© 2001-2003 franz j. kurfess km in organizations 1 cpe/csc 580: knowledge management dr. franz j....
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© 2001-2003 Franz J. Kurfess KM in Organizations 1
CPE/CSC 580: Knowledge Management
CPE/CSC 580: Knowledge Management
Dr. Franz J. Kurfess
Computer Science Department
Cal Poly
© 2001-2003 Franz J. Kurfess KM in Organizations 2
Course OverviewCourse Overview Introduction Knowledge Processing
Knowledge Acquisition, Representation and Manipulation
Knowledge Organization Classification, Categorization Ontologies, Taxonomies,
Thesauri
Knowledge Retrieval Information Retrieval Knowledge Navigation
Knowledge Presentation Knowledge Visualization
Knowledge Exchange Knowledge Capture, Transfer,
and Distribution
Usage of Knowledge Access Patterns, User Feedback
Knowledge Management Techniques Topic Maps, Agents
Knowledge Management Tools
Knowledge Management in Organizations
© 2001-2003 Franz J. Kurfess KM in Organizations 3
Overview KM in OrganizationsOverview KM in Organizations
Motivation Objectives Evaluation Criteria Historical Perspective
Ad Hoc KM Organized KM KM and Computers
Current Trends and Tendencies Status of KM in Organizations Plans for KM in Organizations
Knowledge Workers and Knowledge Organizations Industrial vs. Knowledge Age Mutual Benefits for Workers
and Organizations
Important Concepts and Terms
Chapter Summary
© 2001-2003 Franz J. Kurfess KM in Organizations 4
LogisticsLogistics
Introductions Course Materials
textbook handouts Web page CourseInfo/Blackboard System and Alternatives
Term Project Lab and Homework Assignments Exams Grading
© 2001-2003 Franz J. Kurfess KM in Organizations 7
MotivationMotivation
© 2001-2003 Franz J. Kurfess KM in Organizations 8
ObjectivesObjectives
© 2001-2003 Franz J. Kurfess KM in Organizations 9
Evaluation CriteriaEvaluation Criteria
coordinated, organized effort acquisition, collection, organization, storage, interpretation,
evaluation, distribution, maintenancepersistent storage
method, format, mediumtechniques
categorization, indexingtechnology
manual: hand-written, drawings, artifacts
mechanical: typewriter, punch cards, photographs, duplication
computer: storage, retrieval, organization, evaluation
© 2001-2003 Franz J. Kurfess KM in Organizations 10
Pre-HistoricPre-Historic
no written language drawings, icons for storage purposes
spoken language main method for collection, organization, distribution of
knowledge
coordinated KM very difficult very limited common representation scheme very limited systematic collection, organization and
distribution methods mostly dependent on individual/small group effort
© 2001-2003 Franz J. Kurfess KM in Organizations 11
AntiquityAntiquity
written language systems persistent storage for documents duplication and distribution of documents possible, but
tedious
limited coordination efforts for KM systematic collection and organization
record keeping, libraries
coordination mostly by governments substantial overhead
© 2001-2003 Franz J. Kurfess KM in Organizations 12
GutenbergGutenberg
efficient duplication system printing press allows mass-production of documents greater distribution of knowledge
somewhat extended KM efforts coordination by governments and other organizations
churches, local entities, land and property owners
© 2001-2003 Franz J. Kurfess KM in Organizations 13
Industrial AgeIndustrial Ageemergence of large-scale organizations
mass production of goods administration of large constituencies
requires efficient knowledge management administrative systems
coordination of resources, materials; distribution of products internal information flow; record keeping
paper-based office storage and distribution of documents
new technologies typewriters, stencil duplicators, vertical files, telephones,
photography
[Black & Brunt 2000]
© 2001-2003 Franz J. Kurfess KM in Organizations 14
Effects on KMEffects on KM
systematic, planned knowledge and information management
complex, dedicated information systems based on human labor and paper as storage medium
“manual” information technology
requires precise methods and processes rational, planned system of
registration, filing, indexing
support for strategic planning usage of gathered information extraction of knowledge
[Black & Brunt 2000]
© 2001-2003 Franz J. Kurfess KM in Organizations 15
Manual KM is OnerousManual KM is Onerous
usually based on central repositoriesevery document received must be
