at you know or w%at you need to know cannot be a fad< Myt% 2@Knowledge management and data ware%ousing are essentially t%e same< =%e term data ware%ousing im&lies a re&ository of data, not knowledge< Knowledge, &er se, is %ow you take information and transform it into action< Data ware%ousing is critical for KM< it is w%ere data, critical documents, e(mail, and ot%er forms of information are a.ailable for eliciting knowledge at t%e time w%en it is needed< $or e9am&le, +ears, Roebuck L o< %as a customer data ware%ouse wit% demogra&%ic information on o.er 100 million %ouse%olds to %el& t%e sales force im&ro.e marketing and sales Fuality< $or e9am&le, a re&air&erson working on a customerAs refrigerator notices t%roug% t%e KM system t%at suc% a customer is a likely &ros&ect for a new free5er< Data mining ser.es a similar &ur&ose, in t%at &atterns wit%in a mass of data allow management to better understand trends and directions in a &roduct or consumer &reference E a necessary dimension of KM< Myt% #@Knowledge management is a new conce&t< 3s a conce&t, KM %as been &racticed by successful firms as far back as t%e early 1820s< om&anies like $ord and !eneral Motors or&oration %a.e been e9c%anging design information and collaborating on design &roKects worldwide using tec%nology all along< =odayAs .ersion of KM goes under customer &rofiling, w%ere a su&ermarket clerk scans a store( generated customer card to determine &atterns of &urc%ases and consumer &references by data, by &roduct, and by location< =%e idea is t%e same as it %as been for t%e &ast 2 decades, e9ce&t t%at in todayAs KM, tec%nology %as taken on a s&ecial role in t%e way knowledge is s%ared and disseminated< Myt% '@Knowledge management is mere tec%nology< =%is is a serious misconce&tion< KM is really about &eo&le, relations%i&s, and a new way of working toget%er as an entity in an organi5ational setting< It is a uniFue way of t%inking about work and about working< Imagine a knowledge community of em&loyees wit% common interests s%aring information on best &ractice t%at %el& e.eryone do a more efficient Kob< KM will work only if t%ere is trust and confidence among coworkers< 4.er 20 &ercent of all tec%nology(centered KM efforts %a.e been known to fail because of a lack of attention to &eo&le < Myt% *@=ec%nology can store and distribute %uman intelligence< Data may be stored in a centrali5ed database for em&loyee access, but t%at does not ensure t%at em&loyees will use t%e information< I a turbulent com&etiti.e en.ironment, one cannot assume t%at com&anies can &redict t%e rig%t information for t%e rig%t em&loyee< +o, it is %ardly t%e case t%at tec%nology distributes %uman intelligence< It is im&ossible to build a KM system t%at &redicts w%o t%e rig%t &erson is and at w%at time %e or s%e needs s&ecific information for decision making< =acit knowledge e9ists wit%in a &ersonAs brain6 information or GknowledgeH stored wit%in t%e database can be .iewed as a .aluable e9c%ange between &eo&le to make sense of a situation but s%ould not be inter&reted as %uman intelligence< In ot%er words, knowledge re&ositories stored in com&uter do not allow for renewal of e9isting knowledge N o&yrig%t >irtual :ni.ersity of 7akistan '*Knowledge Management EM!M=(/#0 >: and creation of new knowledge< KM s%ould be considered as a system to be used wit% concentration on t%e %uman as&ect aided by tec%nology for decision making< Myt% /@Knowledge management is anot%er form of reengineering< Reengineering is efficiency( dri.en(a one(item attem&t at introducing radical c%ange in organi5ational &rocesses to im&ro.e efficiency< =%e em&%asis is on cost reduction and making better use of e9isting o&erations< Dum&(starting suc% a business, %owe.er, often results in failure< KIM is an ongoing renewal of organi5ational &rocesses to learn in ad.ance about t%e com&anyAs future o&&ortunities and contingencies< =%e concentration is on .alue added acti.ities t%at demand inno.ation and creati.ity< =%is is ingrained in t%e day(to(day &rocesses of t%e business< =ec%nology &lays a critical role in t%e way information becomes a.ailable at electronic s&eed< Myt% "@om&any em&loyees %a.e difficulty s%aring knowledge< =%e answer is yes and no, de&ending on a number of factors@ attitude of t%e knower, w%o t%e reFuester is, com&any culture, sensiti.ity of t%e knowledge reFuested, a.ailability of attracti.e moti.ators, and trust le.el among com&any &ersonnel< :nder t%e traditional business model, em&loyees wit% uniFue knowledge accumulated o.er years of e9&erience tended to &rotect GturfH by not s%aring suc% knowledge< In a KM en.ironment, w%ere knowledge s%aring means great &otential for e.eryone including t%e organi5ation, knowledge workers need to be sold on %ow knowledge s%aring will brig t%em mutual benefits< =%e terms s%aring means Gwilling gi.ing away a &artH and G%olding in common<H It is a Ggi.e to getH attitude, and because GknowingH is &ersonal, asking someone to s%are is to ask %im or %er to gi.e somet%ing of t%emsel.es< Mature or secure &eo&le in a stable work en.ironment tend to s%are knowledge more t%an ot%ers w%ose e9&erience is to t%e contrary< 3lso, knowledge s%aring can im&ro.e bonds between &eo&le, &ro.ided t%e act of s%aring is reci&rocal< Myt% 2@Knowledge management works only wit%in an organi5ation< 4n t%e surface, t%is may be true, but some of t%e most .aluable knowledge comes from t%e outside E su&&liers, brokers, go.ernment agencies, and customers< =%e &roblem wit% e9tending KM initiati.es to outside sources is incom&atible tec%nology, security issues, and com&le9ity of t%e design< Myt% 8@=ec%nology is a better alternati.e t%an face(to(face< We %a.e seen o.er t%e years t%at w%en it comes to real(life e9&erience and use of %uman knowledge, tec%nology does not %old all t%e answers< =%e emerging mind(set wit%in todayAs forward(looking, creati.e organi5ations is t%at KM must entail cultural and organi5ational c%ange as well as tec%nology(based inno.ations< Data ware%ousing and data mining are all contributors to e9tracting and s%aring knowledge, but t%e best knowledge resides in %uman minds< =%is make a face(to(face a&&roac% to knowledge acFuisition and knowledge s%aring a better alternati.e< Myt% 10@ It is a Gno brainierH to s%are w%at you know< In general, secure ad mature &eo&le are less reluctant to s%are w%at t%ey know wit% ot%ers< :nfortunately, in traditional business, &eo&le wit% years of e9&erience tended to %oard knowledge rat%er t%an s%are it, because it ga.e t%em le.erage, control, and assurance of a Kob< $urt%ermore, GknowingH is &ersonal< =o ask &eo&le to s%are knowledge is tantamount to e9&ecting t%em to gi.e somet%ing of t%emsel.es< +%aring knowledge often de&ends on w%o t%e reFuester is, %ow sensiti.e is t%e knowledge reFuested, t%e attitude of t%e Gknower,H and t%e moti.ational forces at &lay< =o s%are knowledge, t%e business %as to undergo s&ecial em&loyee training, instill trust wit%in t%e business, and gi.e em&loyees and management a c%ance to cement relations%i&s based on trust< 3 summary of t%e KM myt%s is s%own in following list< =%e Myt%s of Knowledge Management 1< Knowledge management is a fad< 2< Knowledge management and data ware%ousing are essentially t%e same< #< Knowledge management is a new conce&t< '< Knowledge management is mere tec%nology< *< =ec%nology distributes %uman intelligence< /< Knowledge management is anot%er form of reengineering< "< om&any em&loyees %a.e difficulty s%aring knowledge< 2< Knowledge management works only wit%in an organi5ation< 8< =ec%nology is a better alternati.e t%an face(to(face< 10< It is Gno brainierA to s%are w%at you know< N o&yrig%t >irtual :ni.ersity of 7akistan '/Knowledge Management EM!M=(/#0 >: :nderstanding Knowledge =%e most critical word in t%e KM area is knowledge< :nfortunately, t%ere is a continuing myt% t%at knowledge resides only in books, re&orts, or documents< =%is cannot be true any more t%an .iewing musical notes on a &age constitutes music< W%at we %a.e %ere are re&resentations of information and music, res&ecti.ely< W%at do we mean w%en we talk about knowledge? =wo key issues are distinguis%ing between knowledge and information and determining %ow t%ey are interrelated< Knowledge is neit%er data nor information, alt%oug% it is related to bot%< =%e terms are not interc%angeable, and knowing w%at is needed often determines organi5ational success or failure<
=%e conce&t of knowledge is at t%e %eart of an organi5ationAs &roducti.ity and growt%< Intelligent be%a.iour im&lies t%e ability to understand and use language and to store and access rele.ant e9&erience at will< 0umans acFuire e9&ertise( t%at is, t%ey learn .ia e9&erience< 19&ertise incor&orates t%e ability to reason and to make deductions6 it also includes t%e conce&t of common sense< =%is makes %uman intelligence and t%e knowledge t%at %umans amass o.er time t%e &rimary organi5ational asset< 3n organi5ationAs tec%nology or telecommunications network is only a .e%icle for knowledge transfer and knowledge e9c%ange6 it cannot re&lace %uman knowledge< 3n essential criterion of knowledge and learning is memory< -earning by disco.ery is less understood t%an learning by e9&erience or by e9am&le< 3 knowledge base is a critical com&onent of knowledge management< Knowledge de.elo&ers need to understand t%e t%eory and meaning of knowledge early in t%e knowledge ca&ture &%ase and become familiar wit% t%e uniFue kinds of knowledge a.ailable in t%e cor&oration under study< It s%ould be &ointed out t%at an e9&ertAs knowledge is not limited to information or com&le9 &rocedures< Knowledge embraces a wider s&%ere t%an information< -ikewise, a knowledge base is not t%e same as a database< 3 database %as a &redetermined structure6 a knowledge base is a set of facts and inference rules for determining new information and GsmarterH knowledge for decision making< Knowledge as know(%ow may be eit%er s%allow or dee& knowledge< It may also be &rocedural, declarati.e, semantic, or e&isodic knowledge< More recently, Knowledge %as been classified as e9&licit or tacit knowledge< Definitions )efore discussing knowledge and its many ramifications, knowledge needs to be defined in relation to intelligence, e9&erience, and common sense< Knowledge We define knowledge as Gunderstanding gained t%roug% e9&erience or study<H It is Gknow(%owH or a familiarity wit% %ow to do somet%ing t%at enables a &erson to &erform a s&eciali5ed task< It may also be an accumulation of facts, &rocedural rules, or %euristics< =%ese elements are defined as follows@ J 3 fact is a statement of some element of trut% about a subKect matter or a domain< $or e9am&le, milk is w%ite and t%e sun rises in t%e east and sets in t%e west are facts< J 3 &rocedural rule is a rule t%at describes a seFuence of relations relati.e to t%e main< $or e9am&le, always c%eck t%e traffic w%en entering a freeway6 if t%e gas gauge indicates less t%an a Fuarter of tank of gas, look for a gasoline station< J 3 %euristic is a rule of t%umb based on years of e9&erience< $or e9am&le, if a &erson dri.es no more t%an * km abo.e t%e s&eed limit, t%en t%at &erson is not likely to be sto&&ed for s&eeding< 3 beneficial as&ect of knowledge is t%at it can com&ensate for some searc% time< 3 %uman e9&ert w%o knows a set of solutions can get a Kob done wit%out muc% searc%ing for information< on.ersely, a %uman no.ice in a .ideo game searc%es a .ast number of alternati.e mo.es at eac% Kuncture because %e lacks e9&eriential knowledge< :nfortunately, wit%out t%e aid of knowledge t%at allows t%e no.ice to immediately eliminate ina&&ro&riate a&&roac%es, t%is met%ods encom&asses too many a&&roac%es to e.aluate<
3not%er as&ect of knowledge is s&ecificity6 it cannot be transferred from one &roblem domain to anot%er< =%erefore, one must %a.e t%e surgeonAs know(%ow to re&air a %eart .alue, t%e auto transmission s&ecialistAs know(%ow to re&lace a re.erse gear, and t%e &ainterAs know(%ow to create an N o&yrig%t >irtual :ni.ersity of 7akistan '"Knowledge Management EM!M=(/#0 >: accom&lis%ed &ortrait< =%ese kinds of e9tensi.e knowledge are referred to as tacit knowledge and often take many years to acFuire< $inally, .alues, beliefs, and integrity are related to knowledge< =%is %as a lot to do wit% w%at t%e knower &ercei.es, acce&ts, and concludes from t%e en.ironment< 7eo&le generally organi5e a synt%esi5e t%eir knowledge by t%eir .alues< Nonaka and =akeuc%i suggest t%at Gknowledge, unlike information, is about beliefs and commitmentH BNonaka and =akeuc%i 188*C< More recently, we began to attac% integrity to t%e w%ole &rocess of knowledge ca&ture, knowledge s%aring, and knowledge maintenance< Integrity means reliability, trustwort%iness, &ri.acy, and confidentiality< Integrity cuts across t%e disci&line, regardless of com&any si5e or resources< Intelligence Intelligence refers to t%e ca&acity to acFuire and a&&ly knowledge< It is t%e ability to build or im&ro.e u&on knowledge, to transform as muc% of oneAs knowledge a &ossible into knowledge t%at can be used to make good decisions< 3n intelligent &erson is one w%o %as t%e ability to t%ink and reason< =%is distinction se&arates t%e no.ice from t%e master in a game like c%ess< Knowledge con.ersion is directly res&onsible for muc% of t%e e9&ertAs efficiency in a&&lying knowledge and for t%e difficulty of making it e9&licit< onsider t%is e9am&le@ Recent researc% into t%e true meaning of intelligence illustrates .ery well t%e difficulty of defining t%e term< =%is organi5ation doing t%is researc% decided to get to t%e bottom of t%e Fuestion once and for all and, gi.en its im&ortance, assigned its most senior scientist to it< =%e esteemed sc%olar s&ent se.eral mont%s conducting t%is researc%< 3t t%e end of t%at &eriod, t%e scientist gat%ered a number of colleagues toget%er, %eld u& in front t%em t%e artificially intelligent artifact c%osen as t%e subKect of t%e researc%, and said, G-adies and gentlemen, t%is is a t%ermos bottle< It kee&s %ot stuff %ot, and it kee&s cold stuff cold< My Fuestion is, %ow does it know?H 3bility to understand and use language is anot%er attribute of intelligence< -anguage understanding is not easy to acFuire, es&ecially for t%e e9isting tec%nolo0gy< $or e9am&le, consider t%e statement< =%e city of $airmount is under / feet of water< Does t%is mean t%at t%e city is com&letely underwater, wit% t%e tallest building below t%e water le.el? 3not%er e9am&le is t%e statement< =%e sub broke t%roug% t%e clouds< 0ow literally s%ould one inter&ret t%is statement? 4f course, bot% t%e meaning of t%e words and t%e conte9t of t%e statements determine %ow a reader s%ould understand t%e messages< 7rior knowledge and common sense also enter t%e &icture< Memory, or t%e ability to store and retrie.e rele.ant e9&erience at will, is &art of intelligence< 0ow t%e brain stores and retrie.es information or knowledge is still unclear< -ater, t%e te9t includes a discussion of knowledge organi5ation and %ow it is e9&loited in t%e KM building life cycle< -earning is knowledge or skill t%at is acFuired by instruction or study< It is t%e ine.itable conseFuence of intelligent &roblem(sol.ing< Intelligent &eo&le learn Fuickly and make effecti.e use of w%at t%ey learn< Inasmuc% as &roblem(sol.ing and knowledge organi5ation %a.e been successfully demonstrated in t%e business enter&rise, t%e same success %as yet to be s%own in tec%nology or com&uter &rograms< 7eo&le learn from e9&erience6 to date, com&uters %a.e not< 19&erience 19&erience relates to w%at we %a.e done and w%at %as %istorically %a&&ened in a s&ecific area of work< In -atin, t%e word e9&erience means Gto &ut to t%e test<H 7eo&le wit% dee& knowledge in a gi.en subKect %a.e been tested by e9&erience< 19&erience also leads to e9&ertise< =%ink of +%erlock 0olmes in.estigating a murder< =%e goal is to find t%e murderer< 0olmesAs reasoning and deductions relay on all e.idence collected6 %e works backward from t%e goal until t%e sus&ect is caug%t< 19&ertise is also intuition and t%e ability to access oneAs knowledge ra&idly to ac%ie.e an efficient and successful outcome< 19&erience is closely related to knowledge< Knowledge de.elo&s o.er time t%roug% successful e9&erience, and e9&erience leads to e9&ertise< 3n e9&ert is someone w%o knows w%at %e or s%e does not know and is t%e first one to tell you so< $irms %ire e9&erts to benefit from t%eir e9&erience and &ro.en knowledge in sol.ing com&le9 no.ices from e9&erts< 19ce&tions do occur %owe.er< )ac%, for N o&yrig%t >irtual :ni.ersity of 7akistan '2Knowledge Management EM!M=(/#0 >: e9am&le, was e9&ert musician at * years of age< In general, wit%out e9&erience, one would %ardly be considered an e9&ert< 19&erience in using knowledge allows &eo&le to refine t%eir reasoning &rocesses in a knowledge management en.ironment< ommon +ense ommons sense refers to t%e unreflecti.e o&inions of ordinary %umans, w%ic% comes naturally to a c%ild as young as # or ' years old< $or e9am&le, mot youngsters know t%at if t%ey touc% a %ot sto.e, t%ey will get burned< In contrast, a com&uter could be told all kinds of t%ings about %ot sto.es and t%e effect of %eat on t%e %uman skin, and it still would not &ercei.e w%at would %a&&en if it Gtouc%edH a %ot sto.e@ Mac%ines lack common sense< ommon sense is not easily learned or acFuired< )asic Knowledge(Related Definitions 3rtificial 1mulating or imitating somet%ing natural or real ommon sense Innate ability to sense, Kudge, or &ercei.e situations6 grows stronger o.er time $act 3 statement t%at relates a certain element of trut% about a subKect matter or a domain 0euristic 3 rule of t%umb based on years of e9&erience Intelligence =%e ca&acity to acFuire and a&&ly knowledge6 ability to understand and use language6 ability to store and retrie.e rele.ant e9&erience at will6 learning from e9&erience Knowledge :nderstanding gained t%roug% e9&erience6 familiarity wit% t%e way to do somet%ing to &erform a task6 an accumulation of facts, &rocedural rules, or %euristics 7rocedural rule 3 rule t%at describes a seFuence of relations relati.e to t%e domain< -ack of common sense makes tec%nology GbrittleH6 t%at is, com&uters rarely go beyond t%e sco&e of t%eir data ware%ouse or knowledge base< Many im&ortant &roKects assumed by %umans in business today reFuired common sense, w%ic% is only &artially understood by todayAs com&uter< ognition and Knowledge Management
ogniti.e &syc%ology &ro.ides and essential background for understanding knowledge and e9&ertise< =%is goal of cogniti.e &syc%ology is to identify t%e cogniti.e structures and &rocesses t%at relate to skilled &erformance wit%in an area of o&eration< ogniti.e science in general is t%e interdisci&linary study of %uman intelligence< Its two main com&onents are e9&erimental &syc%ology, w%ic% studies t%e cogniti.e &rocesses t%at constitute %uman intelligence, and artificial intelligence, w%ic% studies t%e cognition of com&uter(based intelligent systems< Wit% t%ese relations%i&s in mind, one can see cogniti.e &syc%ologyAs contribution to KM< :nderstanding t%e limitations and biases &ro.ided by cogniti.e &syc%ology %el&s in understanding e9&ertise< 0uman limitations(suc% as memory ca&acity and t%e &%ysical limits im&osed by %uman sensory and motor systems(must be considered w%en attem&ting to understand %ow t%e %uman e9&ert carries out a task< =%e &rocess of eliciting and re&resenting e9&ert knowledge ty&ically in.ol.es a knowledge de.elo&er and one or more %uman e9&erts< =o ca&ture %uman knowledge, t%e de.elo&er inter.iews t%e e9&ertBsC and asks for information regarding a s&ecific area of e9&ertise t%at t%e e9&ert is ade&t at sol.ing< =%e e9&ert maybe asked to Gt%ink aloud,H to .erbali5e %is or %er t%oug%t &rocesses, w%ile sol.ing t%e &roblem< 7eo&le cannot always gi.e com&lete, accurate re&orts of t%eir mental &rocesses< 19&erts may %a.e greater difficulty in con.eying some kinds of knowledge, suc% as &rocedural knowledge Be9&lained later in t%e c%a&terC< 7syc%ologists %a.e long been aware of &roblems related to .erbal re&orts, and t%roug% researc%, t%ey %a.e de.elo&ed met%ods for circum.enting t%em< ogniti.e &syc%ology researc% contributes to a better understanding of w%at constitutes knowledge, %ow knowledge is elicited, and %ow it s%ould be re&resented in a cor&orate knowledge base for ot%ers to ta&< )ecause knowledge de.elo&ers s%ould take knowledge elicitation Balso called knowledge ca&tureC seriously, t%ey s%ould %a.e a strong educational and &ractical background in cogniti.e &syc%ology and cogniti.e &rocesses< Knowledge ca&ture tec%niFues are co.ered in %a&ter '< N o&yrig%t >irtual :ni.ersity of 7akistan '8Knowledge Management EM!M=(/#0 >: Data, Information, and Knowledge Data Data are unorgani5ed and un&rocessed facts< =%ey are static6 t%ey Kust sit t%ere< $or e9am&le, 3li is / feet tall< =%is is data6 it does not necessarily lead one anyw%ere< 0owe.er, t%e meaning one brings to t%e e.aluation of t%is data could be im&ortant< +uc% an e.aluation may indicate t%at 3liAs %eig%t would make %im an asset to t%e basketball team< =%is becomes information< Data is a set of discrete facts about e.ents E structured records of transactions< W%en a customer goes to t%e store and buys merc%andise, t%e number of socks and t%e &rice %e or s%e &aid are all data< =%e data tells not%ing about t%e moti.ation be%ind t%e &urc%ase, t%e Fuality of t%e socks, or t%e re&utation of t%e store< Iuantitati.ely, stores e.aluate &atterns of &urc%ases, number of customers &urc%asing s&ecific items, and ot%er items t%ose customers &urc%ased< 1.aluation suc% as t%ese can be used to deri.e information about customer be%a.ior, t%e &rice(sensiti.ity of certain merc%andise, and t%e like< =%is means t%at data is a &rereFuisite to information< 3ll organi5ations need data, and some com&anies de&end more %ea.ily on data t%an ot%ers< $or e9am&le, insurance com&anies, banks, t%e internal re.enue ser.ice, and t%e social security administration are %ea.y number crunc%ers< Millions of transactions are &rocessed daily< =%e &roblem wit% too muc% data is t%at it offers no Kudgment ad no basis for action< =%is means t%at an organi5ation must decide on t%e nature and .olume of data needed to create information< Information =%e word information is deri.ed from t%e word inform, w%ic% means Gto gi.e s%a&e toH information means s%a&ing t%e data to arri.e at meaning in t%e eyes of t%e &ercei.er< Information is an aggregation of data t%at makes decision making easier< It is also facts and figures based on reformatted or &rocessed data< $or e9am&le, a &rofit and loss statement &ro.ides information< It is an assembling of facts into a form t%at s%ows an organi5ationAs state of %ealt% o.er a s&ecific time &eriod< 0ere is anot%er e9am&le of information@ $i.e farmers of nort%ern )eirut, w%o %ad switc%ed cro&s from watermelon to sugarcane wit% t%e %ig% %o&e of a Fuick &rofit, could not bear t%e anguis% of cro& failures for two consecuti.e seasons< =%ey committed suicide after %a.ing to sell t%e farm to &ay t%e bank loan< :nlike data, information is understanding relations< It %as meaning, &ur&ose, and rele.ance< It %as a s%a&e, because it is organi5ed for a &ur&ose< =%e data may %a.e been reorgani5ed, statistically analy5ed, or %a.e %ad errors remo.ed E all &erformed to add meaning to a message, a re&ort, or a document< =%e medium is not t%e message, alt%oug% it could affect t%e message< 3n analogy@ 0a.ing a tele&%one does not ensure wort%w%ile con.ersation, alt%oug% certain tele&%ones make t%e message clear and more easily understood< =oday, %a.ing more information tec%nology is not a guarantee more easily understood< =oday, %a.ing more information tec%nology is not a guarantee for im&ro.ing t%e state of information< Information is accessible to em&loyeeAs ad managers t%roug% t%e com&anyAs local area networks, intranet, e(mail, Internet, satellite infrastructure, snail mail, or %and deli.ery< :nlike data t%at em&%asi5es Fuantity and efficiency of &rocessing, t%e focus of information is Fualitati.e@ Does t%e re&ort tell me somet%ing I donAt know? Is t%ere new meaning in t%e semiannual re&ort? =%e im&lication is t%at data becomes information w%en meaning or .alue is added to im&ro.e t%e Fuality of decision making< Knowledge Knowledge %as always been an essential com&onent of all %uman &rogress< 4ur ancestors must %a.e em&loyed an enormous amount of knowledge to form an a9e(like obKect< $rom know(%ow to use seeds for &lanting to t%e in.ention of mac%inery, to tra.el to t%e moon E all reFuired an accumulation of s&ecial knowledge to ac%ie.e t%e task< W%en it comes to basics, &eo&le use t%eir intelligence and N o&yrig%t >irtual :ni.ersity of 7akistan *0Knowledge Management EM!M=(/#0 >: creati.ity to come u& wit% t%e .alue(added &roducts and ser.ices t%at take on t%e com&etition< Knowledge ca&ital is essentially a reflection of %ow well an organi5ation le.erages t%e knowledge of its workforce, t%e needs of its customers, and t%e knowledge of t%e su&&liers to ensure .alue(added outcome< Knowledge ca&ital is t%e way an organi5ation deri.es wealt% from its information resources on a regular basis< Knowledge is t%e most c%eris%ed remedy for com&le9ity and uncertainty< It is a %ig%er le.el of abstractions t%at resides in &eo&leAs minds< It is broader, ric%er, and muc% %arder to ca&ture t%an data or information< 7eo&le seek knowledge, because it %el&s t%em succeed in t%eir work< BRele.antC information a.ailable in t%e rig%t format, at t%e rig%t time, and at t%e rig%t &lace for decision making< Knowledge %as different meanings, de&ending on t%e disci&line w%ere it is used< In t%is te9t, knowledge is G %uman understanding of a s&eciali5ed field of interest t%at %as been acFuired t%roug% study and e9&erience<H It is based on learning, t%inking, and familiarity wit% t%e &roblem area in a de&artment, a di.ision, or in t%e com&any as a w%ole< =%e focus is on sustainable com&etiti.e ad.antage< Knowledge is not information, and information is not data< Da.en&ort and 7rusake B2000C define knowledge as Ga fluid mi9 of framed e9&erience, .alues, conte9tual information, and e9&ert insig%t t%at &ro.ides a framework for e.aluating and incor&orating new e9&eriences and information<H Knowledge is deri.ed from information in t%e same way information is deri.ed from data< It may be .iewed as an understanding of information based on its &ercei.ed im&ortance or rele.ance to a &roblem area< It can also be t%oug%t of as a &ersonAs range of information< 1mbracing a wider s&%ere t%an information, knowledge includes &erce&tion, skills, training, common sense, and e9&erience< It is t%e sum total of our &erce&ti.e &rocesses t%at %el&s us to draw meaningful conclusions< $or e9am&le, an in.estor reFuires knowledge to e.aluate two com&aniesA &rofit and loss statements in order to determine w%ic% one is t%e %ealt%ier com&any< N o&yrig%t >irtual :ni.ersity of 7akistan *1Knowledge Management EM!M=(/#0 >: Data Information Knowledge +tatement about reality B3c%arya 2001C :nsorted bits of fact BDi9on 200C 3 re&resentation of a fact, number word, image, &icture, or sound Measurements B3&&le%ans et al< 1888C 3 discrete, obKecti.e fact about e.ents BDa.en&ort and 7rusak 2000C 4rgani5ed, systemati5ed data B3c%arya 2001C Data t%at %as been sorted, analy5ed, and dis&layed BDi9on 2000C Data t%at %as been assigned a meaning B-iebowit5 and Wilco9 1888C Data t%at is meaningful or useful to someone BDickerson 1882C 7otential for action6 resides in t%e user BMal%otra 1882C 3 statement of fact about measurements B3&&le%ans et al< 1888C Descri&ti.e knowledge B%aracteri5ing t%e state of some &ast, &resent, future, or %y&ot%etical solutionC 0olsa&&le and W%inston 188/C Data t%at makes a difference BDa.en&ort and 7rusak 2000C 0uman interaction wit% reality B3c%arya 2001C Meaningful links &eo&le make in t%eir minds between information and its a&&lication in action in a s&ecific setting BDi9on 2000C =%e w%ole set of insig%ts, e9&eriences, and &rocedures t%at are considered correct and true and t%at, t%erefore, guide t%e t%oug%ts, be%a.ior, and communication of &eo&le B-iebowit5 and Wilco9 1888C 3n ideational Bi<e<, conce&tual rat%er t%an &%ysicalC construct generated .ia t%e agency of t%e %uman mind B0ousel and )ell 1888C 3n organi5ational resource consisting of t%e sum of w%at is known B0olsea&&le 188/C 3 fluid mi9 of framed e9&erience, .alues, conte9tual information, and e9&ert insig%t t%at &ro.ides a framework for e.aluating and incor&orating new e9&eriences and information BDa.en&ort ad 7rusak 2000C +ystemati5ing and structure information for a s&ecific &ur&ose BDo%annessen et al< 188'C Information w%ose .alidity %as been establis%ed t%roug% tests of &roof B-ibeskind 188/C 3s can be seen, information is all around, but only a fraction of it is useful in &roblem sol.ing< Knowledge %as to be built and reFuires regular interaction wit% ot%ers in t%e know in t%e organi5ation< It is social, time critical, interacti.e, e.ol.ing, and created for a &ur&ose but drawing on e9&erience from ot%er times and domains< oo&eration and &roducti.ity are e9&ected as &eo&le work to ac%ie.e, not to control< =eamwork is a &rereFuisite for &eo&le to talk, com&are, and e9c%ange t%oug%ts, leading to a culture t%at makes it clear t%at GW%at is my Kob?H is les im&ortant t%an GW%at is t%e &ur&ose of w%at I am doing?H In summary,
J Knowledge can be defined as t%e YYunderstanding obtained t%roug% t%e &rocess of e9&erience or a&&ro&riate study<OO N o&yrig%t >irtual :ni.ersity of 7akistan *2Knowledge Management EM!M=(/#0 >: J Knowledge can also be an accumulation of facts, &rocedural rules, or %euristics< o 3 fact is generally a statement re&resenting trut% about a subKect matter or domain< o 3 &rocedural rule is a rule t%at describes a seFuence of actions< o 3 %euristic is a rule of t%umb based on years of e9&erience< J Intelligence im&lies t%e ca&ability to acFuire and a&&ly a&&ro&riate knowledge< o Memory indicates t%e ability to store and retrie.e rele.ant e9&erience according to will< o -earning re&resents t%e skill of acFuiring knowledge using t%e met%od of instruction;study< J 19&erience relates to t%e understanding t%at we de.elo& t%roug% our &ast actions< J Knowledge can de.elo& o.er time t%roug% successful e9&erience, and e9&erience can lead to e9&ertise< J ommon sense refers to t%e natural and mostly unreflecti.e o&inions of %umans< Data, Information and Knowledge J Data re&resents unorgani5ed and un&rocessed facts< o :sually data is static in nature< o It can re&resent a set of discrete facts about e.ents< o Data is a &rereFuisite to information< o 3n organi5ation sometimes %as to decide on t%e nature and .olume of data t%at is reFuired for creating t%e necessary information< J Information o Information can be considered as an aggregation of data B&rocessed dataC w%ic% makes decision making easier< o Information %as usually got some meaning and &ur&ose< J Knowledge o )y knowledge we mean %uman understanding of a subKect matter t%at %as been acFuired t%roug% &ro&er study and e9&erience< o Knowledge is usually based on learning, t%inking, and &ro&er understanding of t%e &roblem area< o Knowledge is not information and information is not data< o Knowledge is deri.ed from information in t%e same way information is deri.ed from data< o We can .iew it as an understanding of information based on its &ercei.ed im&ortance or rele.ance to a &roblem area< o It can be considered as t%e integration of %uman &erce&ti.e &rocesses t%at %el&s t%em to draw meaningful conclusions< Kinds of Knowledge J Dee& Knowledge@ Knowledge acFuired t%roug% years of &ro&er e9&erience< J +%allow Knowledge@ Minimal understanding of t%e &roblem area< J Knowledge as Know(0ow@ 3ccumulated lessons of &ractical e9&erience< N o&yrig%t >irtual :ni.ersity of 7akistan *#Knowledge Management EM!M=(/#0 >: J Reasoning and 0euristics@ +ome of t%e ways in w%ic% %umans reason are as follows@ o Reasoning by analogy@ =%is indicates relating one conce&t to anot%er< o $ormal Reasoning@ =%is indicates reasoning by using deducti.e Be9actC or inducti.e reasoning< Deduction uses maKor and minor &remises< In case of deducti.e reasoning, new knowledge is generated by using &re.iously s&ecified knowledge< Inducti.e reasoning im&lies reasoning from a set of facts to a general conclusion< Inducti.e reasoning is t%e basis of scientific disco.ery< 3 case is knowledge associated wit% an o&erational le.el< J ommon +ense@ =%is im&lies a ty&e of knowledge t%at almost e.ery %uman being &ossess in .arying forms;amounts< J We can also classify knowledge on t%e basis of w%et%er it is &rocedural, declarati.e, semantic, or e&isodic< o 7rocedural knowledge re&resents t%e understanding of %ow to carry out a s&ecific &rocedure< o Declarati.e knowledge is routine knowledge about w%ic% t%e e9&ert is conscious< It is s%allow knowledge t%at can be readily recalled since it consists of sim&le and uncom&licated information< =%is ty&e of knowledge often resides in s%ort(term memory< o +emantic knowledge is %ig%ly organi5ed, YYc%unkedOO knowledge t%at resides mainly in long(term memory< +emantic knowledge can include maKor conce&ts, .ocabulary, facts, and relations%i&s< o 1&isodic knowledge re&resents t%e knowledge based on e&isodes Be9&erimental informationC< 1ac% e&isode is usually YYc%unkedOO in long(term memory< J 3not%er way of classifying knowledge is to find w%et%er it is tacit or e9&licit o =acit knowledge usually gets embedded in %uman mind t%roug% e9&erience< o 19&licit knowledge is t%at w%ic% is codified and digiti5ed in documents, books, re&orts, s&reads%eets, memos etc< N o&yrig%t >irtual :ni.ersity of 7akistan *'Knowledge Management EM!M=(/#0 >: -1++4N 10 1R=R3=IN! !4-D $R4M D3=36 :ND1R+=3NDIN! 4N>1R+I4N 4$ D3=3 IN=4 KN4W-1D!1< I\1 0ow do t%e terms GdataH and GknowledgeH differ? Describe eac% term wit% t%e %el& of a similar e9am&le, elucidating t%e difference between t%e two< =o e9amine t%e differences between t%e terms data and knowledge, we need to understand t%e meaning of t%ese terms< Data com&rises facts, obser.ations, or &erce&tions t%at by t%emsel.es re&resent raw numbers or assertions, and may t%erefore be de.oid of conte9t, meaning, or intent< +ome e9am&les of data could be@ a< =%e age and gender of eac% s&ectator in a cricket matc% during a game< b< =%e &rice of eac% model of &ersonal com&uter from e.ery &ossible .endor at a &articular &oint in time< 4n t%e ot%er %and, Knowledge %as been distinguis%ed from data in two different ways< 3 more sim&listic .iew considers knowledge as being at t%e %ig%est le.el in a %ierarc%y wit% information at t%e middle le.el and data at t%e lowest le.el< $or e9am&le, an e(mail address is a &iece of data, t%e fact t%at it belongs to a customer is information, and t%e fact t%at t%is customer needs to be e(mailed reminders e.ery week to &ay last mont%As dues is knowledge< =%e second way would be to define knowledge in an area as Kustified beliefs about relations%i&s among conce&ts rele.ant to t%at &articular area< If we consider t%e e9am&les mentioned abo.e@ a< W%ile t%e age and gender of eac% s&ectator attending a game is only data, w%en used in conKunction wit% ot%er information like t%e buying &references of different consumers, stadium &lanners could forecast t%e kind of &rducts t%at will be sold during a &articular game< b< +imilarly, t%e &rice of eac% model of &ersonal com&uter from e.ery &ossible .endor, along wit% ot%er information like t%e s%i&&ing cost for eac% .endor and t%e mail(in rebates a.ailable for eac% .endor and for eac% com&uter model, &ro.ides a &otential buyer t%e knowledge as to %ow muc% %e is likely to s&end on eac% com&uter model %e is considering< =o sum u&, Knowledge differs from Data in t%e sense t%at it %el&s &roduce information from data or more .aluable information from less .aluable information w%ic% in turn results in t%e facilitation of an action< I\ 2 GInformationH contains GdataH but not all GdataH is Ginformation<H Dustify t%is statement< Data is de.oid of conte9t, meaning, or intent< Information is, in fact, a subset of data< Information only includes t%ose data t%at &ossess conte9t, rele.ance, and &ur&ose< Information ty&ically in.ol.es t%e mani&ulation of raw data to obtain a more meaningful indication of trends or &atterns in t%e data< -et us consider some e9am&les@ a< =%e total number of tele.ision .iewers w%o watc%ed t%e +u&er )owl is mere data< 0owe.er, w%en t%e data says t%at t%e ma9imum numbers of .iewers are found during t%e N o&yrig%t >irtual :ni.ersity of 7akistan **Knowledge Management EM!M=(/#0 >: t%ird and fourt% Fuarters of t%e game, t%is is information for com&anies w%o want to decide w%en to &lace a tele.ision commercial< b< =%e &rice of a large bag of &o&corn at a mo.ie t%eatre is data< 0owe.er w%en t%e t%eatre management wis%es to stay com&etiti.e, it is im&erati.e t%at %e finds out t%e &rice of &o&corn in all %is com&eting t%eatres, and a.erages it out< =%is is also an e9am&le of raw data w%ic% becomes useful information< =%us we see from t%e e9am&les abo.e t%at information is in fact deri.ed from data by way of some mani&ulation &erformed on t%e data< 3ll information is %ence data, but not all data can be considered information< I\ # 19&lain w%y t%e same set of data can be considered as useful information by some and useless data by ot%ers< $urt%er, could t%is useful information be termed as GknowledgeH? W%y? Data is de.oid of conte9t, meaning, or intent< Information is in fact, a subset of data< Information ty&ically in.ol.es t%e mani&ulation of raw data to obtain a more meaningful indication of trends or &atterns in t%e data< Information only includes t%ose data t%at &ossess conte9t, rele.ance, and &ur&ose< +o one could say t%at Information is &rocessed Data< 0owe.er, irres&ecti.e of w%et%er data is &rocessed or not, w%et%er certain facts are information or only data de&ends on t%e indi.idual w%o is using t%ose facts< :seful information can be termed as knowledge, only if it enables action and decisions, or &ro.ides information wit% direction< Knowledge is intrinsically similar to information and data< It is t%e ric%est and dee&est of t%e t%ree, and is conseFuently also t%e most .aluable< I\ ' Describe t%e ways in w%ic% GknowledgeH differs from GdataH and Ginformation<H Dustify your answer wit% a rele.ant diagram< Knowledge can be distinguis%ed from data and information in two ways< =%e basic .iew considers knowledge as being at t%e %ig%est le.el in a %ierarc%y wit% information at t%e middle le.el and data at t%e lowest le.el< 3ccording to t%is .iew, knowledge refers to information t%at enables action and decisions, or information wit% direction< 0ence, knowledge is intrinsically similar to information and data, alt%oug% it is t%e ric%est and dee&est of t%e t%ree, and is conseFuently also t%e most .aluable< =%e more ad.anced .iew of knowledge is based on t%e fact t%at t%e basic .iew doesnAt fully e9&lain t%e c%aracteristics of knowledge< =%e ad.anced .iew considers knowledge as intrinsically different from information< It defines knowledge in an area as Kustified beliefs about relations%i&s among conce&ts rele.ant to t%at &articular area< =o sum u&, knowledge %el&s &roduce information from data or more .aluable information from less .aluable information, and t%is information facilitates action< )ased on t%e new ly generated information, as well as t%e relations%i& wit% ot%er conce&ts, knowledge enables t%e be%older to make decisions< I\ * 19&lain t%e im&ortance of knowledge in creation and utili5ation of information< Knowledge %el&s &roduce information from data or more .aluable information from less .aluable information, resulting in t%e facilitation of an action or decision< 3s discussed abo.e, knowledge %el&s con.ert data into information< =%e use of information to make t%e decision reFuires knowledge as well< =%e decisions, as well as certain unrelated factors, lead to e.ents, w%ic% cause generation of furt%er data< =%e e.ents, t%e use of information, and t%e information system mig%t cause modifications in t%e knowledge itself< Knowledge is .ital in t%e ongoing cycle of creation of data, information, and decision making, N o&yrig%t >irtual :ni.ersity of 7akistan */Knowledge Management EM!M=(/#0 >: w%ic% in turn leads to e.ents w%ic% generate furt%er data and information< Knowledge is bot% t%e catalyst and t%e end &roduct of t%is continuous cycle of e.ents< I\ / 0ow does t%e subKecti.e .iew of knowledge differ from t%e obKecti.e .iew? 19&lain %ow knowledge can be .iewed as a state of mind, as a &ractice, as obKects, as access to information and as ca&ability< Knowledge can be .iewed subKecti.ely or obKecti.ely< =%e +ubKecti.e .iew of knowledge refers to it as an ongoing accom&lis%ment, w%ic% continuously affects and is influenced by social &ractices< It cannot be &laced at a single location, as it %as no e9istence inde&endent of social &ractices and %uman e9&eriences< =%e +ubKecti.e .iew re&resents knowledge as using two &ossible &ers&ecti.es@ aC 3s a state of mind E t%is .iew considers knowledge as being a state of an indi.idualAs mind and organi5ational knowledge is .iewed as t%e beliefs of t%e indi.iduals wit%in t%e organi5ation< bC 3s a &ractice (( t%is &ers&ecti.e, also knowledge is .iewed as being %eld by a grou& and cannot be broken down into se&arate elements &ossessed by indi.iduals< Moreo.er, t%is knowledge resides not in anyoneAs %ead but in &ractice< Knowledge is reflected in organi5ational acti.ities rat%er t%an in t%e minds of t%e organi5ationAs indi.iduals< 3ccording to t%e 4bKecti.e .iew, reality is inde&endent of %uman &erce&tions and can be structured in terms of categories and conce&ts< In t%is way knowledge can be located in t%e form of an obKect or a ca&ability t%at can be disco.ered or im&ro.ed by %uman agents< =%e obKecti.e .iew considers knowledge from t%ree &ossible &ers&ecti.es< W%en looked at obKecti.ely, knowledge is re&resented in t%ree &ossible &ers&ecti.es@ as an obKect, as access to information, or as a ca&ability@ aC Knowledge as 4bKects E .iews knowledge as an item t%at can be stored, transferred, mani&ulated, and can e9ist in a .ariety of locations< bC Knowledge as 3ccess to Information (( considers knowledge as somet%ing t%at enables access and utili5ation of information< =%is &ers&ecti.e e9tends t%e .iew of knowledge as obKects, em&%asi5ing t%e accessibility of t%e knowledge obKects< cC Knowledge as a&ability (( t%is &ers&ecti.e differs from t%e last two &ers&ecti.es on Knowledge as 4bKects in terms of t%e way in w%ic% knowledge can be a&&lied to influence an action< =%is &ers&ecti.e &laces em&%asis on knowledge as a strategic ca&ability t%at can &otentially be a&&lied to seek a com&etiti.e ad.antage< I\" W%at is t%e difference between knowledge c%aracteri5ed as Gknow w%atH and Gknow %owH? In t%ese situations, %ow would you classify t%e knowledge a com&uter &rogrammer %as? 4ne of t%e ways in w%ic% knowledge can be classified is into Declarati.e Knowledge and 7rocedural Knowledge< aC Declarati.e Knowledge B+ubstanti.e KnowledgeC E w%ic% focuses on beliefs about relations%i&s among .ariables< Declarati.e knowledge can be stated in t%e form of &ro&ositions, e9&ected correlations, or formulas relating conce&ts re&resented as .ariables< It is for t%is reason t%at Declarati.e knowledge is often c%aracteri5ed as Gknow w%at<H 19am&le@ =%e a.erage fuel consum&tion of a &articular car is declarati.e knowledge< bC 7rocedural Knowledge ( focuses on beliefs relating seFuences of ste&s or actions to ac%ie.e a certain outcome< It is for t%is reason t%at &rocedural knowledge is often c%aracteri5ed as Gknow %ow<H N o&yrig%t >irtual :ni.ersity of 7akistan *"Knowledge Management EM!M=(/#0 >: 19am&le@ $ollowing ste&s to fi9 a car to im&ro.e its &etrol mileage, in.ol.es &rocedural knowledge< =%e knowledge a com&uter &rogrammer %as can be termed as bot% declarati.e as well as &rocedural knowledge< =%e &rogrammer needs to know t%e synta9 of t%e language w%ic% is declarati.e knowledge< 0owe.er %e also needs to know t%e logic ste&s to take to de.elo& %is com&uter &rogram, w%ic% is w%ere %is &rocedural knowledge is used< 19&licit knowledge is %owe.er used at a .ery basic le.el< =%is was &robably used by t%e &layer to learn t%e rules of t%e game, but once t%e &layer is familiar wit% t%e rules, t%is knowledge is con.erted to tacit knowledge in %is brain< I\ 2 W%at is general knowledge? 0ow does it differ from s&ecific knowledge? Describe t%e ty&es of s&ecific knowledge wit% suitable e9am&les< 4ne form of classifying knowledge is w%et%er it is &ossessed widely or narrowly< =%is is usually in t%e form of !eneral Knowledge or +&ecific Knowledge< !eneral Knowledge is &ossessed by a large number of &eo&le and is easily transferred from one &erson to anot%er< $or e9am&le, it is general knowledge t%at t%e eart% re.ol.es around t%e sun< =%is knowledge is easily &assed on from %ig% sc%ool teac%er to students< +&ecific Knowledge, on t%e ot%er %and, is often referred to as Idiosyncratic Knowledge due to t%e fact t%at it is &ossessed by a .ery limited number of indi.iduals, and is difficult to transfer among indi.iduals< In t%e e9am&le abo.e, w%ile it is general knowledge t%at t%e eart% re.ol.es around t%e sun, it is s&ecific knowledge of scientists w%o know t%e e9act distance between t%e eart% and t%e sun based on its orbit< $urt%er, s&ecific knowledge can be of two ty&es@ tec%nically(s&ecific knowledge and conte9tually(s&ecific knowledge< aC =ec%nically(s&ecific knowledge is dee& knowledge about a s&ecific area and includes knowledge about t%e tools and tec%niFues t%at may be used to address &roblems in t%at area< =%is kind of knowledge is often acFuired as a &art of some formal training and is t%en augmented t%roug% e9&erience in t%e field< $or e9am&le, t%e e9act distance between t%e eart% and t%e sun, as mentioned in t%e e9am&le abo.e< bC onte9tually(s&ecific knowledge refers to t%e knowledge of &articular circumstances of time and &lace in w%ic% work is to be &erformed< onte9tually(s&ecific knowledge &ertains to t%e organi5ation and t%e organi5ational subunit wit%in w%ic% tasks are &erformed< =%is ty&e of knowledge cannot be acFuired t%roug% formal training, but instead must be obtained from wit%in t%e s&ecific conte9t< $or e9am&le, an astro(&%ysicist is able to calculate based on %is e9&erience and knowledge t%e e9act duration and time an ecli&se is likely to occur< I\ 8 W%at is Ge9&ertiseH? Distinguis% among t%e t%ree ty&es of e9&ertise< 19&ertise is defined as knowledge of %ig%er Fuality, w%ic% addresses t%e degree of knowledge< =%is term refers to .ery s&ecific knowledge, and one w%o &ossesses e9&ertise is able to &erform a task muc% better t%at t%ose w%o do not< 3 &erson can be an e9&ert at a &articular task irres&ecti.e of %ow so&%isticated t%at area of e9&ertise is< =o truly understand t%e meaning of an e9&ert, and e9&ertise, t%e skill le.els of e9&erts from different domains s%ould not be com&ared to eac% ot%er and t%e conce&t of e9&ertise must be furt%er classified for different ty&es of domains< 3ll e9&erts reFuire more or less t%e same cogniti.e skills< =%e difference %owe.er lies in t%e de&t% of t%eir e9&ertise w%en com&ared to ot%ers from t%eir own domains< $or e9am&le, a race car dri.er %as more skill t%an t%e a.erage car dri.er< N o&yrig%t >irtual :ni.ersity of 7akistan *2Knowledge Management EM!M=(/#0 >: I< \ 10 ontrast t%e differences between knowledge in &eo&le and knowledge in artifacts< Describe t%e .arious re&ositories of knowledge wit%in organi5ational entities< Knowledge resides in se.eral different locations or reser.oirs< =%ese can be classified into Knowledge in 7eo&le, Knowledge in 3rtifacts, and Knowledge in 4rgani5ational 1ntities< 1< Knowledge in 7eo&le (( 3 considerable com&onent of knowledge is stored in &eo&le, often in indi.iduals wit%in organi5ations< onsiderable knowledge also resides wit%in grou&s due to t%e relations%i&s among t%e members of t%e grou&< !rou&s also form beliefs about w%at works well and w%at does not, and t%is knowledge is o.er and abo.e t%e knowledge residing in eac% indi.idual member< ommunities of &ractice, w%ic% de.elo& as indi.iduals interact freFuently wit% eac% ot%er to discuss to&ics of mutual interest, are a good e9am&le of t%is< 2< Knowledge in 3rtifacts (( +ignificant amount of knowledge is stored in organi5ational artifacts< It could be stored in &ractices, organi5ational routines, or seFuential &atterns of interaction< Knowledge in artifacts are often embedded in &rocedures, rules, and norms t%at is de.elo&ed t%roug% e9&erience o.er time and guide future be%a.ior< onsiderable knowledge is also often stored in tec%nologies and systems< Knowledge re&ositories re&resent a t%ird way of storing knowledge in artifacts< $or e9am&le, a log of customer calls forms a good re&ository of information to de.elo& a freFuently asked Fuestions section of an organi5ationAs Website< #< Knowledge in 4rgani5ational 1ntities (( Knowledge in t%ese entities can be considered at t%ree le.els@ aC 4rgani5ational units;7arts of t%e 4rgani5ation (( re&resents a formal grou&ing of indi.iduals, w%o come toget%er not because of common interests but rat%er, because of organi5ational structuring< W%en indi.iduals occu&ying certain roles in an organi5ational unit de&art and are re&laced by ot%ers, t%e incumbents in%erit some, but not all, of t%e knowledge de.elo&ed by t%eir &redecessors, .ia t%e systems, &ractices, and relations%i&s wit%in t%at unit< bC 3n 1ntire 4rgani5ation (( suc% as a business unit or a cor&oration, also stores certain knowledge, es&ecially conte9tually s&ecific knowledge< Its norms, .alues, &ractices, and culture wit%in t%e organi5ation, and across its organi5ational units, contain knowledge t%at is not stored wit%in t%e mind of any one indi.idual< =%e way in w%ic% t%e organi5ation res&onds to en.ironmental e.ents is de&endent on t%e knowledge stored in indi.iduals and organi5ational units as well as in t%e o.erall organi5ational knowledge t%at %as de.elo&ed t%roug% &ositi.e and negati.e e9&eriences o.er time< cC Interorgani5ational relations%i&s (( 3s organi5ations establis% and consolidate relations%i&s wit% customers and su&&liers, t%ey draw u&on knowledge embedded in t%ose relations%i&s< 4rgani5ations often learn from t%eir customersA e9&erience wit% &roducts about %ow t%ese can be im&ro.ed< =%ey can also learn about new &roducts t%at mig%t be a&&ealing to customers< I\ 11 Determine t%e .arious ty&es of knowledge you are used to< Mou s%ould be able to state at least one of eac% ty&e< Knowledge %as been classified and c%aracteri5ed in se.eral different ways< In reading t%is c%a&ter, we see e9am&les of t%e .arious ty&es of knowledge being used< Declarati.e Knowledge E %as been used in terms of t%e meanings of 1nglis% words Bsuc% as G&%ysical,H Gcogniti.e,H etc<, and t%e meanings of .arious &unctuation marks, suc% as G,H and G<H 7rocedural Knowledge E was used in t%e actual reading of t%is book< W%en you reac%ed t%e end of a &age, you knew t%at you now needed to mo.e on to t%e ne9t &age or turn to t%e ne9t &age, until youA.e reac%ed t%e end of t%e book< N o&yrig%t >irtual :ni.ersity of 7akistan *8Knowledge Management EM!M=(/#0 >: =acit Knowledge E gained from reading t%e &reface of t%is book, w%ic% tells you about t%e book and its contents, %el&s understand t%is c%a&ter< 19&licit Knowledge E contained in t%e te9t of t%e c%a&ter %el&s understand t%e tables and figures in t%e c%a&ter< !eneral Knowledge E about to&ics suc% as restaurant, coins, and %urricanes , was used to understand t%e conce&ts e9&lained in t%e c%a&ter< +&ecific Knowledge E was used to a&&ly t%e conce&ts t%e student read about in t%e c%a&ter to real (world situations s%e may %a.e encountered at %er work &lace<
N o&yrig%t >irtual :ni.ersity of 7akistan /0Knowledge Management EM!M=(/#0 >: -1++4N 11 :ND1R+=3NDIN! D3=3 $4R 3N3-M+I+ 3ND D1I+I4N;74-IM M3KIN! 1< onsider fi.e decisions you mig%t %a.e made today< B=%ey could be sim&le suc% as, taking a turn w%ile dri.ing or e.en c%oosing a soft drink at a store<C In eac% case e9am&le below notice t%e data, information, or knowledge t%at were in.ol.ed in t%e decision< aC 3ction@ +ending an e(mail message to a friend Data@ 1(mail addresses of all indi.iduals at t%e uni.ersity at w%ic% your friend is a student Information@ 1(mail address of t%e friend to be contacted Knowledge@ 0ow to send an 1(mail bC 3ction@ Watc%ing your fa.orite tele.ision &rogram Data@ 4&ening t%e => guide Information@ Referring to t%e => guide to find out w%en t%e &rogram airs< Knowledge@ =urning on t%e => and setting it to t%e correct c%annel cC 3ction@ Dri.ing to work Data@ Details about t%e car functions like brakes, steering w%eel, etc< Information@ Directions from %ome to work Knowledge@ 0ow to dri.e and maneu.er a car dC 3ction@ 3nswering a ringing tele&%one Data@ 0earing t%e &%one ring Information@ W%ere t%e &%one is located Knowledge@ 0ow to &ick u& t%e recei.er and answer t%e &%one eC 3ction@ +etting a clock for Daylig%t +a.ing =ime Data@ Dates wit% and wit%out Daylig%t +a.ing =ime Information@ =%e date and time w%en to make t%e time c%ange Knowledge@ In w%ic% direction and by %ow muc% to adKust t%e clock 2< Now consider %ow t%ose decisions would %a.e been influenced by t%e lack of &re( e9isting data, information, or knowledge< 3s we see from t%e discussion below, eac% of t%e abo.e actions would be eit%er %indered to some e9tent, or e.en com&letely im&ossible in some cases in t%e absence of &re(e9isting data, information, or knowledge< +ending an e(mail to a friend would be im&ossible wit%out information of t%e e(mail address of t%e friend to be contacted< -ack of data on t%e e(mail addresses of all students at t%e uni.ersity would not be a &roblem if t%e information about t%e s&ecific friendAs e(mail address is a.ailable< )asic knowledge of %ow to o&en a &rogram to send an e(mail is necessary< Watc%ing your fa.orite tele.ision &rogram would be &ossible wit%out %a.ing to use t%e => guide or referring to t%e &rogram sc%edule< 0owe.er it would be a %indrance if one did not know w%at time t%e s%ow airs< Dri.ing to work absolutely reFuires t%e knowledge of %ow to dri.e and t%e directions to work< It does not reFuire detailed data about t%e car functions like brakes, steering w%eel, etc< In answering a ringing tele&%one, %earing t%e &%one ringing is .ital in t%e decision to answer t%e &%one< Information about t%e location of t%e &%one may not, %owe.er, be as im&ortant as one could determine t%is by mo.ing towards t%e ringing sound< +etting a clock for Daylig%t +a.ing =ime reFuires t%e information on w%en and %ow to make t%e time c%ange and knowledge about t%e direction and e9tent of clock adKustment< N o&yrig%t >irtual :ni.ersity of 7akistan /1Knowledge Management EM!M=(/#0 >: #< Mou %a.e recently in.ented a new &roduct< ollect demogra&%ic data from a sam&le &o&ulation, determine %ow you would use t%is data, and con.ert it into information and &ossibly knowledge for marketing t%e &roduct< =%is answer would focus on identifying t%e s&ecific kinds of data Be<g<, age, gender, education, income, etc<C and mani&ulating t%is data based on c%aracteristics of t%e in.ented &roduct Be<g<, if t%e new &roduct is one targeted at older men, t%e a.erage education le.el and income of men in %ig%er age grou&s would %el& identify t%e &ricing and t%e target audience for ad.ertisingC< '< Inter.iew a manager in a manufacturing organi5ation, and one in a ser.ices(based organi5ation< Determine t%e contrasting .iews of knowledge between t%e two due to t%e nature of t%eir businesses< 7ossible differences t%at mig%t be surfaced t%roug% t%is analysis are@ aC =%e manager in t%e manufacturing organi5ation mig%t identify greater e9am&les of &rocedural knowledge, w%ereas t%e manager in t%e ser.icing organi5ation mig%t identify greater e9am&les of declarati.e knowledge< bC =%e manager in t%e manufacturing organi5ation mig%t identify greater e9am&les of tacit knowledge, w%ereas t%e manager in t%e ser.icing organi5ation mig%t identify greater e9am&les of e9&licit knowledge< I 1 Describe t%e two ways &resented in t%e te9t for distinguis%ing knowledge from information and data< =%e sim&ler .iew merely distinguis%es between t%e .alue of t%e corres&onding information, w%ere data %as little .alue, information %as more .alue, and knowledge %as t%e greatest .alue< In t%is .iew, knowledge is at t%e to& of an information %ierarc%y wit% information .alue being t%e .ertical a9is< =%e second .iew states t%at knowledge is w%at enables us to &roduce more .aluable information from less .aluable information, wit% t%e im&ortance being on t%e transformation &rocess< It is more about relations%i&s between &ieces of information< I 2 !i.e e9am&les of data, information, and knowledge from t%e &ers&ecti.e of t%e fast food restaurant and restaurant manager< Data@ t%e number of burgers ordered, number of burgers ser.ed Balso true for all ot%er menu items including s%akes and friesC, ser.er and c%ef salaries, burgers in stock, sales &rice of an order, cost of a burger< Information@ daily sales numbers Bru&ees, Fuantity, or &ercent of daily salesC for eac% item, t%e daily reduction in in.entory for eac% item, total number of customers for t%e day, &ercentage of customers ordering burgers;s%akes;ot%er, reorder Fuantities for restaurant food items, t%e a.erage time s&ent by a ser.er on eac% customer< Knowledge@ =%e trend of customer numbers indicating future customers and ordering &atterns, t%e relations%i& between &roKected burger sales and bread in.entory Bor any ot%er menu item and corres&onding material, e<g<, s%akes and milkC, t%e relations%i& between &roKected customers and a.erage ser.er time and desired ser.er times to determine staffing needs< I # )riefly describe t%e .arious &ers&ecti.es on knowledge< Knowledge may be e9amined eit%er subKecti.ely or obKecti.ely< =%e subKecti.e .iew ties knowledge to an indi.idualAs e9&erience in social interactions wit% ot%ers and is classified as eit%er a state of mind or as a &ractice< N o&yrig%t >irtual :ni.ersity of 7akistan /2Knowledge Management EM!M=(/#0 >: =%e obKecti.e .iew claims t%at knowledge e9ists in a &riori categories or conce&ts inde&endent of any indi.idual< =%is a &riori knowledge may e9ist as an obKect, a ca&ability, or sim&ly as access to information I ' -ist and briefly define t%e t%ree ty&es of obKecti.e knowledge< 1< Knowledge as an obKect, w%ere an obKect is somet%ing t%at can be stored, transferred, and mani&ulated< 2< Knowledge as access to information< 1nable access and utili5ation of information< #< Knowledge as ca&ability< 1m&%asis on knowledge as a strategic ca&ability, %ow knowledge may be a&&lied to influence action< I * W%at are t%e t%ree classifications of knowledge %ig%lig%ted<? 7rocedural or declarati.e, indicating t%at knowledge may be classified as eit%er data(oriented or task(oriented< =acit or e9&licit, indicating knowledge t%at is %eld in t%e %eads of indi.iduals or grou&s or alternately encoded in some ot%er storage medium< !eneral or s&ecific, indicating t%e breadt% of owners%i& of t%e knowledge wit% general knowledge %eld by many and s&ecific knowledge %eld by few< I / 0ow can e9&licit knowledge be transferred to tacit knowledge? 19&licit knowledge is knowledge t%at is articulated Band freFuently encodedC and may be easily transferred to anot%er indi.idual or grou&< W%en an indi.idual acFuires knowledge from an e9&licit form Bt%roug% reading;%earing;feeling;obser.ingC, t%en t%e knowledge must be remembered to become tacit and as suc% is transformed to conform to or modify t%e indi.idualAs e9isting belief system< 3n e9am&le would be w%en an em&loyee looks into a manual to determine %ow to install a new &iece of %ardware in %is;%er com&uter< =%e manual is e9&licit &rocedural information< 3fter &erforming a few installs, t%e em&loyee will learn t%e s&ecified &rocedures and &ossibly some im&ro.ements to t%e documented &rocedures, t%us transforming t%e e9&licit knowledge into tacit knowledge< I " -ist and define t%e t%ree ty&es of e9&ertise discussed in t%e te9t< 3ssociational e9&ertise comes from years of e9&erience and recogni5ing &atterns in data< 3n e9am&le would be a mec%anic w%o can diagnose t%e &otential &roblems in a car Kust from listening to t%e sounds made by t%e car< Motor skill e9&ertise is &redominantly &%ysical instead of cogniti.e and results from a .ery large number of &ractice sessions to de.elo& a &articular &%ysical skill suc% as s%ooting a basketball< =%eoretical or dee& e9&ertise is knowledge of a &articular to&ic far beyond t%e a.erage indi.idual< =%e ability to go beyond su&erficial understanding and create no.el solutions to &roblems based on t%e t%eoretical foundations of t%e domain< =est Mour :nderstanding 1< +elect one definition of KM and e9&lain t%e reasonBsC for your c%oice< 3ny definition is a candidate, because of one or more as&ects of w%at KM %as, is, or s%ould be< J :sing accessible knowledge from outside sources J 1mbedding and storing knowledge in business &rocesses, &roducts, and ser.ices J Re&resenting knowledge in databases and documents J 7romoting knowledge growt% t%roug% t%e organi5ationAs culture and incenti.es J =ransferring and s%aring knowledge t%roug%out t%e organi5ation N o&yrig%t >irtual :ni.ersity of 7akistan /#Knowledge Management EM!M=(/#0 >: J 3ssessing t%e .alue of knowledge assets and im&act on a regular basis +tudents s%ould be encouraged to come u& wit% a creati.e su&&ort of t%eir c%oice of a KM definition< 2< KM in.ol.es &eo&le, tec%nology, and &rocesses in o.erla&&ing &arts< 19&lain t%e KM conce&t< =%e ideal organi5ation is one w%ere &eo&le e9c%ange knowledge across functional areas of t%e business by using tec%nology and establis%ed &rocesses< =%e e9c%ange may be for &olicy formulation and strategy, for training and de.elo&ment, or for &roblem sol.ing in teams< None of t%e t%ree areas can function inde&endently of one anot%er< #< 4ne uniFue indicator of KM in action is seeing &eo&le t%ink a%ead, not be%ind< Do you agree wit% t%is statement? 19&lain w%y you agree or disagree< 7rogress, ad.ancement, and growt% are future(oriented< =%ey reFuire &eo&le to t%ink a%ead< '< In w%at way is KM not about@ a< reengineering b< a disci&line c< data d< knowledge ca&ture a< KM is a mec%anical s%ift from one stage of o&eration to a more efficient stageZnot a one( s%ot drastic c%ange in organi5ational &rocesses to im&ro.e efficiency< b< KM is anot%er way to im&ro.e Fuality, &rofitability, and growt% c< Data is facts wit%out conte9t< KM is actionable information to create .alue< d< Knowledge cannot be ca&tured in its entirety, because of t%e im&lied %uman maturation o.er time t%at u&grades t%e Fuality and .alue of knowledgeZes&ecially tacit knowledge< N o&yrig%t >irtual :ni.ersity of 7akistan /'Knowledge Management EM!M=(/#0 >: -1++4N 12 KN4W-1D!1 0I1R3R0M INDI>ID:3- >+ 4R!3NI[3=I4N 0uman =%inking and -earning )ecause knowledge is t%e focus of knowledge management, knowledge de.elo&ers need to understand %ow %umans t%ink and learn< +cientists %a.e long tried to under stand t%e %uman brain as &art of t%eir &rocess of building com&uters t%at may someday du&licate t%e %uman e9&ertAs t%oug%t &rocess in &roblem(sol.ing< Imagine a c%ild using blocks to build a tower< 3s soon as t%e tower is com&leted, t%e c%ild takes a w%ack at t%e tower, destroying it< Ne9t, t%e c%ild builds a %ig%er tower and t%en destroys it as well, and so on< 1.entually, t%e c%ild becomes %ungry, and t%e &attern of ):I-D and D1+=R4M begins to degenerate< =%e c%ild gi.es t%e tower one final swi&e, destroying it one t%e way to t%e kitc%en< =%ese s&ontaneous acti.ities %a.e &ro.ed to be difficult for com&uters, mainly because no one knows w%y &eo&le do t%em and, t%erefore, knows %ow to instruct t%e com&uter to do t%em< 3ccording to Mar.in Minsky B1881C, t%e %uman mind is a Gsociety of mindsH t%at is %ierarc%ically structured and interconnected so t%at t%e ):I-D, D1+=R4M, and 0:N!1R agents of t%e c%ild are minds t%at re&resent t%e self, &romote intelligence, and &ro.ide t%e basis for acFuiring knowledge< =%e study of artificial intelligence %as introduced more structure into %uman t%inking about t%inking< +o many acti.ities of t%e com&uter resemble %uman cogniti.e &rocesses t%at %uman and mac%ine Gt%inkingH are con.erging in many a&&lications, des&ite t%e differences between t%e brainAs arc%itecture and t%e com&uterAs< $or e9am&le, bot% mind and mac%ine acce&t data and information, mani&ulate symbols, store items in memory, and retrie.e items on command< 4b.iously, %umans do not recei.e and &rocess information in t%e same way t%at mac%ines do< $or instance, %umans recei.e information .ia sensing(seeing, smelling, tasting, touc%ing, and %earing< =%is system of recei.ing e9ternal stimuli &romotes a kind of t%inking and learning t%at is uniFue to %umans< 4n a macro le.el, com&uters and %uman recei.e in&uts from a .ariety of sources< om&uters recei.e information from keyboards, s&eec%, touc% screens, and ot%er e9ternal sensors< 4n a micro le.el, bot% t%e central &rocessing unit of a com&uter and t%e %uman brain recei.e all information as electrical im&ulses< =%e difference is t%at com&uters must be &rogrammed to do s&ecific tasks< 7erforming one Kob does not transcend onto ot%er Kobs as it does wit% %uman< 0uman -earning Memory is an essential com&onent of learning, because it accommodates learning< 4ne interesting as&ect of %ealt%y %uman memory is t%at it ne.er seems to run out of s&ace< 3lso, as %umans acFuire more and more knowledge, t%ey generally e9&erience title interference wit% t%e recall ability or t%e Fuality of t%e information n memory< In ot%er words, as &eo&le learn new facts, t%ey integrate t%em in some way wit% w%at t%ey t%ink is rele.ant and organi5e t%e resulting mi9 to &roduce .aluable decisions, solutions, or ad.ice< +uc% learning ability is t%e basis of accumulating knowledge, e9&erience, and e9&ertise< $or %umans, learning occurs in one of t%ree ways@ learning by e9&erience, learning by e9am&le, and learning by disco.ery< =%e ne9t section e9&lores t%ese ty&es in an effort to see %ow t%ey contribute to %uman knowledge< -earning )y 19&erience =%e ability to learn by e9&erience is a mark of intelligence< W%en an e9&ert is selected w%ose knowledge someone wants to acFuire, t%e e9&ert is e9&ected to %a.e years of e9&erience reworking &roblems and looking into different angles for sol.ing difficult N o&yrig%t >irtual :ni.ersity of 7akistan /*Knowledge Management EM!M=(/#0 >: =%ree ty&es of 0uman -earning -earning by e9&erience =rial and error or reworking &roblems is used to acFuire e9&erience in &roblem(sol.ing< 3n e9&ert uses e9&erience to e9&lain %ow a &roblem is sol.ed< -earning by e9am&le +&ecially constructed e9am&les or scenarios are used to de.elo& t%e conce&tBsC t%e student is e9&ected to learn< In knowledge ca&ture, t%e %uman e9&ert uses a scenario to e9&lain %ow a &roblem is sol.ed< -earning by disco.ery =%is is an undirected a&&roac%, w%ere %umans e9&lore a &roblem area wit% no ad.ance knowledge of w%at t%eir obKect is< 7roblems< 4ne way of testing &otential e9&erts is to obser.e t%eir recall ability< 19&erts, w%o know a lot about a &articular &roblem, %a.e been found to remember facts in t%at &roblem area muc% more easily and more Fuickly t%an non(e9&erts, w%o &resumably %a.e fewer facts to recall< =%is ty&e of information would be im&ortant for t%e knowledge de.elo&er to kee& in mind w%en understanding a %uman e9&ertAs range of knowledge< -earning )y 19am&le -ike learning by e9&erience, learning by e9am&le is a good contributor to accumulating knowledge o.er time< In learning by e9am&le, s&ecially constructed e9am&les are used instead of a broad range of e9&erience< Muc% classroom instruction is com&osed of teac%ing by e9am&le E &ro.iding e9am&les, cases, or scenarios t%at de.elo& t%e conce&ts students are e9&ected to learn< )ecause t%is met%od allows students to learn wit%out reFuiring t%em to accumulate e9&erience, it is more efficient t%an learning by e9&erience< -earning )y Disco.ery -earning by disco.ery is less understood t%an learning by e9am&le or by e9&erience< It is an undirected a&&roac% in w%ic% %umans e9&lore a &roblem area wit%out ad.anced knowledge of t%e obKecti.e< No one understands w%y %uman are so good at t%is< It is difficult to teac%, and it will be years before we can benefit from t%is a&&roac% commercially< In summary6 =%inking and -earning in 0umans J Researc% in t%e area of artificial intelligence %as introduced more structure into %uman t%inking about t%inking< J 0umans do not necessarily recei.e and &rocess information in e9actly t%e same way as t%e mac%ines do< J 0umans can recei.e information .ia seeing, smelling, touc%ing, %earing BsensingC etc<, w%ic% &romotes a way of t%inking and learning t%at is uniFue to %umans< J 4n macro le.el, %umans and com&uters can recei.e in&uts from a multitude of sources< J om&uters can recei.e in&uts from keyboards, touc% screens etc< J 4n micro le.el, bot% %uman brain and 7: of a com&uter recei.e information as electrical im&ulses< J =%e &oint to note %ere is t%at t%e com&uters must be &rogrammed to do s&ecific tasks< 7erforming one task does not necessarily transcend onto ot%er tasks as it may do wit% %umans< J 0uman learning@ 0umans learn new facts, integrate t%em in some way w%ic% t%ey t%ink is rele.ant and organi5e t%e result to &roduce necessary solution, ad.ice and decision< 0uman learning can occur in t%e following ways@ o -earning t%roug% 19&erience< o -earning by 19am&le< o -earning by Disco.ery< Im&lications for knowledge management at 4rgani5ation Knowledge awareness benefits entire organi5ations< Wit% todayAs em&%ases on sustainable com&etiti.e ad.antage, added .alue, and im&ro.ed &roducti.ity, a firmAs management needs to create, inno.ate, monitor, and &rotect its knowledge in.entory< More s&ecifically, a KM en.ironment means a focus on N o&yrig%t >irtual :ni.ersity of 7akistan //Knowledge Management EM!M=(/#0 >: generating new knowledge6 transferring e9isting knowledge6 embedding knowledge in &roducts, ser.ices, and &rocesses6 de.elo&ing an en.ironment for facilitating knowledge growt%6 and accessing .aluable knowledge from inside and outside t%e firm< W%en t%is %a&&ens, it is beyond sur.i.al< In fact, it is beyond intranets and databases(t%e tec%nology t%at su&&orts KM< +ome sources claim t%at 20 &ercent of an organi5ationAs knowledgeable &ersonnel can o&erate 20 &ercent of t%e organi5ationAs day(to(day business< =%e %uman resources manager can &lay an im&ortant role in identifying t%e knowledge core of t%e organi5ation, recommending ways to &reser.e t%is critical core, and building a robust, long(range &lan to ensure to&(Fuality o&eration< Wit%out suc% &re&aration, cor&orate talent could &otentially erode t%roug% a brain drain t%at s&ells disaster for any business< 3t t%e same time, &rofessionals wit% e9&ertise are naturally drawn to organi5ations t%at recogni5e and reward e9&ertise es&ecially w%en t%at e9&ertise directly contributes to t%e firmAs &roducti.ity< +uc% matc%es e9&lain t%e stability and growt% of many successful GlearningH com&anies< )ased on t%e discussion %ere, se.eral ideas s%ould be considered for %ow a com&any s%ould &erform in order to create and maintain sustainable com&etiti.e ad.antage< $irst, t%ere s%ould be more em&%asis on ta&&ing, s%aring and &reser.ing tacit knowledge and t%e total knowledge base of t%e com&any< 3 com&anyAs knowledge base includes e9&licit and tacit knowledge and e9ists internally in t%e business as well as wit%in t%e firmAs e9ternal connections< +econd, com&anies s%ould focus on inno.ation and t%e &rocesses t%at con.ert inno.ation to new &roducts and ser.ices< Knowledge s%aring and an em&%asis on t%e total knowledge base &romote inno.ation< W%at good is knowledge if it cannot be s%are? If knowledge is &ower, s%aring it will multi&ly &ower across t%e business< :nfortunately, s%aring knowledge is an unnatural t%ing< 4ne &ersonAs knowledge is an added .alue to t%at &ersonAs career &at%< Knowledge management is designed to sol.e t%e &roblem of un(recycled knowledge< +ystems %a.e been de.elo&ed to gat%er, organi5e, refine, and distribute knowledge t%roug%out t%e business< >irtually all suc% systems s%ould %a.e si9 key attributes@ learning ca&ability, im&ro.ing wit% use, knowing w%at you want, two(way communication between t%e system and you, recalling &ast actions to de.elo8& a &rofile, and uniFue configuration to your indi.idual s&ecification in real time< In t%e final analysis, communication and connection make knowledge s%aring an ongoing acti.ity< =ec%nology can only do so muc% to create a formal system< +uccess wit% KM e9ists w%en t%e culture is ready to communicate and connect< =%e end result is Gcommunity,H built around knowledge and based on .ision< J Intelligent be%a.iour %as se.eral attributes@ o =%e ability to understand and use language o =%e ability to store and retrie.e rele.ant e9&erience at will o -earning by e9am&le, from e9&erience, or by disco.ery< J +e.eral key terms are wort% noting@ o Knowledge(:nderstanding gained t%roug% e9&erience o Intelligence( t%e ca&acity to a&&ly knowledge o 0euristics( rules of t%umb bases on years of e9&erience o ommon sense E innate ability to sense, Kudge, or &ercei.e situations t%at grows stronger o.er time< o 19&erience(c%anging facts into knowledge to refine a reasoning &rocess J 3 distinguis%ing feature of %uman learning is t%at as &eo&le learn new facts, t%ey integrate t%em in some way and use t%e resulting mi9 to generate .alue(added decisions, solutions, or ad.ice< J 0umans learn by e9&erience, by e9am&le, and by disco.ery< -earning by disco.ery is less understood t%an learning by e9am&le and by e9&erience< -earning continues to be a maKor concern in knowledge management< J Knowledge de.elo&ers, w%ose Kob is to ca&ture e9&ertAs knowledge, need to be well &re&ared and to %a.e a clear understanding of t%e distinctions among knowledge, information, and data< =%ey must focus on knowledge as it relates to t%e &roblem area< J =%e relati.e im&ortance of data, information, and knowledge is a function of t%e im&ortance of t%e &roblem, t%e decision a&&roac%, t%e nature of t%e &roblem, and t%e number of &erson N o&yrig%t >irtual :ni.ersity of 7akistan /"Knowledge Management EM!M=(/#0 >: affected< W%ereas data &lays a relati.ely tri.ial role in &roblem(sol.ing, knowledge occu&ies a maKor role< =%e decision a&&roac% is ad.isory and relates to a difficult &roblem affecting many &eo&le in t%e organi5ation< J 19&ert knowledge is clustered, or G%unked,H in long(range memory< %unking &romotes e9&ert &erformance, but can also make it difficult for e9&erts to be aware of t%eir own knowledge in a way t%at allows t%em to describe it to ot%ers< J 0umans %a.e common(sense knowledge, a collection of &ersonal e9&eriences and facts acFuired o.er time< =%e fact t%at common(sense reasoning is so strong in e9&erts makes it difficult for knowledge de.elo&ers to ca&ture t%eir dee& knowledge< J Knowledge can be classified by &rocedural, declarati.e, semantic, or e&isodic means< o 7rocedural knowledge is knowledge t%at is used o.er and o.er again< o Declarati.e knowledge is knowledge t%at t%e e9&ert is aware or conscious of< It is s%allow knowledge< o +emantic knowledge is c%unked knowledge t%at resides in t%e e9&ertAs long(range memory< o 1&isodic knowledge is knowledge based on e9&eriential information< 1ac% e&isode is c%unked in long(range memory< J ommon sense is inferences made from knowledge about t%e world< Reasoning is t%e &rocess of a&&lying knowledge to arri.e at solutions< It works t%roug% t%e interaction of rules and data< J Deducti.e reasoning deals wit% e9act facts and conclusions< =%e idea be%ind deducti.e reasoning is to generate new knowledge from &re.iously s&ecified knowledge< In contrast, inducti.e reasoning is reasoning from a set of facts to general &rinci&les< Induction usually &roduces results wit%out e9&lanation< J Knowledge %as also been classified as tacit and e9&licit knowledge< =acit knowledge, or Gknow( %ow,H is stored in &eo&leAs minds and is not so easy to ca&ture or s%are< )y contrast, e9&licit knowledge is codified and digiti5ed in t%e form of records, re&orts, or documents and is reusable for decision making< J ase(based reasoning is reasoning by analogy< 0uman e9&ertAs reason about a &roblem by recalling similar cases encountered in t%e &ast< N o&yrig%t >irtual :ni.ersity of 7akistan /2Knowledge Management EM!M=(/#0 >: =erms to Know ase@ Knowledge at an o&erational le.el6 e&isodic descri&tion of a &roblem and its associated solution< ase(based reasoning@ 3 met%odology t%at records and documents &re.ious cases and t%en searc%es t%e rele.ant caseBsC to determine t%eir usefulness in sol.ing a current &roblem6 &roblem(sol.ing a case by analogy wit%%old ones< %unking@ !rou&ing ideas or details t%at are stored and recalled toget%er as a unit< ommon sense@ 7ossessing common knowledge about t%e world and making ob.ious inferences from t%is knowledge< om&ilation@ =%e way a %uman translates instructions into meaning language or res&onse< Decision su&&ort systems BD++C@ om&uter(based information systems t%at combine models and data for sol.ing com&le9 &roblems wit% e9tensi.e user in.ol.ement< Declarati.e knowledge@ +urface information t%at e9&erts .erbali5e easily< Deducti.e reasoning@ 3lso called e9act reasoning6 takes know &rinci&les Be9act factsC and a&&lies t%em to instances to infer an e9act conclusion< Dee& knowledge@ Knowledge based on t%e fundamental structure, function, and be%a.ior of obKects< 1&isodic knowledge@ Knowledge based on e9&eriential information c%unked as an entity and retrie.ed from long(term memory on recall< 19&erience@ =%e factor t%at c%anges unrelated facts into e9&ert knowledge< 19&ert@ 3 &erson w%ose knowledge and skills are based on years of s&eciali5ed e9&erience< 19&ertise@ =%e skill and knowledge &ossessed by some %umans t%at result in &erformance t%at is far abo.e t%e norm< 19&licit knowledge@ Knowledge codified in documents, books, or ot%er re&ositories< $act@ 3 statement of a certain element of trut% about a subKect matter or a &roblem area< 0euristic@ 3 rule of t%umb based on years of e9&erience< Inducti.e reasoning@ Reasoning from a gi.en set of facts or s&ecific e9am&les to general &rinci&les or rules< Inferencing@ Deri.ing a conclusion based on statements t%at only im&ly t%at conclusion< Intelligence@ =%e ca&acity to acFuire and a&&ly knowledge t%roug% t%e ability to t%ink and reason< Knowledge@ :nderstanding, awareness, or familiarity acFuired t%roug% education or e9&erience< -earning@ Knowledge or skill acFuired by instruction or study< -earning by disco.ery@ 3cFuiring new ideas by e9&loring a &roblem area wit% no ad.ance knowledge of w%at is being soug%t< -earning by e9am&le@ 3cFuiring new ideas based on s&ecially constructed e9am&les or scenarios< -earning by e9&erience@ 3cFuiring new ideas based on %undreds of &re.iously stored conce&ts< -ogic@ =%e scientific study of t%e &rocess of reasoning and t%e set of rules and &rocedures used in t%e reasoning &rocess< Memory@ =%e ability to store and retrie.e rele.ant e9&erience at will< 7remise@ 7ro.ides t%e e.idence from w%ic% t%e conclusion must necessarily follow6 e.aluates t%e trust of false%ood wit% some degree of certainty< 7rocedural rule@ 3 rule t%at describes a seFuence of relations relati.e to t%e &roblem area< Reasoning@ =%e &rocess of a&&lying knowledge to arri.e at solutions based on t%e interactions between rules and data< +cenario@ =%e formal descri&tion of %ow a &roblem situation o&erates< +emantic knowledge@ %ig%ly organi5ed, G%unkedH knowledge t%at resides in t%e e9&ertAs long(term memory and re&resents conce&ts, facts, and relations%i&s among facts< +%allow knowledge@ Readily recalled knowledge t%at resides in s%ort(term memory< +%ort(term memory@ Readily recalled knowledge t%at resides in s%ort(term memory< +%ort term memory@ =%e &art of t%e %uman brain t%at retains information for a s%ort &eriod of time< =acit knowledge@ Knowledge used to create e9&licit knowledge6 t%e mind(set of indi.iduals t%at includes intuitions, .alues, and beliefs t%at stem from e9&erience< =est Mour :nderstanding 1< If intelligence is t%e ca&acity to acFuire and a&&ly knowledge, w%at is knowledge? Knowledge is oneAs ca&acity to acFuire and a&&ly knowledge< Knowledge is familiari5ing, understanding, or awareness acFuired t%roug% e9&erience< 3n intelligent &erson %as t%e ability to t%ink and reason< N o&yrig%t >irtual :ni.ersity of 7akistan /8Knowledge Management EM!M=(/#0 >: 2< )riefly e9&lain t%e key attributes of intelligent be%a.ior =%e key attributes of intelligent be%a.ior are@ a< 3bility to understand and use language< +uc% language understanding is not so easy for t%e com&uter< 7rior knowledge and common sense also enter t%e &icture< b< Memory or storing and retrie.ing rele.ant e9&erience at will< 0ow t%is is all done is unclear< c< -earning is knowledge or skill acFuired by instruction or study< We %a.e yet to see some success in Gmac%ine learning<H 7eo&le learn from e9&erienceZnot com&uters 2< Distinguis% between@ a< fact and rule b< knowledge and common sense c< e9&erience and %euristics d< learning by e9am&le and learning by disco.ery a< 3 fact is a statement t%at relates a certain element of trut% about a subKect matter or domain< 3 rule describes a seFuence of relations relati.e to t%e domain or subKect matter< b< Knowledge is a &ersonAs range of information, embracing a wider s&%ere t%an information< Knowledge includes common sense, &erce&tion, and e9&erience< ommon sense is unreflecti.e o&inions of ordinary &eo&le< It comes to t%em naturally< -ack of it makes knowledge based systems brittle< c< 19&erience is closely related to knowledge< We use e9&erience to c%ange facts into knowledge, w%ic% se&arates no.ices from e9&erts< 19&erience is t%e factor t%at c%anges unrelated facts into e9&ert knowledge< 0euristics is a rule of t%umb based on e9&erience< +o, %euristics takes e9&erience as t%e bases for rules of t%umb< d< -earning by e9am&le incor&orates s&ecially constructed e9am&les rat%er t%an a broad range of e9&erience< Muc% classroom learning is learning by e9ce&tion< In contrast, learning by disco.ery is an undirected a&&roac% w%ere %umans or mac%ines e9&lore a domain wit% no ad.ance knowledge of w%at t%eir obKect is< It is difficult to teac% and will be years before we can benefit from t%is a&&roac%< #< Define e&isodic knowledge and semantic knowledge< !i.e an e9am&le of eac%< 1&isodic knowledge is knowledge based on e9&eriential information c%unked as an entity and retrie.ed from long(term memory on recall< It is synonymous wit% dee& knowledge< $or e9am&le, a &rofessor wit% years of consulting e9&erience tends to teac% by scenarios or by e9am&les< +uc% a &erson doesnAt %a.e to t%ink long about citing an e&isode to illustrate a &oint< +emantic knowledge is %ig%ly organi5ed, Gc%unkedH knowledge t%at resides in t%e e9&ertAs long(term memory and re&resents conce&ts, facts, and relations%i&s among facts< $or e9am&le, a &rofessor teac%ing networking would e9&lain o&enly and clearly t%e network conce&ts, ty&es of cables and t%eir functions, %ow 7s are connected to a ser.er, etc< =%ese are all facts, relations%i&s, and realities based on e9&erience< '< Illustrate by e9am&le t%e &ossible relations%i& between BaC knowledge and information and BbC knowledge and data< a< Knowledge is understanding of information based on its &ercei.ed im&ortance or rele.ance to a &roblem domain< It is a &ersonAs range of information< It includes &erce&tion, skills, training, common sense, and e9&erience< It is t%e sum total of our &erce&ti.e &rocesses t%at %el&s us draw meaningful conclusions< In contrast, information is an aggregation of data t%at makes decision making easier< It is reformatted or &rocessed data< 3 ste& %ig%er in abstraction t%an information is knowledge< b< om&ared to knowledge, data are un&rocessed facts< 0owe.er, t%e meaning one brings to t%e e.aluation of data becomes information w%ic%, in turn, could add to oneAs knowledge N o&yrig%t >irtual :ni.ersity of 7akistan "0Knowledge Management EM!M=(/#0 >: *< W%y is knowledge com&iled? Discuss its relations%i& to long(range memory Knowledge is com&iled in t%e e9&ertAs long(range memory as c%unks< Knowledge com&ilation or c%unking, enables e9&erts to o&timi5e t%eir memory ca&acity and &rocess information Fuickly< %unking &romotes e9&ert &erformance< =%e more c%unking a &erson does, t%e more efficient is %is or %er recall< +o, as a &erson becomes an e9&ert, more and more of t%e knowledge and e9&erience is com&ressed in oneAs long(range memory< It is tantamount to storing files on t%e %ard disk w%en not in use< Knowledge 19ercises 1< 7eo&le do not t%ink in t%e same way as mac%ines, because t%ey are biological<H Do you agree? 19&lain a< 0umanlike be%a.ior im&lies t%inking< +ince com&uters can only dis&lay suc% be%a.ior, t%ey are not t%inking t%ings b< 0umans are ali.e and reason wit% reality< om&uters %a.e neit%er attribute6 t%erefore, t%ey cannot t%ink as suc% c< 0umans %a.e consciousness< =%ey look at o&tions and are conscious of subtle constraints or t%e immediate en.ironment before t%ey c%oose to mo.e one way or t%e ot%er< om&uters donAt %a.e suc% freedom, because t%ey are not conscious of t%e &ossibilities< =%erefore, t%ey donAt t%ink< d< 0umans rely on commonsense knowledge or intuiti.ely follow a &at% t%at lead to a solution or a decision< om&uters do not %a.e suc% intelligence< =%erefore, t%ey cannot t%ink< $or e9am&le@ 3 baseball &layer is ready to bat< 3s %e waits, %e looks at t%e &itc%erAs face, re.iews %is &eers at t%e bases, and t%e layout of t%e ot%er &layers in t%e field< +omet%ing tells %im t%at t%e &itc%er is going to &itc% a ball t%at will force %im to walk< 4r %e senses t%at t%e ne9t &itc% will be for real6 so, %eAd better bat< =%is assessment is done in a matter of seconds< om&uters are now%ere close to t%is le.el of intelligent decision making< =%erefore, t%ey cannot t%ink< MouAre dri.ing on a busy %ig%way< =%ere is a car in front of you tra.eling at t%e same s&eed< Mou look a%ead and see a slow truck going u& a %ill< +omet%ing tells you t%at t%e car in front of you is going to &ass t%e truck soon< Mou look at t%e icy conditions in t%e left lane and t%e last accident you %ad two weeks ago< +omet%ing tells you to &ass after t%e front car does< om&uters cannot be t%at intuiti.e< =%erefore, t%ey cannot t%ink< Mou enroll in &rofessor Dr< 3< Ras%id KausarAs knowledge management course< Mou %a.e already scanned t%e notes t%e nig%t before< Mou listen to %er re.iew of t%e syllabus and course reFuirements< 0e %as a re&utation for being a good teac%er, but toug% w%en it comes to t%e final grade< +omet%ing about t%e tone of %is .oice and t%e way %eAs setting u& t%e course tells you t%at youAd better enroll in a different electi.e< om&uters are not t%at intuiti.e< =%erefore, t%ey cannot t%ink< 2< W%at ty&e of knowledge is used in eac% of t%ese acti.ities@ a< tying a s%oelace b< debugging a com&uter &rogram c< baking a &ie d< re&lacing a carAs flat tire e< negotiating &eace wit% a %ostile country f< dri.ing in congested traffic 19&lain eac% classification a< =y&ing a s%oelace is automatic after a &erson &erforms t%e task a number of times< It is &rocedural knowledge, in t%at it in.ol.es an understanding of %ow to do a task or a &rocedure< It is essentially motor in nature b< Debugging a com&uter &rogram is &retty muc% semantic knowledge, de&ending on t%e &rogramming language and t%e le.el of com&le9ity of t%e &rogram< !enerally, in N o&yrig%t >irtual :ni.ersity of 7akistan "1Knowledge Management EM!M=(/#0 >: &rogramming, debugging knowledge is %ierarc%ically organi5ed knowledge of relations%i&s among facts< It could also be e&isodic knowledge, in t%at looking at segments of t%e &rogram, t%e &rogrammer uses &ast e9&erience wit% similar &rogram segments to determine t%e likely solution to a bug or logical error< In t%is case, it is e9&eriential information t%at is c%unked by e&isodes c< )aking a &ie is &rocedural knowledge, if all t%ere is to do is to measure t%e ingredients, and follow a &rocedure based on a reci&e< If a &ie is de.ised from memory and is baked using &ast e9&erience wit% similar &ies and constraints suc% as t%ickness, ingredients Bnumber, consistency, te9ture, etc<C, and t%e si5e of t%e &ie, t%en it is e&isodic knowledge d< Re&lacing a carAs flat tire is &rocedural knowledge< It is knowledge of %ow to do a task t%at is essentially motor in nature< =%e same knowledge is used o.er and o.er again< e< Negotiating &eace wit% a %ostile country is definitely e&isodic knowledge< =%ink of former +ecretary of +tate 0enry KissingerAs e9&erience and knowledge in %is s%uttle di&lomacy to negotiate t%e end of war in >ietnam and &eace in t%e Middle 1ast between Israel and 1gy&t< f< Dri.ing in congested traffic is declarati.e, semantic, or e&isodic knowledge, de&ending on t%e years of e9&erience of t%e dri.er< 3 young, ine9&erienced dri.er dri.ing during t%e rus% %our in a large city would &robably stick to one lane and stay in it all t%e way %ome< It is safe and &rudent< =%e knowledge used is declarati.e, in t%at it is easily .erbali5ed and is t%e building block toward semantic knowledge, w%ic% uses e9&erience to %ierarc%ically organi5e knowledge of facts, &rocedures, and relations%i&s among facts for im&ro.ed efficiency of na.igating t%roug% congested traffic in t%e future< In contrast, a seasoned dri.er maneu.ers around automobiles across different lanes, si5ing u& t%e traffic, t%e carBsC a%ead, and be%a.ing accordingly< =%is is referred to as e&isodic knowledge< N o&yrig%t >irtual :ni.ersity of 7akistan "2Knowledge Management EM!M=(/#0 >: -1++4N 1# DIM1N+I4N+ 4$ 0:M3N KN4W-1D!1, =R11 4$ KN4W-1D!1 ore >s Inno.ati.e Knowledge 0ow do Da&anese com&anies bring about continuous inno.ation? 4ne way is to look outside and into t%e future, antici&ating c%anges in t%e market, tec%nology, com&etition, or &roduct< =%us far t%e li.ing in a world of uncertainty worked in fa.or of Da&anese com&anies, since t%ey were constantly forced to make t%eir e9isting ad.antages obsolete< In fact, t%is trait E t%e willingness to abandon w%at %as long been successful E is found in all successful com&anies, not only t%ose in Da&an< =o t%ese com&anies, c%ange is an e.eryday e.ent and a &ositi.e force< ontrast t%is mindset, w%ic% became &reoccu&ied wit% defending t%eir ad.antages and treated c%ange wit% t%e fear t%at t%ere was muc% to lose< =%ey became insular, seeking &redictability and stability< =imes of uncertainty often force com&anies to seek knowledge %eld by t%ose outside t%e organi5ation< Da&anese com&anies %a.e continually turned to t%eir su&&liers, customers, distributors, go.ernment agencies, and e.en com&etitors for any new insig%ts or clues t%ey may %a.e to offer< Dust as t%e &ro.erbial Gdrowning man will catc% at a straw<H =%ese com&anies accumulate knowledge from t%e outside almost in des&eration during times of uncertainty< W%at is uniFue about t%e way Da&anese com&anies bring about continuous inno.ation is t%e linkage between t%e outside is s%ared widely wit%in t%e organi5ation, stored as &art of t%e com&anyAs knowledge base, and utili5ed by t%ose engaged in de.elo&ing new tec%nologies and &roducts< 3 con.ersion of some sort takes &lace6 it is t%is con.ersion &rocess E from outside to inside and back outside again in t%e form of new &roducts, ser.ices, or systems E t%at is t%e key to understanding w%y Da&anese com&anies %a.e become successful< It is &recisely t%is dual internal and e9ternal acti.ity t%at fuels continuous inno.ation wit%in Da&anese com&anies< ontinuous inno.ation, in turn, leads to com&etiti.e ad.antage, as s%own below<
