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KnowledgeManagement:ConceptsandCasesStephenRuth,GeorgeMasonUniversityFirstLecture:WhyKMMakesaDifferenceinanOrganizationLeveragingTechnologySeries(ICASIT)•ElectronicCommerce(GMU,WorldBank)•ITintheEuropeanUnion•ITandOrganizationalLearning•HumanEngineeringinITDesign•ITforCompetitiveAdvantage•ITandExecutiveInformationSystemsLeveragingTechnologySeries(Continued)•ITandExpertSystemsUse•LeveragingMultimedia•TeaminginCyberspace•Virginia’sNetpreneurs•Cybercorp•KnowledgeManagementPossessingITvs.LeveragingIT•Mostmetricsareaboutpossession•Possessionisstatic;leveragingisdynamic•Possessionalonedoesnotaddvalue•Leveragingisastrategicissue;possessionisoperationalOutlineofThisPresentation•KMscope,definitions,briefhistory•LeveragingKM--examples•Acquiringknowledge,KMmarkets•Keyideas:Leonard-Barton,Davenport,Prusak,Koulopoulis,Nonaka,StewartOutlineofThisPresentation•Characteristicsofsuccessfulknowledgeorganizations•FivestepapproachtoKM•ThefutureBHAG’s•Big,Hairy,AudaciousGoals•Goodyear($13billionto$23Billionin5years)•TimesMirror--increaseLATimescirculationby500,000,a50%jump•P&GIncreasecompanysizeby100%intenyearsMoreBHAG’s•GE--be#1or#2ineverymarkettheyserve•BristolMyers--Doublesalesandearningsinsevenyears•CampbellSoup--beseenasapeerofCocaColaandGilletteDefinitionofKnowledge“Knowledgeisafluidmixofframedexperience,contextualinformation,andexpertinsightsthatprovidesaframeworkforevaluatingandincorporatingnewexperiencesandinformation.Itoriginatesandisappliedinthemindsofknowers.Intheorganization,DefinitionofKnowledgeitoftenbecomesembodiednotonlyindocumentsorrepositoriesbutalsoinorganizationalroutines,processes,practices,andnorms”(WorkingKnowledge,p.5)WhatIsSoSpecialaboutKM?•Seemstobefarmorethanafad•Comparisons:ES,MM,BPR,CASE•ManylargecompaniesandorganizationsareembracingKMWhatIsSoSpecialaboutKM?•Alreadyavastbodyofpractice•HashugepotentialforROI•CEO’softentheleaders(nottheCIO’s)KM:ASignificantNewITApproach•Whyneeded?Informationoverloadbutknowledgefamine•Extractinginformationiseasy--butknowledgeisscarceandoftenhiddenKM:ASignificantNewITApproach•Corecompetencyisbasedonknowledge•Knowledge,notinformation,istheedgeWhoUsesKMNow?•AT&T,DellComputer,CSC,AMS,IRS,WorldBank,NYNEX,AmericanAirlines,IBM,Xerox,EDS,Hallmark,GE,HP,NationsBank,Polaroid,PacBell,Microsoft,thousandsmore.WhoUsesKMNow?•AtleasttwohundredoftheFortune500withanewtitle--CKOorCLOorDirector,KnowledgeInitiatives(Very)BriefHistory•Longtraditionofvaluingknowledge:Moses;Alexander,Caesar,Napoleon,Drucker,Toeffler,etc.•Knowledgecreation-Nonaka’sstudiesofMatsushita,Honda,Mazda--laterGE(Very)BriefHistory•Leonard-Barton’smanufacturingstudies•Stewart’semphasisonIntellectualCapital•DavenportandPrusak--practiceorientationScopeofKMInformation•Atleastonehundredbooks;dozensofcasestudies•AhalfdozenjournalsScopeofKMInformation•Hundredsofarticles,includinginHBRandSMR•Aboutasymposiumperweek•Scoresofdedicatedwebsites(seeespeciallyhttp://icasit.org/km/index3.htm)TheSpectrum•Data•Information•Knowledge•WisdomTheSpectrum•Insight•Resolve•ActionKnowledgeQuestions•Whereisknowledge?Inthemindoftheknower•Whatisknowledge?Framedexperience,conceptualinformation,insights•Expertise?Experience-basedinsights•Intuition?CompressedexpertiseKnowledgeCharacteristics(V.Alee)•Messyandselforganizing•Travelsonlanguageandthroughcontact•Difficulttocodify•Difficulttoregulate•Seekscommunity•AsocialprocessSampleKnowledgeAreas•Customers•Processes•Rulesofthumb•History•Know-how•SkillsandexperiencesSamplesofKnowledge-DatathatMakesaDifference•Chrysler’sEngineeringBooksofKnowledge(automobileplatformteams)•AndersenKnowledgeXchange(toomuchknowledge--becamedata)SamplesofKnowledge-DatathatMakesaDifference•Army’sCALLandAAR•3M-knowledgecompany;IBMindustrysolutionunits;Steelcasesellsknowledge;Xerox--sellssolutionsSomeSuccessStories•HoffmanLaroche--reformofFDAsubmissionprocess:$1millionperday•FiveNewYorkmedicalcenters--observedothersprocedures:24%dropindeathrateforbypassoperations•HPoncallhelpdesk--”Case-basedreasoning”reducedcalltimeby70%MoreSuccessStories•Chevron--Energy-usenetwork--savings:$650million•TI--Improvedwaferfabricationyield--$1.5billionMoreSuccessStories•Skandia--90%reductionoftimetomarket•NEC--replacingrobotswithpeople•BPvirtualteamwork--NorthSeaexampleBP’sVirtualTeamworkProgram•NotpartofITgroup•Hardware/software:desktopconferencing,multimedia,email,appsharing,sharedwhiteboards,videocliprecordingtools,groupware,webbrowserBP’sVirtualTeamworkProgram•Foursuccesses--thefailurewasgroupthatwantedtoexchangeonlydata•Mobiledrillingshipproblem$500,000savedthroughKMKnowledgeMarkets•Marketshavesocial/politicaldimensions•Mobil--braggingdiscouraged--affectsKM•HPinAustralia--”mateship”KnowledgeMarkets•Buyers--peoplewhofindnoeasyanswertocomplexproblem(20%ofmanager’stimespentinknowledgesearch)•Sellers--knowers,pieceworkers(salariedpurchased)--bewareof“hoarders”KnowledgeMarkets(Cont’d)•Brokers:Librarians,boundaryspanners,chatters,gossips•Pricingsystem:cash,status,entitlementsKnowledgeMarkets(Cont’d)•Threekeypricingmechanisms:reciprocity(“favorbank”),r