Preliminary Success Factors for Knowledge Management in Microsoft Company - Case Study Example

Knowledge Management Plan Student’s Name Instructor’s Name Subject Date Table of Contents Executive Summary………………………………………………………………4 Introduction………………………………………………………………………4-5 Background of Knowledge Management………………………………………...5-6 The Importance of Knowledge Management…………………………………….6-7 Preliminary Success Factors for Knowledge Management………………………7-8 Ways in Which Knowledge Grows………………………………………8 Business Data…………………………………………………….8 Information……………………………………………………….9 Knowledge……………………………………………………….9 Knowledge Management Critical Success Factors (KM CFS) …………10 Management, Leadership and Support…………………………..10 Culture …………………………………………………………..10 Information Technology…………………………………………10 Strategy and purpose…………………………………………….11-12 Measurement…………………………………………………….12 Organizational Infrastructure……………………………………12 Processes and Activities……………………………....................12 Human Resource Management………………………………….13 Implementation of KM………………………………………………………….13 Process…………………………………………………………..14 Technology……………………………………………………...14 People…………………………………………………………...14 Business Strategy……………………………………………….14 Organizational Dynamics……………………………………….14-15 Implementation Model, phases, for KM……………………..…………………15 Knowledge Management Platform……………………………………………..16 Recommendations and Considerations.........................................................…...16-17 Conclusion…………………………………………………………………….18 References…………………………………………………………………….19 Executive Summary Nowadays, Knowledge Management (KM) is being considered as an intellectual capital that should be managed and designed intensively. In this paper, the importance of Knowledge Management in the context of an organization is considered with specific interest being on a multinational company, Microsoft Inc. consequently, the Knowledge Management critical success factors for instance culture, management, IT, and business strategy among others have been explained with respect to how they influence KM implementation. Furthermore, the necessary factors key to implementing Knowledge Management such as organization, process and technology are discussed. Finally, a conceptual model encompassing recommendations on how Microsoft can effectively implement KM is depicted coupled with the KM platform upon which to do so. Introduction Knowledge Management is a management discipline which argues that intellectual capital is and should be regarded as a managed intangible asset. The basic tools which are widely applied in Knowledge Management are for instance technology, process engineering and organizational dynamics. All these work synergistically in order to improve on the level with which a company’s information, data and knowledge are captured as well as to efficiently dissemination it into the people mandated to execute specific tasks. Thus such individuals or workforce are the most valuable asset within an organization. Besides, the main objective of Knowledge Management can be said to be delivering intellectual capacity of the company to the knowledge employees who are involved in making day –day decisions which on average determine the failure or success of the company, business or organization. In another perspective, Knowledge Management can be ruled out as not being about creation of a centralized database which consist of what is known by employees or which is encompassed in the system they utilize. In contrast, KM entails adopting diverse knowledge sources, ranging from websites, databases, and staff as well as cultivating the relevant knowledge in its areas of custody, whilst it captures its context and gives larger meaning via its integration with other information within the company. Besides, Knowledge Management is about converting knowledge employees into interchangeable components by putting them into any corporate knowledge base. The importance of Knowledge Management is to fuel what knowledge staff workers do best and is referred to a ‘thinking work’. Also it is about sharing technology with business processes and corporate culture and utilizing it as a means to manage and disseminate business information as well as expertise of the employees to the key driver of business growth – which is the knowledge worker. Background of knowledge management Knowledge Management can be regarded as an intangible asset which is a key resource for any business to manage. It can be compared to an organization’s brand, culture, and stakeholder relationship in providing sustainable sources of business advantage (Goel et al., (2010). The ability to create and leverage the value of this intangible asset, Knowledge Management, constitutes a vital competency for various companies for instance Microsoft, especially in provision of technical and professional services. Microsoft Company can be regarded as a knowledge- intensive company, and therefore processing and managing knowledge is central to its business success. Goel et al., (2010) refers to Knowledge Management as the capability ‘to recognize and manage the system of core competencies required for knowledge- intensive businesses’. Furthermore, they go on to argue that Knowledge Management calls for a well –defined framework relates investment in expertise or internal competencies to corporate performance. Such strategies would include making explicit the interactions and relationships among all business enablers in order for all individuals to execute their jobs effectively. It is possible to capture, codify and share knowledge for instance skills, creative ideas, and expertise. Subsequently, Ho (2009) refers to Knowledge Management as a conscious strategy that aids in