Knowledge Management and Information Systems

Edwin V. Maraon Ateneo de Davao University VP for Mindanao, PSITE-National EVP, ICT Davao Inc. evmaranon@gmail.com

Main Components

Knowledge Management Concepts Knowledge Management and Organizational Goals Knowledge Management Strategies and Tools

Main Reference: Presentation Slides of Dr. Serafin Talisayon during a Short-Term Training on Knowledge Management held in Davao City, 2006

Knowledge Management Concepts

Short Workshop #1

What helps you do your job well? What things, people, conditions, qualities or factors facilitate performance of your work?

Freedom Wall #1
Human Capital
Experiences

Structural Capital
Administration

Stakeholder Capital
Good

Tangible Assets
References

Motivation
Good

relationship

related to the job Trainings and workshops attended Acquired knowledge and skills through education Time management Health Working with a cup of coffee concentration Good attitude towards work willingness to face challenges You love your work and your work will love you

support Good colleagues support, relationship, peers Working environment Enough, manageable workload

with clients/students Consultation with experts

books, online access Technology computers, telephone, cellphones Right tools, facilities

compensation, incentives Motivation recognition, appreciation Inspiration significant others

Intangible Assets vs. Tangible Assets

Human Capital Structural Capital Stakeholder Capital Tangible Assets Motivation

Intellectual Capital / Knowledge Assets

(market value largely hidden from view)

3 Categories of Intellectual Capital

Of an Organization

Human Capital

Skills Attitudes Health

Structural / Process Capital (= Internal Capital)

Stakeholder / Customer Capital (= External Capital)

Supportive relationships (e.g., partners, governments) Information/knowledge networks outside (e.g., Internet)

Support systems, processes, practices (e.g., intranet) Manuals, work templates, directories, databases, library and other codified knowledge Leadership/management style, policies, guidelines Teamwork, working relationships

Knowledge Assets /1

Human capital the knowledge that leaves company premises at 6 oclock in the evening; embodied in people Structural capital the knowledge that is left behind in company premises at 6 oclock in the evening; embedded in processes Stakeholder capital knowledge inherent in external business relationships; goodwill; brand; earned with partners/patrons

Knowledge Assets /2

Knowledge is not only the repository of corporate value, it is also essential in the process of creating value The corporation owns only two components of market value: financial capital and only the explicit forms of structural capital The corporation only rents human capital, and slowly earns stakeholder capital Tacit forms of process capital inhere with the group of employees; they are lost when the employees leave or are regrouped

KM: How to do your job well

Knowledge Management: sourcing and deploying knowledge assets (= intellectual capital) for better work performance
Human Capital

Structural Capital

Stakeholder Capital

Better Work Performance

Tangible Assets

Other Factors

Knowledge Management Defined

Getting the right knowledge to the right people at the right time Helping people share and put information into action in ways that strive to improve organizational performance -- Carla ODell & C. Jackson Grayson, Jr. (If
Only We Knew What We Know)

Sourcing and deploying knowledge in a manner that creates most value for an organization, individual or society
-- Dr. Serafin D. Talisayon

Definition of Knowledge /1

Justified belief that increases an entitys capacity for effective action. Ikujiro Nonaka I define knowledge as a capacity to act. Karl-Erik Svelby (The New Organizational Wealth) Knowledge is information that changes something or somebody either by becoming grounds for action or by making an individual (or an institution) capable of different or more effective action. Peter Drucker (New Realities)

Definition of Knowledge /2

In summary, knowledge is capacity for effective action, producing results or creating value

Information is know what, what is or what is interesting. Knowledge is know how, what works or what is useful.
Knowledge = capacity for effective action

Information

Information useful for effective action

From Data to Wisdom

Data: qualitative or quantitative record of observation Information: data + interest of a user Knowledge: information + utility to a user for effective action

Technology: explicit knowledge, usually patented Expertise: tacit knowledge, personal

Wisdom: information or knowledge + ethical framework or wholistic perspective

IM vs. KM

Information management (IM) deals with information objects, and with people-to-information interface KM deals with both people-toinformation and people-to-people interfaces. KM attends to both explicit and tacit knowledge, while information management can handle only explicit knowledge.

