Course Name : M0224-Knowledge Management

Year
: September 2013

Introduction to Knowledge
Management (KM)
Week 1
(Session 1 and 2)

Textbook
Dalkir, K. (2011). Knowledge Management in
Theory and Practice. The MIR Press. USA. ISBN:
978-0262015080.

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A light bulb in the socket is

worth two in the pocket.
- Bill Wolf (1950-2001)

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Learning Outcomes
Use a Framework and clear language for Knowledge
Management concepts.
Define key knowledge management concepts such as
intellectual capital, organizational learning and
memory, knowledge taxonomy, and communities of
practice using concept analysis.
Provide an overview of the history of knowledge
management and identify key milestone.
Describe the key rols and responsibilities required for
knowledge management applications
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Acknowledgement
These slides have been adapted from
Dalkir, K. (2011). Knowledge
Management in Theory and Practice.
The MIR Press. USA. ISBN: 9780262015080. (Chapter 1)

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Sub Topics

What is Knowledge Management?

Multidisciplinary nature of KM
The two major types of knowledge
History of KM
Organizational perspectives on KM
Why is KM important today?

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Introduction
The ability to manage knowledge is becoming
increasingly more crucial in todays knowledge economy.
The creation and diffusion of knowledge have become
ever more important factors in competitiveness.
Knowledge is being regarded as a
valuable commodity that is embedded
in products
(especially high-technology products)

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Introduction (Cont.)
Davenport and Prusak (1998, p. 2) provide the following
distinctions between data, information, and knowledge

DATA

A set of discrete, objective facts about events.

INFORMATION

A message, usually in the form of a document or an

audible or visible communication

KNOWLEDGE

A fluid mix of framed experiences, values, contextual

information, and expert insight that provides a framework
for evaluating and incorporating new experiences and
information. It originates and is applied in the minds of
knowers. In organizations, it often becomes embedded not
only in documents or repositories but also in organizational
routines, processes, practices, and norms.

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What is Knowledge Management?

Knowledge management (KM) was initially defined as the
process of applying a systematic approach to:
The capture, structure, management, and dissemination
of knowledge throughout an organization in order to
work faster, reuse best practices, and reduce costly
rework from project to project
(Nonaka and Takeuchi, 1995; Pasternack and Viscio, 1998;
Pfeiffer and Sutton, 1999; Ruggles and Holtshouse, 1999).

What is Knowledge Management? (Cont.)

Knowledge management is the deliberate and
systematic coordination of an organizations people,
technology, processes, and organizational structure in
order to add value through reuse and innovation.
This coordination is achieved through creating, sharing,
and applying knowledge as well as through feeding the
valuable lessons learned and best practices into corporate
memory in order to foster continued organizational
learning.

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What is Knowledge Management? (Cont.)

Strategies and processes designed to identify, capture,
structure, value, leverage, and share an organizations
intellectual assets to enhance its performance and
competitiveness.
Its based on 2 critical activities:
1. Capture and documentation of individual explicit and tacit
knowledge.
2. Its dissemination within the organization.
(The Business Dictionary, http://www.business-dictionary.com/definition/Knowledge-management.html )

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Interdisciplinary Nature of KM

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The 2 Major Types of Knowledge

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The 2 Major Types of Knowledge:

Tacit VS Explicit

Source : http://www.cognitivedesignsolutions.com/KM/ExplicitTacit.htm
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Explicit vs. Tacit Knowledge

Tacit Knowledge
Explicit Knowledge

files

80-85%
active

15-20%
passive

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The 2 Major Types of Knowledge:

Comparison of properties of Tacit and
Explicit Knowledge
Tacit Knowledge
Ability to adapt, to deal with
new and exceptional
situations.
Expertise, know-how, knowwhy and care-why.
Ability to collaborate, to share
a vision, to transmit a culture
Coaching and mentoring to
transfer experintial knowledge
on a one to one, face to face
basis
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Explicit Knowledge
Ability to disseminate, to
reproduce, to access and to
reapply throughout the
organization.
Ability to teach, to train.
Ability to organize, to
systematize; to translate a
vision into a mission
statement, into operational
guidelines.
Transfer of knowledge via
products, services and
documented processes

The Concept Analysis Technique

The concept analysis approach rests on obtaining
consensus on three major dimensions of a given concept
(as shown in Figure on the next slide):
1. A list of key attributes that must be present in the
definition, vision, or mission statement.
2. A list of illustrative examples.
3. A list of illustrative non-examples.

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The Concept Analysis Technique (Cont.)

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Key Attributes of KM
(Ruggles and Holtshouse, 1999)
Generating New Knowledge
Accessing valuable knowledge from
outside sources
Using accessible knowledge in Decision
Making
Embedding knowledge in process,
products and/or services
Representing knowledge in documents,
databases, and software
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Key Attributes of KM (Cont.)

