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Knowledge Management:: A Value-Chain Approach

This document provides an overview of knowledge management concepts including knowledge assets, value, and management. It defines knowledge management as developing organizational capacity to capture, preserve, share, and integrate data, information, and knowledge to support goals, learning, and adaptation. Value is extracted when knowledge is used, and knowledge management adds value by linking knowledge creation and use.

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Nasruddin Asnah
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142 views35 pages

Knowledge Management:: A Value-Chain Approach

This document provides an overview of knowledge management concepts including knowledge assets, value, and management. It defines knowledge management as developing organizational capacity to capture, preserve, share, and integrate data, information, and knowledge to support goals, learning, and adaptation. Value is extracted when knowledge is used, and knowledge management adds value by linking knowledge creation and use.

Uploaded by

Nasruddin Asnah
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Knowledge Management:

A Value-Chain Approach

Albert Simard
presented to
Interdepartmental Knowledge Management Forum
October 27, 2004
An opening thought…

An era in which the key economic resource


is knowledge is startlingly different from
an era in which the key resources were
capital, raw materials, land, and labor.
James Martin
CYBERCORP (1996)
OUTLINE

• Knowledge Assets
• Knowledge Value
• Knowledge Management

Knowledge is different
from industrial resources
Knowledge Attributes
• Total knowledge is increasing; half-life is decreasing
• Knowledge can be in more than one place at one time
• Knowledge may be permanent or time sensitive
• Knowledge can be used without being consumed
• Selling does not reduce supply nor ability to sell again
• Buyers only purchase knowledge once
• Once disseminated, knowledge cannot be recalled

Thomas Stewart (1997)


Knowledge Costs
• Production cost is independent of the number of users
• Reproduction is controlled by users, not producers
• Production cost greatly exceeds reproduction cost
• Costs accumulate at the front-end of production
• The more intangible, the greater the cost discrepancy
• Inputs and outputs for creative work are uncorrelated

Thomas Stewart (1997)


Explicit Knowledge
• Knowledge that has been formally expressed and
transferred in a tangible form; intellectual property.
– databases, statistics, collections
– books, publications, reports, documents, correspondence
– photographs, diagrams, illustrations
– computer code, expert systems, decision-support systems
– presentations, speeches, lectures
– recorded experiences, stories
– materials for education, teaching, and training
– laws, regulations, procedures, rules, policies
– embedded into products
Canadian Forest Service
Explicit Knowledge Assets
175
# of As s et s

150
125
100 Percent
75 Number
50
25
0

531 assets; 211 responses


Tacit Knowledge
• Intangible personal knowledge
gained through experience and self-
learning. It is influenced by beliefs,
perspectives, and values.
– awareness
– skills
– mental models
– expertise
– judgement
– wisdom
– corporate memory
The Thinker - Rodin
Intellectual Capital
“Intellectual capital is intellectual material
… that can be put to use to create wealth.”
Thomas Stewart
Intellectual Capital (1997)

Intellectual capital includes both tangible,


material (explicit knowledge) and intangible
knowledge in the minds of individuals (tacit
knowledge)
OUTLINE

• Knowledge Assets
• Knowledge value
• Knowledge Management

If you can’t measure


it, you can’t manage it.
Knowledge Value
• Value is very difficult to measure
• Value is extracted when knowledge is used
• Sharing increases the value of knowledge
• Value increases with abundance
• Buyer cannot judge value in advance
• Value can be added by filtering knowledge
• Value is not well related to acquisition cost

Thomas Stewart (1997)


Knowledge Value Chains
Flow of knowledge through a sequence of
processes in which it’s value is increased
at each stage.
– Creation
– Use
– Management
• Preservation
• Sharing
• Integration
Knowledge Creation Value Chain
Data Information Knowledge Decision-
Acquisition
Management Management Management making

