Chapter 11: Managing Knowledge

Creating and using knowledge is not limited to information-based companies: it is necessary for all organizations, regardless of industry. It’s not enough to make good products; companies must make products that are better, less expensive to produce, and more desirable than those of competitors’. Using corporate and individual knowledge assets wisely will help companies accomplish this.

There are important dimensions to knowledge; there is more to information than just bits and bytes. A company must have the knowledge to transform information it gathers into meaningful concepts to improve the environment for its employees, suppliers, and customers. Wisdom is using information to solve problems and knowing how to apply knowledge.

Knowledge Management is referred to as the set of business processes developed in an organization to create, store, transfer, and apply knowledge. To understand the concept of knowledge management, think of knowledge as a resource, just like buildings, equipment, designs, and money. All these resources need to be actively managed.

In the knowledge management value chain, storing involves document management systems, knowledge acquisition uses data mining to gather information and knowledge application is about building new processes for its suppliers and employees or new products for its customers.

With so many sources of information and knowledge available, how does an organization go about collecting, storing, distributing, and applying it all? Organizations can create centralized knowledge repositories by building upon document management systems and including information from structured and semistructured knowledge systems. Companies save money by placing information pertaining to the subject matter experts in a directory that all employees can access.

Joe, a mechanic in Oklahoma, needs to fix a radiator in an old car. He can’t remember what bolts he needs. He uses his computer to access an intranet through the companies enterprise portal, clicks the type car, the type repair, and downloads the most current information to fix the part. He also has access to videos, warnings, best practices, and experiences from other mechanics. Instead of hours it might have taken Joe to look through a manual, he can finish the job in less than half a day.

Knowledge Work Systems (KWS) support the creation and integration of new knowledge that is beneficial to the organization. KWS are often used by and support professional employees such as engineers, researchers, and analysts. The requirements of a KWS include access to: graphic tools, analytical tools, communication tools, and document management tools. Examples of KWS are Computer-aided design (CAD) used to build new products or improve products, Virtual reality systems are sophisticated imagery that makes you feel like you’re right there, and virtual reality modeling language that has specifications for interactive 3-D modeling.

While managers will experience some challenges in implementing and using a Knowledge Management System, the benefits can be worthwhile. Start small, measure the ROI every step of the way, and make sure users are satisfied with the system or they won’t use it.