Puttawan. Why Knowledge is difficult to manage? Knowledge management process

ATKM 791Puttawan

Why Knowledge is difficult to manage? Knowledge management process

Contents

Two main reasons for difficulties1. Traditional disciplines of management do

not lend themselves to KM2. Business impact of KM applications

remains vague

KM: Difficulty in Excution

Source: Ichijo, K. and Nonaka, I. 2007. Knowledge Creation and Management: New Challenges for Managers. Oxford University press.

1. Traditional disciplines of management do not lend themselves to KM

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2. Business impact of KM applications remains vague

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Knowledge has taken procedure over traditional organization resources- capital, land, labor.

In value creation, companies' success is now on its ability to tap into their biggest asset – the knowledge of employees.

Why Knowledge is difficult to manage?

Knowledge can not be managed separately from knowledge workers

As an Intangible asset, knowledge: Involves human beings Has different dimensions Feed on itself Is public and private Is hard to measure and quantify


Knowledge involves human beings

The movement of knowledge across individual and organizational boundaries,

into and from KMS Into organizational routines and practices

Depend on

The knowledge sharing behaviors of employees


Knowledge involves human beings

The movement of knowledge Depend on

The knowledge sharing behaviors of employees

The quality of the work environment, motivational factors, trust and relationships assume fundamental relevance


Knowledge has different dimensions

2 Main knowledge dimensions1. Tacit2. Explicit



2 Main dimensions of Knowledge

1. Tacit knowledge – Implicit Difficult to document in detail but can be

exchanged through interactions with employees and customers

Highly dependent on the context of knowledge, experience, wisdom of person who carries the knowledge

Cannot be separated from its source, in order to request it, one need to identify the source of knowledge.


2 Main dimensions of Knowledge

1. Explicit knowledge Formal, often in written form, easy to

express Can be made available to members –

book, document, project report, case study, policy manual


Knowledge feeds on itself

◦ Knowledge is a source of generation and renewal of itself

◦ Value of knowledge does not diminished with use,

◦ knowledge can be shared and combined to generate new knowledge – has potential to yield increasing in return


Knowledge is a both public and a private good

Public good non excluding, an inability to exclude an individual

from enjoying that good non rivalry – one person’s having it does not prevent

another from having it.


Knowledge is a both public and a private good

Private good Difficult to transfer without the context in which

hat knowledge is developed and used


Knowledge is hard to measure and quantity

Traditional measurement systems are unable to capture, measure, and report on the benefit of KM.

A series of pragmatic way of demonstrating the impact of knowledge projects

Knowledge has a life of its own?

Knowledge depreciates when content becomes dated, or when new knowledge renders it obsolete.

Knowledge has a life of its own?

The value of knowledge depends on its quality and on potential users’ ability to interpret it and integrate it with their experience.

Value of Knowledge

To create the capacity for effective action and to influence decisions.

So as to

KM is a systemic and organizationally specific process of acquiring, organizing, communicating knowledge

Internal – in the organization External – to customers and steak holders

Knowledge management process

Rely on four overlapping process

1. Knowledge creation2. Storage3. Distribution4. Application


1. Knowledge creation Practice, process and routines used to make

knowledge creation effective and to move knowledge into a state where it is kept and available to use in the future.


tools to support knowledge workers in creative process of generating ideas, in

brain storming or innovation development.

such as mind mapping

need

2. Storage Processes and facilitates used to keep

knowledge and information until it is needed.


requires steps to structure it and make it easy to access and reuse.

KMS

Tool

such as associating documents with additional information (metadata) for retrieval purpose.

3. DistributionOrganizational mechanism and

processes to diffuse knowledge and make it accessible to knowledge workers who needs it, when needs it.


Users must know what they are looking for and specify their needs precisely

4. Application Using existing knowledge and applying it in

their respective job activities as well as making knowledge easy to access, frequent updating.

The stated objective of KMS implementation is to enable knowledge reuse rather than reinventing existing processes.



Discovery• Combination• Socialization

Capture• Externalizati

on• Internalizatio

n

Sharing• Socializati

on• Exchange

Application• Direction• Routines

One widely adopted classification of knowledge management strategies – two broad classes

Knowledge management strategy

1. Personalization 2. Codification


1. Personalization – Focus on tacit dimension of knowledge and assume that knowledge is shared mainly through direct inter-personal combination.

person – to – person approach


2. Codification – Knowledge can be effectively extracted and codified,

document- to - person approach

Knowledge are stored and indexed in data bases that enable easy retrieval.

Company can pursue different knowledge management strategies to support the KM

process


Depending on what type of knowledge they consider most

valuable


The genera tendency today suggests that companies

need to balance 2 strategies.

SECI Model

Socialization Externalization

Internalization Combination

Explicit

Tacit Tacit

Explicit

Exp

licit

Exp

licit

Tacit

Tacit

เป็ร�ยบเท�ยบ KM Strategies ก�บ SECI Model ของ Nonaka

Discussion

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Goals Percentage

Gaining competitive advantage 79%

Increasing market efficiencies 75%

Developing customer focuses 72%

Improving product innovation 64%

Goal of KM implementation

Mertims et. al., 2005

The majority of firms become involved in KM initiatives.

Unrealistic expectations of IT solutions that are often hyped by vendors as easy

solutions for managing knowledge

Mistake of KM implementation

Majority of firms’ mistake to approach KM.

