Chapter Five

Knowledge Management in MIS

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 Outline
 What is knowledge
 Types of knowledge
 Important Dimensions of knowledge
 Knowledge Management
 Knowledge management value chain
 Types of knowledge management system
 Knowledge management solutions
 Knowledge Management Mechanisms
 Knowledge Management Technologies
 Knowledge Management Infrastructure

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 What is Knowledge
 Knowledge refers to interconnected information on what
something is, why something happens, and how to do
something .
 What: definitions of concepts and relationships,
taxonomies
 Why: understanding cause-effect relationships
 How-to, know-how: analysis/synthesis; methods,
procedures for generating new knowledge
 Knowledge acquisition is incremental (what in layers,
why with imperfect accuracy, starting from know-how
and learning what/why in the process)
 Knowledge is never complete, or 100% correct, can be
incoherent and controversial… is messy.

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 Knowledge Types
 Source view:
 Theoretical (science, theories) vs. Experiential knowledge (personal,
learned by doing)
 Communication view:
 Explicit
 knowledge that has been documented
 definitions, taxonomies, theories, procedures, cases
 Tacit
 knowledge that has not been documented
 experiential, analytical & synthesizing skills
 Sharing and capturing tacit knowledge is one of main goals
before knowledge management and knowledge support
systems.

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 Knowledge Types – Capital View

 Human Capital
 Knowledge in employees’ mind
 Structural Capital :
 Knowledge embedded in organizational artifacts

 Knowledge representations in documents (patents, problem solving

descriptions – different documents than reports; Accenture case)

 Invented work procedures/processes (Pharmaceutical co.)

 Knowledge embedded in technology (any), production floor design,

products

 Innovation Potential (e.g., educational facilities)

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 Important dimensions of knowledge

 Knowledge is a firm asset.

 Intangible
 Creation of knowledge from data, information, requires organizational
resources
 As it is shared, experiences network effects
 Knowledge has different forms.
 May be explicit (documented) or tacit (residing in minds)
 Know-how, craft, skill
 How to follow procedure
 Knowing why things happen (causality)

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 Cont.

 Knowledge has a location.

 Cognitive event

 Both social and individual

 “Sticky” (hard to move), situated (enmeshed in firm’s culture), contextual

(works only in certain situations)

 Knowledge is situational.
 Conditional: Knowing when to apply procedure

 Contextual: Knowing circumstances to use certain tool

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 Knowledge Management

 Knowledge management can be defined as:-

 Performing the activities involved in discovering capturing ,
sharing, and applying knowledge so as to enhance, in a
cost-effective fashion the impact of knowledge on the
unit’s goal achievement.
 Set of business processes developed in an organization to
create, store, transfer, and apply knowledge
 The term knowledge resources refers not only to the
knowledge currently possessed by the individual or the
organization but also to the knowledge that can potentially be
obtained (at some cost if necessary) from other individuals or
organizations.

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 Knowledge management value chain

 Each stage adds value to raw data and information

as they are transformed into usable knowledge.
 Knowledge Acquisition

 Knowledge Storage

 Knowledge Dissemination

 Knowledge Application

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 Knowledge acquisition

 Documenting tacit and explicit knowledge

 Storing documents, reports, presentations, best practices

 Unstructured documents (e.g., e-mails)

 Developing online expert networks

 Creating knowledge
 Tracking data from TPS and external sources

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 Knowledge storage

 Databases
 Document management systems
 Role of management:
 Support development of planned knowledge storage systems.

 Encourage development of corporate-wide schemas for indexing documents.

 Reward employees for taking time to update and store documents properly.

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 Knowledge dissemination

 Portals, wikis
 E-mail, instant messaging
 Search engines
 Collaboration tools
 A deluge of information?
 Training programs, informal networks, and shared management experience
help managers focus attention on important information.

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 Knowledge application

 To provide return on investment, organizational knowledge

must become systematic part of management decision making
and become situated in decision-support systems.
 New business practices

 New products and services

 New markets

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Cont.

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 Three major types of knowledge management systems

 Enterprise-wide knowledge management systems

 General-purpose firm-wide efforts to collect, store, distribute, and
apply digital content and knowledge

 Knowledge work systems (KWS)

 Specialized systems built for engineers, scientists, other knowledge
workers charged with discovering and creating new knowledge

 Intelligent techniques
 Diverse group of techniques such as data mining used for various goals:
discovering knowledge, distilling knowledge, discovering optimal
solutions

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 Cont.
 The three types of KMS can be broken down further into more specialized types of knowledge management systems.

