Knowledge Management: Best Practices for Organization

Knowledge Management:
Best Practice for Organization

Moh. Haitan Rachman
E : haitan.rachman@multiforma.co.id
haitan.rachman@gmail.com
W : haitanrachman.wordpress.com
FB: facebook.com/haitanrachman
T : twitter.com/haitanrachman

Agenda
Introduction

Knowledge Management

Definition, Framework, Plilars, Innitiatives

KM Implementations

Required Resources, Internal Workshop,
KM Roadmap

Knowledge Mapping

KM Internal Projects

www.mobileskynet.com

We are now in Knowledge Era

“We believe that the future belongs to
companies that can take the best of the
East and the West and start building a
universal model to create new knowledge
within their organizations.”
(I. Nonaka and H. Takeuchi)

www.mobileskycode.com

Knowledge Agenda
Making knowledge and knowledge
processes more explicit.

The development of strategic frameworks
to guide the exploitation of knowledge –
in products, services and processes.

The introduction of more systematic
methods to the management of
knowledge.


Data, Information, Knowledge


What is data?
Refers to a collection of facts

A unit of data comprises two elements. One is the name of the
attribute referred to; the other is the value of that attribute for a
given entity.

Examples are:

attribute – monthly salary;

value - $3,000;

attribute – personal name;

value – Debra;

attribute – name of a car;

value – Cadillac;

attribute – cost of a car;

value – $35,000;

What is information?
A set of information is a collection of facts together with
definitions of relationships between them.

A relationship can be expressed as: if condition then fact.

The cheapness attribute of a car will be defined as cheap if the
cost is below $12,000, medium-priced if the cost is from $12,001
to $25,000 and expensive if the cost is $25,001 and above.

if cost < 12,001 then cheapness = cheap else

if cost > 12,000 and cost < 25,001 then
cheapness = medium-priced

else

cheapness = expensive


What is knowledge?
“(1) a fluid mix of framed experience, values,
contextual information, and expert insight that
provides a framework for evaluating and
incorporating new experiences and information.
(2) It originates and is applied in the minds of
knower. (3) In organizations, it often becomes
embedded not only in documents or
repositories but also in organizational routines,
processes, practices, and norms”

Davenport and Prusak

Knowledge Types

Tacit knowledge is that which is
implied, but is not actually
documented; something an individual
‘knows’ from experience, from other
people, or from a combination of
sources.

Explicit knowledge is externally
visible; it is documented tacit
knowledge.


Conversion processes

To
Tacit Explicit

Tacit Socialization Externalization

From

Explicit Internalization Combination

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

Knowledge Transfers

Socialization.
Individuals have a wealth of tacit knowledge that they share
with other organizational members. This knowledge
exchange may be a one-to-one, one-to-many, or a many-to-
many interaction. Traditionally, same place/same time face-
to-face meetings have been the medium for exchange.

Externalization.
Explicit knowledge is knowledge that is stored on paper,
audio or videotape, computer disks, etc. Organizations have
traditionally documented standard operating procedures,
created periodic reports, ‘white papers’, etc.


Knowledge Transfers (cont.)

Combination.
Explicit to explicit interactions, or knowledge transfer

Internalization
This form of knowledge creation depends on an individual’s
ability to make sense out of explicit information. Successful
internalization is a function of the sense-maker’s individual
attributes, including personal expertise, experiences, and
mindset.


Primary repositories

Source: The Delphi Group, Inc., (2000)


Definition

What is knowledge management? (1)

(1) The systematic process of finding, selecting,
organizing, distilling and presenting information in a
way that improves an employee's comprehension in a
specific area of interest. (2) Knowledge management
helps an organization to gain insight and understanding
from its own experience. (3) Specific knowledge
management activities help focus the organization on
acquiring, storing and utilizing knowledge for such
things as problem solving, dynamic learning, strategic
planning and decision making. (4) It also protects
intellectual assets from decay, adds to firm intelligence
and provides increased flexibility.

Source: http://www.bus.utexas.edu/kman/answers.htm



Source: Benjamins, V.R., “Knowledge Management in Knowledge-
Intensive Organizations”, Intelligent Software Components (2001).



Knowledge management is the set of
human, organization, and technology to
support the assimilation, dissemination,
application and creation of knowledge to
deliver the values.


Knowledge Management Process
Knowledge creation is the improvement of and/or
increasing the certainty of piece of knowledge and
occurs during a learning experience

Knowledge assimilation is the collection, storage, and
the refinement of the created knowledge with existing
knowledge in the organization’s memory

Knowledge dissemination is the retrieval and
distribution of the knowledge to use in another learning
experience

Knowledge application is the use of past knowledge to
help solve the current problem.

