working smarter, not harder chapter 1. 2 objectives what is knowledge management? why knowledge...
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Working Smarter, Not Harder
Chapter 1
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OBJECTIVES
• What is Knowledge Management?
• Why Knowledge Management
• KM Myths
• Implications for Knowledge Management
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Knowing ignorance is strengthIgnoring knowledge is sickness
—Lao Tsu
老子道德經第七十一章知不知上 不知知病夫唯病病 是以不病聖人不病 以其病病
Knowing ignorance is strength.
Ignoring knowledge is sickness.
If one is sick of sickness, then one is not sick.
The sage is not sick because he is sick of sickness. Therefore he is not sick.
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Working Smarter, Not Harder
• Overlapping Human/Organizational/ Technological factors in KM:– People (workforce)– Organizational Processes– Technology (IT infrastructure)
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OVERLAPPING FACTORS OF KM
• Knowledge
PEOPLE
TECHNOLOGY
ORGANIZATIONALPROCESSES
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OVERLAPPING FACTORS OF KM
• The ideal organization is one where people exchange knowledge across functional areas of the business by using technology and established processes. The exchange may be for policy formulation and strategy, for training and development, or for problem solving in teams. None of the three areas can function independently of one another.
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WHAT IS KNOWLEDGE MANAGEMENT?
• Process of capturing and making use of a firm’s collective expertise anywhere in the business
• Doing the right thing, NOT doing things right• Viewing company processes as knowledge
processes• Knowledge creation, dissemination, upgrade,
and application toward organizational survival• Part science, part art, part luck
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EXPLICIT AND TACIT KNOWLEDGE
Oral Communication“Tacit” Knowledge
50-95%
Information Request“Explicit” Knowledge
Explicit Knowledge Base5 %
Information Feedback
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THE KNOWLEDGE ORGANIZATION
Create
KnowledgeOrganization
Collect
Organize
Refine
Disseminate
Culture
Leadership
Techno-logy
IntelligenceMaintain
Competition
KnowledgeManagementProcess
KM Drivers
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THE KNOWLEDGE ORGANIZATION
• The middle layer addresses the KM life cycle
• A knowledge organization derives knowledge from customer, product, financial, and personnel practices knowledge.
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THE KNOWLEDGE ORGANIZATION
• Customer knowledge– Their needs, who to contact, customer buying power, etc.
• Product knowledge– The products in the market place, who is buying them, what prices
they are selling at, and how much money is spent on such products
• Financial knowledge– Capital resources, where to acquire capital and at what cost
• Personnel practices knowledge– The expertise available, the quality service they provide, and how
to go about finding experts, especially in customer service
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THE KNOWLEDGE ORGANIZATION
• Indicators of knowledge: thinking actively and ahead, not passively and behind
• Using technology to facilitate knowledge sharing and innovation
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IDEAL KNOWLEDGE MANAGEMENT
PEOPLE
KnowledgeBase
OutsideEnvironment
Existing methods/processes
Learning
Newideas
Conversion
Insights
KnowledgeCreation
OrganizationalBenefits
Codified Technology
• New products• New markets• Smarter problem-solving•Value-added innovation•Better quality customer service•More efficient processes•More experienced staff
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IDEAL KNOWLEDGE MANAGEMENT
• The ideal knowledge organization allows people to exchange knowledge across functional areas via technology and established processes
• Knowledge internalized and adopted within the culture of the organization
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DETERMINANTS OF KM SUCCESS
• People
• Sharing knowledge based on mutual trust
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WHY KNOWLEDGE MANAGEMENT?
• Sharing knowledge, a company creates exponential benefits from the knowledge as people learn from it
• Building better sensitivity to “brain drain”• Reacting instantly to new business opportunities • Ensuring successful partnering and core
competencies with suppliers, vendors, customers, and other constituents
• Shortens the learning curve
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THE DRIVERS
• Technology Drivers. – Data communications, networking, and wireless
transmission– Store, communicate, and exchange data at high speed
• Process Drivers– Elimination of duplicate mistakes– The way companies react to market changes (JIT)
• Personnel-Specific Drivers– Minimizing personnel turnover– Minimizing knowledge walkouts
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THE DRIVERS
• Knowledge-Related Drivers– Knowledge sharing knowledge transfer
• Financial Drivers– Knowledge defies economic theory, where
assets are subject to diminishing returns over the long run.
