KNOWLEDGE MANAGEMENT

TRIMESTER 6: PGDM 2011-13 By FIRDAUS KHAN Assoc. Professor (Finance & Corp. Training) ICBM-SBE, AP, India

4/30/2013

firdaus@icbm.ac.in

Data Overload? Or Knowledge Revolution?

Every day, we create 2.5 quintillion bytes of data so much that 90% of the data in the world today has been created in the last two years alone! 1.8 zettabytes is being created & replicated this year alone. It would require 57.5 billion 32 GB iPads to store & will be worth about $34.4 trillion - equivalent to the GDP of USA, Japan, China, Germany, France, UK & Italy combined!!
firdaus@icbm.ac.in

Knowledge Shared = (Knowledge)2

firdaus@icbm.ac.in

HOW HAS THE MODERN WORK ENVIRONMENT CHANGED?

firdaus@icbm.ac.in

Criteria

Traditional Work

Knowledge Work

Orientation Data oriented Focus Internal Command Structure Process

Role Workspace Location of value Data Handling

Communication oriented Cooperation, Coopetition, Networks Decentralized Centralized Network Hierarchy Unstructured, ad-hoc Structured, workflows deterministic 1 position, 1 person Multiple roles per person Fixed work station Mobile, virtual, multiple workstations, telecommuting Things Flows Synchronization, info Coordination of sharing, search & access, integrity & retrieval control of redundancy
firdaus@icbm.ac.in

DIMENSIONS OF KNOWLEDGE WORK

firdaus@icbm.ac.in

DATA vs. INFORMATION vs. KNOWLEDGE

firdaus@icbm.ac.in

Data, Information & Knowledge

Data refers to facts, which have not been structured & have not been interpreted, therefore have no meaning. Information is relevant, structured and meaningful data. There is a sender & a receiver. It can be stored on media such as paper, computer, audio tape, etc. Knowledge is factual information acquired through personal experience. It has a purpose & intent but is emergent & socially constructed. It exists only in peoples heads.
firdaus@icbm.ac.in

FROM DATA TO WISDOM

Wisdom
INSIGHT

Knowledge
CONTEXT

Information
MEANING

Data
firdaus@icbm.ac.in

TYPES OF KNOWLEDGE
TACIT KNOWLEDGE EXPLICIT KNOWLEDGE EMBRAINED KNOWLEDGE

EMBODIED KNOWLEDGE
ENCULTURED KNOWLEDGE EMBEDDED KNOWLEDGE ENCODED KNOWLEDGE

firdaus@icbm.ac.in

firdaus@icbm.ac.in

firdaus@icbm.ac.in

KM DRIVERS
Fragmentation of Knowledge Need for Speed Cycle Time Reduction

E-Learning

KM
Content Management Knowledge Attrition Globalization & Knowledge Merging
firdaus@icbm.ac.in

KM IS INTER-DISCIPLINARY
Cognitive science Relational and object databases, Expert systems, Artificial Intelligence, Computer-supported collaborative work (groupware), object-oriented information modeling Library and information science Technical writing, Document management Decision support systems, Simulation Semantic networks Organizational science, performance support systems Electronic publishing technology, hypertext, internet
firdaus@icbm.ac.in

KNOWLEDGE MANAGEMENT
Knowledge Management can be defined as a systematic process that creates, captures, shares, and analyzes knowledge in ways that directly improve organizational performance. It comprises a range of strategies and practices used in an organization to identify, create, represent, distribute, and enable the adoption of insights and experiences. It is the ability to get the right information to the right people at the right time, and in the right place, so that an organization can be operated smoothly and efficiently.
firdaus@icbm.ac.in

COMPONENTS OF KM CYCLE

firdaus@icbm.ac.in

KM TECHNOLOGIES

firdaus@icbm.ac.in

KM LIFE CYCLE
Knowledge is acquired or captured using intranets, extranets, groupware, web conferencing, and document management systems. An organizational memory is formed by refining, organizing, and storing knowledge using structured repositories such as data warehouses. Knowledge is distributed through education, training programs, automated knowledge based systems, expert networks. Knowledge is applied or leveraged for further learning and innovation via mining of the organizational memory and the application of expert systems such as decision support systems.
firdaus@icbm.ac.in

TOOLS USED IN EACH PHASE OF KM

firdaus@icbm.ac.in

OUTCOMES OF KM
Foster innovation and organizational learning by encouraging the free flow of ideas Improve decision making Improve customer service by streamlining response time Boost revenues by getting products and services to market faster Enhance employee retention rates by recognizing the value of employees' knowledge and rewarding them for it Streamline operations and reduce costs by eliminating redundant or unnecessary processes
firdaus@icbm.ac.in

OUTCOMES OF KM (contd.)
Achieving shorter new product development cycles Leveraging the expertise of people across the organization Increasing network connectivity between internal and external individuals Managing business environments and allowing employees to obtain relevant insights and ideas appropriate to their work Managing intellectual capital and intellectual assets in the workforce (such as the expertise and know-how possessed by key individuals)
firdaus@icbm.ac.in

