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Knowledge Management

Prof. Rushen Chahal

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Introduction
What do we mean by knowledge? Discussion Class Drucker (1994): The knowledge society will be more competitive than anything that we have seen so far. Why? With knowledge being universally accessible there will be no reason for por performance. Cyert (1991): The most crucial variable in economic development is Knowledge. Page 2

Introduction
Leonard-Barton (1995): Organizations that are successful innovators are those that build and manage knowledge effectively through activities as developing shared problem-solving skill, experimentation, integrating knowledge across functional boundaries, and importing expertise from external sources.

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Knowledge Management
 Ancient  Collaboration at the organizational level  Could revolutionize collaboration and computing

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Opening Vignette: Knowledge Management Gives Mitre a Sharper Edge


 Mitre - knowledge management system (KMS) to leverage organizational knowledge effectively throughout the organization  Internal marketing during development
 Supported at the highest level  Provided an important application

 Organizational culture shift was critical  Saved $54.91 million / invested $7.19 million

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Knowledge Management
 Leverages intellectual assets  Delivers appropriate solutions to anyone, anywhere  Good managers have always done this  Ancient concept

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DSS Insights- GEM: A DSS for Workload-Planning Decisions


Overview: . GEM a large stevedoring company . Schedules developed a week ahead . Each ship is expected to arrive within 10 days . Unexpected conditions cause the schedule to be re- written

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DSS Insights- GEM: A DSS for Workload-Planning Decisions


System Description: * means very important variable
y Ships . . . . . . . ETA Cargo Information Ships workload per location DWT Permitted berths Maximum number of elevators ETD*

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DSS Insights- GEM: A DSS for Workload-Planning Decisions Berth . Equipment information . Availability of equipment . Maximum permitted length . Maximum permitted draught . Maximum permitted DWT

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DSS Insights- GEM: A DSS for Workload-Planning Decisions


y Other characteristics .The planner can override the system .Each ship has a max number of elevators which can be set by the planner y System operation .Run planning scenario with no penalties .Study results .If there are ships in an unfavorable position (ETD) - manipulate penalties to improve ships position .Repeat until satisfactory y Class discussion!!!!!! Page 10

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Knowledge Management
Helps organizations  Identify  Select  Organize  Disseminate  Transfer Important information and expertise within the organizational memory in an unstructured manner

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Knowledge
As a form of capital, must be exchangeable among persons, and must be able to grow Intellectual Capital- as the competence of an individual and the commitment of the individual to the organizations goals (competence * commitment)

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Knowledge Management
Requires a major transformation in organizational culture to create a desire to share

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Knowledge
 Information that is contextual, relevant, and actionable  Knowledge is INFORMATION IN ACTION  Higher than data and information
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Knowledge Types
     Advantaged knowledge Base knowledge Trivial knowledge Explicit knowledge Tacit knowledge

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Knowledge Types
Advantaged Knowledge- Knowledge that provides competitive advantage Base Knowledge- Knowledge that is integral to an organization, providing it with short-term solutions (i.e. best practices) Trivial knowledge- knowledge that has no impact on the organization

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Explicit Knowledge
 Objective, rational, technical  Easily documented  Easily transferred / taught / learned

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Tacit Knowledge
 Subjective, cognitive, experiential learning  Hard to document  Hard to transfer / teach / learn  Involves a lot of human interpretation

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Data, Information and Knowledge

INFORMATION Processed

Relevant and actionable

DATA

KNOWLEDGE

Relevant and actionable data

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Knowledge Has
 Extraordinary leverage and increasing returns  Fragmentation, leakage, and the need to refresh  Uncertain value  Uncertain value sharing

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Organizational Learning and Organizational Memory


      Group memory Learning The learning organization Organizational memory Organizational learning Organizational culture

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Organizational Memory
      Individual wells Information well Culture well Transformation well Structural well Ecology well

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Organizational Learning Focuses


       Knowledge source Product-process focus Documentation mode Dissemination mode Learning focus Value chain focus Skill development focus
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Organizational Culture
 Culture is a pattern of shared basic assumptions  Most important aspect of KM success  Why dont people share knowledge?

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Knowledge Management (KM)


 A process of elicitation, transformation, and diffusion of knowledge throughout an enterprise so that it can be shared and thus REUSED  Helps organizations find, select, organize, disseminate, and transfer important information and expertise  Transforms data / information into actionable knowledge to be used effectively anywhere in the organization by anyone

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How Core Competency is Linked to Explicit and Tacit Knowledge


Process of explication may ge ner ate ne w tacit knowle dge

Explicit Knowledge
Conver t tacit knowledge into artic ulated and measurable explicit knowledge Policies, patents, decisions, stra tegies, IS, white papers, etc.