numbered recorded categorized filed
several indexes must be generated usually dependent on the purpose
e.g. people, places, subjects
placeholders for temporarily removed documents “transit cards”
[Black & Brunt 2000]
© 2001-2003 Franz J. Kurfess KM in Organizations 16
Problems with Manual KMProblems with Manual KM
organization methods alphabetical or subject-based indexing
sloppy work incorrect categorization incomplete indices
uncontrolled vocabulary spelling variations,
efficiency delays in processing files
tracking of information distributed across files
[Black & Brunt 2000]
© 2001-2003 Franz J. Kurfess KM in Organizations 17
KM and the Yorkshire RipperKM and the Yorkshire Ripper
information available files of suspects
in the West Yorkshire police station (coordinators) contains the file of the murderer
links between murderer and victims a list of individuals who could have received in their wages a bank
note found on one of the victims the list contained the name of the murderer
utilization of information no match was made between the files of suspects and the
list of individuals why?
[Black & Brunt 2000]
© 2001-2003 Franz J. Kurfess KM in Organizations 19
Knowledge Management in Organizations
Knowledge Management in Organizations
based on data collected by the Harris Research Centre in Spring 1998 on behalf of KPMG Management Consulting
sample covered 100 leading UK companies
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 20
Relevance of KnowledgeRelevance of Knowledge
for many organizations, what they know becomes more important than traditional sources of economic power capital, land, facilities, labor
competitive advantage through knowledge-based competencies technological know-how product design skills problem solving expertise creativity ability to innovate
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 21
Risks of Knowledge LossRisks of Knowledge Loss
knowledge of best practice in important areas of operation
damage to relationships with key clients or suppliersloss of income
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 22
Most Critical Knowledge TypesMost Critical Knowledge Types
knowledge about customersmarketsproducts and servicescompetitorsskills of employees
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 23
Impediments Impediments
people want to share knowledge but don’t have the time
wasted efforts through re-inventing the wheellack of rewards and incentivesrelatively few people
are unwilling to share knowledge or best practice think there is too much knowledge
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 24
Driving Needs for KMDriving Needs for KM
almost exclusively financial considerations improving profits defending market share against competitors cost reduction growing revenue
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 25
Possible Benefits of KMPossible Benefits of KM
conventional (budget-focused) better decision making faster response time to key issues improved productivity reduced costs increased profit
others new business opportunities better staff retention
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 26
Technological InfrastructureTechnological Infrastructure
Internet accessintranetsdocument management systemsgroupwaredata warehousing, data miningdecision support systemsextranets
[KPMG 1998]
© 2001-2003 Franz J. Kurfess KM in Organizations 27[KPMG 1999]
Survey BackgroundSurvey Background
Objective Establish the extent to which companies regard knowledge
management as important and pursue initiatives to implement and master it
Target group Mid- to large-size companies from a variety of industries.
The research was conducted among chief executives, business unit managers, product managers, marketing managers and R&D managers
Questionnaire Data from 25 companies was processed
© 2001-2003 Franz J. Kurfess KM in Organizations 28
Definitions for the SurveyDefinitions for the Survey
Knowledge the knowledge in the business about customers, products,
processes, competitors and so on
Knowledge management the discipline of capturing knowledge-based competencies,
storing and disseminating them for the benefit of the organization.
[KPMG 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 29
Respondents’ Profile
Size responding organizations
24%24%
20%20%
12%12%
28%28%
16%16% 1-500
501-5.000
5.001-25.000
25.001-100.000
>100.000
[KPMG 1999]
Average size respondents +/- 35.000 people. Representative sample of 25 mid- to large- size companies.