Information Management
Results Problem-Solving/ Decision-Making

Problem/ Dilemma/ Issue

Manager/ Administrator/ Personnel

. Plan . Organize . Direct . Control

Feedback

Business Process Cycle

Raw Data Data Processor

Information
. Relevant . Current . Accurate . Complete . Economical

Information System Storage Information Technology

KM, IM, HRM

Definition of Capital

Capital is anything that yields regular income Robert Kiyosaki in Rich Dad, Poor Dad
Capital
Regular Income

Financial Capital (e.g., stocks) Natural capital (e.g., mango tree) Social capital (e.g., ninong/ninang) Intellectual capital (e.g., expertise)

Dividend or interest Natural income (e.g., mangoes) Gifts every Christmas Salary or professional fees

Private Sector: Intangible Assets > Tangible Assets

Increasingly, intangible knowledge assets are dwarfing the value of tangible book assets of many organizations.
S.L. Mintz, CFO Magazine, February 1, 2000, http://www.cfo.com/article/1.5309.1086.00.html

Corporations Market Value Consist Mostly of Knowledge

The accounting system does not capture anything really. Judy Lewent, Chief Financial Officer, Merck

Some Examples of Knowledge

Human Capital
Expert or skilled technical/professional employees Morale and loyalty of personnel Business process owners Experienced and high performance executives

Structural Capital (Process Capital or Internal Capital)

Work processes Patents, copyrights, trademarks Documents, manuals, work templates, formulas Databases Documented best practices Institutionalized systems/procedures

Stakeholder Capital (Customer Capital or External Capital)

Brand, reputation, customer loyalty Distribution channels, customer networks Strategic partnerships/alliances, franchisees/franchisor Connections with key government officials/agencies Pool of consultants

Short Workshop #2

What knowledge assets in your institution are critical (when lost, they affect the institution)?

Freedom Wall #2
Human Capital
Experts

Structural Capital
ICT

Stakeholder Capital
Students Alumni

in their field faculty (competency, skills) Staff and personnel (loyal, efficient) Management/Leadership skills

infrastructure (software, hardware, network, databases) Manual of operations Documented best practices Good curriculum Good student services (not all) Vision-mission-objectives Administration support (not all) Skills upgrading scheme

support Community support (parents/benefactors/sponsors) Affiliations/Linkages Marketability of courses offered

Short Workshop #3

Among the critical knowledge assets (CKAs) identified in Short Workshop #2, what can be supported by IT?

Insights on Short Workshops #2 & 3

Not all critical knowledge assets (CKAs) of an organization can be supported by IT The non-IT CKAs form part of the culture to be established to create greater value on products or services A KM system is a fusion of IT (codification) and non-IT interventions (personalization)

Learning is Reflection-in-Action
Information useful for more effective and efficient action (KNOWLEDGE)

Value Creation

Learning

Any group activity, project or program, or any personal action or activity

Lessons Learned Meeting (LLM) Reflect Review Evaluate

Trigger Questions

What worked well? What didnt work? Why? What went well? What went wrong? Why? What are the success and failure factors? How different would you do it the next time around?

Worked well Best or Good Practices Didnt work/went well Next Practices

Knowledge Management and Organizational Goals

Question #1
QUESTION 1: Select 1 very valuable result a school is seeking. Valuable RESULTS Value Creation Effective ACTION

Useful KNOW-HOW

ADDU: The Object of Study

Vision Mission Statement Goals

Key Words of the ADDU VisionMission Statement

The Ateneo de Davao University is a Filipino, Catholic, Jesuit University. Filipino Catholic Jesuit University

Key Thrusts of the Mission Statement

University Catholic Jesuit Academic Excellence (Magis) Spiritual Growth Faith-Based Social Involvement Cultural Rootedness (Fortes in Fide) (Faith and Justice) (Filipino Nationalism)

Filipino

One Common Task

Formation of Persons-For-Others (PFOs)

Characteristics of the PFO

Integral Formation (Wholistic) Solid Foundation (Strength of Character) Christ-Centered (Fortes in Fide) Core Values (4 Cs, 5 Ss) Cura Personalis (Personal Care) Magis (the More) Dialogical (Experience-Reflection-Action Praxis)

The University Effort Towards Forming PFOs

Academic Excellence Academic Programs Administration and Staff

Spiritual Growth Formation of PFOs Faith-Based Social Involvement

Campus Ministry

Social Involvement Coordinating Office Support Service Offices (AO, OSA, GO) Extension Offices

