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Chapter 1: Working Smarter, Not Harder Objectives
OBJECTIVESWhat is Knowledge Management?Why Knowledge ManagementHow It Came AboutKM Myths Implications for Knowledge
Management
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Chapter 1: Working Smarter, Not Harder Objectives
“Knowing ignorance is strength; ignoring knowledge is sickness”
-Lao Tsu
The knowledge race is onBritain - “ambition is to turn Britain into
the leading knowledge-based economy of the world.” Prime MinisterTony Blair, November 16, 1998
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Chapter 1: Working Smarter, Not Harder Objectives
Economic reliance on knowledge workers is increasing
Knowledge gap Customers and businesses want a
more integrated approachBest to say you are in the knowledge
business
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Chapter 1: Working Smarter, Not Harder Objectives
Three primary causes of change
Global literacy Invention of electronic infrastructuresSocial revitalization
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Chapter 1: Working Smarter, Not Harder Objectives
Source:http://www.erols.com/mwhite28/literacy.htm
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Chapter 1: Working Smarter, Not Harder Objectives
Source:http://www.erols.com/mwhite28/literacy.htm
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Chapter 1: Working Smarter, Not Harder Objectives
“A knowledge society requires literacy -because of the vastly expanding corpus of knowledge we will also be required to learn how to learn.”
Peter Drucker, Managing For the Future, 1992,
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Chapter 1: Working Smarter, Not Harder Objectives
Literacy - Knowledge Business Jargon “Community of Practice”The Learning Organization Corporate UniversityChief Learning Officer (CLO)Chief Knowledge Officer (CKO)Dean of Corporate Education
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2. Electronic infrastructures
1990 - Toffler’s Powershift - five features of electronic infrastructure Interactivity Mobility Convertibility Connectivity Globalization
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Chapter 1: Working Smarter, Not Harder Objectives
“Result produces a revolutionary nervous system... a far more adaptable, intelligent, and complex nervous system than ever before imagined.” Alvin Toffler, Powershift, 1990, page 364
Methods of creating, storing, accessing and selling knowledge are changing
Customers are demanding access to “just-in-time” inventories of knowledge
Invest in a well-designed electronic infrastructure
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Electronic Infrastructures - Knowledge Business Jargon
"[Knowledge management] embodies organizational processes that seek synergistic combination of data and information-processing capacity of information technologies, and the creative and innovative capacity of human beings." “Deciphering the Knowledge Management Hype", Dr. Yogesh Malhotra, www.brint.com/km/whatis.htm, 1998
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Electronic Infrastructures - Knowledge Business Jargon Innovation “Leveraging intellectual capital”Bill Gates - “Digital Nervous System”Bill Gates – “Banks are on the way out;
not banking”
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3. Social Revitalization
Literacy and technology skills cannot replace physical human interaction
People want more meaningful connections both professionally and personally
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Chapter 1: Working Smarter, Not Harder Objectives
“Concern for personal well-being: Augmentation of intellect education,
entertainment, information Health - physical and mental Security - personal safety and financial Personal services - customization Spiritual well-being - spiritualism, religion and
ethnic affiliation” John Yerxa, “1995 Yerxa Report”
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The overriding questions are Who am I? What is my purpose in life?
Result is a new language of revitalization.
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Revitalization - Knowledge Business Jargon
“Corporate Soul” “Balanced Lifestyle” “Workplace Diversity” “Values Based Management” “Inspirational Leadership”
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Chapter 1: Working Smarter, Not Harder Objectives
Integrated Example - The Changing Education Business “Education is BIG business In 2001, the U.S. spent $5 billion on
elementary books and $3.7 billion on college books
Lifelong learning is BIGGER businessWho is a Teacher?
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“Just-in-time learning”Communities of Practice
When is recess? When is recess?
Literacy and EducationLiteracy and Education
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Revitalization and Education
Educators, parents, communities are concerned about the well-being of children
Revitalization movements are increasing
More people are calling for values education , spiritual training, and customized learning programs
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Chapter 1: Working Smarter, Not Harder Objectives
Working Smarter, Not HarderOverlapping Human/Organizational/
Technological factors in KM: People (workforce) Organizational Processes Technology (IT infrastructure)
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Chapter 1: Working Smarter, Not Harder Objectives
WHAT IS KNOWLEDGE MANAGEMENT?
