Concepts and Application of KM

MEC 7432

: azmawati.mohd.lazim@gmail.com : Azmawati Mohd Lazim :

21A4FE60 : wawacrv : wawacrv

Teaching Lecturer : Azmawati Binti Mohd Lazim

INTRODUCTION TO KNOWLEDGE

MANAGEMENT

Handout by Mdm Nazirah Mat Sin

What is ‘KM’ @ ‘Knowledge Management’ ?

Definition of Knowledge Management

• No single authoritative definition• The word emerged in Europe around 1992 to 1994• KM experts:

Problems

• Loss of knowledge

• Unable to acquire information

• A decision making process has to be postponed

• “Sorry, I’m not sure what projects my colleagues are involved in now”

• All documents labelled with ‘Private and Confidential’, and no one is supposed to open it

Problems (cont.)• Collecting the necessary information - becomes a project in itself

• No record of the methodology used to solve the problem

• Outdated information

• Best practices are not being captured and shared

Symptoms

Cause & Effect : Messy management took place

INFORMATION OVERLOAD!!!

VIDEO

KM in Action

Sharing Best Practices

Sourcing Expertise Efficiently

Exploitation of Existing Commercial Know-how

Learning about Customers

Creating Knowledge from Data

Dissemination of Right Knowledge, Right Time, Right Place

Sharing Knowledge for Cooperative Solving

Become a best seller cloud system analyst?

ViDeO:Service cloud demo

KM in Action 1 Sharing Best Practices

ProblemThe performance across sales divisions was not comparable

Action The company analysed and codified the practices of the best-performing

sales divisions and made these available to all divisions

BenefitImproved performance in those divisions that implemented best practices.

• Sourcing Expertise Efficiently

Problem A commercial bank needed to be able to put together its expertise from around the

world

Action Developed and published a sophisticated directory identifying experts and their subjects

Benefit The directory would contribute more than ten times return on a modest

investment.

KM in Action 2

• Exploitation of Existing Commercial Know-how

ProblemA chemical company had thousands of patents

ActionIt created a new function tasked with getting more value from these assets

BenefitThose patents with commercial potential were licensed, and those without were discontinued

KM in Action 3

• Learning about Customers

ProblemA credit card organisation was unable to identify which customers represented the most profitable business

Action Using a data warehouse to identify the unprofitable customers

BenefitThe organisation was able to target its efforts on that part of the customer

KM in Action 4

• Creating Knowledge from Data

ProblemA Telecommunications company wanted to identify those customer it risked losing

ActionUsing data warehousing and data mining in analysing customer behaviour

BenefitThe company was able to identify those customers take immediate marketing action to retain them

Video of Mr Mike Walsh

KM in Action 5

• Dissemination of Right Knowledge, Right Time, Right Place 6

ProblemA multinational lost a major order to a competitor because the market intelligence

ActionThe company responded by linking staff around the world and providing them with competitor analysis

BenefitThe company is able to pass on intelligence to the right place in a timely manner

KM in Action

• Sharing Knowledge for Cooperative Solving

ProblemAn oil rig was faced with shutdown when a key part and its first replacement both failed, leaving only one remaining spare

ActionUsing technologies summoned up technical skills from engineers, the supplier, the manufacturer’s research laboratory and designers

BenefitTheir combined advice ensured the last remaining spare was fitted safely and the rig continued to operate

KM in Action 7

KM Scenario

• Access to everything published within an organization

• A solution to information overload

• Virtual Work Environments for collaborative working

• Communication of corporate news in a relevant and timely manner

• Real-time virtual communities to share opinions and insights

• Sharing with customers, suppliers and partners

Common KM Application Initiatives

• Skills/Expert Directory (Yellow Pages)• Video Conferencing• Digital Whiteboards• Electronic Forum• Decision Support System (DSS) Tools• Rational Capture Tools• Knowledge Portal• Collaboration Application• Virtual Team Tools• Email• Discussion Group• Intranets• Search Engine

• Individual Learning• Group Learning• Communities of Practice

(CoP)• Storytelling• Cultural Initiatives• Coaching• Mentoring• Training Programme• and more to come…

MOVIE TIME!a

‘The Future Revolves’

Perspectives on KM ApplicationInformation-based Technology-based Culture-based

• Categorization of data

• Corporate yellow pages

• Filtered information

• Information archiving

• Data mining

• Data warehousing

• Expert systems

• Intelligent agents

• Intranet

• Multimedia

• Search engines

• Collective learning

• Continuous learning

• Learning organization

Potential Benefits of KMProcess Outcomes

Communication

• Enhanced communication

• Faster communication

• More visible opinions

• Increased participation

Efficiency

• Reduced problem-solving time

• Shortening proposal times

• Faster results

• Faster delivery to market

• Greater overall efficiency

Organizational Outcomes

Financial

• Increased sales

• Decreased cost

• Higher profitability

Marketing

• Better service

• Customer focus

• Targeted marketing

• Proactive marketing

General

• Improved project management

• Personnel reduction

Accounts and Finance Department?

