Knowledge Management (INSY 521)

By
Dr. Temtim Assefa
School of Information Science
Addis Ababa University
2020
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Course Objective
• Explain basic concepts in the field of knowledge
management
• explain historical and societal challenges that
lead for the development of KM discipline
• understand the different theories, principles and
approaches used to in knowledge management
• Identify the different knowledge taxonomies
• describe knowledge management cycles
Temtim Assefa (PhD), Addis Ababa University
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Course Objective
• Identify the different knowledge management
tools
• Able to explain knowledge acquisition methods
such as from domain experts
• Develop basic skills to analyze and design a KMS
• Develop a skill to manage a KMS within the
organization

Temtim Assefa (PhD), Addis Ababa University

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Teaching Strategy
• The course will be delivered in the form of
▫ lectures,
▫ demonstration,
▫ students’ presentation,
▫ group discussions, and
▫ individual and group project works.

Temtim Assefa (PhD), Addis Ababa University

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Assessment Methods
Assessment Types   Of the
total %
 Class Participation 5
 Assignments 10
 Mid exam 15
 Project 20
 Final examination 50

Temtim Assefa (PhD), Addis Ababa University

wana (2002). The Knowledge Management Toolkit: Orchestrating IT, Strategy, and Knowledge Platforms (2nd Edition). Prentice Hall. ISBN: 01300
6

References
Textbook

1. Irma Becerra-Fernandez and Rajiv Sabherwal (2010). Knowledge

Management Systems and Processes. New York: M.E. Sharpe, Inc.
2. Knowledge Management Challenges, Solutions, and Technologies
(edition with accompanying CD). Prentice Hall. ISBN: 0-13-109931-0.

References Materials:
3. Elias M. Awad, Hassan M. Ghaziri (2004). Knowledge Management.
Prentice Hall. ISBN: 0-13-034820-1.
4. Ian Watson (2002). Applying Knowledge Management: Techniques
for Building Corporate Memories. Morgan Kaufmann. ISBN:
1558607609.
5. Madanmohan Rao (2004). Knowledge Management Tools and
Techniques: Practitioners and Experts Evaluate KM Solutions.
Butterworth-Heinemann. ISBN: 0750678186.
Temtim Assefa (PhD), Addis Ababa University
Chapter 1 - Introduction

Chapter 1: Introduction to Knowledge Management

•Knowledge Management Definition?
•Alternative views of knowledge
•Different types of knowledge
•Location of knowledge
•Forces driving knowledge management
•Knowledge management systems
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Temtim Assefa (PhD),

Addis Ababa University

Software Knowledge

Capability
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Introduction to KM
• Knowledge management (KM) is a process
that helps organizations identify, select,
organize, disseminate, and transfer important
information and expertise that are part of the
organization’s memory and that typically reside
within the organization in an unstructured
manner.
• It is a process through which organizations
generate value from their intellectual property and
knowledge-based assets
Temtim Assefa (PhD), Addis Ababa University
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KM?
• KM involves the creation, dissemination, and
utilization of knowledge
• It is also viewed as the intersection between
People, Processes and Technology
• The information technologies that together make
knowledge management available throughout an
organization are referred to as a knowledge
management system (KMS).

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Concepts of Knowledge
• Difference among data, information and
knowledge
• Data is a raw facts on any thing
▫ Example - Addis Ababa, 1000, 1.8cm
• Information is
▫ a processed data meaningful to the user
▫ A relationship between data sets
▫ Example
 Addis Ababa has 150c daily temperature
 Gambela has 300c daily temperature
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Alternative views …
• Information can have different meanings
in different contexts
▫ 40 degrees can have different meanings.
▫ Is the context of Medicine, Geography or Engineering?
• Example
▫ 40 deg Celsius (is a sign of fever in Medicine);
▫ 40 deg Angle (has a shape like V in Geometry)

