The Importance of Knowledge Management Information Systems 1

Running head: THE IMPORTANCE OF KNOWLEDGE MANAGEMENT INFORMATION

SYSTEMS: BEST PRACTICE AND COMMUNITIES OF PRACTICES.

Walter A. Van Stone

Knowledge Management Information Systems

Address: 4607 Spring Creek

Arlington, TX 76017
Phone:
Email: vanstonew@netscape.net
 The Importance of Knowledge Management Information Systems 2

Abstract

Today, organizations are increasing their competitive advantage by recognizing the importance of

knowledge management; effective knowledge management has become the key to a firm’s

competitive success, externally and internally. The premise of knowledge management is based

mainly on three concepts; people, processes and technology. Some firms will adopt a people

focus; the interaction, knowledge, and environmental factors. Others will adopt an organizational

focus; optimization of design and work flow process. Others will focus on technology; creation

and integration of knowledge sharing. Thus firms must identify, create, design, distribute,

knowledge sharing practices. Therefore, this paper will attempt to research the effectiveness of

best practices and communities of practices in firms that establish knowledge management

information systems.

Introduction

Organizations are increasing their competitive advantage by recognizing the importance

of knowledge management. Therefore firms must initiate knowledge sharing practices. Some

firms will adopt a people focus such as communities of practice. People in CoPs freely express

their experiences and knowledge to improve on the challenges that confront them-they do not

become the challenge they take stock in the challenge-freely. CoPs are not new to the workforce;

in fact CoPs can be traced back to ancient time. As CoPs members share their knowledge and

experiences it becomes a way of how things get done-a common day-to-day practice.

KMIS starts with investing in ICT which allows firms to obtain and share knowledge

across its entire enterprise; creating and improving its competitive advantage. The intent is that

the internet and web-based application will alter the firm’s capacity to share and create lessons

learned and new knowledge through an electronic medium such as e-learning.

 The Importance of Knowledge Management Information Systems 3

E-learning has emerged as an imperative internet-base too to acquire, impart and share

knowledge in an organization. Although e-learning has its shortcomings it also reduces cost,

increase workforce productivity and motivates employees. Successful implementation of e-

learning hinges on the critical factor of integrating learning with relevance to work.

Organizations that implement knowledge sharing practices must also think about how

information and knowledge is managed. “HR manager can be instrumental in helping the

organization leverage knowledge-based resources for business results” (Leveraging HR and

Knowledge Management in a Challenging Economy”, 2009, p.1).

Like KMIS, a human resource information system “helps HR mangers perform HR

function in a more effective and systemic way using technology. With continued technological

breakthroughs HRIS systems are becoming increasingly advanced such as intranet HR shared-

service.” (Chandra, 2009, p.23). “Shared-services facilitate the sharing of both staff and

technology resources and advocates have claimed many benefits for the practice” (Redman et al.,

2007, p. 1486).

Communities of Practice

So what are communities of practice? According to Wenger and Snyder (2000) in short,

they are an assortment of individuals that informally shared their common interests or expertise

and passion for a collaborative endeavor. “People CoPs share their experiences and knowledge in

free-flowing, creative ways that foster new approaches to problems.” (p.140). In other words

they freely express their experiences and knowledge to improve on the challenges that confront

them-they do not become the challenge they take stock in the challenge-freely.

According to Koliba and Gajda (2009) “the term “community of practice” (CoP) has

been applied extensively across multiple social science disciplines and professional fields and
 The Importance of Knowledge Management Information Systems 4

has become a widely utilized theoretical construct since it was first introduced by Jean Lave and

Etienne Wenger in 1991” (p.97). The premise of CoP is that of legitimate peripheral

participation (Lave and Wenger, 1991); newbie’s that enter a group or community-a commonly

accepted domain-that do the effortless (peripheral)-outer edge-bottom of the totem pole-group

tasks in hopes of gaining experience and knowledge that is shared by the groups experts. Over

time and after gaining experience and knowledge the newbie’s status changes from newbie to an

expert and becomes part of the core group-moves up to the top of the totem pole. Thus through

legitimate peripheral participation, knowledge and experience is transferred by means of learning

practices; on-the-job-training (OJT) (Brown and Duguid, 1991; Lave and Wenger, 1991).

