Abstract
Knowledge management was traditionally taken for granted or prepackaged in a very limited view or interpretation of information. However, this contextual and static interpretation of knowledge management works against contradictory viewpoints that are required for meeting and solving the issues brought about by unstable business environments and conditions. Data is usually organized or arranged into information through the combination of data with the existing knowledge and the self system of an individual to create the mental representation of the information or new knowledge. This new knowledge or mental representation is usually used to solve a challenge or to make sense of a business phenomenon (Bergmann 1999).
Key words
Knowledge management, information, data, and information technology, knowledge harvesting, communities of practice, learning organization
Introduction
The business process and methodology is an exiting one; business processes involves the intersection of technology and business, in addition to bringing business knowledge, process methodologies and technology insights into the transformation of business initiatives. However, it has been found that finding the right and the appropriate balance of the discipline in process, technology depth, and business insights in BPM, business process management, can be a very daunting task. The difficult in this results from any imbalance that can result from any one of these three areas (Liebowitz & Beckman 1998). This task can be eased by applying methods of data organization, which usually result to knowledge and knowledge representation. This representation of knowledge is continually changing as businesses acquire new inputs like new feelings, learning, and experiences (Dougherty 1999). This makes the representation of knowledge in individuals to change because their minds become interconnected or branched to other kinds of representations, rather than being layered. Knowledge then becomes dynamic as the individual’s brain is branched, that is to mean that the knowledge representation changes and develops with each new learning or experience the individual goes through (Bateson 1988).
A knowledge management system therefore, attempts to capture or visualize a snapshot of the individual’s representation of knowledge (Bateson 1988). Such a knowledge management system can range from a complex multimillion dollar computer program to a simple story. The act of capturing a snapshot of the representation is what is referred to as knowledge harvesting. In the case of the simple story for example, the representation of knowledge is passed or shared with the others through a verbal snapshot of the knowledge. In the case of a computer program, the representation is installed into a computer as a database and can be used by other individuals in an organization (Davidson 1996). This representation of knowledge can only be shared as a snapshot, as further learning and experiences of the individual are under constant alteration. Some individuals in an organization might utilize this snapshot of knowledge presentation by tapping into the knowledge management system or by using the story to combine it with their already existing knowledge. This usually results to a modified or new kind of knowledge representation that can in turn be used or applied in explaining certain phenomenon in business or solving business or personal needs (Bateson 1988).
The purpose of this paper therefore, is to look at what knowledge management (KM) is and also find out what benefits KM imposes in an organization. The paper is also going to look at the various ways through which knowledge management becomes beneficial to an organization. In addition to this, the paper is also going to critically assess KM through the use of case studies which will be used to pinpoint some of challenges certain organizations have faced during the implementation of the same.
What is KM?
Knowledge management has become a very essential concern for a lot of organizations, and especially those organizations that have already rearranged their processes in business and adopted an approach to business of total quality, into their day to day routines (Liebowitz & Beckman 1998). Major consulting firms and organizations are working hard to implement knowledge management processes and systems into their business methodologies. Knowledge management has many definitions; one of them is delivering the appropriate information to the right individuals at the appropriate time, and aiding individuals to develop knowledge, share and act upon the presented information in a manner that can significantly enhance an organization’s performance (Knowledge Board 2004). For some organization, this means delivering the services and systems that will aid an organization’s partners and employees assess the information they need to make better and wiser decisions. This definition of KM defines three main areas where systems and processes of knowledge management can aid an organization deliver and reach its goals. These three include;
To sustain the knowledge of an organization across generations and missions through the identification and capturing of the knowledge and information found in the organization.
To help individuals organize, find, and share the knowledge they already possess through efficiently managing the resources of information in an organization.
To increase and enhance collaborations and also to facilitate the sharing and creation of knowledge through the development of tools and techniques that enable communities and teams to collaborate across such barriers presented by space and time (Knowledge Board 2004).
Knowledge management can also be defined as the set of processes that work to change the present plan or pattern of knowledge processing in an organization for the purposes of improving the organization and its goals and outcomes. This definition contents that a discrete knowledge activity is the kind of activity that aspires for the same goals as the ones defined above or the one that aspires to contribute to the above set of processes (Liebowitz & Beckman 1998). The discipline of knowledge management therefore, is the one that that studies such processes and their effects on operational and knowledge outcomes and processing. This means that knowledge management does not directly create, manage, or integrate most of an organization’s knowledge outcomes; it means that the knowledge management affects the processes in knowledge management, which in turn also affects the outcomes of knowledge. For example, if a knowledge manager alters the rules impacting the production of knowledge, then the knowledge quality claims might also be enhanced. Or if a knowledge management intervention provides for a new search technology, then that may bring about an improvement in the business forecasting models’ quality (Stewart 1997).
