Contents 1 Introduction to Knowledge Management... 1 1.1 Learning Objectives... 1 1.2 Difference Between Knowledge Economy and Traditional Economy... 2 1.3 Understanding Knowledge Management... 3 1.4 What Is Knowledge... 3 1.5 Need for Systematic Approach... 4 1.6 Definitions of Knowledge Management... 4 1.7 Cross-Functions in KM... 6 1.8 Types of Knowledge... 6 1.9 Business Relevance of KM... 8 1.10 Levels of KM... 10 1.11 Summary... 11 1.12 Practice Questions... 11 2 Knowledge Management Cycles... 13 2.1 Introduction... 13 2.2 Different Stages in Knowledge Management Cycles... 15 2.3 KM Cycle Transformation From Tacit to Explicit and Back to Tacit... 21 2.4 Types of Knowledge Management Cycle... 22 2.4.1 Zack KM Cycle... 23 2.4.2 The Bukowitz and Williams KM Cycle... 24 2.4.3 The McElroy KM Cycle... 25 2.4.4 Wiig KM Cycle... 27 2.5 Knowledge Management: Perspective of Small and Big Organisations... 28 2.5.1 Small Organisations... 28 2.5.2 Large Organisations... 28 2.6 Challenges for Implementing Knowledge Management Cycle... 28 2.7 Summary... 29 ix
x Contents 3 Communities of Practice for Effective Knowledge Management Strategy... 31 3.1 Understanding Community of Practice... 31 3.1.1 Strategic Competence... 31 3.1.2 Competitive Competence... 32 3.1.3 Core Competence... 32 3.2 Characteristics of Communities of Practice... 33 3.3 Four Types of Community... 34 3.4 The TATA Steel Experience... 37 3.5 Virtual Communities of Practice... 38 3.5.1 Barriers... 39 3.6 Development and Nurturing of CoPs... 40 3.7 Communities of Practice in the Development Sector... 42 3.8 Summary... 43 4 Issues and Challenges in Knowledge Management... 45 4.1 Introduction... 45 4.2 Challenges Faced by KM in General... 46 4.3 Implementation Challenges of Knowledge Management... 48 4.3.1 Cultural... 48 4.3.2 Technology Infrastructure... 49 4.3.3 Process and Architecture... 50 4.4 Adaptation of NPOs to KM... 50 4.5 Challenges Being Faced by the NPO Sector... 51 4.5.1 Phases Crucial to Knowledge Management... 51 4.5.2 Challenges for Each Phase... 52 4.6 Conclusion... 53 4.7 Summary... 54 5 Designing Knowledge Management Strategy... 55 5.1 Introduction... 55 5.2 Knowledge Codification... 55 5.2.1 Principles of Knowledge Codification... 56 5.2.2 Codification Requirement... 57 5.2.3 Points to Observe... 58 5.3 Modes of Knowledge Conversion... 59 5.4 Points to Ponder Before Going for Codification... 60 5.5 Codifying Tacit Knowledge... 61 5.6 Codification Tools and Procedures... 61 5.7 Cognitive Maps... 62 5.8 Decision Trees... 63 5.9 Knowledge Taxonomies... 63 5.10 Strategic Implications of Knowledge Capture and Codification... 64
Contents xi 5.11 Practical Implications of Knowledge Capture and Codification... 66 5.12 Case: Knowledge Management Dell (Formerly Perot Systems)... 67 5.13 What Is the Importance of KM Strategy... 68 5.14 What Is KM Strategy?... 68 5.15 Importance of Knowledge Management Strategy... 68 5.16 Vision, Mission, Goal and Its Importance for Knowledge Management Strategy... 69 5.17 Knowledge Management: A Strategic Initiative?... 69 5.18 The KM Team... 70 5.19 Communities of Practice... 71 5.20 Knowledge Management Process... 73 5.21 Knowledge Management Architecture... 