1. Knowledge based assets for competitive
success
KNOWLEDGE CREATION & CAPTURE
Session 2
Dr. Daniel Chandran
Faculty of Information Technology
University of Technology, Sydney
August 2009

2. Objectives
• Knowledge Creation
– Characteristics
– Dimensions
– Models
• Knowledge Creation Process
• Knowledge Architecture
• Knowledge Capture
• Knowledge Audit
• Technologies for knowledge management systems
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3. 1. Why have Japanese companies
become successful?
2. How do Japanese companies bring
about continuous innovation?
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4. “Knowledge” as a competitive force
Knowledge Creation
Continuous innovation
Competitive Advantage
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5. Why Organizations Launch KM Programs
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6. Knowledge Creation
• KM is not a technology; it is an activity enabled by
technology and produced by people
– how people share knowledge that will add value to the growth
of business
– Today’s knowledge may not solve tomorrow’s knowledge
• Alternative way of creating knowledge is via teamwork
• A team compares job experience to job outcome—
translates experience into knowledge
• Such newly acquired knowledge is carried to the next
job
• Maturation over time with a specific job turns
experience into expertise
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7. Knowledge Creation & Knowledge Transfer
Via Teams
Initial
knowledg
e
Outcome
is realized
Series of specific
Tasks carried out in
Team performs Outcome
A specific order a job compared
to action
New
knowledge
reusable by
same team on New
next job experience/
Knowledge
knowledge
captured and
gained
codified in a
form usable
by others
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8. Impediments to knowledge sharing
Personality
Compensation Organizational
Recognition culture
Ability utilization
Creativity Vocational
Good work environment reinforcers Knowledge
Autonomy sharing
Job security
Moral values
Attitude
Advancement
Variety Company
Achievement strategies and
Independence policies
Social status Work Norms
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9. Characteristics of Knowledge Creation
• Express the inexpressible
• Heavy reliance on figurative language and
symbolism
• Use of metaphor or analogy in product
development
• To disseminate knowledge, an individual’s personal
knowledge has to be shared with others
• New knowledge is born in the midst of ambiguity and
redundancy
• SIS
• Unlearn Old ideas.
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10. Types of Knowledge
Tacit Knowledge Explicit Knowledge
(Subjective) (Objective)
Knowledge of experience (body) Knowledge of rationality (mind) – tends to
– tends to be tacit, physical and be explicit, meta physical and objective
subjective
Simultaneous Knowledge (here Sequential Knowledge (there and then) –
and now) – specific, practical about past events or objects
context
Analog Knowledge Digital Knowledge
(practice) – sharing between (theory) – sequentially created by ‘digital’
individuals through activity
communication
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11. Nonaka’s Model of Knowledge Creation
TACIT TO TACIT TACIT TO EXPLICIT
Experience (SOCIALIZATION) (EXTERNALIZATION) Articulation
among people among people
in face-to-face through
E.G. TEAM MEETINGS AND E.G., DIALOG WITHIN TEAM dialog
meetings
DISCUSSIONS ANSWER QUESTIONS
INFORMAL MEETINGS TO
SOLVE DIFFICULT PROBLEMS
EXPLICIT TO TACIT EXPLICIT TO EXPLICIT
Taking explicit (INTERNALIZATION) (COMBINATION) Best
knowledge and supported by
deducing new E.G., LEARN FROM A REPORT E.G., E-MAIL A REPORT technology
ideas “RE-EXPERIENCE” WHAT THE
OTHERS EXPERIENCED
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12. Knowledge Spiral
Yield Mental
Models and Tech Yield
skills concepts
Dialogue
Socialisation Externalisation
Sympathised Conceptual
knowledge knowledge
Field Linking
Building Explicit
Knowledge
Operational Systemic
knowledge knowledge
About Project
Management,
Production
Internalisation Combination Yield Prototypes
Process &
Policy Implemen-
tation
Learning by Doing
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13. NONAKA’s Spiral Process as grounded theory
Dialoging - sharing of mental models, articulation of
requires easy ways to exchange experiences, concepts, development of common terms. Usually
develop trust, share values consciously constructed.
Externalization
Socialization Co
u n n ve
d inf stru rtin
g an ex orm ctur g
e
inin g on ledg pli at ed
cit ion
pla ratin now str in
Ex bo k uc t o
la ting
e is tur
ex es
Ev
a
cre luatin to red
ate
d e g new n g s into
xpl ini ata
icit ly b d
om icit s
dat C pl
a rm
ex w fo
ne
Internalization Combination
Exercising - communicate artifacts and Systemising - visualizing interactions,
embody in working context. Reflect on
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constructing artifacts, combine explicit 13
outcomes. knowledge.

