Knowledge Management - Essay Example

Managing Knowledge for competitive advantage 1. Critically evaluate the Pedler’s model of organizational learning According to the Pedler’s definition, the model of organizational learning is a vision of what might be possible; “a learning company facilitates the learning not only of selected but of all members and thus continuously transforms itself and its contex”t (Smith, n.p. cited Pedler et. al. 1991). Pedler, Burgoyne and Boydell have provided eleven different characteristics of a learning organization, including: learning approach strategy, participating policy making, enabling structure, informating, formative accounting and control, internal exchange, reward flexibility, boundary workers as environmental scanners, and inter-company learning, learning climate, and self-development opportunities for all (Moraga 3). Even though this model has an obvious practical approach, it combines altogether principles, systems processes, values and attitudes (Moraga 3). Thus, the Pedler’s model of organizational learning can confuse those managers who will try to apply this model in their companies (Moraga 3). Another critical issue of the Pedler’s model was his failure to propose a practical framework to put the changes of the structures on accounting, control, and information systems into practice (Moraga 6). 2. Discuss the relationship between knowledge management, strategy and performance. How is the KM strategy reflected at the various levels of strategy? Use examples to illustrate According to Tiwana, knowledge management plays a critical role in both operational and strategic planning, because knowledge is a driver of organizational strategy and strategy is a driver of knowledge management (cited by Alstete & Halpern n.p.). Consequently, even the well-developed knowledge management systems will not be successful until there will exist a clear link with the business strategy (Alstene & Halpern, n.p.). Also, there exists a tight relationship between KM and organizational performance, including employee performance, business performance, market performance and intellectual capital (Vidović 6). Thus, it can be concluded that KM strategy can be reflected at the various levels of strategy, for instance: improved communication and employee skills, enhanced collaboration and better decision making, etc. (employee performance); increased profits, reduced costs, increased share price (organizational performance); faster response to key business issues, improved business processes, creation of new business opportunity (business performance); increased market size and share, better customer handling, enhanced product or service quality (market performance); and enhanced intellectual property, increased adaptation capability and increased innovation (intellectual capital (Vidović 6). 3. What is intellectual capital? Why is there a need to measure and manage intellectual capital? What are some of the difficulties associated with this process? According to Stewart (1997) intellectual capital refers to any intellectual material, which can be put to use to create wealth, including information, knowledge, intellectual property and even experience (Bontis, 42). Measuring and managing intellectual capital is a critical part of any modern organization, which strives to gain its competitive advantage. The companies have to measure intellectual capital with a purpose to evaluate its effectiveness in creating value from intangibles (Craciun & Scriosteanu 1241). Thus, measurement of the intellectual capital enables managers to influence both organizational behavior and action (Craciun & Scriosteanu 1241). However, there may arise some difficulties associated with the process of measuring intellectual capital, because it is almost always intangible and difficult to measure, it is difficult to reduce to a homogenous value form, ownership is ambiguous and some other reasons (Craciun & Scriosteanu 1243). 