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Knowledge management is the systematic management of an organization's knowledge assets for creating value and meeting tactical & strategic requirements. It consists of the initiatives, processes, strategies, and systems that sustain and enhance the storage, assessment, sharing, refinement, and creation of knowledge.
Each enterprise should define knowledge management in terms of its own business objectives. Knowledge management is all about applying knowledge in new, previously overburdened or novel situations.
Knowledge management is currently seen as a continuous cycle of three processes, namely −
Knowledge management expresses a deliberate, systematic and synchronized approach to ensure the full utilization of the company's knowledge base, paired with the potential of individual skills, competencies, thoughts, innovations, and ideas to create a more efficient and effective company.
In simple words, knowledge management incorporates both holding and storing of the knowledge perspective, with respect to the intellectual assets.
It is the deliberate and systematic collaboration of an organization's people, technology, processes, style and structure in order to add value through reuse and innovation.
There are three distinct perspectives on Knowledge Management which leads to a different estimation and a different definition.
Knowledge management is a business activity with two primary aspects −
Knowledge management is the transformation of knowledge in the form of insights, understandings, and practical know-how that we all possess in other manifestations like books, technology, practices, and traditions within organizations of all kinds and in society in general.
Knowledge management is the concept under which information is changed into actionable knowledge and made available effortlessly in a usable form to the people who can leverage it according to their needs.
Application of Knowledge Management (KM) lie in the below four key areas
Knowledge Management serves as one of the major response to the challenge of trying to handle this complex, information overloaded work environment. As such, Knowledge management is perhaps best clustered as a science of complexity.
Knowledge management cycle is a process of transforming information into knowledge within an organization. It explains how knowledge is captured, processed, and distributed in an organization. In this chapter, we will discuss the prominent models of knowledge management cycle.
Till date, four models have been selected based on their ability to meet the growing demands. The four models are the Zack, from Meyer and Zack (1996), the Bukowitz and Williams (2000), the McElroy (2003), and the Wiig (1993) KM cycles.
The Zack model is extracted from work on the design and development of information products. In Meyer and Zack's approach, the network between each stage is designed to be logical and standardized.
In this cycle, the major developmental stages of a knowledge repository are analyzed and mapped to the stages of a KM cycle.
The stages are acquisition, refinement, storage/retrieval, distribution, and presentation/use. This cycle is also known as the “refinery.”
Acquisition deals with issues regarding origin of raw materials such as scope, breadth, depth, credibility, accuracy, timeliness, relevance, cost, control, and exclusivity.
The guiding principle is the well- known proverb of “garbage in, garbage out.” That is, highest quality source data is required, else the intellectual products produced downstream will be lower.
Refinement may be physical (like migrating from one medium to another) or logical (like restructuring, relabeling, indexing, and integrating.)
Refining also defines cleaning up (like sanitizing content so as to ensure complete anonymity of sources and key players involved) or standardizing (like conforming to templates of a best practice or lessons learned as used within that particular organization).
This stage also adds up to the value by creating more readily usable knowledge objects and by storing the content more flexibly for future use.
Storage or Retrieval forms a bridge between the upstream addition and refinement stages that feed the repository and downstream stages of product generation. Storage can be physical (file folders, printed information) as well as digital (database, knowledge management software).
Distribution defines how the product is to be delivered to the end-user (like fax, print, email) and encloses not only the medium of delivery but also its timing, frequency, form, language, and so on.
Context plays an important role in Presentation or Application stage. The performance of each of the preceding value-added steps is evaluated here – for example, does the user have enough context to be able to make use of this content? If not, the KM cycle has failed to deliver value to the individual and ultimately to the company.
The repository and the “refinery” combined enable the management of valuable knowledge of a firm. In this cycle, there is also an impression of having to continually renew the repository and the refinery in order to avoid elimination.
The Meyer and Zack model is one of the most complete picture of the key elements engaged in the knowledge management model. To be specific the notion of refinement is a crucial stage in the KM cycle and one that is often neglected.
Bukowitz and Williams portray a knowledge management process framework that outlines “how organizations generate, maintain and expand a strategically correct stock of knowledge to create value”.
In this framework, knowledge includes knowledge repositories, relationships, information technologies, communications infrastructure, functional skill sets, process know-how, environmental responsiveness, organizational intelligence, and external sources.
