Chapter 5

Knowledge
Management
Outline
Introduction – definition, meaning of
Knowledge Management
Types of Knowledge
Knowledge Management Process
Supporting Technologies of Knowledge
Management
Recent Development in Knowledge
Management
Introduction
 When information is further processed, it has
the potential for becoming knowledge.
 Information is further processed when one
finds a pattern relation existing among data
and information.
 Knowledge management systems- a class
of information systems applied to manage
organizational knowledge.
 the Use of technologies to manage knowledge
 Cont.
 Currently, the knowledge harness others
organization’s through competitive advantage.
 This competitive advantage is realized through the
full utilization of information.
 In the corporate context, knowledge is the
product of organization and systematic reasoning
applied to data and information.
 It is the outcome of learning that provides the
organization’s only sustainable competitive
advantage.
Knowledge Hierarchy

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Data

Raw data is the simplest and most abundant

component of a knowledge management
system.
Collection of facts, measurements, statistics
“Data on its own has no meaning…”

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Information
Once organized and defined, data becomes
information.
Information is processed data
Information is a subset of data, only
including those data that possess context,
relevance, and purpose
Information involves manipulation of raw
data (using knowledge) – data processing /
information processing

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Knowledge
Information that has been processed.
“If information is data plus meaning then
knowledge is information plus processing.
Knowledge = contextual, relevant,
actionable information
The body of truth, information, and
principles acquired by mankind.
The remembering of previously learned
material.

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Two Kinds of Knowledge
Explicit Knowledge

Tacit Knowledge

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Explicit Knowledge
“As a general rule of thumb, explicit knowledge consists
of anything that can be documented, archived and
codified, often with the help of IT.”
Explicit knowledge refers to knowledge that has been
expressed into words and numbers
 e.g., E=mc2

 Objective, rational, technical

 Leaky knowledge

Examples of Explicit Knowledge include:

 Any step-by-step process that has been documented.

 Company policies and manuals

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cont.
Explicit knowledge is codified.
It is stored in documents, databases, websites, emails and the
like.
It is knowledge that can be readily made available to others
and transmitted or shared in the form of systematic and formal
languages.
Explicit knowledge comprises anything that can be codified,
documented and archived.
These include knowledge assets such as reports, memos,
business plans, drawings, patents, trademarks, customer lists,
methodologies, and the like.
Tacit(implicit) Knowledge
“The know-how contained in people’s heads.”
stored in the brain of a person.
It is:
 Subjective, cognitive, experiential learning

 Highly personalized

 Difficult to formalize

 Sticky knowledge

Examples of Tacit Knowledge:

 Knowing how to hit a baseball
 Knowledge in any job where you can skip steps/contacts to get what you need more quickly

Source: “The ABC’s of Knowledge Management” and Reference 5.

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Tacit-knowledge
Tacit knowledge is personal.
It is stored in the heads of people.
It is accumulated through study and experience.
It is developed through the process of interaction
with other people.
Tacit knowledge grows through the practice of trial
and error and the experience of success and failure.
Tacit knowledge, therefore, is context-specific. It is
difficult to formalize, record, or articulate.
 Cont.
 We can convert explicit knowledge to tacit
knowledge or vice versa
 Both types of knowledge can be produced as a
result of interactions or innovations. They can be
the outcome of
relationships or alliances.
 Both tacit and explicit knowledge enable
organizations to respond to novel situations and
emerging challenges.
Procedural vs Declarative Knowledge
Declarative knowledge (substantive knowledge)
focuses on beliefs about relationships among
variables
 e.g., moon is round, Peter get married with Susan

 round(moon), married(Peter, Susan)

Procedural knowledge focuses on beliefs relating

sequences of steps or actions to desired (or
undesired) outcomes
 Run a lecture: take attendance, open PPT, …

 Flowcharts

 Procedure manuals
The various types of knowledge are
discussed here
General vs Specific Knowledge
General knowledge is possessed by a large number
of individuals and can be transferred easily across
individuals
 E.g. operating MS Windows

Specific knowledge, or “idiosyncratic knowledge,”

is possessed by a very limited number of individuals,
and is expensive to transfer
 E.g. writing programs for MS Windows

Question: How about “Installing MS Windows”?

 Technically vs Contextually
Specific Knowledge
Technically specific knowledge is deep knowledge in
a specific application domain
 e.g. information technology, financial investment,

etc.
Contextually specific knowledge refers to the
knowledge of particular circumstances of time and
place in which work is to be performed
 E.g., work knowledge in a particular organization.
 Manager’s knowledge to motivate employees in particular
organizations.
 Consultant managers knowledge in to establish team.
Different Types of Knowledge
What is Knowledge
Management?
Knowledge Management is the broad process of
locating, organizing, transferring, and using the
information and expertise within an organization.
Process to help organization to identify, select,
organize, disseminate, transfer information.
Leverage value of intellectual capital through reuse
Systematic and active management of ideas,
information, and knowledge residing within
organization’s employees

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Knowledge Management
"...a discipline that promotes an
integrated approach to identifying,
managing and sharing all of an
enterprise's information assets. These
information assets may include
databases, documents, policies and
procedures, as well as previously
unarticulated expertise and experience
resident in individual workers.
Knowledge Management
Processes
KM processes includes
 Creation of knowledge
 Storage/retrieval of Knowledge
 Sharing of knowledge
 Using knowledge/Knowledge Application
Knowledge
Management Processes

Discovery/
creation
•Combination
•Socialization Sharing Application/
•Socialization usage
•Exchange •Direction
Capture •Routines
/Storage
•Externalization
•Internalization

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Knowledge creation/ Discovery