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 Knowledge Management Solutions
 Knowledge management solutions refer to the variety of ways
in which KM can be facilitated
 KM processes
 KM systems
 KM mechanisms and technologies
 KM infrastructure

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Knowledge Management Processes

Discovery
• Combination
• Socialization

Sharing Application
• Socialization • Direction
• Exchange • Routines

Capture
• Externalization
• Internalization

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 Knowledge Discovery

 Knowledge discovery may be defined as the development of

new tacit or explicit knowledge from data and information or
from the synthesis of prior knowledge
 Combination: enabling the discovery of new explicit knowledge
 Socialization: enabling the discovery of new tacit knowledge

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 Knowledge Capture

 Knowledge capture is defined as the process of retrieving either

explicit or tacit knowledge that resides within people, artifacts,
or organizational entities.
 Knowledge captured might reside outside the organizational
boundaries, including consultants, competitors, customers,
suppliers, and prior employers of the organization’s new
employees
 Externalization involves converting tacit knowledge into explicit forms such
as words, concepts, visuals, or figurative language

 Internalization is the conversion of explicit knowledge into tacit knowledge.

It represents the traditional notion of “learning”

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 Knowledge Sharing
 Knowledge sharing systems support the process through which explicit
or implicit knowledge is communicated to other individuals
 It may take place across individuals, groups, departments or
organizations
 Discussion groups or chat groups facilitate knowledge sharing by
enabling individuals to explain their knowledge to the rest of the group

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 KM Application
 Mechanisms and technologies support knowledge application
systems by facilitating routines and direction.
 Direction refers to the process through which individuals
possessing the knowledge direct the action of another individual
without transferring to that person the knowledge underlying the
direction

 Routines involve the utilization of knowledge embedded in

procedures, rules, and norms that guide future behavior

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 Knowledge Management Systems

 Knowledge management systems are the integration of technologies

and mechanisms that are developed to support KM processes

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 Knowledge Management Mechanisms

 Mechanisms facilitating direction include traditional hierarchical

relationships in organizations, help desks, and support centers
 Mechanisms supporting routines include organizational policies,
work practices, and standards
 KM mechanisms are organizational or structural means used to
promote KM
 Examples of KM mechanisms include learning by doing, on-the-job
training, learning by observation, and face-to-face meetings

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 Knowledge Management Technologies
 Technologies that support KM include
 Artificial intelligence (AI) technologies encompassing those used for knowledge
acquisition and case-based reasoning systems

 Electronic discussion groups

 Computer-based simulations
 Databases
 Decision support systems
 Enterprise resource planning systems
 Expert systems
 Management information systems
 Expertise locator systems
 Video conferencing and
 Information repositories encompassing best practices databases and lessons learned
systems

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KM Processes, Mechanisms, and Technologies

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 Knowledge Management Infrastructure

 Organizational Culture
 Organizational Structure
 Communities of Practice
 Information Technology Infrastructure
 Common Knowledge

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 Organizational Culture

 Organizational culture reflects the norms and beliefs that guide

the behavior of the organization’s members
 Attributes of an enabling organizational culture include
 understanding of the value of KM practices

 management support for KM at all levels

 incentives that reward knowledge sharing and

 encouragement of interaction for the creation and sharing of knowledge

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 Organizational Structure

 Hierarchical structure of the organization affects the people

with whom individuals frequently interact, and to or from whom
they are consequently likely to transfer knowledge
 Organizational structures can facilitate KM through communities
of practice
 Organization structures can facilitate KM through specialized
structures and roles that specifically support KM

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 Information Technology Infrastructure

 The IT infrastructure includes data processing, storage, and

communication technologies and systems
 One way of systematically viewing the IT infrastructure is to
consider the capabilities it provides in four important aspects:
 Reach
 Depth
 Richness
 Aggregation

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 Common Knowledge

 Common knowledge also refers to the organization’s

 cumulative experiences in comprehending a category of knowledge and
activities and

 the organizing principles that support communication and coordination

 Common knowledge helps enhance the value of an individual

expert’s knowledge by integrating it with the knowledge of
others

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 Physical Environment

 Physical environment includes

 the design of buildings and the separation between them

 the location, size, and type of offices

 the type, number, and nature of meeting rooms

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Knowledge Management Infrastructure

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 Overview of Knowledge Management Solutions

KM Processes

Combination Socialization Internalization Externalization Exchange Direction Routines

Knowledge Knowledge Knowledge Knowledge

KM Systems Discovery Capture Sharing Application
Systems Systems Systems Systems

KM Mechanisms Analogies and metaphors Decision support systems KM Technologies

Brainstorming retreats Web-based discussion groups
On-the-job training Repositories of best practices
Face-to-face meetings Artificial intelligence systems
Apprenticeships Case-based reasoning
Employee rotation Groupware
Learning by observation Web pages
…. …

Organization Organization IT Common Physical

KM Infrastructure Culture Structure Infrastructure Knowledge Environment

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Thank you !!!!

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