These stages aim on more long-range processes of matching intellectual capital to strategic needs.
McElroy outlines a knowledge life cycle that consists of the processes of knowledge production and knowledge integration, with a series of feedback loops to organizational memory, beliefs, and claims and the business-processing environment.
Experience gained from the application of knowledge in the organizational knowledge base leads to new claims and resulting beliefs, triggering the cycle to begin all over again.
In knowledge production, the primary processes are individual and group learning. Knowledge claim formulation, information acquisition; codified knowledge claim and knowledge claim evaluation.
These knowledge production processes can be briefed as −
Knowledge integration is the process by which an organization announces new knowledge claims to its operating environment and retires old ones. It includes all knowledge transmission such as teaching, knowledge sharing, and other social activities that either connects an understanding of previously produced organizational knowledge to knowledge workers or accommodate newly minted knowledge.
One of the advantages of the McElroy cycle is the clear description of how knowledge is examined and a conscious decision is made as to whether or not it will be included into the organizational memory. The authorization of knowledge is a step that clearly differentiates knowledge management from document management. The KM cycle aims at processes to identify knowledge content that is of value to the organization and its employees
WIIG highlights the three conditions that need to be present for an organization to conduct its business successfully.
WIIG marks the major purpose of KM as an effort “to make the organization intelligent-acting by facilitating the creation, accumulation, deployment and use of quality knowledge.” WIIG's KM cycle shows how knowledge is built and used as individuals or as organizations.
The following figure shows the four major steps of the WIIG model.
The following are the three major stages of integrated cycles of knowledge management strategy when introduced in any organization −
Knowledge Capture states the identification and frequent codification of existing (usually previously unnoticed) internal knowledge and know-how within the organization and/or external knowledge from the environment.
Knowledge Creation is the advancement of new knowledge and know-how innovations that did not have a previous existence within the organization.
Once, it is clear that the newly identified content is of sufficient value, the next step is to contextualize this content. This involves maintaining a connection between the knowledge and those knowledgeable about that content.
Contextualization also indicates identifying the key elements of the content in order to better match to a variety of users. Finally, contextualization succeeds to when the new content is firmly, precisely yet seamlessly, embedded in the business processes of the enterprise.
The knowledge management cycle is then rechecked as users understand and decide to make use of content.
The users will update usefulness, and they will signal when it becomes out of date or when this knowledge is not applicable.
All the Knowledge Management models described in this chapter attempt to address knowledge management from a universal and broader perspective.
The von Krogh and Roos model of organizational epistemology (1995) is the first model that precisely differentiates between individual knowledge and social knowledge.
This model, analyzes the following aspects
In their organizational model, knowledge is to be found both in the mind of the people and in the links between them.
This model examines the nature of knowledge management from the perspective of −
The above five factors create issues that can prevent knowledge management strategies.
The Nonaka and Takeuchi model of KM has its base in a universal model of knowledge creation and the management of coincidence.
There are four different modes of knowledge conversion in the Nonaka and Takeuchi model of knowledge conversion −
Socialization is the technique of sharing tacit knowledge through observation, imitation, practice, and participation in formal and informal communities and groups. This process is basically preempted by the creation of a physical or virtual space where a given community can interact on a social level.
Externalization is the technique of expressing tacit knowledge into explicit concepts. As tacit knowledge is highly internalized, this process is the key to knowledge sharing and creation.
Combination is the technique of integrating concepts into a knowledge system. Some examples or cases would be a synthesis in the form of a review report, a trend analysis, a brief executive summary, or a new database to organize content.
Internalization is the technique of embodying explicit knowledge into tacit knowledge.
The Choo Sense-Making KM Model (1998) focuses on
These three highly interconnected processes play a major role in the unfoldment of the organization's knowledge vision, it's potential to knowledge creation and its commitment into taking knowledge creation to the utmost consequences.
Sense Making − Its long-term aim is the warranty that organizations will adapt and continue to prosper in a dynamic and complex environment through activities of prospecting and interpretation of suitable information enabling it to understand changes, trends and scenarios about clients, suppliers, competitors and other external environment actors.
