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Page 1: 1 Brian Lehaney Steve Clarke Elayne Coakes Gillian Jack Beyond Knowledge Management Presentation based on:

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              Brian Lehaney

Steve Clarke

Elayne Coakes

Gillian Jack

Beyond Knowledge Management

Presentation based on:

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Beyond Knowledge Management

Presented by:

Professor Brian Lehaney

Head of Knowledge and Information ManagementCoventry University, UK

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Knowledge Management:– the Hype …

• Engaging in Knowledge Management (KM) will immediately result in improved business processes and information flows, the creation of new ideas, reductions in costs, and the generation of increased profits.

• All this will arise as soon as you have inserted into your computer one of the many proprietary KM CDs that are available from vendors.

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… Knowledge Management:– the Hype

• This will magically network your organisation, create a new spirit of cooperation, everyone will hold hands, and we shall all follow the rainbow, along the yellow brick road, into the sunset, to face a wonderful new KM dawn on the morrow.

• If you believe that, you aren’t in Kansas any more Toto, and you might want to check if you are even on planet Earth!

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… Knowledge Management:– the Reality

• This talk aims to address the following kinds of questions.

• What is Knowledge Management?• Why did it arise in the first place?• Can it be simplified or categorised?• Is it a fad?• Is it theoretical?• Is it practical?• Why should I care about it?

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What is KM? …

• Knowledge management refers to the systematic organisation, planning, scheduling, monitoring, and deployment of people, processes, technology, and environment …

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… What is KM? …

• … with appropriate targets and feedback mechanisms, under the control of a public or private sector concern, and undertaken by such a concern …

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… What is KM? …

• … to facilitate explicitly and specifically the creation, retention, sharing, identification, acquisition, utilisation, and measurement of information and new ideas …

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… What is KM? …

• … in order to achieve strategic aims, such as improved competitiveness or improved performance, subject to financial, legal, resource, political, technical, cultural, and societal constraints.

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… What is KM?

• For now, the following short version will do.• Knowledge management is intended to facilitate

explicitly and specifically the creation, retention, sharing, identification, acquisition, utilisation, and measurement of information and new ideas, in order to achieve strategic aims, such as improved competitiveness.

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Why Did KM Arise? …

• In western economies, organisations have seen huge changes to their own domestic economies and to world trade.

• Knowledge management has become more relevant as the nature of western economies has shifted from manufacturing to services.

• In a service-oriented economy, knowledge, rather than physical assets, is at a premium.

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… Why Did KM Arise?

• Firms could choose to let that value be treated in an ad hoc fashion …

• … or manage the asset “knowledge” in a way that would lever the best value of it and treat knowledge as a prime resource.

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Mr Jones

• Consider Mr Jones, who has purchased a computer.

• He unpacks the boxes carefully, sets the computer up, switches on, and installs the software.

• He gets an error message on the screen.• Something really helpful, such as “error 220TG,

access denied to FG456. Please contact your network administrator”.

• Of course, this is a completely fictitious story, but does it ring any bells?

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Mr Jones and His New Computer

Now let me see. 220GGT, FG456,

hmmm …

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Mr Jones Rings the Helpline

• What happens next?• Well, Mr Jones looks for the helpline number,

which is conveniently printed in his welcome pack. He rings, and a friendly adviser warns him that he is ringing a premium rate telephone line.

• Does Mr Jones care? No! At this point, all he wants is his computer to be up and running.

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The Helpline Responds

• Now, why is Mr Jones paying this premium rate and for what is he paying?

• He is paying because he wants his computer to work and he does not have the knowledge to get it working.

• In other words, he is paying for the knowledge that the adviser holds.

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It Works

• In fact, in this instance, he is paying for perceived knowledge, since, at the beginning of the call, he does not know if the adviser can fix the problem.

• Of course, all works out well, and Mr Jones follows the instructions the adviser gives him.

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Mr Jones is Happy!

I love you too Mr Jones. Have a nice

day.

I love youHelpine Advisor!

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Growth in the Knowledge Economy

• Why is this simple (and familiar?) story important and how does it relate to Knowledge Management?

• Think back a few years and ask yourself how much the home and business computer markets have grown.

• Now ask yourself how many times over you think the helpline story might be multiplied in the USA.

• How many times will that be multiplied if you think of the worldwide impact of personal computers?

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Theory and Practice …

• There is no unified theory for KM.• Most “theories” purporting to address KM are

empty.• Mostly, the advocated practice is idealistic and

does not recognise real world issues.

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… Theory and Practice

• KM has to be considered at a strategic level.• Systems thinking is strategic.• It is related to some important concepts:

– holism

– action research

– learning and understanding

• These fit well with KM.

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Knowledge and Organisations …

• It is key to its success that Knowledge Management is seen as an important aspect of business strategy.

• However, Knowledge Management is neither a strategic objective nor a goal, as there is no end state.

• It must be viewed as an integral part of organisational culture.

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… Knowledge and Organisations …

• Technology plays a vital role in Knowledge Management.

• Technology changes what we can do, how we think, and how we work (think of email, attachments, internet, web folders).

• However, from a business perspective, the point is not technology in itself, it is technology to achieve an organisational purpose.

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… Knowledge and Organisations …

• It is people who determine purposes, not technology (which either assists or constrains).

• People issues are therefore fundamental, as are organisational processes.

• However, an organisation without the technology that people need to undertake and improve organisational processes, will not compete effectively with organisations that do have it.

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… Knowledge and Organisations

• Many exponents place great emphasis on technological change, and some articles may give the impression that Knowledge Management is solely about technology.

• However, major gains can be made by changing organisational culture to create, share, and retain organisational knowledge by:

– using existing technology more effectively;– improving business processes;– staff development.

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Potential Costs and Problems …

• Suitable server and client hardware and upgrades of staff machines.

• Suitable system software to support a Knowledge Management application.

• Knowledge management software.

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… Potential Costs and Problems …

• Time.• Training.• Staff appointments• Consultancy• Other professional advice - legal, IS security,

financial

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… Potential Costs and Problems …

• Staff unrest (new ways, why share knowledge, what we know is best, why change?, etc).

• Initial slowdown in activities whilst staff adjust to a new system, with possible initial customer dissatisfaction.

• Development of incentives’ systems.• Development of a system of measures of

achievements.

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… Potential Costs and Problems

• Costs associated with the implementation of rewards (eg profit sharing).

• On-going dialogues with staff.• The financial costs of all of the foregoing,

including loans and interest.

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The KM Mix …

Sharing

Measurement

Identification

Creation

Acquisition

Utilisation Retention

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… The KM Mix …

Know-how

Know-why

Know-where

Know-who

Know-when

Know-that

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… The KM Mix …

Structures Technology

Staff

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… The KM Mix

Structures Technology

Staff

Know-how

Know-why

Know-where

Sharing

Measurement

Identification

Creation

Acquisition

Utilisation Retention

Know-who

Know-when

Know-that

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Conclusions

• KM is a long term concept.• It will not provide a quick fix.• Coupled with systems thinking it can aid strategy

and organisational understanding.• The book tells you how … • Thank you for listening.

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Questions

?