icac 2 rev

Knowledge based assets for competitive success

KNOWLEDGE CREATION & CAPTURE

Session 2

Dr. Daniel Chandran Faculty of Information TechnologyUniversity of Technology, Sydney

August 2009

Daniel Chandran UTS 2

Objectives

• Knowledge Creation– Characteristics– Dimensions– Models

• Knowledge Creation Process• Knowledge Architecture• Knowledge Capture• Knowledge Audit• Technologies for knowledge management systems


1. Why have Japanese companies become successful?

2. How do Japanese companies bring about continuous innovation?


“Knowledge” as a competitive force

Knowledge Creation

Continuous innovation

Competitive Advantage


Why Organizations Launch KM Programs


Knowledge Creation

• KM is not a technology; it is an activity enabled by technology and produced by people– how people share knowledge that will add value to the

growth of business– Today’s knowledge may not solve tomorrow’s

knowledge

• Alternative way of creating knowledge is via teamwork

• A team compares job experience to job outcome—translates experience into knowledge

• Such newly acquired knowledge is carried to the next job

• Maturation over time with a specific job turns experience into expertise


Knowledge Creation & Knowledge Transfer Via Teams

Team performs

a job

Knowledge captured

and codified in a form usable by others

New experience/ knowledge

gained

Outcome compared to action

Outcome is

realized

Initial knowled

ge

New knowledge reusable by same team on next job

Series of specificTasks carried out inA specific order


Impediments to knowledge sharing

Vocational reinforcers

Attitude

Personality

Company strategies and

policies

Organizational culture

Knowledge sharing

Work Norms

CompensationRecognitionAbility utilizationCreativityGood work environmentAutonomyJob securityMoral valuesAdvancementVarietyAchievementIndependenceSocial status


Characteristics of Knowledge Creation

• Express the inexpressible• Heavy reliance on figurative language and

symbolism • Use of metaphor or analogy in product

development • To disseminate knowledge, an individual’s

personal knowledge has to be shared with others

• New knowledge is born in the midst of ambiguity and redundancy

• SIS• Unlearn Old ideas.


Types of Knowledge

Tacit Knowledge(Subjective)

Explicit Knowledge (Objective)

Knowledge of experience (body) – tends to be tacit, physical and subjective

Knowledge of rationality (mind) – tends to be explicit, meta physical and objective

Simultaneous Knowledge (here and now) – specific, practical context

Sequential Knowledge (there and then) – about past events or objects

Analog Knowledge (practice) – sharing between individuals through communication

Digital Knowledge(theory) – sequentially created by ‘digital’ activity


Nonaka’s Model of Knowledge Creation

TACIT TO TACIT(SOCIALIZATION)

E.G. TEAM MEETINGS AND

DISCUSSIONSINFORMAL MEETINGS TO

SOLVE DIFFICULT PROBLEMS

TACIT TO EXPLICIT(EXTERNALIZATION)

E.G., DIALOG WITHIN TEAM ANSWER QUESTIONS

EXPLICIT TO TACIT(INTERNALIZATION)

E.G., LEARN FROM A REPORT“RE-EXPERIENCE” WHAT THE

OTHERS EXPERIENCED

EXPLICIT TO EXPLICIT(COMBINATION)

E.G., E-MAIL A REPORT

Experience among people in face-to-face meetings

Articulation among people through dialog

Best supported by technology

Taking explicit knowledge and deducing new ideas


Knowledge Spiral

Socialisation Externalisation

Internalisation Combination

Learning by Doing

Field Building

Linking ExplicitKnowledge

Sympathised knowledge

Conceptualknowledge

Systemic knowledge

Operationalknowledge

Yieldconcepts

Yield PrototypesAbout Project Management,Production Process &

Policy Implemen-tation

Yield Mental Models and Tech

skills Dialogue


NONAKA’s Spiral Process as grounded theory

Socialization

Explaining an

d

elaborat

ing on

existing knowled

ge

ExternalizationConverting

unstructured

information into

explicit structures

Internalization

Evaluating newly

created explicit data

Combination

Combining stored

explicit d

ata in

to

new fo

rms

requires easy ways to exchange experiences, develop trust, share values

Dialoging - sharing of mental models, articulation of concepts, development of common terms. Usually consciously constructed.

Exercising - communicate artifacts and embody in working context. Reflect on outcomes.

Systemising - visualizing interactions, constructing artifacts, combine explicit knowledge.


