Instructor's Manual Principles of Knowledge Management 3-1

Chapter 3
Solutions of Knowledge Management

TEACHING OBJECTIVES

• To help the users understand the concept of knowledge Management

• To explain KM solutions at four levels: (1) KM processes; (2) KM systems; (3) KM
mechanisms and technologies; and (4) KM infrastructure

KEY TERMS

The following alphabetical list identifies the key terms discussed in this chapter. The page
number for each key term is provided.

Combination, p. 33
Common knowledge, p. 45
Communities of practice, p. 38
Direction, p. 35
Exchange, p. 35
Externalization, p. 34
Information technology infrastructure, p. 34
Internalization, p. 34
Knowledge application, p. 35
Knowledge capture, p. 33
Knowledge discovery, p. 33
Knowledge management, p. 30
Knowledge management infrastructure, p. 32
Knowledge management mechanisms, p. 36
Knowledge management processes, p. 32
Knowledge management solutions, p. 31
Knowledge management systems, p. 31
Knowledge management technologies, p. 36
Knowledge sharing, p. 34
Routines, p. 35
Socialization, p. 33

TEACHING SUGGESTIONS
This is a critical chapter for both undergraduate and graduate courses. At both levels, the
instructor might consider using practical exercises, such as on: (a) transferring tacit knowledge
through meetings and conversations (i.e., socialization); (b) transferring explicit knowledge
through the transfer of notes or e-mail messages (i.e., externalization followed by exchange);
and (c) the use of FAQ sites or calling a tech-support group regarding a problem, say with
Microsoft Windows, which reflects the use of direction. Such hands-on exercises should help
Instructor's Manual Principles of Knowledge Management 3-2

both undergraduate and graduate students in comprehending, and distinguishing among,

various KM processes.

In using this chapter with undergraduate students, the instructor might consider focusing on the
vignettes and other examples (e.g., Table 3-1). At the graduate level, on the other hand, a more
thorough and in-depth coverage of the concepts from this chapter is essential. The instructor
might also consider generating in-class discussion among students regarding the relative merits
of alternative approaches to managing knowledge, and how these approaches might differ
across tacit and explicit knowledge. This would help prepare the students for Chapter 5 as well.

REVIEW QUESTIONS
1. What is KM? What are its objectives?

Knowledge management could be defined as doing what is needed to get the most out of
knowledge resources. Managing any resource, for that matter, involves doing what is
necessary to get the most out of that resource. Hence at a basic level, KM can be so
defined. However, to obtain a more specific definition of KM, we need to examine this
definition in detail.

The above definition of KM can be applied to both individuals as well as organizations. Both
have “knowledge resources” that can be utilized. These resources are not merely limited to
the knowledge currently possessed by the individual or the organization, but also include the
knowledge that can potentially be obtained at some cost, from other individuals or
organizations as well.

Secondly, “get the most” reflects the impacts of KM on the goal achievement of the
individual or the organization. The objective of KM is to enhance the extent to which
knowledge facilitates the achievement of individual or organizational goals. Also,
cost/benefit considerations imply that the objective of KM is to enhance the impact of
knowledge so that the benefits of KM exceed the costs of doing so.

Finally, the words “things needed” refer to a variety of actions involved in the KM process.
Broadly, these activities are intended to discover new knowledge, capture existing
knowledge, share knowledge with others, and apply knowledge.

Considering the above discussion, KM can now be defined as performing the activities
involved in discovering, capturing, sharing, and applying knowledge so as to enhance, in a
cost-effective fashion, the impact of knowledge on the unit’s goal achievement.

2. Describe the ways to facilitate KM, along with suitable examples.

KM is facilitated in a number of ways by means of KM solutions. These may be divided into

four broad levels, as shown in the Figure 3.1: (1) KM Processes; (2) KM Systems; (3) KM
Mechanisms and Technologies; and (4) KM infrastructure.

a. KM Processes -- are the broad processes that aid in discovering, capturing, sharing, and
applying knowledge. These include combination, socialization, externalization,
internalization, exchange, directions, and routines, as shown in Figure 3.2. For example,
internalization processes benefit from simulations or experiments, which enable
Instructor's Manual Principles of Knowledge Management 3-3

individuals to learn through experience, as well as from face-to-face meetings, on-the-

job training, and demos.
b. KM Systems -- are the integration of technologies and mechanisms, developed to
support the above four KM processes. KM systems include expert-seeker systems,
which help locate individuals possessing knowledge in a particular area, and rely on a
combination of information technologies and mechanisms for classifying knowledge
areas.
c. KM Mechanisms and Technologies -- are used in KM systems, each of which utilize a
combination of multiple mechanisms and multiple technologies, which again in turn
could, under differing circumstances, support multiple KM systems. Examples of KM
mechanisms include on- the- job training and apprenticeship, while examples of KM
technologies include databases and Internet.
d. KM Infrastructure -- reflects the long-term foundation for KM. KM mechanisms and
technologies rely on the KM infrastructure for their success. Examples of KM
infrastructure include the data contained in an organization’s databases and the quality
of the organization’s employees (in terms of their tacit knowledge).

