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    Knowledge Management in IT EraDr. A. Patrick

    Assistant Professor.Department of Commerce,

    College of Commerce & Business ManagementOsmania University

    Hyderabad - 7

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    Goods & Services

    Knowledge

    Information

    Innovation in Products,Services and Processes

    Global CustomersChanging NeedsTime-to-marketSmart ProductsCustomizationServiceQualityIntangibles

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    Knowledge Management

    DefinitionsDo you really need KM?Do you need a CKO?Whats the strategy?Types of knowledge management systemsOrganizational changes to expectKM software tools

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    Two Kinds of Knowledge

    Knowledge is intangible, dynamic, anddifficult to measure, but without it noorganization can survive.

    Tacit: or unarticulated knowledge is morepersonal, experiential, context specific, andhard to formalize; is difficult to communicate

    or share with others; and is generally in theheads of individuals and teams.Explicit: explicit knowledge can easily bewritten down and codified.

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    The Knowledge Economy

    The move from an industrially-basedeconomy to a knowledge or information-based one in the 21st Century demands atop-notch knowledge management systemto secure a competitive edge and a capacityfor learning.

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    The Knowledge Economy

    The new source of wealth is knowledge, andnot labor, land, or financial capital. It is theintangible, intellectual assets that must bemanaged.

    The key challenge of the knowledge-basedeconomy is to foster innovation.

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    The Knowledge Economy

    For several decades the world's best-knownforecasters of societal change have

    predicted the emergence of a new economy in which brainpower, not machine power, isthe critical resource. But the future hasalready turned into the present, and the eraof knowledge has arrived.

    --"The Learning Organization," Economist IntelligenceUnit

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    K nowledge Management is the explicit

    and systematic management of vital knowledge - and its associated processesof creation, organisation, diffusion, use

    and exploitation.

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    Knowledge Teams - multi-disciplinary, cross-functionalKnowledge ( D ata) bases - experts, best practiceKnowledge Centres - hubs of knowledgeLearning Organization - personal/team/org developmentCommunities of Practice - peers in execution of workTechnology Infrastructure - Intranets, Domino, doc mgt

    Corporate Initiatives - CKOs, IAM, IC accounting

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    Sharing existing knowledgeK nowing what you know

    Knowledge for InnovationC reating and C onverting

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    Customer Knowledge - the most vital knowledgeKnowledge in Products - smarts add value

    Knowledge in People - but people walk Knowledge in Processes - know-how when

    needed

    Organizational Memory- do we know what we

    know?

    Knowledge in Relationships - richness and depth

    Knowledge Assets - intellectual capital

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    C reateProduct/Process

    Innovation Cycle KM Cycle

    KnowledgeRepository

    C odify

    Embed

    D iffuse

    Identify C lassify

    AccessUse/Exploit

    C ollect

    Organize/ Store

    Share/ D isseminate

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    The Knowledge EconomyThe knowledge economy rests on threepillars:The role that knowledge plays intransactions: it is what is being bought andsold; both the raw materials and the finishedgoodsThe concurrent rise in importance of

    knowledge assets, which transform and addvalue to knowledge productsThe emergence of ways to manage these

    materials and assets, or KM

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    Definitions

    Designing and installing techniques andprocesses to create, protect, and use knownknowledge.

    Designing and creating environments andactivities to discover and release knowledgethat is not known, or tacit knowledge.

    Articulating the purpose and nature of managing knowledge as a resource andembodying it in other initiatives andprograms.

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    Do You Really Need KM?

    Competitive success will be based on howstrategically intellectual capital is managed

    Capturing the knowledge residing in theminds of employees so that it can beeasily shared across the enterpriseLeveraging organizational knowledge isemerging as the solution to an increasinglyfragmented and globally-dispersedworkplace

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    Do You Really Need KM?

    If your department wants to stop constantlyreengineering and downsizing: talented

    people are assets to be developed for aglobal 21st CenturyIf you are interested in the Knowledge GridIf you understand that reuse of knowledgesaves work, reduces communication costs,and allows a company to take on moreprojects

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    Organizational Knowledge: Why

    Is It Important?Knowledge can be embedded in processes,products, systems, and controlsKnowledge can be accessed as it is neededfrom sources inside or outside the firmIt is versatile and can be transferredformally, through training, or informally, byway of workplace socializationIt is the essence of the competitive edge!

