Knowledge Management is the explicit

and systematic management of vital

knowledge - and its associated
processes
of creation, organization, diffusion, use
and
exploitation.
(9),(10)

Common Knowledge Management Definitions

Discipline within an organization that ensures that the intellectual
capabilities of that organization are shared, maintained and
institutionalized
The process of systematically and actively managing and
leveraging the stores of knowledge in an organization
The way a company stores, organizes and accesses internal and
external information.
Refers to an entire integrated system for accumulation,
integration, manipulation, and access of data across multiple
organizations
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Knowledge Management

Tacit Knowledge

Tacit

Explicit Knowledge

Knowledge

This type of

knowledge exists
in peoples heads,
not articulated or
documented

Information

Data

Explicit
This type of knowledge
can be
Processed by information
systems
Codified and recorded
Archived and protected

KM Significance
Knowledge assets have often become more important to
companies than financial and physical assets and are often the
only way for a company to distinguish itself from its competitor
& gain competitive advantage

Lost knowledge given the enormous of baby boomers that will be

changing jobs or retiring in next few years cause productivity cost of an
employee leaving 85% of their base salary due to their replacements
mistakes, lost knowledge and lost skill( Beazley et al, 2002)

Relate to the concept of knowledge half-life, from which it is found that

knowledge reaches obsolescence, on average, in 500 days, but can be
much quicker in some areas
- Lost knowledge obviously has a cost, estimated that $115 billion sits
idle in
lost knowledge affiliated with production technologies

- An astounding example of this is the loss of the original computer

source
code, written in the 1950s, that spawned the Y2K software crisis, has
cost
businesses worldwide an estimated $1 trillion (Petch, 1998)
(25)
4

People
Knowledge Teams - multi-disciplinary, crossfunctional
Learning Organization - personal/team/org
development
Corporate Initiatives Chief Knowledge Officer
Systems
Knowledge Data-bases - experts, best practice
Knowledge Centers - hubs of knowledge
Technology Infrastructure - Intranets, Domino
Document Management
5

Sharing existing knowledge

Knowing what you know

Knowledge for Innovation

Creating and Converting

Innovation Cycle

KM Cycle
Collect

Codify
Identify
Embed

Product/
Process

Diffuse

Create

Use/Exploit

Classify

Knowledge
Repository

Access

Organize/
Store

Share/
Disseminate

 Customer

Knowledge - the most vital

knowledge
Knowledge in Products - smarts add value
Knowledge in People - but people walk
Knowledge in Processes - know-how when
needed
Organizational Memory - do we know what
we know?
Knowledge in Relationships - richness and
depth
Knowledge Assets - intellectual capital
(9)

IBM, Oracle, Cisco

Measure intranet value at over $1

billion

BT, UK telecommunications
company
Employee ideas have saved 100

million

Sodexhos SuperSleuth
Cash reward for employees submitting

sales leads
Led to over $90 million in sales volume
(20)

Common Misconceptions

1.Knowledge is just as important, if not more so, to a smaller company

trying to compete in the rapidly changing global marketplace. Smaller
companies must capture, assimilate, and capitalize on every
advantage they can find, including KNOWLEDGE
2.Smaller firms have the advantages from Culture and Organizational
structure in place that is much more conducive to implementing
knowledge management effort such as type of environment, which is
predicated more on social relationship, familiarity and trust between
employees

A little Knowledge that acts is worth more than much knowledge that is
idle.(Kahlil Gibran)
10

 Everyone:

Managers/Supervisors
Leaders as knowledge champions

The Knowledgeable
Not a problem of knowing, but of access

End Users
Feedback
Psychological barriers

(13), (14)

11