Temtim Assefa (PhD), Addis Ababa University

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Knowledge
• Knowledge is information combined with experience,
interpretation and reflection of an individual
• Knowledge is a justified personal belief.
▫ Knowledge is relative to the knower
▫ More structured information in the human mind
• A capability to apply information
• Example
 The programmer salary is small, I will not be a programmer
• Actionable information
Temtim Assefa (PhD), Addis Ababa University
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Wisdom
• It is Knowledge that is combined with Learning,
Insight, Intuition and Judgmental abilities.
• Almost exclusive to our own minds.
• An Ability to make wise decisions and
judgment using one’s knowledge
• Example – King Solomon’s decision for two
mothers

Temtim Assefa (PhD), Addis Ababa University

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Temtim Assefa (PhD),

Addis Ababa University

Data to Knowledge Hierarchy

Wisdom
Knowledge
Information
Data
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From Facts to Wisdom

Temtim Assefa (PhD),
Addis Ababa University

one example of the hierarchy

Volume Less is Value

Completeness More Structure
Objectivity Wisdom Subjectivity

Knowledge

Intelligence

Information
Facts
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Temtim Assefa (PhD),

Addis Ababa University

Data Knowledge
Information Information
Knowledge
Simple observations Data with relevance Valuable information
of the world: and purpose: from the human mind:
•Easily captured •Requires unit of includes reflection,
•Easily structured analysis synthesis, context
•Easily transferred •Needs consensus on •Hard to capture
meaning electronically
•Compact,
quantifiable •Human mediation •Hard to structure
necessary •Often tacit
•Often garbled in •Hard to transfer
transmission •Highly personal to
the source
More human contribution
Greater value

The relationships between data, information, and knowledge.

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– Alternative views Knowledge

• Subjective View of Knowledge
▫ According to the subjective view, reality is socially
constructed through interactions with individuals (Schultze
1999).
▫ Knowledge is viewed as an ongoing accomplishment that
continuously affects and is influenced by social practices
(Boland and Tenkasi 1995).
▫ Knowledge cannot be placed at a single location, as it has no
existence independent of human experiences
▫ knowledge could be considered from two perspectives, either
as a state of mind or as practice.
Temtim Assefa (PhD), Addis Ababa University
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Temtim Assefa (PhD),

Addis Ababa University
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Subjective View of Knowledge

• Knowledge as State of Mind
▫ This perspective considers knowledge as being a state of an
individual’s mind.
▫ Organizational knowledge is viewed here as the beliefs of the
individuals within the organization
▫ Various individuals have differing experiences and
backgrounds, their beliefs and hence knowledge, could differ
from each other.
▫ Under this view, the focus here is on enabling individuals to
enhance their personal areas of knowledge
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Subjective View of Knowledge …

• Knowledge as Practice
▫ According to this perspective, knowledge is also
considered as subjective but it is viewed as being held
by a group and not as being decomposable into
elements possessed by individuals.
▫ Thus, from this perspective, knowledge is “neither
possessed by any one agent, nor contained in any one
repository” (Schultze 1999, p. 10).
▫ Moreover, knowledge resides not in anyone’s head
but in practice.
Temtim Assefa (PhD), Addis Ababa University
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Objective View of Knowledge

• The objective view is the diametrical opposite of the
subjective stance.
• Reality is independent of human perceptions and can
be structured in terms of a priori categories and
concepts (Schultze 1999).
• Consequently, knowledge can be located in the form of
an object or a capability that can be discovered or
improved by human agents.
• The objective view considers knowledge from three
possible perspectives.
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Objective View …
• Knowledge as Objects
• This perspective considers knowledge as
something that can be stored, transferred, and
manipulated.
• Consistent with the definition of knowledge as a
set of justified beliefs, these knowledge objects
(i.e., beliefs) can exist in a variety of locations

