Owing to changes in the business practices of organisations, there is increased interest in `Knowledge Management'. The latest business practice is to downsize and create lean organisations where fewer employees do more work. Mergers and acquisitions are adding their pressure on enterprises to reduce work force. Consequently, knowledge gained and developed by seasoned employees who are leaving organisations under the `Downsizing Scheme' or `Voluntary Retirement Scheme' is being wasted. Hence, many business enterprises have started realising the importance of creating an organisational knowledge base.
Organisational knowledge base
It is generally perceived that knowledge management is the key to preserving and enhancing the knowledge base of an organisation. But after a close look at organisations may reveal that many elements of knowledge management are already available within the existing set-up. The elements of knowledge source in any organisation can be classified as explicit, embedded and tacit.
Knowledge represented through documents, manuals, emails and databases is "explicit". On the other hand, knowledge found in business processes, products and services is "embedded". Undocumented knowledge that is captured during discussions, meetings and interaction with persons inside and outside the organisation is "tacit".
These elements, either in the form of electronic or paper documents, make up only a small portion of corporate knowledge that is shareable. The rest, which resides in the minds of the employees, is often not easily shared. The challenge that many organisations face today is identifying where such knowledge resides and how to communicate it across their employees.
Most of the popular conceptualisation of knowledge management is narrowly focused on using information technology to physically codify knowledge from the minds of employees to databases.
Codification of tacit knowledge
Many business enterprises feel that they can install an information system to extract and codify experts' knowledge in explicit forms which can be widely shared. They think that knowledge can be extracted (mined) from the people (repositories) and packaged as a "commodity".
However, what they seem to forget is that tacit knowledge cannot be communicated, without knowing the subject. It is not simple to codify because that knowledge is context specific. That plus the possibility that it could be politically sensitive are reasons why most valuable tacit knowledge in a firm may not lend itself to recording via information technology. Therefore, attempts to codify tacit knowledge only result in creating a knowledge base that will either be redundant or irrelevant to a wide audience.
Role of information and telecommunication
The convergence of information technology and telecommunication has replaced paper-driven processes with electronic methods. Consequently, business requirements are changing at an exponential rate.
Likewise, information and telecommunication technologies have advanced with the exponential increase in computing power and communication capability. Sophisticated data warehouses and text databases are being used to store information in the form of text and quantitative data. Software tools such as data and text mining provide information on patterns in the vast amount of data.
The above technologies are the various information tools that will be the base for the creation of knowledge base systems. These are communication systems designed to facilitate the sharing of knowledge rather than just information. Business success lies in making use of knowledge base systems for valid action.
However, knowledge base systems created through the convergence of information and telecommunications technologies will be ineffectual unless accompanied by a significant shift in the way people work.
It will not help to merely graft knowledge management tools onto existing work practices. This is because the change of roles and tasks are not incorporated in these tools. Moreover, knowledge management tools are exclusive to the business enterprises that implement them.
Knowledge harvesting
The greatest challenge in implementing effective knowledge management is helping employees make the transition from knowledge hoarders to knowledge sharers. With knowledge comes power and influence in organisations, and today's business scenario finds most employees working in a knowledge hoarders' environment. Many of them also follow the practice of a selective distribution of knowledge.
Because young executives do not intend remaining with an organisation for long, they do not recognise the value of accumulated knowledge. All they focus on is completing the tasks assigned to them as quickly as possible in order to move onto to other assignments or leave the organisation.
This is one reason why they are unable to adapt to the new knowledge management environment. They need to realise that they have to work under competitive pressure in the globalised scenario.
The role of a knowledge management environment is to manage carefully "Human centred assets" in business enterprises. What is required is a change in mindset among managers.
Managers are expected to act as mentors to help employees change their role from traditional information gatekeepers to knowledge workers to make use of the organisational knowledge base. As Peter F. Druker observed: "Now the definition of a manager is somebody who makes knowledge productive".