Cultural Rootedness

Generic Production System Model

E N V I R O N M E N T Feedback Loop E N V I R O N M E N T

INPUT

THRUPUT Quality Control Mechanism

OUTPUT

The Generic Production System Model INPUT: raw materials appropriated from the environment and introduced into the system [Student Recruitment] THRUPUT: The process consists of the complex set of operations or stages, procedures or activities which transform the input [Level and Subjects handled by teachers] [The Curriculum and Instruction] [Co- and ExtraCurricular Programs] OUTPUT: FEEDBACK: The Finished Product with new value added which is then issued to the environment [The Ideal Graduate] From the graduates themselves (alumni), their employers, the industry in general serve as new input for improvement.
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Rewind: Question #1
QUESTION 1: Select 1 very valuable result a school is seeking. Valuable RESULTS ** PRODUCING THE IDEAL GRADUATE ** Value Creation Effective ACTION

Useful KNOW-HOW

Question #2
Valuable RESULTS Value Creation Effective ACTION QUESTION 2: What very important business process is intended to produce valuable results?

Useful KNOW-HOW

Business Process

A connected set of activities (or work flow) to produce a product or service valued by consumer/clients The end product or service is used, availed of or consumed by external clients, consumers or stakeholders. The output is of value to consumers. Administrative and other support activities for internal clients are called support business processes. The process or work flow may or may not be formally recognized, given a name, or documented fully. The work flow may cut across organizational units.

Main Processes in the Academe /1

Administration

Leadership/Management (Board of Trustees, President, Deans, Chairs, Coordinators, Directors) Recruitment/Admission (Admissions Office) Student Records (Registrars Office) Library and Audio-Visual Resources (Library) Financial Sustainability (Finance Office) Physical Resources (Physical Plant Office) Human Resources (Personnel Office) Information Systems (MIS Office)

Main Processes in the Academe /2

Instruction

Academic Programs
Classroom and Laboratory Instruction Faculty and Staff Development Curriculum Development Materials Development (Coursepacks) Facilities Development (Lec, Lab)

Co-Curricular Programs
Student Interest Groups/Clubs Structured Support Programs (FYCF, CWTS)

Extra-Curricular Programs

Campus Clubs (Student Govt, Religious, Socio-Civic, Publications, and the like)

Main Processes in the Academe /3

Research

Project and Theses Direction Faculty-Student Special Interest Groups Research and Publications (Divisionbased, University-wide) Industry Linkages/Partnerships Faculty Consultancy Services Community Involvement Programs

Extension

Rewind: Question #2
Valuable RESULTS Value Creation Effective ACTION QUESTION 2: What very important business process is intended to produce valuable results? ** CLASSROOM AND LABORATORY INSTRUCTION **

Useful KNOW-HOW

Value Proposition
Valuable RESULTS Value Proposition: If we do action X well, we achieve valuable result Y Value Creation Effective ACTION

Useful KNOW-HOW

Classroom and Laboratory Instruction Processes

Lesson Preparation Classroom management (prayer, attendance, assignments, etc.) Deliver the prepared lessons (lec, lab) Conduct assessment (quizzes, exams, return demo, boardwork, recitation,etc.) Review of lesson taken (recap) Consultations Class Observation and Evaluation

Question #3
Valuable RESULTS Value Creation Effective ACTION

Useful KNOW-HOW

QUESTION 3: What are the very important knowledge inputs and supports to the business process?

KM Proposition
Valuable RESULTS KM Proposition: If we manage well knowledge assets k1, k2, then we perform the business process well.

Effective ACTION Knowledge Management Useful KNOW-HOW

Important Knowledge Assets

Classroom management skills Syllabi and lesson preparation skills The art of questioning and handling questions Test construction skills Public speaking skills

Gist of High Octane KM

Managing the CKAs from Question #3 = minimum KM which would yield very big benefit to the institution This would be the KM that would give the institution big mileage per unit of effort A High-Octane KM for the institution

Knowledge for Value Creation

High Octane KM Revisited

Valuable RESULTS WHY or WHAT FOR does our institution exist?

Effective ACTION

WHAT is the right thing to do?

Useful KNOW-HOW

HOW do we do it well?

Higher Octane KM
Valuable RESULTS Have we missed something even MORE valuable? Who says so? The customers! What is a BETTER thing for us to do?

Effective ACTION

Useful KNOW-HOW

HOW shall we do it BETTER?