disseminating the right time and content/quality and facilitating them to share and put the information into action in means that will an organization performance. In order for the Knowledge Management process to succeed, there must be a strong foundation of enablers such as strategy and leadership, technology, measurement, and culture among others. These enables have to be formulated and managed alongside each other to support Knowledge Management process. The Knowledge Management process entails a number of stages or sub-processes to create, identify, collect, organize, share, adapt, and use knowledge. The Importance of Knowledge Management Knowledge Management has become a nascent as well as a fast-growing practice seeking to optimize the value of a company by helping both the management and employees within a company to become innovative and adapt to technological changes. A number of forces pushing organizations to incorporate KM practices to manage their intellectual and experiential capabilities more analytically. First, a lot of companies are nowadays experiencing reduced returns to investments in re-engineering the production processes. The sophistication of various tools/strategies to measure and manage hard assets for instance Reengineering, Activity Based Costing, and TQM are plentiful and clearly understood. In a lot of instances such practices are crucial commodities and stat-of the art production is often a prerequisite rather than a differentiator. In this respect, most companies are nowadays managing knowledge as well as the innovation process effectively so as to gain competitive advantage. Secondly, over the past few decades, there has been significant transformation of the world’s economies from a near pure-production-based value system to a skill and intellectual –based value system (Tseng, 2008). Besides, most of the investors are nowadays, injecting capital on companies with the relevant management skills coupled with ability to adopt to dynamics in the business sector. Thirdly, the rise of ‘entrepreneurial economy’ is reckoning force driving the need for Knowledge Management. This is due to the fact that entrepreneurs are involved in redistributing the value to new business models hence furthermore accelerating the pace of change. Finally, technology and technological changes are calling for the importance of Knowledge Management. In concurrence to Goel et al., (2010), Sharp (2003) acknowledges ‘that the ability to capture information, knowledge, and data has far outstripped people’s ability to absorb and analyze this information in a focused way’. In companies and/or organizations where both the management and employees are sufficiently accessing information and skills relevant in spotting trends and managing opportunities, a potential for realizing unique competitive advantage looms to large extent. In this regard, Knowledge Management can facilitate individuals to prepare for an environment of consistently changing demographics, customer needs, economies, and industries by ensuring that individuals have the information and expertise they require so as to properly evaluate business opportunities and problems. Preliminary Success Factors for Knowledge Management Knowledge Management can be regarded as an explicit, systematic, renewal, and deliberate building and application of knowledge to optimize business’ k knowledge related returns and effectiveness from its knowledge resources/assets. Therefore productivity, competitiveness, and performance of an organization are greatly improved through a number of knowledge factors. Wei et al., (2006) refers to them as success factors whereas Migdadi (2009) argues that they are Knowledge Management critical success factors or enablers. The success factors include but not limited to the following; Leadership, Management and support, culture, IT, business strategy, organizational infrastructure, measurement, activities and processes, motivational aids, education and training, and Human Resource Management (HRM) (Migdadi, 2008). On the other hand, Wei et al., (2006) focuses much on five Knowledge Management success factors which include organizational structure, business strategy, K-team, K-audit and K-map. In this respect, the various success factors are discussed in the below section but it is imperative to have a closer look at fundamentals of Knowledge Management first. Ways in Which Knowledge Grows There are three fundamental backgrounds which are important for consideration in instances where Knowledge Management solutions are sought. Majority of the people via their own experiences, their colleagues’ expertise, as well as through analyzing business- related data and technologies. In this regard, new knowledge is created coupled with the shaping of new opportunities. The three common sources knowledge that facilitate effective Knowledge Management strategies include the following: Business Data: This comprises of set of discrete facts relating to world events. For instance, Microsoft Company is well, predisposed in capturing appreciable amounts of data in highly structured databases for instance MRP and ERP line- of- business systems. Besides, the company can subscribe to external data sources which provide competitive statistics, demographic information, as well as other relevant market information. In this respect, the key value building activity in terms of business data would be the ability to evaluate, synthesize, and transform that data into information and knowledge (Tseng, 2008) Information: This is the result of capturing and providing context to ideas and experiences. Explicit experiences or information would be and is generally stored din semi-programmed