ID 5370
Heid, Ulrike: A concept for knowledge management: A comparsion of knowledge management
and information mangement / Ulrike Heid - Hamburg: Diplomica GmbH, 2002
Zugl.: Glasgow G1 1XQ, Universität, Dissertation, 1999
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1
Declaration
This dissertation is submitted in partial fulfilment of the requirements for the degree of M.Sc. in
Information Management at the Department of Information Science, Business School,
University of Strathclyde in Glasgow.
I declare that, in accordance with the University Regulation 20.1.20, this dissertation embodies
the results of my own work and that it has been composed by myself following normal
academic conventions. I have made due acknowledgement to the work of others.
I give permission to the University of Strathclyde, Department of Information Science, to
provide copies of the dissertation, at cost, to those who may in the future request a copy of the
dissertation for private study or research.
Any errors or omissions that might remain in this dissertation are entirely up to my
responsibility.
Frankfurt am Main, 8
th
December 1999
2
Acknowledgement
I would like to thank all those, who helped me in one way or another to write this dissertation.
First of all I would like to thank Laura, who helped me "polishing" my terrible English.
Likewise I thank Evelin for her friendship and encouragement during that time as well as
Debora for her never ending humour and assistance in overcoming barriers that kept me away
from writing.
Most of all I have to thank all lecturers at the department. I came to know and liked them for
their patience to explain tasks or answer questions whenever needed, for their professionalism to
present even boring subjects in a way that they proved to be fascinating and for their passion of
teaching their subjects. Especially I would like to thank my supervisor Forbes Gibb for his
guidance and support and my course director Noreen Mc Morrow who helped me to apply for
submission in a quite unconventional manner. I am thankful that everybody at the department
had a good understanding of my situation after a cancer therapy. I am very thankful to the
departmental secretaries Linda and Zakia for their administrative support during the whole
period of study.
I am thankful for my classmates Emily and Don with whom I worked hard in two projects. I
learned to know and admire them for being fabulous flexible and adaptive to new situations. I
learned a lot to improve my working style that had not been possible without them.
Lastly I have to thank my parents who supported me studying abroad. I thank my mother for her
caring love and my father for his generosity without that writing this dissertation had not been
possible.
I come to an end with my acknowledgements thanking my God for carrying me even through
hard times, having the following in mind:
"Yahweh your God goes ahead of you and will be fighting on your side,
just as you saw him act in Egypt. You have seen him in the desert too:
Yahweh your God continued to support you, as a man supports his son,
all along the road you followed until you arrived here"
(Deuteronomy
1,30+31)
3
Table of Contents
D
ECLARATION
... I
A
CKNOWLEDGEMENT
... II
T
ABLE OF
C
ONTENTS
...III
A
BSTRACT
...V
Z
USAMMENFASSUNG
... VII
L
IST OF
F
IGURES AND
T
ABLES
... IX
I
NTRODUCTION
...10
Aims and Objective ...11
Methodology...11
Why Knowledge Management?...12
Focus of the dissertation ...15
Chapter overview ...16
C
HAPTER
1 I
NFORMATION MANAGEMENT
...18
1.1 Object areas of information management...19
1.2 A framework for information management ...21
1.3 The core information process...24
C
HAPTER
2 A
MODEL FOR INFORMATION AND KNOWLEDGE
...27
2.1 "Information-model" versus "knowledge-model" ...28
2.2 "Static-model" versus "dynamic model" ...29
2.3 Working definition of information...31
2.4 Working definition of knowledge...32
2.5 The relation between information and knowledge in the dynamic model ...33
C
HAPTER
3 K
NOWLEDGE
...34
3.1 The market dimension ...35
3.2 Hard and soft knowledge ...35
3.3 Conversion between soft and hard knowledge...37
3.4 The knowledge spiral ...39
C
HAPTER
4 T
HE RELATION BETWEEN KNOWLEDGE MANAGEMENT AND INFORMATION
MANAGEMENT
...42
4.1 A model for managing information and knowledge ...42
4.2 Critical components in managing information and knowledge ...44
4.3 A framework for managing information and knowledge ...47
4.5 The process view of managing information and knowledge ...50
C
HAPTER
5 K
NOWLEDGE MANAGEMENT
...51
5.1 The concept of knowledge management...51
5.2 Facilitating knowledge management ...54
5.3 Key processes ...57
4
C
HAPTER
6 K
NOWLEDGE
M
ANAGEMENT
T
ECHNOLOGY
...64
6.1 Different approaches to classify Knowledge Management Technology ...64
6.2 The natural `epistemic' approach...65
6.3 The computer-based approach...71
6.4 Combination of computer-based and natural approach ...74
C
HAPTER
7 M
ARKET REVIEW OF KNOWLEDGE MANAGEMENT TECHNOLOGY
...78
7.1 Market size ...78
7.1.1 KM software components...79
7.1.2 Converging KM software components ...81
7.2 Knowledge Management Technology on the horizon ...83
7.3 A rough market survey ...84
7.4 A rough market analysis...88
C
ONCLUSION
...90
Findings ...90
Where knowledge management is heading ...92
A new type of manager...94
The challenge for information professionals ...94
R
EFERENCES
...96
A
PPENDIX
1 G
LOSSARY OF TECHNICAL TERMS
...104
A
PPENDIX
2 L
IST OF
K
NOWLEDGE
M
ANAGEMENT
T
OOLS
...113
R
EFERENCES FOR KNOWLEDGE MANAGEMENT TOOLS
...119
5
Abstract
A new discipline that has arisen recently as a hot new topic for management is knowledge
management. Not only is management challenged to face the strategic importance for
competitive advantage that business consultants promise, but also information professionals
who have been engaged in this subject already for quite a long time.
