Designing Knowledge Management Architecture How to implement successful KM Programs

1. Designing Knowledge Management ArchitectureHow to implement successful KM Programs Book By Prof Archana Shukla Prof R. Srinivasan Indian Institute of Management, Lucknow Publisher: Response Books Power point presentation prepared by Er Dileep Kumar Secretary, Association of Knowledge Workers

2. Introduction • In an economy where the only certainty is uncertainty, the one sure source of competitive advantage is knowledge. When market shift , technologies proliferate, competitors multiply, and products become obsolete almost overnight, successful companies are those that consistently create new knowledge, disseminate it widely throughout the organization, and quickly embody it in technologies and products- Nonaka,1991 • What significantly adds value and contributes to competitive advantage in the information and Technology age is the ability to manage “Knowledge” within the organization. • The Business environment forces are: Speed, Smart products and Service intensity, Globalization, Shortening product life cycle, and Network intensity

3. Difference in Information Management & KM • IM: focus on recording and processing explicit information • KM: Focus on capturing tacit and explicit information • IM: Takes information from multiple sources and organizes into database system • KM: takes information from one source and promotes reuse in other situations • IM: designed for centralized information storage and control • KM: designed for distributed access, storage and control • IM: emphasises inquiries to highly structured repositories • KM: Emphasizes collaboration and sharing • IM: Dependent on well defined inquiries for retrieval, productivity for efficiency • KM: Employs technologies (e.g. visualization) for knowledge discovery, productivity for innovation

4. Demystifying KM • IT is a significant enabler of the KM initiative , there is much more to KM than just IT infrastructure. • KM not only manages explicit knowledge but also tacit knowledge that is embedded in the systems, products, processes and in people’s minds. I.T. can at best capture explicit knowledge; and to capture tacit knowledge we need other complementary systems like periodic meetings, apprenticeships, mentoring and a culture of sharing • Focal point in KM is around people and not around technology. In order to motivate people to share and apply the knowledge that is managed , the KM program should relate to the organization’s purpose and strategy. The KM architecture should be evolved with reference to the corporate strategy and the strategic intent. KM emphasises on the creation and building of dynamic organizational/ personal capabilities to interact with the environment

5. KM Conceptualization • Organizational Knowledge: what an organization knows, how it uses what it knows and how fast it can know something new • Organizational Memory: An explicit , disembodied , persistent representation of knowledge and information in the organization • Knowledge Management: A systematic and organized attempt to generate knowledge within an organization that can transform its ability to store and use knowledge for improving performance • Types of Knowledge: Tacit and explicit • Tacit knowledge :is highly personal “something not easily visible and expressible”. Subjective insights, intuitions, and hunches fall into this category. It is deeply rooted in an individual’s action and experience, as well as in the ideals , values or emotions he or she embraces. Its two dimensions are : technical dimensions consisting of informal skills and crafts that are hard to document; and the cognitive dimension that encompasses schemata, mental models, beliefs and perceptions that are so engrained in people that they are actually taken for granted

6. Learning Cycle and the Strategic Process Of Learning • Learning Cycle consists of : concrete experiences, reflective observation, abstract conceptualization and active experimentation • Organizational Learning consists of :Organization picks up signals from the environment (Past , Present and Future) ,The organization analyses and reflects upon these experiences in the form of a situation audit where SWOT are analysed , The next stage is abstract conceptualization where the organization defines its purpose , vision / mission, goals/ objectives and generates strategic options. In the last stage , the organization implements the chosen strategy and monitors / evaluates the performance of the strategy. This feedback on performance provides the organization with a new set of experiences, leading to the next cycle

7. Concepts of KM ….contd • Knowledge Cycle: The progression is from events to data, information and knowledge • Tacit Knowledge Cycle: The progression is from Functional to Phenomenal, Semantic and application • An organization needs to manage all types of knowledge, either high on tacit dimension (like intuition) , or high on explicit dimension (like rules) • Modes of Knowledge Conversion within Organizations: from tacit to tacit across individuals through socialization with peers, tacit to explicit by externalization process, explicit to tacit by internalization process and from explicit to explicit by combination . Internalization is closely related to organizational learning. In externalization Metaphors, analogies figures, models are used to communicate tacit kn.

8. Knowledge Creation Process • Organization knowledge creation is a continuous and a dynamic interaction between tacit and explicit knowledge • Process of Knowledge Creation: • Enabling conditions, intentions, autonomy, fluctuation/ creative chaos, redundancy, requisite variety . (A). Externalization • 1.Sharing of Tacit Knowledge: we need to evolve norms and/ or systems of observation, documentation, reporting, and dissemination of practices , habits, working patterns, style and thought process • 2. Creating Concepts means sharing of tacit knowledge that corresponds roughly roughly to socialization. Sharing is facilitated through the creation of a field of interaction, where members share their experiences and mental models

9. Knowledge Creation Process…contd • Sharing Tacit Knowledge: The process starts with the ‘sharing of tacit knowledge’ that corresponds roughly to socialization. • Creating Concepts: The shared tacit models , when expressed in words and phrases , give rise to explicit concepts or creating concepts and give rise to externalization process. • Justifying Concepts: Concepts created are justified in the light of whether they are worthwhile for the organization to expend effort , time and resources • Building an archetype: When justified concepts are put to test in the form of an archetype or prototype, the organization enters in this phase

