L3 - Knowledge Management - Strategy

8/7/2019 L3 - Knowledge Management - Strategy

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Working KnowledgeWorking Knowledge

Presented byPresented by

Ashish MomayaAshish Momaya1



ExperienceExperience

y Knowledge develops over time, through experience that includes what

we absorb from courses, books, and mentors as well as informal

learning.

y

"Experience" and "expert" are related words, both derived from a Latinverb meaning "to put to the test.´

y Knowledge born of experience recognizes familiar patterns and can

make connections between what is happening now and what happened

then.

y When firms hire experts, they're buying experience-based

insights.

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ChryslerChrysler

y Chrysler, for example, stores knowledge for new cardevelopment in a series of repositories called

"Engineering Books of Knowledge.

y The manager of one such "book" was given a series of

crash test results for inclusion in the repository.

However, he classified the results as data and

encouraged the submitter to add some value.

y Knowledge can also move down the value chain,

returning to information and data. The most common

reason for what we call "de-knowledging" is too much

volume. 3



Types of KnowledgeTypes of Knowledge

y Explicit knowledge - which can be

articulated in formal language and

records and transmitted among

individuals

y Tacit knowledge - personal

knowledge embedded in individuals

based on their experience and

involving such intangible factors as

personal belief, perspective, andvalues

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There are two main types of knowledge



TacitTacit versusversus Explicit KnowledgeExplicit Knowledge

Tacit Knowledge

y Knowledge is personal in

nature and very difficult to

extract from people.

y Knowledge must be

transferred by moving

people within or between

organizations.

y Learning must be

encouraged by bringing the

right people together under

the right circumstances.

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Explicit Knowledge

y Knowledge can be articulated

and codified to create explicit

knowledge assets.

y Knowledge can be disseminated

(using infor mation technologies)

in the form of documents,

drawings, best practices, etc.

y Learning can be designed to

remedy knowledge deficiencies

through structured, managed,

scientific processes.



Tacit KnowledgeTacit Knowledge

Advantagesy Relatively easy and inexpensive

to begin.

y Employees may respond well to

recognition of the (claimed)knowledge.

y Likely to create interest in

further knowledge management

processes.

y Important knowledge kept in

tacit form may be less likely to

´leakµ to competitors.

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Disadvantagesy Individuals may not have the

knowledge they claim to have.

y Knowledge profiles of individuals

need frequent updating.

y Ability to transfer knowledge

constrained to moving people, which

is costly and limits the reach and

speed of knowledge dissemination

within the organization

y Organization may lose key

knowledge if key people leave the

organization.



Explicit KnowledgeExplicit Knowledge

Advantagesy Articulated knowledge (explicit

knowledge assets) may be moved

instantaneously anytime anywhere

by information technologies.

y Codified knowledge may be

proactively disseminated to

people who can use specific forms

of knowledge.

y

Knowledge that has been madeexplicit can be discussed, debated,

and improved.

y Making knowledge explicit makes

it possible to discover knowledge

deficiencies in the organization 7

Disadvantagesy Considerable time and effort

may be required to help people

articulate their knowledge.

y Employment relationship withkey knowledge workers may

have to be redefined to

motivate knowledge

articulation.

y Expert committees must beformed to evaluate explicit

knowledge assets.

y Application of explicit

knowledge throughout

organization must be assuredby adoption of best practices.



The Knowledge Markets

y Social, economic, and political realities mustbe taken fully into account to understand

markets for knowledge. [ Mobil Oil & HP]

y

The buyers, sellers, and brokers take partin knowledge transactions and

drive knowledge markets

y An individual can perform all three roles in

a single day and sometimes plays more than

one role simultaneously

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The Knowledge Markets - Buyer

y Knowledge seekers are looking for insights, judgments, andunderstanding

y They want answers to questions such as "What is this

particular client like?" or "How did we manage to win thatsale?" that require complex answers

y A recent informal study done at Hughes Aerospace by

Arian Ward estimated that between 15

and 20 percent of managerial time is spent specifically in knowledge search

and responding to requests for knowledge.

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The Knowledge Markets - Seller

y Knowledge sellers are people in an organization with aninternal market reputation for having

substantial knowledge about a process or subject

y

If knowledge is power, then the owners of knowledge havepower that may dissipate if other people come to know

what they know.

y One of the challenges of knowledge management is to

ensure that knowledge sharing is rewarded more

than knowledge hoarding

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The Knowledge Markets - Broker

y They make connections between buyers and sellers: thosewho need knowledge and those who have it

y Librarians frequently act as covert knowledge brokers,

suited by temperament and their role as informationguides to the task of making people-to-people as well as

people-to-text connections.

y Since they are facilitators of other people's success, their

contribution may not be visible to managers who think in

terms of traditional productivity.

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The price systemThe price system

y All markets have a price system so that value exchanges

can be efficiently rendered and recorded.

y What is the price system of the knowledge market?

y Sellers as well as buyers exchange knowledge because

they believe they gain from the transaction

y Factors for sharing knowledge ² Reciprocity, Repute &

Altruism

y Finally a firm's knowledge market must be

founded on mutual trust.

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Information Management toInformation Management to

Knowledge ManagementKnowledge Management

y IM is usually not concerned with the actual process of knowledge-creation

or innovation

y KM systems are much more human-centric than IM systems or initiatives

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Technology

PeopleProcess

Tools & Techniques

Change management

Culture

Business process

re-engineering

Procedures

Strategy

Policies

Knowledge Management



KM StrategyKM Strategy

y Strategy was first embraced in business policy by the

development of the SWOT framework

y Essentially the goal of strategic management is to find

a "fit" between the organization and its environment

that maximizes its performance

y Porter himself notes that two and only two basic

forms of competitive advantage typically exist:Cost

leadership and Differentiation.

y Porter underscores the importance of the inclusion

of an organization's resources, in particular KM, as

both a necessary and sufficient pre-requisite for

attaining a sustain-able competitive advantage

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Developing organizational KMDeveloping organizational KM

strategiesstrategies

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AssignmentAssignment -- TopicTopic

1. ´Knowl edge assets determine success or fail ure but y ou

w ill search in vain to find them in a c ompany booksµ.

Comment on the above quote.

2. ´Business intell igence is an over-used term that has had

its day, and business anal ytics is now the differentiator

that w ill allow customers to better f orecast the future

especiall y in this current ec onomic c l imate.µ

Comment on the above quote.

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Thank youThank you

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L3 - Knowledge Management - Strategy