Knowledge Management in

Theory and Practice

Week 1: Introduction

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 Course Information
 Textbook: Knowledge Management in Theory and Practice. Second
Edition. MIT Press

 General format of the course

 Refer to course outlines
 Three assignments
 Lectures and small group activities (roughly 50/50)
 Each lecture corresponds to a chapter in the text (e.g. lecture 1 – chapter 1)

 To contact me: [email protected]

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 Week 1: Introduction to
Knowledge Management (KM)
 Key KM concepts and their definitions
 Tacit and explicit knowledge
 Knowledge in action
 Knowledge to create value

Write down your definition of knowledge management-

this will not be collected but you will refer back to your
definition in later classes

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Introduction

 When asked, most

company executives
say their greatest asset
is knowledge held by
their employees
 They also state they
have no idea how to
manage this knowledge

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 From physical assets to
knowledge assets
 Knowledge has now become more valuable
that physical “things”
 SABRE reservation system vs. airplanes
 Now – customer bill of rights, vouchers for
delayed flights – customer satisfaction (and
revenues) at an all-time low

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Interdisciplinary Nature of KM

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 The 3 Generations of KM

 1st Generation:
 “if we only knew what we know” IT

 2nd Generation:
 “if we only knew who knows about….” PEOPLE

 3rd Generation:
 “if we could only organize our knowledge….”
CONTENT

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 Today’s Working Environment
Multi-lingual
Multi-site Multi-cultural
More More &
Global Faster

KM

PC

More More
Mobile Connected Internet
PC PC

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 Increasing Complexity

 Today’s work environment is more complex due to an

increase in the number of subjective knowledge items
we need to attend to everyday
 Filtering over 200 emails, faxes, voicemail messages on a
daily basis – how to prioritize?
 Having to “think on our feet” as expected response time has
greatly decreased as well
 KM is a response to the challenge of trying to manage this
complexity amidst information overload
 A “science of complexity”
 Knowledge and entropy production have an inverse relationship

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 Hiring Scenario

 You have been asked to hire an assistant

 What sorts of things would you require from
human resources?
 What questions would you ask HR?
 What would you require from all applicants?

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 Applicant Information

 Curriculum vitae (resume)

 References
 Test results (e.g. language, aptitude)
 …..

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 Hiring Scenario Continued

 You have selected 3 of the applicants to go

to the next stage – the interview.
 Write down 3-4 questions that you would ask
of the candidate during the interview.

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 Applicant Information

 Previous experience
 Reason why they are applying
 Role-playing or decision simulation
 Request they demonstrate bilingualism
 ……

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Explicit vs. Tacit Knowledge

Tacit Knowledge

Explicit Knowledge

files

80-85% 15-20%
active passive 15
 The ubiquitous “shared drive”

 All organizations have them

 They tend to be chaotically organized, if at all
 Organizing principles tacit
 Organize for me but what about others?

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 Shared Drive Organization:
Which one would you choose?

Folders: Folders:
•Sarah •Project Apollo
•Peter OR: •Task force on KM
•Robert … one for •Proposal … one for
each collaborative
each employee project

A B
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 Next challenge: Preserving
valuable knowledge

 Organizational “amnesia” or forgetting

The cost of lost knowledge: NASA loses film of first moon

landing:
Once upon a time we put a man
on the moon – today we can no The original film of man’s first steps
longer do so. The blueprints for the on the moon have been lost. The
Saturn booster are no longer at original tapes, although nowhere
NASA – the only rocket with enough near the standard of normal tv
thrust to send a manned payload on transmission, would still be of far
its way. The original Apollo work- better quality than the video we have.
force is long since retired … some NASA simply filed them away. And
documents endure but they are as personnel retired or died, the
devoid of meaning (Petch, 1998) location of the tapes was forgotten.

