KNOWLEDGE MANAGEMENT

LEARNINGS Knowledge Management Concerns and Future. Key issues KM Strategies Architecture and Tools KM Practices

What is Knowledge? What is knowledge management? Need of KM General Concepts KM process KM architecture KM tools KM strategies KM practices Key issues KM-concern and futures

Knowledge
Knowledge is evolving mix of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. In organizations, knowledge often becomes embedded in artifacts such as documents, video, audio or repositories and in organizational routines, processes, practices, and norms. For knowledge to have value it must include the human additions of context, culture, experience, and interpretation. Organizational knowledge is considered to be an integral component of what organizational members remember and use meaning that knowledge is actionable. There are two types of knowledge: 1. Tacit/Implicit Knowledge Tacit knowledge is that which is understood within a knower s mind and which cannot be directly expressed by data or knowledge representations and is commonly understood as unstructured knowledge. It consists of cognitive and technical components. Cognitive components are the mental models used by the knower that cannot be expressed directly by data or knowledge representations. Technical components are concrete concepts that can be expressed readily. 2. Explicit Knowledge Explicit knowledge on the other hand is th at knowledge which can be directly expressed by knowledge representations and is commonly known as structured knowledge. Knowledge cannot be purely tacit or explicit. Rather it is mix of the two things with amount of implicitness and explicitness varies with the user. This is the knowledge continuum where purely tacit and purely explicit form the end points with knowledge existing somewhere on the continuum between the two end points. Knowledge transfer in an organization occurs when members of an organiz ation pass tacit and explicit knowledge to each other. Information technology (IT) assists knowledge transfer by providing knowledge repositories and methods for capturing and retrieving knowledge. The extent of the dimension of the knowledge being capture d limits the effectiveness of IT in assisting KM. IT works best with knowledge that is primarily in the

explicit dimension. Knowledge that is primarily in the tacit dimension requires that more context be captured with the knowledge in which context is the information used to explain what the knowledge means and how it is used. 4 modes of knowledge transfer proposed by Nonaka and Takeuchi (SECI model) y Socialization is the process of sharing experiences and thereby creating tacit knowledge such as mental models and technical skills. Tacit knowledge can be obtained without using language through observation, imitation, and practice. y Externalization is the process of articulating tacit knowledge in the form of explicit concepts, taking the shapes of metaphors, analogies, concepts, hypotheses, or models. y Combination is the process of systemizing concepts into a knowledge system by combining different bodies of explicit knowledge. Explicit knowledge is transferred through media such as documents, meetings, and e-mail and/or phone conversations. Categorization of this knowledge can lead to the generation of new knowledge. y Internalization is the process of converting explicit knowledge into tacit knowledge and is closely related to learning by doing. These four modes or processes show that the transfer of knowledge is dependent upon the transfer of a common understanding from the knower to the user of the knowledge. Common understanding consists of the context (the story behind the knowledge, the condi tions and situations that make the knowledge understandable) and the experience (those activities that produce mental models of how the knowledge should be used) expressed in a culturally understood framework. Seven knowledge layers are possible in organizations as described Level
Customer Knowledge Stakeholder Relationships Business Environment Insights Organizational Memory Knowledge in Processes Knowledge in Products and Services Knowledge in People

Key activities
Developing deep knowledge sharing relationships. Understanding the needs of your customers customers. Articulating unmet needs. Identifying new opportunities. Improving knowledge flows between suppliers, employees, shareholders, community, etc. using this knowledge to inform key strategies Systematic environmental scanning including political, economic, technology, social and environmental trends. Competitor analysis. Market intelligence systems. Knowledge sharing. Best practice databases. Directories of expertise. Online documents, procedures and discussion forums. Intranets. Embedding knowledge into business processes and management Decision making. Knowledge embedded in products. Surround products with knowledge e.g. in user guides, and enhanced knowledge-intensive services. Knowledge sharing fairs. Innovation workshops. Expert and learning networks. Communities of knowledge practice.

Data Information and Knowledge

Other types of knowledge

Knowledge Types Tacit Definitions
Knowledge is rooted in actions, experience, & involvement in specific context Mental models

Examples
Best means of dealing with specific customer Individual s belief on cause- effect relationships Surgery skills Knowledge of major customers in a region Insights gained from completed project Norms for inter-group communication What drug is appropriate for an illness How to administer a particular drug Understanding why the drug works Understanding when to prescribe the drug Understanding how the drug interacts with other drugs Best practices, business frameworks, project experiences, engineering drawings, market reports

Cognitive tacit:

Technical tacit: Explicit Individual Social Declarative Procedural Causal Conditional Relational

Know-how applicable to specific work Articulated, generalized knowledge Created by and inherent in the individual Created by and inherent in collective actions of a group Know-about Know-how Know-why Know-when Know-with

