Chapter 2 Knowledge Management in Organization

SP (KMS)2 Knowledge is a fluid mix of framed experience, values, contextual information, expert insight, and intuition that provides an environment and framework for evaluating and incorporating new experiences and information. It originates in individual minds but is often embedded in organizational routines, processes, practices, systems, software, and norms. What is Knowledge ?

Chapter SP (KMS)3 1. Knowledge integration is the engine of economic prosperity. 2. Unpredictable markets necessitate “organization abandonment” 3. KM lets you lead change so that change does not lead you. 4. Cross-industry amalgamation is breeding complexity. 5. Those who forget the past are condemned to repeat it. 6. A bridge is needed to across the Atlantic. 7. Tacit knowledge is mobile. 8. Knowledge application requires “water- cooler” and “coffee- machine” cultures; IT barely support sharing. Knowledge Management’s value proposition

Chapter SP (KMS)4 KM ไม่ใช่การจัดความรู้ ให้ผู้อื่นใช้ KM ไม่ใช่การจัดความรู้ เข้าสู่ระบบ IT What Knowledge Management is not about

Chapter SP (KMS)5 1. KM is not Knowledge Engineering. KM is a business problem and falls in domain of information systems and management, not in computer science. KM = Information System + people. 2. KM is about process, not just digital networks. KM goal is to improve business process. 3. Km is not building a smarter intranet. 4. KM is not about one time investment. 5. KM is not about enterprise-wide “infobahns”. KM is on helping the right people apply the right knowledge at the right time. What Knowledge Management is not about

Chapter SP (KMS)6 Coke/Coca Cola Walmart Microsoft/Intel eBay Yahoo AOL Citibank Pfizer Reasons for being successful business? These companies are driven by and valued for their knowledge not their assets. 1. Brand recognition 2. Industry-driven vision 3. Patterns and breakthroughs 4. Customer Royalty and its reach 5. Innovation business ideas 6. Anticipated future products 7. Past achievements 8. Groundbreaking strategies

Chapter SP (KMS)7 1. No recognition and reward for sharing knowledge 2. People are competitive & believe that knowledge increases their power 3. No vehicle for storing & categorizing knowledge, or the existing vehicle is difficult to use 4. They don’t know anyone who would be interested in what they want 5. They don’t share knowledge because they are not aware of what they know. Barriers to KMS

Chapter SP (KMS)8 Old/New Economy Old Economy : ตัววัดความสำเร็จใช้การเงิน Financial เป็น หลัก (Tangible Asset) มูลค่าแห่งบัญชี (Finance value) New Economy : ตัววัดความสำเร็จไม่ได้ใช้การเงิน เป็น Non-Financial เป็นหลัก ตัววัดจะใช้ Shareholder wealth การสร้าง มูลค่าเพิ่มให้องค์กร ความสำคัญของทรัพย์สินหรือทุนที่จับต้อง ไม่ได้ (Intellectual Capital, Intangible Asset)

Chapter SP (KMS)9 Tangible/Intangible Asset Tangible Asset Land Building Facilitie s Invento ry Intangibl e Asset Leadersh ip Knowled ge Relation ship Brand

Chapter SP (KMS)10 Tangible/Intangible Asset To win old economy of tangible assets such as entity, people and money were main management themes. To win in new economy : Maximize intangible assets which were not shown on the balance sheet is a key success. Customer relationship : ความ จงรักภักดี สานสายใยลูกค้า Brand image (Top 10) : ความพอใจ เต็มใจ ของผู้ซื้อ

Chapter SP (KMS)11 Case studies : Group Discussion (16) Drivers –Knowledge Centric drivers –Technology drivers –Structural drivers –Process focused drivers –Economic drivers Problem symptoms Threat and KM Solutions Notes and Exemplars Table 2-1 Amrit Tiwana p.19-29

Chapter SP (KMS)12 State problems in your organization. What need to be done for a better organization in term of using and sharing knowledge. business process technology / infrastructure culture/ people Assignment 1 ???

Chapter SP (KMS)13 Summary Physical assets : production-oriented and technologies = lose value as they are used. Knowledge increases in value. KM helps avoid unnecessary work duplication, and repeated mistakes. KM can save your company from “ knowledge walkout ”. KM can make your company a proactive anticipator. “ We must become the change we want to be ”.

A journey of a thousand miles must begin with a single step.