Managing Information Resources Managing Information Resources MSC 3824MSC 3824

Knowledge ManagementKnowledge ManagementClass Discussion NotesClass Discussion Notes

Session 8Session 8Professor Yang LeeProfessor Yang Lee

Northeastern UniversityNortheastern University

© 2003, Y. Lee© 2003, Y. Lee

OverviewOverviewUnderstanding Organizational KnowledgeUnderstanding Organizational Knowledge

Assessing organizational knowledgeAssessing organizational knowledge

Creating Organizational KnowledgeCreating Organizational Knowledge

Managing Organizational knowledge Managing Organizational knowledge

Creating Core CompetencyCreating Core Competency

IT Integration IssuesIT Integration Issues

ConclusionConclusion

Understanding Organizational knowledgeUnderstanding Organizational knowledgeNature and ImpactNature and Impact

Q: Knowledgeable organization regardless of employee turnover?Q: Knowledgeable organization regardless of employee turnover?

Q: Ways to facilitate Empowerment?Q: Ways to facilitate Empowerment?

Examples: Two tales of customer satisfactionExamples: Two tales of customer satisfaction

Sportswear company vs. Eyewear companySportswear company vs. Eyewear company

Q: Organizational Alzheimer’s disease? Q: Organizational Alzheimer’s disease?

Understanding Organizational Knowledge:Understanding Organizational Knowledge:Knowledge SourceKnowledge Source

ExperienceExperience

InformationInformation

Understanding Organizational Knowledge:Understanding Organizational Knowledge:Reusability and DistributionReusability and Distribution

Tacit vs. explicit knowledgeTacit vs. explicit knowledge

Tacit.Tacit. Explicit knowledge ?Explicit knowledge ?

Individual Knowledge vs. organizational knowledgeIndividual Knowledge vs. organizational knowledge

IK IK OK ?OK ?

Knowledge: ModesKnowledge: Modes

KnowKnow--whatwhat : Factual knowledge : Factual knowledge

KnowKnow--howhow: Procedural knowledge : Procedural knowledge

KnowKnow--whywhy: : Axiomatic knowledgeAxiomatic knowledge

Understanding Organizational Knowledge: Understanding Organizational Knowledge: ModesModes

KnowKnow--whatwhat

KnowKnow--howhow

KnowKnow--whywhy

Assess three modes of knowledge about Assess three modes of knowledge about information collectioninformation collection, ,

processingprocessing, and , and useuse (see Table 5.1 Page 97).(see Table 5.1 Page 97).

Modes of KnowledgeModes of KnowledgeSource: Huang, Lee, and Wang, 1999, p.101Source: Huang, Lee, and Wang, 1999, p.101

Optician's measurements (Optician's Know-what Knowledge)

set ojlectives for Grinder's lens grinding(Grinder's Know-why Knowledge)

Grinder's grinding principles(Grinder's Know-what Knowledge)

set criteria for Optician's lens order(Optician's Know-why Knowledge)

Know-why

Know-how

know-whatKnowledge

Know-why

Know-how

know-whatKnowledge

Opticians Grinders

Assessing Organizational Knowledge:Assessing Organizational Knowledge:Role, ModesRole, Modes

Source: CRG, 1999Source: CRG, 1999

Creating, Storing, Sharing Organizational Creating, Storing, Sharing Organizational KnowledgeKnowledge

Improve information qualityImprove information quality

Information is not actionable? Why?Information is not actionable? Why?

Explicate and transform tacit knowledge into explicit knowledgeExplicate and transform tacit knowledge into explicit knowledge

Collect, Store,and Share all modes of knowledgeCollect, Store,and Share all modes of knowledge

“ Hunting” “Harvest” and “Harden” organizational knowledge (IBM“ Hunting” “Harvest” and “Harden” organizational knowledge (IBM))

Creating Organizational Knowledge:Creating Organizational Knowledge:Source: Huang et.al., 1999, p.99Source: Huang et.al., 1999, p.99

Information TechnologyInfrastructure

Raw Information

OrganizationalKnowledge

ExplicitKnowledge

Tacit Knowledge

QualityInformation

Improve quality ofinformation

Make tacit knowledgeexplicitKnow-what

Know-howKnow-why

Create OrganizationalKnowledge

1

3

2

Knowledge-creating Culture

What is Knowledge Management?What is Knowledge Management?Email?Email?

