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VIKAS

KNOWLEDGE
MANAGEMENT

SudhirWarier
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 PREFACE

Knowledge Management involves enhancing organizational knowledge

through
sound practices of information
management and organizational learning.
Considerable evidence has emerged to show that what matters is not the ability to
generate information but to assimilate it. Knowledge Management deals with using
information which creates value. It is best understood in terms ofa continuum that
begins with raw data.

Knowledge is present in ideas, judgments, talents, root causes, relationships,

perspectives and concepts of every individual. Knowledge resides in an individual
brain or is encoded in organizational processes, documents, products, services,
facilities and systems. Knowledge forms the basis for, and the driver of, post-
industrial economy. Knowledge is the result of learning which provides the only
sustainable competitive advantage. Knowledge is the next paradigm shift in
computing following data processing and information management. Knowledge is
all about action, focused innovation, pooled expertise, special relationships and
alliances. Knowledge is value-added behavior and activities. For knowledge to be
of value, it must be focused, current, tested and shared. This book presents

strategies, techniques and tools to facilitate the design and development of an

organizational Knowledge Management system.

and its
It has been my observation that the field of Knowledge Management
who primarily view the
underlying concepts are not understood by most people,
This has led to myriad individual
field as something not easily conquerable.
from the common man. The absence of
perceptions and has alienated the subject
any suitable text has further precipitated the crisis.

resolve the misconceptions associated with

Thekey objective of the book is to
of the subject in a simple and lucid
the subject and present the core concepts
manner. Strategies for the
successful implementation of a Knowledge Management
In order to enlighten the reader as well present
as
system have also been discussed. have tried my
exclusive chapter has been included. I
the opportunities in the field, an in order to
and avoid complex jargons
best tobalance the composition of the book
make the text comprehensive.
 rv Amowdakgr Afanagement

I have putwhole hearted and sincere efforts to

in
make the text
and self-suficient as possible by
providing explanations and
self-explanator.
ry
as deemed
appropriate. I welcome integrating
fcedback and suggestions from each concents
of the
on the content and
organization this book
of readers

E Sudhir Warier
CONTENTS

preface vii
List of Figures
XV
List of Tables
Xvi
Nomenclature
xviil

CHAPTER
Essentials of Computing

Birth of Computing 1
Evolution of Modern Computing 2
What is Data 3
Data Explosion 4
Data Storage 5
Data Management 5
Architecture, Design and Implementation of Database Systems
Approaches to DBMS 8
Information Processin9 10
Information Technologies 11
Evolution of Information Systems 12
Evolution of IS Hardware 14
Key IS Software Components 16
Implementation of Organizational 1S' 18
Implementation Stages 19
Organizational Learning 19
Traditional Organizational Information Systems 20
Modern Organizational Information Systems 24
Deployment of Information Systems 26
Summary 27

CHAPTER 2
Quality, Re-engineering Methodologies, and Business Paradigms
Introduction 29
Industrial Evolution 30
Quality Methodologies 31
r O Anowrvadgr Management

Control Charts 32
33
Lot Sampling
Process Capability
34

Value Analysis
34
Key Characteristics
34
Total Quality M a n a g e m e n t
35
of TQM 36
Basic Principles
TQM Structure
37

Hoshin 38
TQM Tools 39

Six Sigma
40
Re-engineering Methodologies
40
Business Process Re-engineering
41

Artificial Intelligence
43
43
Beginning
Advancements
44

Approaches
44
Neural Networks 44
Expert Systems 45
Branches of AI 45
Emerging Business Paradigms 46
e-Business 47
Classification 47 49
in der Datenverarbeitung
Anwendungen, Produkte
Systeme, 50
e-Business and Knowledge Management 50
Paradigm
The Information Processing
Knowledge Management
Knowledge Organization 53
Summary 54

CHAP TER 3
Knowledge Management-An Insight
Knowledge Management Evolution 57
Knowledge Management Why Now 58
Limitation of Existing Initlatives 59
Value of Knowledge 59
Minimize Effort Duplication 59
Sharing of Best Practices 59
Enhanced 1Innovation 59
Knowledge Management - Imperatives
59
Organizational Knowledge Management The Need 62
Key Benefits 64
Key Benefit Parameters 64
 Contents C i