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 Concept Analysis

A method to better understand (and

ultimately define) complex, subjective
and value-laden concepts

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 What is Knowledge
Management?
• KM is the systematic, explicit and deliberate building, renewal and
application of knowledge to maximize an enterprise’s knowledge-related
effectiveness and returns from knowledge assets (K. Wiig)

• KM is the process of capturing a company’s collective expertise wherever

it resides: in databases, on paper, in people’s heads – and distributing it to
wherever it can help produce the biggest payoff. (Hibbard)

• KM is getting the right knowledge to the right people at the right time so
they can make the best decision (Petrash)

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 More KM Definitions
 It is the attempt to recognize what is essentially a human asset buried in the
minds of individuals, and leverage it into an organizational asset that can be
accessed and used by a broader set of individuals on whose decisions the firm
depends. —Larry Prusak

 KM applies systematic approaches to find, understand and use knowledge to

create value (O’Dell)

 KM is the explicit control and management of knowledge within an

organization aimed at achieving the company’s objectives (van der Spek)

 KM is the formalization of and access to experience, knowledge, and

expertise that create new capabilities, enable superior performance, encourage
innovation and enhance customer value (Beckman)

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 A Concept Analysis Exercise

 What key attributes need to be present in a

definition of Knowledge Management?
 What are some good examples?
 What are some good “non” examples?

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 KM: Concept Definition

Key Attributes KM is…examples KM is not…ex

1. …………. 1. …………. 1. ………….

2. …………. 2. …………. 2. ………….
3. …………. 3. …………. 3. ………….
4. …………. 4. …………. 4. ………….
5. …………. 5. …………. 5. ………….
6. …………. 6. …………. 6. ………….
7. …………. 7. …………. 7. ………….

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 KM is:

 A management philosophy that takes systematic

and explicit advantage of knowledge to make the
organization act more intelligently
 Knowledge is used/applied for both operational and
strategic purposes
 Ways to find, analyze, categorize critical
knowledge areas to make sure appropriate
knowledge is available when and where needed

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 KM is NOT….

 KM is NOT power, it is how you use it that

matters!
 KM is not archiving all existing explicit
knowledge
 A set of isolated techniques without a common
framework
 a different label for IT, HR or training
 A command and control system for knowledge

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 Some examples

 Here are some examples of concepts

analyzed by previous classes
 Today – we will divide into smaller groups
and try out the concept analysis technique

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 The concept “digital library”

 Synonyms, antonyms (not just a website, nor a webcast, nor

a database, nor a…)
 Perspective of:
 An organization that provides resources - - people
 A collection of digital objects - - content
 A technology - - container
 Information-seeking different? (location-independent)
 Subset of a traditional library? (electronic extension of a library)

(1) an organized collection of digital information.

(2) supports creation, maintenance, management, access to and
preservation of digital content
(3) information stored in digital format available over a network
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 The concept “being green”

 Examples  Examples
 Recycling  Awareness
 Composting  Regulations
 Carpooling  Acting locally
 Bicycles  Using alternative energy
 Carpooling sources
 Conservation of resources  Sustainable transportation
 Pollution control  Develop green technologies
 Political action  Kyoto protocol
 Decrease carbon footprint  Recycle reduce reuse slogan

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 The concept “being green”

 Negative Examples  Negative Examples

 Companies claiming to be  Ethanol gas
green fraudulently  Paperless offices
 waste  Promotion campaign
 Excessive consumption  Getting mileage out of
 Short-term oriented claiming to be green
 Laissez-faire attitude  Plastic bags
 Carbon tax credits  One-time use only
 Carbon offsets  Climate change
 SUVs  Greenhouse effect

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 The concept “being green”

 Attributes
 Reduce the use of non-renewable resources
 A lifestyle or state of mind that involves making a choice to act towards
sustainability
 Local vs. global and individual vs. group
 Communal resources and consumption
 Attitude of an individual, organization or community that is conscientious
of the environment and dictates their choices and actions
 Way of thinking about waste reduction, awareness of consumption at the
individual, corporate and community level – scalable anywhere in between
 Collaboration
 Social phenomenon
 Social and political components

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 Try a Concept Definition
in groups of 4-5

Key Attributes Topic is…examples Topic is not…ex

1. …………. 1. …………. 1. ………….

2. …………. 2. …………. 2. ………….
3. …………. 3. …………. 3. ………….
4. …………. 4. …………. 4. ………….
5. …………. 5. …………. 5. ………….
6. …………. 6. …………. 6. ………….
7. …………. 7. …………. 7. ………….

Possible topics: “team player” or “user-friendly” or “professional” or “Web 2.0

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 Next:

 Next: The KM Cycle

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