Data mining?Data mining?

File sharing?File sharing?

Transforming organization into knowledgeTransforming organization into knowledge--sharing sharing entity?entity?

Common denominator: Creating and sharing collective Common denominator: Creating and sharing collective knowledge knowledge acrossacross traditional work boundaries. traditional work boundaries.

Power of Collective KnowledgePower of Collective Knowledge““ You lost, Man.” Boston You lost, Man.” Boston HeroldHerold

Gary Kasparov’s defeat in a chess match against IBM’s Gary Kasparov’s defeat in a chess match against IBM’s Deep BlueDeep Blue

Example: Deep Blue Example: Deep Blue vsvs GaryGary

Figure 6.1: Deep Blue vs. KasparovFigure 6.1: Deep Blue vs. Kasparov

(Source: International Business Machines [11])(Source: International Business Machines [11])

Creating Core CompetencyCreating Core CompetencySource: Huang et.al., 1999, p. 115Source: Huang et.al., 1999, p. 115

Information TechnologyInfrastructure

Raw Information

Best Practice

OrganizationalKnowledge

ExplicitKnowledge

Tacit Knowledge

QualityInformation

CoreCompetency

Improve quality ofinformation

Make tacit knowledgeexplicit

Know-whatKnow-howKnow-why

Create OrganizationalKnowledge

Contextualize OrganizationalKnowledge

Generalize Best Practice forReuse

Produce Best Practice

1

3

2

4

5

Knowledge-creating Culture

Crystalize Core Competency

What to manage? What to manage? ““ If you had five minutes to rescue key assets of your If you had five minutes to rescue key assets of your business from fire, which assets would you choose?”business from fire, which assets would you choose?”

Knowledge Management Platform:Knowledge Management Platform:An ExampleAn Example

Easy Usability

(Local) Creation

Global Access

Motivation Enablers

Who Knows whatTaxonomy of expertiseYellow pagesCompetence

Making Knowledge Visible

Competence CentersCommunities of practiceManagement of knowledge processesNetworking

Building Knowledge Intensity

Common communication infrastructureAccess to external/internal information/knowledge sourcesUse of modern methods and tools

Building Knowledge Infrastructure

Values and culturesRewardingSharing/exchange of knowledgeShared mindsets and visitorsTrust in each other

Developing a Knowledge Culture

Figure 6.3: Knowledge Management Platform(Source: International Business Machines [9])

Managing Organizational Knowledge:Managing Organizational Knowledge:A MethodologyA Methodology

Source: Huang et.al., 1999, p. 117Source: Huang et.al., 1999, p. 117

Environmental Factors

Incentives Measurements

Lead

ersh

ip

LeadershipManagement System

Vision Value System

Process Organization Technology

Strategy

CustomerCustomer--centric Knowledge Management:centric Knowledge Management:An ExampleAn Example

Source: Huang et.al., 1999, p. 120Source: Huang et.al., 1999, p. 120

InfomationWarehouse

Customer Information Processing

KnowledgeMining &

Visualization

CustomerRelationship

Strategy

The Knowledge Managment Process

OperationManagement

Order/Contract

Billing

Customer Service

MarketIntelligence

ExternalDatabases

CustomerRelationship

CustomerCare

Data/Information Quality

Data/InformationExtraction

Data/InformaionMining

Data/InformationMarts

CustomerPortfolio

Management

Customer ValueManagement

CustomerCare

Management

Customer marketing Program

Ten Strategies for Ten Strategies for Knowledge Management Knowledge Management

Establish a knowledge management methodologyEstablish a knowledge management methodology