Knowledge Creation − It is a process that allows a company to create or acquire, organize and process information in order to generate new knowledge through organizational learning. The new knowledge obtained, allows company to develop new abilities and capabilities, create new products and new services, improve the existing ones and redesign its organizational processes.
Decision Making − The Company must choose the best option among those that are plausible and presented and pursue it based on the organization's strategy. Decision making process in companies is constrained by the bounded rationality principle.
This model focuses on how informational elements are selected and fed into organizational actions.
Karl Wiig KM model (1993) marks the basic principle which says, in order for knowledge to be useful and valuable, it must be organized and synchronized.
Some essential dimensions in the WIIGS KM model are −
Completeness − It describes how much relevant knowledge is available from a given source. Sources vary from human minds to knowledge bases (like, tactic or explicit knowledge).
First of all, we have to make sure, that the knowledge is complete if all the information available on the subject is there but if no one knows of its existence, they cannot make use of this knowledge.
Connectedness − It briefs about the well-understood and well-defined relations between the different knowledge objects. Most knowledge objects are connected to each other, the more connected a knowledge base is then the more consistent the content and the greater its value.
Congruency − A knowledge base congruent when all the facts, concepts, perspectives, values, judgments, and relational links and connections between the objects are consistent. Most knowledge content do not meet such ideals.
Perspective and Purpose − It is a technique through which we know something but from a particular point of view for a specific purpose. We organize much of our knowledge applying to the dual dimensions of perspective and purpose.
This model attempts to define different levels of internationalization of knowledge and therefore could be seen as a further refinement of the fourth Nonaka and Takeuchi quadrant of internalization.
This model is based on the key concept of information which is good and that is different from a physical asset.
Boisot differentiates information from data by emphasizing that information is what an observer will extract from data as a function of his or her expectations or prior knowledge.
Boisot's model can be seen as three dimensional cube with the following dimensions −
He proposes a Social Learning Cycle (SLC) that adopts the I-Space to model the dynamic flow of knowledge through a series of six phases −
The Boisot's model considers companies as living organisms. Their process of growing and developing knowledge assets within companies is always changing.
This means that companies need to adopt a dynamic KM strategy which accommodates the dynamic nature of the organizational learning cycle.
According to the ICAS (Intelligent Complex Adaptive Systems) theory, an organization is seen as an adaptive, complex system.
Complex adaptive systems includes many independent agents that interact with one another locally and their combined behavior gives rise to complex adaptive phenomena.
These models contain a series of functions that makes sure that the viability of any living system in general and of organizations, in particular.
ICAS systems are based on cybernetics principles, which uses communications and control mechanisms in order to understand, describe and predict what a viable organization should do.
Adaptive systems involve lots of independent agents which are interacting. Their behavior makes possible the appearance of some complex circumstances of adaptation. A general model of a complex behavior is the result of all the interactions. Inside the adaptive model, the intelligent elements are made of people who are self-organized, but who can remain as a part of general hierarchies of the organizations.
The challenge is to use the advantage offered by the force of the people when they cooperate, keeping a global sense of unity. Organizations solve issues by creating options, using resources, both internal and external, that can add value over the initial input.
Knowledge acquisition is the process used to describe the rules and ideologies required for a knowledge-based system. It is the process of extracting knowledge from experts and structuring this knowledge into a readable form.
Some techniques used in the process of extracting information are Interviewing, Observations, Protocol Analysis, and Brainstorming.
It is ideally driven by strategies − for example, an organization decides what knowledge is needed, what it has, and then fills in the gap by developing new knowledge or acquiring it. Knowledge acquisition has several applications that we will be discussing in this chapter.
Converting unspoken knowledge to a categorical form by way of codifying, and to acquire this tacit knowledge as explicit meta-knowledge (knowledge about knowledge).
This is basically a directory which knows what and how to contact them. The aim of the codification is to make it easy to organize, locate, share, store, and use the knowledge.
Common material including codified knowledge are manuals, spreadsheets, decision support systems and procedures.
Anyhow, the codification process is generally expensive and it is difficult to code for universal understanding too.
Knowledge creation is all about continuous transfer, combination, and conversion of the different types of knowledge, as users practice, interact, and learn.
Content creation and management tools are essential to structure and organize knowledge content for each retrieval and maintenance. It consists of the following tools −
Authoring tools include the software that allow users to create web page or multimedia applications. These are tools by which various media elements are brought together to structure and flow.