So how do you build a CoP? What their focus? What is their practice? How do they

progress? What is the outcome or value of CoPs? Initially, CoP was constructed on “informal

networks of people with the ability and the passion to further develop and organization’s core

competencies” (Wenger and Snyder, 2000, p.144), an informal learning practice. According

Lohman (2009) and who cites Merriam, Caffarella, and Baumgartner, 2007 work...“informal

learning can be either planned or unplanned and structured or unstructured. Examples of

informal learning include talking and sharing resources with others, searching the Internet, and

experimenting with new techniques or tools.” (p.43). However, in today’s global business

environment informal learning is a structured managed activity with accountability, goals and

management supervision. “To get experts to dedicate time to them, companies have to make sure

that communities contribute meaningfully to the organization and operate efficiently.”

(McDermott and Archibald, 2010, p.84).

Secondly, CoP focuses on a set of strategic context. A strategic context lets communities

find a legitimate place in an organization. At the organizational level, the focus is on creation of
 The Importance of Knowledge Management Information Systems 5

communities strategically; solving real challenges important to the organization that is aligned

with organizational strategies. At the community level it develops member’s capabilities built on

experience and exchange knowledge. (McDermot and Archibald 2010; Wenger and Snyder,

2000)

Thirdly, CoP practices…“drive strategy, generate new lines of business, solve problems,

promote the spread of best practices, develop people’s professional skills, and help companies

recruit and retain talent” (Wenger and Snyder, 2000, p.140). In short CoPs add value to an

organization in many ways.

Forth, CoPs create continuous process improvement through members that identify real

problems that can be solved quickly. Once the problem has been identified the progress to

implementation begins with indentifying commonalities across the entire enterprise for which

interviews are conducted to gather information and members of the CoP. After members are

indentified discussions “begin of plans for activities that will build individual and group

capabilities and advance the company’s strategic agenda.” (Wenger and Snyder, 2000, p.144).

Finally, the outcomes of CoPs create value; creating value to both the members and

organization. The short-term values for members are the building of self confidence, job

satisfaction, and the ability to access resources of expertise. The long-term values for members

create personal and professional development, recognized reputation, and an opportunity to

establish networks. With respect to the organizational short-term value CoPs identify and solve

problems, save time, promote knowledge sharing, create synergies across the enterprise, and

allow firms to reuse resources and lessons learned. In the long-term organizations create

innovation, indentify new strategies, become strategic, and retain talent. (McDermott and

Archibal, 2010; Koliba and Gajda, 2009; Wenger and Snyder, 2000).
 The Importance of Knowledge Management Information Systems 6

Origins of Communities of Practice

According to Wenger and Snyder (2000) Communities of practices date back “as far as

ancient times.” (p.140). For example the traditional Greece workforce was made up of

“corporation” of labors that had common interests and social functions such as religious,

celebration, and gods as well as the behavior of their business; members of the workforce

practice knowledge sharing through apprentices that promoted innovation (CoPs). Later during

Medieval times the Middle Ages guilds; they set standards and protected the interest of their

members similar to the modern day union. “Today’s communities of practice are different in one

important respect: instead of being composed primarily of people working on their own, they

often exist within large organizations” (p.140). Thus like in the past informal learning took place

among people and within organizations; face-to-face. However, today in addition to face-to-face

communication informal learning takes place through electronic medium. Nonetheless, there is a

need for knowledge sharing and knowledge management. (de Vries and Kukosch, 2009).

