Knowledge Management

Knowledge Management & Practices

Knowledge Management is the explicit and systematic management of vital knowledge - and its associated processes of creation, organization, diffusion, use and exploitation - in pursuit of business objectives.

DEFINITION  Knowledge Management (KM) comprises  A range of practices used in an organisation to identify, 

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create, represent, distribute and enable adoption of insights and experiences. Such insights and experiences comprise knowledge, either embodied in individuals or embedded in organisational processes or practice. Many large companies and non-profit organisations have resources dedicated to internal KM efforts. Often as a part of their 'Business Strategy', 'Information Technology', or 'Human Resource Management' departments. Several consulting companies also exist that provide strategy and advice regarding KM to these organisations.

Why Manage Knowledge? The level of interest has grown dramatically during recent years because of :

Globalization and competition - many organizations rely on knowledge to create their strategic advantage. With available knowledge widely dispersed and fragmented, organizations often waste valuable time and resources in 'reinventing the wheel' or failing to access the highest quality knowledge and expertise that is available.

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Knowledge can command a premium price in the market - Applied knowhow can enhance the value (and hence the price) of products and services. Examples are the 'smart drill' that learns how to extract more oil from an oil field, and the hotel chain that knows your personal preferences and so can give you a more personalized service.

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Successful Innovation - Companies applying knowledge management methods have found that through knowledge networking they can create new products and services faster and better.

AREA OF WORK  KM efforts typically focus on organisational objectives such as

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improved performance, competitive advantage, innovation, the sharing of lessons learned, and continuous improvement of the organisation. KM efforts overlap with Organisational Learning, and may be distinguished from that by a greater focus on the management of knowledge as a strategic asset and a focus on encouraging the sharing of knowledge. KM efforts can help individuals and groups: to share valuable organisational insights, to reduce redundant work, to avoid reinventing the wheel per se, to reduce training time for new employees, to retain intellectual capital as employees turnover in an organisation, and to adapt to changing environments and markets

Scope

Since knowledge is increasingly recognized as a crucial organisational resource, that gives market leverage. Its management is therefore too important to be left to chance. In such a scenario, technology comes to our rescue:

With increased use of computers in the second half of the 20th century, specific adaptations of technologies such as knowledge bases, expert systems, knowledge repositories, group decision support systems, intranets and computer supported cooperative work have been introduced to further enhance such efforts.

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In 1999, the term personal knowledge management was introduced which refers to the management of knowledge at the individual level

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More recently with the advent of the Web 2.0, the concept of knowledge management has evolved towards a vision more based on people participation and emergence. This line of evolution is termed Enterprise 2.0. However, there is still a debate whether Enterprise 2.0 is just a fad, or if it brings something new, is the future of knowledge management and is here to stay.

Knowledge Management Strategies  One strategy to KM involves actively managing knowledge

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(push strategy). In such an instance, individuals strive to explicitly encode their knowledge into a shared knowledge repository, such as a database, as well as retrieving knowledge they need that other individuals have provided to the repository. Another strategy to KM involves individuals making knowledge requests of experts associated with a particular subject on an ad hoc basis (pull strategy). In such an instance, expert individual(s) can provide their insights to the particular person or people needing this . Other knowledge management strategies for companies include: rewards (as a means of motivating for knowledge sharing) storytelling (as a means of transferring tacit knowledge) cross-project learning

Activities Involved: Knowledge management programmes involves following activities: Appointment of a knowledge leader - to promote the agenda, develop a framework  Creation of knowledge teams - people from all disciplines to develop the methods and skills  Development of knowledge bases - best practices, expertise directories, market intelligence etc.  Enterprise intranet portal - a 'one-stop-shop' that gives access to explicit knowledge as well as connections to experts  Knowledge centers - focal points for knowledge skills and facilitating knowledge flow  Knowledge sharing mechanisms - such as facilitated events that encourage greater sharing of knowledge than would normally take place  Intellectual asset management - methods to identify and account for intellectual capital.

A Success Story 

Hoffman La Roche - through its Right First Time programme has reduced the cost and time to achieve regulatory approvals for new drugs.

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Dow Chemical - by focusing on the active management of its patent portfolio have generated over $125 million in revenues from licensing and other ways of exploiting their intangible assets.

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Texas Instruments - by sharing best practice between its semiconductor fabrication plants saved the equivalent of investing in a new plant.

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Skandia Assurance - by developing new measures of intellectual capital and goaling their managers on increasing its value have grown revenues much faster than their industry average.

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Hewlett-Packard - by sharing expertise already in the company, but not known to their development teams, now bring new products to market much faster than before.

PRACTICES  Most programmes will leverage value through knowledge by       

concentrating on just a few of these seven levers: Customer Knowledge - the most vital knowledge in most organizations Knowledge in Processes - applying the best know-how while performing core tasks Knowledge in Products (and Services) - smarter solutions, customized to users' needs Knowledge in People - nurturing and harnessing brainpower, your most precious asset Organizational Memory - drawing on lessons from the past or elsewhere in the organization Knowledge in Relationships - deep personal knowledge that underpins successful collaboration Knowledge Assets - measuring and managing your intellectual capital.

REFERENCES  http://www.skyrme.com/resource/kmbasics.htm  en.wikipedia.org/wiki/Knowledge_manage

ment  www.best-managementpractice.com/Knowledge-Centre  http://www.skyrme.com/insights/22km.htm