This dissertation focuses on a comparison of knowledge management with information
management, based on a model that embraces both information and knowledge. Founded on an
examination of the unique characteristics of knowledge, the concept of knowledge management
is introduced. To stay in synch with the pace of change in their operational and competitive
environments organisations require a balance of organisational competencies for knowledge
management and change proficiency. This requires a new kind of learning called "double-loop
learning" and implies knowledge flows across organisational boundaries. Knowledge
Management can be expected to fundamentally change the management perspective on
movements such as Total Quality Management and Business Re-engineering, forcing
management to basically rethink the theory of processes.
Another focus of this dissertation is on the role that technology plays in knowledge
management. As information professionals are traditionally concerned with technology it has
been considered to look at knowledge management technology in more detail. Technology is
one of six key factors facilitating knowledge management. The focus further on is on
approaches to classify knowledge management technology and a survey of the knowledge
management software market. The dissertation is accomplished through a glossary of the most
important technical terms in context with knowledge management as well as a list of products
from knowledge management vendors.
The conclusion summarises the most important findings. Those are that information
management and knowledge management complement each other, the first centring on the
"input-process-output" sequence, the latter around the knowledge creation of people to deal
with those processes. It becomes obvious that human resource management has to play its part
in dealing with the "soft" part of knowledge management. Thus technology has a minor role in
introducing knowledge management in an organisation though it can play an important part in
supporting knowledge-related processes. Most companies have already got in place the
technological infrastructure.
6
The aim of knowledge management applications is to connect new knowledge management
software with "knowledge silos" already in place, making knowledge available to everybody at
any time regardless of where that knowledge resides. The market survey shows that the market
for those applications is still immature. Promising products indicate the market potential that is
predicted to explode in the next couple of years.
7
Zusammenfassung
Wissensmanagement ist eine neue Managementrichtung, die vor noch nicht allzu langer Zeit in
Fachkreisen aufgekommen ist und die Managementwelt mit einem völlig neuen Denkansatz
konfrontiert. Die Herausforderung gilt nicht nur Managern, die die strategische Bedeutung von
Wissensmanagement für den Wettbewerb erkannt haben. In besonderem Maße sind auch
Informationsspezialisten gefragt, ihren Beitrag zu dieser Disziplin zu leisten, da sie bereits seit
Jahren mit dem Rohstoff "Wissen" vertraut sind.
Basierend auf einem ganzheitlichen Ansatz, der die Begriffe Information und Wissen integriert,
wird daher ein Vergleich der beiden Disziplinen Informationsmanagement und
Wissensmanagement angestellt. Nach einer eingehenden Untersuchung des Rohstoffes
"Wissen" und seiner speziellen Eigenschaften wird näher auf die Disziplin Wissensmanagement
eingegangen. Um sich der Herausforderung eines immer härter werdenden Wettbewerbs stellen
zu können, bedarf es zunehmend eines Gleichgewichts von spezifischen Kompetenzen für
Wissensmanagement und der besonderen Fähigkeit, sich geänderen Rahmenbedingungen
schnell anzupassen. Dies bedarf unter anderem einer neuen Form des Lernens, die in diesem
Zusammenhang als "double-loop learning" vorgestellt wird und einer neuen Kreativität, die ein
Umdenken bei der Gestaltung von Unternehmensprozessen erfordert.