Knowledge Management Cycles

Collect

Identify
Classify

Organize/
Create Knowledge VALUE
Store
Repository

Share/
Use/Exploit Disseminate
Access


Framework

Knowledge management pillars

Karl Wiig

Knowledge Management Pillars

Karl Wiig’s pillars represent the major functions needed to
manage knowledge. The pillars are based on a broad
understanding of knowledge creation, manifestation, use, and
transfer.
Pillar I is concerned with exploring knowledge and its adequacy.
The framework identifies several components of this function --
survey and categorize knowledge; analyze knowledge and
knowledge-related activities; elicit, codify, and organize
knowledge.
Pillar II involves appraising and evaluating the value of
knowledge and knowledge-related activities.
The pillar III focuses on governing knowledge management
activity. This function has three components -- synthesize
knowledge related activities; handle, use, and control
knowledge; and leverage, distribute, and automate knowledge


Core Capabilities and
Knowledge Building


Core Capabilities and Knowledge Building

Leonard-Barton’s four core capabilities and four
knowledge building activities are crucial to a knowledge
based organization (KBO).
Four Knowledge-Building Activities consist of shared and
creative problem solving (to produce current products),
implementing and integrating new methodologies and tools
(to enhance internal operations), experimenting and
prototyping (to build capabilities for the future), and
importing and absorbing technologies from outside of the
firm’s knowledge.
Four core capabilities are physical systems (competencies
accumulated in material systems that are built over time
such as databases, machinery, software), employee
knowledge and skills, managerial systems (organized
routines directing resource accumulation and deployment
creating the channels through which knowledge is
accessed and flows (e.g., education, reward, and incentive
systems)), and the organization’s values and norms
(determining the kinds of knowledge sought and nurtured,
and the kinds of knowledge-building activities tolerated and
encouraged within an organization).

Model of Organizational


Model of Organizational Knowledge Management

Arthur Andersen and APQC have advanced a model
comprised of seven KM processes that can operate on an
organization’s knowledge. As illustrated, these processes
are create, identify, collect, adapt, organize, apply, and
share. The nature of organizational knowledge that they
process is not characterized in this model. Nor does it
characterize the nature of the processes themselves. The
model identifies four organizational enablers that facilitate
the workings of the KM processes: leadership,
measurement, culture, and technology. The model does
not detail the nature of the enablers.

Pillars of Knowledge Management
1) Management & organization

2) Infrastructure Technology

3) People & Culture

4) Content / Knowledge


Knowledge Management Framework

Collect
Human & Identify
Culture Classify

Organization &
Management Organize/
Create
Content & VALUE
Knowledge Store

Infrastructure
Technology

Share/
Use/Exploit Disseminate
Access


Business Objectives
Reduced cycle time
Producing significant reductions in time-to-market
for new drugs in an industry where every day’s
delay can represent $1 million in lost revenues.
Implementing information systems projects by
sharing project management best practices
throughout the IT organization
Reduced costs
Reducing the costs of repeated mistakes. In
documenting errors avoided, savings from the
initiative already represent millions of dollars.


Business Objectives
More efficient use/reuse of knowledge assets
Tracking the number of consulting engagements
won where knowledge captured from previous
projects is reused.
Increased organizational adaptability.
Supporting new competitive strategies or
process designs.
Filtering, synthesizing, and interpreting
competitive intelligence can improve a firm’s
ability to react to the marketplace.


Business Objectives
Increase value of existing products and services
Using knowledge to improve existing products and
services can significantly differentiate an offering from
its competitors.
Embedding specific industry knowledge into the
software promises to reduce design time for
customers.
Create new knowledge-intensive products, processes,
and services
Managing its patents more effectively and expects to
generate more in licensing revenues


Technology Infrastructure


Innitiatives

Hewlett-Packard
HP “knowledge base” for educators
“Trainer’s Trading Post” – a discussion database on
training topics
“Training Library” – a collection of training documents
“Training Review” – a “consumer reports” collection of
evaluation of training resources
HP Laboratories
Connex provides a guide to human knowledge resources
within the Labs and to other parts of HP.
The content is a set expert “profiles” or guides to the
background and expertise of the individuals


MICROSOFT
Skills Planning “und” Development
(SPuD)
Using the competency model to transfer and
build knowledge
Leading to better matching employees to jobs
and work teams.
Five major components :
• Development of a structure of competency types and levels
• Defining the competencies needed for particular jobs
• Rating the performance of employee in particular jobs based
on competencies
• Implementing the knowledge competencies in an on-line
system
• Linkage of the competency model to learning offerings


British Petroleum
Virtual Teamwork (VT) project to make easier for
employees and partners to communicate and share
ideas and knowledge between businesses.

Helping BP know what it knows, learn what it needs to
learn and use knowledge more productively.

Requiring people to interpret and apply information base
their skills, knowledge and experiences.

associating, from engineer offshore to supplier offshore,
are networked by PCs with video conferencing, electronic
whiteboards and scanners and linked by the internet,
corporate intranet, Lotus Notes and e-mail.