© 2001-2003 Franz J. Kurfess KM in Organizations 31
Respondents’ Profile
8 8
12
16 16
12 12
8 8
0
2
4
6
8
10
12
14
16
18%
Bus/Fin Services
Retail& Dist.
IT Telecom Elec-tronics
Chem. & Food
Engi-neering
Energy Other
[KPMG 1999]
Respondents were from various industries.
© 2001-2003 Franz J. Kurfess KM in Organizations 32
Respondents’ Profile
Companies perceived their KM position as:
Leading
Intermediate
Lagging behind
[KPMG 1999]
16%16%
60%60%
24%24%
© 2001-2003 Franz J. Kurfess KM in Organizations 34
Major Issues
0 10 20 30 40 50 60 70 80 90 100%
Costs/Productivity
Quality
Innovation
Alliances/Networking
Flexibility
Time to market / Responsiveness
Outsourcing
[KPMG 1999]
In line with the expected key changes and issues, more effective management of knowledge is required in the near future (84%).
Only 4% of respondents regard current level of managing knowledge appropriate.
© 2001-2003 Franz J. Kurfess KM in Organizations 35
Still a Long Way to Go...
Information transformed into knowledge
New ideas are stimulated
Knowledge-creation is structured process
Knowledge is available at right places
Mistakes used as learning experience
Improvement o.b.o. experiences and best practicesKnowledge is re-used
(not re-inventing the wheel)People's competencies are mapped
No overflow of information
Sufficient time to share knowledge
Willingness to share knowledge
2 3 41
True FalseSlightlyTrue
SlightlyFalse
[KPMG 1999]
Most companies acknowledge that managing knowledge can be improved for a wide range of aspects.
© 2001-2003 Franz J. Kurfess KM in Organizations 36
IT Infrastructure & Software IT infrastructure and software used to collect, share and analyze information
0 10 20 30 40 50 60 70 80 90 100%
Expert/Decisionsupport software
ERP
Workflow software
Groupware
Database/DocumentManagement System
Extranet
Intranet
Internet
[KPMG 1999]
Internet, intranet, databases and groupware are used by more than 50% of the respondents
workflow software is rarely used
© 2001-2003 Franz J. Kurfess KM in Organizations 38
KM Initiatives
36%36%
32%32%
32%32% Neither in place,nor preparing
Preparing/Investigating
In place
[KPMG 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 40
Reasons for KM Initiatives
0 10 20 30 40 50 60 70 80%
Other
To improve staff attitude/morale/competencies
To improve potential forinnovation
To improve market performance
To execute a strategic direction
To improve communicationand decision-making
[KPMG 1999]
Other key motives touch upon innovation potential, market performance or a strategic direction.
© 2001-2003 Franz J. Kurfess KM in Organizations 42
Coverage of KM Initiatives
0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1
Processes/jobs affected by the initiative
Incentives changed to stimulate knowledge
Special people appointed to manage knowledge
Workflow linked to knowledge database
Formats defined for meaningful presentation of data
Processes defined for info gathering/maintenance
Information needs, flows and owners are clear
Budget allocated
Knowledge management strategy with objectives
Initiative embedded inbusiness plan
Yes
No
Don’tknow
[KPMG 1999]
Initiatives often lack direction (44%), Unclear understanding of info needs, flows, owners (50%), No use of stimulating incentive schemes (56%) and No link between workflow and databases (69%)
© 2001-2003 Franz J. Kurfess KM in Organizations 43
Bottlenecks for KM Implementation
0 10 20 30 40 50 60 70 80 90 100
Lack of IT support
Lack of KM techniques/tools
Hierarchical organizational structure
Emphasis on short term results
Lack of true teamwork
Too little time to share information
Current culture does not encourage knowledge sharing
Lack of funds
Lack of commitment senior management
KM is no top priority
Lack of understanding of KM and its potential benefits
%
[KPMG 1999]
Major road blocks are a lack of understanding, interest, patience for results and time for sharing information.
