Knowledge Management
Presented by
Group number 4
Mike Seabough
Keith Floyd
Nick Carron
Nattapon Lertsrijatuporn
1
What Exactly Is
Knowledge Management?
We found many different definitions, but the
one that best fit our understanding of KM….
2
Definition:
“Any structured activity that improves an
organization’s capacity to acquire, share, and
utilize knowledge in ways that improves its
survival and success.”
Source: reference 1
3
It also helps to understand,
• “KM is not a technology, but a strategic
solution that applies information technology.”
Source: reference 2
4
Why have KM?
• Quite simply, most firms do
not know what they know.
Information is passed along
too slowly, and sometimes
not available to those who
would use it to make costly
decisions.
5
KM helps to eliminate
knowledge problems
• In every instance, the
company’s with KM in
place have a lower
occurrence of knowledge
problems than those
without KM.
Source: reference 12
6
Basics of KM
• In order to understand what the definition means, and
how it can pertain to business, one must first
understand a few basics of knowledge management.
7
KM: The Basics
Knowledge Management
Tacit Knowledge
Explicit Knowledge
Knowledge
Information
Data
SourceReference 1
8
Knowledge Management: Data
• “A set of discrete facts”
(Davenport and Prusak,
1998).
• “Text that does not answer
questions to a particular
problem” (Quigley and
Debons, 1999).
Data
• An Example would be:
Company K has a $4 million
budget for the in house IT
department.
Source: reference 4
9
Knowledge Management:
Information
• “Facts organized to
describe a situation or
condition” (Wiig, 1993).
Information
• “Data with relevance and
purpose” (Davenport,
1997).
• Example: The $4 million
budget for Company K was
a 20% increase over the
2003 budget.
Source: reference 4
10
Knowledge Management:
Knowledge
• Knowledge is processed
information.
• “Valuable information from
the human mind”
(Davenport, 1997).
Knowledge
• “Text that answers the
questions why or how”
(Quigley and Debons, 1999).
Example: The increase of
Company K’s IT budget is
due to the competitive edge
that the in house Knowledge
Management Program has
helped to generate.
Source: reference 4
11
Knowledge
Knowledge can be divided into two categories:
Tacit
and
Explicit
12
Tacit Knowledge
• “Know how”
• Difficult to describe
• “It can be demonstrated
•
but rarely codified, and
resides with its holder. It
gets transferred through
demonstration and on-thejob training.”
Examples include riding a
bike and throwing a ball.
Source: reference 3
13
Explicit Knowledge
• Explicit knowledge is much
•
more easier to pass from
one person to the other. It
can be written out in step
by step guidelines to
follow to complete a task.
An example of tacit
knowledge is the ability to
create a power point slide.
14
Difficulties of Implementing
Knowledge Management
• Convince employees that it is in their best
•
•
interest to share knowledge. This goes against
conventional thought that says knowledge is
power, so become more powerful than others.
“While employees may not deliberately hoard
their knowledge, convincing them to make the
time to participate in and contribute to a
knowledge management system or community
can be a challenge.”
Deciding which information should be retained.
Source: reference 5
15
More Difficulties of
Implementing KM
•Senior management may be reluctant.
•They may feel that they lose control when
information no longer has to pass through them.
16
Benefits of KM
• Avoidance of wasted time
•
•
•
•
“reinventing the wheel.
Improved decision making.
Encourage employees who
are not networking to
engage in sharing
information.
Improves support among
colleagues due to the value
of knowledge they receive.
Increase: responsiveness to
consumers, efficiency of
staff, and process of
2000 KPMG Consulting Study with 423 Respondents
innovation.
SourceReference 12
17
Trends in KM
• Spending Increases
Federal spending on KM products
and services were expected to reach $6.3
billion in 2003.
• A 2000 study by KPMG Consulting found
that of 423 organizations in Europe and
the U.S., 81% were actively pursuing KM.
Source: reference 8
18
KM by Industry
2000 KPMG Consulting Study of 423 Respondents
SourceReference 12
19
KM Trends: KM Becoming
More Common
2000 KPMG Consulting Study of 423 Respondents
SourceReference 12
20
How Helpful can KM be?
