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Knowledge Management Knowledge Management Sagar Patel Project Manager-PAN INDIA DePuy Synthes A Johnson & Johnson Company Email: [email protected] Ph.: 9323818308

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Page 1: knowledge Management (1)

Knowledge ManagementKnowledge Management

Sagar PatelProject Manager-PAN INDIA

DePuy Synthes A Johnson & Johnson Company

Email: [email protected].: 9323818308

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First, what is KnowledgeFirst, what is KnowledgeIn simplest terms, knowledge is the ability of an actor to respond to a body of facts and principles accumulated over a period of time.

One way to look at knowledge is as the apogee of the following continuum –

data information knowledge

Data = 1 unit of fact; Information = aggregation of data; Knowledge = potential for action on information

Data and information have intrinsic properties, the quality of knowledge depends on the properties of the agent

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Knowledge Knowledge The creation and diffusion of knowledge have become

ever more important factors in competitiveness in today’s knowledge economy.

Being viewed as a commodity or an intellectual asset, it possesses some paradoxical characteristics that are radically different from other valuable commodities.

Use of knowledge does not consume it. Transfer of knowledge does not result in losing it. Knowledge is abundant, but the ability to use it is

scarce. Much of an organization’s valuable knowledge walks out

the door at the end of the day.

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From industrial era to knowledge ageFrom industrial era to knowledge ageForty-five years ago, nearly half of all

workers in industrialized countries were making or helping to make things; today that proportion is down to 20% (Drucker, 1994; Bart, 2000).

An organization in the Knowledge Age is one that learns, remembers, and acts based on the best available information, knowledge, and know-how. Companies need to learn from their past errors and not reinvent the wheel again and again.

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KM definitionKM definitionKnowledge management is the

deliberate and systematic coordination of an organization’s people, technology, processes, and organizational structure in order to add value through reuse and innovation. This coordination is achieved through creating, sharing, and applying knowledge as well as through feeding the valuable lessons learned and best practices into corporate memory in order to foster continued organizational learning.

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KM ObjectivesKM ObjectivesFacilitate a smooth transition from those

retiring to their successors who are recruited to fill their positions.

Minimize loss of corporate memory due to attrition and retirement.

Identify critical resources and critical areas of knowledge so that the corporation “knows what it knows and does it well—and why.”

Build up a toolkit of methods that can be used with individuals, with groups, and with the organization to stem the potential loss of intellectual capital.

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KM ObjectivesKM Objectives

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Knowledge AssetsKnowledge AssetsThere are two types of knowledge assets

Tacit knowledge: That type of knowledge which people carry in their mind, and is, therefore, difficult to access.

Explicit knowledge: That type of knowledge which has been or can be articulated, codified, and stored in certain media.

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The Two Major Types of KnowledgeThe Two Major Types of Knowledge

Explicit Knowledge Tacit Knowledge

Tangible Intangible

Physical objects, e.g. in documents or databases

Mental objects, i.e. it's in people's head's

Context independent Context affects meaning

Easily shared Sharing involves learning

Reproducible Not identically replicated

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KM Examples KM Examples

Larsen & Toubro : Know NetInfosys : Learn Once Use Anywhere paradigm

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KM ModelsKM ModelsThere are some KM Models:Nonaka/Takeuchi Knowledge Spiral (1995)ADAM’s Model (2000-01)The Choo Sense-making KM Model (1998)WIIG KM Model

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Nonaka’s four model of knowledge Nonaka’s four model of knowledge conversion conversion

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Nonaka’s four models of knowledge Nonaka’s four models of knowledge conversion explanationconversion explanation

Socialization◦ (tacit to tacit) is the process of learning through sharing

experiences that creates tacit knowledge as shared mental models and professional skills e.g. expert consensus achieved during medical meetings

Externalization ◦ (tacit to explicit) is the process of conversion of tacit into explicit

knowledge, for example, the translation of clinical trial result into a recommendation for clinical practice

Internalization◦ (explicit to tacit) is the process of an individual learning by

repeatedly executing an activity applying some type of explicit knowledge, e.g., absorbing the relationship between actions and results as new personal tacit knowledge

Combination◦ (explicit to explicit) is the process of enriching the available

explicit knowledge to produce new bodies of knowledge, for example, combining medical and organizational knowledge into a decision support system

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ADAM’s Model (2000-01)ADAM’s Model (2000-01)

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The Choo Sense-making KM Model The Choo Sense-making KM Model (1998)(1998)

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WIIG’s KM ModelWIIG’s KM Model

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Knowledge Form by WIIG Knowledge Form by WIIG ModelModel

Public Knowledge

Sharing Knowledge

Personal Knowledge

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CONTINUE…CONTINUE…The knowledge which is explicit and can be

learned and shared, called Public Knowledge.

