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KnowledgeManagement:ConceptsandCasesStephenRuth,GeorgeMasonUniversityFirstLecture:WhyKMMakesaDifferenceinanOrganizationLeveragingTechnologySeries(ICASIT)ElectronicCommerce(GMU,WorldBank)ITintheEuropeanUnionITandOrganizationalLearningHumanEngineeringinITDesignITforCompetitiveAdvantageITandExecutiveInformationSystemsLeveragingTechnologySeries(Continued)ITandExpertSystemsUseLeveragingMultimediaTeaminginCyberspaceVirginia’sNetpreneursCybercorpKnowledgeManagementPossessingITvs.LeveragingITMostmetricsareaboutpossessionPossessionisstatic;leveragingisdynamicPossessionalonedoesnotaddvalueLeveragingisastrategicissue;possessionisoperationalOutlineofThisPresentationKMscope,definitions,briefhistoryLeveragingKM--examplesAcquiringknowledge,KMmarketsKeyideas:Leonard-Barton,Davenport,Prusak,Koulopoulis,Nonaka,StewartOutlineofThisPresentationCharacteristicsofsuccessfulknowledgeorganizationsFivestepapproachtoKMThefutureBHAG’sBig,Hairy,AudaciousGoalsGoodyear($13billionto$23Billionin5years)TimesMirror--increaseLATimescirculationby500,000,a50%jumpP&GIncreasecompanysizeby100%intenyearsMoreBHAG’sGE--be#1or#2ineverymarkettheyserveBristolMyers--DoublesalesandearningsinsevenyearsCampbellSoup--beseenasapeerofCocaColaandGilletteDefinitionofKnowledge“Knowledgeisafluidmixofframedexperience,contextualinformation,andexpertinsightsthatprovidesaframeworkforevaluatingandincorporatingnewexperiencesandinformation.Itoriginatesandisappliedinthemindsofknowers.Intheorganization,DefinitionofKnowledge

itoftenbecomesembodiednotonlyindocumentsorrepositoriesbutalsoinorganizationalroutines,processes,practices,andnorms”(WorkingKnowledge,p.5)WhatIsSoSpecialaboutKM?SeemstobefarmorethanafadComparisons:ES,MM,BPR,CASEManylargecompaniesandorganizationsareembracingKMWhatIsSoSpecialaboutKM?AlreadyavastbodyofpracticeHashugepotentialforROICEO’softentheleaders(nottheCIO’s)KM:ASignificantNewITApproachWhyneeded?InformationoverloadbutknowledgefamineExtractinginformationiseasy--butknowledgeisscarceandoftenhiddenKM:ASignificantNewITApproachCorecompetencyisbasedonknowledgeKnowledge,notinformation,istheedgeWhoUsesKMNow?AT&T,DellComputer,CSC,AMS,IRS,WorldBank,NYNEX,AmericanAirlines,IBM,Xerox,EDS,Hallmark,GE,HP,NationsBank,Polaroid,PacBell,Microsoft,thousandsmore.WhoUsesKMNow?AtleasttwohundredoftheFortune500withanewtitle--CKOorCLOorDirector,KnowledgeInitiatives(Very)BriefHistoryLongtraditionofvaluingknowledge:Moses;Alexander,Caesar,Napoleon,Drucker,Toeffler,etc.Knowledgecreation-Nonaka’sstudiesofMatsushita,Honda,Mazda--laterGE(Very)BriefHistoryLeonard-Barton’smanufacturingstudiesStewart’semphasisonIntellectualCapitalDavenportandPrusak--practiceorientationScopeofKMInformationAtleastonehundredbooks;dozensofcasestudiesAhalfdozenjournalsScopeofKMInformationHundredsofarticles,includinginHBRandSMRAboutasymposiumperweekScoresofdedicatedwebsites(seeespecially/km/index3.htm)TheSpectrumDataInformationKnowledgeWisdomTheSpectrumInsightResolveActionKnowledgeQuestionsWhereisknowledge?InthemindoftheknowerWhatisknowledge?Framedexperience,conceptualinformation,insightsExpertise?Experience-basedinsightsIntuition?CompressedexpertiseKnowledgeCharacteristics(V.Alee)MessyandselforganizingTravelsonlanguageandthroughcontactDifficulttocodifyDifficulttoregulateSeekscommunityAsocialprocessSampleKnowledgeAreasCustomersProcessesRulesofthumbHistoryKnow-howSkillsandexperiencesSamplesofKnowledge-DatathatMakesaDifferenceChrysler’sEngineeringBooksofKnowledge(automobileplatformteams)AndersenKnowledgeXchange(toomuchknowledge--becamedata)SamplesofKnowledge-DatathatMakesaDifferenceArmy’sCALLandAAR3M-knowledgecompany;IBMindustrysolutionunits;Steelcasesellsknowledge;Xerox--sellssolutionsSomeSuccessStoriesHoffmanLaroche--reformofFDAsubmissionprocess:$1millionperdayFiveNewYorkmedicalcenters--observedothersprocedures:24%dropindeathrateforbypassoperationsHPoncallhelpdesk--”Case-basedreasoning”reducedcalltimeby70%MoreSuccessStoriesChevron--Energy-usenetwork--savings:$650millionTI--Improvedwaferfabricationyield--$1.5billionMoreSuccessStoriesSkandia--90%reductionoftimetomarketNEC--replacingrobotswithpeopleBPvirtualteamwork--NorthSeaexampleBP’sVirtualTeamworkProgramNotpartofITgroupHardware/software:desktopconferencing,multimedia,email,appsharing,sharedwhiteboards,videocliprecordingtools,groupware,webbrowserBP’sVirtualTeamworkProgramFoursuccesses--thefailurewasgroupthatwantedtoexchangeonlydataMobiledrillingshipproblem$500,000savedthroughKMKnowledgeMarketsMarketshavesocial/politicaldimensionsMobil--braggingdiscouraged--affectsKMHPinAustralia--”mateship”KnowledgeMarketsBuyers--peoplewhofindnoeasyanswertocomplexproblem(20%ofmanager’stimespentinknowledgesearch)Sellers--knowers,pieceworkers(salariedpurchased)--bewareof“hoarders”KnowledgeMarkets(Cont’d)Brokers:Librarians,boundaryspanners,chatters,gossipsPricingsystem:cash,status,entitlementsKnowledgeMarkets(Cont’d)Threekeypricingmechanisms:reciprocity(“favorbank”),repute,altruismOthermarketfactors:trust(visible,ubiquitous,fromthetop),informalmarkets,communitiesofpracticeKnowledgeMarkets(Cont’d)Problemsofknowledgemarkets(inefficiencies)--notlikeyellowpagesIncompletenessofinformation(prices,brokers,payoffs)KnowledgeMarkets(Cont’d)Asymmetryofknowledge(scarcity)Localnessofknowledge(distanceproblem)JavelinCase--afailurebecauseofpricingpolicy,trustandlocalnessofknowledgeGeneratingKnowledgeAcquisition--BP’s“thiefoftheyear”;IBMboughtLotus($3.5billion--14timesbookvalue);AT&TbuysNCR;ELProductsbuysGrimesRental--business-universityconsortia;consultantsDedicatedresources-Motorola,MercandMcDonald’suniversities,Xerox’sPARCGeneratingKnowledge(Cont’d)Fusion-creativeabrasion--”innovationoccursattheboundariesbetweenmindsets”(Leonard-Barton)Adaptation--DECandWang;WalMartandSears;universities;McDonnell’sperspective:successisdangerousProblemswithKM(Davenport)Gresham’sLaw--datadrivesoutknowledgeMostsummarydata(scanner,customer,transactions,demographics)nevergetsusedDeprivationofenablers--space,timereciprocity(drugcompanyexample)WithholdingofsocialcapitalEnemiesofSuccess(Prusak)GoingoutsidewhatknowerknowsKnowledgeisnottruthNoafter-actionreviewsNeedfor“perfectinformation”MeasuringyesterdayinsteadofunderstandingtomorrowTechnologyasahammerTheEssenceofKM(Prusak)AnticipatedreciprocityPerceivedequitySocialcapitalConnection,notcaptureCommunitiesofpracticeKMandCompetencyWellspringsofKnowledge--D.Leonard-BartonWellspring--sourceofastream,cansustainor,whenpolluted,denygrowthTheme-technologydecisionscanbuildknowledgeKMandCompetencyWellspringsofKnowledge--D.Leonard-BartonCoretechnologicalcapabilities--thecompetitiveadvantageAlso:supplementalandenablingcapabilities--don’tdifferentiateKeyexample--ChaparralSteelTypesofSkillandKnowledge“A-shapedor“T-shaped”PublicorscientificIndustryspecificFirmspecificValuesandnormsCoreRigiditiesCorecapabilitycanbecomecorerigidityInsularityOvershootingthetarget(workingharder)PowerofthepastInabilitytoinnovatewithnewITCoreRigiditiesLimitedexperimentationScreeningoutexternalknowledgeCreativeAbrasionTrapofmindsetGettingdifferentmindsetstocollideAbrasioncanbegood--butfrictionmustbecreativeManagingreligiouswars--”herbsinthedish”PrototypesbecomethemediafrancaCorporateInstinct(Koulopoulisetal)IsCIaboutsurvivalorleveraging,orcorecompetencies,competingincreasingmarketshareorcreatingknowledge?Ans:allRule1:SurvivebasedonCoreCompetency,notcoreproducts(Xerox,etc.)CorporateInstinct(Koulopoulisetal)Rule2:ConstantlycompetewiththecurrentlybestideastodevelopnewonesRule3:ValuenewknowledgeovercorporatestructureandstandardsMyths(K)Corporatememory--mayeclipseindividualwisdomDecentralizeddecisionmakingTeamsTheKnowledgeChain(K)InternalAwarenessInternalResponsivenessExternalAwarenessExternalResponsivenessLeveragingKM(K)LearningtoforgetKnowledgecapture(Obstacles:mobility,halflife,threattospecialists)KnowledgeinventoryAttitudesofInstinct(K)ReactbeforeyouassimilateShare-don’timpose-knowledgeBecomeaknowingenterpriseCreateprocessassetsAttitudesofInstinct(K)MakeinstincttransparentOrganizewithoutstructureDecephalizedecisionmakingIncreasevelocityandreturnontimeDynamicStabilitySharingKnowledge(“sharpend”ofinstinct)RoguecollaborationIntelligentautonomy(KingCanute?)--oldandnewparadigmsUnleashindividualinstinct(Fulkerson)Traitsof“Smart”Companies(D.Lee)CommunicatecompellingbigpictureProvidegristforthe“IdeaMill”EmployeesgivencontrolovertheirjobsTraitsof“Smart”Companies(D.Lee)EnvironmentthatfosterstrustManagersrewardedforcoaching,notforhavinganswersCapturingandsharingknowledgeisfunTraits(Continued)RewardsforsharingandusingknowledgeCommunicatetheimportanceofknowledgesharingFocusonpeople,nottechnology(1/3rule)BuildinreflectionandcapturetimeCreatepositiveemotionalclimateStructureofKMImplementation(Teltech)Phase1ExplorepossibilitiesWhatisKM?Howcanitbeappliedtoour

company?StructureofKMImplementation(Teltech)Establishcross-functionalteamsReviewcasestudiesAttendconferencesConsultexperts,benchmark,brainstormPhase2DevelopKMStrategyAssessbusinessneeds,personnelstrengths,potentialbenefits,ROI,ROT,ROEEnduserneedsKMvs.businessobjectivesPhase2DevelopKMStrategyInvolvementofstakeholdersIdentifyspecificKMdeliverablesGrassrootssupportPhase3Part1DesigntheKMSolutionStrategyleadstostructureIdentifysolutioncomponentsIdent

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