1.
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2.
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 A Knowledge audit should be the first step in any Knowledge
Management initiative.
 KMA assesses what knowledge assets are possessed by an
organization, by knowing it the organization can find the
effective method of storage and dissemination (Liebowitz,
2000).
 KM audit provides evidence-based information about current
knowledge status (knowledge health).
As a basis to set up new knowledge management program.
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3.
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 A knowledge audit, is a qualitative evaluation.
 KM audit will look at;
What knowledge are the organization’s needs?
What knowledge assets or resources does the organization has
and where are they kept?
What gaps exist in its knowledge?
How does knowledge flow around the organization?
What blockages are there to that flow (to what extent do its
people, processes and technology currently support or hamper the
effective flow of knowledge?
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4.
 KMA
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The process to identify every knowledge,
Produced by an organization,
Who produce and use it,
How frequent is the knowledge used, and
Where is the knowledge stored.
 Once the as is” portrait of the organization has been completed
through information gathering and the knowledge audit, a gap
analysis can be performed
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5.
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Knowledge audit may also identify the following (Wiig, 1993) :
 Information glut or scarcity
 Lack of awareness of information elsewhere in the
organization
 Inability to keep relevant information
 Significant ‘reinventing’ the wheel
 Common use of out of date information
 Not knowing where to go for expertise in a specific area
(Knowledge Management Methods: Practical Approaches to Managing Knowledge)
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6.
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 5 activities of Information Resources Management (Willard –
1993) ;
Identification: What information is there? How to identify and coded?
Ownership: Who is responsible for different information entities &
coordination?
Cost and Value: What is a basic model for making judgments on
purchase and use?
Development: How can we increase the value of information or
stimulate demand?
Exploitation: What is the best way to proactively maximize the value
for money?
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7.
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 The result of KM audit:
Identification of core knowledge assets and flows—who creates,
who uses.
Identification of gaps in information and knowledge needed to
manage the business effectively.
Areas of information policy and ownership that need improving.
Opportunities to reduce information-handling costs.
Opportunities to improve coordination and access to commonly
needed information.
A clear understanding of the contribution of knowledge to
business results.
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8.
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 The difference between the organization’s existing and desired
KM state is analyzed to identify the enablers and barriers to KM
implementation
 Gap analysis should consider these points ;
What are the major differences between the current and desired KM
Recent situation of the organization?
List barriers to KM implementation (e.g., culture where “knowledge is
power” or where individual possession of knowledge is consistently
rewarded).
List KM leverage points or enablers (e.g., existing initiatives that could
be built upon)
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9.
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 Gap analysis should consider these points ;
Identify opportunities to collaborate with other business initiatives
Conduct a risk analysis (e.g., knowledge that will gone soon due to
retirements, a few competent individuals).
Are there redundancies within the organization (e.g., the case of the
right hand not knowing what the left hand is doing)?
Are there knowledge silos (e.g., groups, departments, or individuals
that hoard knowledge or block fluid knowledge flows?
How does the organization rank with respect to others within the
industry? (e.g., early adopters of KM, KM leaders, or just becoming
aware of KM needs?)
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10.
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 This result can be used to list and prioritize KM objectives to be
addressed by the organization.
 The priorities should be determined by a consensus of the
organization’s key stakeholders.
 The result will be a KM strategy in form of document which
used as road map to implement KM within the organization.
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11.
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Assembly Hall, Hoi An
Vietnam, 2012
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12.
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 Intellectual assets are intellectual materials that have been
formalized, captured, and leveraged to produce higher value
for the firm
 Intellectual asset classified as ;
Body of tacit and explicit knowledge about a task, person, or
organization.
The capital resources (human, structural, and relational) that
augment this body of knowledge.
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13.
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 3 categories of knowledge assets (p. 267)
Human Capital  brainpower that left after 5 pm
Structural Capital  brainpower that stay after 5 pm (procedures,
system, software, policies, patent)
Customer Capital  relationship value (current & future)
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14.
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 Organization can take inventories of the IC/IA, or even sell
them (training, consultancies)
 Example of IA inventories (ideas);
Product formulas
Business plan
Marketing strategies
Vendor terms
Employee information
Product composition
New services process
SWOT analysis
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15.
