Knowledge Management (KM)

KNOWLEDGE MANAGEMENT (KM)
Prof.R.Subashini, VIT Business School

What is Knowledge? DIKW Meaning of KM KM Evolution KM in Organizations Organization Value creation Knowledge Work/Knowledge Workers Types of Knowledge Forms of Knowledge TK & EK Drivers of KM SECI Model KMLC 3 Fundamental Steps Knowledge Sharing and its importance Human thinking & Learning Knowledge Myths Prof.R.Subashini, VIT Business School Cognition & KM

KM Road Map Overall view on: Organizational Creativity, Innovation, ICTs Overall view on: Organizational Culture & Change Importance of Tacit Knowledge (TK) Capturing Tacit Knowledge Methods of sharing TK Discussion on any 2 KM research papers Leadership and KM Knowledge Transfer Meaning, Methods, Inhibitors to KT Role of Internet in Knowledge Transfer/KT in E-World Seminar Fuzzy Reasoning Basics --Guest Lecture Reflections on the topic of KM
Management Fashion 1950s to 2000s - ???

1950S MBO 1960S T-GROUPS 1970s AUTOMATION 1980S TQM, BENCHMARKING 1990S CORE COMPETENCY/ KM AS ESTABLISHED DISCIPLINE(1991NONAKA) 2000S ??
Prof.R.Subashini, VIT Business School 5
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What is Knowledge?
Contextual information
Raw facts
Meaningful facts Judgement Sense of truth
KM - Knowledge Hierarchy DIKW
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Data is set of records. Data represents raw facts with no knowledge of relationship. Example: Record of customers.
Information is when we attach semantic (meaning) to the data. Information wraps understanding of relation in context of the subject. Provides answers to who, what, when, where questions. Example: Who are new customers? Knowledge is when we attach intelligence to the information. It infers "how" about the information. (application of information/actionable information) Example: How many leads were converted into new customers?
Wisdom: philosophical definition says that wisdom consists of making the best use of available knowledge. Wisdom embodies more of an understanding of fundamental principles. (Why) Example: Ways to retain customers to increase profitability
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Knowledge is contextual information. In philosophy, the theory of knowledge is called epistemology and deals with such questions as how much knowledge comes from experience or from innate reasoning ability.
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So, in summary the following associations can reasonably be made: Data means no meaningful relationship of facts (out of context: Know nothing). Information relates to description, definition (Know who, Know what). Knowledge comprises strategy, practices (Know how). Wisdom embodies principle, insight, moral (Know why).
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It is raining. If the humidity is very high and the temperature drops substantially the atmospheres is often unlikely to be able to hold the moisture so it rains. The temperature dropped 15 degrees and then it started raining. An understanding of all the interactions that happen between evaporation, air currents, temperature gradients, changes, and raining.
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KM-DIKW
Data: It is raining.
Information: The temperature dropped 15 degrees and then it started raining.

Knowledge: If the humidity is very high and the temperature drops substantially the atmospheres is often unlikely to be able to hold the moisture so it rains. Wisdom: It rains because it rains. And this encompasses an understanding of all the interactions that happen between raining, evaporation, air currents, temperature gradients, changes, and raining.
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In computer parlance how would you differentiate Data, Information, Knowledge, Wisdom? A spreadsheet
A relational database
Modeling, Simulation
???
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Data... data is raw facts. It simply exists and has no significance beyond its existence (in and of itself).It does not have meaning of itself. For example: In computer parlance, a spreadsheet generally starts out by holding data. _________________________________________________ Information... information is data that has been given meaning by way of relational connection. For example: A relational database makes information from the data stored within it.
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Knowledge... knowledge is the appropriate collection of information, such that it's intent is to be useful.(actionable information) For example: Most of the applications we use (modeling, simulation, etc.) exercise some type of stored knowledge. _________________________________________________ Wisdom... Wisdom is the process by which we judge, between right and wrong, good and bad. For example: Computers do not have, and will never have the ability to posses wisdom. Wisdom is a uniquely human state.