Pragmatic

Useful knowledge for an organization

Knowledge management
The importance of knowledge to the complex, competitive and global business environments which exist in the 21 st century cannot be overemphasized, and those businesses that know how to effectively acquire, capture, share, and manage this information will be th e leaders in their respective industries. We have moved into a period where competitive advantage is gained not just merely through access to information but, also more importantly from new knowledge creation. Knowledge management is an emerging, interdisciplinary business model dealing with all aspects of knowledge within the context of the firm, including knowledge creation, codification, sharing, and using these activities to promote learning and innovation. Good knowledge management is all about getting the right knowledge, in the right place, at the right time. It encompasses both technological tools and organizational routines of which there are a number of components. These include generating new knowledge, acquiring valuable knowledge from outside sources, using this knowledge in decision making, embedding knowledge in processes, products, and/or services, coding information into documents, databases, and software, facilitating knowledge growth, transferring knowledge to other parts of the organization, and measuring the value of knowledge assets and/or the impact of knowledge management. There are many definitions of knowledge management. At a generic level, it can be defined as the collection of processes that govern the creation, dissemination, and utilization of knowledge. It involves creation of supportive organizational structures, facilitation of organizational members, putting IT instruments with emphasis on teamwork and diffusio n of knowledge into place. . Knowledge is the full utilization of information and data coupled with the potential of people s skills, competencies, ideas, intuitions, commitments and motivations. Jennex (2005) defined KM as the practice of selectively applying knowledge from previous experiences of decision making to current and future decision-making activities with the express purpose of improving the organization s effectiveness . Another key definition of KM includes Holsapple and Joshi (2004), who consider KM as an entity s systematic and deliberate efforts to expand, cultivate, and apply available

accomplishing its objectives or fulfilling its purpose T entity s scope may be individual, he organizational, transorganizational, national, and so forth. Alavi and Leidner (2001 think that KM involves distinct but interdependent processes of knowledge creation, knowledge storage and retrieval, knowledge transf r, and e knowledge application. It is important to note that none of these definitions of KM is purely technical in nature. They all include information system (IS support, but they also include organizational considerations, and all include an impact on o rganizational productivity and effectiveness. This is important, because many e perts consider KM to be a form of IS. However, while the IS component is important, in order for KM to be effective as a change or transformation tool, it must include more; it re uires management support and an organizational culture. A better understanding of KM is obtained by incorporating the concepts of organizational memory (OM) and organizational learning (OL). Jenne and Olfman (2002) found that the three areas are related and have an impact on organizational effectiveness.

Impact to Organizational Effectiveness

Management

Org Learning

Access and Use Memory to perform actions that affect organizational performance

Knowledge Users

Monitor OE & adjust Knowledge re uirements

Evaluate events for use of applicable memory to perform actions that affect org. performance

KM
Drives Users to put information & knowledge into their OMS

OM

Identify and Ac uire Knowledge for future use

Store, Retrieve and search memory base

Knowledge Engineers

knowle

e n ways that add value to the entity in the sense of positive results in

System Designers IT

Organizational effectiveness is how well the organization does those activities critical to producing what the organization sells. Organizational memory is set of repositories of information and knowledge that the organization has acquired and retains . Organizational Learning is the process the organization uses to learn how to do these activities better. OL results when users utilize knowledge. That OL may not always have a positive effect is examined by the monitoring of organizational effectiveness. Effectiveness can improve, get worse, or remain the same. How effectiveness changes influences the feedback provided to the organization using the knowledge.

KM triad
knowledge management not only involves the production of information, but also the capture of data at the source, the transmission and analysis of this data, as well as the communication of information based on or derived from the data to those who c an act on it Integral to knowledge management is incorporating the socio-technical perspective of people, processes, and technologies. We can visualize this in terms of the KM Triad as shown in Figure. The significance of the KM Triad is to emphasize that knowledge can be created by people and/or technologies, and can also be embedded in processes.

KM Diamond
Knowledge management involves four key steps of creating/generating knowledge, representing/storing knowledge, accessing/using/re-using knowledge, and

disseminating/transferring knowledge. By combining the KM Triad with these four key steps, it is possible to form the KM Diamond as shown in Figure . The KM Diamond highlights the importance of the impact of the three elements of KM namely, people, process, and technology on the four steps of knowledge

management. In other words, successful KM initiatives require consideration and interactions among all of these components.

KM-moving from layer to layer

Need for KM
Many consider the popularization of the term by Davenport and Prusak (1998), with the publication of Working Knowledge, as the beginning of KM. However, there was a confluence of trends in the mid-1990s that actually caused KM to become an important topic. The first trend was the fallout from the business process reengineering (BPR) fad of the early 1990s. This business process led many organizations to restructure their businesses by changing processes and reducing staff. These staff reductions led to many organizations discovering that they had lost key knowledge and were no longer as nimble and innovative as they needed to be. This loss of knowledge provided a driver for identifying and managing knowledge that was internal to the organization. The second trend was technology. The mid to late 1990s saw accelerated advancement in the capability of the personal computer. Processing speed and memory grew rapidly (and continues to grow) also, the Internet became a practical reality, providing connectivity to many organizations and individuals. Additionally, the Year 2000 (Y2K) date problem was a driver for many organizations to replace older computers with current models as well as a driver to integrate and modernize organizational infrastructures. It was this trend that enabled KM to develop by providing organizations with technological capabilities for organizing, storing, searching, retrieving, and manipulating large amounts of structured and unstructured knowledge. The third trend was the explosion in content, information, and knowl edge caused by the rapid growth of the Internet and corporate intranets, data warehouses, and databases. This explosion in the amount of data, information, and knowledge and its easy availability to decision makers of all ranks led to a loss of information and knowledge control by managers. This loss of control served as a driver to managerial awareness that there was a problem that needed to be solved. The fourth trend was organizational issues of maintaining business value and reducing risk of litigation and overall liability by managing human and intellectual capital better. A shift in many American businesses to a service -based economy led to an increasing focus on an organization s skills and capabilities as well as sustaining these capabilities by

