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Knowledge Management
Minder Chen, Ph.D.
[email protected]
Process
Reference Books:
• The Knowledge-Creating Company : How Japanese Companies Create
the Dynamics of Innovation by Ikujiro Nonaka, Hirotaka Takeuchi,
Takeuchi Nonaka, Published by Oxford Univ Pr (Trade), May 1, 1995
• Working Knowledge : How Organizations Manage What They Know, by
Thomas H. Davenport, Laurence Prusak, Published by McGraw-Hill,
December 1, 1997
• If Only we Knew What We Know: The Transfer of Internal Knowledge
and Best Practice, Carla O"dell and C. Jackson Grayson, Jr., Free
Press, 1998.
• Wellsprings of Knowledge : Building and Sustaining the Sources of
Innovation, by Dorothy Leonard-Barton, Published by Harvard
Business School Press, October 1, 1995
• Knowledge Management Tools (Resources for the Knowledge-Based
Economy) by Rudy L. Ruggles (Editor), Published by ButterworthHeinemann, December 1, 1996
• Intellectual Capital : The New Wealth of Organizations, by Thomas A.
Stewart, Published by Doubleday, March 1997
© Minder Chen, 1996-2010
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Knowledge Management (KM)
• "I wish we knew what we know…"
- a CEO -
© Minder Chen, 1996-2010
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Knowledge Hierarchy
Wisdom
Knowledge
Information
Data
© Minder Chen, 1996-2010
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Knowledge
• Knowledge guides us in the process of analyzing
data and utilizing information.
• Knowledge derives from information as
information derives from data. This
transformation happens through the following
processes:
– Comparison: how does information about the situation
compare to other situations we have known?
– Consequences: what implications does the information
have for decisions and actions?
– Connections: how does this bit of knowledge relate to
others?
– Conversation: what do other people think about this
information?
© Minder Chen, 1996-2010
Source: Working Knowledge, p. 6
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Information Overloading (Pollution)
"The impact of information is obvious. It
consumes the attention of its readers.
Therefore, a wealth of information creates a
poverty of attention."
-- Herbert Simon --
"Information absorbs the attention of the
recipient. Therefore an overabundance of
information creates a deficit of attention."
-- Jeff Hire, Owens Corning Fiberglass --
© Minder Chen, 1996-2010
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Moving Up the Knowledge Hierarchy
• Where is the knowledge we have lost in
information?
• Where is the wisdom we have lost in knowledge?
• Where is the life we have lost in living?
T.S. Eliot, Choruses from "The Rocks," 1934
© Minder Chen, 1996-2010
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Knowledge Management Cycle
Creation
Acquisition
Integration
Learning
Utilization
Categorization
Storage
Dissemination
© Minder Chen, 1996-2010
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KM Enabling Technologies
• Groupware
• Data warehouse and data mining
• Expert systems and knowledge based systems
• Intranet
• Electronic Performance Support Systems
• CBT, WBT
• Problem/Solution Database (Case-Based
Reasoning Systems)
© Minder Chen, 1996-1999
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Team Work & Groupware
Same Time
Different Time
Project/team rooms
Shared offices
Same
Place
Multi-media presentation systems
Key-pad based voting tools
Facilitated meetings using a PC
Networked PCs based GDSS
Different
Place
Screen sharing
Audio/video conferencing
© Minder Chen, 1996-1999
E-mail
Data & file sharing
Group authoring tools
Computer conferencing
Work flow management systems
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3Cs of Groupware
Source: Lotus Corp.
© Minder Chen, 1996-1999
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Knowledge Management Cosmology
Gathering
Organizing
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•
•
•
•
•
•
•
Data entry, OCR
Pull
Search
Voice input
Cataloging
Filtering
Indexing
Linking
Knowledge
Management
Disseminating
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•
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Push
Sharing
Alert
Flow
Refining
•
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Compacting
Collaborating
Contextualizing
Mining
Source: Adapted from Jeff Angus and Jeetu Patel, Knowledge-Management
Cosmology, Information Week, March 16, 1998, p. 59.
© Minder Chen, 1996-2010
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Knowledge Management Principles
• KM is expensive (but so is stupidity!)
• Effective management of knowledge requires hybrid
solutions of people and technology.
• KM is highly political.
• KM requires knowledge managers.
• KM benefits more from map than models, more from
markets than from hierarchies.
• Sharing and using knowledge are often unnatural acts.
• KM means improving knowledge work processes.
• Knowledge access is only the beginning.
• KM never never ends.
• KM requires a knowledge contract.
Source: Thomas Davenport, "Some Principles of Knowledge Management,"
http://www.utexas.edu/kman/kmprin.htm
© Minder Chen, 1996-2010
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Knowledge Management Principles
• The more your share, the more you gain.
• The knowledge acquisition process should be
part of the work process.
• Integration of knowledge from multiple
disciplines has the highest probability of
creating new knowledge and value-added.
• Knowledge valuation should be conducted from
customers’ perspective.
• KM focus should be on core knowledge critical
to sustaining company’s competitive edge.