CoPs and Knowledge Sharing

Hemmasi and Csanda (2009); McDermott (1999) suggest that when firms design

community of practice “The organization should determine: (1) the kinds of knowledge that will

be shared in the group-i.e., explicit or tactic knowledge” (p.265). In CoPs knowledge sharing is

paramount among group members. As members share their knowledge and experiences it

becomes a way of how thing get done-a common day-to-day practice. An additional important

factor of knowledge sharing is participation of the group members. Dixon (2000) states that

CoPs permits firms to sweep away difficulty in sharing information that conventional

technology-based knowledge management frequently stumble upon. Armstrong and Hagel III

(1996) suggest that there is a real value to online communities with respect to knowledge
 The Importance of Knowledge Management Information Systems 7

sharing. However, firms have a wait and see attitude when it comes down to using internet

community building potential. Most CoPs use the internet as source supply-to gather

information. However, in order to have an active community of practice there is a need for the

use of the demand side of the internet-sharing of knowledge. (Armstrong and Hagel III, 1996)

Sharing Tacit Knowledge Online

Michael Polanyi’s philosophy of tacit knowledge is hinged on the “view of tacit

knowledge in the catchphrase “we can know more than we can tell”…Because people are not

consciously aware of this knowledge, it does not get articulated or written down but stays hidden

and tacit” (Hildrum, 2009, p.200).

So if we know more than we can tell how do we acquire and shared knowledge? Polanyi

suggest that we acquire knowledge by acclamation; getting to know unfamiliar surroundings-

motivation-a thrust for knowledge. “To hold such knowledge, he argues is an act deeply

committed to the conviction that there is something there to be learnt and discovered. And it is

tactic in the sense that it involves the personal enthusiasm and drive of the individual who holds

it” (Hildrum, 2009, p.201). With respect to sharing of tactic knowledge current research suggests

that sharing of tactic knowledge is developed and shared in communities of practices.

“Communities of practices (CoPs) are tightly knit groups of individuals who collaborate in

developing new knowledge about a shared practice and who meet fact-to-face (Brown and

Duguid, 1999)” (Hildrum, 2009, p.202). In addition to CoPs the author suggests that knowledge

sharing also takes place in a second type of practices known as networks of practice (NoP)

Networks of practice are groups of individuals, who do not meet face-to-face. In fact they

may never meet face-to-face; they exchange ideas and communicate via the internet on-line.

Thus NoPs differ in communication mediums and geographical boundaries. NoPs help
 The Importance of Knowledge Management Information Systems 8

experienced individuals establish knowledge sharing with peers, enhance and increase their

existing knowledge, and become known as experts in their specialized areas of practice.

(Hildrum, 2009).

Although there are differences in CoPs and NoP the common thread of both social

communities are information and communication technology (ICT). Like NoPs, CoPs also use

ICT to support their communications means such as emails for scheduling activities. On the other

hand NoPs are like CoPs in that once the communication and knowledge sharing networks (on-

line) are established across borders or regions they then become a CoP. Thus the importance for

firms to institute a knowledge management information system (KMIS) and invest in ICT that

will acquire and promote knowledge sharing practices. (Hildrum, 2009).

Knowledge Sharing and E-Learning

The importance of instituting a KMIS by investing in ICT allows firms to obtain and

share knowledge across its entire enterprise; thus a firm can create and strengthen its competitive

advantage. The intent is that the internet and web-based application will alter the firm’s capacity

to share and create lessons learned and new knowledge through an electronic medium such as e-

learning. (Benkler, 2006; McAfee, 2006; Dahlander et al., 2008; West and Lakhani, 2008;

Hildrum, 2009).

In the last decade “e-learning has emerged as an imperative internet-based tool to acquire,

impart and share knowledge in organizations…research shows that an increasing number of

firms…presently situate e-learning at the core of their knowledge management strategies”

(Hildrum, 2009, p.203). E-learning web-based internet technology systems allow the facilitation

of the demand and supply side of information seekers through the most advanced level of

knowledge and technology at anytime and anywhere. For example, communication systems such
 The Importance of Knowledge Management Information Systems 9

as instantaneous messaging, email, blogs, wikis, webcams, formal educational class, engineering

simulation tools, and interactive on line game technology. According to Hildrum (2009) “Boston

College is presently using interactive computer game technology to organize courses in advanced

software programming…professor and student interact and work together as digital avatars using

voice-over internet to talk or ask questions” (p.203).

