Knowledge

Management &
Practices
Knowledge Management is the explicit
and systematic management of vital
knowledge - and its associated
processes of creation, organization,
diffusion, use and exploitation - in
pursuit of business objectives.
DEFINITION
 Knowledge Management (KM) comprises
 A range of practices used in an organisation to identify,
create, represent, distribute and enable adoption of
insights and experiences.
 Such insights and experiences comprise knowledge,
either embodied in individuals or embedded in
organisational processes or practice.
 Many large companies and non-profit organisations have
resources dedicated to internal KM efforts.
 Often as a part of their 'Business Strategy', 'Information
Technology', or 'Human Resource Management'
departments.
 Several consulting companies also exist that provide
strategy and advice regarding KM to these organisations.
 Why Manage Knowledge?
The level of interest has grown dramatically during recent years because
of :-

 Globalization and competition - many organizations rely on knowledge to

create their strategic advantage. With available knowledge widely
dispersed and fragmented, organizations often waste valuable time and
resources in 'reinventing the wheel' or failing to access the highest
quality knowledge and expertise that is available.

 Knowledge can command a premium price in the market - Applied know-

how can enhance the value (and hence the price) of products and
services. Examples are the 'smart drill' that learns how to extract more
oil from an oil field, and the hotel chain that knows your personal
preferences and so can give you a more personalized service.

 Successful Innovation - Companies applying knowledge management

methods have found that through knowledge networking they can create
new products and services faster and better.
 AREA OF WORK
 KM efforts typically focus on organisational objectives such as
improved performance, competitive advantage, innovation, the
sharing of lessons learned, and continuous improvement of the
organisation.
 KM efforts overlap with Organisational Learning, and may be
distinguished from that by a greater focus on the management of
knowledge as a strategic asset and a focus on encouraging the
sharing of knowledge.
 KM efforts can help individuals and groups:
 to share valuable organisational insights,
 to reduce redundant work,
 to avoid reinventing the wheel per se,
 to reduce training time for new employees,
 to retain intellectual capital as employees turnover in an
organisation,
 and to adapt to changing environments and markets
 Scope
Since knowledge is increasingly recognized as a crucial organisational
resource, that gives market leverage. Its management is therefore too
important to be left to chance. In such a scenario, technology comes to
our rescue:-

 With increased use of computers in the second half of the 20th

century, specific adaptations of technologies such as knowledge
bases, expert systems, knowledge repositories, group decision
support systems, intranets and computer supported cooperative work
have been introduced to further enhance such efforts.

 In 1999, the term personal knowledge management was introduced

which refers to the management of knowledge at the individual level

 More recently with the advent of the Web 2.0, the concept of
knowledge management has evolved towards a vision more based on
people participation and emergence. This line of evolution is termed
Enterprise 2.0. However, there is still a debate whether Enterprise 2.0
is just a fad, or if it brings something new, is the future of knowledge
management and is here to stay.
 Knowledge Management
Strategies
 One strategy to KM involves actively managing knowledge
(push strategy). In such an instance, individuals strive to
explicitly encode their knowledge into a shared knowledge
repository, such as a database, as well as retrieving knowledge
they need that other individuals have provided to the repository.
 Another strategy to KM involves individuals making knowledge
requests of experts associated with a particular subject on an
ad hoc basis (pull strategy). In such an instance, expert
individual(s) can provide their insights to the particular person or
people needing this .
 Other knowledge management strategies for companies
include:
 rewards (as a means of motivating for knowledge sharing)
 storytelling (as a means of transferring tacit knowledge)
 cross-project learning
Activities Involved:
Knowledge management programmes involves following activities:-
 Appointment of a knowledge leader - to promote the agenda,
develop a framework
 Creation of knowledge teams - people from all disciplines to
develop the methods and skills
 Development of knowledge bases - best practices, expertise
directories, market intelligence etc.
 Enterprise intranet portal - a 'one-stop-shop' that gives access to
explicit knowledge as well as connections to experts
 Knowledge centers - focal points for knowledge skills and
facilitating knowledge flow
 Knowledge sharing mechanisms - such as facilitated events that
encourage greater sharing of knowledge than would normally take
place
 Intellectual asset management - methods to identify and account
for intellectual capital.
 A Success Story
 Hoffman La Roche - through its Right First Time programme has reduced
the cost and time to achieve regulatory approvals for new drugs.

 Dow Chemical - by focusing on the active management of its patent

portfolio have generated over $125 million in revenues from licensing and
other ways of exploiting their intangible assets.

 Texas Instruments - by sharing best practice between its semiconductor

fabrication plants saved the equivalent of investing in a new plant.

 Skandia Assurance - by developing new measures of intellectual capital

and goaling their managers on increasing its value have grown revenues
much faster than their industry average.

 Hewlett-Packard - by sharing expertise already in the company, but not

known to their development teams, now bring new products to market
much faster than before.
PRACTICES
 Most programmes will leverage value through knowledge by
concentrating on just a few of these seven levers:
 Customer Knowledge - the most vital knowledge in most
organizations
 Knowledge in Processes - applying the best know-how while
performing core tasks
 Knowledge in Products (and Services) - smarter solutions,
customized to users' needs
 Knowledge in People - nurturing and harnessing brainpower,
your most precious asset
 Organizational Memory - drawing on lessons from the past or
elsewhere in the organization
 Knowledge in Relationships - deep personal knowledge that
underpins successful collaboration
 Knowledge Assets - measuring and managing your intellectual
capital.
REFERENCES

 http://www.skyrme.com/resource/kmbasics.htm
 en.wikipedia.org/wiki/Knowledge_manage
ment
 www.best-management-
practice.com/Knowledge-Centre
 http://www.skyrme.com/insights/22km.htm