Organizational Benefits 64
Core Implementation Areas 64
Organizational Performance 64
Implementation Responsibilities
Core Groups Involved
65
65
Organizational Barriers 66
Key Elements (for Successful Implementation) 66
Organizational Knowledge Management - Drivers 66
Knowledge Based Drivers 67
Technology Drivers 69
Intra-Organizational Drivers 70
Human Resource Drivers 70
Process Drivers 71
Economic Drivers 72
Knowledge Management The Future 72
Global Knowledge Economy 73
Characteristics of the Knowledge Economy 74
Policy Implications 75
Business Implications 75
What is Knowledge Management 76
Organizational Knowledge Management Approaches 77
Management Structures 78

Funding 78
Organizational Culture and Enablers 78
Technology Infrastructure 79
79
Organizational Knowledge Management Strategies
Functions 80
Management Components and
Organizational Knowledge
Learning Organization 82
Knowledge Sources 83
Processes 84
Focus on Products and
Documentation 84
Knowledge Dissemination 84
Organizational Learning 84
Value-Chaining 84
Skill Development 85
Summary 85

CHAP TER 4

Management
Essentials of Knowledge
Introduction 87

What is Knowledge 87
Knowledge 88
Information, and
Data,
 Awowvader AManagement

Wisdom 89

Knowledge 91
Basic Types of
Orpanizational Knowledge Management 93

Orpanizational Knowledge Types 93

Organizational Knowledge Capital 94
Organizational Knowledge Classification 95

Knowledge Life Cycle 96

Organizational Knowledge Sources 97
Organizational Knowledge Processes 98

Knowledge Conversion 104

Organizational Knowledge Progression 105
Technology Enablers 107
Management
Organizational Knowledge
Organizational Intellectual/Human Capital 108

Organizational Metaknowledge 109

SummarY 110

CHAPTER 5
Tools
Techniques, Systems, and
Knowledge Management
Introduction 113
Organizational Knowledge Creation 116
Knowledge Networks 117
Techniques 121
Organizational Knowledge Mapping
Core Implementation Issues 122

Usage 131
Spiral 133
Organizational Knowledge
Organizational Knowledge Acquisition/Capture 135

Implementation Methodology 136

136
Knowledge Acquisition Tools
Indexing 138
Organizational Knowledge
139
Organizational Knowledge Processing
Document Management Systems 141
Database Management Systems 141

Data Warehouse 142

Knowledge Analysis 144

Data Mining 145

On-line Analytical Processing 146
Organizational Knowledge Dissemination 147

Summary 150
 Contents riii

R 6
Organizational Knowledge Management Architecture and
Implementation Strategies
Introduction 151
Developing a KM Framework 152
Implementation Phases 154
Architectural Components 156
KM System Requirements 157
Tools 159
KM System Components 159
Implementation Strategies 161
Awakening Phase 162
Actionable Phase 165
Implementation Phase 167
Maintenance and Measurement Phase 167
Architecture 170
Organizational Organic Capabilities
Business Architecture 170
Information Architecture 171
Data Architecture 171
Systems Architecture 172

Computer Architecture 172

Layered Knowledge Architecture 173

Organizational Knowledge Management Architecture

Key Considerations 178
Organizational Knowledge Repositories 182
Repository Structure 182
183
Repository Life Cycle
Refineries 183
Organizational Knowledge

KM Applications 184
Integrative Applications
184

Interactive Applications 185

Management
185
Applications
Processing
Knowledge
Composite Applications 186

Context 186
Organizational
KM
Collaborative
Platforms 187
187
Organizational
Information
Portals 187
187
Enterprise
Competitive Advantage 188

Portal
189
189
Knowledge
Enterprise
Characteristics 190 Framework 190
Measurement

Knowledge
Organizational 191
Awakening Stage
Stage 1 Phase 191
Actionable

Stage2- Implementation
Phase 193

Stage 3 -
 ar waningrAanqm
195
Support Phase
stage 4 Deployment
196
Organizational
Techniques 197
Stage 5 -Knowledge M e a s u r e m e n t

Orpanizational
I n t a n g i b l e A s s e t N e a s u r e m e n t
197
198
onitor
Assets
Intangible
Baianced Scorecard
199
Organizational I m p l e m e n t a t i o n Barriers 205

