Knowledge Management

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1 Knowledge Management Organizing Knowledge Based Enterprises Igor Hawryszkiewycz Head of the School of Systems, Management and Leadership at the University of Technology, Sydney, Australia macmiuan

2 Contents List of Figures and Tables Foreword Preface Acknowledgements xvii xxii xxiv xxvi Part I Knowledge Management within Business Communities 1 The Business Environment 3 1 Introduction Business and strategy 5 2 Processes as a way of doing business Business process innovation 6 3 The emerging nature of business Business activities Processes in business networking Greater emphasis on knowledge 8 4 The emerging nature of knowledge-based processes Providing services to customers Collaboration and knowledge management 10 5 Dynamic environments and complex adaptive processes Businesses as collections of processes 12 6 Summary Questions and exercises 13 Some further readings 13 2 Business Processes and Activities 14 1 Introduction 14 2 Describing a process as'a set of connected business activities Business activities and processes Process emergence Terminology for describing processes Processes in business networks 20 3 Introduction to knowledge management and process Combining knowledge management and business activities 23 vii

3 4 Technologies to support knowledge-based processes 24 5 Collaboration and team work Teams and communities 26 6 Communities and knowledge management Developing social capital Linking technologies and social communities Linking technology and process 32 7 Building communities on the internet Community networks and networked communities Communities sharing knowledge and information Building personal communities Extending to specialized communities of practice Agricultural developments Collaborative knowledge networks Trends in business application 38 8 Summary 38 9 Discussion questions 39 Case study I - Data collection 40 Some further readings 41 3 Connecting People Within Business Activities 42 1 Introduction 42 2 Connectivity - Keeping track of everything Improving connectivity - Context and awareness Context Awareness The common options for keeping track of contexts 46 3 Connectivity and interactivity The role of technology in improving productivity 47 4 Social networking and social network diagrams Extending social networks to create enterprise social networks 49 5 Types of business activities Kind of work carried out by people 51 6 Combining social networks and business activities Leadership roles for transactive work Coordination role Facilitator role in collaboration Advisory or expert roles Dual roles 59 7 Choosing collaboration structures 59 8 Using the enterprise social network in process design Simplifying connectivity Decomposing activities 62

4 ix 9 Other classifications of work Management levels Summary Questions and Exercises 64 Case study II - Brokering in the sales process 67 Some further readings 68 4 Collaboration, Knowledge and Innovation 69 1 Introduction 69 2 The role of collaboration in leveraging knowledge management and innovation What to change to encourage innovation? 71 3 What is knowledge and knowledge management? Tacit and explicit knowledge Describing knowledge Knowledge metaphors Knowledge assimilation 74 4 Activities in developing knowledge Finding knowledge Retaining knowledge Transferring and sharing knowledge Directions for knowledge management Nonaka's knowledge creation process Davenport and Prusak Forming perspectives Enabling knowledge sharing and creation Nonaka's enablers 81 6 Implementing strategies for knowledge management Codification and personalization Steps in managing knowledge Knowledge officers 83 7 The innovation process Innovation metaphors 84 " 7.2 Innovation processes ' ' Adoption of innovation Strategic communities in planning Strategies for innovation through open networks Proactively inn'ovating new strategy A generic model for responding to situations 90 8 Some guidelines for matching collaboration to business activities Awareness - The simplest form of collaboration 91 9 Guidelines for collaboration in business activities Example - Integrative task focused activity - Developing reports 91

5 10 Combining activities into larger networks Emergent large-scale activities - Combining planning, coordination and task execution Example - Assessing emergency situation Summary Questions and exercises 97 Case study III - Installing and managing back-up power installations 97 Some further readings 99 5 Culture and Knowledge Sharing Introduction Globalization What is culture? Describing culture Context and time as part of culture The relationship of community and individual culture Institutional cultures Professional cultures Communication and culture The importance of language in communication Language and the Internet The influence of the Internet Implication for website design Culture and knowledge sharing The influence of social factors The influence of intercommunity factors The importance of trust in knowledge sharing The influence of technology Reducing resistance to knowledge sharing Changing organizational culture The role of human relations (HR) policies Building trust " Organizing communication across the enterprise Sharing knowledge across global organizations Facilitating intercommunity knowledge sharing Project coordination Cross-functional teams Organizational problem solving Summary Discussion questions 118 Case study IV - Global marketing of 'Green' cosmetics 119 Some further readings 121

6 6 Social Software Introduction Recreational use - The social networking sites Early blogsites Facebook and MySpace The economies of personal sites Use of blog hosts Professional use Extending to business applications Organizing social software for business applications Maintaining awareness Communities of practice and social software Knowledge hubs The issue of governance Capturing best practices Guidelines for implementation Discussion boards Blogs Applications of blogs to business Sharing knowledge through blogs What are the standard terms? Who does the tagging - A governance issue? Who does the searching? Wikis Using social software to capture knowledge Ultimate goal - Integration of services to support knowledge communities Sharing knowledge across business activities What of the future? Summary Exercises 143 Some further readings 144 Part II Current Business Systems 7 Today's Business Applications Introduction J Traditional business models Business units in material flow Achieving competitive advantage Adding value Enterprise resource planning The impact of ERP systems ERP systems and knowledge management 154

