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A Review on the Role of Knowledge Management in Business Megha Bisht1, Gopal Datt2 1, 2 - Dept.

of Computer Science, Surajmal Agarwal Pvt. Kanya Mahavidyalaya, Kichha, Dist. U. S. Nagar, Uttarakhand, India E - Mail - meghabishtindia@gmail.com, gdatt1986@gmail.com ABSTRACT: Knowledge Management System (KMS) is a combination of database and information technology. KMS gives the information and various techniques for knowledge representation using pictures, videos, sounds, logical formulation, text and networks. The concept of Knowledge management comes from the human knowledge that has to be preserved and leveraged; because human knowledge has no end. He always learns something from different environment. In our study, we made the efforts to show the current applications of Knowledge management, because any organisation before taking any action we primarily focus on knowledge and information. It is a big help for future planning because by just analysing the knowledge flow we can reduce the risk. For making a good knowledge management system we can use the past experiences of the employees and different methodology and expert advice. These three pillars can help an organisation to stand up in competitive environment. KEYWORDS: KMS, Logical Formulation, Networks. INTRODUCTION: We can not represent the knowledge just through data or neither by information because knowledge is related to both data and information. Knowledge is come from information and information is come from data. Data is a set of numeric values, and facts about events. When a customer goes to a book shop and purchase some books, that transaction can be partly described by data: when he made the purchase, how many books he purchased, how much he paid. But this data tells nothing about why he purchased these books, and why he went to that book shop and why not others. And facts say nothing about whether the book is good enough for him and it has good and sufficient matter for study or not. So you can say that, Data can not tell you what to do, but it is important for organization because it is essential raw material for the creation of information. Information is like sending message from one to another. And it follows the receiver not the sender; because receiver Figure 1: progressive representation of the knowledge decides, whether the message he received is truly information for him or not; and we can transform the data into information by adding some values on it like: what is the purpose of gathering the data? The key components,

statistic or methodologies.[1] Knowledge is not simple. It is complex and fluid mixture of various elements with formally structured representation. Information is become knowledge, when we compare one situation to other situation. When we know the consequences of action and connection between information to information, but what do other people think about this information? So we can say that, data is meaningless until we could not add sum specific meaning with it, and a collection of data for which there is no relational data for making connection between them is not information. There is a pattern between data and information, and once we understand these patterns of information and its implication, it becomes knowledge. The patterns have a tendency of self - contextualization, that is called knowledge and it is not dependent on other information. If we said an organisation sale 10,000 products (say TV) with in month and its sale increase by 5% every month, then what will be the next month sale? I can confidently say that the next month sales will be 10,500 products. In this example 10,000 and 5% are the data because we could not understand these numbers, until we could not give some specific meaning to them like an organisation sale 10,000 products in one month and 5% is the increasing rate of product sale per month, and when I said 10,500 products will be sold in next moth, It means, we can relate the pattern and we know how to calculate the percentage. The above example shows that after processing the data it becomes information, and making a relation among the information patterns comes in the form of knowledge. Organisations can survive in a competitive environment through fully utilization of data and information with the peoples skills, ideas and experience. In our study, we got that knowledge are two types: Tacit Knowledge and Explicit Knowledge. Tacit knowledge is that, which is inside the human brain, and which comes from experience, skills, and Explicit knowledge is the knowledge which in stored in files, books, computer (knowledge then can be stored any where except human brain). Tacit Knowledge: Tacit knowledge is a personnel information which grows with experience and person to person interaction, and this experience is comes with the success and failure in life. So you can say that tacit knowledge is context specific and hard to record, formulate and calculate. The biggest challenge for the organisations is to sharing the tacit knowledge. We can share the tacit knowledge through different activities and methods. The activities includes group discussion, conversation, workshops and training, and the information technology tools like email, messages, video chat and related technology. Tacit knowledge grows when peoples experience grows. Tacit knowledge is unique, so it is difficult for other organisation to replicate. Explicit Knowledge: Explicit knowledge is documented knowledge by nature. It is stored into books, files, database and emails. Explicit knowledge and tacit knowledge is different from each other but explicit knowledge depends on tacit knowledge. Without tacit knowledge, skills and methodologies, we can not understand the explicit knowledge even if, it is fully documented and full of information. So we can say that, without the help of tacit knowledge we could not solve the highly complex explicit knowledge. In an organisation, knowledge is stored in individual parts like: people brain, paper document, electronic database, and electronic knowledge base. [2]

primary repositories of an organisation's knowledge


12% 20% 42% employee's brain paper documentation 22% electronic documentation electronic knowledge base

creation

utilization

transfer

retention

A large part of tacit knowledge is used by organisation for solving the problems, and for making the decision. The views of Alan Webber for knowledge are the location of the new economy is not in the technology, be it the microchip or the global telecommunication network. It is in the human mind. Knowledge management use to improve the performance of the organisations and for increasing the present and future value of the knowledge assets. The general knowledge model organizes into four primary activities: knowledge creation, knowledge retention, knowledge transfer, and knowledge utilization.

