Manfred Bornemann: Wissensmanagement 2013 KNOWLEDGE MANAGEMENT Division: Management Module: Special...

Manfred Bornemann: Wissensmanagement 2013

KNOWLEDGE MANAGEMENTDivision: Management

Module: Special Forms of Management


The students are introduced to knowledge as a key resource for organizations with properties significantly different to "classical resources" such as capital or labor. They identify the main drivers of Intellectual Capital and get an idea about strengths and weaknesses of Intellectual Capital in their organizations. Participants learn about the prioritization and systematic development of Intellectual Capital, they are introduced to selected methods and instruments and apply them on business situations.

Classification and strategic evaluation of knowledge and Intellectual Capital

Methods and instruments for knowledge management

Prioritization and implementation of knowledge management

Knowledge Management


At the end of this course youshould be able to…

… discuss the differences between intangible and tangible resources

… apply ideas of knowledge management strategies

… and selected methods to manage knowledge (instruments)

… differentiate strategic relevant drivers of Intellectual Capital

… apply a toolbox to document, assess and manage Intellectual Capital


Assessment methods and criteria

First attempt: learning checks at the end of each of the four learning units. Knowledge management is included in the final grade with 50% weight.

Second attempt: Oral examination over the entire syllabus. Knowledge management is included in the final grade with 50% weight.


Understandthe impactof knowledge

drivingchange

Time table / content structure

Part 2Part 1 Part 4

Measuring IC (quick check)

The Future of Management

Overview to references and players in KM

Summary of KM methods Exercise: present the

essentials of one KM instrument

Interpretation of QQS portfolio

Impact of Intellectual Capital? Causes and effects

Modeling the impact of change measures (case study)

Implementation of Knowledge Management

Summary

Basic ConceptsOf KnowledgeManagement

Management 2.0

KM methods inorganizations

Sam

TestPart 3

Analyses of Intellectual Capital

Introduction to Intellectual Capital Reporting

Application - first steps with the IC-toolbox

Individual exercise: definition of assessment questions

Intellectual Capital Statements as strategic KMInstrument

Introduction Attributes of

knowledge Model for KM Strategies for KM

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Objective of this lecture

• Students develop some ideas about the concepts of “Knowledge", “Intangible Assets", and “Intellectual Capital“.

• Students understand essential terminology and concepts of knowledge management and are able to relate them to other management fundamentals.

• We learn to apply the instrument of Intellectual Capital Reporting (toolbox) and use it to better understand some of challenges of knowledge management.

• A conceptual basic model provides the framework for our discussions. Additional references and some case studies support group interaction and reflection.


Grading

• individual tests– comprehension of KM

methods /– video comprehension

Reflection / Summary Hamel (participation)

– IC test (participation)– multiple choice test

(participation)

• teamwork– presentation of one

method of knowledge management (participation)

– presentation of an Intellectual Capital Statement as a case study (participation)


Dr. Manfred Bornemann

• Intangible Assets Consulting GmbH since 1996

• Implementation of IC reports in the German speaking Market

• Teaching assignments at several (applied) universities

• Member in the board of editors– International Journal for

Intellectual Capital Management– Knowledge Management

Research & Practice– The Learning Organization


The Story of Light

• To produce light for one candle for one hour, prehistoric man had to invest about an hour to collect wood or create torches and ignite them.

• That was a considerable effort and thus limited activity to the natural rhythm of day and night. Several steps of innovation from candles to oil lamps, using various wicks, allowed for the improvement of efficiency by not only providing more and better-quality light (in terms of candles), but also less labor and less unpleasant side effects (smoke, grime, risk of injury because of fire, etc.).

• According to Nordhaus (1998) one hour of labor today produces 350,000 times more light than a Babylonian man could consume with the same effort.

• Today, we create so much light at such a low cost that now the opposite of scarcity is the problem: light pollution in urban and densely populated areas with its negative effects on our well-being. Thanks to human creativity and effort, an awkward problem that consumed relevant resources was resolved. Yes, it took a very long time, because rates of innovation were extremely low for most of the period.

• But innovation rates accelerated tremendously from 0.003% per year from the Stone Age to the Middle Ages to 1% until roughly a century ago and 3% since then.