4. Differentiate between the three KM performance measurement models (Skandia Navigator, Intangible Assets Monitor and Balanced Scorecard). Critically evaluate one of them. Give some examples of measures that would be used in this model. There are several intellectual capital measurement models, including Skandia Navigator, Intangible Assets Monitor and Balanced Scorecard. Skandia Navigator is a dynamic and holistic model comprised of five areas of focus: customer, financial, process, renewal and development and human capital (Bontis 44). Under this model, companies are trying to represent non- and financial reporting, to uncover and visualize its intellectual capital, to tie its strategic vision to the core competencies and to reflect the market value better (Bontis 44). However, this KM performance measurement model can be criticized because of its weaknesses: it offers only a snapshot in time and fails to represent the dynamic flows of an organization (Bontis 47). Sample measures of Scandia IC include: Financial focus: revenues/employee ($); revenues from new customer/total revenue ($); profits resulting from new business operation ($) (Bontis 46); Customer focus: days spent visiting customers (#); ratio of sales contacts to sales closed (%) (Bontis 46); Process focus: PCs/employee (#); processing time (#); IT capacity – CPU (#) (Bontis 46); Renewal and Development focus: satisfied employee index (#), average age of patents (#) (Bontis 46); Human focus: leadership index (%); annual turnover of staff (%) (Bontis 46). Intangible Asset Monitor model is based on the conceptual framework based on three categories of intangible assets: external structure, internal structure and individual competence (Bontis 51). So as the purpose of measuring these assets is to provide management control, the model requires identification of those who will are interested in results: external presentation for customers, stakeholders, creditors and internal measurement for management (Bontis 52). Intangible Asset Monitor model determines three indicators: growth and renewal, efficiency and stability (Bontis 52). The Balanced Scorecard model balances the financial perspective with such non-financial perspectives: learning and growth development, internal business process and customer perspective (Carlucci et al. 583). 5. How would the implementation of a KM performance measurement model affect the organization? Discuss the impact on the strategic, operational and individual levels. Use examples to illustrate. Implementation of a KM performance measurement model affects the three fundamental levels of an organization: the strategic level, the operational level and individual level. The major shift at the strategic level of KM management is suggested to be the process of rethinking value to monetary and intangible values (Allee 2). At the operational level of KM an organization is enabled to codify and deliver learning and Just-In-Time knowledge to individual workers as a result of new technologies (Allee 2). The individual level of KM is characterized by the process of creating, sharing and applying gained knowledge, cultivation of Communities of Practice (Allee 2). 6. Critically evaluate Nonaka’s model of knowledge creation Nonaka has identified activities for the Knowledge management companies including: “consistently create new knowledge, disseminate it widely throughout the organization, and quickly embody it in new technologies and products” (Moteleb et al. 2). Considering Nonaka’s definition, it follows that the activities of Knowledge-creating companies are based on three categories: creation, dissemination and embodiment (Moteleb et al. 3). However, Nonaka’s model of knowledge creation reveals additional concepts such as testing, using, communicating, sharing, converting, and translating, standardizing and transferring knowledge including the concepts o making personal knowledge available to others, inventing new knowledge and learning (Moteleb et al. 3). In his model, Nonaka identifies that creating knowledge is based not only the generation of new knowledge but also sharing existing knowledge with others (Moteleb et al. 3). 7. How can you promote the development of social capital in your company, illustrate with example. I can promote the development of social capital in the company by encouraging social interaction and providing the dense networks. Considering that social capital can be developed when individuals interact with others, there should be promoted social interactions that will enable personnel to gain access to other people’s resources and information (Lee et al. 60). Also it will be necessary to provide dense networks, so that individuals were linked by more relationships (Lee et al 60). 8. Explain the concept of Hybrid approach to knowledge sharing using example of Teltech. Teltech, the company specializing in KM, has successfully utilized the hybrid method in Just-In-Time KM (Conteh 2). The company represents a hybrid environment of technology-based services and people (Conteh 2). Under this approach, knowledge received from customer behavior and information sources is mapped, structured and then differentiated by categories (Conteh 2). For implementing KM, Teltech applies a method of storing the names and addresses of experts in databases and that referring client to them (Conteh 2). This approach enabled company to reduce the waiting time for callers, spending in salaries and training needs (Conteh 2). 