Authoring tools align with the aim of capturing the author's tacit knowledge and helping structure that knowledge into an explicit form.
Annotation tools help in addition of explanatory comments to a document after it has been created. The comments can be public as well as private. Tools like track changes in MS Word is an example of annotation tools. This tool also helps with the goal of capturing tacit knowledge by allowing authors to connect their expertise to a certain document.
Data mining pioneers new or hidden patterns in data that resides in multiple databases. It includes statistical analysis to discover relations, correlation, and market related analysis.
Various analysis tools are approached in data mining such as statistical analysis tools e.g. SAS, data mining suites, and data visualization tools.
This tool accomplishes the goal of creating new knowledge by being able to analyze existing data and making something useful out of it. It also helps in predicting future occurrence and forecast expected outcomes.
It includes designing or patterning of an item that acts as a guide for designing or constructing similar items. This tool is helpful to organize knowledge in a systematic manner, by following an established design.
These are webpages that typically focus on a specific subject. They can be like personal pages that are much like personal diaries which are periodically updated and accessible publicly. This web tool fits with the aim to elicit knowledge, by authors being able to express their unique ideas and opinions.
It includes groupware and collaborative tools. These tools acts as enablers of knowledge flow and knowledge-sharing activities among personnel.
Groupware invokes class of software (programs) that allows to work together while located remotely from each other.
Here, collaboration is mainly referred as groupware, or work group productivity software. For example − LAN (Local Area Network)
Typically, a groupware supports the following operations −
Knowledge management strategy is a general, issue-based approach to define operational strategy and objectives with specialized KM principles and approaches. It helps in addressing questions like −
A good Knowledge Management strategy possesses the following components −
A knowledge audit service marks the core information knowledge requirements and uses in an organization. It also outlines the gaps, duplications, and flows and how they contribute to business goals as well as the owners, users, uses, and key attributes of core knowledge assets.
It produces the following types of results −
A better understanding of the contribution of knowledge to business results.
This involves establishing the current and desired states of knowledge resources and KM levels. Specific projects further defined in order to address specific gaps that were identified and agreed upon as high-priority areas.
A good gap analysis addresses the following points −
This analysis is further used to list and prioritize KM objectives to be addressed by the organization.
Intellectual assets are generally categorized as human capital (like the know-how of knowledge workers that is “rented” by an organization), structural capital (like the policies, procedures, and applications that the organization “owns”), and customer or relationship capital (like the value of customer relationships and loyalty that has been built up over the years).
A variety of fairly sophisticated KM measurement techniques are available now that can help assess how well an organization is progressing. These involve benchmarking, the balanced scorecard method, and the house of quality matrix.
Before introducing any metric-based system, we have to be clear regarding what we want the metrics to answer. Metrics generally helps us to answer several questions, such as −
Measuring KM Implementation
The first thing to be done is probably wanting to measure, and how well we are managing to implement KM.
When we run your assessment at the start of KM implementation, we will develop some baseline metrics which you can measure the improvement against.
A KM assessment protocol measures various aspects of knowledge flow within an organization, and allows you to identify blockers and obstacles to knowledge flow. Rerunning the assessment later allows you to measure progress.
Measuring KM Compliance
Let us assume that an employee named Steve has introduced a knowledge management framework to the organization, with some clear accountabilities and clear expectations in the form of KM policies and standards.
At this stage, Steve might want to measure whether people are complying with these expectations, by using dashboarding and analytical tools to track his project members in an organization. Similar dashboards will be required in other functions of an organization.
Measuring KM Activity
It is also useful to introduce some activity based metrics to track different elements of your Knowledge management system.
Measuring Business Outcome
It is generally believed that, knowledge management leads to continuous performance improvement. As knowledge improves, so does the efficiency and results of an organization. Therefore, the more we deploy these methods and implement them, the better will be business performance.
Benchmarking is the hunt for industry wide best practices that leads to superior performance. It is a fairly straightforward Knowledge Management metric that represents a good starting point.
Benchmarking basically consists of a study of similar companies to determine how things are done best in order to adapt these methods for their own use. This approach is best summed up by the Hindu proverb − “know the best to become the best.”