content for instance e-mail, documents, multimedia, and voicemail. The key value-creating activity that Microsoft Company should concentrate on in this respect is ‘managing the content in a manner that renders it accessible, reuse and learn from practices so that errors are not replicated and job is not duplicated (Ibid, 2008). Knowledge: This comprises of tactic experiences, insights, judgments, values and ideas of an individual. Knowledge is dynamic and a company like Microsoft can only access it via direct communication and collaboration with experts with the necessary technical expertise/ knowledge. This can be done through recruiting individuals with up—to-date technological knowledge in various fields. Besides, Knowledge Management systems have to provide cultural –based incentive to necessitate sharing of personal experiences which have in the past constituted a person’s value to the company. In this respect, a person can make a contribution to a company by creating new knowledge via collaborating with his/her colleagues as well as through synthesizing existing data and/ or information (Ibid 2008). The above can be referred to as knowledge assets. Reason being they represent the key elements that a company such as such a Microsoft must manage effectively so as to ensure an innovative, agile and dynamic organization. Failure by Microsoft to effectively manage the aforementioned assets will result in slow company expansion and/or growth. Besides, the company could lose a lot of information, employees will not learn some lessons, execution of various tasks/ jobs will be prolonged, some trends go unnoticed, and a lot of completed jobs /tasks will be recreated (Ibid, 2008). Knowledge Management Critical Success Factors (KM CFS) Figure 1. KM CFS Note: Ho, Chin-Tsang. (2009). The relationship between knowledge management enablers and performance. Industrial Management & Data Systems, 109(1), 98-117. Management, Leadership and Support The management or else the top brass of the company, Microsoft, are in the first place required to provide conditions for effective Knowledge Management. Reason being their commitment and support is critical for Knowledge Management initiatives. (Sharp, 2003). In this regard, the company’s management most actively and aggressively endorses and practice knowledge Management practices. Migdadi (2008) argues that it is the company’s management which sets example for other to borrow a leaf from them. Besides, they have a direct impact in establishing an organization’s culture as well as the way in which the company deals and approaches Knowledge Management. Consequently, leaders act as role models and they are as well supposed to offer and share knowledge freely with others within the company. In another perspective the management is supposed to steer the Knowledge Management change efforts, convey the importance of Knowledge Management to employees, exchange employees and create a culture that target at promoting knowledge creation and sharing (Jayasingam et al., 2010). Culture The organizational culture defines the social customs, norms, core beliefs, and values that govern the way in which individuals behave and act within an organization (Wong, 2005). Migdadi (2009) argues that organizational culture is the main influencing factor on Knowledge Management as well as on the efficiency with which knowledge is shared. According to Anantatmula, (2010), organizational culture elaborates on the worthiness of knowledge, explains the benefits that knowledge creates for a company, and influences the efforts that employees are willing to share and bring into the company. The fact that the main challenge lies on developing such organizational culture, it is imperative for the management to build a culture supportive of Knowledge Management. Migdadi (2009) notes that among fundamental aspects in creating an organizational culture are trust and collaboration. Information Technology Information Technology in the context of Knowledge Management is a key enabler and form the basic building block of IT of Knowledge Management (Migdadi., 2009). For a company like Microsoft, it is the grounds upon which the company is founded and this can facilitate ‘rapid search, access and retrieval of information, and can support collaboration and communication between organizational members’ (Migdadi, 2008, p. 844). Microsoft should take advantage of its market demand- led technological innovations to institute and implement knowledge Management initiatives. However, there is need to consider a few factors for instance simplicity of technology, suitability to user’s needs, ease of use, relevancy of the knowledge content, and the standardization of the knowledge ontology or structure. Strategy and purpose This should be clear well incorporated into the company’s enterprise business strategy. Besides, instituting such strategies, a shared and compelling vision for pursuing Knowledge Management should be developed as well as clear goals and purpose which should be understood by each person within the company. Plessis (2007) notes that strategy should address a number of issues in proper Knowledge Management implementation; Creating an understanding of the company’s knowledge resources, articulating the role that knowledge plays in value creation, be inclusive of various projects phased in over time as well as long-term-benefits and quick wins, and identify risks associated with Knowledge Management programs. Measurement This refers to the company’s Knowledge Management evaluation plot which identifies particular Knowledge Management critical success factors. Migdadi (2008) argues that it is necessary for a company to measure Knowledge