IEE_564_Knowledge_Management_New.

7/29/2019 IEE_564_Knowledge_Management_New.

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Knowledge Management

IEE 564 Supply Network IntegrationFall 05

Dan Shunk and Yang SunDept of Industrial Engineering

Arizona State University


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Agenda

Knowledge Basics

KM Basics

Historical View KM Benefits and Measurements

Implementation and Examples

Where does KM go?


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The DIKW Hierarchy

Learning

Information

Knowledge

Wisdom

Data

Source: Ackoff, R.L. "From Data to Wisdom", Journal of Applied Systems Analysis, Volume 16, 1989 p 3-9

--Ashleigh Brilliant


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The DIKW Hierarchy Data: contains symbols; data is raw,

simply exists and has no significancebeyond its existence

Information relates to description,

definition, or perspective (what, who,when, where).

Knowledge comprises strategy,practice, method, or approach (how).

Wisdom embodies principle, insight,moral, or archetype (why).


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Some Quotes

Like water, this rising tide of data can be viewed as an abundant, vital andnecessary resource. With enough preparation, we should be able to tapinto that reservoir -- and ride the wave -- by utilizing new ways tochannel raw data into meaningful information. That information, inturn, can then become the knowledge that leads to wisdom.

-- Les Alberthal

A collection of data is not information.

A collection of information is not knowledge.

A collection of knowledge is not wisdom.

A collection of wisdom is not truth.

-- Neil FlemingFleming, Neil. Coping with a Revolution: Will the Internet Change Learning?, Lincoln University, Canterbury, New Zealand

Alberthal, Les. Remarks to the Financial Executives Institute, October 23, 1995, Dallas, TX


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Understanding the Hierarchy

Data Contexts

(12345) (Zip Code)

Information

Knowledge

Patterns, meanings

Human Brain

Wisdom

Principles, insights

Systems Thinking

(Do you know where it is?)


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Now consider the followinginformation:

I have a box. The box is 3' wide, 3' deep, and 6' high. The box is very heavy. The box has a door on the front of it. When I open the box it has food in it. It is colder inside the box than it is outside. You usually find the box in the kitchen. There is a smaller compartment inside the box with ice in it. When you open the door the light comes on. When you move this box you usually find lots of dirt

underneath it. Junk has a real habit of collecting on top of this box.

What is it?


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Knowledge is dynamic

Memorizing Knowledge

vs.

Learning/UnderstandingKnowledge

Information

Wisdom

Know-How

Know-Why


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Where is the Life we have lost in living?Where is the wisdom we have lost in knowledge?Where is the knowledge we have lost in information?

--T.S. Eliot, The Rock, 1934

Sources: Cleveland H. "Information as Resource", The Futurist, December 1982 p 34-39


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Systems Thinking

Wolves Rabbits Grass Soil

_ _ +

+++

Rain

_

Human

_

Source: Bellinger, Gene , Introduction to Systems ThinkingBellinger, Gene. Systems Thinking: An Operational Perspective of the Universe

Wisdom deals with FUTURE


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Knowledge is of two kinds:

We know a subject ourselves Or we know where we can find information upon it

-- Samuel Johnson

May the force be with you-- Jedi Knights

Knowledge is more than equivalent to force

-- Samuel Johnson


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KM Definition

Unfortunately, there's no universal definition of KM, justas there's no agreement as to what constitutesknowledge in the first place.

For this reason, it's best to think of KM in the broadestcontext. Succinctly put,

KM is the process throughwhich organizations generate value from theirintellectual and knowledge-based assets.

Most often, generating value from such assets involvessharing them among employees, departments and evenwith other companies in an effort to devise best

practices. It's important to note that this definition says NOTHING

about technology; while KM is often facilitated by IT,technology by itself is not KM.

Source: Santosus and Surmacz, The ABCs of KM, KM Research Center


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Think of a Golf Caddie

A good caddie can give advice to golfers,such as, "The wind makes the ninth holeplay 15 yards longer."

Good advice may lead to more tips. The golfer may be more likely to play this

course again. If this caddie is willing to share what he

knows with other caddies, then they all

may eventually earn bigger tips. How would KM work to make this

happen? A good KM program => Win-Win


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What contributes Knowledge-BasedAssets (Intellectual Assets) ?

