Knowledge is power……

……… but only when it’s accessible, organized and relevant.

Knowledge Management can help you manage and apply
your team’s knowledge more efficiently, giving you the
competitive edge in the marketplace of the 21st century.
Creates exponential benefits from the knowledge as the people learn from it.

 Has a positive impact on the business process.

 Enables the organization to position itself for responding quickly to customers, creating
new markets, developing new products and dominating emergent technologies.

 Builds mutual trust between knowledge workers and management and facilitates
cooperation in handling time sensitive tasks.

 Builds better sensitivity

 Ensures successful partnering and core competencies with suppliers, vendors, customers
and other constituents.

 Shortens the learning curve, facilitating sharing of knowledge and quickly enables less
trained brokers to achieve higher performance level.

 Enhance employee problem solving capacity by proving access to complied subject,

customer reference and resource files available either directly through the system.
Are YOU Do YOU

A Developer ? Find yourself reinventing the wheel

A Manager ? Need to make informed decisions
to complex situation
A Planner ? Need to make contingency
(possible event) plans to minimize
risks
 Your success in the Digital Age is keyed to

Filtering extraneous information

Capturing usable knowledge

Organizing it so that it can be found and applied

• A Learning organization is the term given to a company that facilitate
the learning of its members and continuously transforms itself.

• Learning Organizations develop as a result of the pressure facing

modern organizations and enables them to remain competitive in the
business environment.

• A Learning Organization have five main features :-

System Thinking

Personal Mastery

Mental Models

Shared Vision

Team Learning
There are many benefits to improving learning capacity and knowledge
sharing within an organization. The main benefits are:-

• Maintaining levels of innovation and remaining competitive

• Being better placed to respond to external pressures

• Having the knowledge to better link resources to customer needs

• Improving quality of outputs at all levels

• Improving corporate image by becoming more people oriented

• Increasing the pace of change within the organization

 1. SYSTEM THINKING

• System Thinking is a tool of System Analysis means how do we

understand the complexity of an organization

• System thinking is a way of helping a person to view system from a

broad perspective that includes overall structures, patterns and cycle in
system rather than only specific events in the system.

• This broad view can help you to quickly identify the real cause of issues
in organizations and know just where to work to address them.
• By focusing on the entire system, consultants can attempt to identify
solutions that address as many problems as possible in the system.

• The positive effect of those solutions leverages improvement

throughout the system. They are called “Leverage Points”.

• This priority on the entire system and its Leverage Points is called
System Thinking.
 2. PERSONAL MASTERY

• Personal Mastery is the commitment by an individual to the process of

learning.

•There is a Competitive Advantage for an organization whose work force

can learn quicker than work force of other organization.

• Learning is acquired through training and development.

• Also it is important to develop a culture where personal mastery is

developed in daily life.

• A Learning Organization has been described as the sum of individual

learning.

• But, it is important to develop mechanisms by which individual learning

is transferred into an organizational learning.
 3. MENTAL MODELS

• Mental Models are the terms given to embedded assumptions held by

individuals and organizations.

• the organizations have “memories” which preserves certain norms and values.

• Individuals tend to have adopt theories which they intend to follow.

• In case of Learning Organizations the theory of mental Models have been

changed.

• in the creation of a learning environment it is important to replace challenging

attitudes with an open culture that promotes inquiry and trust.

• In order to achieve this the Learning Organizations will have mechanisms for
locating and assessing organizational theories of action.

• The unwanted values held by the organization, need to be discarded in a

process called unlearning.
 4. SHARED VISION

A shared vision is much more than a list of goals. It needs to be

something that inspires people and gets them to pull together
for cooperative action. People really get energized by what their
group is trying to accomplish. They pull together to accomplish
something worthwhile. Ideally, people can see a personal role in
bringing the vision to life. This is the shared “characteristic” of
a shared vision. The following cultural qualities are associated
with a shared vision at the workplace.
• Share vision presume that every organization has a destiny, a “deep
purpose” that expresses the organization’s reason for existence.

• Clues to an organization’s deeper purpose can be found in the founder

aspirations and the reasons why the industry came into being.

• Ideally, to be truly shared visions, they must emerge from many people
that hold similar understandings of the organization’s purpose.

• By asking questions and learning to listen carefully to the answers, the

sense of shared vision grows.

•The key is to design in a process in which people at every level of the

organization, in every role can speak openly about what really matters to
them and really be hard.
 A Shared Vision exists when people

• Are inspired by the purpose of the group or organization

• Feel that their values and ideas are incorporated into what the
organization is trying to achieve

• Can easily communicate the mission and directions of the organization

• Recognize that both individual and organizational needs are being

addresses

• See how day to day activities support the overall goals of the
organization
 5. TEAM LEARNING

• Team Learning is the accumulation of individual learning.