retaining high-value employees. This served as a driver to managerial awareness that employee knowledge was a valuable organizational asset. Some of the most common reasons that makes having a knowledge management solution imperative: y Knowledge management recognizes that today nearly all jobs involve knowledge work and so all staff is knowledge workers to some degree or another meaning that their job depends more on their knowledge than their

manual skills. This means that creating, sharing and using knowledge are among the most important activities of nearly every person in every organization. y To share the valuable knowledge and expertise. Every individual in the organization have their own knowledge. Many times it is lost when employee does not share it or moves out. Therefore KM is needed to share this knowledge and preserve it for betterment of organization.

the gaps of our knowledge, to learn and to apply our knowledge. y y y y y y y To use the available Knowledge to the best possible manner. Volumes of unorganized unsearchable knowledge. Knowledge transfer is time consuming. Secure sharing of sensitive knowledge among limited people. Loss of knowledge when people leave or hardware devices fail. Ongoing security and backup of knowledge . Organizations compete increasingly on the base of knowledge (the only sustainable competitive advantage, according to some) y y Our products, services, and environment are more complex than ever before. Workforces are increasingly unstable leading to escalating demands for knowledge replacement/acquisition

As every person/organization don t have all complete knowledge therefore t o fill

Knowledge Management Process

The KM architecture and KM process model that could be used for knowledge capture, creation, distribution and sharing is shown in following Figures

1. Creation & Acquisition Critical to managing knowledge is the generation and dissemination of information, followed by shared interpretation of the processed information into knowledge. In order for an organization to be able to manage knowledge, it must have knowledge to work with in the first place. There are a number of ways in which to acquire and generate new knowledge for your firm. One of the most obvious ways to acquire new knowledge is either to acquire an organization with the knowledge which you desire, or alternately, to hire people who possess the same knowledge. Another possibility is to rent knowledge through the hiring of outside consultants or to help generate new knowledge by supporting (financially or otherwise) the research being conducted at universities and research centers, with the promise of future benefits in terms of developing the technologies for commercial use Aside from the method of obtaining or generating knowledge externally, it is also possible to do it in-house. One way is to set up a research center within the auspices of a company with the specific purpose to generate new ideas, technologies and, eventually, commercial products. There are a number of other methods by which knowledge can be acquired or brought into an organization. These include data mining, text mining, and knowledge elicitation. Data mining is not a single technique or technology but a group of related

methods and methodologies which are directed towards the finding and automatic extraction of patterns, associations, changes, anomalies and significant structures from data. Knowledge elicitation is the process of extracting information from an expert source, such as interviewing an expert in a given subject area, so that it can then be coded and otherwise stored in a form which can be accessed by others. As discussed above, there are a number of ways in which knowledge can be acquired or brought into an organization. 2. Refinement In the refinement phase, the information is modified to suit the immediate and likely future needs of knowledge workers and management. Various processes like data cleansing, codification, tagging, integrating, and formulation of information are required to make it fit for the use. A number of different methods and technologies can be used with regards to codifying knowledge, and the specific method used could vary according to the specific type of information which is being coded. The goal of codifying knowledge is to convert knowledge into accessible and applicable formats. The important concepts to keep in mind include the need to decide what business goals the coded information will serve, how a certain set of knowledge will be used to meet these goals, how to select the right knowledge to be coded (form and content) and, finally, what is the medium or method which is to be used to code this information effectively. Metadata is simply information added to a document (or a smaller unit of information) that makes it easier to access and reuse that content. It s also referred to as simply data about data. You ll find metadata in many different forms including key words in a software help system, the document profile information attached to documents in a document management system, and the classification information in a library card catalog. Computer-based ontologies, formal, structured representations of a domain of knowledge, are commonly associated with artificial intelligence technology where they were originally designed to serve as the raw material for computer reasoning and computerbased agents. Generally information is modified with the aid of tools, such as graphic pr ograms and text editors. Version control, using software tools to track of versions of documents and