MZA
Monday 26 December 2011
Implementing KM
It may be difficult to introduce KM across the organization in one go. One way to kick-start KM activities in an organization is to launch short burst KM initiatives. Typically, they may involve creating an intranet, creating knowledge repositories, setting up data warehouses, decision support tools, implementing groupware, helping knowledge workers come together and mapping internal expertise. Successful KM projects aim at solving a problem that is crying for a solution.
The right project to launch can be determined only after thoroughly examining the key knowledge processes in the business. Some involve the creation of knowledge. R&D is a good example. Others involve the sharing of knowledge. Other processes may involve discovering/finding knowledge (market research), applying knowledge (after sales service) or reusing knowledge (an educators).
Broadly speaking, KM initiatives can focus on either knowledge creation or knowledge sharing or both. Knowledge creation is largely about innovation. There is plenty of literature on managing the innovation process. We will not go into the details here except for pointing out that innovation is as much about developing specialized expertise as about culture. If the culture does not encourage experimentation and risk taking, innovation will not really take off, even if the organization has the most talented people.
Knowledge sharing initiatives must be tightly linked to the company’s business processes and what people need to know to do their jobs effectively. The right questions to ask are: What are the jobs people are trying to get done? What is the knowledge base required? Customers can also be asked what they expect the company to know.
Knowledge sharing initiatives can take various shapes. A yellow-page may be a good starting point. A knowledge repository may house important documents that are frequently used. A help desk can play the role of a librarian – guiding people around the repository, keeping the databases up to date, etc. A bulletin board can help people place requests so that others within the system can respond. To facilitate sharing of tacit knowledge, a physical context may also be needed. That means providing meeting spaces and conference rooms. Suitable design of the work place can also help by creating more opportunities for conversations on corridors and near coffee vending machines.
MZA
The right project to launch can be determined only after thoroughly examining the key knowledge processes in the business. Some involve the creation of knowledge. R&D is a good example. Others involve the sharing of knowledge. Other processes may involve discovering/finding knowledge (market research), applying knowledge (after sales service) or reusing knowledge (an educators).
Broadly speaking, KM initiatives can focus on either knowledge creation or knowledge sharing or both. Knowledge creation is largely about innovation. There is plenty of literature on managing the innovation process. We will not go into the details here except for pointing out that innovation is as much about developing specialized expertise as about culture. If the culture does not encourage experimentation and risk taking, innovation will not really take off, even if the organization has the most talented people.
Knowledge sharing initiatives must be tightly linked to the company’s business processes and what people need to know to do their jobs effectively. The right questions to ask are: What are the jobs people are trying to get done? What is the knowledge base required? Customers can also be asked what they expect the company to know.
Knowledge sharing initiatives can take various shapes. A yellow-page may be a good starting point. A knowledge repository may house important documents that are frequently used. A help desk can play the role of a librarian – guiding people around the repository, keeping the databases up to date, etc. A bulletin board can help people place requests so that others within the system can respond. To facilitate sharing of tacit knowledge, a physical context may also be needed. That means providing meeting spaces and conference rooms. Suitable design of the work place can also help by creating more opportunities for conversations on corridors and near coffee vending machines.
MZA
Data, Information and Knowledge
Data, Information and Knowledge
“Data”, “information” and “knowledge” are three different terms. Understanding what they stand for and how they differ, is the starting point in KM.
Data
Data is a set of discrete, objective facts about events . Data can be viewed as structured records of trans¬actions.
People gather data because it is factual and generates a feeling of scientific accuracy. They think that if enough data is available, objectively correct decisions will automatically follow. But as Davenport and Prusak have pointed out, this is false on two counts. First, too much data can confuse us and make it harder to make sense of a situation. Second, there is no inherent meaning in data. Data as it provides no judgment or interpretation, cannot tell us what to do. Despite these limitations, data is im¬portant to organizations, because it is what gives rise to information
Data management is typically evaluated in terms of cost, speed, and capacity. How much does it cost to store or retrieve data? How soon can we get it into the system or retrieve it? How much is the storage capacity? Qualitative measurements are timeliness, relevance, and clarity . Do we have access to it when we need it? Is it what we need? Can we make sense out of it?