• The benefit of sharing capacity of the organization is improved through

better access to knowledge and expertise.

• Learning Organizations have structures that facilitate team learning with

features such as boundary crossing and openness.

• Team learning requires individuals to engage in dialogue and

discussion.

• It is important that team members develop open communication, shared

meaning and understanding.
 EXERCISE

Discuss the problems / Issues that may be encountered in a Learning

organization.

Instruction-

Organizational barriers to learning

Individual barriers to learning

 The most important challenge for any organization is how to attract
customers and later to retain them

Primarily the companies in the service delivery business for instance are
faced with three key challenges:

1. How to change their method of attracting customers and servicing their needs
in the new world of Internet and Electronic Commerce

2. How to transform its processes and implement Information Technology

Enablement to build the market facing enterprise

3. How to reengineer the mindsets of employees and enable individual and

corporate learning to happen in an institutional manner
Managing Knowledge is becoming a business imperative
for those corporations who want to protect their present
market share, build future opportunity share and stay
ahead of competition
Knowledge Management is the newest tool for the companies to derive
the best out of their company

And the more practical aspect is KM could be applied before, during and
after restructuring process.

Why restructuring operations?

Mainly this is done to minimize transaction costs, provide strategic

output and input price advantages and reducing uncertainties in costs &
prices.
The test for restructuring:

• How risk prone is your organization in the current business environment

• In terms of performance how would you rate your organization? Do you really
think a major overhaul would improve performance?

• How risk prepared is your top management team?

• Does your Top Management encourage innovation? Whether Top management

is pro-change or anti-change?

• Is your organizational culture and management style hidebound traditional one

or is it professional and decision making decentralized
• Does communication in your organization cut through hierarchy or is it still top
down

• What is the level of job motivation

• How sound is your relationship with the workforce

• How profitable is your organization? Can it afford expensive solutions like ERP
and BPR?

• How much is the international and national reach of your organization

•What about external exigencies like currency risk? Political risk?

• How seriously business cycle changes affect your organization

• How strong is your competition

 TECHNOLOGY DRIVER
• The explosion of technology, data communications, networking and wireless
transmission has revolutionized the way employee store, communicate and
exchange data at high speed.

• www has changed KM from a craze to an e-business reality.

• With a personal computer costing $600 anyone can access people and
information at any time and any where.

• Today the technological infrastructure makes it possible to store, communicate

and exchange knowledge.

• The TECHNOLOGY today is a core capability leveler, and KNOWLEDGE as a

competitive differentiator.
It means that although technology can move information or knowledge
from Chicago to Bombay at the speed of light, it is people who turn
Knowledge into timely and creative decisions.

Tomorrow’s successful companies are ones that use Information

Technology to leverage their employee’s Knowledge in ways that make
Knowledge immediately available and useful. It also implies Quality
Maximization and Cost Minimization over the long term.
 PROCESS DRIVERS
• One of the most critical sets of KM drivers is designed to improve work
processes.

• Starting from the scrape with each project every time has no sense in terms of
efficiency, productivity and value added contribution to company’s bottom line.

•Implied in this are is the elimination of duplicate mistakes by learning from the
past and by transferring the best experiential knowledge from on [project to
another.
• Another area where KM can improve process is the way companies react to
market changes.

• “just In time” is one approach to minimizing investment in inventory and more

speedy meet the demands of consumers.

• Responsiveness that exceeds the competition becomes the key contributor to

differentiation.

•I t require knowledge of control processes.

• KM means allowing companies to apply unique knowledge that makes them

more responsive to market changes.
 PERSONNEL – SPECIFIC DRIVERS
This area of KM drivers focuses on the need to create cross-functional teams of
knowledge workers to serve anywhere in the organization and minimize
personnel turn over as a threat to collective knowledge.
 KNOWLEDGE –RELATED DRIVERS

This KM driver is related to the concept of knowledge sharing and

knowledge transfer within the firm.

They include making critical knowledge available at the time it is needed

and finding mechanism to speed up available knowledge for immediate
use.
 FINANCIAL DRIVERS

Knowledge Assets increase in value as more and more people use them.

Knowledge follows the law of increasing returns- the more knowledge is

used, the more value it provides.

KM provides a worthwhile opportunity to integrate knowledge to improve

decision making throughout the organization.

In the final analysis, the goal of KM is to produce a positive return on

investment in people, processes and technology.