© 2001-2003 Franz J. Kurfess KM in Organizations 44
Unfavorable Conditions for KM
… … then don’t start a KM initiativethen don’t start a KM initiative[KPMG 1999]
If this is your company ...If this is your company ...
No commitment or not a priority
Short-term focus
Insufficient understanding of KM
Overtaxed organization/no time
© 2001-2003 Franz J. Kurfess KM in Organizations 45[KPMG 1999]
KM is Like Building a House...KM is Like Building a House...
The fundament of KM represents a set of Behavioral/Structural Conditions
The walls of KM represent a set of Operational Conditions The roof of KM represents the corporate knowledge by which
learning, innovation, speed and productivity will be enhanced
© 2001-2003 Franz J. Kurfess KM in Organizations 46
HOW?Performance
metricsScience
workshopsTechnology
exchange networks
Extra budget
HOW?Performance
metricsScience
workshopsTechnology
exchange networks
Extra budget
Open, sharing culture
KNOWLEDGE
KNOWLEDGE
SHARING
SHARING
Non-sharing culture
TEAMWORK
TEAMWORK
COMMITMENTCOMMITMENT
ORGANISATION STRUCTURE & ORGANISATION STRUCTURE & PROCESSESPROCESSES
[KPMG 1999]
Rewards and Incentives Rewards and Incentives
© 2001-2003 Franz J. Kurfess KM in Organizations 47
Separate information
systems
InformationInformationResearch Research
ProcessProcess
Enabling Enabling TechnologiesTechnologies
UpgradingUpgradingOf Existing Of Existing KnowledgeKnowledge GenerationGeneration
Of New Ideas Of New Ideas
Integrated Information
SystemHOW?Database
technologyGroupwareWeb
technologyUser-interface
technologyIntranet
HOW?Database
technologyGroupwareWeb
technologyUser-interface
technologyIntranet
[KPMG 1999]
Integrated SystemsIntegrated Systems
© 2001-2003 Franz J. Kurfess KM in Organizations 48
KM Behavioral and Structural Components
Preparing initiative Initiative in place
not i
n pl
ace
star
ting
adva
nced
real
ized
1 2 3 4
Hierarchical organization
Process-orientedorganization
Power culture
Open & sharing culture
Focus onindividual
success
Focus on group
success
No understandingof KM
Top management commitment
2,3
2,0 2,1
1,9
[KPMG 1999]
On the behavioral/structural axis, there is still enough improvement potential.
© 2001-2003 Franz J. Kurfess KM in Organizations 49
KM Operational Components
Preparing initiative Initiative in place
not i
n pl
ace
star
ting
adva
nced
real
ized
1 2 3 4
Knowledge stored mentally and physically
Integrated databases linkedwith workflow
Ad-hoc knowledge
creation
Structured,strategic
knowledgecreation
Ad-hoc datacollection
2,1
2,0
2,1
Professional researchmethods
Knowledgesupporting
decision-making
Non-customizeddata
1,9
[KPMG 1999]
A quick fix is not possible for the implementation of KM. Step by step, the KM performance should be improved.
© 2001-2003 Franz J. Kurfess KM in Organizations 50
Mixed Feelings about KM Benefits
Overall satisfying results?
37%
13%
50% Yes
No
Don't know
(*) KM initiative in place0 10 20 30 40 50 60 70 80%
Improved staffmorale/attitude
Enhancedcommunication &decision making
Increased potentialfor innovation
Improvedmarket performance
Perceived benefits
Reason to launch initiative
[KPMG 1999]
Too early or difficult for 50% to judge whether overall results are satisfying.
Improved communication & decision making is not (yet) proven. Improved staff morale/commitment is a welcomed spin-off.
© 2001-2003 Franz J. Kurfess KM in Organizations 51
Knowledge-Intensive OrganizationsKnowledge-Intensive Organizations
tacit knowledge is one of the critical assetssince tacit knowledge is difficult to capture, people
become very important assets such organizations are vulnerable because people are
mobile
core activities are difficult or impossible to automate rely on problem solving, experience, communication,
creativity, innovation, intuition, …
success is not only based on financial criteria but what are the other criteria?