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    Does a KM System Need a

    Chief Knowledge Officer?Only if your organization is serious about

    implementing a knowledge managementprogram

    Economic realities and and competitiveedge factors play a large role

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    Whats the Strategy?There are two very different knowledgemanagement strategies:

    Codification Strategy

    Personalization Strategy

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    Knowledge Management Types

    Competency Management

    Knowledge Sharing

    Competitive Knowledge Management

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    F or Successful Managing of

    KnowledgeF ocus on five tasks:Generating knowledge

    Accessing knowledgeRepresenting and embedding knowledge

    F acilitating knowledge

    Transferring knowledgeIt is a process of instilling the culture andhelping people find ways to share and utilizetheir collective knowledge.

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    Knowledge Management

    EnablersLeadershipKnowledge champions, such as CKOsCultureAccessTechnologyLearning Culture

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    More on the Importance of

    Corporate CultureChanging the culture is imperative.To create a climate in which employees

    volunteer their creativity and expertise,managers need to look beyond the traditionaltools at their disposal: finding ways to buildtrust and develop fair process.

    That means getting the gatekeepers tofacilitate the flow of information rather thanhoard it.

    And offering rewards and incentives.

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    The Technological DivideGenerating organizational knowledgeinvariably means converting the tacitknowledge of the individual into explicitknowledge accessible by all. Informationtechnology is most effective when itenables this social process.Companies must think through their

    technological systems.Technology such as Intranets andadvanced collaborative software havemade Knowledge Management possible.

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    Organizational Changes

    Lines between departments and operatingdivisions blur

    Knowledge management efforts cancompletely collapse boundariesA knowledge management system cannotwork through hierarchiesIndividual and team learning processes mustbecome the true driver of organizationallearning

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    Why KM? Whats the Big

    Deal?By instituting a learning organization (KM-intensive), there is an increase in employeesatisfaction due to greater personaldevelopment and empowerment.Keeps your employees longer and thereby,

    reduces the loss of intellectual capital frompeople leaving the company.Saves money by not reinventing the wheelfor each new project.

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    Why KM? Whats the Big

    Deal?Reduces costs by decreasing and achievingeconomies of scale in obtaining informationfrom external providers.Increases productivity by making knowledgeavailable more quickly and easily.

    Provides workers with a more democraticplace to work by allowing everyone access toknowledge.

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    Why KM? Whats the Big Deal?

    Learning faster with KMLearning faster to stay competitiveKM software and technologicalinfrastructures allow for global access to

    an organizations knowledge, at akeystroke

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    In Successful KM Programs

    Information is widely disseminated throughoutthe organization. Wherever it is needed, it isaccessible.Accessible at a fast rate of speed.Virtual communities of practice share what isknown in a global fashion, independent of timezones and other geographic limitations.

    Business boundaries are broad, and oftenvirtual in nature.Collaboration to support continuous innovation

    and new knowledge creation.

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    Symptoms of KM DiffusionChallenges

    No internal learning communitiesLack of psychological safety

    Lack of workplace trustArrogance of people who believe theyknow everything, so why try?Lack of communication within anorganization made evident by continuallyreinventing the same wheelNegativity and unrealistic expectations

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    KM and F uture PlanningWhere are we going? What are we herefor?People need awareness of the whole: in

    what direction is the organization going?To have a goal to reach in the future canprovide great incentive for a KM initiative.Effective leveraging lies within anorganizations capacity for rethinking andrecreating. Scenario thinking can help us tosee the blind spots, and help to create the

    future we want.

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    Sustainability of a KM

    Endeavor There are three fundamental processesthat sustain profound changes such as theintroduction of a KM system:developing networks of committed peopleimproving business resultsenhancing personal results

    To achieve sustainability, there must be afocus on learning, and learning how toharness the learning capabilities that lead

    to innovation.

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    Sustainability of a KMEndeavor

    F or significant change to lead tosustainability, hierarchical control must be

    put aside.The emergence and development of informal networks must be supported sothat people can share their tacit knowledgeand help one another.Managers need to surrender control.And mental models need to be examined.

