Why it is important to ensure the tacit knowledge of the employees are retained within the organization for continuous improvement?

1. Knowledge Insights
By Asitha Goonewardena

2. Hot Topics
Knowledge Management
Intellectual Capital
Information Resources Management [IRM]
Profiting from Knowledge

3. Knowledge Management

4. What is …. ?
Knowledge Management is the explicit and systematic management
of vital knowledge - and its associated processes of creation,
organization, diffusion, use and exploitation.
- David Skyrme
Explicit – Surfacing assumptions
Systematic – Well organized
Vital Knowledge – Need to focus [“Resources are scare”]
Processes – Set of defined activities and tools

5. Knowledge…. What is it ?
Tacit Explicit
What you know… Other sources of info.

6. The Essentials….
Customer Knowledge - About our customer
Knowledge in Process – Applying best know-how in job
Knowledge in Products & Services – Smarter Solutions to match
demand
Knowledge in People - Nurturing & Harnessing Brain power
Organizational Memory – Drawing on lessons from past
experiences
Knowledge in Relationships – Deep personal knowledge &
collaborations
Knowledge in Assets – Measuring & managing intellectual capital

7. Managing Knowledge in Practice…
Creating & Discovering
Sharing & Learning
Organizing & Managing

8. Creating & Discovering
Creativity Techniques
Data Mining
Text Mining
Environmental Scanning
Knowledge Elicitation
Business Simulation

9. Sharing & Learning
Learning Networks
Sharing Best Practice
After Action Reviews
Structured Dialogue
Cross Functional Teams
Communities of Practice

10. Organizing & Managing
Knowledge Centres
Expertise Profiling
Knowledge Mapping
Information Audits/Inventory
IRM (Information Resources
Management)
Measuring Intellectual Capital

11. Tools & Techniques…
Infrastructure
Thinking
Gathering & discovering
Organizing & Storing
Knowledge Worker Support
Application Specific

12. Critical Success Factors…
Knowledge Leadership
Clear Business Benefits
Systematic Processes
A Knowledge Sharing Culture
Continuous Learning
An effective information and communications infrastructure

13. Connecting to Knowledge…
Knowledge Briefings
Regular Updates
Tools and Resources
Knowledge Management Resources
Navigation Aids

14. Facts need to know…
About Your Organizational Context
About Communications
About Information and Knowledge
About Intellectual Capital
About Information and Communications Technologies
About Innovation and Creativity
About Human Resource Management
About Intangibles

15. Myths About …
It's New
It's a Fad
It's Just About Continuous Improvement
It Must Be Led From the Top
There's no obvious pay-back
Knowledge Centres are Libraries Relabeled
The Best Ideas Are Generated in the Office

16. Making it work…
How ?
Better sharing of
Creating new knowledge
known knowledge

17. Knowledge into Practice
Knowledge database
Knowledge mapping
Groupware / intranets
Knowledge centres
Knowledge webs

18. Implementing Knowledge
Management

19. Knowledge Map

20. KM in Business…
…… Success with KM strategy……

21. Success Stories – Nokia…
Driving Factors
Ability to innovate
Maximizing intellectual assets
Promoting customer value and loyalty
“Creating a knowledge culture focused on learning, which encourages
creativity, innovation and renewal.”

22. Success Stories – Scandia…
Driving Factors
Contribution of managing knowledge to generating
shareholder value
Champion of value creation and is one of the leading proponents of
managing intellectual capital
“Believes that it is the responsibility of each employee to be actively
involved in value creation.”

23. Success Stories – Commerce Bank..
KM solution was based on….
More than 250 workflows
Knowledge Base and other KM tools based on Lotus
KM Strategy
Evaluate e-mails
Evaluate integrate calendaring & intranet functionality of
Notes & Domino.
Evaluate bank processes and KM processes

24. Success Stories – Commerce Bank..
Business Benefits
Shortened transaction approval processes by 50%
Immediate response on customer query.
Improves intra-company communication
HR workflow search on jobs, compensation, sharing HR
information.
Finance w/f helps to enterprise-wide teller recap/recon..& roll up.