Research & Development (R&D)?

Sales and Marketing Department?

Human Resource Department?

Customer Service?

IT Department?

Administration?

Where Should KM Be?

CHAMPIONS & HEROES

Wherever your company wants it tobe…

Image originally published in the December 1982 issue of THE FUTURIST

Pick-a-boo Pop Quiz : What is it?• I have a box• The box is 3' wide, 3' deep, and 6' high• The box is very heavy• The box has a door on the front of it• When I open the box it has food in it• It is colder inside the box than it is outside• You usually find the box in the kitchen• There is a smaller compartment inside the box with ice in it• When you open the door the light comes on • When you move this box you usually find lots of dirt underneath it

It is a REFRIGERATOR

?

Why Now?• Growing awareness of the importance of knowledge to organizational

success

• Technology has made the sharing of knowledge more feasible

‘Knowledge Management’

• a growing emphasis on creating customer value

• an increasingly competitive marketplace

• reduced cycle times and shortened product development times

• a need for organizational adaptation

• a requirement to operate with a shrinking number of assets

• a reduction in the amount of time employees changes in strategic directions

Why KM is Important

• Facilitates better, more informed decisions

• Contributes to the intellectual capital

• Encourages the free flow of ideas

• Eliminates redundant processes

• Improves customer service and efficiency

• Leads to greater productivity

The Benefits of KM

Let’s meet Owen

ViDeO

• Getting Employees on Board

• Allowing Technology to Dictate KM

• Not Having a Specific Business Goal

• KM is Not Static

• Not All Information is Knowledge

KM and its Challenges

3 Major Myths

• ‘Build It and They Will Come’

• ‘Technology can Replace Face-to-Face’

• ‘First, Create a Learning Culture’

‘Build It and They Will Come’

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- Mental image of ‘warehouse’

- Build a central electronic database and spent a considerable amount of money

- But very little happens; neither contributions nor retrievals occur with much enthusiasm

- ‘Fix’ through an incentive system

* To alter the image of ‘warehouse’

- from collecting & storing to reusing it

‘Technology can Replace Face-to-Face’

- ‘Talking’ – Training Programme, Conferences

- But getting people together is costly (travel and time away from job)

- Through technology – allow people to share knowledge without having to be in the same place

* Technology has to be married with face-to-face interaction to create the most effective systems

‘First, Create a Learning Culture’

- Competitive Culture – no one is going to tell anyone else something that might help the other person get ahead

- Knowledge sharing only happens in organizations with a noncompetitive or a collaborative culture

- So, change the culture

* If people begin sharing ideas about issues they see as really important, the sharing itself creates a learning culture.

Drivers of KM :: Knowledge-centric Drivers

WEEK 3 PRESENTATION : Question for group 1

Knowledge recognition failure

Need for Smart knowledge distribution

Tacit knowledge walkouts

Knowledge hoarding

Learn to Unlearn

Drivers of KM :: Technology Drivers

Technology provides temporary advantage

Compressed product & process lifecycle

Link between knowledge, relationship capital, market strategy and information technology

WEEK 3 PRESENTATION : Question for group 2

Functional convergence

Convergence of products and services

New organizational structures

Deregulation & globalization

Drivers of KM :: Organizational Structure-based Drivers

WEEK 3 PRESENTATION : Question for group 3

Expensive, repeated mistakes and reinvention of solutions

Proactive opportunity-seeking behavior

Responsiveness

Drivers of KM :: Process Focused Drivers

WEEK 3 PRESENTATION : Question for group 4

Drivers of KM :: Economic Drivers

Increasing returns

Differentiation

WEEK 3 PRESENTATION : Question for group 5

Is Your Company Ready for KM?

1. Scanning imperative i. Does your company truly understand the environment in which it

function?ii. Does it gather information about practices and conditions outside the organization?iii. Is there awareness about how your company’s internal operations compare with those of your competitors?

2. Shared perception of performance gapsi. Is there a shared and relatively well agreed upon perception of how things are in your company and of how they actually need to be?

3. Metricsi. How things are measured. Is everything measured solely on the basis of financial outcomes?

Is Your Company Ready for KM?

4. Corporate culture – ‘technology can lead the horse to the water but cannot make him drink it’i. Is your corporate culture accept debate and conflict as ways of solving problems?

5. Knowledge champions – need for Knowledge Champions from different functional areas

6. Strategic alignment – knowledge strategy needs to be closely tied to the company’s business strategy

7. Begin with what you know – accept your current data and information assets and begin by leveraging those first

To transfer the knowledge (message) starts with how you manage it first!

ViDeO

Dr Randy Paush