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 4 dimensions of business that form Skandia Navigator model
Financial focus, represented in monetary terms.
Customer focus, a financial and nonfinancial measure of the value
of customer capital.
Process focus, address the effective use of technology within
organization
Renewal and development focus, attempts to capture the
innovative capabilities of the organization.
 All related to human capital
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16.
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 3 popular approach for measuring KM are ;
Benchmarking
Balance scorecard
House of quality
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17.
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 Comparison with key leader in the industry to identify any
best practices that can be applied in other organization
 Avoiding wheel reinventing, by looking at what has worked
and what has not worked for other companies operating in
comparable environments or industrial sectors
 Lack of sufficient value & flexibility in the future, leads to
other measurement tools and techniques to measure the
effectiveness of KM
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18.
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 Originated from Xerox in 1970’s, when they learn the logistic
model of LL Bean (p. 272)
 Learn from the best to become one
Internal – comparison against other unit
External – comparison with other companies/industries
 3 types of benchmarking (read p. 273)
Industry group measurement
Best practices studies
Cooperative / collaborative benchmarking
Competitive benchmarking
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19.
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 Industry group measurement
Measurement of various aspects of the operation and compare to
similar industry measurements.
 Best practices studies
Studies and lists of what works best.
Useful to benchmarking research, but they are not useful as
metrics.
What works best for an organization in its specific environment
may not work the same way in another environment.
Book, consulting, research
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20.
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 Cooperative benchmarking
the measurement of key production functions of inputs, outputs,
and outcomes with the aim of improving them.
Performed with the assistance of the entity being studied (the
benchmark “partner”).
The entity selected as a benchmark must be the one that has
“best practices” in the area of interest or has won a major national
or international quality award.
 Collaborative benchmarking
Both entities study each other and work together to improve.
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21.
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 Competitive benchmarking
The study and measurement of a competitor without its
cooperation for the purposes of process or product quality
improvement.
A version of competitive benchmarking is the commisioning of a
third party to study a group of competitors and share the results.
The third party consultant is might knows what data belong to
which entity.
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22.
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 The key steps ;
1. Determine what to benchmark: which knowledge processes,
products, services? Why? With what scope?
2. Form a benchmarking team.
3. Select a benchmarking short list—which companies will you be
benchmarking against?
4. Collect and analyze data.
5. Determine what changes should be made as a result of the
metrics obtained
6. Repeat when an appropriate amount of time has lapse to
measure progress
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23.
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 The potential benefit ;
 Overall productivity of knowledge investments.
 Service quality.
 Customer satisfaction and the operational level of customer
service.
 Time to market in relation to other competitors.
 Costs, profits, and margins.
 Distribution.
 Relationships and relationship management.
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24.
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 A measurement and management system that enable
organization to clarify its vision & strategy, then translate
them into action
 Provides feedback on both the internal business processes
and external outcomes in order to continuously improve
strategic performance and results.
 A conceptual framework for translating an organization’s
vision into a set of performance indicators distributed among
four dimensions – Financial, Customer, Internal Business
Process, Learning & Growth
 See p. 275 for the illustration of BSC
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25.
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26.
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 The BSC keep the balance between ;
Internal & external measures
Objective & subjective measures
Performance result & driver of the future results
 Financial indicator ;
Operating income
ROI
Economic value added
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 Customer indicator ;
Satisfaction
Retention
Market share
 IBP indicator ;
Cost and quality
Time and resources
 L & G indicator ;
Employee satisfaction & retention
Skills set
Career management
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28.
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29.
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 BSC can be expanded to include ;
Objectives  the major goals to be achieved (e.g., profitable
growth).
Metrics  parameters that will be monitored in order to measure
progress toward these stated goals (e.g., growth in net margin).
Targets  specific thresholds to be met for each metric (e.g., 2%
or greater growth in net margin).
Initiatives  describe the actions, projects, programs, and so on
to be put into place in order to be able to meet the stated goals.
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30.
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31.
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 Develop to show the connection between true quality,
quality characteristics, & process characteristic
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32.
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33.
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