Da&anese com&anies, %owe.er, %a.e a .ery different understanding of knowledge< =%ey recogni5e t%at t%e knowledge e9&ressed in words and numbers re&resents only t%e ti& of t%e iceberg< =%ey .iew knowledge as being &rimarily GtacitH E somet%ing not easily .isible and e9&ressible< =acit knowledge is %ig%ly &ersonal and %ard to formali5e, making it difficult to communicate or to s%are wit% ot%ers< +ubKecti.e insig%ts, intuitions, and %unc%es fall into t%is category of knowledge< $urt%ermore, tacit knowledge is dee&ly rooted in an indi.idualAs action and e9&erience, as well as in t%e ideals, .alues, or emotions %e or s%e embraces< =o be more &recise, tacit knowledge can be segmented into two dimensions< =%e first is t%e tec%nical dimension, w%ic% encom&asses t%e kind of informal and %ard(to(down skills or crafts ca&tured in t%e term Gknow(%ow<H 3 master craftsman, for e9am&le, de.elo&s a wealt% of e9&ertise Gat %is fingerti&sH N o&yrig%t >irtual :ni.ersity of 7akistan "# Knowledge creation ontinuous inno.ation om&etiti.e ad.antageKnowledge Management EM!M=(/#0 >: after years of e9&erience< )ut %e is often unable to articulate t%e scientific or tec%nical &rinci&les be%ind w%at %e knows< 3t t%e same time, tacit knowledge contains an im&ortant cogniti.e dimension< It consists of sc%emata, mental models, beliefs, and &erce&tions so ingrained t%at we take t%em for granted< =%e cogniti.e dimension of tacit knowledge reflects our image of reality Bw%at isC and our .ision for t%e future Bw%at oug%t to beC< =%oug% t%ey cannot be articulated .ery easily, t%ese im&licit models s%a&e t%e way we &ercei.e t%e world around us< =%e distinction between e9&licit knowledge and tacit knowledge is t%e key to understanding t%e differences between t%e Western a&&roac% to knowledge and t%e Da&anese a&&roac% to knowledge< 19&licit knowledge can easily be G&rocessedH by a com&uter, transmitted electronically, or stored I databases< )ut t%e subKecti.e and intuiti.e nature of tacit knowledge makes it difficult to &rocess or transmit t%e acFuired knowledge in any systematic or logical manner< $or tacit knowledge to be communicated and s%ared wit%in t%e organi5ation, it %as to be con.erted into words or numbers t%at anyone can understand< It is &recisely during t%e time t%is con.ersion takes &lace E from tacit to e9&licit, and, as we s%all see, back again into tacit E t%at organi5ational knowledge is created< 3lt%oug% Western managers %a.e been more accustomed to dealing wit% e9&licit knowledge, t%e recognition of tacit knowledge and its im&ortance %as a number of crucially rele.ant im&lications< $irst, it gi.es rise to a w%ole different .iew of t%e organi5ation E not as mac%ine for &rocessing information but as a li.ing organism< Wit%in t%is conte9t, s%aring an understanding of w%at t%e com&any stands for, w%ere it is going, w%at kind of a world it wants to li.e in, and %ow to make t%at world a reality becomes muc% more crucial t%an &rocessing obKecti.e information< 0ig%ly subKecti.e insig%ts, intuitions, and %unc%es are an integral &art of knowledge< Knowledge also embraces ideals, .alues, and emotion as well as images and symbols< =%ese soft and Fualitati.e elements are crucial to an understanding of t%e Da&anese .iew of knowledge< =%e Da&anese %a.e come to reali5e t%at tacit knowledge cannot be easily communicated to ot%ers< 1.eryone in Da&an would agree t%at +%igeo Nagas%ima, nicknamed GMr< )aseballH in Da&an, is one of t%e greatest baseball &layers of all time< 0a.ing %ad t%e o&&ortunity of meeting %im in &erson, we asked %im w%y %e was so successful in rising to t%e occasion and %itting so many game(winning runs in tig%t moments< 0e used a lot of figurati.e language and body mo.ement, but couldnAt e9&lain e9actly w%at %e meant< 0is words were not .ery logical or systematic< In t%e end, Nagas%ima sim&ly said, GMou %a.e to feel it<H In fact, t%e most &owerful learning comes from direct e9&erience< 3 c%ild learns to eat, walk, and talk t%roug% trial and error6 s%e or %e learns wit% t%e body, not only wit% t%e mind< +imilarly, managers in Da&an em&%asi5e t%e im&ortance of learning from direct e9&erience as well as t%roug% trial and error< -ike a c%ild learning to eat, walk, and talk, t%ey learn wit% t%eir minds and bodies< =%is tradition of em&%asi5ing t%e oneness of body and mind %as been a uniFue feature of Da&anese t%inking since t%e establis%ment of [en )udd%ism< It stands in s%ar& contrast to t%e t%inking be%ind t%e Glearning organi5ation,H in &%rase t%at %as become a conce&tual catc% all of t%e new business organi5ation< 7eter +enge B1880C, t%e a&ostle of t%e learning organi5ation, utili5es Gsystems t%inkingH to s%ift t%e mind from seeing t%e &arts to seeing t%e w%ole< +ystems t%inking, according to +enge, is a conce&tual framework, a body of knowledge and tools t%at %as been de.elo&ed o.er t%e &ast *0 years in t%e West to %el& &eo&le see t%e full &attern more clearly< =%e focus of t%e learning organi5ation is clearly on learning wit% t%e mind, not wit% t%e body< +enge goes a ste& furt%er and says t%at trial(and(error learning is a delusion, since t%e most critical decisions made in an organi5ation %a.e system wide conseFuences stretc%ing o.er years and decades, a time frame t%at makes learning from direct e9&erience im&ossibility< =%e second im&lication of tacit knowledge follows naturally from t%e first< 4nce t%e im&ortance of tacit knowledge is reali5ed, t%en on begins to t%ink about inno.ation in a w%ole new way< It is not Kust about &utting to et%er di.erse bits of data and information< It is a %ig%ly indi.idual &rocess of &ersonal and organi5ational self(renewal< =%e &ersonal commitment of t%e em&loyees and t%eir identity wit% t%e com&any and its mission become indis&ensable< In t%is res&ect, t%e creation of new knowledge is as muc% about ideals as it is about ideas< 3nd t%at fact fuels inno.ation< =%e essence of inno.ation is to recreate t%e world according to a &articular ideal or .ision< =o create new knowledge means Fuite N o&yrig%t >irtual :ni.ersity of 7akistan "'Knowledge Management EM!M=(/#0 >: literally to re(create t%e com&any and e.eryone in it in an ongoing &rocess of &ersonal and organi5ational self renewal< It is not t%e res&onsibility of t%e selected few(a s&ecialist in researc% and de.elo&ment, strategic &lanning, or marketing E but t%at of e.eryone in t%e organi5ation< reating new knowledge is also not sim&ly a matter of learning from ot%ers or acFuiring knowledge from t%e outside< Knowledge %as to be built on its own, freFuently reFuiring intensi.e and laborious interaction among members of t%e organi5ation< New(&roduct de.elo&ment team members at anon, for e9am&le, %old Gcam& sessionsH at a local %otel o.er a weekend to brainstorm t%roug% a critical &roblem or issue< In t%is res&ect, t%e Da&anese a&&roac% is at .ariance wit% t%e GbestH and Gbenc%markingH &ractices carried out at com&anies like !1, 3=L=, and Rero9 t%at are bent on learning from ot%ers< =wo Dimensions of Knowledge reation 3lt%oug% muc% %as been written about t%e im&ortance of knowledge in management, little attention %as been &aid to %ow knowledge is created and %ow t%e knowledge(creation &rocess is managed< In t%is section we will de.elo& a framework in w%ic% traditional and nontraditional .iews of knowledge are integrated into t%e t%eory of organi5ational knowledge creation< 4ur basic framework of %uman knowledge contains two dimensions(e&istemological and ontological -et us start wit% t%e ontological dimension< In a strict sense, knowledge is created only by indi.iduals< 3n organi5ation cannot create knowledge wit%out indi.iduals< =%e organi5ation su&&orts creati.e indi.iduals or &ro.ides conte9ts for t%em to create knowledge< 4rgani5ational knowledge creation, t%erefore, s%ould be understood as a &rocess t%at ]organi5ationally] am&lifies t%e knowledge created by indi.iduals and crystalli5es it as a&art of t%e knowledge network of t%e organi5ation< =%is &rocess takes &lace wit%in an e9&anding ]community of interaction,] w%ic% crosses intra( and inter( organi5ational le.els and boundaries< 3s for t%e e&istemological dimension, we draw on Mic%ael 7olanyiOs B18//C distinction between tacit knowledge and e9&licit knowledge< =acit knowledge is &ersonal, conte9t(s&ecific, and t%erefore %ard to formali5e and communicate< 19&licit or ]codified] knowledge, on t%e ot%er %and, refers to knowledge t%at is transmittable in formal, systematic language 7olanyiOs argument on t%e im&ortance of tacit knowledge in %uman cognition may corres&ond to t%e central argument of !estalt &syc%ology , w%ic% %as asserted t%at &erce&tion is determined in terms of t%e way it is integrated into t%e o.erall &attern or !estalt< 0owe.er, w%ile !estalt &syc%ology stresses t%at all images are intrinsically integrated, 7olanyi contends t%at %uman beings acFuire knowledge by acti.ely creating and organi5ing t%eir own e9&eriences< =%us, knowledge t%at can be e9&ressed in words and numbers re&resents only t%e ti& of t%e iceberg of t%e entire body of knowledge< 3s 7olanyi B18//C &uts it, ]We can know more t%an we can tell] < In traditional e&istemology, knowledge deri.es from t%e se&aration of t%e subKect and t%e obKect of &erce&tion6 %uman beings as t%e subKect of &erce&tion acFuire knowledge by analy5ing e9ternal obKects< In contrast, 7olanyi contends t%at %uman beings create knowledge by in.ol.ing t%emsel.es wit% obKects, t%at is, t%roug% self(in.ol.ement and commitment, or w%at 7olanyi called ]indwelling<] =o know somet%ing is to create its image or &attern by tacitly integrating &articulars< In order to understand t%e &attern as a meaningful w%ole, it is necessary to integrate oneOs body wit% t%e &articulars< =%us indwelling breaks t%e traditional dic%otomies between mind and body, reason Oand emotion, subKect and obKect, and knower and known< =%erefore, scientific obKecti.ity is not a sole source of knowledge< Muc% of our knowledge is t%e fruit of our own &ur&oseful endea.ors in dealing wit% t%e world< W%ile 7olanyi argues t%e contents of tacit knowledge furt%er in a &%iloso&%ical conte9t, it is also &ossible to e9&and %is idea in a more &ractical direction< =acit knowledge includes cogniti.e and tec%nical elements< =%e cogniti.e elements center on w%at Do%nson(-aird B182#C calls ]mental models,] in w%ic% %uman beings create working models of t%e world by making and mani&ulating analogies in t%eir minds< Mental models, suc% as sc%emata, &aradigms, &ers&ecti.es, beliefs, and, .iew&oints, %el& indi.iduals to &ercei.e and define t%eir world< 4n t%e ot%er %and, t%e tec%nical element of tacit knowledge includes concrete know(%ow, crafts, and skills< It is im&ortant to note %ere t%at t%e cogniti.e elements of tacit knowledge refer to an indi.idualOs images of reality and .isions for t%e future, t%at is, ]w%at is] and ]w%at oug%t to be<] 3s will be discussed later, t%e articulation of tacit mental models, in a kind of ]mobili5ation] &rocess, is a key factor in creating new knowledge< N o&yrig%t >irtual :ni.ersity of 7akistan "*Knowledge Management EM!M=(/#0 >: Knowledge of e9&erience tends to be tacit, &%ysical, and subKecti.e, w%ile knowledge of rationality tends to be e9&licit, meta&%ysical, and obKecti.e< =acit knowledge is created ]%ere and now] in a s&ecific, &ractical conte9t and entails w%at )ateson B18"#C referred to as ]analog] Fuality< +%aring tacit knowledge between indi.iduals t%roug% communication is an analog &rocess t%at reFuires a kind of ]simultaneous &rocessing] of t%e com&le9ities of issues s%ared by t%e indi.iduals< 4n t%e ot%er %and, e9&licit knowledge is about &ast e.ents or obKects ]t%ere and t%en] and is oriented toward a conte9t( free t%eory< It is seFuentially created by w%at )ateson calls ]digital] acti.ity< Knowledge on.ersion;reation@ Interaction )etween =acit and 19&licit Knowledge Westerners tend to em&%asi5e e9&licit knowledge, t%e Da&anese tend to stress tacit knowledge< In our .iew, %owe.er, tacit knowledge and e9&licit knowledge are not totally se&arate but mutually com&lementary entities< =%ey interact wit% and interc%ange into eac% ot%er in t%e creati.e acti.ities of %uman beings< 4ur dynamic +1I model of knowledge creation is anc%ored to a critical assum&tion t%at %uman knowledge is created and e9&anded t%roug% social, interaction between tacit knowledge and e9&licit knowledge< We call t%is interaction ]knowledge con.ersion<] It s%ould be noted t%at t%is con.ersion is a ]social] &rocess between indi.iduals and not confined wit%in an indi.idual< 3ccording to t%e rationalist .iew, %uman cognition is a deducti.e &rocess of indi.iduals, but an indi.idual is ne.er isolated from social interaction w%en %e or s%e &ercei.es t%ings< =%us, t%roug% t%is ]social con.ersion] &rocess, tacit and e9&licit knowledge e9&and in terms of bot% Fuality and Fuantity BNonaka, 1880bC< N o&yrig%t >irtual :ni.ersity of 7akistan "/Knowledge Management EM!M=(/#0 >: -1++4N 1' DIM1N+I4N+ 4$ 3ND M:-=I7-1 >I1W+ 4$ KM IN 4R!3NI[3=I4N+ Knowledge %as become t%e &reeminent economic resource(more im&ortant <t%an raw material6 more im&ortant, often, t%an money, onsidered as an economic out&ut, Information and knowledge are more im&ortant t%an automobiles, oil, steel, or any of t%e &roducts of t%e industrial 3ge<, In todayOs Information 3ge economy, knowledge is increasingly regarded as t%e &reeminent contributor to .alue creation across industrial and ser.ice landsca&es< =%e collection of information %as always been of interest and .alue <to com&anies< 0owe.er, it is t%e emergence of tools t%at enable com&anies to manage and le.erage t%eir information and knowledge in meaningful ways t%at %as engendered re.olutionary c%ange in t%e way knowledge is regarded< :nfortunately, t%e ability to manage and le.erage knowledge %as led to a &roliferation of knowledge management a&&roac%es, measurement tools, initiati.es, definitions, and &rocedures< =%is &roliferation %as created confusion and in%ibits com&anies from reac%ing t%eir desired destination< Knowledge Management 4.er.iew om&anies in a wide .ariety of industries %a.e launc%ed knowledge management initiati.es< 3ccording to leading &ractitioner in t%e field t%e &otential im&act of knowledge management on t%e national and global economy is immense< International Data or&oration ^IDC belie.es t%at t%e market im&act of knowledge management will be analogous to t%at of t%e Internet< =%e firm makes t%e following &rimary &oints@ J Knowledge management will be a catalyst for many il1formationtec%nology BI=C &roduct and ser.ice markets< J Knowledge management will allow com&anies to establis% e9clusi.e market nic%es< J Knowledge management will be an integral en%ancement for many e9isting offerings< =%ere is agreement on some of t%e &rinci&al difficulties associated wit% designing and im&lementing knowledge management &ractices@ J ulture c%ange can be &ainful and e9ce&tionally slow< J In.estment in necessary tools can be tenuous, incremental< J Knowledge management is a %ig%(le.el solution sell< J 3 wall of confusion about knowledge measurement in%ibits growt%< =%is last &oint is &er%a&s t%e most daunting< Most &ractitioners of knowledge management assessments %a.e focused on Fualitati.e issues6 few %a.e em&loyed reliable measure merit tools or a&&lied rigorous Fuantitati.e analysis to t%e clientsO &rocesses< Regardless of t%e difficulties, com&anies are beginning to reali5e t%e e9traordinary benefits t%at can be gained from t%e im&lementation of knowledge management &ro( grams< $or e9am&le, automakers %rysler, $ord, and !eneral Motors all %a.e aggressi.e knowledge management initiati.es under way< 7etroleum and c%emical com&anies 3moco, Dow, and Monsanto are im&lementing knowledge management &ractices< om&anies as di.erse as %ealt% care com&any olumbia;03 0ealt%care or&< and clot%ing maker $ruit of t%e -oom, -td<, %a.e embraced t%e mo.ement< Knowledge management offers o&&ortunities for com&anies to@ J a&ture and analy5e cor&orate information and a&&ly it strategically in t%e form of data ware%ousing and data mining, decision su&&ort systems, and e9ecuti.e information systems< N o&yrig%t >irtual :ni.ersity of 7akistan ""Knowledge Management EM!M=(/#0 >: J reate &rocesses for worldwide access to information, enabling em&loyees to make faster, more informed, and better decisions t%roug% intranets, grou&ware, and grou& decision su&&ort systems< J -e.erage t%e accumulated knowledge of &ast e9&eriences across t%e com&any< <De.elo& and com&lete &roKects wit% im&ro.ed s&eed, agility, and safety< Knowledge Management 3nd >alue reation om&anies making t%e in.estment in knowledge management can reali5e %uge bottom line benefits< =%ose neglecting to do so can suffer tremendous costs in terms of lost re.enues, customers, and markets< onsider t%e significant tangible benefits reali5ed by t%e following com&anies@ J %e.ron reali5ed a P1"0 million annual sa.ings by &ooling and s%aring knowledge t%at %ad been scattered and locali5ed in .arious offices around t%e world< 4ne team sa.ed P<1*0 million by s%aring ways to reduce t%e use of electric &ower and fuel< 3not%er team sa.ed P20mi<11ionbycomådata on gas com&ressors< J Dow %emical increased its annual<1icensing re.enues by P100 million by strategically managing its &atents arid licenses< Knowledge Management Initiati.es 19ternal structure initiati.es Internal structure initiati.es om&etency initiati.es !ain knowledge from customers )uild knowledge(s%aring culture< reate careers based on knowledge management 4ffer customers additional knowledge reate new re.enues from e9isting knowledge a&ture indi.idualsA tacit knowledge, store it, s&read it, and reuse it< Measure knowledge(creating &rocesses and intangible assets< reate microen.ironments for tacit knowledge transfer< om&anies@ )enetton, !eneral 1lectric, National )icycle, Netsca&e, Rit5 arlton, 3gro or&<, $rito(lay, Dow %emical, +kandia, +teelcase om&anies6 #M, 3nalog De.ices, )oeing, )uckman -abs, %a&arral +teel, $ord Motor o<, 0ewlett(7ackard, %e.ron, )ritis% 7etroleum, =elia, elemi, +kandia om&anies@ )uckman -abs, I)M, 7fi5er, 0ewlett(7ackard, 0onda, Rero9, National =ec%nological :ni.ersity, Matsus%ita It is clear t%at knowledge management is emerging as t%e critical strategic acti.ity< :nfortunately, it is also clear t%at a consolidated a&&roac% to inter&reting, im&lementing, and a&&lying knowledge management &rinci&les %as yet to emerge< Knowledge management s%ould be seen as a remedy for earlier attem&ts at ]reengineering] rat%er t%an its latest .ersion< Knowledge managementOs focus on identifying and ma9imi5ing knowledge .alue creation stands in s%ar& contrast to t%e ]slas%(and( burn] tec%niFues associated wit% many reengineering strategies< Indeed, many of t%e reengineering efforts of com&anies %a.e led to downsi5ing efforts t%at %a.e actually cut %uge swat%s out of t%e knowledge base of t%ese com&anies< Many are now struggling to re&air t%e damage t%at resulted<
=%e +tate 4f Knowledge Management Researc% into knowledge management re.eals interesting anecdotal e.idence and .aried literature on current met%odologies, tec%niFues, tools, and case studies< J Numerous and conflicting definitions of knowledge management J Wide di.ersity of im&lementation strategies wit% many com&anies in dis&arate industries engaged in knowledge management initiati.es< J No com&re%ensi.e understanding of t%e best tec%niFues for designing and launc%ing knowledge management initiati.es< N o&yrig%t >irtual :ni.ersity of 7akistan "2Knowledge Management EM!M=(/#0 >: J >ery few detailed case studies of cor&orate e9&eriences Wit% knowledge management and know ledge ga&s< J Restricted access toinforn1ation on %ow com&anies %a.e resol.ed s&ecific &roblems6 t%is is &rimarily a.ailable at industry conferences on knowledge management< J 3d %oc and non(com&re%ensi.e discussion of t%e tec%niFues for measuring t%e .alue of knowledge management J :nclear links between knowledge asset utili5ation and financial results< !eneral confusion about t%e difference between information retrie.al and knowledge management< W%y is Knowledge Management Im&ortant?
Knowledge management is crucial because it &oints t%e way to com&re%ensi.e and clearly understandable management initiati.es and &rocedures< W%en com&anies fail to utili5e tangible assets, t%ey suffer t%e economic conseFuences, and t%is failure is clearly obser.able to markets and com&etitors alike< 3lt%oug% knowledge assets are %arder to Fuantify, t%ey are Kust as critical for t%e long(term sur.i.al and growt% of t%e com&any< We belie.e t%at success in todayOs com&etiti.e market&lace de&ends on t%e Fuality of knowledge and knowledge &rocesses t%ose organi5ations a&&ly to key business acti.ities< $or e9am&le, ma9imi5ing t%e efficiency of t%e su&&ly c%ain de&ends on a&&lying knowledge of di.erse areas suc% as raw materials sources, &lanning, manufacturing, and distribution< -ikewise, &roduct de.elo&ment reFuires knowledge of consumer reFuirements, recent scientific de.elo&ments and new tec%nologies, and marketing< De&loyment of t%e knowledge assets to create com&etiti.e ad.antage becomes e.en more crucial as@ J =%e market&lace becomes increasingly com&etiti.e and t%e rate of inno.ation continues to rise6 knowledge must e.ol.e and be assimilated at an e.er faster rate< J or&orations BreCorgani5es business units to create customer .alue, and staff and management functions are redirected< 3s a result, t%ere is a strong &us% to re&lace inforn1alstaff&olicies wit% formali5ed met%ods to align &rocesses wit% customers< J om&etiti.e &ressures reduce t%e si5e of t%e workforce t%at %olds cor&orate knowledge< =%ese &ressures include increased em&loyee mobility and early retirement, and t%ey all lead to a loss of cor&orate knowledge< J 1m&loyees %a.e less and less unstructured time in w%ic% to acFuire knowledge< J =ec%nologies increase com&le9ity by allowing small o&erating com&anies to link wit% su&&liers into transnational sourcing o&erations< Restructuring often results in c%anges in strategic direction and in t%e loss of knowledge in s&ecific functional areas< +ubseFuent re.ersals may create demand for t%e lost knowledge, but t%e essential em&loyees wit% t%at knowledge maybe long gone< 1ffecti.e knowledge management initiati.es can %el& eliminate t%e need for drastic restructurings as t%ey %el& com&anies e.ol.e wit% t%e c%anging economic en.ironment< =%ey can also %el& ca&ture knowledge assets t%at would ot%erwise be lost due to necessary restructurings, retirement, and de&arting em&loyees< =%is in turn can result in increased re.enues, increased customer satisfaction and loyalty, en%anced com&etiti.e standing, and t%e ability to res&ond easily to c%anging market conditions< In t%is sense, knowledge management is as critical for com&anies in t%e Information 3ge as t%e assembly line and &roduction management were in t%e Industrial 3ge< 7ractical 7rinci&les for Managing Knowledge =%eorists and &ractitioners alike are struggling to find a common set of &rinci&les to a&&ly in successfully managing knowledge< 7rinci&les %a.e been categori5ed according to %ow to create, collaborate, disseminate, reuse, embed, store, monitor, and measure knowledge to meet a .ariety of organi5ational goals< =%e &rinci&les %a.e been deri.ed from &ractice, t%eory, and .arious combinations of t%e two< =%e following list is by no means e9%austi.e or generally agreed u&on< 0owe.er, t%e &rinci&les &ro.ide basic guidance for t%ose attem&ting to de.elo& new ways of managing knowledge assets< ustomer N o&yrig%t >irtual :ni.ersity of 7akistan "8Knowledge Management EM!M=(/#0 >: knowledge, de&loying knowledge in information tec%nology, and monitoring and measuring knowledge assets are t%e &laces w%ere knowledge management &rinci&les can be &ractically a&&lied< ustomer Knowledge =%e first set of &rinci&les aims to lower transaction costs, increase t%e .olume of transactions, and im&ro.e customer satisfac1ion< =%ese outcomes are accom&lis%ed by embedding customer knowledge and fail(safeing t%e transaction &rocess< 1< Identify t%e knowledge t%at customers really .alue and make sure it is de&loyed in &roducts, ser.ices, and self(ser.ice o&&ortunities< $ollowing t%is &rinci&le would lead t%e manager to ask %ow muc% knowledge a customer em&loys in com&leting a transaction wit% t%e com&any< $or e9am&le, an ]e(tailer] suc% as e=oys %as created a transaction &rocess w%ere t%e customer .isits t%eir web site and uses t%e com&any Web interface obtain a desired toy, seek suggestions, find out w%at ot%ers %a.e &urc%ased, or to re.iew t%e com&anyOs toy in.entory< )y .isiting t%e com&any website, t%e customer becomes a&art of t%e transaction &rocess by acti.ating t%e knowledge embedded ill com&any sales, order, &ro.isioning, and &roduction software< =%e customer(acti.ated knowledge costs t%e com&any ne9t to not%ing, as1ongas t%e site is well designed< osts are incurred only if t%e site interface is so bad t%at customers make errors reFuiring %uman inter.ention in t%e form of call center su&&ort, rework wit% su&&liers, system failures, or bad debt collection< 3 site wit% a robust tec%nology &lat form also allows a .ery large number of customers to com&lete transactions at t%e same time< =%e benefits of %a.ing customers acti.ate transaction &rocess knowledge, cost sa.ings, and <.irtually unlimited transaction ca&acity are &ossible only w%en t%e customer interlace &re.ents t%em from making errors and is so a&&ealing to t%e customer t%at customers will return time and time again< =o &re.ent customer induced errors, com&any interfaces must facilitate customersO self(ser.ice wit%out generating errors< 4ne met%od is to use t%e notion of ]e(7oke( Moke<] =%e conce&t of mistake( &roofing or 7oke( Moke originated in Da&anese manufacturing &ractice, and Dick %ase ada&ted t%e &rinci&les and &ractices for t%e ser.ice sector< ]Mistake(&roofing is a &owerful and com&re%ensi.e met%od for eliminating mistakes and defects, ensuring Fuality &roducts and ser.ices6] Many e(tailer com&any interfaces are neit%er knowledge intensi.e nor customer enticing< =%ey force t%e customer to use t%e same amount of knowledge reFuired for a standard transaction wit% a brick( and( mortar retailer< 0owe.er, su&erior interfaces t%at embed customer knowledge wit%in t%e transaction &rocess on a &ersonali5ed basis can 1ead to faster and more satisfying transactions< !i.e t%e sad( state of sales and customer su&&ort at many traditional retailers, t%e e(tailers %a.e an o&&ortunity to &ro.ide su&erior ser.ice< 3&&lying t%e customer(knowledge(embedding &rinci&le reFuires interfaces t%at make ma9imum use of customer knowledge in com&leting t%e transaction &rocess< +e.eral &oints to consider in designing a su&erior customer interface include@ J =%e time an a.erage customer is willing to s&end acti.ating transaction knowledge< J =%e amount of knowledge a customer will em&loy before losing interest< J 0ow muc% .alue is added eac% time t%ey e9ecute knowledge< =%e goal %ere is to find t%e o&timal u&&er and lower limits wit%in t%ese constraints and de.elo& an interface t%at@ J Reduces t%e time a customer needs to com&lete t%e transaction &rocess< J Reuses a customerOs knowledge by embedding it in t%e transaction &rocess< J 1nsures t%at .alued <is added for t%e customer eac% time t%ey e9ecute knowledge in t%e transaction &rocess< N o&yrig%t >irtual :ni.ersity of 7akistan 20Knowledge Management EM!M=(/#0 >: +uccessful embedding of customer knowledge in more &ersonali5ed interfaces will reduce t%e time reFuired to com&lete t%e transaction &rocess< =%e ongoing acFuisition and embedding of customer knowledge will also create a ]learning] interface1%atwill continually be &ersonali5ed for eac% customer< 3 furt%er ste& ill &ro.iding customer .alue occurs w%en customers can com&are t%eir transaction be%a.ior to t%at of ot%ers< =%ese o&&ortunities for social com&arison meet customersO needs for re.iewing t%eir decisions, gaining su&&ort for t%eir decisions, seeking ad.ice, and maintaining inclusion in t%eir &ercei.ed social grou&s< =%e social com&arison is facilitated by t%e use of collaborati.e filters, w%ic% com( &are user in&ut wit% t%at of ot%er users< $or e9am&le, mo.ie ratings and D &urc%ases can be tabulated to generate com&osite scores and recommend &urc%ases of &o&ular items@ suc% decision(su&&ort ca&abilities built into com&any interfaces increases t%eir &ercei.ed .alue for customers<
7ersonali5ed knowledge may be obtained from customers during t%eir introductions to t%e interface by@ J 7ro.iding some ty&e of financial incenti.es, suc% as lower &rices or discounts< J :sing Web(based client(ser.er tec%nologies to track browser be%a.ior< =%e benefits of incor&orating customer knowledge .ia t%e com&any interface are many@ J ustomer &erce&tion of more control o.er t%e transaction &rocess< J loser bonding wit% customers< J -ower com&any transaction costs< J !reater .olume of transactions &er time &eriod< 3&&ealing interfaces em&ower customers to do as muc% self(ser.ice as &ossible< =%e key to success is building interfaces, electronic and %uman, t%at de&loy as muc% knowledge as customers need and want, to make t%e transaction &rocess satisfying< 2< Make sure t%e customer &roduct descri&tion and com&any descri&tion are as close as &ossible< ustomers e9&ect t%at &roducts and ser.ices will matc% t%eir descri&tions< Know based descri&tions can be used to ensure t%at t%ey are deli.ered as s&ecified< =%e knowledge reFuired to &roduce t%e &roduct or ser.ice can be used to ensure t%at customer &ro.iders %a.e t%e same &roduct descri&tion< =%is is es&ecially true for business(to(business transactions@ 4utsourcing decisions are common, and decisions are &redicated on t%e belief t%at t%e outsourced ser.ice li.ered as s&ecified< +imilarly, customers use lists of ingredients, fat content, and calories &er ser.ing, certifications, and so fort% as guides for belie.ing t%at t%ey are getting a food &roduct as s&ecified< )rand names often ser.e as a surrogate for &roducts and ser.ices t%at %e customerOs e9&ectations and t%e knowledge reFuired to make t%em< 4.er time, customers %a.e become more discerning and look for more t%an brand names< $or e9am&le, &roducts and ser.ices t%at are assumed to be of %ig% Fuality customer e9&ectations for &erformance o.er time< !i.en t%at it takes more edge to build a %ig%(Fuality t%an a low(Fuality &roduct or ser.ice, t%ere s%ould be a difference in t%e descri&tion of eac%< om&anies can use t%is &rinci&le to guide t%eir ad.ertising, reFuirements for outsourcers, and &roduction &rocesses to ensure t%e knowledge reFuired to &roduce a %ig%(Fuality &roduct;ser.ice %as actually been a&&lied< !etting tec%nology to do t%e work of %umans %as been t%e 0oly !rail of t%e Information 3ge< Deciding w%at %uman work to mo.e to information tec%nology %as been debated since t%e introduction of com&uters in t%e early 18*0s< We belie.e t%e essence of t%e &roblem is deciding w%at %uman knowledge to de&loy in information tec%nology BI=C< In general t%e more com&le9 t%e knowledge is, t%e %arder it is to de&loy in I=< Mo.ing knowledge assets to I= offers a %ost of ad.antages if two basic &rinci&les are followed< 1< Mo.e sim&le, &rocedural knowledge t%at is em&loyed freFuently to I=< N o&yrig%t >irtual :ni.ersity of 7akistan 21Knowledge Management EM!M=(/#0 >: =%e focus of early automation efforts followed t%is &rinci&le as com&anies de.elo&ed file( &rocessing systems to do muc% of t%e tedious work in accounting, billing, and basic manufacturing< +ince t%is knowledge is em&loyed freFuently and follows .ery s&ecific, well(defined rules, mo.ing it to I= allowed com&anies to dramatically lower t%e cost &eruse of t%e know ledge< I= systems %a.e ad.anced o.er time, making it easier to embed &rocedural knowledge t%at is acti.ated freFuently< =%e latest attem&t to follow t%is &rinci&le can be found in enter&rise resource &lanning B1R7C software from com&anies suc% as +37, 7eo&le( +oft, )aan, DD 1dwards, and 4racle< =%ese systems %a.e succeeded largely w%ere t%ey %a.e stuck to t%is &rinci&le< =%ey %a.e fallen down w%ere t%ey %a.e attem&ted1o tackle more com&le9 knowledge or knowledge t%at is used infreFuently< $or e9am&le, attem&ts to use an 1R7 system at 0ewlett(7ackard -abs failed largely because t%e system attem&ted to embed engineering knowledge<2 +e.eral studies on No.a or&oration and )74 found t%at attem&ts to automate sim&le knowledge t%at was used infreFuently resulted in costs t%at far e9ceeded t%ose of lea.ing t%e knowledge in%uman o&eratorsO %eads and %ands< 2< a&ture and embed knowledge in I= t%at is .olatile and mig%t be lost w%en em&loyees lea.e t%e com&any< W%en em&loyees lea.e a com&any, t%ey often take wit% t%em knowledge t%at is critical to continued smoot% o&erations< It may not be &ossible to always ca&ture com&le9 are at t%e mercy of t%eir tec%nical em&loyees w%ose %eads contain t%e kind of com&le9 knowledge necessary to build and grow a tec%nical &latform t%at will allow t%e com&any to ra&idly e9&and< In one case, <t%e business de.elo&ment e9ecuti.e of an Internet start(u& com&any described %is strategy for dealing wit% t%is issue as ]a knowledge redundancy strategy@ <two key1ec%nical em&loyees for e.ery key tec%nical Kob<] 0is com&any %ired two em&loyees for e.ery area w%ere critical tec%nical knowledge was reFuired, !i.en .enture ca&italistsO demands for nearly immediate and continued growt%, tec%nical failure was not allowable< =%is is a rational a&&roac% because suc% com&le9 knowledge is not ill ready su&&ly in t%e em&loyment market&lace and is nearly im&ossible to embed in I=< 0owe.er, t%e management reali5ed t%at its long(term sustainability de&ends on ca&turing and embedding critical tec%nical knowledge in less .olatile forms suc% as I= and is currently mo.ing to do so< =%e field of artificial intelligence su&&orts t%is general &rinci&le and %as s&awned e9&ert systems and neural networks< Many of t%e earliest commercial attem&ts to embed com&le9 knowledge in I= systems were based on w%at would be lost w%en ]e9&erts] in well(defined areas retired or left t%e com&any< Neural networks use an inducti.e a&&roac%, learning from t%e &atterns t%at e.ol.e from t%e be%a.iors of Fuasi( animate obKects suc% as electronic ant colonies< !rou&ware systems %a.e attem&ted to ca&ture critical com&le9 knowledge assets so t%at t%ey can be inde9ed and reused by ot%ers in a com&any<< Many of t%e large consulting firms suc% as 3rt%ur 3ndersen and 1rnst L Moung use grou&ware systems like -otus Notes for Kust t%is &ur&ose< 1rnst LMoung %as a system named 1rnie t%at allows clients to ]ask 1rnie] w%en t%ey confront &roblems in.ol.ing relati.ely com&le9 consulting knowledge, be used for a .ariety of s&ecific tasks< 3 .ariety of suc% agents embed knowledge used to meet s&ecific goals and are re.iewed in %a&ter 3s information tec%nology ad.ances allow for greater embedding oBcom&le9 %uman knowledge, t%ey will &ro.ide a way to ca&ture and reuse critical em&loyee knowledge< 0owe.er, until someone disco.ers t%e algorit%m for creati.ity, it is unlikely t%at all em&loyee knowledge will be amenable to embedding in I=< Monitoring and Measuring Knowledge =%e basic goal for monitoring knowledge is to determine6 %ow well it is &roducing .alue in cor&orate &rocesses< =%is reFuires following t%e use of knowledge t%roug%out an 4rgani5ationOs core &rocesses and its interactions wit% t%e market&lace< 3s an organi5ation interacts wit% its customers and com&etitors, it can learn w%at works and doesnOt work< It learns from its customers w%at &roducts and ser.ices are .alued because customers are willing to &ay for t%em< It also learns t%at its com&etitors are not far be%ind< =%is learning must be transformed into actionable acti.ities wit%in core &rocesses to de.elo& and &roduce e.ermore a&&ealing &roducts and ser.ices< =%e rate at w%ic% t%is knowledge can N o&yrig%t >irtual :ni.ersity of 7akistan 22Knowledge Management EM!M=(/#0 >: be transformed into cor&orate core &rocess knowledge will determine %ow Fuickly .alue is created t%roug% t%e offering of new &roducts and ser.ices<
1< 3ccelerate t%e learning(knowledge(.alue cycle t%roug% monitoring of t%e transformation &rocess< +elf(organi5ing a&&roac%, w%ic% differs from Industrial 3ge command(and(control a&&roac%es Interfaces can be used to elicit direct comment from customers about com&any &roducts and ser.ices< Running tallies of sales and customer comments can be mined to inter&ret res&onses from t%e market&lace< =%ese acti.ities usually su&&ort e.olutionary de.elo&ments< Researc% and de.elo&ment efforts to create ]truly new] &roducts and ser.ices reFuire more com&le9 analysis and synt%esis of market res&onses to com&any offerings< =ransforming t%ese learnings into core &rocess knowledge must also be monitored< $ortunately, t%ere is software a.ailable to monitor an enter&rise and %ow well it transforms learnings into core &rocess &erformance Bsee, for e9am&le, 1nter&rise +trategist and t%e monitoring(learning tool suite from Intelligent +ystems =ec%nology, Inc<C< =%ese software suites allow management to determine %ow muc% .alue new knowledge &roduces w%en embedded in core &rocesses< =%is knowledge monitoring &rinci&le reFuires cor&orate management to go beyond t%e traditional .iew of ]build it and t%ey will come<] Management must accelerate t%e &ace at w%ic% t%ey embed critical market&lace learnings wit%in t%eir core &rocesses< 3nd, t%ey must go a ste& furt%er and determine w%at .alue t%e introduction of t%is new knowledge &roduces< If embedding does not &roduce good return on t%e new knowledge, t%en management %as done a &oor Kob of synt%esi5ing learnings from <t%e market&lace or t%e market&lace %as c%anged, making t%e new embedded knowledge less .aluable<] onducting acknowledge(ga& assessment aids management in determining t%e ga&s in know ledge necessary for current o&erations< =%e assessment can identify know ledge assets t%at will be reFuired to &roduce future .alue< ombining t%e conce&ts of sense, monitor and res&ond wit% a knowledge( ga& assessment will %el& management identify t%e most &romising knowledge for embedding in core &rocesses< 2< Identify e9isting and future knowledge ga&s< Monitoring t%e learning(knowledge(.alue cycle will re.eal ga&s ]in current &erformance< 7lanning for future &roducts and ser.ices will re.eal ga&s in knowledge reFuired to &roduce t%ese future &roducts and ser.ices< or&orations must draw on t%e ]knowledge market &lace] to fill its current and future ga&s< =%e first ste& is to identify t%ese ga&s in t%e cor&orate knowledge &ortfolio, and t%e knowledge(ga& assessment is a &owerful met%od for identifying t%e ga&s< J )egin wit% a definition or ma&&ing of core &rocesses interns of t%e knowledge reFuired to conduct normal o&erations< J Make a list of t%e knowledge &otential not currently in use wit%in t%e core &rocesses< J Make a list of t%e knowledge no longer necessary to successfully generate t%e out&uts< J -ist t%e kinds of knowledge t%e com&any will need in t%e future to meet its long(and s%ort( term goals< J om&are t%e current knowledge assets de&loyed in t%e &rocesses and identify t%e ga&s between t%is and t%e unta&&ed knowledge &otential currently a.ailable and future knowledge reFuired to meet new market demands< =%is sim&le ga& analysis moti.ates managers to recogni5e t%e unta&&ed intellectual ca&ital residing in t%eir em&loyees as well as t%e contributions of e9isting information tec%nology< =%e results &ro.ide a framework for de.elo&ing t%e reFuirements for u&grades or re&1acements< 1n%ancing, maintaining, and acFuiring knowledge assets to fill knowledge ga&s is one of managementOs most significant duties< =%e basic ste&s to follow in filling and maintaining knowledge assets are@ N o&yrig%t >irtual :ni.ersity of 7akistan 2#Knowledge Management EM!M=(/#0 >: J -ist t%e met%ods to maintain t%e current le.el of knowledge assets de&loyed< < J -ist t%e met%ods to remo.e t%e know ledge t%at is no longer needed< J -ist t%e met%ods to narrow or remo.e t%e ga&s in knowledge needed and knowledge assets currently a.ailable< J -ist current strategies for knowledge maintenance and acFuisition t%roug% %iring, training, outsourcing, information systems, and work rules< $illing knowledge ga&s and maintaining current .aluable knowledge assets can in.ol.e t%e com&anyOs information systems, %uman resources, and strategy areas, as well as t%e s&ecific core &rocess owners affected< 3s wit% any &ortfolio decision, t%ere are multi&le interde&endent outcomes< $or e9am&le, embedding critical knowledge in I= in an u&stream &rocess may &roduce bottlenecks in downstream &rocesses t%at %a.e not been u&graded< =%ese interde&endencies can be e9amined wit% work( flow software before making final decisions reFuiring significant in.estment< #< Identify t%e best &ractices for embedding knowledge in I=, &eo&le, and &rocesses< )est &ractices ill knowledge management %a.e been benc%marked by t%e 3merican 7roducti.ity and Iuality enter and at 3rt%ur 3ndersen and are a.ailable in .arious forms from bot% organi5ations< '< Measure t%e .alue(added by knowledge to create an internal market&lace< =%is &rinci&le can be followed best by creating a sim&le accounting system to monitor knowledge utili5ation< =%e knowledge accounting system s%ould allow managers to establis% a &rice and cost &er unit of knowledge< =%e &rice and cost must be tied directly to com&aniesO normal financial &erformance measures suc% as R4I, cas% flow, and earnings &er s%are< =%is &rinci&le &ro.ides management wit% feedback about %ow well t%ey are managing t%e learning knowledge(.alue cycle< 7ro.iding &rice and cost &er unit of knowledge will lead to new &erformance ratios suc% as J Knowledge in use com&ared to knowledge in in.entory< J =otal knowledge com&ared to amount reused< J Knowledge in &eo&le com&ared to knowledge in I=< +uc% measurement systems, w%en ado&ted by t%e accounting community, will lead to better &rotections for in.estors in com&anies wit% large market ca&itali5ation based on intangible assets contained in intellectual ca&ital< Iuestions $or Re.iew 1< W%y is knowledge management e9&ected to %a.e suc% a significant im&act on business? Do you agree or disagree wit% t%e book on t%is issue? W%y? 2< W%at is missing from t%e knowledge management initiati.es to make t%em successful in t%e Internet market&lace? #< W%at are some of t%e general guidelines for de.elo&ing a knowledge management strategy? '< W%at is dri.ing t%e need for suc% a strategy? *< 0ow s%ould t%e relations%i& between customer and transaction knowledge guide t%e de.elo&ment of a knowledge management strategy? /< W%at are some general &rinci&les for mo.ing knowledge into information tec%nology? "< 0ow can you Kustify mo.ing t%e knowledge to information tec%nology? 2< W%at are t%e benefits of monitoring and measuring knowledge usage? +=:DM@ =%e Distance -earning ase =aken toget%er, &ublic and &ri.ate colleges and uni.ersities in t%e :nited +tates com&rise a P200 billion industry w%ere knowledge is for sale< =%roug%out t%e 20t% century, t%ese institutions %ad difficulty ac%ie.ing economies of scale< =%e number of students ser.ed by an indi.idual faculty member across sc%ool a.eraged 20(to(1 &er class taug%t, a ratio enforced by si5e limitations of classrooms, faculty resistance to grading larger numbers of tests and &a&ers, and t%e desire for smaller classes and indi.iduation of learning on t%e &art of students and &arents< N o&yrig%t >irtual :ni.ersity of 7akistan 2'Knowledge Management EM!M=(/#0 >: =o ac%ie.e com&etiti.e ad.antage, institutions &ursued .arious strategies, including %iring famous faculty as an inducement for student enrollment, &ouring resources into %ig%(interest fields Be<g<, com&uter scienceC and canceling low(interest &rograms Be<g<, -atinC, sc%eduling classes at times and &laces conduci.e to student life, farming(alumni resources more assiduously, and ma9imi5ing college name recognition and re&utation t%roug% nationally ranked s&orts teams< Due to t%e &er.asi.e tenure system, most colleges and uni.ersities do not %a.e t%e o&tion of ]rig%t( si5ing] by firing e9&ensi.e senior faculty to %ire ine9&ensi.e Kunior faculty, e.en t%oug% t%is alternati.e would yield e9traordinary sa.ings in institutional ! &er student educated< It %as occurred 10 suc% sc%ools t%at t%e only &ractical way to significantly increase t%e &er student load of eac% faculty] member Band t%ereby increase system &roducti.ityC was to broad cast t%e image, .oice, and learning materials of t%e instructor to a broader audience< 1nter distance learning< Wit% t%e combined tec%nologies of t%e Internet, e(mail, and .ideo teleconferencing, educational institutions are able to enroll e9&onentially more students at %ome or at remote sites wit%out increasing t%e number of faculty members em&loyed or t%eir salaries< 3dditional grading res&onsibilities in.ol.ed in distance learning can be delegated to graduate teac%ing assistants working at not muc% abo.e minimum wage< $amous and &o&ular faculty members can be gi.en large electronic audiences, t%ereby ma9imi5ing t%eir influence on be%alf of t%e institution< -ess successful teac%ers could be confined to traditional face(to(face instruction, t%ereby minimi5ing t%eir im&act on t%e re&utation and welfare of t%e institution< =%is case asks you to e9tra&olate t%e im&lications of distance learning for t%e design and workings of colleges and uni.ersities of t%e future< 3s knowledge is managed in %ew ways, dramatic c%anges may be in store for t%ese institutions< In your s&eculations, consider t%e following6 J 7%ysical reFuirements of t%e new ]cam&us<] J Instructor Fualifications, including &re&aration for distance learning< J >iability of traditional ]courses,] ]maKors,] and ]degrees<] J Interacti.e .ersus ]canned] instruction< BWould you &refer to learn from 7rofessor R interacti.ely or from 1instein .ia .ideota&e?C J =%e loss of un(measurable w%en t%e traditional face(to(face classroom is su&erseded electronically< J om&ensation and career &at%s for faculty< BWill researc% be of less im&ortance as a faculty member more and more &lays1%e role of anc%or &erson or mout%&iece in distance learning?C J -inks wit% or mergers wit% cor&orations< BWill;s%ould cor&orate uni.ersities swallow u& &ublic and &ri.ate institutions?C J Is distance learning more a&&ro&riate for some subKects t%an ot%ers? $or some ty&es of students? 3ttem&t to draw toget%er your s&eculations into a design for future knowledge management useful for &resent institutions of %ig%er learning< N o&yrig%t >irtual :ni.ersity of 7akistan 2*Knowledge Management EM!M=(/#0 >: -1++4N 1* 04W KM IM73=+ 4R!3NI[3=I4N+? 1< )riefly enumerate t%e ways in w%ic% KM can im&act an organi5ation< Knowledge management can im&act organi5ations in .arious ways and at se.eral le.els by way of &eo&le, &rocesses, &roducts and o.erall organi5ational &erformance< 3t all of t%ese le.els, Knowledge management affects organi5ations in two ways@ 1< Knowledge management can %el& create knowledge, w%ic% can t%en contribute to im&ro.ed &erformance of organi5ations along t%ese four le.els< 2< Knowledge management can directly cause im&ro.ements along t%ese four le.els< -et us now briefly consider eac% of t%e le.els discussed abo.e@ Im&act on 7eo&le@ KM can facilitate learning t%roug%out t%e organi5ation, w%ic% allows t%e organi5ation to be constantly growing and c%anging in res&onse to t%e market and t%e tec%nology, and causes t%e em&loyees to become more fle9ible, and en%ances t%eir Kob satisfaction< Im&act on 7rocesses@ Knowledge management also enables im&ro.ements in organi5ational &rocesses suc% as marketing, manufacturing, accounting, engineering, &ublic relations, etc< =%ese im&acts can be seen along t%ree maKor dimensions@ effecti.eness, efficiency, and degree of inno.ation of t%e &rocesses< Im&act on 7roducts@ Knowledge management also im&acts t%e organi5ationAs &roducts< =%ese im&acts can be seen in two res&ects@ .alue(added &roducts and knowledge(based &roducts< Im&act on 4rgani5ational 7erformance@ In addition to &otentially im&acting &eo&le, &roducts, and &rocesses, KM may also affect t%e o.erall &erformance of t%e organi5ation, eit%er directly or indirectly< 2< +tate t%e im&ortance of KM wit% s&ecific reference to its im&act on em&loyee ada&tability and Kob satisfaction< Knowledge management &lays an im&ortant role in em&loyee ada&tability and Kob satisfaction< -et us see %ow@ 4n 1m&loyee 3da&tability@ Knowledge management &rocess at an organi5ation encourages its em&loyees to continually learn from eac% ot%er, and t%ey are likely to &ossess t%e information and knowledge needed to ada&t w%ene.er organi5ational circumstances so reFuire< W%en em&loyees are aware of ongoing and &otential future c%anges, t%ey are less likely to be caug%t by sur&rise< 3wareness of new ideas and in.ol.ement in free flowing discussions not only &re&are t%em to res&ond to c%anges, but also make t%em more likely to acce&t c%ange< =%us, KM tends to facilitate greater ada&tability among em&loyees< 4n Dob +atisfaction@ =wo benefits of KM t%at accrue directly to indi.idual em&loyees are BaC t%ey are able to learn better t%an em&loyees in firms t%at are lacking in KM, and BbC t%ey are better &re&ared for c%ange< =%ese im&acts cause t%e em&loyees to feel better because of t%e knowledge acFuisition and skill en%ancement, and also en%ance t%eir market .alue relati.e to ot%er organi5ationsA em&loyees< Knowledge management also &ro.ides em&loyees wit% solutions to &roblems t%ey face in case t%ose same &roblems %a.e been encountered earlier, and effecti.ely addressed< =%is %el&s to kee& em&loyees moti.ated, for a successful em&loyee would be %ig%ly moti.ated, w%ile an em&loyee facing &roblems in &erforming %is Kob is likely to be demoti.ated< In conclusion, as a result of t%eir increased knowledge, im&ro.ed market .alue, and greater on(t%e(Kob &erformance, KM facilitates em&loyeesA Kob satisfaction< N o&yrig%t >irtual :ni.ersity of 7akistan 2/Knowledge Management EM!M=(/#0 >: #< 19&lain w%y &oor KM reduces t%e effecti.eness of organi5ational &rocesses< 1ffecti.eness is &erforming t%e most suitable &rocesses and making t%e best &ossible decisions< 7oor KM can result in mistakes by t%e organi5ation because t%ey risk re&eating &ast mistakes or not foreseeing ot%erwise ob.ious &roblems< 4rgani5ations lacking in KM find it difficult to maintain &rocess effecti.eness w%en faced wit% turno.er of e9&erienced and new em&loyees< In contrast, a good knowledge management system can enable organi5ations to become more effecti.e by %el&ing t%em to select and &erform t%e most a&&ro&riate &rocesses< 1ffecti.e KM enables t%e organi5ationAs members to collect information needed to monitor e9ternal e.ents< =%is results in fewer sur&rises for t%e leaders of t%e organi5ation, and conseFuently reduces t%e need to modify &lans and settle for less effecti.e a&&roac%es< $urt%er, knowledge management enables organi5ations to Fuickly ada&t t%eir &rocesses according to t%e current circumstances, t%ereby maintaining &rocess effecti.eness in c%anging times< '< W%at t%ree dimensions are rele.ant for e9amining t%e im&act of KM on business &rocesses? Knowledge management is an im&ortant factor to t%e effecti.eness of organi5ational &rocesses suc% as marketing, manufacturing, accounting, engineering, &ublic relations, etc< =%e im&act of KM can be seen along t%ree maKor dimensions@ effecti.eness, efficiency, and degree of inno.ation of t%e &rocesses< 1ffecti.eness is &erforming t%e most suitable &rocesses and making t%e best &ossible decisions< 1fficiency is &erforming t%e &rocesses Fuickly and in a low(cost fas%ion< Inno.ation is &erforming t%e &rocesses in a creati.e and no.el fas%ion t%at im&ro.es effecti.eness and efficiency< *< +tate reasons %ow KM %el&s im&ro.e &rocess effecti.eness, efficiency, and inno.ation< 7rocess 1ffecti.eness@ 7oor KM can result in mistakes by t%e organi5ation because t%ey risk re&eating &ast mistakes or not foreseeing ot%erwise ob.ious &roblems< 4rgani5ations lacking in KM find it difficult to maintain &rocess effecti.eness w%en faced wit% turno.er of e9&erienced and new em&loyees< In contrast, a good knowledge management system can enable organi5ations to become more effecti.e by %el&ing t%em to select and &erform t%e most a&&ro&riate &rocesses< 1ffecti.e KM enables t%e organi5ationAs members to collect information needed to monitor e9ternal e.ents< =%is results in fewer sur&rises for t%e leaders of t%e organi5ation, and conseFuently reduces t%e need to modify &lans and settle for less effecti.e a&&roac%es< $urt%er, knowledge management enables organi5ations to Fuickly ada&t t%eir &rocesses according to t%e current circumstances, t%ereby maintaining &rocess effecti.eness in c%anging times< 7rocess 1fficiency@ KM can also enable organi5ations to be more &roducti.e and efficient< =%e ability to effecti.ely create and manage network(le.el knowledge s%aring &rocesses,results in &roducti.ity ad.antages enKoyed by t%e organi5ation< 7rocess Inno.ation@ 4rgani5ations increasingly rely on knowledge s%ared across indi.iduals to &roduce inno.ati.e solutions to &roblems as well as to de.elo& more inno.ati.e organi5ational &rocesses< Knowledge management %as been found to enable riskier brainstorming and t%ereby en%ance &rocess inno.ation< /< Describe %ow KM can contribute to an organi5ationAs &roducts< Knowledge management can im&act t%e organi5ationAs &roducts in two res&ects@ .alue( added &roducts and knowledge(based &roducts< Im&act on >alue(3dded 7roducts@ Wit% t%e aid of KM &rocesses, organi5ations can offer new &roducts or im&ro.ed &roducts t%at &ro.ide a significant additional .alue as com&ared to earlier &roducts< $urt%er, .alue(added &roducts also benefit from KM due to t%e effect t%e latter %as on organi5ational &rocess inno.ation< Im&act on Knowledge()ased 7roducts@ Knowledge(based &roducts, suc% as in consulting or software de.elo&ment industries, can also benefit from knowledge management< :sing KM, N o&yrig%t >irtual :ni.ersity of 7akistan 2"Knowledge Management EM!M=(/#0 >: consulting firms can Fuickly access and combine t%e best a.ailable knowledge and bid on &ro&osals t%at would ot%erwise be too costly or too time consuming to &ut toget%er< In suc% industries, KM is necessary for mere sur.i.al< 0owe.er, knowledge(based &roducts can also sometimes &lay an im&ortant role in traditional manufacturing firms< $or e9am&le, in order to design an automated mac%ine to s&in yarn, t%e organi5ation will %a.e to obser.e an e9&ert %and(s&inner to learn %ow t%e &rocess takes &lace in order to gi.e t%e mac%ine &ro&er functionality< "< 0ow can we assess t%e direct im&act of KM on organi5ational &erformance? Knowledge management affects t%e o.erall &erformance of t%e organi5ation< Knowledge management can im&act o.erall organi5ational &erformance eit%er directly or indirectly@ Direct im&act on organi5ational &erformance occurs w%en knowledge is used to create inno.ati.e &roducts t%at generate re.enue and &rofit, or w%en t%e KM strategy is aligned wit% business strategy< +uc% a direct im&act concerns re.enues and;or costs, and can be e9&licitly linked to t%e organi5ationAs .ision or strategy< onseFuently, measuring direct im&act is relati.ely straig%tforward< It can be obser.ed in terms of im&ro.ements in return on in.estment< :nlike indirect im&acts on organi5ational &erformance, direct im&acts can be associated wit% transactions and, t%erefore, are easily measured<
2< Describe t%e ways in w%ic% t%e indirect im&acts of KM in an organi5ation may be obser.ed< Indirect Im&act on 4rgani5ational 7erformance ( comes about t%roug% acti.ities t%at are not directly linked to t%e organi5ationAs .ision, strategy, re.enues, or costs< +uc% effects occur((t%roug% t%e use of KM to demonstrate intellectual leaders%i& wit%in t%e industry, w%ic%, in turn, mig%t en%ance customer loyalty< 3lternati.ely, it could occur t%roug% t%e use of knowledge to gain an ad.antageous negotiating &osition wit% res&ect to com&etitors or &artner organi5ations< Indirect im&act cannot be associated wit% transactions and, t%erefore, cannot be easily measured< $urt%er, a com&anyAs out&ut is said to e9%ibit economy of scale if t%e a.erage cost of &roduction &er unit decreases wit% increase in out&ut< 3 com&anyAs out&ut is said to e9%ibit economy of sco&e w%en t%e total cost of t%at same com&any &roducing two or more different &roducts is less t%an t%e sum of t%e costs t%at would be incurred if eac% &roduct was &roduced se&arately by a different com&any< Knowledge management can contribute to economies of scale and sco&e by im&ro.ing t%e organi5ationAs ability to create and le.erage knowledge related to &roducts, customers, and managerial resources across businesses< 7roduct designs, com&onents, manufacturing &rocesses, and e9&ertise can be s%ared across businesses, t%ereby reducing de.elo&ment and manufacturing costs, accelerating new &roduct de.elo&ment, and su&&orting Fuick res&onse to new market o&&ortunities< 1conomies of sco&e also result from t%e de&loyment of general marketing skills and sales forces across businesses< 3not%er indirect im&act of KM is to &ro.ide a sustainable com&etiti.e ad.antage< Knowledge can enable t%e organi5ation to de.elo& and e9&loit ot%er tangible and intangible resources better t%an t%e com&etitors can< Knowledge, es&ecially conte9t(s&ecific tacit knowledge, tends to be uniFue and t%erefore difficult to imitate, and it cannot easily be &urc%ased in a ready(to(use form< =o obtain similar knowledge, t%e com&anyAs com&etitors %a.e to engage in similar e9&eriences, but t%is takes time< =%erefore, com&etitors are limited in t%e e9tent to w%ic% t%ey can accelerate t%eir learning t%roug% greater in.estment< 8< Knowledge management is an in.aluable tool to t%e oil and gas industry< Dustify t%is statement wit% suitable e9am&les< 4il e9&loration often in.ol.es e9tra&olating from sketc%y data and comå e9&loration sites to known ones< =%is allows geoscientists to decide if enoug% reser.es e9ist on a site to make de.elo&ing it wort%w%ile< $or e9am&le, one site contained layers of oil(bearing sand t%at were less t%an an inc% t%ick< =o decide if t%in sand beds could e9tend o.er a large enoug% area for t%e oil in t%em to be efficiently N o&yrig%t >irtual :ni.ersity of 7akistan 22Knowledge Management EM!M=(/#0 >: &um&ed out, a +%ell e9&loration team asked one of +%ellAs communities of &ractice, including geoscientists from se.eral disci&lines, for %el&< )y comå t%is site to ot%ers, t%e community %el&ed in t%e teamAs analysis of w%ere to drill more accurately, resulting in fewer e9&ensi.e e9&loratory wells< )y in.esting in knowledge management and consulting t%e community of &ractice, t%e +%ell team estimated t%at t%e discussions of suc% com&arisons enabled t%em to drill and test t%ree fewer wells a year, sa.ing :+P20M in drilling and an additional :+P20M in testing costs for eac% well, i<e<, an annual sa.ing of :+P120M< It is, %owe.er, &ossible t%at t%ey mig%t %a.e reac%ed t%e same conclusions on w%ere to drill, but t%e leader estimated t%at t%e community could claim 2* &ercent of t%e sa.ings and was 20 &ercent sure of t%is estimate< +o t%e community may be argued to %a.e sa.ed 2* &ercent of 20 &ercent of :+P120M, i<e<, :+P2'M annually< +ince it costs between :+P#00K and :+P'00K annually to run t%e community, t%is re&resented an annual return of '0 times t%e in.estment< =%is was not t%e only benefit, but it was sufficient to address t%e senior e9ecuti.esA need to know w%et%er t%e community was wort% t%e in.estment< 10< Describe t%e im&act of internali5ation, e9ternali5ation, sociali5ation, and communities of &ractice on em&loyee learning< Knowledge management can %el& en%ance t%e em&loyeesA learning and e9&osure to t%e latest knowledge in t%eir fields< =%is can be accom&lis%ed in a .ariety of ways, including e9ternali5ation and internali5ation, sociali5ation, and communities of &ractice< -et us now look at eac% in detail< Internali5ation E is t%e con.ersion of e9&licit knowledge into tacit knowledge< It works in conKunction wit% e9ternali5ation to %el& indi.iduals learn< If an em&loyee in an accounting firm reads a book on well(establis%ed accounting &ractices, %e can use t%is e9ternali5ed knowledge to acFuire tacit knowledge and im&ro.e %is daily work< 19ternali5ation E is t%e &rocess of con.erting tacit knowledge into e9&licit forms< It works in conKunction wit% internali5ation to %el& indi.iduals learn< 19ternali5ation could be demonstrated by means of a re&ort made at t%e end of a &roKect, indicating t%e &rocedures followed and t%e lessons learnt< +ociali5ation E also %el&s indi.iduals acFuire knowledge by means of Koint acti.ities, suc% as meetings, informal con.ersations, etc< )y &artici&ating in t%ese meetings or acti.ities, indi.iduals obtain bot% e9&licit and im&licit knowledge< ommunities of 7ractice E are an e9tension of sociali5ation< =%ey are an organic and self(organi5ed grou& of indi.iduals w%o are dis&ersed geogra&%ically or organi5ationally but communicate regularly to discuss issues of mutual interest< =%ey result in increased learning among all t%e &artici&ants< 3&&lication 19ercises 1< Identify t%e &ossible ways in w%ic% KM Bor t%e lack t%ereofC in your organi5ation Bit could be your academic institution or your work&laceC affects your learning and Kob satisfaction< If we consider an academic institution, we can see t%e e9tent to w%ic% knowledge management affects t%e functioning of t%e institution as well as its faculty and students< Knowledge management can im&act organi5ations and organi5ational &erformance at se.eral le.els@ &eo&le, &rocesses, &roducts, and t%e o.erall organi5ational &erformance< It is im&ortant to note t%at KM &rocesses can im&act organi5ations at t%ese four le.els in two main ways< $irst, KM can %el& create knowledge, w%ic% can t%en contribute to im&ro.ed &erformance of organi5ations along t%ese four dimensions< +econd, KM can directly cause im&ro.ements along t%ese four dimensions< We ne9t a&&ly t%is in t%e conte9t to an educational institution@ 7eo&le E =%e faculty and staff at t%e institution can facilitate t%eir learning Bfrom eac% ot%er as well as from e9ternal sourcesC due to knowledge management tec%niFues< =%is learning allows t%e institution to grow constantly and c%ange in res&onse to t%e market and t%e tec%nology, w%ic% is N o&yrig%t >irtual :ni.ersity of 7akistan 28Knowledge Management EM!M=(/#0 >: .ital to its success< It also causes its em&loyees to be more fle9ible, and en%ances t%eir Kob satisfaction< 7rocesses (( Knowledge management can im&ro.e t%e abo.e interrelated as&ects of organi5ational &rocesses t%roug% se.eral means, including better knowledge being im&arted to indi.iduals at t%e institution Bt%roug% e9c%ange and sociali5ationC, and t%e &ro.ision of workable solutions Bt%roug% directions and routinesC for students to sol.e t%e &roblems faced in t%eir tasks< 7roducts E In t%e case of an academic institution, t%e im&act of KM on its &roducts are seen in two res&ects, .alue(added education, and knowledge(based education< =%e first refers to an im&ro.ed system of education t%at &ro.ides a significant additional .alue as com&ared to t%e earlier system, &rior to t%e im&lementation of KM< In t%e case of t%e latter, knowledge based education in.ol.es studying t%e e9&ert Bin t%is case t%e &rofessorC and t%en learning from %is teac%ings and tec%niFues< 4rgani5ational 7erformance (( KM also affects t%e o.erall &erformance of t%e institution, eit%er directly or indirectly< 3n e9am&le of a direct im&act is w%en a &rofessor learns of a new effecti.e teac%ing met%od, w%ic% %e t%en s%ares wit% %is colleagues so as to better educate all t%e students of t%e institution< 3n e9am&le of an indirect effect is t%e use of KM in t%e organi5ation to demonstrate intellectual leaders%i& wit%in t%e industry, w%ic%, in turn, mig%t en%ance customer loyalty and raise t%e institutionAs ranking in t%e industry< 2< )7(3moco B%tt&@;;www<b&amoco<comC introduced onnect as t%eir KM system< 4.er 12,000 staffs use onnect for s%aring and disseminating t%eir knowledge and e9&ertise< $ind information on onnect at )7(3moco and com&are t%e KM of )7(3moco and t%at of +%ell, w%ic% was discussed in t%e &re.ious c%a&ter of t%is book< =%e )7(3moco onnect system is a searc%able intranet re&ository, w%ic% ser.es as internal Mellow 7ages for finding )7 e9&erts< 1m&loyees &resent t%emsel.es on t%eir &ersonal Web &age, dis&laying t%eir &rofessional skills, rele.ant e9&eriences, interests, and ot%er &ersonal background< =%e site contains items like name, Kob title, team business unit, structures ta9onomy of Xareas of e9&ertise, languages s&oken, internal and e9ternal contacts, fa.orite web links, u&loaded &%otogra&%s, resume, audio cli&, network members%i&s, and contact information< 1m&loyees also %a.e a free te9t area and t%e listed categories of e9&ertise are e.er e.ol.ing< onnect was started u& wit% a &ilot of *00 u&stream tec%nology staff< During its initial &%ase, t%e design was ke&t o&en enoug% to easily encom&ass t%e entire organi5ations< 3fter t%is &ilot, focus grou&s were %eld to en%ance t%e interface< =%e number of users grew ra&idly to 10,000 em&loyees in t%e first year< 3n awareness cam&aign was set u&, mounted by a grou& of %ea.y users< 3lready in t%e first year B1882C about 10,000 staff used onnect as t%eir key to t%e .ast knowledge re&ository of )7(3moco< 3fter four years t%e number of users is #2,000 BMay 2002C, one( t%ird of t%e w%ole com&any< =%e basic &%iloso&%y be%ind t%is met%od is t%at t%e best medium for knowledge is t%e %uman brain and t%e best networking &rotocol is con.ersation< =%erefore t%e em&%asis s%ould lie on creating t%e connection and building t%e relations%i&< 4n content and structure of t%e re&ository, a balance needs to be found between anarc%y and structure< +ome general lessons on knowledge management at )7(3moco are@ 1< =%e difficult t%ing of KM is t%at you canAt manage knowledge< =%e ideal outcome is t%at em&loyees manage knowledge t%emsel.es as &art of t%eir daily business wit%out t%inking of it as an e9tra task< 2< Knowledge management is more about connecting to t%ose w%o know t%e reci&e t%an ca&turing an encyclo&aedia of knowledge< #< If de&artments are set to com&ete wit% one anot%er, free knowledge e9c%ange will not take &lace< '< 3 common res&onse to knowledge management initiati.es is@ GWe donAt %a.e t%e time rig%t N o&yrig%t >irtual :ni.ersity of 7akistan 80Knowledge Management EM!M=(/#0 >: now on to& of e.eryt%ing else we %a.e to do<H =%en t%e res&onse s%ould be@ GW%at if we told you someone else %as already done t%e .ery task you are about to do< We Kust need to find out w%o and w%at t%ey learned<H *< 1ssential to KM is a good communicator, a central &erson and also a &erson in eac% team w%o %as boug%t in to t%e &rocess< )est is someone w%o talks a lot< 0e or s%e %as to get out t%ere, find information, and feed it back again< #< Dow %emical B%tt&@;;www<dow<comC introduced Intellectual 3sset Management Model BI3MC for managing its intellectual assets< It in.ol.es si9 &%ases@ strategy6 com&etiti.e assessment6 classification6 .aluation6 in.estment6 and &ortfolio of its managing intellectual assets< om&ared to $ordAs best &ractice re&lication &rocess system, w%at are t%e similarity and difference of I3M in terms of im&act on em&loyee, business &rocess, and organi5ational &erformance? =%e Dow %emical Intellectual 3sset Management Model in.ol.es si9 &%ases@ strategy6 com&etiti.e assessment6 classification6 .aluation6 in.estment6 and &ortfolio< onsidering t%at t%e com&any already %ad &atents t%at were underutili5ed, t%e grou& initially started wit% t%e &ortfolio &%ase< It reFuired t%em to identify eac% &atent, determine w%et%er it was still acti.e, and find a business t%at would take financial res&onsibility for it< Ne9t came t%e classification &%ase< 1ac% business classified its &atents in t%ree categories Z stating w%et%er t%e business is Gusing,H Gwill use,H or G