Ein weiterer Schwerpunkt bildet die Rolle, welche die Technologie für Wissensmanagement
spielt. Da Informationsspezialisten traditionell auch sehr stark mit Informationtechnologie
befaßt sind und Technologie eine der sechs Erfolgsfaktoren für Wissensmanagement darstellt,
wird auf diesen Aspekt im zweiten Teil der Arbeit näher eingegangen. Vorgestellt werden
sowohl mehrere Ansätze, Wissensmanagement-Technologien einzordnen, als auch die
Ergebnisse einer Marktübersicht zu Softwareprodukten für Wissensmanagement. Ergänzt
werden diese Ausführungen durch ein Glossar zu den wichtigsten technischen Begriffen und
einer Produktliste, in der Produktname, Anbieter und Kurzbeschreibung für einige
Softwareprodukte kurz aufgelistet sind.
Das Hauptergebnis läßt sich wie folgt zusammenfassen: Informationsmanagement und
Wissensmanagement ergänzen sich, indem Informationsmanagement mit der sogenannten
"Input-Prozeß-Output" Sequenz befaßt ist und Wissensmanagement mit dem Wissen, das
Menschen im Kopf haben, um diese Prozesse beherrschen zu können.
8
Es wird somit deutlich, daß Human Resource Management eine Rolle spielen muß, sobald es
um den "weichen" Teil von Wissensmanagement geht. Es bleibt abzuwarten, ob
Wissensmanagement aufgrund dieser Eigenart, die es von anderen, vorrangig sachorientierten
Managementdisziplinen unterscheidet, die Sichtweise des Management bezüglich TQM und
BPR grundlegend ändert und das Management zwingt, Prozesse unter einer neuen Sichtweise zu
betrachten.
Technologie hat demzufolge nur eine untergeordnete Rolle bei der Einführung von
Wissensmanagement im Unternehmen zu spielen, eine wichtige Rolle allerdings bei der
Unterstützung von wissensverwaltenden Aktivitäten. Viele Unternehmen besitzen bereits die
Infrastruktur, um Wissensmanagement einzuführen. Die Ausrichtung von Software für
Wissensmanagement zielt deshalb auf die Integration von neuen Wissensmanagement-
Anwendungen und bereits bestehenden Informationssystemen. Jeder Mitarbeiter soll jederzeit
und unbeschränkt Zugang zum Wissen der Organisation haben, unabhängig davon wo dieses
Wissen lokalisiert ist. Die Marktübersicht zeigt, daß der Markt für solch integrierende Software
für Wissensmanagement noch nicht reif ist. Allerdings deuten vielversprechende Produkte an,
daß ein immenses Marktpotential vorhanden ist und der Markt in den nächsten Jahren enorm
wachsen wird.
9
List of Figures and Tables
table 1.1
classification of information assets [Dave98]
figure 1.1
object areas of information management [Gud96]
figure 1.2
a management model [Gud96]
figure 1.3
core information process and supporting processes
figure 1.4
information management cycle [But98]
figure 1.5
steps of information management cycle [But98]
figure 2.1
the knowledge pyramid [Raja98]
figure 2.2
model of information processing in an organisation [Vog92]
table 2.1
four levels of professional intellect [Dave98]
figure 3.1
types, sectors and stocks of knowledge in the knowledge field [Spin94]
figure 3.2
the knowledge spiral [Wiig93]
figure 4.1
a management approach to knowledge management
figure 4.2
critical components in an organisational context [Dave97]
table 4.1
the role of six components for information management and knowledge
management
figure 4.3
a framework for both information management and knowledge
management
figure 4.4
alignment of knowledge management with knowledge based systems and
knowledge based technology
figure 5.1
expanding the plan-do-phase with the plan-do-knowledge-act logic
figure 5.2
levels of ambition in knowledge management [van97]
figure 5.3
a balance: the ability to manage and apply knowledge effectively [Dove99]
figure 5.4
double loup learning process in technical innovation [Per99]
figure 5.5
elements of knowledge management [Prob99]
figure 5.6
elements of knowledge management expanded [Vog99]
figure 6.1
Kao`s five scientific domains [Prus97]
figure 6.2
example of an small semantic network [Geri99]
figure 6.3
American Express Information map [Dave97]
figure 6.4
key dimensions of knowledge management tools [Dave98]
figure 6.5
elements of knowledge base systems [Kamp99]
figure 6.6
knowledge management architecture [Mala97]
figure 7.1
distributed knowledge components [Buck98]
figure 7.2
component-based development [Buck]
figure 7.3
categories of knowledge management tools
figure 7.4
subcategories of knowledge management tools
10
Grace is given of God,
but knowledge is bought
in the market.