Temtim Assefa (PhD), Addis Ababa University

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Objective View …
• Knowledge as Access to Information
• This perspective considers knowledge as the
condition of access to information (Alavi and
Leidner 2001).
• Thus, knowledge is viewed here as something that
enables access and utilization of information.
• This perspective extends the above view of
knowledge as objects, emphasizing the
accessibility of the knowledge objects.
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Objective View …
• Knowledge as Capability
• This perspective is consistent with the last two
perspectives of knowledge as objects or as access
to information.
• The focus is on the way in which knowledge can
be applied to influence action.
• Emphasize knowledge as a strategic capability
that can potentially be applied to seek a
competitive advantage.
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Different types of knoweldge

• Knowledge is classified into different categories
in the existing literature
1) Procedural or Declarative Knowledge
• Declarative knowledge (facts) focuses on beliefs
about relationships among variables
• Procedural knowledge (how to ride a cycle)
focuses on beliefs relating sequences of steps or
actions to desired (or undesired) outcomes.
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Different types of knoweldge …

2) Tacit or Explicit Knowledge
• Another important classification of knowledge
views it as tacit or explicit (Nonaka 1994; Polanyi
1966).
• Tacit knowledge includes insights, intuitions,
and hunches.
• Explicit knowledge typically refers to
knowledge that has been expressed into words
and numbers.
Temtim Assefa (PhD), Addis Ababa University
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Tacit Knowledge
• A knowledge that is embedded with the knower
• Highly contextual knowledge
• Unstructured as compared to explicit knowledge
• Difficult to verbalize and codify on knowledge
repositories and also to share it
• It contains the largest part of our knowledge
• As Polanyi Said “We know more than we can
say”
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Explicit knowledge
• Knowledge that can be verbalized and codified
• Knowledge that we found in books, databases
• Structured compared to tacit knowledge
• Easy to store in databases and documents
• It is easily accessible to every one as it is detached from the
Knower
• Some Researcher label it as Information
• The Issue is not resolved among philosophers and scholars
• The smaller part of our knowledge
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Temtim Assefa (PhD),

Addis Ababa University

Tacit versus Explicit knowledge

Explicit
knowledge

Tacit
knowledge
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Different types of knoweldge …

3) General or Specific Knowledge

• Focuses on whether the knowledge is possessed widely or

narrowly (Sabherwal and Becerra-Fernandez 2005).

• General knowledge is possessed by a large number of

individuals and can be transferred easily across individuals.

• For example, knowledge about the rules of football

• Specific knowledge, or “idiosyncratic knowledge,” is possessed

by a very limited number of individuals, and is expensive to
transfer
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Temtim Assefa (PhD),

Addis Ababa University
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Temtim Assefa (PhD),

Addis Ababa University

Location of Knowledge
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Locations of Knowledge …
Individual knoweldge
• Individual knowledge is knowledge created and possessed by individuals

• It is the base for other categories of knowledge

• It is more of personal belief which may or may not be accepted by the group
and the organization

• More of tacit type knowledge

• Emanates from experience by doing tasks

• Individuals must share their knowledge to be used as organizational

knoweldge resource

• The knowledge stored in individuals is the reason several KM initiatives by

companies
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Locations of Knowledge …
Group knoweldge
• Considerable knowledge resides within groups because of the relationships
among the members of the group (Felin and Hesterly 2007).
• When people work together for a long time, (Skyrme 200they instinctively know
each other’s strengths and weaknesses, understand the other’s approach, and
recognize aspects that need to be communicated and those that could be taken
for granted0).
• Groups form beliefs about what works well and what does not,
• Collective knowledge is synergistic—greater than the sum of their individual
knowledge.
• Communities of practice that interact frequently with each other (physically or
virtually) to discuss topics of mutual interest, and they possess a typical group
knowledge
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Locations of Knowledge …
Knowledge in Artifacts
• Over time, a significant amount of knowledge is
stored in organizational artifacts as well.
• Knowledge is embedded in procedures, rules,
and norms that are developed through
experience over time and guide future behavior
(Levitt and March 1988).
• For example, fast-food franchises often store
knowledge about how to produce high-quality
products in routines (Argote and Ingram 2000).
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Location of knoweldge …
Knowledge in Organizational Entities
• Knowledge is also stored within organizational
entities.
• These entities can be considered at three levels:
▫ organizational units (parts of the organization),
▫ an entire organization, and
▫ in interorganizational relationships (such as the
relationship between an organization and its
customers).