Information
Information is a message meant to change the way the receiver perceives some¬thing and have an impact on his judgment and behavior. Information is data that makes a difference .
Quantitative measures of information management focus on the degree of connectivity and the number of transactions: How many downloads are taking place daily? How many messages do we send in a given period? Qualitative measures focus on the depth and usefulness of information. Does the message give us some new insight? Does it help make sense of a situation and contribute to decision making or problem solving?
Knowledge
It is important to understand what knowledge is and what it does because too often, organizations focus all their efforts on data/information management. In the process, the unique dimensions of knowledge are completely ignored. For example, an excessive focus on IT effectively converts KM into information management. As we shall see later, the organizations that have the most effective KM processes, synergize information technology and human networks to give a boost to knowledge creation and sharing.
Knowledge is broader, deeper and richer than data or information. Information becomes knowledge, through :
Knowledge because it is more actionable is more valuable than data or information. Better knowledge leads to improved productivity or lower cost and facilitates better decisions.
Knowledge develops over time, through experience which provides a historical perspective from which to view and understand new situations and events. Experience helps us to recognize familiar patterns and make connections between what is happening now and what hap¬pened in the past. Experience changes the focus from what should happen into what does happen. Knowledge is much more than a recipe to deal with routine situations. When we become knowledgeable people we see some patterns even in new situations and can respond appropriately. We don't have to start from scratch every time.
There are two kinds of knowledge - Explicit and Tacit. Explicit knowledge can be codified and transmitted formally and systematically through documents, databases, intranet, email, etc. Tacit knowledge is difficult to encode, formalize or articulate. It is personal and context specific. Tacit knowledge is shared and developed by observation and practice, through a process of trial and error.
Though, it may appear that data, information and knowledge lie on a continuum, there are discontinuities that make knowledge fundamentally different from information. The discontinuity between information and knowledge, is caused by how knowledge is created from the newly received information. New insights are typically internalized by establishing links with already existing knowledge, which helps us make sense of received information. Hence, the new knowledge is as much a function of prior knowledge as it is of received inputs. In short, data can be “processed” into information say by using computers, but information cannot be “processed” into knowledge in a similar manner. The human factor plays a critical role in the conversion of information to knowledge.
Knowledge provides us with the ability to handle different situations and to anticipate implications, judge their effects and improvise. Unlike data and information, knowledge can judge new situations in light of what is already known and also judge and refine itself in response to new situations.
Knowledge is like a living system that grows and changes as it interacts with the environment.
By helping us deal with complexity, knowledge provides value. As Davenport & Prusak mention , it is tempting to look for simple answers to complex problems and deal with uncertainties by pretending they don't exist. Knowing more usually leads to better decisions than knowing less, even if the "less" seems clearer and more definite. Certainty and clarity may seem convenient but they often come at the price of ignoring key factors.
MZA
“Data”, “information” and “knowledge” are three different terms. Understanding what they stand for and how they differ, is the starting point in KM.
Data
Data is a set of discrete, objective facts about events . Data can be viewed as structured records of trans¬actions.
People gather data because it is factual and generates a feeling of scientific accuracy. They think that if enough data is available, objectively correct decisions will automatically follow. But as Davenport and Prusak have pointed out, this is false on two counts. First, too much data can confuse us and make it harder to make sense of a situation. Second, there is no inherent meaning in data. Data as it provides no judgment or interpretation, cannot tell us what to do. Despite these limitations, data is im¬portant to organizations, because it is what gives rise to information
Data management is typically evaluated in terms of cost, speed, and capacity. How much does it cost to store or retrieve data? How soon can we get it into the system or retrieve it? How much is the storage capacity? Qualitative measurements are timeliness, relevance, and clarity . Do we have access to it when we need it? Is it what we need? Can we make sense out of it?
Information
Information is a message meant to change the way the receiver perceives some¬thing and have an impact on his judgment and behavior. Information is data that makes a difference .
