Knowledge management
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KNOWLEDGE MANAGAMENT by Morten T. Hansen, Nitin Nohria, Thomas Tierney Ahmed Ahmed Stefanie Schiefer Pasha Binyatov Uchenna Egbete Meera Segar Nadeen Alkaydi Niccolo Colatrella iversità della Svizzera italiana, International Busines 2013
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Transcript of Knowledge management
KNOWLEDGE MANAGAMENTby Morten T. Hansen, Nitin Nohria, Thomas Tierney
Ahmed AhmedStefanie SchieferPasha Binyatov
Uchenna EgbeteMeera Segar
Nadeen AlkaydiNiccolo Colatrella
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What is the knowledge?
• Knowledge is the fact or condition of knowing something with familiarity gained through experience or association
• In 1990s
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Natural Resources
Intellectual Assets
Industrialized economy
What is the knowledge management?
Strategies and processes designed to identify, capture, structure, value, leverage, and share an organization's intellectual assets to enhance its performance and competitiveness.
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Knowledge management based on two critical activities:
• capture and documentation of individual explicit and tacit knowledge
• And its dissemination within the organization.
What is the explicit and tacit knowledge?
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Explicit knowledge
Tacit knowledge
• Explicit knowledge - is rational knowledge that can be expressed as data which includes theoretical approaches, problem solving, manuals and databases
• Tacit knowledge – is experience based knowledge that can not be expressed as data which includes cognitive skills such as beliefs, images, intuition and mental models as well as technical skills such as craft and know- how.
Why is Knowledge Management important?
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Knowledge management in consulting business
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Consulting Business
Codification Strategy
Personalization Strategy
• Codification strategy – in some companies knowledge is carefully codified and stored in databases to make it accessible by anyone in the company
• Personalization strategy– in other companies knowledge is closely tied to the person who developed it this kind of knowledge shared through person to person contacts
Codification vs. Personalization
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Codification Personalization
provide high-quality, reliable, fast information-systems
Competitive Strategy provide creative, analytical advice
Reusing codified knowledge
Channeling individual expertise
once investing in knowledge asset; reuse it many times Large teams with high ratio
Economic Model Customized solutions to individual problems Small teams with low ratio
Focus: generating large overall revenues
Focus: maintaining high profit margins
Electronic document to codify
Knowledge Mgnt. Strategy Networks to link people
People to documents Person to person
Codification vs. Personalization
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Codification Personalization
Invest heavily in IT Information Technology Invest moderate in IT
Goal: to connect people with reusable codified knowledge
Goal: to facilitate conversations
Train people in groups Human Resources Train people in one-to-one meetings
Hire people who are well suited to reuse of knowledge
Hire MBAs who like problem solving
Focus: reward people for using/contributing to document databases
Focus: reward people for directly sharing knowledge with others
Examples Codification vs. Personalization
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• Consultancies– Economics of reuse vs. experts economics – Exchange of knowledge between co-workers
Examples Codification vs. Personalization
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• Health Care and High Tech– Saves cost of doing business– Simplified service– Makes innovation easier– Knowledge is transferred between co-workers
Codification Vs. Personalization
• Pick the best strategy.• Use knowledge
effectively.• Do Not Straddle.• Do not Choose one over
the other.
• A firm cannot be equally perfect in both.
• Very costly • Not fully effective
• Need to excel on one more than the other.– Mix of Codification &
Personalization.
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Problems with document-driven systems
Major U.S company • Relying on a consulting
company because of comfort.
Bain consulting Company• Relying on documents only
do not get full information needed.
CSC Index and Straddling
• Fully established both strategies.
• Two kinds of staff:– Initial IT focus – Corporate Strategy focus
• Both groups had different interests Clash!
• Firm overtaken by rivals.• Lack of competitiveness.• Revenues went down.
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Getting The Incentives Right
• People need incentives to participates in the knowledge sharing process.
• The two knowledge management strategies call for different incentive systems.
• In the codification model, managers need to develop a system that encourages people to write down what they know and to get those documents into the electronic repository. U
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Getting The Incentives Right
• The level and quality of employees’ contributions to the document database should be part of their annual performance reviews.
• In the companies that are following the personalization approach, managers need to reward people for sharing knowledge directly with other people.
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Incentives & Technology
Codification• Encourage employees to
document knowledge.– Part of annual performance
reviews.– E.g. Ernst & Young strategy.
• Heavy investment in IT
Personalization• Reward for sharing
knowledge.– E.g. Bain strategy.
• Low investment in IT
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Do Managers Need To Isolate Knowledge Management?
• Some CEOs have put knowledge management at the top of their agendas.
• Others have not given it the same attention as they have given cost cutting, restructuring, or international expansion.
• Companies that isolate knowledge management risk losing its benefits, which are highest when it is coordinated with HR, IT, and competitive strategy.
• That coordination requires the leadership of the general manager.
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Don’t Isolate Knowledge Management• When CEOs and general managers actively choose a
knowledge management approach both the company and its customers benefit.
• When top people fail to make such a choice both suffer.• Customers may end up paying for a customized solution
when a standard solution would have worked perfectly well.
• Within the organization, employees will be confused about priorities.
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Don’t Isolate Knowledge Management
• The issue will quickly become politicized, and people will battle for resources without seeing the whole picture.
• Only strong leadership can provide the direction a company needs to choose, implement, and overcome resistance to a new knowledge management strategy.
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Choosing the right strategy
• Competitive strategy should drive the knowledge management strategy.
• What values do customers expect from the company?
• How does the knowledge that resides in the company add value to the customer?
• Clear answers are needed to make a knowledge management strategy.
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• Do company’s offer Standardized or customized products?
• Knowledge management is based on the reuse companies that create standardized products.
• Customized products are unique and vary dramatically, KM brings limited value.
• Do you have a mature or an innovative product?• Matured products normally benefit form the KM.
• Do people rely on explicit or tacit knowledge to solve problems?
• Tacit knowledge is hand to be codified whereas explicit can be easily stored.
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