206
Sumer

CHAP TER

KCareers

Introduction 207
Knowledge Management Roles 208
New Organizational Roles 208
Organizational K-Role Classification 209
Opportunities 211
Management Job
Knowledge
Knowledge Job Approach 211
Generic Role Requirements 212
Role Description 213
Knowledge Architect 213
Knowledge Strategist 214
Knowledge Manager 215
Research Analyst / Manager 215
Knowledge Management ConsuBltant 216
Media Specialist 216
216
Senior Market Intelligence Librarian
Ontologist/Knowledge Engineer 217
Specialist 218
Knowledge Management
Content Developer 218
Intranet Developer/Knowledge Management
Director 219
Knowledge Management
Director of Ontologies 219

Ontologist (Biological Domain) 220

221
Natural Language Processing Specialist (Medical/Biomedical)
Knowledge Development Manager 221
Summary 222

References 223

Bibliography 225

Index 229
 and extremely compctitive
momaons hughy volatnlc
In the
tda, knowledge is people, money, leverage, rning, flexibility
global ecor
atvantage. Knowledge is more relevant to Sustainod PoWe
mpcanve and
capital, labor or land.
Nevertheless, it remains the most
morc than usntied ruc beliet and is esscntal for action, perf
neglected set. an
ness th
It w
adanwn. Knowledee provides organizations with the ability to respeo
and
dvantage over their nov
Siaons and thus generate And sustain compctitive advantape c
t
Knowledgr is inherent in ideas, judgments, talents, root causes, relat.
Ispectives, and concepts. Knowledge is stored in the individual ionshi
encoded in onganizational processes, documents, products, serv brain or
and srstenms Knowledge is the basis tor, and the driver of the curren. faciities,
econom. Knowledge is the result of learning which provides the
the only sustainal
only sustain
competitve advantage. Knowledge results in enhanced and
nd effectvea
effectve ac
focused innovation. pooled expertise, special relationships,
and
Knowledge results in value-added behavior and activities that result in tans
alliance
beneiits to an organization. However, for knowledge to be of value it muet
be
focused, current, tested, and shared. There is no consensus on what knowled
is. Over the millennia, the dominant
philosophies of each age have added thei
own definition of
knowledge to the list. Science has added to this list as wel.
Organizatonal knowledge can be defined as understanding of the intrinsic systems
ns
rOcesses that could be take etfective
employed to action to achieve the
organizational goal. There are different kinds of knowledge, and a number of
different knowledge classification schemes and taxonomies. It is important to
recognize the important and general classes of knowledge, which influence the
deployment of KM within an organization.

Data, Information, and Knowledge

Data, information, and knowledge are closely interconnected. Data lies at the
lowest layer in the knowledge chain and acts as the raw material for the
knowledge
process as described in the previous chapter. Data refers to the unformatted,
unstructured material freely available around us which by itself does not provide
any mean1ng. The various signals-acoustic, visual, tactile and otherwise that are
around us could be interpreted as having information. The relation between
data and information formally is that, information is a
structuring of data that
reduces uncertainty. Information value of a message 1s higher if it reduces more
uncertainty. In a more informal way, it could be saxd that information is interpreted
data. Knowledge is the interpretation of information in the
eye of a beholder
using his own history, his experiences, insights and interpretation. It
is because of
this reason that the same information may lead to different
individuals. In other words,
knowledge for various
 Ernhal of Kmowedee Mam.arment 89

Dalta
Imformatron
o n i e v y =Intory

InterpretedData

InterpretedInformation
Á monvieage

+Experiences, Insigbis, }udgment (of an individual)

i x r o r m a t t o n

= Knouvleage

W i s d o m

of the human mind characterized by profound understandng

of t
state
a
sdom i s
is often, but not necessar1ly,
tis
It accompanied by extensive formal
insight.
anddiecp acquire wisdom, and wise people can be
U'nschooled people
knowiedge. l'nschooled
can