Source: http://cowles.econ.yale.edu/P/cp/p09b/p0957.pdf

http://www.ajoma.de/html/dark_sky.html


What EXACTLY supports OUR performance?

enterprises asblack box

• What is knowledge?• What attributes has

knowledge?• What is the impact of

knowledge?


team work of employees

three star chef

outstanding recipes

first grade supplies

good relations tosuppliers and partners


What exactly supports our performance?


Hard questions ???

• If Intangibles are our competitive advantage … how exactly do they look like?

• What is the status quo of intangibles in our eco system?• What is the source of intangibles? How are they developed systematically?• What is the impact of intangibles? Where do they have effects (industry,

governmental, social, science)?• How could we commercialize intangibles in SME structures in the medium

technology level (not: high tech sectors)?• How does this work right now – and how could it work? What are limiting

and supporting drivers?• Which management instruments and management philosophies are

beneficial?• What are the implications for management from the perspective of politics

and other stakeholders in these systems?• How would a task force be organized to first clarify these questions, to

provide answers and then to communicate them?


Hard questions in SMEs

• Which knowledge assets are available (resource based approach) – and what could we do with them? (Alternative: what would we like to accomplish – and what would it take to do so?)

• How can we grasp Intangibles? (examples: what is the difference between Microsoft and Apple or Oracle and SAP or Sturm and Rapid; what is the difference between a job applicant from university/FH or Harvard or BFI?

• What are our Value Propositions?• How can we balance a group and achieve homogeneity? (==> concept of people /

idea of men)• What prerequisites need to be accomplished to prevent erosion of competitive

advantages but grow them? (==> corporate values / culture / visions)• How can we transfer Intangibles? How to protect Intangibles?• What are the essential business models to utilized Intangibles?

==> requirements:• differences in perception … (based upon prior knowledge)• articulation and communicating perceptions• definition of categories / taxonomies to support connectivity• pattern recognition – complexity – interdisciplinary approaches


Praxishandbuch Wissensmanagement

Knowledge in a narrow and wide sense


Knowledge as a Resource

MONEY / tangible assets

• Increasing scale effects

• Transparent financial markets

• Money can be spent only once (it is scarce)

Intangibles

• decreasing scale effects

• Seller and buyer do not have the same level of information by definition.

• Intangibles are not scarce

(but TIME to learn is)


Justification and legitimation

• We discuss knowledge management because Knowledge and Intellectual Capital have different attributes than tangible or financial assets.

• We can share knowledge – an sharing (partially) increases the value of knowledge. At the same time, we still keep our knowledge.

• Intangibles are easy to copy or to reproduce (software, music, pdf-documents).

• Parallel, we face severe barriers (prior knowledge) and lock-in-effects (language, operating systems) that prevent or delay change.

• When used effectively, knowledge supports scale effects (e.g. technology, medical knowledge, consulting). Alternatively, mistakes in handling knowledge lead to full loss of competitive advantages (e.g. solar technology).


Objectives of KM

Short term• Avoid errors? Identify new strategies? • Improvement of processes / products?

Long term• Better accomplishment of strategic objectives! • Improvement of productivity (input/output)!• Better understanding of our own core competencies

(who? why? what? how? how better?• Establishment of a Learning Organization


Management?!

Karl Weick

source: http://faculty.fuqua.duke.edu/~charlesw/s591/Bocconi-Duke/Papers/new_C11/Cartographic%20Myths%20in%20Organizations.pdf


Basic model of KM

Source: Praxishandbuch Wissensmanagement


Knowledge is embedded in processes

Source: Praxishandbuch Wissensmanagement


strategic knowledge management

symbols

data

information

knowledge

applying

act

competency

+ syntax

+ meaning

+ context (experiences, expectations)

+ focus of application

+ strategic intent

+ act “correct”

+ uniqueness

competitive advantage

operational knowledge management

Source: North, K. (1999): Wissensbasierte Unternehmensführung: Wertschöpfung durch Wissen. 2. Aufl., Wiesbaden: Gabler.