other information, is key to locating the intermediate products of internally authored information. 3. Storage/retrieval Storing, organizing, and retrieving o rganizational knowledge from organizational memory is a process that is critical to the organization s ability to learn and make informed decisions. Organizational memory is the means by which knowledge from the past is brought to bear on present activitie s, thus resulting in higher or lower levels of organizational effectiveness, depending on application . Storing can involve printing, making electronic copies in several formats on a variety of media, or even outsourcing to an off -site storage facility accessed over the Internet. Some of key issues are indexing information, access time, access location, security and privacy, cost of storing, technology used especially to filter or retrieve information . Archives, especially central repositories, are attractive to hackers because of the concentration of information in one place. Making multiple archives protects against fire, flood, or other natural disasters but presents a greater security risk because multiple sites must be covered with the same vigilance From the user s perspective, access time the time to retrieve specific information from the archive usually is the most significant day-to-day issue. Depending on the technology underlying the storing process, access time can range from a few seconds to days, with the greatest delays associated with printed information. Besides providing ready access to information, it involves a filtering process that is a function of the quality and importance of information, cost of archiving, and the likely need for the information in the future. There must be easy, fast and accurate ways of retrieving data form the stored database. It is most important to have timely and accurate required retrieval of data otherwise it will be useless. 4. Distribution The distribution or transfer or communications of information from one person or place to another is a prerequisite for an efficient Knowledge Management system. Key issues in the distribution phase of the KM Process include cost, security, and transfer time. The issue of transferability is paramount in both intra- (such as between functional units and management levels) and inter-organizational settings (such as supply chains, strategic alliances, and joint venture development).

There are a number of techniques in which organizations transfer information. There are five main types of knowledge transfer/sharing. These include serial transfer, near transfer, far transfer, strategic transfer, and expert transfer. Serial transfer is a form of knowledge transfer where knowledge which is gained in one context or setting is then transferred to the next use when it is performed in a different setting. This involves the management of both explicit and tacit knowledge and usually involves regular meetings, participation by all of the team members, and an emphasis on brief meetings. Near transfer differs in that the type of knowledge being transferred is basically explicit in nature, and the specific information which is key to doing a task by one team is then transferred to another team that will be doing a very simila r task. This type of transfer is best suited for tasks which are generally routine, frequent, and generally similar when repeated. Often, this information is distributed through electronic means, and the information is both explicit and somewhat brief and concise in nature. Far transfer focuses on the sharing of tacit knowledge between teams in an organization and often results in the collaboration between the teams, whether face -to-face or using other means. Because the information involved here is tacit, it cannot be easily recorded and transmitted as with the near transfer method. Far transfer of inform ation is best suited to informa tion which is non -routine in nature and for tasks which are likely to be frequently performed. Both teams can collaborate b y mutually offering and receiving information. Strategic transfer focuses on the transfer of knowledge which can impact the organization as a whole. Involving both explicit and tacit knowledge, it is designed for situations which are neither frequent, nor routine and could involve tasks which are highlevel within an organization, such as the knowledge required for corporate mergers and acquisitions. Finally, there is expert transfer, which involves the gaining of explicit knowledge from experts when the scope of a task is outside of the knowledge of a team working on a task. . The information in this case, because of its explicit nature, can be transmitted via electronic forums or networks and can be in the form of bulletin boards, where a question can be posted and various knowledgeable experts who know the answer can then respond with the required knowledge.

Another useful method of sharing and transferring information is through Communities of Practice (CoPs). A definition of a community of practice is a group of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in an area by interacting on an ongoing basis 5. Presentation Knowledge representation relationships among those objects explicit specification of knowledge objects and

takes many forms, with variations in emphasis and

major variations in formalisms. Knowledge representation allows computers to reconfigure and reuse information that they store in ways not narrowly pre -specified in advance. Concept mapping, semantic networks, hypertext, information modeling, and conceptual indexing all exemplify knowledge representation, in somewhat different ways. Concept mapping seems to be rooted primarily in educational techniques for imp roving understanding, retention, and as an aid to writing. A concept map is a picture of the ideas or topics in the information and the ways these ideas or topics are related to each other. It is a visual summary that shows the structure of the material the writer will describe. Semantic networks are often closely associated with detailed analysis of texts and networks of ideas. One of the important ways they are distinguished from hypertext systems is their support of semantic typing of links, for example, the relationship between murder and death might be described as is a cause of. The inverse relationship might be expressed as is caused by. Information modeling is concerned with precise specification of the meaning in a text and in making relationships of meaning explicit, often with the objective of rapid and accurate development of new software applications for business requirements. IM is The process of eliciting requirements from domain experts, formulating a complete and precise specification understandable to both domain experts and developers, and refining it using existing (or possible) implementation mechanisms. Conceptual indexing is rarely discussed in the same breath as hypertext, conceptual maps, and semantic networks, perhaps because indexers themselves sometimes relish the aura of black art surrounding indexing, but the connection is fundamental.