• “We had a critical problem that was going to prevent
us from launching a new product line on time. We
posted the question to the knowledge base and got an
answer from an engineer who had just solved a similar
problem. We made the fix and got the product out on
time, saving us millions in lost revenue” (Ives and
Gersting, 1998).
Source: reference 3
21
How Helpful Can KM Be? cont.
• Shell International
Exploration and
Production attributes
more than $200
million in direct costs
saved and additional
income in 2002 to the
use of its SiteScape
online collaboration
forum.
Source: reference 7
22
Some Best Practices of KM:
• “Set strategic priority and management commitment to KM.”
• Establish a thorough process to transfer learning throughout
•
•
the organization.
“it needs to be abundantly clear that [contributing
knowledge] will benefit them personally, not just the
company. For example, an overworked programmer would
personally appreciate the shortcut of grabbing code from a
reusable library, rather than having to rewrite it every time
it’s needed.”
Combine dissimilar data and information to get a more
holistic view of opportunities and threats.
Source: reference 3,6&8
23
KM Around the Globe
2000 KPMG Consulting Study of 423 Respondents
SourceReference 12
24
CASE STUDY
A world of Insight
25
History
• Founded in 1873
• Headquarters in St. Louis
• 16 Offices Worldwide
• Over 800 Lawyers
• Over 1900 Employees
Source: reference 32
26
Notable Accomplishments
• In 1939, Firm takes on as
client a "poor Scotsman
with just a little ‘bitty’
aviation company" and
has served it since its
founding. That little
company was McDonnell
Aircraft Company, now
The Boeing Company.
Source: references 32 & 35
27
Notable Accomplishments
• In 1993, Firm chosen to
represent the Government of
Kuwait in the preparation,
submission and prosecution
of its claims of over $100
billion against the State of
Iraq arising out of the
invasion and occupation of
Kuwait.
Source: references 32 & 34
28
Keys to Technology
• Reliability
• Connectivity
• Availability
Source: reference 32
29
Why invest in Technology?
• Allows lawyers and staff to have the best resources
available
• Lawyers can deliver faster, more improved services to clients
• Functionality
Source: reference 32
30
Infrastructure
• Offices connected via WAN
• Traveling lawyers and staff supported with wireless
devices (Blackberries, Virtual Private Network, etc.)
• Internet, Extranet, Intranet
Source: Reference 32
31
Commitment to Technology
• Flexibility built into technology
• No “one way of doing things”
• Web-based tools
• First-ever recipient of the “Champion of Technology”
Award from the Law Technology News
Source: Reference 32
32
KM Projects
• Electronic Library of litigation support training materials,
including more than 75 video tutorials and newsletters
• Installed and deployed Web-based case management tools
to allow for real-time, cross-office collaboration
• Built and deployed a centralized repository to search, store
and retrieve final opinions issued by the firm
Source: Reference 32
33
Source: reference 32
34
Source: reference 32
35
Champion of Technology
• Bryan Cave received the first “Champion of Technology”
•
•
•
award presented by Law Technology News.
The award was won for their use of the “Client
Technology Group”
Lawyers, business analysts, Web and multi-media
developers, and other staff work together to improve
services for clients
Bryan Cave can communicate better and faster with the
many diverse needs of their clients
Source: reference 33
36
CASE STUDY
37
Company Background
• Founded in 1906 as The Haloid Company
•
•
•
•
– Later named Xerox Corporation in 1961
Became successful by purchasing patents on
xerography
Mainly manufactured copiers until the patents
expired in the 1980s
Competition increased and Xerox expanded its entire
product range
It worked to turn its product into a service
Source: reference 29
38
Product Line
• Focused on providing systems and services that
•
•
•
help customers create, manage, and share
documents
Major products include printers, copiers, office
supplies, and software
Services include document management and
consulting
2003 R & D and IT budget totaled $868 million
– 5.5% of revenue
Source: reference 31
39
Financial Information
2003 Revenue = $15.7 billion
2003 Net income = $360 million
In 2003, ranked 130th among Fortune 500 companies
Total employees – 61,100 worldwide
- 35,600 in the United States
Source: reference 31
40
Net Income
1000
800
600
400
Millions $
200
0
-200
-400
1999
2000
2001
2002
Source: reference 31
2003
41
Xerox’s 5-Year Stock Price
42
Xerox Customers & CIO
• Has a wide variety of customers including:
•
– Microsoft
– Sun Microsystems
– My company!