Inputs Data Information Knowledge Wisdom

sensing facts meaning understanding judgement

Knowledge creation is a
precursor to everything else
Creating Knowledge
is not Enough
• Bell Labs: lasers
• Xerox: graphical user interface, object-
oriented programming, laser printer, Ethernet
• IBM, DEC: mainframe/mini computers
• CERN: World-Wide Web
• Encyclopaedia Britannica: synthesizing
knowledge
Knowledge Use Value Chain

Author Reporter Analyst Marketer Advocate

Individual Compiled Recommend Targeted Opinion

publish represent influence promote agenda

The value of knowledge is realized


only when it is used for something
Knowledge for Canadians
Plant Hardiness
Zones

(climate + elevation)
Knowledge for Practitioners
Fire Monitoring,
Mapping, and Modeling
System
OUTLINE

• Knowledge Value
• Knowledge Assets
• Knowledge Management

KM adds value by
linking creation and use
Knowledge Management Value Chain
Network Senior
Custodian Manager Manager Executive

Preservation Sharing Integration Management

availability interface interoperability organization

Higher-level KM goals generally have


decreasing ranges of applicability
Knowledge Management:
Linking Past, Present, & Future

Past Present Future


Capture Share Learn
Archive Integrate Adapt

Infrastructure
Content
Processes
People
Knowledge Management:
A Definition

Developing organizational capacity and


processes to capture, preserve, share, and
integrate data, information, and
knowledge to support organizational
goals, learning, and adaptation.
Knowledge Preservation Value Chain

Codifier Librarian Systems Provider Manager

Capture Organize Store Retrieve Maintain

inventory map capacity access continuity

Preservation is the
foundation of knowledge
management
Briefing Note Database
Organizing Knowledge Assets
• Epistemology
• Cognitive approaches
• Automated methods
• Classification systems
• Thesauri
• Interdisciplinary issues
• Linguistic issues
• Metadata
• Knowledge map
Library of Alexandria – artist’s concept
Storing Knowledge Assets
• Information Technology infrastructure
• Systems for archiving and managing content
• Interface for entry and administration
• Data warehouse, distributed databases
• Information repository, records management
• Knowledge repository, knowledge map
• Digital libraries, traditional libraries
Retrieving Knowledge Assets
• Access to content
• Browser interface
• Search engine
• Extraction tools
• Manipulation tools
• Assembly tools
• Retrieval system
Relativity - Escher
Knowledge Sharing Value Chain
conversation speaking networking
hoarding
letters publishing synergy

Individual Colleagues Groups Community

personal dialogue synergy evolution

The value of a network is


proportional to the square of
the number of users
Sharing Knowledge: Methods
• Conversations, discussions, dialogue
• Advice, briefings, recommendations
• Mentoring, teaching, examples
• Questions & answers, knowledge extraction
• Presentations, lectures, speeches, stories
• Documents, books, manuals, instructions
• Education, training, demonstration
• Meetings, workshops, conferences, forums
• Networks, communities of practice
Sharing Knowledge: Technology
• Talking (real, virtual)
• E-mail (individuals, list servers, distribution lists)
• Chat rooms, forums, discussion groups
• Communities of interest, informal networks
• Groupware (teams, working groups)
• Conferences, workshops, knowledge fairs
• Data bases, information bases, knowledge bases
• Digital libraries (repositories, search, retrieval)
• Information & knowledge markets
Knowledge Integration Value Chain
Creator Coordinato Analyst Synthesizer
r

Isolated Organized Integrated Whole

element structure relationships system

The whole is more than


the sum of it’s parts
Soils of Canada
Land Cover

Natural Resources Canada Ressources naturelles Canada


Canadian Forest Service Service canadien des forêts
Climate Change
Distribution of Black Spruce
A) present climate

0 - 10%
11 - 20%
21 - 30%
31 - 40%
41 - 50%
51 - 60%

61 - 70%

71 - 80%
81 - 90%
91 - 100%

X location of black spruce sites

B) climate at 1.5 X CO2


A final thought….
“Products are physical manifestations of
knowledge, and their worth largely, if not
entirely, depends on the value of the
knowledge they embody.”

Dorothy Leonard
Wellsprings of Knowledge (1995)

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