There are two general types of benchmarking −
A Balanced Scorecard method (BSC) is a judgement and management system that enables enterprises to clarify their vision and strategy and which translates them into action. It offers feedback on both the internal business processes and external results in order to continuously improve strategic performance and results.
Balanced Scorecard is a conceptual framework for converting an organization's vision into a set of performance indicators distributed among four dimensions −
Through BSC, an enterprise can monitor both its current performance (finances, customer satisfaction, and business process results) and its efforts to improve processes, motivate and educate employees, and enhance information systems − its ability to learn and improve.
The balanced scorecard method is applicable to both profitable and non-profitable enterprises as well as to both private and public sector companies. It provides a number of significant advantages, including the translation of abstract goals into action items that can be continuously monitored. In addition, the balanced scorecard method provides objective measures of the current scenario, and helps initiate the changes required to move from the current to the desired future state of the company.
The house of quality method was discovered to show the links between true quality, quality characteristics, and process characteristics. It was done using the Fishbone Diagram, with true quality in the heads and quality and process features in the bones.
This technique was also known as Quality Function Deployment (QFD), as it links the customer's needs with marketing, design, development, engineering, manufacturing, and service functions. It can be used for service as well as software products.
QFD is the only comprehensive quality system that aims specifically at satisfying the customer. It concentrates on maximizing customer satisfaction (positive quality), measured by metrics, such as repeat business and market share.
It focuses on delivering value by seeking out both spoken and unspoken needs, converting these into design targets, and communicating the targets throughout the organization.
In addition to this, it allows customers to prioritize their requirements, tells us how we are doing compared to our competitors, and then directs us to optimize those features that will bring the greatest competitive advantage.
Organizational culture figures out values and beliefs which are an integral part of what one chooses to see and absorb. It comprises of a shared perception of reality, regarding how things are and how things should be. Furthermore, community and group culture determines the willingness and conditions for knowledge sharing with other members of the enterprise.
Thus, knowledge and knowledge sharing, are inseparable from organizational culture. The interface for culture is social interaction, the web of communications that constitute a community.
Organizational culture can also be described in terms of both its causes and effects. Using results perspective, culture can be defined as a manifested pattern of behavior, consistent behavioral patterns observed across a group of individuals, or “the way we do things around here.” So, culture defines consistent ways in which people perform tasks, solve problems, resolve conflicts, treat customers and employees, and so on.
Using a process perspective, culture is defined as a set of mechanisms such as informal values, norms, and beliefs that control how individuals and groups in an organization communicate with each other and people outside the organization.
This classification scheme crops four types of organizational cultures −
Basically organizational culture can be split into three levels namely −
There are three basic ways in which a culture effects an individual namely −
Organizational culture includes a set of norms, routines, and unspoken rules of how things are done in that organization. An organization's culture can be in different states of maturity, and these can be assessed using a variety of organizational and KM maturity models.
A maturity model is defined as a descriptive model of the stages through which organizations progress as they define, implement, evolve, and improve their processes.
This model acts as a guide for selecting process, improvement strategies by assisting the determination of the current process capabilities and the identification of issues most critical to quality and process improvement within a particular domain, like software engineering or systems engineering.
There are a number of organizational and KM maturity models, mostly derived from the Capability Maturity Model (CMM).
The CMM was developed to describe the phases of software development processes, and the model was subsequently updated to the Capability Maturity Model Integration in 2000 (CMMI Project Team, 2002) in a better way.
The Capability Maturity Model describes five evolutionary levels in which an organization manages its processes. The five stages of the CMM are as follows −
Again, five maturity levels are specified, and each level is characterized by the efficiency of the knowledge life cycle, which consists of −
The Wenger CoP life-cycle model provides a good characteristic to assess whether informal networks exist within an organization and whether they are recognized and supported by the organization.
The life-cycle model shows that a community requires to have attained the maturity and stewardship of knowledge levels in order to begin creating value for its members and for the organization as a whole.
The key features of the maturity model are as follows −
The skills required for a knowledge management team member ranges from business awareness to management skills, learning abilities, communication and interpersonal skills, as well as information management and information technology expertise.
KM professionals should be proficient in retrieving information, evaluating or assessing information, organizing and analyzing content, presenting content, ensuring the security of content, and collaborating around valuable content.
