Knowledge Management 20 years

Transcription

1 Knowledge Management 20 years after... The evolution and increasing significance of Knowledge Management 2004 Karl M. Wiig Knowledge Research Institute, Inc. Arlington, TX phone: (817) fax: (817) website: KM Past & Future 2004/ 1 Copyright 2004 Knowledge Research Institute, Inc.

2 KM s s Role Is Changing The Early Focus: Strengthen Operations by Improving Knowledge and Its Availability The Emerging Focus: Make the Enterprise More Competitive from Strategic Perspectives To Survive and Prosper You Need to Innovate Faster Than Your Competitors It is Not Enough to Learn Faster! KM Past & Future 2004/ 2 Copyright 2004 Knowledge Research Institute, Inc.

3 KM The Stage Is Set WWII changed the World economy War ravaged nations built new, efficient industrial capabilities Global competition shifted to higher quality and lower prices Knowledge content increased in complex products and services Computers began to provide Knowledge Amplifiers 1950s Deming & Durant: Quality requires knowledge and understanding 1956 Kenneth Boulding: The Image: Knowledge in Life and Society 1966 Peter Drucker: Knowledge Worker in The Effective Executive 1966 Kenneth Boulding: The Economics of Knowledge and the Knowledge of Economics 1969 Peter Drucker: Knowledge Worker in The Age of Discontinuity 1970s AI Promises: Expert Systems to automate knowledge processes 1978 Peter Keen: Decision Support Systems: An Organizational Perspective KM Past & Future 2004/ 3 Copyright 2004 Knowledge Research Institute, Inc.

4 KM The Early Days 1980s+ AI- based Expert Systems Knowledge Sharing Beginning Focus on Intellectual Capital 1980s IBM & Others Personal Computer for business 1981 DEC, ADL, etc. Knowledge-Based System Applications 1985 Arthur D. Little Knowledge Management and Applied AI 1986 Böhme & Stehr: The Knowledge Society 1987 Sveiby & Lloyd: Managing Knowhow 1990 Senge The Fifth Discipline (Learning Organization) 1991 Thomas Stewart: Brainpower article in Fortune 1993 Prusak & alia: Boston KM Conference (150 participants) 1993 Wiig Knowledge Management Foundations KM Past & Future 2004/ 4 Copyright 2004 Knowledge Research Institute, Inc.

5 Intellectual Capital Management (ICM) Hall Sveiby St. Onge Skandia/Edvinsson Value Creation Stewart Teece Sullivan Petrash ICM Gathering Value Extraction Lev From < KM Past & Future 2004/ 5 Copyright 2004 Knowledge Research Institute, Inc.

6 The Field Is Dynamic! We continue to learn about people and knowledge with profound consequences for KM Successful KM requires understanding of underlying knowledge-related mechanisms in people and organizations Much more than realized, decisions are made by tacit activation of mental reference models Mental models are often encoded stories of static scenes, dynamic episodes, procedures for work, and complex situations People learn / remember stories and concepts better than facts Expertise is a tacit and abstract personal capability to innovate, learn, blend mental models, see implications, and to act KM Past & Future 2004/ 6 Copyright 2004 Knowledge Research Institute, Inc.

7 Situation Handling Requires Knowledge Knowledge Mental Reference Models Concepts Understandings Judgments Principles Facts Initial Situation Information Sensemaking Situational Awareness Decision-Making/ Problem-Solving Understanding of Situation Action Space and Innovation Decision Implementation Execution Capability Effective Action Actions to Change Situation Corrective Adjustment Feedback Feedback Monitoring Governance Competence Corrective Adjustment Feedback Actions to Change Situation New New New Information Information Information Ongoing Situation KM Past & Future 2004/ 7 Copyright Knowledge Research Institute, Inc. Inc.

8 KM Its Basic Nature KM Ideally, KM governs knowledge-related activities and processes in all parts of society to: Improve effectiveness of personal actions at work and at home Strengthen enterprise behavior to: Increase value to customers Provide strong competitive position Improve stakeholder relations Capability to be responsible societal citizen KM Past & Future 2004/ 8 Copyright 2004 Knowledge Research Institute, Inc.

9 Effective Actions Are Needed at All Levels Apply Knowledge Enterprise Strategy Make Sense Decide & Innovate Execute Level Monitor Apply Knowledge Division Business Plan Make Sense Decide & Innovate Execute Level Monitor Department Tactics Level Apply Knowledge Make Sense Decide & Innovate Execute Monitor Personal Operations Level Apply Knowledge Make Sense Decide & Innovate Execute Monitor KM Past & Future 2004/ 9 Copyright 2004 Knowledge Research Institute, Inc.

10 An Important Change Within the Knowledge-Vigilant enterprise most people possess an Asset Management Mentality to create, maintain, exchange, and utilize Intangible Capital to be as effective as possible in all their pursuits KM is cornerstone of Integral Management KM Past & Future 2004/ 10 Copyright 2004 Knowledge Research Institute, Inc.