7 4 Framework for electronic commerce Business innovations using knowledge management Customer relationship management CRM processes CRM services Call centers as a way of providing customer service Call center software and services Personalized call center services Web-based call centers E-procurement Tendering processes Business processes for managing responses to tenders Economics of supporting tendering processes with collaborative technologies Business networking Extending to supply chain management Extending collaboration to supply chains Disaggregation and vertical integration Example in telecommunications Example in electric power generation Trading hubs and portals Extending hubs to the tendering process Integrating services into business processes Summary Questions and exercises 177 Case study V - Building teams for responding to tenders 178 Some further readings 179 Achieving Dynamic Capability Through Business Networking Introduction " Business characteristics and trends Greater emphasis on collaboration Creating value chains Collaboration and knowledge sharing in value networks General business process requirements Process-oriented collaboration Where is the complexity? Project-based organizations Extending to partnerships The importance of trust in business relationships 189

8 xiii 5 Outsourcing Deciding what and whether to outsource Choosing a vendor or provider Reducing risk Arranging the contract Maintaining the relationship Outsourcing business processes Managing outsourcing Collaboration in outsourcing Product development The apparel industry - An example of dynamic capability Product development activities and processes ERP systems - Manufacturing resource planning Collaboration in product development Extending product development to services Services to clients Delivering dynamic capability to business services Finding experts or people to work with Services for fault tracing Technical services Summary Discussion Questions 205 Case study VI - Responding to trouble reports in supply chains 206 Some further readings 207 Part III Organizing for Knowledge Management 9 Modeling Business Activities / Introduction Revision of business activity model The importance of roles 213 "2.2 Some examples of BAMs " Going into more detail Modeling the process perspective Modeling methods for predefined processes Methods for non-predefined processes Informal methods Modeling the organizational perspective Modeling the knowledge perspective Modeling as part of system development System development methods System development methods for predefined processes Open methods 227

9 Notification schemes 6.5 Implications for managing system development Summary Exercises Some further readings Th«: First Design Step: Defining Requirements Introduction The evolving business architecture Methods for defining requirements 3.1 Choosing your own design process 3.2 Design choices - Who is the driver 3.3 Cross organizational issues Some techniques being proposed for open design processes 4.1 Metaphors 4.2 Design knowledge and patterns 4.3 The importance of having a vision 4.4 The importance of alternatives Option 1 - A totally open and bottom-up approach Option 2 - A systematic (Up and Down) approach 6.1 The systematic approach - What are the design steps 6.2 Integrating socio-technical analysis into the systematic approach Developing intention (Phase 1) 7.1 Phase 1 Design steps Example - A global marketing services (GMS) organization 8.1 Business activities 8.2 Information 8.3 Social networking 8.4 Alternative 1 - Outsourcing selected non-core processes 8.5 Alternative 2 - Specializing internal operations 8.6 Alternative 3 - A strategic change - Opening branches * or franchises 8.7 Making the decision Summary Questions and Exercises Case study VII - Organising experts Some further readings 11 Creating the Business Architecture: Combining Activities, Knowledge and People 1 Introduction 2 A Blueprint to describe the business architecture 3 The Desien orocess to soecifv new business architecture

10 4 Starting with business activity design Developing the top-level activity diagram Refining the activities Look at alternatives Including the social perspective Designing individual business activities Questions to ask during activity design A simple example - Part ordering Another example - Consulting services Designing the top-level structure - GMS example Identifying and organizing business activities Defining the enterprise social network Designing the database and collaborative knowledge base Defining scenarios Scenarios Scenario for activity in contract development Summary Continuation of case studies 286 Some further reading 286 Part IV Supporting Technologies 12 Specifying Electronic Workspaces for the Business Architecture Introduction Networks of electronic workspaces Specifying workspace requirements Specifying workspace components Workspace dynamics Managing workspaces / Workspace governance Using business architecture models to specify electronic workspaces Example - GMS - Marketing organization Creating the workspace Summary Questions and Exercises 300 Some further readings I Technologies for Business Processes Introduction Defining Technology Requirements Technology trade-offs The ERP component Document management systems 307

11 xvi CONTENTS 3.2 Workflow management systems Setting up a process workflow Setting up ERP systems Extending ERP Middleware technologies for knowledge support Trends to fully customizable technologies Web Service oriented architectures Lightweight platforms for constructing workspaces Lightweight exchange Lightweight collaboration Lightweight workflow Technologies for lightweight workspaces Choosing technologies to support business activities Example - Marketing organization example A more detailed specification of the services required for work processes Summary Continuation of case studies 320 Some further readings Connecting Enterprises Introduction Typical industry wide networks Creating the business connections Virtual organizations Emerging objectives Growing cross-organizational relationships Strategic engagements, Business networks planning The organizational perspective - Develop a joint vision Set objectives and priorities by defining projects Define organizational arrangements 330 6^ The social perspective - Developing a connection plan Technical architecture to support enterprise integration Summary Projects 333 Some further readings. 333 Glossary of Some Often Used Terms in Modeling and Design 335 Bibliography 336 Index 343

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