EVOLUTION OF KM: (1991-A separate discipline) The First Age (1995) Document based (DW,DM,SE)
The Second Age The Humanisation of KM (Interactions,COPs,SNA)

The Third Age The Organic Age of KM ,System based (Socio-technicalPPT)
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Meaning of KM: Knowledge Management (KM) comprises a range of practices used in an organization to identify, create, distribute and enable adoption of insights (power of acute observation/introspection) and experiences (know-how or procedural knowledge: on-the-job training rather than book-learning). Knowledge Management efforts typically focus on organizational objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous improvement of the organization.
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VIDEO CLIP INDIA!!
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INDIAs ECONOMIC GROWTH

Foreign Exchange IT BPO Telecom Automotive Pharma /Healthcare Food Products Infrastructure Satellite Technology Education Global Brands in India Entertainment/Sports Consumer Durables Banking & Finance Retail Electronic ballot Media ???
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Foods and Beverages Gained popularity in the past 3-4 years, mainly due to the changing lifestyle and eating habits of the people. Make it a 330 billion dollar industry by 2013. IT Industry The expert analysis predicts this 65 billion dollar industry to increase by 11 percent by the year 2013. (72) Software as well as hardware segments are making great contributions towards the growth rate of IT industry as a b2b business. Health Industry Due to a huge difference in the healthcare costs in India and the western countries, the health industry of the country is experiencing a growth in terms of business. Its predicted that the industry may touch 150 billion dollar by the year 2017. Telecom Industry The growth of telecommunication business sector in India can be easily termed as a revolution. The mobile subscribers in the country are expected to grow by 11 percent from 2010 to 2014. Prof.R.Subashini, VIT Business School 22
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The basic economic resource..is no longer capital, nor natural resources.., nor labourIT IS AND WILL BE KNOWLEDGE (Drucker, 1993)
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With KM in food Industry, Skilled experts knowledge and experiences and Know-how to balance INGREDIENTS can be made effectively. With KM in Software Industry, the knowledge centre contains information about the quality management system, information related to different projects, related best practices and lessons learned, technology related white papers and tutorials. Effective knowledge management in Pharma sector, paves way to use more collective and systematic processes and thereby reduce the tendency to repeat the same mistakes. Effective knowledge management, therefore, can dramatically improve the R&D wing and quality of products and/or services Through KM processes, telecom companies can capture the customer data and get into the lives of customers and hence provide services suitable to them. A survey by Reuters found that 90 % of companies that deploy a Knowledge Management (KM) solution benefit from better decision-making, while 81 % say they notice increased productivity.
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ACCENTURE In this company, 'knowledge management' appears to be equated with the management of 'intellectual capital' and this, in turn, means, for example: encouraging information exchange among staff, for example, through formal and informal networking following training; building intranets to provide access to information resources; creating 'yellow pages' or indexes to expertise; A discussion forum / newsgroups for exchange of ideas and solutions A helpdesk for facilitating process consulting to projects A marketing centre which holds FAQs by customers (the same is used by employees in sales and marketing). Prof.R.Subashini, VIT Business School 26
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RANBAXY
Great emphasis is placed on Knowledge Management -Medico-marketing initiatives such as Advisory Board Meetings, Continuous Medical Education programs. Excellent database of medical fraternity. Telemedicine is the use of telecommunication and information technologies in order to provide clinical health care at a distance.
RELIANCE Reliance Knowledge Management System (KMS) was built to be the common intranet system for Reliance Industries Ltd., allowing users to share news, photos, videos and more. Employees now have a common interface for all applications and a single point where they can now see all their company news, participate in forums and save a lot of productive time for the company. KMS has all the features of an advanced document management system (1,00,000 documents), video and picture gallery, news section, surveys, forums
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How an Organization creates Value?
Org. Inputs 4Ms
Conversion Process Machinery Human Skills

