Knowledge Management By: Jenny Enderby and Chris Papin.

Knowledge Knowledge ManagementManagement

By: Jenny EnderbyBy: Jenny Enderby

and Chris Papinand Chris Papin

What is Knowledge What is Knowledge Management?Management?

• According to According to www.brint.comwww.brint.com– KM is “caters to the critical issues of KM is “caters to the critical issues of

organization adaptation, survival and organization adaptation, survival and competence in face of increasing competence in face of increasing discontinuous environmental change… discontinuous environmental change… Essentially, it embodies organizational Essentially, it embodies organizational processes that seen synergistic processes that seen synergistic combination of data and information combination of data and information processing capacity of information processing capacity of information technologies, and the creative innovative technologies, and the creative innovative capacity of human beings.” capacity of human beings.”

SimplifiedSimplified

• KnowledgeKnowledge

– Refers to a set of Refers to a set of information with information with which we have which we have experienceexperience

– Usually gained Usually gained through work, through work, school or other life school or other life experiencesexperiences

• ManagementManagement

– Refers to the ability Refers to the ability of an individual or of an individual or group to lead and group to lead and organize others in organize others in business to produce business to produce a desired outcomea desired outcome

The Knowledge ProcessThe Knowledge Process

The Knowledge ProductionThe Knowledge Production

Information AcquisitionInformation Acquisition

Individual and Group LearningIndividual and Group Learning

Knowledge Claim Formulation and Knowledge Claim Formulation and EvaluationEvaluation

The Knowledge ProcessThe Knowledge Process

Knowledge IntegrationKnowledge Integration

Knowledge and Information Knowledge and Information BroadcastingBroadcasting

Searching and ReviewingSearching and Reviewing

Knowledge SharingKnowledge Sharing

TeachingTeaching

Put it all together…Put it all together…

• Knowledge production and Knowledge production and integration compile together with integration compile together with non-electronic information as well as non-electronic information as well as electronic information to for a electronic information to for a database of knowledge that is the database of knowledge that is the basis for KM.basis for KM.

Electronic InformationElectronic Information

• Data Mining and Data WarehousingData Mining and Data Warehousing

– Two tools that help turn information Two tools that help turn information and data into useful knowledgeand data into useful knowledge

DefinedDefined

• Data WarehouseData Warehouse

– A database that A database that stores larges stores larges amounts of historical amounts of historical business databusiness data

– Another way: Another way: Warehousing brings Warehousing brings your data together your data together for analysisfor analysis

• Data MiningData Mining

– The practice of The practice of extracting data from a extracting data from a warehouse in order to warehouse in order to analyze patterns analyze patterns trends and trends and relationshipsrelationships

– Another way: Mining Another way: Mining sorts through the data sorts through the data you collected and you collected and turns up interesting turns up interesting and useful connectionsand useful connections

Why Use DM?Why Use DM?

• Firms identify Firms identify patterns which patterns which generate valuable generate valuable knowledge for the knowledge for the companycompany

How Companies Use DMHow Companies Use DM

• Market SegmentationMarket Segmentation• Customer ChurnCustomer Churn• Fraud DetectionFraud Detection• Direct MarketingDirect Marketing• Interactive MarketingInteractive Marketing• Market Basket AnalysisMarket Basket Analysis• Trend AnalysisTrend Analysis

Fraud Detection ExampleFraud Detection Example

Wal-Mart ExampleWal-Mart Example

How These Apply to KMHow These Apply to KM

• DM and DW can turn data into useful DM and DW can turn data into useful knowledge that can give companies a knowledge that can give companies a competitive advantage over their rivalscompetitive advantage over their rivals

• DM takes a proactive approach to DM takes a proactive approach to selling products to customers rather selling products to customers rather than a reactive approach by predicting than a reactive approach by predicting patterns, trends, and behaviors.patterns, trends, and behaviors.

Why So DifficultWhy So Difficult

• Implementation of KM programsImplementation of KM programs

• How to estimate the return on KMHow to estimate the return on KM

• How to store KM data How to store KM data

• Techniques on utilization of the Techniques on utilization of the knowledgeknowledge

Implementation Implementation ProblemsProblems

• Knowledge is Knowledge is PowerPower

– Incentive Incentive structures to share structures to share informationinformation

• Resistance to Resistance to ChangeChange

– People are People are reluctant to changereluctant to change

– 56% of executives 56% of executives say “changing say “changing people’s behavior” people’s behavior” is the most difficult is the most difficult obstacle obstacle

• ““Sharing knowledge is an Sharing knowledge is an unnatural act. You can't just unnatural act. You can't just stand up and say, 'Thou shalt stand up and say, 'Thou shalt share knowledge'—it won't share knowledge'—it won't work.” work.”

HUBERT SAINT-ONGE, PRINCIPAL, SAINTONGE HUBERT SAINT-ONGE, PRINCIPAL, SAINTONGE

ALLIANCEALLIANCE

Returns on KMReturns on KM

• KPMG invests $40 millionKPMG invests $40 million

• Quality knowledge is the goalQuality knowledge is the goal

• ““Data separates you from the Data separates you from the competition”competition”

How to Store New DataHow to Store New Data

• New techniques to “gather, store, New techniques to “gather, store, process and distribute this kind of process and distribute this kind of knowledge”knowledge”

• It isn’t contained in typical rows or It isn’t contained in typical rows or columnscolumns

• How do we store the human element?How do we store the human element?

Utilization of the Utilization of the KnowledgeKnowledge

• Problems with changeProblems with change

• Dept. of Defense and post combat Dept. of Defense and post combat datadata

• Management must encourage Management must encourage changechange

Implementation BarrierImplementation Barrier

• ““94% of business executives believe 94% of business executives believe that it would be possible, through that it would be possible, through more deliberate management, to more deliberate management, to leverage the knowledge existing in leverage the knowledge existing in [their organization] to a higher [their organization] to a higher degree”degree”

• BUT….BUT….

Implementation BarrierImplementation Barrier

• ““71% believe embedding knowledge 71% believe embedding knowledge in process, products, and/or in process, products, and/or services”services”

• Why not in the people making these Why not in the people making these processes, products and/or services?processes, products and/or services?

Implementation Case Implementation Case StudyStudy

• E&Y implements a knowledge E&Y implements a knowledge management system in an effort to management system in an effort to reach $1 billion in revenues by 1997.reach $1 billion in revenues by 1997.

• Process called Future State 97 or Process called Future State 97 or FS97.FS97.

E&YE&Y

• A major focus was to capture A major focus was to capture knowledgeknowledge

• Elected a Chief Knowledge Officer Elected a Chief Knowledge Officer

• Formed a Center for Business Formed a Center for Business KnowledgeKnowledge

E&YE&Y

• People were the keyPeople were the key

• Technology was the enablerTechnology was the enabler

• How do you adapt to the change How do you adapt to the change needed?needed?

SimilaritiesSimilarities

• E&Y had the same difficulties as othersE&Y had the same difficulties as others– Implementation was a new venture and riskyImplementation was a new venture and risky

– Returns are still not 100% clear, though they Returns are still not 100% clear, though they are assumed to be part of the KM programare assumed to be part of the KM program

– How did they obtain and keep the data?How did they obtain and keep the data?

– Problems getting the knowledge distributed Problems getting the knowledge distributed

Questions?Questions?