14. Knowledge Creation Process (KCP)
ENABLING CONDITIONS
Intention
TACIT KNOWLEDGE EXPLICIT KNOWLEDGE
IN ORGANISATION Autonomy IN ORGANISATION
Redundancy etc
SOCIALISATION EXTERNALISATION COMBINATION
SHARING
BUILDING AN CROSS LEVELING
TACIT CREATING JUSTIFYING
ARCHETYPE KNOWLEDGE
KNOWLEDGE CONCEPTS CONCEPTS
INTERNALISATION
Market
EXPLICIT
TACIT INTERNALISATION KNOWLEDGE
KNOWLEDGE BY USERS AS
FROM USERS
PRODUCTS/SERVICES
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15. Phase I-Sharing Tacit Knowledge
• Start the focus on Tacit Knowledge
• Individuals are the main source of Tacit Knowledge
• Build mutual trust
• Create a “field” where individuals can work
– Self organising team facilitates organisational
knowledge creation
– Management sets challenging goals
– Management endows high degree of autonomy
– Autonomous team sets its own task boundaries
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16. II - Creating Concepts
• Interaction between TK and EK
• The team articulates it through further dialogue in the
form of collective reflection
• The tacit mental model is verbalised into words and
phrases
• Crystallised into explicit concepts
• This phase employs figurative language such as
metaphors and analogies
• Corresponds to externalisation
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17. III- Justifying Concepts
• Justify new concepts created by individuals/team
– Determine the newly created concepts are truly
worthwhile for the organisation and society
• Criteria for justification
– Both qualitative and quantitative
– cost, profit margin, degree to which a product can
contribute to the firm’s growth
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18. IV – Building an archetype
• Justified concept is converted into tangible or concrete
– an archetype
• Can be a prototype for a new product
• Can be a model operating mechanism for a service
• Built by combining newly created EK with existing EK
• It is a complex phase – requires cooperation of various
departments within the organisation
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19. V- Cross-Leveling of Knowledge
• Organisational knowledge creation is a never-ending
process
• New concept created, justified and modeled moves to
a new cycle of knowledge creation at a new ontological
level
• Intra-organizationally it can trigger a new cycle
expanding horizontally and vertically across the
organisation
• Inter-organizationally it can mobilize knowledge of
affiliated companies, customers, suppliers, competitors
through interaction
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20. Identifying Knowledge Content Centers
. Competition
. Job openings data
. Benefits . Sales volume
. Leader sales
information
Human
Resources
Sales
Customer
. Strategies Service
. Tools
.R&D Marketing
. Advertising . Complaint
rate
. Satisfaction
information
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21. Supporting Clients - Emphasis on Knowledge
A HELP DESK SITUATION
Ser
v
req ice
ues
t Find
Client solution
Contact
person
Organizational Experts
database
Knowledge about where
knowledge can be found
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22. Knowledge Capture
• Transfer of problem-solving expertise from some
knowledge source to a repository or a program
• A process by which the expert’s thoughts and
experiences are captured
• Includes capturing knowledge from other sources
such as books, technical manuscripts, etc.
• A knowledge developer collaborates with an expert to
convert expertise into a coded program
• Knowing how experts know what they know
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23. Strategic Directions for Knowledge
Management
Reward for contributing to
Codification knowledge repository
Personalization
People-to-people Reward for sharing
knowledge
ESSENTIAL FEATURES
Repository
Are the two opposite or Collaborative service
complimentary? Retrieval service
Interface
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24. Aligning KM and Business Strategy
Strategic Knowledge Gap Analysis
What your company Strategy-knowledge Link What your company
Must know Must do
Knowledge Gap Strategic Gap
What your company What your company
Knowledge-Strategy Link
knows Can do
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25. Ernst and Young Process
Discussion database and
document repository
E-mail
Reviews PowerPacks
submissions
Proposal
Knowledge templates
Knowledge
object objects Subject matter
development objects
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26. Accenture’s Knowledge Management Journey
1992-1994 1994-1996 1996-2000 21st Century
Enabling Knowledge Knowledge Performance
Infrastructure Sharing Outfitting Integration
“Build it, and “Knowledge is a “Knowledge is “Our best
they will come” by-product” actively managed” knowledge guides
our activities”
Result: Result: Result: Result:
Global Organizational Relevant quality People Guided
Communications Memory content, where and by Knowledge
when needed
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27. Accenture’s Four Pillars of Knowledge
Management
• Which factors are critical for my business that can be
addressed through knowledge management?
• Which knowledge adds the most value, and what
investments are required to realize this value?
• What are the highest priority initiatives?
• How do you create a culture
for sharing? Strategy
• What tools are currently in place?
• Which people need to be
empowered to contribute • What tools are needed to enable
the right knowledge? the environment?
People Technology • How do you fill the gap?
• Are priorities aligned with
measurements?