74 5.22 Principles of Knowledge Management and Design of Architecture... 74 5.23 Various Levels of KM Architecture... 76 5.24 KM Cycle... 77 5.25 KM Implementation Roadmap... 79 5.26 KM, Organisational Culture and Change Management... 80 5.26.1 KM Culture Creation... 80 5.26.2 Rewards and Recognition Scheme... 80 5.26.3 Importance of Change Management in KM... 81 5.27 KM Measurement... 81 5.27.1 KM Metrics... 81 5.27.2 Return on Investment... 82 5.28 KM Tools... 83 5.29 Knowledge Management Plan... 84 5.30 KM Risk Plan (Challenges and Issues)... 85 5.31 Knowledge Management Audit... 86 5.32 Knowledge Audit Methodology... 87 5.33 KM: The Way Ahead... 88 5.34 Summary... 88 6 KM Metrics and KM Audit... 89 6.1 KM Metrics... 89 6.2 Measures for Outcomes... 91 6.3 Performance Indicators... 92 6.4 Summary of KM Performance Measures: Personnel and Training... 94 6.5 Structure... 95 6.6 Knowledge Audit and KM Audit... 97 6.7 KM Audit Process... 98 6.8 Steps of KM Audit Process... 99 6.9 Conclusion... 100 6.10 Summary... 100
xii Contents 7 Implementing KM Strategy... 101 7.1 Introduction... 101 7.2 KM Implementation Frameworks... 102 7.3 MAKE Plan for KM... 103 7.4 KM Implementation Framework... 104 7.5 KM Implementation Framework for a Non-profit Organisation... 105 7.6 Steps for KM Implementation... 106 7.7 KM Implementation Roadmap... 109 7.8 Evaluation of KM Implementation... 109 7.9 KM Maturity Model... 110 7.10 Gaps in KM Implementation... 111 7.11 Conclusion... 113 7.12 Summary... 113 8 KM and Web 2.0... 115 8.1 Web 2.0: The User-Driven Intelligent Web... 115 8.2 Difference in Webs 1.0 and 2.0... 115 8.3 Web 2.0 Deployment and Usage... 116 8.4 Mashups: An Important Part of Web 2.0... 117 8.5 How API Is Different From Web... 118 8.6 Social Networking... 118 8.6.1 Some Statistics... 118 8.6.2 Social Networking Sites... 119 8.7 Tools of Social Networking... 119 8.7.1 Wikis... 119 8.7.2 RSS... 120 8.7.3 Tagging... 120 8.7.4 Social Networking... 120 8.7.5 Example of Social Networking Websites... 120 8.8 Web 2.0 Technologies... 121 8.9 The Gap in Web 2.0 and Knowledge Management... 121 8.9.1 Verifying and Codifying Work: Some of the Best Practices that Can Be Integrated... 122 8.10 The Power of Network... 123 8.10.1 Metcalfe s Law... 123 8.10.2 Internal Rate of Return in Social Networking... 124 8.11 Limitation of Social Networking... 124 8.12 Communities of Practice... 125 8.13 Virtual Communities of Practice... 125 8.14 Enterprise Social Networking: Fluidity Versus Institutionalisation... 126 8.14.1 Examples of Organisation Providing Solution for Internal Social Networking... 126
Contents xiii 8.15 Benefits of Knowledge Management Through Social Networking... 127 8.15.1 Six Degrees of Separation... 127 8.15.2 Getting Knowledge on Time... 127 8.15.3 Multitasking... 127 8.15.4 Lowering Attrition Rate with the Help of Social Networking... 128 8.15.5 Cost... 128 8.15.6 Creating a Culture of Sharing in the Organisation... 128 8.15.7 Moving Beyond Geographical Boundaries... 128 8.16 Importance of Data Management in Web 2.0... 128 8.16.1 Managing of Data by Social Networking Sites... 129 8.16.2 New Forms of Data Management Structures Required... 130 8.17 Limitations of Web 2.0 in Knowledge Management... 130 8.17.1 Bandwidth Utilisation... 