(Effective use of ICTs + Human skills) Org. Environment Stakeholders
Output F.G / Services
Example:
1994 Jeffrey Bezos Computer science graduate who worked for Wall street investment bank saw an entrepreneurial opportunity Virtual Book Selling Market Online - ?? Values: Recruit who can provide high-quality, user friendly service
VIT Universitys Value Creation : ???
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1) DEPICT THE TRANSFORMATION PROCESS OF ANY PROFIT OR NON-PROFIT ORGANIZATION.
2)HOW DO YOU THINK MCDONALDS CREATED VALUE? (FAST-FOOD INDUSTRY)
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Example: How McDonalds created Value?
McDonalds Input R.M(Sandwich Buns, Potatoes, Milk Shake-Mix.) Men/Human Resources ( Cooks, Clean-up crew, Order takers, Managers) Money(Shareholders Investment) Machinery (grills, toasters, Milk-shake Machines) Information (Training, knowledge on fast-food Industry) McDs Conversion Process Machinery (fry-o-lators, grills) Human Skills (Personnel trained in Sandwich preparation, ordering, Frying) McDs Output Fast food
Satisfied Shareholders McDs Environment Potential Customers Suppliers of meat, Potatoes Government Health regulations Competitors (Burger King ,Kentucky Fried Chicken)
Satisfied Customers
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Case-Let:
A small engineering firm believes there are problems with its hiring process. Several of the junior engineers that have been hired remained at the firm for less than one year. This is a considerable cost to the firm, since recruiting and training new engineers is time consuming and expensive. The human resources manager decides to put together a group of people with extensive experience hiring new engineers. One of their first tasks is to produce an input-output model of the hiring process. So, generate an Input Process Output model for them now...
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Used correctly, the IPO Model offers an efficient way to both analyze and document the critical aspects of a transformation process.
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KNOWLEDGE WORK/KNOWLEDGE WORKER:
A knowledge is related to the tasks of planning, acquiring, searching, analyzing, organizing, storing, programming, distributing, marketing, contributing to the transformation of information or develop and use knowledge. The term Knowledge worker was first used by Peter Drucker (1959) in his book Landmarks of Tomorrow -the knowledge worker includes those in the information technology fields, such as programmers, systems analysts, technical writers, academic professionals, researchers. The term is also frequently used to include people outside of information technology, such as doctors, lawyers, scientists of all kinds, and also students of all kinds.
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These knowledge worker are not asked to perform: transaction processing routine tasks Knowledge workers bring benefits to organizations in a variety of important ways: analyzing data to establish relationships ability to brainstorm, thinking broadly (divergent thinking) ability to drill down, creating more focus (convergent thinking) producing a new capability/Product providing technical or customer support/handling unique customer issues identifying and understanding trends / Experimentation/Learning from past
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EXPERIMENTATION&EXPERIMENTERS MONITORING IS AN ESSENTIAL PART LEARNING FROM THE PAST Engg. has to be viewed as an experimental process Example : 1912 Titanic greatest engg. achievement Size Largest ship with length of 2.5 football fields
Look Most glamorous ocean liner Facility Tropical vine garden restaurant + Safety could float even if four of its 16 water tight compartments were flooded Titanic capacity 3547 (passengers and crew) Total people on board during its first trip 2227 Dead were 1522 (68%) Failure is due to - ???
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FAILURE BECAUSE: Capacity of life boats on the ship - ?? It was considered to be the most safe ship that can never sink This made captain over-confident due to which he ordered the ship to sail at full speed at night in an area that had icebergs appearing frequently The ship hit iceberg and there was enough time for everyone to escape but greatest tragedy was enough life boats were not available on the ship to accommodate the entire passengers and crew. (825 Life boats were only available) Hence its clear that design process is an ITERATIVE process (trial & error)
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CAPABILITY OF HUMAN BRAIN: ??
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M?
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MM, IT?
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A?
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ID&T?
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DN?
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MINIATURIZATION : ___Y MICROMOTORS, IMAGING TECHNOLOGIES: ____N ANIMATIONS,STORY TELLING: _________Y INNOVATIVE DESIGN & TECHNOLOGY: ____E DISTRIBUTION NETWORK: _ _ _ _ _ _T
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MINIATURIZATION : SONY MICROMOTORS, IMAGING TECHNOLOGIES: CANON ANIMATIONS,STORY TELLING: WALTDISNEY INNOVATIVE DESIGN & TECHNOLOGY: APPLE CUSTOMER INTIMACY, DISTRIBUTION NETWORK: WALMART
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THE LIFE CYCLE OF MERECEDES BENZ
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FORMS/CATEGORIES OF KNOWLEDGE
Explicit Knowledge: Its the knowledge that be codified & transmitted in a systematic & formal language: books, reports, journals, documents, databases, webs.
Tacit Knowledge: Personal, Difficult to record & articulate, unwritten, Experiences and expertise gained over time, Insights and observations resulting from discussion and collaboration, Often most valuable