Tacit Tacit Knowledge Knowledge

Expertise, know-how, ideas, orga nization culture, values, etc.

Core Competencies of the Organization

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KM Objectives
    Create knowledge repositories Improve knowledge access Enhance the knowledge environment Manage knowledge as an asset

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KMS Manage
 Knowledge creation through learning  Knowledge capture and explication  Knowledge sharing and communication through collaboration  Knowledge access  Knowledge use and reuse  Knowledge archiving
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Knowledge Repository
 Not a database  Not a knowledge base (like for ES)  A collection of internal and external knowledge

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Knowledge Repository Types


 External  Structured internal knowledge  Informal internal knowledge

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KM Activities
    Externalization Internalization Intermediation Cognition

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KM Features
      Create a knowledge culture Capture knowledge Generate knowledge Explicate (and digitize) knowledge Share and reuse knowledge Renew knowledge

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Cyclic Model of KM
      Create knowledge Capture knowledge Refine knowledge Store knowledge Manage knowledge Disseminate knowledge

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Cyclic Model of KM
Capture Knowledge

Create Knowledge

Refine Knowledge

Disseminate Knowledge

Store Knowledge

Manage Knowledge

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KM Examples
           Mitre Dow Chemical Company Xerox Chrysler Monsanto Chevron Buckman Laboratories KPMG Ernst & Young Arthur Andersen Andersen Consulting

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Why Adopt KM
     Cost savings Better performance Demonstrated success Share Best Practices Competitive advantage

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Chief Knowledge Officer (CKO)


    Maximize firms knowledge assets Design and implement KM strategies Effectively exchange knowledge assets Promote system use

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KM Development
 Need a knowledge strategy  Identify knowledge assets

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KM Development
1. 2. 3. 4. 5. 6. 7. Identify the problem Prepare for change Create the team Map out the knowledge Create a feedback mechanism Define the building blocks Integrate existing information systems
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Strategies for Successful KM Implementation


1. 2. 3. 4. 5. Establish a KM methodology Designate a pointperson Empower knowledge workers Manage customer-centric knowledge Manage core competencies

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More Strategies
6. 7. 8. 9. Foster collaboration and innovation Learn from best practices Extend knowledge sourcing Interconnect communities of expertise (communities of practice) 10. Report the measured value of knowledge assets

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KM Methods, Technologies, and Tools


         Email or messaging Document management Search engines Enterprise information portal Data warehouse Groupware Workflow management Web-based training Others

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How to KM
 Integrate the technologies to manage knowledge effectively

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KM Tool Categories
 Information architecture  Technical architecture  Application architecture

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KM Software
 Knowware still developing but      DecisionSuite Wincite DataWare KnowledgeX Knowledge Share

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KM Success
          Economic performance Technical and organizational infrastructure Standard, flexible knowledge structure Knowledge-friendly culture Clear purpose and language Change in motivational practices Multiple channels for knowledge transfer Worthwhile level of process orientation Nontrivial motivational encouragement Senior management support

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Measuring Success
    Balanced Scorecard Skandia Navigator Economic Value Added Inclusive Valuation Methodology

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KM Failure Causes
1. Unclear definition of knowledge 2. Overemphasis on knowledge stock, not flow 3. Belief that knowledge exists outside peoples heads 4. Not recognizing the importance of managing knowledge 5. Failure to manage tacit knowledge
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More Failure Causes


6. 7. 8. 9. Failure to disentangle knowledge from its uses Downplaying reason and thinking Focusing on the past and present, not the future Failure to recognize the importance of experimentation 10. Substituting technology contact for human interface 11. Overemphasis on measuring knowledge, not its outcomes

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KM and AI
 Can use AI in KM  Can use KM in AI  Data mining can create knowledge

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Electronic Document Management


    A KM for documents Everyone is on the same page Documents are up to date Simple example: corporate phonebook

 Lower costs  Better performance


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The Knowledge-Based View of Decision Making Accepting Messages: see next slide
y A decision maker (human-being) can accept stimuli from the environment y The stimuli are messages that carry knowledge (information) y Some messages have a direct and immediate impact on the decisions being manufactured Other messages can be: . discarded . passed along to others and or other places . stored for future use