will not useH t%e &atent< =%e businesses furt%er stated ot%er designations suc% as w%et%er t%e &atents were to be licensed or abandoned< In t%e strategy &%ase, t%e grou& focused on integrating t%e &atent &ortfolio wit% business obKecti.es in order to ma9imi5e its .alue< It also identified ga&s in t%e &ortfolio t%at needed to be addressed< =%is &%ase is connected to t%e .aluation and com&etiti.e assessment &%ases< In t%e .aluation &%ase, .alue was &laced on t%e asset for licensing, o&&ortunity &rioriti5ation, or ta9 &ur&oses< Dow %as also de.elo&ed a com&re%ensi.e intellectual &ro&erty;asset .aluation tool known as t%e G=ec% $actor Met%od<H =%e =ec% $actor, w%ic% relies on se.eral industry(acce&ted met%odologies, facilitates a Fuick and ine9&ensi.e financial .aluation of intangible assets wit%in a &articular business unit< It enables Dow to .alue t%e monetary contribution of eac% &ro&erty or asset as a &ercentage of t%e business enter&riseAs total net &resent .alue< In t%e com&etiti.e assessment &%ase, t%e knowledge, ca&abilities and intellectual assets of com&etitors are determined< =%e com&any accom&lis%es t%is using w%at it calls a G&atent treeH Z a ma& of o&&ortunities t%at incor&orates t%e &atents of bot% Dow and its com&etitors< =%e 1*(year( old tool e.aluates suc% factors as dominance, breadt% of co.erage, and o&&ortunity o&enings< $inally, t%e grou& entered t%e in.estment &%ase@ Dudging w%et%er to &ut more money in RLD, enter a Koint .enture, or license a tec%nology from outside in order to meet business obKecti.es Z basing t%e decision on a &rior assessment of t%e com&anyAs knowledge ga&s< If t%e com&any successfully obtains a needed tec%nology or secures an a&&ro&riate &atent, t%e intellectual asset is incor&orated into t%e &ortfolio and t%e &rocess re&eats itself< In contrast, $ordOs best &ractice re&lication &rocess is a tool to collect, s%are, and track t%e .alue of re&licating better ways of doing business across t%e enter&rise< +tarted in 188*, t%e &rocess %as identified o.er P1<# billion in &roKected .alue at $ord across twenty(fi.e collaborati.e communities of &ractice< =%is &ro&rietary tec%nology is a worldwide KM &rocess, dri.en by t%e $ord Motor om&any o&eration grou&s, and focused on t%ree maKor &rinci&les of Knowledge Management@ collecting knowledge, in t%is case gat%ering6 .aluable &ro.en &ractices6 communicating knowledge about t%e &ractices to communities of &ractice;networks6 and le.eraging knowledge by acti.ely managing t%e &rocess< =%e best &ractice re&lication system at $ord Motor om&anyAs .e%icle o&erations di.ision was re&orted to %a.e sa.ed t%e com&any P#' million in one year< N o&yrig%t >irtual :ni.ersity of 7akistan 81Knowledge Management EM!M=(/#0 >: 1ac% week, t%e #" &lants recei.e t%roug% t%e intranet between fi.e and eig%t best &ractices t%at a&&ly only to t%e di.ision< 1ac% &lant manager a&&oints &roduction engineers as Xfocal &ointsA res&onsible for best &ractice, w%o retrie.e information &assed to t%em and enter t%eir own &lantAs best &ractice into t%e system< '< Mou are a 14 w%o considers im&lementing KM system to your com&any< Mou %a.e to decide one o&tion out of two@ 1C our KM system can be accessed by customers6 2C our KM system cannot be accessed by customers< Describe your decision and &ro.ide t%e reason in terms of organi5ational &erformance< 3s a 14 considering im&lementation of a KM system for t%e com&any, based on t%e nature of t%e com&any and its business, I would more t%an likely c%oose to %a.e t%e KM system accessible to customers< 4ften customers can &oint out information, w%ic% em&loyees would not %a.e normally considered< 3 good e9am&le of t%is is t%e Microsoft Knowledge )ase< If t%e knowledge base was not a.ailable to t%e &ublic, t%e tec%nical su&&ort teams at Microsoft would more t%an likely be inundated wit% calls for answers t%at could easily be looked u& on a Website< 0owe.er t%e nature of t%e s&ecific business orgai5ation would %a.e to be considered as well< N o&yrig%t >irtual :ni.ersity of 7akistan 82Knowledge Management EM!M=(/#0 >: -1++4N 1/ =0R11 +044-+ 4$ =04:!0= 3ND 377R4301+ =4 KM< 14N4MI +044- 3ND K>3 3&&roac%es to KM@ Introduction =%ere is a growing recognition in t%e business community about t%e im&ortance of knowledge as a critical resource for organi5ations< =raditionally, t%is resource %as not been treated wit% t%e degree of systematic, deliberate, or e9&licit effort de.oted to managing %uman, material, and financial resources< )ut in t%e coming years, t%e firm t%at lea.es knowledge to its own de.ices may be &utting itself in se.er Keo&ardy< More and more &ractitioners and researc%ers belie.e t%at knowledge resources matter more t%an t%e con.entionally tended resources Bmaterial, labor, ca&italC and must be managed e9&licitly, not left to fend for itself< Knowledge management can be defined as a met%od to sim&lify and im&ro.e t%e &rocess of s%aring, distributing, creating, ca&turing and understanding knowledge in a com&any< Knowledge management is descri&tion, organi5ation, s%aring and de.elo&ment of knowledge in a firm< Knowledge management is managing knowledge(intensi.e acti.ities in a com&any< Knowledge management refers to identifying and le.eraging t%e collecti.e knowledge in a com&any to %el& t%e com&any com&ete< Knowledge management is a met%od for ac%ie.ing cor&orate goals, by collecting, creating and synt%esi5ing and s%aring information, insig%ts, reflections, t%oug%ts and e9&erience< Knowledge management is a disci&line focused on systematic and inno.ati.e met%ods, &ractices, and tools for managing t%e generation, acFuisition, e9c%ange, &rotection, distribution, and utili5ation of knowledge, intellectual ca&ital and intangible assets< =%e &ur&ose of knowledge management is to %el& com&anies create, s%are and use knowledge more effecti.ely< 1ffecti.e knowledge management causes fewer errors, less work, more inde&endence in time and s&ace for knowledge workers, fewer Fuestions, and better decisions, less rein.enting of w%eels, im&ro.ed customer relations, im&ro.ed ser.ice and im&ro.ed &rofitability< Knowledge management is &ur&orted to increase bot% inno.ation and res&onsi.eness< =%e recent interest in organi5ational knowledge %as &rom&ted t%e issue of managing knowledge to t%e organi5ationAs benefit< 1arl B2001C de.elo&ed ta9onomy for knowledge management t%at %e labeled sc%ools of knowledge management< 1ac% sc%ool was &ro&osed as an ideal ty&e< No claims were made t%at any new sc%ool out&erforms ot%ers< 1ac% re&resents a &articular orientation r &ers&ecti.e< =%e sc%ools are not mutually e9clusi.e< 1arlAs B2001C ta9onomy is a&&lied to classify a number of a&&roac%es to knowledge management< =%is classification of a&&roac%es is based on an o.erall matc% to eac% ideal ty&e in terms of sc%ool of knowledge management< =%ree rele.ant sc%ools are labeled t%e economic sc%ool, t%e organi5ational sc%ool and t%e strategic sc%ool< =%e economic sc%ool %as a focus of income, in w%ic% t%e aim is to e9&loit knowledge assets< =%e organi5ational sc%ool %as a focus of networks, in w%ic% t%e aim is knowledge &ooling< =%e strategic sc%ool %as a focus of com&etiti.e ad.antage, in w%ic% t%e aim is to identify, e9&loit and e9&lore knowledge ca&abilities< =%e 1conomic +c%ool 3ccording to 1arl B2001C, t%e economics sc%ool is e9&licitly concerned wit% bot% &rotecting and e9&loiting a firmAs knowledge or intellectual assets to &roduce re.enue streams Bor rentC< It is concerned wit% managing knowledge as an asset, in w%ic% knowledge or intellectual assets include &atents, trademarks, co&yrig%ts and know(%ow< Intellectual &ro&erty could be anot%er means of describing t%e obKect being managed< =%is sc%ool is more concerned wit% e9&loitation of knowledge and less concerned wit% e9&loration< 4ne critical success factor in t%is sc%ool a&&ears to be t%e de.elo&ment of a s&ecialist team or function to aggressi.ely manage knowledge &ro&erty t%roug% intellectual ca&ital N o&yrig%t >irtual :ni.ersity of 7akistan 8#Knowledge Management EM!M=(/#0 >: accounting, intellectual ca&ital management and creation of effecti.e and efficient knowledge market&lace< 4t%erwise it is too easily forgotten< Intellectual a&ital 3ccounting 3ccording to Roslender and $inc%am B2001C< Intellectual ca&ital is currently t%e focus of significant discussion and enFuiry across t%e management disci&lines and beyond< =%is reflects t%e recognition t%at intellectual ca&ital &ro.ides a crucial source of .alue for t%e contem&orary business enter&rise< It is a source t%at reFuires careful management if it is to fulfill its ma9imum &otential< In t%e case of t%ose businesses w%ose s%ares are &ublicly Fuoted, t%e success wit% w%ic% organi5ations manage t%eir intellectual ca&ital is increasingly mirrored in t%eir market .alues, .alues t%at are often many times t%e book .alues of enter&rises< )ridging t%e ga& between t%ese two .alues &ro.ides one moti.ation for seeking to account for intellectual ca&ital< 3not%er moti.ation for seeking to account for intellectual ca&ital is t%e need to manage intellectual ca&ital successfully< !i.en t%e im&ortance of managing intellectual ca&ital successfully, accounting is being c%allenged to de.elo& new a&&roac%es to &erformance measurement t%at ca&ture t%e Fuality of management e.ident in t%e conte9t of intellectual ca&ital< +tewart B188"C %as suggested se.eral tools for measuring intellectual ca&ital< >alue is defined by t%e buyer, not t%e seller< 3 com&any, t%erefore, is wort% w%at t%e stock market says@ &rice &er s%are 9 total number of s%ares outstanding _ market .alue6 w%at t%e com&any as a w%ole is wort%< 4ne measure of intellectual ca&ital is t%e difference between its market .alue and its book eFuity< =%e assum&tions is t%at e.eryt%ing left in t%e market .alue after accounting for t%e fi9ed assets must be intangible assets< If Microsoft is wort% 100 billion dollars, and its book .alue is 10 billion dollars, t%en its intellectual ca&ital is 80 billion dollars< =%ree com&onents of intellectual ca&ital can be identified< 0uman ca&ital is t%e first com&onent, consisting of t%e know(%ow, ca&abilities, skills and e9&ertise of %uman members of an organi5ation< Relational ca&ital is t%e second com&onent, consisting of any connection t%at &eo&le outside t%e organi5ation %a.e wit% it, toget%er wit% customer loyalty, market s%are, t%e le.el of backorders, and so fort%< +tructural ca&ital embraces t%e remaining com&onent of intellectual ca&ital, including bot% systems and networks, and cultures and .alues, toget%er wit% elements of intellectual &ro&erty suc% as &atents, co&yrig%ts, trademarks, and so fort%< =o begin intellectual ca&ital accounting necessitates an acce&tance t%at it is &ossible to include wit%in t%e same financial statement obKecti.e measures of .alue, as in t%e case of tangible assets for w%ic% t%ere are %istorical e9&enditures< Intangible assets suc% as goodwill are already &roblematic in accounting< $or e9am&le, in t%e :K, only &urc%ased goodwill can be re&orted in t%e accounts of t%e business t%at acFuires it< If goodwill continues to &ro.e &roblematic for financial accounting and re&orting, intellectual ca&ital as t%e new goodwill ser.es to multi&ly t%e difficulties in.ol.ed< Intellectual ca&ital assumes many more forms t%an does goodwill, and w%ile bot% conce&ts are ultimately o&en(ended, se.eral years of t%inking about intellectual ca&ital %a.e confirmed its greater breadt% and de&t%< 4ne conseFuence of t%is, according to Roslender and $inc%am B2001C, is t%at we mig%t now t%ink in terms of degrees of intangibility, so t%at w%ile brands, &atents and know(%ow still count as intangible assets, customer data, distribution c%annels and em&loyee Fualification &rofiles are more intangible< 4ff t%e scale are suc% assets as em&loyee commitment, organi5ational culture and cor&orate .alues, yet it is Kust suc% assets t%at ensure t%at some businesses e9%ibit im&ressi.e market(to(book .alue rations< =%e market(to(book .alue ratio is sometimes used to indicate t%e .alue of intellectual ca&ital in an organi5ation< =%ree decades ago, t%e market(to(book .alue ratio was close to one in most businesses< =oday, t%is ratio %as grown to four on a.erage< Microsoft is an e9treme e9am&le< =%e book .alue of t%e com&any was 11 billion dollars in 188", w%ile t%e market .alue was 200 billion< =%is gi.e a market(to( book .alue ration of 20< 3fua% and =ucci B200#C argue t%at t%is ratio is caused by intellectual ca&ital< 3 number of a&&roac%es to .aluing knowledge assets e9ist< Reliable a&&roac%es reFuire a common language to discuss t%e underlying .alue of an organi5ationAs knowledge assets< =%e knowledge( .alue( N o&yrig%t >irtual :ni.ersity of 7akistan 8'Knowledge Management EM!M=(/#0 >: added met%odology seems to conform to t%is reinforcement as one of t%e more robust a&&roac%es< =%e knowledge(.alue(added BK>3C met%odology as described by 0ousel and )ell B2001C addresses a need long recogni5ed by e9ecuti.es and managers by s%owing %ow to le.erage and measure t%e knowledge resident I em&loyees, information tec%nology, and core &rocesses< K>3 analysis &roduces a return( on( knowledge BR4KC ratio to estimate t%e .alue added by gi.en knowledge assets, regardless of w%ere t%ey are located< =%e essence of K>3 is t%at knowledge utili5ed incor&orate core &rocesses is translated into numerical form< =%is translation allows allocation of re.enue in &ro&ortion to t%e .alue added by t%e knowledge as well as t%e cost to use t%at knowledge< )alance Including Intellectual a&ital in a )usiness 4rgani5ation Bt%is e9am&le de.elo&ed by 1gil +and.ik using In.isible )alance +%eet in +.eibyAs toolkit@ www<s.eiby<comC )alance +%eet =angible assets 2*,000,000 0uman ca&ital 20,000,000 Material .alues 1*,000,000 Relational ca&ital 2*,000,000 Immaterial .alues "*,000,000 +tructural ca&ital #0,000,000 Debt 10,000,000 3ssets 100,000,000 -iabilities 100,000,000 =racking t%e con.ersion of knowledge into .alue w%ile measuring its bottom(line im&acts enables managers to increase t%e &roducti.ity of t%ese critical assets< 0ousel and )ell B2001C &resent t%e following e9am&le< =%e e9am&le begins wit% an a.erage &erson w%o needs to learn %ow to &roduce all t%e out&uts of a gi.en com&any< In a .ery real sense, t%en, %er adding &rocesses including selling, marketing, &roducing, accounting for, financing, ser.icing, and maintaining< It is t%ese core &rocesses t%at add .alue w%ile con.erting in&uts into out&uts t%at generate t%e com&anyAs re.enue< Knowledge >alue 3dded BK>3C@ K>3 &ro.ides a met%odology for allocating re.enue and cost to a com&anyAs core &rocesses based on t%e amount of c%ange eac% &roduces< +ignificantly, t%e knowledge reFuired to make t%ese c%anges is a con.enient way to describe t%e con.ersion &rocess< We define knowledge in a &articular way %ere@ It is t%e know(%ow reFuired to &roduce &rocess out&uts< =%is kind of knowledge is &ro&ortionate to t%e time it takes to learn it< -earning time %as been found to be a Fuick and con.enient way to measure t%e amount of knowledge contained in any gi.en &rocess< =%is understanding can be &ut to test wit% t%e e9am&le< In a widget com&any, t%ere is one &erson, t%e owner, w%o makes and sells widgets< =%is &erson knows all t%ere is to know in order to make and sell widgets for P1< =%e ownerAs sales &roduction knowledge can be used as a surrogate for t%e dollar of re.enue generated by t%e ownerAs a&&lication of t%e core &rocess knowledge< 3nd we can determine %ow long it would take t%e widget com&any owner to transfer all t%e necessary sales and &roduction knowledge to a new owner< $urt%er, we can use t%ese learning times to allocate to dollar of re.enue between t%e sales and &roduction &rocesses< In 0ousel and )ellAs B2001C e9am&le, it is assumed t%at it takes 100 %ours for t%e new owner to learn t%e &rocesses, wit% "0 %ours s&ent learning %ow to make t%e widget and #0 %ours learning %ow to sell it< =%is would indicate t%at "0 &ercent of t%e knowledge and .alue added was contained in t%e &roduction &rocess and #0 &ercent in t%e sales &rocess< It would follow t%at \0<"0 of t%e re.enue would be allocated to &roduction knowledge and P0<#0 to sales knowledge< 3ll t%at would be left to do in t%is e9am&le would be to determine %ow muc% it costs to use t%e sales and &roduction knowledge, and t%en we would %a.e a ratio of knowledge .alue added to knowledge utili5ation cost< In ot%er words, we can measure return on knowledge BR4KC< $or t%e sake of argument, it is assumed t%at t%e total cost to sell and &roduce a widget was P0<*0 @ P0<2* for sales and P0<2* for &roduction< =%e basic a&&roac% %ere is to find out %ow muc% it costs to use t%e sales and &roduction knowledge< In t%is case t%e cost is directly tied to %ow long t%e new owner s&ends &erforming eac% N o&yrig%t >irtual :ni.ersity of 7akistan 8*Knowledge Management EM!M=(/#0 >: &rocess< 3s it turns out, in t%is case, t%e new owner s&ends t%e same amount of time to do bot% and, t%erefore, t%e cost to use t%e knowledge of eac% &rocess is t%e same< )ased on our estimates for distribution of re.enue and cost, we would generate an estimate of R4K< We would conclude t%at t%e &roduction &rocess is a more &roducti.e use of t%e knowledge asset BR4K _ 0<"0;0<2* _ 220UC t%an t%e sales &rocess BR4K _ 0<#0;0<2* _ 120UC<
N o&yrig%t >irtual :ni.ersity of 7akistan 8/Knowledge Management EM!M=(/#0 >: -1++4N 1" 14N4MI +044-@ M3N3!1M1N= 3ND KN4W-1D!1 M1=RI+ Management and Knowledge Metrics@ =ransforming Knowledge into >alue =o remain com&etiti.e, an organi5ationOs core &rocesses must &roduce a bottom(line &rofitability t%at will attract in.estors, maintain t%e organi5ationOs market ca&itali5ation, and en%ance cor&orate .alue &roduction w%ile ensuring t%at customers get t%e .alue t%ey want in t%e &roducts and ser.ices t%ey recei.e< Managers must constantly analy5e and design &rocesses t%at meet t%ese reFuirements< In organi5ations w%ose growt% and .iability increasingly de&end on rigorous, de&loyment of knowledge assets, management needs measures t%at Fuantify t%e &erformance of core &rocess knowledge assets and tie t%em directly to t%e bottom line< urrently, management design o&tions are based on %euristics, ]rules( of(t%umb] t%at &ro.ide semi(em&irical su&&ort for t%eir creati.e strategies< 0owe.er, t%ese %euristics cannot &roduce modifiable insig%ts as to w%et%er actual or &ro&osed c%anges to core &rocesses %a.e %ad or will %a.e t%e desired im&act on t%e firmOs bottom line< =%e use of creati.e knowledge re&resents a s&ecial case for knowledge measurement< reati.e knowledge is by definition not modifiable< =rying to manage and measure t%is ty&e of knowledge is &roblematic< $or e9am&le, t%e( .alue of t%e creati.e knowledge used in t%e researc% and de.elo&ment area of a com&any can only be determined after t%e out&uts of t%is knowledge %a.e been translated into core &rocesses t%at &roduce final &roducts< Knowledge metrics become useful for managers of creati.e knowledge because, using knowledge metrics, t%ey can track t%e s&eed wit% w%ic% t%is kind of knowledge results in c%anges in core &rocesses and t%e amount of new or c%anged ]modifiable] knowledge in core &rocesses< In t%is manner, knowledge metrics also will re.eal t%e embedding of suc% creati.e know ledge in t%e com&anyOs ot%er core &rocesses< =%is &ro.ides a means to identify, Fuantify, and %el& manage t%e transformation of knowledge into .alue< 3dditional >aluation Met%odologies >is(`(>is Knowledge Metrics It is critical for t%e successful and wides&read use of knowledge metrics t%at t%ey be intero&erable wit% traditional accounting and finance .aluation a&&roac%es w%ene.er &ossible< Dust as t%e t%eory of relati.ity dro.e &%ysics into t%e ne9t millennium, so knowledge metrics will be t%e dri.er of accounting and finance <.aluation met%odologies< ost, Income, Market, 3nd Real 4&tions 3&&roac%es =%e cost, income, and market a&&roac%es are t%e t%ree fundamental a&&roac%es used by t%e business .aluation &rofession to .alue s&ecified owners%i& interests in &ri.ately %eld com&anies< =%e real o&tions a&&roac% was de.elo&ed to .alue stock o&tions but also can be a&&lied to t%e &roblem of .aluing intangible assets< 3 re.iew of t%ese a&&roac%es will &ro.e useful ill framing a discussion of t%e general &rinci&les and &ractices of .aluing assets, including intangibles suc% as knowledge< =%e cost a&&roac% is based on t%e conce&t t%at a com&any is wort% t%e market .alue of all its assets minus t%e market .alue of all its <liabilities< $or t%is reason, not only eac% balance s%eet asset;liability bur also eac% off (balance(s%eet asset;liability Btangible and intangibleC is identified, .alued, and included on <t%e balance s%eet< )ringing t%e %istorical cost of eac% and e.ery asset and liability to its current market .alue is time(consuming and difficult and may in.ol.e t%e use of additional e9&erts to .alue s&ecific categories of assets Bi<e<, real estate of mac%inery and eFui&mentC< >ariations of t%e cost a&&roac% are generally used to .alue %olding and in.estment com&anies and asset(intensi.e com&anies suc% as t%ose in natural resources and utilities< 3sset(based met%ods are also reliable in early(stage com&anies w%ere book .alues can be used as a reasonable &ro9y for fair market .alue, 3 &articular form of t%e cost a&&roac%, t%e e9cess earnings a&&roac%, is regularly used to .alue &rofessional &ractices and ser.ice com&anies< N o&yrig%t >irtual :ni.ersity of 7akistan 8"Knowledge Management EM!M=(/#0 >: =%e income a&&roac% is based on t%e conce&t t%at a com&any is wort% t%e &resent .alue of its future earning &ower< $uture economic income is &roKected out from t%e .aluation date using %istorical trendsO and managementOs, &rofessional Kudgment as to t%e future growt% of t%e com&any< If t%e recent %istory of t%e com&anyOs cas% flows is stable and its future growt% is incremental and sustainable, a single &roKection will be made into &er&etuity< If t%e recent %istory of t%e com&anyOs cas% flows %as &eaks and .alleys and;or its future will in.ol.e %ig% or une.en rates of growt%, &roKections will be made for eac% year of fi.e years Bone business cycle C, and t%en a single &roKection will be made from t%e fift% year our into &er&etuity< 1it%er way, t%e &roKected cas% flows will be con.erted back to &resent .alue using a total rate of return on in.estment t%at is com&arable to t%e rate of return a.ailable in t%e market on in.estments of similar risk and ot%er c%aracteristics< =%e resulting estimate of .alue is adKusted for w%et%er a controlling or minority owners%i& interest is being .alued and for t%e marketability or lack of marketability of t%at owners%i& interest< =%e income a&&roac% is generally used to .alue o&erating com&anies and;or s&ecific &roKects t%at are being &ro&osed by management wit%in an o&erating com&any< =%e market a&&roac% is based on t%e conce&t t%at t%e .alue of a &ri.ately %eld com&any can be reasonably estimated by e9amining, adKust in, and using t%e market multi&les Bsuc% as t%e &rice;earnings ratiosC of ]guideline] &ublicly %eld com&anies t%at bear enoug% similarity to t%e ]subKect] &ri.ately %eld com&any to make t%eir multi&les rele.ant< $irst, t%e fundamental financial .ariables bot% t%e subKect com&any and its guide(line com&anies are adKusted to make t%em more com&arable to eac% ot%er and enable t%e .aluation &rofessional to better assess t%eir relati.e strengt%s and weaknesses< $inancial ratios for t%e subKect and guideline com&anies are calculated and com&ared< 4ne or se.eral guideline com&any market multi&les are selected and adKusted to reflect t%e relati.e growt% &ros&ects and risks Bstrengt%s and weaknessesC of t%e subKect com&any< $inally, t%ese adKusted multi&les are weig%ted by degree of im&ortance and a&&lied to t%e fundamental financial .ariable of t%e subKect com&any< =%e resulting estimate of .alue is adKusted for w%et%er a controlling or minority owners%i& interest is being .alued and for t%e marketability of lack oft marketability of t%at owners%i& interest< >ariations of t%e market a&&roac% are used in conKunction wit% t%e cost and;or income a&&roac%es for .aluing all kinds of com&anies< =%e real o&tions a&&roac% %as grown out of o&tions t%eory< =%e .alue of an o&tion increases as t%e .ariability in t%e .alue of t%e underlying asset Bcas% flow &er unitC increases< =%ere are si9 key &arameters t%at affecti.e .alue of a real o&tion@ t%e market .alue of t%e asset, t%e e9ercise &rice of t%e o&tion, t%e time remaining until t%e o&tion matures, t%e .olatility of t%e underlying asset, t%e risk( free rate of t%e asset, and t%e amount of di.idends &aid by t%e underlying risky asset< =%is measure not only .alues a &roKectOs immediate return but allows inclusion of t%e &otential .alue generated in multi&le in.estment outcomes< =%e real o&tions a&&roac% is a basic ca&ital budgeting tec%niFue t%at focuses on measuring t%e .alue of an indi.idual &roKect, in conditions of uncertainly, before t%e &roKect begins< =%e real o&tions a&&roac% is not used to .alue s&ecified owners%i& interests in &ri.ately %eld com&anies but to .alue internal and e9ternal in.estment o&&ortunities for an indi.idual com&any, &ublic or &ri.ate< 3s suc%, it is a strategic business .aluation tool< It is widely used by t%e Internet .enture ca&ital community for determining t%e &otential future .alue of com&anies wit% no economic %istory< It also %as been a&&lied to t%e .aluation of &atents and licenses< N o&yrig%t >irtual :ni.ersity of 7akistan 82Knowledge Management EM!M=(/#0 >: -1++4N 12 M13+:R1+ 4$ IN=1--1=:3- 37I=3- Measuring Return on Knowledge We %a.e &ro.ided a broad brus%(stroke re.iew of some of t%e most &romising a&&roac%es to .aluing knowledge assets as well as t%e more traditional a&&roac%es to .aluing com&any assets< 3s we noted in t%e last c%a&ter, reliable a&&roac%es reFuire a common language to discuss t%e underlying .alue of an organi5ationAs knowledge assets< =%e knowledge(.alue(added met%odology conforms to t%is reinforcement and is one of t%e most robust a&&roac%es< Really understanding %ow t%e met%odology works reFuires a fairly com&lete re.iew< !oing into more detail %ere will &ro.ide an o&&ortunity to work t%roug% some of t%e more &ractical issues in.ol.ed in actually trying to measure knowledge at a granular le.el< :ltimately, it will be at t%e granular le.el t%at new knowledge measures will &ro.ide new raw data for Information 3ge financial and accounting &rofessionals< In.estors, managers, and e.en customers can rely on suc% &rofessionals for basic analysis and insig%t u&on w%ic% to base t%eir decisions< Knowledge(>alue(3dded Met%odology =%e knowledge(.alue(added BK>3C met%odology addresses a need long recogni5ed by e9ecuti.es and managers by s%owing %ow to le.erage and measure t%e knowledge resident in em&loyees, information tec%nology, and core &rocesses< K>3 analysis &roduces a return(on(knowledge BR4KC ratio to estimate t%e .alue added by gi.en knowledge assets regardless of w%ere t%ey are located< =%e essence of K>3 is t%at knowledge utili5ed in cor&orate core &rocesses is translated into numerical form< =%is translation allows allocation of re.enue in &ro&ortion to t%e .alue added by t%e knowledge as well as t%e cost to use t%at knowledge< =racking t%e con.ersion of knowledge into .alue w%ile measuring its bottom(line im&acts enables managers to increase t%e &roducti.ity of t%ese critical assets< K>3, t%oug% based on so&%isticated conce&ts from t%ermodynamics, is relati.ely straig%tforward to a&&ly< K>3 19am&le -etAs begin wit% an Ga.erageH &erson w%o needs to learn %ow to &roduce all t%e out&uts of a gi.en com&any< In a .ery real sense, t%en, %er knowledge of t%e com&any would be t%e embodiment of t%e com&anyAs .alue(adding &rocesses including selling, marketing, &roducing, accounting for, financing, ser.icing, and maintaining< It is t%ese core &rocesses t%at add .alue w%ile con.erting in&uts into out&uts t%at generate t%e com&anyAs re.enue< K>3 &ro.ides a met%odology for allocating re.enue and cost to a com&anyAs core &rocesses based n t%e amount of c%ange eac% &roduces< +ignificantly, t%e knowledge reFuired to make t%ese c%anges is a con.enient way to describe t%e con.ersion &rocess< We define knowledge in a &articularly way %ere@ It is t%e know(%ow reFuired to &roduce &rocess out&uts< =%is kind of knowledge is &ro&ortionate to t%e time it takes to learn it< We %a.e found learning time to be a Fuick and con.enient way to measure t%e amount of knowledge contained in any gi.en &rocess< We can &ut t%is understanding to t%e test wit% a sim&le e9am&le< In t%e widget com&any, t%ere is one &erson, t%e owner, w%o makes and sells widgets< =%is &erson knows all t%ere is one &erson, t%e owner, w%o makes and sells widgets< =%is &erson knows all t%ere is to know in order to make and sell widgets for P1< =%e ownerAs sales(&roduction knowledge can be used as a surrogate for t%e dollar of re.enue generated by %is a&&lication of t%e core &rocess knowledge< 3nd we can determine %ow long it would take t%e widget com&any owner to transfer all t%e necessary sales and &roduction knowledge to a new owner< $urt%er, we can use t%ese learning times to allocate t%e dollar of re.enue between t%e sales and &roduction &rocesses< N o&yrig%t >irtual :ni.ersity of 7akistan 88Knowledge Management EM!M=(/#0 >: $or sim&licityAs make, letAs assume t%at it takes 100 %ours for t%e new owner to learn t%e &rocesses, wit% "0 %ours s&ent learning %ow to make t%e widget and #0 %ours learning %ow to sell it< =%is would indicate t%at "0 &ercent of t%e knowledge and .alue added was contained in t%e &roduction &rocess and #0 &ercent of t%e knowledge and .alue added was contained in t%e &roduction &rocess and #0 &ercent in t%e sales &rocess< It would follow t%at P0<"0 of t%e re.enue would be allocated to &roduction knowledge and P0<#0 to sales knowledge< 3ll t%at would be left to do in t%is e9am&le would be to determine %ow muc% it costs to use t%e sales and &roduction knowledge and t%en we would %a.e a ration of knowledge .alue added to knowledge utili5ation cost< In ot%er words, we can measure return on knowledge BR4KC< $or t%e sake of argument, letAs assume t%at t%e total cost to sell and &roduce a widget was P0<*0@ P0<2* for sales and P0<2* for &roduction< =%e basic a&&roac% %ere is to find out %ow muc% it costs to use t%e sales and &roduction knowledge< In t%is case, t%e cost is directly tied to %ow long t%e new owner s&ends &erforming eac% &rocess< 3s it turns out, in t%is case, t%e new owner s&ends t%e same amount of time to do bot% and, t%erefore, t%e cost to use t%e knowledge of eac% &rocess is t%e same< )ased on our estimates for t%e distribution of re.enue and cost, we would generate an estimate of t%e R4K< We would conclude t%at t%e &roduction &rocess is a more &roducti.e use of t%e knowledge asset B=4K _ 0<"0;<2* _ 220 &ercentC t%an t%e sales &rocess BR4K _ 0<#;0<2* _ 120 &ercentC< =%e K>3 met%odology can be a&&lied at any le.el in a com&any< We can conduct roug%(cut estimates of t%e relati.e return on knowledge of a com&anyAs core &rocesses and information tec%nology using t%e same general a&&roac%< -etAs say t%at we want to conduct a Fuick(and(dirty K>3 of t%e +) or&oration< We could gat%er toget%er e9ecuti.es re&resenting t%e core &rocesses, including sales( order &ro.isioning, a marketing, network &ro.isioning, maintenance, and so fort%< 1ac% would estimate %ow long it takes t%e a.erage &erson to learn %ow to &roduce t%e out&uts of t%e core areas< $or reasons e9&lained below, weAll add one boundary condition@ We only %a.e a total of 100 mont%s for a.erage &erson to learn e.eryt%ing necessary to generate t%e annual re.enue at +)< It is normal in suc% cases to lum& su&&ort and administrati.e &rocesses toget%er in one large category or to ignore suc% &rocesses, de&ending on t%e goals of t%e K>3 and for t%e sake of con.enience< We would not ask t%e e9ecuti.es to make estimates of t%e .alue of t%eir core &rocesses, since discussion could degenerate into a no(win dogfig%t< Rat%er, t%ey would be asked to ac%ie.e consensus estimates of a&&ro9imately w%at &ortion of t%e total allotted 100 mont%s our a.erage &erson s%ould use to learn eac% core &rocess =%ese estimates would be weig%ted by t%e number of em&loyees in eac% core &rocess to estimate %ow freFuently t%e knowledge in a gi.en &rocess is em&loyed in a ty&ical year< =o make a back(of(t%e(en.elo&e estimate of t%e knowledge embedded in t%e information tec%nology of core &rocesses, we could ask for t%e &ercentage of t%e &rocess t%at is automated< =%en t%e &ercentage of knowledge for eac% &rocess, including its su&&orting information tec%nology, can be calculated by di.iding &rocess knowledge by t%e total amount of knowledge< Re.enue is t%en allocated &ro&ortionately< If we wanted to understand t%e contribution of information tec%nology, t%e re.enue for eac% &rocess could be furt%er &artitioned into t%e amount attributable to information tec%nology< =%e annual budget for eac% area can be used to estimate t%e cost to use t%e gi.en core &rocess knowledge< In most %ig%( tec% firms, %is is usually t%e cost for em&loyee salaries and information tec%nology costs< =%e final ste& would be to di.ide t%e allocated re.enue by t%e cost &er core &rocess to determine t%e relati.e R4Ks< =%e re.enue attributable s&ecifically to t%e knowledge embedded in information tec%nology and t%e cost to use it would &ro.ide t%e R4K for I= wit%in and among &rocesses< =%is can be Fuite re.ealing in t%at Gall I= is not created eFual<H +ome %ig%ly automated &rocesses &ro.ide muc% lower R4Ks t%an ot%ers in w%ic% t%ere is a lower &ercentage of automation, but I= &ro.ides muc% more Gbang for t%e buck<H !i.en a common &oint of reference, learning(time c%eating is infreFuent because t%e e9ecuti.es know t%eir estimates can be .erified by ot%er knowledge measure suc% as actual training times and number of &rocess instructions for eac% &rocess< More im&ortantly, t%e common reference &oint for estimation &ro.ides a meaningful framework for discussion< 3nd, once t%e R4Ks are calculated, t%e e9ecuti.es can mo.e forward to &rioriti5e efforts to im&ro.e o.erall com&any &erformance< N o&yrig%t >irtual :ni.ersity of 7akistan 1007 M R 4ut&ut 7rocess In&ut Knowledge Management EM!M=(/#0 >: K>3 =%eory K>3 is firmly rooted in t%e Information 3ge< It allows managers and in.estors to analy5e t%e &erformance of cor&orate knowledge assets in core &rocesses in terms of t%e returns t%ey generate< =%is is true w%et%er knowledge is embedded in information tec%nology or em&loyeesA %eads< =%is is accom&lis%ed by &ostulating a common unit of knowledge t%at can be obser.ed in core &rocess and counted in terms of its &rice and cost< =%e results of a K>3 analysis are ratios t%at com&are t%e &rice and cost for t%ese common units of knowledge< 1conomics com&onents for t%ese ratios are deri.ed from t%e cas% flow from ongoing o&erations and can be deri.ed contem&oraneously wit% t%e generation of t%e case flow< =%e fundamental assum&tions can be summari5ed as below $undamental 3ssum&tions of K>3 :nderlying Model@ %ange, Knowledge, and >alue are 7ro&ortionate 7BRC _ M $undamental assum&tions@ 1< If R_M, no .alue %as been added< 2< G.alueH 9 Gc%angeH #< Gc%angeH can be measured by t%e amount of knowledge reFuired to make t%e c%ange< +o G.alueH 9 Gc%angeH 9 Gamount of knowledge reFuired to make t%e c%angeH =%e &rinci&le of re&lication states t%at gi.en t%at we %a.e t%e knowledge necessary to &roduce t%e c%ange, t%en we %a.e t%e amount of c%ange introduced by t%e knowledge< )e definition, if we %a.e not ca&tured t%e knowledge reFuired to make t%e c%anges necessary, we will not be able to &roduce t%e out&ut as determined by t%e &rocess< =%ese tests to determine if t%e amount of knowledge reFuired to &roduce an out&ut %as been accurately estimated< $or t%e &ur&oses of sim&lification, t%e knowledge audit of K>3 met%odology can be delineated in se.en ste&s for t%ose w%o need a more concrete guide< =able "<1 summari5es t%ree different ways to generate estimates of t%e .alue of t%e knowledge embedded in t%e core &rocesses of a firm< =%e 19odus case study t%at follows will &ro.ided detailed e9am&les of %ow K>3 mig%t be a&&lied to %el&ing manage t%e knowledge in an Internet infrastructure com&any< =%e K>3 a&&roac% is currently being embedded in t%e G7rocess 1dgeH =M2 &rocess modeling tool suite from Intelligent +ystems =ec%nology Incor&orated< =%is software will allow analysts to gat%er and re&resent K>3 data wit%in a &rocess work(flow model as well as monitor t%e ongoing return on knowledge BR4KC and return on &rocess BR47C< N o&yrig%t >irtual :ni.ersity of 7akistan 101Knowledge Management EM!M=(/#0 >: =%ree 3&&roac%es to K>3 +te&s -earning time 7rocess descri&tion )inary Fuery met%od 1< Identify core &rocess and its sub &rocesses 2< 1stablis% common units to measure learning time< Describe t%e &roducts in terms of t%e instructions reFuired to re&roduce t%em and select unit of &rocess descri&tion< reate a set a binary yes;no Fuestions suc% t%at all &ossible out&uts are re&resented as a seFuence of yes;no answers< #< alculate learning time to e9ecute eac% sub &rocess alculate number of &rocess instructions &ertaining to eac% sub &rocess< alculate lengt% of seFuence of yes;no answers for eac% sub &rocess< '< Designate sam&ling time &eriod long enoug% o ca&ture a re&resentati.e sam&le of t%e core &rocessAs final &roduct;ser.ice out&ut< *< Multi&ly t%e learning time for eac% sub &rocess by t%e number of times t%e sub &rocess e9ecutes during sam&le &eriod< Multi&ly t%e number of &rocess instructions used to describe eac% sub &rocess by t%e number of times t%e sub &rocess e9ecutes during sam&le &eriod< Multi&ly t%e lengt% of t%e yes;no string for eac% sub &rocess by t%e number of times t%is sub &rocess e9ecutes during sam&le &eriod< /< 3llocate re.enue to sub &rocesses in &ro&ortion to t%e Fuantities generated by ste& * and calculate costs for eac% sub &rocess =%e knowledge wit%in a &rocess can be re&resented as learning time, &rocess instructions, or bits< In fact, any a&&roac% t%at satisfies t%e basic K>3 assum&tions will work< )ased on t%e fundamental assum&tion of K>3, t%e correlation between any two or more estimates s%ould be at a %ig% le.el to ensure an accurate estimate< =%is sim&le matc%ed correlation measures t%e reliability of an estimate< N o&yrig%t >irtual :ni.ersity of 7akistan 102Knowledge Management EM!M=(/#0 >: -1++4N 18 KN4W-1D!1 M3RK1= M4D1- 3ND K>3 3+1 +=:DM Knowledge Market $ramework Wit%in t%e economic sc%ool, knowledge transfers occur in knowledge markets< =%is is a transactional &ers&ecti.e, in w%ic% knowledge e9c%anges occur in a market&lace< In defining any market, one must be clear as to w%om t%e buyers and sellers are, and w%at &ricing system e9ists to determine w%at t%e consumer &ays for a &roduct or ser.ice< Knowledge markets e9ist wit%in e.ery organi5ation< =%ese markets include not only knowledge t%at %as been codified or synt%esi5ed Breali5edC into a com&anyAs &rocesses, structure, tec%nology or strategy, but also include all dynamic e9c%anges of knowledge between buyers and su&&liers< 3ccording to !ro.er and Da.en&ort B2001C, organi5ation can be .iewed to %a.e two categories of buyers of knowledge, local buyers and global buyers< =%e local buyers are &eo&le w%o are searc%ing for knowledge assets to address an issue t%at t%ey need to resol.e< =%e reFuire more t%an information< 19&ertise, e9&erience, insig%t, and Kudgment are needed to bring to bear on t%e issue< =%ey could &ay for knowledge in %ard currency .ia for e9am&le a consultant from outside t%e firm, or buy t%e knowledge from internal su&&liers< =%e global knowledge buyer is t%e firm, w%ic% %as a .ested interest in reali5ing knowledge assets into .aluable &roducts and ser.ices< =%e global knowledge buyer, re&resented by organi5ational stake%olders w%ose benefits are tied to organi5ational le.el outcomes, %as a strong interest in transferring local knowledge to global knowledge< Doing so reduces de&endency on knowledge sellers E in case t%ey c%oose to lea.e t%e firm< Knowledge sellers are &eo&le w%o %a.e knowledge Busually tacitC to sell< =%e Fuality of t%is knowledge mig%t be %ig% or low de&ending on t%e credibility of t%e source< Da.en&ort and 7rusakAs B1882C a&&roac% to knowledge management is concerned wit% knowledge markets< 3 knowledge market can be defined as a system in w%ic% &artici&ants e9c%ange a scarce unit for &resent or future .alue< )uyers, sellers and brokers are t%e role on knowledge markets< Knowledge buyers or seekers are usually &eo&le trying to resol.e an issue w%ose com&le9ity and uncertainty reFuire knowledge< =%ey seek knowledge because it %as distinct .alue to t%em< Knowledge sellers are usually &eo&le in an organi5ation wit% an internal market re&utation for %a.ing substantial knowledge about a &rocess of organi5ation<
K>3@ ase +tudy of 19odus ommunications Inc< =%e following is an e9am&le of %ow K>3 can be a&&lied to a com&any in t%e Internet infrastructure market&lace< =%e same general a&&roac% can be e9tended to any com&any< =%e K>3 met%odology is generic and robust enoug% to be a&&licable to com&anies and core &rocesses in any industry< 19odus ommunications Inc< $inancial +ummary 7rice *2(week Range +%ares outstanding BMMC 17+ 883 17+ 20001 7;1 Market ca&itali5ation \#' P1*(P28 '12<' PB0<#/C PB0</C NM NM _ not meaningful< 19odus is leading &ro.ider of web %osting ser.ices< =%e com&any offers a suite of ser.ices including data center, Internet access, and managed ser.ices< 1< 19odus is a ty&ical Internet infrastructure com&any t%at cannot be meaningfully e.aluated by t%e traditional financial ratios and multi&les met%od6 for e9am&le, t%e 7;1 ratio is not deri.able because t%e com&any %as no &ositi.e net income< 2< =%e &rice(to(book .alue of 19odus is ''<*8 w%ile t%e industry a.erage for t%is ration is only 1/</8 and t%e +L7 *00 is 8<//< t%e &rice(to(tangible .alue of 19odus is /"<88 w%ile t%e N o&yrig%t >irtual :ni.ersity of 7akistan 10#Knowledge Management EM!M=(/#0 >: industry a.erage is only 20<*1 and t%e +L7 *00 is 12<""< =%is means t%at 19odus stock is being .alued more ric%ly relati.e to t%e .alue of its assets t%an is t%e case for t%e +L7 *00< ItAs a good e9am&le to illustrate t%at most of t%e .alue of t%e com&any is deri.ed from t%e underlying knowledge assets embedded in t%e com&any structure and culture, w%ic% is not reflected o t%e traditional accounting statement< om&any Descri&tion $ounded in 188', 19odus ommunications =M %as been a &ioneer in t%e Internet data center market< =%e com&any offers system and network management solutions, along wit% tec%nology &rofessional ser.ices for customersA websites< 19odus deli.ers its ser.ices from geogra&%ically distributed Internet data centers t%at are connected t%roug% a %ig%(&erformance dedicated and redundant backbone network< =%e com&anyAs tailored solutions are designed to integrate wit% e9isting enter&rise systems arc%itectures and to enable customers to outsource t%e monitoring, administration, and o&timi5ation of t%eir eFui&ment, a&&lications and o.erall Internet o&erations, 19odus is &ublicly trade on t%e NasdaF National market under t%e ticker symbol 1RD+< 3s of December #1, 1888, t%e com&any %ad o.er 2,200 customers under contract and managed o.er 2",000 customer ser.ers worldwide< =%e com&anyAs customers re&resent a .ariety of industries, ranging from Internet leaders to maKor enter&rise customers< Ma%ooQ, :+3 =4D3M<com, weat%er<com, &ricleine<com, )ritis% 3irways, and Nordstrom are Kust a few of t%e com&anies selecting 19odus as t%eir com&le9 Web %osting &ro.ider< 19odus currently o&erates Internet data centers located in nine metro&olitan areas in t%e :nited +tates@ 3tlanta, 3ustin, )oston, %icago, -os 3ngeles, New Mork, +eattle, +ilicon >alley, and Was%ington, D<< In addition, t%e com&any o&ened its first Internet data center outside of t%e :nited +tates I t%e -ondon metro&olitan area in Dune 1888 and t%e second in =okyo, Da&an, in December 1888< 19odus offers t%ree ty&es of ser.ices@ 1< Internet ser.er %osting< 2< Network solutions< #< +ystem management and monitoring ser.ices< urrent Issues 19odus ommunications currently %as t%ree areas of concern@ 1< Decreasing &rofit margin@ )andwidt% of t%e Network solutions and t%e co(location of Internet +er.ice 0osting are ra&idly becoming commodities wit% smaller and smaller margins as a result of increased com&etition and t%e maturation of t%e industry< 2< 19&ansion o&&ortunity@ 19odusAs core customers are mostly Gblue c%i&H $ortune *00 com&anies due to t%e limited amount of time and sales staff resources< =%ere are o&&ortunities for small customers t%at reFuire sim&le and standardi5ed solutions< =%e current &rocess of ser.ice selection and network arc%itecture and design BN3DC is .ery labor intensi.e and takes u& lots of resources, w%ic% makes furt%er e9&ansion difficult< #< 1merging com&etition@ =%e emerging com&etition in t%e industry will lower t%e a.erage re.enue &er user of 19odusAs customers< =%e goal of t%e e9ercise is to identify t%e area for focus on increasing re.enue from e9isting knowledge assets, rat%er t%an Kust cutting cost< =%e following is an e9am&le of %ow K>3 could be a&&lied to 19odus on bot% t%e aggregate and t%e o&eration le.els to measure t%e .alue of knowledge created in its core and sub &rocesses< 3ggregate(-e.el K>3 3 roug%(cut estimate K>3 on 19odus ommunications Inc< is targeted at t%e aggregate le.el of analysis< 4n one %and, t%e to& e9ecuti.es can benc%mark t%e com&anyAs us of knowledge assets against ot%er industries< 4n t%e ot%er %and, management can look at t%e le.el of &erformance in t%e com&anyAs core &rocesses before deciding %ow to im&ro.e &erformance< N o&yrig%t >irtual :ni.ersity of 7akistan 10'Knowledge Management EM!M=(/#0 >: 3ssum&tions and Met%odology =%e K>3 team would inter.iew &rocess subKect matter e9&erts B+M1sC, make obser.ations, and talk wit &rocess em&loyees and managers to obtain a.erage learning( time estimates and t%e number of roug%ly eFui.alent &rocess instructions reFuired to com&lete eac% sub &rocess< +ome of t%e numbers for t%e aggregated(le.el analysis, suc% as number of em&loyees and e9&enses, were annuali5ed figures deri.ed from t%e 18881 financial statements< 1< Determine t%e core areas E We would gat%er toget%er t%e .arious e9ecuti.es of t%e core &rocesses in 19odus< =%en t%ey would be asked to categori5e t%e com&anyAs functions at t%e aggregate le.el@ Management, +ales and !eneral 3dministration B+L!3C, and 4&eration< =%ese t%ree functions would be t%e aggregate of all core &rocesses in t%e com&any< a< Management includes finance and strategic management< b< +L!3 includes all su&&orting functions suc% as %uman resources, &ublic relations, and marketing< c< 4&erations includes sales su&&ort and design, ser.ice selection and network arc%itecture design BN3DC, &rocurement, integration, troubles%ooting, and final testing< 2< !at%er t%e data on t%e amount of knowledge embedded in eac% core area using t%e learning time a&&roac%< a< Ranking< 19ecuti.es from t%e com&any would be asked to rank t%e t%ree abo.ementioned areas in terms of %ardest to easiest to learn or most to least com&le9 to learn< =%is ranking met%od creates a framework to guide t%e e9ecuti.es to make a first(cut analysis of t%e underlying amount of knowledge created in eac% area< It also offers a knowledge estimate t%at, a &riori, is assumed to correlate wit% t%e 100(mont% learning time estimate< =%e le.el of t%e correlation is an indication of t%e accuracy of t%e estimate< b< -earning time estimation< 19ecuti.es would t%en be asked to estimate %ow long it would take t%e a.erage &erson to learn %ow to &roduce t%e out&uts of eac% core area using t%e 100(mont% a&&roac%< =%ere is a total of only 100 mont%s for an a.erage &erson to learn e.eryt%ing in t%e abo.e areas necessary to generate t%e annual re.enue at 19odus< =%e e9ecuti.es %a.e to estimate t%e time an a.erage &erson would use, of t%e total allotted 100 mont%s, to learn eac% core &rocess< #< Weig%t t%e amount of knowledge e9ecuted in t%e &rocess< a< Determine t%e number of em&loyees wit%in eac% core area< b< 3sk for t%e &ercentage of t%e &rocess t%at is automated< =o truly understand t%e knowledge embedded in t%e &rocess, we %a.e to talk to t%e &rocess subKect matter e9&erts to tell us &recisely w%at we need to know to &roduce t%e information tec%nologyAs out&ut wit%in t%e sub &rocess under re.iew< c< alculate t%e &ercentage of knowledge contained in eac% &rocess, including its su&&orting tec%nology< =%e amount of knowledge in eac% &rocess is eFual to relati.e learning time multi&lied by t%e number of em&loyees V automation< =%en re.enue can be allocated &ro&ortionately based on t%is &ercentage< d< Determine t%e annual budget for eac% core &rocess or area used in t%e analysis to generate t%e cost estimates< e< alculate t%e R4K ratio to estimate t%e .alue added by gi.en knowledge assets in eac% &rocess< =able "<2 re&resents our annuali5ed %ig%(le.el aggregate .iew of 19odusAs 1888 &erformance< 1ac% entry of t%e table is described in t%e following &aragra&%s< In column 1 we identify t%e core areas of 19odus ommunications< =%e t%ree %ig% le.el core areas are categori5ed as +L!3, 4&erations, and Management< Inc column 2 we rank t%e areas in terms of t%e most difficult to t%e easiest to learn, 1 being t%e easiest and # t%e %ardest< In t%e table below, +L!3 is t%e easiest area to learn and 4&erations is t%e %ardest< In column # we assume t%at it takes 100 mont%s for an a.erage &erson to learn t%e t%ree areas based on an a.erage &erson< $or e9am&le, +L!3 is t%e easiest area to learn and takes an a.erage &erson 20 mont%s out of 100 mont%s to learn all &rocesses in t%e +L!3 area< =%is a&&roac% can kee& t%e e9ecuti.es wit%in t%e conce&tual framework of Fuantifying t%e amount of knowledge contained in eac% N o&yrig%t >irtual :ni.ersity of 7akistan 10*Knowledge Management EM!M=(/#0 >: function< =%is figure s%ould correlate wit% t%e ranking in column 2< If t%e two figures donAt correlate %ig%ly, we will ask t%e e9ecuti.es to reconsider and re(estimate< =%e t%eory &redicts t%at figures in column 2 and column # s%ould be 100 &ercent correlated< 0owe.er, gi.en t%e fact t%at no estimate will e.er be &erfect, t%ere will always be some measurement error< We %a.e found t%at t%e le.el of correlation s%ould reac% a minimum of 2* &ercent to be acce&table by most e9ecuti.es for t%e roug%( cut, aggregated estimation and 8* &ercent for t%e more detailed core &rocess analyses< =able "<2 0ig%(-e.el 3ggregate K>3 3nalysis ol<1 ol<2 ol<# ol<' ol<* ol</ ol<" ol<2 ol<8 ol<10 ol<11 ore areas Rank in terms of difficult to learn B1_easiest, #_%ardestC Relati.e learning time Btotal_ 100 mont%sC Number of em&loyees 7ercent(age of automation 3mount of knowledge embedded in automatio n =otal amount of knowledge 7ercentag e of knowledg e allocation 3nnual re.enue allocation Bin millions of :<+< dollarsC 3nnual e9&ense Bin millions of :<+< dollarsC R4K +L!3 4&erations Management 1 # 2 20 '* #* 2** /00 2** 20U /0 20 1#,/20 1/,200 ",1'0 #0,"20 '#,200 1/,0/* #'<12U '"<82 1"<2' P22<" 11/<1 '#<2 P112<2a 18"<2b *1<0c "0\ *8 2* In column ' t%e number of em&loyees is a roug%(cut way to Gweig%ingH knowledge in t%e core areas for t%e annuali5ed &eriod< =%e actual number of e9ecutions of knowledge may .ary and t%is issue s%ould be addressed w%en discussing t%e reasonableness of t%e em&loyee(weig%ting met%od wit% e9ecuti.es familiar wit% t%e core areas< In 19odus, t%ere are a total of 2** &eo&le in t%e Management area, w%ic% re&resents t%e number of times t%e knowledge embedded in t%e management function area is e9ecuted< If we donAt %a.e t%e e9act figures of total em&loyees in eac% area, &ercentage of em&loyees distributed in eac% area can be used< In column * t%e &ercentage of automation is t%e estimated amount of knowledge contained in t%e information tec%nology systems t%at su&&ort t%ese core functions< =%e &ercentage is based on an estimation of %ow long it would take t%e a.erage &erson to learn %ow to &erform t%e instructions manually t%at are currently &erformed by t%e I=< If we remo.e t%e automation, it is t%e amount of knowledge used to &roduce t%e same out&ut as is &roduced wit% t%e automation< Remember, we need t%e amount of knowledge embedded in t%e I= but not t%e time and cost it takes to e9ecute t%e knowledge to obtain t%e out&ut< =%e time used to &roduce t%e same out&ut is an estimate of t%e cost of using t%e knowledge embedded in t%e automation< In column / we calculate t%e amount of knowledge embedded in automation, w%ic% is t%e learning time Bcolumn #C multi&lied by t%e number of em&loyees 8column 'C multi&lied by t%e &ercentage of automation Bcolumn *C< +L!3 20 9 2** V 20U _ 1#,/20 4&erations '* 9 /00 V /0U _ 1/,200 Management #* 9 2** V 20U _ ",1'0 In column " we calculate t%e total amount of knowledge, w%ic% is t%e learning time Bcolumn #C multi&lied by t%e number of em&loyees Bcolumn 'C &lus t%e automation Bcolumn /C< +L!3 20 9 2** V 1#,/20 _ #0,"20 4&erations '* 9 /00 V 1/,200 _ '#,200 Management #* 9 2** V ",1'0 _ 1/,0/* In column 2 we calculate t%e amount of knowledge allocated to eac% functional area@ +L!3 B#0,"20;80,0'*C 9 100U _ #'<12U 4&erations B'#,200;80,0'*C 9 100U _ '"<82U Management B1/,0/*;80,0'*C 9 100U _ 1"<2'U =%e amount of knowledge is t%e total .alue surrogate of t%e annual re.enue BP2'2 millionC< In column 8 annual re.enue is allocated based on t%e &ercentage of t%e amount of knowledge embedded in eac% stage in terms of total knowledge< +L!3 P2'2 9 #'<12U _ P22<" million N o&yrig%t >irtual :ni.ersity of 7akistan 10/Knowledge Management EM!M=(/#0 >: 4&erations P2'2 9 '"<82U _ P11/<1 million Management P2'2 9 1"<2'U _ P'#<2 million olumn 10 ca&tures t%e cost used to generate t%e out&uts of t%e &rocess< +L!3 P112<2 million includes t%e general administrati.e costs and marketing e9&enses 4&erations P18"<2 million Management P*1 million In column 11 we calculate return on knowledge BR4KC, w%ic% is t%e allocated re.enue Bcolumn 8C di.ided by t%e cost to use t%is knowledge Bcolumn 10C< +L!3 P 22<";P112<2 _ "0U 4&erations P11/<1;P18"<2 _ *8U Management P'#<2;P *1 _ 2*U R4K is t%e ratio of re.enue allocated to eac% core area com&ared to its corres&onding e9&enses< )y comå t%e e9&enses and re.enues associated wit% t%e knowledge asset, an internal %urdle rate can be com&uted to com&are efficiency in &erformance of t%e core areas< In t%e abo.e e9am&le, 19odusAs R4K in t%e t%ree core function areas are less t%an one because it %as not generated &ositi.e net income< Management Im&lication 3mong t%e t%ree core function areas, t%e &erformance of 4&erations B*8 &ercentC is relati.ely low as com&ared to +L!3 B"0 &ercentC and Management B2* &ercentC< =o take constructi.e actions to make t%e com&any &rofitable, t%e K>3 analysis can identify t%e areaBsC w%ere t%e com&any can be more effecti.e in e9&loiting its knowledge resources to generate out&uts more effecti.ely and efficiently< =o in.estigate w%ic% area in 4&erations needs im&ro.ement, we must go into t%e core &rocesses to analy5e t%e distribution and contribution of knowledge< urrently, t%e sales &ro.isioning &rocess is one of t%e core &rocesses in 19odusA 4&erations< It &resents a maKor o&&ortunity for furt%er business e9&ansion wit% t%e e9&losi.e growt% in demand for data storage< 0owe.er, it is also t%e area w%ere customer turnaround is t%e slowest due to lack of automation< =%e costs of e9&ansion in terms of t%e sales &ro.isioning &rocess are accelerating< $i.e out of t%e si9 sub &rocesses of sales &ro.isioning fall wit%in t%e 4&erations area< =%e lower R4K in t%e 4&erations area %as confirmed managementAs guess and intuition t%at t%e sales &ro.isioning &rocess is one of t%e areas needing im&ro.ement< =o reassure in.estors t%at management is tackling t%e biggest &roblem area, t%e sales &ro.isioning area was selected for furt%er K>3 analysis< =%e sales &ro.ision &rocess includes si9 sub &rocesses@ sales su&&ort and design, ser.ice selection and N3D, &rocurement, integration, troubles%ooting, and final testing< 3ll of t%ese sub &rocesses fall into t%e 4&erations area, e9ce&t t%e sales su&&ort functions< K>3@ +ales 7ro.isioning 7rocess 3ssum&tions and Met%odology 1< Data center@ 19odus %as a total of 22 Internet data centers worldwide< =%e o&erations cost and &rocess structure are based on t%e 11 +egundo center located in -os 3ngeles< We assume t%at all centers are staffed and o&erated more or less t%e same way< 2< -earning time and &rocess instruction a&&roac%@ In addition to learning time, t%e &rocess instruction a&&roac% is anot%er way to measure t%e amount of knowledge reFuired to &roduce &rocess out&uts< =%e amount of knowledge reFuired is &ro&ortionate to t%e number of &rocess instructions &ertaining to eac% &rocess< =%e learning time as well as t%e &rocess instructions, will ser.e as an estimate for t%e amount of knowledge contained in eac% sub &rocess and s%ould be defined in terms of rig%tly eFual com&le9ity< $or e9am&le, instructing a &erson to &aint t%e door green may be less com&le9 t%an instructing a &erson to make t%e customer %a&&y< !enerating two inde&endent estimates of knowledge is use full in t%at it allows an estimate of t%e accuracy and t%e reliability of knowledge estimates by making a matc%ed correlation test among t%e two< =%e %ig%er t%e correlation, t%e better t%e estimates< N o&yrig%t >irtual :ni.ersity of 7akistan 10"Knowledge Management EM!M=(/#0 >: +e.en +te&s of K>3 on +ales 7ro.isioning 7rocess +te& one is to identify t%e core and sub &rocesses< =%e 19odus core sales &ro.isioning &rocess in.ol.ed si9 &rocesses@ sales su&&ort and design, ser.ice selection and N3D, &rocurement, integration, troubles%ooting, and final testing< B+ee =able "<#, column 1C In ste& two we establis% a common definition of learning time for t%e si9 &rocesses under re.iew< We would ask t%e subKect matter e9&erts B+M1sC to describe t%e &rocess instructions for &roducing t%e out&uts of t%e si9 sub &rocesses< We also would ask t%e +M1s to estimate %ow long it would take to teac% an Ga.erageH &erson to learn to &roduce t%e out&uts< =%e learning time estimate indicated t%at a total of a&&ro9imately 2,000 weeks were reFuired to learn t%e w%ole seFuence of %ow to e9ecute eac% sub &rocess< In ste& t%ree we calculate t%e total time to learn %ow to e9ecute eac% sub &rocess< 1< -earning time a&&roac%@ we calculate t%e total time to learn %ow to e9ecute eac% sub &rocess< !i.en t%at t%ere were a total of 2,000 weeks to learn %ow to e9ecute t%e si9 &rocesses, t%e distribution of learning time was as follows@ sales reFuired 2'0 weeks, ser.ice selection and N3D reFuired '00 weeks, &rocurement reFuired /0 weeks, integration reFuired *00 weeks, troubles%ooting reFuired *00 weeks, and final testing reFuired #00 weeks B=able "<#, column 2C< 2< 7rocess instruction a&&roac%@ We need to identify a common language to describe t%e sub &rocesses in terms of t%e &rocess instructions reFuired to &roduce t%e out&uts< $or e9am&le, t%e sale su&&ort and design function reFuired 2'0 learning weeks or 220 &rocess instructions to &roduce t%e out&ut< #< =able "<# K>3 on t%e +ales 7ro.isioning 7rocess ol<1 ol<2 ol<# ol<' ol<* ol</ ol<" ol<2 ol<8 ol<10 +ub(&rocess -earning time BweeksC Number of em&loyees 3mount of knowledge embedded in I= B#*UC =otal amount of knowledge 7ercentage of knowledge allocation 3nnual re.enue allocation Bin millionC 7rocess costs Bin millionC R4K R4K on industry a.erage +ales +er.ice selection and N3D 7rocurement Integration =rouble( s%ooting $inal testing 2'0 '00 /0 *00 *00 #00 2 2 * * / / /"2 1,120 10* 2"* 1,0*0 /#0 2,*82 ',#20 '0* #,#"* ',0*0 2,'#0 1*U 2* 2<* 20 2#<* 1' P1#<" 22<2 2<# 12<# 21<' 12<2 P12<2 2'<# #<0 20<# 18<0 /<' 112U 8' "" 80 1<1# 200 100U 1*0 1*0 20 1 12* =otal 2,000 #2 1",1"2 100U P81<# P2*<2 10"U =%e &rocess instruction estimates for t%e si9 sub &rocesses correlated abo.e 28 &ercent wit% t%e corres&onding learning time estimates B=able "<'C< !i.en t%e %ig% le.el of correlation, t%ere would be a fair degree of confidence t%at bot% learning times and &rocess task estimates were a reasonably accurate measure of t%e same underlying amounts of knowledge embedded in eac sub &rocess< )ecause of t%e %ig% correlation we decided to use only t%e learning times for t%e R4K estimates< N o&yrig%t >irtual :ni.ersity of 7akistan 102Knowledge Management EM!M=(/#0 >: In ste& four we designate a sam&ling time &eriod long enoug% to ca&ture a re&resentati.e sam&le of t%e com&ound &rocessesA final &roduct;ser.ice out&ut< In t%is case, t%e annuali5ed &eriod was used, so number of em&loyees was t%e weig%ting factor< In ste& fi.e we multi&ly t%e learning time for eac% sub &rocess by t%e number of times t%e sub &rocess e9ecutes during t%e sam&le &eriod< In t%is case, we multi&lied t%e number of em&loyees B=able "<#, column #C by t%e learning time Bolumn 2C< =%en we added t%e amount of automation Bcolumn 'C to deri.e t%e total amount of knowledge used in t%e sub &rocess Bcolumn *C< =%e total &ercentage of knowledge is &ro&ortionately allocated to eac% sub &rocess in column / and t%e total amount of re.enue for eac% sub &rocess is also allocated in column "< In ste& si9 Bsee =able "<*C we calculate t%e cost to e9ecute eac% sub &rocess based on t%e assum&tion t%at t%e total of 22 worldwide data centers s%ares t%e same cost structure as a ty&ical one in 11 +egundo< =%is assum&tion can be c%ecked for accuracy in furt%er discussions wit% t%e a&&ro&riate +M1s and e9ecuti.es< =%e annual cost for eac% sub &rocess is re&resented in column 2< In t%is case, t%e &rimary determinant of cost was t%e number o em&loyees working in eac% =able "<' -earning =ime 3nd 7rocess Instructions 3&&roac% orrelation +ub &rocess -earning time BweeksC 7rocess instructions +ales 2'0 220 +er.ice selection and N3D '00 '00 7rocurement /0 200 Integration *00 */0 =roubles%ooting *00 '00 $inal testing #00 220 =otal 2,000 2,120 orrelation -earning time 7rocess instructions -earning time 7rocess Instructions 1 0<280# 1 1 3nd t%is was used to allocate cost wit% ot%er general e9&enses Breal estate, eFui&ment, &ower, etc<C eFually di.ided among t%e sub &rocesses< In ste& se.en we com&ute t%e R4Ks for eac% sub &rocess using re.enue allocated for eac% sub &rocess B=able "<#, column "C as t%e numerator and cost for eac% sub &rocess Bcolumn 2C for t%e denominator< =%e resulting returns on knowledge are re&resented in column 8, wit% %y&ot%etical a.erage benc%mark com&arisons from ot%er com&anies in t%e industry re&resented in column 10< =%e following is a &artial list of t%e beneficial ways t%at K>3 analyses %a.e been used in a wide .ariety of com&anies< reati.e managers and e9ecuti.es will find new ways ada&ted to t%eir &articular needs< J =ool to control o&erations@ Management needs current and dynamic feedback to steer t%e com&any to &rofitability< =raditional financial tools &ro.ide a set of figures wit% no indication to management w%at kinds of returns eac% core area or &rocess is &ro.iding< =%e results of a K>3 analysis are ratios t%at com&are t%e &rice and t%e cost for t%ese common units of knowledge across core areas and &rocesses< =%e economic data for t%ese ratios are deri.ed from cas% flow from ongoing o&erations and can be deri.ed contem&oraneously wit% t%e generation of cas% flow< K>3 t%erefore &ro.ides contem&oraneous feedback to t%e com&anyAs &erformance about %ow well t%e com&any is self(organi5ing and ada&ting to t%e dynamic market en.ironment to en%ance .alue for bot% s%are%olders and customers< It is a tool to direct allocation of knowledge assets and ca&ital resources< J New set of raw data@ K>3 uses a new set of raw data t%at can be .alidated and reliably used to measure t%e &erformance of cor&orate knowledge assets< =%e calculation of R47 and R4K will %el& a.oid subKecti.e mani&ulation< 0owe.er, it s%ould be remembered t%at all calculations are subKect to mani&ulation, but w%en bot% .alue and cost are matc%ed for gi.en core areas and &rocesses, mani&ulation becomes more difficult< =able "<2 0ig%(-e.el 3ggregate K>3 3nalysis N o&yrig%t >irtual :ni.ersity of 7akistan 108Knowledge Management EM!M=(/#0 >: olumn<1 olumn<2 olumn<# olumn<' olumn<* olumn</ ost for e9ecuting t%e knowledge 19ecution time Bmont%sC Mont%ly Rate 7rocess cost 7rocess cost of eac% data center on an annual basis 7rocess cost of t%e w%ole com&any Btotal of 22 data centersC Bin millionC +ales +er.ice selection and N3D 7rocurement Integration =roubles%ootin g $inal testing # 12 # 20 1* * P1*,'00 ",/20 #,2'0 #,2'0 ',200 ',200 P'/,200 82,1/0 11,*20 "/,200 "2,000 2',000 P **','00 1,10*,820 1#2,2'0 821,/00 2/',000 222,000 P12<2 2'<# #<0 20<# 18<0 /<' =otal P#,2"2,1/0 P2*<2 J Increase in em&loyeeAs understanding of t%e .alue of t%e &roduction &rocess@ K>3 is easy to understand< It %el&s em&loyees, e.en &ersons not familiar wit% finance and accounting, to understand t%e .alue t%ey are contributing to t%e core &rocesses and t%e com&any bottom line< +uc% a conce&t %el&s to con.ert t%e com&anyAs strategy into tangible obKecti.e for em&loyees suc% as setting a return(based %urdle rate for t%eir &erformance< J 1n%ancement of em&loyeesA &roducti.ity@ K>3 %el&s to create a framework t%roug%out t%e com&any t%at encourages managers and em&loyees t t%ink and be%a.e like owners< I addition, it &ro.ides a framework for t%e Information 3ge managers to more e9&licitly understand %ow to mange knowledge assets< J 1fficient resource allocation@ 3t t%e o&erational le.el, t%is a&&roac% %el&s to increase t%e s%are%olderAs .alue t%roug% increased efficiency in allocation of knowledge assets and ca&ital resources< In many com&anies, all effort is di.erted to cut cost w%ile ignoring re.enue6 .alue at all le.els %as been ignored because, in t%e &ast, t%ere %as been no e9&licit way to allocate re.enue to core &rocess acti.ities< J =ool to measure managerAs &erformance@ K>3 makes to managers res&onsible for t%e o&erations o.er w%ic% t%ey %a.e control< >alue is created by knowledge t%at is affected by t%eir decisions rat%er t%an by e9ternal market factors t%at t%ey feel t%ey cannot control, for e9am&le, t%e market &rice of t%e com&anyAs s%are or &roduct< J )enc%mark of t%e com&any wit% industry or com&etitors@ K>3 offers a .alue based met%od for comå com&aniesA knowledge asset &erformance wit%in an industry< J 3 starting &oint to im&ro.e financial and business &olicy@ W%en com&anies e9amine t%emsel.es as a set of knowledge assets and knowledge out&uts, com&anies can identify and in.est in t%e &rocesses, tec%nologies, and &eo&le t%at &ro.ide t%e greatest return< N o&yrig%t >irtual :ni.ersity of 7akistan 110Knowledge Management EM!M=(/#0 >: -1++4N 20 +>1I)MA+ IN=1--I!1N= 3++1= M4NI=4R Intellectual a&ital Management 4ne of t%e key aut%ors in t%e area of intellectual ca&ital is +.eiby B2001C, w%o %as de.elo&ed a knowledge(based t%eory of t%e firm to guide in strategy formulation< 0e distinguis%ed between t%ree families of intangible assets< =%e e9ternal structure family consists of relations%i&s wit% customers and su&&liers and t%e re&utation BimageC of t%e firm< +ome of t%ese relations%i&s can be con.erted into legal &ro&erty suc% as trademarks and brand names< =%e .alue of suc% assets is &rimarily influenced by %ow well t%e com&any sol.es its customersA &roblems, and t%ere is always and element of uncertainty %ere< =%e internal structure family consists of &atents, conce&ts, models, and com&uter and administrati.e systems< =%ese are created by t%e em&loyees and are t%us generally owned by t%e organi5ation< =%e structure is &artly inde&endent of indi.iduals and some of it remains e.en if a large number of t%e em&loyees lea.e< =%e indi.idual com&etence family consists of t%e com&etence of t%e &rofessional staff, t%e e9&erts, t%e researc% and de.elo&ment &eo&le, t%e factory workers, sales ad marketing E in s%ort, all t%ose t%at %a.e a direct contact wit% customers and w%ose work is wit%in t%e business idea< om&etence is a term introduced %ere< om&etence can be defined as t%e sum of knowledge, skills and abilities at t%e indi.idual le.el< Wit% t%is definition, we say t%at knowledge is &art of com&etence, and com&etence is &art of intellectual ca&ital< =%ese t%ree families of intangible resources %a.e slig%tly different definitions w%en com&ared to t%e ca&ital elements< =%e e9ternal structure seems similar to relational ca&ital, t%e internal structure seems similar to structural ca&ital, w%ile t%e indi.idual com&etence seems similar to %uman ca&ital< =o a&&reciate w%y a knowledge(based t%eory of t%e firm can be useful for strategy formulation, +.eiby B2001C considers some of t%e features t%at differentiate knowledge transfers from tangible goods transfers< In contrast to tangible goods, w%ic% tend to de&reciate in .alue w%en t%ey are used, knowledge grows w%en used and de&reciates w%en not used< om&etence in a language or a s&ort reFuires %uge in.estments in training to build u&6 managerial com&etence takes a long time on(t%e( Kob to learn< If one sto&s s&eaking t%e language it gradually dissi&ates< Knowledge =ransfer Wit%in and )etween $amilies of Intangible 3ssets B+.eiby, 2001C !i.en t%ree families of intangible assets, it is &ossible to identify nine knowledge transfers< =%ese knowledge transfers can occur wit%in a family and between families, as illustrated in $igure 2< N o&yrig%t >irtual :ni.ersity of 7akistan 111 19ternal +tructure Indi.idual om&etence 1 # 2 ' Internal +tructure 2 / "Knowledge Management EM!M=(/#0 >: 1ac% of t%e nine knowledge transfers in $igure 2 can be e9&lained as follows B+.eiby, 2001C@ 1< Knowledge transfers between indi.iduals concern %ow to best enable t%e communication between em&loyees wit%in t%e organi5ation< =%e strategic Fuestion is@ 0ow can we im&ro.e t%e transfer of com&etence between &eo&le in t%e organi5ation? 3cti.ities for intellectual ca&ital management focus on trust building, enabling team acti.ities, induction &rograms, Kob rotation and master;a&&rentice sc%eme< 2< Knowledge transfers from indi.iduals to e9ternal structure concern %ow t%e organi5ationAs em&loyees transfer t%eir knowledge to t%e outer world< =%e strategic Fuestion is@ 0ow can t%e organi5ationAs em&loyees im&ro.e t%e com&etence of customers, su&&liers and ot%er stake%olders? 3cti.ities for intellectual ca&ital a management focus on enabling t%e em&loyees to %el& customers learn about t%e &roducts, getting rid of red ta&e, enabling Kob rotation wit% customers, %olding &roduct seminars and &ro.iding customer education< #< Knowledge transfers from e9ternal structure to indi.iduals occur w%en em&loyees learn from customers, su&&liers and community feedback t%roug% ideas, new e9&eriences and new tec%nical knowledge< =%e strategic Fuestion is@ 0ow can t%e organi5ationAs customers, su&&liers and ot%er stake%olders im&ro.e t%e com&etence of t%e em&loyees? 3cti.ities for intellectual ca&ital management focus on creating and maintaining good &ersonal relations%i&s between t%e organi5ationAs own &eo&le and t%e &eo&le outside t%e organi5ation< '< Knowledge transfers from com&etence to internal structure concern t%e transformation of %uman ca&ital into more &ermanent structural ca&ital t%roug% documented work routines, intranets and data re&ositories< =%e strategic Fuestion is@ 0ow can we im&ro.e t%e con.ersion from indi.idually %eld com&etence to systems, tools and tem&lates? 3cti.ities for intellectual ca&ital management focus on tools, tem&lates, &rocess and systems so t%ey can be s%ard more easily and efficiently< *< Knowledge transfers from internal structure to indi.idual com&etence is t%e counter&art of t%e abo.e< 4nce com&etence is ca&tured in a system it needs to be made a.ailable to ot%er indi.iduals in suc% a way t%at t%ey im&ro.e t%eir ca&acity to act< =%e strategic Fuestion is@ 0ow we im&ro.e indi.idualsA com&etence by using systems, tools and tem&lates? 3cti.ities for intellectual ca&ital management focus on im&ro.ing %uman com&uter interface of systems, action(based learning &rocesses, simulations and interacti.e e(learning en.ironments< /< Knowledge transfers wit%in t%e e9ternal structure concern w%at customers and ot%ers tell eac% ot%er about t%e ser.ice of an organi5ation< =%e strategic Fuestion is@ 0ow can we enable t%e con.ersations among t%e customers, su&&liers and ot%er stake%olders so t%ey im&ro.e t%eir com&etence? 3cti.ities for intellectual ca&ital management focus on &artnering and alliances, im&ro.ing t%e image of t%e organi5ation and t%e brand eFuity of its &roducts and ser.ice, im&ro.ing t%e Fuality of t%e offering, and conducting &roduct seminars and alumni &rograms< "< Knowledge transfers from e9ternal to internal structure concern w%at knowledge t%e organi5ation can gain from t%e e9ternal world and %ow t%e learning can be con.erted into action< =%e strategic Fuestion is@ 0ow can com&etence from t%e customers, su&&liers and ot%er stake%olders im&ro.e t%e organi5ationAs systems, tools, &rocesses and &roducts? 3cti.ities for intellectual ca&ital management focus on em&owering call centers to inter&ret customer com&laints, creating alliances to generate ideas for new &roducts and researc% and de.elo&ment alliances< 2< Knowledge transfers from internal to e9ternal structure is t%e counter&art of t%e abo.e< =%e strategic Fuestion is@ 0ow can t%e organi5ationAs systems, tools and &rocesses and &roducts im&ro.e t%e com&etence of t%e customers, su&&liers and ot%er stake%olders? 3cti.ities for intellectual ca&ital management focus on making t%e organi5ationAs systems, tools and &rocesses effecti.e in ser.icing t%e customer, e9tranets, &roduct tracking, %el& desks and e(business< 8< Knowledge transfers wit%in t%e internal structure in w%ic% t%e internal structure is t%e backbone of t%e organi5ation< =%e strategic Fuestion is@ 0ow can t%e organi5ationAs systems, tools, &rocesses and &roducts be effecti.ely integrated? 3cti.ities for intellectual ca&ital management focus on streamlining databases, building integrated information tec%nology systems and im&ro.ing t%e office layout<
N o&yrig%t >irtual :ni.ersity of 7akistan 112Knowledge Management EM!M=(/#0 >: -1++4N 21 +=R3=1!I 71R+71=I>1 4$ KN4W-1D!1 3ND +=R3=1!I +044- 377R430 IN KM +trategic >iew of knowledge )usiness strategy %as traditionally focused on &roduces and ser.ices to gain com&etiti.e ad.antage< Recent work in t%e area of strategic management and economic t%eory %as begun to focus on t%e internal side of t%e eFuation E t%e firmAs resources and ca&abilities< =%is new &ers&ecti.e is referred to as t%e resource(based t%eory of t%e firm< 3ccording to t%e resource(based t%eory of t%e firm, &erformance differences across firms can be attributed to t%e .ariance in t%e firmsA resources and ca&abilities< Resources t%at are .aluable, uniFue, and difficult to imitate can &ro.ide t%e basis for firmsA com&etiti.e ad.antages< In turn, t%ese com&etiti.e ad.antages &roduce &ositi.e returns< =%e essence of t%e resource(based t%eory of t%e firm lies in its em&%asis on t%e internal resources a.ailable to t%e firm, rat%er t%an on t%e e9ternal o&&ortunities and t%reats dictated by industry conditions< $irms are considered to be %ig%ly %eterogeneous, and t%e bundles of resources a.ailable to eac% firm are different< =%is is bot% because firms %a.e different initial resource endowments and because managerial decisions affect resource accumulation and t%e direction of firm growt% as well as resource utili5ation< =%e resource(based t%eory is a useful &ers&ecti.e in strategic management< =%e resource(based t%eory of t%e firm %olds t%at, in order to generate sustainable com&etiti.e ad.antage, a resource must &ro.ide economic .alue and must be &resently scarce, difficult to imitate, non(substitutable, and not readily obtainable in factor markets< =%is t%eory rests on two key &oints@ first, t%at resource are t%e determinants of firm &erformance, and second, t%at resources must be rare, .aluable, difficult to imitate and non(substitutable by ot%er rare resources< W%en t%e latter occurs, a com&etiti.e ad.antage %as been created< Researc% on t%e com&etiti.e im&lications of suc% firm resources as knowledge, learning, culture, teamwork, and %uman ca&ital was gi.en a significant boost by resource(based t%eory E a t%eory t%at indicated it was t%ese kinds of resources t%at were most likely to be source of sustainable com&etiti.e ad.antage for firms< $irmsA resource endowments, &articularly intangible resources, are difficult to c%ange e9ce&t o.er t%e long term< $or e9am&le, alt%oug% %uman resources may be mobile to some e9tent, ca&abilities may not be .aluable for all firms or e.en for t%eir com&etitors< +ome ca&abilities are based on firm(s&ecific knowledge, and ot%ers are .aluable w%en integrated wit% additional indi.idual ca&abilities and s&ecific firm resources< =%erefore, intangible resources are more likely t%an tangible resources to &roduce a com&etiti.e ad.antage< In &articular, intangible firm( s&ecific resources suc% as knowledge allow firms to add .alue to incoming factors of &roduction< Knowledge 3s 3 +trategic Resource =%e knowledge(based .iew of t%e firm argues t%at t%e &roducts and ser.ices &roduced by tangible resources de&end on %ow t%ey are combined and a&&lied, w%ic% is a function of t%e firmAs know( %ow< =%is knowledge is embedded in and carried t%roug% indi.idual em&loyees as well as entities suc% as organi5ation culture and identity, routines, &olicies, systems, and documents< =%e knowledge(based .iew of t%e firm &osits t%at t%ese knowledge assets may &roduce long(term sustainable com&etiti.e ad.antage for t%e organi5ation because knowledge(based resources are socially com&le9 to understand and difficult to imitate by anot%er organi5ation< om&anies %a.ing su&erior knowledge, %owe.er, are able to coordinate and combine t%eir traditional resources and ca&abilities in new and distincti.e ways, &ro.iding more .alue for t%eir customers t%an can t%eir com&etitors< =%at is, by %a.ing su&erior intellectual resources, an organi5ation can understand %ow to e9&loit and de.elo& t%eir traditional resources better t%an com&etitors, e.en if some or all of t%ose traditional resources are not uniFue< =%erefore, knowledge can be considered t%e most im&ortant strategic resource, and t%e ability to acFuire, integrate, store, s%are and a&&ly it t%e most im&ortant ca&ability for building and sustaining com&etiti.e ad.antage< =%e broadest .alue &ro&osition, t%en, for engaging in knowledge management is t%at it can en%ance t%e organi5ationAs fundamental ability to com&ete< -ong(term sustainable com&etiti.e ad.antage comes from t%e firmAs ability to effecti.ely a&&ly t%e e9isting knowledge to create new knowledge and to take action t%at forms t%e basis for ac%ie.ing N o&yrig%t >irtual :ni.ersity of 7akistan 11#Knowledge Management EM!M=(/#0 >: com&etiti.e ad.antage from knowledge(based assets< =%e knowledge e9isting at any gi.en time &er se is not sufficient to form suc% a basis for long term sustainable com&etiti.e ad.antage< Knowledge(based com&etiti.e ad.antage is also sustainable because t%e more a firm already knows, t%e more it can learn< -earning o&&ortunities for an organi5ation t%at already %as a knowledge ad.antage may be more .aluable t%an for com&etitors %a.ing similar learning o&&ortunities but starting off knowledge less< +ustainability may also come from an organi5ation already knowing somet%ing t%at uniFuely com&lements newly acFuired knowledge, w%ic% &ro.ides an o&&ortunity for knowledge synergy not a.ailable to its com&etitors< New knowledge is integrated wit% e9isting knowledge to de.elo& uniFue insig%ts and crate e.en more .aluable knowledge< 4rgani5ations s%ould t%erefore seek areas of learning and e9&erimentation t%at can &otentially and .alue to t%eir e9isting knowledge .ia synergistic combination< +ustainability of knowledge ad.antage, t%en, comes from knowing more about some t%ings t%an com&etitors, combined wit% t%e time constraints faced by com&etitors in acFuiring similar knowledge, regardless of %ow muc% t%ey in.est to catc% u&< =%is re&resents w%at economists call increasing returns< :nlike traditional &%ysical goods t%at are consumed as t%ey are used B&ro.iding decreasing returns o.er timeC, knowledge &ro.ides increasing returns as it is used< =%e more it is used, t%e more .aluable it becomes creating a self reinforcing cycle< If an organi5ation can identify areas w%ere its knowledge leads t%e com&etition, and if t%at uniFue knowledge can be a&&lied &rofitably in t%e market&lace, it can re&resent a &owerful and sustainable com&etiti.e ad.antage< 4rgani5ations s%ould stri.e to us t%eir learning e9&eriences to build on or com&lement knowledge &ositions t%at &ro.ide a current or future com&etiti.e ad.antage< +ystematically ma&&ing, categori5ing, and benc%marking organi5ational knowledge not only can %el& make knowledge more accessible t%roug%out an organi5ation, but by using a knowledge ma& to &rioriti5e and focus its learning e9&eriences, an organi5ation can create greater le.erage for its learning efforts< It can combine its learning e9&eriences into a critical learning mass around &articular strategic areas of knowledge< W%ile a knowledge ad.antage may be sustainable, building a defensible com&etiti.e knowledge &osition internally is a long(term effort, reFuiring foresig%t and &lanning as well as luck< -ong lead(time e9&lains t%e attraction of strategic alliances and ot%er forms of e9ternal .entures as &otentially Fuicker means for gaining access to knowledge< It also e9&lains w%y t%e strategic t%reat from tec%nological discontinuity tends to come from firms outside of or &eri&%eral to an industry< New entrants often enKoy a knowledge base different t%an t%at of incumbents, one t%at can be a&&lied to t%e &roducts and ser.ices of t%e industry under attack< =%is %as been es&ecially e.ident in industries in w%ic% analog &roducts are gi.ing way to digital eFui.alents< Knowledge %as a strategic role if uniFue firm knowledge can successfully be a&&lied to .alue( creating tasks and if it can be used to ca&itali5e on e9isting business o&&ortunities< +ince com&etitors in de.elo&ing t%eir own sur.i.al strategies, are likely to benc%mark t%emsel.es against t%e industry leader to le.el out &erformance, knowledge must be difficult to imitate< -ooking strategically, let us make distinctions once again between data, information, knowledge and wisdom@
