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A Knowledge Management Model for Organizational Competitiveness

A Knowledge Management Model for Organizational Competitiveness. Speaker: Dr. Shy-Ming Ju 15 June 2011 Ton Duc Thang University. Introduction (1/2).

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A Knowledge Management Model for Organizational Competitiveness

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  1. A Knowledge Management Model for Organizational Competitiveness Speaker: Dr. Shy-Ming Ju 15 June 2011 Ton Duc Thang University

  2. Introduction(1/2) • Knowledge management (KM) is the process of identifying, capturing, organizing and disseminating the intellectual assets that are crucial to the organization’s long-term performance. • Today, KM becomes more important because of globalization, leaner organization, organizational memory lost, and technological advance.

  3. Introduction(2/2) • However, KM is complex due to the subjective and dynamic nature of knowledge and the cultural and contextual influences. • Therefore, a holistic KM model is needed to explain the key KM concepts and processes.

  4. Assessment of organizational competitiveness Evaluation of product/service quality Knowledge activities integrated into business processes Knowledge storage/access Measurement of KM performance Knowledge acquisition/creation Knowledge sharing/dissemination Knowledge application/adaptation Managerial infrastructure Technological infrastructure Social infrastructure A unified view of knowledge and information A KM Model for Organizational Competitiveness

  5. A Unified View ofKnowledge and Information(1/14) • Information may be recorded on digital medium (e.g., magnetic tapes, magnetic disc, optical disc, mass storage, flash memory) or non-digital medium (e.g., paper, cloth, wood, stone, metal, glass), called explicit information. • Information may also be held in human brain, called tacit information.

  6. A Unified View ofKnowledge and Information(2/14) • Explicit information can be processed by either human or computer. • Tacit information, on the other hand, can only be processed by the human who holds it.

  7. A Unified View ofKnowledge and Information(3/14) • Knowledge is the ability to apply explicit or tacit information for a problem or an issue (e.g., solving a problem, making a decision on an issue, or pursuing self-fulfillment on a subject) in a given context.

  8. A Unified View ofKnowledge and Information(4/14) • For a human, to apply the explicit or tacit information for a problem or an issue would require a certain level of competence in generalization and specialization, or the competence in induction and deduction.

  9. A Unified View ofKnowledge and Information(5/14) • For a computer, to apply the explicit or tacit information for a problem or an issue would require a special-purpose software program with induction and/or deduction logic in it.

  10. A Unified View ofKnowledge and Information(6/14) This concept of knowledge may be expressed formally as: { P, D, S, T }, { } stands for an ability, P is the required competence level of a human or computer to process the information relevant to this knowledge, D is the tacit or explicit information relevant to the domain of the problem or issue, S is the tacit or explicit information specific to the problem or issue at hand, T is a description of the problem or issue by a taxonomy, which may be tacit information or codified in the form of explicit information for computer retrieval.

  11. A Unified View ofKnowledge and Information(7/14) • Tacit knowledge is denoted as { Ph, Di, Si, Ti } in which the subscripts h and i stand for human and implicit, respectively. • For example, an author’s knowledge about writing a research paper would comprise: P - The author’s expertise related to the subject D - Review of literature S - The author’s insight to the subject T - The subject title and keyword

  12. A Unified View ofKnowledge and Information(8/14) • Tacit knowledge is difficult to describe because we do not know how human competence and tacit information are codified inside human brain. • However, since most of the knowledge assets in an organization are tacit knowledge, how to share them within an organization has become a major challenge of KM.

  13. A Unified View ofKnowledge and Information(9/14) • Explicit knowledge is denoted as { Pc, De, Se, Te } in which the subscripts c and e stand for computer and explicit, respectively. • For example, a computer’s knowledge about diagnosing a cardiac patient may comprise: P - An expert system shell which has the capability for logic inference D - Inference rules for cardiac diagnosing S - Symptoms and lab test reports the patient T - Medical service classification for cardiac diagnosing

  14. A Unified View ofKnowledge and Information(10/14) • Explicit knowledge that is codified according to a metadata standard is called a knowledge object, which can be stored in a knowledge repository for later retrieval. • Conversion between tacit- and explicit-knowledge takes place in the SECI-mode (Nonaka, Toyama and konno, 2000) and can be expressed formally as:

  15. A Unified View ofKnowledge and Information(11/14) • Socialization - This is where knowledge sharing takes place. { Pha, Di, Si, Ti } transient [(Pha and Phb), De, Se, Te]  { Phb, Di, Si, Ti } where [ ] stands for a collection of components; subscripts a and b indicate two individuals