A staircase model of knowledge


What is knowledge ?

than we can tell“Polanyi 1966

„We know more …

explicit knowledge

implicit knowledge


Different types of knowledge

knowledge private collective

explicitstored stable over time

implicithard to share, depending on action and person

private documents and competencies

documented processes, organi-zational structures, data, other docs

individual experiences, intuition, ability to think in abstract terms

established shared practices, values, un-codified rituals and norms


The SEKI model

Source: I. Nonaka & H. Takeuchi, The Knowledge Creating Company: How Japanese Companies Createthe Dynamics of Innovation (Oxford: Oxford University Press, 1995).

Manfred Bornemann: Wissensmanagement 2013Source: Praxishandbuch Wissensmanagement

Feedback loop of strategic Knowledge Management


Which knowledge strategy to apply?

Re

lativ

e im

po

rtan

ce

for th

e b

us

ine

ss

Tables

Written Documents

Knowledge Bases Systems

Siemens, 1998

FactsFacts

Creative Abilities

Codification Personalization

Process- and System models applied systems

Hypertext

Deliver Facts - Systematize - Correlate - Analyze - Plan - Arrange - Design Concept

Difficulty of the task



Best practice transfer with personalization and codification



pro and con for personalization and codification strategy

• Permanently available,• Useful for frequent reuse• Simple and fast

transferability

• Knowledge remains updated

• Complexity of knowledge transfer is flexible

• Potential for learning and innovation for each transfer

• Costly and difficult codification process

• Danger of outdated knowledge base

• Lacking context • Diverging mental models

make utilization difficult

• Sometimes hard to identify ideal expert

• Experts might not be available

• Inter-personal dislikes

codification

personalization


Examples form consulting

Source: Hansen / Nohira, HBS, 1999



Knowledge activities based on Probst et al.


Bergeron, Bryan: Essentials of Knowledge Management, Wiley 2003

Knowledge activities by Bergeron



drivingchange


Part 2Part 1 Part 4










Summary


Management 2.0


Sam

TestPart 3








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Flash IC assessment Die 3 Minuten Wissensbilanz - Fragebogen zum Intellektuellen Kapital

Faktor Bedeutung Ausprägung PotentialportfolioWie wichtig? Wie gut?

0-10 0-10

HK1 FachkompetenzHK2 Soziale KompetenzHK3 FührungskompetenzHK4 MitarbeitermotivationSK1 Interne Kooperation / WissenstransferSK2 Prozess- und VerfahrensinnovationSK3 ProduktinnovationSK4 FührungsinstrumenteSK5 IT & explizites WissenSK6 UnternehmenskulturBK1 KundenbeziehungenBK2 LieferantenbeziehungenBK3 Beziehungen zu KapitalgebernBK4 Bez. zu KooperationspartnernBK5 Bez. zur Öffentlichkeit

Bedeutung: Wie wichtig ist dieser Faktor Ihrer Meinung nach, um Ihre Unternehmensziele zu erreichen? 10 wäre sehr wichtig, null unwichtigAusprägung: Wie gut ist dieser Faktor Ihrer Meinung nach in Ihrer Firma ausgeprägt? 10 wäre sehr gut und ausreichend um Ihre Ziele zu erreichen.

handeln

analyisieren

stabilisieren

Ausprägung

Bed

eutu

ng

Kein Handlungsbedarf

www.wissensbilanz-schnelltest.de


Useful material for KM

• Prowis is a collection of knowledge management instruments with several examples provided by the German BMWIhttp://www.prowis.net/prowis/sites/default/files/pdf/Literatur/Leitfaden/prowis_leitfaden_fraunhofer_web.pdf

• EU-guideline for knowledge management ftp://cenftp1.cenorm.be/PUBLIC/CWAs/e-Europe/KM/German-text-KM-CWAguide.pdf

• GfWM - Landkarte zu Wissensmanagementhttp://gfwm-online.de/files/GfWM-Wissenslandkarte.pdf

• Studie zum Wissensmanagement (Pawlowsky et al)http://www.bmwi.de/BMWi/Redaktion/PDF/S-T/studie-wissenmanagen,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf

• D-A-CH Glossar Wissensmanagementhttp://wm-wiki.wikispaces.com/file/view/D-A-CH_Wissensmanagement_Glossar_v1-1.pdf


