Knowledge Management StrategiesKnowledge Management Strategies

Prof Elaine FerneleyProf Elaine Ferneley

Elaine Ferneley

Knowledge Management: an OverviewKnowledge Management: an Overview

1990s management realised knowledge rather than land, machines or capital was the firm’s critical resource

Broadly Knowledge management can be centred on:Computer scienceEconomicsSociology

Elaine Ferneley

Earl’s (2001)Taxonomy of Knowledge Earl’s (2001)Taxonomy of Knowledge Management ApproachesManagement Approaches

School Technocratic Economic Behavioural

Attribute Systems Carto-graphic

Engineer-ing

Commercial Organiza-tion

Spatial Strategic

Focus Technology Maps Processes Income Networks Space Mindset

Aim Knowledge Bases

KnowledgeDirectories

Knowledge Flows

Knowledge Assets

Knowledge Pooling

Knowledge Exchange

Knowledge Capabilities

Principle IT Element

Knowledge-based

Systems

Profiles & Directories on

Intranets

Shared Databases

Intellectual Asset Register &

Processing System

Groupware & Intranets

Representational Tools

Eclectic

Philosophy Codify Connect Capability Commercialize Collaborate Contact Consciousness

Elaine Ferneley

Technocratic – based on ITTechnocratic – based on ITSystems School - Knowledge BasesSystems School - Knowledge Bases

Capture specialist knowledge in knowledge bases for other ‘specialists’ to access, evolved over 25yrs

Codification to allow others to access and use in association with their own professional expertise

Examples: Skandia database to

support underwriters’ decision making;

Airbus CD-ROMS for airplane maintenance technical expertise

Elaine Ferneley

Technocratic – based on ITTechnocratic – based on ITSystems School - Knowledge BasesSystems School - Knowledge Bases

Advantages: Explicit, verifiable

Shortcomings: Maintenance & updates, needs reward mechanism of

providing updates/amendments – often these are highly technical systems so reward is individual publicity

Not all knowledge is objective so difficult to codify

Very domain specific – difficult to generalise from

Elaine Ferneley

Technocratic – based on ITTechnocratic – based on ITCartographic School - Knowledge DirectoriesCartographic School - Knowledge Directories

Mapping organizational knowledge – building knowledge directories or ‘yellow pages’

Connecting knowledgeable people – gateways to knowledge rather than knowledge repositories – knowledge is as likely to be tacit as explicit

Examples: McKinsey & Co early adopters

– all employees must state 3 areas of expertise

WS Atkins – inclusion of personality traits e.g. good negotiator

Elaine Ferneley

Technocratic – based on ITTechnocratic – based on IT Cartographic School - Knowledge Cartographic School - Knowledge DirectoriesDirectories

Advantages: Continuous self editing,

cheap Shortcomings:

Assessment of expertise People process,

technology provides connectivity and possibly search capabilities

Internal ‘yellow pages’ can be regulated but how to regulate external ‘yellow pages’ e.g. ISWORLD!

Elaine Ferneley

Technocratic – based on ITTechnocratic – based on ITProcess School - Knowledge FlowsProcess School - Knowledge Flows

Derived from Business Process Reengineering – enhance business performance by providing personnel with as much information as possible

Workers are Capable of making decisions if they have the information – give decision relevant, contextual and best practice knowledge

Examples: Hewlett-Packard open

access databases Fire Service mobile

computing Storytelling

Elaine Ferneley

Technocratic – based on ITTechnocratic – based on IT Process School - Knowledge Flows Process School - Knowledge Flows

Advantages: Empowered workforce False departmental walls

are broken down Shortcomings:

Information overload, requires alternative modes of delivery

Employee scepticism Information taken out of

context

Elaine Ferneley

Economic – based on ProfitEconomic – based on ProfitCommercial School - Intellectual AssetsCommercial School - Intellectual Assets

Focus on protecting and exploiting intellectual assets of the firm

Knowledge should be exploited for commercial gain

Examples: Dow chemicals exploitation of

its patent portfolio. Had 25k patents that cost $30m p.a. to maintain with a licensing income of only $25m. In 5 years increased revenue to $125m p.a. through sales and licensing

Cap Gemini – rent of technical subcontractors to health and local authorities. 2003 revenue £87m

Elaine Ferneley

Advantages: Quick win Inclusion of corporate

knowledge as a company asset on the balance sheet

Shortcomings: Ongoing management of

the ‘knowledge property’ – how do you manage knowledge efficiently and effectively

How to avoid employees feeling exploited

Economic – based on ProfitEconomic – based on Profit Commercial School - Intellectual Assets Commercial School - Intellectual Assets