10. Knowledge Creation Process…contd • Cross-leveling of knowledge: It kicks off a new cycle of knowledge –generation based on prototype created. This new knowledge creation can happen either within organization or outside the organization (amongst its customers, supplier, competitors, affiliates etc) through dynamic interaction • Three major imperatives in this transformation: Use of metaphors and analogies ; transforming personal knowledge in organizational knowledge; and an organizational climate of chaos and redundancy • Metaphors are used in organizations to highlight certain distinctive people , behavior, products or processes • Analogies are more structured , and are used to highlight differences or similarities among concepts

11. Knowledge Creation Process, Three major imperatives in this transformation …contd • Organization wide dialogues, discussions, experience sharing, and observation can help in disseminating explicit individual knowledge among all in the organization, therefore, create ‘organizational knowledge’ • To transform tacit knowledge with individual to organizational knowledge , we need to evolve norms and / or systems for observations, documentation, reporting, and dissemination of practices, habits, working patterns, style and thought process. Another way of transformation is to create an organizational climate of chaos and redundancy. When directions from the top management are ambiguous , operational details are shifted to down to lower ranks of the hierarchy. This fosters lot of creativity within the organization

12. Organizational Knowledge Creation Process, .. • Enabling Conditions, intentions, autonomy, Fluctuation/ creative chaos, Redundancy, requisite variety • A +B = Internalization, C+D+E+F= Market • Externalization • 1.Sharing of tacit • knowledge • 2. creating Concepts B. Combination 3.Justifying Concepts 4. Building an archetype 5.Cross Leveline Knowledge C. From Collaborating organizations D. From Users E. Internalization By Users F. Explicit Knowledge As advertisement, patents Products/ services

13. Challenges in creating Organizational knowledge,out of individual knowledge 1. Unloading burden of past experience, arising out of organizational history. It blinds people from critically analyzing and confronting new data. 2. To break organizational defensive routines or norms of behavior 3. To overcome tunnel vision in people : people view context from their own perspective and other reason is organizational structure, culture and norms (e.g. functional silos, culture of conformity) 4. bounded rationality : individuals enact and create their own world. Organizations are socially constructed mental models residing in the minds of the individuals. A systematic initiative is therefore required to break these obstacles. 5.The main issue that arises ‘who in the organization is responsible for creation of knowledge’? Yes-no individual or department

14. The Process of Managing Knowledge in organizations • Stage 1: Capture-identify the required knowledge domains in alignment with KM strategy, locate the source of knowledge (internal/external), and acquire or generate the required knowledge • Stage2: Collate – classify/ codify the knowledge objects (document and create knowledge bases), synthesize (seek patterns across different knowledge objects), identify the target groups for the different knowledge objects , represent (refine, organize and present the knowledge objects in a user friendly manner) , and adapt (translate the knowledge objects to the local context) • Stage 3: Share- implement and maintain knowledge sharing systems (like groupware, email, bulletin boards, meetings, etc) and disseminate (to the relevant target groups)

15. The Process of Managing Knowledge in organizations • Stage 4: Capitalize-monitor usage, assess/ measure the benefits of knowledge management in terms of specified knowledge goals, get feedback, review and renew the knowledge bases (including identification of new knowledge to be captured), and embed knowledge into the organization’s value creation activities (products, services, and or information) • Cycle of Knowledge Management Process: The stages are mutually exclusive ; they are often concurrent, overlapping and do not necessarily progress sequentially Capture capitalize Collate Share

16. A frame work for implementing Knowledge Management Programs • As per Beckman(1999)Six perspectives of KM are: Conceptual, Process, Technology, Organizational, Management and Implementation • The Conceptual perspective includes variety of definitions as a field, characterization of the field of the KM in the dimensions like storage media, accessibility, typology, hierarchy and development of principles and frameworks for managing knowledge form part of the literature. • The Process perspective of KM is concerned with the specific steps involved in generating , formalizing, distributing, sharing and applying organizational knowledge • The Technological perspective focuses on the use of I.T. for implementing a KM program in the organization. It includes creation of a IT infrastructure , representation of the knowledge objects within the systems, formation of knowledge repositories and databases, combining these repositories into integrated Performance Support Systems (IPSS) and knowledge transformation by data mining etc

17. A frame work for implementing Knowledge Management Programs 4.The organizational perspective is concerned with with the internal organization that is created for spreading , evangelizing, and implementing KM e.g. KM task forces, Chief Knowledge Officer, KM specialists, etc. It deals with creating a culture of sharing, trust worthiness, collaboration and cooperation 5.The management perspective deals with the measurement and evaluation of the benefits of implementing a KM program for business goals, and the emergent rewards / incentives/ motivational systems for participation in KM program to individuals 6. The implementation perspective focuses on specific issues encountered in the implementation process- the building of IT infrastructure, identification of critical success factors for implementing KM, understanding the prerequisites and challenges, and integration of KM with business and corporate strategies All these perspectives should not be seen as independent of each other , but a continuum of decisions on KM strategy, KM objects, design, aligning HR practices and other processes like TQM, how KM is going to add value to the business imperative

18. Decisions in designing a KM program • Knowledge Architecture: decisions include knowledge mapping, i.e., ‘what knowledge is required for the business’ including objects required, their location, who needs, how to classify, and codify this knowledge in repositories, databases etc • Systems and Technology: includes implementation structures, systems for dissemination, access and usage; and technology used for accumulation , review, administration and access control of the knowledge base generated • People Issues: includes motivating people to participate in the KM program; creating a culture of knowledge sharing, institutionalizing awards,, incentives and peer recognition schemes, and aligning compensation and performance etc