Not all information is valuable. In general, however, intellectual and knowledge-based assets

fall into one of two categories:

Explicit Anything that can be documented, archived and codified

Often with the help of IT Implicit knowledge can be made explicit

Tacit 'We know more than we can tell-- Polanyi (1958) The know-how contained in people's heads Identifying tacit knowledge in the first place is a major hurdle

The challenge is how to recognize, generate, share andmanage it

Apprenticeship is a traditional way for transferring tacitknowledge

IT in some form can help facilitate the dissemination of tacitknowledge

Source: Santosus and Surmacz, The ABCs of KM, KM Research CenterSource: Polanyi, M. (1958). Personal knowledge: towards a post-critical philosophy.Chicago, IL: University of Chicago Press


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KM Strategy

Codification strategy

networked computers are used to codify and storeknowledge

Personalization strategy

knowledge is shared person-to-person and computersare used as communications tools

Competitive strategy must drive knowledge managementstrategy:

Do you offer standardized or customized products? Do you have a mature or innovative product?

Do your people rely on explicit or tacit knowledge tosolve problems?

Morten T. Hansen, Nitin Nohria, Thomas Tierney, WHAT'S YOUR STRATEGY FOR MANAGINGKNOWLEDGE? , Harvard Business Review, 0017-8012, March-April 1999 v77 i2 p106(1)


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16Source: Mike Burk, Knowledge Management: Everyone Benefits by SharingInformation, Public Roads, December 1999 Vol. 63 No. 3

KM Core Process/Knowledge Cycle(Traditional Version)

Creation

Storage

Sharing

Apply

-Publications

-Conferences

-Project Experiences

-Research

-Industry Expertise

-Best Practices

-Work in Progress

-Raw Data

-Filter

-Catalog

-Create Outside Links

-Document

-Distribute

-Collaborate

-Resolve

-Search for Examples

-Ask a Colleague

-Find Exhibit

-Research Results

-Lessons Learned

-Specifications

-Product Performance

Reuse/

Revise


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Nonakas Spiral

Nonaka, I. (1991) "The knowledge creating company." Harvard Business Review, 69, (Nov-Dec), 96-104


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KM Core Process (New Version)

Refinement

Sharing

Capture

Aggregation

Knowledge-BasedCompetitiveAdvantage


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Basic Takeaways

How can this duality be MANAGED?

Source: Hildreth & Kimble, The duality of knowledge,Information Research, Vol. 8 No. 1, October 2002

The duality of knowledge


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KM is nothing new

for thousands of years humanshave been discussing the meaning

of knowledge what it is to knowsomething, and how people cangenerate and share new

knowledge

Source: Knowledge Management Tools, Rudy L. Ruggles, III, 1997


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Evolution of KM

Historical Examples of KMIn the village (Elder, the Healer, the

Midwife)

Migrations of people from continent to

continent

In ancient Greece (Plato and Socrates)

In other ancient cultures/societies


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Generally considered to have begun inthe 1950s when Alfred Sloandivisionalized GM

1970s

Drucker, Straussman, and Senge in the U.S.

Harvard Business School

Thomas Allens research at MIT, Everett

Thomas at Stanford

Doug Engelbart introduced KM application

Evolution of KM


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1980sThe importance of knowledge as a

competitive asset was apparent

The development of systems formanaging knowledge

Acksyn and McCraken developed a KMSystem

KM related articles appeared morefrequently

TQM

Evolution of KM


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1990s

Numerous management consulting firms began KMprograms

KM introduced to popular press in 91 when Tom

Stewart published Brainpower Nonaka and Takeuchis The Knowledge-Creating

Company: How Japanese Companies Create theDynamics of Innovation

By mid-90s KM initiatives were flourishing due to

the internet By 94 the number of KM-related publications and

groups increased

BPR

Evolution of KM


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Is KM another management fad?

# of TQM Articles in WoS # of BPR Articles in WoS

Source: Ponzi & Koenig, Knowledge management: another management fad?Information Research, Vol. 8 No. 1, October 2002


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KM: Researchs Perspective

Source: Wilson, The nonsense of 'knowledge management,Information Research, Vol. 8 No. 1, October 2002

Computing &

Information

systems

26

Information Science,

Information

Management &

Librarianship

18

Management 13

Artificial Intelligence 10

Engineering 8

Medicine 4


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KM: Consultancies Perspective

Accenture: This Knowledge Management solution provider enables workers to capture,manage and share information throughout their organizations

Ernst and Young: encouraging information exchange among staff, for example,through formal and informal networking following training; building intranets to provide accessto information resources; creating 'yellow pages' or indexes to expertise; and creatingnewsgroups for employees to encourage information exchange.

Deloitte and Touche: Knowledge management is a discipline that promotes anintegrated approach to the creation, capture, organization, access, and use of an enterprise'sinformation assets.