J Data are letters and numbers wit%out meaning< Data are inde&endent, isolated measurements, c%aracters, numerical c%aracters and symbols< J Information is data t%at are included in a conte9t t%at makes sense< $or e9am&le, '0 degrees can %a.e different meanings de&ending on t%e conte9t< =%ere can be a medical geogra&%ical or tec%nical conte9t< If a &erson %as '0 degrees elsius in fe.er, t%at is Fuite serious< If a city is located '0 degrees nort%, we know t%at it is far sout% of Norway< If an angle is '0 degrees, we know w%at it looks like< Information is data t%at make sense, because is can be understood correctly< 7eo&le turn data into information by organi5ing it into some unit of analysis, for e9am&le, dollars, dates, or customers< Information is data endowed wit% rele.ance and &ur&ose< J Knowledge is information combined wit% e9&erience, conte9t, inter&retation and reflection< Knowledge is a renewable resource t%at can be used o.er and o.er, and t%at accumulates in an organi5ation t%roug% use and combination wit% em&loyeesO e9&erience< 0umans %a.e knowledge6 knowledge cannot e9ist outside t%e %eads of indi.iduals in t%e com&any< Information becomes knowledge w%en it enters t%e %uman brain< =%is knowledge transforms N o&yrig%t >irtual :ni.ersity of 7akistan 11'Knowledge Management EM!M=(/#0 >: into information again w%en it is articulated and communicated to ot%ers< Information is an e9&licit re&resentation of knowledge6 it is in itself not knowledge< Knowledge can be trut%s and lies, &ers&ecti.es and conce&ts, Kudgments and e9&ectations< Knowledge is used to recei.e information by combining, &rioriti5ing and decision making6 and by &lanning, im&lementing and controlling< J Wisdom is knowledge combined wit% learning insig%ts and Kudgmental abilities< Wisdom is more difficult to e9&lain t%an knowledge, since t%e le.els of conte9t become e.en more &ersonal, and t%us t%e %ig%er(le.el nature of wisdom renders it more obscure t%an knowledge< W%ile knowledge is mainly sufficiently generali5ed solutions, wisdom is best t%oug%t of as sufficiently generali5ed a&&roac%es and .alues t%at can be a&&lied in numerous and .aried situations< Wisdom cannot be created like data and information, and cannot be s%ared wit% ot%ers like knowledge< )ecause t%e conte9t is so &ersonal, it becomes almost e9clusi.e to our own minds and incom&atible wit% t%e minds of ot%ers wit%out e9tensi.e transaction< =%is transaction reFuires not only a base of knowledge and o&&ortunities for e9&eriences t%at %el& create wisdom, but also t%e &rocesses of intros&ection, retros&ection, inter&retation and contem&lation< We can .alue wisdom in ot%ers, but we can only create it oursel.es< In our resource(based &ers&ecti.e of knowledge, data are raw numbers and facts, information is &rocessed data, and knowledge is information combined wit% %uman t%oug%ts< Knowledge is t%e result of cogniti.e &rocessing triggered by t%e inflow of new stimuli< Information is con.erted to knowledge once it is &rocessed in t%e mind of indi.iduals, and t%e knowledge becomes information once it is articulated and &resented to ot%ers< 3 significant im&lication of t%is .iew of knowledge is t%at for indi.iduals to arri.e at t%e same understanding of information, t%ey must s%are t%e same knowledge framework< =%e Knowledge(+trategy -ink =%e traditional +W4= framework, u&dated to reflect todayOs knowledge( intensi.e en.ironment, &ro.ides a basis for describing a knowledge strategy< In essence, firms need to &erform a knowledge( based +W4= analysis, ma&&ing t%eir knowledge resources and ca&abilities against t%eir strategic o&&ortunities and t%reats to better understand t%eir &oints of ad.antage and weakness< =%ey can use t%is ma& to strategically guide t%eir knowledge management efforts, bolstering t%eir knowledge ad.antages and reducing t%eir knowledge weak(nesses< Knowledge strategy, t%en, can be t%oug%t of as balancing knowledge(based resources and ca&abilities wit% t%e knowledge reFuired for &ro.iding &roducts or ser.ices in ways su&erior to t%ose of com&etitors< Identifying w%ic% knowledge(based resources and ca&abilities are .aluable, uniFue, and inimitable as well as %ow t%ose resources and ca&abilities su&&ort t%e firmOs &roduct and market &ositions are essential elements of a knowledge strategy B[ack, 1<888C< =o e9&licate t%e link between strategy and knowledge, an organi5ation must articulate its +trategic intent, identify t%e knowledge reFuired to e9ecute its intended strategy, and com&are t%at to its actual knowledge, t%us re.ealing its strategic knowledge ga&s B[ack, 1888C< 1.ery firm com&etes in a &articular way(o&erating wit%in some industry and ado&ting com&etiti.e &osition wit%in t%at industry <om&etiti.e strategy may result from an e9&licit grand decision (t%e traditional &ers&ecti.e on strategy (or from an accumulation of smaller incremental decisions< It may e.en be re.ealed in %indsig%t, by looking back on actual be%a.iors and e.ents o.er time<< Regardless of t%e strategy formation &rocess, organi5ations %a.e a de facto strategy t%at must first be articulated B[ack, 1888C< 1.ery strategic &osition is linked to some set of intellectual resources and ca&abilities< =%at is, gi.en w%at t%e firm belie.es it must do to com&ete, t%ere are some t%ings it must know and know %ow to do< =%e strategic c%oices t%at com&anies make (regarding tec%nologies, &roducts, ser.ices, markets, and &rocesses (%a.e a &rofound influence on t%e knowledge, skills, and core com&etencies reFuired to com&ete and e9cel in an industry B[ack, 1888C< 4n t%e ot%er %and, w%at a firm does know and knows %ow to do limits t%e ways it can actually com&ete< =%e firm, gi.en w%at it knows, must identify t%e best &roduct and market o&&ortunities for e9&loiting t%at knowledge< =%e firm Os e9isting knowledge creates an o&&ortunity and a constraint on N o&yrig%t >irtual :ni.ersity of 7akistan 11*Knowledge Management EM!M=(/#0 >: selecting .iable com&etiti.e &ositions, w%ile t%e firm O s selected com&etiti.e &osition creates a knowledge reFuirement< +uccess reFuires dynamically aligning knowledge(based reFuirements and ca&abilities B[ack, 1888C< 3ssessing an organi5ationOs knowledge &osition reFuires cataloging its e9isting intellectual resources by creating w%at is commonly called a knowledge ma&< Knowledge can be c%aracteri5ed in many ways< 7o&ular ta9onomies distinguis% between tacit and e9&licit knowledge, general and situated conte9t s&ecific knowledge, and indi.idual and collecti.e knowledge< Knowledge can also be categori5ed by ty&e, including declarati.e Bknowledge aboutC, &rocedural Bknow(%owC, and causal Bknow(w%yC, conditional Bknow w%enC, and relational Bknow(wit%C< W%ile t%ese distinctions are useful for ma&&ing and managing I knowledge at t%e &rocess le.el once a knowledge strategy %as been formulated, our &ur&ose reFuires knowledge ta9onomy oriented towards strategy and w%ic% reflects t%e com&etiti.e uniFueness of eac% organi5ation B[ack, 1888C< ategori5ing or describing w%at a business firm knows and must know about its industry or com&etiti.e &osition is not easy< 3lt%oug% firms wit%in &articular industries, firms maintaining similar com&etiti.e &ositions, or t%ose em&loying similar tec%nologies and ot%er resources often s%are some common knowledge, t%ere are no sim&le answers regarding w%at a firm must know to be com&etiti.e if t%ere were, t%e t%ere would be no sustainable ad.antage B[ack, 1888C< 3 ty&ical com&any de.elo&s an a&&roac% to describing and classifying its strategic or com&etiti.e knowledge t%at is in some ways uniFue< In fact, eac% firmOs general awareness of and orientation to t%e link between knowledge and strategy tends to be somew%at uniFue and may, itself, re&resent an ad.antage< Regardless of %ow knowledge is categori5ed based on content, e.ery firmOs strategic knowledge can be categori5ed by its ability to su&&ort a com&etiti.e &osition< +&ecifically, knowledge can be classified according to w%et%er it is core, ad.anced, or inno.ati.e B[ack, 1888C< Knowledge is not static and w%at is inno.ati.e knowledge today will ultimately become t%e core knowledge of tomorrow< =%us defending and growing a com&etiti.e &osition reFuires continual learning and knowledge acFuisition< =%e ability of an organi5ation to learn, accumulate knowledge from its e9&eriences, and rea&&ly t%at knowledge is itself a skill or com&etence t%at(beyond t%e core com&etencies directly related to deli.ering its &roduct or ser.ice (may &ro.ide strategic ad.antage B[ack, 1888C< 3lt%oug% knowledge is dynamic, t%e strategic knowledge framework in $igure below offers t%e ability to take a sna&s%ot of w%ere t%e firm is today .is(a(.is its desired strategic knowledge &rofile Bto assess its e9ternal knowledge ga&sC< 3dditionally, it can be used to &lot t%e %istorical &at% and future traKectory of t%e firmOs knowledge< =%e framework may be a&&lied by area of com&etency or, taking a more traditional strategic &ers&ecti.e, by strategic business unit, di.ision, &roduct line, function, or market &osition< Regardless of t%e &articular way ea<c% firm categori5es its knowledge, eac% category can be furt%er broken down into elements t%at are core, com&etiti.e, or inno.ati.e to &roduce a strategic knowledge ma& B[ack, 1888C< 0a.ing ma&&ed t%e firmAs com&etiti.e knowledge &osition, an organi5ation can &erform a ga& analysis< =%e ga& between w%at a firm must do to com&ete and w%at it actually is doing re&resents a strategic ga&< 3ddressing t%is ga& is t%e stuff of traditional strategic management< 3s suggested by t%e +W4= frame(work, strengt%s and weaknesses re&resent w%at t%e firm can do6 o&&ortunities and t%reats dictate w%at it must do< +trategy, t%en, re&resents %ow t%e firm balances its com&etiti.e cans and musts to de.elo& and &rotect its strategic nic%e B[ack, 1888C< N o&yrig%t >irtual :ni.ersity of 7akistan 11/Knowledge Management EM!M=(/#0 >: +trategic Knowledge $ramework 3t t%e same time, underlying a firmOs strategic ga& is a &otential knowledge ga&< =%at is, gi.en a ga& between w%at a firm must do to com&ete and w%at it can do, t%ere may also be a ga& between w%at t%e firm must know to e9ecute its strategy and w%at it does know< )ased on a strategic knowledge and ca&abilities ma&, an organi5ation can identify t%e e9tent to w%ic% its .arious categories of e9isting knowledge are in alignment wit% its strategic reFuirements< =%e result is a set of &otential knowledge ga&s< In some cases, an organi5ation mig%t e.en know more t%an needed to su&&ort its com&etiti.e &osition< Ne.ert%eless, a knowledge strategy must address any &ossible misalignments< =%e greater t%e number, .ariety, or si5e of t%e current and future knowledge ga&s, and t%e more .olatile t%e knowledge base because of a dynamic or uncertain com&etiti.e en.ironment, t%e more aggressi.e t%e knowledge strategy reFuired< 3 firm not ca&able of e9ecuting its intended or reFuired strategy must eit%er align its strategy wit% its ca&abilities or acFuire t%e ca&abilities to e9ecute its strategy B[ack, 1888C< Knowledge !a& Deri.ed $rom and 3ligned wit% +trategic )usiness !a& 0a.ing &erformed a strategic e.aluation of its knowledge(based resources and ca&abilities, an organi5ation can determine w%ic% knowledge s%ould be de.elo&ed or acFuired< =o gi.e knowledge management a strategic focus, t%e firmAs knowledge management initiati.es s%ould be directed toward closing t%is strategic knowledge ga&< =%e im&ortant issue is t%at t%e knowledge ga& is directly deri.ed from and aligned wit% t%e strategic ga&, as illustrated abo.e< =%is simultaneous alignment of strategy and knowledge management efforts are di.orced from strategic &lanning and e9ecution< 0owe.er, %a.ing an a&&ro&riate knowledge strategy in &lace is essential for assuring t%at knowledge management efforts are being dri.en by and are su&&orting t%e firmAs com&etiti.e strategy B[ack, 1888C<
N o&yrig%t >irtual :ni.ersity of 7akistan 11" W%at t%e firm must know W%at t%e firm must do W%at t%e firm does W%at t%e firm knows Knowledge !a& )usiness !a& urrent Knowledge()usiness -ink $uture Knowledge()usiness -ink Inno.ator -eader om&etitor -eader om&etitor Imitator om&etitor Imitator -oser Inno.ati.e Knowledge 3d.anced Knowledge ore Knowledge ore Knowledge 3d.anced Knowledge Inno.ati.e Knowledge om&etitorsA le.el of knowledgeKnowledge Management EM!M=(/#0 >: =%e +trategic +c%ool 7ers&ecti.e =%e strategic sc%ool sees knowledge management as a dimension of com&etiti.e strategy< Indeed, it may be seen as t%e essence of a firmAs strategy< 3&&roac%es to knowledge management are de&endent on management &ers&ecti.e< N o&yrig%t >irtual :ni.ersity of 7akistan 112Knowledge Management EM!M=(/#0 >: -1++4N 22 +=R3=1!I +044-@ +=4K, $-4W, 3ND !R4W=0 +=R3=1!M IN KM =%e +trategic +c%ool =%e strategic sc%ool sees knowledge management as a dimension of com&etiti.e strategy< Indeed, it may be seen as t%e essence of a firmAs strategy< 3&&roac%es to knowledge management are de&endent on management &ers&ecti.e< Distinctions can be made between t%e information(based &ers&ecti.e, t%e tec%nology(based &ers&ecti.e and t%e culture(based &ers&ecti.e@ J Information(based &ers&ecti.e is concerned wit% access to information< I %a.e a &roblem, and I am looking for someone in t%e organi5ation w%o %as knowledge t%at can sol.e my &roblem< J =ec%nology(based &ers&ecti.e is concerned wit% a&&lications of information tec%nology< We %a.e all t%is %ardware and software in t%e firm@ %ow can we use t%is tec%nology to systemati5e, store and distribute information to knowledge workers? J ulture(based &ers&ecti.e is concerned wit% knowledge s%aring< We are an organi5ation because di.ision of labor makes us more efficient and because we can draw on eac% ot%erAs e9&ertise< 3ll t%ree &ers&ecti.es belong in a knowledge management &roKect to be successful< 0owe.er, t%e main focus may .ary de&ending on cor&orate situation< If rein.enting t%e w%eel all t%e time is t%e big &roblem, t%en t%e information(based &ers&ecti.e s%ould dominate &roKect focus< If t%e tec%nology in t%e firm is unable to &ro.ide e.en basic ser.ices to knowledge users, t%en t%e tec%nology(based &ers&ecti.e s%ould dominate &roKect focus< If knowledge workers are isolated and reluctant to s%are knowledge, t%en t%e culture(based &ers&ecti.e s%ould dominate &roKect focus< odification and 7ersonali5ation +trategy +ome com&anies automate knowledge management, w%ile ot%er rely on t%eir &eo&le to s%are knowledge t%roug% more traditional means< In some com&anies, t%e strategy centers on t%e com&uter< Knowledge is carefully codified and stored in databases, w%ere it can be accessed and used easily by anyone in t%e com&any< =%ese com&anies %a.e de.elo&ed elaborate ways to codify, store and reuse knowledge< Knowledge is codified using a &eo&le(to(documents a&&roac%@ it is e9tracted from t%e &erson w%o de.elo&ed it, made inde&endent of t%at &erson, and reused for .arious &ur&oses< Knowledge obKects are de.elo&ed by &ulling key &ieces of knowledge suc% as inter.iew guides, work sc%edules, benc%mark data, and market segmentation analysis out of documents and storing t%em in t%e electronic re&ository for &eo&le to use< =%is a&&roac% allows many &eo&le to searc% for and retrie.e codified knowledge wit%out %a.ing to contact t%e &erson w%o originally de.elo&ed it< =%at o&ens u& t%e &ossibility of ac%ie.ing scale in knowledge reuse and t%us of growing t%e business< 0ansen et al< B1888C call t%is t%e codification strategy for managing knowledge< In ot%er com&anies, knowledge is closely tied to t%e &erson w%o de.elo&ed it and is s%ared mainly t%roug% direct &erson(to(&erson contacts< =%e c%ief &ur&ose of com&uters at suc% com&anies is to %el& &eo&le communicate knowledge, not to store it< =%ese com&anies focus on dialogue between indi.iduals, not knowledge obKects in a database< Knowledge t%at %as not been codified is transferred in barnstorming sessions and one(on(one con.ersations< Knowledge workers collecti.ely arri.e at dee&er insig%ts by going back and fort% on &roblems t%ey need to sol.e< =%ese com&anies in.est %ea.ily in building networks of &eo&le< Knowledge is s%ared not only face(to(face, but also o.er t%e tele&%one, by email, and .ia .ideo conferences< Networks can be fostered in many ways@ by transferring &eo&le between offices, by su&&orting a culture in w%ic% knowledge workers are e9&ected to return &%one calls from colleagues &rom&tly, by creating directories of e9&erts, and by using knowledge managers wit%in t%e firm to assist &roKect teams< =%ese firms may also %a.e de.elo&ed electronic document systems, but t%e &ur&ose of t%e systems is not to &ro.ide knowledge obKects< Instead, knowledge workers scan documents to get u& to s&eed in a &articular area and to find out w%o %as done work on a to&ic< =%ey t%en a&&roac% t%ose directly< 0ansen et al< B1888C call t%is t%e &ersonali5ation strategy for managing knowledge< N o&yrig%t >irtual :ni.ersity of 7akistan 118Knowledge Management EM!M=(/#0 >: odification and &ersonali5ation strategy can be contrasted wit% eac% ot%er using criteria suc% as com&etiti.e strategy, economic model, knowledge management strategy, information tec%nology and %uman resources< =%e com&etiti.e strategy by codification is to &ro.ide %ig% Fuality, reliable, and fast information(systems im&lementation by reusing codified knowledge< =%e com&etiti.e strategy by &ersonali5ation is to &ro.ide creati.e, analytically rigorous ad.ice on %ig%(le.el strategic &roblems by c%anneling indi.idual e9&ertise< =%e economic model for codification strategy can be labeled reuse economics, w%ile t%e economic model for &ersonali5ation can be labeled e9&ert economics< Reuse economics im&lies in.esting once in a knowledge asset, and t%en reusing it many times< 19&ert economics im&lies c%arging %ig% fees for %ig%ly customi5ed solutions to uniFue &roblems< Knowledge management strategy will eit%er be &eo&le(to(documents for codification or &erson(to( &erson for &ersonali5ation< 7eo&le(to(documents im&lies de.elo&ing an electronic document system t%at codifies, stores, disseminates, and allows reuse of knowledge< 7erson(to(&erson im&lies de.elo&ing networks for linking &eo&le so t%at tacit knowledge can be s%ared< )y codification, t%e com&any in.ests %ea.ily in I=, w%ere t%e goal is to connect &eo&le wit% reusable codified knowledge< )y &ersonali5ation, t%e com&any in.ests moderately in I=, w%ere t%e goal is to facilitate con.ersations and e9c%ange of tacit knowledge< )y codification, t%e %uman resource a&&roac% will be concerned wit% training &eo&le in grou&s and t%roug% com&uter(based distance learning< )y &ersonali5ation, t%e %uman resource a&&roac% will be concerned wit% training &eo&le t%roug% one(on(one mentoring< 0ow do com&anies c%oose t%e rig%t strategy for managing knowledge? om&etiti.e strategy must dri.e knowledge management strategy< 19ecuti.es must be able to articulate w%y customers buy a com&anyAs &roducts or ser.ices rat%er t%an t%ose of its com&etitors< W%at .alue do customers e9&ect from com&any? 0ow does knowledge t%at resides in t%e com&any add .alue for customers? 3ssuming t%e com&etiti.e strategy is clear, managers will want to consider t%ree furt%er Fuestions t%at can %el& t%em c%oose a &rimary knowledge management strategy< =%e t%ree Fuestions de.elo&ed by 0ansen et al< B1888C are concerned wit% standardi5ed .ersus customi5ed &roducts, mature or inno.ati.e &roducts, and e9&licit .ersus tacit knowledge< =%e first Fuestion is@ Do you offer standardi5ed or customi5ed &roducts? om&anies t%at offer standardi5ed &roducts will fit t%e codification strategy, w%ile com&anies t%at offer customi5ed &roducts will fit t%e &ersonali5ation strategy< =%e second Fuestion is@ Do you %a.e mature or inno.ati.e &roducts? om&anies t%at offer mature &roducts will fit t%e codification strategy, w%ile com&anies t%at offer inno.ati.e &roducts will fit t%e &ersonali5ation strategy< =%e final Fuestion is@ Do your &eo&le rely on e9&licit or tacit knowledge to sol.e &roblems? 19&licit knowledge is knowledge t%at can be codified, suc% as sim&le software code and market data< W%en a com&anyAs em&loyees rely on e9&licit knowledge to do t%eir work, t%e &eo&le(to(documents a&&roac% makes t%e most sense< =acit knowledge, by contrast, is difficult to articulate in writing and is acFuired t%roug% &ersonal e9&erience< It includes scientific e9&ertise, o&erational know(%ow, and insig%ts about an industry, business Kudgment, and tec%nological e9&ertise< W%en &eo&le use tacit knowledge most often to sol.e &roblems, t%e &erson(to(&erson a&&roac% works best< 0ansen et al< B1888C stress t%at &eo&le need incenti.es to &artici&ate in t%e knowledge s%aring &rocess< =%e two knowledge management strategies call for different incenti.e systems< In t%e codification model, managers need to de.elo& a system t%at encourages &eo&le to write down w%at t%ey know and to get t%ose documents into t%e electronic re&ository< 3nd real incenti.es E not small enticements E are reFuired to get &eo&le to take t%ose ste&s< =%e le.el and Fuality of em&loyeesA contributions to t%e document database s%ould be &art of t%eir annual &erformance re.iew< Incenti.es to stimulate knowledge s%aring s%ould be .ery different at com&anies t%at are following t%e &ersonali5ation a&&roac%< Managers need to reward &eo&le for s%aring knowledge directly wit% ot%er &eo&le< +tock, flow and !rowt% +trategy 3&&roac%es to knowledge management are de&endent on knowledge focus in t%e organi5ation< Distinctions can be made between e9&ert(dri.en business, e9&erience(dri.en business and efficiency( dri.en business@ J 19&ert(dri.en business sol.es large, com&le9, risky, new and unusual &roblems for customers< om&etiti.e ad.antage is ac%ie.ed t%roug% continuous im&ro.isation and inno.ation< N o&yrig%t >irtual :ni.ersity of 7akistan 120Knowledge Management EM!M=(/#0 >: Knowledge workers a&&ly general %ig%(le.el knowledge to understand, sol.e and learn< -earning from &roblem sol.ing is im&ortant to be able to sol.e t%e ne9t new and unknown &roblem for customers< 3n e9&ert(dri.en business is c%aracteri5ed by bot% new &roblems and new met%ods for solution< J 19&erience(dri.en business sol.es large and com&licated &roblems for customers< =%e &roblems are new, but t%ey can be sol.ed wit% e9isting met%ods in a s&ecific conte9t e.ery time< om&etiti.e ad.antage is ac%ie.ed t%roug% effecti.e ada&tation of e9isting &roblem sol.ing met%odologies and tec%niFues< ontinuous im&ro.ement in effecti.eness is im&ortant to be able to sol.e t%e ne9t &roblem for customers< 3n e9&erience(based business is c%aracteri5ed by new &roblems and e9isting met%ods for solution< J 1fficiency(dri.en business sol.es known &roblems< =%e Fuality of t%e solution is found in fast and ine9&ensi.e a&&lication to meet customer needs< om&etiti.e ad.antage is ac%ie.ed in t%e ability to make small adKustments in e9isting goods and ser.ices at a low &rice< 3n efficiency( dri.en business is c%aracteri5ed by known &roblems and known met%ods for solution< $ew knowledge(intensi.e firms are only acti.e in one of t%ese businesses< Most firms are acti.e in se.eral of t%ese businesses< $or e9am&le, medical doctors in a %os&ital are mainly in t%e e9&erience( dri.en business of sol.ing new &roblems wit% known met%ods< +ometimes, t%ey are in t%e e9&ert( dri.en business of sol.ing new &roblems wit% new met%ods< +imilarly, lawyers in a law firm are often in t%e e9&ert(dri.en business, but most of t%e time in t%e e9&erience(dri.en business< In some engineering firms, engineers are often in t%e efficiency(dri.en business, but most of t%e time in t%e e9&erience( based business< Knowledge focus will be different in e9&ert(dri.en, e9&erience(dri.en and efficiency(dri.en businesses< In t%e e9&ert(dri.en business, learning is im&ortant, w%ile &re.ious knowledge becomes obsolete< In t%e efficiency(based business, all knowledge concerning bot% &roblems and solutions is im&ortant in an accumulation of knowledge to im&ro.e efficiency< =%ese differences lead us to make distinctions between t%e following t%ree knowledge management strategies of stock strategy, flow strategy and growt% strategy@ J +tock strategy is focused on collecting and storing all knowledge in information bases in t%e organi5ation< Information is stored in databases and made a.ailable to knowledge workers in t%e organi5ation and in knowledge networks< Knowledge workers use databases to kee& u&dated on rele.ant &roblems, rele.ant met%ods, news and o&inions< Information on &roblems and met%ods accumulate o.er time in databases< =%is strategy can also be called &erson(to( knowledge strategy< J $low strategy is focused on collecting and storing knowledge in information bases in t%e organi5ation as long as t%e information is used in knowledge work &rocesses< If certain kinds of knowledge work disa&&ear, t%en information for t%ose work &rocesses becomes obsolete and can be deleted from databases< =%is is a yellow(&ages strategy in w%ic% information on knowledge areas co.ered by indi.iduals in t%e firm is registered< =%e link to knowledge sources in t%e form of indi.iduals is made s&ecific in t%e databases, so t%at t%e &erson source can be identified< W%en a knowledge worker starts on a new &roKect, t%e &erson will searc% com&any databases to find colleagues w%o already %a.e e9&erience in sol.ing t%ese kinds of &roblems< =%is strategy can also be called &erson(to(&er strategy< J !rowt% strategy is focused on de.elo&ing new knowledge< New knowledge is de.elo&ed in inno.ati.e work &rocesses taking &lace w%en knowledge workers %a.e to sol.e new &roblems wit% new met%ods for customers< 4ften, se.eral &ersons are in.ol.ed in t%e inno.ation, and toget%er t%ey %a.e gone t%roug% a learning &rocess< W%en a knowledge worker starts on a new &roKect, t%e &erson will use t%e intra(organi5ational and inter(organi5ational network to find information on work &rocesses and learning en.ironments t%at colleagues %a.e used successfully in &re.ious inno.ation &rocesses< =%ere is a strong link between t%ese t%ree knowledge management strategies and t%e t%ree alternati.es of e9&ert(dri.en, e9&erience(dri.en and efficiency(dri.e business< In $igure below, c%aracteristics of t%e t%ree strategies are &resented< =y&ically, efficiency(dri.en businesses will a&&ly t%e stock strategy, w%ile e9&erience(dri.en businesses will a&&ly t%e flow strategy, and e9&ert(dri.en business will a&&ly t%e growt% strategy< N o&yrig%t >irtual :ni.ersity of 7akistan 121Knowledge Management EM!M=(/#0 >: %aracteristics of Knowledge Management +trategies %aracteristics +tock strategy $low strategy !rowt% strategy Knowledge focus 1fficiency(dri.en business 19&erience(dri.en business 19&ert(dri.en business Im&ortant &ersons %ief knowledge officer %ief information officer Database engineers %ief knowledge officer 19&erienced knowledge workers Management e9&erts Knowledge base Databases and information systems Information networks Networks of e9&erts, work &rocesses and learning en.ironments Im&ortant elements 3ccess to databases and information systems 3ccess to knowledge s&ace 3ccess to networks of e9&erts and learning en.ironments Management task ollecting information and making it a.ailable onnecting &ersons to e9&erienced knowledge workers 7ro.iding access to networks -earning 1fficiency training a&&lying e9isting knowledge 19&erience accumulation a&&lying e9isting knowledge !rowt% training de.elo&ing new knowledge N o&yrig%t >irtual :ni.ersity of 7akistan 122Knowledge Management EM!M=(/#0 >: -1++4N 2# =01 4R!3NI[3=I4N3- +044- 4$ =04:!0= IN KM =%e 4rgani5ational +c%ool 3ccording to 1arl B2001C, t%e organi5ational sc%ool describes t%e use of organi5ational structures, or networks, to s%are or &ool knowledge< 4ften described as knowledge communities, t%e arc%ety&al arrangement is a grou& of &eo&le wit% a common interest, or &roblem, or e9&erience< =%ese communities are designed and maintained for a business &ur&ose, and t%ey can be intra( or inter organi5ational< In t%e following, a number of a&&roac%es to knowledge management belonging to t%e organi5ational sc%ool are &resented< =%e first a&&roac% is managing common knowledge6 t%e second a&&roac% is t%e sociali5ation e9ternali5ation combination internali5ation B+1IC &rocess< Managing ommon Knowledge Di9on B2000C defines common knowledge as t%e knowledge t%at em&loyees learn from doing t%e organi5ationAs tasks< ommon knowledge is managed t%roug% knowledge transfer mec%anisms< Knowledge transfer in an organi5ation can be defined as t%e &rocess by w%ic% one unit Be<g<, a grou&, de&artment or di.ision0is affected by e9&eriences< 3not%er definition suggests t%at knowledge transfer at t%e indi.idual le.els is %ow knowledge acFuired in one situation a&&lies Knowledge 3rc%itecture for communication in organi5ations J Knowledge arc%itecture can be regarded as a &rereFuisite to knowledge s%aring< J =%e infrastructure can be .iewed as a combination of &eo&le, content, and tec%nology< J =%ese com&onents are inse&arable and interde&endent< =%e 7eo&le ore J )y &eo&le, %ere we mean knowledge workers, managers, customers, and su&&liers< J 3s t%e first ste& in knowledge arc%itecture, our goal is to e.aluate t%e e9isting information; documents w%ic% are used by &eo&le, t%e a&&lications needed by t%em, t%e &eo&le t%ey usually contact for solutions, t%e associates t%ey collaborate wit%, t%e official emails t%ey send;recei.e, and t%e databaseBsC t%ey usually access< J 3ll t%e abo.e stated resources %el& to create an em&loyee &rofile, w%ic% can later be used as t%e basis for designing a knowledge management system< J =%e idea be%ind assessing t%e &eo&le core is to do a &ro&er Kob in case of assigning Kob content to t%e rig%t &erson and to make sure t%at t%e flow of information t%at once was obstructed by de&artments now flows to rig%t &eo&le at rig%t time< J In order to e9&edite knowledge s%aring, a knowledge network %as to be designed in suc% a way as to assign &eo&le aut%ority and res&onsibility for s&ecific kinds of knowledge content, w%ic% means@ N o&yrig%t >irtual :ni.ersity of 7akistan 12#Knowledge Management EM!M=(/#0 >: o Identifying knowledge centers@ 3fter determining t%e knowledge t%at &eo&le need, t%e ne9t ste& is to find out w%ere t%e reFuired knowledge resides, and t%e way to ca&ture it successfully< 0ere, t%e term knowledge center means areas in t%e organi5ation w%ere knowledge is a.ailable for ca&turing< =%ese centers su&&orts to identify e9&ertBsC or e9&ert teams in eac% center w%o can collaborate in t%e necessary knowledge ca&ture &rocess< o 3cti.ating knowledge content satellites =%is ste& breaks down eac% knowledge center into some more manageable le.els, satellites, or areas< o 3ssigning e9&erts for eac% knowledge center@ 3fter t%e final framework %as been decided, one manager s%ould be assigned for eac% knowledge satellite t%at will ensure integrity of information content, access, and u&date< 4wners%i& is a crucial factor in case of knowledge ca&ture, knowledge transfer, and knowledge im&lementation< In a ty&ical organi5ation, de&artments usually tend to be territorial< 4ften, fig%t can occur o.er t%e budget or o.er t%e control of sensiti.e &rocesses Bt%is includes t%e kind of knowledge a de&artment ownsC< =%ese reasons Kustify t%e &rocess of assigning de&artment owners%i& to knowledge content and knowledge &rocess< adKacent;interde&endent de&artments s%ould be coo&erati.e and ready to s%are knowledge< =%e =ec%nical ore J =%e obKecti.e of t%e tec%nical core is to en%ance communication as well as ensure effecti.e knowledge s%aring< J =ec%nology &ro.ides a lot of o&&ortunities for managing tacit knowledge in t%e area of communication< J ommunication networks create links between necessary databases< J 0ere t%e term tec%nical core is meant to refer to t%e totality of t%e reFuired %ardware, software, and t%e s&eciali5ed %uman resources< J 19&ected attributes of tec%nology under t%e tec%nical core@ 3ccuracy, s&eed, reliability, security, and integrity< J +ince an organi5ation can be t%oug%t of as a knowledge network, t%e goal of knowledge economy is to &us% em&loyees towards greater efficiency; &roducti.ity by making best &ossible use of t%e knowledge t%ey &osses< J 3 knowledge core usually becomes a network of tec%nologies designed to work on to& of t%e organi5ationOs e9isting network< Knowledge reation in 4rgani5ations J Knowledge u&date can mean creating new knowledge based on ongoing e9&erience in a s&ecific domain and t%en using t%e new knowledge in combination wit% t%e e9isting knowledge to come u& wit% u&dated knowledge for knowledge s%aring< J Knowledge in organi5ations can be created t%roug% teamwork J 3 team can commit to &erform a Kob o.er a s&ecific &eriod of time< J 3 Kob can be regarded as a series of s&ecific tasks carried out in a s&ecific order< J W%en t%e Kob is com&leted, t%en t%e team com&ares t%e e9&erience it %ad initially Bw%ile starting t%e KobC to t%e outcome Bsuccessful;disa&&ointingC< J =%is com&arison translates e9&erience into knowledge< J W%ile &erforming t%e same Kob in future, t%e team can take correcti.e ste&s and;or modify t%e actions based on t%e new knowledge t%ey %a.e acFuired< J 4.er time, e9&erience usually leads to e9&ertise w%ere one team Bor indi.idualC can be known for %andling a com&le9 &roblem .ery well< J =%is knowledge can be transferred to ot%ers in a reusable format< N o&yrig%t >irtual :ni.ersity of 7akistan 12'Knowledge Management EM!M=(/#0 >: =%ere e9ists factors t%at encourage Bor retardC knowledge transfer< J 7ersonality is one factor in case of knowledge s%aring< J $or e9am&le, e9tro.ert &eo&le usually &osses self(confidence, feel secure, and tend to s%are e9&eriences more readily t%an t%e intro.ert, self(centered, and security(conscious &eo&le< J 7eo&le wit% &ositi.e attitudes, w%o usually trust ot%ers and w%o work in en.ironments conducti.e to knowledge s%aring tends to be better in s%aring knowledge< J >ocational rein forcers are t%e key to knowledge s%aring< J 7eo&le w%ose .ocational needs are sufficiently met by Kob rein forcers are usually found to be more likely to fa.our knowledge s%aring t%an t%e &eo&le w%o are de&ri.ed of one or more rein forcers< N o&yrig%t >irtual :ni.ersity of 7akistan 12*Knowledge Management EM!M=(/#0 >: -1++4N 2' IM74R=3N1 4$ =3I= 3ND 1R7-II= KN4W-1D!1 Knowledge reation 3nd Knowledge 3rc%itecture =est Mour :nderstanding 1< W%at is knowledge creation? Is using t%e new knowledge acFuired from ongoing e9&eriences in a &articular &roblem area, in combination wit% t%e initial knowledge, to come u& wit% e9tended knowledge t%at s%ould im&ro.e t%e Fuality and effecti.eness of &erforming t%e same Kob t%e ne9t time around< 2< 3 Kob is more t%an a task< Do you agree? !i.e an e9am&le< =rue< It is a series of s&ecific tasks carried out in a s&ecific order, format, or seFuence< 19am&le@ =%e Kob of &rocurement coordination reFuires se.eral tasks suc% as B7lanning s%ort(term &urc%ases, creating &rofiles for su&&liers, selecting t%e best su&&lier, tracking orders &rogress, <<<etcC<
#< 0ow is knowledge created and transferred .ia teams? J 1ssentially, a team commits to &erforming a Kob wit% an initial knowledge J =%e team &erforms t%e Kob J Reali5es outcome J om&ares outcome to action Gbefore and afterH J New e9&erience; knowledge is gained J Knowledge ca&tured and re&resented in a form usable by ot%ers J =%is new knowledge is reusable by same team on ne9t Kob '< 19&lain t%e main im&ediments in knowledge s%aring< J 7ersonality J 3ttitude J >ocational rein forcers J Work norms *< 19&lain t%e main ste&s in knowledge transfer< J 3 team gets toget%er wit% initial knowledge< It &erforms a s&ecific Kob J =%e Kob outcome is reali5ed and is com&ared to action J 3 new e9&erience or knowledge is gained J =%e new e9&erience is ca&tured and codified in a form usable by ot%ers J =%e new knowledge is reusable by t%e same team on t%e ne9t Kob< /< In your own words, define tacit knowledge ca&ture< W%at makes it uniFue? Knowledge ca&ture is t%e &rocess of e9tracting t%e knowledge of %ow an e9&ert arri.es at a solution for a &articular &roblem< =%is includes t%e actual ste&s and reasoning in.ol.ed in arri.ing at t%e solution as well as t%e subKecti.e logic t%at an e9&ert uses in addressing t%e &roblem< Knowledge ca&ture is uniFue, in t%at t%e &rocedure does not follow an algorit%mic flow or a &articular synta9 to sol.e a &roblem< N o&yrig%t >irtual :ni.ersity of 7akistan 12/Knowledge Management EM!M=(/#0 >: "< 3re t%ere any &articular ste&s in.ol.ed in knowledge ca&ture? 19&lain briefly< Knowledge ca&ture in.ol.es t%ree ste&s@ :sing an a&&ro&riate tool to elicit t%e information from t%e e9&ert< 19tensi.e inter.iew wit% t%e e9&ert usually accom&lis%es t%is ste&< Inter&reting t%e .erbal information and inferring t%e e9&ertAs underlying knowledge and reasoning &rocess< In t%is ste&, t%e knowledge de.elo&er decides w%ere t%e information gat%ered fits into t%e de.elo&ment &rocess of t%e knowledge(based system< =%roug%out t%e inter.iewing &rocess, t%e knowledge de.elo&er gat%ers information on t%e e9&ertAs rationale for arri.ing at a decision< It is im&ortant t%at t%e knowledge de.elo&er t%oroug%ly Fuestions t%e e9&ert on all angles of t%e &roblem domain< =aking t%e results from ste& two and using it to build t%e rules t%at re&resent t%e e9&ertAs t%oug%t &rocess or solutions< =%is ste& may reFuire se.eral c%ecks to ensure t%e resulting system meets t%e needs of t%e user and %as ca&tured Gt%e e9&ertH as closely as &ossible< $lowc%arts, flow diagrams, decision trees, decision tables, and ot%er gra&%ic re&resentation can be used to de&ict t%e rules for t%e e9&ertAs solution< 2< 0ow would one identify e9&ertise? =%e collection of t%e se.eral indicators of e9&ertise would %el& t%e knowledge de.elo&er identify w%o would be an a&&ro&riate e9&ert for a &roblem domain< =%ese include@ a< !enuine res&ect from &eers wit% regard to t%e e9&ertAs decisions as good decisions b< 7eo&le consult t%e e9&ert w%en a &roblem arises c< 3dmitting to not knowing e.eryt%ing about a &roblem w%ic% demonstrates %is or %er d< confidence and &ro.ides a realistic .iew of limitations, a.oiding irrele.ant information and focusing on t%e facts< e< Working wit% a clear focus f< )eing able to e9&lain t%e information to different audience le.els< g< De&t% of detail and e9ce&tional Fuality in e9&lanations %< Demonstrating no arrogance regarding &ersonal credentials i< Mears of e9&erience K< +trong ties wit% &eo&le in &ower 8< Working wit% e9&erts reFuires certain skills and e9&erience< W%at suggestions or ad.ice would you gi.e to an ine9&erienced knowledge de.elo&er concerning@ a< working wit% or a&&roac%ing an e9&ert b< &reå for t%e first session 3 and b are interrelated in t%e o.erall effort and interactions wit% t%e e9&ertBsC< 3ny knowledge de.elo&er, no matter %ow well e9&erienced, must educate %imself or %erself in t%e e9&ertAs area and be fully &re&ared for t%e knowledge acFuisition &%ase< 7erce&tions are e9tremely im&ortant in knowledge ca&ture< If t%e 10< Working wit% multi&le e9&erts %as definite benefits and limitations< ite an e9am&le in w%ic% t%e use of multi&le e9&erts is a must< 19&lain your c%oice< 3n e9am&le in w%ic% t%e user of multi&le e9&erts is a must could be for de.elo&ment of a knowledge( based system to &redict t%e ne9t direction of a gi.en stock on t%e New Mork +tock 19c%ange< =%e reasons you would need multi&le e9&erts are t%e com&le9ity of t%e &roblem domain, listening to a .ariety of .iews on stock e9c%ange t%eory and be%a.ior before attem&ting an a&&roac% or a solution< Wit% t%is e9am&le, t%ere is no single indi.idual w%o is an e9&ert in all as&ects of t%e com&any stocks or t%e stock e9c%ange or e.en t%e economy< N o&yrig%t >irtual :ni.ersity of 7akistan 12"Knowledge Management EM!M=(/#0 >: -1++4N 2* +1I 7R41++ 3ND )3 $4R K< R13=I4N NonakaOs Model of Knowledge reation L =ransformation In 188*, Nonaka coined t%e terms tacit knowledge and e9&licit knowledge as t%e two main ty&es of %uman knowledge< =%e key to knowledge creation lies in t%e way it is mobili5ed and con.erted t%roug% tec%nology< J =acit to tacit communication B+ociali5ationC@ =akes &lace between &eo&le in meetings or in team discussions< J =acit to e9&licit communication B19ternali5ationC@ 3rticulation among &eo&le troug% dialog Be<g<, brainstormingC< J 19&licit to e9&licit communication BommunicationC@ =%is transformation &%ase can be best su&&orted by tec%nology< 19&licit knowledge can be easily ca&tured and t%en distributed;transmitted to worldwide audience< 19&licit to tacit communication BInternali5ationC@ =%is im&lies taking e9&licit knowledge Be<g<, a re&ortC and deducing new ideas or taking constructi.e action< 4ne significant goal of knowledge management is to create tec%nology to %el& t%e users to deri.e tacit knowledge from e9&licit knowledge< +ociali5ation(19ternali5ation(ombination(Internali5ation 7rocess 4rgani5ations create and define &roblems, de.elo& and a&&ly knowledge to sol.e t%e &roblems, and t%en furt%er de.elo& new knowledge t%roug% t%e action of &roblem sol.ing< In many organi5ations, de.elo&ing new knowledge is e.en more im&ortant t%an kee&ing track of e9isting knowledge< =%e organi5ation is not merely an information &rocessing mac%ine, but an entity t%at creates knowledge t%roug% action and interaction< It interacts wit% its en.ironment, and res%a&es t%e en.ironment and e.en itself t%roug% t%e &rocess of knowledge creation< 0ence, Nonaka et al< B2000C argue t%at t%e most im&ortant as&ect of understanding a firmAs ca&ability concerning knowledge is t%e dynamic ca&ability to continuously create new knowledge out of e9isting firm(s&ecific ca&abilities, rat%er t%an t%e stock of knowledge t%at a firm &ossesses at any one &oint in time< Wit% t%is .iew of an organi5ation as an entity t%at creates knowledge continuously, we need to ree9amine our t%eories of t%e firm, in terms of %ow it is organi5ed and managed, %ow it interacts wit% its en.ironment, and %ow its members interact wit% eac% ot%er< =%is is t%e to&ic in a later c%a&ter on resource(based strategy< Knowledge creation is a continuous, self(transcending &rocess t%roug% w%ic% one transcends t%e boundary of t%e old self into a new self by acFuiring new conte9t, a new .iew of t%e world, and new knowledge 4ne also transcends t%e boundary between self and ot%er, as knowledge is created t%roug% t%e interactions among indi.iduals or between indi.iduals and t%eir en.ironment< =o understand %ow organi5ations create knowledge dynamically, Nonaka et al< B2000C &ro&osed a model of knowledge creation, consisting of t%ree elements@ B1C t%e +1I &rocess, t%e &rocess of knowledge creation t%roug% con.ersion between tacit and e9&licit knowledge, in w%ic% +1I ca&tures sociali5ation, e9ternali5ation, combination, and internali5ation B2C ba, t%e s%ared conte9t for knowledge creation and t%e &lace to create knowledge, and B#C knowledge assets, t%e resources reFuired to enable knowledge creation, suc% as in&uts, out&uts, and moderator of t%e knowledge creating &rocess< =%e t%ree elements of knowledge creation %a.e to interact wit% eac% ot%er to form t%e knowledge s&iral t%at creates knowledge< 3n organi5ation creates knowledge t%roug% interactions between e9&licit and tacit knowledge< =%is interaction is a called knowledge con.ersion< =%roug% t%e con.ersion &rocess, tacit and e9&licit knowledge e9&and in bot% Fuality and Fuantity< =%ere are four ste&s in knowledge con.ersion@ from tacit to tacit, from tacit to e9&licit, from e9&licit to e9&licit, and from e9&licit to tacit< =%ese four ste&s are called sociali5ation, e9ternali5ation, combination and internali5ation, and t%ey co.er t%e +1I &rocess< N o&yrig%t >irtual :ni.ersity of 7akistan 122Knowledge Management EM!M=(/#0 >: J +ociali5ation is t%e con.ersion of tacit knowledge to tacit knowledge< New tacit knowledge is con.erted t%roug% s%ared e9&eriences< New tacit knowledge is acFuired t%roug% s%ared e9&erience, suc% as s&ending time toget%er or li.ing in t%e same en.ironment< +ociali5ation takes &lace w%en new skills are acFuired by s&ending time wit% ot%ers w%o %a.e t%ose skills< +ociali5ation does also occur outside t%e ty&ical work&lace, w%en mental models and o&inions are s%ard among &ersons w%o are &resent< +ociali5ation is t%e s%aring of tacit knowledge between indi.iduals, usually t%roug% Koint acti.ities rat%er t%an written or .erbal instructions< $or e9am&le, by transferring ideas and images, a&&rentices%i&s allow newcomers to see t%e way ot%er t%ink< Knowledge is &roduced in a grou& setting not only t%roug% mere acFuisition of t%e indi.idualsA knowledge, but also t%roug% t%e s%aring of common understanding< +ocial &rocesses &lay an im&ortant role in t%e transition of knowledge across indi.iduals or grou&s< J 19ternali5ation is t%e con.ersion of tacit knowledge to e9&licit knowledge< =acit knowledge is articulated into e9&licit knowledge< 19&licit knowledge can be e9&ressed in words and numbers and s%ared in t%e form of data, scientific formulae, s&ecifications manuals and t%e like< =%is kind of knowledge can be readily transmitted between indi.iduals bot% formally and systematically< =%e successful con.ersion of tacit knowledge into e9&licit knowledge de&ends on t%e common knowledge s&ace as well as use of means suc% as meta&%ors, analogy and mental models< 19ternali5ation in.ol.es t%e e9&ression of tacit knowledge and its con.ersion into com&re%ensible forms t%at are easier to understand< on.entional learning met%odologies reFuire t%e e9ternali5ation of t%e &rofessorAs knowledge as t%e initial ste& in t%e studentsA learning &rocess< 19ternali5ation in.ol.es tec%niFues t%at %el& to e9&ress ideas or images as words, conce&ts, .isuals, or figurati.e language Be<g<, meta&%ors, analogies, and narrati.esC, and deducti.e;inducti.e reasoning or creati.e inference< J ombination is t%e con.ersion of e9&licit knowledge to e9&licit knowledge< 19&licit knowledge is con.erted into more com&le9 and systematic sets of e9&licit knowledge< 19&licit knowledge is collected from inside and outside t%e organi5ation and t%en combined, edited and &rocessed to from new e9&licit knowledge< =%e new knowledge is t%en disseminated among t%e members of t%e organi5ation< W%en t%e financial controller collects information from all &arts of t%e organi5ation and &uts it toget%er to s%ow t%e financial %ealt% of t%e organi5ation, t%at re&ort is new knowledge in t%e sense t%at it synt%esi5es e9&licit knowledge from a many different sources in one conte9t< ombination in.ol.es t%e con.ersion of e9&licit knowledge into more com&le9 sets of e9&licit knowledge< $ocusing on communication, diffusion, integration, and systemi5ation of knowledge, combination contributes to knowledge at t%e grou& le.el as well as tat t%e organi5ational le.el< Inno.ati.e organi5ations seek to de.elo& new conce&ts t%at are created, Kustified, and modeled at t%e organi5ational, and sometimes inter organi5ational, le.el< om&le9 organi5ational &rocesses reFuire t%e coo&eration of .arious grou&s wit%in t%e organi5ation, and combination su&&orts t%ese &rocesses by aggregating tec%nologies and knowledge< +1I 7rocess of Knowledge reation J Internali5ation is t%e con.ersion of e9&licit knowledge to tacit knowledge< Indi.iduals con.ert e9&licit knowledge into tacit knowledge< )y reading documents or manuals about t%eir Kobs and t%e organi5ation, new em&loyees can internali5e t%is e9&licit knowledge in suc% documents to start doing t%eir Kobs< W%en internali5ation %as occurred, t%e new knowledge becomes &art of e9isting mental models and know(%ow< =%is tacit knowledge accumulated at t%e indi.idual le.el N o&yrig%t >irtual :ni.ersity of 7akistan 128 +ociali5ation 19ternali5ation Internali5ation
ombination =o 19&licit =o =acit $rom =acit $rom 19&licitKnowledge Management EM!M=(/#0 >: can stimulate a new s&iral of knowledge creation w%en it is s%ared wit% ot%ers t%roug% sociali5ation< Internali5ation reFuires t%e indi.idual to identify t%e knowledge rele.ant to oneself wit%in t%e organi5ationAs e9&licit knowledge< In internali5ation &rocesses, t%e e9&licit acFuiring t%e knowledge can re(e9&erience w%at ot%ers go t%roug%< 3lternati.ely, indi.iduals could acFuire tacit knowledge in .irtual situations, eit%er .icariously be reading or listening to ot%ersA stories, or e9&erientially t%roug% simulations or e9&eriments< -earning by doing, on(t%e( Kob training, learning by obser.ation, and face(to(face meetings are some of t%e internali5ation &rocesses by w%ic% indi.iduals acFuire knowledge Knowledge creation is a continuous &rocess of dynamic interactions between tacit and e9&licit knowledge< +uc% interactions are s%a&ed by s%ifts between different modes of knowledge con.ersion, not Kust t%roug% one mode of interaction< Knowledge created t%roug% eac% of t%e four modes of knowledge con.ersion interacts in t%e s&iral of knowledge creation< Nonaka et al< B2000C em&%asi5e t%at it is im&ortant to note t%at t%e mo.ement t%roug% t%e four modes of knowledge con.ersion forms a s&iral, not a circle< =%e first element of t%e Nonaka et al< B20000 model for knowledge creation is t%e +1I &rocess< =%e second element is ba, w%ic% is t%e name gi.en t%e location or conte9t w%ere knowledge creation takes &lace< Knowledge needs a conte9t to be created< =%e conte9t is defined in terms of w%o &artici&ates and %ow t%ey &artici&ate< Knowledge needs a &%ysical conte9t to be created6 t%ere is no creation wit%out a &lace< )a, w%ic% can be translated to &lace, offers suc% a conte9t< )a does not necessarily mea a &%ysical &lace< =%e Da&anese word ba means a &lace at a s&ecific time< )a is t%e real cultural, social and %istoric conte9t w%ic% is of im&ortance to eac% knowledge worker, and w%ic% enables eac% knowledge worker to understand and a&&reciate information< )a is t%e &lace w%ere information is understood so t%at it becomes knowledge< =%e key conce&t in understanding ba is interaction< Knowledge creation is a dynamic %uman &rocess t%at transcends e9isting boundaries< Knowledge is created t%roug% t%e interactions among indi.iduals or between indi.iduals and t%eir en.ironments, rat%er t%an by an indi.idual o&erating alone< )a is t%e conte9t s%ared by t%ose w%o interact wit% eac% ot%er, and t%roug% suc% interactions, t%ose w%o &artici&ate in ba and t%e conte9t itself e.ol.e t%roug% self(transcendence to create knowledge< 7artici&ants of ba cannot be mere onlookers< Instead, t%ey are committed to ba t%roug% action and interaction< )a lets &artici&ants s%are time and s&ace, and yet it transcends time and s&ace< In knowledge creation, es&ecially in sociali5ation and e9ternali5ation, it is im&ortant for &artici&ants to s%are time and s&ace< 3 close &%ysical interaction is im&ortant in s%aring t%e conte9t and forming a common language among &artici&ants< 3lso, since knowledge is intangible, unbounded and dynamic and cannot be stocked, ba works as t%e &latform of knowledge creation by collecting t%e a&&lied knowledge of t%e area into a certain time and s&aces and integrating it< 0owe.er, as ba can be a mental or .irtual &lace as well as a &%ysical &lace, it does not %a.e to be bound to a certain s&ace and time< =%e t%ird and final element of t%e knowledge creation model is knowledge assets< 3ssets are firm( s&ecific resources t%at are used to create .alue for t%e firm< Knowledge assets are resources reFuired to su&&ort t%e knowledge creating &rocess< Im&ortant knowledge assets are trust, roles and routines< =rust is reFuired to stimulate knowledge workers to s%are knowledge and to enter into a social knowledge creation &rocess< Roles %a.e to be defined so t%at knowledge workers are familiar wit% %ow t%e knowledge creation &rocess is to take &lace< Routines are im&ortant to know, so t%at different knowledge workers in different roles %andle time and &lace and freFuencies for knowledge creation eFually< Knowledge assets must be built and used internally in order to be .aluable to t%e firm, as t%ey cannot be acFuired e9ternally< =o understand %ow knowledge assets are created, acFuired and e9&loited, Nonaka et al< B2000C &ro&osed to categori5e knowledge assets into four ty&es@ e9&eriential knowledge assets, conce&tual knowledge assets, systemic knowledge assets and routine knowledge assets< 19&eriential knowledge assets consist of t%e s%ared tacit knowledge t%at is built t%roug% s%ared %ands(on e9&erience amongst t%e members of t%e organi5ation, and between t%e members of t%e organi5ation and its customers, su&&liers and affiliated firms< +kills and know(%ow t%at area acFuired and accumulated by indi.iduals t%roug% e9&eriences at work are e9am&les of e9&eriential knowledge assets< N o&yrig%t >irtual :ni.ersity of 7akistan 1#0Knowledge Management EM!M=(/#0 >: once&tual knowledge assets consist of e9&licit knowledge articulated t%roug% mages, symbols and language< =%ey are t%e assets based on t%e conce&ts %eld by customers and members of t%e organi5ation< +ystemic knowledge assets consist of systemati5ed and &ackaged e9&licit knowledge, suc% as e9&licitly stated tec%nologies, &roduct s&ecifications, manuals, and documented and &ackaged information about customers and su&&liers< Routine knowledge assets consist of t%e tacit knowledge t%at is routini5ed and embedded in t%e actions and &ractices of t%e organi5ation< Know(%ow, organi5ational culture and organi5ational routines for carrying out t%e day(to(day business of t%e organi5ation are e9am&les of routine knowledge assets< =%ese four ty&es of knowledge assets form t%e basis of t%e knowledge creating &rocess< =o manage knowledge creation and e9&loitation effecti.ely, a com&any %as to ma& its stocks of knowledge assets< 0owe.er, cataloguing t%e e9isting knowledge is not enoug%< 3s stated abo.e, knowledge assets are dynamic, and new knowledge assets can be created from e9isting knowledge assets< =%e t%ree elements of t%e knowledge creation model E +1I, ba and assets E re&resent reFuirements w%ic% all %a.e to be taken care of by management to ac%ie.e successful knowledge creation< =%e +1I &rocess takes care of t%e interaction between tacit and e9&licit knowledge, w%ile ba is t%e &lace for t%is interaction, and knowledge assets are t%e resources for t%is interaction< W%en mo.ing t%roug% t%e +1I &rocess in a s&iral, t%e organi5ation de.elo&s new knowledge< =%is s&iral is de&endent on ba and is stimulated by conditions of growt% based on a.ailable knowledge assets< Management is im&ortant in all t%ree elements< 19ecuti.e management is res&onsible for articulating cor&orate knowledge ambitions< Middle management is res&onsible for creating and sustaining ba< )ot% e9ecuti.e and middle management are res&onsible for t%e a.ailability of knowledge assets< =%e knowledge(creating &rocess cannot be managed in t%e traditional sense of management, w%ic% centers on controlling t%e flow of information< Managers ca, %owe.er, lead t%e organi5ation to acti.ely and dynamically create knowledge by &ro.iding certain conditions< Researc%ers and &ractitioners argue t%at most of t%e knowledge a&&lied by indi.iduals in organi5ation is tacit knowledge< =raditionally, organi5ations %a.e been concerned wit% management of e9&licit knowledge, w%ic% is of less im&ortance to t%e business at any &oint in time< 0owe.er, tacit and e9&licit knowledge are de&endent on eac% ot%er to be com&lete sources of knowledge< W%en we a&&ly t%e +1I &rocess, we see t%at t%ere is an interaction between e9&licit and tacit knowledge, w%ic% creates new knowledge< In t%e e9ternali5ation stage, tacit knowledge is concerted into e9&licit knowledge< =%e successful con.ersion of tacit knowledge into e9&licit knowledge de&ends on t%e common knowledge s&ace as well as use of means suc% as meta&%ors, analogy and mental models< +uc% means %el& indi.iduals e9&ress knowledge in words and numbers and s%are it in t%e form of data, scientific formulae, s&ecification, manuals and t%e like =%is kind of knowledge can be readily transmitted between indi.iduals bot% formally and systematically< Nonaka et al< B2000C argue t%at fostering lo.e, care, trust and commitment amongst organi5ational members is im&ortant, as it forms t%e foundation of knowledge creation< $or knowledge Bes&ecially tacit knowledgeC to be s%ared and for t%e self(transcending &rocess of knowledge creation to occur, t%ere s%ould be strong lo.e, caring and trust among organi5ation members< 3s information creates &ower, an indi.idual mig%t be moti.ated to mono&oli5e it, %iding it e.en from %is or %er colleagues< 0owe.er, as knowledge needs to be s%ared to be created and e9&loited, it is im&ortant for leaders to create an atmos&%ere in w%ic% organi5ation members feel safe s%aring t%eir knowledge< It is also im&ortant for leaders to culti.ate commitment amongst organi5ation members to moti.ate t%e s%aring and creation of knowledge, &referably based on a cor&orate knowledge .ision< Nonaka et al< B2000C defined knowledge assets as firm(s&ecific resources t%at are indis&ensable to create .alue for t%e firm6 knowledge assets are in&uts, out&uts and moderating factors of t%e knowledge( creating &rocess< $or e9am&le, trust amongst organi5ational members is &roduced as an out&ut of t%e knowledge(creating &rocess, and at t%e same time trust moderates %ow ba functions as a &latform for t%e knowledge(creating &rocess< =%is definition of knowledge assets focuses on resources for knowledge creation< N o&yrig%t >irtual :ni.ersity of 7akistan 1#1Knowledge Management EM!M=(/#0 >: -1++4N 2/ KN4W-1D!1 +7IR3- 3ND +:+=3IN1D 4R!3NI[3=I4N3- 3D>3N=3!1+ =0R4:!0 +1I 7R41++ Knowledge on.ersion@ Interaction between =acit and 19&licit Knowledge =%e %istory of Western e&istemology can be seen as a continuous contro.ersy about w%ic% ty&e of knowledge is more trut%ful< W%ile Westerners tend to em&%asi5e e9&licit knowledge, t%e Da&anese tend to stress tacit knowledge< In our .iew, %owe.er, tacit knowledge and e9&licit knowledge are not totally se&arate but mutually com&lementary entities< =%ey interact wit% and interc%ange into eac% ot%er in t%e creati.e acti.ities of %uman beings< 4ur dynamic model of knowledge creation is anc%ored to a critical assum&tion t%at %uman knowledge is created and e9&anded t%roug% social, interaction between tacit knowledge and e9&licit knowledge< We call t%is interaction ]knowledge con.ersion<] It s%ould be noted t%at t%is con.ersion is a ]social] &rocess between indi.iduals and not confined wit%in an indi.idual< 3ccording to t%e rationalist .iew, %uman cognition is a deducti.e &rocess of indi.iduals, but an indi.idual is ne.er isolated from social interaction w%en %e or s%e &ercei.es t%ings< =%us, t%roug% t%is ]social con.ersion] &rocess, tacit and e9&licit knowledge e9&and in terms of bot% Fuality and Fuantity BNonaka, 1880bC< =%e idea of ]knowledge con.ersion] may be &artially consonant wit% t%e 3= model de.elo&ed in cogniti.e &syc%ology <=%is model %y&ot%esi5es t%at for cogniti.e skills to de.elo&, all declarati.e knowledge, w%ic% corres&onds to e9&licit knowledge in our t%eory, %as to be transformed into &rocedural knowledge, w%ic% corres&onds to tacit knowledge, used in suc% acti.ities as riding a bicycle or &laying t%e &iano< =%e 3= model %as one limitation< It .iews t%e transformation as a s&ecial case, because t%is modelOs researc% interest is focused on t%e acFuisition and transfer of &rocedural BtacitC knowledge, not declarati.e Be9&licitC knowledge< In ot%er words, &ro&onents of t%is model consider knowledge transformation as mainly unidirectional from declarati.e Be9&licitC to &rocedural BtacitC, w%ereas we argue t%at t%e transformation is interacti.e and s&iral< $our Modes of Knowledge on.ersion =%e assum&tion t%at knowledge is created t%roug% t%e interaction between tacit and e9&licit knowledge allows us to &ostulate four different modes of knowledge con.ersion< =%ey are as follows@ B1C from tacit knowledge to tacit knowledge, w%ic% we call sociali5ation6 B2C from tacit knowledge to e9&licit knowledge, or e9ternali5ation6 B#C from e9&licit knowledge to e9&licit knowledge, or combination6 and B'C from e9&licit knowledge to tacit knowledge, or internali5ation< =%ree of t%e four ty&es of knowledge con.ersion(sociali5ation, combination, and internali5ation(%a.e been discussed from .arious &ers&ecti.es in organi5ational t%eory< $or e9am&le, sociali5ation is connected wit% t%e t%eories of grou& &rocesses and organi5ational culture6 combination %as its roots in information &rocessing6 and internali5ation is closely related to organi5ational learning< 0owe.er, e9ternali5ation %as been somew%at neglected< 1ac% of t%ese four modes of knowledge con.ersion will be discussed in detail below, along wit% actual e9am&les< +ociali5ation@ $rom =acit to =acit +ociali5ation is a &rocess of s%aring e9&eriences and t%ereby creating tacit knowledge suc% as s%ared mental models and tec%nical skills< 3n indi.idual can acFuire tacit knowledge directly from ot%ers wit%out using language< 3&&rentices work wit% t%eir masters and learn craftsmans%i& not t%roug% language but t%roug% obser.ation, imitation, and &ractice< In t%e business setting, on(t%e(Kob training uses basically t%e same &rinci&le< =%e key to acFuiring tacit knowledge is e9&erience< Wit%out some form of s%ared e9&erience, it is e9tremely difficult for one &erson to &roKect %er( or %imself into anot%er indi.idualOs t%inking &rocess< =%e mere transfer of information will often make little sense, if it is abstracted from associated emotions and s&ecific conte9ts in w%ic% s%ared e9&eriences are embedded< =%e following t%ree e9am&les illustrate %ow sociali5ation is em&loyed by Da&anese com&anies wit%in t%e &roduct de.elo&ment conte9t< N o&yrig%t >irtual :ni.ersity of 7akistan 1#2Knowledge Management EM!M=(/#0 >: =%e first e9am&le of sociali5ation comes from Ronda, w%ic% set u& ]brainstorming cam&s] Btama das%i kaiC(informal meetings for detailed discussions to sol.e difficult &roblems in de.elo&ment &roKects< =%e meetings are %eld outside t%e work&lace, often at a resort inn w%ere &artici&ants discuss difficult &roblems w%ile drinking sake, s%aring meals, and taking a bat% toget%er in a %ot s&ring< =%e meetings are not limited to &roKect team members but are o&en to any em&loyees w%o are interested in t%e de.elo&ment &roKect under way< In t%ese discussions, t%e Fualifications or status of t%e discussants are ne.er Fuestioned, but t%ere is one taboo@ criticism wit%out constructi.e suggestions< Discussions are %eld wit% t%e understanding t%at ]making criticism is ten times easier t%an coming u& wit% a constructi.e alternati.e<] =%is kind of brainstorming cam& is not uniFue to Ronda but %as been used by many ot%er Da&anese firms< It is also not uniFue to de.elo&ing new &roducts and ser.ices but is also used to de.elo& managerial systems or cor&orate strategies< +uc% a cam& is not only a forum for creati.e dialogue but also a medium for s%aring e9&erience and en%ancing mutual trust among &artici&ants< It is &articularly effecti.e in s%aring tacit knowledge and creating anew &ers&ecti.e< It reorients t%e mental models of all indi.iduals in t%e same direction, but not in a forceful way< Instead, brainstorming cam&s re&resent a mec%anism t%roug% w%ic% indi.iduals searc% for %armony by engaging t%emsel.es in bodily as well as mental e9&eriences< =%e second e9am&le, w%ic% s%ows %ow a tacit tec%nical skill was sociali5ed, comes from t%e Matsus%ita 1lectric Industrial om&any< 3 maKor &roblem at t%e 4saka(based com&any in de.elo&ing an automatic %ome bread(making mac%ine in t%e late 1820s centered on %ow to mec%ani5e t%e doug%( kneading &rocess, w%ic% is essentially tacit knowledge &ossessed by master bakers< Doug% kneaded by a master baker and by a mac%ine were 9(rayed and com&ared, but no meaningful insig%ts were obtained< Ikuko =anaka, %ead of software de.elo&ment, knew t%at t%e areaOs best bread came from t%e 4saka International 0otel< =o ca&ture t%e tacit knowledge of kneading skill, s%e and se.eral engineers .olunteered to a&&rentice t%emsel.es to t%e %otelOs %ead baker< Making t%e same delicious bread as t%e %ead bakerOs was, not easy< No one could e9&lain w%y< 4ne day, %owe.er, s%e noticed t%at t%e baker was not only stretc%ing but also ]twisting] t%e doug%, w%ic% turned out to be t%e secret for making tasty bread< =%us s%e sociali5ed t%e %ead bakerOs tacit knowledge t%roug% obser.ation, imitation, and &ractice< +ociali5ation also occurs between &roduct de.elo&ers and customers< Interactions wit% customers before &roduct de.elo&ment and after market introduction are, in fact, a ne.er(ending &rocess of s%aring tacit knowledge and creating ideas for im&ro.ement< =%e way N1 de.elo&ed its first &ersonal com&uter is a case in &oint< =%e new(&roduct de.elo&ment &rocess began w%en a grou& from t%e +emiconductor and I +ales Di.ision concei.ed of an idea to sell Da&anOs first microcom&uter kit, t%e =K(20, to &romote t%e sales of semiconductor de.ices< +elling t%e =K(20 to t%e &ublic at large was a radical de&arture from N1Os %istory of res&onding to routine orders from Ni&&on =elegra&% and =ele&%one BN==C< :ne9&ectedly, a wide .ariety of customers, ranging from %ig% sc%ool students to &rofessional com&uter ent%usiasts, came to N1Os )I=(INN, a dis&lay ser.ice center in t%e 3ki%abara district of =okyo, w%ic% is famous for its %ig% concentration of electronic goods retailers< +%aring e9&eriences and continuing dialogues wit% t%ese customers at t%e )I=(INN resulted in t%e de.elo&ment of N1Os best(selling &ersonal com&uter, t%e 7(2000, a few years later< 19ternali5ation@ $rom =acit to 19&licit 19ternali5ation is a &rocess of articulating tacit knowledge into e9&licit conce&ts< It is a Fuintessential knowledge(creation &rocess in t%at tacit knowledge becomes e9&licit, taking t%e s%a&es of meta&%ors, analogies, conce&ts, %y&ot%eses, or models< W%en we attem&t to conce&tuali5e an image, we e9&ress its essence mostly in language(writing is an act of con.erting tacit knowledge into articulable knowledge < Met e9&ressions are often inadeFuate, inconsistent, and insufficient< +uc% discre&ancies and ga&s between images and e9&ressions, %owe.er, %el& &romote ]reflection] and interaction between indi.iduals< =%e e9ternali5ation mode of knowledge con.ersion is ty&ically seen in t%e &rocess of conce&t creation and is triggered by dialogue or collecti.e reflection<1# 3 freFuently used met%od to create a conce&t is to combine deduction and induction< Ma5da, for e9am&le, combined t%ese two reasoning met%ods w%en it de.elo&ed t%e new RR(" conce&t, w%ic% is described as ]an aut%entic s&orts car t%at &ro.ides an e9citing and comfortable dri.e<] =%e conce&t was deduced from t%e car makerOs cor&orate slogan@ ]create new .alues and &resent Koyful dri.ing &leasures] as well as t%e &ositioning of t%e new car as ]a strategic car for t%e :<+< market and an image of inno.ation<] 3t t%e same time, t%e new conce&t was N o&yrig%t >irtual :ni.ersity of 7akistan 1##Knowledge Management EM!M=(/#0 >: induced from ]conce&t] tri&s,] w%ic% were dri.ing e9&eriences by de.elo&ment team members in t%e :nited +tates as well as from ]conce&t clinics,] w%ic% gat%ered o&inions from customers and car e9&erts< W%en we cannot find an adeFuate e9&ression for an image t%roug% analytical met%ods of deduction or induction, we %a.e to use a non analytical met%od< 19ternali5ation is, t%erefore, often dri.en by meta&%or and;or analogy< :sing an attracti.e meta&%or and;or analogy is %ig%ly effecti.e in fostering direct commitment to t%e creati.e &rocess< Recall t%e Ronda ity e9am&le< In de.elo&ing t%e car, Riroo Watanabe and %is team used a meta&%or of ]3utomobile 1.olution<] 0is team .iewed t%e automobile as an organism and soug%t its ultimate form< In essence, Watanabe was asking, ]W%at will t%e automobile e.entually e.ol.e into?] I insisted on allocating t%e minimum s&ace for mec%anics and t%e ma9imum s&ace for &assengers< =%is seemed to be t%e ideal car, into w%ic% t%e automobile s%ould e.ol.e< <<<=%e first ste& toward t%is goal was to c%allenge t%e ]reasoning of Detroit,] w%ic% %ad sacrificed comfort for a&&earance< 4ur c%oice was a s%ort but tall car<<<s&%erical, t%erefore lig%ter, less e9&ensi.e, more comfortable, and solid< =%e conce&t of a tall and s%ort car(]=all )oy](emerged t%roug% an analogy between t%e conce&t of ]man(ma9imum, mac%ine(minimum] and an image of a s&%ere t%at contains t%e ma9imum .olume wit%in t%e minimum area of surface, w%ic% ultimately resulted in t%e 0onda ity< =%e case of anonOs Mini(o&ier is a good e9am&le of %ow an analogy was used effecti.ely for &roduct de.elo&ment< 4ne of t%e most difficult &roblems faced by t%e de.elo&ment team was &roducing at low, cost a dis&osable cartridge, w%ic% would eliminate t%e necessity for maintenance reFuired in con.entional mac%ines< Wit%out a dis&osable cartridge, maintenance staff would %a.e to be stationed allo.er t%e country, since t%e co&ier was intended for family or &ersonal use< If t%e usage freFuency were %ig%, maintenance costs could be negligible< )ut t%at was not t%e case wit% a &ersonal co&ier< =%e fact t%at a large number of customers would be using t%e mac%ine only occasionally meant t%at t%e new &roduct %ad to %a.e %ig% reliability and no or minimum maintenance< 3 maintenance study s%owed t%at more t%an 80 &ercent of t%e &roblems came from t%e drum or its surrounding &arts< 3imed at cutting maintenance costs w%ile maintaining t%e %ig%est reliability, t%e team de.elo&ed t%e conce&t of a dis&osable cartridge system in w%ic% t%e drum or t%e %eart of t%e co&ier is re&laced after a certain amount of usage< =%e ne9t &roblem was w%et%er t%e drum could be &roduced at a cost low enoug% to be consistent wit% t%e targeted low selling &rice of t%e co&ier< 3 task force assigned to sol.e t%is cost &roblem %ad many %eated discussions about t%e &roduction of con.entional &%otosensiti.e drum cylinders wit% a base material of aluminum(drawn tube at a 1ow cost< 4ne day Riros%i =anaka, leader of t%e task force, sent out for some cans of beer< 4nce t%e beer was consumed, %e asked, ]0ow muc% does it cost to manufacture t%is can?] =%e team t%en e9&lored t%e &ossibility of a&&lying t%e &rocess of manufacturing t%e beer can to manufacturing t%e drum cylinder, using t%e same material< )y clarifying similarities and differences, t%ey disco.ered a &rocess tec%nology to manufacture t%e aluminum drum at a low cost, t%us gi.ing rise to t%e dis&osable drum< =%ese e9am&les wit%in Da&anese firms clearly s%ow t%e effecti.eness of t%e use of meta&%or and analogy in creating and elaborating a conce&t < 3s 0ondaOs Watanabe commented, ]We are more t%an %alfway t%ere, once a &roduct conce&t %as been created<] In t%is sense, t%e leadersO wealt% of figurati.e language and imagination is an essential factor in eliciting tacit knowledge from &roKect members< 3mong t%e four modes of knowledge con.ersion, e9ternali5ation %olds t%e key to knowledge creation, because it creates new, e9&licit conce&ts from tacit knowledge< 0ow can we con.ert tacit knowledge into e9&licit knowledge effecti.ely and efficiently? =%e answer lies in a seFuential use of meta&%or, analogy, and model< 3s Nisbet B18/8C noted, ]muc% of w%at Mic%ael 7olanyi %as called Otacit knowledgeO is e9&ressible(in so far as it is e9&ressible at all(in meta&%or] < Meta&%or is away of &ercei.ing or intuiti.ely understanding one t%ing by imaging anot%er t%ing symbolically< N o&yrig%t >irtual :ni.ersity of 7akistan 1#'Knowledge Management EM!M=(/#0 >: =%eory of 4rgani5ational Knowledge reation in 7roduct De.elo&ment 7roduct Bom&anyC Meta&%or;3nalogy Influence on once&t reation ity B0ondaC G3utomobile 1.olutionH BMeta&orC =%e s&%re BanalogyC 0int of ma9imi5ing &assenger s&ace as ultimate auto de.elo&ment GMan(ma9imum, mac%ine(minimumH conce&t created< 0int of ac%ie.ing ma9imum &assenger s&ace t%roug% minimi5ing surface area G=all and s%ort car B=all )oyCH conce&t created Mini(o&ier BanonC 3luminum beer can BanalogyC 0in of similarities between ine9&ensi.e aluminum beer can and &%otosensiti.e drum manufacture G-ow(cost manufacturing &rocessH conce&t created 0ome )akery BMat%sus%itaC 0otel bread Bmeta&%orC 4saka International 0otel %ead baker BanalogyC 0int of more delicious bread G=wist doug%H conce&t created Meta&%ors are one communication mec%anism t%at can function to reconcile discre&ancies in meaning< Moreo.er, meta&%or is an im&ortant tool for creating a network of new conce&ts< )ecause a meta&%or is ]two t%oug%ts of different t%ings<<<su&&orted by a single word, or &%rase, w%ose meaning is a resultant of t%eir interaction]<C, we can continuously relate conce&ts t%at are far a&art in our mind, e.en relate abstract conce&ts to concrete ones< =%is creati.e, cogniti.e &rocess continues as we t%ink of t%e similarities among conce&ts and feel an imbalance, inconsistency, or contradiction in t%eir associations, t%us often leading to t%e disco.ery of new meaning or e.en to t%e formation of a new &aradigm< ontradictions in%erent in a meta&%or are t%en %armoni5ed by analogy , w%ic% reduces t%e unknown by %ig%lig%ting t%e ]commonness] of two different t%ings< Meta&%or and analogy are often confused< 3ssociation of two t%ings t%roug% meta&%or is dri.en mostly by intuition and %olistic imagery and does not aim to find differences between t%em< 4n t%e ot%er %and, association t%roug% analogy is carried out by rational t%inking and focuses on structural;functional similarities between two t%ings, and %ence t%eir differences< =%us analogy %el&s us understand t%e unknown t%roug% t%e known and bridges t%e ga& between an image and a logical model< 4nce e9&licit conce&ts are created, t%ey can t%en be modeled< In a logical model, no contradictions s%ould e9ist and all conce&ts and &ro&ositions must be e9&ressed in systematic language and co%erent logic< )ut in business terms, models are often only roug% descri&tions or drawings, far from being fully s&ecific< Models are usually generated from meta&%ors w%en new conce&ts are created in t%e business con te9t< ombination@ $rom 19&licit to 19&licit ombination is a &rocess of systemi5ing conce&ts into a knowledge system< =%is mode of knowledge con.ersion in.ol.es combining different bodies of e9&licit knowledge< Indi.iduals e9c%ange and combine knowledge t%roug% suc% media as documents, meetings, tele&%one con.ersations, or com&uteri5ed communication networks< Reconfiguration of e9isting information t%roug% sorting, adding, combining, and categori5ing of e9&licit knowledge Bas conducted in com&uter databasesC can lead to new knowledge< Knowledge creation carried out in formal education and training at sc%ools usually takes t%is form< 3n M)3 education is one of t%e best e9am&les of t%is kind< In t%e business conte9t, t%e combination mode of knowledge con.ersion is most often seen w%en middle managers break down and o&erationali5e cor&orate .isions, business conce&ts, or &roduct conce&ts< Middle management &lays a critical role in creating new conce&ts t%roug% networking of codified information and knowledge< reati.e uses of com&uteri5ed communication networks and large(scale databases facilitate t%is mode of knowledge con.ersion< N o&yrig%t >irtual :ni.ersity of 7akistan 1#*Knowledge Management EM!M=(/#0 >: 3t Kraft !eneral $oods, a manufacturer of dairy and &rocessed foods, data from t%e 74+ B&oint(of( salesC system of retailers is utili5ed not only to find out w%at does and does not sell well but also to create new ]ways to sell,] t%at is, new sales systems and met%ods< =%e com&any %as de.elo&ed an information(intensi.e marketing &rogram called ]micro(merc%andi5ing,] w%ic% &ro.ides su&ermarkets wit% timely and &recise recommendations on t%e o&timal merc%andise mi9 and wit% sales &romotions based on t%e analysis of data from its micro(merc%andising system< :tili5ing KraftOs indi.idual met%od of data analysis, including its uniFue classification of stores and s%o&&ers into si9 categories, t%e system is ca&able of &in&ointing w%o s%o&s w%ere and %ow< Kraft successfully manages its &roduct sales t%roug% su&er(markets by controlling four elements of t%e ]category management] met%odology( consumer and category dynamics, s&ace management, merc%andi5ing management, and &ricing management< 3t t%e to& management le.el of an organi5ation, t%e combination mode is reali5ed w%en mid( range conce&ts ^suc% as &roduct conce&tsC are combined wit% and integrated into grand conce&ts ^suc% as a cor&orate .isionC to generate anew meaning of t%e latter< Introducing anew cor&orate image in 182/, for e9am&le, 3sa%i )reweries ado&ted a grand conce&t dubbed ]li.e 3sa%i for li.e &eo&le<] =%e conce&t stood for t%e message t%at ]3sa%i will &ro.ide natural and aut%entic &roducts and ser.ices for t%ose w%o seek acti.e minds and acti.e li.es<] 3long wit% t%is grand conce&t, 3sa%i inFuired into t%e essence of w%at makes beer a&&ealing, and de.elo&ed 3sa%i +u&er Dry beer based on t%e new(&roduct conce&t of ]ric%ness and s%ar&ness<] =%e new(&roduct conce&t is a mid(range conce&t t%at made t%e grand conce&t of 3sa%i more e9&licitly recogni5able, w%ic% in turn altered t%e com&anyOs &roduct de.elo&ment system< =%e taste of beer was %it%erto decided by engineers in t%e &roduction de&artment wit%out any &artici&ation by t%e sales de&artment< =%e ]ric%ness and s%ar&ness] conce&t was reali5ed t%roug% coo&erati.e &roduct de.elo&ment by bot% de&artments< 4t%er e9am&les of interaction between grand conce&ts and midrange conce&ts abound< $or e9am&le, N1Os ]L] Bcom&uters and communicationsC conce&t induced t%e de.elo&ment of t%e e&oc%( making 7(2000 &ersonal com&uter, w%ic% was based on t%e mid(range conce&t of ]distributed &rocessing<] anonOs cor&orate &olicy, ]reation of an e9cellent com&any by transcending t%e camera business,] led to t%e de.elo&ment of t%e Mini(o&ier, w%ic% was de.elo&ed wit% t%e mid(range &roduct conce&t of ]easy maintenance<] Ma5daOs grand .ision, ]reate new .alues and &resent Koyful dri.ing,] was reali5ed in t%e new RR(", ]an aut%entic s&orts car t%at &ro.ides an e9citing and comfortable dri.e<] Internali5ation@ $rom 19&licit to =acit Internali5ation is a &rocess of embodying e9&licit knowledge into tacit knowledge< It is closely related to ]learning by doing<] W%en e9&eriences t%roug% sociali5ation, e9ternali5ation, and combination are internali5ed into indi.idualsO tacit knowledge bases in t%e form of s%ared mental models or tec%nical know(%ow, t%ey become .aluable assets< 3ll t%e members of t%e Ronda ity &roKect team, for e9am&le, internali5ed t%eir e9&eriences of t%e late 18"0s and are now making use of t%at know(%ow and leading RLD &roKects in t%e com&any< $or organi5ational knowledge creation to take &lace, %owe.er, t%e tacit knowledge accumulated at t%e indi.idual le.el needs to be sociali5ed wit% ot%er organi5ational members, t%ereby starting anew s&iral of knowledge creation< $or e9&licit knowledge to become tacit, it %el&s if t%e knowledge is .erbali5ed or diagrammed into documents, manuals, or oral stories< Documentation %el&s indi.iduals internali5e w%at t%ey e9&erienced, t%us enric%ing t%eir tacit knowledge< In addition, documents or manuals facilitate t%e transfer of e9&licit knowledge to ot%er &eo&le, t%ereby %el&ing t%em e9&erience t%e e9&eriences of ot%ers indirectly Bi<e<, ]re(e9&erience] t%emC< !1, for e9am&le, documents all customer com&laints and inFuiries in a database at its 3nswer enter in -ouis.ille, Kentucky, w%ic% can be used, for e9am&le, by members of a new( &roduct de.elo&ment team to ]re(e9&erience] w%at t%e tele&%one o&erators e9&erienced< !1 establis%ed t%e 3nswer enter in 1822 to &rocess Fuestions, reFuests for %el&, and com&laints from customers on any &roduct 2' %ours a day, #/* days a year< 4.er 200 tele&%one o&erators res&ond to as many as 1',000 calls a day< !1 %as &rogrammed 1<* million &otential &roblems and t%eir solutions into its com&uteri5ed database system< =%e system is eFui&&ed wit% an on(line diagnosis function utili5ing t%e latest artificial intelligence tec%nology for Fuick answers to inFuiries6 any &roblem(solution res&onse N o&yrig%t >irtual :ni.ersity of 7akistan 1#/Knowledge Management EM!M=(/#0 >: can be retrie.ed by t%e tele&%one o&erator in two seconds< In case a solution is not a.ailable, 12 s&ecialists wit% at least four years of re&air e9&erience t%ink out solutions on site< $our full(time &rogrammers &ut t%e solutions into t%e database, so t%at t%e %ew information is usually installed into t%e system by t%e following day< =%is information is sent to t%e res&ecti.e &roduct di.isions e.ery mont%< Met, t%e &roduct di.isions also freFuently send t%eir new(&roduct de.elo&ment &eo&le to t%e 3nswer enter to c%at wit% t%e tele&%one o&erators or t%e 12 s&ecialists, t%ereby ]re( e9&eriencing] t%eir e9&eriences< Internali5ation can also occur e.en wit%out %a.ing actually to ]re(e9&erience] ot%er &eo&leOs e9&eriences< $or e9am&le, if reading or listening to a success story makes some members of t%e organi5ation feel t%e realism and essence of t%e story, t%e e9&erience t%at took &lace in t%e &ast may c%ange into a tacit mental model< W%en suc% a mental model is s%ared by most members of t%e organi5ation, tacit knowledge becomes &art of t%e organi5ational culture< =%is &ractice is &re.alent in Da&an, w%ere books and articles on com&anies or t%eir leaders abound< $reelance writers or former em&loyees &ublis% t%em, some(times at t%e reFuest of t%e com&anies< 4ne can find about two do5en books on Ronda or +oic%iro Ronda in maKor bookstores today, all of w%ic% %el& instill a strong cor&orate culture for 0onda< 3n e9am&le of internali5ation t%roug% ]learning by doing] can be seen at Matsus%ita w%en it launc%ed a com&anywide &olicy in 188# to reduce yearly working time to 1,200 %ours< alled MI=O8# for ]Mind and Management Inno.ation =oward 188#,] t%e &olicyOs obKecti.e was not to reduce costs but to inno.ate t%e mindset and management by reducing working %ours and increasing indi.idual creati.ity< Many de&artments were &u55led about %ow to im&lement t%e &olicy, w%ic% was clearly communicated as e9&licit knowledge< =%e MI=O8# &romotion office ad.ised eac% de&artment to e9&eriment wit% t%e &olicy for one mont% by working 1*0 %ours< =%roug% suc% a bodily e9&erience, em&loyees got to know w%at working 1,200 %ours a year would be like< 3n e9&licit conce&t, reducing working time to 1,200 %ours, was internali5ed t%roug% t%e one(mont% e9&erience< 19&anding t%e sco&e of bodily e9&erience is critical to internali5ation< $or e9am&le, Ronda ity &roKect leader Riroo Watanabe ke&t saying ]-etOs gi.e it a try] to encourage t%e team membersO e9&erimental s&irit< =%e fact t%at t%e de.elo&ment team was cross(functional enabled its members to learn and internali5e a breadt% of de.elo&ment e9&eriences beyond t%eir own functional s&eciali5ation< Ra&id &rototy&ing also accelerated t%e accumulation of de.elo&mental e9&eriences, w%ic% can lead to internali5ation< ontents of Knowledge and t%e Knowledge +&iral 3s already e9&lained, sociali5ation aims at t%e s%aring of tacit knowledge< 4n its own, %owe.er, it is a limited form of knowledge creation< :nless s%ared knowledge becomes e9&licit, it cannot be easily le.eraged by t%e organi5ation as a w%ole< 3lso, a mere combination of discrete &ieces of e9&licit information into anew w%ole(for e9am&le, a com&troller of a com&any collects information from t%roug%out t%e com&any and &uts it toget%er in a financial re&ort(does not really e9tend t%e organi5ationOs e9isting knowledge base< )ut w%en tacit and e9&licit knowledge interact, as in t%e Matsus%ita e9am&le, an inno.ation emerges< 4rgani5ational knowledge creation is a continuous and dynamic interaction between tacit and e9&licit knowledge< =%is interaction is s%a&ed by s%ifts between different modes of knowledge con.ersion, w%ic% are in turn induced by se.eral triggers Bsee $igure #(#C< $irst, t%e sociali5ation mode usually starts wit% building a ]field] of interaction< =%is field facilitates t%e s%aring of membersO e9&eriences and mental models< +econd, t%e e9ternali5ation mode is triggered by meaningful ]dialogue or collecti.e reflection,] in w%ic% using a&&ro&riate meta&%or or analogy %el&s team members to articulate %idden tacit knowledge t%at is ot%erwise %ard to communicate< =%ird, t%e combination mode is triggered by ]networking] newly created knowledge and e9isting knowledge from ot%er sections of t%e organi5ation, t%ereby crystalli5ing t%em into anew &roduct, ser.ice, or managerial system< $inally, ]learning by doing] triggers internali5ation< =%e content of t%e knowledge created by eac% mode of knowledge con.ersion is naturally different Bsee $igure #('C< +ociali5ation yields w%at can be called ]sym&at%i5ed knowledge,] suc% as s%ared mental models and tec%nical skills< =%e tacit skill of kneading doug% in t%e Matsus%ita e9am&le is a sym&at%i5ed knowledge< 19ternali5ation out(&uts ]conce&tual knowledge<] =%e conce&t of ]=all )oy] in t%e 0onda e9am&le is a conce&tual knowledge created t%roug% t%e meta&%or of ]3utomobile 1.olution] and t%e analogy between a s&%ere and t%e conce&t of ]man(ma9imum, mac%ine( minimum<] ombination gi.es rise to ]systemic knowledge,] suc% as a &rototy&e and new com&onent tec%nologies< N o&yrig%t >irtual :ni.ersity of 7akistan 1#"Knowledge Management EM!M=(/#0 >: =%e micro(merc%andi5ing &rogram in t%e Kraft !eneral $oods e9am&le is a systemic knowledge, w%ic% includes retail management met%ods as its com&onents< Internali5ation &roduces ]o&erational knowledge] about &roKect management, &roduction &rocess, new(&roduct usage, and &olicy im&lementation< =%e bodily e9&erience of working 1*0 %ours a mont% in t%e Matsus%ita case is an o&erational knowledge of &olicy im&lementation< =%ese contents of knowledge interact wit% eac% ot%er in t%e s&iral f knowledge creation< $or e9am&le, sym&at%i5ed knowledge about consumersO wants may become e9&licit conce&tual knowledge about a new(&roduct conce&t t%roug% sociali5ation and e9ternali5ation< +uc% conce&tual knowledge becomes a guideline for creating systemic knowledge t%roug% combination< $or e9am&le, a new(&roduct conce&t steers t%e combination &%ase, in w%ic% newly de.elo&ed and e9isting com&onent tec%nologies are combined to build a &rototy&e< +ystemic knowledge Be<g<, a simulated &roduction &rocess for t%e new &roductC turns into o&erational knowledge for mass &roduction of t%e &roduct t%roug% internali5ation< In addition, e9&erience(based o&erational knowledge often triggers anew cycle of knowledge creation< $or e9am&le, t%e usersO tacit o&erational knowledge about a &roduct is often sociali5ed, t%ereby initiating im&ro.ement of an e9isting &roduct or de.elo&ment of an inno.ation< =%us far, we %a.e focused our discussion on t%e e&istemological dimension of organi5ational knowledge creation< 3s noted before, %ow(e.er, an organi5ation cannot create knowledge by itself< =acit knowledge of indi.iduals is t%e basis of organi5ational knowledge creation< =%e organi5ation %as to mobili5e tacit knowledge created and accumulated at t%e indi.idual le.el< =%e mobili5ed tacit knowledge is ]organi5ationally] am&lified t%roug% four modes of knowledge con.ersion and crystalli5ed at %ig%er ontological le.els< We call t%is t%e ]knowledge s&iral,] in w%ic% t%e interaction between tacit knowledge and e9&licit knowledge will become larger in scale as it mo.es u& t%e ontological le.els< =%us, organi5ational knowledge creation is a s&iral &rocess, starting at t%e indi.idual le.el and mo.ing u& t%roug% e9&anding communities of interaction t%at crosses sectional, de&artmental, di.isional, and organi5ational boundaries< =%is &rocess is e9em&lified by &roduct de.elo&ment< reating a &roduct conce&t in.ol.es a community of interacting indi.iduals wit% different backgrounds and mental models< W%ile t%e members from t%e RLD de&artment focus on tec%nological &otential, t%ose from t%e &roduction and marketing de&artments are interested in ot%er issues< 4nly some of t%ose different e9&eriences, mental models, moti.ations, and intentions can be e9&ressed in e9&licit language< =%us, t%e sociali5ation &rocess of s%aring tacit knowledge is reFuired< Moreo.er, bot% sociali5ation and e9ternali5ation are necessary for linking indi.idualsO tacit and e9&licit knowledge< Many Da&anese com&anies %a.e ado&ted brainstorming cam&s as a tool for t%at &ur&ose< =%e &roduct created by t%is collecti.e and coo&erati.e &rocess will t%en be re.iewed for its co%erence wit% mid(range and grand conce&ts< 1.en if t%e newly created &roduct %as su&erior Fuality, it may conflict wit% t%e di.isional or organi5ational goals e9&ressed by t%e mid(range and grand conce&ts< W%at is reFuired is anot%er &rocess at a %ig%er le.el to maintain t%e integrity of t%e w%ole, w%ic% will lead to anot%er cycle of knowledge creation in a larger conte9t< N o&yrig%t >irtual :ni.ersity of 7akistan 1#2Knowledge Management EM!M=(/#0 >: -1++4N 2" 1N3)-1R+ 4$ +1I 7R41++ 1nabling onditions for 4rgani5ational Knowledge reation =%e role of t%e organi5ation in t%e organi5ational knowledge(creation &rocess is to &ro.ide t%e &ro&er conte9t for facilitating grou& acti.ities