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    K nowledgeManagement

    BusinessTransformation

    (BPR, TQM, culture)

    Intellectual Assets/Capital

    LearningOrganization

    Knowledge-basedSystems

    Innovation

    InformationManagement

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    D ataInformation

    K nowledge

    Intelligen e

    Codifiable, explicit Easily transferable

    Human, judgemental

    Contextual, tacit Transfer needs learnin

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    Socialization

    Internalization Combination

    Externalization

    From

    To

    Explicit

    Tacit

    ExplicitTacit

    Source: The knowledge creating company, I. Nonaka and H. Takeuchi

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    Chaotic knowledge processes

    Systematic information andknowledge processes

    Human knowledge and networking

    Information databases and technical networking

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    Create/discover - 3M, Glaxo WellcomeCodify - BHA, Standard Life, PwCDiffuse - H-P, Thos. Miller, Rover , BPUse - Buckman , Steelcase, PwC ,

    Andersen etc.Process/culture - Cigna, AnalogConversion - MonsantoMeasure/exploit - Skandia, Dow

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    A strategy led initiative - learning org.focusWorkshops to convert rhetoric to action

    plansUsing Intranets to share R&D, helpapprovals

    Library, document management supportReoreinted Technical ArchitectureChallenge is creating sharing culture

    Bottom Line - better RoI C

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    L eadershipStructures - Cultures - HR Policies - Vision

    Processes People

    easure-ent

    Hard infrastructure - Intranet, groupwareetc.Soft - Skills, learning,

    Enablers

    Levers

    Foundations

    Infor ation Space

    Tools andTechniques

    +

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    A key enabler Access anytime, anywhere, anyhow

    Lotus Notes,F

    irst Class, Intranets -groupwarePoint solutions e.g. data mining, mapping

    New generation of Knowledge BasedsystemsF ocus on the I (Information - aboutKnowledge)

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    A culture of sharing - vs. informationfiefdomsDirectors of Knowledge (IntellectualCapital)F acilitating knowledge processes change teams, development workshops etc.

    Developing personal skills info management, dialogue, online

    techniques

    New measures of human capital,

    capabilities

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    Strong link to business imperativeCompelling vision and architectureKnowledge leadershipKnowledge creating and sharing cultureContinuous LearningWell developed ICT infrastructureSystematic knowledge processes

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    1. F ind out where you are! do an assessment; look for existing practice

    2. Identify the knowledge champions and top level sponsors

    3. Start the learning process attend seminars, site visits, assemble

    resources

    4. Understand the seven knowledge levers find how knowledge adds value to your

    business

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    5 . Identify Related Initiatives an opportunity for collaboration?

    6. Initiate a Pilot Project

    look for quick wins, within long-termframework

    7. Assess Organizational Readiness assessment plus enablers, levers,

    foundations

    8. Develop a road map for knowledge vision, goals, strategies, resources,

    networks.

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    KM Software Tools

    GlobalserveKnowcorpHyperknowledgeMicroStrategyThe Molloy GroupKnowledgeX Inc.WebF arming.comSoftlab EnablingTools

    ImaginationExcalibur TechnologiesImaging SolutionsGrapevineTechnologies

    Intraspect SoftwareMilagro: The Power

    of Imagination

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    Knowledge Management?

    The essence of knowledge management isunderstanding and valuing intangible assetsover tangible

    Understanding that human and intellectualcapital are the greatest resourcesManaging the skills and competencies that

    lie within an organization, and allowingthem to blossomAllowing people to be the best that they canbe; optimizing performance

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    Commentary

    Confusion >>>>> Disappointment >>>> and

    Concern over Knowledge Management

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    Acknowledgements

    Peter SengeArt Kleiner Blaise ZeregaCharlotte RobertsRichard RossGeorge RothBryan SmithJames Brian QuinnWilliam Truran

    J Michael Pemberton

    Sarah Cliffe

    David A. Nadler Rick MullinEllen M. LappThomas StewartPeter F elthamHoward RheingoldNick Bontis

    Morten T. HansenJim Bair Henry Mintzberg

    James Cortada

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    Thank you !!