Associations active in KM

• Plattform Wissensmanagementwww.pwm.at

• Wissensmanagement Forumwww.wm-forum.org

• Gesellschaft für Wissensmanagementwww.gfwm.de



drivingchange

time table / content structure

Part 2Part 1 Part 4










Summary


Management 2.0


Sam

TestPart 3








break


some more quotes

• In the old economy, the challenge for management was to make product. Now the challenge for management is to make sense. (John S. Brown)

• Treat people as if they were what they ought to be and you help them become what they are capable of becoming. (W. Goethe)

• Before you become too entranced with gorgeous gadgets and mesmerizing video displays, let me remind you that information is not knowledge, knowledge is not wisdom, and wisdom is not foresight. Each grows out of the other, and we need them all. (Arthur C. Clark)


exercise

• Please extract the main ideas of the following video link.

• After watching the video, you have 5 minutes for a brief summary and personal comment.


https://www.youtube.com/watch?v=K3-_IY66tpI


Reflection Hamel

• What are the main points of Hamel?


Routine processes and knowledge intensive processes



Bridging the knowledge gap




Examples of KM instruments


Streuung Ausprägung

0

1

2

3

4

5

6

7

8

9

10

Fachk

ompe

tenz

Sozial

e Kom

pete

nz

Führu

ngsk

ompe

tenz

Mita

rbeit

erm

otiva

tion

Inte

rne

Koope

ratio

n un

d W

issen

stran

sfer

Proze

ss- u

nd V

erfa

hren

sinno

vatio

n

Produ

ktinn

ovat

ion

Führu

ngsin

strum

ente

Info

rmat

ionste

chnik

& e

xpliz

ites W

issen

Kunde

nbez

iehun

gen

Liefe

rant

enbe

ziehu

ngen

Bezieh

unge

n zu

Kap

italge

bern

Bezieh

unge

n zu

r Koo

pera

tions

partn

ern

Bezieh

unge

n zu

r Öffe

ntlic

hkeit

0

1

2

3

4

5

6

7

8

9

10Humankapital Strukturkapital Beziehungskapital

• What exactly is the meaning of these drivers?• What exactly is the reference or scale?• Why is the deviation of scoring in our team so substantial?

example of the status quo of Intellectual Capital in an SME

Maximum

Minimum

Average


Primary field of intervention in Knowledge Management

internal COMMUNICATION and knowledge transfer


7 8

3 4

local global context

Typ

e of

kno

wle

dge

expl

icit

taci

t

Routin

eno

n-ro

utine

type o

f tas

k

Challenges for knowledge transfer

5 6

1 2

Bornemann, based on: Nancy Dixon: Common Knowledge, HBSP, 2000


Methods

1. Chat Forum; blackboards, checklist2. Intranet, manuals3. local Project archive, 4. global Project archive incl. maintenance5. Mentoring, personal coaching, team meeting - usually

no top down implementation possible; awareness creation

6. corporate meetings, lessons learned workshops, C.U., Yellow pages, staff rotation, ???

7. little intervention! Allow for time budget (subsidiary)8. story telling, personnel rotation


Which measures are supported? Where is demand for more?

Art

des

Wis

sens

expl

izit

taci

t

Routin

e

Nichtro

utin

e

Art de

r Aufg

abe

7 8

3 4

local global

Kontext

5 6

1 2

explicit methods1) existing, room for improvement

2) quite well implemented

3) only partially available

4) Not available – implementation is currently not yet discussed

implicit methods5) yes – still room for improvement

6) Not yet, but already planned as learning platform

7) yes

8) Not really, partially covered from Robert

methods:1Chat Forum; blackboards, checklist

2 Intranet, manuals

3 local Project archive,

4 global Project archive incl. maintenance

5 Mentoring, personal coaching, team meeting - usually no top down implementation possible; awareness creation

6 corporate meetings, lessons learned workshops, C.U., Yellow pages, staff rotation, ???

7 little intervention! Allow for time budget (subsidiary)

8 story telling, personnel rotation Caution: case - dependent!!!


Some more methods of Knowledge Management

Wissensmanagement im 21. Jahrhundert

Quelle: Deutsche Gesellschaft für Personalführung e.V. 2002.