$i.e(7%ase Model of t%e 4rgani5ational Knowledge ( reation 7rocess =%us far we %a.e looked at eac% of t%e four modes of knowledge con.ersion and t%e fi.e enabling conditions t%at &romote organi5ational knowledge creation< In t%is section we &resent an integrated, fi.e(&%ase model of t%e organi5ational knowledge(creation &rocess, using t%e basic constructs de.elo&ed wit%in t%e t%eoretical framework and incor&orating t%e time dimension into our t%eory< =%e model, w%ic% s%ould be inter&reted as an ideal e9am&le of t%e &rocess, consists of fi.e &%ases@ B1C s%aring tacit knowledge6 B2C creating conce&ts6 B#C Kustifying conce&ts6 B'C building an arc%ety&e6 and B*C cross(le.eling knowledge < =%e organi5ational knowledge(creation &rocess starts wit% t%e s%aring of tacit knowledge, w%ic% corres&onds roug%ly to sociali5ation, since t%e ric% and unta&&ed knowledge t%at resides in indi.iduals must first be am&lified wit%in t%e organi5ation< In t%e second &%ase, tacit knowledge s%ared by, for e9am&le, a self(organi5ing team is con.erted to e9&licit knowledge in t%e form of anew conce&t, a &rocess similar to e9ternali5ation< =%e created conce&t %as to be Kustified in t%e t%ird &%ase, in w%ic% t%e organi5ation determines if t%e new conce&t is truly wort%y of &ursuit< Recei.ing t%e go(a%ead, t%e conce&ts are con.erted in t%e fourt% &%ase into an arc%ety&e, w%ic% can take t%e form of a &rototy&e in t%e case of ]%ard] &roduct de.elo&ment or an o&erating mec%anism in t%e case of ]soft] inno.ations, suc% as anew cor&orate .alue, a no.el managerial system, or an inno.ati.e organi5ational structure< =%e last &%ase e9tends t%e knowledge created in, for e9am&le, a di.ision to ot%ers in t%e di.ision, across to ot%er di.isions, or e.en to outside constituents in w%at we term cross(le.eling of knowledge< =%ese outside constituents include consumers, affiliated com&anies, uni.ersities, and distributors< 3 knowledge(creating com&any does not o&erate in a closed system but in an o&en system in w%ic% knowledge is constantly e9c%anged wit% t%e outside en.ironment< We s%all describe eac% of t%e fi.e &%ases in more detail below< =%e $irst 7%ase@ +%aring =acit Knowledge 3s we %a.e mentioned re&eatedly, an organi5ation cannot create knowledge by itself< +ince tacit knowledge %eld by indi.iduals is t%e basis of organi5ational knowledge creation, it seems natural to start t%e &rocess by focusing on tacit knowledge, w%ic% is t%e ric%, unta&&ed source of new knowledge< )ut tacit knowledge cannot be communicated or &assed onto ot%ers easily, since it is acFuired &rimarily t%roug% e9&erience and not easily e9&ressible in words< =%us, t%e s%aring of tacit knowledge among multi&le indi.iduals wit% different back(grounds, &ers&ecti.es, and moti.ations becomes t%e critical ste& for organi5ational knowledge creation to take &lace< =%e indi.idualsO emotions, feelings, and mental models %a.e to be s%ared to build mutual trust< =o effect t%at s%aring, we need a ]field] in w%ic% indi.iduals can interact wit% eac% ot%er t%roug% face( to(face dialogues< It is %ere t%at t%ey s%are e9&eriences and sync%roni5e t%eir bodily and mental r%yt%ms< =%e ty&ical field of interaction is a self(organi5ing team, in w%ic% members from .arious functional de&artments work toget%er to ac%ie.e a common goal< 19am&les of a self(organi5ing team include Matsus%itaOs 0ome )akery team and t%e Ronda ity team< 3t Matsus%ita, team members a&&renticed t%emsel.es to t%e %ead baker at t%e 4saka International 0otel to ca&ture t%e essence of kneading skill t%roug% bodily e9&erience< 3t Ronda, team members s%ared t%eir mental models and tec%nical skills in discussing w%at an ideal car s%ould e.ol.e into, often o.er sake and away from t%e office< =%ese e9am&les s%ow t%at t%e first &%ase of t%e organi5ational knowledge(creation &rocess corres&onds to sociali5ation< N o&yrig%t >irtual :ni.ersity of 7akistan 1#8Knowledge Management EM!M=(/#0 >: 3 self(organi5ing team facilitates organi5ational knowledge creation t%roug% t%e reFuisite .ariety of t%e team members, w%o e9&erience redundancy of information and s%are t%eir inter&retations of organi5ational intention< Management inKects creati.e c%aos by setting c%allenging goals and endowing team members wit% a %ig% degree of autonomy< 3n autonomous team starts to set its own task boundaries and, as a ]boundary(s&anning unit,] begins to interact wit% t%e e9ternal en.ironment, accumulating bot% tacit and e9&licit knowledge< =%e +econd 7%ase@ reating once&ts =%e most intensi.e interaction between tacit and e9&licit knowledge occurs in t%e second &%ase< 4nce a s%ared mental model is formed in t%e field of interaction, t%e self(organi5ing team t%en articulates it t%roug% furt%er continuous dialogue, in t%e form of collecti.e reflection< =%e s%ared tacit mental model is .erbali5ed into words and &%rases, and finally crystalli5ed into e9&licit conce&ts< In t%is sense, t%is &%ase corres&onds to e9ternali5ation< =%is &rocess of con.erting tacit knowledge into e9&licit knowledge is facilitated by t%e use of multi&le reasoning met%ods suc% as deduction, induction, and abduction< 7articularly useful for t%is &%ase is abduction, w%ic% em&loys figurati.e language suc% as meta&%ors and analogies< In de.elo&ing ity, for e9am&le, t%e Ronda de.elo&ment team made am&le use of figurati.e language suc% as ]3utomobile 1.olution,] ]man(ma9imum, mac%ine(minimum,] and ]=all )oy<] =%e Fuality of dialogue among team members can also be raised t%roug% t%e use of dialectics, w%ic% instills a creati.e way of t%inking into t%e organi5ation< It is an iterati.e and s&iral &rocess in w%ic% contradictions and &arado9es are utili5ed to synt%esi5e new knowledge< once&ts are created coo&erati.ely in t%is &%ase t%roug% dialogue< 3utonomy %el&s team members to di.erge t%eir t%inking freely, wit% intention ser.ing as a tool to con.erge t%eir t%inking in one direction< =o create conce&ts, team members %a.e to ret%ink t%eir e9isting &remises fundamentally< ReFuisite .ariety %el&s t%e team in t%is regard by &ro.iding different angles or &ers&ecti.es for looking at a &roblem< $luctuation and c%aos, eit%er from t%e outside or inside, also %el& members to c%ange t%eir way of t%inking fundamentally< Redundancy of information enables team members to understand figurati.e language better and to crystalli5e t%eir s%ared mental model< =%e =%ird 7%ase@ Dustifying once&ts In our t%eory of organi5ational knowledge creation, knowledge is defined as Kustified true belief< =%erefore, new conce&ts created by indi.iduals or t%e team need to be Kustified at some &oint in t%e &rocedure< Dustification in.ol.es t%e &rocess of determining if t%e newly created conce&ts are truly wort%w%ile for t%e organi5ation and society< It is similar to a screening &rocess< Indi.iduals seem to be Kustifying or screening information, conce&ts, or knowledge continuously and unconsciously t%roug%out t%e entire &rocess< =%e organi5ation, %owe.er, must conduct t%is Kustification in a more e9&licit way to c%eck if t%e organi5ational intention is still intact and to ascertain if t%e conce&ts being generated meet t%e needs of society at large< =%e most a&&ro&riate time for t%e organi5ation to conduct t%is screening &rocess is rig%t after t%e conce&ts %a.e been created< $or business organi5ations, t%e normal Kustification criteria include cost, &rofit margin, and t%e degree to w%ic% a &roduct can contribute to t%e firmOs growt%< )ut Kustification criteria can be bot% Fuantitati.e and Fualitati.e< $or e9am&le, in t%e Ronda ity case, t%e ]=all )oy] conce&t %ad to be Kustified against t%e .ision establis%ed by to& management(to come u& wit% a &roduct conce&t fundamentally different from anyt%ing t%e com&any %ad done before and to make a car t%at was ine9&ensi.e but not c%ea&< It also %ad to be Kustified against t%e &roduct(line conce&t articulated by middle management(to make t%e car ]man(ma9imum, mac%ine(minimum<] More abstract criteria may include .alue &remises suc% as ad.enture, romanticism, and aest%etics< =%us Kustification criteria need not be strictly obKecti.e and factual6 t%ey can also be Kudgmental and .alue(laden< In a knowledge(creating com&any, it is &rimarily t%e role of to& management to formulate t%e Kustification criteria in t%e form of organi5ational intention, w%ic% is e9&ressed in terms of strategy or .ision< Middle management can also formulate t%e Kustification criteria in t%e form of mid(range conce&ts< 3lt%oug% t%e key Kustification criteria are set by to& management, and to some e9tent by middle management, t%is does not &reclude ot%er organi5ational units from %a.ing some autonomy in deciding t%eir own sub criteria< $or e9am&le, a committee com&rised of 200 young em&loyees wit%in N o&yrig%t >irtual :ni.ersity of 7akistan 1'0Knowledge Management EM!M=(/#0 >: Matsus%ita determined t%at Matsus%ita em&loyees in t%e twenty(first century s%ould become ].oluntary indi.iduals] to ada&t to e9&ected social c%anges, as will be discussed in more detail in t%e ne9t c%a&ter< =o t%is e9tent, a com&anyOs Kustification criteria s%ould be consistent wit% .alue systems or needs of t%e society at large, w%ic% s%ould ideally be reflected in organi5ational intention< =o a.oid any misunderstanding about t%e com&anyOs intention, redundancy of information %el&s facilitate t%e Kustification &rocess< =%e $ourt% 7%ase@ )uilding an 3rc%ety&e In t%is fourt% &%ase, t%e Kustified conce&t is con.erted into somet%ing tangible or concrete, namely, an arc%ety&e< 3n arc%ety&e can be t%oug%t of as a &rototy&e in t%e case of a new(&roduct de.elo&ment &rocess< In t%e case of ser.ice or organi5ational inno.ation, an arc%ety&e could be t%oug%t of as a model o&erating mec%anism< In eit%er case, it is built by combining newly created e9&licit knowledge wit% e9isting e9&licit knowledge< In building a &rototy&e, for e9am&le, t%e e9&licit knowledge to be combined could take t%e form of tec%nologies or com&onents< )ecause Kustified conce&ts, w%ic% are e9&licit, are con.erted into arc%ety&es, w%ic% are also e9&licit, t%is &%ase is akin to combination< Dust as an arc%itect builds a mock(u& before starting t%e actual construction, organi5ational members engage in building a &rototy&e of t%e real &roduct or a model of t%e actual system< =o build a &rototy&e, t%ey &ull toget%er &eo&le wit% differing e9&ertise Be<g<, RLD, &roduction, marketing, Fuality controlC, de.elo& s&ecifications t%at meet e.eryoneOs a&&ro.al, and actually manufacture t%e first full(scale form of a newly created &roduct conce&t< =o build a model, say, of anew organi5ational structure, &eo&le from t%e affected sections wit%in t%e organi5ation, as well as e9&erts in different fields Be<g<, %uman re( sources management, legal, strategic &lanningC, are assembled to draw u& a new organi5ational c%art, Kob descri&tion, re&orting system, or o&erating &rocedure< In a way, t%eir role is similar to t%at of t%e arc%itect(t%ey are res&onsible for de.elo&ing t%e blue&rint as well as actually building t%e new form of an organi5ational conce&t< 3ttention to detail is t%e key to managing t%is com&le9 &rocess< )ecause t%is &%ase is com&le9, dynamic coo&eration of .arious de&artments wit%in t%e organi5ation is indis&ensable< )ot% reFuisite .ariety and redundancy of information facilitate t%is &rocess< 4rgani5ational intention also ser.es as a useful tool for con.erging t%e .arious kinds of know(%ow and tec%nologies t%at reside wit%in t%e organi5ation, as well as for &romoting inter&ersonal and interde&artmental coo&eration< 4n t%e ot%er %and, autonomy and fluctuation are generally not t%at rele.ant at t%is stage of t%e organi5ational knowledge(creation &rocess< =%e $ift% 7%ase@ ross(-e.eling of Knowledge 4rgani5ational knowledge creation is a ne.er(ending &rocess t%at u&(grades itself continuously< It does not end once an arc%ety&e %as been de.elo&ed< =%e new conce&t, w%ic% %as been created, Kustified, and modeled, mo.es on to anew cycle of knowledge creation at a different ontological le.el< =%is interacti.e and s&iral &rocess, w%ic% we call cross(le.eling of knowledge, takes &lace bot% intra( organi5ationally and inter(organi5ationally< Intra(organi5ationally, knowledge t%at is made real or t%at takes form as an arc%ety&e can trigger anew cycle of knowledge creation, e9&anding %ori5ontally and .ertically across t%e organi5ation< 3n e9am&le of %ori5ontal cross(fertili5ation can be seen wit%in Matsus%ita, w%ere 0ome )akery induced t%e creation of ot%er ]1asy L Ric%] &roduct conce&ts, suc% as a fully automatic coffee maker wit%in t%e same di.ision and anew generation of large(screen => sets from anot%er di.ision< In t%ese cases, cross( fertili5ation took &lace across different sections wit%in a di.ision as well as across different di.isions< 3n e9am&le of .ertical cross(fertili5ation also comes from Matsus%ita< =%e de.elo&ment of 0ome )akery ins&ired Matsus%ita to ado&t ]0uman 1lectronics] as t%e umbrella conce&t at t%e cor&orate le.el< =%is umbrella conce&t o&ened u& a series of soul(searc%ing acti.ities wit%in t%e com&any to address w%at kind of com&any Matsus%ita s%ould be in t%e twenty(first century and %ow ]%uman] Matsus%ita em&loyees can be< =%ese acti.ities culminated in t%e de.elo&ment of MI=O8# BMind and Management Inno.ation =oward O8#C, w%ic% was instrumental in reducing t%e number of annual working %ours at t%e front line to 1,200 %ours, t%ereby freeing u& time for &eo&le at t%e front line< In t%is case, knowledge created in one di.ision led to t%e ado&tion of an umbrella conce&t at t%e cor&orate le.el, w%ic% in turn affected t%e li.es of em&loyees at t%e front line< N o&yrig%t >irtual :ni.ersity of 7akistan 1'1Knowledge Management EM!M=(/#0 >: Inter(organi5ationally, knowledge created by t%e organi5ation can mobili5e knowledge of affiliated com&anies, customers, su&&liers, com&etitors, and ot%ers outside t%e com&any t%roug% dynamic interaction< $or e9am&le, an inno.ati.e new a&&roac% to budgetary control de.elo&ed by one com&any could bring about c%anges in an affiliated com&anyOs financial control system, w%ic% in turn may trigger a new round of inno.ation< 4r a customerOs reaction or feedback to a new(&roduct conce&t may initiate a new cycle of &roduct de.elo&ment< 3t 3&&le om&uter, for e9am&le, w%en &roduct de.elo&ment engineers come u& wit% ideas for new &roducts, t%ey build a &rototy&e t%at embodies t%ose ideas and bring it directly to customers to seek t%eir reaction< De&ending on t%e reaction or feedback, a new round of de.elo&ment may be initiated< $or t%is &%ase to function effecti.ely, it is essential t%at eac% organi5ational unit %a.e t%e autonomy to take t%e knowledge de.elo&ed somew%ere else and a&&ly it freely across different le.els and boundaries< Internal fluctuation, suc% as t%e freFuent rotation of &ersonnel, will facilitate knowledge transfer< +o will redundancy of information and reFuisite .ariety< 3nd in intra(organi5ational cross( le.eling, organi5ational intention will act as a control mec%anism on w%et%er or not knowledge s%ould be cross( fertili5ed wit%in t%e com&any< N o&yrig%t >irtual :ni.ersity of 7akistan 1'2Knowledge Management EM!M=(/#0 >: -1++4N 22 7R41++ 377R430 =4 KM 3ND IN$4(4M =10N4-4!M BI=C IN KM +M+=1M+ KM 7rocesses KM &rocesses are t%e broad &rocesses t%at aid in disco.ering, ca&turing, s%aring, and a&&lying knowledge< =%ese include combination, sociali5ation, e9ternali5ation, internali5ation, e9c%ange, directions, and routines< $or e9am&le, internali5ation &rocesses benefit from simulations or e9&eriments, w%ic% enable indi.iduals to learn t%roug% e9&erience, as well as from face(to(face meetings, on(t%e(Kob training, and demos< KM 7rocesses 1< Knowledge disco.ery may be defined as t%e de.elo&ment of new tacit or e9&licit knowledge from data and information or from t%e synt%esis of &rior knowledge< ombination and sociali5ation, t%e two im&ortant ways of managing knowledge disco.ery, are discussed below< =%e disco.ery of new e9&licit knowledge relies most directly on combination, w%erein t%e multi&le bodies of e9&licit knowledge, data, or information are synt%esi5ed to create new, more com&le9 sets of e9&licit knowledge< 19isting e9&licit knowledge, data, and information are reconfigured, recategori5ed and reconte9tuali5ed to &roduce new e9&licit knowledge< $or e9am&le, data mining tec%niFues may be used to unco.er new relations%i&s amongst e9&licit data t%at may be lead to create &redicti.e or categori5ation models t%at create new knowledge< =%e disco.ery of new tacit knowledge, on t%e ot%er %and, relies most directly on sociali5ation, w%ic% in.ol.es t%e integration of multi&le streams for t%e creation of new knowledge< It is t%e synt%esis of tacit knowledge across indi.iduals, usually t%roug% Koint acti.ities rat%er t%an written or .erbal instructions< $or e9am&le, a sim&le discussion among an organi5ationAs em&loyees during a coffee break can %el& in grou&(wise knowledge s%aring< =%e disco.ery of new e9&licit knowledge relies most directly on combination, w%ereas t%e disco.ery of new tacit knowledge relies most directly on sociali5ation< ombination leads to t%e disco.ery of new e9&licit knowledge w%erein t%e multi&le bodies of e9&licit knowledge are synt%esi5ed to create new, more com&le9 sets of e9&licit knowledge< +ociali5ation in.ol.es t%e integration of multi&le streams for t%e creation of new knowledge< 2< Knowledge a&ture E can be defined as t%e &rocess of retrie.ing eit%er e9&licit or tacit knowledge t%at resides wit%in &eo&le, artifacts, or organi5ational entities< =%e knowledge ca&ture &rocess benefits most directly from two KM sub &rocesses, e9ternali5ation and internali5ation< 19ternali5ation and Internali5ation %el& ca&ture t%e tacit knowledge and e9&licit knowledge, res&ecti.ely< #< Knowledge +%aring E refers to t%e &rocess t%roug% w%ic% e9&licit or tacit knowledge is communicated to ot%er indi.iduals< Knowledge s%aring in.ol.es effecti.e transfer, so t%at t%e reci&ient of knowledge can understand it well enoug% to act on it< W%at is s%ared is knowledge rat%er t%an recommendations based on t%e knowledge< Knowledge s%aring may take &lace across indi.iduals as well as across grou&s, de&artments, or organi5ations< De&ending on w%et%er e9&licit or tacit knowledge is being s%ared, e9c%ange or sociali5ation &rocesses are used< '< Knowledge 3&&lication E refers to t%e use of knowledge to make decisions and &erform tasks, t%ereby contributing to organi5ational &erformance< Knowledge a&&lication de&ends on t%e a.ailable knowledge, w%ic% in turn de&ends on t%e &rocesses of knowledge disco.ery, ca&ture, and storage< 3&&lying knowledge does not necessarily mean t%at t%e &arty t%at uses it also understands it< 3ll t%at is needed is t%at some%ow t%e knowledge be used to guide decisions and actions< Knowledge N o&yrig%t >irtual :ni.ersity of 7akistan 1'#Knowledge Management EM!M=(/#0 >: a&&lication benefits from two &rocesses t%at do not in.ol.e t%e actual transfer or e9c%ange of knowledge between t%e concerned indi.iduals, routines and direction< In knowledge a&&lication, t%e &arty t%at makes use of t%e knowledge, does not necessarily need to understand it, but s%ould be able to use t%e knowledge to guide decisions and actions knowledge a&&lication benefits from two &rocesses t%at do not in.ol.e t%e actual transfer or e9c%ange of knowledge between t%e concerned indi.iduals, routines and direction< Direction refers to t%e &rocess t%roug% w%ic% t%e indi.idual &ossessing t%e knowledge directs t%e action of anot%er indi.idual wit%out transferring to %im t%e knowledge underlying t%e direction< =%is &reser.es t%e ad.antages of s&eciali5ation and a.oids t%e difficulties in%erent in t%e transfer of tacit knowledge< 3n e9am&le of Direction would be w%en a com&uter &rogrammer calls %is software &roKect manager to ask %ow to sol.e a &articular &roblem wit% a &iece of code, and t%en &roceeds to sol.e t%e &roblem based on t%e instructions gi.en by t%e &roKect manager< 0e does t%is wit%out acFuiring t%e knowledge %imself, so t%at if a similar &roblem reoccurs in t%e future, %e would be unable to identify it as suc% and would t%erefore be unable to sol.e it %imself wit%out calling an e9&ert< Routines in.ol.e t%e utili5ation of knowledge embedded in &rocedures, rules, and norms t%at guide future be%a.ior< Routines economi5e on communication more t%an directions as t%ey are embedded in &rocedures or tec%nologies< 0owe.er, since t%ey reFuire constant re&etition, t%ey take time to de.elo&< $or e9am&le, a com&uteri5ed in.entory management system utili5es considerable knowledge about t%e relations%i& between demand and su&&ly, but neit%er t%e knowledge nor t%e directions are communicated t%roug% indi.iduals< om&arison of internali5ation and e9ternali5ation &rocesses for managing knowledge< Internali5ation is t%e con.ersion of e9&licit knowledge into tacit knowledge< =%e e9&licit knowledge may be in t%e form of action and &ractice, so t%at t%e indi.idual acFuiring t%e knowledge can re( e9&erience w%at ot%ers %a.e gone t%roug%< 3lternati.ely, indi.iduals could acFuire tacit knowledge in .irtual situations, eit%er .icariously by reading manuals or ot%ersO stories, or e9&erientially t%roug% simulations or e9&eriments< 3n e9am&le of internali5ation would be a doctor, fres% out of medical sc%ool, reading a book on new surgery tec%niFues, and learning from it< =%is learning %el&s t%e doctor, and t%e %os&ital %e works for, ca&ture t%e knowledge contained in t%e book< 19ternali5ation in.ol.es con.erting tacit knowledge into e9&licit forms suc% as words, conce&ts, .isuals, or figurati.e language< It %el&s translate indi.idualsA tacit knowledge into e9&licit forms t%at can be more easily understood by t%e rest of t%eir grou&< It is a com&le9 &rocess because tacit knowledge is often difficult to articulate< 3n e9am&le of e9ternali5ation is a doctor transcribing and documenting %is t%oug%ts and obser.ations w%ile e9amining a &atient so as to sa.e it in t%e &atientAs medical file for future reference< =%is ca&tures t%e tacit knowledge acFuired by t%e doctor and makes it a.ailable for future use by t%e %os&ital< =%us, internali5ation and e9ternali5ation bot% add .alue to t%e knowledge ca&ture &rocess< 0owe.er, e9ternali5ation %el&s ca&ture tacit knowledge w%ile internali5ation %el&s ca&ture e9&licit knowledge< W%at is Xknowledge s%aringH as o&&osed to Gknowledge a&&licationH? Knowledge s%aring and knowledge a&&lication are two different ste&s in t%e KM &rocess< =%ey are described below@ Knowledge s%aring is t%e &rocess t%roug% w%ic% e9&licit or tacit knowledge is communicated to ot%er indi.iduals< Knowledge s%aring in.ol.es t%e reci&ient acFuiring t%e s%ared knowledge as well as being able to take action based on it, as o&&osed to recommendations based on t%e knowledge being s%ared, w%ic% only results in t%e utili5ation of knowledge wit%out t%e reci&ient internali5ing t%e s%ared knowledge< Knowledge s%aring can occur across indi.iduals as well as across grou&s, de&artments, or organi5ations< If knowledge e9ists at a location t%at is different from w%ere it is needed, eit%er knowledge s%aring or knowledge utili5ation wit%out s%aring is necessary< 0owe.er, s%aring knowledge is clearly an im&ortant &rocess in en%ancing organi5ational inno.ati.eness and &erformance< De&ending on w%et%er e9&licit or tacit knowledge is being s%ared, e9c%ange or sociali5ation &rocesses are used< +ociali5ation facilitates t%e s%aring of tacit knowledge in cases in w%ic% new tacit knowledge is being N o&yrig%t >irtual :ni.ersity of 7akistan 1''Knowledge Management EM!M=(/#0 >: created, as well as w%en new tacit knowledge is not being created< 19c%ange, on t%e ot%er %and, focuses on t%e s%aring of e9&licit knowledge< It is used to communicate or transfer e9&licit knowledge among indi.iduals, grou&s, and organi5ations< In its basic nature, t%e &rocess of e9c%ange of e9&licit knowledge does not differ from t%e &rocess t%roug% w%ic% information is communicated< Knowledge a&&lication de&ends on t%e a.ailable knowledge, w%ic% in turn de&ends on t%e &rocesses of knowledge disco.ery, ca&ture, and storage< =%e better t%e &rocesses of knowledge disco.ery, ca&ture, and storage, t%e greater t%e likeli%ood t%at t%e knowledge needed for effecti.e decision making is a.ailable< In knowledge a&&lication, t%e &arty t%at makes use of t%e knowledge does not necessarily need to understand it, but s%ould be able to use t%e knowledge to guide decisions and actions< Knowledge a&&lication t%us benefits from two &rocesses t%at do not in.ol.e t%e actual transfer or e9c%ange of knowledge between t%e concerned indi.iduals E routines and direction< Routines in.ol.e t%e utili5ation of knowledge embedded in &rocedures, rules, and norms t%at guide future be%a.ior< Routines economi5e on communication more t%an directions as t%ey are embedded in &rocedures or tec%nologies< 0owe.er, t%ey take time to de.elo& and rely on constant re&etition< Direction, in contrast, refers to t%e &rocess t%roug% w%ic% t%e indi.idual &ossessing t%e knowledge directs t%e action of anot%er indi.idual wit%out transferring to %im t%e knowledge underlying t%e direction< =%is &reser.es t%e ad.antages of s&eciali5ation and a.oids t%e difficulties in%erent in t%e transfer of tacit knowledge< I= in Knowledge Management 3s we trace t%e e.olution of com&uting tec%nologies in business, we can obser.e t%eir c%anging le.el of organi5ational im&act< =%e first le.el of im&act was at t%e &oint w%ere work got done and transactions Be<g<, orders, de&osits, reser.ationsC took &lace< =%e infle9ible, centrali5ed mainframe allowed for little more t%an massi.e number crunc%ing, commonly known as electronic data &rocessing< 4rgani5ations became data %ea.y at t%e bottom and data management systems were used to kee& t%e data in c%eck< -ater, t%e management information systems were used to aggregate data into useful information re&orts, often &resc%eduled, for t%e control le.el of t%e organi5ation ( &eo&le w%o were making sure t%at organi5ational resources like &ersonnel, money, and &%ysical goods were being de&loyed efficiently< 3s information tec%nology BI=C and information systems BI+C started to facilitate data and information o.erflow, and cor&orate attention became a scarce resource, t%e conce&t of knowledge emerged as a &articularly %ig%(.alue form of information<
Information and communication tec%nology can &lay an im&ortant role in successful knowledge management initiati.es< 0owe.er, t%e conce&t of coding and transmitting knowledge in organi5ations is not new@ training and em&loyee de.elo&ment &rograms, organi5ational &olicies, routines, &rocedures, re&orts, and manuals %a.e ser.ed t%is function for many years< W%at is new and e9citing in t%e knowledge management area is t%e &otential for using modern information tec%nology Be<g<, t%e Internet, intranets, e9tranets, browsers, data ware%ouses, data filters, software agents, e9&ert systemsC to su&&ort knowledge creation, s%aring and e9c%ange in an organi5ation and between organi5ations< Modern information tec%nology can collect, systemati5e, structure, store, combine, distribute and &resent information of .alue to knowledge workers<
=%e low cost of com&uters and networks %as created a &otential infrastructure for knowledge s%aring and o&ened u& im&ortant knowledge management o&&ortunities< =%e com&utational &ower as suc% %as little rele.ance to knowledge work, but t%e communication and storage ca&abilities of networked com&uters make it an im&ortant enabler of effecti.e knowledge work< =%roug% email, grou&ware, t%e Internet, and intranets, com&uters and networks can &oint to &eo&le wit% knowledge and connect &eo&le w%o need to s%are knowledge inde&endent of time and &lace< Regardless of definition of knowledge as t%e %ig%est .alue of content in a continuum starting at data, encom&assing information, and ending at knowledge, knowledge managers often take a %ig%ly inclusi.e a&&roac% to t%e content wit% w%ic% t%ey deal< In &ractice, w%at com&anies actually manage under t%e banner of knowledge management is a mi9 of knowledge, information, and unrefined data Z in s%ort, w%ate.er anyone finds t%at is useful and easy to store in an electronic re&ository< In t%e case of data and information, %owe.er, t%ere are often attem&ts to add more .alue and create knowledge< =%is transformation mig%t in.ol.e t%e addition of insig%t, e9&erience, conte9t, N o&yrig%t >irtual :ni.ersity of 7akistan 1'*Knowledge Management EM!M=(/#0 >: inter&retation, or t%e myriad of ot%er acti.ities in w%ic% %uman brains s&eciali5e<
Identifying, nurturing and %ar.esting knowledge is a &rinci&al concern in t%e information society and t%e knowledge age< 1ffecti.e use of knowledge(facilitating tools and tec%niFues is critical, and a number of com&utational tools %a.e been de.elo&ed< W%ile numerous tec%niFues are a.ailable, it remains difficult to analy5e or com&are t%e s&ecific tools< In &art, t%is is because knowledge management is a young disci&line< =%e arena is e.ol.ing ra&idly as more &eo&le enter t%e fray and encounter new &roblems< In addition, new tec%nologies su&&ort a&&lications t%at were im&ossible before< Moreo.er, t%e multidisci&linary c%aracter of knowledge management combines se.eral disci&line, including business and management, com&uter science, cybernetics, and &%iloso&%y< 1ac% of t%ese fields may lay claim to t%e study of knowledge management, and t%e field is freFuently defined so broadly t%at anyt%ing can be incor&orated< $inally, it is difficult to make sense of t%e many tools a.ailable< It is not difficult to &erform a searc% to &roduce a list of more t%an one %undred software &ro.iders< 1ac% of t%e software &ackages em&loys uniFue .isions and aims to ca&ture its s%are of t%e market<
4ne of t%e .iews is t%at knowledge is a social &rocess< 3s suc%, it asserts t%at knowledge resides in &eo&leAs %eads and t%at it is tacit< 3s suc%, it cannot be easily codified and is only re.ealed t%roug% its a&&lication< 3s tacit knowledge cannot be directly transferred from &erson to &erson, its acFuisition occurs only t%roug% &ractice< onseFuently, its transfer between &eo&le is slow, costly and uncertain< =ec%nology, wit%in t%is &ers&ecti.e, can only su&&ort t%e conte9t of knowledge work< It %as been argued t%at I=(based systems used to su&&ort knowledge management can only be of benefit if used to su&&ort t%e de.elo&ment and communication of %uman meaning< 4ne reason for t%e failure of I= in some knowledge management initiati.es is t%at t%e designers of t%e knowledge management systems fail to understand t%e situation and work &ractices of t%e users and t%e com&le9 %uman &rocesses in.ol.ed in work< W%ile tec%nology can be used wit% knowledge management initiati.es, Ward and 7e&&ard B2002C argue t%at it s%ould ne.er be t%e first ste&< Knowledge management is to t%em &rimarily a %uman and &rocess issue< 4nce t%ese two as&ects %a.e been addressed, t%en t%e created &rocesses are usually .ery amenable to being su&&orted and en%anced by t%e use of tec%nology<
4ur focus %ere, %owe.er, is on tec%nology t%at ca&tures, stores, and distributes structured knowledge for use by &eo&le< =%e goal of t%ese tec%nologies is to take knowledge t%at e9ists in %uman %eads and &artly in &a&er documents, and make it widely a.ailable t%roug%out an organi5ation< Knowledge Management 7rocesses and I= 3la.i and -eidner B2001C %a.e de.elo&ed a systematic framework t%at will be used to analy5e and discuss t%e &otential role of information tec%nology in knowledge management< 3ccording to t%is framework, organi5ations consist of four sets of socially enacted knowledge &rocesses@ B1C creation Balso referred to as constructionC, B2C storage and retrie.al, B#C transfer, and B'C a&&lication< =%e knowledge( based .iew of t%e firm re&resents %ere bot% t%e cogniti.e and social nature of organi5ational knowledge and its embodiment in t%e indi.idualAs cognition and &ractices as well as t%e collecti.e Bi<e<, organi5ationalC &ractices and culture< =%ese &rocesses do not re&resent a monolit%ic set of acti.ities, but an interconnected and intertwined set of acti.ities< Knowledge reation 4rgani5ational knowledge creation in.ol.es de.elo&ing new content or re&lacing e9isting content wit%in t%e organi5ationAs tacit and e9&licit knowledge< =%roug% social and collaborati.e &rocesses as well as indi.idualsA cogniti.e &rocesses Be<g<, reflectionC, knowledge is created< =%e model de.elo&ed by Nonaka et al< B2001C in.ol.ing +1I, ba and knowledge assets, .iews organi5ational knowledge creation as in.ol.ing a continual inter&lay between t%e tacit and e9&licit dimensions of N o&yrig%t >irtual :ni.ersity of 7akistan 1'/Knowledge Management EM!M=(/#0 >: knowledge and a growing s&iral flow as knowledge mo.es t%roug% indi.idual, grou&, and organi5ational le.els< $our modes of knowledge creation %a.e been identified@ sociali5ation, e9ternali5ation, internali5ation and combination< Nonaka et al< B2001C suggest t%at t%e essential Fuestion of knowledge creation is establis%ing an organi5ationAs ba, defined as a common &lace or s&ace for creating knowledge< $our ty&es of ba corres&onding to t%e four modes of knowledge creation are identified@ B1C originating ba, B2C interacting ba, B#C cyber ba, and B'C e9ercising ba< 4riginating ba entails t%e sociali5ation mode of knowledge creation and is t%e ba from w%ic% t%e organi5ational knowledge creation &rocess begins< 4riginating ba is a common &lace in w%ic% indi.iduals s%are e9&eriences &rimarily t%roug% face(to(face interactions and by being at t%e same &lace at t%e same time< Interacting ba is associated wit% t%e e9ternali5ation mode of knowledge creation and refers to a s&ace w%ere tacit knowledge is con.erted to e9&licit knowledge and s%ared among indi.iduals t%roug% t%e &rocess of dialogue and collaboration< yber ba refers to a .irtual s&ace of interaction and corres&onds to t%e combination mode of knowledge creation< $inally, e9ercising ba in.ol.es t%e con.ersion of e9&licit to tacit knowledge t%roug% t%e internali5ation &rocess< :nderstanding t%e c%aracteristics of .arious ba and t%e relations%i& wit% t%e modes of knowledge creation is im&ortant to en%ancing organi5ational knowledge creation< $or e9am&le, t%e use of I= ca&abilities in cyber ba is ad.ocated to en%ance t%e efficiency of t%e combination mode of knowledge creation< Data ware%ousing and data mining, document management systems, software agents and intranets may be of great .alue in cyber ba< onsidering t%e fle9ibility of modern I=, ot%er forms of organi5ational ba and t%e corres&onding modes of knowledge creation can be en%anced t%roug% t%e use of .arious forms of information systems< $or e9am&le, information systems designed for su&&ort or collaboration, coordination, and communication &rocesses, as a com&onent of t%e interacting ba, can facilitate teamwork and t%ereby increase an indi.idualAs contact wit% ot%er indi.iduals< 1lectronic mail and grou& su&&ort systems %a.e t%e &otential of increasing t%e number of weak ties in organi5ations< =%is in turn can accelerate t%e growt% of knowledge creation< Intranets enable e9&osure to greater amounts of online organi5ational information, bot% %ori5ontally and .ertically, t%an may &re.iously %a.e been t%e case< 3s t%e le.el of information e9&osure increases, t%e internali5ation mode of knowledge creation, w%erein indi.iduals make obser.ations and inter&retations of information t%at result in new indi.idual tacit knowledge, may increase< In t%is role, an intranet can su&&ort indi.idual learning Bcon.ersion of e9&licit knowledge to &ersonal tacit knowledgeC t%roug% &ro.ision of ca&abilities suc% as com&uter simulation Bto su&&ort learning(by( doingC and smart software tutors< om&uter(mediated communication may increase t%e Fuality of knowledge creation by enabling a forum for constructing and s%aring beliefs, for confirming consensual inter&retation, and for allowing e9&ression of new ideas< )y &ro.iding an e9tended field of interaction among organi5ational members for s%aring ideas and &ers&ecti.es, and for establis%ing dialog, information systems may enable indi.iduals to arri.e at new insig%ts and;or more accurate inter&retations t%an if left to deci&%er information on t%eir own< 3lt%oug% most information re&ositories ser.e a single function, it is increasingly common for com&anies to construct an internal G&ortalH so t%at em&loyees can access multi&le different re&ositories and sources from one screen< It is also &ossible and increasingly &o&ular for re&ositories to contain not only information, but also &ointers to e9&erts wit%in t%e organi5ation on key knowledge to&ics< It is also feasible to combine stored information wit% lists of t%e indi.iduals w%o contributed t%e knowledge and w%o could &ro.ide more detail or background on it< $or knowledge creation, t%ere is currently idea(generation software emerging< Idea( generation software is designed to %el& stimulate a single user or a grou& to &roduce new ideas, o&tions, and c%oices< =%e user does all t%e work, but t%e software encourages and &us%es, somet%ing like a &ersonal trainer< 3lt%oug% idea(generation software is relati.ely new, t%ere are se.eral &ackages on t%e market< Idea $is%er, for e9am&le, %as an associati.e le9icon of t%e 1nglis% language t%at cross( references words and &%rases< =%ese associati.e links, based on analogies and meta&%ors, make it N o&yrig%t >irtual :ni.ersity of 7akistan 1'"Knowledge Management EM!M=(/#0 >: easy for t%e user to be fed words related to a gi.en t%eme< +ome software &ackages use Fuestions to &rom&t t%e user toward new, une9&lored &atterns of t%oug%t< =%is %el&s users to break out of cyclical t%inking &atterns and conFuer mental blocks< Knowledge +torage and Retrie.al 3ccording to 3la.i and -eidner B2001C, em&irical studies %a.e s%own t%at w%ile organi5ations create knowledge and learn, t%ey also forget Bi<e<, do not remember or lose track of t%e acFuired knowledgeC< =%us, t%e storage, organi5ation, and retrie.al of organi5ational knowledge, also referred to as organi5ational memory, constitute an im&ortant as&ect of effecti.e organi5ational knowledge management< 4rgani5ational memory includes knowledge residing in .arious com&onent forms, including written documentation, structured information stored in electronic databases, codified %uman knowledge stored in e9&ert systems, documented organi5ational &rocedures and &rocesses and tacit knowledge acFuired by indi.iduals and networks of indi.iduals< 3d.anced com&uter storage tec%nology and so&%isticated retrie.al tec%niFues, suc% as Fuery languages, multimedia databases, and database management systems, can be effecti.e tools in en%ancing organi5ational memory< =%ese tools increase t%e s&eed at w%ic% organi5ational memory can be accessed< !rou&ware enables organi5ations to create intraorgani5ational memory in t%e form of bot% structured and unstructured information and to s%are t%is memory across time and s&ace< I= can &lay an im&ortant role in t%e en%ancement and e9&ansion of bot% semantic and e&isodic organi5ational memory< +emantic memory refers to general, e9&licit and articulated knowledge, w%ereas e&isodic memory refers to conte9t(s&ecific and situated knowledge< Document management tec%nology allows knowledge of an organi5ationAs &ast, often dis&ersed among a .ariety of retention facilities, to be effecti.ely stored and made accessible< Drawing on t%ese tec%nologies, most consulting firms %a.e created semantic memories by de.elo&ing .ast re&ositories of knowledge about customers, &roKects, com&etition, and t%e industries t%ey ser.e< !ro.er and Da.en&ort B2001C found t%at in Western organi5ations, by far t%e most common obKecti.e of knowledge management &roKects in.ol.es some sort of knowledge re&ository< =%e obKecti.e of t%is ty&e of &roKect is to ca&ture knowledge for later and broader access by ot%ers wit%in t%e same organi5ation< ommon re&ository tec%nologies include -otus Notes, Web(based intranets, and MicrosoftAs 19c%ange, su&&lemented by searc% engines, document management tools, and ot%er tools t%at allow editing and access< =%e re&ositories ty&ically contain a s&ecific ty&e of information to re&resent knowledge for a &articular business function or &rocess, suc% as@ J G)est &racticesH information wit%in a Fuality or business &rocess management function6 J Information for sales &ur&oses in.ol.ing &roducts, markets, and customers6 J -essons learned in &roKects or &roduct de.elo&ment efforts6 J Information around im&lementation of information systems6 J om&etiti.e intelligence for strategy and &lanning functions6 J G-earning %istoriesH or records of e9&erience wit% a new cor&orate direction or a&&roac%<
Knowledge retrie.al can find su&&ort in content management and information e9traction tec%nology, w%ic% re&resent a grou& of tec%niFues for managing and e9tracting information from documents, ultimately deli.ering a semantic meaning for decision makers or learners alike< =%is ty&e of com&uter a&&lications is targeted at ca&turing and e9tracting t%e content of free(te9t documents< =%ere are se.eral tasks t%at fall wit%in t%e sco&e of content management and information e9traction< J 3bstracting and summari5ing< =%is task aims at deli.ering s%orter, informati.e re&resentations of larger Bsets ofC documents< J >isuali5ation< Documents can often be .isuali5ed according to t%e conce&ts and relations%i&s t%at &lay a role< >isuali5ation can be eit%er in an intros&ecti.e manner, or using some reference model;.iew of a s&ecific to&ic< N o&yrig%t >irtual :ni.ersity of 7akistan 1'2Knowledge Management EM!M=(/#0 >: J om&arison and searc%< =%is task finds semantically similar &ieces of information< J Inde9ing and classification< =%is considers B&artialC te9ts, usually according to certain categories< J =ranslation< onte9t(dri.en translation of te9ts from one language into anot%er< -anguage translation %as &ro.en to be %ig%ly conte9t s&ecific, e.en among closely related languages< +ome kind of semantic re&resentation of meaning is needed in order to be able to make good translations< J Iuestion formulation and Fuery answering< =%is is a task in %uman(com&uter interaction systems< J 19traction of information< =%is refers to t%e generation of additional information t%at is not e9&licit in t%e original te9t< =%is information can be more or less elaborate< Knowledge =ransfer Knowledge transfer occurs at .arious le.els in an organi5ation@ transfer of knowledge between indi.iduals, from indi.iduals to e9&licit sources, from indi.iduals to grou&s, between grou&s, across grou&s, and from t%e grou& to t%e organi5ation< onsidering t%e distributed nature of organi5ational cognition, an im&ortant &rocess of knowledge management in organi5ational settings is t%e transfer of knowledge to locations w%ere it is needed and can be used< 0owe.er, t%is is not a sim&le &rocess in t%at organi5ations often do not know w%at t%ey know and %a.e weak systems for locating and retrie.ing knowledge t%at resides in t%em< ommunication &rocesses and information flows dri.e knowledge transfer in organi5ations< Knowledge transfer c%annels can be informal or formal, &ersonal or im&ersonal< I= can su&&ort all four forms of knowledge transfer, but %as mostly been a&&lied to informal, im&ersonal means Bsuc% as discussion databasesC and formal, im&ersonal means Bsuc% as cor&orate directoriesC< 3n inno.ati.e use of tec%nology for transfer is use of intelligent agent software to de.elo& interest &rofiles of organi5ational members in order to determine w%ic% members mig%t be interested reci&ients of &oint( to(&oint electronic messages e9c%anged among ot%er members< 1m&loying .ideo tec%nologies can also en%ance transfer< I= can increase knowledge transfer by e9tending t%e indi.idualAs reac% beyond t%e formal communication lines< =%e searc% for knowledge sources is usually limited to immediate coworkers in regular and routine contact wit% t%e indi.idual< 0owe.er, indi.iduals are unlikely to encounter new knowledge t%roug% t%eir close(knit work networks because indi.iduals in t%e same cliFue tend to &ossess similar information< Moreo.er, indi.iduals are often unaware of w%at t%eir co%orts are doing< =%us, e9&anding t%e indi.idualAs network to more e9tended, alt%oug% &er%a&s weaker, connections is central to t%e knowledge diffusion &rocess because suc% networks e9&ose indi.iduals to more new ideas< om&uter networks and electronic bulletin boards and discussion grou&s create a forum t%at facilitates contact between t%e &erson seeking knowledge and t%ose w%o may %a.e access to t%e knowledge< or&orate directories may enable indi.iduals to ra&idly locate t%e indi.idual w%o %as t%e knowledge t%at mig%t %el& t%em sol.e a current &roblem< $or e9am&le, t%e &rimary content of suc% a system can be a set of e9&ert &rofiles containing information about t%e backgrounds, skills and e9&ertise of indi.iduals w%o are knowledgeable on .arious to&ics< 4ften suc% metadata Bknowledge about w%ere knowledge residesC &ro.e to be as im&ortant as t%e original knowledge itself< 7ro.iding ta9onomies or organi5ational knowledge ma&s enables indi.iduals to ra&idly locate eit%er t%e knowledge or t%e indi.idual w%o %as t%e needed knowledge, more ra&idly t%an would be &ossible wit%out suc% I=(based su&&ort< =%e term I= for information tec%nology is used in t%is book< +ome use I= for information and communication tec%nology to stress t%e im&ortance of communication in knowledge management< ommunication is im&ortant in knowledge management because tec%nology &ro.ides su&&ort for bot% intraorgani5ational as well as interorgani5ational knowledge networks< Knowledge networks need tec%nology in t%e form of tec%nical infrastructure, communication networks and a set of information ser.ices< Knowledge networks enable knowledge workers to s%are information N o&yrig%t >irtual :ni.ersity of 7akistan 1'8Knowledge Management EM!M=(/#0 >: from .arious sources< =raditional information systems %a.e been of im&ortance to .ertical integration for a long time< )ot% customers and su&&liers %a.e been linked to t%e com&any t%roug% information systems< 4nly recently %as %ori5ontal integration occurred< Knowledge workers in similar businesses coo&erate to find o&timal solutions for customers< I= %as become an im&ortant .ertical and %ori5ontal interorgani5ational coordination mec%anism< =%is is not only because of t%e a.ailability of broadband and standardi5ed &rotocols< It is also caused by falling &rices for communication ser.ices and by software &rogramsA ability to coordinate functions between firms< Knowledge 3&&lication 3n im&ortant as&ect of t%e knowledge(based .iew of t%e firm is t%at t%e source of com&etiti.e ad.antage resides in t%e a&&lication of t%e knowledge rat%er t%an in t%e knowledge itself< Information tec%nology can su&&ort knowledge a&&lication by embedding knowledge into organi5ational routines< 7rocedures t%at are culture(bound can be embedded into I= so t%at t%e systems t%emsel.es become e9am&les of organi5ational norms< =ec%nology(enforced knowledge a&&lication raises a concern t%at knowledge will continue to be a&&lied after its real usefulness %as declined< W%ile t%e institutionali5ation of best &ractices by embedding t%em into I= mig%t facilitate efficient %andling of routine, linear, and &redictable situations during stable or incrementally c%anging en.ironments, w%en c%ange is radical and discontinuous, t%ere is a &ersistent need for continual renewal of t%e basic &remises underlying t%e &ractices arc%i.ed in t%e knowledge re&ositories< =%is underscores t%e need for organi5ational members to remain attuned to conte9tual factors and e9&licitly consider t%e s&ecific circumstances of t%e current en.ironment< 3lt%oug% t%ere are c%allenges wit% a&&lying e9isting knowledge, I= can %a.e a &ositi.e influence on knowledge a&&lication< I= can en%ance knowledge integration and a&&lication by facilitating t%e ca&ture, u&dating, and accessibility of organi5ational directi.es< $or e9am&le, many organi5ations are en%ancing t%e ease of access and maintenance of t%eir directi.es Bre&air manuals, &olicies, and standardsC by making t%em a.ailable on cor&orate intranets< =%is increases t%e s&eed at w%ic% c%anges can be a&&lied< 3lso, organi5ational units can follow a faster learning cur.e by accessing t%e knowledge of ot%er units %a.ing gone t%roug% similar e9&eriences< Moreo.er, by increasing t%e si5e of indi.idualsA internal social networks and by increasing t%e amount of organi5ational memory a.ailable, information tec%nologies allow for organi5ational knowledge to be a&&lied across time and s&ace< I= can also en%ance t%e s&eed of knowledge integration and a&&lication by codifying and automating organi5ational routines< Workflow automation systems are e9am&les of I= a&&lications t%at reduce t%e need for communication and coordination and enable more efficient use of organi5ational routines t%roug% timely and automatic routing of work(related documents, information, rules, and acti.ities< Rule(based e9&ert systems are anot%er means of ca&turing and enforcing well(s&ecified organi5ational &rocedures< In summary6 Knowledge creation@ 19am&les of su&&orting information tec%nologies are data mining and learning tools, w%ic% enable combining new sources of knowledge and Kust in time learning< Knowledge storage and retrie.al@ 19am&les of su&&orting information tec%nologies are electronic bulletin boards, knowledge re&ositories, and databases, w%ic% &ro.ide su&&ort of indi.idual and organi5ational memory as well as inter(grou& knowledge access< Knowledge transfer@ 19am&les of su&&orting information tec%nologies are electronic bulletin boards, discussion forums, and knowledge directories, w%ic% enable more e9tensi.e internal networks, more a.ailable communication c%annels, and faster access to knowledge sources< Knowledge a&&lication@ 19am&les of su&&orting information tec%nologies are e9&ert systems and N o&yrig%t >irtual :ni.ersity of 7akistan 1*0Knowledge Management EM!M=(/#0 >: workflow systems, w%ic% enable knowledge a&&lication in many locations and more ra&id a&&lication of new knowledge t%roug% workflow automation< Knowledge Management +ystems =%ere is no single information system t%at is able to co.er all knowledge management needs in a firm< =%is is e.ident from t%e wides&read &otential of I= in knowledge management &rocesses< Rat%er, knowledge management systems BKM+C refer to a class of information systems a&&lied to managing organi5ational knowledge< =%ese systems are I= a&&lications to su&&ort and en%ance t%e organi5ational &rocesses of knowledge creation, storage and retrie.al, transfer, and a&&lication B3la.i L -eidner, 2001C< ReFuirements from Knowledge Management =%e critical role of information tec%nology and information systems lies in t%e ability to su&&ort communication, collaboration, and t%ose searc%ing for knowledge, and t%e ability to enable collaborati.e learning< We %a.e already touc%ed on im&ortant im&lications for information systems in &re.ious c%a&ters of t%is book@ 1< Interaction between information and knowledge< Information becomes knowledge w%en it is combined wit% e9&erience, inter&retation and reflection< Knowledge becomes information w%en assigned an e9&licit re&resentation< +ometimes information e9ists before knowledge6 sometimes knowledge e9ists before information< 4ne im&ortant im&lication of t%is two(way direction between knowledge and information is t%at information systems designed to su&&ort knowledge in organi5ations may not a&&ear to be radically different from ot%er forms of I= su&&ort, but will be geared toward enabling users to assign meaning to information and to ca&ture some of t%eir knowledge in information B3la.i L -eidner, 2001C< 2< Interaction between tacit and e9&licit knowledge< =acit and e9&licit knowledge de&end on eac% ot%er, and t%ey influence eac% ot%er< =%e linkage of tacit and e9&licit knowledge suggests t%at only indi.iduals wit% a reFuisite le.el of s%ared knowledge are able to e9c%ange knowledge< =%ey suggest t%e e9istence of a s%ared knowledge s&ace t%at is reFuired in order for indi.idual 3 to understand indi.idual )As knowledge< =%e knowledge s&ace is t%e underlying o.erla& in t%e knowledge base of 3 and )< =%is o.erla& is ty&ically tacit knowledge< It may be argued t%at t%e greater t%e s%ared knowledge s&ace, t%e less t%e conte9t needed for indi.iduals to s%are knowledge wit%in t%e grou& and, %ence, t%e %ig%er t%e .alue of e9&licit knowledge< I= is bot% de&endent on t%e s%ared knowledge s&ace and an im&ortant &art of t%e s%ared knowledge s&ace< I= is de&endent on t%e s%ared knowledge s&ace because knowledge workers need to %a.e a common understanding of a.ailable information in information systems in t%e organi5ation< If common understanding is missing, t%en knowledge workers are unable to make use of information< I= is an im&ortant &art of t%e s%ared knowledge s&ace because information systems make common information a.ailable to all knowledge workers in t%e organi5ation< 4ne im&ortant im&lication of t%is two(way relations%i& between knowledge s&ace and information systems is t%at a minimum knowledge s&ace %as to be &resent so t%at I= can contribute to growt% in t%e knowledge s&ace B3la.i L -eidner, 2001C< #< Knowledge management strategy< 1fficiency(dri.en businesses may a&&ly t%e stock strategy, in w%ic% databases and information systems are im&ortant< 1ffecti.eness(dri.en businesses may a&&ly t%e flow strategy, in w%ic% information networks are im&ortant< 19&ert( dri.en businesses may a&&ly t%e growt% strategy, in w%ic% networks of e9&erts, work &rocesses and learning en.ironments are im&ortant B0ansen et al<, 1888C< '< ombination in +1I &rocess< =%e +1I &rocess consists of four knowledge con.ersion modes< =%ese modes are not eFually suited for I= su&&ort< +ociali5ation is t%e &rocess of con.erting new tacit knowledge to tacit knowledge< =%is takes &lace in t%e %uman brain< 19ternali5ation is t%e &rocess of con.erting tacit knowledge to e9&licit knowledge< =%e successful con.ersion of tacit knowledge into e9&licit knowledge de&ends on t%e seFuential N o&yrig%t >irtual :ni.ersity of 7akistan 1*1Knowledge Management EM!M=(/#0 >: use of meta&%ors, analogy and model< ombination is t%e &rocess of con.erting e9&licit knowledge into more com&le9 and systematic sets of e9&licit knowledge< 19&licit knowledge is collected from inside and outside t%e organi5ation and t%en combined, edited and &rocessed to form new knowledge< =%e new e9&licit knowledge is t%en disseminated among t%e members of t%e organi5ation< 3ccording to Nonaka et al< B2000C, creati.e use of com&uteri5ed communication networks and large(scale databases can facilitate t%is mode of knowledge con.ersion< W%en t%e financial controller collects information from all &arts of t%e organi5ation and &uts it toget%er to s%ow t%e financial %ealt% of t%e organi5ation, t%at re&ort is new knowledge in t%e sense t%at it synt%esi5es e9&licit knowledge from many different sources in one conte9t< $inally, internali5ation in t%e +1I &rocess con.erts e9&licit knowledge into tacit knowledge< =%roug% internali5ation, e9&licit knowledge created is s%ared t%roug%out an organi5ation and con.erted into tacit knowledge by indi.iduals< *< 19&licit transfer of common knowledge< If management decides to focus on common knowledge as defined by Di9on B2000C, knowledge management s%ould focus on t%e s%aring of common knowledge< ommon knowledge is s%ared in t%e organi5ation using fi.e mec%anisms@ serial transfer, e9&licit transfer, tacit transfer, strategic transfer and e9&ert transfer< Management %as to em&%asi5e all fi.e mec%anisms for successful s%aring and creation of common knowledge< $or serial transfer, management %as to stimulate meetings and contacts between grou& members< $or e9&licit transfer, management %as to stimulate documentation of work by t%e &re.ious grou&< $or tacit transfer, management %as to stimulate contacts between t%e two grou&s< $or strategic transfer, management %as to identify strategic knowledge and knowledge ga&s< $or e9&ert transfer, management %as to create networks in w%ic% e9&erts can transfer t%eir knowledge< =%ese fi.e mec%anisms are not eFually suited for I= su&&ort< 19&licit transfer seems .ery well suited for I= su&&ort, as t%e knowledge from t%e ot%er grou& is transferred e9&licitly as e9&licit knowledge in words and numbers and s%ared in t%e form of data, scientific formulae, s&ecifications, manuals and t%e like< 19&ert transfer also seems suited for I= su&&ort w%en generic knowledge is transferred from one indi.idual to anot%er &erson to enable t%e &erson to sol.e new &roblems wit% new met%ods< /< -ink knowledge to its uses< 4ne of t%e mistakes in knowledge management &resented by $a%ey and 7rusak B1882C was disentangling knowledge from its uses< 3 maKor manifestation of t%is error is t%at knowledge management initiati.es become ends in t%emsel.es< $or e9am&le, data ware%ousing can easily degenerate into tec%nological c%allenges< =%e rele.ance of a data ware%ouse for decisions and actions gets lost in t%e turmoil s&awned by debates about a&&ro&riate data structures< "< =reat knowledge as an intellectual asset in t%e economic sc%ool< If management decides to follow t%e economic sc%ool of knowledge management, t%en intellectual ca&ital accounting s%ould be &art of t%e knowledge management system< =%e knowledge management system s%ould su&&ort knowledge markets in w%ic% knowledge buyers, knowledge sellers and knowledge brokers can use t%e system< 2< =reat knowledge as a mutual resource in t%e organi5ational sc%ool< =%e &otential contribution of I= is linked to t%e combination of intranets and grou&ware to connect members and &ool t%eir knowledge, bot% e9&licit and tacit< 8< =reat knowledge as a strategy in t%e strategy sc%ool< =%e &otential contributions of I= are manifold once knowledge as a strategy is t%e im&etus be%ind knowledge management initiati.es< 4ne can e9&ect Fuite an eclectic mi9 of networks, systems, tools, and knowledge re&ositories< 10< >alue configuration determines knowledge needs in &rimary acti.ities< Knowledge needs can be structured according to &rimary and secondary acti.ities in t%e .alue configuration< De&ending on t%e firm being a .alue c%ain, a .alue s%o& or a .alue network, t%e knowledge management system must su&&ort more efficient &roduction in t%e .alue c%ain, adding .alue to t%e knowledge work in t%e .alue s%o&, and more .alue by use of I= infrastructure in t%e .alue network< 11< Incenti.e 3lignment< =%e first dimension of information systems design is concerned wit% software engineering Berror(free software, documentation, &ortability, modularity L arc%itecture, de.elo&ment cost, maintenance cost, s&eed, and robustnessC< =%e second dimension is concerned wit% tec%nology acce&tance Buser friendliness, user acce&tance, &ercei.ed ease( N o&yrig%t >irtual :ni.ersity of 7akistan 1*2Knowledge Management EM!M=(/#0 >: of(use, &ercei.ed usefulness, cogniti.e fit, and task(tec%nology fitC< =%e t%ird dimension t%at is &articularly im&ortant to knowledge management systems is concerned wit% incenti.e alignment< Incenti.e alignment includes incenti.es influencing user be%a.ior and t%e usersA interaction wit% t%e system, deterrence of use for &ersonal gain, use consistent wit% organi5ational goals, and robustness against information misre&resentation B)a et al<, 2001C< )enefits from Knowledge Management +ystems I= are a&&lied in knowledge management for se.eral im&ortant reasons@ J I= is an enabler of im&ro.ed indi.idual &erformance among knowledge workers< J I= is an enabler of im&ro.ed organi5ational &erformance by new business &rocesses< J I= is an enabler of im&ro.ed interorgani5ational &erformance by effecti.e knowledge networks< Knowledge management initiati.es a&&lying information tec%nology occur for many different reasons< 3 sur.ey in t%e :<+< &roduced t%e following ranking of reasons for I= in knowledge management BI4, 2001C@ 1< Im&ro.e &rofitability and income B/"UC6 2< +ecure talent and e9&ertise B*'UC6 #< Im&ro.e customer ser.ice and customer satisfaction B*2UC6 '< +ecure com&any market s%are against new com&etitors B''UC6 *< +%orten time to market of new &roducts B#8UC6 /< 1nter new market segments B#8UC6 "< Reduce costs B#2UC6 2< De.elo& new goods and ser.ices B#*UC< =%e sur.ey researc% did also include Fuestions concerning knowledge management systems< Res&onding com&anies ranked software based on dollar amount to be s&ent BI4, 2001C@ 1< Infrastructure for knowledge management B/1UC6 2< Intelligent systems for knowledge searc% B#8UC6 #< Data ware%ouse B21UC6 '< Document %andling B1"UC6 *< om&any &ortals B1/UC6 /< !rou&ware B1#UC6 "< Mail deli.ery B11UC6 2< Intelligent agents for knowledge searc% B8UC6 8< Workflow systems B2UC6 10< 1(learning B"UC< !eneral 1lectricAs 14 %as suggested t%at knowledge s%aring is im&ortant for organi5ations, W%y ? Knowledge s%aring is t%e &rocess t%roug% w%ic% e9&licit or tacit knowledge is communicated to ot%er indi.iduals< Knowledge s%aring in.ol.es t%e reci&ient acFuiring t%e s%ared knowledge as well as being able to take action based on it, as o&&osed to recommendations based on t%e knowledge being s%ared, w%ic% only results in utili5ation of knowledge wit%out t%e reci&ient internali5ing t%e s%ared knowledge< Knowledge s%aring can occur across indi.iduals as well as across grou&s, de&artments, or organi5ations< If knowledge e9ists at a location t%at is different from w%ere it is needed, eit%er knowledge s%aring or knowledge utili5ation wit%out s%aring is necessary< De&ending on w%et%er e9&licit or tacit knowledge is being s%ared, e9c%ange or sociali5ation &rocesses are used< +ociali5ation facilitates t%e s%aring of tacit knowledge in cases in w%ic% new tacit knowledge is being created, as well as w%en new tacit knowledge is not being created< 19c%ange, on t%e ot%er %and, focuses on t%e s%aring of e9&licit knowledge< It is used to communicate or transfer e9&licit knowledge among indi.iduals, grou&s, and organi5ations< In its basic nature, t%e &rocess of e9c%ange of e9&licit knowledge does not differ from t%e &rocess t%roug% w%ic% information is communicated< N o&yrig%t >irtual :ni.ersity of 7akistan 1*#Knowledge Management EM!M=(/#0 >: If knowledge e9ists at a location t%at is different from w%ere it is needed, eit%er knowledge s%aring or knowledge utili5ation wit%out s%aring is necessary< +%aring knowledge is clearly an im&ortant &rocess in en%ancing organi5ational inno.ati.eness and &erformance< Its im&ortance is elucidated by t%e fact t%at it was one of t%e t%ree business &rocesses for w%ic% !eneral 1lectricAs 14 Dack Welc% took &ersonal res&onsibility, besides t%e allocation of resources and de.elo&ment of &eo&le< N o&yrig%t >irtual :ni.ersity of 7akistan 1*'Knowledge Management EM!M=(/#0 >: -1++4N 28 4R!3NI[3=I4N3- I++:1+ IN M3N3!IN! KN4W-1D!1 W4RK1R Knowledge Workers =%e ty&ical knowledge worker in cor&orate sector works in marketing, intellectual &ro&erty, engineering, &rogramming, and ot%er occu&ations t%at in.ol.e more t%oug%t t%an &%ysical labor< $or e9am&le, artists in t%e marketing di.ision w%o &roduce t%e media files are ty&ically considered knowledge workers, as media can constitute t%e intellectual ca&ital of a com&any, w%et%er t%e com&any is a knowledge organi5ation or not< Knowledge workers ty&ically add to t%e .alue of t%e cor&oration by contributing to t%e cor&orate knowledge assets, by documenting &roblems sol.ing acti.ities, by re&orting best &ractices, and by disseminating information in newsletters, online, and in ot%er &ublications< In eac% case, t%e knowledge worker is eit%er t%e conduit for or t%e source of t%e information< ustomer su&&ort re&resentati.es are commonly considered knowledge workers because t%ey work wit% information from customers t%roug% direct contact6 t%roug% interactions t%roug% t%e &%one, e( mail, or traditional mail6 or t%roug% directly obser.ing customer acti.ity in a retail setting< Managers at all le.els can be considered knowledge workers if t%ey are in.ol.ed in creating new re.enues from e9isting knowledge by reformatting and re&ackaging information in e9isting markets or introducing e9isting &roducts into new markets< Most KM initiati.es re.ol.e around knowledge workers, w%et%er t%eyAre interacting wit% customers directly, indirectly t%roug% com&uter systems, or wit% ot%er knowledge workers and managers< Knowledge Workers J 3 knowledge worker is a &erson w%o transforms business and &ersonal e9&erience into knowledge< J :sually a knowledge worker is found to be inno.ati.e, creati.e and %e;s%e is fully aware of t%e organi5ational culture< J 3 knowledge worker can be t%oug%t of as a &roduct of .alues, e9&eriences, &rocesses, education, and training< 7ersonality;7rofessional 3ttributes J :nderstands and ado&ts t%e organi5ational culture< J 3ligns &ersonal;&rofessional growt% wit% cor&orate .ision< J 7ossesses t%e attitude of collaboration;s%aring< J 7ossesses inno.ati.e ca&acity;creati.e mind< J 0as got t%e clear understanding of t%e business Bin w%ic% %e;s%e is in.ol.ed< J 3lways willing to learn, and willing to ado&t new met%odologies< J 7ossesses self(control and can learn by %imself;%erself< J Willing to accommodate uncertainties J ore com&etencies@ o =%inking skills o Inno.ati.e teams;teamwork o ontinuous learning o Inno.ation;reati.ity o Risk taking;7otential success o 3 culture of res&onsibility towards knowledge o Decisi.e action taking Knowledge WorkerAs )usiness Roles in -earning 4rgani5ation J 3 -earning organi5ation is an organi5ation of &eo&le wit% total commitment to im&ro.e t%eir ca&acity, to create and to &roduce< It can res&ond to uncertainty, to c%allenges, and to t%e c%ange in general< N o&yrig%t >irtual :ni.ersity of 7akistan 1**Knowledge Management EM!M=(/#0 >: J =%e rate of learning of an organi5ation can turn out to be t%e most critical source of com&etiti.e ad.antage< Management and -eaders%i& J In KM, we distinguis% between managers and leaders< J =raditional managers usually focus on t%e &resent< =%ey are usually action(oriented and s&end most of t%e time su&er.ising, delegating, controlling, and ensuring com&liance wit% set &rocedures< J =raditional managers were once workers and were &romoted to managers< W%en t%ey manage subordinates, t%ey are aware of eac% as&ect of t%e business since t%ey were once t%ere< J +mart managers usually focus on organi5ational learning in order to ensure o&erational e9cellence< J +mart managers can not be e9&ected to %a.e mastered t%e work of t%e subordinates< =%ey can take on t%e role of leaders w%ere c%ange is t%e &rimary goal< J =%e c%allenge is to get t%e organi5ation mo.ing towards ac%ie.ing goals Bin line wit% t%e rate of c%angeC< J =%e leaderOs role in a learning organi5ation is more of a facilitator t%an a su&er.isor< J 0e acts more like a teac%er t%an like an order gi.er< J In case of teac%ing, t%e focus is on t%e transfer of knowledge from t%e instructor to t%e learner< =%e instructor is su&&osed to be t%e e9&ert and %is;%er role is to deli.er Fuality content and to communicate t%e content wit% &otential< J -earning s%ould essentially &romote a way of t%inking, not Kust con.ey facts< J In a learning organi5ation, t%e smart manager can &lay t%e role of t%e instructor, and t%e knowledge workers can &lay t%e role of learners< J =%e smart manager &ro.ides o&&ortunities for knowledge workers to brainstorm ideas, e9c%ange knowledge, and come u& wit% new and better ways of doing business< Work Management =asks Work management tasks include t%e following@ J Retrie.ing, creating, s%aring, and using knowledge in e.eryday acti.ities< J Managing knowledge workers and nurturing t%eir knowledge(oriented acti.ities< J 1nsuring readiness to work< J Maintaining work moti.ation among knowledge workers< J 3llocating effort and switc%ing control among tasks< J Managing collaboration and concurrent acti.ities among knowledge workers< J +%aring information and integrating work among knowledge workers< J Recruiting knowledge(seeking and brig%t indi.iduals factors to be considered by t%e managers@ J =ime constraint< J Knowledge workers doing work t%at t%e organi5ation did not %ire t%em to do< J Working smarter;%arder< J Work +c%edule< =ec%nology and Knowledge Worker J =%e &rimary acti.ities of knowledge work@ o 3ssessment o Decision Making o Monitoring o +c%eduling J 3 knowledge worker can act as a manager, a su&er.isor, or a clerk w%o is acti.ely engaged in t%inking, information &rocessing, analy5ing, creating, or recommending &rocedures based on e9&erience and cumulati.e knowledge< J I= &lays a key role in t%e learning organi5ation in t%e following &rocesses@ o Knowledge ca&ture o Information distribution o Information inter&retation J =%ere e9ists a multitude of eFui&ment and software su&&orting knowledge workerOs tasks< =%ey include@ N o&yrig%t >irtual :ni.ersity of 7akistan 1*/Knowledge Management EM!M=(/#0 >: o 1(mail o -3N o Intelligent Workstations J Intelligent workstations automate re&etiti.e, and tedious tasks< =%ey s%ould &erform t%e following functions@ o 3dministrati.e su&&ort functions o 7ersonal com&uting functions o Managing intelligent databases Knowledge Worker -oyalty 4ne of t%e cor&orationAs maKor intangible assets, and one t%at can be en%anced t%roug% knowledge worker management, is knowledge worker loyalty< 3lt%oug% loyalty is difficult to Fuantify e9actly, knowledge worker be%a.ior t%at is consistent wit% loyalty can be Fuantified< =%is be%a.ior can be modeled by considering factors t%at &ositi.ely and negati.ely affect be%a.iors associated wit% loyalty, suc% as a worker continuing in a relations%i& wit% t%e cor&oration e.en w%en com&eting com&anies offer greater com&ensation for com&arable work< =%e issue of knowledge worker loyalty to t%e cor&oration ty&ically arises w%en management is considering w%et%er to in.est additional resources in a &articular knowledge worker or grou& of knowledge workers< In t%e com&uteri5ed knowledge economy, w%ere someone wit% knowledge and skills in demand can work from .irtually anyw%ere wit% a com&uter and an Internet connection, t%e issue of loyalty is an im&ortant one< Knowledge worker loyalty can be assessed by modeling loyalty based on t%e &ositi.e and negati.e contributors to be%a.iors< 7ositi.e contributors to knowledge worker loyalty include difficulty locating alternati.e em&loyment, t%e emotional bond between t%e knowledge worker and t%e com&any, t%e knowledge workerAs in.estment of time in t%e com&any, and com&ensation< $or e9am&le, t%e greater t%e difficulty locating alternati.e em&loyment, t%e greater t%e loyalty effect< +imilarly, t%e more time and energy a knowledge worker in.ests in a relations%i& wit% a com&any, t%e more likely t%e relations%i& will continue< In addition, t%e greater t%e com&ensation, t%e more likely a knowledge worker will continue working wit% t%e com&any< =%e greatest contributor to knowledge worker loyalty, %owe.er, is a &ersonal, emotional bond wit% ot%er &eo&le in t%e com&any< =%e negati.e contributors to loyalty be%a.ior are numerous em&loyment alternati.es and a %ig% le.el of frustration wit% t%e com&any< =%e more em&loyment alternati.es t%at are a.ailable, t%e less knowledge workers are likely to stay wit% t%e com&any< $inally, not%ing s&oils an ot%erwise ideal relations%i& faster t%an a knowledge workerAs frustration wit% management or &ersonal &roblems wit% ot%er knowledge workers< Modeling loyalty be%a.ior s%ows %ow knowledge worker be%a.ior can be influenced, de&ending on w%ic% elements in t%e model are stressed< $or e9am&le, a generous com&ensation &ackage and a friendly, su&&orti.e work en.ironment contribute to a continued relations%i& wit% t%e com&any< on.ersely, offering knowledge workers little or no increase in com&ensation at an annual re.iew and ignoring t%eir com&laints and suggestions sends a clear message t%at t%ey s%ould look< =est Mour :nderstanding 1< W%at is a knowledge worker? Do you agree wit% any of t%e definitions in t%e c%a&ter? W%y or w%y not? 3 knowledge worker is a &erson w%o transforms business and &ersonal e9&erience into knowledge t%roug% ca&turing, assessing, a&&lying, s%aring, and disseminating it wit%in t%e organi5ation to sol.e s&ecific &roblems or to create .alue< +tudents may select any definition and comment on it< 2< -ist and briefly e9&lain &ersonality and &rofessional attributes of knowledge workers< J 0olds uniFue .alues and understands and ado&ts t%e culture of t%e organi5ation J 3ligns &ersonal and &rofessional growt% wit% cor&orate .ision and ac%ie.ement of strategic goals N o&yrig%t >irtual :ni.ersity of 7akistan 1*"Knowledge Management EM!M=(/#0 >: J 3do&ts an attitude of collaboration and s%aring J 0a.e inno.ati.e ca&acity and a creati.e mind J 0as a clear understanding of t%e business %e is a &art J Willing to learn, unlearn, and ado&t new ways t%at result in better ways of doing a Kob J In command of self(control and self(learning J Willing to grow wit% t%e com&any #< =%e self(directed knowledge worker must consider se.eral core com&etencies< 19&lain t%ree core com&etencies of your c%oice< W%y are t%ey called core com&etencies? J =%inking skills@ %a.ing a .ision %ow t%e &roduct or t%e com&any can be better J ontinuous learning@ unlearning and relearning in tune wit% fast(c%anging conditions J Inno.ati.e teams@ .ia collaboration, coo&eration, and coordination =%ey are called core because eac% one of t%em is a tool t%at t%e knowledge worker would definitely need to use in action< '< 1laborate on t%e business roles in t%e learning organi5ation< W%en discussing business roles in t%e learning organi5ations, management and leaders%i& become more im&ortant< +mart managers focus on organi5ational learning to ensure o&erational e9cellence< In contrast, t%e leaderAs role is more of a facilitator, a teac%er, a steward of t%e collecti.e knowledge of t%e staff, and a designer< *< In w%at ways are data and information considered as gi.ens? =%e &eriod between t%e 18/0As and 1820As %as witnessed success in data &rocessing and information &rocessing< =%e focus t%en was on efficiency, w%ere com&uters re&laced %uman redundant arit%metic work< =%ere were Fuantitati.e sa.ings and e.eryone benefited< In t%e 1880As information was collected, &rocessed, and con.erted into rele.ant knowledge for t%e decision maker< 3t t%is le.el, t%e focus s%ifted from Fuantitati.e to Fualitati.e &erformance( oriented .alue(added decision(making< /< W%at is t%e difference between management and leaders%i&? =raditional managers and smart managers? =%e goal of management is stability on t%e Kob and meeting deadlines< W%ile, =%e &rimary goal of leaders%i& is c%ange< =%e c%allenge is to get t%e de&artment or organi5ation mo.ing in t%e direction of t%e goalBsC in line wit% t%e rate of c%ange< =raditional managers are action oriented, t%ey s&end most of t%e time delegating, su&er.ising, controlling, and ensuring com&liance wit% set &rocedures< W%en t%ey manage subordinates, t%ey know all as&ects of t%e business because t%ey were once t%ere< In contrast, smart managers focus on organi5ational learning to ensure o&erational e9cellence< )ecause of continuing c%ange and im&ro.ement in work&lace, t%ey cannot be e9&ected to %a.e mastered t%e work of subordinates< "< 0ow are learning and teac%ing related? -earning and teac%ing are two faces for t%e same coin< In teac%ing, t%e focus is on knowledge transfer from t%e instructor to t%e learner< =%e instructor is su&&osed to be t%e e9&ert< =%e role is to deli.er Fuality content and to communicate t%e content wit% &otential< =%e interaction s%ould instill serendi&ity and t%inking about better ways of %andling &roblems< -earning s%ould &romote a new way of t%inking not Kust facts< =%e key is not listening and retaining ideas or knowledge, but raising Fuestions t%at mig%t trigger new ways of decision(making or &roblem sol.ing< 2< W%at do work management tasks focus on? N o&yrig%t >irtual :ni.ersity of 7akistan 1*2Knowledge Management EM!M=(/#0 >: J Managing knowledge workers J +earc%ing out, creating, s%aring, and using knowledge regularly J Maintaining work moti.ation among knowledge workers J 1nsuring readiness to work, es&ecially during an emergency J 3llocating effort and switc%ing control among tasks J +%aring information and integrating work among knowledge workers J 0iring or recruiting brig%t, knowledge(seeking indi.iduals J Managing collaboration, coordination, and concurrent acti.ities among knowledge workers 8< 19&lain t%e main factors t%at limit t%e knowledge worker &roducti.ity and ways to get around t%em< J =ime constraint@ time is t%e enemy of successful knowledge workers< =%ere is always more work to do< 3s a result, eit%er Fuality suffers or com&letion time lags< 4b.iously, suc% stress can work against ones moti.ation to contribute< J Working smarter and %arder and accom&lis%ing little@ t%is constrained is often triggered by limited time, limited staff su&&ort, or financial constraints< Management can do a lot to alle.iate t%is ty&e of &roducti.ity &roblem< J Knowledge workers doing work t%at t%e firm did not %ire t%em to do@ t%e way to get around t%is is for t%e smart manager to e9&lore t%e s&ecificity of t%e task or t%e Kob, matc% t%e task to t%e knowledge of t%e worker, and eliminate nonessentials< J Work sc%edule@ t%e manager s%ould be careful in &lanning work sc%edules and work rotation to assure coo&eration and successful ac%ie.ement of t%e Kob on sc%edule< J Moti.ation against knowledge work &roducti.ity@ Knowledge workers 3re not all &rogrammed to follow t%e ideals &ro&osed by t%e management< 3.oiding task uncertainty or Kob com&le9ity can &ose &roducti.ity &roblems and affect t%e &roducti.ity of ot%er knowledge workers< Moti.ation is also affected in situations w%ere urgency su&ercedes moti.ation< If &roducti.ity takes a nosedi.e, t%e knowledge worker can always blame it on t%e time constraint, lack of adeFuate in&ut, and t%e like 10< )riefly list t%e .ocational needs and reinforces of knowledge workers< a< 3c%ie.ement b< :se of t%eir abilities on matters related to &roblem sol.ing and solutions rat%er t%an &roblem im&lementation based on &redetermined, mec%anistic tasks c< 3ut%ority d< 0ig% &ay and &restige e< =%e congenial atmos&%ere f< Recognition for work done g< =%e c%ance of e9ercising res&onsibility %< =%e dri.e to do different t%ings wit%in t%e Kob sco&e from time to time i< =%e social status Bim&ortance in t%e eye of t%e ot%ersC K< reati.ity