Although an e-learning web-based internet system augments knowledge sharing it can

also detract from knowledge sharing. The main challenge is knowledge seeker motivation;

eagerness, and initiative to acquire or share knowledge. Other challenges such as

miscommunications due to text only communication, social aspect of knowledge sharing; thus

the importance of CoPs and NoPs, technology in the form of skills needed to be part of the

knowledge sharing community; computer, and writing skills. In addition time management skills;

it takes much more time to text communicate then it does to speak. Nonetheless, the e-learning-

knowledge sharing management strategy is here to stay; it allows firms to reduce cost, increase

workforce productivity, and motivate its workforce.

So, if e-learning knowledge sharing management strategies can reduce cost, increase

workforce productivity and motivate employees, then how do firms implement e-learning

knowledge management strategies and what is its relevance to work? First and foremost,

implementation of e-learning as a knowledge sharing strategy is not an easy tasks; it is complex

and dynamic. When organizations undertake such initiatives of implementing knowledge sharing

strategy practices they discover that their organizational structure and culture does not support

knowledge sharing practices. Therefore they must transform their organizational structure from a

hierarchy structure to a knowledge sharing structure and culture such as creating a vision and

mission statement that promotes knowledge sharing. For example, “to give the right training to
 The Importance of Knowledge Management Information Systems 10

the right people at the right time and in a right way” (Netteland, 2009, p.59) Moreover, firms

realize that their technology must be enhanced to accommodate e-learning across its entire

enterprise. In addition to structural, cultural, and technology changes they must also uncover

ways to make e-learning cost effective thus making the firm look progressive and resourceful.

More importantly firms must stress that knowledge sharing through e-learning should be non-

disruptive, relevant and “integrated with work and take place at the employee’s own desk

without help from colleagues or tutors” (Netteland, 2009, p.59). Therefore, e-learning should

meet the needs of the employees, and be part of the employees everyday work environment-

responsibilities. By doing so, both the organization and employee will achieve implementation

progression successfully.

Successful implementation of e-learning hinges on the critical factor of integrating

learning with relevance to work. Therefore Netteland (2009) suggests the firms take into

consideration the following:

The content, as well as the ways of delivering this content should be targeted

toward specific user groups, local learning traditions, and other contextual factors.

The company should put an increased focus on relevance to work as a critical

factor in the local introduction and not underestimate a need for rules that allow

flexible approaches in accordance with current and future learning needs,

previous experience, and individual capacities and learning styles.

The e-learning system as a whole must match the existing production system and

satisfy the local learning needs for growth.

The large span in work practices and work rules in the different parts of the

company must be given attention when learning and work are integrated.
 The Importance of Knowledge Management Information Systems 11

The role of local e-learning coordinator is critical and requires a person with a

historical background, technological competence, and organizational position that

gives the person the required authority to adjust the learning activity to local

needs.

To make e-learning sustainable in the long run, the exploitation coordinator must

be able to combine information about the unit’s history and future challenges with

the emergent opportunities of the new learning technology.

A new division of labor allocating enough time for learning should be prepared, as

well as new work tasks that integrate learning and work. (p.64)

Using these suggestions will help organizations implement a persuasive transformation of

knowledge sharing and e-learning initiatives.

HR and Knowledge Management

Organizations that implement knowledge sharing practices must also think about how

information and knowledge is managed. HR can help firms become successful through

innovation, preservation and transfer of organizational knowledge. Knowledge starts with the

individuals within the organization and therefore knowledge management (KM) becomes a

necessary tool for HR. According to the article “Leveraging HR and Knowledge Management in

a Challenging Economy” (2009) “HR can be instrumental in helping organizations leverage

knowledge-based resources for business results…HR challenges focus on three strategic

categories all related to knowledge management” (p.1) such as development, change and

facilitation.
 The Importance of Knowledge Management Information Systems 12

In today’s business environment, knowledge in an organization can provide the foundation

for organizations to sustain its competitive advantage. Therefore firms must institute a

knowledge management initiative. To do so, firms must indentify want is needed to become

successful in implication of a knowledge management system. As Gold, Malhotra, and Segars

(2001), state “a key to understanding the success and failure of knowledge management within

organizations is the identification and assessment of preconditions that are necessary for the

effort to flourish” (p186). In other words, if must first assess it capabilities and resources before

instituting a knowledge management system.

