al hawamdeh 2002 - km

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Knowledge management: re Knowledge management: re Knowledge management: re Knowledge management: re- -thinking thinking thinking thinking information management and facing the information management and facing the information management and facing the information management and facing the challenge of managing tacit knowledge challenge of managing tacit knowledge challenge of managing tacit knowledge challenge of managing tacit knowledge Suliman Al-Hawamdeh School of Communication and Information  Nanyang Technological University Singapore Abstract Abstract Abstract Abstract K n o w l e d g e m a n a g e m e n t h a s g e n e r a t e d m u c h i n t e r e s t i n r e c e n t y e a r s a n d h a s b e c o m e t h e l a t e s t m a n a g e m e n t b u z z i n t o w n . M a n y p e o p l e s t a r t w o n d e r i n g w h e t h e r k n o w l e d g e m a n a g e m e n t i s h e r e t o s t a y o r i t i s j u s t a n o t h e r c o n s u l t a n c y f a d . T o p u t t h i n g s i n p e r s p e c t i v e , i t i s i m p o r t a n t t o l o o k a t t h e s e q u e n c e o f e v e n t s t h a t l d t o t h e r i s e o f k n o w l e d g e m a n a g e m e n t . T h e a r r i v a l o f t h e i n f o r m a t i o n s o c i e t y a n d t h e m o v e t o w a r d t h e k n o w l e d g e -  b a s e d e c o n o m y h i g h l i g h t e d t h e i m p o r t a n c e o f t a c i t k n o w l e d g e a n d t h e n e e d t o m a n a g e k n o w l e d g e r e s o u r c e s i n c l u d i n g s k i l l s a n d c o m p e t e n c i e s . K n o w l e d g e m a n a g e m e n t a s a c o n c e p t w i t h p e o p l e t a k i n g t h e c e n t r e s t a g e h a s p r o m p t e d u s t o r e t h i n k i n f o r m a t i o n m a n a g e m e n t a n d s h i f t f o c u s f r o m t r y i n g t o d e v e l o p i n t e l l i g e n t s y s t e m s t o t h a t o f d e v e l o p i n g t o o l s f o r i n t e l l i g e n t p e o p l e . I t i s t h i s r e a l i z a t i o n i n m y o p i n i o n t h a t m a k e s k n o w l e d g e m a n a g e m e n t a t t r a c t i v e t o m a n y o r g a n i z a t i o n s . W h i l e t h e f o c u s i n i n f o r m a t i o n m a n a g e m e n t i s m o s t l y o n e x p l i c i t k n o w l e d g e , k n o w l e d g e m a n a g e m e n t b r i n g s a n e w d i m e n s i o n , t h e n e e d t o m a n a g e t a c i t k n o w l e d g e b y f o c u s i n g o n p e o p l e a n d n h a n c e t h e i r c a p a b i l i t y b y i m p r o v i n g c o m m u n i c a t i o n , i n f o r m a t i o n t r a n s f e r a n d c o l l a b o r a t i o n . Introduction Knowledge and innovation played an important role in the development of society. The transformation from an agrarian society to the information society has largely been brought about as a result of accumulation of knowledge through the centuries. Knowledge by its very nature depends on other knowledge to build on. Knowledge creation is, in fact, a process of value addition to previous knowledge through innovation (Duffy, 1999; Narayanan, 2001). This also implies that the more knowledge we already possess the more we will be in a position to create and transfer to others. The key to economic success is always linked to the advances in knowledge creation and the ability of a  Information Research, Vol. 8 No. 1, October 2002 Page 1 of 15 Knowledge management: re-thinking information management and facing the challen... 13/9/2010 http://informationr.net/ir/8-1/paper143.html

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Knowledge management: reKnowledge management: reKnowledge management: reKnowledge management: re----thinkingthinkingthinkingthinkinginformation management and facing theinformation management and facing theinformation management and facing theinformation management and facing the

challenge of managing tacit knowledgechallenge of managing tacit knowledgechallenge of managing tacit knowledgechallenge of managing tacit knowledge

