Chapter 1: Introduction to KM

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Learning Objectives
 Era of business requirement for
Information System
 New paradigms in Information Technology
 Overview of Knowledge Management
(KM)

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 What is Information System (IS)?
 Let’s take a look at some of the more popular
definitions:

“Information systems are combinations of :

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The Role of IS in organization?
 What do IS actually do for an organization?
◦ These components collect, store, organize, and
distribute data throughout the organization.
◦ One of the roles of information systems is to
take data and turn it into information, and then
transform that into organizational knowledge.
◦ As technology has developed, this role has
evolved into the backbone of the organization.

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Organizational levels and information
requirements

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Information Technology (I.T.) for KM
 Many organisations employ IT in one form
or another to manage their knowledge.
 It is primarily used to store and transfer
explicit forms of knowledge. However, IT is
not just about computers.
 Although KM in organizations is more than
just implementation of IT, it requires IT as
enablers that can promote knowledge
creation, store, distribute, and retrieve
knowledge for reuse.

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Information Technology (I.T.)
 It refers to anything related to computing
technology, such as networking, hardware,
software, the Internet, or the people that
work with these technologies.
 Many companies now have IT
departments for managing the computers,
networks, and other technical areas of
their businesses.

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Important of I.T. in Business
 Without Information Technology and
system support, business simply stops!

WHY?

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Business benefits of I.T.
 Communication
 Improved Workplace Efficiency
 Competitive Advantage over Rivals
 Cost Reduction and Economic Efficiencies

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Overview of Knowledge Management
 Knowledge management (KM)
comprises a range of strategies and
practices used in an organization to identify,
create, represent, distribute, and enable
adoption of insights and experiences either
embodied in individuals or embedded in
organizational processes or practice.

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 KM efforts typically focus on organizational
objectives such as improved performance,
competitive advantage, innovation, the sharing of
lessons learned, integration and continuous
improvement of the organization.
 KM efforts can help individuals and groups to
share valuable organizational 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 organization, and to
adapt to changing environments and markets.

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 Knowledge Management is a process that,
continuously and systematically, transfers
knowledge from individuals and teams,
who generate them, to the brain of the
organization for the benefit of the entire
organization.

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Definitions
 Definition by R. Gregory Wenig (1998)
◦ Knowledge Management for the organization
consists of activities focused on the
organization gaining knowledge from its own
experience and from the experience of
others, and on the judicious application of
that knowledge to fulfil the mission of the
organization.

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 Definition by Tom Davenport (1998)
◦ “KM is a process of capturing, distributing, and
effectively using knowledge.”
 Definition by Ellen Knapp (1998)
◦ “KM as the art of transforming information
and intellectual assets into enduring value for
an organization’s clients and its people.”

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What Is Knowledge Management
Related To?
 Knowledge management draws from a wide range of
disciplines and technologies:

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KM helps the organization to:

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History of KM
 Traditional Knowledge Management
◦ Discussion
◦ Formal Apprenticeship
◦ Forums
◦ Libraries
◦ Training Programs
◦ Mentoring Programs
 Post-Computerizations Knowledge Management
◦ Expert Systems
◦ Knowledge Bases
◦ Decision Support Systems
◦ “Computer Supported Cooperative Work”

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Drivers of organizational KM
 Knowledge-based drivers
 Technology drivers
 Intra-organizational drivers
 Human resource drivers
 Process drivers
 Economic drivers

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Knowledge-based drivers
 Organization are faced issues from lack of
proper & organised knowledge.
 But an effective KM system in an
organisation will help to make right
decisions at right time.
 The integration of a company knowledge
process with its business processes to
substantially enhance business process
performance.
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Technology drivers
 Technology drivers motivated by new
opportunities to compete by employing
new technology.
 Updating & adapting new technologies in
organisation will improve the
performance of the organisation.
 Information technology plays vital role in
the todays business operations.

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Intra-organizational drivers
 The organisational structure & culture
undergoes dramatic changes to
accommodate the requirements of effective
knowledge management.
 Most of the companies now are rely on
project-centred teams for the sole purpose
of bringing together the best of talent and
expertise.
 Strategic innovation begins with the
organisation’s identification of positioning
gaps the subsequent methods to plug them.
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Human resource drivers
 Human resource drivers of KM include the
need for improved knowledge transfer,
sharing and creation in cross-functional
teams of knowledge workers to make
proactive respond to competitive challenges.
 The cross-functional collaboration between
the different department of the organisation
will help to collective knowledge transfer
and enhance flexibility among employees.

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Process drivers
 Process drivers are focused on improving
work process through KM related
initiatives.
 An organisation need to be proactive &
anticipate the forces that will shape the
markets in their field of operation.
 Using the right application of knowledge
within in the proper structure and
processes in the right time.
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Economic drivers
 The potential of creating extra ordinary
returns and added value through
knowledge and the resultant attractive
economies in increasing returns.
 It will make the quest for silver lining for
product and service differentiation.

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Benefits of managing knowledge
 Better and faster decision making.
 Easy to find relevant information and
resources.
 Avoiding redundant effort
 Avoiding making the same mistakes twice
 Taking advantage of existing experience
 Communicating important information
widely and quickly
 Reusing ideas, documents and expertise
 Stimulating innovation and growth

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Technologies that support KM

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Barriers of successful KM
 Technology
 Organization
 People

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Technology Barriers
 Technology
◦ Legacy system and incompatibility
◦ Different software
◦ lack of hardware
◦ lack of bandwidth
◦ lack of IT literacy when it comes to handling
the software

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Organization Barriers
 Organization
◦ Lack of awareness of knowledge management
and instruments
◦ Unavailability of individual that will delay time
because does not know who would be the
best person to ask in certain cases.
◦ Different working time because of different
location and time.
◦ High investment to building the relationships
between customer and suppliers.
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People Barriers
 People
◦ Different language
 Deal with international companies
◦ Fear of penalty
 Limit for creative thinking
◦ Idea robbery
 Fear that someone would get rewards
◦ Established communication channels
 High effort to create good relationship

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Conclusion
 KM becoming increasingly important to
the organizations to increase revenues,
improve retention, increase productivity
and promote innovation.

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Exercise
 Draw a mind map for Chapter 1 .
 Submit during next lecture class.

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