Initiating a knowledge management system will take a lot of work from a lot of

individuals and functions within an organization. Managers must “balance both the content of

organizational knowledge (tacit and explicit) and capabilities to leverage knowledge

(infrastructure and process)” (Gold et al., 2001, p.209). Moreover, Gold et al. (2001) point out

that “the knowledge portfolio should be reconciled with competitive conditions and not be too

dominant towards any single perspective. The firm should strive to balance the efficiencies of

process capabilities with the knowledge creation potential of infrastructure capabilities.” (p.209).

When implementing a knowledge management system HR must facilitate the knowledge

management processes by forming groups and networks of workers through process

improvements that promote developmental techniques, with flexibility to create and share

information throughout the entire enterprise; a common communication standard of computers,

and software applications. Moreover, HR must transform the organizations culture, leadership,

and technology. In some firms it may suggest changes such as, behaviors, motivation, social, and

incentives; changes that will promote empowerment, commitment, and attitudes of employees. In

addition HR can establish a recognition system that links knowledge sharing with business
 The Importance of Knowledge Management Information Systems 13

strategies. (Gold et al., 2001)

KM and the role of HR have become critical in creating competitive advantage for firms

in the 21st century. In today’s knowledge based industry organizations human capital has now

become a bona fide asset to organization. Therefore HR role is important with respect to

recruiting, managing and retaining the best human capital possible. (Chandra, 2009). “HR can

promote knowledge management as a strategic business objective” (Leveraging HR and

Knowledge Management in a Challenging Economy, 2009, p.3), such as training, professional

development, policies and practices, talent acquisition and retention, knowledge sharing and

technology.

Promoting KM as a strategic business objective such as technology has become to be very

important for KM. The role of technology has changed the way HR manger’s function. It is

through technology that HR managers can disseminate information efficiently and effectively.

According to Chandra (2009) some companies are using kiosks to disseminate critical HR

information with its employees. “ Therefore information is an important input to the management

like eyes to the human being without which a blind man is groping in the dark” (p.22). Thus the

importance’s of knowledge management information systems (KMIS)

KMIS can be viewed as a system that is made up of people, tools, technologies and

knowledge that interact to disseminate information to knowledge seekers. KMIS gathers

important knowledge and practices in a firm which makes it available to help develop business

practice and management assessments (Chandra, 2009). Knowledge is either written (codified)

and comprehensible (explicit) or unwritten (implicit or tacit) unsaid, and concealed (Hildren,

2009). Thus KMIS provides a linked instrument through groupware to leverage knowledge

sharing between employees.

 The Importance of Knowledge Management Information Systems 14

Human Resource Information Systems

Organizations are using technology “to improve productivity, lower costs and increase

employee satisfaction” (HR Focus, 2004, p.10). According to the article “How HRIS is

Transforming the Workplace-HR role” and based on the Cedar 2003 Workforce Technology

Survey changes are occurring in HRIS that helps the HR function to deliver HR-related services.

The study discovered that HR has increased the use of technology to solve business strategic

goals. “From an HR standpoint, technology developments affect the entire workforce and deliver

significant financial returns, which are an important part of HR’s growth as a strategic and value

adding partner to the business” (p.10).

HRIS technology does have its advantages and disadvantages. The advantages of using

HRIS technology can be viewed as an increase in production, decrease in costs to produce goods,

increase in employee retention, return on investment and stronger financial returns, and an

improvement of service deliverables. The article points out that technology expenditures and

application service providers increased; mainly in applications for attracting developing and

retaining human capital. Some of the disadvantages with technology are planning; turning talk

into action, and budgeting; budgeting too little to cover the total cost of ownership (TCO).

