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1、Knowledge Management: Concepts and CasesStephen Ruth, George Mason UniversityFirst Lecture: Why KM Makes a Difference in an OrganizationLeveraging TechnologySeries (ICASIT)Electronic Commerce (GMU,WorldBank)ITintheEuropeanUnionITandOrganizationalLearningHumanEngineeringinITDesignITforCompetitiveAdva

2、ntageITandExecutive Information SystemsLeveraging TechnologySeries (Continued)ITandExpert SystemsUseLeveraging MultimediaTeaming in CyberspaceVirginiasNetpreneursCybercorpKnowledgeManagementPossessing IT vs.Leveraging ITMost metricsare about possessionPossession is static;leveragingisdynamicPossessi

3、on alone doesnot addvalueLeveraging is astrategic issue;possession is operationalOutline of ThisPresentationKMscope,definitions, brief historyLeveraging KM-examplesAcquiringknowledge,KMmarketsKeyideas:Leonard-Barton,Davenport,Prusak,Koulopoulis,Nonaka, StewartOutline of ThisPresentationCharacteristi

4、csofsuccessfulknowledgeorganizationsFive stepapproachtoKMThefutureBHAGsBig, Hairy,AudaciousGoalsGoodyear($13 billionto$23 Billionin5years)TimesMirror-increase LA Times circulation by 500,000, a50% jumpP&GIncreasecompanysize by 100%inten yearsMoreBHAGsGE-be #1 or #2 in every marketthey serveBristol M

5、yers -Double sales andearningsinsevenyearsCampbellSoup-beseen as apeerofCoca Colaand GilletteDefinition of Knowledge“Knowledgeisafluidmixofframed experience, contextualinformation, andexpertinsightsthatprovidesa frameworkforevaluatingandincorporatingnewexperiencesand information.Itoriginates andisap

6、plied in themindsofknowers.Intheorganization,Definition of Knowledgeitoftenbecomes embodied notonly in documentsorrepositoriesbut alsoinorganizationalroutines, processes,practices,andnorms”(Working Knowledge, p. 5)What Is So SpecialaboutKM?Seemstobefarmorethan afadComparisons:ES,MM,BPR,CASEMany larg

7、e companiesandorganizationsareembracing KMWhat Is So SpecialaboutKM?Already avastbody of practiceHashugepotentialfor ROICEOsoftentheleaders(not theCIOs)KM:ASignificantNew IT ApproachWhyneeded?Informationoverloadbut knowledgefamineExtracting information is easy-butknowledgeisscarce andoftenhiddenKM:A

8、SignificantNew IT ApproachCore competencyisbasedonknowledgeKnowledge, notinformation,isthe edgeWhoUsesKMNow?AT&T,DellComputer, CSC,AMS,IRS, World Bank, NYNEX,AmericanAirlines,IBM,Xerox,EDS,Hallmark,GE, HP,Nations Bank, Polaroid,PacBell,Microsoft, thousandsmore.WhoUsesKMNow?AtleasttwohundredoftheFort

9、une 500with anew title - CKOorCLOorDirector, KnowledgeInitiatives(Very)BriefHistoryLong traditionofvaluing knowledge:Moses; Alexander,Caesar,Napoleon,Drucker,Toeffler, etc.Knowledgecreation-Nonakasstudies ofMatsushita,Honda,Mazda-laterGE(Very)BriefHistoryLeonard-Bartons manufacturingstudiesStewartse

10、mphasisonIntellectual CapitalDavenportandPrusak-practice orientationScopeofKMInformationAtleastonehundredbooks;dozens of casestudiesA halfdozenjournalsScopeofKMInformationHundredsofarticles,including inHBRandSMRAbouta symposiumperweekScoresofdedicated websites(see especiallyhttp:/km/index3.htm)TheSp