3. Define knowledge discovery and describe two important ways of managing

knowledge discovery.

Knowledge discovery may be defined as the development of new tacit or explicit knowledge
from data and information or from the synthesis of prior knowledge. Combination and
socialization, the two important ways of managing knowledge discovery, are discussed
below.

The discovery of new explicit knowledge relies most directly on combination, wherein the
multiple bodies of explicit knowledge, data, or information are synthesized to create new,
more complex sets of explicit knowledge. Existing explicit knowledge, data, and information
are reconfigured, recategorized and recontextualized to produce new explicit knowledge.
For example, data mining techniques may be used to uncover new relationships amongst
explicit data that may be lead to create predictive or categorization models that create new
knowledge.

The discovery of new tacit knowledge, on the other hand, relies most directly on
socialization, which involves the integration of multiple streams for the creation of new
knowledge. It is the synthesis of tacit knowledge across individuals, usually through joint
activities rather than written or verbal instructions. For example, a simple discussion among
an organization’s employees during a coffee break can help in group-wise knowledge
sharing.

4.Briefly describe the processes involved in KM within a unit. How would these
processes relate to each other?

Knowledge management within a unit relies on four main kinds of KM Processes. They are
as shown in Figure 3.2 and discussed below:

Knowledge Discovery – is defined as the development of new tacit or explicit knowledge

from data and information or from the synthesis of prior knowledge. The discovery of new
explicit knowledge relies most directly on combination, whereas the discovery of new tacit
knowledge relies most directly on socialization. Combination leads to the discovery of new
explicit knowledge wherein the multiple bodies of explicit knowledge are synthesized to
Instructor's Manual Principles of Knowledge Management 3-4

create new, more complex sets of explicit knowledge. Socialization involves the integration
of multiple streams for the creation of new knowledge.

Knowledge Capture – can be defined as the process of retrieving either explicit or tacit
knowledge that resides within people, artifacts, or organizational entities. The knowledge
capture process benefits most directly from two KM subprocesses, externalization and
internalization. Externalization and Internalization help capture the tacit knowledge and
explicit knowledge, respectively.

Knowledge Sharing – refers to the process through which explicit or tacit knowledge is
communicated to other individuals. Knowledge sharing involves effective transfer, so that
the recipient of knowledge can understand it well enough to act on it. What is shared is
knowledge rather than recommendations based on the knowledge. Knowledge sharing may
take place across individuals as well as across groups, departments, or organizations.
Depending on whether explicit or tacit knowledge is being shared, exchange or socialization
processes are used.

Knowledge Application – refers to the use of knowledge to make decisions and perform
tasks, thereby contributing to organizational performance. Knowledge application depends
on the available knowledge, which in turn depends on the processes of knowledge
discovery, capture, and storage. Applying knowledge does not necessarily mean that the
party that uses it also understands it. All that is needed is that somehow the knowledge be
used to guide decisions and actions. Knowledge application benefits from two processes
that do not involve the actual transfer or exchange of knowledge between the concerned
individuals, routines and direction.

5. Compare and contrast internalization and externalization processes for managing

knowledge.

Internalization is the conversion of explicit knowledge into tacit knowledge. The explicit
knowledge may be in the form of action and practice, so that the individual acquiring the
knowledge can re-experience what others have gone through. Alternatively, individuals
could acquire tacit knowledge in virtual situations, either vicariously by reading manuals or
others' stories, or experientially through simulations or experiments. An example of
internalization would be a doctor, fresh out of medical school, reading a book on new
surgery techniques, and learning from it. This learning helps the doctor, and the hospital he
works for, capture the knowledge contained in the book.

Externalization involves converting tacit knowledge into explicit forms such as words,
concepts, visuals, or figurative language. It helps translate individuals’ tacit knowledge into
explicit forms that can be more easily understood by the rest of their group. It is a complex
process because tacit knowledge is often difficult to articulate. An example of externalization
is a doctor transcribing and documenting his thoughts and observations while examining a
patient so as to save it in the patient’s medical file for future reference. This captures the
tacit knowledge acquired by the doctor and makes it available for future use by the hospital.

Thus, internalization and externalization both add value to the knowledge capture process.
However, externalization helps capture tacit knowledge while internalization helps capture
explicit knowledge.

6. What is ‘knowledge sharing” as opposed to “knowledge application”?

Instructor's Manual Principles of Knowledge Management 3-5

Knowledge sharing and knowledge application are two different steps in the KM process.
They are described below:

Knowledge sharing is the process through which explicit or tacit knowledge is

communicated to other individuals. Knowledge sharing involves the recipient acquiring the
shared knowledge as well as being able to take action based on it, as opposed to
recommendations based on the knowledge being shared, which only results in the
utilization of knowledge without the recipient internalizing the shared knowledge.
Knowledge sharing can occur across individuals as well as across groups, departments, or
organizations. If knowledge exists at a location that is different from where it is needed,
either knowledge sharing or knowledge utilization without sharing is necessary. However,
sharing knowledge is clearly an important process in enhancing organizational
innovativeness and performance. Depending on whether explicit or tacit knowledge is
being shared, exchange or socialization processes are used. Socialization facilitates the
sharing of tacit knowledge in cases in which new tacit knowledge is being created, as well
as when new tacit knowledge is not being created. Exchange, on the other hand, focuses
on the sharing of explicit knowledge. It is used to communicate or transfer explicit
knowledge among individuals, groups, and organizations. In its basic nature, the process
of exchange of explicit knowledge does not differ from the process through which
information is communicated.