CIO is also the Vice President of the Corporate Operations
group
– This group is responsible for information management
and strategy
Source: reference 31
43
Knowledge Management
Strategy
• In 1996, knowledge management was the hot, new topic
• At that time, there were three main strategies for KM
•
•
– A top-down, corporate-wide strategy
– A middle-out strategy
– A bottom-up, low budget strategy
Xerox opted for the bottom-up strategy, but tied it to the
company’s vision of KM
Used 30-40 employees to spread the word about KM
Source: reference 28
44
Bottom-Up KM Strategy
• Xerox chose this strategy for the following reasons:
•
•
– Little risk, big gain potential
– Could lead to new products and markets
– Could help convert it to a “document company”
– Fits best in Xerox’s corporate environment
Considered a voluntary strategy
When positive results were found, a particular KM practice
could then be implemented throughout the company
Source: reference 28
45
Three KM Projects
• Eureka – first and most successful KM project
• Code X – an open-source software sharing platform
• Docushare – research sharing platform
Source: reference 28&29
46
KM Project: Eureka
• Project focused on field and service representatives
• Xerox has approx. 18,000 service reps who maintain or
•
•
•
repair copiers or printers
Xerox researchers got a first-hand experience of what
service reps actually do
They discovered that there are problems that are not
covered in the repair manuals
Service reps who work together were found to share
their solutions to problems encountered
Source: reference 28&30
47
Eureka
Source: reference 28
48
Eureka’s Success
•It saves Xerox between 5% & 10% on labor and parts
•Annual savings total $10 million
•It holds 50,000 problem solving tips
•In 2001, it solved 350,000 problems
•Voted Best KM Project in 1999
•Inspired other KM projects
Source: reference 28&29
49
KM Project: Code X
• Code Exchange: started in 2001 on Xerox’s Intranet
• Developed for Xerox software developers to:
•
•
•
•
– Access and view all source codes
– Copy and redistribute freely
– Improve existing software
– Exchange information on projects
“I wouldn’t share codes with my mother”
Code modifications are included on Code X when approved
Highly sensitive projects can be excluded
Projects are ranked by activity
Source: reference 28
50
Code X Homepage
Source: reference 28
51
Code X’s Success
• Initial investment was only a 3-person team
• Cost savings total $3 million per year
•
•
– $2 million: productivity improvements
– $1 million: infrastructure, software licenses, and
administrative time
85% of developers are “very satisfied” with Code X
Growing sense of community
Source: reference 28
52
KM Project: Docushare
• Developed for Xerox researchers
• Enables the sharing of research and findings
•
•
– Fellow researchers know what each other are doing
Adapted software for researchers
This project spread to other departments
– Product planning
– Marketing
Source: reference 29
53
Xerox KM Summary
• “For all of us to win in the knowledge economy, we need
to unleash the knowledge in our document databases,
use and reuse our past knowledge, find ways to create
new knowledge and then share it across our enterprise.
In the digital, networked age, knowledge is our lifeblood.
And documents are the DNA of knowledge.”
– Rick Thoman, President and CEO of Xerox in 2000
Source: reference 29
54
Knowledge management in
Asia Pacific
55
A perspectives of Knowledge
Management in Asia
A shape increase in Knowledge Management
activities in Asia
 The large seminars and conferences in every year
SourceReference 13
56
The state of KM in the
Asia Pacific region
Mid-1990s The knowledge management began to
impact in these countries
Japan
Singapore
South Korea
Source: reference 14
Hong Kong
India
Taiwan
57
The Most Admired Knowledge
Enterprises (MAKE) Study
What is MAKE research program?