Suliman Al-Hawamdeh

School of Communication and Information Nanyang Technological University

Singapore

AbstractAbstractAbstractAbstract 

K n o w l e d g e m a n a g e m e n t h a s g e n e r a t e d m u c h i n t e r e s t i n

r e c e n t y e a r s a n d h a s b e c o m e t h e l a t e s t m a n a g e m e n t b u z z

i n t o w n . M a n y p e o p l e s t a r t w o n d e r i n g w h e t h e r k n o w l e d g e

m a n a g e m e n t i s h e r e t o s t a y o r i t i s j u s t a n o t h e r

c o n s u l t a n c y f a d . T o p u t t h i n g s i n p e r s p e c t i v e , i t i s

i m p o r t a n t t o l o o k a t t h e s e q u e n c e o f e v e n t s t h a t l e d t o t h e

r i s e o f k n o w l e d g e m a n a g e m e n t . T h e a r r i v a l o f t h e

i n f o r m a t i o n s o c i e t y a n d t h e m o v e t o w a r d t h e k n o w l e d g e -  

b a s e d e c o n o m y h i g h l i g h t e d t h e i m p o r t a n c e o f t a c i t

k n o w l e d g e a n d t h e n e e d t o m a n a g e k n o w l e d g e r e s o u r c e s

i n c l u d i n g s k i l l s a n d c o m p e t e n c i e s . K n o w l e d g e

m a n a g e m e n t a s a c o n c e p t w i t h p e o p l e t a k i n g t h e c e n t r e

s t a g e h a s p r o m p t e d u s t o r e t h i n k i n f o r m a t i o n m a n a g e m e n t

a n d s h i f t f o c u s f r o m t r y i n g t o d e v e l o p i n t e l l i g e n t s y s t e m s

t o t h a t o f d e v e l o p i n g t o o l s f o r i n t e l l i g e n t p e o p l e . I t i s t h i s

r e a l i z a t i o n i n m y o p i n i o n t h a t m a k e s k n o w l e d g e

m a n a g e m e n t a t t r a c t i v e t o m a n y o r g a n i z a t i o n s . W h i l e t h e

f o c u s i n i n f o r m a t i o n m a n a g e m e n t i s m o s t l y o n e x p l i c i t

k n o w l e d g e , k n o w l e d g e m a n a g e m e n t b r i n g s a n e w

d i m e n s i o n , t h e n e e d t o m a n a g e t a c i t k n o w l e d g e b y

f o c u s i n g o n p e o p l e a n d e n h a n c e t h e i r c a p a b i l i t y b y

i m p r o v i n g c o m m u n i c a t i o n , i n f o r m a t i o n t r a n s f e r a n d

c o l l a b o r a t i o n .

Introduction

Knowledge and innovation played an important role

in the development of society. The transformationfrom an agrarian society to the information societyhas largely been brought about as a result ofaccumulation of knowledge through the centuries.Knowledge by its very nature depends on otherknowledge to build on. Knowledge creation is, infact, a process of value addition to previousknowledge through innovation (Duffy, 1999;Narayanan, 2001). This also implies that the moreknowledge we already possess the more we will be

in a position to create and transfer to others. Thekey to economic success is always linked to theadvances in knowledge creation and the ability of a

 Information Research, Vol. 8 No. 1, October 2002

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nation in translating knowledge into products andservices. But while knowledge existed since theexistence of mankind, it is only recently that it hasbeen recognized as a factor of production. Manypeople have recognized that knowledge is the onlymeaningful economic resource in the knowledge

society (Foray & Lundvall, 1996; Johnston & Rolf,1998). It has been now recognised as the driver ofproductivity and economic growth, leading to a newfocus on the role of information, technology andlearning in economic performance. The term'knowledge-based economy' stems from thisrecognition of the place of knowledge andtechnology in modern economies.