Knowledge application depends on the available knowledge, which in turn depends on the
processes of knowledge discovery, capture, and storage. The better the processes of
knowledge discovery, capture, and storage, the greater the likelihood that the knowledge
needed for effective decision making is available. In knowledge application, the party that
makes use of the knowledge does not necessarily need to understand it, but should be
able to use the knowledge to guide decisions and actions. Knowledge application thus
benefits from two processes that do not involve the actual transfer or exchange of
knowledge between the concerned individuals – routines and direction. Routines involve
the utilization of knowledge embedded in procedures, rules, and norms that guide future
behavior. Routines economize on communication more than directions as they are
embedded in procedures or technologies. However, they take time to develop and rely on
constant repetition. Direction, in contrast, refers to the process through which the
individual possessing the knowledge directs the action of another individual without
transferring to him the knowledge underlying the direction. This preserves the advantages
of specialization and avoids the difficulties inherent in the transfer of tacit knowledge.

7. Briefly describe why General Electric’s CEO Jack Welch may have suggested
knowledge sharing as important.

Knowledge sharing is the process through which explicit or tacit knowledge is

communicated to other individuals. Knowledge sharing involves the recipient acquiring the
shared knowledge as well as being able to take action based on it, as opposed to
recommendations based on the knowledge being shared, which only results in utilization
of knowledge without the recipient internalizing the shared knowledge. Knowledge sharing
can occur across individuals as well as across groups, departments, or organizations. If
knowledge exists at a location that is different from where it is needed, either knowledge
sharing or knowledge utilization without sharing is necessary.
Depending on whether explicit or tacit knowledge is being shared, exchange or
socialization processes are used. Socialization facilitates the sharing of tacit knowledge in
Instructor's Manual Principles of Knowledge Management 3-6

cases in which new tacit knowledge is being created, as well as when new tacit
knowledge is not being created. Exchange, on the other hand, focuses on the sharing of
explicit knowledge. It is used to communicate or transfer explicit knowledge among
individuals, groups, and organizations. In its basic nature, the process of exchange of
explicit knowledge does not differ from the process through which information is
communicated.

If knowledge exists at a location that is different from where it is needed, either knowledge
sharing or knowledge utilization without sharing is necessary. Sharing knowledge is
clearly an important process in enhancing organizational innovativeness and
performance. Its importance is elucidated by the fact that it was one of the three business
processes for which General Electric’s CEO Jack Welch took personal responsibility,
besides the allocation of resources and development of people.

8. How does direction differ from routines in regard to knowledge application?

In knowledge application, the party that makes use of the knowledge, does not
necessarily need to understand it, but should be able to use the knowledge to guide
decisions and actions. knowledge application benefits from two processes that do not
involve the actual transfer or exchange of knowledge between the concerned individuals,
routines and direction.

Direction refers to the process through which the individual possessing the knowledge
directs the action of another individual without transferring to him the knowledge
underlying the direction. This preserves the advantages of specialization and avoids the
difficulties inherent in the transfer of tacit knowledge. An example of Direction would be
when a computer programmer calls his software project manager to ask how to solve a
particular problem with a piece of code, and then proceeds to solve the problem based on
the instructions given by the project manager. He does this without acquiring the
knowledge himself, so that if a similar problem reoccurs in the future, he would be unable
to identify it as such and would therefore be unable to solve it himself without calling an
expert.

Routines involve the utilization of knowledge embedded in procedures, rules, and norms
that guide future behavior. Routines economize on communication more than directions
as they are embedded in procedures or technologies. However, since they require
constant repetition, they take time to develop. For example, a computerized inventory
management system utilizes considerable knowledge about the relationship between
demand and supply, but neither the knowledge nor the directions are communicated
through individuals.

9. Explain the importance of KM mechanisms and KM technologies to KM systems.

Give examples of each.

Both KM mechanisms and KM technologies support KM systems. Their differences

however are explained below:

KM mechanisms are organizational or structural means used to promote KM. They enable
KM systems, and are supported by KM infrastructure. KM mechanisms may or may not
utilize technology. They involve some kind of organizational arrangement or social or
structural means of facilitating KM. Examples of KM Mechanisms include learning by
Instructor's Manual Principles of Knowledge Management 3-7

doing, on-the-job training, learning by observation, and face-to-face meetings. More long-
term KM mechanisms include the hiring of a chief knowledge officer, interdepartmental
projects, traditional hierarchical relationships, organizational policies, standards, initiation,
and training process for new employees, and employee rotation across departments.