KM-Architecture
Architecture is the general technical layout of a computer system. It can be seen as three tiered structure 1. Data Sources Layer 2. Knowledge management layer 3. Knowledge presentation layer

KM-Tools & Technology

Tools and technologies Description
An expert system is regarded as the embodiment within a computer of a knowledgebased component from an expert skill in such a form that the system can offer intelligent

Expert systems

advice or make an intelligent decision about a processing function. Expert systems are computer-based programs which are designed to record human expertise (knowledge) and then apply this knowledge to applications in a certain domain. Distributed hypertext systems have been concerned with the generation and leveraging of organizational knowledge for more than a dozen years. Theodor Holm Nelson coined the term hypertext in the 1960s, and his writings about representation, access, and are useful for managing information management of knowledge -- embodied in his vision for Project Xanadu, a global docuverse that pre-figured the World Wide Web and knowledge. Document management systems originally were primarily concerned with providing

Distributed hypertext systems

Document management Geographic

online access to documents stored as bit-mapped images. Document management technology -- already in widespread use in large, information-intensive companies- is likely to become an integral part of virtually every intranet in one form or another Geographic information systems, a term associated with knowledge management, is used

information systems

as a graphic tool for knowledge mapping. Known by the acronym GIS for short, the technology involves a digitized map, a powerful computer and software that permits the superimposition and manipulation of various kinds of demographic and corporate data on the map.

Help desk technology Intranets

Help desk technology is primarily concerned with routing requests for help from information seeker to the right technical resolution person within an organization Intranets -- intra-corporation networks that use the Internet s IP (Internet Protocol) standard -- not only permit sharing of information, but they also view the organization s information (including structured resources like relational databases as well as unstructured text) through Web browsers like Internet Explorer and Netscape Navigator. Concept mapping seems to be rooted primarily in educational techniques for improving

Concept mapping

understanding, retention, and as an aid to writing. A concept map is a picture of the ideas or topics in the information and the ways these ideas or topics are related to each other. It is a visual summary that shows the structure of the material the writer will describe Semantic networks are often closely associated with detailed analysis of texts and networks of ideas. One of the important ways they are distinguished from hypertext

Semantic networks

systems is their support of semantic typing of links -- for example, the relationship between murder and death might be described as is a cause of. The inverse relationship might be expressed as is caused by. Semantic networks are a technique for representing knowledge. Hypertext, known to most people these days by its implementation in the World Wide

Hypertext (an expanded semantic network)

Web, is sometimes described as a semantic network with content at the nodes. But the content itself -- the traditional document model -- seems to be the driving organizational force not the network of links. In most hypertext documents, the links are not semantically typed, although they are typed at times according to the medium of the object displayed by traversing the link. Information modeling is concerned with precise specification of the meaning in a text and in making relationships of meaning explicit -- often with the objective of rapid and accurate development of new software applications for business requirements. Some of the essence of information modeling is expressed in the following definition The process of eliciting requirements from domain experts, formulating a complete and precise specification understandable to both domain experts and developers, and refining it using existing (or possible) implementation mechanisms. Conceptual (or back-of-the-book ) indexes are rarely discussed in the same breath as hypertext, conceptual maps, and semantic networks -- perhaps because indexers themselves sometimes relish the aura of black art surrounding indexing -- but the

Information modeling

Conceptual indexes

connection is fundamental. Conceptual indexes traditionally map key ideas and objects in a single work. An index is a structured sequence -- resulting from a thorough and complete analysis of text -- of synthesized access points to all the information contained in the text. The structured arrangement of the index enables users to locate information efficiently. Metadata is simply information added to a document (or a smaller unit of information) that makes it easier to access and re-use that content. It s also referred to as simply data

Metadata

about data. You ll find metadata in many different forms, including key words in a software help system, the document profile information attached to documents in a document management system, and the classification information in a library card catalog.

KM-practices and Processes

Virtually every knowledge worker and manager knows at least two methods of getting things done. Under normal circumstances, there s the official way, which includes going through the formal procedures of discussing, planning, and conceptualizing. Then there s the direct approach, which involves those who actually do the work. These knowledge workers can get something done when it would otherwise be impossible within the constraints imposed by the bureaucracy. The difference in the two approaches can be described as the process practice gap. Process is routine, managed, official, and based on explicit knowledge. Practice, in contrast, is spontaneous it sidesteps management and official channels and is based on tacit knowledge and personal connections. As shown in the fig., the role of Knowledge Management is to bridge the processpractice gap. With a KM process in place, best practices quickly become new, standardized processes.

A wide variety of practices and processes are used i n knowledge management. Some of the more common ones are shown in the table below:
Creativity Techniques Data Mining Text Mining Environmental Scanning Knowledge Elicitation Business Simulation Content Analysis Communities of Practice Learning Networks Sharing Best Practice After Action Reviews Structured Dialogue Share Fairs Cross Functional Teams Decision Diaries Knowledge Centers Expertise Profiling Knowledge Mapping Information Audits/Inventory Measuring Intellectual capital

Creating and Discovering

Sharing and Learning

Organizing and Managing

KM-Strategy
KM strategy defines the processes using knowledge and what that knowledge is, the sources, users, and form of the knowledge, and the technology infrastructure for storing the knowledge. KM strategies encapsulate the strategic directions in managing knowledge and its related processes. In general, there are two main orientations of KM strategy. First, technology driven KM strategy is characterized by application of information systems such as knowledge directories and chat forums to maximize codification, connectivity, dissemination, and reusability of knowledge resources . Some organizations that emphasize the capability to store and use explicit and documented knowledge are more likely to put much attention on technology infrastructure and deployment. Management focuses on a specified set of rules and procedures to determine what knowledge and how knowledge should be manipulated. The human-driven KM strategy, is characterized with provision of channels (not necessarily technology enabled) such that people -to-people interactions, direct

conversations, and social contact networks are fostered. It is presumed that knowledge originates from social networks, storytelling, or experience sharing through dialogue. Other empirical studies are identified that support similar views of the significant role of humans as knowledge agents (e.g., knowledge providers, seekers, reusers) , and the trust and care among individuals to create knowledge communities in order to enable individuals to share, exchange, and explore knowledge through personal and unstructured ways .