Knowledge creates knowledge and in the processbrings competitive advantage and leads to wealthcreation. Prusak (1999) pointed out that due to theabstract nature of knowledge, traditional economicsand general scholastic research in the past did notreally focus on it. He added that knowledge wastreated as a “black box” which enabled thetransformation of inputs to outputs. Davenport andPrusak stated:

K n o w l e d g e i s a f l u i d m i x o f f r a m e d e x p e r i e n c e , v a l u e s ,

c o n t e x t u a l i n f o r m a t i o n , a n d e x p e r t i n s i g h t t h a t p r o v i d e s a

f r a m e w o r k f o r e v a l u a t i n g a n d i n c o r p o r a t i n g n e w

e x p e r i e n c e s a n d i n f o r m a t i o n . I t o r i g i n a t e s a n d i s a p p l i e d i n

t h e m i n d s o f k n o w e r . I n o r g a n i z a t i o n s , i t o f t e n b e c o m e s

e m b e d d e d n o t o n l y i n d o c u m e n t s o r r e p o s i t o r i e s b u t a l s o

i n o r g a n i z a t i o n a l r o u t i n e s , p r o c e s s e s , p r a c t i c e s , a n d

n o r m s . ( D a v e n p o r t & P r u s a k , 1 9 9 8 : 5 )

Knowledge embodied in books and journals does notnecessarily translate into useful and usableknowledge unless it is read, manipulated andcommunicated from one person to another. In otherwords, knowledge can only reside in the minds ofpeople and the minute it leaves the human mind, it isinformation. However, not all types of knowledgecan be codified and captured. Knowledge in the formof skills and competencies can only be transferredfrom one person to another through interaction.Information management on the other hand dealswith knowledge that can be captured, processed andmanaged. Sveiby in 1996 proposed the IT track andthe People Track approach to knowledgemanagement. The IT track focuses on themanagement of information. The knowledge

management activities comprise the construction ofinformation management systems, artificialintelligence, data mining and other enabling

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technologies. In this case knowledge can be treatedas objects that can be identified and handled in aninformation system. The People track focuses onthe management of people. The core knowledgemanagement activities encompass assessing,changing and improving human individual skills

and/or behaviour. It is a complex set of dynamicskills and know-how that is constantly changing.This simple approach to defining knowledgemanagement, as an IT Track and People Track doesnot take into account knowledge embodied inprocesses and workflows or generated as a result ofpeople interacting with information systems and theenvironment around them. An expert in oneorganization might not perform with the samecapacity when moved to another organization.

According to Brown and Druguid (1998), knowledgeis not a property of individual but rather heldcollectively by people working together. 'Know how'is a knowledge created out of practice andcollectively shared by workgroup.

Understanding tacit knowledge

Everyone is more or less agreed that explicitknowledge is information. Information managementand systems is a very well established area and

many of us familiar with the techniques and methodsused for processing and managing information. Theconfusion surrounding knowledge managementseems to be contributed largely to the lack ofunderstanding of tacit knowledge. Tacit knowledgeis a type of knowledge that many people believethat can only exist in the human minds. It is aproduct of people interaction with each other andthe people interaction with the environment aroundthem. Polyni (1958, 1966) referred to tacitknowledge as something that we do unconsciouslyand most of the time we are not aware of itsexistence. Knowledge in the form of skills andcompetencies is normally acquired through trainingand interaction with the environment. It is not onlydifficult to articulate, but according to Polyni, it issomething that we cannot express and even we donot know. He explains, 'we can know more than wecan tell'.

From my experience working as a consultant to the

trademark project in the Ministry of Law inSingapore, I realized that it is not possible todescribe some of the picture marks by using text.

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They are made up of geometrical shapes usingsymbols and pictures. The investigators in thetrademark department rely on their experience indealing with picture marks and they have to maketheir own judgement on what constitute a conflictingor similar trademark. Such knowledge that they gain

from experience is very hard to document, given thefact that the picture marks themselves cannot bedescribed using text. Even if image-processingtechniques are employed, still the knowledgeneeded to judge a conflicting trademark willcontinue to reside in the investigator's mind.Computers and the use of pattern matchingtechniques can only help to classify picture marksaccording to their similarity in descending orascending order but will not be able to judge

whether a trademark can be accepted or rejected.Having said that, not all types of knowledge arehidden and cannot be expressed. 'Know how' orimplicit knowledge is a type of knowledge that canbe expressed and articulated. A good example isXerox Eureka project (Bobrow, 1999). The Eurekasystem gathers shared tips on service repair fortechnician worldwide. The information captured inthe system can benefit other technicians who mightface the same or similar problem. "Know how", in

my opinion, is what Nonaka and Takeuchi (1995)referred to when they talked about tacit knowledgeto explicit knowledge conversion. According to themknowledge conversion is about the interactionsbetween explicit and tacit knowledge in continuousand spiral manner. Unlike skills and competencies,the "Know how" can be documented and theknowledge can be transferred through anindependent learning process. The process andingredients of making cake can be documented, the

reader might not be able to master it from the firsttime, but through trials he might be able to do iteven better than the originator.