KM technologies support KM systems and also benefit from the KM infrastructure,

especially the information technology infrastructure. KM technologies are a vital
component of KM systems. Technologies that support KM include artificial intelligence (AI)
technologies including case-based reasoning systems, electronic discussion groups,
computer-based simulations, databases, decision support systems, enterprise resource
planning systems, expert systems, management information systems, expertise locator
systems, video-conferencing, and information repositories including best practices
databases and lessons learned systems.

Examples of the use of KM technologies include World Bank’s use of a combination of

video interviews and hyperlinks to documents and reports to systematically record the
knowledge of employees that are close to retirement. Similarly, at BP, desktop video-
conferencing has improved communication and enabled many problems at offshore oil
fields to be solved without extensive traveling.

10. Briefly explain the four kinds of classifications for KM systems based on the
process supported.

Depending on the KM process most directly supported, KM systems can be classified into
four kinds:
1) Knowledge Discovery Systems support the process of developing new tacit or explicit
knowledge from data and information or from the synthesis of prior knowledge. These
systems support two KM subprocesses associated with knowledge discovery:
combination, enabling the discovery of new explicit knowledge, and socialization, enabling
the discovery of new tacit knowledge. Mechanisms and technologies can support
knowledge discovery systems by facilitating combination and/or socialization.
Mechanisms that facilitate combination include collaborative problem solving, joint
decisionmaking, and collaborative creation of documents. Technologies facilitating
combination include knowledge discovery systems, databases, and Web-based access to
data. Repositories of information, best practices, and lessons learned also facilitate
combination. Technologies can also facilitate socialization, but to a smaller extent than
they can facilitate combination.
2) Knowledge Capture Systems support the process of retrieving either explicit or tacit
knowledge that resides within people, artifacts, or organizational entities. These systems
can aid in the capture of knowledge that resides within or outside organizational
boundaries, including within consultants, competitors, customers, suppliers, and prior
employers of the organization’s new employees. Knowledge capture systems rely on
mechanisms and technologies that support externalization and internalization. KM
mechanisms can enable knowledge capture by facilitating externalization, or
internalization.
3) Knowledge Sharing Systems support the process through which explicit or implicit
knowledge is communicated to other individuals. They do so by supporting exchange and
socialization. Discussion groups or chat groups facilitate knowledge sharing by enabling
an individual to explain her knowledge to the rest of the group. In addition, knowledge-
sharing systems also utilize mechanisms and technologies that facilitate exchange. Some
of the mechanisms that facilitate exchange are memos, manuals, progress reports, letters,
Instructor's Manual Principles of Knowledge Management 3-8

and presentations. Technologies facilitating exchange include groupware and other team
collaboration mechanisms, Web-based access to data, and databases, and repositories of
information, including best practice databases, lessons learned systems, and expertise-
locator systems.
4) Knowledge Application Systems support the process through which some individuals
utilize knowledge possessed by other individuals without actually acquiring, or learning,
that knowledge. Mechanisms and technologies support knowledge application systems by
facilitating routines and direction.

11. State the roles of (a) organizational culture and (b) organizational structure for the
development of a good KM infrastructure.

KM infrastructure is the foundation on which KM resides. Organization culture and

organization structure are two of its main components.

Organizational Culture reflects the norms and beliefs that guide the behavior of the
organization’s members. It is an important enabler of KM in organizations. A supporting
organization culture helps motivate employees to understand the importance and benefits
from KM and to find time for it. Getting people to participate in knowledge sharing is
considered the hardest part of KM, and a vital part of implementing KM is in making it a
part of the organization’s culture. A KM enabling culture is one that understands the value
of KM practices, has support for KM at all managerial levels, provides incentives that
reward knowledge sharing, and encourages organizational interaction for the creation and
sharing of knowledge. In contrast, cultures that stress individual performance and hoarding
of information within units encourage limited employee interaction, and lack of an involved
top management creates inhibited knowledge sharing and retention.

Organizational Structure is another vital aspect on which KM depends on. Several aspects
of organization structure are relevant. First, the hierarchical structure of the organization
affects the people with whom each individual frequently interacts, and to or from whom he
is consequently likely to transfer knowledge. Traditional reporting relationships influence
the flow of data and information, the nature of groups who make decisions together, and
consequently affect the sharing and creation of knowledge. By decentralizing or flattening
their organization structures, companies aim to increase knowledge sharing with a larger
group of individuals. Organization structures can facilitate KM through communities of
practice, which is an organic and self-organized group of individuals who are dispersed
geographically or organizationally but communicate regularly to discuss issues of mutual
interest. They provide access to a larger group of individuals than possible within
traditional departmental boundaries. Consequently, there are more numerous potential
helpers, and this increases the probability that at least one of them will provide useful
knowledge. Further, they also provide access to external knowledge sources.

12. In what way does information technology infrastructure contribute to KM within an

organization?

An organization’s information technology infrastructure greatly contributes to KM. While

organizations could develop specialized IT infrastructure to pursue KM, usually the
existing IT infrastructure, developed to support the organization’s information systems
needs, also facilitates KM.
Instructor's Manual Principles of Knowledge Management 3-9

Information technology infrastructure includes data processing, storage, and

communication technologies and systems. It comprises the entire spectrum of an
organization’s information systems, including transaction processing systems and
management information systems. It includes databases and data warehouses, as well as
enterprise resource planning systems.