Consisting of the Global study as well as studies for Asia,
Europe, North America and Japan
 Providing practitioners and researchers with a clear picture
Investigating organizations for their abilities to deliver superior
performance
Ex. The area of innovation and product development,
Operational effectiveness and excellence in product and services
Source: reference 15
58
The Most Admired Knowledge
Enterprises (MAKE) Study
The eight knowledge performance dimensions
Creating an enterprise knowledge-driven culture
Developing knowledge workers through senior management
leadership
Delivering knowledge-based products/services/solutions
Maximizing enterprise intellectual capital
Creating an environment for collaborative knowledge sharing
Creating a learning organization
Delivering value based on customer knowledge
Transforming enterprise knowledge into shareholder value
Source: reference 15
59
History of Global MAKE study
The 1998 Global MAKE Winners
80
60
percentage 40
20
0
North America
Europe
Asia
The 1998 Global MAKE
Winners ( top 20 Finalists)
as follows:
• North America (16
organizations-74%)
• Europe (4organizations20%)
• Asia(0 enterprises-0%)
Source: reference 15
60
History of Global MAKE study
The 2003 Global MAKE Winners
60
50
40
Percentage 30
20
10
0
North America
Europe
Asia
International
The 2003 Global MAKE
Winners (top 20 Finalists)
as follows:
• North America (11
organizations-55%)
• Europe (5 organizations25%)
• International(1organizatio
n-World Bank-5%)
• Asia (3 enterprises-15%)
Source: reference 15
61
2003 Asian MAKE Winners
Enterprise & Country
BHP Billiton (Australia)
Canon (Japan)
Eisai (Japan)
Fuji Xerox (Japan)
Honda Motor(Japan)
Infosys Technologie
(India)
Kao (Japan)
LG Electronics (Korea)
Nissan Motor (Japan)
Samsung Electronics (Korea)
Samsung SDS (Korea)
Singapore Airlines (Singapore)
Sony (Japan)
Taiwan Semiconductor
Manufacturing Company
(Taiwan)
Tata Steel (India)
Toshiba (Japan)
Toyota Motor (Japan)
Wipro Technologies (India)
Source: reference 16
62
Samsung SDS (Korea)
 Established in 1985
 Designer of the Samsung Contact
messaging software platform
 Since 1996,fostering knowledge
sharing and collaboration among its
personnel
 Community-oriented KM
Promoting a knowledge-sharing
culture
Process-oriented KM
Improving productivity and
output quality
Asset-oriented KM
Building knowledge assets
Source: reference 16
63
Knowledge Communities in
Japan
Introduction
Increase “knowledge communities” in Japanese
The mixture of traditional culture and new technology
Some interesting cases
64
Knowledge Communities in
Japan
Introduction
In the 1990s, there has been a rapid loss of
competitively as the result of an inward-looking organization
structure based on factors such as seniority rule, a life-long
employment system, corporate-based union movements and
the old consensus-based management “high-context”.
“ knowledge-community building” terms have been set up in
Japanese companies.
Source: reference 17
65
Knowledge Communities
The idea that networks of computers provide a medium
within which individuals might come together to share
knowledge and expertise dates back to at least 1960
The first vision was offered by Simon Ramo
Definition
Groups where knowledge and best practices in a given
field are developed, nurtured and transmitted through the
social interaction of its members.
Source: reference 18
66
Knowledge Communities in
Japan
Increase “knowledge communities” in Japanese
Most of “ knowledge communities” of Japanese are online communities.
The importance of face-to-face based tacit knowledge
transfer was strongly emphasized.
Some knowledge communities are based on on-line
magazines, others are based on Q&A type community
system.
Source: reference 17
67
Knowledge Communities in
Japan
Inward-looking& High-context
Open & Low context
68
Knowledge Communities in
Japan
1. Most of knowledge communities are IT based
2. Retaining traditional collective decision-making flavour
3. Nickname based on-line communities are increasing in number
4. They prefer one big knowledge community
5. There is a vertical as well as horizontal knowledge exchange
Source: reference 17
69
Knowledge Communities in
Japan
1. Most of knowledge communities are IT based
“fresh and new ideas” issued not from an introverted
community environment but from an open and individual
treasured community environment.
2. Retaining traditional collective decision-making flavour
Some considerations are given to middle managers
as well as young employees. However some sort of a
consensus-based traditional flavour can be seen in newly
built Japanese knowledge communities.
Source: reference 17
70
Knowledge Communities in
Japan
3. Nickname based on-line communities
The use of a nickname enables employees to exchange
knowledge more easily.
4. One big knowledge community is preferred
Some big knowledge communities include all
employees ex. Mitsubishi Electric Company with 90,000
employees.
Source: reference 17
71
Knowledge Communities in
Japan
5. Vertical as well as horizontal knowledge exchange
The coordination between community members and top
management. They could be on equal footing called “dual
context community”, the new social environment of Japanese
companies.
