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Knowledge Management

Knowledge Management. Rev: Feb, 2012 Euiho (David) Suh , Ph.D. POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management Engineering POSTECH. Contents. Discussion Questions.

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Knowledge Management

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  1. Knowledge Management Rev: Feb, 2012 Euiho (David) Suh, Ph.D. POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management EngineeringPOSTECH

  2. Contents

  3. Discussion Questions • Explain more than three definitions of knowledge • How is knowledge different from dataand information? • What are the purposes of KM? Give your opinion about why KM is important in a company? • What is KMP? Briefly explain each step of the process • What kinds of IT can be used to KMP? Give an example for each step • What is CoP? Make an hypothetical example of CoP and give your own way to make it successful

  4. Knowledge 1. Concept of Knowledge • Definition of Knowledge • A justified belief that increases an entity’s capacity for effective action[Huber, 1991; Nonaka, 1994] • Personalized information related to facts, procedures, concepts, interpretations, ideas, observations, and judgments [Alavi, 2001] • Data vs. Information vs. Knowledge [Dreske, 1981; Machlup, 1983; Vance, 1997] • Alternative Perspectives

  5. 2. Knowledge Management (1) Concept and Technology of KM Knowledge Management (KM) Capture and documentationof individual explicit and tacit knowledge Disseminate itwithin the organization • Definition • Strategies and processes designed to identify, capture, structure, value, leverage, and sharean organization’s intellectual assets(knowledge) to enhance the organization’s performance and competitiveness • Critical Activities of KM • Purposes of KM • Making knowledge visible and show the role of knowledge in an organization • Developing a knowledge-intensive culture • Building a knowledge infrastructure • Successful knowledge management • Creating techniques, technologies, systems, & rewards for getting employees to sharewhat they know • Making better use of accumulated workplace and enterprise knowledge

  6. 2. Knowledge Management (1) Concept and Technology of KM Knowledge Management Techniques Document Management Information Creation, Sharing,and Management EnterpriseIntelligence Leveraging organizational “know-how”Performance supportInteracting with operational databasesBuilding expert networks Capturing & distributing expert storiesReal-time information managementCommunication and collaborationNew content creation Accessing and retrievingdocuments stored online

  7. 2. Knowledge Management (2) Knowledge Management Process Knowledge Management Process (KMP) Knowledge Creation Knowledge Storage/Retrieval Knowledge Transfer (Sharing) KnowledgeApplication

  8. 2. Knowledge Management (2) Knowledge Management Process Knowledge Creation • Definition [Pentland, 1995] • Developing new content or replacing existing content within the organization’s tacit and explicit knowledge • Four modes of Knowledge Creation [Nonaka, 1994] • Socialization, Externalization, Combination, Internalization • Organization’s “ba” [Nonaka and Konno, 1998] • Environments facilitating new knowledge creation • Common place or space for creating knowledge

  9. 2. Knowledge Management (2) Knowledge Management Process Knowledge Storage/Retrieval • Definition [Stein and Zwass, 1995] • Collective or organizational memory; the means by which knowledge from the past, experience, and events influence present organizational activities • Necessity [Argote et al., 1990; Darr et al., 1995] • While organizations create knowledge and learn, they also forget(i.e., do not remember or lose track of the acquired knowledge) • Types of Organizational Memory [El Sawy et al., 1996; Stein and Zwass, 1995] • Effects of Knowledge Storage

  10. 2. Knowledge Management (2) Knowledge Management Process Knowledge Transfer Fig 1. Knowledge Transfer among Individuals in a Group • Definition • Process of transferring knowledge to locations where it is needed and can be used • Driving Force • Communication processes • Information flows • Five Elements ofKnowledge Transfer[Gupta and Govindarajan, 2000] • Perceived valueof the source unit’s knowledge • Motivational dispositionof the source • Existence and richnessof transmission channels • Motivational dispositionof the receiving unit • The absorptive capacityof the receiving unit

