Introducing Knowledge Management by Bank Bukopin

Introducing Knowledge Management
PUSILKOM UI to PT BANK BUKOPIN , Tbk.
TUTORS:
Dana Indra Sensuse, Ph.D.
dr. Lik Wilarso, MTI.
Jonathan Sofian Lusa, M.Kom

Introducing Knowledge
Mangement
CHAPTER 1

Chapter Objectives
 Describe what KM is and what the forces are that drive
KM.
 Discuss organizational issues related to KM.
 Explain knowledge management systems (KMS) and
their role in the organization.
 Discuss the relevance of KM in today’s dynamic
environments augmented with increasing technological
complexity.
 Present the benefits and considerations about KM,
including an overview of the nature of the KM projects
currently in progress at public and private organizations
around the world, and the important role that IT plays in
KM

Knowledge Management -
Motivation
 “The 20th anniversary of the landing of an American on the
surface of the Moon occasioned many bittersweet
reflections. Sweet was the celebration of the historic event
itself... Bitter, for those same enthusiasts, was the
knowledge that during the twenty intervening years much
of the national consensus that launched this country on its
first lunar adventure had evaporated... a generation of men
and women who had defined their lives to a large extent in
terms of this nation's epochal departure from Earth's
surface was taking its leave of the program they had built”
[Fries, 1992].

Need for Knowledge
Management
 “Knowledge has become the key resource, for
a nation’s military strength as well as for its
economic strength… is fundamentally different
from the traditional key resources of the
economist – land, labor, and even capital…we
need systematic work on the quality of
knowledge and the productivity of
knowledge… the performance capacity, if not
the survival, of any organization in the
knowledge society will come increasingly to
depend on those two factors” [Drucker,1994]

What is Knowledge
Management?
 Knowledge management (KM) may simply be defined as
doing what is needed to get the most out of knowledge
resources.
 KM is defined as processes necessary to generate,
capture, codify, and transfer knowledge across the
organization to achieve competitive advantage.
 Individuals are the vital source of organizational
knowledge.
 In general, KM focuses on organizing and making
available important knowledge, wherever and
whenever it is needed.
 KM is also related to the concept of intellectual capital.

Knowledge Management Definitions
(Jashapara, 2004)
 Swan et al. 1999
 “..any process or practice of creating, acquiring,
capturing, sharing and using knowledge, wherever
it resides, to enhance learning and performance in
organizations”
 Skyrme 1999
 “The explicit and systematic management of vital
knowledge and its associated processes of
creating, gathering, organizing, diffusion, use and
exploitation, in pursuit of organizational objectives”

Knowledge Management Definitions (2)
 Mertins et al. 2000
 “..all methods, instruments and tools that in a
holistic approach contribute to the promotion of
core knowledge processes”
 Davenport & Prusak 1998
 “ Knowledge management draws from existing
resources that your organization may already
have in place – good information systems
management, organisational change
management, and human resources
management pratices”

Forces Driving Knowledge
Management
1. Increasing Domain Complexity: Complexity of
internal and external processes, increased competition,
and the rapid advancement of technology all contribute
to increasing domain complexity.
2. Accelerating Market Volatility: The speed of change,
or volatility, within each market domain has increased
rapidly in the past decade.
3. Intensified Speed of Responsiveness: The time
required to take action based upon subtle changes
within and across domains is decreasing.
4. Diminishing Individual Experience: High employee
turnover rates have resulted in individuals with
decision-making authority having less tenure within
their organizations than ever before.

So, what does this mean?
 Faced with increased complexity, market
volatility and accelerated responsiveness,
today’s younger manager feels less adequate
to make the difficult decisions faced each day.
 KM is important for organizations that
continually face downsizing or a high turnover
percentage due to the nature of the industry.

Is Knowledge Management for
Everybody?
 KM is important for all organizations
 Today’s decision maker faces the pressure to
make better and faster decisions in an
environment characterized by a high domain
complexity and market volatility, even in light of
 lack of experience typically from the decision-maker
 outcome of those decisions could have such a
considerable impact on the organization

Knowledge Management
Systems
 Information technology facilitates sharing as well
as accelerated growth of knowledge.
 Information technology allows the movement of
information at increasing speeds and efficiencies.
 “Today, knowledge is accumulating at an ever
increasing rate. It is estimated that knowledge is
currently doubling every 18 months and, of
course, the pace is increasing... Technology
facilitates the speed at which knowledge and
ideas proliferate” Bradley [1996]

Systems
 Knowledge management mechanisms are
organizational or structural means used to promote
knowledge management.
 The use of leading-edge information technologies
(e.g., Web-based conferencing) to support KM
mechanisms enables dramatic improvement in KM.
 knowledge management systems (KMS): the synergy
between latest technologies and social/structural
mechanisms

Systems
 KM systems classification based on
observations on the KM systems
implementations:
 Knowledge Discovery Systems (Chapter 13)
 Knowledge Capture Systems (Chapter 14)
 Knowledge Sharing Systems (Chapter 15)
 Knowledge Application Systems (Chapter 16)

Systems
 Artificial intelligence and machine learning
technologies (Chapters 7-12) important role
in the KM processes, enabling the
development of KMS
 Experience management basically
experience develops over time, to combine
into more general experience, which then
combines into general knowledge

Issues in Knowledge
Management
 Many KM systems implemented at organizations have
failed to enable sharing the knowledge.
 “Effective KM is not about making a choice between
“software vs. wetware (brainware), classroom vs. hands-
on, formal vs. informal, technical vs. social…uses all the
options available to motivated employees to put
knowledge to work …[and] depends on recognizing that
all of these options basically need each other” [Stewart,
2002].
 One of the primary differences between traditional
information systems and KM systems is the active role
that users of KM systems play on building the content of
such systems. In IS, it is delegated to MIS department.

Effective Knowledge
Management
 80% - Organizational culture and human
factors
 Organizational culture is "the specific collection
of values and norms that are shared by people
and groups in an organization and that control
the way they interact with each other and with
stakeholders outside the organization.
 20% - Technology

Effective KM
 Reduce dependence on individuals.
 Reduce cycle time: Standardize and speed up
customer/Request for Information responses.
 Cutting time to market
 Re-use solutions across projects/initiatives.
 Integrate SBU level repositories into
organization-wide repositories (break
functional silos).

Essence of KM
1. Knowledge is first created in the people’s minds.
• KM practices must first identify ways to encourage and stimulate
the ability of employees to develop new knowledge.
2. KM methodologies and technologies must enable effective
ways to obtain, represent, organize, re-use, and renew
this knowledge.
3. KM should not distance itself from the knowledge owners,
but instead celebrate and recognize their position as
experts in the organization.

Conclusions
In this Chapter, we…
 Described KM ranging from the system to the
organizational perspective.
 Explained the relevance of KM in today’s dynamic
environments augmented with increasing technological
complexity
 Explained the benefits and considerations about KM,
including an overview of the nature of the KM projects
currently in progress at public and private organizations
around the world.
 Described that information technology plays an important
role in KM. The enabling role of IT is discussed, but the old
adage of “KM is 80% organizational, and 20% about IT” still
holds today.

Introducing Knowledge Management by Bank Bukopin

More Related Content

Similar to Introducing Knowledge Management by Bank Bukopin

Recently uploaded

Introducing Knowledge Management by Bank Bukopin