IT infrastructure provides capabilities in four important aspects: reach, depth, richness,

and aggregation.

Reach pertains to access and connection, and the efficiency of such access. Depth, in
contrast, focuses on the detail and amount of information that can be effectively
communicated over a medium. The richness of a medium is based on its ability to provide
multiple cues, quick feedback, personalize messages, and use natural language to convey
subtleties. Finally, aggregation involves the collection of large volumes of information from
multiple sources for processing.

To summarize, the four IT capabilities, mentioned above, enable KM by enhancing

common knowledge or by facilitating the KM processes.

APPLICATION EXERCISES
1. How would you, as a CEO of a manufacturing firm, facilitate the growth of KM
practices within your organization?

The CEO of a firm can facilitate the growth of KM practices within the organization through
the following actions:
1. Championing the building of a KM infrastructure through public statements as well as
budgeting decisions
2. Promoting the development of KM mechanisms and infrastructure
3. Supporting the creation of appropriate KM systems that combine KM mechanisms and
technologies
4. Fostering the use of the firm’s KM processes such as socialization, externalization,
and so on
More specifically, the CEO of a manufacturing firm would also need to create a culture
where: (a) KM practices contribute to both quality and efficiency of the firm’s
manufacturing processes; (b) KM practices also contribute to the identification and design
of innovative and competitively superior products; and (c) investments in the firm’s KM
technologies can be synergistically integrated with, rather than competing with,
investments in the firm’s manufacturing technologies.

2. Interview a manager of an organization where knowledge management practices

have recently been implemented. Identify the processes involved.

The nature of the question makes an explicit answer impossible here. The important thing
is that the students approach the exercise by preparing themselves for the interview. In
this regard, the students would do well to read the chapter prior to the interview and
identify specific questions to ask during the interview. While the specific questions would
depend on the nature of the organization, the interview should begin by focusing on the
various KM processes, and then move downward (see Figure 3.1) toward KM systems,
KM mechanisms and technologies, and finally KM infrastructure. A two-hour interview
Instructor's Manual Principles of Knowledge Management 3-10

would be needed to obtain a reasonable understanding of an interviewee’s views of these

aspects of an organization’s KM.

3. Did you observe knowledge discovery, knowledge capture, knowledge sharing, and
knowledge application in the organization? Accordingly identify what in your
opinion was the most critical stage for the organization, and which was the least
important.

This answer depends on the nature of the specific organization, and the findings from the
interview discussed in Question 2.

4. Choose a company that has well-established groupware without a knowledge

management system yet. Based on this company, briefly explain how the
communications between employees were made and compare the difference
between knowledge management system and the company’s legacy system in
terms of knowledge sharing.

This answer also depends on the nature of the specific organization, and the nature of its
groupware. However, some of the possible differences that might be found between the
groupware and a knowledge management system (KMS) are: (1) an almost exclusive
focus on the exchange of information and explicit knowledge in the groupware, whereas
the KMS would also support the sharing of tacit knowledge; (2) the groupware would
focus on communication of information but KMS would also support the identification of
experts possessing knowledge about various areas; (3) the groupware would focus on
communication of information but KMS would also suppport routines and the
communication of directions from experts; and (4) the groupware would focus on the
exchange of information but KMS would also facilitate the externalization of tacit
knowledge at the tranmitting side and the internalization of the explicit knowledge at the
receiving side.

5. How would you develop a KM system? What are the possible mechanisms and
technologies you could utilize?

In developing KM systems to support KM processes, I would utilize a variety of KM

mechanisms and technologies.

KM mechanisms involve some kind of organizational arrangement or social or structural

means of facilitating KM. The possible KM mechanisms that could be utilized are learning
by doing, on-the-job training, learning by observation, and face-to-face meetings. More
long-term KM mechanisms include the hiring of a chief knowledge officer, co-operative
projects across departments, traditional hierarchical relationships, organizational policies,
standards, initiation process for new employees, and employee rotation across
department

KM technologies benefit from the KM infrastructure, especially the information technology

infrastructure. Examples of KM technologies are the use of a combination of video
interviews and hyperlinks to documents and reports to systematically record the
knowledge of employees close to retirement, desktop video-conferencing for
communication and enabling problem solving at offshore locations without the need for
extensive traveling.
Instructor's Manual Principles of Knowledge Management 3-11

6. How would you utilize knowledge discovery systems and knowledge capture
systems in an organization that is spread across the globe? Does geographic
distance hamper the utilization of these systems?

In an organization spread across the globe, the use of knowledge discovery systems and
knowledge capture systems do tend to get hampered to some extent due to geographic
distances, but due to the increasing use of technology, these problems are getting smaller
and smaller.

Knowledge discovery systems support the process of developing new tacit or explicit
knowledge from data and information or from the synthesis of prior knowledge.
Mechanisms and technologies can support knowledge discovery systems by facilitating
combination and/or socialization.