Methods for “Business Process oriented KM”

Manfred Bornemann: Wissensmanagement 2013Praxishandbuch Wissensmanagement

Tools for “Business Process oriented KM”


Group exercise

• Please use all available source to learn about these methods and instruments for KM.– Prowis Shop– EU-guideline for KM– Glossary of GfWM– Wikipedia – „knowledge management“

• Which of them are of most interest for you? Please select one and provide a short presentation – use the template in the next slide– objective/ focus of application– implementation– cost / benefits


Method:

• objective/ focus of application

• implementation

• cost / benefits

names of team members


Reflection of methods

Which method is most reasonable for US???


Diagnosis and codification

Source: Internet 2003 – Links dead



drivingchange


Part 2Part 1 Part 4










Summary


Management 2.0


Sam

TestPart 3








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Methods to assess Knowledge and Intangible Assets


Measuring knowledge with

„Wissensbilanz – made in Germany“

please install this toolbox http://www.akwissensbilanz.org/Toolbox/WB-TB2.zip


What is an Intellectual Capital Statement ?

An Intellectual Capital Statement is an instrument to document and report the development of Intellectual Capital of an organization.

It relates corporate objectives, business processes and Intellectual Capital with business performance of an organization and takes advantage of indicators.Quelle:

Leitfaden Wissensbilanz – Made in Germany.Bundesministerium für Wirtschaft und Arbeit in Zusammenarbeit mit dem Arbeitskreis Wissensbilanz. www.akwissensbilanz.org

D



Focus of an Intellectual Capital Statement


Business Environment(opportunities & risks)

Organization

Model for Intellectual Capital Statements by AKWB

Business ProcessesBusiness Processesactionsbusiness strategyknowledge-

vision andobjectives

businessperformance

Financial &.tangibleCapital

initial-situation

Knowledge processes

HumanCapital

StructuralCapital

RelationalCapital

Intellectual Capital

externalimpact

Source: www.akwissensbilanz.org



Differentiation of Intellectual Capital


typical drivers of IC

Human Capital• Employee qualifications• Management competencies• Social Skills • Engagement of employees

Structural Capital• Corporate culture• Communication • Organization• Innovation

Relational Capital• Customer relations • Stakeholder relations• Supplier relations

ImageWachstum

MA-Zufriedenheit

Flexibilität/Prozessorganisation

Innovation

MA-Qualifizierung

Nutzen von Erfahrungen

Erfüllungsgrad Kundenanforderungen: PREIS LIEFERZEIT Technische

Ausführung

Kundenzufriedenheit

Vertraute Kommunikation

Prozessleistung

Gute Geschäftsbeziehungen

Prozessqualität

Fertigungsprozess

Unternehmenskultur

Engineeringprozess (auch Vertrieb)

Gewinn/Umsatz

0%

20%

40%

60%

80%

100%

120%

0% 20% 40% 60% 80% 100% 120%

Qualität

Qu

anti

tät

Systematik

Optimaler Bereich

strengths and weaknesses

1,9

2004(Stand: 31.8.)

Bewertung Ziel

Mitarbeiter motivieren undFührungskompetenz aufbauen

MA-Fluktuation(= Zugänge + Abgänge/durchschnittl. Anzahl MA)

4Auszubildende

Mitarbeiterweiterbildung

3,3Weiterbildungstage proMitarbeiter

21Akademiker

8Fachkräfte

4Ungelernte Arbeitskräfte(Studium ohne Abschluss)

...

Mitarbeiterausbildung

52,1Anzahl der MA gesamt

20032002Humankapital

62,3 53

21

8

4

3

2,6

27,3% 31,4% 25,7%

4

1,9

2004(Stand: 31.8.)

Bewertung Ziel



4Auszubildende



21Akademiker

8Fachkräfte


...




1,9

2004(Stand: 31.8.)

Bewertung Ziel



4Auszubildende



21Akademiker

8Fachkräfte


...