This highlights the fact that not all types ofknowledge can be captured and codified asinformation. A great deal of useful knowledge isnormally lost when people leave their organizationsor they feel that there is no incentive for them toshare what is rightly theirs. In fact, in the Eurekaproject (according to Dan Holtshouse, director of

business strategy knowledge initiatives for Xerox,quoted in "Knowledge... (1999)) the biggest problemwas motivating the service technicians: 'It took us a

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while to figure out the right incentive to get [theservice technicians] to submit their tips.'

When talking about knowledge management, it isclear that we are dealing with a set of complexissues that are interrelated and cannot be

segmented. This is because much of the knowledgecreation activities are products of people interactingwith people, people interacting with data andinformation, people interacting with systems andpeople interacting with the environment in whichthey operate. Understanding tacit knowledge isessential to the development of an effectiveapproach to knowledge management. The threedifferent types of knowledge that knowledgemanagement is concerned with are:

1 . E x p l i c i t k n o w l e d g e ( i n f o r m a t i o n ) .

2 . " K n o w h o w " o r i m p l i c i t k n o w l e d g e ( C a n b e c a p t u r e d

a n d c o d i f i e d a s i n f o r m a t i o n )

3 . T a c i t k n o w l e d g e ( C a n n o t b e c a p t u r e d a n d c o d i f i e d a s

i n f o r m a t i o n ) .

For knowledge management to succeed, we need totreat knowledge as an activity and not an as anobject. The minute an activity is transformed to anobject, it should not be called knowledge but rathera piece of information. Therefore, informationmanagement systems are good in managing objectsand not activities.

The importance of technology in knowledge management

Technology plays an important role in knowledgemanagement, although knowledge management isnot about technology. Technology facilitates theprocess of transmitting and exchanging information.It can be used to manage uncertainty andcomplexity, where information is more factual and a

high degree of interaction is not required.Technology enables individuals to coordinate thelogistics of face-to-face meetings. It can also beused to catalogue expertise of organizationalmembers and as a result facilitating access to theright people and enhancing knowledge sharing.Computer-mediated communication such aselectronic mail or computer-conferences can help tomaintain continuity and connection betweenconversations, especially for those in different

locations (Marwik, 2001). One of the keytechnologies that is driving knowledge managementis collaborative technology. Collaboration tools

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enable a company's professionals to work togetherand work virtually regardless of the geographicallocation. Web technology allows organizations tobuild Web and knowledge portals that can handlesubstantial amount of information and made itaccessible to users anywhere anytime.

Knowledge management tools are technologies,broadly defined, which enhance and enableknowledge generation, codification (know how), andtransfer (Ruggles, 1997b). Typically, they aredesigned to ease the burden of work and to allowresources to be applied efficiently to the tasks forwhich they are most suited. It is important to notethat information management tools are a subset ofknowledge management tools. Informationmanagement tools allow organizations to generate,access, store, and analyse data, usually in the formof facts and figures. Information management toolsenable the manipulation of information but do notcapture the complexity of context and the richnessof knowledge. While knowledge managementsystems may include tools that also handle data andinformation, data and information management toolsare not robust enough to truly facilitate knowledgemanagement. According to Ruggles (1997b), ananalogy is the difference between reading a

description of the Mona Lisa and the deeperconnections, which comes from seeing the paintingitself. Knowledge tools can help us create, see, andshare the paintings.

Duffy (2001) also made a distinction betweentechnologies for knowledge management andtechnologies for information management.According to Duffy, information managementprimarily focuses on finding work-related objects

and moving them around, while knowledgemanagement concerns itself with finding and movingwork objects as well as with how they are createdand used. One other key distinction is that themeans of creating, capturing, and communicating inknowledge management systems are very broadwhile the focus in information management toolstends to be on electronic and paper-basedinformation. To support both explicit and tacitknowledge, a knowledge management system needsto be built with content and collaboration

technologies. Data technologies are structured andtypically numerically oriented; knowledgetechnologies deal most often with text. Knowledge

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technologies are more likely to need humaninteraction than data technologies becausetransactions are fewer and volumes lower, withinteraction and iteration commonplace.