Hoffman-LaRoche
Knowledge map to capture a company’s existing
knowledge
Rewritten guidelines – outlining key customers
requirements
A Question tree – charting the questions
Contents – framing how a company should answer
customer questions
Knowledge links – mapping who should share
knowledge and with whom
Yellow pages – listing people who have knowledge
expertise and knowledge
Knowledge map helps between medical
doctors and researchers, among others.
Knowledge gaps in maps assist management
plan for resources.


Implementations

Differences
Knowledge Management Projects Information Management Projects

Goals emphasize value-added for Goals emphasize delivered and
users accessibility of information

Support operational improvement Support existing operations
and innovation

Adds value to content by filtering, Delivers available content with little
synthesizing, interpreting, pruning value added
content
Usually requires ongoing user Emphasis on one-way transfer of
contributions and feedback information

Balanced focus on technology and Heavy technology focus
culture issues in creating impacts

Variance in inputs to system Assumes information capture can be
precludes automating capture automated
process


Knowledge management Implementation

Structuring and Mapping
Knowledge Needed to Capturing and reusing
Enhance Performance structured knowledge
B
C

Identifying Sources A
and Networks of Capturing and sharing
Expertise D lessons learned from
KM practice
Project
Synthesizing and
Sharing Knowledge G
from External Sources Measuring and Managing
E the Economic Value of
Knowledge
F
Embed Knowledge in
Products and Processes


Identifying Sources and Networks of Expertise.
Some projects are designed merely to make
expertise more visible and accessible to
employees. The underlying strategy here is to
facilitate connections between those people who
possess and those who need knowledge.

Structuring and Mapping Knowledge Needed to
Enhance Performance. Another type of project
impacts efforts like new product development or
process redesign by making explicit the specific
knowledge needed at particular stages of the
initiative.


Capturing and reusing structured knowledge.
Knowledge is often embedded in component parts of
organizational outputs, such as product designs,
project proposals and reports, documented
implementation procedures, and software code that
can be reused to reduce the time and resources
needed to produce a new output.

Capturing and sharing lessons learned from practice.
It captures softer, more experiential knowledge that
must be interpreted and adapted by the user in a new
context. These efforts often involve sharing learning
through a data base, and they may also take on a
more interpersonal approach, using face-to-face
sharing of stories and experiences.


Measuring and Managing the Economic Value of
Knowledge. The firms possess structured intellectual
assets, such as patents, copyrights, software licenses,
and customer data bases. Recognizing that these
assets create both revenues and costs for the firm,
another type of project seeks to manage these assets
more judiciously.

Embed Knowledge in Products and Processes. It
seeks to enhance or create new knowledge-intensive
products, services, and processes. By recognizing the
potential market value of knowledge that the firm is
generating, the value of existing offerings can be
enhanced or new revenue sources created.


Synthesizing and Sharing Knowledge from External
Sources. Traditionally, these systems have been little
more than information delivery “clipping services”
that routed articles and reports to executives. But
the electronic information avalanche, combined with
increasing complexity, specialization, and the speed
of market changes has raised the knowledge
component of these systems. They will require
editors, reporters, and analysts to synthesize and
provide context to the tremendous volume of market
information available.


Required Resources for
Implementation

Resources Required for KM

New knowledge Setting up the
management roles technological
infrastructure

B
C
Knowledge project
sponsors and
managers
A

D
E Dealing with broader
cultural and human
Money issues


Resources Required for KM Projects - 1

Knowledge project sponsors and
managers
finding sponsors and keeping them committed
because of the abstract nature of knowledge and
the difficulty executives see a direct link to
bottom line concerns.
Knowledge managers must particularly strive to
avoid intellectual arrogance; when managing
knowledge a tendency to begin to feel that one
knows more about the domain



New knowledge management roles
a sophisticated set of competencies include (1)
strong interpersonal and facilitation skills to get
people in diverse roles working together; (2)
continually assess the project’s value added; and
(3) sufficient knowledge to manage the
infrastructure development.
Editors, reporters, analysts, group facilitators
needed on projects as capacities to elicit,
interpret, and synthesize information from a
variety of sources, and communicate it in ways
that add value



Setting up the technological
infrastructure.
The popular technologies databases, information
bases, or knowledge bases accessed by
desktop computing and communications
infrastructures.
The choice of technology influenced by higher
level organizational standards.
A very common technical decision between
Lotus Notes and World Wide Web-based
“intranets” for knowledge capture and
distribution.



Dealing with broader cultural and
human issues.
The critical cultural issues involve creating an
organizational climate in which knowledge is
valued and shared.
Specific human resource programs, e.g.,
performance evaluation and incentive
programs
Creating some level of shared meaning around
knowledge categories.
Creating a knowledge-oriented culture is a key
responsibility of corporate-level chief
knowledge officers or chief learning officers.