62,3 53

21

8

4

3

2,6

27,3% 31,4% 25,7%

4

Indicators

Interdependencies and prioritizaition

0,25J - 1J

1J - 2J

0,25J - 1J

1J - 2J

0,25J - 1J

0,25J - 1J

1J - 2J

>2J

1. Leistungs-prozesse

8. Kooperation/ Kommunika-tion/Wissens-

transfer

10. Produkt-

innovation entwickeln

12. Beziehungs-

manage-ment zu Kunden

27. Finanzieller

Erfolg

28. Image/Marke

5. MA-Motivation/Führungs-kompetenz

Starke Wirkung

Sehr starke Wirkung

Regelkreis

J = Jahr

source: www.akwissensbilanz.org


Project plan to implement an Intellectual Capital Statement

Vorbereitung(Projektstart)

Workshop 1Einflussfaktoren,QQS-Bewertung

Erfolgsfaktoren und Indikatoren erheben

Workshop 2WirkungsanalyseInterpretationMaßnahmen

Pro

jekt

tea

m

Ge

sch

äft

s-fü

hru

ng

Inte

rne

A

rbe

iten

Nachbereitung undDiagnose

Wissensbilanzzusammenstellen

Laufzeit 3-6 Wochen

Workshop 3Wissensbilanzfinalisieren (intern)



•Geschäftsprozesse•Geschäftserfolg

› Gewinn› Image/Marke

•Humankapital› Fachkompetenz› Management- und

Sozialkompetenz› Mitarbeitermotivati

on •Strukturkapital

› Unternehmenskultur

› Kommunikation und Organisation

› Innovationen•Beziehungskapital

› Beziehungen zu Kunden

› Beziehungen zu Kooperationspartnern

› Beziehungen zu Stakeholdern

Beschreibung von Strategie, Vision, Geschäftsprozessen und -umfeld sowie Definition von Geschäfts-erfolgen

Festlegung der Einflussfaktoren des intellektuellen Kapitals

Bewertung der Einflussfaktoren nach Qualität, Quantität und Systematik

Ermittlung der Einflussfaktoren mit der größten Hebelwirkung

Priorisierung der Einflussfaktoren gemäß ihrem Verbesserungs-potenzial und ihrer Hebelwirkung

Definition geeigneter Maßnahmen zur Optimierung der priorisierten Einflussfaktoren

Erstellung eines Abschluss-berichtes

Maßnahmen WissensbilanzAuswertungGeschäftsmodell WirkungBewertungIntellekt. Kapital

1

2

1

2

1

2

1

3

2

source: www.akwissensbilanz.org


group exercise

• Please install the Wissensbilanz Toolbox http://www.akwissensbilanz.org/Toolbox/WB-TB2.zip

• Please start with the „demo project“ and ad three drivers of Intellectual Capitals including definitions that seem important for your case.

• Formulate adequate questions for the QQS-Dimensions for these three new drivers

• Assess these drivers according to strategic priorities and document the reasoning in the text box

• Optionally, adopt other drivers to your case in terms of quantitative measures



drivingchange


Part 2Part 1 Part 4










Summary


Management 2.0


TestPart 3








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Focus of intervention

What are the consequences of measures for improvement?


Prioritization



Example of system dynamics of IC


What EXACTLY supports OUR performance?

enterprises asblack box

• What is knowledge?• What attributes has

knowledge?• What is the impact of

knowledge?


0,25J - 1J

1J -2J

0,25J -1J

1J -2J

0,25J - 1J

0,25J - 1J

1J -2J

>2J

1. Core -process

8. Cooperation/ Communika-tion/ -

10. Product-

innovation

12. Customer -

Relations-

27. Financial

Result

28. Image/

5. employee-Engagement/

-

Making complexity visible


0,25J -1J 1J -2J

0,25J -1J

1J -2J

0,25J -1J

0,25J -1J

1J -2J

>2J

1. Leistungs-prozesse

8. Kooperation/ Kommunika-tion/Wissens-transfer

10. Produkt-innovation entwickeln 12. Beziehungs-manage-ment zu Kunden

27. Finanzieller Erfolg

28. Image/Marke

5. MA-Motivation/Führungs-kompetenz

Is our „business model“ supporting our objectives … ?!

Do we actually have a shared understanding of our business model?

What is it?


group exercise 2

• What is the interaction between Intellectual Capital and business processes?

• What is the impact of KM Methods in this system?

• What are likely consequences of the intervention (future outlook / forecast)?

• Please upload your WBP file to moodle. Include the names of all people involved in the file name.


