Decision support and BI systems ch11

Decision Support and Business Intelligence Systems (9th Ed., Prentice Hall) Chapter 11: Knowledge Management Learning Objectives      11-2 Define knowledge and describe the different types of knowledge Describe the characteristics of knowledge management Describe organizational learning and its relationship to knowledge management Describe the knowledge management cycle Describe the technologies that can be used in a knowledge management system Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Learning Objectives      11-3 Describe different approaches to knowledge management Describe the chief knowledge officer and others involved in knowledge management Describe the role of knowledge management in organizational activities Describe the different ways of evaluating intellectual capital in an organization Describe how KMS are implemented Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Learning Objectives     11-4 Describe the roles of technology, people, and management in knowledge management Describe the benefits and drawbacks of knowledge management initiatives Describe how knowledge management can revolutionize the way an organization functions The future of KN: Web 2.0 and beyond… Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Opening Vignette: “MITRE Knows What It Knows Through Knowledge Management” 11-5  Company background  Problem description  Proposed solution  Results  Answer and discuss the case questions Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Opening Vignette: MITRE’s View to the KM Process 11-6 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Introduction to Knowledge Management  Knowledge management concepts and definitions  Knowledge management The active management of the expertise in an organization It involves collecting, categorizing, and disseminating knowledge  Intellectual capital The invaluable knowledge of an organization’s employees 11-7 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Introduction to Knowledge Management  Knowledge is  information that is contextual, relevant, and actionable  understanding, awareness, or familiarity acquired through education or experience  anything that has been learned, perceived, discovered, inferred, or understood In a knowledge management system, “knowledge is information in action” 11-8 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Introduction to Knowledge Management 11-9 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Introduction to Knowledge Management  Characteristics of knowledge      11-10 Extraordinary leverage and increasing returns Fragmentation, leakage and the need to refresh Uncertain value Uncertain value of sharing Knowledge-based economy The economic shift from natural resources to intellectual assets Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Roles of People in Knowledge Management  Community of practice (CoP) A group of people in an organization with a common professional interest, often self-organized for managing knowledge in a knowledge management system  11-45 See Application Case 11.7 as an example of how Xerox successfully improved practices and cost savings through CoP Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Roles of People in Knowledge Management   KMS developers  The team members who actually develop the system  Internal + External KMS staff  11-46 Enterprise-wide KMS require a full-time staff to catalog and manage the knowledge Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management Success stories of knowledge management Efforts Implementing a good KM strategy can:    Reduce…     Increase…   11-47 loss of intellectual capital costs by decreasing the number of times the company must repeatedly solve the same problem redundancy of knowledge-based activities productivity employee satisfaction Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management MAKE: Most Admired Knowledge Enterprises Efforts “Annually identifying the best practitioners of KM”   Criteria (performance dimensions): Creating a knowledge-driven corporate culture Developing knowledge workers through leadership Fostering innovation Maximizing enterprise intellectual capital Creating an environment for collaborative knowledge sharing Facilitating organizational learning Delivering value based on stakeholder knowledge Transforming enterprise knowledge into stakeholders’ value 11-48 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management  MAKE: Most Admired Knowledge Efforts Enterprises “Annually identifying the best practitioners of McKinsey & 10 PricewaterhouseCooper KM” Company s  2008 Winners: 11-49 Google Royal Dutch Shell Toyota Wikipedia Honda Apple Fluor Microsoft 11 12 13 14 15 16 17 18 Ernst & Young IBM Schlumberger Samsung Group BP Unilever Accenture … Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management Useful applications of KMS Efforts Finding experts electronically and using expert location   systems  Expert location systems (know-who) Interactive computerized systems that help employees find and connect with colleagues who have expertise required for specific problems—whether they are across the county or across the room—in order to solve specific, critical business problems in seconds 11-50 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management Knowledge management valuation Efforts Financial metrics for knowledge management valuation     11-51 Focus knowledge management projects on specific business problems that can be easily quantified When the problems are solved, the value and benefits of the system become apparent Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management Knowledge management valuation Efforts Nonfinancial metrics for knowledge management valuation   —new ways to view capital when evaluating intangibles: 11-52  Customer goodwill  External relationship capital  Structural capital  Human capital  Social capital  Environmental capital Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management  Causes of knowledge management Efforts failure 11-53  The effort mainly relies on technology and does not address whether the proposed system will meet the needs and objectives of the organization and its individuals  Lack of emphasis on human aspects  Lack of commitment  Failure to provide reasonable incentive for people to use the system… Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management Factors that lead to knowledge management success Efforts A link to a firm’s economic value, to demonstrate financial   viability and maintain executive sponsorship 11-54  A technical and organizational infrastructure on which to build  A standard, flexible knowledge structure to match the way the organization performs work and uses knowledge Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management Factors that lead to knowledge management success Efforts A knowledge-friendly culture that leads directly to user   support 11-55  A clear purpose and language, to encourage users to buy into the system  A change in motivational practices, to create a culture of sharing  Multiple channels for knowledge transfer Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Ensuring the Success of Knowledge Management Factors that lead to knowledge management success Efforts A significant process orientation and valuation to make a   knowledge management effort worthwhile 11-56  Nontrivial motivational methods to encourage users to contribute and use knowledge  Senior management support Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Last words on KM 11-57  Knowledge is an intellectual asset  IT is “just” an important enabler  Proper management of knowledge is a necessary ingredient for success  Key issues:  Organizational culture  Executive sponsorship  Measurement of success Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall End of the Chapter  11-58 Questions / comments… Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the United States of America Copyright © 2011 Pearson Education, Inc   Publishing as Prentice Hall 11-59 Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall ... experience and education levels  Lack of contact time and interaction between knowledge sources and recipients  Poor verbal/written communication and interpersonal skills  Age, gender, cultural and. .. awareness and realization of the value and benefit of the knowledge others possess  Dominance in sharing explicit over tacit knowledge  Use of a strong hierarchy, position-based status, and formal... in the domain of subjective, cognitive, and experiential learning 11-12  It is highly personal and hard to formalize  Hard to document, transfer, teach and learn  Involves a lot of human interpretation