© Minder Chen, 1996-2010
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Communities of Practice
• "A group of people who are informally bound to one
another by exposure to a common class of problem,
common pursuit of solutions, and thereby themselves
embodying a store of knowledge."
-- Brook Manville, Director of Knowledge Management at McKinsey & Co.
• Shadowy groups called communities of practice are
where learning and growth happen. Learning is social.
• The shop floor of human capital.
• You can't control them -- but they are easy to kill if you try
to manage them.
• They have history -- they develop over time.
• A community of practice has an enterprise - but not an
agenda.
• They develop customs, culture, and a way of dealing with
the world they share. Source: Thomas Stewart and Victoria Brown, "The
© Minder Chen, 1996-2010
Invisible Key to Success," Fortune, August 5, 1996.
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Knowledge Assets
Codified Knowledge Assets (Legally Owned)
Patents
Copyrights
Trademarks
Documents
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•
•
•
•
•
Tip of the
iceberg
Working Solutions
Web of Relationships
Communities of Practice
Experience
Expertise and Theoretical Knowledge
Database
© Minder Chen, 1996-2010
Source: The Knowledge Evolution, p. 35
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Organizational Knowledge Management Model
KM Process
Share
Leadership
Apply
Organization
Culture
Create
Group
Organize
Individual
Adapt
Identify
Collect
Performance
Measurement
Business
Process
Technology
Source: Adapted from Arthur Andersen and the American Productivity and Quality Center
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© Minder Chen, 1996-2010
Theory of Organizational Knowledge Creation
• Tacit knowledge is personal, context-specific, and
therefore hard to formalize and communicate.
• Explicit or codified knowledge is transmittable in formal,
systematic language.
Tacit Knowledge
(Subjective)
Explicit Knowledge
(Objective)
Knowledge of experience
(body)
Knowledge of rationality
(mind)
Simultaneous knowledge
(here and now)
Sequential knowledge
(there and then)
Analog knowledge
(practice)
Digital knowledge
(theory)
© Minder Chen, 1996-2010
Source: Knowledge-Creating Company, p. 57.
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Four Modes of Knowledge Conversion
To
Tacit knowledge
Tacit
knowledge
Socialization
Explicit knowledge
Externalization
From
Internalization
Combination
1+1
Explicit
knowledge
3
Source: Knowledge-Creating Company, p. 62.
© Minder Chen, 1996-2010
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Four Modes of Knowledge Conversion
• Socialization:
– A process of sharing experiences
– Apprenticeship through observation, imitation, and practice
• Externalization:
– A process of articulating tacit knowledge into explicit concepts
– A quintessential knowledge-creation process involving the creation
of metaphors, concepts, analogies, hypothesis, or models
– Created through dialogue or collective reflection
• Internalization:
–
–
–
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A process of embodying explicit knowledge into tacit knowledge
Learning by doing
Shared mental models or technical know-how
Documents help individual internalize what they experience
• Combination:
– A process of systemizing concepts into a knowledge system
– Reconfiguration of existing information and knowledge
© Minder Chen, 1996-2010
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Knowledge Spiral
Dialogue
(Collective Reflection)
Socialization
Externalization
Linking
Explicit
Knowledge
Field
Building
Internalization
Combination
Learning by Doing
Source: Knowledge-Creating Company, p. 71.
© Minder Chen, 1996-2010
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Two Dimensions of Knowledge Creation
Epistemological
Dimension
Explicit
Knowledge
Current
Focus
Tacit
knowledge
Individual
Group Organization
Inter-organization
Ontological
Dimension
Knowledge Level
Source: Adapted from Knowledge-Creating Company, p. 57.
© Minder Chen, 1996-2010
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Two Dimensions of Knowledge Creation
Epistemological
Dimension
Explicit
Knowledge
Tacit
knowledge
Individual
Group Organization
Inter-organization
Ontological
Dimension
Knowledge Level
Source: Adapted from Knowledge-Creating Company, p. 73.
© Minder Chen, 1996-2010
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Knowledge Cycle
Innovate
Tacit
Knowledge
Internalized
Knowledge
Share/Publish
Knowledge
Explicit
Knowledge
Internalize Knowledge
© Minder Chen, 1996-1999
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Conversion Between Explicit and Tacit Knowledge
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Metaphor and Analogy for Concept Creation
Product(Company)
Metaphor/Analogy
City
(Honda)
“Automobile Evolution” Hint of maximizing passenger
(metaphor)
space as ultimate auto development
“Man-maximum,machine-minimum”
Mini-Copier
(Canon)
Home Bakery
(Matsushita)
© Minder Chen, 1996-2010
Influence on Concept Creation
The sphere
(analogy)
Hint of achieving maximum passenger
space through minimizing surface area
“Tall and short car(Tall Boy)”
Aluminum beer can
(analog)
Hint of similarities between
inexpensive aluminum beer can
and photosensitive drum manufacture
“Low-cost manufacturing process”
Hotel bread
(metaphor)
Hint of more delicious bread
Osaka International
Hotel head baker
(analogy)
“Twist dough”
Source: Knowledge-Creating Company, p. 66.
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