Driver and measure

Visualization of interdependencies:

Definition of status quo und Context / interpretation of the generator / future outlook


Discussion of the impact of IC


What exactly are the benefits of an Intellectual Capital Statement ?

We understand the value creation process better and can optimize it for the future – together.

• Improved transparency about the most important drivers of Intellectual Capital.

• Shared mental models, about the contribution of each driver to the strategic priorities.

• Clarity about areas of intervention and measures to develop the organization.



Scheme for implementing KM



Example for the life cycle of KM


Summary


Potential benefits of KM

quantitative

• cost saving• greater customer acquisition rate• improved bottom line• improved profit margin• increased corporate valuation• increased customer loyalty behavior• increased customer retention• increased market share• increased repeat purchases• increased stock valuation• reduces cost of sales

qualitative

• better management of ideas• decreased likelihood of employee

defection• greater customer loyalty• increased collaboration with customers• increased customer satisfaction• increased innovation • increased knowledge worker

empowerment• increased knowledge worker productivity• increased knowledge worker satisfaction• increased market leadership• increased organizational stability• increased understanding of customer

needs• positive cultural change


KM and cost-benefit?

Level of organizational development

Relation cost/benefit

accounting

high

low

process management

quality management

information management

knowledge managementonly after securing a minimum proficiency, the next challenge shall be targeted.

Knowledge management depends on other management functions and their structures.

low high

corporate culture

human res. management

Bornemann, 2002


Summary (1)

• KM is complex and expensive and attractive only for mature organizations.

but:

• “thriving organizations" without KM will lose their competitive advantages quite soon.


Summary (2)

• KM is “simple" – if you know the concepts (e.g. St. Gallener Modell / WMF / GfWM / ...)

• KM depends on strategy and objectives • KM will change ALL processes• KM is not enforceable (HC =/= financial capital)• KM builds on the idea of man and influences recruiting• KM depends on corporate culture (Collaboration /

Participation / division and integration of labor / ... )• KM must be supported top down

There is no standard remedy for KM available. New technologies shift the edge and lower barriers of entry.


Summary (3)

• because of rising complexity• because of exponential differentiation of products and services • because of increasing customization and fractioning of markets

differences are marginal but have substantial implications on productivity and performance of an organization .

In the future, the integration of Intellectual Capital and processes in organizations will depend on contextual understanding, which will be harder to acquirer (Pisa), while factual knowledge most likely will be available easy and cheap.

This might lead to paradox developments: • knowledgeable and (formally) educated integrators will be paid

handsomely, • dedicated specialists will attract nice checks too,• and all others might – because of lacking differentiation – fall behind.


“Wer nur kann, was alle schon können... und nur weiß, was alle

schon wissen, kann auch nur tun, was bereits alle tun können.

Wettbewerbserfolg, setzt immer den Willen, die Kraft und die

Fähigkeit voraus, anderen mit eigenständigen

Wissensfortschritten und Problemlösungen

voranzugehen”

Prof. Hubert Markl, Präsidentder Max-Planck-Gesellschaft

“Knowledge Management is expensive – but so is stupidity!”

Thomas Davenport

“The saddest aspect of life right now is that science gathers knowledge

faster than society gathers wisdom.” Issac Asimov

“Now that knowledge is taking the place of capital as the driving force in organizations worldwide, it is all too easy to confuse data with knowledge

and information technology with information.”Peter F. Drucker


Multiple Choice Test

• This test is essential for the individual grading • All answers are available on these slides• More than one answer is allowed.• No supporting material / technologies are

accepted.

• Additionally, please refer to the standards of Campus02

All the best


Literature and recommended reading with general focus

• WMF: guideline for knowledge management• Al Ali: Comprehensive Intellectual Capital Management,

2003• Wiig: People focused knowledge management, 2004• Dierkes et al: Handbook of Organizational Learning and

Knowledge, 2003• Easterby-Smith: Handbook of Organizational Learning

and Knowledge Management, 2011• Al-Laham: Wissensmanagement, 2003• Harvard Business Review on Knowledge Management

1998

Manfred Bornemann: Wissensmanagement 2013 KNOWLEDGE MANAGEMENT Division: Management Module: Special...

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