Origins and domain of Knowledge Management Technological development Characteristics of knowledge Knowledge Management as a Management Tool Critical elements of Knowledge Management strategy Tactic Knowledge Management Knowledge Management and Process Performance Outsourcing Concept

2.  Origins and domain of Knowledge Management
 Technological development
 Characteristics of knowledge
 Knowledge Management as a Management Tool
 Critical elements of Knowledge Management strategy
 Tactic Knowledge Management
 Knowledge Management and Process Performance
 Outsourcing Concept

3.  Figure 2 Intangible resources
 Sources: Haanes & Lowendahl, 1997

5.  Growth of KM has emerged from 2
fundamental shifts:
 Downsizing strategy
 Technological development

6.  Downsizing => reduce overhead and increase profits
=> resulted in a loss of the knowledge =>
Organizations recognize that lost years of valuable
information and expertise and were now determined
to protect themselves against a recurrence.
 Use technology and system to capture the knowledge
residing in the minds of their employees, easily shared
within organization.
 Stored and reusable resource

7.  KM is an attempt to cope with the explosion of
information and to capitalize on increased
knowledge in the workplace.
 The emerging technological development
enables global sharing of information across
platforms and continents and serve as a tool
within an organization to use knowledge more
effectively.

8.  Definition of knowledge:
 Characteristics of knowledge
 Tacit and explicit knowledge

9.  Knowledge cannot easily be stored.
 Knowledge involves the processing, creation, or
use of information in the individual mind.
 Knowledge is information combined with
experience, context, interpretation, reflection,
and perspective.
 Knowledge is ineffectual if it’s not used.

10.  Tacit knowledge
 is documented and public; structured, fixed-
content, externalized, and conscious. It can be
captured and shared.
 Explicit knowledge
 is resides in the human mind, behaviour, and
perception. People’s interactions and requires skill
and practice.

11.  KM as an information handling tool
 KM as an strategic management tool

12.  KM is regarded as an information handling problem.
 Acquisition of information, collecting;
 Storage system, organized;
 Archived by technologies, conversion of tacit knowledge to
explicit knowledge;
 Utilization of information, sharing and exchanging.

13.  Organizations must adjust their capabilities to constantly
changing complex external environment.
 Must build systems for capturing and transferring internal
knowledge and best practices.
 Expected outcomes of an organisation with KM:
 improve performance, productivity, and competitiveness
 improve effective acquisition, sharing and usage of information
 improve decision making
 capture best practices
 reduce research costs and delays
 more innovative organization.

14.  Suggestions for critical elements must be included to
successfully create and implement a KM strategy.
 The “so what?” question
 Support from top management
 Communication
 Creativity
 Culture and people
 Sharing knowledge
 Incentives
 Times
 Evaluation

15.  2 types of knowledge
 Explicit knowledge
 Embodies in a code or a language
 Can be verbalized, communicated, processed,
transmitted and stored relativelt easily
 Tacit knowledge
 Rooted in action, procedures commitment, values and
emotions.
 Acquired by sharing experiences, by observation and
imitaiton

17.  Tacit knowledge
 as personal knowledge that each individual
possesses that is unique and once unlocked can be
creative contribution in an organization
 Critical to the key organizational task of creating
new knowledge, generating new products and
improving new business procedures leading to
innovation.

18.  Knowledge conversion – SECI
 Socialisation (from tacit knowledge to tacit
knowledge)
 Externalisation (from tacit knowledge to explicit
knowledge)
 Combination (from explicit knowledge to explicit
knowledge)
 Internalisation (from explicti knowledge to tacit
knowledge)

20.  Innovation can only evolve through practical
experience

21.  Can be transferred both in and outside the
organization
 Inside the organization
 Enhance the tacit know-how competence
 Outside the organization
 Recruit the right individuals with the requisite education or
work experience
 By acquiring parts of or whole new companies
 By engaging appropriate consultants or building network
with other companies.

22.  Innovations in different industries

23.  Barriers
 Fear of losing ownership
 A position of privilege
 Superiority
 Lack of insufficient rewards
 Unaware their knowledge might be interest to
others

24.  Human related factors such as Motivation,
Commitment, Hopes and Rewards
 Good relationship, trust and openess between
sender and recipient
 Behavior of the management leader as role
models to offer reward for imitation
 Personal interaction processes: Informal
atmosphere and face-to-face

26. Processes are activities that use resources to stimulate
and bring about change.
Process improvements focus on being more responsive
to customers and improve performance in quality, time,
speed and reliability with reduced production costs.

27. Radical improvements in numerous performance
dimensions simultaneously were attained through
quality management approaches.
Total quality management approaches identify an
organisation as a set of business processes incorporated
for operational and strategic levels.

28. Business process management manages these flows of
materials, people and information.
Links strategy to operational implementation and
defines management responsibility focused on
processes rather than functions.
These processes allows knowledge to play an important
role in organisational effectiveness.

29. Can the incorporation of ideas about knowledge
processes lead to greater effectiveness in operational
processes for the organisation?
Will taking a knowledge management approach help to
open up new possibilities?

30. Knowledge management (KM) focuses on core
competences providing sustainable advantage over
competitors
KM accepts that processes, people and technology
come together to improve organisational effectiveness
through learning.
KM processes with greatest impact on operations are
the creation, transfer, embedding and using of
knowledge

31.  Creation – network of experts with access to
knowledge technologies to produce solutions in the
problem solving domain.
 Transfer – individuals within networks who facilitate
the access and transfer of knowledge.
 Embedding – organisational effectiveness through
incorporation of knowledge into organisational
processes

32. Knowledge based process management leads to
improved capability and performance through three
conversion processes:-
Improvement or change of form – manufacturing of goods
Care and counter effects of potential harm – crowd control
Transfer or change of place – transport and telecomunications

33.  The knowledge model addresses customer knowledge
with an holistic approach to gain understanding of the
needs, condition and expectations of the customer.
 The knowledge equivalent of material supply chain is
the basis of a model applicable to variety of
operational processes in manufacturing, public
administration and consultancy.

34.  Knowledge processes are supported by
information and communication technology in
4 areas;
 Databases
 Decision support tools – Artificial Intelligence
 Group ware – Email, Video Conferencing
 Net technology – Intranets

35.  Application of KM in operations to assess KPIs:
 Quality, dependability, responsiveness and speed of
delivery system
 Flexibility of operational processes
 Cost reduction
 Issues addressed by KM:
 Increasing market turbulence
 Reduced tolerance for trade offs in performance
 Network organisations

36.  Knowledge processes require effective
collaboration, used as source of competitive
advantage and forces constant examination of
operational processes
 KM introduces new measures of customer
service and efficiency by allowing managers to
reduce the effects of difficult processes and
achieve operational success

37.  KM assists in the planning and control of
achieving performance excellence and enables
improvements to operational processes.

39.  Knowledge Management ( KM )
 how organizations capture knowledge from
experts with the organization, and formalise and
package knowledge assets for dissemination and
reuse by other employees ( Markus 2001 )
 Knowledge Outsourcing ( KO )
 The external experts are clearly contracted to
generate knowledge-intensive assets which are
subsequently internalized by the organization.

40.  Information systems where there has already
been significant study in outsourcing as
starting point to conceptualize to KO.
 Is a business transaction which involves
contracting or selling an organisation’s IT
assets., people and activities to a third party
supplier. ( Kern 1997 )