Process of capturing and making use of a firm’s collective expertise anywhere in the business
Doing the right thing, NOT doing things right Viewing company processes as knowledge
processes Knowledge creation, dissemination, upgrade,
and application toward organizational survival Part science, part art, part luck
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OVERLAPPING FACTORS OF KM
Knowledge
PEOPLE
TECHNOLOGY
ORGANIZATIONALPROCESSES
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EXPLICIT AND TACIT KNOWLEDGE
Oral Communication“Tacit” Knowledge
50-95%
Information Request“Explicit” Knowledge
Explicit Knowledge Base5 %
Information Feedback
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Chapter 1: Working Smarter, Not Harder Objectives
THE KNOWLEDGE ORGANIZATION
Create
KnowledgeOrganization
Collect
Organize
Refine
Disseminate
Culture
Leadership
Techno-logy
IntelligenceMaintain
Competition
KnowledgeManagementProcess
KM Drivers
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THE KNOWLEDGE ORGANIZATION (Fig. 1.3) The middle layer addresses the KM life cycle A knowledge organization derives knowledge
from customer, product, and financial knowledge. Also from financial practices
Indicators of knowledge: thinking actively and ahead, not passively and behind
Using technology to facilitate knowledge sharing and innovation
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IDEAL KNOWLEDGE MANAGEMENT
PEOPLE
KnowledgeBase
OutsideEnvironment
Existing methods/processes
Learning
Newideas
Conversion
Insights
KnowledgeCreation
OrganizationalBenefits
Codified Technology
• New products• New markets• Smarter problem-solving•Value-added innovation•Better quality customer service•More efficient processes•More experienced staff
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Chapter 1: Working Smarter, Not Harder Objectives
IDEAL KNOWLEDGE MANAGEMENT
Strategy Measurement Policy Content Process Technology Culture
People
PeopleKnowledgeExchange
Knowledge Exchange
Knowledge Assets
KnowledgeCapture
KnowledgeInternalization
People
KnowledgeReuse
KnowledgeReuse
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IDEAL KNOWLEDGE MANAGEMENT (Fig. 1.4)The ideal knowledge organization
allows people to exchange knowledge across functional areas via technology and established processes
Knowledge internalized and adopted within the culture of the organization
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THE KM CYCLE AND THE ORGANIZATION
Organizational personnel
Organizational personnel
ManagementDecision making
Culture
Informationtechnology
KM Life Cycle. capture. gathering. organizing. refining. transfer
Figure 1-6 The KM cycle and the organization
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WHAT KM IS NOT ABOUT
Reengineering Discipline or philosophic calling Intellectual capital, per se Based on information or about data Information value chain or knowledge capture Limited to gathering information from the
company’s domain experts or retiring employees and creating databases accessible by intranets
Digital networks
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WHY KNOWLEDGE MANAGEMENT?
Sharing knowledge, a company creates exponential benefits from the knowledge as people learn from it
Building better sensitivity to “brain drain” Reacting instantly to new business opportunities Ensuring successful partnering and core
competencies with suppliers, vendors, customers, and other constituents
Shortens the learning curve
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KM System Justification Is current knowledge going to be lost? Is proposed system needed in several
locations?Are experts available/willing?Can experts articulate how problem will
be solved? Is there a champion in the house?
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THE DRIVERSTechnology Drivers. Process DriversPersonnel-Specific DriversKnowledge-Related DriversFinancial Drivers
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FACTORS TRIGGERING INTEREST IN KM Innovation as core competency Globalization and geographic disperson changed
the organization’s scope Downsizing and reengineering resulted in staff
attrition and knowledge drain Networking and data communications made it
easier and faster to share knowledge Increasing dominance of knowledge as a basis for
improving efficiency and effectiveness triggered the need for utilizing knowledge gained from previous experiences
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KEY CHALLENGES Explaining what KM is and how it can benefit a
corporate environment Evaluate the firm’s core knowledge, by employee,
by department, and by division Learning how knowledge can be captured,
processed, and acted on Addressing the still neglected area of collaboration Continue researching KM to improve and expand
its current capabilities How to deal with tacit knowledge
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KM MYTHS KM is a fad KM and data warehousing are essentially the same KM is a new concept KM is mere technology Technology distributes human intelligence KM is another form of reengineering Company employees have difficulty sharing
knowledge Technology is a better alternative than face-to-face It is “no brainer” to share what you know
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KM LIFE CYCLE
Four-Process View of KM: Capturing – data entry, scanning, voice input,
interviewing, brainstorming Organizing – cataloging, indexing, filtering,
linking, codifying Refining – contexualizing, collaborating,
contexualizing, collaborating, compacting, Projecting, mining
Transfer – flow, sharing, alert, push
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PROMOTING TRUST Decentralize organization structure to allow
decision making by teamwork Reduce control-based management and encourage
management by results Revisit company’s mission statement and ethics
policy to demonstrate its new views about values Assess and improve employee responsibilities and
accountability Eliminate unnecessary directives or barriers Install programs to improve employee commitment
to knowledge sharing
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Conclusion
Literacy + Electronic Infrastructure +
Social Revitalization =
Opportunity for New
Societal Infrastructure
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Chapter 1: Working Smarter, Not Harder Objectives
Strategists needs all three change elements
Literacy and Electronic infrastructures relate to knowledge distribution
Social revitalization relates to motivation
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Chapter 1: Working Smarter, Not Harder Objectives
THE WORLD OF RE-EVERYTHINGKnowledge is productive ONLY when
captured in people’s mindShareability requires decentralized
intelligenceWe need to empower knowledge
workersTop performers can be a problem; they
are not the most humble
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The Knowledge Business has already changed
Are you in the knowledge business?How will you close your knowledge
gap? Is your mind geared to re-think what you
think you know?
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