• Mechanisms that facilitate combination include collaborative problem solving, joint

decisionmaking, and collaborative creation of documents. In a global organization
sharing documents among senior management results in the creation of new explicit
knowledge, resulting in a better understanding of products and a corporate vision.
Mechanisms that facilitate socialization include apprenticeships, employee rotation
across areas, conferences, brainstorming retreats, cooperative projects across
departments, and initiation process for new employees. In a global organization, this
could become expensive, however, as it would involve the physical transfer of
employees from one location to another.
• Technologies facilitating combination include knowledge discovery systems,
databases, and Web-based access to data. Repositories of information, best practices
and lessons learned would also facilitate combination in global organizations.
Technologies can also facilitate socialization, but to a smaller extent than they can
facilitate combination. Some of the technologies for facilitating socialization in a global
organization include video-conferencing and electronic support for communities of
practice.

Knowledge capture systems support the process of retrieving either explicit or tacit
knowledge that resides within people, artifacts, or organizational entities. Knowledge
capture systems rely on mechanisms and technologies that support externalization and
internalization.

• Mechanisms can enable knowledge capture by facilitating externalization, i.e., the

conversion of tacit knowledge into explicit form, or internalization, i.e., the conversion
of explicit knowledge into tacit form. The development of models or prototypes, and
the articulation of best practices or lessons learned are some examples of
mechanisms that might enable externalization in a global organization. Learning by
doing, on-the-job training, learning by observation, and face-to-face meetings are
some of the mechanisms that might facilitate internalization in a global organization.
• Technologies can also support knowledge capture systems by facilitating
externalization and internalization. Externalization through knowledge engineering is
necessary for the implementation of intelligent technologies such as expert systems,
case-based reasoning systems, and knowledge acquisition systems. Technologies
that facilitate internalization include computer-based training and communication
technologies.
Instructor's Manual Principles of Knowledge Management 3-12

7. Cisco (http://www.cisco.com) developed a new KM system. Since Cisco is an

Internet-centered company, a Web-based resource is essential. However, instead of
building the resource, the company looked to a partner to speed the KM
development process. Describe strengths and weaknesses of employing an
outsourcing company for developing KM system.

• Here are a few points highlighting the advantages of outsourcing the development of a
KM system:
• Cost saving – outsourcing is usually done as it saves overall costs
• Management can focus of main business activities
• Increased productivity and efficiency is usually experienced
• Improved services offered by an experienced outsourcing company
• Improved focus on core business values
• Reduction in misuse of knowledge by employees
• Increased knowledge sharing throughout the organization
• Some of the potential disadvantages include:
• Lack of awareness about the specifics of the organization
• Lack of prior planning leads to schedules not being met by the outsourcing company
• Fear of leaking out of sensitive information and knowledge

8. Suggest reasons why a knowledge sharing system could be established between

rival organizations (e.g., MasterCard and Visa) for the mutual benefit of both
organizations.

Knowledge sharing is the process through which explicit or tacit knowledge is

communicated to other individuals. Knowledge sharing means “effective” transfer, so that
the recipient of knowledge can understand it well enough to act on it. Secondly, what is
shared is knowledge rather than recommendations based on the knowledge, and finally,
knowledge sharing may take place across individuals as well as across groups,
departments, or organizations. Depending on whether explicit or tacit knowledge is being
shared, exchange or socialization processes are used.

In the case of rival organizations like MasterCard and Visa, or Honda and Toyota,
knowledge sharing could mutually benefit both organizations. Each organization has
employees with a certain amount of tacit and explicit knowledge. It is more than likely each
organization’s employees have some knowledge that is not known to the employees of the
other organization. By pooling these knowledge resources, it would mutually benefit both
organizations.

In the case of Honda and Toyota, if Honda designs a more fuel efficient engine and Toyota
designs an extremely aerodynamic car body, by an exchange of knowledge between the
two organizations, both benefit by developing a very popular vehicle.

In the past, many rival organizations have come together and shared their knowledge to
fight the competition, resulting in better products, and well-established industry standards.
When IBM initially developed its own line of PC motherboards with a special high speed
expansion interface (known as MCA) and charged a licensing fee for other manufacturers
to use the design, the competition in the form of small PC clone manufacturers (like
Compaq) shared their knowledge, pooled their resources, and developed their own
Instructor's Manual Principles of Knowledge Management 3-13

standard of PC motherboard expansion interface (known as ISA) which resulted in the

failure and obsolescence of IBM’s standard.

Thus we see that rival organizations can always set up a knowledge sharing system
between them to their mutual benefit.

9. Dell Computer Corporation (http://www.dell.com) has developed a host of Microsoft

Exchange Server–based KM solutions that have helped the company increase
productivity and cut costs while improving customer service. Find information on
types of KM technology and solutions used these days and compare with those of
Dell.