11< 0ow does creati.ity relate to ac%ie.ement? 3n ac%ie.ement is a result of creati.ity< )ecause creati.ity is trying out new ideas in &erforming com&le9 tasks t%at lead to accom&lis%ments< 12< 1laborate on smart leaders%i& reFuirements< J 3ssessing core com&etency of t%e firm J Res&onse to t%e firmAs internal s%ortcomings J >i.id knowledge of t%e e9ternal market and t%e tricky nature of t%e com&etition in t%e market&lace J 4nline res&onse to t%e com&anyAs e9ternal en.ironment J Measuring t%e return on time N o&yrig%t >irtual :ni.ersity of 7akistan 1*8Knowledge Management EM!M=(/#0 >: 1#< W%at is meant by return on time? 0ow does it relate to t%e knowledge c%ain? W%en time and timing are t%e critical elements in a com&etiti.e en.ironment, creati.ity in t%e way &roducts are im&ro.ed and en%ancements in e9isting &roducts are su&&osed to &ro.ide financial and strategic returns w%en t%ey are introduced a%ead of t%e com&etition< +o, return on time addresses t%e benefits deri.ed from time sa.ing in early and timely introduction of a &roduct< =%e intellectual ca&ital of t%e firm is t%e backbone for return on time< It is t%e brain t%at generates creati.e &roducts t%at can be offered in a com&etiti.e market in a timely manner< 1'< )riefly e9&lain t%e key ste&s in t%e knowledge c%ain< =%e key ste&s in t%e knowledge c%ain are@ a< 3ssessment of t%e core com&etency of t%e organi5ation b< Res&onse to t%e organi5ationAs internal s%ortcomings c< >i.id knowledge of t%e e9ternal market and t%e tricky nature of com&etition in t%e market&lace< d< 4nline res&onse to t%e com&anyAs e9ternal en.ironment e< Measure t%e return on time 1*< 0ow does tec%nology assist t%e knowledge worker? J I= contributes to knowledge ca&ture, information distribution, and information inter&retation J :ltimate goal of tec%nology is to ser.e organi5ational memory and create a working en.ironment t%at &ro.ides t%ese conditions J Knowledge worker e9&ect to %a.e tec%nical know(%ow to access, u&date, and disseminate information from databases and knowledge bases 1/< -ist t%e knowledge worker key skills< Do you agree wit% t%em? J =ec%nical skills and abilities J 7rofessional e9&erience J +oft traits suc% as a sense of cultural, &olitical, and &ersonal as&ects of knowledge in t%e business J 7ersonal attributes J ommunication skills J 1ducational background and college degree Knowledge 19ercises 1< Discuss t%e similarities and differences between t%e traditional manager and t%e knowledge manager< =%e term manager refers to anyone &erforming managerial work< =%e main role is to maintain and en%ance %is de&artment or di.ision standards of com&etence< =%e classical Kob includes &lanning, organi5ing, su&er.ising, and controlling &eo&le, &rocedures, and tec%nology< W%en &roblems arise, t%ey stay in to t%eir area of o&eration and sim&ly focus on maintaining t%e status Fuo< In contrast, a knowledge manager &lans, de.elo&s, and articulate knowledge management &olicy< 0e or s%e understands t%e relations%i& between knowledge s%aring and business com&etiti.eness< +uc% a manager writes articles and books on knowledge management< 3not%er function is articulating results to senior management officials wit%in and outside t%e firm and e9&ands KM initiati.es com&any(wide< 2< =ry to .erify t%e &ersonality and work attributes of t%e knowledge manager by doing researc% on t%e Internet< Re&ort your findings to t%e class< N o&yrig%t >irtual :ni.ersity of 7akistan 1/0Knowledge Management EM!M=(/#0 >: =%is is a relati.ely new area on t%e managementAs end of knowledge management< +tudents s%ould be encouraged to try out .arious searc% engines, es&ecially google<com and &ut toget%er a &ersonality &rofile and work attributes of t%e knowledge manager< =%e aut%ors arenAt sure t%ere is muc% on t%is to&ic on t%e Internet< #< Is a college degree im&ortant for knowledge work? Discuss your beliefs wit% t%e class< 3 college degree is normally considered t%e foundation of a career, w%et%er it is in law, medicine, or business< W%en dealing wit% knowledge and knowledge work, academic &re&aration is a &re(reFuisite to gaining &ractical e9&erience in t%is s&eciali5ed work< 4f course, one needs certain a&titude and skill set for certain Kobs, but t%e combination of college education and &ractical e9&erience is t%e combination t%at often leads to building a successful career< Met, t%ere are e9ce&tions< +uc% e9ce&tions are unusual and rare<
'< ite t%ree com&anies t%at Fualify as learning organi5ations< W%at makes t%em uniFue? !eneral electric, Du&ont, and I)M are leading learning organi5ations< =%ere are many ot%ers, w%ic% students s%ould be able identify and e9&ound on t%eir res&ecti.e uniFue features< =%e ones mentioned %ere are generally known for coming out wit% creati.e &roducts and ser.ices on a regular basis< *< Does a leaderAs Kob include management? If so, w%y do we need managers? -eaders%i& is t%e basis for successful management< 3s s%own abo.e, it is &art of management< It im&lies &ersonality, &oise, warmt%, decisi.eness, and trust by ot%ers to follow and com&ly wit% decisions< N o&yrig%t >irtual :ni.ersity of 7akistan 1/1Knowledge Management EM!M=(/#0 >: -1++4N #0 4>1R>I1W 4$ KM +4-:=I4N+ 3ND 7R41++1+ KM +ystem Dustification It in.ol.es answers to t%e following Fuestions@ J Is e9isting knowledge going to be lost t%roug% retirement, transfer, or de&arture to ot%er organi5ations? J Is t%e &ro&osed KM system needed in multi&le locations? J 3re e9&erts a.ailable and willing to su&&ort t%e building of t%e &ro&osed KM system? J Does t%e concerned &roblem needs years of &ro&er e9&erience and cogniti.e reasoning to sol.e? J W%ile undergoing knowledge ca&ture, would it be &ossible for t%e e9&ert to articulate %ow t%e &roblem will be sol.ed? J 0ow critical is t%e knowledge t%at is to be ca&tured? J 3re t%e in.ol.ed tasks non algorit%mic in nature? J Would it &ossible to find a c%am&ion wit%in t%e organi5ation? %allenges in KM +ystems De.elo&ment J %anging 4rgani5ational ulture@ o In.ol.es c%anging &eo&leOs attitudes and be%a.iors< J Knowledge 1.aluation@ o In.ol.es assessing t%e wort% of information< J Knowledge 7rocessing@ o In.ol.es t%e identification of tec%niFues to acFuire, store, &rocess and distribute information< o +ometimes it is necessary to document %ow certain decisions were reac%ed< J Knowledge Im&lementation@ o 3n organi5ation s%ould commit to c%ange, learn, and inno.ate< o It is im&ortant to e9tract meaning from information t%at may %a.e an im&act on s&ecific missions< o -essons learned from feedback can be stored for future to %el& ot%ers facing t%e similar &roblemBsC< J Key Differences o =%e systems analyst gat%ers data and information from t%e users and t%e users de&end on analysts for t%e solution< o =%e knowledge de.elo&er gat%ers knowledge from &eo&le wit% known knowledge and t%e de.elo&er de&ends on t%em for t%e solution< o =%e main interface for t%e systems analyst is associated wit% no.ice users w%o know t%e &roblem but not t%e solution< o =%e main interface for t%e knowledge de.elo&er is associated wit% t%e knowledgeable &erson w%o knows t%e &roblem and t%e solution< J on.entional systems de.elo&ment is &rimarily seFuential, w%ereas KM+- is incremental and interacti.e< J In case of con.entional systems, testing is usually done towards t%e end of t%e cycle Bafter t%e system %as been builtC, w%ereas in KM+-, t%e e.ol.ing system is .erified and .alidated from t%e beginning of t%e cycle< J +ystems de.elo&ment and systems management is muc% more e9tensi.e for con.entional information systems t%an it is for KM+-< J =%e con.entional systems life cycle is usually &rocess(dri.en and documentation(oriented w%ereas KM+- is result(oriented< o =%e con.entional systems de.elo&ment does not su&&ort tools suc% as ra&id &rototy&ing since it follows a &redefined seFuence of ste&s o KM+- can use ra&id &rototy&ing incor&orating c%anges on t%e s&ot< Role of +trategic 7lanning in KM +olutions N o&yrig%t >irtual :ni.ersity of 7akistan 1/2Knowledge Management EM!M=(/#0 >: J 3s a conseFuence of e.aluating t%e e9isting infrastructure, t%e concerned organi5ation s%ould de.elo& a strategic &lan w%ic% s%ould aim at ad.ancing t%e obKecti.es of t%e organi5ation wit% t%e &ro&osed KM system in mind< J 3reas to be considered@ o >ision o Resources o ulture $orming a KM team $orming a KM team usually means J Identifying t%e key units, branc%es, di.isions etc< as t%e key stake%olders in t%e &ros&ecti.e KM system< J +trategically, tec%nically, and organi5ationally balancing t%e team si5e and com&etency< $actors im&acting team success J Iuality and ca&ability of team members Bin terms of &ersonality, e9&erience, and communication skillC< J +i5e of t%e team< J om&le9ity of t%e &roKect< J =eam moti.ation and leaders%i& J 7romising only w%at t%at can be actually deli.ered< a&turing Knowledge J a&turing Knowledge in.ol.es e9tracting, analy5ing and inter&reting t%e concerned knowledge t%at a %uman e9&ert uses to sol.e a s&ecific &roblem< J 19&licit knowledge is usually ca&tured in re&ositories from a&&ro&riate documentation, files etc< J =acit knowledge is usually ca&tured from e9&erts, and from organi5ationOs stored databaseBsC< J Inter.iewing is one of t%e most &o&ular met%ods used to ca&ture knowledge< N o&yrig%t >irtual :ni.ersity of 7akistan 1/#Knowledge Management EM!M=(/#0 >: J Data mining is also useful in terms of using intelligent agents t%at may analy5e t%e data ware%ouse and come u& wit% new findings< J In KM systems de.elo&ment, t%e knowledge de.elo&er acFuires t%e necessary %euristic knowledge from t%e e9&erts for building t%e a&&ro&riate knowledge base< J Knowledge ca&ture and knowledge transfer are often carried out t%roug% teams< J Knowledge ca&ture includes determining feasibility, c%oosing t%e a&&ro&riate e9&ert, ta&&ing t%e e9&ertAs knowledge, reta&&ing knowledge to &lug t%e ga&s in t%e system, and .erify;.alidate t%e knowledge base< =%e Role of Ra&id 7rototy&ing J In most of t%e cases, knowledge de.elo&ers use iterati.e a&&roac% for ca&turing knowledge< J $oe e9am&le, t%e knowledge de.elo&er may start wit% a &rototy&e Bbased on t%e some%ow limited knowledge ca&tured from t%e e9&ert during t%e first few sessionsC< J =%e following can turn t%e a&&roac% into ra&id &rototy&ing@ o Knowledge de.elo&er e9&lains t%e &reliminary;fundamental &rocedure based on rudimentary knowledge e9tracted from t%e e9&ert during t%e few &ast sessions< o =%e e9&ert reacts by saying certain remarks< o W%ile t%e e9&ert watc%es, t%e knowledge de.elo&er enters t%e additional knowledge into t%e com&uter(based system Bt%at re&resents t%e &rototy&eC< o =%e knowledge de.elo&er again runs t%e modified &rototy&e and continues adding additional knowledge as suggested by t%e e9&ert till t%e e9&ert is satisfied< J =%e s&ontaneous, and iterati.e &rocess of building a knowledge base is referred to as ra&id &rototy&ing< 19&ert +election =%e e9&ert must %a.e e9cellent communication skill to be able to communicate information understandably and in sufficient detail< +ome common Fuestions t%at may arise in case of e9&ert selection@ J 0ow to know t%at t%e so(called e9&ert is in fact an e9&ert? J Will %e;s%e stay wit% t%e &roKect till its com&letion? J W%at backu& would be a.ailable in case t%e e9&ert loses interest or Fuits? J 0ow are t%e knowledge de.elo&er going to know w%at does and w%at does not lie wit%in t%e e9&ertOs area of e9&ertise? =%e Role of t%e Knowledge De.elo&er J =%e knowledge de.elo&er can be considered as t%e arc%itect of t%e system< J 0e;s%e identifies t%e &roblem domain, ca&tures knowledge, writes;tests t%e %euristics t%at re&resent knowledge, and co(ordinates t%e entire &roKect< J +ome necessary attributes of knowledge de.elo&er@ o ommunication skills< N o&yrig%t >irtual :ni.ersity of 7akistan 1/'Knowledge Management EM!M=(/#0 >: o Knowledge of knowledge ca&ture tools;tec%nology< o 3bility to work in a team wit% &rofessional;e9&erts< o =olerance for ambiguity< o =o be able it t%ink conce&tually< o 3bility to freFuently interact wit% t%e c%am&ion, knowledge workers and knower in t%e organi5ation< Designing t%e KM )lue&rint =%is &%ase indicates t%e beginning of designing t%e I= infrastructure; Knowledge Management infrastructure< =%e KM )lue&rint BKM system designC addresses a number of issues< J 3iming for system intero&erability;scalability wit% e9isting I= infrastructure of t%e organi5ation< J $inali5ing t%e sco&e of t%e &ro&osed KM system< J Deciding about t%e necessary system com&onents< J De.elo&ing t%e key layers of t%e KM arc%itecture to meet organi5ationOs reFuirements< =%ese layers are@ o :ser interface o 3ut%entication;security layer o ollaborati.e agents and filtering o 3&&lication layer o =rans&ort internet layer o 7%ysical layer o Re&ositories =esting t%e KM +ystem N o&yrig%t >irtual :ni.ersity of 7akistan 1/*Knowledge Management EM!M=(/#0 >: =%is &%ase in.ol.es t%e following two ste&s@ J >erification 7rocedure@ 1nsures t%at t%e system is rig%t, i<e<, t%e &rograms do t%e task t%at t%ey are designed to do< J >alidation 7rocedure@ 1nsures t%at t%e system is t%e rig%t system ( it meets t%e userOs e9&ectations, and will be usable on demand< Im&lementing t%e KM +ystem J 3fter ca&turing t%e a&&ro&riate knowledge, encoding in t%e knowledge base, .erifying and .alidating6 t%e ne9t task of t%e knowledge de.elo&er is to im&lement t%e &ro&osed system on a ser.er< J Im&lementation means con.erting t%e new KM system into actual o&eration< J on.ersion is a maKor ste& in case of im&lementation< J +ome ot%er ste&s are &ost im&lementation re.iew and system maintenance< Iuality 3ssurance It indicates t%e de.elo&ment of controls to ensure a Fuality KM system< =%e ty&es of errors to look for@ J Reasoning errors J 3mbiguity J Incom&leteness J $alse re&resentation 7ost system 1.aluation Key Fuestions to be asked in t%e &ost im&lementation stage@ J 0ow t%e new system im&ro.ed t%e accuracy;timeliness of concerned decision making tasks? J 0as t%e new system caused organi5ational c%anges? If so, %ow constructi.e are t%e c%anges? J 0as t%e new system affected t%e attitudes of t%e end users? If so, in w%at way? J 0ow t%e new system c%anged t%e cost of business o&eration? 0ow significant %as it been? J In w%at ways t%e new system affected t%e relations%i&s between end users in t%e organi5ation? J Do t%e benefit obtained from t%e new system Kustify t%e cost of in.estment? Im&lications for KM =%e managerial factors to be considered@ J =%e organi5ation must make a commitment to user training;education &rior to building t%e system< J =o& Management s%ould be informed wit% cost;benefit analysis of t%e &ro&osed system< J =%e knowledge de.elo&ers and t%e &eo&le wit% &otential to do knowledge engineering s%ould be &ro&erly trained< J Domain e9&erts must be recogni5ed and rewarded< J =%e organi5ation needs to do long(range strategic &lanning< +ome Fuestions to be addressed by t%e management regarding systems maintenance@ J W%o will be t%e in c%arge of maintenance? J W%at skills t%e maintenance s&ecialist needs to %a.e? J W%at would be t%e best way to train t%e maintenance s&ecialist? J W%at incenti.es s%ould be &ro.ided to ensure Fuality maintenance? J W%at ty&es of su&&ort;funding will be reFuired? J W%at relations%i& s%ould be establis%ed between t%e maintenance of t%e KM system and t%e I= staff of t%e organi5ation? =est Mour :nderstanding N o&yrig%t >irtual :ni.ersity of 7akistan 1//Knowledge Management EM!M=(/#0 >: 1 W%y is it %el&ful to .iew t%e building of a KM system as a life cycle? It is im&ortant to %a.e a life cycle in building knowledge management systems, because t%e life cycle &ro.ides structure and order to t%e &rocess< 3dditionally, t%e life cycle &ro.ides a breakdown of t%e acti.ities into manageable ste&s, good documentation for &ossible c%anges in t%e future, coordination of t%e &roKect for a timely com&letion, and regular management re.iew at eac% &%ase of t%e cycle< 2< In w%at ways do con.entional and KM systemsA de.elo&ment life cycles differ? 0ow are t%ey similar? =%ere are many differences between t%e con.entional and knowledge management systemsA de.elo&ment life cycle@ a< 3 con.entional system is seFuential Bcertain ste&s are carried out in seFuenceC, w%ile t%e knowledge management system life cycle is incremental and interacti.e b< In t%e con.entional system, testing generally occurs at t%e end of &rogramming, w%ile t%e knowledge management de.elo&ment life cycle &ro.ides for testing t%roug%out .arious &%ases of system de.elo&ment as t%e system e.ol.es c< =%e con.entional system is &rocess(dri.en and documentation(oriented, wit% em&%asis on t%e flow of data, w%ile t%e knowledge management de.elo&ment life cycle is result(oriented d< =%e con.entional system does not su&&ort ra&id &rototy&ing or ad.anced languages, w%ile t%e knowledge management de.elo&ment life cycle &romotes ra&id &rototy&ing and incor&orates c%anges on t%e s&ot 3long wit% t%ese differences, %owe.er, are many similarities as well@ a< )ot% cycles begin wit% a &roblem and end wit% a solution< b< )ot% cycles reFuire t%e initial gat%ering of information Bcon.entionalC or knowledge BKM+D-C for t%e &rocess to begin and ending u& wit% a tested system ready for use c< )ot% t%e knowledge de.elo&er and t%e systems analyst need to c%oose a tool to design t%e system #< +uccessful KM system im&lementation de&ends on se.eral factors< )riefly, e9&lain eac% factor a< -e.el of moti.ation of t%e user< !ood documentation cannot com&ensate for low moti.ation or &oor attitude toward t%e system< 7romoting moti.ation and commitment takes time and must be &lanned in ad.ance b< om&uter literacy and tec%nical background of t%e user< 3 com&uter literate user can be easier to work wit% t%an someone w%o %as no background at all< $irst(time users often reFuire education and training before t%ey are able to su&&ort de.elo&ment and use of knowledge(based system< c< ommunication skills of t%e trainer< +elling &eo&le on c%ange is sometimes considered more an art t%an a science< ommunication skills can make t%e difference between a userAs acce&tance or reKection of t%e installation< d< =ime a.ailability and funding for training< 3 training &rogram run on a s%oestring is usually a loser< 3lso, sFuee5ing training time to t%e bare minimum often results in trainee im&atience, resistance to learning, or nonuse of t%e system< =raining s%ould be &art of t%e im&lementation &%ase offered around t%e sc%edule of t%e user< e< 7lace of training< =%e location of training can make a difference< 4n(site .ersus off( site training continues to be an issue wit% &lusses and minuses for eac% alternati.e< 4ff(site training is generally dedicated uninterru&ted learning< Its &ositi.e benefits include &ri.acy and focus on t%e &roKects< =%e feasibility of off(site training de&ends on distance, location, and funding< In contrast, on(site training reFuires no out(of(town trans&ortation or room and board e9&enses< f< 1ase and duration of training< =%is as&ect de&ends on t%e caliber of t%e trainer and t%e attitude and moti.ation of t%e trainees< G%emistryH often affects %ow well all &arties work wit% eac% ot%er< 3lso, t%e training &eriod s%ould be reasonable and able to meet measurable goals< 3 long, drawn(out t%ree( week training &eriod does not &romote t%e same e9citement and moti.ation as a one(week session< g< 1ase of access and e9&lanatory facilities of t%e knowledge management system< Knowledge management systems s%ould be easy to access and work wit%< 3 software &ackage t%at &ro.ides adeFuate N o&yrig%t >irtual :ni.ersity of 7akistan 1/"Knowledge Management EM!M=(/#0 >: e9&lanations is bound to satisfy most users< =%e e9&lanatory facility of t%e &ackage &romotes ease of use and &ro.ides con.incing e.idence of t%e integrity of t%e solutions &ro.ided by t%e system %< 1ase of maintenance and system u&date< 3t t%is stage, good documentation and easy(to( follow &rocedures in a module(oriented knowledge management system can make t%e difference between easy maintenance and a Gnig%tmare<H In t%is case, maintenance im&lies u&date, alt%oug% u&date is more often considered en%ancement< i< 7ayoff to t%e organi5ation< 3 systemAs benefit to t%e organi5ation is usually measured in terms of cost reduction, im&ro.ement in sales or o.erall &erformance, and so on< Measurable &ayoff early in t%e de.elo&ment life cycle &romotes successful im&lementation< K< Role of t%e c%am&ion< +olid to& management su&&ort and a c%am&ion &us%ing for system ado&tion can make a difference between a successful and a lukewarm installation '< 0ow im&ortant are organi5ational factors in system im&lementation? =%e &rimary organi5ational factor is to& management commitment to t%e &ro&osed knowledge management system< =%is is e.ident by t%e way it &romotes t%e de.elo&ment effort t%roug% adeFuate funding, ensuring t%e a.ailability of %ardware and &ersonnel, and allowing t%e c%am&ion to function wit%in t%e de.elo&ment &rocess< =%e second organi5ational factor is user &artici&ation in t%e building &rocess< Doing so tends to increase commitment and foster a sense of owners%i& of t%e system< 4t%er organi5ational factors include organi5ational &olitics and organi5ational climate< 7olitics is Kockeying for le.erage to influence oneAs domain and control &rocedures, tec%nology, or t%e direction of an area of o&eration< :ser readiness can also influence t%e success of im&lementation< N o&yrig%t >irtual :ni.ersity of 7akistan 1/2Knowledge Management EM!M=(/#0 >: -1++4N #1 KM +M+=1M+, +4-:=I4N+, 3ND IN$R3+=R:=:R1 1< Describe t%e ways to facilitate KM, along wit% suitable e9am&les< KM is facilitated in a number of ways by means of KM solutions< =%ese may be di.ided into four broad le.els, @ B1C KM 7rocesses6 B2C KM +ystems6 B#C KM Mec%anisms and =ec%nologies6 and B'C KM infrastructure< a< KM 7rocesses (( are t%e broad &rocesses t%at aid in disco.ering, ca&turing, s%aring, and a&&lying knowledge< =%ese include combination, sociali5ation, e9ternali5ation, internali5ation, e9c%ange, directions, and routines<< $or e9am&le, internali5ation &rocesses benefit from simulations or e9&eriments, w%ic% enable indi.iduals to learn t%roug% e9&erience, as well as from face(to(face meetings, on(t%e(Kob training, and demos< b< KM +ystems (( are t%e integration of tec%nologies and mec%anisms, de.elo&ed to su&&ort t%e abo.e four KM &rocesses< KM systems include e9&ert(seeker systems, w%ic% %el& locate indi.iduals &ossessing knowledge in a &articular area, and rely on a combination of information tec%nologies and mec%anisms for classifying knowledge areas< c< KM Mec%anisms and =ec%nologies (( are used in KM systems, eac% of w%ic% utili5e a combination of multi&le mec%anisms and multi&le tec%nologies, w%ic% again in turn could, under differing circumstances, su&&ort multi&le KM systems< 19am&les of KM mec%anisms include on( t%e( Kob training and a&&rentices%i&, w%ile e9am&les of KM tec%nologies include databases and Internet< d< KM Infrastructure (( reflects t%e long(term foundation for KM< KM mec%anisms and tec%nologies rely on t%e KM infrastructure for t%eir success< 19am&les of KM infrastructure include t%e data contained in an organi5ationAs databases and t%e Fuality of t%e organi5ationAs em&loyees Bin terms of t%eir tacit knowledgeC< 2< 19&lain t%e im&ortance of KM mec%anisms and KM tec%nologies to KM systems< !i.e e9am&les of eac%< )ot% KM mec%anisms and KM tec%nologies su&&ort KM systems< =%eir differences %owe.er are e9&lained below@ KM mec%anisms are organi5ational or structural means used to &romote KM< =%ey enable KM systems, and are su&&orted by KM infrastructure< KM mec%anisms may or may not utili5e tec%nology< =%ey in.ol.e some kind of organi5ational arrangement or social or structural means of facilitating KM< 19am&les of KM Mec%anisms include learning by doing, on(t%e(Kob training, learning by obser.ation, and face(to(face meetings< More long(term KM mec%anisms include t%e %iring of a c%ief knowledge officer, interde&artmental &roKects, traditional %ierarc%ical relations%i&s, organi5ational &olicies, standards, initiation, and training &rocess for new em&loyees, and em&loyee rotation across de&artments< KM tec%nologies su&&ort KM systems and also benefit from t%e KM infrastructure, es&ecially t%e information tec%nology infrastructure< KM tec%nologies are a .ital com&onent of KM systems< =ec%nologies t%at su&&ort KM include artificial intelligence B3IC tec%nologies including case(based reasoning systems, electronic discussion grou&s, com&uter(based simulations, databases, decision su&&ort systems, enter&rise resource &lanning systems, e9&ert systems, management information systems, e9&ertise locator systems, .ideo(conferencing, and information re&ositories including best &ractices databases and lessons learned systems< 19am&les of t%e use of KM tec%nologies include World )ankAs use of a combination of .ideo inter.iews and %y&erlinks to documents and re&orts to systematically record t%e knowledge of em&loyees t%at are close to retirement< +imilarly, at )7, deskto& .ideo(conferencing %as im&ro.ed communication and enabled many &roblems at offs%ore oil fields to be sol.ed wit%out e9tensi.e tra.eling< N o&yrig%t >irtual :ni.ersity of 7akistan 1/8Knowledge Management EM!M=(/#0 >: #< )riefly e9&lain t%e four kinds of classifications for KM systems based on t%e &rocess su&&orted< De&ending on t%e KM &rocess most directly su&&orted, KM systems can be classified into four kinds@ 1C Knowledge Disco.ery +ystems su&&ort t%e &rocess of de.elo&ing new tacit or e9&licit knowledge from data and information or from t%e synt%esis of &rior knowledge< =%ese systems su&&ort two KM sub &rocesses associated wit% knowledge disco.ery@ combination, enabling t%e disco.ery of new e9&licit knowledge, and sociali5ation, enabling t%e disco.ery of new tacit knowledge< Mec%anisms and tec%nologies can su&&ort knowledge disco.ery systems by facilitating combination and;or sociali5ation< Mec%anisms t%at facilitate combination include collaborati.e &roblem sol.ing, Koint decision making, and collaborati.e creation of documents< =ec%nologies facilitating combination include knowledge disco.ery systems, databases, and Web(based access to data< Re&ositories of information, best &ractices, and lessons learned also facilitate combination< =ec%nologies can also facilitate sociali5ation, but to a smaller e9tent t%an t%ey can facilitate combination< 2C Knowledge a&ture +ystems su&&ort t%e &rocess of retrie.ing eit%er e9&licit or tacit knowledge t%at resides wit%in &eo&le, artifacts, or organi5ational entities< =%ese systems can aid in t%e ca&ture of knowledge t%at resides wit%in or outside organi5ational boundaries, including wit%in consultants, com&etitors, customers, su&&liers, and &rior em&loyers of t%e organi5ationAs new em&loyees< Knowledge ca&ture systems rely on mec%anisms and tec%nologies t%at su&&ort e9ternali5ation and internali5ation< KM mec%anisms can enable knowledge ca&ture by facilitating e9ternali5ation, or internali5ation< #C Knowledge +%aring +ystems su&&ort t%e &rocess t%roug% w%ic% e9&licit or im&licit knowledge is communicated to ot%er indi.iduals< =%ey do so by su&&orting e9c%ange and sociali5ation< Discussion grou&s or c%at grou&s facilitate knowledge s%aring by enabling an indi.idual to e9&lain %er knowledge to t%e rest of t%e grou&< In addition, knowledge(s%aring systems also utili5e mec%anisms and tec%nologies t%at facilitate e9c%ange< +ome of t%e mec%anisms t%at facilitate e9c%ange are memos, manuals, &rogress re&orts, letters, and &resentations< =ec%nologies facilitating e9c%ange include grou&ware and ot%er team collaboration mec%anisms, Web(based access to data, and databases, and re&ositories of information, including best &ractice databases, lessons learned systems, and e9&ertise(locator systems< 'C Knowledge 3&&lication +ystems su&&ort t%e &rocess t%roug% w%ic% some indi.iduals utili5e knowledge &ossessed by ot%er indi.iduals wit%out actually acFuiring, or learning, t%at knowledge< Mec%anisms and tec%nologies su&&ort knowledge a&&lication systems by facilitating routines and direction< '< +tate t%e roles of BaC organi5ational culture and BbC organi5ational structure for t%e de.elo&ment of a good KM infrastructure< KM infrastructure is t%e foundation on w%ic% KM resides< 4rgani5ation culture and organi5ation structure are two of its main com&onents< 4rgani5ational ulture reflects t%e norms and beliefs t%at guide t%e be%a.ior of t%e organi5ationAs members< It is an im&ortant enabler of KM in organi5ations< 3 su&&orting organi5ation culture %el&s moti.ate em&loyees to understand t%e im&ortance and benefits from KM and to find time for it< !etting &eo&le to &artici&ate in knowledge s%aring is considered t%e %ardest &art of KM, and a .ital &art of im&lementing KM is in making it a &art of t%e organi5ationAs culture< 3 KM enabling culture is one t%at understands t%e .alue of KM &ractices, %as su&&ort for KM at all managerial le.els, &ro.ides incenti.es t%at reward knowledge s%aring, and encourages organi5ational interaction for t%e creation and s%aring of knowledge< In contrast, cultures t%at stress indi.idual &erformance and %oarding of information wit%in units encourage limited em&loyee interaction, and lack of an in.ol.ed to& management creates in%ibited knowledge s%aring and retention< N o&yrig%t >irtual :ni.ersity of 7akistan 1"0Knowledge Management EM!M=(/#0 >: 4rgani5ational +tructure is anot%er .ital as&ect on w%ic% KM de&ends on< +e.eral as&ects of organi5ation structure are rele.ant< $irst, t%e %ierarc%ical structure of t%e organi5ation affects t%e &eo&le wit% w%om eac% indi.idual freFuently interacts, and to or from w%om %e is conseFuently likely to transfer knowledge< =raditional re&orting relations%i&s influence t%e flow of data and information, t%e nature of grou&s w%o make decisions toget%er, and conseFuently affect t%e s%aring and creation of knowledge< )y decentrali5ing or flattening t%eir organi5ation structures, com&anies aim to increase knowledge s%aring wit% a larger grou& of indi.iduals< 4rgani5ation structures can facilitate KM t%roug% communities of &ractice, w%ic% is an organic and self(organi5ed grou& of indi.iduals w%o are dis&ersed geogra&%ically or organi5ationally but communicate regularly to discuss issues of mutual interest< =%ey &ro.ide access to a larger grou& of indi.iduals t%an &ossible wit%in traditional de&artmental boundaries< onseFuently, t%ere are more numerous &otential %el&ers, and t%is increases t%e &robability t%at at least one of t%em will &ro.ide useful knowledge< $urt%er, t%ey also &ro.ide access to e9ternal knowledge sources< *< In w%at way does information tec%nology infrastructure contribute to KM wit%in an organi5ation? 3n organi5ationAs information tec%nology infrastructure greatly contributes to KM< W%ile organi5ations could de.elo& s&eciali5ed I= infrastructure to &ursue KM, usually t%e e9isting I= infrastructure, de.elo&ed to su&&ort t%e organi5ationAs information systems needs, also facilitates KM< Information tec%nology infrastructure includes data &rocessing, storage, and communication tec%nologies and systems< It com&rises t%e entire s&ectrum of an organi5ationAs information systems, including transaction &rocessing systems and management information systems< It includes databases and data ware%ouses, as well as enter&rise resource &lanning systems< I= infrastructure &ro.ides ca&abilities in four im&ortant as&ects@ reac%, de&t%, ric%ness, and aggregation< Reac% &ertains to access and connection, and t%e efficiency of suc% access< De&t%, in contrast, focuses on t%e detail and amount of information t%at can be effecti.ely communicated o.er a medium< =%e ric%ness of a medium is based on its ability to &ro.ide multi&le cues, Fuick feedback, &ersonali5e messages, and use natural language to con.ey subtleties< $inally, aggregation in.ol.es t%e collection of large .olumes of information from multi&le sources for &rocessing< Knowledge 19ercises 1< 0ow would you de.elo& a KM system? W%at are t%e &ossible mec%anisms and tec%nologies you could utili5e? In de.elo&ing KM systems to su&&ort KM &rocesses, I would utili5e a .ariety of KM mec%anisms and tec%nologies< KM mec%anisms in.ol.e some kind of organi5ational arrangement or social or structural means of facilitating KM< =%e &ossible KM mec%anisms t%at could be utili5ed are learning by doing, on(t%e(Kob training, learning by obser.ation, and face(to(face meetings< More long(term KM mec%anisms include t%e %iring of a c%ief knowledge officer, co(o&erati.e &roKects across de&artments, traditional %ierarc%ical relations%i&s, organi5ational &olicies, standards, initiation &rocess for new em&loyees, and em&loyee rotation across de&artment KM tec%nologies benefit from t%e KM infrastructure, es&ecially t%e information tec%nology infrastructure< 19am&les of KM tec%nologies are t%e use of a combination of .ideo inter.iews and %y&erlinks to documents and re&orts to systematically record t%e knowledge of em&loyees close to retirement, deskto& .ideo(conferencing for communication and enabling &roblem sol.ing at offs%ore locations wit%out t%e need for e9tensi.e tra.eling< N o&yrig%t >irtual :ni.ersity of 7akistan 1"1Knowledge Management EM!M=(/#0 >: 2< 0ow would you utili5e knowledge disco.ery systems and knowledge ca&ture systems in an organi5ation t%at is s&read across t%e globe? Does geogra&%ic distance %am&er t%e utili5ation of t%ese systems? In an organi5ation s&read across t%e globe, t%e use of knowledge disco.ery systems and knowledge ca&ture systems do tend to get %am&ered to some e9tent due to geogra&%ic distances, but due to t%e increasing use of tec%nology, t%ese &roblems are getting smaller and smaller< Knowledge disco.ery systems su&&ort t%e &rocess of de.elo&ing new tacit or e9&licit knowledge from data and information or from t%e synt%esis of &rior knowledge< Mec%anisms and tec%nologies can su&&ort knowledge disco.ery systems by facilitating combination and;or sociali5ation< J Mec%anisms t%at facilitate combination include collaborati.e &roblem sol.ing, Koint decision making, and collaborati.e creation of documents< In a global organi5ation s%aring documents among senior management results in t%e creation of new e9&licit knowledge, resulting in a better understanding of &roducts and a cor&orate .ision< Mec%anisms t%at facilitate sociali5ation include a&&rentices%i&s, em&loyee rotation across areas, conferences, brainstorming retreats, coo&erati.e &roKects across de&artments, and initiation &rocess for new em&loyees< In a global organi5ation, t%is could become e9&ensi.e, %owe.er, as it would in.ol.e t%e &%ysical transfer of em&loyees from one location to anot%er< J =ec%nologies facilitating combination include knowledge disco.ery systems, databases, and Web(based access to data< Re&ositories of information, best &ractices and lessons learned would also facilitate combination in global organi5ations< =ec%nologies can also facilitate sociali5ation, but to a smaller e9tent t%an t%ey can facilitate combination< +ome of t%e tec%nologies for facilitating sociali5ation in a global organi5ation include .ideo( conferencing and electronic su&&ort for communities of &ractice< Knowledge ca&ture systems su&&ort t%e &rocess of retrie.ing eit%er e9&licit or tacit knowledge t%at resides wit%in &eo&le, artifacts, or organi5ational entities< Knowledge ca&ture systems rely on mec%anisms and tec%nologies t%at su&&ort e9ternali5ation and internali5ation< J Mec%anisms can enable knowledge ca&ture by facilitating e9ternali5ation, i<e<, t%e con.ersion of tacit knowledge into e9&licit form, or internali5ation, i<e<, t%e con.ersion of e9&licit knowledge into tacit form< =%e de.elo&ment of models or &rototy&es, and t%e articulation of best &ractices or lessons learned are some e9am&les of mec%anisms t%at mig%t enable e9ternali5ation in a global organi5ation< -earning by doing, on(t%e(Kob training, learning by obser.ation, and face(to(face meetings are some of t%e mec%anisms t%at mig%t facilitate internali5ation in a global organi5ation< J =ec%nologies can also su&&ort knowledge ca&ture systems by facilitating e9ternali5ation and internali5ation< 19ternali5ation t%roug% knowledge engineering is necessary for t%e im&lementation of intelligent tec%nologies suc% as e9&ert systems, case(based reasoning systems, and knowledge acFuisition systems< =ec%nologies t%at facilitate internali5ation include com&uter(based training and communication tec%nologies< N o&yrig%t >irtual :ni.ersity of 7akistan 1"2Knowledge Management EM!M=(/#0 >: -1++4N #2 KN4W-1D!1 3R0I=1=:R1, IN=1RN1= 3ND 1(W4R-D Knowledge 3rc%itecture J Knowledge arc%itecture can be regarded as a &rereFuisite to knowledge s%aring< J =%e infrastructure can be .iewed as a combination of &eo&le, content, and tec%nology< J =%ese com&onents are inse&arable and interde&endent
=%e 7eo&le ore J )y &eo&le, %ere we mean knowledge workers, managers, customers, and su&&liers< J 3s t%e first ste& in knowledge arc%itecture, our goal is to e.aluate t%e e9isting information; documents w%ic% are used by &eo&le, t%e a&&lications needed by t%em, t%e &eo&le t%ey usually contact for solutions, t%e associates t%ey collaborate wit%, t%e official emails t%ey send;recei.e, and t%e databaseBsC t%ey usually access< J 3ll t%e abo.e stated resources %el& to create an em&loyee &rofile, w%ic% can later be used as t%e basis for designing a knowledge management system< J =%e idea be%ind assessing t%e &eo&le core is to do a &ro&er Kob in case of assigning Kob content to t%e rig%t &erson and to make sure t%at t%e flow of information t%at once was obstructed by de&artments now flows to rig%t &eo&le at rig%t time< J In order to e9&edite knowledge s%aring, a knowledge network %as to be designed in suc% a way as to assign &eo&le aut%ority and res&onsibility for s&ecific kinds of knowledge content, w%ic% means@ o Identifying knowledge centers@ 3fter determining t%e knowledge t%at &eo&le need, t%e ne9t ste& is to find out w%ere t%e reFuired knowledge resides, and t%e way to ca&ture it successfully< 0ere, t%e term knowledge center means areas in t%e organi5ation w%ere knowledge is a.ailable for ca&turing< =%ese centers su&&orts to identify e9&ertBsC or e9&ert teams in eac% center w%o can collaborate in t%e necessary knowledge ca&ture &rocess< o 3cti.ating knowledge content satellites =%is ste& breaks down eac% knowledge center into some more manageable le.els, satellites, or areas< o 3ssigning e9&erts for eac% knowledge center@ 3fter t%e final framework %as been decided, one manager s%ould be assigned for eac% knowledge satellite t%at will ensure integrity of information content, access, and u&date< 4wners%i& is a crucial factor in case of knowledge ca&ture, knowledge transfer, and knowledge im&lementation< In a ty&ical organi5ation, de&artments usually tend to be territorial< 4ften, fig%t can occur o.er t%e budget or o.er t%e control of sensiti.e &rocesses Bt%is includes t%e kind of knowledge a de&artment ownsC< N o&yrig%t >irtual :ni.ersity of 7akistan 1"#Knowledge Management EM!M=(/#0 >: =%ese reasons Kustify t%e &rocess of assigning de&artment owners%i& to knowledge content and knowledge &rocess< adKacent;interde&endent de&artments s%ould be coo&erati.e and ready to s%are knowledge< =%e =ec%nical ore J =%e obKecti.e of t%e tec%nical core is to en%ance communication as well as ensure effecti.e knowledge s%aring< J =ec%nology &ro.ides a lot of o&&ortunities for managing tacit knowledge in t%e area of communication< J ommunication networks create links between necessary databases< J 0ere t%e term tec%nical core is meant to refer to t%e totality of t%e reFuired %ardware, software, and t%e s&eciali5ed %uman resources< J 19&ected attributes of tec%nology under t%e tec%nical core@ 3ccuracy, s&eed, reliability, security, and integrity< J +ince an organi5ation can be t%oug%t of as a knowledge network, t%e goal of knowledge economy is to &us% em&loyees towards greater efficiency; &roducti.ity by making best &ossible use of t%e knowledge t%ey &osses< J 3 knowledge core usually becomes a network of tec%nologies designed to work on to& of t%e organi5ationOs e9isting network< Knowledge =ransfer in 1(World 1(World Intranet J +er.es t%e internal needs of an organi5ation< J -inks knowledge workers and managers around t%e clock and automates intraorgani5ational traffic< J 3n organi5ation needs intranet if@ o 3 large &ool of information is to be s%ared among large number of em&loyees< o Knowledge transfer needs to be done in %urry< 19tranet J -inks limited and controlled trading &artners and allows t%em to interact for different kinds of knowledge s%aring< J Intranets, e9tranets, and e(commerce do s%are common features< J Internet &rotocols are used to connect business users6 on t%e intranet administrators &rescribe access and &olicy for a s&ecific grou& of users6 on a )usiness(to()usiness B)2)C e9tranet, system designers at eac% &artici&ating com&any collaborates to make sure t%ere is a common interface wit% t%e com&any t%ey are dealing wit%< J 19tranets can be considered as t%e backbone of e(business< J =%e benefits are faster time to market, increased &artner interaction, customer loyalty, and im&ro.ed &rocesses< J +ecurity .aries wit% ty&e of user, t%e sensiti.ity ty&e of t%e transferred knowledge and t%e ty&e of communication lines used< J 3ccess control deals wit% w%at t%e users can and w%at t%ey can not access< J =%e issue of t%e le.el of aut%entication for eac% user s%ould be considered< J 19tranet %el&s t%e organi5ation in ensuring accountability in t%e way it does business and e9c%anges knowledge wit% its &artners< J It &romotes collaboration wit% &artners and im&ro.es t%e &otential for increased re.enue< !rou&ware J 3 software %el&ing &eo&le to collaborate Bes&ecially for geogra&%ically distributed organi5ationsC< J +u&&orts to communicate ideas, coo&erate in &roblem sol.ing, coordinate work flow and negotiate solutions< J ategori5ed according to@ N o&yrig%t >irtual :ni.ersity of 7akistan 1"'Knowledge Management EM!M=(/#0 >: o :sers working in t%e same &lace or in different locations< o :sers working toget%er at t%e same time or different times< J =o consider@ o !rou& conce&ts o 0ow grou& members be%a.e in a grou& setting< J Reasons for using@ o Works well wit% grou&s %a.ing common interests and w%ere it is not &ossible for t%e indi.iduals to meet face to face< o +ome &roblems are better sol.ed by grou& t%an by indi.iduals< o !rou&s bring multitude of o&inions;e9&ertise to a work setting< o $acilitates telecommuting Btime sa.erC o 4ften faster and more effecti.e t%an face to face meetings< J ritical &rereFuisites for system success@ o om&atibility of software< o 7ercei.ed benefit to e.ery grou& member< J $or a face(to face session, t%e &rotocol is standard and t%e communication is %ig%ly structured< If t%e communication structure is known, t%en a grou&ware can take ad.antage of it to s&eed u& t%e communication and im&ro.e t%e &erformance of t%e e9c%ange< =%is communication en.ironment is called tec%nologically mediated communication structure< J 3n alternati.e communication structure is known as a socially mediated communication structure w%ere t%e indi.iduals send a reFuest Be(mailC t%roug% tec%nology wit%out any control o.er %ow soon or w%et%er t%e reci&ient will res&ond< J 3 session re&resents a situation w%ere a grou& of indi.iduals agrees to get toget%er to conduct a meeting in &erson, o.er t%e tele&%one, or by .ideoconferencing etc< J !rou&ware systems reFuire t%at t%e sessions be conducted wit%in t%e framework of &rotocols designed to ensure integrity, &ri.acy and successful com&letion of eac% session< J +ession control determines w%o can enter and e9it t%e session, w%en t%ey can enter and %ow< +ome rules used in case of session control@ o Making sure t%at users do not im&ose a session on ot%ers< o Identifying con.ersational grou& members before allowing t%em into a session< o ontrolling unnecessary interru&tions or simultaneous transmissions Bt%at mig%t result in c%aos;confusionC< o 3llowing grou& members to enter and e9it at any time< o Determining t%e ma9imum number of &artici&ants and t%e lengt% of t%e sessionBsC< o 1nsuring accountability, anonymity and &ri.acy during t%e sessionBsC< J 3&&lications@ N o&yrig%t >irtual :ni.ersity of 7akistan 1"*Knowledge Management EM!M=(/#0 >: o 1(mail;Knowledge transfer o Newsgrou&s;Work($low +ystems o %at Rooms o >ideo ommunication o !rou& alendaring;+c%eduling o Knowledge +%aring 1()usiness J )rings t%e worldwide access of t%e internet to t%e core business &rocess of e9c%anging information between businesses, between &eo&le wit%in a businesses, and between a business and its clients< J =%e focus is on knowledge transfer;s%aring< J It connects critical business systems to critical constituencies Bcustomers, su&&liers, .endors etcC .ia t%e internet, intranets, and e9tranets< J 1()usiness %el&s to attain t%e following goals@ o De.elo&ing new &roducts;ser.ices o !aining recent market knowledge o )uilding customer loyalty o 1nric%ing %uman ca&ital by direct and instant knowledge transfer o Making use of e9isting tec%nologies for researc% and de.elo&ment o !aining com&etiti.e edge and market leaders%i&< >alue %ain J It is a way of organi5ing t%e &rimary and secondary acti.ities of a business in a way t%at eac% acti.ity &ro.ides &roducti.ity to t%e total business o&eration< J om&etiti.e ad.antage is gained w%en t%e organi5ation links t%e acti.ities in its .alue c%ain more c%ea&ly;effecti.ely t%an its com&etitors do< J =%e knowledge(based .alue c%ain &ro.ides away of looking at t%e knowledge acti.ities of t%e organi5ation and %ow .arious knowledge e9c%ange adds .alue to adKacent acti.ities and to t%e organi5ation in general< J 1.eryw%ere .alue is added is w%ere knowledge is created, s%ared or transferred< J )y t%e &rocess of e9amining t%e elements of t%e .alue c%ain, e9ecuti.es can find t%e ways to incor&orate I= and telecommunications to im&ro.e t%e o.erall &roducti.ity of t%e firm< J In case of 1()usiness, we integrate t%e KM life cycle from knowledge creation to knowledge distribution .ia o )usiness to onsumer o )usiness to )usiness o )usiness wit%in )usiness +u&&ly %ain Management B+MC J Incor&orates t%e idea of %a.ing t%e rig%t &roduct in t%e rig%t &lace, at t%e rig%t time, in t%e rig%t condition and at t%e rig%t &rice< J =%is is an integral &art of )usiness to )usiness framework< J =%is em&loys tools t%at allows t%e organi5ation to e9c%ange and u&date information in order to reduce cycle times, to %a.e Fuicker deli.ery of orders, to minimi5e e9cess in.entory and to im&ro.e customer ser.ice< ustomer Relations%i& Management BRMC J 0el&s t%e organi5ation to im&ro.e t%e Fuality of its relations%i& management wit% customers< J It is a business strategy used to learn more about customer needs and customer be.a.iour &atterns in order to de.elo& better and stronger relations%i& wit% t%em< J It can im&ro.e;c%ange an organi5ationOs business &rocesses for su&&orting new customer focus and a&&ly emerging tec%nologies to automate t%ese new &rocesses< J =%e tec%nologies can allow multi&le c%annels of communication wit% customers Band su&&ly c%ain &artnersC and can use customer information stored in cor&orate databases and knowledge(bases to construct &redicti.e models for customer &urc%ase be%a.iour< N o&yrig%t >irtual :ni.ersity of 7akistan 1"/Knowledge Management EM!M=(/#0 >: J )enefits@ o Increased customer satisfaction< o 1n%ancing efficiency of call centers< o ross selling &roducts efficiently< o +im&lifying sales &rocesses< o +im&lifying marketing &rocesses< o 0el&ing sales staff to close deals faster< o $inding new customers J ritical elements of RM software@ o 4&erational tec%nology@ :ses &ortals t%at facilitate communication between customers, em&loyees, and su&&ly c%ain &artners< )asic features included in &ortal &roducts@ 7ersonali5ation ser.ices +ecure ser.ices 7ublis%ing ser.ices 3ccess ser.ices +ubscri&tion ser.ices o 3nalytical tec%nology@ :ses data(mining tec%nologies to &redict customer &urc%ase &atterns< J 3rc%itectural im&erati.e for RM is to do@ o 3llowing t%e ca&ture of a .ery large .olume of data and transforming it into analysis formats to su&&ort enter&rise(wide analytical reFuirements< o De&loying knowledge< o alculating metrics by t%e de&loyed business rules< I@ 1< W%at is t%e main difference between intranet and e9tranet? W%ere does t%e Internet fit in? =%e Intranet is used for s%aring information wit%in an organi5ation< W%ile, =%e 19tranet connects se&arate com&anies wit% s%ared databases t%roug% t%e Internet< 0ence, intranets are more locali5ed wit%in a firm and mo.e data Fuicker t%an t%e more distributed e9tranets< =%e use of Internet B&rimarily WebC is to connect &ublic at large, mostly business users and branc%es< I@ 2< 19&lain in your own words t%e functions of middleware< 0ow does it differ from t%e user interface? =%e middleware &ro.ides connections between legacy a&&lications and e9isting and new systems i<e< Bold and new data formatsC<W%ile, =%e user interface standardi5es e9c%anges between t%e ultimate user and t%e system< I@ #< W%at does it mean to le.erage tec%nology? It means le.eraging an organi5ationAs tec%nological infrastructure to meet t%e data reFuirements of users and customers< I@ '< W%y is it a critical reFuirement t%at a successful knowledge management system be tagged to collaboration? )ecause it would be su&erfluous to t%ink of knowledge s%aring, knowledge transfer, or continued creati.ity wit%out collaborati.e success< N o&yrig%t >irtual :ni.ersity of 7akistan 1""Knowledge Management EM!M=(/#0 >: -1++4N ## 4R74R3=1 IN=R3N1=, 1R=R3N1=, 3ND 74R=3- KM =ools and Knowledge 7ortals 7ortals 7ortals are Web(based a&&lications w%ic% &ro.ide a single &oint of access to online information< =%ese can be regarded as .irtual work&laces w%ic% J &romotes knowledge s%aring among end(users Be<g<, customers, em&loyees etcC< J &ro.ides access to data BstructuredC stored in databases, data ware%ouses etc< J %el&s to organi5e unstructured data< 1.olution J Initially &ortals were merely searc% engines< J In t%e ne9t &%ase t%ey were transformed to na.igation sites< J In order to facilitate access to large amount of information, &ortals %a.e e.ol.ed to include ad.anced searc% ca&abilities and ta9onomies< J =%ey are also called Information &ortals because t%ey deal wit% information< J 4rgani5ations are becoming increasingly aware of t%e o&&ortunities obtained by using and adding .alue to t%e information lying dormant in scattered information systems< J 7ortals can integrate a&&lications by t%e way of combining, analy5ing, and standardi5ing rele.ant information< J Knowledge &ortals &ro.ides information about all business acti.ities and t%ey are ca&able of su&&lying metadata to su&&ort decision making< J In case of knowledge &ortal, we do not focus on t%e content of t%e information, but we focus on %ow it will be used by t%e knowledge workers< J Knowledge &ortals %a.e two kinds of interface@ o Knowledge consumer interface o Knowledge &roducer interface J 1nter&rise Knowledge 7ortals B1K7C can distinguis% knowledge from information and can &roduce knowledge from raw data and information< )usiness %allenge J In case of most of t%e businesses, usually t%ere e9ists an in%erent &ressure to o&timi5e t%e &erformance of o&erational &rocesses in order to reduce cost and en%ance Fuality< J ustomer(oriented systems allow organi5ations to understand t%e customer be%a.iour &atternBsC and %el&s t%em to offer t%e rig%t &roduct at t%e rig%t time< J 4ften, organi5ations need to commerciali5e t%eir &roducts at t%e lowest &ossible &rice< 7ortals and )usiness =ransformation J :sually &roblems arise from t%e following two fundamental as&ects underlying t%e &resent com&uting tec%nology@ o =%e e9&losion in t%e Fuantity of business information already ca&tured in electronic documents leads many organi5ations to lose t%eir gri& on t%e information as t%ey u&grade t%eir &rocesses and transform to new systems< o =%e fast s&eed wit% w%ic% t%e Fuantity Band kindsC of information content is growing, indicates t%at w%at is needed to meet t%e c%allenges is a strict internal disci&line w%ic% can %el& to e9&ose and integrate t%e sources of enter&rise knowledge< J =y&es of &ressures faced by most organi5ations@ o +%orter time to market o More demanding in.estors;customers o Knowledge worker turno.er N o&yrig%t >irtual :ni.ersity of 7akistan 1"2Knowledge Management EM!M=(/#0 >: Market 7otential J Knowledge &ortals are emerging as key tools for su&&orting t%e knowledge work&lace< J =%e infrastructure com&onents of t%e 1nter&rise Information 7ortal B1I7C market@ o )usiness intelligence o ontent management o Data management o Data ware%ouses;data marts Knowledge 7ortal =ec%nologies $unctionality J !at%ering J ategori5ation J ollaboration J Distribution J 7ersonali5ation J 7ublis%ing J +earc%ing;Na.igation ollaboration J =%e aim for using t%e collaboration tools is to create a collaborati.e KM system w%ic% su&&orts s%aring and reusing information< J In t%e conte9t of KM, collaboration im&lies t%e ability for more t%an one &eo&le to work toget%er in a coordinated fas%ion o.er time Band s&aceC using electronic de.ices< J =y&es of collaboration@ o 3sync%ronous collaboration@ 0uman(to(%uman interactions .ia com&uter systems %a.ing no time;s&ace constraints< o +ync%ronous collaboration@ 0uman(to(%uman interactions B.ia com&uter systemsC t%at occurs instantly< J 7us% =ec%nology@ 7laces information in a &lace w%ere is it easily .isible< J 7ull =ec%nology@ ReFuires to take s&ecific actions in order to retrie.e information< ontent Management J ReFuires directory;inde9ing ca&abilities to automatically mange t%e e.er growing ware%ouses of enter&rise data< J 3ddresses t%e &roblem of searc%ing for knowledge in all information sources of t%e enter&rise< =%is knowledge can include structured as well as unstructured internal information obKects like office documents, collaborati.e data, MI+, e9&erts, and also e9ternal information< J Metadata is reFuired to define t%e ty&es of information< J ontent management com&onent needs to &ublis% information in t%e knowledge(base< J ontent management can %andle t%e way t%e documents are analy5ed, categori5ed, and stored< J ategori5ing@ 3s t%e .olume of documents Bunder managementC grows, it becomes rat%er im&ortant to organi5e similar documents into smaller grou&s and to name t%e grou&s< J +ince document collections are not static, %ence &ortals must &ro.ide some form of ta9onomy maintenance< 3s new documents are added, t%ey must be added to t%e ta9onomy at &ro&er &laces Busing a classification tec%nologyC< 3s t%e clusters grow and as t%e conce&tual content of t%e new documents c%ange o.er time, it can become necessary to subdi.ide clusters or to mo.e documents from one clustered to anot%er< Intelligent 3gents J 3gents are software w%ic% are able to e9ecute a wide range of functional tasks Be<g, comå, learning, searc%ing etcC< J Intelligent agents are tools t%at can be a&&lied in t%e conte9t of 1K7Os< N o&yrig%t >irtual :ni.ersity of 7akistan 1"8Knowledge Management EM!M=(/#0 >: J =%ey are still in t%eir infancy, most a&&lications are yet e9&erimental and %a.e not reac%ed t%e actual commercial stage< J 3s t%e relations%i&s between t%e organi5ations and t%eir customers become more com&le9, t%e organi5ation needs more information regarding w%at t%ese relations%i&s mean and t%e way to e9&loit t%em< Intelligent agent tec%nology can %el& to address t%ese needs< J ustomers usually set certain &riorities w%ile &urc%asing &roducts Bor using ser.icesC< Intelligent agents can master t%e indi.idual customersO demand &riorities by learning from e9&erience wit% t%em, and most of all t%ey can Fualitati.ely and Fuantitati.ely analy5e t%ese &riorities< J +ome of t%e customer ser.ices t%at can be benefited by intelligent agents@ o ustomer assistance Bcustomi5edC wit% online ser.ices< o ustomer &rofiling and integrating &rofiles of customers into a grou& of marketing acti.ities< o $orecasting customer reFuirements< o 19ecuting transactions BfinancialC on t%e be%alf of customers< o Negotiating &rices;&ayment sc%edules< =1+= M4:R :ND1R+=3NDIN! 1< W%y is t%ere a need for &ortals? 0ow are &ortals similar to t%e conce&t of data ware%ouses and data marts? 3lmost all organi5ations are facing c%allenges t%at im&ose t%e need for integrated and e9&osed knowledge< =%ese &ressures are as follows@ J +%orter time to market< New &roducts and ser.ices %a.e to be concei.ed, de.elo&ed, and deli.ered in mont%s, or e.en weeks< J Knowledge worker turno.er< W%en a &i.otal &erson lea.es, t%e &ain is widely and Fuickly felt< GItAs becoming increasingly difficult to acFuire and retain em&loyees, and a com&anyAs strongest asset is its &eo&le,H says %ris Moore, c%ief tec%nology officer at =raining +er.er, Inc< G4rgani5ations t%at do not ta& into t%eir mind s%are and take ad.antage of t%e knowledge wit%in will Fuickly fall be%ind<H J More demanding customers and in.estors< $or .irtually e.ery organi5ation, t%e sFuee5e is on customers wanting to &ay less w%ile in.estors want more .alue from t%eir &ortfolios< =%is means t%at all t%e resources to w%ic% an organi5ation can lay claim, including its intellectual resources, must be managed for t%e best result< Data ware%ouses and data marts gi.e access to data collected from different databases< 7ortals &ro.ide t%e interface to reac%, and mani&ulate data in data ware%ouses in addition to ot%er collaboration ser.ices< 2< W%at are t%e ad.antages and disad.antages of %a.ing your &ortal on t%e Internet instead of an intranet? 3n enter&rise &ortal is designed to &ro.ide t%e same interface for em&loyees, managers, customers, and su&&liers< It allows anybody in.ol.ed in t%e enter&rise to %a.e access to t%e &ortal from anyw%ere from t%e world< It is not restricted to local use< =%erefore, it is better to de&loy &ortals o.er t%e Internet rat%er t%an t%e Intranet< N o&yrig%t >irtual :ni.ersity of 7akistan 120Knowledge Management EM!M=(/#0 >: #< -ist t%e differences between knowledge and information &ortals< Discuss t%e benefits of eac%< 1nter&rise Information 7ortals 1nter&rise Knowledge 7ortals J :se bot% G&us%H and G&ullH tec%nologies to transmit information to users t%roug% a standardi5ed Web(based interface J Integrate dis&arate a&&lications including content management, business intelligence, data ware%ouse;data mart, data management, and ot%er data e9ternal to t%ese a&&lications into a single system t%at can Gs%are, manage, and maintain information from one central user interfaceH J 0a.e t%e ability to access bot% e9ternal and internal sources of data and information6 and t%e ability to su&&ort a bi(directional e9c%ange of information wit% t%ese sources J 3re goal(directed toward knowledge &roduction, knowledge acFuisition, knowledge transmission, and knowledge management J 3re focused on enter&rise business &rocesses suc% as sales, marketing, and risk management J 7ro.ide, &roduce, and manage information about t%e .alidity of t%e information t%ey su&&lies J Include all 1I7s functionalities =%e main benefits of eac%@ Knowledge &ortals J 7ro.ide information on .arious to&ics, and can be customi5ed to meet a userAs indi.idual needs< J 7ortals make it easy to access knowledge because of t%eir uni.ersal interfaceZa Web browser< J 4nline &ortal systems let I= organi5ations access a .ariety of back(end systems Bsuc% as &rocess management soft(ware and met%odology databasesC< J Knowledge &ortals &ro.ide two kinds of interfaces@ J =%e knowledge &roducer interface< It facilitates t%e knowledge workerAs Kob of gat%ering and analy5ing information, collaborating wit% &eers or colleagues, and finally generating new knowledge< J =%e knowledge consumer interface< It facilitates t%e dissemination of knowledge across t%e enter&rise< 3 key feature of knowledge &ortals is a so&%isticated &ersonali5ation facility t%at takes into account t%e consumer &rofile< Information 7ortals J )enefits for com&anies include -owered costs, increased sales, and better de&loyment of resources< J 7ortals integrate a&&lications by combining, standardi5ing, analy5ing, and distributing rele.ant information and knowledge to end users, w%et%er t%ey are customers, em&loyees, or &artners< '< Discuss t%e strategic and tec%nological fit reFuired for an organi5ation to im&lement a &ortal< om&anies must de.elo& strategies and &rocesses designed to best utili5e intellectual resources at bot% t%e strategic and o&erational le.els< om&anies already began using grou&ware Bsuc% as e(mail, discussion forums, and document librariesC for coordinating acti.ities< Now, de&loying ne9t(generation information, a&&lication &latforms Bsuc% as enter&rise &ortalsC, and real(time tools Bsuc% as instant messaging, Web conferencing, and streaming audio;.ideoC are reFuired< *< Discuss t%e differences between static and dynamic &ortals< W%en would you use eac%? 3 +tatic &ortal is a unified interface &ro.iding access to enter&rise a&&lications< 3 dynamic &ortal %as collaboration and interacti.ity features< N o&yrig%t >irtual :ni.ersity of 7akistan 121Knowledge Management EM!M=(/#0 >: /< Discuss %ow you can use content management to sort knowledge from e9ternal and internal sources< Illustrate wit% e9am&les< ontent management in t%e 1K7 conte9t reFuires directory and inde9ing ca&abilities to automatically manage t%e e.er(growing store of structured and unstructured data residing in data ware%ouses, Web sites, 1R7 systems, legacy a&&lications, and so fort%< :sing metadata to define ty&es of information, good content management can ser.e as t%e backbone for a system of cor&orate decision(making w%ere business intelligence tools mine data and re&ort findings back to key &layers in t%e enter&rise< ontent management may also in.ol.e going outside t%e enter&rise, em&loying crawlers t%at find &ertinent data .ia t%e Internet, incor&orating it into e9isting systems, inde9ing it, and deli.ering it to a&&ro&riate analysts, knowledge workers, or decision makers< "< Discuss t%e issues t%at can arise w%en im&lementing a &ortal< $ocus on tec%nology, management, cor&orate strategy, and end users< $or globally distributed organi5ations Bt%at is, most international de.elo&ment organi5ationsC t%at rely on t%e Internet as a medium for t%e s%aring of knowledge, t%e issue of bandwidt% is fundamental< 3t t%is &oint in t%e e.olution of t%e Internet, bandwidt% is a c%ief constraining factor for many a&&lications< 2< !i.e e9am&les and uses of &ortals for )2), )2, )2!, 2, and 2!< J 3ma5on<com is an e9am&le of )2 &ortals J 7lastice9c%anc%e<com, %emonnect<com, 7a&erloo&<com are e9am&les of )2) &ortals for t%e &lastics c%emical and &a&er industries J www<e(go.ernment<go.t<n5; is a 2! &ortal allowing &eo&le to find and use New [ealand go.ernment information and ser.ices J www<firstgo.