Aspects of KM strategy The notion of a strategy has varied meanings. Here, we regard strategy as being a systematic plan of action for deliberately using an organization s resources in ways that fulfill its purpose (e.g., mission, duty, vision). A knowledge management strategy is a plan for marshaling and applying knowledge oriented resources in the interest of supporting the organization s purpose. These knowledge-oriented resources include the organization s knowledge processing capabilities and its knowledge assets.

 Knowledge processing capabilities

The knowledge processing capabilities include the skills of both individual participants (both human and computer -based processors) and collective participants (e.g., groups, teams, communities) in the organization. An organization s knowledge processing capabilities can be categorized into those that are technologically based and those that are practice based. Capabilities can depend on a combination of these two. In any case, knowledge processing capabilities manifest in the actual activities that an organization performs as it operates on its knowledge assets. KM strategy determines what technologies and practices will be adopted in any given instance of a KM activity. Information technology (IT) is being subsumed by knowledge technology. IT systems for automated transaction handling, record storage, and reporting remain important. However, the emphasis going forward is on technological systems that support knowledge amplification within and across organizations. This knowledge technology involves the use of computer and communication technol ogies to automatically acquire, derive, or discover knowledge needed by decision makers and researchers on a just-in-time basis. Knowledge technology fosters knowledge sharing and unleashes the creative potential inherent in knowledge-worker collaboration. It includes technology that measures and coordinates the activities of knowledge workers. Knowledge technology provides a basis for organizational memory and learning. It also involves technology to personalize timing and presentation of knowledge delivery according to knowledge-worker profiles. Human cognitive and communicative acts are the other part of the KM equation. This part comprises knowledge practices and their alignment with an organization s vision and plans. These practices are based on knowledge ontologies, methods, techniques, metrics, incentives, and processes. They are concerned with issues of organizational infrastructure (roles, relationships, and regulations), culture, ethics, training, skills, and core competencies.

 Knowledge assets
The classes of knowledge assets include knowledge held by an organization s participants, various artifacts belonging to the organization (e.g., documents, manuals, and videos), the organization s culture, and its particular infrastructure of roles, relationships, and regulations. One way for an organization to begin developing a KM strategy is to ascertain the competitiveness of its present knowledge position. Zack (1999) suggests that competitive knowledge position can be categorized in terms of the degree of innovation relative to its competitors within an industry: Core Knowledge: The basic body of knowledge required of all players in an industry in order to remain competitive. Advanced Knowledge: Knowledge that distinguishes an organization from o ther players in its industry in a degree sufficient for achieving a competitive edge. Innovative Knowledge: Knowledge held/applied by an organization that is so distinctive that it is the basis for being a market leader in the industry. By evaluating its knowledge assets relative to these three categories, an organization s competitive knowledge position becomes evident.

Developing KM- Strategy An organization should recognize that its KM strategy can be connected not only to its knowledge assets, but also to its knowledge processing capabilities (see Figure). Thus, in addition to guiding KM strategy formation through an analysis of an organization s actual and potential knowledge assets, there needs to be an analysis of possible practices and technologies that may be adopted for operating on those assets. This analysis of knowledge processing capabilities may follow the format used for knowledge assets. The capabilities can be classified into core, advanced, and innovative categories to understand the organization s knowledge processing capabilities relative to those of competitors. Further, via a SWOT approach, an organization needs to ascertain whether to increase knowledge processing capabilities in a particular area such as assimilating knowledge, whether opportunities to more fully exploit existing knowledge processing

capabilities exist, whether new practices/technologies can be developed in -house, or whether the practices/technologies can be implemented via outsourcing, alliances, and/or purchase.

Knowledge Oriented Resources Knowledge Processing Capabilities K-Practices K-Technology Knowledge Practices

Overall Strategy

Knowledge Management Strategy

Knowledge Assets

It would be helpful for KM strategists to have a model that identifies basic kinds of KM activities that can be focal points for competitiveness. By formulating a plan involving practices and/or technologies to perform one or more of these KM activities better than competitors, the organization can attain a competitive advantage. Critical Success Factors KM y y y y y y y y y y y A clear KM vision and strategy Alignment of KM strategy to business goals A learning culture Incentives for knowledge creation and reuse A specific community that provides a context in which KM can flourish Continuous top management support Employee empowerment A positive attitude to knowledge sharing A flexible organization structure Usable and up-to-date KM systems Knowledge governance structure for maintaining quality of knowledge content

Recommendation for building successful KM y Develop a good technical infrastructure by using a common network structure, adding KM skills to the technology support skill set, using high-end PCs, integrated databases, and standardizing hardware and software across the organization. y Incorporate the KMS into everyday processes and IS by automating knowledge capture. y y y y y Have an enterprise wide knowledge structure. Have Senior Management support. Allocate maintenance resources for OMS. Train users on use and content of the OMS. Create and implement a KM Strategy/Process for identifying/maintaining the knowledge base. y Expand system models/life cycles to include the KMS and assess system/process changes for impact on the KMS. y y y Design security into the KMS. Build motivation and commitment by incorporating KMS usage into personnel Evaluation processes, implementing KMS use/satisfaction metrics, and identifying organizational culture concerns that could inhibit KMS usage.