The answer about the specifics related to Dell would depend on the latest news regarding
Dell, from sources such as the Wall Street Journal, Business Week, Fortune, and online
sources such as Lexis/Nexis and ABI Inform. For example, one article (“The message
about TCO,” by Christy Hudgins-Bonafield. InformationWeek. Manhasset: Jun 15, 1998,
pp. 50-59) describes how Dell’s migration of 12,500 e-mail seats from cc:Mail to
Exchange beginning last August helped reduce downtime for its e-mail users and
improved availability and reliability. "We weren't able to reach 99.9+% on cc:Mail
consistently, and now we're able to reach it," said Arnie Panella, senior manager for global
messaging infrastructure. This level of availability is important because Dell is growing so
quickly. "It feels like we're running at 100 miles per hour and changing all four tires at the
same time," Panella says. Dell studied messaging TCO midway through its migration.

Similarly, another article (“ICMI's High-Level Knowledge Exchange Conference to

Address Potential Landmines in Establishing Overseas Call Centers, PR Newswire,
September 9, 2003) includes discussion about the cost savings produced by relocating or
outsourcing some of their operations to countries such as India and the Philippines. Such
operations are supported by knowledge sharing technologies.

In general, the use of technology in KM is not new, and considerable experience has been
built up by the early pioneers. Even before the availability of solutions such as MS
Exchange and Lotus Notes, on which many contemporary KM solutions are based,
companies were deploying intranets based on early generations of networking and
computer technology that improved access to knowledge online. Collaboration and
knowledge sharing solutions also arose from the development of online conferencing and
forums using mainframe computer technology. Let us look at the use of technology in the
facilitation of KM.

Tacit to Tacit knowledge:

The most typical way in which tacit knowledge is built and shared is in face-to-face
meetings and shared experiences. An increasing proportion of meetings and other
interpersonal interactions use online tools known as groupware. Groupware is a fairly
broad category of application software that helps individuals to work together in groups or
teams. Groupware provides a synthetic environment, often called a virtual space, within
which participants can share certain kinds of experience. Recent developments in
technology provide a richer kind of shared experience by the use of applications that
support real-time online meetings. These can include video and text-based conferencing,
as well as synchronous communication and chat. Commercial products of this type
include Lotus Sametime and Microsoft NetMeeting. Another technology known as
Expertise Location Systems is used to suggest the names of persons who have
Instructor's Manual Principles of Knowledge Management 3-14

knowledge in a particular area. In their simplest form, such systems are search engines
for individuals, but they are only as good as the evidence that they use to infer expertise.
Examples are the Lotus Discovery Server product which contains a facility whereby an
individual's expertise is determined. The Tacit Knowledge Systems, Knowledge Mail
product analyzes the e-mail a person writes to form a profile of his or her expertise.

Tacit to Explicit knowledge:

The conversion of tacit to explicit knowledge (externalization) involves forming a shared
mental model, then articulating through dialog. Collaboration systems and other
groupware, like specialized brainstorming applications can support this kind of interaction
to some extent. Online discussion databases are another potential tool to capture tacit
knowledge and to apply it to immediate problems. Further, newsgroups and similar forums
are open to all and share some of the same characteristics in that questions can be posed
and answered.

Explicit-to-Explicit knowledge:
There can be little doubt that the phase of knowledge transformation best supported by
information technology is combination, because it deals with explicit knowledge. Once
tacit knowledge has been conceptualized and articulated, capturing it in a persistent form
as a report, an e-mail, a presentation, or a Web page makes it available to the rest of the
organization. Technology already contributes to knowledge capture through the ubiquitous
use of word processing, which generates electronic documents that are easy to share via
the Web, e-mail, or a document management system. MS-Word and WordPerfect are
good examples. Although the most common way to capture knowledge by far is to write a
document, technology has made the use of other forms of media feasible. Digital audio
and video recordings are now easily made, and an expert may find that speaking to a
camera or microphone is easier or more convenient than writing, particularly if the video is
of a presentation that has to be made in the ordinary course of business, or if the audio
recording can be made in an otherwise unproductive free moment. It is also now relatively
easy to distribute audio and video over networks as well. Also, one cannot forget the
improvements in the accuracy of automatic speech recognition that holds out the promise
of usable speaker-independent recognition with unconstrained vocabulary in the
foreseeable future.

Finally this discussion on explicit knowledge would not be complete without mentioning
search features like search engines. The most important technology for the manipulation
of explicit knowledge helps people with the most basic task of all: finding it! Yahoo! and
Google are good examples of search portals.

Explicit to Tacit knowledge:

Technology also helps users to form new tacit knowledge. Within organizations, online
learning has the advantage of being able to be accomplished without travel and at times
that are compatible with other work. A wide variety of tools and applications support
distance learning. Different visualizations of a large collection of documents have been
used with the goal of making subject-based browsing and navigation easier. These
methods include text-based category trees, exemplified by the current Yahoo! user
interface. Several graphical visualizations have also been described. Themescape uses a
shaded topographic map as a metaphor to represent the different subject themes by
location, their relatedness by distance, and the proportional representation of the theme in
the collection by height, whereas VisualNet uses a different map metaphor for showing
subject categories. Another approach is represented by the Cat-a-Cone system that
Instructor's Manual Principles of Knowledge Management 3-15

allows visualization of documents in a large taxonomy or ontology. In this system the

model is three-dimensional and is rendered using forced perspective. Search is used to
select a subset of the available documents for visualization.

