Knowledge Management

By: Jenny Enderby and Chris Papin

What is Knowledge Management?

According to www.brint.com
KM is caters to the critical issues of organization adaptation, survival and competence in face of increasing discontinuous environmental change Essentially, it embodies organizational processes that seen synergistic combination of data and information processing capacity of information technologies, and the creative innovative capacity of human beings.

Simplified
Knowledge
Refers to a set of information with which we have experience Usually gained through work, school or other life experiences

Management
Refers to the ability of an individual or group to lead and organize others in business to produce a desired outcome

The Knowledge Process

The Knowledge Production Information Acquisition Individual and Group Learning Knowledge Claim Formulation and Evaluation

The Knowledge Process

Knowledge Integration Knowledge and Information Broadcasting Searching and Reviewing Knowledge Sharing Teaching

Put it all together

Knowledge production and integration compile together with non-electronic information as well as electronic information to for a database of knowledge that is the basis for KM.

Electronic Information
Data Mining and Data Warehousing
Two tools that help turn information and data into useful knowledge

Defined
Data Warehouse
A database that stores larges amounts of historical business data Another way: Warehousing brings your data together for analysis

Data Mining
The practice of extracting data from a warehouse in order to analyze patterns trends and relationships Another way: Mining sorts through the data you collected and turns up interesting and useful connections

Why Use DM?

Firms identify patterns which generate valuable knowledge for the company

How Companies Use DM

Market Segmentation Customer Churn Fraud Detection Direct Marketing Interactive Marketing Market Basket Analysis Trend Analysis

Fraud Detection Example

Wal-Mart Example

How These Apply to KM

DM and DW can turn data into useful knowledge that can give companies a competitive advantage over their rivals DM takes a proactive approach to selling products to customers rather than a reactive approach by predicting patterns, trends, and behaviors.

Why So Difficult
Implementation of KM programs How to estimate the return on KM How to store KM data Techniques on utilization of the knowledge

Implementation Problems
Knowledge is Power
Incentive structures to share information

Resistance to Change
People are reluctant to change 56% of executives say changing peoples behavior is the most difficult obstacle

 Sharing knowledge is an unnatural act. You can't just stand up and say, 'Thou shalt share knowledge'it won't work.
HUBERT SAINT-ONGE, PRINCIPAL, SAINTONGE ALLIANCE

Returns on KM
KPMG invests $40 million Quality knowledge is the goal Data separates you from the competition

How to Store New Data

New techniques to gather, store, process and distribute this kind of knowledge It isnt contained in typical rows or columns How do we store the human element?

Utilization of the Knowledge

Problems with change Dept. of Defense and post combat data Management must encourage change

Implementation Barrier
94% of business executives believe that it would be possible, through more deliberate management, to leverage the knowledge existing in [their organization] to a higher degree BUT.

Implementation Barrier
71% believe embedding knowledge in process, products, and/or services Why not in the people making these processes, products and/or services?

Implementation Case Study

E&Y implements a knowledge management system in an effort to reach $1 billion in revenues by 1997. Process called Future State 97 or FS97.

E&Y
A major focus was to capture knowledge Elected a Chief Knowledge Officer Formed a Center for Business Knowledge

E&Y
People were the key Technology was the enabler How do you adapt to the change needed?

Similarities
E&Y had the same difficulties as others
Implementation was a new venture and risky
Returns are still not 100% clear, though they are assumed to be part of the KM program How did they obtain and keep the data? Problems getting the knowledge distributed

Questions?