Knowledge Management Leadership

The types and roles of knowledge leadership in a corporation are usually defined on a case by-case basis. Although there are dozens of terms ascribed to knowledge leaders by consulting firms, the five main categories of knowledge leadership and their roles in the corporation are: 1. Chief knowledge officer (CKO). A strategic, senior management position focused on promoting, communicating, and facilitating KM practices in the corporation. The highly visible CKO typically reports directly to the CEO but may report to the CIO. 2. Knowledge analyst . A tactical, lower- to midlevel position that involves le arning and personally disseminating the best practices of the organization. Knowledge analysts may use technologies to accumulate and manage knowledge, but the technologies are for their personal use only. The risk of relying on knowledge analysts is that they can walk away with the best practices of the corporation, with no record for those left behind to follow. 3. Knowledge engineer . A tactical, lower-level position that is focused on collecting information from experts and representing it in an organized form, typically in computer-based systems, that can be shared and stored in the corporation. Knowledge engineers frequently form the interface between employees and computer technologies, such as expert systems programs that imitate the decisionmaking abilities of experts. 4. Knowledge manager. A tactical, midlevel position that involves coordinating the work of knowledge engineers and analysts, especially in larger corporations. Knowledge managers may report to the CKO, CIO, or CEO. 5. Knowledge steward . A tactical, low-level, and often temporary or informal position normally associated with smaller companies. Compared to the other forms of knowledge leadership, knowledge stewards have the least formal experience with KM principles and usually have other, primary responsibilities in the corporation. Of the five general forms of leadership, the chief knowledge officer is typically the most visible, least understood, and highest paid member of any KM initiative. Unlike senior managers, a CKO typically has no underlying power base and minimal support staff, and can t make significant decisions without first being empowered by senior management.

KM-Issues
 LEGAL ISSUES
Every business operated in a legal environment. Many questions that arise from knowledge ownership are not settled, but new laws can change the rules and plug loopholes in this emerging area. In an age of prolific litigation, employees and employers should be aware of the legal ramifications arising from knowledge sharing and automation in general. The major question is who owns knowledge? , who is liable in adverse situations and for what reasons?

 Liability Question
Regardless of where knowledge originates, when it is misused, liability will become an issue. The blame may fall on the knowledge developer who might have tapped the wrong knowledge or on the expert who provided the wrong knowledge. It could also be fault of the knowledge repository that provided wrong solution. Each individual involved in the process (company, developer, expert, user) is potentially vulnerable and subject to legal scrutiny. Liability of Knowledge Developer In software development, the developer is often responsible for knowledge accuracy & reliability. In building knowle dge system, a variety of errors may become embedded in the system. Out of the bound errors occurs because software did not have expertise to address particular problem. Or developer improperly condensed the captured knowledge. A nontrivial error may have high financial impact if knowledge is used by employee companywide. Developer relies on the experience, skills to developer the product. And it is vulnerable to the employee employer relationships. Software producing company is responsible for certifyin g the system before it released for company use. Liability of Expert Another possible target for litigation is expert, because whose knowledge is codified in the system. Should the system be faulty, liability will surely follow. The competency of the expert is difficult to evaluate because of their individual experiences feeling, instincts even experts addressing same problem do not agree on all issues. With each situation expert involvement and potential liability vary . Liability of User Even end users of knowledge based system are not immune from lawsuit. They are directly responsible for proper use of the system. Within duties of their jobs, refusing to comply with the system s direction will increasingly come into question. By not properly using available resources by affirmative duty, users could be negligent by emission or passive negligence.

 Knowledge- Product or service

In terms of legal ownership of knowledge, the question of weather knowledge is a product or service attracts varied opinions. If knowledge is codified in a package and sold as a mass marketed item then it is product. If knowledge repository is product then proving negligence is unnecessary to hold the developer liable. The uniform commercial code allows developer limit its liability trough disclaimer of warranties in the contract. If one views Knowledge as what you say, not what you say then knowledge is service. If knowledge repository is service then contract law would apply rather that UCC. Negligence action is difficult to prove because plaintiff must show aspects of the process that caused defect and prove that failure to use sufficient care caused the defect

 Copyright, trademark and trade names

Copyright and trademark violations falls under intellectual property law. There is growing controversy over who owns the intellectual property of the product, creative advertisements, and the like. Knowledge repository and the way it is organized are considered a compilation and copyrightable. A compilations copyright protects all components within it. An original compilation of names and addresses that are now in the public domain is also copyrightable. The same applies to logos and trademarks.