(Ruggles and Holtshouse, 1999)
Facilitating knowledge growth through
culture and incentives
Transferring existing knowledge into other
parts of the organizations
Measuring the value of knowledge assets
and/or impact of KM

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History of KM

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Developmental Phases in KM History

Developmental Phases in KM History

2000

Personalization

1980

Virtualization
1950*

Computerization

Communications

1850

Transportation

Industrialization

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1900

1800

* Birth of the Internet, 1969

KM Milestones

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KM History: From Physical Assets to

Knowledge Assets
Intellectual capital is often made visible by difference
between the BOOK VALUE and the MARKET VALUE of
an Organization.
Intellectual Assets Represented by the sum total of
what employees of the organization know and know how
to do.
The Value of Knowledge Assets is at least equal to the
cost of recreating this knowledge

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KM History: From Physical Assets to

Knowledge Assets (Cont.)
Knowledge has now become more valuable that
physical things
SABRE reservation system vs. airplanes
Now customer bill of rights, vouchers for delayed
flights customer satisfaction (and revenues) at an
all-time low

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The 3 Generations of KM
1st Generation:

if we only knew what we know IT

2nd Generation:

if we only knew who knows about. PEOPLE

3rd Generation:

if we could only organize our knowledge.

CONTENT

Todays Working Environment

Multi-lingual
Multi-site

Multi-cultural

More &
Faster

More
Global

KM

PC

More
Mobile

More
Connected
PC

Internet

PC

Increasing Complexity
Todays work environment is more complex due to an
increase in the number of subjective knowledge items we
need to attend to everyday
Filtering over 200 emails, faxes, voicemail messages on a daily
basis how to prioritize?
Having to think on our feet as expected response time has
greatly decreased as well
KM is a response to the challenge of trying to manage this
complexity amidst information overload
A science of complexity
Knowledge and entropy production have an inverse relationship

The ubiquitous shared drive

All organizations have them
They tend to be chaotically organized, if at all

Organizing principles tacit

Organize for me but what about others?

Shared Drive Organization: Which

one would you choose?
Folders:
Sarah
Peter
Robert one for
each employee

OR:

Folders:
Project Apollo
Task force on KM
Proposal one for
each collaborative
project

Next challenge: Preserving

valuable knowledge
Organizational amnesia or forgetting
The cost of lost knowledge:
Once upon a time we put a man
on the moon today we can no
longer do so. The blueprints for the
Saturn booster are no longer at
NASA the only rocket with enough
thrust to send a manned payload on
its way. The original Apollo workforce is long since retired some
documents endure but they are
devoid of meaning (Petch, 1998)

NASA loses film of first moon

landing:
The original film of mans first steps
on the moon have been lost. The
original tapes, although nowhere
near the standard of normal tv
transmission, would still be of far
better quality than the video we have.
NASA simply filed them away. And
as personnel retired or died, the
location of the tapes was forgotten.

KM History: Three Level Intellectual

Capital
Three Levels of Intellectual Capital
Intellectual Capital

Increasing Complexity

Strategic

Political Negotiation
Mainly Subjective

Tactical

Operational
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Technical integration
Mainly Objective

Organizational Perspectives of KM

Wiig (1993) considers KM in organizations from three perspectives, each

with different horizons and purposes:
Business Perspective : focusing on why, where, and to what extent the
organization must invest in or exploit knowledge. Strategies, products and
services, alliances, acquisitions, or divestments should be considered from
knowledge-related points of view.
Management Perspective : focusing on determining, organizing, directing,
facilitating, and monitoring knowledge-related practices and activities
required to achieve the desired business strategies and objectives.
Hands-on Perspective : focusing on applying the expertise to conduct
explicit knowledge-related work and tasks.

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Why is KM important today?

The major business drivers behind todays increased
interest and application of KM lie in 4 key areas:

#1
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Globalization
of Business

Organizations today
are more global
multisite,
multilingual, and
multicultural in
nature

Why is KM important today? (Cont.)

#2
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Learner
Organizations

We are doing more

and we are doing it
faster, but we also
need to work
SMARTER as
KNOWLEDGE
WORKER
increased pace and
workload

Why is KM important today? (Cont.)

#3

Corporate
Amnesia

We no longer expect to work

for the same organization for
our entire career
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We are more mobile as

a workforce, which
creates problems of
knowledge continuity for
the organization, and
places continuous
learning demands on
the KNOWLEDGE
WORKER

Why is KM important today? (Cont.)

#4

Technological
Advances

We are more
connected IT
advanced have
made connectivity
not only ubiquitous
but has radically
changed
expectations

We are expected to be on at all times and the turnaround

time in responding is now measured in minutes, not week
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KM for Individuals, communities, and

Organizations
For the Individual

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Helps people do their jobs and save time

through better decision making and
problem solving
Builds a sense of community bonds within
the organization
Help people to keep up to date
Provides challenges and opportunities to
contribute

KM for Individuals, communities, and

Organizations (Cont.)
For the
Community
Of Practice

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Develops professional skills

Promotes peer to peer mentoring
Facilitates more effective networking and
collaboration
Develops a professional code of ethics
that members can adhere to
Develops a common language

KM for Individuals, communities, and

Organizations (Cont.)

Helps drive strategy

Solves problems quickly
Diffuses best practices
Improves knowledge embedded in
products and services
Cross fertilizes ideas and increases opportunities for
innovation
Enables organizations to better stay ahead of the
competition
Builds organizational memory
For the Organization

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Why is KM Important Today?

Summary of the Three Major Components of KM

Containers

Communities

Contents

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Continued to week 2
(KM Cycle)

Thank you
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