<go. is t%e official :<+< gateway to all go.ernment information< $irst !o. is a com&re%ensi.e &ortal connecting citi5ens, businesses, and agencies to t%e go.ernment< 8< -ist a number of &ossible ways a &ortal can be made accessible, gi.en current tec%nological trends< $ocus on fi.e of t%ese tec%nologies and discuss t%eir strengt%s and weaknesses< J Internet J Intranet J 19tranet J Mobility &ortals J -earned -essons 11< 3n audit firm needs to de.elo& a system t%at allows auditors and &ublic accountants to searc% accounting standards, s%are knowledge, communicate, and s%are Word and 19cel files between t%e %ead office and clientsA sites< 3s a consultant, you %a.e been asked to recommend suc% a system< W%at would you suggest? =%e suggested system is an enter&rise knowledge &ortal B1K7C wit% t%e following functionalities@ J !at%ering@ =%is function ca&tures all accounting standard in a common re&ository< J ategori5ation@ =%is function &rofiles information and organi5es it in an understandable and &resentable way suc% as Word and 19cel files< =%is categori5ation is su&&orted at all le.els Bem&loyees, managers, and clientsC J Distribution@ =%is facility su&&orts t%e distribution of structured and unstructured information in t%e form of electronic documents< J ollaboration@ =%is function is used to s%are t%e knowledge between t%e %ead office and clientAs sites t%roug% async%ronous collaboration suc% as e(mails, discussion forum, etc< J +earc%;Na.igate@ W%ic% will %el& clients and em&loyees to reac% reFuired information? N o&yrig%t >irtual :ni.ersity of 7akistan 122Knowledge Management EM!M=(/#0 >: 12< 3 %ardware retailer wis%es to offer real(time su&&ort to customers .ia t%e Internet< +uggest %ow a knowledge &ortal, eFui&&ed wit% c%at and RM, can be used to accom&lis% t%is< W%at additional su&&ort can t%e %ardware retailer offer? W%at information can %e gi.e to t%e manufacturer? )y using a knowledge &ortal eFui&&ed wit% a sync%ronous collaboration tools, t%e retailer can accom&lis% t%e following customer su&&ort, %e will im&ro.e costumer retention and satisfaction by sol.ing t%eir &roblems online and immediately< 0e will be able to reduce costs t%roug% decreasing &%one calls and site .isiting< 3lso, %e will be able to &enetrate new market segments by attracting new customers w%o will find t%e ser.ice an attracti.e and easy to ada&t to one< =%e retailer can add an $3I section t%at enlists t%e most common defects t%at encounter %ardware, wit% t%e ability of u&dating it regularly using in&ut from customers< =%is will add .alue to t%e costumer as s%e can find w%at s%e is looking for wit%out t%e need to ty&e a massage also it will be beneficial for t%e manufacturer w%o will use t%e costumersA feedback to im&ro.e Fuality of %is &roducts< 1#< Discuss %ow synergy between different strategic business units can be %arnessed and utili5ed by knowledge &ortals< )y using a knowledge &ortal, different business units can interact and collaborate to reac% t%e best results< It enables t%e em&loyees to use a web(based work&lace for drag and dro& file s%aring, multit%readed discussions, real time messaging, and &olling< 3lso, &roducti.ity can be increased because users of t%e &ortals from different business units know w%at is %a&&ening across t%e enter&rise and can stay on to& of t%ere costumers, &roducts and markets, dri.ing sales< 3dditionally, em&loyees can communicate wit% one anot%er and discuss .arious issues wit%out consuming muc% resources and time< N o&yrig%t >irtual :ni.ersity of 7akistan 12#Knowledge Management EM!M=(/#0 >: -1++4N #' KM +M+=1M+ 3ND =10NI3- -3M1R+ Knowledge =ransfer in 1(World =%e =ec%nical ore =%e obKecti.e of t%e tec%nical core is to en%ance communication as well as ensure effecti.e knowledge s%aring< J =ec%nology &ro.ides a lot of o&&ortunities for managing tacit knowledge in t%e area of communication< J ommunication networks create links between necessary databases< J 0ere t%e term tec%nical core is meant to refer to t%e totality of t%e reFuired %ardware, software, and t%e s&eciali5ed %uman resources< J 19&ected attributes of tec%nology under t%e tec%nical core@ 3ccuracy, s&eed, reliability, security, and integrity< J +ince an organi5ation can be t%oug%t of as a knowledge network, t%e goal of knowledge economy is to &us% em&loyees towards greater efficiency; &roducti.ity by making best &ossible use of t%e knowledge t%ey &osses< J 3 knowledge core usually becomes a network of tec%nologies designed to work on to& of t%e organi5ationOs e9isting network< :ser Interface -ayer J :sually a web browser re&resents t%e interface between t%e user and t%e KM system< J It is t%e to& layer in t%e KM system arc%itecture< J =%e way t%e te9t, gra&%ics, tables etc are dis&layed on t%e screen tends to sim&lify t%e tec%nology for t%e user< J =%e user interface layer s%ould &ro.ide a way for t%e &ro&er flow of tacit and e9&licit knowledge< J =%e necessary knowledge transfer between &eo&le and tec%nology in.ol.es ca&turing tacit knowledge from e9&erts, storing it in knowledge base, and making it a.ailable to &eo&le for sol.ing com&le9 &roblems< J $eatures to be considered in case of user interface design@ o onsistency o Rele.ancy o >isual clarity o :sability o 1ase of Na.igation 3ut%ori5ed 3ccess -ayer N o&yrig%t >irtual :ni.ersity of 7akistan 12'Knowledge Management EM!M=(/#0 >: J =%is layer maintains security as well as ensures aut%ori5ed access to t%e knowledge ca&tured and stored in t%e organi5ationOs re&ositories< J =%e knowledge is usually ca&tured by using internet, intranet of e9tranet< J 3n organi5ationOs intranet re&resents t%e internal network of communication systems< J 19tranet is a ty&e of intranet wit% e9tensions allowing s&ecified &eo&le Bcustomers, su&&liers, etc<C to access some organi5ational information< J Issues related to t%e access layer@ access &ri.ileges, backu&s< J =%e access layer is mostly focused on security, use of &rotocols Blike &asswordsC, and software tools like firewalls< J $irewalls can &rotect against@ o 1(mails t%at can cause &roblems< o :naut%ori5ed access from t%e outside world< o :ndesirable material Bmo.ies, images, music etcC< o :naut%ori5ed sensiti.e information lea.ing t%e organi5ation< J $irewalls can not &rotect against@ o 3ttacks not going t%roug% t%e firewall< o >iruses on flo&&y disks< o Weak security &olicies< ollaborati.e Intelligence and $iltering -ayer J =%is layer &ro.ides customi5ed .iews based on stored knowledge< J 3ut%ori5ed users can find information Bt%roug% a searc% mec%anismC tailored to t%eir needs< J Intelligent agents Bacti.e obKects w%ic% can &ercei.e, reason, and act in a situation to %el& &roblem sol.ingC are found to be e9tremely useful in some situations< J In case of client;ser.er com&uting, t%ere %a&&ens to be freFuent and direct interaction between t%e client and t%e ser.er< J In case of mobile agent com&uting, t%e interaction %a&&ens between t%e agent and t%e ser.er< J 3 mobile agent roams around t%e internet across multi&le ser.ers looking for t%e correct information< +ome benefits can be found in t%e areas of@ o $ault tolerance< o Reduced o.erall network load< o 0eterogeneous o&eration< J Key com&onents of t%is layer@ o =%e registration directory t%at de.elo&s tailored information based on user &rofile< o Members%i& in s&ecific ser.ices, suc% as sales &romotion, news ser.ice etc< o =%e searc% facility suc% as a searc% engine< J In terms of t%e &rereFuisites for t%is layer, t%e following criteria can be considered@ o +ecurity< o 7ortability< o $le9ibility o +calability o 1ase of use< o Integration< Knowledge(1nabling 3&&lication -ayer B>alue(3dded -ayerC J =%is creates a com&etiti.e edge< J Most of t%e a&&lications %el& users to do t%eir Kobs in better ways< J =%ey include knowledge bases, discussion databases, decision su&&ort etc< =rans&ort -ayer J =%is is t%e most tec%nical layer< J It ensures to make t%e organi5ation a network of relations%i&s w%ere electronic transfer of knowledge can be considered as routine< J =%is layer associates wit% -3N B-ocal 3rea NetworkC, W3N BWide 3rea NetworkC, intranets, e9tranets, and internet< N o&yrig%t >irtual :ni.ersity of 7akistan 12*Knowledge Management EM!M=(/#0 >: J In t%is layer we consider multimedia, :R-Os, connecti.ity s&eeds;bandwidt%s, searc% tools, and consider managing of network traffic< Middleware -ayer J =%is layer makes it &ossible to connect between old and new data formats< J It contains a range of &rograms to do t%is Kob< Re&ositories -ayer J It is t%e bottom layer of t%e KM arc%itecture w%ic% re&resents t%e &%ysical layer in w%ic% re&ositories are installed< J =%ese may include, legacy a&&lications, intelligent data ware%ouses, o&erational databases etc< J 3fter establis%ing t%e re&ositories, t%ey are linked to form an integrated re&ository< Distinguis% between a< =rans&ort layer and a&&lication layer b< :sability and &ortability c< 7rofiling and re&ository d< ollaborati.e intelligence and intelligent agent =%e =rans&ort -ayer is t%e layer t%at standardi5es e9c%anges between t%e o&erating systems of t%e com&uters in t%e system< It includes local area networks B-3NsC, wide area networks BW3NsC, intranets, e9tranets, and t%e Internet< < W%ile, t%e 3&&lication -ayer is t%e a&&lications t%at &ro.ide t%e user wit% better ways to do t%eir Kobs< =%ey include knowledge bases, discussion databases, sales force automation tools, yellow &ages, decision su&&ort, and imaging tools< b< :sability ensures user(friendly software< 7ortability is a measure of %ow well t%e software will run on different com&uters< c< 7rofiling@ In knowledge management systems, it is generating a gra&%ic or d< =e9tual re&resentation of &eo&le in terms of criteria suc% as skills, &ersonality traits, etc< W%ile, re&ository is a storage subsystem, suc% as a database for data, information, or knowledge storage< N o&yrig%t >irtual :ni.ersity of 7akistan 12/Knowledge Management EM!M=(/#0 >: e< ollaborate Intelligence &ro.ides customi5ed or &ersonali5ed .iew based on stored knowledge< It is designed to reduce searc% time for information by combining t%e knowledge soug%t and t%e userAs &rofile< W%ile, intelligent agents are acti.e obKects t%at can &ercei.e, reason Blearn from &ast mistakesC, and act in a situation t%at assists in &roblem sol.ing, retrie.ing t%e rig%t information< It be%a.es as a &ersonal assistant t%at coo&erates wit% t%e %uman users< N o&yrig%t >irtual :ni.ersity of 7akistan 12"Knowledge Management EM!M=(/#0 >: -1++4N #* KM +M+=1M 3ND -I$1 M-1 377R430@ 4N>1N=I4N3- >+ KM Key Differences between on.entional .s< KM +ystems J =%e systems analyst gat%ers data and information from t%e users and t%e users de&end on analysts for t%e solution< J =%e knowledge de.elo&er gat%ers knowledge from &eo&le wit% known knowledge and t%e de.elo&er de&ends on t%em for t%e solution< J =%e main interface for t%e systems analyst is associated wit% no.ice users w%o knows t%e &roblem but not t%e solution< J =%e main interface for t%e knowledge de.elo&er is associated wit% t%e knowledgeable &erson w%o knows t%e &roblem and t%e solution< J on.entional systems de.elo&ment is &rimarily seFuential, w%ereas KM+- is incremental and interacti.e< J In case of con.entional systems, testing is usually done towards t%e end of t%e cycle Bafter t%e system %as been builtC, w%ereas in KM+-, t%e e.ol.ing system is .erified and .alidated from t%e beginning of t%e cycle< J +ystems de.elo&ment and systems management is muc% more e9tensi.e for con.entional information systems t%an it is for KM+-< J =%e con.entional systems life cycle is usually &rocess(dri.en and documentation(oriented w%ereas KM+- is result(oriented< J =%e con.entional systems de.elo&ment does not su&&ort tools suc% as ra&id &rototy&ing since it follows a &redefined seFuence of ste&s J KM+- can use ra&id &rototy&ing incor&orating c%anges on t%e s&ot< Key +imilarities J )ot% cyclesA starts wit% a &roblem and end wit% a solution< J =%e early &%ase in case of con.entional systems de.elo&ment life cycle starts wit% information gat%ering< In KM+- t%e early &%ase needs knowledge ca&ture< J >erification and .alidation of a KM system is often .ery similar to con.entional systems testing< J )ot% t%e systems analyst and t%e knowledge de.elo&er needs to c%oose t%e a&&ro&riate tools for designing t%eir intended systems< N o&yrig%t >irtual :ni.ersity of 7akistan 122 +tructuring t%e 7roblem +tructuring t%e =ask )uilding a =ask Reformulating t%e 7roblem Making Modifications Re&eating ycle Re&eating ycle Ra&id 7rototy&ingKnowledge Management EM!M=(/#0 >: 3==RI):=1+ :+1R 1R71R= De&endence on +ystem 0ig% -ow 3mbiguity =olerance -ow 0ig% o(4&eration ReFuired Not ReFuired Knowledge about t%e 7roblem 0ig% 3.erage :ses t%e Mes No ontribution Information 19&ertise;Knowledge 3.ailability Mes, Readily a.ailable No, not readily a.ailable :sers and 19&erts@ 3 om&arison KM+- 3&&roac%es J 7rimarily due to lack of standardi5ation, a number of a&&roac%es %a.e been &ro&osed for KM+-< J =%e con.entional systems de.elo&ment a&&roac% can still be used for de.elo&ing KM systems, but it is usually being re&laced by iterati.e design, &rototy&ing etc< 1.aluating t%e 19isting Infrastructure KM systems are de.elo&ed in order to satisfy t%e need for im&ro.ing &roducti.ity and &otential of em&loyees and t%e com&any as a w%ole< =%e e9isting knowledge infrastructure is e.aluated so t%at it can gi.e t%e &erce&tion t%at t%e &resent ways of doing t%ings are not Kust abandoned in &reference for a new system< =est Mour :nderstanding 1< W%y is it %el&ful to .iew t%e building of a KM system as a life cycle? It is im&ortant to %a.e a life cycle in building knowledge management systems, because t%e life cycle &ro.ides structure and order to t%e &rocess< 3dditionally, t%e life cycle &ro.ides a breakdown of t%e acti.ities into manageable ste&s, good documentation for &ossible c%anges in t%e future, coordination of t%e &roKect for a timely com&letion, and regular management re.iew at eac% &%ase of t%e cycle< 2< In w%at ways do con.entional and KM systemsA de.elo&ment life cycles differ? 0ow are t%ey similar? =%ere are many differences between t%e con.entional and knowledge management systemsA de.elo&ment life cycle@ e< 3 con.entional system is seFuential Bcertain ste&s are carried out in seFuenceC, w%ile t%e knowledge management system life cycle is incremental and interacti.e f< In t%e con.entional system, testing generally occurs at t%e end of &rogramming, w%ile t%e knowledge management de.elo&ment life cycle &ro.ides for testing t%roug%out .arious &%ases of system de.elo&ment as t%e system e.ol.es N o&yrig%t >irtual :ni.ersity of 7akistan 128Knowledge Management EM!M=(/#0 >: g< =%e con.entional system is &rocess(dri.en and documentation(oriented, wit% em&%asis on t%e flow of data, w%ile t%e knowledge management de.elo&ment life cycle is result(oriented %< =%e con.entional system does not su&&ort ra&id &rototy&ing or ad.anced languages, w%ile t%e knowledge management de.elo&ment life cycle &romotes ra&id &rototy&ing and incor&orates c%anges on t%e s&ot 3long wit% t%ese differences, %owe.er, are many similarities as well@ d< )ot% cycles begin wit% a &roblem and end wit% a solution< e< )ot% cycles reFuire t%e initial gat%ering of information Bcon.entionalC or knowledge BKM+D-C for t%e &rocess to begin and ending u& wit% a tested system ready for use f< )ot% t%e knowledge de.elo&er and t%e systems analyst need to c%oose a tool to design t%e system #< Distinguis% between@ a< .erification and .alidation b< knowledge de.elo&er and systems analyst c< &u&il user and tutor user d< &roKection and a.oidance >erification determines if t%e system was built rig%t, w%ile .alidation ensures t%at t%e correct system was built to meet t%e userAs e9&ectations< 3 knowledge de.elo&er is a s&ecialists in building knowledge(based systems 0e or s%e is t%e key arc%itect of suc% systems< In contrast, a systems analyst is a s&ecialist in building information systems< 0e or s%e is t%e arc%itect of suc% systems, w%ic% includes designing testing, and installing t%e system< 3 &u&il(user is an unskilled worker trying to learn or gain some understanding of t%e ca&tured knowledge< 3 tutor(user is a user wit% a working knowledge of t%e knowledge management system and is res&onsible for system maintenance 7roKection is resistance to knowledge management system de.elo&ment t%roug% em&loyee dis&lay of %ostility toward &eers< 3.oidance is resistance to a knowledge management system t%roug% em&loyee wit%drawal from t%e Kob or scene< N o&yrig%t >irtual :ni.ersity of 7akistan 180Knowledge Management EM!M=(/#0 >: -1++4N #/ KM +M+=1M D:+=I$I3=I4N 3ND $13+I)I-I=M I++:1+, IM7-1M1N=3=I4N I++:1+ 3ND R1+I+=3N1 KM +ystem Dustification It in.ol.es answers to t%e following Fuestions@ J Is e9isting knowledge going to be lost t%roug% retirement, , transfer, or de&arture to ot%er organi5ations? J Is t%e &ro&osed KM system needed in multi&le locations? J 3re e9&erts a.ailable and willing to su&&ort t%e building of t%e &ro&osed KM system? J Does t%e concerned &roblem needs years of &ro&er e9&erience and cogniti.e reasoning to sol.e? J W%ile undergoing knowledge ca&ture, would it be &ossible for t%e e9&ert to articulate %ow t%e &roblem will be sol.ed? J 0ow critical is t%e knowledge t%at is to be ca&tured? J 3re t%e in.ol.ed tasks no algorit%mic in nature? J Would it &ossible to find a c%am&ion wit%in t%e organi5ation? +co&ing@ +co&ing means limiting t%e breadt% and de&t% of t%e &roKect wit%in t%e financial, %uman resource, and o&erational constraints< $easibility@ $easibility study in.ol.es addressing t%e following Fuestions@ J Is it &ossible to com&lete t%e &roKect wit%in t%e e9&ected timeframe? J Is t%e &roKect affordable? J Is t%e &roKect a&&ro&riate? J 0ow freFuently t%e system would be consulted at w%at will be associated cost? =%e traditional a&&roac% used to conduct a feasibility study can be used for building a KM system< =%is in.ol.es t%e following tasks@ J $orming a knowledge management team< J 7reå a master &lan< J 7erforming cost;benefit analysis of t%e &ro&osed system< J Iuantifying system criteria and costs< :ser +u&&ort J Is t%e &ro&osed user aware of t%e fact t%at t%e new KM system is being de.elo&ed? 0ow it is &ercei.ed? J 0ow muc% in.ol.ement can be e9&ected from t%e user w%ile t%e building &rocess continues? J W%at ty&e of users training will needed w%en t%e &ro&osed system is u& and running? J W%at kind of o&erational su&&ort s%ould be &ro.ided? Role of +trategic 7lanning J 3s a conseFuence of e.aluating t%e e9isting infrastructure, t%e concerned organi5ation s%ould de.elo& a strategic &lan w%ic% s%ould aim at ad.ancing t%e obKecti.es of t%e organi5ation wit% t%e &ro&osed KM system in mind< J 3reas to be considered@ o >ision o Resources o ulture N o&yrig%t >irtual :ni.ersity of 7akistan 181Knowledge Management EM!M=(/#0 >: $orming a KM team $orming a KM team usually means@
J Identifying t%e key units, branc%es, di.isions etc< as t%e key stake%olders in t%e &ros&ecti.e KM system< J +trategically, tec%nically, and organi5ationally balancing t%e team si5e and com&etency< $actors im&acting team success@ J Iuality and ca&ability of team members Bin terms of &ersonality, e9&erience, and communication skillC< J +i5e of t%e team< J om&le9ity of t%e &roKect< J =eam moti.ation and leaders%i& J 7romising only w%at t%at can be actually deli.ered< a&turing Knowledge J a&turing Knowledge in.ol.es e9tracting, analy5ing and inter&reting t%e concerned knowledge t%at a %uman e9&ert uses to sol.e a s&ecific &roblem< J 19&licit knowledge is usually ca&tured in re&ositories from a&&ro&riate documentation, files etc< J =acit knowledge is usually ca&tured from e9&erts, and from organi5ationOs stored databaseBsC< J Inter.iewing is one of t%e most &o&ular met%ods used to ca&ture knowledge< J Data mining is also useful in terms of using intelligent agents t%at may analy5e t%e data ware%ouse and come u& wit% new findings< J In KM systems de.elo&ment, t%e knowledge de.elo&er acFuires t%e necessary %euristic knowledge from t%e e9&erts for building t%e a&&ro&riate knowledge base< J Knowledge ca&ture and knowledge transfer are often carried out t%roug% teams Brefer to $igure 2<'C< J Knowledge ca&ture includes determining feasibility, c%oosing t%e a&&ro&riate e9&ert, ta&&ing t%e e9&erts knowledge, reta&&ing knowledge to &lug t%e ga&s in t%e system, and .erify;.alidate t%e knowledge base Brefer to =able #<' in &age "/ of your te9tbookC< N o&yrig%t >irtual :ni.ersity of 7akistan 182Knowledge Management EM!M=(/#0 >: =%e Role of Ra&id 7rototy&ing J In most of t%e cases, knowledge de.elo&ers use iterati.e a&&roac% for ca&turing knowledge< J $oe e9am&le, t%e knowledge de.elo&er may start wit% a &rototy&e Bbased on t%e some%ow limited knowledge ca&tured from t%e e9&ert during t%e first few sessionsC< J =%e following can turn t%e a&&roac% into ra&id &rototy&ing@ o Knowledge de.elo&er e9&lains t%e &reliminary;fundamental &rocedure based on rudimentary knowledge e9tracted from t%e e9&ert during t%e few &ast sessions< o =%e e9&ert reacts by saying certain remarks< o W%ile t%e e9&ert watc%es, t%e knowledge de.elo&er enters t%e additional knowledge into t%e com&uter(based system Bt%at re&resents t%e &rototy&eC< o =%e knowledge de.elo&er again runs t%e modified &rototy&e and continues adding additional knowledge as suggested by t%e e9&ert till t%e e9&ert is satisfied< J =%e s&ontaneous, and iterati.e &rocess of building a knowledge base is referred to as ra&id &rototy&ing< 19&ert +election =%e e9&ert must %a.e e9cellent communication skill to be able to communicate information understandably and in sufficient detail< +ome common Fuestions t%at may arise in case of e9&ert selection@ J 0ow to know t%at t%e so(called e9&ert is in fact an e9&ert? J Will %e;s%e stay wit% t%e &roKect till its com&letion? J W%at backu& would be a.ailable in case t%e e9&ert loses interest or Fuits? J 0ow is t%e knowledge de.elo&er going to know w%at does and w%at does not lie wit%in t%e e9&ertOs area of e9&ertise? =%e Role of t%e Knowledge De.elo&er J =%e knowledge de.elo&er can be considered as t%e arc%itect of t%e system< J 0e;s%e identifies t%e &roblem domain, ca&tures knowledge, writes;tests t%e %euristics t%at re&resent knowledge, and co(ordinates t%e entire &roKect< J +ome necessary attributes of knowledge de.elo&er@ o ommunication skills< o Knowledge of knowledge ca&ture tools;tec%nology< o 3bility to work in a team wit% &rofessional;e9&erts< o =olerance for ambiguity< o =o be able it t%ink conce&tually< o 3bility to freFuently interact wit% t%e c%am&ion, knowledge workers and knower in t%e organi5ation< N o&yrig%t >irtual :ni.ersity of 7akistan 18#Knowledge Management EM!M=(/#0 >: Designing t%e KM )lue&rint =%is &%ase indicates t%e beginning of designing t%e I= infrastructure; Knowledge Management infrastructure< =%e KM )lue&rint BKM system designC addresses a number of issues< J 3iming for system intero&erability;scalability wit% e9isting I= infrastructure of t%e organi5ation< J $inali5ing t%e sco&e of t%e &ro&osed KM system< J Deciding about t%e necessary system com&onents< J De.elo&ing t%e key layers of t%e KM arc%itecture to meet organi5ationOs reFuirements< =%ese layers are@ o :ser interface o 3ut%entication;security layer o ollaborati.e agents and filtering o 3&&lication layer o =rans&ort internet layer o 7%ysical layer o Re&ositories =esting t%e KM +ystem =%is &%ase in.ol.es t%e following two ste&s@ J >erification 7rocedure@ 1nsures t%at t%e system is rig%t, i<e<, t%e &rograms do t%e task t%at t%ey are designed to do< J >alidation 7rocedure@ 1nsures t%at t%e system is t%e rig%t system ( it meets t%e userOs e9&ectations, and will be usable on demand< Im&lementing t%e KM +ystem N o&yrig%t >irtual :ni.ersity of 7akistan 18'Knowledge Management EM!M=(/#0 >: J 3fter ca&turing t%e a&&ro&riate knowledge, encoding in t%e knowledge base, .erifying and .alidating6 t%e ne9t task of t%e knowledge de.elo&er is to im&lement t%e &ro&osed system on a ser.er< J Im&lementation means con.erting t%e new KM system into actual o&eration< J on.ersion is a maKor ste& in case of im&lementation< J +ome ot%er ste&s are &ost im&lementation re.iew and system maintenance< Iuality 3ssurance It indicates t%e de.elo&ment of controls to ensure a Fuality KM system< =%e ty&es of errors to look for@ J Reasoning errors J 3mbiguity J Incom&leteness J $alse re&resentation =raining :sers J =%e le.el;duration of training de&ends on t%e userOs knowledge le.el and t%e systemOs attributes< J :sers can range from no.ices Bcasual users wit% .ery limited knowledgeC to e9&erts Busers wit% &rior I= e9&erience and knowledge of latest tec%nologyC< J :sers can also be classified as tutors Bw%o acFuires a working knowledge in order to kee& t%e system currentC, &u&ils Bunskilled worker w%o tries to gain some understanding of t%e ca&tured knowledgeC, or customers Bw%o is interested to know %ow to use t%e KM systemC< J =raining s%ould be geared to t%e s&ecific user based on ca&abilities, e9&erience and system com&le9ity< J =raining can be su&&orted by user manuals, e9&lanatory facilities, and Kob aids< Managing %ange Im&lementation means c%ange, and organi5ational members usually resist c%ange< =%e resistors may include@ J 19&erts J Regular em&loyees BusersC J =roublemakers J Narrow minded &eo&le Resistance can be seen in t%e form of following &ersonal reactions@ J 7roKection, i<e<, %ostility towards &eers< J 3.oidance, i<e<, wit%drawal from t%e scene< J 3ggression< 7ost system 1.aluation Key Fuestions to be asked in t%e &ost im&lementation stage@ J 0ow t%e new system im&ro.ed t%e accuracy;timeliness of concerned decision making tasks? J 0as t%e new system caused organi5ational c%anges? If so, %ow constructi.e are t%e c%anges? J 0as t%e new system affected t%e attitudes of t%e end users? If so, in w%at way? J 0ow t%e new system c%anged t%e cost of business o&eration? 0ow significant %as it been? J In w%at ways t%e new system affected t%e relations%i&s between end users in t%e organi5ation? J Do t%e benefit obtained from t%e new system Kustify t%e cost of in.estment? Im&lications for KM N o&yrig%t >irtual :ni.ersity of 7akistan 18*Knowledge Management EM!M=(/#0 >: =%e managerial factors to be considered@ J =%e organi5ation must make a commitment to user training;education &rior to building t%e system< J =o& Management s%ould be informed wit% cost;benefit analysis of t%e &ro&osed system< J =%e knowledge de.elo&ers and t%e &eo&le wit% &otential to do knowledge engineering s%ould be &ro&erly trained< J Domain e9&erts must be recogni5ed and rewarded< J =%e organi5ation needs to do long(range strategic &lanning< +ome Fuestions to be addressed by t%e management regarding systems maintenance@ J W%o will be t%e in c%arge of maintenance? J W%at skills t%e maintenance s&ecialist needs to %a.e? J W%at would be t%e best way to train t%e maintenance s&ecialist? J W%at incenti.es s%ould be &ro.ided to ensure Fuality maintenance? J W%at ty&es of su&&ort;funding will be reFuired? W%at relations%i& s%ould be establis%ed between t%e maintenance of t%e KM system and t%e I= staff of t%e organi5ation? I< 1 +uccessful KM system im&lementation de&ends on se.eral factors< )riefly, e9&lain eac% factor k< -e.el of moti.ation of t%e user< !ood documentation cannot com&ensate for low moti.ation or &oor attitude toward t%e system< 7romoting moti.ation and commitment takes time and must be &lanned in ad.ance l< om&uter literacy and tec%nical background of t%e user< 3 com&uter literate user can be easier to work wit% t%an someone w%o %as no background at all< $irst(time users often reFuire education and training before t%ey are able to su&&ort de.elo&ment and use of knowledge(based system< m< ommunication skills of t%e trainer< +elling &eo&le on c%ange is sometimes considered more an art t%an a science< ommunication skills can make t%e difference between a userAs acce&tance or reKection of t%e installation< n< =ime a.ailability and funding for training< 3 training &rogram run on a s%oestring is usually a loser< 3lso, sFuee5ing training time to t%e bare minimum often results in trainee im&atience, resistance to learning, or nonuse of t%e system< =raining s%ould be &art of t%e im&lementation &%ase offered around t%e sc%edule of t%e user< o< 7lace of training< =%e location of training can make a difference< 4n(site .ersus off(site training continues to be an issue wit% &lusses and minuses for eac% alternati.e< 4ff(site training is generally dedicated uninterru&ted learning< Its &ositi.e benefits include &ri.acy and focus on t%e &roKects< =%e feasibility of off(site training de&ends on distance, location, and funding< In contrast, on(site training reFuires no out(of(town trans&ortation or room and board e9&enses< Met, it can be interru&ted by tele&%one calls, secretaries, and unin.ited Ggawkers<H &< 1ase and duration of training< =%is as&ect de&ends on t%e caliber of t%e trainer and t%e attitude and moti.ation of t%e trainees< G%emistryH often affects %ow well all &arties work wit% eac% ot%er< 3lso, t%e training &eriod s%ould be reasonable and able to meet measurable goals< 3 long, drawn(out t%ree(week training &eriod does not &romote t%e same e9citement and moti.ation as a one(week session< F< 1ase of access and e9&lanatory facilities of t%e knowledge management system< Knowledge management systems s%ould be easy to access and work wit%< 3 software &ackage t%at &ro.ides adeFuate e9&lanations is bound to satisfy most users< =%e e9&lanatory facility of t%e &ackage &romotes ease of use and &ro.ides con.incing e.idence of t%e integrity of t%e solutions &ro.ided by t%e system r< 1ase of maintenance and system u&date< 3t t%is stage, good documentation and easy(to( follow &rocedures in a module(oriented knowledge management system can make t%e difference between easy maintenance and a Gnig%tmare<H In t%is case, maintenance im&lies u&date, alt%oug% u&date is more often considered en%ancement< N o&yrig%t >irtual :ni.ersity of 7akistan 18/Knowledge Management EM!M=(/#0 >: s< 7ayoff to t%e organi5ation< 3 systemAs benefit to t%e organi5ation is usually measured in terms of cost reduction, im&ro.ement in sales or o.erall &erformance, and so on< Measurable &ayoff early in t%e de.elo&ment life cycle &romotes successful im&lementation< t< Role of t%e c%am&ion< +olid to& management su&&ort and a c%am&ion &us%ing for system ado&tion can make a difference between a successful and a lukewarm installation I< 2 0ow im&ortant are organi5ational factors in system im&lementation? =%e &rimary organi5ational factor is to& management commitment to t%e &ro&osed knowledge management system< =%is is e.ident by t%e way it &romotes t%e de.elo&ment effort t%roug% adeFuate funding, ensuring t%e a.ailability of %ardware and &ersonnel, and allowing t%e c%am&ion to function wit%in t%e de.elo&ment &rocess< =%e second organi5ational factor is user &artici&ation in t%e building &rocess< Doing so tends to increase commitment and foster a sense of owners%i& of t%e system< 4t%er organi5ational factors include organi5ational &olitics and organi5ational climate< 7olitics is Kockeying for le.erage to influence oneAs domain and control &rocedures, tec%nology, or t%e direction of an area of o&eration< :ser readiness can also influence t%e success of im&lementation< N o&yrig%t >irtual :ni.ersity of 7akistan 18"Knowledge Management EM!M=(/#0 >: -1++4N #" 37=:RIN! =3I= KN4W-1D!1 3ND 1R71R=A+ 1>3-:3=I4N a&turing t%e =acit Knowledge J Knowledge a&ture can be defined as t%e &rocess using w%ic% t%e e9&ertOs t%oug%ts and e9&eriences can be ca&tured< J In t%is case, t%e knowledge de.elo&er collaborates wit% t%e e9&ert in order to con.ert t%e e9&ertise into t%e necessary &rogram codeBsC< J Im&ortant ste&s@ o :sing a&&ro&riate tools for eliciting information< o Inter&reting t%e elicited information and conseFuently inferring t%e e9&erts underlying knowledge;reasoning &rocess< o $inally, using t%e inter&retation to construct t%e necessary rules w%ic% can re&resent t%e e9&erts reasoning &rocess 19&ert 1.aluation Indicators of e9&ertise@ o =%e e9&ert commands genuine res&ect< o =%e e9&ert is found to be consulted by &eo&le in t%e organi5ation, w%en some &roblem arises< o =%e e9&ert &ossess self confidence and %e;s%e %as a realistic .iew of t%e limitations< o =%e e9&ert a.oids irrele.ant information, uses facts and figures< o =%e e9&ert is able to e9&lain &ro&erly and %e;s%e can customi5e %is;%er &resentation according to t%e le.el of t%e audience< o =%e e9&ert e9%ibits %is;%er de&t% of t%e detailed knowledge and %is;%er Fuality of e9&lanation is e9ce&tional< o =%e e9&ert is not arrogant regarding %is;%er &ersonal information< 19&ertAs Fualifications o =%e e9&ert s%ould know w%en to follow %unc%es, and w%en to make e9ce&tions< o =%e e9&ert s%ould be able to see t%e big &icture< o =%e e9&ert s%ould &osses good communication skills< o =%e e9&ert s%ould be able to tolerate stress< o =%e e9&ert s%ould be able to t%ink creati.ely< o =%e e9&ert s%ould be able to e9%ibit self(confidence in %is;%er t%oug%t and actions< o =%e e9&ert s%ould maintain credibility< o =%e e9&ert s%ould o&erate wit%in a sc%ema(dri.en;structured orientation< o =%e e9&ert s%ould use c%unked knowledge< o =%e e9&ert s%ould be able to generate ent%usiasm as well as moti.ation< o =%e e9&ert s%ould s%are %is;%er e9&ertise willingly and wit%out %esitation< o =%e e9&ert s%ould emulate an ideal teac%erOs %abits< J 19&erts le.els of e9&ertise@ o 0ig%ly e9&ert &ersons< o Moderately e9&ert &roblem sol.ers< o New e9&erts< J a&turing single .s< multi&le e9&ertsO tacit knowledge@ o 3d.antages of working wit% a single e9&ert@ Ideal for building a sim&le KM system wit% only few rules< Ideal w%en t%e &roblem lies wit%in a restricted domain< =%e single e9&ert can facilitate t%e logistics as&ects of coordination arrangements for knowledge ca&ture< 7roblem related;&ersonal conflicts are easier to resol.e< =%e single e9&ert tends to s%are more confidentiality< N o&yrig%t >irtual :ni.ersity of 7akistan 182Knowledge Management EM!M=(/#0 >: o Disad.antages of working wit% a single e9&ert@ 4ften, t%e e9&erts knowledge is found to be not easy to ca&ture< =%e single e9&ert usually &ro.ides a single line of reasoning< =%ey are more likely to c%ange meeting sc%edules< =%e knowledge is often found to be dis&ersed< o 3d.antages of working wit% multi&le BteamC e9&erts@ om&le9 &roblem domains are usually benefited< +timulates interaction< -istening to a multitude of .iews allows t%e de.elo&er to consider alternati.e ways of re&resenting knowledge< $ormal meetings are sometimes better en.ironment for generating t%oug%tful contributions< o Disad.antages of working wit% multi&le BteamC e9&erts@ Disagreements can freFuently occur< oordinating meeting sc%edules are more com&licated< 0arder to retain confidentiality< 4.erla&&ing mental &rocesses of multi&le e9&erts can result in a &rocess loss< 4ften reFuires more t%an one knowledge de.elo&er< De.elo&ing Relations%i& wit% 19&erts J reating t%e rig%t im&ression@ =%e knowledge de.elo&er must learn to use &syc%ology, common sense, tec%nical as well as marketing skills to attract t%e e9&erts res&ect and attention< J :nderstanding of t%e e9&ertOs style of e9&ression@ J 19&erts are usually found to use one of t%e following styles of e9&ression@ o 7rocedure ty&e@ =%ese ty&e of e9&erts are found to be logical, .erbal and always &rocedural< o +toryteller ty&e@ =%ese ty&e of e9&erts are found to be focused on t%e content of t%e domain at t%e e9&ense of t%e solution< o !odfat%er ty&e@ =%ese ty&e of e9&erts are found to be com&ulsi.e to take o.er< o +ales&erson ty&e@ =%ese ty&e of e9&erts are found to s&end most of t%e time dancing around t%e to&ic, e9&laining w%y %is;%er solution is t%e best< J 7re&aration for t%e session@ o )efore making t%e first a&&ointment, t%e knowledge de.elo&er must acFuire some knowledge about t%e &roblem and t%e e9&ert< o Initial sessions can be most c%allenging;critical< o =%e knowledge de.elo&er must build t%e trust< o =%e knowledge de.elo&er must be familiar wit% &roKect terminology d %e;s%e must re.iew t%e e9isting documents< o =%e knowledge de.elo&er s%ould be able to make a Fuick ra&&ort wit% t%e e9&ert< J Deciding t%e location for t%e session@ o 7rotocol calls for t%e e9&ert to decide t%e location< o =%e e9&ert is usually more comfortable in %a.ing %is;%er necessary tools and information a.ailable close to %im;%er< o =%e meeting &lace s%ould be Fuiet and free of interru&tions< J 3&&roac%ing multi&le e9&erts@ o Indi.idual a&&roac%@ =%e knowledge de.elo&er %olds sessions wit% one e9&ert at a time< o 3&&roac% using &rimary and secondary e9&erts@ =%e knowledge de.elo&er %old sessions wit% t%e senior e9&ert early in t%e knowledge ca&ture &rogram for t%e clarification of t%e &lan< $or a detailed &robing, %e;s%e may ask for ot%er e9&ertsO knowledge< o +mall grou&s a&&roac%@ 19&erts gat%er toget%er in one &lace, discuss t%e &roblem domain, and usually &ro.ide a &ool of information< 19&ertsO res&onses are monitored, and t%e functionality of eac% e9&ert is tested against t%e e9&ertise of t%e ot%ers< =%is a&&roac% reFuires e9&erience in assessing ta&&ed knowledge, as well as cognition skills< =%e knowledge de.elo&er must deal wit% t%e issue of &ower and its effect on e9&ertOs o&inion< Inter.iewing as a =acit Knowledge a&ture =ool J 3d.antages of using inter.iewing as a tacit knowledge ca&ture tool@ N o&yrig%t >irtual :ni.ersity of 7akistan 188Knowledge Management EM!M=(/#0 >: o It is a fle9ible tool< o It is e9cellent for e.aluating t%e .alidity of information< o It is .ery effecti.e in case of eliciting information regarding com&le9 matters< o 4ften &eo&le enKoy being inter.iewed< J Inter.iews can range from t%e %ig%ly unstructured ty&e to %ig%ly structured ty&e< o =%e unstructured ty&es are difficult to conduct, and t%ey are used in t%e case w%en t%e knowledge de.elo&er really needs to e9&lore an issue< o =%e structured ty&es are found to be goal(oriented, and t%ey are used in t%e case w%en t%e knowledge de.elo&er needs s&ecific information< o +tructured Fuestions can be of t%e following ty&es@ Multi&le(c%oice Fuestions< Dic%otomous Fuestions< Ranking scale Fuestions< o In semi structured ty&es, t%e knowledge de.elo&er asks &redefined Fuestions, but %e;s%e allows t%e e9&ert some freedom in e9&ressing %is;%er answer< J !uidelines for successful inter.iewing@ o +etting t%e stage and establis%ing ra&&ort< o 7%rasing Fuestions< o -istening closely;a.oiding arguments< o 1.aluating t%e session outcomes< J Reliability of t%e information gat%ered from e9&erts@ o +ome uncontrolled sources of error t%at can reduce t%e informationOs reliability@ o 19&ertOs &erce&tual slant< o =%e failure in e9&ertOs &art to e9actly remember w%at %as %a&&ened< o $ear of unknown in t%e &art of e9&ert< o 7roblems wit% communication< o Role bias< J 1rrors in &art of t%e knowledge de.elo&er@ .alidity &roblems are often caused by t%e inter.iewer effect Bsomet%ing about t%e knowledge de.elo&er colors t%e res&onse of t%e e9&ertC< +ome of t%e effects can be as follows@ o !ender effect o 3ge effect o Race effect J 7roblems encountered during inter.iewing o Res&onse bias< o Inconsistency< o 7roblem wit% communication< o 0ostile attitude< o +tandardi5ing t%e Fuestions< o +etting t%e lengt% of t%e inter.iew< J 7rocess of ending t%e inter.iew@ o =%e end of t%e session s%ould be carefully &lanned< o 4ne &rocedure calls for t%e knowledge de.elo&er to %alt t%e Fuestioning a few minutes before t%e sc%eduled ending time, and to summari5e t%e key &oints of t%e session< o =%is allows t%e e9&ert to comment a sc%edule a future session< o Many .erbal;non.erbal cues can be used for ending t%e inter.iew< Brefer to =able *<2, in &age 1'2 of your te9tbookC< J Issues@ Many issues may arise during t%e inter.iew, and to be &re&ared for t%e most im&ortant ones, t%e knowledge de.elo&er can consider t%e following Fuestions@ o 0ow would it be &ossible to elicit knowledge from t%e e9&erts w%o can not say w%at t%ey mean or can not mean w%at t%ey say< o 0ow to set u& t%e &roblem domain< o 0ow to deal wit% uncertain reasoning &rocesses< o 0ow to deal wit% t%e situation of difficult relations%i&s wit% e9&ertBsC< o 0ow to deal wit% t%e situation w%en t%e e9&ert does not like t%e knowledge de.elo&er for some reason< J Ra&id 7rototy&ing in inter.iews@ o Ra&id &rototy&ing is an a&&roac% to building KM systems, in w%ic% knowledge is added wit% eac% knowledge ca&ture session< N o&yrig%t >irtual :ni.ersity of 7akistan 200Knowledge Management EM!M=(/#0 >: o =%is is an iterati.e a&&roac% w%ic% allows t%e e9&ert to .erify t%e rules as t%ey are built during t%e session< o =%is a&&roac% can o&en u& communication t%roug% its demonstration of t%e KM system< o Due to t%e &rocess of instant feedback and modification, it reduces t%e risk of failure< o It allows t%e knowledge de.elo&er to learn eac% time a c%ange is incor&orated in t%e &rototy&e< o =%is a&&roac% is %ig%ly interacti.e< o =%e &rototy&e can create user e9&ectations w%ic% in turn can become obstacles to furt%er de.elo&ment effort< N o&yrig%t >irtual :ni.ersity of 7akistan 201Knowledge Management EM!M=(/#0 >: -1++4N #2 KN4W-1D!1 1-II=3=I4N@ D3=3 MININ! 3ND KN4W-1D!1 4DI$I3=I4N M1=04D+ 1C w%at are some of t%e &ur&oses for doing a data mining or web mining study? =%ere are two basic &ur&oses@ 1C to describe and 2C to &redict< Descri&ti.e data mining is done to try to understand &atterns in &eo&le of t%ings< $or e9am&le, &urc%asing %abits of &eo&le during su&er bowl week, t%e financial dealings of &eo&le sus&ected of money laundering, t%e incidence of lig%ting in a region wit% s&ecific geological features Be<g<, a mountain lakeC< =%is can ser.e to e9&lain t%e be%a.ior of t%e indi.iduals or &%enomena in.ol.ed< 7redicti.e data mining, on t%e ot%er %and, is done to attem&t to &redict t%e be%a.ior of a &erson or t%ing by looking at its %istory< )y building a model of t%is entity B&erson, system or t%ingC, one can &redict future &erformance and t%ereby better react to future occurrences of t%e &attern soug%t to identify< 4ne e9am&le is to build a model of t%e stock market in order to &redict its future &erformance< Knowledge 1licitation Met%ods 4n(+ite 4bser.ation B3ction 7rotocolC J It is a &rocess w%ic% in.ol.es obser.ing, recording, and inter&reting t%e e9&ertOs &roblem(sol.ing &rocess w%ile it takes &lace< J =%e knowledge de.elo&er does more listening t%an talking6 a.oids gi.ing ad.ice and usually does not &ass %is;%er own Kudgment on w%at is being obser.ed, e.en if it seems incorrect6 and most of all, does not argue wit% t%e e9&ert w%ile t%e e9&ert is &erforming t%e task< J om&ared to t%e &rocess of inter.iewing, on(site obser.ation brings t%e knowledge de.elo&er closer to t%e actual ste&s, tec%niFues, and &rocedures used by t%e e9&ert< J 4ne disad.antage is t%at sometimes some e9&erts to not like t%e idea of being obser.ed< J =%e reaction of ot%er &eo&le Bin t%e obser.ation settingC can also be a &roblem causing distraction< J 3not%er disad.antage is t%e accuracy;com&leteness of t%e ca&tured knowledge< )rainstorming J It is an unstructured a&&roac% towards generating ideas about creati.e solution of a &roblem w%ic% in.ol.es multi&le e9&erts in a session< J In t%is case, Fuestions can be raised for clarification, but no e.aluations are done at t%e s&ot< J +imilarities Bt%at emerge t%roug% o&inionsC are usually grou&ed toget%er logically and e.aluated by asking some Fuestions like@ o W%at benefits are to be gained if a &articular idea is followed< o W%at s&ecific &roblems t%at idea can &ossibly sol.e< o W%at new &roblems can arise t%roug% t%is< =%e general &rocedure for conducting a brainstorming session@ o Introducing t%e session< o 7resenting t%e &roblem to t%e e9&erts< o 7rom&ting t%e e9&erts to generate ideas< o -ooking for signs of &ossible con.ergence< J If t%e e9&erts are unable to agree on a s&ecific solution, t%ey knowledge de.elo&er may call for a .ote;consensus< 1lectronic )rainstorming J It is a com&uter(aided a&&roac% for dealing wit% multi&le e9&erts< J It usually begins wit% a &re(session &lan w%ic% identifies obKecti.es and structures t%e agenda, w%ic% is t%en &resented to t%e e9&erts for a&&ro.al< J During t%e session, eac% e9&ert sits on a 7 and get t%emsel.es engaged in a &redefined a&&roac% towards resol.ing an issue, and t%en generates ideas< N o&yrig%t >irtual :ni.ersity of 7akistan 202Knowledge Management EM!M=(/#0 >: J =%is allows e9&erts to &resent t%eir o&inions t%roug% t%eir 7Os wit%out %a.ing to wait for t%eir turn< J :sually t%e comments;suggestions are dis&layed electronically on a large screen wit%out identifying t%e source< J =%is a&&roac% &rotects t%e intro.ert e9&erts and &re.ents tagging comments to indi.iduals< J =%e benefit includes im&ro.ed communication, effecti.e discussion regarding sensiti.e issues, and closes t%e meeting wit% concise recommendations for necessary action Brefer to $igure *<1 for t%e seFuence of ste&sC< J =%is e.entually leads to con.ergence of ideas and %el&s to set final s&ecifications< J =%e result is usually t%e Koint owners%i& of t%e solution< Nominal !rou& =ec%niFue BN!=C J =%is &ro.ides an interface between consensus and brainstorming< J 0ere t%e &anel of e9&erts becomes a Nominal !rou& w%ose meetings are structured in order to effecti.ely &ool indi.idual Kudgment< J Idea writing is a structured grou& a&&roac% used for de.elo&ing ideas as well as e9&loring t%eir meaning and t%e net result is usually a written re&ort< J N!= is an idea writing tec%niFue< Del&%i Met%od J It is a sur.ey of e9&erts w%ere a series of Fuestionnaires are used to &ool t%e e9&ertsO res&onses for sol.ing a s&ecific &roblem< J 1ac% e9&ertsO contributions are s%ared wit% t%e rest of t%e e9&erts by using t%e results from eac% Fuestionnaire to construct t%e ne9t Fuestionnaire< once&t Ma&&ing J It is a network of conce&ts consisting of nodes and links< J 3 node re&resents a conce&t, and a link re&resents t%e relations%i& between conce&ts Brefer to $igure /<* in &age 1"2 of your te9tbookC< J once&t ma&&ing is designed to transform new conce&ts;&ro&ositions into t%e e9isting cogniti.e structures related to knowledge ca&ture< J It is a structured conce&tuali5ation< J It is an effecti.e way for a grou& to function wit%out losing t%eir indi.iduality< J once&t ma&&ing can be done for se.eral reasons@ o =o design com&le9 structures< o =o generate ideas< o =o communicate ideas< o =o diagnose misunderstanding< J +i9(ste& &rocedure for using a conce&t ma& as a tool@ o 7re&aration< o Idea generation< o +tatement structuring< o Re&resentation< o Inter&retation o :tili5ation< J +imilar to conce&t ma&&ing, a semantic net is a collection of nodes linked toget%er to form a net< o 3 knowledge de.elo&er can gra&%ically re&resent descri&ti.e;declarati.e knowledge t%roug% a net< o 1ac% idea of interest is usually re&resented by a node linked by lines Bcalled arcsC w%ic% s%ows relations%i&s between nodes< o $undamentally it is a network of conce&ts and relations%i&s Brefer to &age 1"# of your te9tbook for e9am&leC< )lack boarding N o&yrig%t >irtual :ni.ersity of 7akistan 20#Knowledge Management EM!M=(/#0 >: J In t%is case, t%e e9&erts work toget%er to sol.e a s&ecific &roblem using t%e blackboard as t%eir works&ace< J 1ac% e9&ert gets eFual o&&ortunity to contribute to t%e solution .ia t%e blackboard< J It is assumed t%at all &artici&ants are e9&erts, but t%ey mig%t %a.e acFuired t%eir indi.idual e9&ertise in situations different from t%ose of t%e ot%er e9&erts in t%e grou&< J =%e &rocess of black boarding continues till t%e solution %as been reac%ed< J %aracteristics of blackboard system@ o Di.erse a&&roac%es to &roblem(sol.ing< o ommon language for interaction< o 1fficient storage of information o $le9ible re&resentation of information< o Iterati.e a&&roac% to &roblem(sol.ing< o 4rgani5ed &artici&ation< J om&onents of blackboard system@ o =%e Knowledge +ource BK+C@ 1ac% K+ is an inde&endent e9&ert obser.ing t%e status of t%e blackboard and trying to contribute a %ig%er le.el &artial solution based on t%e knowledge it %as and %ow well suc% knowledge a&&lies to t%e current blackboard state< o =%e )lackboard @ It is a global memory structure, a database, or a re&ository t%at can store all &artial solutions and ot%er necessary data t%at are &resently in .arious stages of com&letion< o 3 ontrol Mec%anism@ It coordinates t%e &attern and flow of t%e &roblem solution< J =%e inference engine and t%e knowledge base are &art of t%e blackboard system< J =%is a&&roac% is useful in case of situations in.ol.ing multi&le e9&ertise, di.erse knowledge re&resentations, or situations in.ol.ing uncertain knowledge re&resentation< Knowledge a&ture +ystems@ +ystems t%at 7reser.e and $ormali5e Knowledge 1< W%at are t%e met%ods for eliciting stories? +tories may be elicited t%roug% ant%ro&ological obser.ation, w%ic% is using a naa.e but interested inter.iewer< =%e inter.iewerAs naa.etT will facilitate t%e natural .olunteering of stories by t%e knowledgeable &otential storyteller< =%e interest or curiosity of t%e inter.iewer will increase storytellersA sense of im&ortance and will result in %ig%er le.els of story .olunteering< :sing a grou& t%at %as a common conte9t suc% as a community of &ractice to form storytelling circles is anot%er ste& towards anecdote elicitation< 4t%er met%ods useful in storytelling circles are@ fis% tales since indi.iduals enKoy en%ancing &re.iously s%ared stories, alternati.e %istories, s%ifting c%aracters or conte9t to gain different &ers&ecti.es on a story, and indirect stories to foster a feeling of security and &ri.acy< $inally, t%e use of meta&%ors to start a story telling &rocess &ro.ides a common conte9t or reference for t%e grou&< 2< Describe %ow conce&t ma&s re&resent knowledge< once&t ma&s aim to re&resent knowledge t%roug% conce&ts or main subKects;ideas t%at are re&resented as te9t inside of some ty&e of geometric s%a&e, usually a rectangle or circle< =%e conce&ts are &atterns or regularities in obKects or e.ents< Different conce&ts are related to eac% ot%er and t%is is re&resented by connecting two of t%e geometric s%a&es containing t%e related conce&ts .ia a line, w%ic% re&resents a &ro&osition< =%e &ro&ositions are labeled, usually wit% a .erb &%rase or &re&osition t%at indicates t%e nature of t%e relations%i& between t%e two conce&ts< =%e more general conce&ts a&&ear at t%e to& of t%e ma&, wit% s&eciali5ation &rogressing towards t%e bottom of t%e ma&< Inter(domain relations between conce&ts can be re&resented by a line called a cross(link< #< W%at are t%e organi5ational situations t%at conte9t(based reasoning is designed to model and w%at are t%e basic tenets of conte9t(based reasoning? 9)R models tactical situations and t%e o&erations needed to be &erformed during s&ecial tactical situations< 9)R is based on t%e following t%ree tenets@ N o&yrig%t >irtual :ni.ersity of 7akistan 20'Knowledge Management EM!M=(/#0 >: 1< =actical situations call for a set of actions and &rocedures t%at address t%e current situation< 2< +ituations are dynamic BsubKect to c%angeC and a transition to a new situational conte9t or set of actions may be reFuired to address t%e new situation< #< W%at is likely to %a&&en in a situation is limited by t%e situation itself< Knowledge odification J Knowledge codification means con.erting tacit knowledge to e9&licit knowledge in a usable form for t%e organi5ational members< J =acit knowledge Be<g<, %uman e9&ertiseC is identified and le.eraged t%roug% a form t%at is able to &roduce %ig%est return for t%e business< J 19&licit knowledge is organi5ed, categori5ed, inde9ed and accessed< J =%e organi5ing often includes decision trees, decision tables etc< J odification must be done in a form;structure w%ic% will e.entually build t%e knowledge base< J =%e resulting knowledge base su&&orts training and decision making< o Diagnosis< o =raining;Instruction< o Inter&retation< o 7rediction< o 7lanning;+c%eduling< J =%e knowledge de.elo&er s%ould note t%e following &oints before initiating knowledge codification@ o Recorded knowledge is often difficult to access Bbecause it is eit%er fragmented or &oorly organi5edC< o Diffusion of new knowledge is too slow< o Knowledge is nor s%ared, but %oarded Bt%is can in.ol.e &olitical im&licationsC< o 4ften knowledge is not found in t%e &ro&er form< o 4ften knowledge is not a.ailable at t%e correct time w%en it is needed< o 4ften knowledge is not &resent in t%e &ro&er location w%ere it s%ould be &resent< o 4ften t%e knowledge is found to be incom&lete< Modes of Knowledge on.ersion J on.ersion from tacit to tacit knowledge &roduces sociali5ation w%ere knowledge de.elo&er looks for e9&erience in case of knowledge ca&ture< J on.ersion from tacit to e9&licit knowledge in.ol.es e9ternali5ing, e9&laining or clarifying tacit knowledge .ia analogies, models, or meta&%ors< J on.ersion from e9&licit to tacit knowledge in.ol.es internali5ing Bor fitting e9&licit knowledge to tacit knowledge< J on.ersion from e9&licit to e9&licit knowledge in.ol.es combining, categori5ing, reorgani5ing or sorting different bodies of e9&licit knowledge to lead to new knowledge< odifying Knowledge J 3n organi5ation must focus on t%e following before codification@ o W%at organi5ational goals will t%e codified knowledge ser.e? o W%at knowledge e9ists in t%e organi5ation t%at can address t%ese goals? o 0ow useful is t%e e9isting knowledge for codification? o 0ow would someone codify knowledge? J odifying tacit knowledge Bin its entiretyC in a knowledge base or re&ository is often difficult because it is usually de.elo&ed and internali5ed in t%e minds of t%e %uman e9&erts o.er a long &eriod of time< odification =ools;7rocedures N o&yrig%t >irtual :ni.ersity of 7akistan 20*Knowledge Management EM!M=(/#0 >: Knowledge Ma&s J Knowledge ma&s originated from t%e belief t%at &eo&le act on t%ings t%at t%ey understand and acce&t< J It indicates t%at self(determined c%ange is sustainable< J Knowledge ma& is a .isual re&resentation of knowledge< J =%ey can re&resent e9&licit;tacit, formal;informal, documented;undocumented, internal;e9ternal knowledge< J It is not a knowledge re&ository< J It is a sort of directory t%at &oints towards &eo&le, documents, and re&ositories< J It may identify strengt%s to e9&loit and missing knowledge ga&s to fill< J Knowledge Ma&&ing is .ery useful w%en it is reFuired to .isuali5e and e9&lore com&le9 systems< J 19am&les of com&le9 systems are ecosystems, t%e internet, telecommunications systems, and customer(su&&lier c%ains in t%e stock market< J Knowledge Ma&&ing is a multi(ste& &rocess< J Key can be e9tracted from database or literature and &laced in tabular form as lists of facts< J =%ese tabled relations%i&s can t%en be connected in networks to form t%e reFuired knowledge ma&s< 3 &o&ular knowledge ma& used in %uman resources is a skills &lanner in w%ic% em&loyees are matc%ed to Kobs< +te&s to build t%e ma&@ J 3 structure of t%e knowledge reFuirements s%ould be de.elo&ed< J Knowledge reFuired of s&ecific Kobs must be defined< J Mou s%ould rate em&loyee &erformance by knowledge com&etency< J Mou s%ould link t%e knowledge ma& to some training &rogram for career de.elo&ment and Kob ad.ancement< Decision =able N o&yrig%t >irtual :ni.ersity of 7akistan 20/Knowledge Management EM!M=(/#0 >: J It is anot%er tec%niFue used for knowledge codification< J It consists of some conditions, rules, and actions< 3 &%one card com&any sends out mont%ly in.oices to &ermanent customers and gi.es t%em discount if &ayments are made wit%in two weeks< =%eir discounting &olicy is as follows@ GIf t%e amount of t%e order of &%one cards is greater t%an P#*, subtract *U of t%e order6 if t%e amount is greater t%an or eFual to P20 and less t%an or eFual to P#*, subtract a 'U discount6 if t%e amount is less t%an P20, do not a&&ly any discount<H We s%all de.elo& a decision table for t%eir discounting decisions, w%ere t%e condition alternati.es are YMesO and YNoO< 4NDI=I4N+ 3ND 3=I4N+ R:-1+ 1 2 # ' 7aid wit%in 2 weeks 4rderbP#* P20c_ 4rderc_P#* 4rdercP20 M M N N M N M N M N N M N ( ( ( *U discount 'U discount No discount R R R R 19am&le@ Decision =able Decision =ree J It is also a knowledge codification tec%niFue< J 3 decision tree is usually a %ierarc%ically arranged semantic network< J 3 decision tree for t%e &%one card com&any discounting &olicy Bas discussed abo.eC is s%own ne9t< $rames J 3 frame is a codification sc%eme used for organi5ing knowledge t%roug% &re.ious e9&erience< N o&yrig%t >irtual :ni.ersity of 7akistan 20"Knowledge Management EM!M=(/#0 >: J It deals wit% a combination of declarati.e and o&erational knowledge< J Key elements of frames@ o +lot@ 3 s&ecific obKect being described;an attribute of an entity< o $acet@ =%e .alue of an obKect;slot< 7roduction Rules J =%ey are conditional statements s&ecifying an action to be taken in case a certain condition is true< J =%ey codify knowledge in t%e form of &remise(action &airs< J +ynta9@ I$ B&remiseC =01N BactionC J 19am&le@ I$ income is YstandardO and &ayment %istory is YgoodO, =01N Ya&&ro.e %ome loanO< J In case of knowledge(based systems, rules are based on %euristics or e9&erimental reasoning< J Rules can incor&orate certain le.els of uncertainty< J 3 certainty factor is synonymous wit% a confidence le.el , w%ic% is a subKecti.e Fuantification of an e9&ertOs Kudgment< J =%e &remise is a )oolean e9&ression t%at s%ould e.aluate to be true for t%e rule to be a&&lied< J =%e action &art of t%e rule is se&arated from t%e &remise by t%e keyword =01N< J =%e action clause consists of a statement or a series of statements se&arated by 3NDOs or commaOs and is e9ecuted if t%e &remise is true< In case of knowledge(based systems, &lanning in.ol.es@ J )reaking t%e entire system into manageable modules< J onsidering &artial solutions and liking t%em t%roug% rules and &rocedures to arri.e at a final solution< J Deciding on t%e &rogramming languageBsC< J Deciding on t%e software &ackageBsC< J =esting and .alidating t%e system< J De.elo&ing t%e user interface< J 7romoting clarity, fle9ibility6 making rules clear< J Reducing unnecessary risk< Role of inferencing@ J Inferencing im&lies t%e &rocess of deri.ing a conclusion based on statements t%at only im&ly t%at conclusion< J 3n inference engine is a &rogram t%at manages t%e inferencing strategies< J Reasoning is t%e &rocess of a&&lying knowledge to arri.e at t%e conclusion< o Reasoning de&ends on &remise as well as on general knowledge< o 7eo&le usually draw informati.e conclusions< ase()ased Reasoning J It is reasoning from rele.ant &ast cases in a way similar to %umanOs use of &ast e9&eriences to arri.e at conclusions< J ase(based reasoning is a tec%niFue t%at records and documents cases and t%en searc%es t%e a&&ro&riate cases to determine t%eir usefulness in sol.ing new cases &resented to t%e e9&ert< J =%e aim is to bring u& t%e most similar %istorical case t%at matc%es t%e &resent case< J 3dding new cases and reclassifying t%e case library usually e9&ands knowledge< J 3 case library may reFuire considerable database storage as well as an efficient retrie.al system< Knowledge()ased 3gents J 3n intelligent agent is a &rogram code w%ic% is ca&able of &erforming autonomous action in a timely fas%ion< J =%ey can e9%ibit goal directed be%a.iour by taking initiati.e< J t%ey can be &rogrammed to interact wit% ot%er agents or %umans by using some agent communication language< N o&yrig%t >irtual :ni.ersity of 7akistan 202Knowledge Management EM!M=(/#0 >: J In terms of knowledge(based systems, an agent can be &rogrammed to learn from t%e user be%a.iour and deduce future be%a.iour for assisting t%e user< Knowledge De.elo&erOs +kill +et Knowledge ReFuirements J om&uting tec%nology and o&erating systems< J Knowledge re&ositories and data mining< J Domain s&ecific knowledge< J ogniti.e &syc%ology< +kills ReFuirements J Inter&ersonal ommunication< J 3bility to articulate t%e &roKectOs rationale< J Ra&id 7rototy&ing skills< J 3ttributes related to &ersonality< J Dob roles< N o&yrig%t >irtual :ni.ersity of 7akistan 208Knowledge Management EM!M=(/#0 >: -1++4N #8 KN4W-1D!1 +03RIN! 3ND =R3N+$1R +M+=1M+ Knowledge +%aring +ystems@ +ystems t%at 4rgani5e and Distribute Knowledge 1< Describe t%e crucial reFuirements for t%e successful im&lementation of knowledge( s%aring systems< a< ollection and systematic organi5ation of information from .arious sources< Most organi5ational business &rocesses reFuire information and data including 3D drawings, e(mails, electronic documents suc% as s&ecifications, and e.en &a&er documents< =%is reFuisite information may be dis&ersed t%roug%out t%e organi5ation< =%is first ste& reFuires t%e collection of t%is information t%roug%out t%e organi5ation< b< Minimi5ation of u&(front knowledge engineering< Knowledge(s%aring systems must take ad.antage of e9&licit organi5ational information and data, suc% t%at t%ese systems can be built Fuickly, generate returns on in.estment, and be able to ada&t to new reFuirements< =%is information and data is mostly found in databases and documents< c< 19&loiting user feedback for maintenance and e.olution< Knowledge(s%aring systems s%ould concentrate on ca&turing t%e knowledge of t%e organi5ationAs members< =%is includes o&tions for maintenance and user feedback so t%e knowledge can be ke&t fres% and rele.ant< $urt%ermore, knowledge( s%aring systems s%ould be designed to su&&ort userAs needs and t%eir business &rocess workflows< d< Integration into e9isting en.ironment< Knowledge(s%aring systems must be integrated into an organi5ationAs information flow, by integrating wit% t%e I= tools currently used to &erform t%e business tasks< 0umans, by nature, will tend to a.oid efforts to formali5e knowledge Be.er met a com&uter &rogrammer t%at enKoys commenting %er code?C< In fact, as a rule of t%umb, if t%e effort reFuired in formali5ing knowledge is too %ig%, it s%ould be left informal, to be described by %umans, and not attem&t to be made e9&licit< $or instance, consider t%e &ossibility of ca&turing t%e G%owEtoH knowledge, of %ow to ride a bicycle< learly an understanding of t%e laws of &%ysics can %el& e9&lain w%y a &erson stays on t%e bicycle w%ile itAs mo.ing, but few of us recall t%ese laws w%ile we ride< 4t%er t%an t%e &ro.erbial Gkee& your feet on t%e &edal,H w%ic% doesnAt e9&licate muc% about t%e riding &rocess, most of us learned to ride a bicycle t%roug% %ours of &ractice, and many falls, w%ile we were kids< It would be im&ractical to try to codify t%is knowledge and make it e9&licit< 4n t%e ot%er %and, it mig%t be useful to know w%oAs a good bicycle rider, in &articular if one is looking to &ut toget%er a cycling team< e< 3cti.e &resentation of rele.ant information< $inally, t%e goal of an acti.e knowledge(s%aring system is to &resent its users wit% t%e reFuired information w%en and w%ere.er itAs needed< =%ese systems are en.isioned to become intelligent assistants, automatically eliciting and &ro.iding knowledge t%at may be useful in sol.ing t%e current task, w%ene.er and w%ere.er itAs needed< 2< Discuss w%ic% t%e different ty&es of knowledge(s%aring systems are< a< Incident re&ort databases@ used to disseminate information related to incidents or malfunctions, for e9am&le, of field eFui&ment Blike sensing eFui&ment outagesC or software Blike bug re&ortsC< Incident re&orts ty&ically describe t%e incident toget%er wit% e9&lanations of t%e incident, alt%oug% t%ey may not suggest any recommendations< b< 3lert systems@ were originally intended to disseminate information about a negati.e e9&erience t%at %as occurred or is e9&ected to occur< 0owe.er, recent a&&lications also include increasing e9&osure to &ositi.e e9&eriences< c< )est &ractices databases@ describe successful efforts, ty&ically from t%e reengineering of business &rocesses t%at could be a&&licable to organi5ational &rocesses< )est &ractices differ from lessons learned in t%at t%ey ca&ture only successful e.ents, w%ic% may not be deri.ed from e9&erience< d< -essons learned systems B--+C@ t%e goal of --+ is Gto ca&ture and &ro.ide lessons t%at can benefit em&loyees w%o encounter situations t%at closely resemble a &re.ious e9&erience in a similar situation< --+ could be &ure re&ositories of lessons or sometimes intermi9ed wit% ot%er sources of information Be<g<, re&ortsC< N o&yrig%t >irtual :ni.ersity of 7akistan 210Knowledge Management EM!M=(/#0 >: e< 19&ertise -ocator +ystems B1-+C@ ser.e t%e &ur&ose to identify e9&erts in t%e organi5ation< 19&erts may need to be identified to %el& sol.e tec%nical &roblems or staff &roKect teams, to matc% em&loyee com&etencies wit% &ositions wit%in t%e com&any, or to &erform ga& analysis t%at &oint to intellectual ca&ital inadeFuacies wit%in t%e organi5ation< =%e intent of t%ese systems is to catalog knowledge com&etencies, including information not ty&ically ca&tured by %uman resources systems, in a way t%at could later be Fueried across t%e organi5ation< N o&yrig%t >irtual :ni.ersity of 7akistan 211Knowledge Management EM!M=(/#0 >: -1++4N '0 4R74R3=1 M1M4RM6 =M71+ 4$ KN4W-1D!1 R174+I=4RI1+ )riefly define cor&orate memory and %ow KM is related to cor&orate memory< or&orate memory is t%e collection of all e9&licit and tacit knowledge t%at may or may not be e9&licitly documented, but is s&ecifically referenced< or&orate memory is crucial to t%e o&eration and com&etiti.e ad.antage of an organi5ation< 3 focus of KM is t%e de.elo&ment of mec%anisms and tec%nologies t%at &re.ent cor&orate memory loss t%roug% knowledge s%aring mec%anisms, tec%nologies, and a&&lied systems< +uc% loss may result from t%e lack of a&&ro&riate tec%nologies for t%e organi5ation and e9c%ange of e9&licit information and a lack of su&&ort for communication< #< 19&lain t%e lessons learned &rocess< 1C ollect t%e lessons@ =%is task in.ol.es collecting t%e lessons Bor contentC t%at will be incor&orated into t%e --+< =%ere are si9 &ossible lesson content collection met%ods@ aC 7assi.e ( t%e most common form of collection< ontributors submit lessons t%roug% a &a&er or Web(based form< bC Reacti.e ( w%ere contributors are inter.iewed by a t%ird &arty for lessons< =%e t%ird &arty will submit t%e lesson on be%alf of t%e contributor< cC 3fter(action collection ( w%ere lessons are collected during a mission debriefing, as for e9am&le, in military organi5ations< dC 7roacti.e collection ( w%ere lessons are automatically collected by an e9&ert system, w%ic% may suggest t%at a lesson e9ists based on analysis of a s&ecific content< $or e9am&le, an e9&ert system could monitor indi.idualAs e(mail and &rom&t %im;%er w%en it understands t%at a lesson is described< eC 3cti.e collection ( w%ere a com&uter(based system may scan documents to identify lessons in t%e &resence of s&ecific keywords or &%rases, fC Interacti.e collection E w%ere a com&uter(based system collaborates wit% t%e lessonAs aut%or to generate clear and rele.ant lessons< 2C >erify t%e lessons@ =y&ically a team of domain e9&erts &erforms t%e task reFuired by t%is com&onent, w%ic% reFuires t%e .erification of lessons for correctness, redundancy, consistency, and rele.ance< =%e .erification task is critically im&ortant, but sometimes introduces a significant bottleneck in t%e inclusion of lessons into t%e --+, since itAs a time(consuming &rocess< +ome systems, like for e9am&le Rero9As 1ureka --+, &ro.ide a two(staging &rocess< #C +tore t%e -esson@ =%is task relates to t%e re&resentation of t%e lessons in a com&uter( based system< =y&ical ste&s in t%is task include t%e inde9ing of lessons, formatting, and incor&orating into t%e re&ository< In terms of t%e tec%nology reFuired to su&&ort t%is task, --+ could be based on structured relational or obKect(oriented databases as well as case libraries Bcase(based reasoningC or semi(structured document management systems< --+ can also incor&orate rele.ant multimedia suc% as audio and .ideo, w%ic% may %el& illustrate im&ortant lessons< 'C Disseminate t%e -esson@ =%is task relates to %ow t%e information is s%ared to &romote its reuse< +i9 different dissemination met%ods %a.e been identified@ aC 7assi.e dissemination (( w%ere users look for lessons using a searc% engine< bC 3cti.e casting E w%ere lessons are transmitted to users t%at %a.e s&ecified rele.ant &rofiles to t%at &articular lesson< cC )roadcasting E w%ere lessons are disseminated t%roug%out an organi5ation< dC 3cti.e dissemination E w%ere users are alerted to rele.ant lessons in t%e conte9t of t%eir work Bfor e9am&le by a software %el&(wi5ard t%at alerts a user of related automated assistanceC< N o&yrig%t >irtual :ni.ersity of 7akistan 212Knowledge Management EM!M=(/#0 >: eC 7roacti.e dissemination E w%ere a system antici&ates e.ents used to &redict w%en t%e user will reFuire t%e assistance &ro.ided by t%e lesson< fC Reacti.e dissemination E w%en a user launc%es t%e --+ in res&onse to a knowledge need, for e9am&le w%en %e launc%es a 0el& system in t%e conte9t of s&ecific software< *C 3&&ly t%e -esson@ =%is task relates to w%et%er t%e user %as t%e ability to decide %ow to reuse t%e lesson< =%ere are t%ree categories of reuse@ aC )rowsable E w%ere t%e system dis&lays a list of lessons t%at matc% t%e searc% criteria< bC 19ecutable E w%ere users mig%t %a.e t%e o&tion to e9ecute t%e lessonAs recommendation Blike w%en t%e Word &rocessor suggests a s&ecific s&elling for a wordC< cC 4utcome reuse E w%en t%e system &rom&ts users to enter t%e outcome of reusing a lesson, in order to assess if t%e lesson can be re&licated< '< 19&lain t%e role t%at ta9onomies &lay in knowledge(s%aring systems< =a9onomies, also called classification or categori5ation sc%emes, are considered to be knowledge organi5ation systems t%at ser.e to grou& obKects toget%er based on a &articular c%aracteristic< Knowledge ta9onomies are used to organi5e knowledge Bor com&etenciesC rele.ant to t%e organi5ation< In t%e case of 1-+, t%e knowledge ta9onomy is used to describe t%e organi5ationAs critical knowledge areas used to inde9 &eo&leOs knowledge< *< 19&lain t%e differentiating c%aracteristics of t%e 1-+ de.elo&ed at 07, N+3, and Microsoft< =%e following table summari5es t%e differentiating c%aracteristics for t%e 1-+ de.elo&ed at t%e t%ree organi5ations@ 1-+ Name 4NN1R B07C K+M+ BN+3C +7uD BMicrosoftC 7ur&ose of t%e system =o s%are knowledge, for consulting and to searc% for e9&erts =o staff &roKects and matc% &ositions wit% skills =o com&ile t%e knowledge and com&etency of eac% em&loyee +elf(3ssessment Mes Mes, su&er.isors also &artici&ate in data gat%ering No, su&er.isors rate em&loyeeOs &erformance 7artici&ation 4nly t%ose w%o are willing to s%are W%ole &ersonnel W%ole &ersonnel in t%e I= grou& Knowledge =a9onomy :+ -ibrary of ongress IN+71 Inde9 4wn De&artment of -abor B4dN1=C 4wn -e.els of om&etencies No Mes Mes Data Maintenance :ser BnaggingC :ser and +u&er.isor +u&er.isor om&any ulture +%aring, 4&en =ec%nology, 19&ertise =ec%nology, 4&en 7latform 07(8000 :ni9 +ybase >erity 4+;2, >M+, and 7rogramming )ourne s%ell +I- M+ 3ccess /< Discuss t%e role t%at communities of &ractice &lay in s%aring tacit knowledge< 3 community of &ractice, also known as a knowledge network, is an organic and self(organi5ed grou& of indi.iduals w%o are dis&ersed geogra&%ically or organi5ationally but communicate regularly to discuss issues of mutual interest< ommunities of &ractice are su&&orted t%roug% tec%nology t%at enables interaction and con.ersations amongst its members< N o&yrig%t >irtual :ni.ersity of 7akistan 21#Knowledge Management EM!M=(/#0 >: 3&&lication 19ercises 1< Identify e9am&les of knowledge(s%aring systems in use in your organi5ation< W%at are some of t%e intelligent tec%nologies t%at enable t%ose systems? 3 consulting organi5ation utili5es se.eral knowledge(s%aring systems bot% for t%e ability of data contribution as well as for researc% initiati.es< +ome of t%e knowledge(s%aring systems in use in most consultancies include@ best &ractice databases, lessons learned systems, and e9&ertise locators< Moreo.er, additional searc%able re&ositories may e9ist w%ic% facilitate t%e s%aring of information by market unit Bgo.ernment, financial, &roducts, etc<C, descri&tion of tec%nologies im&lemented at t%e client, and document ty&e B&ro&osals, design documents, etc<C< 3ll of t%ese knowledge(s%aring systems can be easily accessed from a centrali5ed Web &ortal< W%en users reFuest information from t%e &ortal .ia a Fuery, rele.ant information is retrie.ed from t%e a&&ro&riate re&ository< +ome of t%e information tec%nologies t%at enable t%ese systems are 3+7, 0=M-, >isual )asic, and +I- +er.er< Intelligent tec%nologies include t%e functionality &ro.ided by t%e searc% engine< 2< Design a knowledge(s%aring system to su&&ort your business needs< 3 lessons learned system s&ecific to a client, but not s&ecific to a &roKect would be useful< In ot%er words, multi&le &roKects s%ould be able to access, retrie.e, and enter t%eir lessons learned e9&eriences< Maintaining lessons s&ecific to a client would ensure a similar conte9t Bor cor&orate cultureC for all t%e &roKects< 3 lesson learned system will enable current and future &roKects to researc% and;or identify e9&eriences gained during a &roKectAs lifecycle< =%e system can contain &ositi.e &roKect e9&eriences, issues encountered as well as t%eir res&ecti.e resolutions, and finally documentation t%at may accom&any t%ese e9&eriences< #< Describe t%e non(tec%nical issues t%at you will face during t%e im&lementation of t%e system designed in t%e &re.ious Fuestion< :sers will be e9&ected to access t%e system w%en t%ey need to find a similar lesson, as well as contributing lessons to t%e system< 4ne of t%e biggest %urdles will be t%at em&loyees may be too busy to eit%er contribute or use t%e system< In addition, w%at kind of rewards will be &ut in &lace so t%at em&loyees find it wort%w%ile to s%are t%eir knowledge t%roug% t%e lessons learned system? W%at is a document management system? 0ow does it su&&ort knowledge s%aring? Document management systems are com&osed of two &ieces@ a re&ository of documents and tec%nology su&&ort for classifying, organi5ing, storing, and retrie.ing documents< =%e re&ository itself may be centrali5ed or distributed and access &oints into t%e re&ositories are normally distributed< Most document management systems &ro.ide a knowledge &ortal t%at is a common, yet customi5able, &latform inde&endent interface to distributed re&ositories< =%e common interface and su&&ort for finding information t%roug% document classification and organi5ation and su&&ort for retrie.al make finding information and getting information easier for indi.iduals wit%in t%e organi5ation< W%at are t%e barriers to use of knowledge s%aring systems? 3 business culture may e9ist in w%ic% an organi5ational unit considers information from outside t%e unit as wort%less< =y&ically t%is culture discourages knowledge consumers from &artici&ating in t%e knowledge market and organi5ational rewards are tied to creating knowledge Be.en w%en unnecessaryC and not to s%aring or knowledge re(use< 3dditionally, t%ose organi5ations t%at se&arate knowledge from t%e knowledge owners;&roducers tends to discourage knowledge owners from .olunteering knowledge to be s%ared< 4n t%e %uman side, knowledge s%aring was anat%ema to traditional %ierarc%ical organi5ations w%ere knowledge was eFuated to &ower %ence em&loyees need to be &ro&erly moti.ated to engage in knowledge s%aring initiati.es< Wit%out &ro&er management su&&ort and moti.ation to s%are, knowledge s%aring is not likely to occur< N o&yrig%t >irtual :ni.ersity of 7akistan 21'Knowledge Management EM!M=(/#0 >: W%at are t%e fi.e s&ecific ty&es of knowledge s%aring systems? !i.e a brief descri&tion of %ow eac% is meant to facilitate knowledge s%aring< 1< Incident re&ort databases record and disseminate information related to eit%er incidents or malfunctions< 2< 3lert systems disseminate information regarding eit%er negati.e or &ositi.e e9&eriences< #< )est &ractices databases describe successful BwinningC efforts, ty&ically regarding business &rocess reengineering< '< -essons learned systems ca&ture and disseminate lessons t%at benefit users t%at encounter similar situations< *< 19&ertise locator systems catalogue knowledge com&etencies< N o&yrig%t >irtual :ni.ersity of 7akistan 21*Knowledge Management EM!M=(/#0 >: -1++4N '1 KN4W-1D!1 +03RIN! +=R:=:R1 3ND +1R>I1+, :-=:R1 3ND KN4W-1D!1 4MM:NI=I1+ 1lectronic =ools for Knowledge Management Identifying, nurturing, and %ar.esting knowledge is a &rinci&al concern in t%e Information 3ge< 1ffecti.e use of knowledge(facilitating tools and tec%niFues is critical, and a number of com&utational tools %a.e been de.elo&ed< W%ile numerous tec%niFues are a.ailable, it remains difficult to analy5e or com&are t%e s&ecific tools< In &art, t%is is because knowledge management is young disci&line< =%e arena is e.ol.ing ra&idly as more &eo&le enter t%e fray and encounter new &roblems< In addition, new tec%nologies su&&ort a&&lications t%at were im&ossible before< Moreo.er, t%e multidisci&linary c%aracter of knowledge management combines se.eral disci&lines, including business and management, com&uter science, cybernetics, and t%e field is freFuently defined so broadly t%at anyt%ing can be incor&orated< $inally, it is difficult to make sense of t%e many tools a.ailable< K++@ Knowledge +tructure and +er.ices =wo dimensions are central to analy5ing and comå knowledge management tools@ knowledge structure and knowledge ser.ice< =%ese two dimensions can be used to from a matri9 in w%ic% s&ecific knowledge management tools are &ositioned< Knowledge +tructure =%ere is a wide range of le.els of formali5ation or structure in t%e ways knowledge is re&resented in knowledge management systems< =%e knowledge forms listed in figure below are not discrete, or e9%austi.e, and ot%er le.els could be added< 19am&les of t%e knowledge forms are@ J reati.e knowledge is intrinsically nonformali5able and may not be re&resent able in any formali5ation< J 3udio and .ideo contain multi&le GstreamsH of knowledge suc% as music, .oices, faces, and obKects< 0umans recogni5e t%ese features but creating mac%ine recognition is an e9tremely com&le9 undertaking< J 3 raw te9t documents is t%e formal eFui.alent of an audio track and is com&arable to natural language t%at is also difficult for mac%ines to understand< N o&yrig%t >irtual :ni.ersity of 7akistan 21/Knowledge Management EM!M=(/#0 >: Dimensions of Knowledge +tructure< $rom to& to bottom we increase t%e formali5ation and &recision of knowledge, w%ile from bottom to to& we accommodate more informality and ambiguity< Knowledge forms toward t%e bottom increasingly demand knowledge engineering and incremental analysis< J In contrast, an 0=M- document wit% marku& tags can dis&lay t%e te9tsA structure< Irregularities in t%e structure can aid in inter&reting t%e content< $or e9am&le, Gwra&&ersH con.ert structural marks into semantic descri&tions and may inter&ret t%e 0=M- marku&s on a country name to dis&lay its &o&ulation, as in t%e &ages of t%e I3 fact book< J +tructured documents using formats like RM- or its ancestor, +!M-, e9&licate t%e semantics im&licit in 0=M- marku&s< $or e9am&le, instead of deducing t%at a certain tag suc% as c01b:+3c;01b indicates t%e G:+3H is t%e name of a country, an RM- document could contain a tag suc% as ccountry nameb:+3c;country nameb t%at makes t%e te9t an e9&licit country name< J RM- documents are linear re&resentations of Gtu&lesH of data, t%e essence of information stored in databases< $or e9am&le, a seFuence of tags can contain a c&o&ulationb tag inside a ccountryb tag to indicate a relations%i& between t%e country and its &o&ulation< =%is facilitates efficient storage and retrie.al of t%e information, but t%e tags are in.isible to users< J ategori5ed information is at roug%ly t%e same le.el as structured information in databases< =a9onomies suc% as t%e ones we use in biology are e9am&les of categori5ed information< =%is kind of knowledge is used e9tensi.ely by directory sites suc% as Ma%ooQ to &ro.ide ta9onomies of conce&ts, ideas, or subKects< J We use t%e term Gformal knowledgeH in t%e mat%ematical sense< -ogical statements suc% as t%eorems and eFuations are used in a .ery rigorous way to make sure all semantics are e9&licit and rules are followed< =%is makes it easy for mac%ines to inter&ret t%is kind of knowledge< =%e le.el of structure in t%e knowledge directly affects t%e amount of automated &rocessing t%at can be &erformed because more structured knowledge em&loys &owerful semantics< 3s a result, it is muc% easier to &rocess t%e information contents of an RM- t%an an 0=M- &age< Managing %ig%ly unstructured knowledge reFuires more structured descri&tions of t%e content, Kust as .ide inde9ing em&loys close(ca&tioned te9t and 0=M- &ages are inde9 by metatags< Most knowledge found on t%e Web falls near t%e to& of t%e scale, and it is no coincidence t%at most knowledge management tools concentrate on t%is range< In addition, semantics and inter&retation of less structured forms of knowledge de&end on conte9tual knowledge< Raw te9t files re&resenting a s&eec% eliminate many of t%e &ossible ambiguities in s&eec% recognition< In t%is case, conte9tual knowledge about t%e subKect, t%e &erson, and t%e &ersonAs .oice are N o&yrig%t >irtual :ni.ersity of 7akistan 21" :nstructured Knowledge Knowledge in &eo&leAs %eads Bim&licit knowledgeC 3udio and >ideo Raw te9t document 0=M- te9t document +tructured te9tual information Be<g<, RM-C +tructured information in databases;tu⩽etc< ategori5ed information Be<g<, ta9onomiesC $ormal knowledge Be<g<, logic(based re&resentationC +tructured KnowledgeKnowledge Management EM!M=(/#0 >: used to GreduceH less structured forms of knowledge to more structured forms< 3fter t%e transformation &rocess, we need less additional conte9tual knowledge to be able to use t%e desired knowledge< Knowledge +er.ices 3not%er useful dimension is t%e range of ser.ices knowledge management tools &ro.ide< )y ser.ices, we mean tasks or acti.ities in %andling knowledge t%at can be at least &artially automated< W%ile not all ser.ices are com&arable, analysis of t%e knowledge ser.ices &ro.ided includes t%ings ranging from e( mail to intranets to data mining and customer relations%i& management< =o make sense of t%ese dis&arate ser.ices, knowledge ser.ices may be di.ided into t%ree main ty&es@ infrastructure ser.ices, core ser.ices, and &ackaged ser.ices build on one anot%er suc% t%at &ackaged ser.ices make use of core ser.ices, w%ic% em&loy infrastructure ser.ices< $or e9am&le, software t%at &ro.ides core ser.ices de&ends u&on infrastructure ser.ices< =%is relations%i& is dis&layed in $igure below< 1ac% main ty&e of ser.ice contains se.eral maKor or ty&ical ser.ices su&&orting knowledge management tools< =%e lists are not e9%austi.e, but rat%er &resent a collection of ty&ical offerings< Infrastructure +er.ices Infrastructure ser.ices are usually needed to im&lement any suc% knowledge management solution< $i.e basic ty&es of infrastructure ser.ices are listed below in $igure< J ommunication ser.ices enable electronic communication between users t%roug% e(mail, file transfer, c%ats, and similar .e%icles< J ollaboration ser.ices allow for grou&s of &eo&le to communicate t%roug% online meetings, s%ared w%iteboards, and discussion grou&s, as well as directory ser.ices< )uildings u&on communication ser.ices, t%ese tools are also known as grou&ware, and t%e best known e9am&le is -otus Notes< J =ranslation ser.ices transform knowledge from one file format to anot%er or from one language to anot%er< J Workflow management ser.ices define workflows and su&&ort online e9ecution and control of workflows< =y&ical a&&lications allow users to e9ecute and enter t%e results of subtasks and .iew t%e status of ot%er subtasks< Workflow management ser.ices build u&on collaboration ser.ices< J Intranets and e9tranets include ot%er infrastructure ser.ices< Intranets are Web(based a&&lications restricted to s&ecific organi5ation w%ile e9tranets connect se.eral organi5ations by &ro.iding access from one organi5ation to anot%erAs content and ser.ices< )ot% intranets and e9tranets e9tend or aggregate ot%er infrastructure ser.ices and add additional ser.ices suc% as user management, &ersonali5ation, and configuration< N o&yrig%t >irtual :ni.ersity of 7akistan 212 MaKor =y&es of +er.ices 7ro.ided by Knowledge Management =ools Infrastructure +er.ices 7ackaged +er.ices ore +er.icesKnowledge Management EM!M=(/#0 >: J Intelligent agents are software com&onents t%at are ca&able of accom&lis%ing tasks on be%alf of a user< =%ey go beyond Ginformation on demandH and make selected decisions based on &redetermined en.ironmental scanning met%ods< =%ey can also summari5e rele.ant data by aggregating and &erforming some synt%esi5ing functions before &resenting it to e9ecuti.e decision makers< ore ser.ices ore ser.ices define knowledge management solutions because t%ey e9&licitly and directly access knowledge re&ositories< $igure 2<' s%ows %ow t%ese core ser.ices are built around core &rocesses of creating, organi5ing, and using a knowledge re&ository< Different core &rocesses in.ol.e &eo&le or systems wit% different roles, including knowledge &roducer, %older, organi5er, and user< Knowledge &roducers create knowledge w%ile knowledge %olders learn from ot%er sources< Knowledge organi5ers work like librarians and allow &roducers to add knowledge in an orderly fas%ion to facilitate retrie.al by users< Knowledge userAs consumer knowledge to e9ecute tasks and &rocesses of t%eir interest< Key features of t%e fi.e core ser.ices include t%e following@ J Knowledge generation ser.ices &roduce knowledge in forms t%at can be stored in t%e knowledge re&ository< :sed by knowledge &roducers, t%ese tools distill, refine, or sim&ly create new knowledge t%at is t%en entered into t%e re&ository< =%ese tools ty&ically in.ol.e some kind of automated N o&yrig%t >irtual :ni.ersity of 7akistan 218 Infrastructure +er.ice ollaboration ommunication =ranslation Workflow Management Intranets;19tranetsKnowledge Management EM!M=(/#0 >: learning and include data mining tec%niFues and &attern recognition< ollaborati.e creation of a document is an e9am&le, and commercial .ersions include Intersca&e<com< J Knowledge ca&ture ser.ices facilitate addition to re&ositories< $or e9am&le, ca&ture tools allow users to enter new documents and may em&loy meta(information for inde9ing &ur&oses< 3 sim&le e9am&le is t%e Gdocument &ro&ertiesH mec%anism of Microsoft Word, w%ic% contains information about t%e document being edited including aut%or, re.ision number, subKect, and date< J Knowledge organi5ation Binde9ingC