11 Remember KM Covers Five Domains! CONTEXT Business Purpose & Environment of Enterprise KM UNDERLYING MECHANISMS Associated Disciplines Cognitive, Technical,... "What We DO" Knowledge Management Activities & Actions (KM Work) ORGANIZING PRINCIPLES "Meta KM" RESOURCES "1001" Choices of KM Methods, People & Technologies KM Past & Future 2004/ 11 Copyright 2004 Knowledge Research Institute, Inc.

12 Knowledge Management Counts! Progress and viability are driven by human capital Most studies have been inconclusive... However, long-term effects of improved knowledge indicate: 1 % literacy score increase leads to 2.5 % personal productivity increase 1.5 % increase in GDP Source: International Adult Literacy Survey: Literacy scores, human capital and growth across fourteen OECD countries Serge Coulombe, Jean-François Tremblay, and Sylvie Marchand - Statistics Canada - Human Resources and Skills Development KM Past & Future 2004/ 12 Copyright 2004 Knowledge Research Institute, Inc.

13 Few Are Knowledge Vigilant! Relative Frequency US Organizations Regardless of Size US Organizations Weighted by Number of Employees Qualitative Estimates KM Sophistication Unconcerned Knowledge importance is generally not considered Knowledge is managed sporadically and intuitively. Culture is knowledge ignorant Aware Some employees and executives are generally aware of knowledge importance They can't make KM a priority and don't know how to pursue KM Culture and incentives are not issues Reactive Many employees understand KM's value and how knowledge is created, transferred, and used KM initiatives are pursued piecemeal Culture does not support KM Literate Many employees understand KM's value for durable success and how knowledge is created, transferred, and used They know KM is needed and only act with outside assistance Culture and incentives changes are not yet supportive of KM. Proactive Most employees and managers have good understanding of how to manage knowledge assets to achieve enterprise and personal goals. KM initiatives shape a broad vision Culture and incentives are changing Vigilant All pursue knowledge-effective and intelligent-acting behavior as Integrative Management cornerstone KM practices and capabilities are everywhere. Culture and incentives fully support KM and are Knowledge-Aware. Within the enterprise, KM often pursue separate and disjointed efforts like: KM/IT Applications Learning Organization Intellectual Capital Management Advanced enterprises pursue KM as part of Integrative Management KM Past & Future 2004/ 13 Copyright 2004 Knowledge Research Institute, Inc.

14 KM Its Significance Personal: Improved earnings potentials More effective personal decision making Raised quality of life Industrial: Greater competitive effectiveness Better products and services Beneficial for customers and consumers Societal: Increased progress from better educated citizenry Improved social and economic environments More desirable society KM Past & Future 2004/ 14 Copyright 2004 Knowledge Research Institute, Inc.

15 KM Scope Shifts to Wider Focus Relative Frequency 1990s KM Distributions Future KM Distributions 1980s KM Distributions Knowledge Scope Task Oriented Focus Operational Focus Tactical Focus Strategic Focus Long-Term Purpose Focus Qualitative Estimates KM Past & Future 2004/ 15 Copyright 2004 Knowledge Research Institute, Inc.

16 KM Its Real Significance Being Informed IS NOT Being Knowledgeable! KM provides opportunities for people and organizations to make more effective and knowledgeable decisions You must be knowledgeable to see the implications of situations described by information Success in today s s global society requires being Knowledgeable and Informed Both! KM Past & Future 2004/ 16 Copyright 2004 Knowledge Research Institute, Inc.

17 KM Societal Significance Strategic goal for 2010 set for Europe at the Lisbon European Council March 2000: "to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion." KM Past & Future 2004/ 17 Copyright 2004 Knowledge Research Institute, Inc.

18 KM and Innovation Are Key A Focus on Cost-Cutting and Efficiency Has Helped Many Organizations Weather the Downturn, But This Approach Will Ultimately Render Them Obsolete. Only the Constant Pursuit of Innovation Can Ensure Long-Term Success. DF Muzyka, FT Sep 17, 2004 Knowledge Management Is the Innovation Enabler by Providing the Driving Intellectual Capital Resources! KM Past & Future 2004/ 18 Copyright 2004 Knowledge Research Institute, Inc.

19 Extra Slides Added for Reference KM Past & Future 2004/ 19 Copyright 2004 Knowledge Research Institute, Inc.

20 Our Work Is Becoming More Complex Frequency of Occurrences Required Knowledge Can Be Explicated (Some Can Be Automated) Some Abstract Knowledge Is Needed Past Work Workers Need Additional Knowledge Future Work Considerable New Knowledge Is Required Potentials for Delivering Work Requiring Greater Knowledge 1. Routine tasks (simple, repetitive, and well understood) Candidates for Intelligent Automation 2. Logical or less common variations (transformations) of Routine Situations 3. Complex, yet expected extensions of routines integrated with external factors 4. Unexpected challenges (conditions), but with a mix of routines and external factors 5. Totally unexpected situations and non-routine challenges, yet within the larger job scope KM Past & Future 2004/ 20 Copyright 2004 Knowledge Research Institute, Inc. 6. Unusual challenges outside job scope Complexity of Work

21 Small Actions Lead to Broad Behavior Innumerable Nano Actions Effects of Actions Micro "Action" Micro "Action" Engineering Micro "Action" Manufacturing Micro "Action" R&D-Marketing Effects of Actions Consolidated Enterprise Behavior Delivery & Start-Up Costs Service Quality Product Quality Customer Support etc. Market and Stakeholder Response Realized Performance KM Past & Future 2004/ 21 Copyright 2004 Knowledge Research Institute, Inc.