According to Davenport and Prusak (1998),

knowledge technologies deal most frequently withtext rather than numbers, and text in relativelyunstructured forms, such as clauses, sentences, andparagraphs, and even stories. Knowledgetechnologies, however, are more likely to beemployed in an interactive and iterative manner bytheir users. Therefore, the roles of people inknowledge technologies are integral to theirsuccess.

According to De Long, et al. (1997), in reality, most

knowledge management projects undertaken byorganizations are a mix of knowledge andinformation management. Knowledge managementprojects have several characteristics thatdifferentiate them from traditional informationmanagement projects. These unique characteristicsof knowledge management projects are; the goals ofknowledge management projects emphasize onvalue-added for users and not simply delivery andaccessibility of information, knowledge management

projects support organization improvement andinnovation and not just existing operations, it addsvalue to content by filtering, synthesizing,interpreting, and pruning content and it usuallyrequires on-going user contributions and feedbackand not just one-way transfer of information.

Information management systems are a veryimportant component of any knowledge managementproject. But while these tools are very useful,unfortunately, they are not designed to capture thecomplexity of context and the richness ofknowledge. Clearly, there is a need to rethink theapproach in designing and developing informationsystems. There is a need to go beyond merely thesearch and replace approach of changing the worddocument in "document management" to the wordknowledge in "knowledge management". Unlessknowledge management leads to fundamentalchanges in the design, development and deploymentof information systems, it will remain an illusion

best described as that of the 'Emperor's newclothes'.

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The key drivers of knowledge management

For knowledge organizations where the worth of thecompany is heavily dependent on tacit knowledge,managing tacit knowledge and protecting intellectualproperty is important. Some of the key drivers for

knowledge management in any organization include:Achieving organizational efficiency

Knowledge management plays a significant role inachieving organizational efficiency. In the neweconomy, speed and responsiveness aredetermining success factors, especially in thedot.com arena. Companies today face stiffercompetition in a globalized market place. Davenportand Prusak (1998), highlighted that the globalized

economy, with improved communication andtransportation, provides consumers withunprecedented and endless parade of choices forgoods and services worldwide.

Huang (1998), offered that responsiveness is a keyto survival, including delivery of services, speed ofimplementation of global solutions and efficientprocesses. He added, 'Continuous improvement inoperational efficiency and productivity is essentialto long term earning growth'. Indeed, in the Internet

world where customer expect services to beavailable on a twenty-four hour basis, firms have nochoice but to make the quantum leap improvementin various aspects of their services such as time-to-market, time-to-solution and time-to-delivery,or risk being forced out of business. This in turncreated the need for organizations to haveorganized information to facilitate their operations,information that is timely, accurate, useful and moreimportantly tailored to organization’s need. There is

also increased pressure on firms to recycle and re-use knowledge, instead of reinventing the wheel.

Staying ahead of competition

In order to stay ahead of the competition, firms nowadays understand fully the need to know(a) their customers and (b) their competitors deeply. Stewart (1997), recognized that customersare an integral part of the firm’s intellectual capital (i.e., customer capital) and the firm’sreason for existence. Many firms certainly understand the need to manage and service thecustomers’ needs and the need for a structured approach to managing customer relationship. Inrecent years, IT solutions such as customer relationship management (CRM) packages haveproved highly popular when it comes to explicit knowledge (information) managment.

The other crucial factor in staying ahead of thecompetition is the need to know the competition.Wee & Bambang (1991), highlighted that intelligence

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gathering and market intelligence are crucialactivities that companies must undertake in today’scompetitive business world. They attributed thesuccess of Japanese companies to their extensivemarket intelligence systems that they had put inplace. Thus, knowledge management plays a critical

role in managing customer relationship andcompetitive intelligence, by collecting jigsaw piecesof information and piecing together the puzzle onthe customers, competitors and the overall market.