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 52
Industrial vs. Knowledge Organizations
Industrial vs. Knowledge Organizations
Industrial Organization bottom-heavy
asset rich, brain poor pyramid shape
rigid structure assignment of workers to
departments depends critically on middle
management levels changes through verdict
straightforward valuation three production factors: labor,
raw materials, capital well-known valuation methods
Knowledge Organization top-heavy
brain rich, asset poor network of projects, workers
flexible structure assignment of workers to projects little management overhead changes through organizational
learning
valuation is difficult measurement of knowledge-based
assets requires new valuation methods
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 53
Industrial vs. Knowledge CompaniesIndustrial vs. Knowledge Companies
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 54
Knowledge Worker vs. Knowledge OrganizationKnowledge Worker vs.
Knowledge Organizationsocial issues and changes in the work environment
replacement of workers through computers? adaptation of tasks and responsibilities to the use of
centralized knowledge repositories automated work flow demand-driven work scheduling
release from tedious “data processing” tasks “empowerment” of knowledge workers
assignment of responsibility and authorization to workers instead of managers
availability of critical knowledge to workers
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 55
Work Life in the Industrial AgeWork Life in the Industrial Age
jobs “for life”rigid structures within most organizationsslow evolution of skills, technology
little need for individual career planning
employees may possess critical skills and knowledge
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 56
Work Life in the Knowledge AgeWork Life in the Knowledge Age
multiple jobs or careers over a life spanflexible structures within and across organizations
e.g. project teams, virtual organizations
more opportunities, but less stability individual career planning becomes much more important
organizations try to incorporate tacit knowledge into organizational memories
employees must utilize experience, creativity, problem-solving and inter-personal skills
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 57
Matching Individual and Organizational Needs
Matching Individual and Organizational Needs
Individual independent person
“free agent” open to pursue other
opportunities
ownership of knowledge assets experience technical skills
emphasis on individual career goals professional, personal, social
Organization controllable asset
follows directives replaceable by other
employees
ownership of knowledge assets proprietary information,
knowledge and skills
emphasis on corporate goals financial, political, social
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 58
Individual Balanced ScorecardIndividual Balanced Scorecard
approach introduced at KPMG in 1995the objective is to balance the needs of employees with
those of the organizationexplicit process to coordinate business development
plans with personal development plans of employeesrelies on specific categories
may depend on the context of the organizationforms the basis for an agreement between employee and
organization specific goals and targets that are beneficial for the employee
and the organization
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 59
KPMG Balanced Individual Scorecard
KPMG Balanced Individual Scorecard
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 60
Evaluation perspectivesEvaluation perspectives customer orientation
what can I achieve with my existing clients
market orientation how can I find new clients and strengthen my position
people orientation how can I contribute to better team/group performance
result orientation how can I achieve better results with less effort
personal effectiveness how can I improve weak points and strengthen strong points
professionalism what can I do to keep up with new developments in my area/discipline
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 63
KPMG Annual CycleKPMG Annual Cycle
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 64
Critical IssuesCritical Issuesdevelopment of the personal plan should be supported by
neutral resources and specialists e.g. “development center” some aspects of the plan may remain confidential
mutual trust between employees and management no punishment for self-critical assessment realistic opportunities for positive results adequate support for assigned tasks
integration of planning activities into regular business cycles scheduled time and resources follow-up
[Haak & Deprez 1999]
© 2001-2003 Franz J. Kurfess KM in Organizations 65
Post-TestPost-Test
© 2001-2003 Franz J. Kurfess KM in Organizations 68
Important Concepts and TermsImportant Concepts and Terms organization agent
© 2001-2003 Franz J. Kurfess KM in Organizations 69
Summary KM in OrganizationsSummary KM in Organizations
© 2001-2003 Franz J. Kurfess KM in Organizations 70