One of the best approaches for forming an effective Knowledge management team is to define different types of knowledge management professionals and the types of skills, attributes, and background they should ideally possess.
A KM dream team collectively possess skills of communication, leadership, expertise in KM methodology, processes, tools, negotiation followed by strategic planning, combined with the following attributes, i.e., know the organization, remain connected to the top, adopt a systems view, and be an intuitive risk taker.
The roles involved in knowledge management are quite distinct. These include following categories −
The primary roles and responsibilities can be summarized as follows −
Ethical theories are divided into three general subject areas −
Ethics in Knowledge Management comprises of valuing human beings. Ethics are also considered to be a simple matter, but that is a misconception. Much of ethics can be distilled down to boundaries that can help employees of an organization stay on the correct side of organizational policy and help clarify ethical issues.
Managing ethical liabilities involves four major processes −
Markus (2001) identifies three major roles in the reuse of knowledge −
The two very general types of knowledge reuse are −
A Knowledge repository is an online database that systematically absorbs, organizes, and categorizes knowledge-based information.
They are basically the private databases that manage enterprise and proprietary information, but public repositories also exist to manage public domain intelligence.
They are also known as digital learning repositories, Digital object repositories and Electronic performance support systems.
It helps organizations connect people with information and expertise worldwide through online searchable libraries, discussion forums and other elements.
The key features of an effective digital knowledge repository are −
Some of major challenges faced by knowledge management function are as follows −
Some sample KM research topics include the following −
Knowledge management contributes towards the benefits of individual employees, communities of practice, and the organization itself.
A knowledge leader (or champion) is a person with or without the title of Chief Knowledge Officer (CKO), Head of Knowledge Management, or something similar. However, he or she is widely noticed as the person who is setting the direction for knowledge management and driving it forward.
We have five broad knowledge leadership approaches. They are −
The different methods of Knowledge Management are not mutually exclusive and we cannot claim one approach is instinctively better than another.
Contingency approach is based on the assumption that there is no universal approach or best practice to manage or solve distinct problems. A constant search for appropriate methods of solutions and management for different situations and conditions characterize it. It is a creative and system approach.
It also recognizes the need for flexibility, dependent on the process applied to achieve a given goal and stresses that the appropriateness of a Knowledge Management approach will depend on the business context and the available resources.
The Behavior approach has its origins in change management and business process re-engineering. It regards knowledge as a managerial issue. Based on this approach, although technology is necessary for the management of explicit knowledge resources, it is not the only solution for knowledge management. In this approach, the focus is more on innovation, creativity and learning rather than focusing on manipulating explicit resources or knowledge creation.
The distribution and sharing of knowledge is embedded in interactions and networks among people and their institutionalized groupings, e.g., teams and organizations, that enable us to access the diverse resources of intelligence.
Transformational leadership has the ability to effect employee's perceptions through the returns an organization gets in the form of human capital benefits. Transformational leaders have the ability to make those benefits greater by adding them in the knowledge management processes, encouraging interpersonal communication among employees and creating organizational culture.
Transformational leadership improves the levels of organizational innovation through creating a participative environment or culture and it can do so directly or indirectly by changing organization's culture which supports knowledge sharing and management in the organization.
Transformational leaders promotes a culture where employees have the autonomy to speak about their experiences. It has been seen that transformational leaders are more innovative than transactional and laisse-faire leaders.
Transactional leadership style is formed by the concept of reward and punishment. Transactional leaders believe that the employee's performance is completely dependent on these two factors.
When there is an encouragement, the workers put in their best effort and the bonus is in monetary terms in most of the cases. In case, if they fail to achieve the set target they ought to be punished. Transactional leaders pay more attention to physical and security requirements of the employees.
The trait approach for knowledge management has been derived by studying the unique characteristics of both successful and unsuccessful leaders. The resulting lists of traits are then compared to those of potential leaders to assess their likelihood of success or failure.
Successful leaders tend to have personality traits and abilities that are superior to those of less effective leaders. The trait approach identifies a set of core traits of successful leaders to predict the effectiveness of a potential leader. While these traits do not guarantee that a leader will be a successful or not, they are seen as preconditions that endow people with leadership potential.
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