Designate a point personDesignate a point person

Empower knowledge workersEmpower knowledge workers

Manage customerManage customer--centric knowledgecentric knowledge

Manage core competenciesManage core competencies

Ten Strategies for Ten Strategies for Knowledge Management Knowledge Management

Foster collaboration and innovationFoster collaboration and innovation

Learn from best practice Learn from best practice

Extend knowledge sourcingExtend knowledge sourcing

Interconnect communities of expertiseInterconnect communities of expertise

Report the measured value of knowledge assetReport the measured value of knowledge asset

Core CompetencyCore Competency--based Business:based Business:ExamplesExamplesSource: Ibid., p. 123Source: Ibid., p. 123

Company

MarketDynamicsProductFacilities

VendorRelationships Competency

Nike Rapid Change None Suppliers Research, designing and marketing high-tech, athletic

footwear

Reebok Rapid Change None Suppliers Designing and marketing women’s fitness footwear

Charles Schwab

Rapid Change None Partners High-value, low-cost service provider in financial service

industry

Dell Rapid Change Assemble Suppliers Modular component electronics

Honda Fundamental Shift Key Engine Components Only

Suppliers Small engine technology

Canon Growth Assemble Suppliers Opto-electronics & imaging

Sony Dynamic Assemble Suppliers Miniaturization; Psycho-graphics

Ikea Mature with Limited Suppliers with idle production capacities

Designing and packaging modular goods

unmet need

Competency for Business SolutionsCompetency for Business Solutions

CoreProduct

1

CoreProduct

2

Business4

Business3

Business2

Business1

1 12111098765432

Competency1

Competency4

Competency2

Competency3

Competency Across IndustriesCompetency Across IndustriesBusiness

Processes &Services

TechnologyInnovation

SoftwareProducts

HardwareProducts

IndustrySolution Areas

Competency 1

Competency 2

Competency n

COMPETENCY

NETWORKS

Data m

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artcardH

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gS pe ech

I ntern etAD

T ool s

Netw

ork Mgt

Tra nsac ti on

PC

Ri scse rver

AS4 00 M

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Mana geO

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Con sul t in g

AD/ SI

Information Infrastructure for Information Infrastructure for CollaborationCollaboration

Infrastructure for Knowledge Infrastructure for Knowledge ManagementManagement

Corporate Knowledge Infrastructure

Customer Care Management

Performance ConfigurationManagement

Competency ConfigurationApplication ConfigurationAssets ConfigurationSkill ConfigurationMethodology Configuration

GroupwareGroup Decision Support SystemsDesktop Video and Audio ConferencingGroup Application Development EnvironmentCollaborative Document ManagementWorkflow

Enterprise Information ManagementIntegrated NetworksCross-Vendor SupportExecutive Information SystemsContent Management

Electronic Mail/MessagingSchedulingStandardsLocal/Remote Services

Distributed Systems Infrastructure

Telecommunication Infrastructure

Sharing Organizational Knowledge:Sharing Organizational Knowledge:Example IntranetExample Intranet

Example IntranetExample Intranet

IT Integration IssuesIT Integration Issues

Manage “islands” of data and cultureManage “islands” of data and culture

Manage global telecommunications and networksManage global telecommunications and networks

Manage legacy and new systems platformManage legacy and new systems platform

Assimilate emerging technologies and processesAssimilate emerging technologies and processes

ConclusionConclusionUnderstand barriers against creating and sharing Understand barriers against creating and sharing organizational knowledgeorganizational knowledgeUse data and IT as facilitator when appropriateUse data and IT as facilitator when appropriateUnderstand what strategies work for organizationUnderstand what strategies work for organizationSet specific goals for benefits of knowledge managementSet specific goals for benefits of knowledge management

Ex. Customized SolutionsEx. Customized SolutionsEx. Enterprise Knowledge StructureEx. Enterprise Knowledge StructureEx. Knowledge Assets ReuseEx. Knowledge Assets ReuseEx. Network Knowledge InfrastructureEx. Network Knowledge Infrastructure