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Chapter 14

Managing Knowledge

Applying InnovationBy David O’Sullivan and Lawrence Dooley

© Sage Publications 2008

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Reflections Why is motivation so important in innovation? Give an example of intrinsic and extrinsic motivation. What is the difference between gain sharing and

profit sharing? Explain the performance appraisal system. How is the need for new skills implemented in a

performance appraisal system? How are individual goals related to organizational

goals?

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Activities

[Discussion of selected student ‘Activities’ from previous chapter]

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Learning Targets Explain the concept of knowledge and knowledge

management Understand the various stages of knowledge management Describe the difference between personalization and

codification Explain the different depths of knowledge Explain why organizations need employees to “care why” Show ways in which people can collaborate in sharing

knowledge Describe how collaboration can be enhanced through

effective meetings

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Defining Knowledge Knowledge is defined as information,

together with individual judgment that can lead to informed decisions.

Knowledge is embodied in: People Culture Procedures and routines Systems and processes Information systems

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Knowledge Hierarchy

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Knowledge Management The process of managing information, then

making it available to people so that they may exercise judgment in the decision-making process

Process consist of: Generating and acquiring knowledge Representing and codifying knowledge Storing and retrieving knowledge Sharing and distributing knowledge Transferring and embedding knowledge

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Background

Organizations utilize less than 20% of their knowledge

“If your company knew half as much as it knows it would be twice as productive”

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Stages of Knowledge Management

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Knowledge Sharing To share knowledge appropriately, it has to

be translated from tacit to explicit knowledge

Principal transfer mechanisms include: Socialization Externalization Combination Internalization

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Codification and Personalization Personalization of knowledge involves the

exchange of knowledge and experience between individuals through human contact

Codification of knowledge involves using forms, databases, etc. to allow storage and retrieval from the organization’s information systems.

The two approaches are not mutually exclusive

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Codification and Personalization of Knowledge

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Depth of Knowledge

Know what Know how Know why Care why

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Depth of Knowledge across Teams

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Collaboration

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Knowledge Management Tools Support the management of knowledge

generation, codification, and sharing in order to enhance decision making.

KM Tools include E-mail and Web portals Content management systems Document management systems Search engines Relational and object databases Workflow systems Customer relationship management Data mining and data warehousing

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Collaborative Portals

Collaborative portals are computer-based systems used to generate, represent, store, access, and retrieve information in a distributed asynchronous way across an organization.

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Types of Portals

Horizontal Portals Target the entire Internet community Google, Yahoo, MSN and AOL

Vertical Portals or ‘vortals’ Specific areas and community members Enterprise Information Portals (EIP) e-Business (Extranet) Portals Personal (WAP) portals

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Major Functions of Portals

Sharing information Search and navigation Document management Personalization Automatic Alerts Task management and workflow Integration of applications

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Portlets or WebParts

Web components Platform independent Java Servlets Microsoft Sharepoint WebParts

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Portal Vendors

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Concepts, Hierarchy & R’Ships Concepts

E.g. Organisation Goals

Indicators Hours per Unit Value

Relationships Related

Type of Relationship Context of relationship

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Lists

IndividualsName Job TitleAndrew Kelly IT AnalystBreda Mooney HR ManagerDanny Mulryan General ManagerDavid Noone Engineering ManagerGary O'Halloran Training ManagerJames Fogarty Purchasing ManagerJohn Sheehan Quality CoordinatorMary Roche Finance ControllerMichael Clark Manufacturing SupervisorStewart O'Neill Materials Manager… …

ActivitiesGroup TitleA0 Operate SwitchIt IrelandA1 Manage SwitchIt IrelandA2 Plan & Control ManufacturingA21 Plan & Control MaterialsA22 Plan & Control ProductionA23 Assure & Control QualityA3 Support OperationsA31 Provide Personnel SystemsA32 Control Accounting SystemsA33 Provide Engineering SystemsA34 Provide Information Systems

StatementsGroup Title StatusMission Efficient manufacture of innovatively produed switchgear solutions …Competencies Machinests and Machining expertise …Competencies Low tax location and ease fo market access …Strengths Global Organisation :)

Strengths World Class Manufacturing Facility :(

Strengths Skilled Workforce :)

Strengths Low Employee Turnover :|

Weaknesses High Insurance premium :)

Weaknesses Lack of inter department communication :|

Weaknesses Frequent product returns due to quality issues :)