Figure 3: The general knowledge model.

Knowledge Creation includes the new knowledge in the system which is developed by interrelated data and information, and this knowledge includes knowledge evaluation, identification, discovery and capture. Knowledge utilization includes the optimal utilization or use of knowledge which is discovered. According to my study the optimal use of knowledge is depend on the experience of the manager (user of the knowledge). Knowledge Retention includes all activities that preserve knowledge and allow it to remain in the system. Once introduced. It also includes those activities that maintain the viability of knowledge within the system. Knowledge Transfer refers to activities associated with the flow of knowledge from one party to another. This includes communication, translation, conversion, filtering, and rendering. [3] Oxford Dictionary (1998) gives several explanations about knowledge: 1 a (usu. fool. by of) awareness or familiarity gained by experience (of a person, fact, or thing) (Have no knowledge of that). b a persons range of information (is not within his knowledge). 2 a (usu. foll. by of) a theoretical or practical understanding of a subject, language, etc. (has a good knowledge of Greek). b the sum of what is known (every branch of knowledge). 3

Philos.

true,

justified

belief;

certain

understanding,

as

opposed

to

opinion.[4]

Davenport and Prusak (1998) characterize knowledge as information combined with experience, context, interpretation, and reflection. It is a high-value form of information that is ready to apply to decisions and actions and therefore underlines as well that knowledge is something we can apply. Knowledge build from information, information is build from data and data is build from message. In terms of computer science, there is one and only one way for sending and receiving the data and that is though signals. a message is physical if it has a sequence of signal which follow some rules. Prof. Dr. Uwe Lmmel said, in informatics we mostly use digital characters carried by some physical message that might be optical (from CD; DVD) or electromagnetic (from chips, disks). Other messages (written text, photographs, sound) can be transformed into digital characters as well.

Figure 4: from message to knowledge

In this figure4 1,500 is only data its mean nothing but if we add some meaning with it, like 1,500 is the turnover of a company in dollar then it become information. We view on knowledge as applied information, i.e. information becomes knowledge if we can apply the information. Application can be performed by a human being or even by a machine. Knowledge Management can be best motivated and explained by the statement: If only X knew what X knows[5]. shuhab-u-tariq gave a report on knowledge management implementation in Infosys and he said, the aim of implementing the knowledge management in Infosys is, establishing a learn once, use anywhere paradigm[6]. IMPLEMENTATION OF KNOWLEDGE MANAGEMENT : Knowledge management Implementation is very successful in various respective organisations like: IBM, Infosys. Knowledge management in IBM: In 1994, IBM started the first KM program that focus on asset management. The idea was to create a knowledgebase of the work and the employees in order to reuse the organizational and people knowledge and deliver better service to client[7]. Raven is the project code-name for an integrated collection of Knowledge Management technologies that include, a knowledge portal for the management of personal and community information and discovery tools for content tracking and analysis, user profiling, and expertise location. As a key element of lotus and IBMs overall knowledge management strategy, Raven products are the technological manifestation of the business methodologies framed by the concept of "People, Places & Things." people are the main

focal point of knowledge management , places there can create and act on knowledge and things are to meet their business goals. The key components of raven are: K-station portal and discovery server. K- Station provide capturing, sharing, and reusability of knowledge. KStation portal provide these facility through integration of technology and deliver awareness to people by sending messages, it also provide online help to the user. The Discovery Server provide informations through structured and unstructured content in order to extract, organize, and store the data that may be relevant to a given business task. The server also tracks relevant end user activity, identifying those individuals who may be best suited to address the task. By tracking these human activities -- such as the end users use of the Web, desktop applications, and other company resources. [9]

Figure 5: Knowledge Management strategy key components in Lotus and IBM.

Knowledge management in Infosys: Infosys began its KM initiative in late 2000; the main reason for implementing knowledge management in Infosys is that employees can learn something any where, any time. And the knowledge is managed through three centrally operated knowledge repositories : knowledge shop (K- Shop), process access database(PAD), and people knowledge map(PKM).K-Shop built on Microsoft site server technology and accessed with in organisation by the employees through intranet Sparsh. K-Shop is a collection of knowledge, which is gathered through knowledge sharing, paper submission, innovative ideas, technical solution, experiences and other resources. K-Shop has a excellent search facility. Employee can search any thing any time just on a button click. Process access database (PAD) is other online system which helps to contain project artefacts such as project plan, database design, documentation, test results etc. And employee can access these information for help in other projects those are similar. People knowledge map (PKM) is like a knowledge directory of experts. And People knowledge map provide various topics for solving the employees problem. There are various expert technology enabled teams that can be contacted through this portal which help employees working on some specific technology to resolve their issues and thus in a ways helps in a faster delivery.[6] Swiss Forum for Organizational Learning and Knowledge Management: In June 1995 experts founded the Swiss Forum for Organizational Learning and Knowledge Management at the University of Geneva. This Forum is a platform for partitioning for knowledge as a strategic resource and tool for protecting their competitiveness. They also

