Managing knowledge

Diplomarbeit von Katrin Lenz

Abstract:

„In an economy where the only certainty is uncertainty, the sure source of lasting competitive advantage is knowledge.” Peter Drucker (1953) Companies like Microsoft, Netscape, Coca-Cola and Yahoo can be found under the top U.S. companies with the highest market values in 1999. The market value represents the measure of value that the investors and markets associate with the company. However, these companies are not valued for their tangible assets (buildings, inventory, etc.), they are valued for something which cannot be shown on a balance sheet: their intangibles. These include brand recognition, Patents, customer loyalty, innovative business ideas, past achievements, etc. These companies are valued for the knowledge they possess. However, knowledge is of little value, if it cannot be found when needed. Therefore, a successful knowledge management concept is of crucial importance for these companies.

The knowledge management market is growing rapidly and it will continue to advance over the next years. Knowledge management is still a relatively young field with new concepts emerging constantly. Most knowledge management initiatives have focused entirely on changes in tools and technologies, such as intranets and Lotus Notes. But knowledge management is more complex: it covers everything the company does to make knowledge available to everyone.

The twenty-first century gives companies the tools and connectivity to easily obtain, share, and act on information quickly. Knowledge management uses these possibilities and recent studies showed that companies gained a competitive advantage by implementing it. According to Accenture research, a well implemented knowledge management process can improve employee productivity by an average of 60%.

Often, knowledge management is seen as storing documents in a database, thus hoping to enhance knowledge sharing through the implementation of technology. But to successfully apply knowledge management, companies need to implement a process of motivating and inciting people to share information. The old saying „Knowledge is power“ is still popular. The people who are hoarding their knowledge believe that it makes them irreplaceable. However, real power does not come from knowledge kept, but from knowledge shared. People are expected to cooperate, to be open, to participate within the new economy, but resistance can be expected.

Obviously, knowledge management is a combination of various factors, namely: a vision, cultural change, motivating factors (rewards, incentives), an easy-to-use system, a committed workforce, etc. Knowledge management is therefore a result of a balance between the human-resource and the technology-based approach. Information technology is important in knowledge management, but it plays a rather supporting role.

There is no knowledge management concept that fits every organization, but there are several important features, one finds in every successful knowledge management initiative. The aim of this research is to identify these and to derive a basic knowledge management concept to be implemented in a management consultancy (Knaupp Scharpff Associates GmbH).

After an explanation of the basics of knowledge management and an analysis of the key areas, the phases of implementing a knowledge management concept are being described. Having described the theoretic background, different knowledge management concepts are being illustrated. The information about these concepts has been gained through self-conducted interviews with leading management consultancies (Accenture, OC & C Strategy Consultants and Arideon AG). These concepts are then analyzed and summarized in important key areas to derive a basic knowledge management concept to be implemented in a management consultancy (Knaupp Scharpff Associates GmbH).

Table of Contents:

I.	EXECUTIVE SUMMARY	3
II.	TABLE OF CONTENTS	4
1.	Crossing the threshold to the age of ideas	6
1.1	Knowledge as a competitive advantage	6
1.2	Knaupp Scharpff Associates GmbH	8
1.3	Aims and Objectives of the study	9
1.4	Summary	9
2.	What is knowledge management and how can it be implemented?	10
2.1	Knowledge management - The basics	10
2.1.1	From data to knowledge	10
2.1.1.1	Explicit versus implicit knowledge	11
2.1.1.2	Individual versus collective knowledge	12
2.1.2	Knowledge management - What it is	12
2.1.2.1	Driving Forces behind knowledge management	14
2.2	How to implement a knowledge management concept	15
2.2.1	Four key areas of knowledge management	15
2.2.1.1	Structure	15
2.2.1.2	Processes	16
2.2.1.3	People	18
2.2.1.4	Tools	23
2.2.2	The four phases of implementing a knowledge management concept	27
2.2.2.1	Infrastructure Evaluation	27
2.2.2.2	Knowledge management system analysis, design and development	28
2.2.2.3	Deployment	28
2.2.2.4	Evaluation	28
2.3	Summary	28
3.	Methodology	30
3.1	Problem Definition	30
3.2	Aims and Objectives	30
3.3	Research Questions	30
3.4	Research Design	31
3.5	Access to Data	31
3.6	Tools of Analysis	32
3.7	Limitations	32
3.8	Summary	32
4.	Analysis of the Interviews	33
4.1	Accenture	33
4.2	OC & C Strategy Consultants	45
4.3	Arideon AG	49
4.4	Knaupp Scharpff Associates GmbH	56
4.5	Summary	57
5.	Findings	58
5.1	General Findings	58
5.2	Structure	60
5.3	Processes	62
5.4	People	64
5.5	Tools	66
5.6	Summary	68
6.	Conclusions	69
7.	Recommendations	71
8.	References	74
9.	Glossary	77
10.	Appendices	80
10.1	Interview Guideline	80
10.1.1	Interview Arideon AG	81
10.2	Additions to Literature Review	92
10.2.1	The Information Life Cycle	92