The knowledge which is an intellectual assets and held exclusively by employees and shared during work or embedded in technologies, called Sharing Knowledge.

The knowledge which is the least accessible, but the most complete form of knowledge. It’s usually tacit and used without knowing, called Personal Knowledge.

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Knowledge Types by WIIG Knowledge Types by WIIG ModelModel

Factual Knowledge

Conceptual Knowledge

Expectational Knowledge

Methodological Knowledge

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Continue…Continue…That type of knowledge which deals with data

and measurements, and directly observable and verifiable, called Factual Knowledge.

That type of knowledge which deals with systems, concepts and perspectives, called Conceptual Knowledge.

That type of knowledge which deals with hypothesis, judgments and expectations held by knowers, called Expectational Knowledge.

That type of knowledge which deals with reasoning, strategies and decision making methods, called Methodological Knowledge.

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KM Life CycleKM Life Cycle

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Key attributes of KMKey attributes of KMRuggles and Holtshouse (1999) identified the following key

attributes of knowledge management:

Generating new knowledge. Accessing valuable knowledge from outside sources. Using accessible knowledge in decision making. Embedding knowledge in processes, products, and/or services. Representing knowledge in documents, databases, and

software. Facilitating knowledge growth through culture and incentives. Transferring existing knowledge into other parts of the

organization. Measuring the value of knowledge assets and/or impact of

knowledge management.

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Terms used in KMTerms used in KM

Knowledge architect is the staff member who oversees the definitions of knowledge and intellectual processes and then identifies the technological and human resources required to create, capture, organize, access and use knowledge assets. 

Knowledge assets, also called intellectual capital, are the human, structural and recorded resources available to the organization. Assets reside within the minds of members, customers, and colleagues and also include physical structures and recorded media.

Knowledge bridge is the connection that a KM expert builds between the business processes and the technological, sociological, personal, financial, sales, creative, and customer oriented functions of the organization.

Employees and managers who contribute significantly to the intellectual capital of the company are called knowledge workers.

The knowledge economy is a term that refers either to an economy of knowledge focused on the production and management of knowledge in the frame of economic constraints, or to a knowledge-based economy.

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The value of Knowledge assetsThe value of Knowledge assets

Knowledge assets are often described as the intellectual capital of an organization

◦The value of intellectual capital is often intangible

◦A popular measure is the difference between the cost of capital assets and the cost of replacing them

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The value of KMThe value of KM It is important to manage knowledge assets because :

◦ Foster innovation by encouraging the free flow of ideas.

◦ Improve decision making◦ Improve customer service by streamlining response

time◦ Boost revenues by getting products and services to

market faster◦ Enhance employee retention rates by recognizing the

value of employees' knowledge and rewarding them for it

◦ Streamline operations and reduce costs by eliminating redundant or unnecessary processes.

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The development of KMThe development of KMKnowledge began to be viewed as a

competitive asset in the 80s, around the same time information explosion started becoming an issue

The trend was fueled by the development of IT systems which made it simple to store, display, and archive classified, indexed information

The process received a fillip after Ducker (and others) stressed the role of knowledge as an organization resource and Senge popularized ‘learning organizations'

Seeds of KM may also be found in business practices like TQM and BPR to which KM is often compared.

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The sources of KMThe sources of KMToday KM draws from a wide range of

disciplines / practices –◦Cognitive Science◦Groupware, AI◦Library and Information Science◦Document Management◦Decision support systems◦Technical writing◦Organizational Science◦Many more

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Organizational Perspectives on Organizational Perspectives on Knowledge ManagementKnowledge Management

Wiig (1993) considers knowledge management in organizations from three perspectives, each with different horizons and purposes:

1. Business Perspective—focusing on why, where, and to what extent the organization must invest in or exploit knowledge. Strategies, products and services, alliances, acquisitions, or divestments should be considered from knowledge-related points of view.

2. Management Perspective—focusing on determining, organizing, directing, facilitating, and monitoring knowledge-related practices and activities required to achieve the desired business strategies and objectives.

3. Hands-on Perspective—focusing on applying the expertise to conduct explicit knowledge-related work and tasks

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Why Is KM Important Today?Why Is KM Important Today?The major business drivers behind today’s

increased interest in and application of KM lie in four key areas:

1. Globalization of business. 2. Leaner organizations. We are doing more and

we are doing it faster, but we also need to work smarter as knowledge workers, adopting an increased pace and workload.

3. “Corporate amnesia.” We are more mobile as a workforce, which creates problems of knowledge continuity for the organization and places continuous learning demands on the knowledge worker. We no longer expect to spend our entire work life with the same organization.