define some standards for a knowledge management. The following are basic aspects of such a model: Compatibility: Knowledge management requires a good sharing of information so that we can understand the actual need of organization, such as Total Quality Management or Business Process Reengineering. Problem Orientation: Knowledge management has to make a contribution to the solution of concrete problems, so it should be full of ideas to solve the problem of people. Knowledge management is a subject which should be implemented practically in organisation for better result. Comprehensibility: The company must choose terms and ideas of knowledge management that are relevant to its success and readily understood across the company. Action Orientation: In organisations every step which is taken is matter so through Analyses in knowledge management managers can evaluate the impact of their decision and should lead to focused action. Appropriate Instruments: The final goal of a knowledge management concept is to provide a range of such instruments and tools to the organisation which can help them to lead. Many knowledge problems occur because organizations neglect one or more of these building blocks and thus interrupt the knowledge cycle. For example, if the research results of the Market Research Department are not available to Product Development, this knowledge cannot be used in the process of product development. If the steps of an important problemsolving process are not documented, they may disappear from the organizations memory, making successful repetition of the process impossible. They also define the building blocks of knowledge management: Building blocks of knowledge management: There are different building blocks of knowledge management which help organisation to run properly and they are arranged in a manner. Their arrangement in the model follows certain principles. An inner cycle consists of the building blocks of identification, acquisition, development, distribution, preservation, and use of knowledge. An outer cycle consists of all these activities plus goal-setting and measurement.

Figure 6: building block of knowledge management.

Knowledge goals: knowledge goals toward the organisation are to give effective information at the right time and to determine which capabilities should be built on which level. We can classify the knowledge goal into three different goals: Normative knowledge goals, strategic knowledge goal, and operational knowledge goals. Normative knowledge goals, deal with the creation of a knowledge-sensitive corporate culture, and also how to create the preconditions for effective knowledge management. Strategic knowledge goals define organizational core capabilities and describe the future knowledge needs of the company. Operational knowledge goals make sure that normative and strategic knowledge goals will be translated into action. Knowledge identification: Most big companies lose track of their internal and external data, information, and capabilities. This lack of transparency leads to inefficiency, uninformed decisions, and redundant activities. And we can increase the internal information transparency by with the help of knowledge map. Knowledge acquisition: we can import knowledge from four different channels: knowledge held by other firms- Acquiring other peoples knowledge can build a companys competencies fast.
Stakeholder knowledge- This is an inexpensive way to get ideas for new and improved products and Services. Experts - Companies can recruit specialists either as fulltime staff members or for temporary employment knowledge products- In most cases, their potential can be realized only through human action.

Knowledge development: Knowledge development intended to produce internal or external knowledge on individual and the collective level. The process of individual knowledge development relies on creativity and on systematic problem solving. Collective knowledge development involves the learning dynamics of teams. Knowledge distribution: not every one needs to know every thing, so knowledge management is differentiated in to parts: technical knowledge distribution and efficient knowledge distribution. Technical knowledge distribution infrastructures can support efficient knowledge exchange within organizations and connect formerly separated experts through an electronic network. Efficient knowledge distribution can generate not only time and quality advantages, but a direct rise in customer satisfaction. Knowledge use: Knowledge usemeaning the productive deployment of organizational knowledge in the production process. Efficient knowledge distribution can generate not only time and quality advantages, but a direct rise in customer satisfaction. Knowledge preservation: the knowledge which we collect through our experience must be preserved. So that we can use them when we needed, many organisations preserved knowledge by making there replica in different system for security purpose like if one system is damaged or corrupted we can recover it from other system. Knowledge measurement: knowledge measurement holds considerable potential value, as has been demonstrated in a related field by human resources managers, who have had to prove the impact of training investments.[8] SUMMARY: Knowledge management is the way for achieving the breakthrough business performance through the combine people effort, processes and technology. This paper focused on Knowledge management and its role in business. Knowledge in not just a collection of information it is beyond information, which can help to make decision for business. George Bernard Shaw said, If you have an apple and I have an apple and we exchanges these apples then you and I will still each have one apple. But if you have an idea and I have an idea and we exchange these ideas, then each of us will have two ideas. Therefore Knowledge storing, sharing, and reusability should be encouraged by both individual employee and the company level.

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