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Example: Explicit and Tacit ?? Physics student can write equation of a ball propelled in space and its trajectory Basket ball player know how to propel into the hoop
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EXPLICIT
TACIT
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EXPLICIT- WRITTEN DOWN Paper-based Multimedia
Intellectual Property Patents
Digitally-Indexed
TACIT- IN PEOPLES HEAD
Individuals
Groups
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KM TYPES OF KNOWLEDGE
CATEGORIES OF KNOWLEDGE BY PHILOSOPHERS:
Tacit and explicit knowledge interact in these types: Personal Knowledge Knowledge by acquaintance (being familiar with something) Ex.: Various models of car Procedural Knowledge Knowledge how to do something Ex.: People who claim to know how to drive, are not simply claiming that they understand the theory involved in those activities. Rather, they are claiming that they actually possess the skills involved. Propositional Knowledge Knowledge of facts in detail Ex.: If you know how to drive a car (in the procedural knowledge sense) then you presumably know certain facts about driving i.e. which way the car will go if you turn the steering wheel to the left.(in depth)
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DISCOVER WHAT YOU KNOW?
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Observation from the Video: Data, Information everywhere Knowledge is experience KM revolves around People Capture Share: Brainstorm, Collaborate, Build communities Analyze, Develop, Share, Learn from Experience.
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THE 3 FUNDAMENTAL STEPS/ KLC:
Knowledge Capture/Creation & Knowledge Organizing Data capture tools / SECI Corporate yellow pages, groupware systems, video-conferencing (to support formal and even informal forms of communication) can be used. Knowledge Sharing Collaborative problem solving, Conversations, teamwork, Networks, Intranets, Community of practice(COPs). Knowledge Utilization Learning is integrated into the organization
KM KNOWLEDGE CREATION
Nonaka and Takeuchi introduced the four modes of Knowledge conversion - SECI Model(1995) which has become the cornerstone of Knowledge Creation and transfer theory. They proposed four ways that knowledge types can be combined and converted, showing how knowledge is shared and created in the organization. SECI stands for SOCIALIZATION EXTERNALIZATION COMBINATION INTERNALIZATION
KM - SECI
KM KNOWLEDGE CREATION
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SECI - EXAMPLE
Dialogue & Collective Reflection (E) -> SOCIALIZATION Networking at forums Professional discussions at lunchtimes EXTERNALIZATION/ARTICULA TION Presentations at staff meetings, forums, conferences / professional development centres Connection with groups/networks Networking & Linking Explicit knowledge Creating Time & space for Exchange ->
INTERNALIZATION Involvement of guest speakers, clients Forums to disseminate project findings
COMBINATION Project newsletters, Formal reports Visual display of activities, Charts Online forums, website information
Learning by Doing & Experimentation (I) <-
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Socialization: CONVERSION :From tacit knowledge to tacit knowledge
The direct conveyance of tacit knowledge through shared experiences (Empathized
Socialization is used in sharing learners experience and knowhow with other learners.
TK-TK
Externalization: From tacit knowledge to explicit knowledge
knowledge)
The process of articulating tacit knowledge into explicit concepts (to write instruction manuals, Use metaphors and models, creating/ justifying concepts Conceptual Articulate conceptual tacit knowledge explicitly
TK-EK
knowledge)
Combination: From explicit knowledge to explicit knowledge The process of systematizing concepts into a knowledge system (sorting and combining knowledge elements Systemic Existing learning information in the databases might be integrated to create new knowledge.
EK-EK
Internalization: From explicit knowledge to tacit knowledge
knowledge)
Converting explicit knowledge into tacit by individuals; Personal experience (Learning by doing Operational knowledge) Explicit knowledge created is shared through an online learning community
EK-TK
KM METAPHOR
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KM - METAPHOR
Metaphorical thinking: Using comparisons to express ideas and solve problems. "Time is money." How often have heard that statement? Probably many times and in various contexts. By thinking about time as money, you can create some powerful images. Time wasted is money down the drain. Time well spent is an investment. The seconds are ticking away. A direct comparison between two unrelated or indirectly linked things is called a metaphor.
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EXERCISE
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Answer the following Individually: PRO or CON
Modern Technology destroyed the soul of humanity Bring on the Egalitarian Workplace (Networked organizationsin which all employees share responsibilities and work as a group of equals have a better chance of success than those with traditional hierarchies. Matrix is the ladder to success (Multi-dimensional organizational design (Matrix) is the best way to restructure a business) Forget the Office: Let Employees Work from Home (Businesses are more efficient and employees are more productive when they work remotely instead of at one central office) Entrepreneurship Outperforms Innovation (Innovative ideas can make a splash, but entrepreneurs are more likely to create value, change the world, and make profits) English Means Business (Should English continue to be the international language for doing business)
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For:
Technology destroys family ties People nowadays prefer to be sitting in front of their televisions and computers instead of eating with their families during meal time.
Modern Technology destroyed the soul of humanity
Technology makes people lazy