 ETHICAL ISSUES
Ethics may include any of the following: fairness, justice, equity, honesty, trustworthiness and equality. Something is ethical when a person feels it is innately right, which is a subjective judgment. Ethics is more serious concern today than they were in the past because the threats have steadily increased. The main threats are y y y y y Faster computers and PCs, Sophisticated telecommunication and computer networks , Massive integrated knowledge bases, Easy access to information and knowledge base The view that captured knowledge is competitive weapon.

Knowledge hoarding, unauthorized email access and sale of competitive knowledge are serious ethical issues. Cyberspace has evolved in a large way and is dominated by every one who has access to a computer. What makes knowledge so valuable is that most of it gathered discreetly. Private information is being documented and sold without the knowledge owner s permission and awareness. Obviously learning organization has ethical responsibility to inform users of what information is being captured and how it is being used.

 MANAGERIAL ISSUES  Top Management support.

Integrate the KM into corporate culture- a shift into organizational and individual philosophy. The culture comes from top of the organization. It defines the major aspect of the employee behavior on daily basis. If culture is not one that encourages cooperation and trust among employees, employees will not cooperate.

 Motivation to participate
Many experts suggest that the first objective is to make knowledge sharing profitable for the employee and the firm as well. When one tries to change another person s conditioned behavior, it is best to tie a form of compensation to changes in behavior, performance or cooperation or to offer some kind of rew ard as a motivator.

 Sustainability
To sustain and continue researching KM to improve and expand its current capability is major issue. Organization must act on what they learn and continually adapt to the dynamic environment to reap the benefits of initiative.

 Creativity and innovation

Promoting innovation is essence of KM. Sound collaboration capabilities means helping company employees share documents and needed information for all kinds of the project. Beyond efficiency and productivity, the real benefit of collaboration is innovation. Technology can make this possible via online meetings, discussion database etc.

 Effect on organizational processes

The KM process of gathering, storing, processing and distributing knowledge customized to the unique structure and operation of the firm. The current organizational processes must be improved with the help of the KM. It will require the organization wide changes to accommodate new process. The KM process means cooperation and commitment to change.

 FINANCIAL ISSUES  Cost and benefits

Installing Knowledge management system throughout the organization is really costly affair. Therefore it must be supported by the cost benefit analysis. The organization must value the benefits, the changes required and the cost associated with it.

 Investment & Returns y A successful KM implementation typically requires a significant investment in people, processes, time, and technology. y In assessing the value of a KM initiative, traditional ROI calculations and benchmarks are usually inadequate. y It s difficult to show a return on investment for KM practices in part because of the difficulty in quantifying the contribution of enabling information technologies. y Short-term measures of the effect of a KM initiative are generally subjective and qualitative long-term, objective, and quantitative effects may not be measurable for years into the project.  TECHNOLOGICAL ISSUES
The technology-related risks of a KM initiative often seem pervasive. The major risks are associated with standards, scalability of the solutions selected, security, and, ultimately, the usability of the KM system. For example, even if the vendor and developers seem to be the most appropriate for the job at the time of implementation, it s possible that industry standards will suddenly shift, resulting in significant reworking costs or a dead -end system.

 Knowledge technology
How knowledge is captured, processed and acted on is the major question in selecting the technology. KM must allow an organization not only to stock-pile and access the information, but to get at the history of how the decisions were reached as well Turning knowledge into action required gleaning the information that has meaning and relevance to particular organization. Another issue is how to capture the tacit knowledge because it is difficult to codify, transfer or share. Most of the technology deals with the explicit knowledge. The reach of the knowledge throughout the organization is another important aspect. It should be available as and when required. The easy and fast access will make use of the knowledge more operational. It must accommodate the necessary analysis tools, graphical interfaces and other advanced solutions to provide the accurate and analyzed knowledge. It must store the knowledge along with its context which is a real challenge. Knowledge must be used but the necessary environment conditions, changes, key factors etc.

 Security
Security is being major concern while selecting technology to avoid the incidences of the leakage, theft or illegal uses of organizational knowledge. It is also important to provide checks, monitor and control the knowledge sharing, use throughout the organization.

KM-Outcomes
Improved Communication Enhanced Collaboration

y y y y

Among people Within/across Processes Within/across Functions Within/across units Improved employee skills At task level At process level At function level At organization level

y y y y

Improved Productivity

Better Decision making

Potential Benefits of Knowledge Management

Quantitative Cost savings Greater customer acquisition rate Improved bottom line Improved profit margins Increased corporate valuation Increased customer loyalty behavior Increased customer retention Increased market share Increased repeat purchases Increased stock valuation Reduced cost of sales Qualitative Better management of ideas Decreased likelihood employee defection Greater customer loyalty Increased collaboration with customers Increased customer satisfaction Increased innovation Increased knowledge worker empowerment Increased knowledge worker productivity Increased knowledge worker satisfaction Increased market leadership Increased organizational stability Increased shareholder satisfaction Increased understanding of customer needs Positive cultural change