Knowledge Creation Process (KCP)

TACIT KNOWLEDGE EXPLICIT KNOWLEDGE

IN ORGANISATION IN ORGANISATION

CREATINGCONCEPTS

JUSTIFYINGCONCEPTS

SHARINGTACIT

KNOWLEDGE

BUILDING ANARCHETYPE

CROSS LEVELING KNOWLEDGE

SOCIALISATION EXTERNALISATION COMBINATION

INTERNALISATION

TACIT KNOWLEDGEFROM USERS

INTERNALISATIONBY USERS

EXPLICITKNOWLEDGE

AS PRODUCTS/SERVICES

ENABLING CONDITIONSIntention

AutonomyRedundancy etc

Market


Phase I-Sharing Tacit Knowledge

• Start the focus on Tacit Knowledge• Individuals are the main source of Tacit Knowledge• Build mutual trust• Create a “field” where individuals can work

– Self organising team facilitates organisational knowledge creation

– Management sets challenging goals – Management endows high degree of autonomy– Autonomous team sets its own task boundaries


II - Creating Concepts

• Interaction between TK and EK• The team articulates it through further dialogue

in the form of collective reflection• The tacit mental model is verbalised into words

and phrases• Crystallised into explicit concepts• This phase employs figurative language such as

metaphors and analogies• Corresponds to externalisation


III- Justifying Concepts

• Justify new concepts created by individuals/team– Determine the newly created concepts are

truly worthwhile for the organisation and society

• Criteria for justification– Both qualitative and quantitative– cost, profit margin, degree to which a product

can contribute to the firm’s growth


IV – Building an archetype

• Justified concept is converted into tangible or concrete – an archetype

• Can be a prototype for a new product• Can be a model operating mechanism for a

service• Built by combining newly created EK with

existing EK• It is a complex phase – requires cooperation of

various departments within the organisation


V- Cross-Leveling of Knowledge

• Organisational knowledge creation is a never-ending process

• New concept created, justified and modeled moves to a new cycle of knowledge creation at a new ontological level

• Intra-organizationally it can trigger a new cycle expanding horizontally and vertically across the organisation

• Inter-organizationally it can mobilize knowledge of affiliated companies, customers, suppliers, competitors through interaction


Identifying Knowledge Content Centers

Marketing

HumanResources

Customer Service

Sales

. Strategies

. Tools

. R & D

. Advertising . Complaint rate. Satisfaction information

. Job openings. Benefits

. Competition data. Sales volume. Leader sales information


A HELP DESK SITUATION

Client

Contact person

Experts

Service request Find solution

Knowledge about where knowledge can be found

Organizationaldatabase

Supporting Clients - Emphasis on Knowledge


Knowledge Capture

• Transfer of problem-solving expertise from some knowledge source to a repository or a program

• A process by which the expert’s thoughts and experiences are captured

• Includes capturing knowledge from other sources such as books, technical manuscripts, etc.

• A knowledge developer collaborates with an expert to convert expertise into a coded program

• Knowing how experts know what they know


Strategic Directions for Knowledge Management

Codification

Personalization

People-to-people

Are the two opposite or complimentary?

Reward for contributing to knowledge repository

Reward for sharing knowledge

ESSENTIAL FEATURES

RepositoryCollaborative service

Retrieval serviceInterface


Aligning KM and Business StrategyStrategic Knowledge Gap Analysis

What your companyMust know

What your companyCan do

What your companyknows

What your companyMust do

Strategy-knowledge Link

Knowledge-Strategy Link

Knowledge Gap Strategic Gap


Ernst and Young Process

Reviews PowerPacks

Knowledgeobjects

Knowledgeobject

development

E-mail submissions

Discussion database and document repository

Proposal templates

Subject matter objects


“Build it, and they will come”

“Knowledge is actively managed”

“Our best knowledge guides

our activities”

“Knowledge is a by-product”

Result:

Global Communications

Result:

Relevant quality content, where and when needed

Result:

People Guided by Knowledge

Result:

Organizational Memory

KnowledgeKnowledgeOutfittingOutfitting

PerformancePerformanceIntegrationIntegration

KnowledgeKnowledgeSharingSharing

1992-1994 1996-2000 21st Century1994-1996

EnablingEnablingInfrastructureInfrastructure

Accenture’s Knowledge Management Journey


Accenture’s Four Pillars of Knowledge Management

Strategy

TechnologyPeople

Process

•How do you create a culture for sharing?

•Which people need to be empowered to contribute the right knowledge?

•Are priorities aligned with measurements?

•Which factors are critical for my business that can be addressed through knowledge management?

•Which knowledge adds the most value, and what investments are required to realize this value?

•What are the highest priority initiatives?

•What tools are currently in place?

•What tools are needed to enable the environment?

•How do you fill the gap?

•Are the right processes in place to:

•capture, refine, and create knowledge?

•disseminate, share, and apply knowledge to deliver business value?