Temtim Assefa (PhD), Addis Ababa University

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Organizational units
• In department or an office, knowledge is stored
partly in the relationships among the members
of the units.
• This knowledge may have been acquired through
the systems, practices, and relationships within
that unit.
• Moreover, contextually specific knowledge is
more likely to be related to the specific
organizational unit.
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Organizational knowledge
• An organization stores certain knowledge, especially
contextually specific knowledge such as health and Banks.
• The norms, values, practices, and culture within the
organization, and across its organizational units, contain
knowledge that is not stored within the mind of any one
individual.
• Organizations respond to environmental events not only
upon the knowledge stored in individuals and
organizational units but also in the overall organizational
knowledge
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Interorganizational relationships …
• As organizations establish and consolidate relationships with
customers and suppliers, they draw upon knowledge embedded in
those relationships.
• Customers who use the organization’s products have considerable
knowledge about the strengths and weaknesses of those products.
• Likewise suppliers who provide the basic components from which
the products are made,
• Organizations often learn from their customers’ experience with
products about how these can be improved.
• They can also learn about new products that might be appealing
to customers.

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Forces that drive Knowledge

Management
• Information and knowledge have become the
fields in which businesses compete.
• Several important factors include:
▫ Increasing Domain Complexity
▫ Accelerating Market Volatility
▫ Employee turnover
▫ Managing Information and Communication Overload
▫ Knowledge Embedded in Products
▫ Sustainable Competitive Advantage

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Increasing Domain Complexity

• The complexity of the underlying knowledge domains is
increasing.
• The complexity of the knowledge required to complete a specific
business task has also increased.
• Sophistication of internal and external processes, increased
competition, and the rapid advancement of technology all
contribute to increasing domain complexity.
• For example, new product development requires the partnership
of interorganizational teams representing various functional
subunits—from finance to marketing to engineering.
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Accelerating Market Volatility

• The pace of change, or volatility, within each

market domain has increased rapidly in the past
decade.
• For example, market and environmental
influences can result in overnight changes in an
organization.
• New products technologies are invented every
month

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Intensified Speed of Responsiveness

• The time required to take action based upon subtle changes
within and across domains is decreasing.
• The rapid advance in technology continually changes the decision
making landscape, making it imperative that decisions be made
and implemented quickly, lest the window of opportunity closes.
• Today’s sale process is undertaken through online bidding
marketplaces
• Consider the dilemma faced by a hotel manager that participates
in an Internet auctioning market of hotel rooms: “Should I book a
$200 room for the bid offer of $80 and fill the room or risk not
accepting the bid hoping to get a walk-in customer that will pay
the $200?”
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Employee Turnover
• Organizations continue to face employee turnover
• Employee turnover inevitably leads to the organization
losing some of the knowledge possessed by the departing
individuals.
• Leaving individuals might have knowledge that would be
valuable to competitors.
• According to Kenny (2007), “As staff leave, retraining is
necessary. Replacing a full-time, private-sector worker
costs, at a bare minimum, 25 percent of his or her total
annual compensation,
Temtim Assefa (PhD), Addis Ababa University
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Sustainable Competitive Advantage

• Knowledge has become third strategic resources of the
organization just like land and capital
• KM provides you to quickly integrate your knowledge
resources and convert into products and services
• Knowledge is unique to every organizations.
• Once you innovate new products using your knowledge,
it is not easily imitated
• Knowledge also increases your innovation capability and
able to create new products with short product life cycle
• All these feature gives you sustainable competitive
advantage