class ofpeople. Wherever it exists, wisdom exhibits

the common
tound
among
he
of the relativity and relationships among things. It is an
perceptton
as a of
that does not lose sight particularity
self or concreteness,
wholeness
wzreness o fuof
interrelationships. It signities the ideal blending of the left
intricacies of
the of logic
o r of
of thelhuman brain resulting in a perfect synergy
hemispheres nor is it an
nd nght confined to a specialized field,
isdom cannot be that
and
practicality.
consciousness of wholeness and integrity
it 1s the
Cademic discipline; that is available to the present
The amount of knowledge
ranscends both. correlative increase in
there has been no
considerable. However,
oeneration is contribute to wisdom.
Some of these
several factors that
the
wisdon. There
are
take a c c o u n t of all
the capacities to
sense of proportion;
the This
factors are understand its weightage.
associated with a problem and
important
factors
extent and complexity
of the specialized
difficult owing to the
become more
has various disciplines.
individuals from
knowledge required by lite. It is
social but equally in private
purposes,
not only for
Wisdom is needed
assure
and in the process
of ends to be pursued
CSsential in determining
the choice wisdom lies in viewing
the
The e s s e n c e of
of bberation from personal
prejudice. of the individual
as
to the growth
world with impartiality
and thereby contributing trom knowiedge
of progression
the initial stages
2s the society at large. During
condituon.
e about his own physical
concerned only to
o wIsdom, an individual is horizon in proportion
individual widens
his/her and less
oTadually, with the years, an becomes less personal
and in the process wisdom.
his/her oughts and fecling thereby achieving
growing
physical states,
WIth their own
pont
at this
C d
readers
in the minds of the be
can
uestion that is likely to emerge
in some degree
e Wisdom
is whether wisdom c a n be taught.intellectual
of has been
tume element than
have a larger
nisS
teaching should
 Ishman m what is been
thought of as moral i.

knowledge which is roquired for various kinds son. The kin

of sk
wisdom. But it should be supplemented
in
education has ve kind of spee
ts place in the total of
human acti by very little
and skill, 1sdom becomes more wider surv t
ndivdual as well as onganizati- necessary. This ano nts our capacity
eys ease of knercaeusle
as well as
onganizanonal capacity topurposes, and
perform therefor
Example: augments i
unwarranted acts.
The tollowng exampie would highlight the
through information and progressinn
knowledge: from data to
This example uses a bank savings account
knowiedge, and wisdom relate to the
to
show how dats
principal, interest rate ,nfom
terest rate,
Data The numbers 100 or
5%, devoid of
Similarly, the words interest, principal, and context, are
and ntormaton
interest
context and are not of interest rate, just pieces of daa
any value as each has by themselve o
dependent. multiple meanings whie are out oi
Information For an
individual
(context), the terms interest, wishing to open a bank
that principal, and interest rate
context, with specific interpretations.
savino
the amount of In become
this meaningh
money, Rs.99, deposited/ to be case, principal would refe
account. The Interest rate,
interest on the
7o, would be the factordeposited within th
used by the
principal. bank to coosavings
Knowledge Knowledge refers to the realization
deposited Rs.99/- in the of the
savings account, and the individual that if he
interest yearly, then at the end if the bank provided
of one
beRs.105.93. This pattern year, the amount in his bank 7,
account would
understand how the patternrepresents
will
knowledge which allows the
individual
evolve over time and the to
Understanding the pattern is equivalent to results it will
produce.
The individual thus realizes that if he gaining knowledge for the individaual
interest, whereas if hedeposited
would earn more more
money in his
interest would be reduced. withdrew money from the account, he
account, the
Wisdom The
progression to wisdom
complicated and is contained in the systemsbased the above facts is a litle
on

action which
produces a result and which
principles. The principle is that, any
produces an encourages more of the same acton,
emergent characteristic called
or sooner or
later growth runs growth. And, nothing grows torever,
into limits. If
components of this one studied all the indivicdual
pattern, which represents
discover the
emergent characteristic of knowledge, they would nevct
growth. Only when the pattern conteects,
 Essentials of Kmowledge Management 9 1
er
ves Ove
time, does the
principle exhibit the characteristic of
cra
period of time, the individu would realize that bank rates
us nd the current ret
a n d t i
may not be valid for the tenure of
steady
of better avenues of investment.
be the p r e s e n c e
natcly
y
o r altern

ahove example, a person with a higher level of wisdom

In lyht of
a b l e t o
hend that even though some
c o m p r e h e r
cooperative
banks may
h db e
return, the associated risks are higher. Hence it would be
hugher rate o f

