Page 215 - DCAP307_PLANNING_AND_MANAGING_IT_INFRASTRUCTURE

Unit 13: Knowledge Management

13.1 Concept of Knowledge Management Notes

Knowledge management is a discipline that promotes an integrated approach to identifying,
capturing, evaluating, retrieving, and sharing all of an enterprise’s information assets. These
assets may include databases, documents, policies, procedures, and previously uncaptured
expertise and experience in individual workers
We define knowledge management as a business activity with two primary aspects: Treating
the knowledge component of business activities as an explicit concern of business reflected in
strategy, policy, and practice at all levels of the organisation.
 Making a direct connection between an organisation’s intellectual assets — both explicit
[recorded] and tacit [personal knowhow] — and positive business results.

 In practice, knowledge management often encompasses identifying and mapping
intellectual assets within the organisation, generating new knowledge for competitive
advantage within the organisation, making vast amounts of corporate information
accessible, sharing of best practices, and technology that enables all of the above — including
groupware and intranets.
That covers a lot of ground. And it should, because applying knowledge to work is integral to
most business activities.

13.1.1 Importance of Knowledge Management

Most companies are focused on producing a product or service for customers. However, one of
the most significant keys to value-creation comes from placing emphasis on producing
knowledge. The production of knowledge needs to be a major part of the overall production
strategy.
One of the biggest challenges behind knowledge management is the dissemination of knowledge.
People with the highest knowledge have the potential for high levels of value creation. But this
knowledge can only create value if it’s placed in the hands of those who must execute on it.
Knowledge is usually difficult to access – it leaves when the knowledge professional resigns.
“The only irreplaceable capital an organisation possesses is the knowledge and ability of its
people. The productivity of that capital depends on how effectively people share their competence
with those who can use it.” – Andrew Carnegie
Therefore, knowledge management is often about managing relationships within the
organisation. Collaborative tools (intranets, balanced scorecards, data warehouses, customer
relations management, expert systems, etc.) are often used to establish these relationships.
Some companies have developed knowledge maps, identifying what must be shared, where can
we find it, what information is needed to support an activity, etc. Knowledge maps codify
information so that it becomes real knowledge; i.e. from data to intelligence.

Example: AT&T’s knowledge management system provides instant access for customer
service representatives, allowing them to solve a customer’s problem in a matter of minutes.
Monsanto uses a network of experts to spread the knowledge around. Employees can lookup a
knowledge expert from the Yellow Page Directory of knowledge experts.

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