11、ectrumDataInformationKnowledgeWisdomTheSpectrumInsightResolveActionKnowledgeQuestionsWhereisknowledge?Inthe mindofthe knowerWhat is knowledge?Framed experience, conceptualinformation, insightsExpertise? Experience-basedinsightsIntuition?CompressedexpertiseKnowledgeCharacteristics (V.Alee)Messyandsel

12、forganizingTravels on language andthrough contactDifficulttocodifyDifficulttoregulateSeekscommunityA socialprocessSampleKnowledge AreasCustomersProcessesRulesofthumbHistoryKnow-howSkillsand experiencesSamples of Knowledge-Data thatMakesaDifferenceChryslers Engineering Books of Knowledge(automobilepl

13、atformteams)AndersenKnowledgeXchange(too muchknowledge-becamedata)Samples of Knowledge-Data thatMakesaDifferenceArmysCALLandAAR3M-knowledgecompany;IBM industry solution units;Steelcasesellsknowledge; Xerox-sellssolutionsSome SuccessStoriesHoffmanLaroche-reformofFDAsubmissionprocess:$1million perdayF

14、ive NewYork medicalcenters-observedothers procedures: 24%drop in death ratefor bypassoperationsHPoncall helpdesk-”Case-basedreasoning”reducedcall timeby70%More SuccessStoriesChevron-Energy-use network-savings:$650 millionTI-Improved wafer fabrication yield -$1.5billionMore SuccessStoriesSkandia-90%r

15、eductionoftimetomarketNEC-replacingrobots withpeopleBPvirtual teamwork-NorthSeaexampleBPs VirtualTeamworkProgramNotpartofITgroupHardware/software:desktopconferencing, multimedia,email, appsharing,sharedwhiteboards,videocliprecordingtools, groupware,web browserBPs VirtualTeamworkProgramFour successes

16、-the failurewas group thatwanted to exchange onlydataMobiledrillingshipproblem$500,000savedthrough KMKnowledgeMarketsMarkets havesocial/politicaldimensionsMobil-braggingdiscouraged-affectsKMHPinAustralia-”mateship”KnowledgeMarketsBuyers-peoplewhofindnoeasy answertocomplex problem(20%ofmanagerstimesp

17、entinknowledgesearch)Sellers-knowers, piece workers(salaried purchased)-bewareof“hoarders”KnowledgeMarkets(Contd)Brokers:Librarians,boundaryspanners,chatters, gossipsPricing system:cash,status,entitlementsKnowledgeMarkets(Contd)Threekeypricingmechanisms:reciprocity(“favor bank”),repute,altruismOther

18、marketfactors:trust (visible,ubiquitous,from thetop),informalmarkets,communitiesofpracticeKnowledgeMarkets(Contd)Problemsofknowledge markets(inefficiencies)-not likeyellow pagesIncompletenessofinformation(prices,brokers,payoffs)KnowledgeMarkets(Contd)Asymmetryofknowledge (scarcity)Localnessofknowled

19、ge(distance problem)Javelin Case-afailurebecause of pricingpolicy,trustandlocalnessofknowledgeGenerating KnowledgeAcquisition-BPs“thief of theyear”;IBM boughtLotus($3.5billion-14timesbook value);AT&Tbuys NCR;ELProductsbuysGrimesRental-business-universityconsortia;consultantsDedicatedresources-Motoro

20、la,MercandMcDonaldsuniversities, XeroxsPARCGenerating Knowledge(Contd)Fusion-creativeabrasion-”innovation occursattheboundariesbetweenmind sets” (Leonard-Barton)Adaptation-DECand Wang;WalMartandSears; universities;McDonnellsperspective: successisdangerousProblemswith KM (Davenport)GreshamsLaw-datadr

21、ives outknowledgeMost summarydata(scanner,customer, transactions,demographics)nevergets usedDeprivationofenablers-space,timereciprocity(drugcompany example)WithholdingofsocialcapitalEnemies of Success(Prusak)Goingoutside whatknower knowsKnowledgeisnot truthNoafter-actionreviewsNeed for“perfectinform