Process
• Are the right processes in place to:
• capture, refine, and create knowledge?
• disseminate, share, and apply knowledge to
deliver business value?
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28. The Accenture: Knowledge Xchange
Knowledge center
Capturing Knowledge
Research
knowledge in specialist
Help desk
14 Global libraries
Content management
Managed vocabulary
Search and browse
FRAMEWORK
Process integration
Client Knowledge
Socialization (mindset
center champion
change)
Utilization (easy access)
Automation (enterprise
wide access)
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29. Accenture
www.ac.com
Capturing Knowledge Subject
specialist
Practice
Storage and
E-mail specific Classification
delivery
database
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30. Key propositions
• KM initiatives have to be aligned with corporate goals
• Top management involvement and commitment are
important
• Systematic collaboration of all employees involved in
the transformation have to be supported
• Efficient and effective knowledge sharing and creation
have to be practiced continuously to overcome barriers
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31. Benefits of KMS
Process Outcomes Organisational outcomes
Communication Financial
• enhanced communication • increased sales
• faster communication • decreased cost
• more visible opinions of staff • higher profitability
• increased staff participation Marketing
Efficiency • Better service
• reduced problem-solving time • Customer focus
• shortening proposal times • targeted marketing
• faster results • proactive marketing
• faster delivery to market General
• greater overall efficiency • Personnel reduction
• improved project management
• consistent proposals to multi-
national clients
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32. IT & KM
• IT is crucial to the success of every KM System
• IT enables KM by providing the enterprise architecture
on which it is built

33. Portals
Portals are virtual workplaces that:
• Promote knowledge sharing among different categories
of end users
e.g. customers, partners and employees
• Provide access to stored structured data
e.g. data warehouses, database systems
• Organize unstructured data
e.g. paper documents, electronic documents etc

34. Benefits of Knowledge Portals
Productivity E-mail Traffic
Locating Documents Bandwidth Use
Collaboration Time in Meetings
Better Decisions Phone Calls
Quality of Data Response Times
Sharing Knowledge Redundant Efforts
Identifying Experts Operating Costs
Time to market
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35. Portal Features and Benefits
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36. Intelligent Agents
• Intelligent agents are tools that can be applied in numerous ways
in the context of EKPs.
• They are an intermediary between the enterprise and its customer
in virtual destinations
• Intelligent agents are still in their infancy.
• Agents are software entities that are able to execute a wide range
of functional tasks such as searching, comparing, learning,
negotiating and collaborating
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37. Portal Vendors
Vendor KM Portal Feature Summary Best Uses
Product
Lotus/IBM Lotus Raven 1.0 (in • Intelligent taxonomy • Self-creating and refining
beta) • QuickPlace taxonomies
collaboration tool • Personnel resources linked to data
• Assigns value to data sources
based on how often it is • Advanced collaboration
used • Easy portal repurposing
• Portal replication • Rapid application development with
• Facilitates content associated KM packages
management
Open Text MyLivelink Portal 1.0 • Integrated work flow • Integrated KM
with Livelink 8.5.1 KM • Quick integration of • Document management and work
software features flow
• Quick portal • Custom collaboration spaces
deployment (personal, project, or enterprise)
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38. Vendor KM Portal Feature Summary Best Uses
Plumtree Plumtree • Automatic population • Easy and extensive content
Corporate • E-mail, voice, and wireless and application integration
Portal 4.0 notification • Scalability
• Integration with LDAP directories • Advanced security
• E-room tools • Trainable taxonomies
• Various data access
• Customization and
extensibility
Woolamai WebMeta • Quick integration • Usability
Engine 1.0 • Flexible portal interface • Tracking site statistics
• Knowledge taxonomy adapts to • Content streaming to
data views wireless devices
• Data-mining functionality
• Web site statistics
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39. Other Supporting Technologies
• Artificial Intelligence
– Assist in identifying expertise
– Elicit knowledge automatically and semi-automatically
– Provide interfacing through natural language processors
– Enable intelligent searches through intelligent agents.
• Intelligent agents are software systems that learn how users work and
provide assistance in their daily tasks.
• Knowledge Discovery in Databases (KDD) is a process used to search
for and extract useful information from volumes of documents and data.
It includes tasks such as:
– knowledge extraction
– data archaeology
– data exploration
– data pattern processing
– data dredging
– information harvesting
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40. Other Supporting Technologies
• Data mining the process of searching for previously unknown information
or relationships in large databases, is ideal for extracting knowledge from
databases, documents, e-mail, etc.
• Model warehouses & model marts extend the role of data mining and
knowledge discovery by acting as repositories of knowledge created from
prior knowledge-discovery operations
• Extensible Markup Language (XML) enables standardized
representations of data structures, so that data can be processed
appropriately by heterogeneous systems without case-by-case programming.
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