KPMG: not just patents, trade marks, copyrights, database rights and other"pure" IP, but other forms of articulated knowledge, such as business processes,methodologies and know how.

McKinsey: 'Participate in the Practice's knowledge capture andcodification program by sourcing internal knowledge and experts; developtopical material relevant for internal and client related activities. Enhance

the ability of client teams to access internal knowledge and experts, adviseclient teams on the application of practice knowledge and expertise; providehands-on guidance for teams without prior experience.

Managing Information Managing Intellectual Capital

Source: Wilson, The nonsense of 'knowledge management,Information Research, Vol. 8 No. 1, October 2002


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Historical Takeaways

Lessens learned from many failed TQM and BPRendeavors: the root of the difficulty was not thetechnique employed.

What's really important is: Mission: What are we trying to accomplish? Competition: How do we gain a competitive edge? Performance: How do we deliver the results? Change: How do we cope with change?

KM is not another silver bullet. Both hard-K andsoft-K assets must managedto deal with thesebottom lines. Otherwise, KM is just anotherpassing fad

Source: Davidson, Mike. The Transformation of Management. Butterworth-Heinemann, 1996


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Jumping on the bandwagon:KM Benefits

Achieving organizational efficiency t is the game

Staying ahead of competition Customers are integral part of the firms intellectual capital

Know yourself, and know your enemy, you will not fail in ahundred battles. Sun tzu

Maximizing organizational potential recycling and re-using (minimizing reinventing the wheel)

learn from mistakes (Post-It of 3M)

Managing intellectual capital

'Knowledge has become the primary ingredient of what wemake, do, buy and sell. As a result, managing it has becomethe most important economic task of individuals, businessand nations.' -- T.A. Stewart

Identify new ways to create value for employees, theenterprise, and shareholders

Al-Hawamdeh, S. (2002) "Knowledge management: re-thinking information managementand facing the challenge of managing tacit knowledge"Information Research, 8(1),

Stewart, T.A. (1997). Intellectual capital. London: Nicholas Brealey Publishing.


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Why Do Companies Pursue KM?

Source: Knowledge Management, May 2001


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Benefits of KM (Contd)

Project

Decisions

CompetitiveAdvantage

Time Reduction

StrategicDecisions

ActionableDecisions

Access To Best & Latest ThinkingFaster Access To Knowledge

Minimizes Non-Informed Decisions

Faster Problem-Solving

Productivity PerformanceFaster Innovation

Source: APQC Conference Proceedings on KM, Fall '01


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How is KM Effectiveness Measured?

QuantitativelyHard data: Evaluate performance between

pointsSpot trends

QualitativelyContext for quantitative measuresUsed when its difficult to capture or

communicate meaningful quantitativemeasures (storytelling)

Used at early project stages (futurescenarios)


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KMM

aturity

Time

Start-up phase: Anecdotes andqualitative metrics are most valuable

to convince people of KM value.

Pilot project phase: Usedefinitive metrics to show real

value to business objectives.

Enterprise growth phase: Usemixture of metrics to showvalue across organization.

Pre-planning phase: Use scenarios andsimulations to explore projected

measure results and effects.

Measurement Methods for DifferentStages of the Life-Cycle

Source: APQC Conference Proceedings on KM, Fall '01


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KM Implementation-Focus and Vision

Develop a broad vision of KM and create astrategy of focus to pursue KM implementationthat aligns with enterprise objectives andcompetitive advantage over others.

IM and IT Focus

People Focus

Enterprise Effectiveness Focus

Intellectual Asset Focus

Key: Understand how and why people will use KM inthe workplace.


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Creating a KM System: Knowledge Mappingand Documentation

SCM: understand what makes you most valuable to abusiness

Knowledge of Supply Chain: Customers Customer and Supplierssupplier

Apply knowledge of where a KM system can best add value

Determine key knowledge requirements required todeliver quality work

Employee involvement

Knowledge needed

How documented knowledge will be used

Acquire key knowledge

Capture knowledge from departing personnel

Develop lessons learned systems

Documentexpert knowledge for key critical functions


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36Source:

An Example of Knowledge Map

Jan Lanzing. Department of Educational Instrumentation of the Faculty of Educational

Science and Technology of the University Of Twente,http://users.edte.utwente.nl/lanzing/cm_home.htm


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Common KM Modeling Langurages

CommonKADS

Protg 2000

Unified Modeling Language (UML)

Multi-perspective Modeling

Creating a KM System: Types of


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Creating a KM System: Types ofSoftware Purchased

Source: Knowledge Management, May 2001


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Example: BBS-Based KM

Reference: Li Yuan, Web Site HelpsChinese in U.S. Navigate Life, 26 October2004, The Wall Street Journal, B1, Dow

Jones & Company, Inc.