We transform data into information by adding value in various ways :
- Contextualizing: Understanding for what purpose the data was gathered
- Categorizing: Knowing the units of analysis or key components of the data
- Calculating: Analyzing the data mathematically or statistically
- Correcting: Removing errors from the data
- Condensing: To make the data available in a more concise, user friendly form
Quantitative measures of information management focus on the degree of connectivity and the number of transactions: How many downloads are taking place daily? How many messages do we send in a given period? Qualitative measures focus on the depth and usefulness of information. Does the message give us some new insight? Does it help make sense of a situation and contribute to decision making or problem solving?
Knowledge
It is important to understand what knowledge is and what it does because too often, organizations focus all their efforts on data/information management. In the process, the unique dimensions of knowledge are completely ignored. For example, an excessive focus on IT effectively converts KM into information management. As we shall see later, the organizations that have the most effective KM processes, synergize information technology and human networks to give a boost to knowledge creation and sharing.
Knowledge is broader, deeper and richer than data or information. Information becomes knowledge, through :
- Comparison: How does information about this situation compare with other situations?
- Consequences: What implications does the information have for deci¬sions and actions?
- Connections: How does this bit of knowledge relate to others?
- Conversation: What do other people think about this information?
Knowledge because it is more actionable is more valuable than data or information. Better knowledge leads to improved productivity or lower cost and facilitates better decisions.
Knowledge develops over time, through experience which provides a historical perspective from which to view and understand new situations and events. Experience helps us to recognize familiar patterns and make connections between what is happening now and what hap¬pened in the past. Experience changes the focus from what should happen into what does happen. Knowledge is much more than a recipe to deal with routine situations. When we become knowledgeable people we see some patterns even in new situations and can respond appropriately. We don't have to start from scratch every time.
There are two kinds of knowledge - Explicit and Tacit. Explicit knowledge can be codified and transmitted formally and systematically through documents, databases, intranet, email, etc. Tacit knowledge is difficult to encode, formalize or articulate. It is personal and context specific. Tacit knowledge is shared and developed by observation and practice, through a process of trial and error.
Though, it may appear that data, information and knowledge lie on a continuum, there are discontinuities that make knowledge fundamentally different from information. The discontinuity between information and knowledge, is caused by how knowledge is created from the newly received information. New insights are typically internalized by establishing links with already existing knowledge, which helps us make sense of received information. Hence, the new knowledge is as much a function of prior knowledge as it is of received inputs. In short, data can be “processed” into information say by using computers, but information cannot be “processed” into knowledge in a similar manner. The human factor plays a critical role in the conversion of information to knowledge.
Knowledge provides us with the ability to handle different situations and to anticipate implications, judge their effects and improvise. Unlike data and information, knowledge can judge new situations in light of what is already known and also judge and refine itself in response to new situations.
Knowledge is like a living system that grows and changes as it interacts with the environment.
By helping us deal with complexity, knowledge provides value. As Davenport & Prusak mention , it is tempting to look for simple answers to complex problems and deal with uncertainties by pretending they don't exist. Knowing more usually leads to better decisions than knowing less, even if the "less" seems clearer and more definite. Certainty and clarity may seem convenient but they often come at the price of ignoring key factors.
MZA
Understanding Knowledge Management
What exactly do we mean by KM? KM does not have the same meaning across organizations. Some companies focus on knowledge sharing among individuals or on building elaborate educational and learning capabilities. Others emphasize the use of technology to locate, capture, manipulate and distribute knowledge. A few others focus on knowledge utilization to improve the enterprise’s operational and overall effectiveness. Still others pursue building and exploiting Intellectual Capital (IC) to enhance the enterprise’s economic value and generate sustainable competitive advantage.
While there may be different approaches, in a broad sense, KM is the systematic and explicit management of knowledge-related activities, practices, programs, and policies within the enterprise. The goal of KM is to build and exploit knowledge assets effectively and gainfully. The key challenge in KM is to leverage the knowledge of individuals for the benefit of the organization. By systematically mapping, categorizing, and benchmarking organizational knowledge, KM makes knowledge more accessible throughout an organization. A systematic approach to managing knowledge also helps a company prioritize particular strategic areas of knowledge. This enables the company to strengthen its core capabilities and compete more effectively in the market place.