4. Technological advances.

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The scope of KMThe scope of KMToday most companies define the scope of

KM as –◦KM mechanics (tools for information

management)◦KM culture (knowledge as a social

activity)◦KM systems (knowledge sharing as a

part of an organization’s DNA)

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KM mechanicsKM mechanics Information management may well be

considered the first wave of KM (and is still often considered synonymous with KM)

Information management tries to make the right information available to the right person at the right time through a variety of database driven information applications

Information management tools try to capture the human experience of knowledge through the collecting, classifying, disseminating, searching, indexing and archival power of information technology

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KM cultureKM cultureAll knowledge has a social and evolutionary

facetThere is a crying need for subject

knowledge to continuously re-examine and modify

It is important to keep the human and social elements of organization involved in all stored knowledge

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KM culture through CoPKM culture through CoPCommunities of practice (or thematic

groups) are popular way of injecting KM culture in an organization

CoPs are for where members share information and experiences, develop new insights, assimilate and transform knowledge

CoPs emphasize shared interests and work across locations and time zones (often using technology developed during KM’s first wave)

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KM systems KM systems KM succeeds fully when it is woven into the

fabric of an organization and becomes intrinsic to an organization’s processes.

Common practices include◦ Formal KM leadership◦ Formal rewards and recognitions for KM oriented

work◦ Tools and mechanisms that encourage knowledge

sharing◦ Development of knowledge bases◦ Intellectual asset management◦ Metrics to evaluate KM initiatives

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KM systems todayKM systems todayIn many ways the systemic approach

is the logical culmination of KM mechanics and KM culture

Many KM systems are however not yet robust enough-◦ KM metrics (surveys, benchmarking,

cost/benefit studies, service evaluation) are still an inexact science

◦ Knowledge workers are often KM resistant (KM is frequently considered an oxymoron)

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Technologies that support KMTechnologies that support KM

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Technologies that support KMTechnologies that support KMThese technologies roughly correlate to four main stages of the

KM life cycle:

• Knowledge is acquired or captured using intranets, extranets, groupware, web conferencing, and document management systems.

An organizational memory is formed by refining, organizing, and storing knowledge using structured repositories such as data warehouses. 

Knowledge is distributed through education, training programs, automated knowledge based systems, expert networks. 

Knowledge is applied or leveraged for further learning and innovation via mining of the organizational memory and the application of expert systems such as decision support systems.  

All of these stages are enhanced by effective workflow and project management.

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KM’s three-tiered view:KM’s three-tiered view:

• Helps people do their jobs and save time through better decision making and problem solving.• Builds a sense of community bonds within the organization.• Helps people to keep up to date.• Provides challenges and opportunities to contribute.

Individuals

• Develops professional skills.• Promotes peer-to-peer mentoring.• Facilitates more effective networking and collaboration.• Develops a professional code of ethics that members can follow.• Develops a common language.

Communities

• Helps drive strategy.• Solves problems quickly.• Diffuses best practices.• Improves knowledge embedded in products and services.• Cross-fertilizes ideas and increases opportunities for innovation.• Enables organizations to stay ahead of the competition better.• Builds organizational memory.

Organizations

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THE THREE MAJOR COMPONENTS OF THE THREE MAJOR COMPONENTS OF KMKM

Some critical KM challenges are to manage content effectively, facilitate collaboration, help knowledge workers connect and find experts, and help the organization to learn and make decisions based on complete, valid, and well interpreted data, information, and knowledge.

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KM Indian Case Studies

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Case study of NTPC& POEWRGRIDCase study of NTPC& POEWRGRID

This article outlines the knowledge management processes through an empirical study of the two leading power companies of India that is, NTPC and POWERGRID. The study has been carried out in these two companies by using secondary and primary data collected from various published sources besides from the companies under study.

Objective The objectives of the study are twofold: (i) to delineate the processes of knowledge

management in NTPC and POWERGRID, and (ii) to find out the tools that are enabling the knowledge management processes in these two companies to come into being and getting strengthened besides creating ‘ripple effect’.

Analysis and Results The creation of knowledge in NTPC and POWERGRID has been through Research &

Development Department of NTPC and Technology Development Department of POWERGRID. The creation of tacit knowledge has been taking place in the minds of their personnel which get posted in the knowledge management portal under LAKSHYA in NTPC and Knowledge Bank in POWERGRID. Both of the companies have been using knowledge management technology through information and communication technology tools. So far as the acquisition of knowledge is concerned, the two companies under study have been found to take benefit of their networking with suppliers, stakeholders, vendors, customers, regulators and power traders. So far as the collation of knowledge nuggets is concerned, NTPC and POWERGRID are undertaking this exercise by maintaining and updating their knowledge management portals.