  16. A Unified View ofKnowledge and Information(12/14) • Externalization - This is the precursor of knowledge storage and dissemination. { Ph , Di, Si, Ti } [ (Ph or Pc), De, Se, Te ]

  17. A Unified View ofKnowledge and Information(13/14) • Internalization It appears that people solve problems by consulting relevant explicit information; for example, fixing a defunct appliance by consulting a user’s manual. Technically, however, human brain must internalize the explicit information before it can act on it. [Ph, De, Se, Te]  { Ph , Di, Si, Ti }

  18. A Unified View ofKnowledge and Information(14/14) • Combination - This is where knowledge enhancement or adaptation takes place. { Ph , (Di1, Di2), Si, Ti }  { Ph , Di3, Si, Ti } where the tacit information Di1 and Di2 have been acquired through socialization or internalization; Di3 is the adapted or enhanced tacit information resulted from combination.

  19. Infrastructures for Supporting KM(1/17) There are three types of infrastructures for supporting KM: • Managerial infrastructure • Technological infrastructure • Social infrastructure

  20. Infrastructures for Supporting KM(2/17) Managerial infrastructure (1/4) • Knowledge leadership • Strategic leaders • Core leaders • Team leaders

  21. Infrastructures for Supporting KM(3/17) Managerial infrastructure (2/4) • Organizational culture • Emphasize knowledge values • Encourage knowledge sharing • Discourage the NIH-syndrome • Preach KM philosophy

  22. Infrastructures for Supporting KM(4/17) Managerial infrastructure (3/4) • Human resource management • Organizational structure that facilitates employee empowerment • Incentives that encourage knowledge sharing and use • Recruitment of appropriate knowledge competencies • Retention of tacit knowledge)

  23. Infrastructures for Supporting KM(5/17) Managerial infrastructure (4/4) • Work Practices • Any task must be executed according to a standard operating procedure (SOP). • If deficiency or improvement is found in an SOP, it must be documented for later update to the SOP. • The work practices foster knowledge externalization, utilization, and enhancement.

  24. Infrastructures for Supporting KM(6/17) Technological infrastructure (1/9) • Knowledge management system There are many possibilities which could be incorporated into a knowledge management system. However, the system should link closely with the needs of the particular organization, and aim to build a gradual, staged enhancement as users become more empowered. Core functions of a KMS may be:

  25. Infrastructures for Supporting KM(7/17) Technological infrastructure (2/9) • Internet and information portal, enabling effective search for relevant records and sources of knowledge and expertise in the organization • Ability of linking to or integrating with external application systems

  26. Infrastructures for Supporting KM(8/17) Technological infrastructure(3/9) • Identifying and pulling content from any system, regardless of differences in platform, location, language or server • Effective knowledge security management through the use of a single security access point

  27. Infrastructures for Supporting KM(9/17) Technological infrastructure (4/9) • Metadata standards • Metadata provide templates to enable uniform presentation of explicit information by a variety of contributors. • Metadata standards ensure that different human or computer processors can process codified explicit information correctly. • In this respect, XML is a widely-accepted and powerful data standard.

  28. Infrastructures for Supporting KM(10/17) Technological infrastructure (5/9) • Taxonomy schemes To provide a standard way of codifying problem/issue description for effective retrieval of knowledge objects.

  29. Infrastructures for Supporting KM(11/17) Technological infrastructure (6/9) • Knowledge repository Where codified explicit information and knowledge objects can be stored, indexed and retrieved. • Customer relationship management Staff may contribute insights, experiences and historical data to build customer profile which are accessible to all colleagues.

  30. Infrastructures for Supporting KM(12/17) Technological infrastructure (7/9) • Authoring support and content management • Providing non-technical interfaces for users to author, publish and control their content • Content version control and archiving • Email support and management

  31. Infrastructures for Supporting KM(13/17) Technological infrastructure (8/9) • Intelligent agents • Deduction-capable software such as expert system shell • Induction-capable software such as neuro-network shell • Natural language processor

  32. Infrastructures for Supporting KM(14/17) Technological infrastructure (9/9) • Collaboration support tools • Various communication channels • Web-conferencing • Group decision support • Project management • Workflow management

  33. Infrastructures for Supporting KM(15/17) Social infrastructure (1/3) • If knowledge resides primarily in people and it is people who decide to create, use and share their ideas to attain business results, then KM is as much about managing people as it is about managing information and IT. • Building an effective social environment within which people operate is a crucial requirement for effective KM .