Threats Increasing Manufacturing Costs :(

Threats Competition from new low cost entrants :)

Threats Lack of capital for new projects :|

Threats Global downturn continueing :)

Opportunities New government design grants :|

Opportunities E-Commerce Opportunities :)

Opportunities University Graduates :(

… … …

RequirementsGroup Title Responsible StatusParent Improve Cost Structure (300k) Mary Roche :)

Parent Greater Utilisaton of Assets Danny Mulryan :(

Parent Pilot Corporate ERP System Andrew Kelly :)

Customers Reduced Lead Times Michael Clark :|

Customers Increased Flexibility Michael Clark :)

Customers Greater Quality and Reliability Stewart O'Neill :|

Employees Opportunity to Learn on the Job Gary O'Halloran :)

Employees Greater discretion and responsibility Breda Mooney :(

Regulations Health and Safety Compliance Luke Davenport :)

Regulations Environmental Compliance David Noone :|

Community Local Sponsorship Breda Mooney :)

Suppliers Faster Payment Times Stewart O'Neill :|

Suppliers More Accurate Forecasting Stewart O'Neill :|

… … … …ObjectivesGroup Title Responsible StatusCapacity Employ low risk strategy towards capacity expansion Mary Roche :)

Capacity Improve capacity analysis techniques David Noone :(

Capacity Improve man-power flexibility towards capacity changes Michael Clark :)

Capacity Explore Make vs Buy Opportunities Stewart O'Neill :|

Responsiveness Collaborate on development of more accurate forecasts Danny Mulryan :)

Responsiveness Explore manufacture-to-order processes Michael Clark :|

Responsiveness Reduce order delivery times Stewart O'Neill :)

Responsiveness Improve dealer and supplier partnerships Stewart O'Neill :(

Organization Migrate towards flatter and leaner organisation Danny Mulryan :)

… … … …

Columns

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Relationships

Relationships

Objectives Pla

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Pla

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sEmploy low risk strategy towards capacity expansionImprove capacity analysis techniquesImprove man-power flexibility towards capacity changesExplore Make vs Buy OpportunitiesCollaborate on development of more accurate forecastsExplore manufacture-to-order processesReduce order delivery timesImprove dealer and supplier partnerships…

Activities

Relationships

Objectives Impr

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Cos

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Incr

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Del

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Employ low risk strategy towards capacity expansionImprove capacity analysis techniquesImprove man-power flexibility towards capacity changesExplore Make vs Buy OpportunitiesCollaborate on development of more accurate forecastsExplore manufacture-to-order processesReduce order delivery timesImprove dealer and supplier partnerships…

Indicators

Relationships

Objectives Inst

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Employ low risk strategy towards capacity expansionImprove capacity analysis techniquesImprove man-power flexibility towards capacity changesExplore Make vs Buy OpportunitiesCollaborate on development of more accurate forecastsExplore manufacture-to-order processesReduce order delivery timesImprove dealer and supplier partnerships…

Projects

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Applied Innovation - Lists

ACTIONSIdeasProblemsProposalsInitiativesDeploymentPortfolio…

ACTIONSIdeasProblemsProposalsInitiativesDeploymentPortfolio…

RESULTSExceptionsReports…

RESULTSExceptionsReports…

GOALSStatementsRequirementsStrategiesStandardsIndicators

GOALSStatementsRequirementsStrategiesStandardsIndicators

TEAMSTeamsWorkgroupsLeadersReviews…

TEAMSTeamsWorkgroupsLeadersReviews…

RESOURCESModels, Tutorial, Archive,

Advisor, Selector, Information, Services,

Customize

COMMUNITYNotices,

Policies , News, Links,

Forum, Library

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Applied Innovation - Lists

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Example of KM system

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Types of Meetings Various levels of meeting related to

the management of the innovation process take place across the organization. They include: Innovation workshops Innovation team meetings Steering group meeting Project team meeting Individual review meeting

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Summary Explain the concept of knowledge and knowledge

management Understand the various stages of knowledge

management Describe the difference between personalization and

codification Explain the different depths of knowledge Explain why organizations need employees to “care

why” Show ways in which people can collaborate in sharing

knowledge Describe how collaboration can be enhanced through

effective meetings

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Search Online

www.microsoft.com/sharepoint www.bscw.com www.wikipedia.org

[keyword: collaboration software]

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Activities

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CopyrightCopyright © 2009 Sage Publishing, Inc. All rights

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