Elaine Ferneley

Behavioural – based on SociologyBehavioural – based on SociologyOrganizational School - CommunityOrganizational School - Community

Use organizational structures & networks to share or pool knowledge

Collaboration within communities (of practice) to encourage sharing and exchange of knowledge

Examples: BP Amoco through Lotus notes

and video conferencing developed the drilling platform expertise global community –saving $27m in one year

Ford’s knowledge and best practice forums, self regulating, anyone can join

Elaine Ferneley

Advantages: Break down organisational

barriers Members ‘should’ be there

because they choose to be Shortcomings:

Will only work if there is a tradition of sociability and networking, BP and Ford are famous for connectivity, expat communities, graduate entry networks etc

Moderators or brokers may be required

IT must be an enabler not a regulator

Behavioural – based on SociologyBehavioural – based on SociologyOrganizational School - CommunityOrganizational School - Community

Elaine Ferneley

Behavioural – based on SociologyBehavioural – based on SociologySpatial SchoolSpatial School

Use of space to facilitate knowledge exchange – the water cooler

Contactivity – people are social animals who prefer conversations to documents or IT

Examples: Yahoo’s kitchen, bar, bean

bag environment British Airways at

Waterside medieval street inc. café, newsagent, grocery store

Elaine Ferneley

British Airways (Waterside) and British Airways (Waterside) and Google OfficesGoogle Offices

Elaine Ferneley

Advantages: Meet people you would

not normally encounter Level of informality that

encourages innovation Shortcomings:

Yahoo drank the bar dry Other metrics take over

so spatial features are slowly withdrawn

Resentment from ‘have-nots’

Behavioural – based on SociologyBehavioural – based on SociologySpatial SchoolSpatial School

Elaine Ferneley

Behavioural – based on SociologyBehavioural – based on SociologyStrategic SchoolStrategic School

Knowledge management as the ‘essence’ of the firm’s strategy

Consciousness raising – the organisation moves to being the ‘intelligent organisation’ or the ‘life long learning’ organisation

Examples: Skandia is THE example –

they embrace all the former schools and view the development of intellectual capital as their core mission

Buckman Labs (see case study)

Information & Communication

Technology

ProcessesInformation

People

Elaine Ferneley

The Knowledge OrganisationThe Knowledge Organisation

The middle layer addresses the KM life cycle

A knowledge organization derives knowledge from customer, product, and financial knowledge. Also from financial practices

Indicators of knowledge: thinking actively and ahead, not passively and behind

Using technology to facilitate knowledge sharing and innovation

Collect

Organize

RefineDisseminate

Culture

Leadership

Technology

Intelligence

Maintain

Competition

KnowledgeManagementProcess

KM Drivers

KnowledgeOrganization

Create

Elaine Ferneley

Knowledge Value ChainKnowledge Value Chain

Create Codify Diffuse Use

•Learning organizations•Stimulating working environments•Time to think•Trust•Reward & Recognition

•Organise•Classify•Hard or soft structure – database friendly/free text

•Access – who/how•Transfer•Share•Examples – email, knowledge maps (yellow pages), best practice, discussion groups

•Product development•Service provision•Process improvement•Measures of success

Hard Infrastructure - technology platform

Soft Infrastructure - skills, processes etc.

Asset Management - measure, protect, exploit

Elaine Ferneley

Knowledge Map Example (Corporate Yellow Pages) Knowledge Map Example (Corporate Yellow Pages) – Assumption that it’s Web-based– Assumption that it’s Web-based

Create Codify Diffuse Use

•Who•Why•Reward

•Content•Searchability

•Access – who/how•Transfer/push•Share•Update

•For what•Measures of success

65% of Corporate intranets fall into disuse between 1 & 2 years(KPMG, Parlby 2006)

Elaine Ferneley

Earl’s (2001)Taxonomy of Knowledge Earl’s (2001)Taxonomy of Knowledge Management ApproachesManagement Approaches

School Technocratic Economic Behavioural

Attribute Systems Carto-graphic

Engineer-ing

Commercial Organiza-tion

Spatial Strategic

Focus Technology Maps Processes Income Networks Space Mindset

Aim Knowledge Bases

KnowledgeDirectories

Knowledge Flows

Knowledge Assets

Knowledge Pooling

Knowledge Exchange

Knowledge Capabilities

Principle IT Element

Knowledge-based

Systems

Profiles & Directories on

Intranets

Shared Databases

Intellectual Asset Register &

Processing System

Groupware & Intranets

Representational Tools

Eclectic

Philosophy Codify Connect Capability Commercialize Collaborate Contact Consciousness

Elaine Ferneley

SummarySummary