  34. Infrastructures for Supporting KM(16/17) Social infrastructure (2/3) • Communities of practice Groups of people bound together by shared experience and passion to pursue new and effective ways of doing things.

  35. Infrastructures for Supporting KM(17/17) Social infrastructure (3/3) • Ba Any setting or arrangement that fosters socialization, externalization, combination, and internalization. • Mentoring One of the effective mechanisms to foster knowledge sharing.

  36. Knowledge Activities Integrated with Business Processes(1/10) There are four major types ofKnowledge activities: • Knowledge acquisition and creation • Knowledge storage and access • Knowledge sharing and dissemination • Knowledge application and adaptation

  37. Knowledge Activities Integrated with Business Processes(2/10) Knowledge acquisition and creation(1/3) • Tacit knowledge is acquired by identifying the person who owns the tacit knowledge and seeking his/her help. • Tacit knowledge is created solely by human, through socialization, internalization, and combination, for one’s own use.

  38. Knowledge Activities Integrated with Business Processes(3/10) Knowledge acquisition and creation(2/3) • Explicit knowledge is acquired by identifying the problem taxonomy and the required competence level of the human or computer processor, and obtaining the codified information relevant to the problem domain and that specific to the problem at hand .

  39. Knowledge Activities Integrated with Business Processes(4/10) Knowledge acquisition and creation(3/3) • Explicit knowledge is created by human through codification of the problem taxonomy, the required competence level of the human or computer processor, the information relevant to the problem domain, and the information specific to the problem at hand.

  40. Knowledge Activities Integrated with Business Processes(5/10) Knowledge Storage and Access(1/2) • Tacit knowledge is stored nominally by establishing an expertise directory, which tracks who owns what tacit knowledge. • Tacit knowledge is accessed by looking up the expertise directory to locate the expert and then seek his/her advice.

  41. Knowledge Activities Integrated with Business Processes(6/10) Knowledge Storage and Access(2/2) • Explicit knowledge can be stored in a knowledge repository. • Explicit knowledge can be accessed by using problem taxonomy as a locator to search the knowledge repository and then retrieve it from there.

  42. Knowledge Activities Integrated with Business Processes(7/10) Knowledge Sharing and Dissemination(1/2) • Tacit knowledge is shared through socialization. • Tacit knowledge dissemination is to make the expertise directory available to the concerned parties.

  43. Knowledge Activities Integrated with Business Processes(8/10) Knowledge Sharing and Dissemination(2/2) • Explicit knowledge sharing and dissemination can be done by storing the explicit knowledge in a knowledge repository and making it known through an information portal. • Anyone can then retrieve it from the knowledge repository anytime.

  44. Knowledge Activities Integrated with Business Processes(9/10) Knowledge Application and Adaptation(1/2) • If knowledge is not used then it is of no value. So, knowledge application should be encouraged.

  45. Knowledge Activities Integrated with Business Processes(10/10) Knowledge Application and Adaptation (2/2) • In most cases, the purpose and the domain of a given knowledge may not have a perfect match with the problem at hand; thus, adaptation is required. • Adaptation may increase the competence level of the processor and broaden the domain information, thus contributes to new knowledge

  46. Evaluation of service and Product Quality • Quality of products and services is the most fundamental embodiment of organization’s competitive advantage. • Everyone in the organization should know what the quality criteria are and place them under vigorous quality assurance. • Feedback from the stakeholders such as end-users and customers • Evaluation could be based on ISO quality standards

  47. Assessment of Organizational Competitiveness(1/3) • Competitive advantage varies from organization to organization. • Everyone in an organization, especially the top management, should know what kind of competitive advantage the organization has or should be developed to win over a real or imaginative competitor.

  48. Assessment of Organizational Competitiveness(2/3) • Sustainable competitive advantage depends on firm’s capacity to: • Develop and deploy its knowledge-based resources, including intellectual capital and human resource • Identify and retain its critical employees who possess deep knowledge that is necessary to enhance organizational competitiveness

  49. Assessment of Organizational Competitiveness(3/3) • Foster peer mentoring • Create and transfer knowledge effectively. Facilitate interaction between technologies, techniques, and people. • Shape a corporate culture favorable to

  50. Measurement of KM Performance(1/4) • Evaluating KM effectiveness in terms of: • People • Planning • Processes • Products and services.

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