It means measurable efficiencies in production, sales and services on a

daily basis, improving the quality of decision making, brining your partner
up to speed, improving employee moral and improving customer
employee relationship through better trust in knowledge worker
3000 BC The age of philosophers (Aristotle / Plato)

2000 BC Political Turmoil's

1000 BC Age of learning

1000 AD Theosophy (Block Printing)

1700 AD Industrial Revolution (Printed books manuscript)

1950s Management by Objectives

1960s Centralization and Decentralization

1970s Automation

1980s Downsizing

1990s Market Valuation

2000 Knowledge Management

Codification Personalization
IT Centric Creative

Objective Subjective

Data Oriented Information Oriented

High quality IT resource Customized IT

Wider reuse of DATA Selective reuse

Low Skills High Skills

High Volume Specific to application

Predictable solution Innovative Solution

 How Consulting Firms Manage their Knowledge

Codification Competitive Strategy Personalization

Provides high quality, reliable and fast information
systems implementation by reusing codified knowledge
expertise
Reuse Economics
Invest once in a knowledge assets, reuse it many
times. Use large teams with a high ration of
associates to partners
Focus on generating large overall revenues
Provide creative, analytically
advice on high level strategic
problems by individual
Expert Economics
Change high feels for highly
customized solutions to unique
Economic
problems. Use small teams with a
Model
low ratio of associates to partners
Focus on maintaining high profit
margin

People-To-Document
Person-To-Person
Knowledge
Develop an electronic document system Management Develop networks for linking
that codifies, stores, disseminates and Strategy
people so that tactic
allow reuse of information
knowledge can be shared
 Invest moderately in IT, the goal
Invest heavily in IT, the goal is to connect Information is to facilitate conversations
people with reusable codified knowledge Technology
and the exchange of Tacit
Knowledge

Hire new college graduates who

are well suited to the reuse of Hire MBAs who like problem

knowledge and the implementation solving and can tolerate

of solutions Train people in groups ambiguity

Human Resources
and through computer based Train people through one to one
distance learning mentoring

Reward people for using and Reward people for directly

contributing to document database sharing knowledge with others

Andersen Consulting, Ernst &

Examples McKinsey & Company, Baln &
Young
Company
Information :- relates to description, definition or perspective (what, who, when
& where)

Knowledge :- Comprises strategy, practice, method or approach (how)

Wisdom :- embodies principle, insight, moral or archetype (why)

Business Intelligence :- is the process by which business gather information

specific to their use

Logic :- is the sequential decision making process in an organizational context

Technology :- Particularly information technology is aimed at information and

knowledge

Strategy :- is the business strategy which incorporates, information and

knowledge
Explicit Knowledge :- Knowledge that individuals are able to express
fairly easily using language or other forms of communication – visuals
sound movement

Tactic Knowledge :- Knowledge that an individual is unable to

articulate and thereby convert into information. Tactic knowledge is more
useful to an organization system if it can be transferred to others so they
too can use it.

Transfer of explicit knowledge is relatively straightforward. Transfer of

tactic knowledge can be achieved either by first converting it into explicit
knowledge and then sharing it.
Another way to look at forms of knowledge, which may be more helpful to
organization than the tactic versus explicit distinction is as follows:

Known Knowledge:- Knowledge that individual knows.

Unknown Knowledge:- That the individual does not know he knows because he
come embedded in the way he works.

Shallow Knowledge:- This is the information that can be easily retrieved from
database using a query tool such as a structured query language (SQL)

Multidimensional Language:- This is information that can be analyzed using

online analytical processing tools. The OLAP tools have the ability to explore all
sorts of clustering and different ordering of the data.
Hidden Knowledge:- This is the data that can be found relatively easily by using
pattern recognition or machine learning algorithms.

Declarative Knowledge:- Describes something

Procedural Knowledge:- Explains how something occurs or is performed

Casual Knowledge:- Tells people why something occurs

General Knowledge:- Has a broad scope largely independent of particular

events

Specific Knowledge:- Is context related

Deep Knowledge:- This is information stored in the database but can only be
located if we have a clue that tells us where to look.

It embodies organizational processes that seeks a synergistic combination of data

and information processing capacity of information technologies, and the creative
and innovative capacities of human being.

It emphasizes the role of information and control systems for aligning the
organizational actors, factors and forces with the predefined “best practices”
 Past Current Search
Information Learning Knowledge Capabilities
System

Knowledge Base
 An enterprise must state its business strategies and
objectives. The knowledge requirements have to be identified
to meet these goals.

The difference between what the enterprise requires and what currently it
has is KNOWLEDGE GAP.
 What your Strategy What your
company must company must
knowledge do
know gap

Knowledge Gap Strategic Gap

Knowledge What your

What your
company knows strategy company can do
link
 Knowledge Management practices

• Identification of knowledge that may be useful

• Capture or retrieval of knowledge

• Validation of knowledge within or outside the organization

• Contextualizing and re-contextualizing – looking for common aspects and

differences between the original context of the knowledge and the intended
context