This document contains a copyright notice for an educational presentation on knowledge management prepared by Arianto Muditomo for Perbanas Institute. The presentation cannot be altered or used commercially without permission. It includes 8 topic sessions on information systems and knowledge management. References and topics to be discussed include the differences between information and knowledge, types of tacit and explicit knowledge, definitions of knowledge management, and why knowledge management is important today due to factors like globalization, virtual workforces, and new technologies.

1. © 2017 Arianto Muditomo All Rights Reserved
Copyright Notice:
This presentation is prepared by Author for Perbanas Institute as a part of Author Lecture Series. It is to be used for educational and non-
commercial purposes only and is not to be changed, altered, or used for any commercial endeavor without the express written permission from
Author and/or Perbanas Institute. Appropriate legal action may be taken against any person, organization, or entity attempting to misrepresent,
charge, or profit from the educational materials contained here.
Authors are allowed to use their own articles without seeking permission from any person, organization, or entity.

2. arianto.muditomo@2017
Referrences:
1) Dalkir, K. (2011). Knowledge Management in Theory and Practice. The MIR Press. USA. ISBN: 978-0262015080
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• Session #1: Information System in Business
• Session #2: IT Strategic Planning
• Session #3: Business Information System
• Session #4: Business Intelligence & Decision Support
• Session #5: Ethics, Privacy and Security
• Session #6: e-Business and e-Commerce
• Session #7: Knowledge Management
• Session #8: Enterprise Information System

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§ What is the difference between information and knowledge?
§ What is Tacit knowledge? Explicit knowledge?
§ What is “Knowledge Management”?
§ What is the difference between KM and Information Management?
§ Why is KM important today? ?
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WHAT IS KNOWLEDGE?
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“The result of knowledge is the elimination of falsehood”
(Shankaracharya)

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TYPES OF KNOWLEDGE
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• Tacit Knowledge (80-95%)
– difficult to articulate, put into words, text or
drawings
– resides within heads of knowers
– …are Experiences; Thinking; Competencies;
Commitment; Deed
• Explicit Knowledge (5-20%)
– content that has been captured in some tangible
form such as words, audio recordings or images
– resides on tangible concrete media
– ...are Data; Informations; Documents; Records; Files
“All knowledge that the world has ever received comes from the mind; the infinite library of the universe is in our
own mind.Books are infinite in number and time is short.The secret of knowledge is to take what is essential.Take
that and try to live up to it.”
SwamiVivekananda

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Tacit Knowledge Explicit Knowledge
ability to adapt ability to copy
know-how & know-why ability to teach and train
share a vision
transmit a culture
organize, systematize
translate vision into guidelines
☛ book p.7
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use of knowledge does not consume it
transferal of knowledge does not result in losing it
knowledge is abundant, but the ability to use it is scarce

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Source: Data Science – from Data to Wisdom by Scott Proctor, June 2016
https://www.linkedin.com/pulse/data-science-from-wisdom-scott-proctor

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SIMPLE EXAMPLE ..
☛ book p.7
Data
directly observable or verifiable, a fact
Information
content that represents analyzed data
Knowledge
makes sense of our world
subjective and valuable information – validated and organized into a model
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source: "Information as a Resource",Harlan Cleveland
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SIMPLE ILLUSTRATION: CAVEMAN WISDOM..

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... has many definitions
business perspective
knowledge science perspective
process/technology perspective
...
... has multidisciplinary nature
... is a mix of strategies, tools and techniques

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help desk
system
data base
technologies
collaborative
technologies
organizational
science
electronic
performance
support system
document &
information
management
decision
support system
library &
information
science
web
technologies
artificial
intelligence
technical
writing
cognitive
science
Knowledge
Management

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BUSINESS DEFINITION
explicit concern of business:
intellectual assets
creation,capture,organization,access and use
positive business results
collaborative and
integrated
approach
☛ book p.4-5
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BUSINESS DEFINITION
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☛ book p.4-5
Organizational memory

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PROCESS PERSPECTIVE
leveraging collective wisdom to increase
responsiveness and innovation
Capturing set of continuous flow of
knowledge to the right people at the right
time
A systematic approach
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INTELLECTUAL CAPITAL à INTELLECTUAL ASSET
Intellectual Capital
q Competence
v skills necessary to achieve a certain level of
performance
q Capability
v strategic skills necessary to integrate and
apply competencies
q Technologies
v tools and methods required to produce certain
physical result
☛ book p. 16

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ORGANIZATIONAL PERSPECTIVES OF KM
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§ Management Perspective : focusing on determining,
organizing, directing, facilitating, and monitoring
knowledge-related practices and activities required to
achieve the desired business strategies and objectives.
§ Hands-on Perspective : focusing on applying the expertise
to conduct explicit knowledge-related work and tasks.
Wiig (1993) considers KM in organizations from three perspectives, each with different horizons
and purposes:
§ Business Perspective : focusing on why, where, and to what extent the organization must invest
in or exploit knowledge. Strategies, products and services, alliances, acquisitions, or divestments
should be considered from knowledge-related points of view.

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INFORMATION MANAGEMENT (IM) VS. KM
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Source: http://www.knowledge-management-tools.net/IM_vs_KM.html

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The major business drivers behind today’s increased interest
and application of KM lie in 4 key areas:
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Globalization of Business
•Organizations today are more global – multisite, multilingual, and multicultural in nature
Learner Organizations
•We are doing more and we are doing it faster, but we also need to work SMARTER as
KNOWLEDGE WORKER – increased pace and workload
Corporate Amnesia
•We are more mobile as a workforce, which creates problems of knowledge continuity for the
organization, and places continuous learning demands on the KNOWLEDGE WORKER
Technological Advances
•We are more connected – IT advanced have made connectivity not only ubiquitous but has radically
changed expectations
#1
#2
#3
#4

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Organization
Community
Individual
• Helps people do their jobs and save time through
better decision making and problem solving
• Builds a sense of community bonds within the
organization
• Help people to keep up to date
• Provides challenges and opportunities to
contribute
• Develops professional skills
• Promotes peer to peer mentoring
• Facilitates more effective networking
and collaboration
• Develops a professional code of ethics
that members can adhere to
• Develops a common language
• Cross fertilizes ideas and
increases opportunities for
innovation
• Enables organizations to
better stay ahead of the
competition
• Builds organizational
memory
• Helps drive strategy
• Solves problems quickly
• Diffuses best practices
• Improves knowledge
embedded in products and
services

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POST LEARNING OUTCOME
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§ What is the difference between information and knowledge?
Information is “know what” while knowledge is “know-how.” Information is “what is” while knowledge is “what works.”
§ What is Tacit knowledge? Explicit knowledge?
Knowledge that is not recognized, articulated, documented or encoded is called tacit knowledge. The most common example
is your expertise. Another is a proven work process that has not been documented. Knowledge that is documented in print or
audio-visual material or encoded in databases is explicit knowledge.
§ What is “Knowledge Management”?
Knowledge management (=KM) is sourcing and deploying knowledge assets for better work performance.
§ What is the difference between KM and Information Management?
KM focuses on information that is useful for effective action. KM is concerned with both explicit and tacit knowledge, while
information management deals largely with explicit knowledge. While information management largely uses
information/communication technologies (=ICT), KM uses both behavioral/social tools and ICT.
§ Why is KM important today? ?
§ Globalization and virtualization of business (multisite, multilingual and multicultural nature)
§ Learner organizations and corporate amnesia (problems of knowledge continuity)
§ Technological advances (knowledge availability – always available and up-to-date)

23. © 2017 Arianto Muditomo All Rights Reserved