t e Ta hug well
known nationalized bank.
kno
m a
unvest

hient
to
ntrast to data and information, is highly related to the
Knov in cont,

t hthe
e knowledge. However, knowledge itselfis not something
knowled

cognition. Knowledge has to be mentally

p O s s e s s e s

Who someones
Nn nade in
andconstructed again and again depending on the circumstances
that s r e a d y m a

smcTured of the key contributory factors

that make it difficult
isThis
of pplication. 7 h
one

in content or in form.
hand o n knowledge
or lay a
to,

grasp
o KNOWLEDGE
TYPES
OF
B A S I C

to imply that the relation

entioned above can
be retormulated
person receives data
T h e c o n c e p tm e n t i o n e
means that a
and knowledge
berween data, data, information, data becomes
has,
information, which in turn
o r she
knowledge he Various aspects of knowledge
with the
and of the interpreting person.
wledge
changest h e k n o w l.
of knowledge unequivocally
ssible to define types and cultural categories
almost
make it psychological,
the field of KM have
epistemologiCal,
conflicting associated with
Traditonally,
experts
Various
knowledge.
distinguished. c l a s s i f i c a t i o n of
an easily be the types and
vIews on
different categorization:
accepted
propounded the following generally
would employ
procedural knowledge,
we
However,
also referred to
as

Tacit knowledge, in its environment,

Tacit knowledge and react
needs to act
the knowledge
that a being related to intuitions,
feelings and
refers to unformalized, tacit
cricket. It is explained,
for example to play be easily
documented or
often
model, and
cannot

emotons. Tacit knowledge apprenticeship

an
through non-structured,

knowledge is
transferred
best
knowledge is ins truction. Tacit values,
pure insights,
skills that supersede
Tequres experiences, ideas,
and represents
be recorded
intangable, c a n n o t
which
and judgments of people. or
stances to
presuppositions
are not
thought of
as stances

1acit knowledge may be us to. Such the

are committing
under
beliefs
actions and behaviors
many of
occurrent
our as
be expressed background
occurrent beliefs, although they may
constitutea
kind of cognitive
of this
kind
Rather, they An example
ppropriate circumstance a r e the few'people
case.

certain things
knowledge
or
dispositic to believe that
a r e rigid-
a bit
of

oftacit OWIedge
knowledge is that objects
 02 7moder Mamagoment

ver bother to formulate but ich

acthons as sitting n a chair. [13|
is
evidenced in
such
Explicit knowledge iplicit knowledge bastc eve
also
kmowledgereters to knowle
onds documented. Explicit be, written
that is, or can
.

referred to a as proced
knowledge is dow n
or recorded
knowledge. Documents, semi-structurel. c-mail, voice .
or
n her edura
cxamples of this form of knowledge. presents cte
mail, multimedia
«

Thedistinction between tacit)knowledge and angphle

ctc. 27
been expressed in terms of knowing-how and explicitk knowledge
terms of a
knowing-that,
corresponding distinction between embodied hasss
knowledge. On this account, knowing-how or knowledos
embodied knowlede spectively, o
of the expert, who acts, makes
judgments, and so forth
the principles or rules involved. An rth 'wwithout
ithout
s charactenst theoreteal
his or her work; he or she expert works with
just performs skillfuly without
explicitly reflec
ithout hav1ng
e

a
attention. deliberat theory
Knowing-that, by contrast, involves consciouslydeliberation or focused
that can be articulated and is accessible know
characteristic of the
explicit instruction, adherence to rules, person
learning skill t
observing skilled people
a owledge
such declarative knowledge may be needed for the
at worL through
longer becomes necessary for the practice of
those skills acquisition of While
the novioskills,
an expert in
exercising them. Once an individual acquires once
corresponding understanding [14. The concept of tacit and a
skill, they also ecomes a

pictorially depicted in the figure 4.1 below explicit knowledoe

geis
Documented Not Documented

Explicit Knowledge
Knowledgge Gaps

Tacit Unknown
Knowledge Gaps

Figurc 4.1 Tacil and Esphcit Knowledge

Potential knowledge Potential
and refers
knowledge represents business intelligene
to
knowledge that
be extracted from highly structured data
can
sto
in databases- ERP n
systems and business operational applications:
Organization contains voluminous amount of data from various sources a

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