Knowledge management is about improving the utilization of the knowledge in an organization through practices of organizational learning and information management that are appropriate and sound. KM is more than just a process of managing information flows. It is based on two main foundations; the exploitation and utilization of the information in an organization, and the application of the competencies, talents, skills, ideas, thoughts, commitments, intuitions, imaginations and motivations of individuals in an organization. For one to fully understand and appreciate what knowledge management is, they also have to understand what is meant by the term knowledge (Brealey 1998). Knowledge can be defined as a mix of framed values, experiences, expert insight as well as contextual information that provides an organization with a framework of incorporating and evaluating new information and experiences. Knowledge is applied and originates from them minds of those who possess it. In most organizations, knowledge becomes incorporated not only in repositories or documents but also in the processes, routines, norms, and practices of the organization (Stewart 1997).
What contributions does KM make in an organization?
Knowledge management processes usually present an organization with a quantum shift. This is because it is a kind of management centered on expertise that focuses on the utilization of the expertise presented by individuals for the purposes of realizing business advantage. Therefore, when consulting firms and senior managers talk of the benefits knowledge management brings into a firm, it is usually not from an altruistic perspective that organizations as well as individuals must possess a better base for knowledge (Drucker 1995). It is rather, about leveraging the knowledge available in an organization so as to realize some form of business impact, where a significant amount of consideration has gone into finding good practices in knowledge management, which can be used to improve the financial performance and competitiveness of organizations; and in a manner that can be determined through measurement (Timbrell & Jewels 2003).
Practices in knowledge management aims at drawing out people’s tactic knowledge, the knowledge and information they carry around with, what they learn from experience and observation, rather than what is normally stated explicitly (Davenport, Jarvenpaa & Beers 1996). In organizations that have realized the significance of knowledge management, the staff responsibilities and duties in the firm are not focused on the traditional job descriptions that relied on narrow confines. Knowledge management as well goes further that just manipulating and capturing data so as to acquire the underlying information. The goal of managing knowledge is to make businesses more competitive through the utilization of the capacities of their employees to be more innovative and flexible (Timbrell & Jewels 2003).
These attributes must then be specific to the organization, critical to the relevant context, and hard to copy or imitate by other firms; characteristics that an organization can utilize to deepen its knowledge management sustainability as a tool for maintaining and creating a competitive advantage. Traditionally, the benefits of knowledge management are focused on reducing risks and cost; leveraging the already available assets for the purposes of minimizing risk, cost, and cycle time; enhanced decision making; enhanced strategic planning; faster creation of new approaches in technology; decreased cost of training of employees, problem solving that is more robust and fast; and enhanced versatility in the workplace (Brealey 1998).
What is KM about?
Knowledge management is largely successful because of its combination and utilization of several features in an organization. This means that KM cannot exist on one particular attribute of an organization, it has to be based on a number of them. These attributes include the learning organization attribute of an organization, communities of practice, and several information technologies. As a result, knowledge management is just not an HR issue but a combination of the above attributes with HR to bring about an enhancement to the competitive advantage of an organization (Bickhard 2000).
Communities of practice is a term used to refer to a group of people that share a set of challenges, concern, or passion about something, and who further their expertise and knowledge in this area through consistent and continuous interaction. Communities of practice are not just a database, a website, or a collection of the best practices available; rather it is a group of people who learn together, interact, build relationships, and as a result create a sense of belonging, and commitment that is mutual to an organization (Knowledge Board 2004). Without such groups, it has been indicated that knowledge management would be impossible. As a result, knowledge management has to incorporate into its processes, some communities of practice so as to be successful in an organization.
Just as well, knowledge management is about creating an organization that is continually undergoing learning. This is because data, in an organizational context, represents values or facts of results, and the interrelations that occur between data and some other forms of relations possess the ability to represent information. Patterns of these data and information interrelations, as well as other patterns also have the ability to represent knowledge (Pfeffer & Sutton 2000). A learning organization is therefore, important because for the representation of this information in an organization to be of any use it must be clearly understood. The searching for this understanding is what creates a learning organization, a critical management and component of knowledge management (Bickhard 2000).
Also, although many researchers and professionals in KM argue that knowledge management is a process- and – people issue, which must not be understood as an IT expansion, they still acknowledge that technology makes a significant contribution to knowledge management. This can be seen in the ability technology has provided organizations with not only for rapidly disseminating information across an organization, but also to create knowledge bases imposing information that is contextualized with links to enhancements in multimedia and contributors (Simon 2001). In addition information technology has the ability and potential to alter culture by cutting via structures of business traditions, inspiring a style that is informal and strengthening the social networks under which knowledge sharing is based. Management of people, through people track knowledge management is also another critical component of KM which involves HR (Bickhard 2000).