KM IN PRACTICE
Large revenue gains & efficiency improvements have been recorded by many major companies. Ford Motor Company accelerated its conceptto-production time from 36 months to 24 months. Dow Chemical Company saved $40 million a year in the re-use of patents. Chase Manhattan Bank used CRM KM initiatives to increase its annual revenue by 15% Pfizer credits KM practices for discovering the hidden benefits of the Viagra drug.
firdaus@icbm.ac.in

CAN KNOWLEDGE CREATE COMPETITIVE ADVANTAGE?

firdaus@icbm.ac.in

An organizations capacity to improve existing skills and learn new ones is the most defensible competitive advantage of all. - C.K. Prahlad

firdaus@icbm.ac.in

firdaus@icbm.ac.in

KNOWLEDGE STRATEGY
A Knowledge Strategy refers to the planned balancing of an organizations knowledge resources & capabilities with the knowledge required for providing products and services superior to those of its competitors. (Zack 1999b,131)

firdaus@icbm.ac.in

WHAT STRATEGIC OPTIONS DOES A FIRM HAVE IN TERMS OF A KNOWLEDGE STRATEGY?

firdaus@icbm.ac.in

Key Aspects of a Knowledge Strategy

Which business areas should be the focus? Which type of knowledge should be captured? Who is the target group? Which business process will the knowledge strategy be applied to? Will the orientation be more human or technological?
firdaus@icbm.ac.in

KM Strategy Focusing On Key Business Areas

CRM

Virtual Organization

Post Merger Integration

Improve organizationwide handling of knowledge

R&D

Value Chain Mgt.

Geographical Expansion
firdaus@icbm.ac.in

KM Strategy Based on Type of Knowledge

Degree of Increase in Knowledge:
Primary Source of Knowledge Speed of Learning
Exploitation Exploration Internal External

Fast Slow
Broad Narrow Tacit Explicit Human Technological

Knowledge Base
Type of Knowledge to Focus on Orientation

firdaus@icbm.ac.in

KM Strategy Based On Target Group

Employee Rank Employee Life Cycle Organizational Scope

Employee

New recruits

Core Group

Manager

Retirees

Organization

Executive

To-bePromoted Types

Organization & Partners

Unlimited

firdaus@icbm.ac.in

KM Strategy Based on Business Process

Mgt. vs. Core vs. Service Processes

Simple vs. Highly Complex Processes

One process vs. Few vs. All processes

Which business process to target?

firdaus@icbm.ac.in

firdaus@icbm.ac.in

EMPIRICAL ASPECTS Strategic KM Initiatives Undertaken by Organizations

firdaus@icbm.ac.in

Map Sources of Internal Expertise

Establish New Knowledge Roles Create a Virtual Work Environment Create Networks of Knowledge Workers Support knowledge Flows In an Organization

Expert Directories Skill Databases Yellow Pages based on Knowledge Areas Separate Unit headed by CKO Roles for Knowledge related tasks (K. Broker/Engineer, Subject Matter Expert) Greater number of mobile workers Disrupted social connections in a work community

People working on same problem areas People having complementary knowledge

Balancing Push & Pull of Knowledge Connect seekers & providers of Knowledge
firdaus@icbm.ac.in

Transfer of Knowledge & Best Practices

Making Knowledge available at points of action Spread the good word to as many in the network

Personal Responsibility for Knowledge

Customer Focused Knowledge

Pull approach, not push. No micro-managing Each responsible for renewing & sharing own knowledge assets

Capture knowledge about customers Provide customer-centric solutions, increase customer loyalty

Innovation & Knowledge Creation

Intellectual Asset Management Strategy

Basic & Applied R&D Employee Motivation & Insights for Innovation

Enterprise level management of patents, technology, practices, etc Valuating, safekeeping, marketing of K. assets firdaus@icbm.ac.in

OPERATIONAL RISKS IN A KNOWLEDGE STR.

DEPENDENCY

LIMITED QUALITY

KNOWLEDGE RISKS

INSUFFICIENT KNOWLEDGE TRANSFER

LOSS OF KNOWLEDGE ASSETS

firdaus@icbm.ac.in

Barriers to a Knowledge Strategy

Lack of motivation, ignorance or skilled incompetence of knowledge provider Lack of motivation or insufficient learning/retentive capacity or role constrained learning by knowledge seeker Insufficient context or ambiguity of causality of transferred knowledge Infrastructural and cultural inadequacies or hindrances
firdaus@icbm.ac.in

Factors Essential for the Success of a Knowledge Strategy

Holistic, integrated & standardized approach Knowledge Oriented Culture Management support Clear economic benefits Exact vision & language Effective aids for motivation Appropriate process orientation ICT & organizational infrastructure Stable knowledge structures Continuous participation of employees
firdaus@icbm.ac.in

Knowledge has to be improved, challenged, and increased constantly, or it vanishes. Peter Drucker
firdaus@icbm.ac.in

Sources
http://www.unc.edu/~sunnyliu/inls258/Introd uction_to_Knowledge_Management.html Knowledge Management Systems - Ronald Maier (3rd Edition, Springer) Mashable.com

firdaus@icbm.ac.in