9. Explain the concept off communities of practice: discuss the advantage and the challenges for the managers? Communities of practice are considered to be a natural part of organizational life, which needs to be cultivated systematically by the organization (Wenger et al. 12). CoPs are able to deal with various knowledge-related issues, for example: they can connect isolated professionals and local pockets of expertise, diagnose and address recurring business problems caused by cross team boundaries, link and coordinate unconnected activities and initiatives addressing a similar knowledge domain, etc. (Wenger et al. 14). Despite the all advantages of CoPs, managers have to set the right expectations; as well they might dismiss communities as soft structures while tying communities’ activities to tangible business outcomes (Wenger et al. 14). 10. Compare the practical usefulness of Communities of Practice and Networking. Illustrate through the example of Siemens. Cultivation of Communities of Practice (CoPs) in strategic areas is considered to be one of the most practical ways to manage knowledge as an asset comparing with the practical usefulness of networking (Wenger et al. 6). While networking enables people to communicate, share information and build relationships, CoPs is not just a set of relationships, it is about something (Wenger et al 43). An example of Siemens illustrates the usefulness of cultivating of CoPs because it is at the centre of the Siemens approach to knowledge management (Verlag & Wiley, n.p.). After the company has organized the first recognizable communities in 1996, two years later Siemens became fully embedded in its operations (Verlag & Wiley, n.p.). For less than half a year, the function of KM has been approved, implemented and running (Verlag & Wiley, n.p.).This knowledge management CoP had an astonishing impact on the company and development in the scales of a European hierarchical company (Verlag & Wiley, n.p.). 11. How can you predict the necessary competencies of the future? Compare competency management and knowledge management. Competency and knowledge management both stress the importance of individuals and the organization. Competency management relates to the work standards and/or to individual’s performance expectations while Knowledge management is comprised of data, knowledge and information (Alainati, 7). In order to enable business operations in a pro-active way, Competency Management ensures to have the right competencies in the right time at the right place (Falter 2). 12. What is the competency portfolio? Illustrate its usefulness through examples. Competency portfolio is a tool of Knowledge management that helps to identify and evaluate the role of each competency in the organization. As well it helps to identify which competency is missing, what is the current/needed level of performance and whether there is a necessity for action. Its usefulness can be illustrated by an example of changing competency portfolio of a car dealership during 2000-2005 (Falter 4). 13. What is metadata and what is the use of it? Illustrate through examples. Cathro (1997, n.p.) has proposed his definition of metadata by saying that “An element of metadata describes an information resource, or helps provide access to an information resource". Metadata being the structure information is used for describing, explaining, locating, or making it easier to retrieve, use and manage an information resource (National Information Standards Organization 1). It ensures that resources will be kept in safety and will be accessible in future (National Information Standards Organization 1). Considering that metadata can be an information resource in its own right, here are some examples of metadata (Cathro, n.p.): A review of film - on one hand it is a work of certain author/produces who owns the intellectual property rights for this film, on the other hand it is just a piece of metadata related to the film (Cathro, n.p.). 