Additional challenges are employee and HR disconnect from business strategies, as well as the

effectiveness of change during a technology initiative

Like KMIS, a human resource information system “helps HR mangers perform HR

functions in a more effective and systemic way using technology. It is a system used to acquire,

store, manipulate, analyze, retrieve and distribute pertinent information about an organizations

human resources” (Chandra, 2009, p.22). The central part of a HRIS is its database which

houses personal and professional information of the organizations employee. It also contains
 The Importance of Knowledge Management Information Systems 15

personnel data such as payroll, training and development, and benefits. In addition, the HRIS

system tracks legal compliance such as performance appraisals, employment equally, as well as

compensation policies, promotion, and employee turnover.

“With continued technological breakthroughs HRIS systems are becoming increasingly

advanced. One of the most core HRIS functions is intranet HR self-service” (Chandra, 2009,

p.23), or shared-service. “The shared-services model which moves personal responsibility and

accountability for human resource transactions to managers and employees may meet with

growing resistance if it becomes more burden than benefit. Are there limits to how much

responsibility can be shared”? (Lengnick-Hall and Moritz, 2003, p.376)

According to Redman, Snape, Wass and Hamilton (2007) shared-services “facilitates the

sharing of both staff and technology resources and advocates have claimed many benefits for the

practice. In particular cost reduction, improving service quality, process simplification, sharing

best practice, knowledge transfer and being more in alignment with new business

environments…” (p. 1486). The shared-service model encompasses HR activities of

transactional, professional advisory and transformational. However the authors point out that

there is little or no evidence of transformational activities in organizations that initiate human

resources shared services (HRSS). The authors do hint toward limits to how much responsibility

can be shared. Redman et al (2007) who cites Quinn et al. (2000) and Ulrich (1995) work that

“the relationship is more one of customer and provider, and as such, power and control rests with

the customer” (p. 1487).

In the future Redman et al. (2007) who cites “Reilly and Williams (2003) predicts that

HR shared service functions will grow in size, covering more organizations and join with finance

and IT in joint shared service centres, and will begin to sell their services to organizations
 The Importance of Knowledge Management Information Systems 16

outside” (p.1488). However, the authors do not give any suggestions on how to implement such

practices or how it should be managed. In addition, challenges to maintaining a share service

relationship and location of such shared services become important to the success of

implementing a share service initiative.

Conclusion

Organizations are increasing their competitive advantage by recognizing the importance

of knowledge management. Therefore firms must initiate knowledge sharing practices. Some

firms will adopt a people focus such as communities of practice. People in CoPs freely express

their experiences and knowledge to improve on the challenges that confront them-they do not

become the challenge they take stock in the challenge-freely. CoPs are not new to the workforce;

in fact CoPs can be traced back to ancient time. As CoPs members share their knowledge and

experiences it becomes a way of how things get done-a common day-to-day practice.

KMIS starts with investing in ICT which allows firms to obtain and share knowledge

across its entire enterprise; creating and improving its competitive advantage. The intent is that

the internet and web-based application will alter the firm’s capacity to share and create lessons

learned and new knowledge through an electronic medium such as e-learning.

E-learning has emerged as an imperative internet-base too to acquire, impart and share

knowledge in an organization. Although e-learning has its shortcomings it also reduces cost,

increase workforce productivity and motivates employees. Successful implementation of e-

learning hinges on the critical factor of integrating learning with relevance to work.

Organizations that implement knowledge sharing practices must also think about how

information and knowledge is managed. “HR manager can be instrumental in helping the

organization leverage knowledge-based resources for business results” (Leveraging HR and

 The Importance of Knowledge Management Information Systems 17

Knowledge Management in a Challenging Economy”, 2009, p.1).

Like KMIS, a human resource information system “helps HR mangers perform HR

function in a more effective and systemic way using technology. With continued technological

breakthroughs HRIS systems are becoming increasingly advanced such as intranet HR shared-

service.” (Chandra, 2009, p.23). “Shared-services facilitate the sharing of both staff and

technology resources and advocates have claimed many benefits for the practice” (Redman et al.,

2007, p. 1486).
 The Importance of Knowledge Management Information Systems 18

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