As Amrit Tiwana says , “KM enables the creation, distribution and exploitation of knowledge to create and retain greater value from core businesses competencies. KM addresses business problems particular to your business – whether it is creating and delivering innovative products or services, managing and enhancing relationships with customers, partners and suppliers or improving work processes. The primary goal of KM in a business context is to facilitate opportunistic application of fragmented knowledge through integration.”
MZA
While there may be different approaches, in a broad sense, KM is the systematic and explicit management of knowledge-related activities, practices, programs, and policies within the enterprise. The goal of KM is to build and exploit knowledge assets effectively and gainfully. The key challenge in KM is to leverage the knowledge of individuals for the benefit of the organization. By systematically mapping, categorizing, and benchmarking organizational knowledge, KM makes knowledge more accessible throughout an organization. A systematic approach to managing knowledge also helps a company prioritize particular strategic areas of knowledge. This enables the company to strengthen its core capabilities and compete more effectively in the market place.
As Amrit Tiwana says , “KM enables the creation, distribution and exploitation of knowledge to create and retain greater value from core businesses competencies. KM addresses business problems particular to your business – whether it is creating and delivering innovative products or services, managing and enhancing relationships with customers, partners and suppliers or improving work processes. The primary goal of KM in a business context is to facilitate opportunistic application of fragmented knowledge through integration.”
MZA
Knowledge Management
As the foundation of today’s global economy moves away from natural resources to intellectual assets, knowledge has increasingly become the only basis for a competitive advantage that can be sustained. Rather than land, labor or capital it is knowledge that is the key factor of production in many industries. In this “third wave”, the wealth system is increasingly based on thinking, knowing and serving customers in the way of providing them a unique experience. Companies need superior knowledge to leverage their traditional resources and capabilities in new and distinctive ways to serve their customers. And they must do this more effectively compared to competitors. As a result, Knowledge Management (KM) is being taken seriously by companies across industries.
A major driver of KM in recent times has been Information Technology (IT). But KM should not be equated with IT. It is human beings who think, experiment and learn to create knowledge. Much of the valuable knowledge that lies in the brains and minds of people can be best shared through human interaction. IT is only an enabler, though in the words of famous journalist, Thomas A Stewart ,’it is one hell of an enabler’. Without IT, would be quite difficult to replicate and distribute knowledge related documents in a cost effective way across an organization that is largely geographically dispersed. As Stewart mentions , “KM is knowing what we know, capturing and organizing it and using it to produce returns. Nothing in that definition says anything about computers but modern knowledge management is inconceivable without using them and in some sense they created it.”
A final point before we get into more details is that KM should not be looked upon as a new mantra that can produce a magical impact on the functioning of an organization. Organizations need to take a practical hard-nosed perspective when it comes to managing knowledge. Like any other initiative, KM activities will build momentum, only if they generate business value. That in turn is possible only if KM helps the organization to cut costs by improving efficiency or to innovate and come up with new products/services.
MZA
A major driver of KM in recent times has been Information Technology (IT). But KM should not be equated with IT. It is human beings who think, experiment and learn to create knowledge. Much of the valuable knowledge that lies in the brains and minds of people can be best shared through human interaction. IT is only an enabler, though in the words of famous journalist, Thomas A Stewart ,’it is one hell of an enabler’. Without IT, would be quite difficult to replicate and distribute knowledge related documents in a cost effective way across an organization that is largely geographically dispersed. As Stewart mentions , “KM is knowing what we know, capturing and organizing it and using it to produce returns. Nothing in that definition says anything about computers but modern knowledge management is inconceivable without using them and in some sense they created it.”
A final point before we get into more details is that KM should not be looked upon as a new mantra that can produce a magical impact on the functioning of an organization. Organizations need to take a practical hard-nosed perspective when it comes to managing knowledge. Like any other initiative, KM activities will build momentum, only if they generate business value. That in turn is possible only if KM helps the organization to cut costs by improving efficiency or to innovate and come up with new products/services.
MZA
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