Knowledge Management
By: Jenny Enderby
and Chris Papin
What is Knowledge Management?
According to
KM is caters to the critical issues of organization adaptation, survival and competence in face of increasing discontinuous environmental change Essentially, it embodies organizational processes that seen synergistic combination of data and information processing capacity of information technologies, and the creative innovative capacity of human beings.

Refers to a set of information with which we have experience
Usually gained through work, school or other life experiences


Refers to the ability of an individual or group to lead and organize others in business to produce a desired outcome

The Knowledge Process
The Knowledge Production

Information Acquisition
Individual and Group Learning
Knowledge Claim Formulation and Evaluation

The Knowledge Process
Knowledge Integration

Knowledge and Information Broadcasting
Searching and Reviewing
Knowledge Sharing
Put it all together
Knowledge production and integration compile together with non-electronic information as well as electronic information to for a database of knowledge that is the basis for KM.
Electronic Information
Data Mining and Data Warehousing

Two tools that help turn information and data into useful knowledge

Data Warehouse

A database that stores larges amounts of historical business data

Another way: Warehousing brings your data together for analysis
Data Mining

The practice of extracting data from a warehouse in order to analyze patterns trends and relationships
Another way: Mining sorts through the data you collected and turns up interesting and useful connections
Why Use DM?
Firms identify patterns which generate valuable knowledge for the company

How Companies Use DM
Market Segmentation
Customer Churn
Fraud Detection
Direct Marketing
Interactive Marketing
Market Basket Analysis
Trend Analysis
Fraud Detection Example

Wal-Mart Example

How These Apply to KM
DM and DW can turn data into useful knowledge that can give companies a competitive advantage over their rivals

DM takes a proactive approach to selling products to customers rather than a reactive approach by predicting patterns, trends, and behaviors.
Why So Difficult
Implementation of KM programs

How to estimate the return on KM

How to store KM data

Techniques on utilization of the knowledge
Implementation Problems
Knowledge is Power

Incentive structures to share information

Resistance to Change

People are reluctant to change

56% of executives say changing people’ s behavior is the most difficult obstacle

Sharing knowledge is an unnatural act. You can’t just stand up and say, ‘Thou shalt share knowledge’ îit won’t work.
Returns on KM
KPMG invests $40 million

Quality knowledge is the goal

Data separates you from the competition
How to Store New Data
New techniques to gather, store, process and distribute this kind of knowledge

It isn’ t contained in typical rows or columns

How do we store the human element?
Utilization of the Knowledge
Problems with change

Dept. of Defense and post combat data

Management must encourage change
Implementation Barrier
94% of business executives believe that it would be possible, through more deliberate management, to leverage the knowledge existing in [their organization] to a higher degree

Implementation Barrier
71% believe embedding knowledge in process, products, and/or services

Why not in the people making these processes, products and/or services?
Implementation Case Study
E&Y implements a knowledge management system in an effort to reach $1 billion in revenues by 1997.

Process called Future State 97 or FS97.
A major focus was to capture knowledge

Elected a Chief Knowledge Officer

Formed a Center for Business Knowledge
People were the key

Technology was the enabler

How do you adapt to the change needed?

E&Y had the same difficulties as others
Implementation was a new venture and risky

Returns are still not 100% clear, though they are assumed to be part of the KM program

How did they obtain and keep the data?

Problems getting the knowledge distributed


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