130 8.17.2 Loss of Productivity... 130 8.17.3 More Malware Access... 131 8.17.4 Too Many Passive Employees... 131 8.18 Summary... 131 9 KM and Cloud Computing... 133 9.1 Introduction... 133 9.2 Data Centre... 134 9.3 Cloud Computing... 135 9.4 Virtualisation... 137 9.5 Types of Clouds... 137 9.6 Public Cloud... 137 9.7 Hybrid Cloud... 138 9.8 Private Cloud... 139 9.9 Segments of Cloud Computing... 139 9.10 KM and Cloud Computing... 141 9.11 Benefits of Cloud Computing... 143 9.12 Introduction of Cloud Computing in Indian IT Firms... 145 9.13 Redefining Role of IT Within a Firm... 145 9.14 Role of IT Vendors in Cloud Computing... 147 9.15 Cloud Computing Can Close the Development Gap... 148 9.16 Cloud Computing for Development... 149 9.17 Summary... 153 10 KM in the Development Sector... 155 10.1 Background... 155 10.2 Need of KM in Developmental Organisations... 156 10.3 Knowledge Products... 156 10.4 KM Cycle... 157
xiv Contents 10.5 Concept of Trust in Development Organisations... 157 10.6 Individual-Level KM... 158 10.7 Transforming Personal Knowledge to Organisational Knowledge... 159 10.8 Outcomes of a Successful KM Plan... 161 10.9 BASIX: A Case Study of Knowledge Management... 161 10.9.1 Background and Working Environment... 161 10.9.2 Knowledge Management in BASIX... 162 10.9.3 KM Process Followed in BASIX... 162 10.10 Conclusion... 162 10.11 Summary... 163 11 Automation in Knowledge Management... 165 11.1 Introduction... 165 11.2 Technology and Knowledge Management... 165 11.3 Definition of Knowledge Management... 166 11.4 Factors That Affect Knowledge Management... 166 11.4.1 Economics... 166 11.4.2 Sociology... 166 11.4.3 Philosophy and Psychology... 167 11.4.4 Practices... 167 11.5 Laws of Knowledge Management... 168 11.6 Approaches to Knowledge Management... 168 11.6.1 Mechanistic Approach... 168 11.6.2 Cultural/Behavioural Approach... 168 11.6.3 Systematic Approach... 169 11.7 Business Mapping of Automation in Knowledge Management Systems... 169 11.8 Knowledge Management Process Model... 171 11.9 Knowledge Management System Architecture... 172 11.10 Infrastructure Services... 174 11.10.1 Storage... 174 11.10.2 Communication... 174 11.11 Knowledge Services... 174 11.11.1 Knowledge Creation... 175 11.11.2 Knowledge Sharing... 175 11.11.3 Knowledge Reuse... 176 11.12 Presentation Services... 176 11.12.1 Personalisation... 176 11.12.2 Visualisation... 177 11.13 Aggregation of Services... 177 11.14 Calculating Return on Investment on KM Initiatives... 178 11.14.1 The US Navy Metrics Model... 178 11.14.2 Prerequisites for Any Model... 179
Contents xv 11.14.3 Cost/Benefit Model... 179 11.14.4 Tangible Costs... 180 11.14.5 Cost Characteristics... 180 11.15 Measurements... 180 11.15.1 Measuring Tangibles... 180 11.15.2 Measuring Intangibles... 181 11.15.3 Actual Intangibles... 181 11.16 The Fusion of Process and Knowledge Management... 181 11.16.1 Fusion Architecture... 182 11.17 Vendor Capabilities... 183 11.18 Summary... 184 11.19 Appendix... 185 11.19.1 Sample Cost Analysis Template... 185 11.19.2 Sample ROI Calculation Template... 186 11.20 Review Questions... 186 Appendix... 187 Additional Case Studies... 189 Further Reading... 193
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