The Accenture: Knowledge Xchange

Capturingknowledge in

14 Global libraries

Knowledge centerResearchHelp desk

Content management

Clientcenter

Knowledge specialist

Knowledge champion

FRAMEWORK

Process integrationSocialization (mindset

change)Utilization (easy access)Automation (enterprise wide

access)

Managed vocabularySearch and browse


Accenturewww.ac.com

Capturing Knowledge

Practicespecificdatabase

ClassificationStorage and

delivery

Subject specialist

E-mail


Key propositions

• KM initiatives have to be aligned with corporate goals

• Top management involvement and commitment are important

• Systematic collaboration of all employees involved in the transformation have to be supported

• Efficient and effective knowledge sharing and creation have to be practiced continuously to overcome barriers


Benefits of KMS

Process OutcomesCommunication• enhanced communication• faster communication• more visible opinions of staff• increased staff participationEfficiency• reduced problem-solving

time• shortening proposal times• faster results• faster delivery to market• greater overall efficiency

Organisational outcomesFinancial• increased sales• decreased cost• higher profitabilityMarketing• Better service• Customer focus• targeted marketing• proactive marketingGeneral• Personnel reduction• improved project management• consistent proposals to multi- national clients

IT & KM

• IT is crucial to the success of every KM System

• IT enables KM by providing the enterprise architecture on which it is built

Portals

Portals are virtual workplaces that:• Promote knowledge sharing among different categories of end users

e.g. customers, partners and employees• Provide access to stored structured data

e.g. data warehouses, database systems• Organize unstructured data

e.g. paper documents, electronic documents etc


Benefits of Knowledge Portals

ProductivityLocating Documents

CollaborationBetter DecisionsQuality of Data

Sharing KnowledgeIdentifying Experts

E-mail TrafficBandwidth Use

Time in MeetingsPhone Calls

Response TimesRedundant EffortsOperating CostsTime to market


Portal Features and Benefits


Intelligent Agents

• Intelligent agents are tools that can be applied in numerous ways in the context of EKPs.

• They are an intermediary between the enterprise and its customer in virtual destinations

• Intelligent agents are still in their infancy.• Agents are software entities that are able to execute a wide range

of functional tasks such as searching, comparing, learning, negotiating and collaborating


Portal Vendors

Vendor KM PortalProduct

Feature Summary Best Uses

Lotus/IBM Lotus Raven 1.0 (in beta)

• Intelligent taxonomy• QuickPlace collaboration tool • Assigns value to data based on how often it is used• Portal replication• Facilitates content management

• Self-creating and refining taxonomies• Personnel resources linked to data sources• Advanced collaboration• Easy portal repurposing• Rapid application development with associated KM packages

Open Text

MyLivelink Portal 1.0 with Livelink 8.5.1 KM software

• Integrated work flow • Quick integration of features • Quick portal deployment

• Integrated KM• Document management and work flow• Custom collaboration spaces (personal, project, or enterprise)


Vendor KM Portal Feature Summary Best Uses

Plumtree Plumtree Corporate Portal 4.0

• Automatic population • E-mail, voice, and wireless notification • Integration with LDAP directories • E-room tools

• Easy and extensive content and application integration• Scalability• Advanced security • Trainable taxonomies• Various data access• Customization and extensibility

Woolamai WebMeta Engine 1.0

• Quick integration • Flexible portal interface• Knowledge taxonomy adapts to data views• Data-mining functionality• Web site statistics

• Usability• Tracking site statistics• Content streaming to wireless devices


Other Supporting Technologies

• Artificial Intelligence– Assist in identifying expertise– Elicit knowledge automatically and semi-automatically– Provide interfacing through natural language processors– Enable intelligent searches through intelligent agents.

• Intelligent agents are software systems that learn how users work and provide assistance in their daily tasks.

• Knowledge Discovery in Databases (KDD) is a process used to search for and extract useful information from volumes of documents and data. It includes tasks such as:– knowledge extraction– data archaeology– data exploration– data pattern processing– data dredging– information harvesting


Other Supporting Technologies

• Data mining the process of searching for previously unknown information or relationships in large databases, is ideal for extracting knowledge from databases, documents, e-mail, etc.

• Model warehouses & model marts extend the role of data mining and knowledge discovery by acting as repositories of knowledge created from prior knowledge-discovery operations

• Extensible Markup Language (XML) enables standardized representations of data structures, so that data can be processed appropriately by heterogeneous systems without case-by-case programming.

icac 2 rev

Education

job knowledge

users explicit knowledge

tacit knowledge individuals

othersnew experience

individuals personal

knowledge based assets

explicit combination

explicit externalization