Most people are getting lazy due to the fact that their work is just a push of a button. Other than being lazy alone, this can also make people obese that will lead them to more serious problems. Technology negatively affects employment rate
Manual works are now being replaced by machines in factories that are why many are left unemployed.
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Against: Technology strengthens family bonding We should remember that there are some children who are away from their families; it could be because of schooling or their parents working abroad. It is only with the use of our modern technology that they would be able to communicate. Technology makes faster Production We are now in 21st century, and the demand of mass production, it is only with our modern technology that it would be made possible. Technology makes work easier We are not anymore in the era where Egyptians would still pull stones to make their pyramids. It is with the modern technology that the burdens of employees nowadays are lessened. It will never mean that we are getting lazy for it does not change the fact that you are still working. Technology helps employment rate increase Technology aids the construction of the companies all over the world, and the fast growing sought companies of today are the call centers especially in the Philippines.
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Answer the following as a TEAM: PRO or CON
Modern Technology destroyed the soul of humanity Bring on the Egalitarian Workplace (Networked organizationsin which all employees share responsibilities and work as a group of equals have a better chance of success than those with traditional hierarchies) Matrix is the ladder to success (Multi-dimensional organizational design (Matrix) is the best way to restructure a business) Forget the Office: Let Employees Work from Home (Businesses are more efficient and employees are more productive when they work remotely instead of at one central office) Entrepreneurship Outperforms Innovation (Innovative ideas can make a splash, but entrepreneurs are more likely to create value, change the world, and make profits) English Means Business (Should English continue to be the international language for doing business)
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KM-KNOWLEDGE SHARING
Knowledge Management is not just putting in place a technology solution. It's also about having the right skills at the right time to facilitate the right kind of knowledge sharing, eg. during a project meeting while planning or reviewing new work cycles bringing new members of the team up to speed/accelerating their learning curves figuring out what is that special something that extremely experienced members of staff know and how it can be transferred identifying important lessons learned in a major project creating a sharing culture
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KM - KNOWLEDGE SHARING
Key points/Tips for successful knowledge sharing: Share failures as well as successes. Ask questions about others work. Be prepared to provide documentation. Take lots of notes. Learn more than you teach. Be patient and listen well. Talk to people about talking to people. Expect the best from people. Smile.
KM - KNOWLEDGE SHARING
Give honest and sincere appreciation. Make the other person feel important - and do it sincerely. The only way to get the best of an argument is to avoid it. Show respect for the other person's opinions. If you are wrong, admit it quickly Begin in a friendly way. Be sympathetic /empathetic with the other person's ideas and desires. Dramatize your ideas. Throw down a challenge. Give importance to experience sharing and social networking
KM KNOWLEDGE UTILIZATION
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KM:KNOWLEDGE UTILIZATION LEARNING