22、ation”Measuringyesterday insteadofunderstandingtomorrowTechnology as ahammerTheEssenceofKM(Prusak)AnticipatedreciprocityPerceivedequitySocialcapitalConnection,notcaptureCommunitiesofpracticeKMandCompetencyWellspringsofKnowledge-D.Leonard-BartonWellspring-sourceofastream, cansustain or,when polluted,

23、deny growthTheme-technology decisionscanbuildknowledgeKMandCompetencyWellspringsofKnowledge-D.Leonard-BartonCore technologicalcapabilities-thecompetitiveadvantageAlso:supplementaland enabling capabilities-dontdifferentiateKeyexample-Chaparral SteelTypesofSkillandKnowledge“A-shapedor“T-shaped”Publico

24、rscientificIndustryspecificFirm specificValuesand normsCore RigiditiesCore capabilitycan becomecore rigidityInsularityOvershootingthe target(workingharder)PowerofthepastInabilitytoinnovatewithnewITCore RigiditiesLimited experimentationScreeningout external knowledgeCreativeAbrasionTrap of mindsetGet

25、ting differentmindsetstocollideAbrasioncanbegood-but friction mustbecreativeManagingreligiouswars-”herbs in thedish”Prototypes becomethemediafrancaCorporateInstinct(Koulopoulisetal)IsCIaboutsurvivalorleveraging,orcore competencies,competing increasingmarket share or creating knowledge?Ans:allRule 1:

26、 SurvivebasedonCoreCompetency,notcoreproducts(Xerox, etc.)CorporateInstinct(Koulopoulisetal)Rule 2: Constantlycompetewith thecurrentlybestideastodevelop newonesRule 3:Valuenewknowledge overcorporate structureandstandardsMyths(K)Corporatememory-mayeclipseindividual wisdomDecentralized decision making

27、TeamsTheKnowledge Chain (K)InternalAwarenessInternalResponsivenessExternalAwarenessExternalResponsivenessLeveraging KM (K)LearningtoforgetKnowledgecapture(Obstacles:mobility,halflife,threattospecialists)KnowledgeinventoryAttitudesofInstinct(K)Reactbeforeyou assimilateShare-dontimpose-knowledgeBecome

28、aknowing enterpriseCreateprocessassetsAttitudesofInstinct(K)Make instinct transparentOrganizewithout structureDecephalizedecisionmakingIncreasevelocityandreturn on timeDynamic StabilitySharing Knowledge(“sharp end”ofinstinct)RoguecollaborationIntelligentautonomy(KingCanute?)-old andnewparadigmsUnlea

29、sh individualinstinct(Fulkerson)Traitsof“Smart”Companies(D.Lee)Communicatecompelling bigpictureProvide grist forthe“IdeaMill”Employeesgivencontrolover their jobsTraitsof“Smart”Companies(D.Lee)Environmentthat fosterstrustManagersrewardedforcoaching, notforhaving answersCapturingand sharingknowledge i

30、s funTraits(Continued)Rewards forsharing andusingknowledgeCommunicatetheimportanceofknowledgesharingFocusonpeople, nottechnology (1/3rule)Buildinreflection andcapture timeCreatepositiveemotional climateStructureofKMImplementation(Teltech)Phase1 ExplorepossibilitiesWhat is KM?Howcan it be appliedtoou

31、rcompany?StructureofKMImplementation(Teltech)Establishcross-functionalteamsReviewcasestudiesAttendconferencesConsult experts, benchmark,brainstormPhase2 DevelopKMStrategyAssessbusinessneeds, personnelstrengths, potentialbenefits,ROI,ROT, ROEEnduserneedsKMvs.businessobjectivesPhase2 DevelopKMStrategyInvolvementofstakeholdersIdentifyspecificKMdeliverablesGrassrootssupportPhase3 Part1Designthe KM SolutionStrategyleadstostructureIdentifysolutioncompo

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