Management so as to make sure its envisioned objectives are ominously being achieved. This comes in handy in aiding to track Knowledge Management progress as well as in determining accrued benefits. Furthermore, systematic Knowledge Management measurement facilitates in improving identification, mapping and monitoring of intangible assets, social networks, critical knowledge issues, and knowledge flow patterns in an organization (Plessis, 2007). Organizational Infrastructure This entails instituting organizational groups and set of rates for people to with relevant expertise to act as special resources for particular company’s projects. An appropriate organizational infrastructure is necessary in implementing Knowledge Management. Processes and Activities Migdadi (2009) identifies four major processes, creation, storage/ retrieval, transfer and application, which he argues are vital in implementing Knowledge Management. These are required to bring about change in policies, practices, behavior in order to develop news ones. Human Resource Management A multinational company such as Microsoft should efficiently recruit, develop, and retain employees of high integrity because they are the main channel through which organizational knowledge can be created and shared. Effective recruitment of employees with relevant knowledge fills up any knowledge gap within an organization. Implementation of Knowledge Management In each company, there is unique resource of knowledge assets and various problems upon which such assets may be applied. Hence, each Knowledge Management solution is definite to the company/ organization for which it is designed. In creating real Knowledge Management solution during implementation process, a number of key elements have to be considered and they include process, organizational dynamics, technology, and business strategy. Besides, the human capital can also be included and this is illustrated in the figure below. Figure 2. Implementation Factors Note: Hariharan, A. (2002). Knowledge management: A strategic tool. Journal of Knowledge Management Practice. 10(1), 19-31. Process: This ensures that Knowledge Management is incorporated into the overall company’s business policies and strategies. The processes encompasses knowledge contribution, Content management, retrieval, implementation,-projects founded on knowledge-reuse, standard formats and best practices. Such processes requires to the well understand by the entire workforce within the organization. Technology: This enables people to people to share knowledge within the organization. Other functionalities are for instance collaboration, document-management, and workflow in and out of the organization. Hariharan (2002) argues that the most common type of ‘KM technology enablement is the knowledge-portal on the corporate intranet’. Subsequently, other technologies for knowledge portals are for instance Lotus Notes databases and standard Microsoft technologies. In this regard, Hariharan (2002) writes that a company is required to choose the best technology that will suit its Knowledge Management objectives and investment plan. People: In the implementation process, employees must actively participate in the Knowledge Management implementation process in order to achieve business objectives. Wong (2005) writes that the best strategy which should be adopted by the Management should be to change the traditional organizational culture and mindsets from ‘Knowledge hoarding’ to ‘knowledge sharing’ thus creating trusted atmosphere. Success of Knowledge Management can also be achieved by providing ‘people visibility, recognition and credits as experts’ in the respective field of specialization. Business Strategy: As earlier mentioned in the previous section, strategic management plays a vital role in encouraging the necessary behaviors through consistent communication within and out of the organization. Organizational Dynamics: In a multinational and multicultural diverse company like Microsoft, cultural issues pose as the greatest hindrance to successfully implement Knowledge Management. These barriers of two types: First id knowledge sharing in which case individually may aim at developing their own knowledge so as to differentiate them within the organization. This is heightened by the perception that ‘knowledge is power.’ In instances where such personal knowledge is rewarded, an environment of mistrust may be created. Second is the fear of innovation. To overcome such barriers an atmosphere in which people share knowledge and become innovative and is supposed to be valued and rewarded both explicitly and implicitly. Reason being in instances where individuals feel deserted, they may not participate in Knowledge Management implementation. Implementation Model, phases, for Knowledge Management Putting into consideration the above key success factors as well as the implementation factors, Microsoft Company can implement Knowledge Management in three different phases as explained below, i. Short Term: (1-3 months) a. Instituting a KM Steering Committee b. Formulating a KM framework ii. Medium Term: (3-6months) a. Establishing the value of KM b. Performing a Gap analysis c. Updating the IT system iii. Long Term: (6-12 months) a. Prioritize b. Motivation and Learning objectives c. Building and reinforcing the key KM enablers d. Redefining some of the critical success factors on need basis as well as monitoring the implementation process continuously. Knowledge Management Platform Hariharan, (2002) in his work has identified five key components of Microsoft’s’ Knowledge Management. This includes: Knowledge Desktop -This is provided through Microsoft office which acts