This component is involved mainly in assessing, improving, and changing human individual behaviors and skills through training (Nonaka &Takeuchi 1995). To HR, knowledge is equal to processes, a complex combination of know- how, dynamic skills, and experience, which are under constant changes. HR is traditionally involved in managing and learning these attributes, individually, or on an organizational basis. The HR must therefore, utilize knowledge management to achieve its goals because the traditional method of doing so is not so fast. As we have seen above, knowledge management does not only involve one department in an organization; rather it combines the attributes of the HR department, as well as the IT department to create a learning organization with appropriate community of practices activities that foster a better and successful representation of information and knowledge (Nonaka &Takeuchi 1995).
Critical assessment of KM
There has been a lot of debates on the significance and the use of information technology in knowledge management. On one hand, IT is very essential and is used in many organizations, and so it qualifies as a natural medium through which knowledge can flow in an organization. Most studies show that organizations wishing to implement knowledge management generally rely on appropriate IT infrastructures for the purposes of attaining their goals (Cavaleri & Reed 2000). On the other hand, leading theorists of knowledge management argue against the attitudes that direct management towards significant IT investments, and in most cases at the expense of human capital investments. The danger brought about by this view point is that the knowledge management strategies driven by IT might end up calcifying or objectifying knowledge into inert, static information, thus disregarding and ignoring altogether the function of tactic knowledge this could create organizations with more than enough memory a lot of things but less intelligence to utilize this memory appropriately (AP & QC 1997).
An example of a company that relied too much on IT in the implementation of knowledge management is (AKBP), Aker Busiess Partner, which is a partner of Aker Kvaerner’s, and whose responsibility is to centralize all shared services in the organization. The goal of the company is to enable a group wide and cost base IT/IS support that it can utilize in standardized processes in business, which is both flexible and competitive. The project concerning this point intended to establish AKBP as well as the shared service concept inn 2002. The implementation of the knowledge management system (SAP), in all the Aker Kvaerner companies was named ‘Change to harmony’ and the company’s goal was to harmonize all of its main processes in business through the utilization of the standard provided by SAP (Borghoff 1997).
Several problems were encountered during the implementation of this knowledge management system, as the expected results of the system were not realized. The system for example had not been tested properly and therefore, was overwhelmed by the volume of transaction in the company, the company as well had not documented its processes in the blue print properly and as a result the new KM system did not have the required access to the appropriate functionalities, it also became impossible to transfer data to the new system as it was largely incompatible with the old system, user training used by the company was insufficient, system support for the company was as well insufficient and therefore, became overwhelmed by the incoming requests, and the system also had limited resources (Borghoff 1997).
Another failed implementation of KM system was realized in 1993 in Japan, at Matsushita Company. The system was supposed to decrease the annual working time to a total of 1800 hours. The goal of the policy was not to minimize costs but to alter the managers’ mindsets. The company’s policy was however, unsuccessful mainly because many of the managers were puzzled about the methods and ways of implementing such a system instead of benefiting from it, mainly because the knowledge of the system was explicit. The company realized the mistake of the system and corrected it through the creation of a promotion office which was adored with the responsibility to facilitate and enhance experiments with the KM system for a period of one month, and 150 working hours. The benefits of the system were then experienced in the organization because of the bodily experience the correction system offered unlike the prior implementation (Sveiby 1996).
The best way to apply and utilize information technology in knowledge management then, seems to be the combination of two critical factors; one is the fact that any form of IT deployment will largely be unsuccessful unless it is used in combination with a global cultural change towards values in knowledge and the awareness of the challenges and limitations of IT. Second, is the availability of IT that has been designed expressly, with the designer having knowledge management in mind (Abecker et al 2000).
Conclusion
Knowledge management is a wide topic that any business aspiring to be successful must be very knowledgeable in. However, a business or organization must be able to monitor carefully and decide what kind of knowledge system is suitable for its business processes because the implementation of knowledge management is largely comparable to navigating a ship at deep sea (Marzano 1998). The manager therefore has to be able to monitor and decide at which level the system should be implemented to and the right course the system must be implemented in so as to reach to the desired destination or goal. Knowledge is important for the survival of a business. Though some businesses have been surviving without the utilization of KM, it is important to realize that KM imposter into a business a competitive advantage that can increase the returns of a business tremendously. The systems also smoothen out various business processes that can as well increase the profitability and the returns of a business (Alavi & Leidner 2001). The benefits of KM are numerous, and they depend on the success of the implementation and application of a KM system in an organization.
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