Knowledge Cycle
Potential benefit/ value is created Learn Innovate Source out Document Buy Internal & External Sensing Benefit/value is created at the point of use Use/Reuse Apply Deploy

Test Validate Measure Adapt

Encode Classify Organize Store/retrieve

Share Transfer Distribute Synergize Combine

Knowledge Use and Knowledge Creation

Marketing and innovation produce results. All the rest are costs. Peter Drucker

Customer Feedback Innovation

Process/Product Innovation Solve an unmet need/problem of customers Satisfy customers Create value Generate revenue Create opportunity More/new customer

Identify an unmet need/problem of customers

External Sensing: Survey or questionnaire Interview or FGD Customer complaints Market foresight Technology foresight

Problems and Complaints

Do not be afraid of problems and complaints from clients. Why? Behind every problem is an opportunity.

Problem Innovation
PROBLEM

INNOVATION

Expense in hiring grass cutters Long waiting between ordering and receiving food in a restaurant Bad weather or winter prevents jogging outdoors Checking the time early in the morning without waking too much you cant go back to sleep Children playing and opening medicine bottles Comb works only in one direction Paper fasteners or clips too bulky or ruins paper Swiss watches losing to Japanese digital watches Firms do not precisely need hardware and software pushed by IT vendors Tracking politics, alliances and cross-talk: among top executives in an organization

Raise goats Fastfood method Indoor exercises Talking clock (says the time when you press a big button on top) Child-proof bottle caps Cylindrical hair brush Paper clip Swatch; sell fashion and style, not watches Sell tailor-made business solutions to specific business needs Sociogram

KM and Organizational Performance

Knowledge Management Strategies and Tools

Quickie Poll #1

What percent of the knowledge in our brains are documented or written in books, manuals, journals, articles, and the like?

Tacit Knowledge vs. Explicit Knowledge /1

We have more tacit knowledge (in our brains) than explicit knowledge (documented) 75% tacit vs. 25% explicit

Tacit Knowledge vs. Explicit Knowledge /2

Tacit knowledge is: Unrecognized or Unexpressed or Undocumented Explicit knowledge is: Documented or Encoded or Recorded

Examples: Examples: Expertise, past experience Technologies, e.g. laptop of what works Manuals and directories Indigenous knowledge Intranet and website Social networks Course materials

Other Examples of Knowledge

Documented best practices Course programs, elearning systems Process tools Formulas: pharmacy, cooking recipes, menus, etc. Portals, databases Directories of customers, suppliers, business allies

Undocumented but efficient work processes (it works well!) Workable prototypes before blueprint or patent papers Workarounds Tricks of the trade Networks: professional, customer, industry Business alliances and strategic partnerships

Work Templates: Useful (Explicit) Knowledge Objects

Formats of reports and communications that are regularly sent or used Process descriptions and workflows, guidelines for certain activities Set of standard documents for a particular requirement, such as those needed in starting up an enterprise, e.g., for registration with SEC, BIR, and Davao City government, certifications on bank deposits, etc. Excel files for regular recording, summarization and reporting of financial, statistical and other data Sample project studies and project proposals that were successful or were approved, and which can be used as template fof the next similar studies or proposals Questionnaires/surveys that are regularly issued or can be re-used

Transferring Tacit Knowledge

Documentation or Manual Write-up by expert, Questionnaire, AV Recording
Easy to write/ Verbalize Difficult to write or verbalize

Practice Tacit knowledge of a learner

Storytelling, Demonstration

Learning of learners Apprenticeship, Mentoring, Coaching Tacit knowledge of a learner

Tacit knowledge of an expert

Quickie Poll #2

What percent of your present skills/expertise came from your formal schooling?

Knowing-Doing Gap
After 4 years of studying the knowing-doing gap, Stanford professors Jeffrey Pfeffer and Robert Sutton concluded: one of the most important insights from our research is that knowledge that is actually implemented is much more likely to be acquired from learning by doing than from learning by reading, listening, or even thinking. (The Knowing-Doing Gap)

Modes of Knowledge Transfer

Immediacy Outside the Work Setting
Academic degree programs, Professional journals Case studies, Industry benchmarks and best practices, Storytelling Management games, Computerized simulations, Role playing

Within the Work Setting

Corporate universities, In-house training programs Work templates and manuals, After-action reviews, Lessons-learned meetings Mentoring/coaching, Learning while doing, On-the-job training, Demonstration by expert