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The Knowledge-Based View of Decision Making Issuing Messages The decision maker can issue messages to the surroundings: . other people . documents/storage vessels The message may also be the Manufactured Decision

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The Knowledge-Based View of Decision Making Assimilating Knowledge


y Figure 4.2, page 99. y Once the Decision maker has established the meaning of an incoming message it can be assimilated with the DMs knowledge store y When new knowledge is assimilated, it alters the knowledge store: . just be added . cause existing knowledge to be altered, discarded, or marked as being obsolete . It may cause fundamental alterations of the knowledge store

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The Knowledge-Based View of Decision Making Recognizing the Need for a Decision
May be very obvious: . Highly structured . Happens frequently May be take many repetitions of the event/stimuli to initiate action, thus it is: . unstructured . novel . by observing conditions (economic, political, mechanical) we may come to recognize that: - a problem exits - a solution is required Page 64

The Knowledge-Based View of Decision Making


Manufacturing a Decision:
The manufacturing process produces new knowledge from knowledge.

The sources of raw materials is the decision makers storehouse of knowledge (experience, facts, rules, etc). Knowledge is extracted on an as needed basis and manipulated by Cognitive abilities to produce solutions for the flow of problems that constitutes the KNOWLEDGE Manufacturing Process. The solution that is the product of the process is the NEW KNOWLEDGE.

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1. A Manufacturing Analogy Material Product Decision 1. The process begins in reaction to a customer The process begins in reaction to a recognized order or anticipated order. need or opportunity. 2. The process draws on an inventory of raw The process draws on an inventory of materials. KNOWLEDGE. 3. Items entering inventory are subject to Knowledge is assimilated into inventory only if quality testing controls. it is expected to be usable. 4. Abilities for manipulating materials Abilities for manipulating knowledge transform/assemble raw materials into final transformation/assemble existing knowledge into new knowledge about what to do. products. During the process there are intermediate 5. During the process may yield material bypieces of knowledge called problem solutions. products that are stored in inventory or discarded. 6. The process may yield material by-products The process may yield knowledge by-products that are stored in inventory or are discarded. that are stored in inventory or are discarded. 7. The manufacture may be an individual or The decision maker may be an individual or have multiple participants. consist of multiple participants 8. The finished product is packaged for The decision is packaged for distribution. distribution. From Holsapple & Whinston, 1996, page 100.

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Defining Knowledge
Three Views of Knowledge
y Knowledge Representations:
If a system has and can use a representation of something then the system itself can also be said to have KNOWLEDGE. The textbook can be a representation of knowledge if it can be read.
Representation is an abstraction pattern of Symbols =>

It embodies knowledge:

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Defining Knowledge
A useable representation of something
From a DSS point of view we must be concerned with
the computer memory and how it
processes knowledge represents knowledge

Clean data and defined objects are required

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Knowledge States

A set of states ranging from raw data to decisions


Six states of Knowledge: data Information structured information insight judgment decision: The highest state Page 69

Defining Knowledge
One state of knowledge can be used to generate different states of knowledge DSS help in:
Acquiring knowledge deriving knowledge

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Knowledge Production

y The result of a productivity activity (i.e. LEARNING) involving acquisition and/or derivation
The flows and stock of knowledge Figure 4.3, page 106 Stocks are the inventories of knowledge The flows are the messages that tell the stock to do something

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Knowledge Sources
The decision makers store house of Knowledge: Internal & External
y The DM can be active or Passive about acquiring knowledge y Active: Message can be emitted to invoke a response y Passive the DM observes without invoking reactions

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Knowledge Sources
The Decision to Acquire/ Derive Knowledge
General a mixture of acquiring and derivation of knowledge Acquiring knowledge may tax: cognitive abilities, time, economic limits There are tradeoffs DSS tens to promote greater reliance on internal production of knowledge

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Knowledge Sources
Reliability of Knowledge:
Do we get the same knowledge from internal and external sources? If there are multiple external sources- to they yield the same result DSS y Without a DSS it may be infeasible to produce
the it internally Use the DSS in parallel with the knowledge acquisition to check the source reliability

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Knowledge Sources
Knowledge Qualities
DSS
y accurately retaining knowledge y flagging inconsistencies y analyzing uncertainties y tracking multiple sets of knowledge

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Knowledge Sources
Utility of Knowledge: Usefulness
Knowledge can be useful to different people To a history professor knowledge about particle physics is probably not useful Figure 4.4 DSS:
Present what is relevant to a specific DM Provide high quality knowledge

