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Knowledge Management

The Origin of Knowledge

by

B. Nugroho Budi Priyanto

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Topics• Differentiate: knowledge, information and

data

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Information vs KnowledgeInformation KnowledgeProcessed data Actionable information

Simply gives us the facts Allows making prediction, casual associations, or predictive decisions

Clear, crisp, structured, and simplistic Muddy, fuzzy, partly unstructured

Easily expressed in written form Intuitive, hard to communicate, and difficult to express in words and illustrations

Obtained by condensing, correcting, contextualizing, and calculating data

Lies in connections, conversations between people, experience-based intuition, and people’s ability to compare situations, problems, and solutions

Devoid of owner dependencies Depends on the owner

Handled well by information systems Also needs informal channels

Key resources in making sense of large volumes of data

Key resources in intelligent decision making, forecasting, design, planning, diagnosis, and intuitively judging

Evolves from data; formalized in databases, books, manuals, and documents

Formed in and shared among collective minds; evolves with experience, successes, failures, and learning over time

Formalized, captured, and explicated; can easily by packaged into an reusable form

Often emerges in minds of people through their experiences.

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Converts data to information

Data

Condensation

Calculate

Contextualization

Correction

Categorization

Information

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Creating InformationAddition to Data ResultCondensed Data is summarized in more

concise form, and unnecessary depth is eliminated

Contextualized We know why the data was collected

Calculated Analyzed data, similar to condensation of data

Categorized The unit of analysis is known

Corrected Errors have been removed, missing “data holes” have been accounted for

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Integration of Knowledge

Integration of knowledge creates new knowledge at the subsequent levels

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A map of some key facet of knowledge

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Comparing Tacit & Explicit KnowledgeCharacteristic Tacit Explicit

Nature Personal, context-specific Can be codified and explicated

Formalization Difficult to formalize, record, encode, or articulate

Can be codified and transmitted in a systematic and formal language

Development process Through trial and error in practice Through explication of TK understanding and interpretation of info.

Location Stored in the heads of people Documents, etc.

Conversion process To EK through externalization that is often driven by metaphors and analogy

IT support Hard to manage, share, or support with IT

Well supported by existing IT

Medium needed Needs a rich communication medium Can be transferred through conventional electronic channels

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KM system must support• Truth

• Judgment

• Experience

• Values, Assumptions, and beliefs

• Intelligence

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Fundamental processes in KM

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Levels of Professional Knowledge

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Learning company vs knowledge-leveraging company

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Retrofitting knowledge to the choice and implementation of IT & IT support functions (1)

Aspect Asset & Outcome Technology as Secondary Asset-Based Choice

What is managed Knowledge

Knowledge creation

Knowledge reuse

Knowledge integration

Hardware

Software

Communication network

Why managed it? Provide historical basis for decisions

Enabled sound decisions

Increase decision accuracy and choice efficiency

Implement reliable and high quality hardware, software, and communication systems

How do we manage it? Integrated, cross-functional approach

Include the entire extended enterprise, i.e., suppliers, consumers, consultants, vendors, and buyers

Integrated existing systems

Control costs

Make processes more efficient

Learn from mistakes

Reuse, not reinvent

Inventorize

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Retrofitting knowledge to the choice and implementation of IT & IT support functions (2)

Aspect Asset & Outcome Technology as Secondary Asset-Based Choice

Metrics and success criteria

Financial, tangible and intangible gains realized

Impact on performance

Impact on competitiveness

Timelines

Benchmark performance

A working KM system

A well-used KM system

A growing KM system

User increasingly contribute and demonstrate reciprocity

Who manages it? The CKO or equivalent manager

Individual organizational units using it

The CKO or equivalent managerial employee

The information technology function

Network service providers.

Practice leaders

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Three factors that distinguish company• Leveraged core competencies

• Continuous improvement of the value-added chain

• Ability to revitalized fundamentally

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Is your company ready for KM?• The scanning imperative:

– Does your company truly understand the environment in which is functions?

– Does it gather information about practices and condition outside the organization?

– Is there awareness about how your company’s internal operation compare with those of your competitors?

• Shared perception of performance gap• Metrics• Corporate culture• Knowledge champions• Strategic alignment• Begin with what you know

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Lesson learned• There are two primary types of knowledge• Experiential knowledge is stored in scripts• Knowledge is essentially collaborative and falters with

data-hoarding mentality• The five Cs for data to information• Managing knowledge is essential• Managing knowledge effectively can produce enviable

results• Beyond know-how towards care-why.• Intranets and extranets can be a starting point for building

a KM system• Success of a KM system depends on reciprocity• Is your company ready for KM?