Conclusion The entire gamut of knowledge management processes of NTPC and POWERGRID

has come of age and it may be emulated by other power companies in India. Awareness about these processes should be created in a big way in NTPC and POWERGRID to develop the knowledge sharing culture. (At this stage, NTPC should go for Knowledge Audit so that they could get an in-depth understanding of the dynamics of knowledge management processes and may improve on the short comings and pitfalls especially in view of the fact that POWERGRID has partially conducted this while preparing its Knowledge Maps and Matrices [POWERGRID, 2011]).

Krishna Nath Pandey/Global Business Review/SAGE Publications/2014 IMI

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Case study of IT industriesCase study of IT industries

The main objective for conducting this study is to understand the basic reason for introduction, the management, and practice of knowledge as a tool for organizational effectiveness. Also the study focuses on the corporate culture and its importance on such introduction and maintenance.

The study has been conducted in IT industries based at Kolkata and Hyderabad. There are altogether 194 software industries of which 148 are at Hyderabad and 46 at Kolkata. Data were collected from 20 companies which is 9.70%.

The data also show that the responsibility of introducing KM in most of the sample organizations lie on HR department. A few of them like TCS, Infosys, IBM, Oracle, and Satyam Computers have their learning centers or knowledge management team, who are responsible for strategizing to implementation. But basically it is the top management belief pattern, values and culture which either helps or makes it difficult to initiate and grow such practices in the organization. Stephen Denning mentioned “where knowledge changes the status quo, the culture of the organization can constitute a significant impediment to useful knowledge being shared". The organizations like Wipro, TCS, Siemen's Information Systems ,SSI Datametics, Techspan, IBM Global, Infosys, Satyam and Accenture have taken the lead by modeling their people processes as per the people CMM model which has been developed by Software Engineering Institute (SEI).

It provides what an organization must do to improve and mature its people practices and to get appropriate results through surveys and other assessment methods.

People also should have a shared understanding of what a knowledge driven company is all about and its impact. Thus knowledge management, if initiated and cultivated with all strategic intent and supported by the top decision makers is going to bring positive change in the organization-its people, process and practices.

2011 3rd International Conference on Information and Financial Engineering

IPEDR vol.12 (2011) © (2011) IACSIT Press, Singapore/Dr . Santwana Chaudhuri

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Case study of XEROXCase study of XEROX The main objectives of the study were to know the process of KM in Xerox

Corporation and its competitive advantage and the KM initiatives taken by the company. It also highlights the key factors which made an impact for successful implementation of KM in Xerox Corporation. The study was purely based on secondary data. The secondary data was obtained from sources such as Journals, Books, and Websites.

CONCLUSION In today‘s business climate, capturing staff knowledge and managing that data is

more critical. Knowledge Management is a major enabler for organization effectiveness. From the Xerox perspective, the force which drives knowledge sharing is to providing incentives, and dominance of community practice than technology.

Although Xerox began making conscious efforts to position itself as a knowledge company in the 21st century, it is believed that it was a knowledge company since its inception. Today‘s more balanced view of KM is, a combination of managing explicit information resources as well as managing the working environment and people so that tacit knowledge is more readily developed, shared and exploited.

In Xerox Corporation‘s KM is one of the competitive advantages and helps the company to sustain its market place. It also does add value to an organization‘s bottom line, and though difficult to prove directly, new measuring instruments like Eureka, DocuShare and innovative Knowledge Hub have helped the company, stakeholders and customers identify the sources of value more clearly. Xerox Corporation has understood that the importance of KM and their initiatives are considered to be the best practice in any Industry.

IJAMBU Volume 1 Issue 1 Oct-Dec 2013/ Subraja. S,

ISSN 2348-1382 (Online) 04/15/23

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Case study of ICICI BankCase study of ICICI BankObjective: This paper makes an exploratory study about Knowledge Management in

practice at ICICI (India) and tries to identify the critical success factors of Knowledge Management. A small survey was done among 31 employees of ICICI and based on their responses a factor analysis was carried out. This resulted in identification of the critical success factors. A personal observation of the system at work also makes attempt to understand whether Knowledge Management can fulfill some of the needs of the technical and professional workforce.

Conclusion KM at ICICI began on an experimental basis and carried on expanding and

exploring, widening its ambit of operations. No additional funding was required and nobody was under compulsion to use the site. The relatively young age group of the employees and support provided by the top management had led to the progress of the concept of knowledge management. It has not made any model to follow unlike Wipro has done. At present it is in a state of growth and flux and new sections and links are being added in the Wiseguy. Maybe in the next couple of years it will begin to consolidate and clearly define its objective of existence or else merge into the Intranet and be a part of corporate communications.

The Journal of Nepalese Business Studies/Vol. V No.1/Dec-2008/ Chandana Goswami

04/15/23

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THANK YOU