Learning is acquiring new or modifying existing knowledge, behaviors, skills/ understanding information TYPES OF LEARNING: Formal learning Non-formal learning Tangential learning Dialogic learning Meaningful learning Rote learning Episodic learning Observational learning Enculturation
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Formal learning is learning that takes place within a teacher-student relationship, such as in a school system. Non-formal learning is organized learning outside the formal learning system. For example: learning by coming together with people with similar interests and exchanging viewpoints, in clubs or in (international) youth organizations, workshops. Tangential learning is the process by which people will self-educate if a topic is exposed to them in a context that they already enjoy. For example, after playing a music-based video game, some people may be motivated to learn how to play a real instrument.
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Dialogic learning is a type of learning based on dialogue. Meaningful learning refers to the concept that the learned knowledge (lets say a fact) is fully understood by the individual and that the individual knows how that specific fact relates to other stored facts (stored in your brain that is) Rote learning is a technique which avoids understanding the inner complexities and inferences of the subject that is being learned and instead focuses on memorizing the material so that it can be recalled by the learner exactly the way it was read or heard. The major practice involved in rote learning techniques is learning by repetition
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Episodic learning is a change in behavior that occurs as a result of an event. For example, fear of Snakes that follows being bitten by a snake is episodic learning. Episodic learning is so named because events are recorded into episodic memory
Observational learning: The learning process most characteristic of humans is imitation; one's personal repetition of an observed behavior, such as a dance.
Enculturation is the process by which a person learns the requirements of their native culture by which he or she is surrounded, and acquires values and behaviors that are appropriate or necessary in that culture
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Benjamin Bloom has suggested three domains of learning:
Cognitive To recall, calculate, discuss, analyze, problem solve, etc. (know)

Psychomotor To dance, swim, ski, dive, drive a car, ride a bike, etc. (skill) Affective To like something or someone, love, appreciate, fear, hate, worship, etc. (win-lose situation, strategic move))
Ex: Learning to play chess
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CHESS GAME
For example, in learning to play chess,
the person will have to learn the rules of the game (cognitive domain); but he also has to learn how to set up the chess pieces on the chessboard and also how to properly hold and move a chess piece (psychomotor). Furthermore, later in the game the person may even learn to love the game itself, value its applications in life, and appreciate its history (affective domain).
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MANAGEMENT DOMAINS OF LEARNING:

ACCRETION
Learning as a continuous process Function of environment
TRANSMISSION
Traditional view of learning Instructor-in-control

Learner choose to learn Personal interest (Need based)
ACQUISITION EMERGENCE
Learner reflection and reasoning Life experiences/Tacit knowledge (Innovation)
MANAGEMENT
KM The way knowledge is utilized??? THE MAKING OF TP
VIDOE CLIP
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KM Knowledge Life Cycle
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KNOWLEDGE MANAGEMENT (KM)

Prof.R.Subashini, VIT Business School