22 Most Decisions Are Nonconscious and Result from Activating Mental Reference Models! Situation Facts-Objectives Reasoning Strategies Options for decision and innovation Representation of future outcomes Adapted from Bechara et alia, Science 28 Feb, 1997 Covert activation of biases related to previous emotional [or meaningful] experiences of comparable situations Decision Reference Model Library Personal Mental Models of Wellknown Cases When Needed, New Situation-Specific Mental Reference Models Are Created by Conceptual Blending KM Past & Future 2004/ 22 Copyright 2004 Knowledge Research Institute, Inc.

23 Some Inter-Domain Functions Guide Tactical & Strategic Directions Business Context Shapes Which & How Underlying Mechanisms Are Activated CONTEXT Business Purpose & Environment of Enterprise KM Provide Understanding for KM Governance Presents Needs for Organizing Principles Provide Information on Mechanisms Provides Business Value by Effective KM Practices Determines KM Direction from Business Requirements Provide Understanding of Relations between Other Entities & Mechanisms UNDERLYING MECHANISMS Associated Disciplines Cognitive, Technical,... Determine KM Implementation Options Methods & Actions Activate Mechanisms "What We DO" Knowledge Management Activities & Actions (KM Work) Provide Understanding for Effective KM Work Presents Needs for Organizing Principles ORGANIZING PRINCIPLES "Meta KM" Presents Needs to Create New Solutions & Methods Provide Applicable Methods & Other Resources Provide Information on New Mechanisms Underlying Mechanisms Shape Methodologies RESOURCES "1001" Choices of KM Methods, People & Technologies Present Needs for Organizing Principles Provide Understanding for Creating Resources KM Past & Future 2004/ 23 Copyright 2004 Knowledge Research Institute, Inc.

24 Examples of KM Domain Areas Examples Behavioral Systems Learning Decision Making Innovative Behavior Constraints Motivational Systems Understanding Benefits of Supporting Enterprise Enterprise Incentives, Practices & Culture Social Systems Societies Governments Enterprises Family Units Economic Systems Global, National & Local Economies Market Mechanisms Physical & Technical Systems Production Facilities Transportation Systems Informatics Systems Enterprise Strategy & Direction Structure Financial Situation TOWS UNDERLYING MECHANISMS Associated Disciplines Cognitive, Technical,... KM Professional Education Practical KM Work KM-Related Theory Business Science (OR) Work Environment Products & Services Infrastructure Culture & Practices CONTEXT Business Purpose & Environment of Enterprise KM "What We DO" Knowledge Management Activities & Actions (KM Work) RESOURCES "1001" Choices of KM Methods, People & Technologies KM Capabilities Develoment KM Methods KM "Systems" KM Practices Examples Examples Markets & Customers Competitive Situation Customer Requirements Economy Management Knowledge-Leveraging Mentality Managing from Knowledge Perspectives Stakeholders Objectives Requirements ORGANIZING PRINCIPLES "Meta KM" Knowledge Governance AI & Advanced IT Applications Active KM Capabilities Passive KM Support (Infrastructure) Examples Axiomatic Basis Systems Perspective Holistic Natural History Axiological, Theoretical, Epistemological Foundations Integrated Value Theory Natural Philosophy of Knowledge Measurement Theory Sciences of Knowledge Biology of Knowledge Psychology of Knowledge Economy of Knowledge Sociology of Knowledge Semiotics Computation Theory & AI Anthropology of Knowledge History of Knowledge Structural Foundations of Knowledge Systems Economy & Culture of Knowledge Knowledge-Based Value Systems Systems of Capital Knowledge Systems Design for Holistic Social Development (Political KM Processes) Theory of Holistic Social Development Endogenous Growth Theory Theory of (Social) Human Capital Knowledge Systems Design for Organizational KM Processes Value-Based KM Strategy (Organizational) Human Capital Developm Instrumental Capital Development Adapted from F.J.Carrillo, "Meta-KM: A Program and a Plea," Journal of the KMCI, Vol. 1, No. 2, Jan KM Past & Future 2004/ 24 Copyright 2004 Knowledge Research Institute, Inc.

25 Knowledge-Based Business Diagnostics Understanding Diagnostics Methodologies Understanding the Nature of Intellectual Work under Varying Conditions Knowledge Diagnostics Understanding the Applicability of Different Knowledge-Related Initiatives and Solutions Understanding Business Processes, Operations, Practices, and Strategies KM Past & Future 2004/ 25 Copyright 2004 Knowledge Research Institute, Inc.

26 Maybe Just Maybe We Need to Understand KM Past & Future 2004/ 26 Copyright 2004 Knowledge Research Institute, Inc. Financial Times March