Remote from Use

Proximate (before or after use)

Immediate (during use)

The KM Audit Question

Valuable RESULTS The institution creates value For itself and its clients

Effective ACTION

Core and critical business processes

Useful KNOW-HOW

Critical knowledge assets How well do knowledge assets support core & critical business processes? (identification of top knowledge gaps through certain instruments)

KM for Operational Efficiency

of Existing Business Processes
Business Goals Documentation of Existing Processes
Workflow Diagrams Work Templates Directories/Databases Data Flow Diagrams

Existing Processes
Core Critical Support

IT Solutions
(mostly explicit)

KM Audit
Priority Knowledge Gaps KM Readiness Scale Critical knowledge assets

KM Solutions
IT Non-IT

Non-IT Solutions
(mostly tacit)

Demand-Driven KM Audit
Data Gathering
Per Business Process Demand Side Knowledge Assets Needed for Business Process (ideal wish list) Score by importance Score by availability and Quality of what is available Supply Side Knowledge Assets Needed for Business Process (ideal wish list)

Knowledge Gap Prioritize by gap score Characterize priority gaps

Demand-Driven KM Audit
Analysis
List of knowledge Assets needed (knowledge taxonomy)

Score by
Importance Availability Quality

Demand Side Supply Side

Rank knowledge gaps

Characterize knowledge supply to fill priority gaps Organizational gaps in knowledge, tangible assets and energy Optimum mix of costeffective KM solutions

Aligning KM to Organizational Purpose

Valuable RESULTS Value Creation Effective ACTION Operational KM Useful KNOW-HOW
How doe we do it well? (= Operational efficiency)

Aligning KM to Organizational Purpose

Valuable RESULTS Value Creation Effective ACTION
What is the right thing to do? (= Creating greater value)

Operational KM Useful KNOW-HOW

How doe we do it well? (= Operational efficiency)

KM for Creating Greater Value

Innovating/Improving Business Processes
Needs of Stakeholders
Stakeholder survey Survey of Internet surfers Survey of BOT preferences Survey of market intelligence needs of members

Documentation of Existing Processes

Workflow Diagrams Work Templates Directories/Databases Data Flow Diagrams

LO Diagnostics New or Improved Processes

More efficient staff operations (internal KM) Better services for stakeholders (external KM)

Organizational Learning
Lessons learned meetings Copying best practices Innovating next practices

KM Solutions
IT Non-IT

Codification vs. Personalization

in Service Organizations
IT Track: Codification Strategy
Knowledge

People Track: Personalization Strategy

Knowledge

in databases; focus on people-todocuments interface Appropriate for delivering recurring types of service with low tacit knowledge content Personnel are skilled in IT applications and reuse of knowledge

in people; focus on people-to-people interface Appropriate for clientspecific services with high expertise and tacit knowledge content Personnel are skilled in innovation, improvisation and people skills

Multiplying Benefits via Networks

Network a group of users of the same good/service wherein the benefit enjoyed by a user increases as the number of users increase Knowledge network multiplicative mutual benefit via ICT-enabled sharing and use/reuse of knowledge Examples:

Telephone network Fax machine users VHS users Internet users Guilds

Internet Library consortium e-group B2B trading community Professional organization

Two Modes of Driving Knowledge Transfer

Knowledge Push Publishing books, newspapers, leaflets, magazines Setting up a website or internet portal loaded with information Information gratuitously posted in an e-group or Internet discussion list Internet advertising Knowledge Pull Help Desk or E-mail Us; website or portal features that allow Internet surfers to ask information Call Center Query posted in an egroup or Internet discussion list Search engine

Choices in Sourcing Knowledge

Capture: (Hunting & Gathering) Manage Existing Knowledge
Buy

Culture: (Farming or Agriculture) Create New Knowledge

Traditional

knowledge from outside: software, consultants, books Documentation and transfer of tacit knowledge (e.g., best practices) Face-to-face transfer of knowledge, e.g., mentoring, peer visit, understudy Traditional training modes Library or Internet research
Transfer of best practice = Copying from the past

R&D, product development and innovation Team learning, e.g., lessons learned meeting Process innovation, innovating next practice, work improvisation, work around Organizational Learning

Innovating next practice = Contributing to the future

MENU OF KM TOOLS

End of Presentation
Q&A