Km org

• Knowledge Management


  The process of capturing, distributing, and effectively using knowledge
• Organizational Impacts of Knowledge Management


  • Impact on People
  • Impact on Processes
  • Impact on Products
  • Impact on Overall Performance
• Why adopt Knowledge Management?


  • Retaining expertise of employees
  • Enhancing customers' satisfaction
  • Increasing profits or revenues
• IDC and Knowledge Management Magazine joint survey on KM practices in US companies [Dyer & McDonnough 2001]
• Dimensions of Organizational Impacts of Knowledge Management


  • People
  • Processes
  • Products
  • Organizational Performance
• Impact on People


  • KM can facilitate employee learning
  • KM causes employees to become more flexible
  • KM enhances employee job satisfaction
• Impact on Employee Learning


  1. Externalization

  2. Internalization

  3. Socialization

  4. Communities of practice
• Impact on Employee Adaptability


  • Employees are likely to adapt when they interact with each other
  • Employees are more likely to accept change
  • Employees are more prepared to respond to change and less likely to be caught by surprise
• Impact on Employee Job Satisfaction (1)

  • Turnover rates are reduced, positively affecting revenue and profit
  • Employees feel better due to knowledge acquisition and skill enhancement
  • Employees' market value is enhanced relative to other organizations' employees
• Impact on Employee Job Satisfaction (2)


  • KM provides employees with solutions to problems they face
  • Providing tried-and-tested solutions amplifies employees' effectiveness
  • Helps keep employees motivated
• Impact on Employee Job Satisfaction (3)

  • Mentoring and training are excellent motivators
  • Communities of Practice provide intimate and socially validated control over their own work practices
• Knowledge


  • Employee Learning
  • Employee Adaptability
  • Employee Job Satisfaction
• Impact on Processes


  KM enables improvements in organizational processes such as marketing, manufacturing, accounting, engineering, and public relations
• Effectiveness


  Performing the most suitable processes and making the best possible decisions
• Efficiency

  Performing the processes quickly and in a low-cost fashion
• Innovation


  Performing the processes in a creative and novel fashion, that improves effectiveness and efficiency—or at least marketability
• Impact on Processes: Effectiveness (1)

  • Ford and Firestone case study
• Impact on Processes: Effectiveness (2)


  • Reorganization of a large firm's engineering department in 1996
• Impact on Processes: Effectiveness (3)

  • KM at Tearfund
• Impact on Processes: Effectiveness (4)


  • KM at Tearfund (cont)
• Impact on Processes: Efficiency (1)

  • Toyota
  • BP
• Impact on Processes: Efficiency (2)


  • Toyota case study
• Impact on Processes: Efficiency (3)

  • BP case study
• Impact on Processes: Innovation (1)


  • KM enables riskier brainstorming, thus enhancing process innovation
  • The power of intellectual capital is the ability to breed ideas that ignite value
• Impact on Processes: Innovation (2)

  • Buckman Laboratories case study
• Knowledge


  • Process Efficiency
  • Process Innovation
  • Process Effectiveness
• Knowledge Management

  • Enables riskier brainstorming
  • Enhances process innovation
• JP Morgan Chase: 'The power of intellectual capital is the ability to breed ideas that ignite value'
• Impact on Processes: Innovation

  1. Improved brainstorming

  2. Better exploitation of new ideas
• Impact on Processes: Process Efficiency

  1. Productivity improvement

  2. Cost savings
• Impact on Processes: Process Effectiveness

  1. Fewer mistakes

  2. Adaptation to changed circumstances
• Value-added products


  New or improved products that provide significant additional value compared to earlier products
• Knowledge-based products


  Products such as consulting and software development that are heavily reliant on knowledge
• Value-added products: Ford


  • Best practices replication process in manufacturing
  • Achieved 5-7% annual improvements in key measures like throughput and energy use
• Value-added products: Buckman Laboratories


  • Innovative processes enabled sales/support staff to feed customer problems into network to access expertise and develop innovative solutions
• Value-added products: Steelcase


  • Used video ethnography to understand how customers use office furniture and redesign products to be more attractive
• Knowledge-based products: ICL (now Fujitsu)

  • Consultants can quickly access and combine best knowledge to bid on proposals that would otherwise be too costly or time-consuming
• Knowledge-based products: Matsushita


  • Designed an automatic bread-making machine by observing and incorporating techniques of a master baker
• Knowledge-based products: Sun, Microsoft


  • Place solutions to customer problems in a shareable knowledge base
  • Let customers download software patches based on automated diagnosis
• Investments in KM should be viewed as capital investments to produce long-term benefits, not just present-time assets