10. Determine ways in which a law firm would implement and utilize knowledge
application systems. Conduct interviews if necessary.

Knowledge contributes most directly to organizational performance when it is used to

make decisions and perform tasks. The process of knowledge application depends on the
available knowledge, and the latter depends on the processes of knowledge discovery,
capture, and storage. In a law firm, proper knowledge application is vital due to the nature
of the business.

Most law firms have a number of cases to handle, each requiring their own area of
knowledge and expertise. Law is a vast subject that involves in-depth information and
knowledge. Further, law is constantly changing and it is important for the firm to be
updated with the latest changes made. In such a scenario, KM is critical. The best way to
implement this is through the use of knowledge application systems.

Knowledge application systems support the process through which some individuals utilize
knowledge possessed by other individuals without actually acquiring, or learning, that
knowledge. Mechanisms and technologies support knowledge application systems by
facilitating routines and direction.

Possible mechanisms that support knowledge application in a law firm could be a senior
partner advising a subordinate about his experience with a particular case and his opinion
about the strategy employed for a particular case. Frequent group meetings and case
discussions are also good examples, resulting in knowledge being applied throughout the
members of the law firm.

Technology can also be used to support knowledge application in such a case. Every law
firm must have access to the latest legal developments and changes in the law.
Computers connected to legal repositories on the Internet, or with specialized software for
the same purpose, are most suitable in achieving this goal. Information should be at the
lawyer’s fingertips at all times. Further, technologies like legal bulletin boards and forums
could also be used to discuss certain nonconfidential aspects of the case on a nationwide
platform to invite diverse opinions and strategies.

11. Interview at least three managers from local organizations that have recently
implemented knowledge management. Contrast the differences in organization
culture, structure, IT infrastructure, common knowledge, and physical knowledge
within the organizations.

This answer would depend entirely on the three organizations and the findings of the
interviews. A specific answer is not possible here.

12. Critique the following statement: “We have implemented several IT solutions: expert
systems, chat group, and best practices/lessons learned databases. These powerful
solutions will surely induce our employees to internalize knowledge.”
Instructor's Manual Principles of Knowledge Management 3-16

Internalization is a KM subprocess that involves the conversion of explicit knowledge into

tacit knowledge. The explicit knowledge may be embodied in action and practice, so that
the individual acquiring the knowledge can re-experience what others have gone through.

In the above statement, it is suggested that when a host of KM IT solutions is employed by

an organization, it will surely induce the organization’s employees to internalize
knowledge. This statement is not entirely true. While it is true that the above technologies
will work as a catalyst towards the ultimate aim, it is not likely to induce internalization, for
a variety of reasons.

First, internalization is a form of self-learning, and not all employees are self-motivated
learners. Even with the best of technology at hand, if the employee is not motivated
enough to gather more knowledge, it is of little use. Second, in certain industries, not all
employees have the skills needed to make use of the KM technology solutions. For
example, it is questionable whether an average construction worker would know how to
use an expert system to improve upon his knowledge. Finally, the organization may have
the best of systems, but if the knowledge is not easily accessible by its employees, it will
probably not be used.

13. Many small to midsize firms were only investing in ERP system packages -- no KM
system at all! Comment on what you think may be particularly important parts of the
decision process when an organization expands its IT infrastructure to a KM
system.

KM is greatly facilitated by IT infrastructure. Usually organizations tend to use their IT

infrastructure to provide for the organization’s information system and management needs.
This is the founding framework of an IT infrastructure for KM.

KM infrastructure comprises the entire spectrum of an organization’s information systems,

including transaction processing systems and management information systems. It
consists of databases and data warehouses, as well as enterprise resource planning
systems. IT infrastructure should have the following characteristics:

Reach pertains to access and connection, and the efficiency of such access. Within the
context of an organization’s network, the reach reflects the number and geographical
locations of the organization that can be efficiently accessed via the network. Reach
should include hardware as well as software integration to ensure compatibility and
exchanges between systems.
Depth focuses on the detail and amount of information that can be effectively
communicated over a medium. In terms of an organization, this refers to their
communications bandwidth. Communication of deep and detailed information requires
high bandwidth. The availability of deep and detailed information about customers enables
customization by the organization.
Richness of a medium is based on its ability to provide multiple cues simultaneously,
quick feedback, personalized messages, and use natural language to convey subtleties.
Information technology has traditionally been viewed as a lean communication medium.
However, given the progress in information technology, we are witnessing a significant
increase in its ability to support rich communication. Developments in multimedia and
presentation abilities of modern information systems have led to increased richness.
Aggregation of large volumes of information drawn from multiple sources and their quick
process and storage is the final aspect of IT in the facilitation of KM. Data mining and data
Instructor's Manual Principles of Knowledge Management 3-17

warehousing together enable the synthesis of diverse information from multiple sources,
potentially to produce new insights for the organization.
With the implementation of an IT system with the above characteristics, one can clearly
see the advantages gained over ERP systems. However, it should be noted that ERP
systems could also indirectly benefit knowledge management, as they help improve depth
and aggregation aspects of IT infrastructure.