《Integrating The Lean Enterprise》Knowledge Management for Enterprise Integration

Knowledge Management for Enterprise Integration Eric rebentisch erebenti@mit. edu X8-7773 28 October 2002

Knowledge Management for Enterprise Integration Eric Rebentisch erebenti@mit.edu X8-7773 28 October 2002

An Objective Perspective on Knowledge Management

An Objective Perspective on Knowledge Management

The Typical Starting Point; Explicit vS, Tacit Knowledge · Explicit Knowledge Can be expressed in words and numbers Easily communicated and shared in hard form Examples: scientific formulas, market data, codified procedures · Tacit Knowledge Difficult to formalize Examples: scientific expertise, operational know-how, industry insights

The Typical Starting Point: Explicit vs. Tacit Knowledge • Explicit Knowledge : • Ca n be express ed in wo rds a nd n umbe rs • Easily communicated and shared in hard form • Examples: scientific formulas, market data, codified procedures • Tacit Knowledge : • Difficult to formalize • Examples: scientific exp ertise, operational know￾h o w, industry insights

Three essential Components of Knowledge Management Knowledge discovery and capture Knowledge organization Knowledge sharing

Three Essential Components of Knowledge Management • Knowledge discovery and capture • Knowledge organization • Knowledge sharing

Implementing Knowledge Management Business Intelligence Processes used to enable improved decision making Data mining and warehousing, advanced technologies that glean valuable insight from stored data Knowledge Discovery Text mining techniques enable knowledge discovery from text sources Knowledge Mapping Knowledge sources(people& information)are represented in a context defined by relationships Expertise Location Finding, cataloging making available the best expertise in the corporation when needed for business decision making

Implementing Knowledge Management • Business Intelligence – Processes used to enable improved decision making – Data mining and warehousing, advanced technologies that glean valuable insight from stored data • Knowledge Discovery – Text mining techniques enable knowledge discovery from text sources • Knowledge Mapping – Knowledge sources (people & information) are represented in a context defined by relationships • Expertise Location – Finding, cataloging & making available the best expertise in the corporation when needed for business decision making

Implementing Knowledge Management (cont Collaboration Enables people to share information, expertise insights Amplification of tacit knowledge Enhanced innovation motivation · Knowledge Transfer Extends reach of available knowledge skill transfer resources to remote locations Enables virtual teams to perform at high-level organization standards, independently of the geographical location of the team members

Implementing Knowledge Management (cont.) • Collaboration – Enables people to share information, expertise & insights – Amplification of tacit knowledge – Enhanced innovation & motivation • Knowledge Transfer – Extends reach of available knowledge & skill transfer resources to remote locations – Enables virtual teams to perform at high-level organization standards, independently of the geographical location of the team members

Blueprinting Knowledge within the Organization Strategic Management, Dynamic Work Planning, EIS Information exchang Collaborative Thought .high levels of Knowledge Research, Product Development, Capture & Creation Problem Solvin Marketing, Customer Service Supplier Negotiations nventory, Personnel, Payroll Manufacturing, Assembly Structured work .Day-to-day efficiencies Lessons learned Process specific Source: Ernst Young LLP, Knowledge Based Businesses

Blueprinting Knowledge within the Organization Inventory, Personnel, Payroll, Manufacturing, Assembl y Inventory, Personnel, Payroll, Manufacturing, Assembl y Marketing, Customer Ser vice, Supplier Negotiations Marketing, Customer Ser vice, Supplier Negotiations Research, Product Development, Problem Solving Research, Product Development, Problem Solving Strategic Management, Planning, EIS Strategic Management, Planning, EIS Structured Work •Day-to-Day Efficiencies •Lessons Learned •Process-Specific Dynamic Work •Information Exchange •Collaborative Thought •High Levels of Knowledge Capture & Creation Source: Ernst & Y oung LLP, K nowl e d g e Based B usinesses

Typical Knowledge Management Initiatives Investments Organizationa Technological Capabilities Exploration .Education development . Education development · Management process .Management process W. Measurement protection Measurement protection Contactivity Connectivity .Meeting spaces .Videoconferencing . Events . Intranets ° Communities

Typical Knowledge Management Initiatives Investments Organizational Technologic al Tacit Explicit Knowledge Capabilities Exploration Contactivity Connectivity •Education & development •Management process •Measurement & protection •Education & development •Management process •Measurement & protection •Meeting spaces •Events •Communities •Videoconferencing •Intranets S ource: Earl, Sc ott, Sloan Management Review, Winter 1999

A Common Definition of Knowledge 9 No clear consensus despite long history of epistemology o Knowledge comprises individual beliefs that: Define cause and effect relationships Enable value judgements May also include learned or acquired skills Wisdom Based on deep understanding of underlying relationships individually idiosyncratic and accessible to few Increasing ability to define value or Knowledge relevance in context Based on common syntactical rules-explicit and accessible Information to many A key challenge is characterizing knowledge outside the realm of practice

A Common Definition of Knowledge  No clear consensus despite long history of epistemology  Knowl edge comprises individual beliefs that: – Define cause a nd effect relationship s – Enable value judgements – May a lso include learned or acquired skills Increasing ability to define value or relevance in context Wisdom Knowledge Information Based on common syntactical rules—explicit and accessible to many Bas ed on deep understanding of underlying relationships— individually idiosyncratic and accessible to f e w A key challenge is characterizing knowledge outside the realm of practice

Knowledge is Embedded in All Aspects of Organizational Activities 9 Product Technology 9 Process Technology 9 Organizational structure and reporting relationships 9 Group norms and values Informal information flows Knowledge is a By-product of Individual and Organizational Activity

Knowledge is Embedded in All Aspects of Organizational Activities  Product Technology  Process Technology  Organizational structure and reporting relationships  Group norms and values  Informal inform a tion flows Knowledge is a By-product of Individual and Organizational Activity