27. Intellectual Capital

28. Thoughts…
“You can't see it; you can't touch it; yet it makes you rich” -
Tom Stewart
“Not everything you count counts, and not everything that
counts is counted“ - Einstein

29. What is it… ?
Intellectual capital includes assets such as brands, customer
relationships, patents, trade marks and, of course, knowledge

30. What is the worth of it… ?
Can we measure this…. ? [ Intangible Asset ]
If “Yes” then how to value …. ?

31. The Pressure to Measure
Truly reflect the net asset value of the Company
The Growing demand for the intangible assets in the market.
“What‟s get Measured gets managed better”
It supports a corporate goal of enhancing shareholder value
Attractive information for the potential and existing investors

32. Meaningful Measurements
Human Capital
Structural Capital
Customer Capital

33. New Types of Measurements
"If you're not keeping score, you're only practicing"
Balance Score Card by Kaplan & Norton [Measures of
Customers , Innovation & Internal Processes, Learning & Growth]
Economic Value Added by Stern Stewart [ROCE & Market Value
Added]
The Scandia Navigator – Balance Score Card + Value Creation
Model.
Intangible Assets Monitor by Karl Erik Sveiby [External &
Internal Structure and People Competencies]
Intellectual Capital Index –

34. Invisible Balance Sheet
Tangible Assets Visible Finance
Cash
Short-term debt
Accts Receivable Visible
Long term -loans
Equip. / Office Space Shareholders‟ visible equity
External Structure
Shareholders‟
Internal Structure invisible equity
Invisible
Competencies Obligation
Intangible Assets Invisible Finance

35. Guidelines for Success
Awareness and understanding
Common Language.
Indicators.
Measurement Model
Measurement Systems
Process
"You need good mental models, before you can develop good
management models"

36. Information Resources
Management [IRM]
“Drawing in data, yet starved of information”
Ruth Stanat [„The Intelligent Organization‟]

37. Are we overloaded with data….?
Thousands of web sites
CDs‟ / Online Libraries
Newsletters / Subscriptions / e-mails
Receiving data from Mobile media
Meetings / Discussions
Business Broachers / Leaflets
Audio / Visual media

38. So what’s happening…?
“We don‟t have vital information for Management Decision
Making”
“Organizations‟ fail to recognize information as a strategic
resource”
We So much Data
Scattered
Have Un-presented

39. Then what we want
Information
The Place
Format
Right Time

40. Key activities in IRM
Identification - What Information is there
Ownership - Who is responsible for different information
entities and co-ordination?
Cost & Value - A basic system for making judgments on
purchase and use
Development - Increasing it‟s value or stimulating demand
Exploitation - Proactive maximization for value for money

41. Benefits of implementing IRM
Strategy
Identifies gaps and duplication of information
Clarifies roles and responsibilities of owners and users of
information
Provide costs saving in the procurement and handling of
information
Identifies cost/benefits of different information resources
Actively supports management decision processes with
quality information

42. Key issues addressed by IRM
Strategic
Organizational
Structural
System
Human

43. How to manage information as a
strategic resource
Understand the role of Information
Assign Responsibility for Leading your IRM Initiative.
Develop Clear Policies on Information Resources
Conduct an Information Audit (Knowledge Inventory).
Develop Appropriate Technological Systems
Introduce mining and refining processes.
Optimize your information purchases.
Mix hard/soft, internal/external.
Systematic scanning.
Encourage a Sharing Culture

44. Profiting from Knowledge

45. …Commerce
Commerce
E-Commerce
M-Commerce
K-Commerce

46. K-Commerce
“Trading Knowledge via electronic networks”
In Practice…
Knowledge Intensive Products & Services
Internet as a Strategic Business opportunities
E-Commerce – Splitting explicit knowledge
Marketing – Improving the quality of relationship marketing.

47. Benefits & Opportunities
Differentiation
New revenue streams
Increased ROI on scare skills
Identification of new opportunities
Generate market reach

48. How to Success…
Act Fast – Proactive
Use existing knowledge initiatives
Add human touch
Interactive web sites

49. How to convert knowledge into
Products/Services
Best practices to Best Practice databases
Expertise directories to Consultancy Teams
Intellectual assets to IPR
Intranets to Extranets
Domain know-how to Expert systems / consultancy
Internal Communities to Membership Communities.
Customer Knowledge to Customer Databases
Knowledge centers to Advisory services