 Generating new ideas, routines,

insights
 Development of new tacit or explicit

knowledge
 from data and information

 or from the synthesis of prior

knowledge
Knowledge Discovery:
Combination
 The process of synthesizing explicit
knowledge - create new, more complex
sets of explicit knowledge

 A process of systemizing concepts into a

knowledge system
 Reconfiguration of existing information

and knowledge
 E.g. Prototypes or new technologies.
 DM predict and descriptive. BI
Knowledge Discovery:
Socialization
The process of synthesis of tacit
knowledge across individuals
E.g. chatting about how to find a good
job.
Facilitation by technologies
 Groupware
 Web 2.0 – forums, chat-room, face-book…
Knowledge Capture/Storage

The process of retrieving either explicit or tacit

knowledge that resides within people, artifacts, or
organizational entities (written documentation,
electronic databases, codified human knowledge
stored in expert systems, procedures and
processes). Knowledge captured might reside
outside the organizational boundaries, including
consultants, competitors, customers, suppliers,
and prior employers of the organization’s, new
employees.
Externalization vs Internalization
Externalization
 A process of articulating tacit knowledge into

explicit concepts word, visuals, or figurative

language or creating model.
Internalization
 conversion of explicit knowledge into tacit

knowledge. Learning by doing

 Documents help individual internalize what they

experience
 E.g., after reading a book, you learn in your mind
 Knowledge sharing

Willing explanation to another directly or through

an intermediary
the process through which explicit or tacit
knowledge is communicated to other individuals.
effective transfer - so that the recipient of
knowledge can understand it well enough for
actions.
may take place across individuals, groups,
departments or organizations.
Knowledge is shared (internalized) and not
recommendations(no internalization occurs)
based on knowledge.
Socialization vs Exchange.
Knowledge Sharing: Socialization
focuses on the sharing of tacit knowledge
among individuals, groups, and organizations
e.g., talking to a senior year student about
how to finish your degree course with minimal
amount of effort in the orientation camp.
e.g. Apprenticeship through observation,
imitation, and practice
Note: one may also use socialization to
synthesize tacit knowledge for knowledge
discovery.
Knowledge Sharing: Exchange
focuses on the sharing of explicit knowledge.
communicate or transfer explicit knowledge
between individuals, groups, and organizations.
e.g., passing a computer manual from one to
another.
Discussion: How does IT help?
Can you relate this to our main case study?
Knowledge Application
The process of applying explicit or tacit
knowledge to carry out some tasks.
The knowledge may have been
internalized (exist in one’s mind) or not
(e.g., work according to a manual).
Direction vs Routines.
Direction
Individuals possessing the knowledge direct the action
of another individual without transferring to that
person the knowledge underlying the direction.
E.g., calling the help desk to solve your PC problems.
Experts’ knowledge embedded in knowledge-base,
expert systems and decision support systems.
Troubleshooting systems based on the use of
technologies like case-based reasoning.
 Routines

involve the utilization of knowledge embedded in

procedures, rules, and norms that guide future
behavior.
economize on communication more than directions
because they are embedded in procedures or
technologies.
e.g., inventory management system for automatic
re-ordering.
general information systems and automation helps:
 Enterprise resource planning systems
 Management information systems …
What is Knowledge
Management Trying to Solve?
The problem of spending more time trying to
find information than actually using it.
Increase consistency of
information/standardization of processes in
order to improve efficiency and/or
effectiveness.
Retain knowledge as workers retire or leave
the company.
Avoid “re-inventing the wheel.”
Increase efficiency of accessing the specific
information that workers need.
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What is Knowledge
Management Trying to Solve?
Goals of KM
 Streamline and improve internal
communications
 Increase cost savings through reduction in
redundancies
 Increase business process efficiencies
 Increase globalization/standardization of
business practices

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Different Aspects of
Knowledge Management
Creation and Capture of knowledge
Sharing of information
Codification of information
Protection of information
Retrieval of information
Ability to update information easily

Sources: See References 2 and 3.

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Knowledge Management
System Cycle
Creates knowledge through
new ways of doing things
Identifies and captures new
knowledge
Places knowledge into context
so it is usable
Stores knowledge in repository
Reviews for accuracy and
relevance
Makes knowledge available at
all times to any ones
Why Knowledge
Management?
Old Knowledge Equation:
 “Knowledge = Power, so hoard it.”

New Knowledge Equation:

 “Knowledge = Power, so share it and it will
multiply.”

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The Benefits of Knowledge
Management
“An effective KM program should help
a company do one or more of the
following:

Foster innovation by encouraging the free

flow of ideas
Improve customer service by streamlining
response time
Boost revenues by getting products and
services to market faster
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The Challenges of Knowledge
Management
Most difficult challenge appears to be
getting employees to “buy-in” that KM
benefits them
Determining what is and what is not
useful information
 Deciding what information should be
retained
 What quantities of information to retain

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Goals of the New KM tool

 Develop international shared resources

 Improve inter-organizational alliances
 Streamline and improve internal
communications
 Cost efficiencies (labor hours) through
reduction in redundancies

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KM Supporting technologies
 Artificial intelligence
 Expert systems, neural networks, fuzzy logic,
intelligent agents
 Intelligent agents
 Systems that learn how users work and provide
assistance
 Knowledge discovery in databases
 Process used to search for and extract information
 Internal = data and document mining

 External = model marts and model warehouses

Cont.

 XML
 Extensible Markup Language
 Enables standardized representations of
data
 Better collaboration and communication
through portals
KM Enabling Technologies
Data warehouse and data mining

Expert systems and knowledge based systems

Intranet

Electronic Performance Support Systems

Problem/Solution Database (Case-Based

Reasoning Systems)