14. How can the long term investment in Knowledge Management be justified in an environment predominantly driven by short term economic goals? An implementation of Knowledge Management System is considered to be a major long-term investment because this highly expensive and complex system requires a significant shift in employee’s roles, change of organizational processes and in very often even a change of the corporate culture of an organization (Maier 589). However, most companies prefer to apply KM-related Information Capital Technology systems and concepts in the hope to receive a quick-return-on-investment (Maier 589). Thus, the long term investment in KM can be justified in an environment predominantly driven by short term economic goals when this investment generates benefits and profit. Consequently, the more knowledge workers participate, the more useful the KM solution will be and the more these workers will profit from the solution (Maier 589). References: Alainati S. (2009). Competency in Context of Knowledge Management. European and Mediterranean Conference on Information Systems. Retrieved from http://www.iseing.org/emcis/EMCIS2009/Proceedings/Late%20Breaking%20Papers/LBP%205/LBP%205.pdf Allee V. (2001). The New Business and Knowledge Management Fundamentals. Adapted from “New Business Fundamentals,” Perspectives newsletter, ASTD Mt. Diablo Chapter, August 2001.p.2. Retrieved from http://www.vernaallee.com/value_networks/The_New_B_andKM_Fundamentals.pdf Alstete J, Halpern D. (2008). Aligning Knowledge Management Drivers with Business Strategy Implications. Journal of Knowledge Management Practice, Vol. 9, No. 3, September 2008. Retrieved from http://www.tlainc.com/articl160.htm Bontis, N. (2001). Assessing knowledge assets: a review of the models used to measure intellectual capital. International Journal of Management Reviews, vol. 3, issue 1, 2001, pp. 44-54. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.67.7565&rep=rep1&type=pdf Carlucci D., Marr B., Schiuma G., (2004). The knowledge value chain: how intellectual capital impacts on business performance. Int. J. Technology Management, Vol. 27, Nos. 6/7, pp.583. Retrieved from http://www.som.cranfield.ac.uk/som/dinamic-content/research/cbp/2004,%20Knowledge%20Value%20Chain%20(IJTM%2027,%206-7,%20Carlucci,%20Marr,%20Schiuma).pdf Cathro W. (1997). Metadata: an overview. Staff Papers. National Library of Australia. Retrieved from http://www.nla.gov.au/nla/staffpaper/cathro3.html#container Conteh N. (n.d.). Properly balancing a Hybrid: Integrating Human and Technical Components in the Design of Just-In-Time Knowledge Management Systems. Byrd School of Business- Shenadoah University. Retrieved from http://www.iiis.org/CDs2010/CD2010IMC/ICEME_2010/PapersPdf/FB796WL.pdf Craciun L. & Scriosteanu A.(n.d.). How to measure intellectual capital? Pp. 1241-1243. Retrieved from http://www.pmmpstudio.com/~feaaro/images/0036v3-014.pdf Falter T. (2010). Competency Management as an example for Knowledge Management. Slides 2-4 Lee S., Wong P., Chong C. (2005). Human and social capital explanations for R&D outcomes. IEEE Transactions on engineering management. Vol. 52, No. 1, Feburuary 2005. P.60. Retrieved from http://academia.edu.documents.s3.amazonaws.com/288611/IEEE_trans_eng_mgt_05.pdf Maier R. (2007). Knowledge Management Systems: Information and Communication Technologies for Knowledge Management. 3rd edition. P. 589. Retrieved from http://books.google.com.ua/books?id=r5pAHIN1ChwC&printsec=frontcover&hl=ru#v=onepage&q&f=false Moraga E. (2006). Cultural Learning Organizations: A model. Madrid. Pp.3-6. Retrieved from http://www.culturallearningorganizations.net/index_files/The%20Learning%20Organization.pdf Moteleb A., Woodman M., Galal-Edeen G., Bakry W. Ontology of knowledge management systems elements. Pp. 2-4. Retrieved from http://www.iseing.org/emcis/EMCIS2005/pdfs/34.pdf National Information Standards Organization (2004). Understanding Metadata. NISO Press. Retrieved from http://www.niso.org/publications/press/UnderstandingMetadata.pdf Smith, M. K. (2001) 'The learning organization', the encyclopedia of informal education, cited Pedler et. al. 1991). Retrieved from http://www.infed.org/biblio/learning-organization.htm. Verlag MCD & Wiley J. (2001). Book review: Knowledge Management case book. Inside Knowledge. 1 Jan 2001 in Volume 4 Issue 4. Retrieved from http://www.ikmagazine.com/xq/asp/txtSearch.competitive+intelligence/exactphrase.1/sid.0/articleid.DEF2A80C-7CAA-466F-959E-B5C82A5037C6/qx/display.htm Vidović M. (2010). The link between the quality of knowledge management and financial performance – The case of Croatia. F E B – Working Paper Series. Paper No. 10-03. Pp. 6-7. Retrieved from http://web.efzg.hr/RePEc/pdf/Clanak%2010-03.pdf Wenger, E. (2002) Cultivating communities of practice: a guide to managing knowledge, Boston: Harvard Business School Press. Pp. 12-43. Retrieved from http://books.google.com.ua/books?id=m1xZuNq9RygC&printsec=frontcover&hl=ru#v=onepage&q&f=false Read More