– Knowledge assets increase in value as more and more people use them.
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GOAL OF KM
• Produce a positive return on investment in people, processes, and technologies.
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INTERNET CONTRIBUTES TO THE USE OF KM
• The Internet is an incredible information source• With the World Wide Web, every user can share
and update information at will • The Internet uses a universal communication
standard protocol • The Internet provides quicker interaction and
communication with knowledge workers
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KEY CHALLENGES
• Explaining what KM is and how it can benefit a corporate environment
• Evaluate the firm’s core knowledge, by employee, by department, and by division
• Learning how knowledge can be captured, processed, and acted on
• Addressing the still neglected area of collaboration• Continue researching KM to improve and expand its
current capabilities• How to deal with tacit knowledge
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KM MYTHS• KM is not a fad. Knowing what you know or what
you need to know is not a fad. • KM and data warehouse are not the same. First,
data warehousing is a mere repository of data, not knowledge. It is critical for KM, because data warehousing is used in data mining and eliciting new information for new products, new customer demand, etc.
• KM is not a new concept. It has been practical since the early 1980s.
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KM MYTHS• KM is not technology, per se.It relies on technology
to expedite knowledge sharing and transfer. It is a unique way of thinking about work and about working.
• It is true that technology can store data, information, and knowledge, but it cannot guarantee that people will use it. Human intelligence is usually tied to tacit knowledge, which is in the human brain. Any exchange or sharing of such knowledge is done face-to-face, using specialized tools or methodologies.
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KM LIFE CYCLE
Four-Process View of KM:• Capturing – data entry, scanning, voice
input, interviewing, brainstorming• Organizing – cataloging, indexing, filtering,
linking, codifying• Refining – contexualizing, collaborating,
compacting, mining• Transfer – flow, sharing, alert, push
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OVERSIGHTS OR PITFALLS
• Failing to modify the compensation system to reward people working as a team
• Building a huge database that is supposed to cater to the entire company
• Viewing KM as a technology or a human resources area
• Placing too much emphasis on technology
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OVERSIGHTS OR PITFALLS
• Introducing KM into the organization via a simple project to minimize possible losses
• Pursuing KM without being ready
• Having poor leadership
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THE KM CYCLE AND THE ORGANIZATION
Organizational personnel
Organizational personnel
ManagementDecision making
Culture
Informationtechnology
KM Life Cycle. capture. gathering. organizing. refining. transfer
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ROLE OF TRUST IN THE KM LIFE CYCLE
• Trust supports the KM process by giving employees clear impression that reciprocity, free exchange, and proposing innovations will be recognized and fairly compensated.
• The bottom line is that one cannot have an open, candid dialogue with someone he/she does not trust.
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PROMOTING TRUST• Decentralize organization structure to allow decision
making by teamwork• Reduce control-based management and encourage
management by results• Revisit company’s mission statement and ethics
policy to demonstrate its new views about values • Assess and improve employee responsibilities and
accountability • Eliminate unnecessary directives or barriers• Install programs to improve employee commitment
to knowledge sharing
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THE WORLD OF RE-EVERYTHING
• Knowledge is productive only when captured in people’s mind
• Shareability requires decentralized intelligence
• We need to empower knowledge workers
• Top performers can be a problem; they are not the most humble
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• The Knowledge Business has already changed
• Are you in the knowledge business?
• How will you close your knowledge gap?
• Is your mind geared to re-think what you think you know?
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QUESTIONS FOR DISCUSSION
• Suppose you were asked to do a 15-minute presentation before the managers of a small retailer about the pros and cons of knowledge management. What would you say? Outline the content of your talk.
• A business manager, a programmer, and a psychologist all want to become KM designers. Which one do you feel will have the least difficulty? Why?
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QUESTIONS FOR DISCUSSION
• Search the Internet and current journals for surveys that show how well companies are adopting (or struggling with) KM. Report your findings to class.
Working Smarter, Not Harder
Chapter 1