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Knowledge Management
Techniques
Text Management Forms Management Business Graphics Solver Management Rule Management Database Management Report Generation Spreadsheet Analysis Programming Message Management

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Knowledge Management
Reasons for Understanding Knowledge Management
Position or integrate Knowledge into a decision Extend the role of supporting participants from mere production to the processing, storage, retrieval, dissemination, utilization and general management of knowledge. Facilitate and develop a philosophy and methodologies for handling knowledge Shift the role of supporting participants from producing certainty and complete knowledge to structuring ignorance and managing uncertainty
Lohuizen & Kochen, 1986 in Holsapple & Whinston, 1996, page 112

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Knowledge Management
y Five types of Knowledge 1. 2. 3. 4. 5. Practical Intellectual Pastime Spiritual Unwanted

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Knowledge Management
Three Primary Types of Knowledge 1. Descriptive: Includes descriptions of past, present, future, and hypothetical situations. DATA and INFORMATION- To Know What 2. Procedural Knowledge: The how to do; Step-by-Step 3. Reasoning Knowledge: To know WhyApproaches to problem solving
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Knowledge Management
Three Secondary Types of Knowledge
1. Linguistic: Vocabulary and grammar, body language, meaning of gestures. 2. Assimilation Knowledge: The basis for controlling changes to the knowledge store. A filtering mechanism 3. Presentation Knowledge: The basis for packaging outgoing responses Page 82

Knowledge Management
y The Decision Maker possess knowledge y The DSS has processing abilities that can supplement the Decision Maker

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The Cognitive Basis for Knowledge


Declarative Knowledge
factual information that is static in nature it is usually describable to us history- events, facts flexible- it can be reorganized to suite our purposes Knowing That

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Cognitive- Knowledge
Some knowledge can be encoded in a declarative format which can later be transformed into a procedural format as we become familiar with the information. Examples: Reading Windows for Dummies Reading a Golf technique book then truing on the PC/ Play golf

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Cognitive Knowledge
Attention: the concentration and focusing of mental activity Paying attention seems to accentuate, or enhance, sensory input that has been focused on

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The Cognitive Basis for Knowledge


Procedural Knowledge
the underlying skillful actions we possess it is dynamic it is not very describable the acquisition of a skill involves making and detecting errors (skiing, bike riding, ballet) with additional experience we improve Knowing How

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Information Processing
Sensory system: where specific aspects of the environment are detected and organizedinto cognitive code The code is passed into memory Memory
Working memory: a workbench for cognitive codes (short term memory) Permanent memory: long term storage of declarative and procedural knowledge

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Memory
External Input Sensory Register Short-term Storage Long-term Storage

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Sensory Register
Where our feature detection and pattern recognition process produce a cognitive code that can be stored for a short time. The Sensory register does not depend on resource allocation- we do not have to pay attention to incoming stimuli in order to have this cognitive code created.

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Sensory Register
It must have a large storage capacity It is modality specific:
has difference storages for audio, visual

The code in storage Decays over time Resources must be allocated to transfer the code to STM or LTM

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Short-term Memory
Limited capacity (RAM) Storage is organized by sensory component:
acoustic, verbal, linguistic

Storage duration of unrehearsed material is about 30 seconds Material that is not elaborated or transferred decays.

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Long-term Memory
To go from STM to LTM requires rehearsal Rehearsal:
procedures that maintain the vitality of the code STS code will last indefinitely if it is occasionally refreshed by rehearsal. Rehearsal duplicates and augments the code for long-term storage (associations/links are created),

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The Architecture of Knowledge Repositories --- "Pipeline"


Knowledge Views Knowledge Repository S U P P L I E R S Aquisition Repository * Content * Structure * Content * Packaging/Format * Accessing/Distribution

U S E R S

Storage Refinement Retrieval Distributed Presented

Process Platform

Technology Infrastructure Organizational Infrastructure

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The Architecture of Interactive Knowledge Repositories --- "Virtual"

Knowledge Views Knowledge Repository Repository * Content * Structure * Content * Packaging/Format * Accessing/ Distribution

Storage Aquisition Refinement Retrieval Distributed Presented

Discussion Participants

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Knowledge Engineering and Acquisition

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Taxonomy of Knowledge Types


Primary Descriptive: data, information, descriptions of past, present, and future situations Procedural: how to do something Reasoning: codes of conduct, regulations, policies, diagnostic rules Secondary Linguistic: vocabulary, grammar, knowledge of gestures Assimilative: permissible contents, retention cycles, relevancy filters Presentation: modes of communication, graphing, messaging, inverse of Linguistic knowledge