Cause

Knowledge management common mistake

Mistake

Thinking that: relying on specific technology, KM can capture “best practice”, success story and lesson learned that can be applied by others

Emphasis is placed on technology rather than• How it should operate• What problem it is supposed to

address• How it be integrated with the

overarching technology strategy

Cause


Mistake

Implementing KM program because the competitors did and achieved concrete benefits

KM implementation should drive from company problem or opportunity. KM should start at department or existing process is most likely to provide a context for a KM initiative.

Cause


Mistake

Failing to address the important question from a knowledge worker’s perspective of “what’s in it for me? ”

Knowledge workers are unlikely to exchange their knowledge without a fair return for their time and energy

Cause


Mistake

Considering KM as a deterministic, static, and one - time - event

KM is a dynamic, evolutionary process in which each state requires specific mechanisms to be effective manage.

Macro trend◦ Increasing in the information and communication

technologies and digital network◦ Globalization of the economy◦ Importance of intangible asset view of the firms◦ The challenge of lost knowledge◦ The rise of service economy

Micro trend- focus on organization

Why KM is more important

Macro trend◦ Increasing in the information and communication

technologies and digital network


Data and information are much more accessible to all sectors than before

Agents in the economy are better linked to information and knowledge


Data and information are much more accessible to all sectors than before

1. The reduction in the cost of computer and component

2. Increase in the speed and bandwidth of communication networks and falling communication equipment cost

3. The liberalization of telecommunication sector – decrease in the cost of network access

Macro trend◦ Globalization of the economy


The worldwide scale of production, distribution, and ownership

The need for systems to enable interaction between people having knowledge and those seeking knowledge as well as system to make organizational knowledge globally accessible

cause

Developing the bridge geographical locations, suppliers, and business partners is one of the key roles of KMS

Change in business environment is not a cause of interest in KNOWLEDGE and

KNOWLEDGE MANAGEMENT but the burst of intellectual activities

KNOWLEDGE is a primary driver of firms’ value and sustain competitive

advantage

Macro trend◦ Importance of intangible asset view of the firms


Traditional economy – Industries based on financial capital (money, land, machine, equipment)

Since 1990s, New economy – Industries based on knowledge and intangible assets and focus on long-term value creation

Knowledge-based economy – because it is based on production, distribution, and use of knowledge and information in the design, produce, distribute products and services.

Knowledge-based resources are considered as the most critical to gain competitive advantage, to do things differently in order to prosper

Macro trend◦ The challenge of lost knowledge


Highly skilled labors spend long time to build up huge amount of knowledge about how things

work and get done

Organizations face with retirement, downsizing, or other turnover are threatened by the loss of

value knowledge

Knowledge leave organization without attempt being made to identify, capture and share it

with others

Remaining employees often search for answers to questions that have been answered, recreate analyses that have been conducted many times

over

Aerospace companyDiscuss

Macro trend◦ The rise of service economy


Over 50% of labor force n USA is in service sector (Cleveland, 1999).

IBM generates more than half of revenue from services.

Increasing in the importance of Service sector.

Macro trend◦ The rise of service economy


Service sector – activities of knowledge workers in service sector added in the form of labor, advice, managerial skilled, entertainment, training.

All professional services is based on special knowledge.

When professional services are based on their clients to make them more knowledgeable , they implement knowledge based services

KM and KMS are needed

Beyond these macro trends, KMS implementation is one of a

parts helps to solve several organization problems



Two dimension used to classified when prioritization is necessary

1. The level of work complexity2. Degree of collaboration required



Integrate Model

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Collaboration Model

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ตี�ดส�นำTransactional

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Expert Modelง�นำร�บผิ�ดชอบเฉพ�ะ

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Collaborative groups

Individual actors

Routine Interpretation / JudgmentComplexity of work

Level of

Inte

rdepen

dent



Transactional Model

Front-line employees: call center, staff or maintenance crews

To ensure consistency, accuracy, repeatability

Challenge for front-line



Often KM technologies used for this purpose are aimed at reducing costs of repetitive processes

Transactional Model

• Routine work• Reliant on formal rules, procedures and

training• Dependent on low discretion work force or

information



Integration Model

• systemic, • repeatable work, • most of knowledge – related process that

remain dispersed

To ensure consistency, repeatability, and efficiency of the processes and

products

Challenge



Integration Model

• Reliant on processes, methodologies or standard

• Dependent on integration across functional boundaries

KMS in this model consists in providing detailed description of the process and activities, together with inputs and outputs



Integration Model

The approaches provide consistency of performed activities within the specific process



Collaboration Model

reflected in the need to look to unfamiliar techniques to drive innovation

• Knowledge – intensive activities• Rely on deep expertise across different

function and on diversified and flexible teams to perform specific job



Expert Model

Highly skilled knowledge worker who rely on individual experience and expertise to realize their work

• They are autonomous, and use interpretation and judgment to conduct specific processes. The work can not be supported by workflows or similar things.



Expert Model

To improve knowledge expert: it should provide templates, sample outputs, high level glide line.

KM is successful when it meets actual needs

Critical condition:

Identifying the needs within organization

Designing activities

And then

KM Implementation : IBM, case study

Discussion

• ประมวลประเด�นำที่��เร�ยนำร !จำ�ก case

• Analyze: what are the main challenges

KMS Taxonomy

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Puttawan. Why Knowledge is difficult to manage? Knowledge management process