Temtim Assefa (PhD), Addis Ababa University

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Forces that drive …

• Managing Info Overload:
▫ data must be categorized in some manner if it is to be useful
rather than overwhelming
▫ Use of data mining tools help to overcome problem

• Knowledge Embedded in Products:

▫ the intangibles that add the most value to goods and services
are becoming increasingly knowledge-based
▫ Products like mobile banking, software products, etc

Temtim Assefa (PhD), Addis Ababa University

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Knowledge Management Systems

• The term Knowledge management started to

be used in 1980s
• However activities were practiced before that by
Librarians, philosophers, teachers, and writers
• Denning (2000) relates how from
▫ “time immemorial, the elder, the traditional healer and
the midwife in the village have been the living
repositories of distilled experience in the life of the
community”

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KMS
• Rapid changes in the field of KM have resulted from the
dramatic progress we have witnessed in the field of information
technology (IT).
• IT facilitates sharing as well as accelerated growth of knowledge.
• IT allows the movement of information at increasing speeds and
efficiencies.
• According to Bradley (1997):
▫ Today, knowledge is accumulating at an ever-increasing rate. It is
estimated that knowledge is currently doubling every 18 months
and, of course, the pace is increasing. . . . Technology facilitates the
speed at which knowledge and ideas proliferate (p. 54).

Temtim Assefa (PhD), Addis Ababa University

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KMS …
• The use of leading-edge information technologies (e.g.,
Web-based conferencing) to support KM mechanisms
enables dramatic improvement in KM.
• Knowledge management mechanisms are
organizational or structural means used to promote
knowledge management.
• knowledge management systems (KMS): the synergy
between latest technologies and social/structural
mechanisms
• Technology + Social Mechanisms = KMS
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KMS …
• Knowledge management systems utilize a variety of
KM mechanisms and technologies to support the
knowledge management processes.
• Based on observations of many organizations, a
framework emerges for classification of KM systems as:
1. Knowledge Application Systems
2. Knowledge Capture Systems
3. Knowledge Sharing Systems
4. Knowledge Discovery Systems
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Issues in knowledge management

• Many attempts have been made to launch KM initiatives, but not
all KM implementations have been successful.
• Many KM systems implemented at organizations have failed to
enable knowledge workers to share their knowledge for the benefit
of the organization.
• The case in point is that effective KM is not about making a choice
between “software vs. wetware, classroom vs. hands-on, formal vs,
informal, technical vs. social”
• Effective KM uses all the options available to motivate employees
in order to put knowledge to work.
• Effective KM depends on recognizing that all of these options
basically need each other.
Temtim Assefa (PhD), Addis Ababa University
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Issues in KMS …
• Employees play active role building the content of KMS
unlike traditional information system.
• The successful implementation of KM systems requires
users not only effectively “use” such systems, but also
contribute to the knoweldge repository
• Managers understand the factors that lead to the successful
implementation of KM systems which is area of research
that is still in its infancy.
• Effective KM is 80 percent related to organizational culture
and human factors and 20 percent related to technology

Temtim Assefa (PhD), Addis Ababa University

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Issues in KMS …
• KM practices must
▫ first identify ways to encourage and stimulate the
ability of employees to develop new knowledge.
▫ Second, KM methodologies and technologies must
enable effective ways to elicit, represent, organize,
reuse, and renew this knowledge.
▫ Third, KM should not distance itself from the
knowledge owners but instead celebrate and
recognize their position as experts in the
organization.
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Summary
• Knowledge management is a process that deal with
knoweldge creation, storage, dissemination and
application
• Knowledge management system is an integration of
organizational social and structural mechanisms and
information technologies
• Knowledge management implementation can be
successful when we motivate employees to use
knowledge and donate knowledge to the knoweldge
repository
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Review questions
• What is knowledge?
• What is knowledge management?
• Explain the difference between KM and KMS?
• What is the driving force for adopting KM
solutions
• What are key factors for successful
implementation of knowledge management
system
Temtim Assefa (PhD), Addis Ababa University