IT is an enabler. Web-based technologysuch as blog, online forum, news group,

bbs, email, instant messenger, and so oncan help facilitate the dissemination of tacitknowledge.


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Keys to SuccessfulKMImplementation

Develop training and procedures that support the KMsystem

Create an environment oftrustand open communication

Implement incentives for employees to manageknowledge, collaborate broadly, and act intelligently

Utilize a CHAMPION and a cross-functional team toimplement and sustain KM efforts.

Focus on the vision of the future. Is CKO a must?

Create an impact and benefit evaluation methodology forassessing success of KM.


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KM Implantation: Top 10 Issues

Provide strategic advantage

Obtain top management

Maintain the currency

Identify org. knowledge

Assess the financial issues

Verify the contribution

Best design and develop

Sustain KMs progress

Ensure knowledgesecurity

Motivate participation

* Source: William R. King, Peter V. Marks, Jr. , and Scott McCoy. The most important issues

in knowledge management, Communications of the ACM, Sept. 2002/Vol. 45, No. 9


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Challenges of Implementing KM Myths

Technology delivers Storing intelligence & experience Distribution of intelligence

Knowledge makes individuals valuable

Everybody is a Knowledge Worker

Knowledge sharing is a human behavior.

Trust and liability vulnerability in knowledge sharing.

KM is not static KM is born in chaotic processes that Take Time Its a

continuously improving organizational learningprogress

Retaining knowledge is still the No.1 issue. Early retirement = Loss of knowledge

Source: Wheatley, M., 2000, Can knowledge management succeed where other efforts havefailed? Knowledge Management Classic and Contemporary Works, The MIT Press


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Future of KM - New Thinking

Regarding Old Thinking New Thinking

Organization of

laborDivision of labor Peer-to-peer networks

Value creation Value chain of simplerelationships

Value networks of complex,

interdependent, dynamicrelationships

Information Ultimately knowable Infinite and unbounded

KnowledgeIndividually focused on

single learner

Collectively,

collaboratively,

organizationally focused

Law of success Competition Cooperation

Change Something to worry about All there is


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Future of KM

Communities of practice and commoninterest

Developed and maintained

Improved IT infrastructures andapplications for GLOBAL distribution ofknowledge

Research into AI systems for KM

Employee education on the creation,sharing, and use of knowledge

Creates a well defined system of knowledge


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Future of KM

How much will each of you learn from this class? It alldepends on how one assimilates and manages theacquired knowledge, the keyword here is MANAGE.

KM is no longer a management tool, in the future itwill be THE TOOL for survival in an increasingly

competitive world of business.

KM tools should help companies to foresee and predictthe future NOW, this is what will make companieslean, agile and most importantly it will impact T.


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Quotes about the future of KM

With luck, KM will disappear in the futureBUT there are two different scenarios as to why this happens:1.People are encouraged to bring their knowledge to work.

Organizations become spaces for sharing and creating knowledge2. Knowledge management is just another fad and fades away.

People discover that what they are doing is not the silver bullet

that makes them more competitive, produces larger profits andgreater efficiency. They abandon KM like TQM, BPR,.

Most likely we wont be talking KM in 10 years from now. We would betalking about innovation, instant education, and thought control.

The term KM is a wide concept, in future more specific sub-terms will

emerge

..

most economic growth will be determined by large value-adding sectorthat finds ways to get knowledge based products to a global marketfastest.skills and capability to imagine and innovate will be in highdemand.


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KM must be integrated

(The essence of MGT) Information

Decision

Implementation

Buffer

Sources: Lee Schwarz, Lecture Notes, 2003

Lee Schwarz, "A New Teaching Paradigm: The Information/Control/BufferPortfolio", Production and Operations Management7:2, pp. 125-131, 1998

Dan Shunk, Knowledge Management, Lecturer Notes.

Data

Information

Knowledge

Org. Learning

Wisdom


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Conclusions

KM won't stand alone, it will have to be integrated.

KM will be more oriented to generate its primary goal ofincreasing "VALUE" outcomes.....it will be applied to

transform the supply chains into value chains.

To some, life is very simple. In reality, business isvery complex and unforgiving. The challenge in thefuture is not to use phrase jargons, but to actuallyapply the KM tools and this is not going to be easy.

There wont be any KM after 10 years, it has to evolveinto something meaningful, easy to understand andapply.


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YOUR TAKEAWAYS

IEE_564_Knowledge_Management_New.

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