as an interactive portal in all the company’s knowledge assets; Knowledge Services -This necessitates centralized management of the company’s knowledge assets besides supporting tracking and seamless delivery of knowledge assets; System -Microsoft has come up with various systems for instance Windows NT Server which brings resources such as Microsoft NT Directory and Microsoft Management Console among others; Connected devices and Partner solutions (Tseng, 2008). Recommendations and Considerations Knowledge management is an intangible asset which must be founded on various enablers as earlier mentioned. As such in the case of Microsoft Company, a technology-based It company, KM technology has the capacity to significantly induce evolution and application of knowledge so as to implement practices and strategies which are more socially and environmentally sustainable. In this regard, Microsoft can develop a conceptual model, KM Cycle, in order to effectively implement KM. this would aid the company in achieving a competitive advantage over other competitors in the industry. This KM Cycle is illustrated in the figure below and is similar to what Goel et al., (2010) considers as having relevant elements applied in KM implementation plan. Figure 3. KM Cycle Note: Goel, A., Rana, G. & Renu, R. (2010). Knowledge management as a process to develop sustainable competitive advantage. South Asian Journal of Management, 17(3), 104. First, a KM infrastructure and Km imperative should be institute before being incorporated into a KM system. KM infrastructure entails identifying and appointing leaders at various sectors as well as in the affinity groups, assimilating knowledge in various domains and submitting the captured knowledge to various groups and domain leaders. KM imperatives are for instance capturing knowledge from various places, classifying it and then uploading it into a knowledge portal before integrating it into a KM System of the entire company. This as Goel et al., (2010) notes will lead to as sustainable competitive advantage. Consequently, I would also recommend the company to consider various knowledge based services. First, is collaboration which entails knowledge shaping over the distance and time through Microsoft NetMeeting conferencing software. Second are the content management technologies that would aid in managing and capturing explicit knowledge experience. Such technologies need to be improved on and include Microsoft Site Server and Exchange. Third is the business intelligence that would facilitate in transforming/converting business data into knowledge via Microsoft OLAP Services and Office Web Components. The fourth consideration entails capturing and delivering the knowledge closer to the people via Site Server 3.0. Finally, a system to track KM best practices and workflow tools that enable creating process based applications would also be important. This can be done through Routing object and Exchange Folder Agents. Nevertheless, the management needs to consider the aforementioned KM critical success factors during the KM implementation process. Conclusion In this research report, the relevant KM preliminary/critical success factors have been explained and it is up to the management of any company to identify the most applicable ones so as to realize its business objectives. In order for a company to successfully identify the necessary value of knowledge management assets, sufficient attention is required during the implementation of KM critical success factors especially by the management. In this regard, it is imperative to note that the objectives and purpose of KM is to facilitate in realizing the set business objectives. Microsoft Company can realize rapid product development, enhanced decision making, and improved services that meets customer needs through knowledge management. Such benefits will be seen in measures such a better resource returns, cycle-time reductions, and higher product/service satisfaction indexes. References Anantatmula, V. S. (2010). Impact of cultural differences on knowledge management in global projects. VINE: The journal of information and knowledge management systems, 40(3/4), 239-253. Goel, A., Rana, G. & Renu, R. (2010). Knowledge management as a process to develop sustainable competitive advantage. South Asian Journal of Management, 17(3), 104. Hariharan, A. (2002). Knowledge management: A strategic tool. Journal of Knowledge Management Practice, 10(1), 19-31. Jayasingam, S., Ansari, M. A. & Jantan, M. (2010). Influencing knowledge workers: The power of top management. Industrial Management & Data Systems, Vol. 110(1), 134-151. Ho, Chin-Tsang. (2009). The relationship between knowledge management enablers and performance. Industrial Management & Data Systems, 109(1), 98-117. Migdadi, M. (2009). Knowledge management enablers and outcomes in the small-and-medium sized enterprises. Industrial Management & Data Systems, 109(6), 840-858. Plessis, M.D. (2007). Knowledge management: What makes complex implementations successful? Journal of Knowledge Management, 11(2), 91-101. Sharp, D. (2003). Knowledge management today: Challenges and opportunities. Information Systems Management, 20(2), 32-37. Tseng, S. M. (2008). The effects of information technology on knowledge management systems. Expert Systems with Applications, 35(1/2), 150-160. Wei, C. C., Choy, C. S & Yeow, P. H. P. (2006). KM implementation in Malaysian telecommunication industry: An empirical analysis. Industrial Management & Data Systems, 106(8), 1112-1132. Wong, K.Y. (2005). Critical success factors for implementing KM in small and medium enterprises. Industrial Management & Data Systems, 105(3), 261-279. Read More