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Conceptual Model of Knowledge Engineering Process

PERSON Expert performance of some task in some domain Feedback Elicitation Psychology of person
Personal construct psychology of person as an anticipatory system

Required Expertise Transfer

COMPUTER Emulation of expert performance of some task in some domain

Knowledge Elicitation Tools

Validation and Verification Feedback of Performance and Knowledge

Knowledge Structuring Tools

Ontology of computer
knowledge representation and operationalizing an anticipatory system

Psychological model of skilled performance


Representation of skill in terms of conceptual structures

Knowledge Modeling Tools

Computational model of skilled performance


Representation of skill in terms of logical structures

Unification of psychological and computational representation

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Knowledge Acquisition Dimensions


Strategic
KE-driven Expert-driven Machine-driven

Interviews Protocol analysis Repertory Grid

Tactical
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Five-Stage General Process of Knowledge Acquisition

Identification

Requirements

Identify Problem Characteristics

Conceptualization

Find Concepts To Represent Knowledge

Concepts

Formalization

Structure

Design Structure to Organize Knowledge


Reformulations Redesigns

Implementation

Formulate Rules, Frames, etc., to Embody Knowledge


Refinements

Rules
Testing

Validate Rules that Organize Knowledge

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Basic Pre-Interview Checklist


Decide what you need to know. Ask yourself why this information is needed. Determine that an interview is the best method for obtaining this information. Determine the appropriate degree of structure for the interview. Consider the method in which the answers to your questions will be coded and analyzed.

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Necessary Task Conditions for Successful Concurrent Protocols


The sample of cases employed must be highly representative of the task under study. Each task must have a clearly defined conclusion or point of completion. The task must be able to be completed in one protocol session. All data must be presented to the expert in a familiar form. A test case should be given to the expert prior to the collection of protocols so that he or she may become familiar and comfortable with the verbalization process.

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Typical Repertory Grid Structure


Concept Concept Concept Concept Concept Concept Concept Concept Concept Concept Concept Concept Concept Concept Concept

Individual

Individual

Individual

Individual

Individual

Individual

Individual

Constructs Element 1 Element 2 Element 3 Distinction 1Constraint 1,1Constraint 1,2Constraint 1,3 Distinction 2Constraint 2,1Constraint 2,2Constraint 2,3 Distinction 3Constraint 3,1Constraint 3,2Constraint 3,3 Distinction 4Constraint 4,1Constraint 4,2Constraint 4,3 Distinction 5Constraint 5,1Constraint 5,2Constraint 5,3

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Knowledge Base Validation Measures and Techniques


Accuracy: How well does the system reflect reality. How correct is the knowledge in the knowledge base. Adaptability: Possibilities for future development or changes. Adequacy: The portion of the necessary knowledge that is included in the knowledge base. Appeal: How well the knowledge base matches intuition and stimulates thought and practicability Breadth: How well is the domain covered. Depth: The degree of the detailed knowledge. Face Validity: How credible is the knowledge. Generality: Capability of a knowledge base to be used with a broad range of similar problems. Precision: Capability of the system to replicate particular system parameters. Consistency of advice and coverage of variables in the knowledge base. Realism: Accounting for the relevant variables and relations. Similarity to reality. Reliability: The frequency of system predictions that are correct. Robustness: Sensitivity of conclusions to model structure. Sensitivity: The impact of changes in the knowledge base on the quality of outputs. Technical/Operational: Goodness of the assumptions, context, constraints, and conditions. Turing test: Ability of a human evaluator to identify if a given conclusion is made by a real expert or a computer. Usefulness: How adequate the knowledge is (in terms of parameters and relationships) for solving correctly. Validity: The capability of the knowledge base for producing empirically correct predictions.

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KM The Future
     Not a fad Impact is immense Research on organizational culture How to do each step Are they the right steps?

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Knowledge Management
 The definition is clear  The concepts are clear  The challenges are
 Clear  Surmountable

 The benefits are clear (and can be huge)  The tools and technologies are viable
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Knowledge Management Key Issues


 Organizational culture  Executive sponsorship  Measuring success  The future: Comprehensive standardized KM packages

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Knowledge Mangement
The wise see knowledge and action as one (Bhagvad Gita) Intelligent organizations recognize that knowledge is an asset, perhaps the only one that grows over time, and when harnessed effectively can sustain the ability to continuously compete and innovate.
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