Maximizing organizational potential

Knowledge management also requires companies tolink the knowledge management initiatives back totheir business objectives and goals. For knowledgeorganizations, the main driver is maximizing the

value of its R&D investments through 'recycling andre-using' experiments. Cortada, et al. (1999), notedthat these companies (e.g., 3M and BP) clearlyunderstand the potential of knowledge management.For example, 3M prides itself for able to 'learn frommistakes' and also turn them into profitableproducts. Its 'Post-It Notes' product is an epitomeof achieving success through errors. It has providedopportunitiesfor cross-fertilization leading tosuccessful spin-offs.

Knowledge management is also credited for its rolein preserving corporate memory and thus ensuringorganizational effectiveness. Companies have foundknowledge management useful in combating theeffects of staff turnover, as it helps to retain criticalknowledge through dedicated capturing ofknowledge or facilitating transfer between staff.Davenport and Prusak (1998), noted that downsizingcan create 'knowledge scarcity' with layoffs ofpersonnel with the needed corporate knowledge,

which can lead to failed processes or even 'luringback the laid off workers' or alternative knowledgesources are higher rates.

Managing intellectual capital

Stewart (1997) wrote:

' K n o w l e d g e h a s b e c o m e t h e p r i m a r y i n g r e d i e n t o f w h a t

w e m a k e , d o , b u y a n d s e l l . A s a r e s u l t , m a n a g i n g i t -

f i n d i n g a n d g r o w i n g i n t e l l e c t u a l c a p i t a l , s t o r i n g i t , s e l l i n g

i t , s h a r i n g i t - h a s b e c o m e t h e m o s t i m p o r t a n t e c o n o m i c

t a s k o f i n d i v i d u a l s , b u s i n e s s a n d n a t i o n s . '

On the other hand, Drucker (1988), predicted that

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the organization of the future would be knowledge-based and would comprise largely of specialistswho direct and discipline their own performancethrough organized feedback from colleagues,customers and headquarters. He added that a largeand successful information-based organization

would be one without any middle management,citing the British civil administration in India beforethe World War II as an example. The British hadsuccessfully managed the Indian subcontinent usinga very flat structure.

Stewart explained that the rise of the knowledgeworker is the result of an elevation of work from'hands to mind', from sweatshop jobs to knowledge-work jobs. He added that in the New Economy,there is a fundamental change in the approach toperformance measurement: professionals aremeasured by their ability to deliver results ratherthan the competency in performing the tasks. Thissupported by Drucker (1988), who asserted that thatbusiness needed to turn themselves into'organizations of knowledge specialists'.

Knowledge specialists work together as a team toachieve a common goal. These specialists need notbe told how to do their jobs and they should also

take on 'information responsibility'. For example, ina hospital, the healthcare professionals (e.g.,doctors, paramedics and the nutritionists) workclosely to nurse the sick and injured back to goodhealth, through an elaborate system of reports andan information centre (at the nurse station). Stewartviewed human capital as the most important asset ofcompanies nowadays and not the traditional view ofraw materials and machinery. He noted that the wayhuge corporations scrambled to find ways to retain

their best staff (e.g., generous stock options, hugebonus) is an indication. However, he argued thathuman capital on its own cannot make the impact, itneeds Structural Capital, to 'manage the knowledge'.Structural Capital’s role in Intellectual Capital is'continuous recycling and creation utilization ofshared knowledge and experiences'. Its purpose istwo-fold: (a) codify and preserve knowledge thatcan be transferred, specifically throughdocumentation or storage in databases; and (b)facilitate the linking of people to their sources for

data, experts and expertise - on a just-in-timebasis.

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Jumping on the bandwagon

With knowledge management as a concept is lookingso attractive, many organisations are jumping on thebandwagon. It is also important to note that formany organisations, knowledge management is

something trendy and has a positive impact on theorganization image. For many IT vendors andmanagement consultants, knowledge management isa business opportunity that enables them to takeadvantage of the current interest in knowledgemanagement. For many document managementvendors, the move toward knowledge managementis natural due to the fact that document managementis an essential component of managing explicit ordocumented knowledge. But for many vendors who

  jumped on the bandwagon, knowledge managementis simply replacing the word 'document' by the word'knowledge'. Raising the flag of knowledgemanagement by many vendors and managementconsultants without even understanding whatknowledge management is all about has createdscepticism and led many people to believe thatknowledge management is nothing more than amanagement fad.