Source: reference 17
72
Knowledge Communities in
Japan
• To give a clear picture of
•
Japanese “knowledge
communities” , Ricoh, well
known manufacturers of
copying machines in Japan,
is an interesting example.
Ricoh has on-line
newsletter-based
“knowledge communities”
that full of specific and
useful business such as how
to persuade customers to
buy Ricoh products, as well
as the articles useful for
employees
Source: reference 17
73
Summary
• Many benefits of Knowledge Management.
• Improved decision making.
• Employees encouraged to share information.
• Support among colleagues improved.
• In Japan, knowledge-based communities use IT
• Prefer one big knowledge community
• Vertical and Horizontal knowledge exchange
Source: reference 3
74
Summary
• Eureka saved $10 million annually
• Voted best KM project in 1999
• Inspired other KM Projects
• Bryan Cave builds flexibility into technology
• There is no “one way” of doing things
• Won the first-ever “Champion of Technology” award
Source: reference 34
75
76
References
1: Steven L. Mcshane & Mary Ann Von Glinow. “Organizational Behavior: Emerging Realities for the workplace revolution.”
Knowledge management, second edition, page 19.
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Vol. 43, Iss. 4; pg 12.
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2002. Vol. 17, Iss. 6; pg 322.
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http://w3.informatik.gu.se/~dixi/km/chap3.htm 03/15/2004
5: Whiting, Rick. “Myths and Realities.” Knowledge Management. Manhasset: Nov. 22, 1999., Iss. 762; pg. 42.
6: Pastore, Richard. “Why We Fear Knowledge Management; Knowledge Management spooks people, especially in this
environment of jobless recovery.” CIO. Framingham, Dec 1, 2003. Vol. 16, Iss. 5, pg 1.
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Dec 1, 2003. Vol. 17, Iss. 5; pg 1.
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Iss.4; pg 32.
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28.
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13: American Society for information Science and Technology ;Feb 1,2003;54,3.
14: http://www.kmmagazine.com/xq/asp/sid.CB3196D9-072F-4CD8-96BA7E66F88A2B1B/articleid.96C4BD01-3AEB-43B5-944E08813C6CD896/qx/display.htm 03/01/2004
15: http://www.knowledgebusiness.com/knowledgebusiness/upload/2003_GlobalMAKE_Summary.pdf 03/07/2004
16: http://www.knowledgebusiness.com/knowledgebusiness/upload/2003AsianMAKE-ES.pdf 03/05/2004
17: http://knowledge.typepad.com/ikms_newsletter/km_in_japan.pdf 03/08/2004
18: http://www.knowledgeboard.com/cgi-bin/item.cgi?id=108645 03/25/2004
77
References
19: http://www.tcm.com/trdev/cops.htm 03/25/2004
20: http://www.wec.org/WEC-Review_Feb03.pdf 03/25/2004
21: http://www.ewenger.com/ewtheme.html 02/25/2004
22: http://www.knowledgebusiness.com/knowledgebusiness/upload/2003MAKEJapanES.pdf 03/07/2004
23: http://www.knowledgeboard.com/cgi-bin/item.cgi?id=96134 03/04/2004
24: http://www.knowledgeboard.com/cgi-bin/item.cgi?id=99458 03/04/2004
25: http://www.pliant.org/personal/Tom_Erickson/KnowCommunities.html 03/25/2004
26: http://www.apmforum.com/emerald /knowledge-management -3.htm 03/01/2004
27: Street Journal. (Eastern edition). New York, N.Y.: Jun 21,2001. pg. B.12
28: Reese, P., “Xerox: Building, Sustaining and Monetizing Knowledge Management” INSEAD, 2003
29: Regani, S., “Knowledge Management @ Xerox Corp” ICFAI Center for Management Research, 2004
30: Seely, B., and Duguid, P., “Balancing Act: How to Capture Knowledge Without Killing It” Harvard Business Review, R00309
May-June 2000
31: Xerox Corporation, www.xerox.com, viewed March 26, 2004
32: www.bryancave.com viewed 03/25/2004
33: David Whelan, "And the Winners Are... Our first annual Law Technology News Awards" Law Technology News. march
2004, Vol. 11, No. 3
34: www.cia.gov viewed 03/25/2004
35: www.boeing.com viewed 03/29/2004
78