ser.ices %el& knowledge managers arrange items in a re&ository to facilitate retrie.al and use< =y&ical knowledge organi5ation ser.ices add to or modify knowledge about re&ository inde9es, ta9onomies, and directories< J 3ccess management ser.ices determine w%o can access elements of t%e re&ository< =%ey control access to t%e knowledge re&ository and are usually based on a directory of users< =%ey may restrict w%o %as access by &ermission le.els< J Retrie.al ser.ices include searc%ing and na.igating functions as well as translation, .isuali5ation, and integration< =%ey create .alue by making knowledge a.ailable for s&ecific uses and may &ro.ide &ersonali5ation and configuration ser.ices< 7ackaged +er.ices 7ackaged ser.ices aggregate lower(le.el ser.ices to sol.e s&ecific ty&es of &roblem suc% as customer relations%i& management< Muc% knowledge management literature concentrates on t%ese &ackaged ser.ices< =%is focus is attributable to t%e fact t%at t%ese ty&es of &roblems are clearly connected to end( user needs< $or e9am&le, it is easier for a I4 to Kustify &urc%ase of customer relations%i& tools t%an a searc% engine< =%e literature concentrates on t%ree classes of &ackaged ser.ices< J ustomer Relations%i& Management BRMC ser.ice &ro.ide information about a com&anyAs clients in an integrated way< =%ey ty&ically allow internal c%annels to s%are and add to t%e same central knowledge base< +iebel and 7eo&le(+oft are leading &ro.iders of RM ser.ices< BRM is co.ered in greater de&t% in %a&ter 8<C J )usiness Intelligence ser.ices manage knowledge about com&etitors and &artners< =%ey usually aggregate and &ro.ide unified interfaces to information from news agencies, &ublic and &ri.ate databases, economics and social information, and t%e World Wide Web< =%ey also filter and classify information into categories< J 1nter&rise Information 7ortals are s&eciali5ed gateways &ro.iding access to internal and e9ternal sources of knowledge< =%ey &ro.ide one(sto& access, and ty&ical e9am&les include searc% engines and My Ma%ooQ B%tt&@;;my<ya%oo<comC< =%e Knowledge +tructure and +er.ices BK++C Matri9 and t%e K++ %ecklist N o&yrig%t >irtual :ni.ersity of 7akistan 220 Main =y&es of 7ackaged +er.ices in t%e Market =oday ustomer Relations%i& Management BRMC )usiness Intelligence 1nter&rise Information 7ortal B1I7CKnowledge Management EM!M=(/#0 >: Different tools &ro.ide distinct arrays of ser.ices and manage s&ecific ty&es of knowledge< We .isuali5e relations%i&s between knowledge management tools in terms of t%e ty&es of knowledge t%ey %andle and t%e ty&es of ser.ices t%ey offer< =wo diagrams dis&lay t%ese relations%i&s@ t%e K++ Matri9 and t%e K++ %ecklist< =%ese diagrams &osition t%e kinds of solutions &ro.ided by gi.en &roducts or .endors< 4f course, more com&lete analysis could include additional elements suc% as %ardware and software &latforms, t%e Fuality of its customers su&&ort, and &rice< =%e K++ Matri9 =%e K++ Matri9 assures t%at t%e ty&es of knowledge %andled are intimately connected wit% t%e core ser.ices &ro.ided< =ools may su&&ort different sets of ser.ices for eac% ty&e of knowledge< =%e K++ Matri9 is dis&layed in $igure below< =%e %ori5ontal a9is recogni5es t%e fi.e core knowledge ser.ices w%ile t%e .ertical a9is dis&lays t%e eig%t basic le.els of knowledge structure dimension< 4ne K++ Matri9 is used for eac% tool analy5ed< 3 K++ Matri9 is filled by adding small or large sFuares to eac% of t%e cells< $illing a cell indicates t%at t%e tool &ro.ides a s&ecific ser.ice t%at mani&ulates knowledge wit% a gi.en le.el of structure< =%e si5e of t%e sFuare filling a cell re&resents t%e sco&e of t%e ser.ice offered by t%e tool< 3 large sFuare denotes a maKor offering wit% a com&re%ensi.e set of features, w%ile a small sFuare marks a ser.ice t%at is offered in eit%er a restricted sco&e or restricted functionality< =%e K++ %ecklist =%e K++ %ecklist recogni5es ser.ices beyond t%e core ser.ices< 3 c%ecklist is em&loyed because infrastructure and &ackaged ser.ices are inde&endent of t%e ty&es of knowledge managed< =%e K++ %ecklist, as in following figure , lists t%e fi.e infrastructure ser.ices and t%e t%ree &ackaged ser.ices< =o t%e rig%t, we add sFuares indicating t%at a ser.ice is &ro.ided< 3s wit% t%e K++ Matri9, t%e si5e of t%e sFuare re&resents t%e sco&e of t%e ser.ice offered, wit% a large sFuare indicting maKor offerings and small sFuares re&resenting incom&lete or restricted offerings< N o&yrig%t >irtual :ni.ersity of 7akistan 221 )asic K++ Matri9 to 3naly5e and om&are Different =ool 4fferings Knowledge +tructure $ormal Knowledge ategori5ed information +tructured information +tructured te9t Marked (u& te9t Raw te9t 3udio;>ideo Im&licit knowledge !enerate a&ture Inde9;4rgani5e Manage access :se;Retrie.e ore Knowledge +er.ices )asic K++ %ecklist :sed to 3naly5e and om&are Different =ool 4fferings ommunication ollaboration =ranslation Workflow Management Intelligent 3gents Infrastructure +er.ices 1nter&rise Information 7ortal )usiness Intelligence ustomer Relations%i& Management 7ackaged +er.ices Intranets;19tranetsKnowledge Management EM!M=(/#0 >: =%e K++ Matri9 and t%e K++ %ecklist &ro.ide Fuick assessments of eac% tool and can also be used to com&are tools Fuickly< More im&ortantly, t%e matri9 and c%ecklist can be used to e.aluate knowledge management tools< $illing in t%e diagrams forces users to e9&lore and analy5e tools in detail< 3t t%e same time, t%e K++ framework can be used to select tools for s&ecific uses< +&ecifications can be re&resented as GtargetH diagrams for ideal offerings to be matc%ed wit% t%e ca&abilities of s&ecific tools< :sing t%e K++ Matri9 and %ecklist to om&are urrent Knowledge Management =ools 3s e9am&les, t%is section com&ares fi.e leading knowledge management tools< We selected tools t%at re&resent t%e range of commercial tools and s%ow t%e status of current &ractices< 4ur analysis concentrates on s&ecific tools and does not re&resent t%e set of tools &ro.ided by s&ecific com&anies< =%e fi.e tools we analy5e are Documentum 'i, 4&en=e9t -i.e-ink, 3utonomy Knowledge +er.er, -otus R*, and 7eo&le +oft ustomer Relations%i& Management< Documentum 'i Documentum 'i ' is an integrated software suite t%at ser.es a large s&ectrum of ser.ices and structures< It is centered on document management, and its core strengt%s are in dealing wit% documents< It su&&orts audio;.ideo and ta9onomy, as well as some co.erage of categori5ed information< It does not su&&ort knowledge generation ser.ices or formal knowledge, structured information, or im&licit knowledge< =e ser.ices c%ecklist following $igure s%ows t%at Documentum 'i is intended to be an 1nter&rise Information 7ortal tool, and it su&&orts workflow management and collaboration< 4&en =e9t -i.e -ink 4&en =e9t -i.e-ink* is also an integrated software suite focused on document management< =%e K++ Matri9 below s%ows t%at it &ro.ides a core set of ser.ices to %andle document management and structured information from databases< =%e ser.ices c%ecklist s%ows t%at -i.e -ink is an 1nter&rise Information 7ortal tool and t%at it su&&orts translation and collaboration, including discussion grou&s and grou& sc%eduling< N o&yrig%t >irtual :ni.ersity of 7akistan 222 K++ Matri9 and %ecklist for Documentum 'i ommunication =ranslation ollaboration Intranet;19tranet Workflow Management Infrastructure +er.ices 1nter&rise Information 7ortal )usiness Intelligence ustomer Relations%i& Management 7ackaged +er.ices Knowledge +tructure $ormal Knowledge ategori5ed information +tructured information +tructured te9t Marked (u& te9t Raw te9t 3udio;>ideo Im&licit knowledge !enerate a&ture Inde9;4rgani5e Manage access :se;Retrie.e ore Knowledge +er.ices Knowledge Management EM!M=(/#0 >: 3utonomy Knowledge +er.er 3utonomy Knowledge+er.er / is yet anot%er software suite for content management< In addition, it &ro.ides so&%isticated ser.ices for classifying material based on t%e content of documents< It is uniFue in t%at it co.ers formal knowledge< We can see t%at Knowledge +er.erAs use of learning algorit%ms facilities some knowledge generation ser.ices< Note in following t%at it also %as some translation and collaboration ser.ices but does not incor&orate workflow management< -otus Notes R* -otus Notes R* is .irtually synonymous wit% grou&ware< =%is c%aracteri5es bot% it s strengt%s and weaknesses because R* %andles only unstructured ty&es of knowledge< It su&&orts im&licit knowledge t%roug% use of detailed descri&tions of &eo&leAs information and skills< -otus R* does not attem&t to be a &ackaged ser.ice as defined %ere, because it focuses e9clusi.ely on collaboration< N o&yrig%t >irtual :ni.ersity of 7akistan 22# K++ Matri9 and %ecklist for 4&en =e9t -i.e-ink ommunication =ranslation ollaboration Intranet;19tranet Workflow Management Infrastructure +er.ices 1nter&rise Information 7ortal )usiness Intelligence ustomer Relations%i& Management 7ackaged +er.ices Knowledge +tructure $ormal Knowledge ategori5ed information +tructured information +tructured te9t Marked (u& te9t Raw te9t 3udio;>ideo Im&licit knowledge !enerate a&ture Inde9;4rgani5e Manage access :se;Retrie.e ore Knowledge +er.ices K++ Matri9 and %ecklist for 3utonomy Knowledge +er.er ommunication =ranslation ollaboration Intranet;19tranet Workflow Management Infrastructure +er.ices 1nter&rise Information 7ortal )usiness Intelligence ustomer Relations%i& Management 7ackaged +er.ices Knowledge +tructure $ormal Knowledge ategori5ed information +tructured information +tructured te9t Marked (u& te9t Raw te9t 3udio;>ideo Im&licit knowledge !enerate a&ture Inde9;4rgani5e Manage access :se;Retrie.e ore Knowledge +er.ices Knowledge Management EM!M=(/#0 >: 7eo&le+oft ustomer Relations%i& Management 7eo&le+oft ustomer Relations%i& Managements is ty&ical .ertical solution software t%at s&eciali5es in customer relations%i& management< 7eo&le +oft acFuired t%e &roduct w%en it &urc%ased >anti.e, and its G.erticalH bias determines t%e way it &ro.ides ser.ices all geared toward s&ecific needs o RM &rocesses< W%ile 7eo&le+oft RM su&&orts structured information, it only %andles information about customers< =%is s&eciali5ation makes it a good c%oice for RM, but a &oor c%oice for general knowledge management &roblems< B+ee figure 2<12<C onclusion Modern(day alc%emy is about turning information into knowledge< W%ereas ancient alc%emists aimed to turn lead into gold, todayAs alc%emists are turning information into knowledge< =%e combination of knowledge management tools wit% databases and knowledge in t%e minds of em&loyees is fostering N o&yrig%t >irtual :ni.ersity of 7akistan 22' K++ Matri9 and %ecklist for -otus Notes R* ommunication =ranslation ollaboration Intranet;19tranet Workflow Management Infrastructure +er.ices 1nter&rise Information 7ortal )usiness Intelligence ustomer Relations%i& Management 7ackaged +er.ices Knowledge +tructure $ormal Knowledge ategori5ed information +tructured information +tructured te9t Marked (u& te9t Raw te9t 3udio;>ideo Im&licit knowledge !enerate a&ture Inde9;4rgani5e Manage access :se;Retrie.e ore Knowledge +er.ices K++ Matri9 and %ecklist for 7eo&le+oft RM ommunication =ranslation ollaboration Intranet;19tranet Workflow Management Infrastructure +er.ices 1nter&rise Information 7ortal )usiness Intelligence ustomer Relations%i& Management 7ackaged +er.ices Knowledge +tructure $ormal Knowledge ategori5ed information +tructured information +tructured te9t Marked (u& te9t Raw te9t 3udio;>ideo Im&licit knowledge !enerate a&ture Inde9;4rgani5e Manage access :se;Retrie.e ore Knowledge +er.ices Knowledge Management EM!M=(/#0 >: knowledge grou&s, knowledge enter&rises, and knowledge industries< =%ese tools are a key com&onent in unleas%ing t%e .alue of knowledge management &rocesses< =%e K++ framework &ro.ides a con.enient way to c%aracteri5e knowledge management tools by defining t%e ty&es of knowledge t%ey can %andle and t%e ty&es of ser.ices t%ey &ro.ide to su&&ort knowledge management &rocesses< =%e K++ Matri9 and t%e K++ %ecklist %el& .isuali5e t%e co.erage of s&ecific tools and are, t%erefore, a con.enient way to Fuickly com&are and distinguis% different tools offerings< =%ey can be used to e.aluate s&ecific needs and matc% t%em to t%e ser.ices &ro.ided by a.ailable tools< $urt%er, t%ey se&arate different ty&es of knowledge management tools and a.oid comå a&&les to oranges< +er.ices are key elements in understanding knowledge management tools, but com&lete e.aluations s%ould include ot%er as&ects< :sers s%ould s&ecify t%e benefits t%ey want to obtain and take into account %ardware, software, and budget constraints< 3lso, more com&le9 tools may reFuire e9&ensi.e and time(consuming installation and configuration &rocesses< 3bo.e all, electronic tools &ro.ide necessary G%orse&owerH and number(crunc%ing ability to deal wit% t%e daunting com&le9ity of real(world situations< 3s tem&ting as it is to rus% to broad, 7latonic t%eories of w%at knowledge is and w%at it does, we may be better ser.ed by &ursuing and em&irical course< =%e &rocessing &at% of electronic knowledge e.ents< 1lectronic tools are needed to co&e wit% t%e bewildering number and .ariety of e.ents and to yield results consistent wit% t%e &erce&tual and cogniti.e &owers of t%e %uman mind< In s%ort, electronic tools assess difficult &roblems and gi.e us sim&le answers, but we must e9ercise caution in creating ca&able tools and in demanding answers t%at are sim&le rat%er t%an sim&listic< N o&yrig%t >irtual :ni.ersity of 7akistan 22*Knowledge Management EM!M=(/#0 >: -1++4N '2 KN4W-1D!1 377-I3=I4N +M+=1M+ 3ND RM 1< Design a knowledge a&&lication system to su&&ort your business needs< Describe t%e ty&e of system and t%e foundation tec%nologies t%at you would use to de.elo& suc% system< 3 knowledge(a&&lication system t%at can su&&ort one organi5ationAs business needs would be a case( based knowledge a&&lication for t%e software su&&ort teams Bu& to ' tiersC to address issues wit% t%e software &latforms t%ey su&&ort< Many organi5ations currently use a tool to control and track issues and reFuests made by internal and e9ternal users< $or e9am&le, one of t%ose tools allows for storage of t%e ticket %istory and %as re&orting features to generate metrics about our su&&ort teams< =%ese metrics allow users to determine many of t%eir issues and;or reFuest %a.e occurred in t%e &ast, but t%e su&&ort teams are not using t%e %istory of tickets to ensure a ra&id resolution of issues< In ot%er words, t%e tracking tool obKecti.e is to track issues, and does not %a.e t%e mec%anisms in &lace to aid in t%e solutions of t%em<
In order to design a case based a&&lication one could a&&ly t%e ase Met%od ycle@ J +ystem de.elo&ment &rocess@ de.elo& an a&&lication t%at will store t%e cases and allows retrie.ing t%em based on similar %istoric cases, and s%ows t%e &rocess to resol.e t%e issue or reFuest< =%e system would needs to be integrated wit% current tracking tool as well as wit% business reFuest tools to allow for &ro&er retrie.al of u&dated information J ase library de.elo&ment@ collect t%e case library information from current case %istory from Remedy re&ository and de.elo& t%e mec%anisms to maintain it< J +ystem o&eration &rocess@ define t%e installation, im&lementation and su&&ort of t%e knowledge a&&lication system, following t%e standard de.elo&ment &rocesses< J Database mining@ analy5e t%e collected case information, to assist in t%e &rocess of inferring t%e relations%i& between cases and define t%e resolution &rocess< J Management &rocess@ to ensure organi5ational su&&ort to t%e &roKect J Knowledge transfer@ to ensure users maintain and add cases to t%e case library =o de.elo& t%e cases one would follow t%ese sub(&rocesses@ J ase collection@ determine t%e cases for eac% a&&lication su&&orted by t%e su&&ort teams< =%is &rocess can be aided t%roug% t%e e9&erience of t%e su&&ort &ersonnel as well as wit% t%e %istory information stored in t%e remedy system< J 3ttribute(.alue e9traction@ to organi5e t%e su&&ort case library by identifying t%e attributes or c%aracteristics of eac% case< Determine relations%i&s between cases to allow for similar cases searc%ing features< It is im&ortant in t%is &%ase to take into consideration t%e interde&endencies t%at e9ist between t%e different a&&lications su&&orted Ban issue in a&&lication 3 can result in added issues to a&&lication )C and resolution for eac% case< 3lso includes ma&&ing t%e %ierarc%y into t%e database< J $eedback@ ensure t%at t%e &ersonnel t%at maintain t%e system %as t%e necessary feedback to ensure t%e Fuality of t%e information &ro.ided< =%is is es&ecially im&ortant since t%e Fuality of t%e cases and &rocess of resolution will minimi5e t%e time a ticket or reFuest is o&en< =%e tec%nologies t%at would be used to de.elo& t%is system include databases, Web(based tec%nologies, searc% engines, and a case(based reasoning engine< 2< Design t%e system arc%itecture for t%e system described abo.e< N o&yrig%t >irtual :ni.ersity of 7akistan 22/Knowledge Management EM!M=(/#0 >: #< Identify t%ree recent e9am&les in t%e literature of knowledge a&&lication systems< =%e .e%icle manufacturing di.ision of Daimler %rysler, c%ose a case(based a&&roac% to de.elo& a diagnosing system< Diagnostic &roblems in t%e field, suc% as trucks running %ot or sc%ool buses t%at .ibrate, reFuire a troubles%ooting routine, but it was difficult to connect t%e sym&tom wit% a &articular solution< 3fter all, most of $reig%tlinerOs .e%icles are customi5ed and %a.e different %istories, making e9act matc%es to ser.ice &roblems been im&ossible< ]We determined t%at case(based reasoning ga.e us t%e c%ance to deal wit% t%ings t%at were not so concrete,] says arlo Nardini, director of tec%nical su&&ort< $or discrete &roblems suc% as electrical wiring, a model(based reasoning system mig%t %a.e been useful, but wit% so many indeterminate .ariables, a case(based a&&roac% offered t%e greatest fle9ibility for t%e tec%nician in t%e ser.ice bay< 7roblems for w%ic% t%ere are no finite descri&tions or definitions demand case(based reasoning tec%nology< ase(based reasoning also makes it &ossible to incor&orate muc% less structured data so e9&eriences in t%e field can be easily absorbed< $or e9am&le, a roug%(ride &roblem in a truck wit% a similar but not matc%ing transmission and engine ty&e is connected to a &re.ious instance using case(based reasoning< :sing a Web(based interface, $reig%tliner offers its system to dealers and franc%isees, as well as t%ird(&arty o&erators suc% as $ed19 or&< =%e software acce&ts legacy information from $reig%tlinerOs call center and engineering grou&, gi.ing users an already ric% resource< %tt&@;;www<acknosoft<com;customers;freig%tliner<%tm, $aced wit% t%e &roblems of losing two key su&&ort staff, 3ndy King, Koint Managing Director of +%uttlewort% )usiness +ystems, decided t%at %is business would yield long(term benefits from im&lementing a knowledge a&&lication system solution< GMy .ision was to gi.e our customers t%e ability to answer t%eir own Fuestions by accessing t%e tec%nical knowledge base, so it made sense to u&grade our %el& desk at t%e same time< 0ence we were looking for a state(of(t%e(art %el& desk solution t%at was closely integrated wit% t%e best knowledge management tec%nology< We needed a knowledge base t%at would learn, be easy to use, and be accessible to internal staff and customers .ia t%e Web<H +%uttlewort% im&lemented a %el& desk system first, w%ic% enabled 3ndy to gain an in(de&t% understanding of %is su&&ort teamAs o&erations and workload< $or e9am&le, now t%e causes of t%e &roblems t%at &eo&le call in wit% E some of w%ic% originate in ot%er de&artments, suc% as sales, N o&yrig%t >irtual :ni.ersity of 7akistan 22"Knowledge Management EM!M=(/#0 >: de.elo&ment or training E can be identified and eliminates at t%e source< %tt&@;;www<.ision'<co<uk;inde9f<%tm< !eneral 1lectric de.elo&ed an a&&lication called I3R:+@ Design and De&loyment of a ase( )ased Reasoning +ystem for -ocomoti.e Diagnostics< !1 uses )R for se.eral a&&lications< 3s is so often t%e case, many large com&anies use )R< =%is a&&lication in.ol.ed analy5ing fault logs from locomoti.es to &redict and &reem&t serious faults< 7re.iously, t%ey %ad tried a rule(based system but it was too %ard to maintain< It took around four &erson years to get to t%e system to a stage w%ere t%ey reali5ed it wouldnOt work< =%e )R system Bas is so often t%e caseC used a sim&le a&&roac%, costing around P2*0,000 and 1' &erson( mont%s to build< =%e system sol.es "*U of t%e known faults across /00 locomoti.es, and estimated sa.ing are in t%e order of P* million &er year< %tt&@;;www<crd<ge<com;cooltec%nologies Knowledge ommunities In %is book of 1882 ( ommunities of 7ractice ( 1tienne Wenger defines t%ese communities as social units of learning e.en in t%e conte9t of muc% larger systems forming constellations of interrelated communities of &ractice< 0owe.er, t%e subtitle of t%e book ( -earning, meaning and identity (s%ows t%at Wenger is most interested in t%e dimension of t%e community w%ic% com&rises identity, belonging and boundaries< In a subseFuent article entitled Xommunities of &ractice and social learning systemsA, Wenger B2000@ 228C is e.en more e9&licit w%en %e writes t%at communities of &ractice are t%e social containers of t%e com&etences t%at make u& a social learning system< =%ree elements define com&etence@ J t%e sense of Koint enter&rise@ to be com&etent is to understand t%e enter&rise well enoug% to be able to contribute to it6 J mutuality@ to be com&etent is to be able to engage wit% t%e community and to be trusted as a &artner in t%ese interactions6 J a s%ared re&ertoire of communal resources@ language, routines, sensibilities, tools, stories, etc< =o be com&etent is to %a.e access to t%is re&ertoire and to be able to use it a&&ro&riately< In a community of &ractice, knowing in.ol.es two com&onents@ t%e com&etence t%at t%e community %as establis%ed o.er time, and t%e subKecti.e e9&erience of t%e world as a member< Wenger distinguis%es among different forms of &artici&ation according to t%ree modes of belonging@ J engagement@ doing t%ings toget%er ( t%e way in w%ic% we engage wit% eac% ot%er s%a&es our e9&erience of w%o we are6 J imagination@ constructing an image of oursel.es, of our communities ( t%ese images of t%e world are essential for our sense of self and for our inter&retation of our &artici&ation in t%e social world6 J alignment@ making sure t%at our local acti.ities are sufficiently aligned wit% ot%er &rocesses so t%at t%ey can be effecti.e beyond our own engagement< 3lignment %as to do wit% coordinating &ers&ecti.es, inter&retations and actions< N o&yrig%t >irtual :ni.ersity of 7akistan 222Knowledge Management EM!M=(/#0 >: -1++4N '# R4-1 4$ 4MM:NI=I1+ IN -13RNIN! 3ND 7R4D:= D1>1-47M1N= Knowledge ommunities =eams interact wit% wider knowledge networks< =%eir members will freFuently be members of communities of &ractice t%at s&an t%e organi5ation< !eorge 7or describes communities as Xconnecting islands of knowledge into self(organi5ing, knowledge s%aring networksA< W%ile some communities focus on a &articular &rofession or disci&line, t%e most &owerful communities are customer or &roblem focused< =%ey transcend disci&lines and bring in different &ers&ecti.es< =%ey e9c%ange, de.elo& and a&&ly knowledge< Dust as a knowledge team is more co%esi.e t%an a work grou&, a knowledge community is a more co%esi.e cluster wit%in a diffuse knowledge network< $ollowing table %ig%lig%ts t%e essential differences between grou&s, teams, networks and communities< Knowledge communities contrasted wit% ot%er grou&s Work grou& =eam Knowledge Network BolC Knowledge community Bo7C =y&ical si5e #(#0 *(2 #0(#00 1*(1*0 Members%i& Recruited for Kob Recruited for team fit +elf(selecting +elf(selecting $ocus =asks 4ut&ut Knowledge e9c%ange 3&&lied Knowledge !oals 19&licit, gi.en Mutually agreed Im&recise or im&licit 1.ol.ing and &ur&oseful )oundaries 7recise 7ermeable $luid Mutually adKusting Note@ ol _ community of interest6 o7 _ community of &ractice =%e main difference com&ared to a team in t%at t%e members%i& is self(selecting< -ike a self( managed team t%ey cannot be strongly directed or o.er directed< In fact t%e best management style for an in( %ouse knowledge community is %ands(off, but &ro.iding a climate in w%ic% t%ey t%ri.e< ommunities are more social t%an structural< 1tienne Wenger Ban originator of communities of &racticesC, and )ill +nyder list t%e following stage of community de.elo&ment< 1< -atent@ t%ere is &otential for suc% a community wit%in t%e organi5ation< 2< oalescent@ members come toget%er and recogni5e t%eir collecti.e &otential< #< 3cti.e@ engaged in de.elo&ing a &ractice< '< -egitimi5ed@ recogni5ed as a .aluable entity< *< +trategic@ central to t%e success of an organi5ation< /< =ransformational@ ca&able of redefining its en.ironment< "< In Dias&ora@ dis&ersed but still ali.e as a force< 2< Member able@ no longer .ery rele.ant, but still remembered as &art of memberAs identities< om&ared to a knowledge team, t%e si5e of community means t%at it loses some of t%e co%esi.eness and commitment< 0owe.er, good communities retain as many c%aracteristics of effecti.e knowledge teams as &ossible, including a s%ared sense of &ur&ose, intensi.e e9ternal networking, effecti.e knowledge management and trust< Many communities embody suc% considerations into t%eir guiding &rinci&les< =%e two most im&ortant &arameters are a %ig% flow of communications and &assionate community leaders< In t%e .irtual en.ironment t%is role is &erformed by a &erson known as t%e conference %ost or moderator< >irtual moderation for knowledge de.elo&ment N o&yrig%t >irtual :ni.ersity of 7akistan 228Knowledge Management EM!M=(/#0 >: =%e role of a conference moderator is to stimulate .irtual discussion and to guide t%e community forwards in its t%inking and knowledge de.elo&ment< 3 good moderator %as ent%usiasm for t%eir subKect and likes networking< $or most, moderating is not t%eir &rimary Kob, but an im&ortant added daily acti.ity< =%ey acti.ate knowledge de.elo&ment by@ J +etting u& conferences E admitting members, assigning &ri.ileges etc< J Defining t%e sco&e and agenda for discussion E &osing key Fuestions< J Defining t%e ground rules, e<g< no &ersonal insults, no ad.ertising< J Kee&ing con.ersations de.elo&ing E stimulating discussion, re.isiting earlier to&ics< J +ummari5ing E &eriodically re.iewing &rogress and key contributions and maintaining a co%erent structure< J ross(linking E connecting different con.ersational t%reads6 t%is cross(fertili5ation often s&arks new ideas and momentum< J Managing ina&&ro&riate contributions or be%a.ior E defusing arguments Bmore of t%is is done be%ind t%e scenes wit% &ri.ate emails or tele&%one con.ersationsC< J 1ngaging &eo&le in con.ersation E acti.ely seeking contributions from t%ose t%ey know %a.e somet%ing wort%w%ile to contribute6 .isibly acknowledging good contributions< !ood conference leaders will identify im&ortant and c%allenging tasks t%at will benefit t%e w%ole community and kee&s t%e knowledge following, e<g< &re&aration of a best &ractice guidebook, a resources database, etc< +ustaining communities =%ose organi5ations t%at encourage communities as an integral &art of cor&orate knowledge &rograms will gain significant benefits< !ood knowledge communities will be t%oug%t leaders, generating new &roduct ideas and aggregating t%e collecti.e t%inking of a talented grou& of indi.iduals to tackle difficult &roblems< =%ey will significantly increase an organi5ationAs knowledge ca&ital< 3 &otential t%reat to communities is t%at t%e .ery focus on knowledge management introduces a degree of formali5ation t%at could, if not dealt wit% sensiti.ely, stifle t%em< 0ow can organi5ation minimi5e t%is risk? J 7ro.ide facilities t%at make it easy for t%ese communities to meet and e9c%ange@ web s&ace, internal newsgrou&s, mail lists6 as well as &%ysical meeting &laces w%ere tacit knowledge con.ersion can take &lace< J 4ffer facilitation to %el& t%em im&ro.e current &rocesses E too often communities bogged down in t%e content, not ste&&ing back and seeing t%e effecti.eness of t%eir ongoing &rocesses, e<g< w%en enrolling new members< J 7ro.ide connection information E %el& ot%ers w%o s%are t%eir interests a&&ly to Koin, %el& t%em &ublici5e t%eir e9istence to t%e outside world, e<g< .ia community directories< J 1ncourage note taking met%ods for meetings E %a.e community members synt%esi5e Xknowledge nuggetsA, t%at can be recalled and s%ared wit% t%ose not at t%e meeting< J +ynt%esi5e and edit email discussions E create Xknowledge editorA roles, &eo&le w%o res&ect t%eir norms and .alues E some communities may want to remain small and intimate, and restrict members%i&< ommunities need a su&&orti.e organi5ational en.ironment< 3n easy way to kill a community is to discourage &eo&le from s&ending time at it, or e.en, as some managers %a.e tried, to su&&ress t%is Xnon( essential workA< Reward systems and culture must su&&ort community &artici&ation< 1ndorsement, not enforcement, is t%e watc%word< =%e w%ole et%os of a successful community is based muc% more on knowledge ecology rat%er t%an a knowledge management em&%asis< 3 good e9am&le of knowledge ecology in action is t%at of t%e Knowledge 1cology $air< N o&yrig%t >irtual :ni.ersity of 7akistan 2#0Knowledge Management EM!M=(/#0 >: In t%e 4&en s&ace ircle forty(two discussion items were created, w%ic% co.ered to&ics as .aried as organi5ational intelligence in family(owned businesses, knowledge artifacts and communities of &ractice in %ealt% care settings< 3s a result of discussion at t%e fair, new initiati.es %a.e e.ol.ed, suc% as K1N BKnowledge 1cology NetworkC and t%e Knowledge 1cology :ni.ersity< N o&yrig%t >irtual :ni.ersity of 7akistan 2#1 =%e Knowledge 1cology $air Knowledge 1cology $air 1882 was an on(line e.ent t%at attracted o.er #00 .irtual attendees and ran for t%ree weeks< =%e World Wide Web &ro.ided an entry &oint for t%e .arious acti.ities of t%e conference@ J Keynote &resentation E gi.en by knowledge leaders suc% as -eif 1dison of +kandia, Karl 1rik +.eiby, and )i&in Dunnarkar of Monsanto< J Works%o&s E led by subKect e9&erts, including >erna 3llee on XKnowledge and self organi5ationA, 1tienne Wenger X-earning ommunities@ t%e ecology of knowingA, 3rian Ward on futuri5ing and Mic%ael Rey on creati.ity< J Discussion grou&s suc% as work&lace communities< J ommunity afT E more informal discussion e<g< on s%ared interests, on books we lo.e< J =%e 4&en +&ace ircle E Xan o&en s&ace for &artici&ant generated discussions6 get first %and e9&erience facilitating a learning con.ersation < < < < e9&lore Fuestions of most interest to youA<Knowledge Management EM!M=(/#0 >: -1++4N '' -13RNIN! 4R!3NI[3=I4N Knowledge is not somet%ing t%at &eo&le &ossess in t%eir %eads, but rat%er, somet%ing t%at &eo&le do toget%er< B!ergen, 1881C =o &lay t%e .iolin ( Xit is necessary to &ossess certain %abits, skills, knowledge, and talent, and to be in t%e mood to &lay, and Bas t%e old Koke goesC to %a.e a .iolin< )ut .iolin &laying is neit%er t%e %abits, skills, knowledge, and so on, nor t%e mood, nor Bt%e notion belie.ers in Gmaterial cultureH a&&arently embraceC t%e .iolinA< >iolin &laying is an easily recogni5able &ractice6 it is more troublesome to recogni5e Xan organi5ational &racticeA or to detect %ow and w%en Xknowing in &racticeA occurs< on.entional wisdom 4ur society is dominated by a .iew of learning, education and training as an endea.our of Xknowledge deli.eryA based on a notion of learning as a &rocess of information deli.ery from a knowledgeable source Beit%er a teac%er or a te9t bookC to a target lacking t%at information < $rom t%is &ers&ecti.e, learning amounts essentially to t%e acFuisition of t%e body of data, facts and &ractical wisdom accumulated by all t%e generations t%at %a.e &receded us< =%is knowledge is Xout t%ereA, stored in some form of memory Busually booksC, and t%e main effort of t%e learner is to acFuire it and to store it in t%e &ro&er com&artment of %is;%er mind for future use or reference as needed< =o a certain e9tent, w%en learning is .iewed in t%is way it may be eFuated to eating or to banking@ knowledge is food for t%e mind, and t%e learner seeks to find t%e rig%t or necessary sort of food and to ingest or consume it< =eac%ing and learning consist in t%e transfer of t%e XgoldA to t%e &u&ilsA %eads< -earning t%erefore takes &lace mainly during our early de.elo&ment, as we mo.e t%roug% sc%ooling, instruction and training< 7eo&le usually recei.e t%eir training at t%e end of t%eir educational careers, so t%at it is considered a s&ecific and goal(oriented form of instruction w%ic% &ro.ides newcomers wit% t%e knowledge t%ey reFuire to &erform t%eir roles a&&ro&riately in some organi5ation< =raining may be acFuired later, if for some reason Be<g<, u&dating e9isting knowledge or &reå for a Kob c%ange or a new assignmentC, new learning becomes necessary< !enerally s&eaking, in suc% cases training takes t%e form of a su&&lementary dose of instruction and sc%ooling< 3lt%oug% t%is familiar conce&tion of learning may seem Fuite reasonable, it is a %ig%ly reducti.e account of bot% %ow &eo&le learn in general and of %ow &eo&le learn in organi5ations, for at least two reasons< In t%e first &lace, it suggests t%at learning is se&arate from ( and to some e9tent o&&osed to ( any ot%er acti.ity< 3ccording to t%e traditional .iew, not only do we learn solely in certain &eriods of our li.es, but also our learning is restricted to s&ecific occasions, suc% as w%en we take a class, or read a book, or watc% an instructional .ideo< 0owe.er, t%is is an inaccurate descri&tion of %ow matters stand< +tudy and instruction X&er seA are indeed im&ortant, but learning is also dee&ly rooted in ot%er e.eryday acti.ities and e9&eriences as well< Most of t%e rele.ant know %ow t%at distinguis%es an e9&ert from a no.ice is acFuired on a day(to(day basis by acting and reflecting, i<e<, by t%inking about w%at we are doing and w%y, and talking about it wit% ot%ers B+c%en, 182#C< In t%e second &lace, t%e .iew of learning as a totally indi.idual acti.ity, like ingesting food, can be misleading< -earning is muc% more t%an, and .ery different from, finding and acFuiring items of organi5ational knowledge< 3s muc% in e.eryday life as in work organi5ations, &eo&le and grou&s create knowledge by negotiating t%e meaning of words, actions, situations and material artefacts< =%ey all &artici&ate in and contribute to a world w%ic% is socially and culturally structured and constantly reconstituted by t%e acti.ities of all t%ose w%o belong to it< ogniti.e and &ractical acti.ity can t%us be &ursued only wit%in t%is world, and t%roug% t%is social and cultural networking< Knowledge is not w%at N o&yrig%t >irtual :ni.ersity of 7akistan 2#2Knowledge Management EM!M=(/#0 >: resides in a &ersonAs %ead or in books or in data banks< =o know is to be ca&able of &artici&ating wit% t%e reFuisite com&etence in t%e com&le9 web of relations%i&s among &eo&le, material artefacts and acti.ities B!%erardi, 2001bC< 4n t%is definition it follows t%at learning is always a &ractical accom&lis%ment Xknowledge is somet%ing &eo&le do toget%erA and it is done in e.ery mundane acti.ity, in organi5ations w%en &eo&le work toget%er and in academic fields like organi5ation studies, e.en if we make distinctions between lay, &ractical and t%eoretical knowledge< )ut also t%e &ractices of science ( like any ot%er social &rocess ( are intrinsically refle9i.e, and t%ey are &ractices situated in s&ecific conte9ts of &ower;knowledge< +ituated &ractices are bot% &re(refle9i.e Bde&ending on unstated assum&tions and s%ared knowledge for t%e mutual ac%ie.ement of senseC and refle9i.ely constituti.e of t%e situated membersA conte9ts from w%ic% t%ey arise< =%e term Xorgani5ational learningA not only acFuires meaning from t%e conte9t in w%ic% it a&&ears but it also refle9i.ely creates t%at conte9t< =%e institutionali5ation of t%e field@ t%e birt% of t%e learning organi5ation =%e field of 4- %as de.elo&ed and been institutionali5ed as X&roblem dri.enA, as t%e &roduction of instrumental knowledge< )ut t%e knowledge t%us &roduced sets t%e conditions for researc% to s%ift to Xmystery(dri.enA learning B!%erardi, 1888C w%ic% ( in DerridaAs B18/"C terms ( is su&&lementary to cogniti.e refle9i.ity< 3n e&isode B!%erardi, 1888C is &aradigmatic of w%at %a&&ens in t%e community of sc%olars t%at studies organi5ational learning@ I was at an international conference on 4rgani5ational -earning and %ad taken &art in discussion of a &a&er &resented by a colleague from a uni.ersity in a de.elo&ing country w%ic% em&irically tested w%et%er t%e most successful firms in %er country were, or were not, learning organi5ations< :nfortunately, %er data s%owed a low correlation between being an economically successful firm and being a learning organi5ation, and s%e was &u55led by %er findings< =%is e&isode is &aradigmatic of t%e social &rocess of Xmanufacturing knowledgeA@ a %euristic conce&t ( 4- ( acFuires legitimacy in t%e scientific community, it s&reads t%roug% t%e community of consultants and &ractitioners, it &roduces t%e Xc%aracteristicsA t%at distinguis% t%e &%enomenon Band t%us &ro.es its e9istenceC, and it coins t%e label Xlearning organi5ationA< =%is label tra.els t%oug% time and s&ace B5arniawska and +f.on, 188/C and is a&&ro&riated by some organi5ations, w%ic% incor&orate it into t%eir identities< 3t t%is &oint a social &%enomenon %as been &roduced@ a realist assum&tion re&laces a %euristic de.ice, and learning is defined a XrealA &%enomenon w%ic% takes &lace Xout t%ereA in organi5ations and can be measured, com&ared and .alidated< =%ere XreallyA e9ist learning organi5ations in t%e world ( organi5ations w%ic% are &resumably different from non(learning ones ( and as cor&orate actors t%ey learn by t%emsel.es, 2 eit%er from eac% ot%er or by being immersed in ecology of learning< =%e touc%stone wit% w%ic% to determine w%et%er, %ow and in w%at circumstances learning %as been &roduced is t%e conce&t of c%ange< 4rgani5ational c%ange is t%e outcome of a more or less rational &rocedure of t%e &roduction of knowledge and its &ractical a&&lication< If t%is does not come about, somet%ing X%as gone wrongA and dysfunctional learning %as taken &lace< =%is e&isode gi.es cause for muc% t%oug%t, but I s%all e9amine only t%e as&ect t%at concerns t%e social &rocess internal to a community of sc%olars w%ic% ( around 20 years ago ( marked out an area of study by means of a meta&%orical o&eration@ t%at is, by Ku9ta&osing t%e conce&t of learning wit% t%at of organi5ation< 3 new area of study reFuires resources of legitimation B3stley, 182*6 W%itley, 182'C not only internally to t%e restricted occu&ational community of academics or consultants but also to firms and to society in general< =%is &rocess of mobili5ing credibility creates cultural artefacts ( books, conferences, uni.ersity courses ( as well as new identities@ learning organi5ations B-4C are born< om&anies wit% outstanding re&utations ( +%ell, Mercedes )en5, Is.or $iat ( ba&ti5e t%emsel.es -4s and de.ote enormous resources to creating a Xcor&orateA identity t%at is recogni5able, recogni5ed and trustwort%y in t%e eyes of its members and of society at large< =%is social &rocess of t%e creation of a new subKecti.ity for t%e firm and of t%e legitimation of new e9&ert knowledge singles out a series of distincti.e features of t%e -4' and of 4- w%ic%, in t%eir turn, find co%erence wit%in a normati.e model< It is often a s%ort ste& from descri&tion to &rescri&tion in organi5ational studies, e.en more so if %istorical memory is lost< =%e e9istence of t%e -4 %as become XnaturalA because it %as been institutionali5ed, and institutions gi.e N o&yrig%t >irtual :ni.ersity of 7akistan 2##Knowledge Management EM!M=(/#0 >: identity< =%erefore t%e features of t%e -4 %a.e become attributes of t%e being of a category of firms< Mary Douglas B182/@ 2#(/C argues t%at institutions are founded on an analogy wit% nature< =%e naturali5ation of social classifications &rotects t%e institution w%en it is still at t%e stage of fragile con.ention@ by being naturali5ed, it becomes &art of t%e order of t%e uni.erse and is t%erefore ready to function as a basis for argument< 3nd t%is is w%en organi5ation sc%olars ( of t%e second generation, or forgetful, or subordinate to t%ose w%o &roduce XknowledgeA, or decentrali5ed or marginal wit% res&ect to t%em ( arm t%emsel.es wit% Fuestionnaires, measuring scales and ot%er scientific tools and set off to .erify t%ese distincti.e features< =%is account is sim&listic and crude< It does not claim to be XtrueA6 it merely ser.es to %ig%lig%t some of t%e turning &oints t%at %a.e made t%e languages of )abel no longer mutually intelligible< 3 scientific community can t%erefore be identified as forming around t%e conce&t of -4, around realist ontology, around a &ositi.ist e&istemology, around a &rescri&ti.e intent, and around continued researc% into a&&lied rationality< It s%ould be borne in mind, in fact, t%at t%e term 4- was first used in decision( making t%eory Byert and Marc%, 18/#C, w%ic% subseFuently de.elo&ed t%e notion of learning as ada&tation< We may for t%e moment assume t%at t%e distinction between -4 and 4- is based on t%e dic%otomy between &rescri&ti.e and descri&ti.e researc%, as &ro&osed by =sang B188"@ "#C for e9am&le< )ut, in my .iew, t%e issue is not t%e fact t%at some BacademicsC Xfail to generate useful im&lications for &ractitionersA and t%e ot%ers Xseldom follow rigorous researc% met%odologiesA, t%erefore t%ere is a need Xto integrate t%e two streams of researc%A< =%is too is r%etoric of scientific writing w%ic% urges t%e searc% for a uni.ersal language< onseFuently, in my o&inion, it is not a matter of &roducing Xconstructs gt%ath can be o&erationali5ed in em&irical researc%A Bibid< &< "2C or of &roducing Xem&irical e.idenceA Bibid< &< ""C w%en t%e contrast is between a realist ontology ( w%ic% assumes learning as an em&irical &%enomenon ( and a constructionist one< =%ese are &roblems of knowledge t%at concern a realist ontology, but if organi5ational learning is a Xli.e meta&%orA B=5oukas, 1881C, a meta&%orical o&eration &erformed by t%e researc%er B!%erardi, 188*bC ( t%at is, a means to re&resent t%e organi5ation as if it were a system t%at learns ( t%en t%e &roblem of knowledge is not to establis% w%at constitutes Xeffecti.e learningA but to determine t%e amount of furt%er knowledge yielded by t%e meta&%or &ro&osed< =%erefore t%e interest of knowledge B0abermas, 18"1C s%ifts from t%e Fuestion X%ow does an organi5ation learn or s%ould learn?A to t%e Fuestion Xif we de&ict an organi5ation as a system w%ic% learns, are we able to see somet%ing new and to see somet%ing t%at we already know differently?A =%e former Fuestion mainly concerns e9&lanation of 4-, w%ile t%e latter more closely relates to understanding B>erste%enC of it BWeber, 1822C<3t t%is crossroads in t%e social sciences, t%e former community goes in Fuest of t%e founding myt% of obKecti.ity, w%ile t%e latter &ursues t%e myt% of adeFuacy BRicolfi, 188"@ #2C< Ricolfi writes Xe9&lanation and understanding, &ositi.ism and %ermeneutics, t%e &rimacy of met%od and t%e &rimacy of t%e subKect(matter, are antit%eses t%at were born toget%er wit% t%e social sciences, and t%ey %a.e &ersisted because t%ey re&resent different but functionally eFui.alent answers to t%e need for identity of t%e social sciences t%emsel.esA< $rom t%is latter &ers&ecti.e we may t%erefore enFuire as to t%e XgoodnessA of t%e models of knowledge &roduced w%en a scientific community is socially constructed around a to&ic< 4rgani5ational learning as a disci&linary discourse =%e literature on -4 %as been sus&ected of colluding wit% t%e Xruling courtsA w%ic% go.ern organi5ations Boo&ey, 188*C and of em&loying ideologically a discourse of democracy and liberation B+nell and %ak, 1882C< 1asterby(+mit% B188"@ 102/C defines t%e literature on -4 as %a.ing Xan action orientationA, and being Xgeared toward creating an ideal ty&e, an organi5ation in w%ic% learning is ma9imi5edA< )ut it would be nai.e to create and re&resent a distinction between 4- as a %euristic .iew and -4 as a realistic one, w%en bot% con.erge on t%e same social &ractice w%ic% legitimi5es t%e managerial tec%niFues based on t%eir claims of scientific knowledge< =%ey s%are t%e same bias and bot% contribute to t%e institutionali5ation of t%e field as a disci&linary discourse and to its su&erseding t%roug% t%e &rocess of constant reinter&retation of t%e &re.ious inter&retation known as Xinstitutional refle9i.ityA< We may t%erefore .iew t%e manufacturing of a body of knowledge ( a disci&line ( under t%e labels X4-A and X-4A as a situated &ractice in a community of organi5ations, in a community of &ractitioners, in a community of academics, in a society< We may e9&lore t%at &ractice as a Xdisci&linary discourseA w%ic% sustains forms of normati.e be%a.iour, su&&orts knowledge claims and &ro.ides resources for normali5ation< N o&yrig%t >irtual :ni.ersity of 7akistan 2#'Knowledge Management EM!M=(/#0 >: $rom a $oucauldian &ers&ecti.e, discourses are systems of t%oug%t w%ic% are contingent u&on material &ractices and w%ic% inform t%ose &ractices t%roug% &articular &ower tec%niFues< Muc% of nineteent%( century social science Bsocial welfare, administration, statisticsC was almost w%olly s%a&ed by t%e Xdisci&linary ga5eA B$oucault, 18""C of sur.eillance< In organi5ation studies, for e9am&le, t%e &ersonnel function, under t%e guidance of X%uman relationsA, %ad a similar tutelary role B0ardy and legg, 188/C, and Xorgani5ational learningA is now following suit< $oucaultAs conce&t of disci&line %as been usefully a&&lied in &ost(modern analysis of &ower;knowledge relations B3l.esson, 188#, 188'6 Deet5, 188/6 =ownley, 188#C in t%e area of knowledge firms or in t%e construction of t%e subKecti.ity of knowledge workers< 3lso t%e e9&loitati.e et%os of many organi5ational learning discourses %as been under(lined by &ostmodern sc%olars B)oKe, 188'C and ot%er critical sc%olars B0uysman, 1888C< I do not wis% to &ursue t%is line of analysis furt%er6 rat%er, I s%all restrict my treatment to illustration of a set of &remises im&licit in 4- and -4 t%eori5ation in order to %ig%lig%t %ow t%ey sustain a disci&linary discourse w%ic% disci&lines concrete be%a.iours@ 1< 4- is always ameliorati.e and disinterested< -earning is regarded as always &ositi.e, in t%e s&irit of Xt%e more, t%e betterA< 4- as a discourse im&licitly assumes an ameliorati.e .ision in w%ic% learning is incremental and knowledge is a cumulati.e &roduct w%ic% undergoes constant de.elo&ment BMiner and Me5ias, 188/C< =%e alleged uni.ersality, neutrality and trans&arency of knowledge &resume t%at %umankind is its beneficiary, t%ereby neglecting t%e role of &ower in structuring organi5ational knowledge< W%at is deemed wort% learning %as already been selected@ only t%ose in &ower learn t%e rig%t t%ings< 2< 4- is intentional< If learning resembles a &rocess of a&&ro&riation and ca&itali5ation of somet%ing e9ternal, or of a known &roduct, t%en also t%e ways in w%ic% it is a&&ro&riated;&roduced can be s&ecified and normati.ely sustained< 4- may be embodied in +47s Bstandard o&erating &roceduresC, w%ic% are &eriodically o.er%auled and u&dated BKieser, )eck and =aino, 2001C< It may t%us be en.isaged as Xt%e one best way of learningA< #< 4- is an e9torted result< =%e -4 reFuires of work grou&s t%at t%ey XlearnA and transfer t%e knowledge t%us acFuired to organi5ational structures, and t%at learning leads to an im&ro.ement in &erformance< =%e use of &ower in transferring knowledge is silenced and 4- is concei.ed as grounded on free transfer, on trans&arency, on .oluntariness and on t%e c%ain of aut%ority, rat%er t%an residing in t%e murky de&t%s of micro( conflictuality, micro(negotiation and t%e systematic and more or less deliberate distortion;e9tortion of knowledge< '< 4- &resumes c%ange but not its understanding< -earning &ro&oses a c%ange in t%e be%a.iour ( actual or &otential ( of indi.iduals or grou&s, or &er%a&s a cogniti.e c%ange< It does not necessarily reFuire indi.iduals to understand t%e logic t%at %as led to a c%ange in +47s B%ild and Markoc5y, 188#C<=%is amounts to saying t%at if some c%ange is manifest, t%en a learning &rocess %as taken &lace, but also t%at c%ange does not reFuire any learning< =%e &roblem t%us arises of %ow t%e em&irical e.idence can be collected to demonstrate t%e relations%i& between c%ange and learning< -earning, writes Rorty B1828C, is a term often &art of a final .ocabulary@ it is a .alue in itself w%ic% cannot be furt%er Fuestioned< It is associated wit% im&ro.ement in &erformance, t%e ra&id correction of errors and a fast reaction to en.ironmental c%anges< =%e &ositi.e connotation associated wit% t%e word induces t%e a &riori assum&tion of w%at needs to be em&irically demonstrated< -earning, as t%e founding myt% of t%e scientific community of 4- sc%olars, obscures t%e myo&ia of learning from e9&erience B-e.int%al and Marc%, 188#C< In s%ort, we %a.e described t%e t%eoretical construction of 4- and -4 as a discourse of disci&lining w%en it is reselected as a managerial tec%niFue w%ic% contains a bias towards systematic and &ur&oseful learning, a bias towards im&ro.ement, and a normati.e bias< =%ese biases are com&osed of a s&ecific structuring of &ower;knowledge w%ic% sustains t%em and &er&etuates t%em as a discourse of &ower< N o&yrig%t >irtual :ni.ersity of 7akistan 2#*Knowledge Management EM!M=(/#0 >: =%is is e.en more e.ident w%en we consider t%e literature on knowledge management< 1<' =%e reification of knowledge in t%e knowledge management literature 3 Fuantitati.e bibliogra&%ical sur.ey B+carbroug%, +wan and 7reston, 1882C s%ows t%at since 188" t%e term Xknowledge managementA %as su&&lanted Xorgani5ational learningA, and t%at t%e interest of t%e scientific community %as switc%ed from Fuestions concerning t%e a&&ro&riation of knowledge by indi.iduals and organi5ations to ones concerning t%e tec%niFues and tec%nologies of knowledge management< =%e academic disci&lines now &redominant in t%e organi5ational learning debate are not &syc%ological but economic, and a new alliance %as arisen between t%e economics of knowledge and information tec%nology w%ic% now mono&oli5es t%e term Xknowledge managementA BKMC< =%e conce&ts of Xknowledge workA and Xknowledge workerA were first introduced by 7eter Drucker B18#8C, w%o set t%em in contrast to t%ose of manual work and ser.ice work< )rief ins&ection of t%e relation between knowledge and wealt% creation between t%e eig%teent% and twentiet% centuries re.eals a series of e&oc%al c%anges@ first, knowledge was a&&lied to artefacts, &rocesses and &roducts t%roug% tec%nologies, &atents and tacit knowledge6 t%en it was a&&lied to %uman labour t%roug% t%e scientific analysis of work6 and finally knowledge was a&&lied to knowledge itself, t%us constituting knowledge work< )ased on t%is new ty&e of work is t%e endea.our to manage knowledge as if N o&yrig%t >irtual :ni.ersity of 7akistan 2#/Knowledge Management EM!M=(/#0 >: -1++4N '* =01 $:=:R1 4$ KN4W-1D!1 M3N3!1M1N= W%at makes a KM initiati.e successful? W%at are t%e strategic and o&erational t%ings one must do? 0ow do you .alue knowledge assets? W%at role does culture, bot% national and organi5ational, &lay? W%at is t%e future of KM? =%e following golden nuggets, deri.ed from t%e KM researc%, are only t%e beginning of t%is Fuest@ J KM reFuires t%e integration and balancing of leaders%i&, organi5ation, learning and tec%nology in an enter&rise(wide setting< J KM must not only recogni5e reFuirements and conditions for success, but also su&&ort t%e desired benefits and e9&ectations of t%e enter&rise< J +treamlined organi5ational structure, wit% strong cultures, %as a %ig%er c%ance of KM success< J 3n atmos&%ere;culture of trust is necessary to s%aring knowledge< J National culture affects t%e .alues and &ractices of e.ery organi5ation in Knowledge Management im&lementation, es&ecially at t%e lower le.els< J KM tec%nologies contribute to organi5ational growt% only if t%e flow and con te9t of knowledge are su&&orted< J KM tec%nologies are useful in managing and le.eraging intellectual ca&ital, but t%e si5e of t%e organi5ation is a maKor .ariant< J +uccessful KM tec%nology im&lementation reFuires an organi5ational culture t%at &romotes a blend of &roduct and &eo&le orientation< J KM success factors are dominated by management ones, suc% as culture, &rocess, and organi5ation, wit% tec%nology as t%e least im&ortant< J KM criteria for success s%ould include bot% soft and %ard measures if to& leaders%i& is to su&&ort KM initiati.es< J Knowledge assets are strategic, and must be accounted for and .alued accordingly< Managers concerned wit% im&lementing knowledge management in t%eir organi5ations today face a number of c%allenges in de.elo&ing sound met%ods for t%is still emerging area of management &ractice< )ot% t%e growing literature on knowledge management and t%e ad.ice offered by .arious knowledge management consultants6 %owe.er, seem to ad.ocate forms of knowledge management &ractice t%at often a&&ear incom&lete, inconsistent and e.en contradictory< =acit knowledge .ersus e9&licit knowledge a&&roac%es 1.en a casual re.iew of t%e many articles and consulting recommendations on knowledge management &ractice today soon re.eals a &let%ora of recommended &rocesses and tec%niFues< :nfortunately ( es&ecially for t%e many managers looking to researc%ers and consultants for insig%ts to guide de.elo&ment of sound knowledge management &ractices ( many of t%ese recommendations seem unconnected to eac% ot%er, and in t%e worst cases many seem to be Fuite at odds wit% eac% ot%er< lose analysis of t%ese recommendations, %owe.er, usually re.eals t%at t%e many ideas for &ractice being ad.anced today can be grou&ed into one of two fundamentally different .iews of knowledge itself and of t%e resulting &ossibilities for managing knowledge in organi5ations< =%ese two .iews are c%aracteri5ed %ere as t%e Xtacit knowledgeA a&&roac% and t%e Xe9&licit knowledgeA a&&roac%<
=%e tacit knowledge a&&roac% =%e salient c%aracteristic of t%e tacit knowledge a&&roac% is t%e basic belief t%at knowledge is essentially &ersonal in nature and is t%erefore difficult to e9tract from t%e %eads of indi.iduals< In effect, t%is a&&roac% to knowledge management assumes, often im&licitly, t%at t%e knowledge in and a.ailable to an N o&yrig%t >irtual :ni.ersity of 7akistan 2#"Knowledge Management EM!M=(/#0 >: organi5ation will largely consist of tacit knowledge t%at remains in t%e %eads of indi.iduals in t%e organi5ation<
Working from t%e &remise t%at knowledge is in%erently &ersonal and will largely remain tacit6 t%e tacit knowledge a&&roac% ty&ically %olds t%at t%e dissemination of knowledge in an organi5ation can best be accom&lis%ed by t%e transfer of &eo&le as Xknowledge carriersA from one &art of an organi5ation to anot%er< $urt%er, t%is .iew %olds t%at learning in an organi5ation occurs w%en indi.iduals come toget%er under circumstances t%at encourage t%em to s%are t%eir ideas and Bit is %o&edC to de.elo& new insig%ts toget%er t%at will lead to t%e creation of new knowledge< )asic beliefs in tacit .ersus e9&licit knowledge management a&&roac%es =acit knowledge a&&roac% Knowledge is &ersonal in nature and .ery difficult to e9tract from &eo&le< Knowledge must be transferred by mo.ing &eo&le wit%in or between organi5ations< -earning must be encouraged by bringing t%e rig%t &eo&le toget%er under t%e rig%t circumstances< 19&licit knowledge a&&roac% Knowledge can be articulated and codified to create e9&licit know(ledge assets< Knowledge can be disseminated Busing information tec%nologiesC in t%e form of documents, drawings, best &ractices, etc< -earning can be designed to remedy knowledge deficiencies t%roug% structured, managed, scientific &rocesses< =o make wider use of t%e tacit knowledge of indi.iduals, managers are urged to identify t%e knowledge &ossessed by .arious indi.iduals in an organi5ation and t%en to arrange t%e kinds of interactions between knowledgeable indi.iduals t%at will %el& t%e organi5ation &erform its current tasks, transfer knowledge from one &art of t%e organi5ation to anot%er, and;or create new knowledge t%at may be useful to t%e organi5ation< Most managers of organi5ations today do not know w%at s&ecific kinds of knowledge t%e indi.iduals in t%eir organi5ation know< =%is common state of affairs is reflected in t%e lament usually attributed to e9ecuti.es of 0ewlett(7ackard in t%e 1820s@ XIf we only knew w%at we know, we could conFuer t%e world<A 3s firms become larger, more knowledge(intensi.e, and more globally dis&ersed, t%e need for t%eir managers to Xknow w%at we knowA is becoming acute< =%us a common initiati.e wit%in t%e tacit knowledge a&&roac% is usually some effort to im&ro.e understanding of w%o knows about w%at in an organi5ation ( an effort t%at is sometimes described as an effort to create Xknow(w%oA forms of knowledge< 3n e9am&le of suc% an effort is t%e creation wit%in 7%ili&s, t%e global electronics com&any, of a Xyellow &agesA listing e9&erts wit% different kinds of knowledge wit%in 7%ili&sA many business units< =oday on t%e 7%ili&s intranet one can ty&e in t%e key words for a s&ecific knowledge domain ( say, for e9am&le, knowledge about t%e design of o&tical &icku& units for D;D>D &layers and recorders ( and t%e yellow &ages will retrie.e a listing of t%e &eo&le wit%in 7%ili&s worldwide w%o %a.e stated t%at t%ey %a.e suc% knowledge< ontact information is also &ro.ided for eac% &erson listed, so t%at anyone in 7%ili&s w%o wants to know more about t%at kind of knowledge can get in touc% wit% listed indi.iduals< 3n e9am&le of t%e tacit knowledge a&&roac% to transferring knowledge wit%in a global organi5ation is &ro.ided by =oyota< W%en =oyota wants to transfer knowledge of its &roduction system to new em&loyees in a new assembly factory, suc% as t%e factory recently o&ened in >alenciennes, $rance, it ty&ically selects a core grou& of two to t%ree %undred new em&loyees and sends t%em for se.eral mont%sA training and work on t%e assembly line in one of =oyotaAs e9isting factories< 3fter se.eral mont%s of studying t%e &roduction system and working alongside e9&erienced =oyota assembly(line workers, t%e new workers are sent back to t%e new factory site< =%ese re&atriated workers are accom&anied by one or two %undred long(term, %ig%ly e9&erienced =oyota workers, w%o will t%en work alongside all t%e new em&loyees in t%e new factory to assure t%at knowledge of =oyotaAs finely tuned &roduction &rocess is fully im&lanted in t%e new factory< =oyotaAs use of Iuality ircles also &ro.ides an e9am&le of t%e tacit knowledge a&&roac% to creating new knowledge< 3t t%e end of eac% work week, grou&s of =oyota &roduction workers s&end one to two %ours analy5ing t%e &erformance of t%eir &art of t%e &roduction system to identify actual or &otential &roblems in Fuality or &roducti.ity< 1ac% grou& &ro&oses XcountermeasuresA to correct N o&yrig%t >irtual :ni.ersity of 7akistan 2#2Knowledge Management EM!M=(/#0 >: identified &roblems, and discusses t%e results of countermeasures taken during t%e week to address &roblems identified t%e week before< =%roug% &ersonal interactions in suc% Iuality ircle grou& settings, =oyota em&loyees s%are t%eir ideas for im&ro.ement, de.ise ste&s to test new ideas for im&ro.ement, and assess t%e results of t%eir tests< =%is knowledge management &ractice, w%ic% is re&eated weekly as an integral &art of t%e =oyota &roduction system, &rogressi.ely identifies, eliminates and e.en &re.ents errors< 3s im&ro.ements de.elo&ed by Iuality ircles are accumulated o.er many years, =oyotaAs &roduction system %as become one of t%e %ig%est(Fuality &roduction &rocesses in t%e world B+&ear and )owen 1888C< =%e e9&licit knowledge a&&roac% In contrast to t%e .iews %eld by t%e tacit knowledge a&&roac%, t%e e9&licit knowledge a&&roac% %olds t%at knowledge is somet%ing t%at can be e9&lained by indi.iduals ( e.en t%oug% some effort and e.en some forms of assistance may sometimes be reFuired to %el& indi.iduals articulate w%at t%ey know< 3s a result, t%e e9&licit knowledge a&&roac% assumes t%at t%e useful knowledge of indi.iduals in an organi5ation can be articulated and made e9&licit< Working from t%is &remise, t%e e9&licit knowledge a&&roac% also belie.es t%at formal organi5ational &rocesses can be used to %el& indi.iduals articulate t%e knowledge t%ey %a.e to create knowledge assets< =%is a&&roac% also %olds t%at e9&licit knowledge assets can t%en be disseminated wit%in an organi5ation t%roug% documents, drawings, standard o&erating &rocedures, manuals of best &ractice, and t%e like< Information systems are usually seen as &laying a central role in facilitating t%e dissemination of e9&licit knowledge assets o.er com&any intranets or between organi5ations .ia t%e Internet< :sually accom&anying t%e .iews t%at knowledge can be made e9&licit and managed e9&licitly is t%e belief t%at new knowledge can be created t%roug% a structured, managed, scientific learning &rocess< 19&eriments and ot%er forms of structured learning &rocesses can be designed to remedy im&ortant knowledge deficiencies, or market transactions or strategic &artnering may be used to obtain s&ecific forms of needed knowledge or to im&ro.e an organi5ationAs e9isting knowledge assets< =%e recommendations for knowledge management &ractice usually &ro&osed by researc%ers and consultants working wit%in t%e e9&licit knowledge a&&roac% focus on initiating and sustaining organi5ational &rocesses for generating, articulating, categori5ing and systematically le.eraging e9&licit knowledge assets< +ome e9am&les of knowledge management &ractice in t%is mode %el& to illustrate t%is a&&roac%< In t%e 1880s, Motorola was t%e global leader in t%e market for &agers< =o maintain t%is leaders%i& &osition, Motorola introduced new generations of &ager designs e.ery 12(1* mont%s< 1ac% new &ager generation was designed to offer more ad.anced features and o&tions for customi5ation t%an t%e &receding generation< # In addition, a new factory wit% %ig%er(s&eed, more fle9ible assembly lines was designed and built to &roduce eac% new generation of &ager< =o sustain t%is %ig% rate of &roduct and &rocess de.elo&ment, Motorola formed teams of &roduct and factory designers to design eac% new generation of &ager and factory< 3t t%e beginning of t%eir &roKect, eac% new team of designers recei.ed a manual of design met%ods and tec%niFues from t%e team t%at %ad de.elo&ed t%e &re.ious generation of &ager and factory< =%e new team would t%en %a.e t%ree deli.erables at t%e end of t%eir &roKect@ B1C an im&ro.ed and more configurable ne9t(generation &ager design, B2C t%e design of a more efficient and fle9ible assembly line for t%e factory t%at would &roduce t%e new &ager, and B#C an im&ro.ed design manual t%at incor&orated t%e design knowledge &ro.ided to t%e team in t%e manual it recei.ed ( &lus t%e new and im&ro.ed design met%ods t%at t%e team %ad de.elo&ed to meet t%e &roduct and &roduction goals for its &roKect< =%is manual would t%en be &assed on to t%e ne9t design team gi.en t%e task of de.elo&ing t%e ne9t generation of &ager and its factory< In t%is way, Motorola soug%t to make e9&licit and ca&ture t%e knowledge de.elo&ed by its engineers during eac% &roKect and to systematically le.erage t%at knowledge in launc%ing t%e work of t%e ne9t &roKect team< In addition to its tacit knowledge management &ractice of mo.ing new em&loyees around to transfer knowledge of its &roduction system, =oyota also follows a %ig%ly disci&lined e9&licit knowledge management &ractice of documenting t%e tasks t%at eac% team of workers and eac% indi.idual worker is asked to &erform on its assembly lines< =%ese documents &ro.ide a detailed descri&tion of %ow eac% task is to be &erformed, %ow long eac% task s%ould take, t%e seFuence of ste&s to be followed in &erforming eac% task, and t%e ste&s to be taken by eac% worker in c%ecking %is or %er own work B+&ear N o&yrig%t >irtual :ni.ersity of 7akistan 2#8Knowledge Management EM!M=(/#0 >: and )owen 1888C< W%en im&ro.ements are suggested by sol.ing &roblems on t%e assembly line as t%ey occur or in t%e weekly Iuality ircle meetings of =oyotaAs teams of assembly(line workers, t%ose suggestions are e.aluated by =oyotaAs &roduction engineers and t%en formally incor&orated in re.ised task descri&tion documents< In addition to de.elo&ing well(defined and documented &rocess descri&tions for routine, re&etiti.e &roduction tasks, some organi5ations %a.e also created e9&licit knowledge management a&&roac%es to su&&ort more creati.e tasks suc% as de.elo&ing new &roducts< In t%e %rysler unit of Daimler%rysler or&oration, for e9am&le, se.eral X&latform teamsA of #00(/00 de.elo&ment engineers %a.e res&onsibility for creating t%e ne9t(generation &latforms' on w%ic% %ryslerAs future automobiles will be based< 1ac% &latform team is free to acti.ely e9&lore and e.aluate alternati.e design solutions for t%e many different tec%nical as&ects of t%eir .e%icle &latform< 0owe.er, eac% &latform team is also reFuired to &lace t%e design solution it %as selected for eac% as&ect of t%eir .e%icle &latform in a X)ook of KnowledgeA on %ryslerAs intranet< =%is catalogue of de.elo&ed design solutions is t%en made a.ailable to all &lat(form teams to consult in t%eir de.elo&ment &rocesses, so t%at good design solutions de.elo&ed by one &latform team can also be located and used by ot%er &latform teams< 4t%er firms %a.e taken t%is e9&licit knowledge management a&&roac% to managing knowledge in &roduct de.elo&ment &rocesses e.en furt%er< $or e9am&le, !1 $anuc 3utomation, one of t%e worldAs leading industrial automation firms, de.elo&s design met%odologies t%at are a&&lied in t%e design of new kinds of com&onents for t%eir factory automation systems< In effect, instead of lea.ing it u& to eac% engineer in t%e firm to de.ise a design solution for eac% new com&onent needed, !1 $anucAs engineers work toget%er to create detailed design met%odologies for eac% ty&e of com&onent t%e firm uses< =%ese design met%odologies are t%en encoded in software and com&uteri5ed so t%at t%e design of new com&onent .ariations can be automated< Desired &erformance &arameters for eac% new com&onent .ariation are entered into t%e automated design &rogram, and !1 $anucAs com&uter system automatically generates a design solution for t%e com&onent< In t%is way, !1 $anuc tries to make e9&licit and ca&ture t%e design knowledge of its engineers and t%en to systematically re(use t%at knowledge by automating most new com&onent design tasks< 3d.antages and disad.antages of tacit .ersus e9&licit knowledge a&&roac%es -ike most alternati.e a&&roac%es to managing, eac% of t%e two knowledge management a&&roac%es we %a.e discussed %as ad.antages and disad.antages< 3d.antages and disad.antages of t%e tacit knowledge a&&roac% 4ne of t%e main ad.antages of t%e tacit knowledge a&&roac% is t%at it is a relati.ely easy and ine9&ensi.e way to begin managing knowledge< =%e essential first ste& is relati.ely sim&le ( identify w%at eac% indi.idual in t%e organi5ation belie.es is t%e s&ecific kind of knowledge %e or s%e &ossesses< Managers 3d.antages and disad.antages of tacit .ersus e9&licit knowledge management a&&roac% N o&yrig%t >irtual :ni.ersity of 7akistan 2'0Knowledge Management EM!M=(/#0 >: =acit knowledge a&&roac% 3d.antages@ Relati.ely easy and ine9&ensi.e to begin< 1m&loyees may res&ond well to recognition of t%e BclaimedC knowledge< -ikely to create interest in furt%er knowledge management &rocesses< Im&ortant knowledge ke&t in tacit form may be less likely to XleakA to com&etitors< Disad.antages@ Indi.iduals may not %a.e t%e knowledge t%ey claim to %a.e< Knowledge &rofiles of indi.iduals need freFuent u&dating< 3bility to transfer knowledge constrained to mo.ing &eo&le, w%ic% is costly and limits t%e reac% and s&eed of knowledge dissemination wit%in t%e organi5ation< 3n organi5ation may lose key knowledge if key &eo&le lea.e< 19&licit knowledge a&&roac% 3d.antages@ 3rticulated knowledge Be9&licit knowledge assetsC may be mo.ed instantaneously anytime anyw%ere by information tec%nologies< odified knowledge may be &ro(acti.ely disseminated to &eo&le w%o can use s&ecific forms of Knowledge< Knowledge t%at %as been made e9&licit can be discussed, debated and im&ro.ed< Making knowledge e9&licit makes it &ossible to disco.er knowledge deficiencies in t%e organi5ation< Disad.antages@ onsiderable time and effort may be reFuired to %el& &eo&le articulate t%eir knowledge< 1m&loyment relations%i& wit% key knowledge workers may %a.e to be redefined to moti.ate knowledge articulation< 19&ert committees must be formed to e.aluate e9&licit knowledge assets< 3&&lication of e9&licit knowledge t%roug%out an organi5ation must be assured by ado&tion of best &ractices< 0andbook on t%e knowledge economy can t%en use t%is knowledge to assign indi.iduals to key tasks or to com&ose teams wit% a&&ro&riate sets of knowledge to carry out a &roKect, to im&ro.e &erformance in current &rocesses, or to try to create new knowledge in t%e organi5ation< 3s 7%ili&s did wit% its intranet(based Xyellow &ages,A managers may also elect to create an o&en database listing t%e knowledge claimed by indi.iduals in t%e organi5ation to facilitate knowledge s%aring between indi.iduals< 3 tacit knowledge a&&roac% may also lead to im&ro.ements in em&loyee satisfaction and moti.ation w%en an organi5ation XofficiallyA recogni5es and makes .isible in t%e organi5ation t%e kinds of knowledge t%at indi.idual workers claim to %a.e< In addition, t%e tacit knowledge a&&roac% is likely to a.oid some of t%e &ractical and moti.ational difficulties t%at may be encountered in trying to secure t%e coo&eration of indi.iduals in making t%eir knowledge e9&licit Bdiscussed belowC< 3 furt%er ad.antage often claimed for tacit knowledge management a&&roac%es deri.es from t%e .iew t%at making knowledge e9&licit increases t%e risk t%at knowledge will be XleakedA from an organi5ation, so t%at lea.ing knowledge in tacit form also %el&s to &rotect a firmAs &ro&rietary knowledge from diffusing to com&eting organi5ations< B=%e &otential disad.antages of lea.ing knowledge in tacit form are summari5ed below<C Most seriously, lea.ing knowledge tacit in t%e %eads of key indi.iduals creates a risk t%at t%e organi5ation may lose t%at knowledge if any of t%ose indi.iduals becomes inca&acitated, lea.es t%e organi5ation, or ( in t%e worst case ( is recruited by com&etitors<
3d.antages and disad.antages of t%e e9&licit knowledge a&&roac% In general, t%e ad.antages and disad.antages of t%e e9&licit knowledge a&&roac% constitute a Xmirror imageA of t%e ad.antages and disad.antages of t%e tacit knowledge a&&roac%< W%ereas t%e tacit knowledge a&&roac% is relati.ely easy to start and use, but %as im&ortant limitations in t%e benefits it can bring, t%e e9&licit knowledge a&&roac% is muc% more c%allenging to start, but offers greater &otential benefits in t%e long term< -et us first consider t%e long(term ad.antages of t%e e9&licit knowledge management a&&roac%, and t%en t%e c%allenges t%at %a.e to be o.ercome to start and sustain t%is a&&roac% in an organi5ation< N o&yrig%t >irtual :ni.ersity of 7akistan 2'1Knowledge Management EM!M=(/#0 >: 7er%a&s t%e main ad.antage of t%e e9&licit knowledge a&&roac% is t%at once an indi.idual articulates %is or %er knowledge in a document, drawing, &rocess descri&tion, or ot%er form of e9&licit knowledge asset, it s%ould be &ossible t%roug% use of information systems to Fuickly disseminate t%at knowledge t%roug%out an organi5ation or indeed anyw%ere in t%e world< In effect, con.erting tacit knowledge into e9&licit knowledge creates an asset t%at is a.ailable 2';" and is free from t%e limitations of time and s&ace t%at constrain t%e dissemination of tacit knowledge by mo.ing indi.iduals< Moreo.er, knowledge t%at %as been made e9&licit wit%in an organi5ation can often be more carefully codified and more effecti.ely le.eraged t%an tacit knowledge assets< =o codify some forms of knowledge is to categori5e and order t%e knowledge so t%at im&ortant interrelations%i&s between different kinds of knowledge wit%in t%e firm can be identified< $or e9am&le, forms of knowledge t%at are related by s%aring a similar t%eoretical or &ractical knowledge base can be identified, as can forms of Bcom&lementaryC knowledge t%at are interrelated by being used toget%er in an organi5ationAs &rocesses< 4nce t%e .arious forms of e9&licit knowledge in an organi5ation are codified in t%is way, knowledge created in one &art of an organi5ation can be &roacti.ely le.eraged t%roug% information systems to &eo&le and grou&s elsew%ere in t%e organi5ation t%at can benefit from %a.ing t%at knowledge< Moreo.er, by disseminating some instance of e9&licit knowledge to ot%er indi.iduals w%o %a.e e9&ertise in t%at knowledge domain, t%e e9&licit knowledge can be discussed, debated, tested furt%er and im&ro.ed, t%ereby stimulating im&ortant XincrementalA forms of organi5ational learning &rocesses< +uc% &rocesses also %el& to identify w%ic% indi.iduals in t%e organi5ation are ca&able of making significant contributions to t%e organi5ationAs knowledge base, and w%ic% are not< 3n im&ortant furt%er ad.antage of systematically articulating and codifying an organi5ationAs knowledge is t%at t%is &rocess makes an organi5ationAs current knowledge base more .isible and analy5able, and t%is %el&s an organi5ation to disco.er deficiencies in its knowledge assets< In effect, by making an organi5ationAs current knowledge base more .isible, so t%at t%e organi5ation can begin to see more clearly w%at knowledge it does %a.e, it s%ould be &ossible for t%at organi5ation to begin to see more clearly w%at knowledge it does not %a.e< $ocused, structured, managed learning &rocesses to remedy im&ortant knowledge deficiencies can t%en be launc%ed and may lead to more XradicalA forms of organi5ational learning< 4nce an organi5ation establis%es &rocesses for articulating, codifying and le.eraging e9&licit knowledge assets, t%e systematic dissemination of e9&licit knowledge wit%in t%e organi5ation s%ould minimi5e t%e risk t%at it will lose .ital knowledge if key indi.iduals become una.ailable or lea.e t%e organi5ation< =o obtain t%e &otentially significant benefits of an e9&licit knowledge management a&&roac%, %owe.er, a number of organi5ational c%allenges must be o.ercome< =%ese c%allenges arise &rimarily in assuring adeFuate articulation, e.aluation, a&&lication and &rotection of knowledge assets< Indi.iduals may not %a.e sufficient skill or moti.ation to articulate t%eir useful knowledge< Indi.iduals .ary greatly in t%e &recision wit% w%ic% t%ey can state t%eir ideas, and some indi.iduals ( &er%a&s many ( may need organi5ational su&&ort to adeFuately articulate t%eir knowledge into useful knowledge assets< 7ro.iding organi5ational su&&ort to indi.iduals to articulate t%eir knowledge may %a.e a significant financial cost and ine.itably takes time< 3n e.en more fundamental c%allenge arises w%en an indi.idual is ca&able of articulating %is or %er knowledge, but resists reFuests by t%e organi5ation to do so< 3t t%e %eart of suc% resistance is usually a belief t%at an indi.idualAs Kob security or &osition of influence in an organi5ation de&ends on t%e tacit knowledge t%at %e or s%e %as and t%at t%e organi5ation needs< +uc% beliefs result in fear t%at full re.elation of an indi.idualAs im&ortant knowledge will be followed by dismissal or loss of influence in an organi5ation, because ( &resumably ( t%e indi.idual will no longer be as necessary or im&ortant to t%e organi5ation< 4.ercoming suc% fears is likely to reFuire a &rofound ret%inking of t%e em&loyment relations%i& in many organi5ations, es&ecially wit% regard to key knowledge workers< New em&loyment norms may %a.e to be defined and institutionali5ed t%at bot% seek and reward ongoing learning by indi.iduals and t%eir continuing contributions of e9&licit knowledge to t%e organi5ation< 4rgani5ations must also meet t%e c%allenge of adeFuately e.aluating knowledge t%at %as been made e9&licit by indi.iduals< Indi.iduals wit% different backgrounds, education and organi5ational roles may %a.e .arying sets of knowledge, wit% resulting differences in t%eir dee&ly %eld ideas about t%e most effecti.e way to get somet%ing done< +uc% differences will be re.ealed in t%e &rocess of making t%eir ideas and knowledge e9&licit, and managers im&lementing e9&licit knowledge a&&roac%es must establis% N o&yrig%t >irtual :ni.ersity of 7akistan 2'2Knowledge Management EM!M=(/#0 >: a &rocess for e.aluating t%e indi.idual knowledge t%at %as been made e9&licit and for resol.ing conflicting knowledge beliefs of indi.iduals< 4rgani5ations wit% e9&erience in managing t%is &rocess %a.e found t%at t%e &eo&le in.ol.ed in suc% e.aluation &rocesses must be res&ected wit%in t%e organi5ation for t%eir e9&ertise, obKecti.ity and im&artiality< In most organi5ations, t%e time of suc% &eo&le is usually bot% .ery .aluable and in s%ort su&&ly, and in.ol.ing suc% &eo&le in e.aluating e9&licit knowledge in many forms may im&ose a significant cost on t%e organi5ation Balt%oug% t%e resulting benefits may far outweig% t%e costsC< +ince knowledge is useful to an organi5ation only w%en it is a&&lied, a furt%er c%allenge in im&lementing e9&licit knowledge management a&&roac%es is assuring t%at knowledge articulated in one &art of t%e organi5ation is not reKected or ignored by ot%er &arts of t%e organi5ation sim&ly because t%ey &refer to stay close to t%eir own familiar knowledge base ( t%at is, because of an intra( organi5ational Xnot in.ented %ereA syndrome< 4ne a&&roac% to managing t%is concern is t%e im&lementation of organi5ational Xbest knowledgeA and Xbest &racticeA &ractices< In t%is &ractice, t%e committee of e9&erts res&onsible for a knowledge e.aluation &rocessBdiscussed abo.eC e9amines bot% t%e t%eoretical knowledge and &ractical a&&lications of knowledge articulated wit%in t%e organi5ation, and defines t%e Xbest knowledgeA and Xbest &racticeA in a&&lying t%at knowledge currently a.ailable wit%in t%e organi5ation< =%e .arious grou&s wit%in t%e organi5ation to w%om t%is knowledge or &ractice a&&lies are t%en reFuired eit%er to ado&t and use t%e currently defined Xbest knowledgeA and Xbest &racticeA, or to demonstrate con.incingly to t%e committee of e9&erts t%at t%ey %a.e de.elo&ed better knowledge or better &ractice in a&&lying knowledge< If a grou& &ersuades t%e e9&ert committee t%at t%eir knowledge or &ractice is better t%an t%e currently defined Xbest knowledgeA or Xbest &racticeA in t%e organi5ation, t%e e9&ert committee t%en modifies t%e current Xbest knowledgeA or Xbest &racticeA for t%e organi5ation in lig%t of t%e new knowledge t%ey %a.e recei.ed from t%e grou&< Im&lementing suc% a &rocess for assuring t%at an organi5ationAs best knowledge and &ractice are actually used reFuires a %ig% degree of organi5ational disci&line in ad%ering to t%e organi5ationAs current best knowledge and best &ractice, and suc% disci&line will normally reFuire building a %ig% degree of organi5ational trust t%at t%e &rocess of t%e e9&ert committee for deciding best knowledge and best &ractice is obKecti.e, im&artial and trans&arent< $inally, an organi5ation t%at creates e9&licit knowledge assets must take care t%at t%ose assets remain wit%in t%e boundaries of t%e organi5ation and do not XleakA to ot%er organi5ations, es&ecially com&etitors< +ecurity measures of t%e ty&e most organi5ations now routinely use to &rotect t%eir databases must be e9tended to &ro.ide security for t%e organi5ationAs e9&licit knowledge base< N o&yrig%t >irtual :ni.ersity of 7akistan 2'#
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