But while the debate continues on whether

knowledge management is here to stay, the majorityof those interested in knowledge management aremore concerned with the real issues facing theirorganisations and prepared to pay for a knowledgemanagement solution. In the US, according toSchultz (2000), knowledge spending is expected toincrease by 19% annually from the present $3.4billion to $5.4 million. The impetus for knowledgemanagement for private sector organisations, aselaborated earlier, is a globalised and fast-pacedmarketplace, knowledgeable customers who arespoilt for choices. Firms competing to increasemarket share are striving to create product loyaltyamong its customers through establishing a long-term relationship with its customer and providingpersonalized services.

The public sector is also turning to knowledgemanagement, having recognized that they too facecompetition in funding and from alternative services.Increasingly, customers in the public sector are

demanding higher service quality, particularly in thearea of e-government. Services, particularly e-services, are expected to be available on a twenty-

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four hour, seven days a week basis, immediateresponse and attention, simplified and one-stopprocessing, quality products and services and fastprocessing time. Knowledge management is thus anatural solution for them to improve operations andenhance customer service. Large organizations in

the US have begun implementing knowledgemanagement as long as eight years ago.

In the consulting and professional services industry,the early pioneers in knowledge managementinclude Ernst and Young, Andersen Consulting,Arthur Andersen, Price Waterhouse, etc. Knowledgemanagement is not only strategic to them inmanaging knowledge; it is also a core and boomingbusiness. Foy (1999) highlighted a number ofsuccess stories of a number of consulting andprofessional services firms. Their success storiesrange from success in sharing best practicesthrough databases and virtual libraries, to innovativepractices to encourage the sharing of ideals andexperiences by staff. The R&D and technologyintensive companies, like 3M, Microsoft, HewlettPackard and Xerox are also pioneers inimplementing knowledge management, primarily toexchange experiences and transfer knowledge, andpromoting a creative and innovative work

environment. In addition, they have been offeringknowledge management solutions in recent years.Foy noted that R&D companies like Hoffmann-LaRoche, Johnson & Johnson and Merck havebenefited from their knowledge managementprojects by hastening the drug approval process,through 'better documentation' and 'knowledgesharing systems'.

Schultz (2000) reported that the US government

spending constitutes 30% of the overall knowledgemanagement spending. In particular, the US Army isone of the pioneers in the government to implementknowledge management with success. Others arealso following closely behind. In Singapore, There isa strong interest from the public sector inknowledge management. The strong presence ofmultinational companies in Singapore hascontributed to the strong interest in knowledgemanagement. A number of government organizationsincluding ministries and statuary boards have

embarked on knowledge management initiatives andsome have set-up knowledge managementdepartments and created knowledge management

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positions. The newly launched Master of Scienceprogramme in knowledge management in NanyangTechnological University in Singapore has attractedlarge number of applicants.

Conclusion

Knowledge management as a concept is veryattractive and to many organizations is trendy andnice to be associated with. For many IT vendors andmanagement consultants, it is a business opportunitythat should not be missed. But while there is nothingwrong with making business sense out of knowledgemanagement, there is a need to go beyond thesearch and replace practice of the word informationto the word knowledge. Information management isa subset of knowledge management and technology

should be seen as an enabler and part ofinfrastructure. For the majority of those interestedin knowledge management, the key drivers areorganisational efficiency, maximising organisation’spotential, competitive advantage, building a learningorganisation and managing intellectual capital.However, implementing knowledge management isalso not that easy. Organisations wanting toimplement knowledge management have to grabblewith issues such as strategy, technology,

organizational culture and knowledge organization.But despite all these issues, companies worldwide inboth the private and public sector have shown keeninterest in knowledge management, judging from theamount of money expected to be committed forknowledge management in the next few years.

Acknowledgements

My revision of an earlier draft of this paper hasbenefited from the comments of referees and froman opportunity to read a draft of Professor Wilson'spaper in this issue.

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 How to cite this paper:

Al-Hawamdeh, S. (2002) "Knowledge management: re-thinking informationmanagement and facing the challenge of managing tacit knowledge"

Information Research , 8(1), paper no. 143 [Available athttp://InformationR.net/ir/8-1/paper143.html]

 © the author, 2002. Last updated: 20th September, 2002

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