  11. 2. Knowledge Management (2) Knowledge Management Process Knowledge Application • Definition • Integration of knowledge to create organizational capability • Importance of Knowledge Application • Source of competitive advantage resides in the application of the knowledge,rather than in the knowledge itself • Three Primary Mechanisms [Grant, 1996b] • Directives • Specific set of rules, standards, procedures, and instructions developed through the conversion of specialists’ tacit knowledge to explicit and integrated knowledge for efficient communication to non-specialists [Demsetz, 1991] • Organizational routines • The development of task performance and coordination patterns • Interaction protocols • Process specifications • Allowing individuals to apply and integrate their specialized knowledge without articulation or communication • Relatively simple or highly complex(e.g. organizing activities based on time-patterned sequences such as an assembly line / a cockpit crew flying a large passenger airplane) • Self-contained task teams • Solving problems in situations where task uncertainty and complexity preventthe specification of directives and organizational routines

  12. Knowledge Management System (KMS) 3. Knowledge Management System • Definition • A class of information systems applied to managing organizational knowledge • Necessity of KMS • Reliance of knowledge management on IT as an important enabler • Characteristics of KMS • Major strategic use of IT • Managing organizational learning and know-how • Helping knowledge workers create, organize, and make available important knowledge • Making knowledge available wherever and whenever it is needed • Common Applications of IT to KM • Coding and sharing best practices: internal benchmarking • Creation of corporate knowledge directories: map internal expertise • Creation of knowledge networks: online forums for discussions

  13. KMP & IT 4. Knowledge Management & IT • Knowledge Management Processes and the Potential Role of IT

  14. Knowledge Perspectives & KM & KMS 4. Knowledge Management & IT • Knowledge Perspectives and Their Implications

  15. Communities of Practice (CoP) (1/2) 5. Communities of Practice • Definition of CoP • Groups of people informally bound together by shared expertise and passion in free-flowing, creative ways that foster new approaches to problems • Engineers engaged in deep-water drilling • Consultants who specialize in strategic marketing • Frontline managers in charge of check processing at a large commercial bank • Purposes of CoP • To develop members’ capabilities and to build and exchange knowledge • Functions of CoP • Driving strategy • Generating new lines of business • Solving problems • Promoting the spread of best practices • Developing people’s professional skills • Helping companies recruit and retain talent

  16. Communities of Practice (CoP) (2/2) 5. Communities of Practice Evaluate the Communities’ value in nontraditional ways Bring the right People together Provide an Infrastructure where communities can thrive • The effects of CoP are often delayed • Results generally appear in the work of teams and businesses, not in the CoP • The best way to evaluate CoP is listening to members’ stories, which can clarify the complex relationships among activities, knowledge, and performance • CoP are vulnerable because they lack the legitimacy – and the budgets – of established departments • One way to strengthen CoP is to provide them with official sponsors and support teams • The task is to identify such groups and help them come together as CoP • Defining a community’s domain makes members feel personally connected to the group’s area • Reasons Why CoP aren’t More Prevalent • Recently established term • Only several dozen forward-thinking companies trying to “install” or nurture them • CoP’s characteristic that it is not particularly easy to build and sustain them or to integrate them with the rest of organization • Way to successfully Nurture CoP

  17. Case Study 6. Case Study

  18. Reference O’Brien & Marakas, “Introduction to Information Systems – Fifteenth Edition”, McGraw – Hill, Chapter 2, pp. 43~71 Maryam Alavi and DorothyE. Leidner, “Review: Knowledge Management and Knowledge Manage Systems: Conceptual Foundations and Reasarch Issues”,MIS Quarterly Vol.25 No.1, pp.107-136/March 2001 Etienne C. Wegner and William M. Snyder, “Communities of Practice: The Organizational Frontier, Harvard Business Review, January-February 2000 “What is knowledge management? definition and meaning”, BusinessDictionary.com

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