Money.
knowledge management projects require
financial resources.
The costs for people, technology, the logistics
involved in face-to-face knowledge creation and
transfer
Because of these costs, knowledge initiative
managers should make significant efforts to
capture the benefits of projects.


Internal Workshop and Roadmap

Defining the Global KM Vision

Executive Planning
Workshops Workshops Workgroups

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Demonstrate Build the Determine Translate Prioritize Build
KM Best Strategic KM KM Focus KM Pilots for Initial
Practices Linkages Focus into implementation Project
with KM Initiatives Charters

Week 1 Week 8 to 12


Indentifying

Core Competencies Core Capabilities
Know What ? Know How To ?

Expertise, skills that provide Applied core competencies
access to markets or are used – business processes
to create core products – infrastructure
Delivers fundamental customer – resources
benefit – work organisation
Hard-to-duplicate business
Difficult for competitors to processes
imitate

Capabilities provide the means to deploy
competencies to achieve competitive advantage


Operational projects

Executive Planning
Workshops Workshops Workgroups

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6

Demonstrate Build the Determine Translate Prioritize Build
KM Best Strategic KM KM Focus KM Pilots for Initial
Practices Linkages Focus into implementation Project
with KM Initiatives Charters

Week 1 Week 8 to 12


Knowledge Management Roadmap

Project Leader and Solution
Identification Expert Identification
Identification

Identifying Identifying the Probably organization
the area, process or thought leaders in has a file server,
application which you organization as a some sort of an email
wish to address resource and system, a web
reference point. server, and a lot of
KM is growing fastest software.
at the grassroots Helping guide the
level rather than at project in a direction KM project utilizes
the corporate-wide or that will be most the tools already in
enterprise level beneficial to the staff place for the
proposed solution.
Becoming your user
advocates and
gateways to help by
collecting all the
feedback that the
general user


Knowledge Management Roadmap

Knowledge Information Deployment
Capture Entry and Feedback

Sticking to the In the beginning of a Explaining to the
explicit and leaving KM project, the user community what
the tacit for later project leaders information is
have to take the currently available in
Tacit information will initiative and act as the system
arise spontaneously the gatekeepers of
if focusing on explicit the system. Thought leaders from
information early can become our
Identifying thought communication
Beginning project on leaders earlier in the channel to garner the
“Frequently Asked project to maximum collective feedback of
Questions”. Subject advantage. your staff
matter experts focus
on the more
interesting and
challenging
problems.


Knowledge Mapping
- Diagramming
- Entity-Relationship
- Mind Mapping

What is Knowledge Mapping?

Knowledge mapping is a process of
surveying, assessing and linking the
information, knowledge, competencies
and proficiencies held by individuals
and groups within an organization


What Knowledge Maps Show

1. Available knowledge resources

2. Knowledge clusters and communities

3. Who uses what knowledge resources

4. The paths of knowledge exchange

5. The knowledge lifecycle


Knowledge Map Tools

Diagramming

Mind Mapping

Entity-Relationship


Competency Directory
Knowledge Directory

Competency-1 Competency-2 Competency-3 Competency-4 Competency-5 Competency-6

Competency
Directory


Cycle Business Process
Knowledge Directory

Phase Phase Phase Phase

Objectives Objectives Objectives Objectives


Marketing Strategy


Business Management


Customer Relationship Management

Product Competitor

Supplier
Problem
Report
Customer/
Intermediary

Contact
Person

Employee


Improvement and Problem Handling
Organizational
Unit

Employee

Problem Practice
Report
Proof

Product &
Process
Service Stakeholder
Source

Customer Supplier Contact

Internal Projects

Two KM approaches
Corporate-wide KM initiatives:
Skandia, Bank of Montreal, and Dow Chemical
New roles, such as director of intellectual capital
and chief knowledge officer
A local context, the majority of knowledge
initiatives at the business unit, function, or
operational process level
Focused on better management of a functional
knowledge resource
Dow Chemical’s, e.g. patents generated in the
research and development function.


Knowledge Innovation Center
1 2

Only internal Bringing External
into Internal

3 4

Bringing Internal Bringing Internal
into External and External
Together


Knowledge Portal
http://worldwidebiznet.com

http://worldwidebiznet.com/innovation

http://worldwidebiznet.com/internet

http://worldwidebiznet.com/marketing

http://worldwidebiznet.com/government

http://worldwidebiznet.com/mobile


TERIMA KASIH!

Moh. Haitan Rachman
E : haitan.rachman@multiforma.co.id
haitan.rachman@gmail.com
W : haitanrachman.wordpress.com
FB: facebook.com/haitanrachman
T : twitter.com/haitanrachman

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