Arthur Hugh Clough
Introduction
Recently there has risen a new buzzword for today's manager, which is knowledge
management. Accordingly the author DiMattia asks: "Knowledge management - hype, hope or
harbinger?" [DiMa97]. The phenomenon is well known. Just a couple of years ago, an author
reviewing Touche Ross Consultant's "Information management: a survey of current practices
and trends" remarked: "Since the term `information management' became popular some years
ago, it has, like another invention of a few years earlier, `information technology', become
surrounded by uncertainty and varying interpretations" [Neg96]. Indeed management has
experienced a long history of management concepts, one following the other, always
proclaiming that the current would gain sustainable competitive advantage
1
. Marchand and
Horton illustrate this development from Paperwork Management (1900-1950) to Strategic
Information Management (that is indeed knowledge management) nowadays in their book
"Infotrends" (chapter "Strategic Information Management") [Marc86]. The authors postulate
that "it (knowledge management) must comprise of increasingly fine-tuned analysis of
industries, markets, competitors, customers, suppliers, government/regulatory behaviour and
socio-economic trends".
These information requirements go beyond the need to manage information resources and
technology inside the firm, and extend to "the management of human and intellectual resources
involved in performing these criterial functions" [Marc86]. Spinner even draws a picture of a
society that is based on a trilogy of three conceptual pillars. These are the orders of law and
economics that are accomplished by the order of knowledge [Spin94]. Although there might be
disagreement about the authors' point of view it is undeniable that a new issue has arisen upon
which management must now focus. Hope lists the ten most important issues for managers, one
of which is knowledge management [Hope99].
1
"Many highly touted management concepts have failed to kept their promises. Disappointment with
them has led firms to look for something more basic, something irreducible and vital to performance,
productivity and innovation. As a result the management community has come to realise that what an
organisation and its employees know is at the heart how the organisation functions" [Dave98]
11
"After all firms have been managing, analysing and measuring land, labor and capital for
several hundred years. By contrast we have only just begun to understand and analyse the
workings of knowledge in organisations" [Prus97].
Aims and Objective
The interest in the subject of knowledge management derives from personal involvement as an
information professional facing the challenge of a new discipline that will affect drastically the
responsibility for a range of information as well as knowledge related activities within an
organisation. The questions that arise are thus
· what is the difference between information and knowledge?
· is the management of information different from that of knowledge?
· to what extent can an information professional contribute to the introduction of
knowledge management in an organisational context?
· is the technology involved different from information technology ?
· to what extent can an information professional contribute to the introduction of
knowledge management technology in an organisational context?
To answer these questions, the objectives of the dissertation are twofold: theoretically, it is
aimed to provide a foundation that includes the relation between information and knowledge,
information management and knowledge management and a classification of so called
knowledge management technology. Practically it provides the ability to analyse the knowledge
management software that is currently available on the market.
Methodology
In order to reach the theoretical objective the dissertation is based mainly on desk research.
Resources include English and German books and articles, but only a small number of Internet
references. As part of a market survey on knowledge management software a search was
conducted in Datastar mainly for background information. The main search was conducted in
the Internet with the search engine "HOTBOT". The retrieval question was as follows:
12
"knowledge management" AND (system OR software OR tool) AND product
AND NOT "supply chain management"
AND NOT "enterprise resource planning"
AND NOT "customer relationship management"
AND NOT "strategic enterprise management"
AND time <= one month
AND language = English
The search resulted in 930 hits on September the 14
th
, in 1220 hits on September the 15
th
, in
1330 hits on September the 17
th
at 16:00 and in 1370 hits on September the 17
th
at 18:00. To
limit the results further only hits with a relevance from 86% to 99% were taken into account that
were finally about 500 hits. Most of the hits were relevant. 315 products could be identified,
either by product announcement or listing of new products.
Why Knowledge Management?
People in organisations have always sought, used, and valued knowledge, at least implicitly.
"Knowledge is what makes organisations go. Knowledge is not new" [Dave98]. What is new is
recognising that knowledge is a corporate asset, just as information had been recognised as a
corporate asset a couple of years ago
2
. This implies the need to manage it and to invest it with
the same care that is paid to other tangible assets. Companies can no longer expect to gain the
same competitive advantage from products and services that made them successful in the past.
Increasingly companies will differentiate themselves on the basis of what they know [Dave98].
The authors conclude that clearly the knowledge-based activities of developing those products
and services are becoming the primary internal functions of firms and the ones with the greatest
potential for providing competitive advantage [Dave98].
The importance of knowledge
Laurence Prusak lists six factors forcing attention on knowledge management. These are the
pace of change, the nature of goods and services, the scope of the typical firm and its market,
the size and attrition rate of employee bases, the structure of organisations and the capabilities
and costs of information technology [Prus97]. As these factors have a great deal of impact on
knowledge and its management they will be listed in more detail below.
2
"In fact, there is ample evidence that senior executives are just being struck with the notion that
knowledge is a factor of production potentially greater than the traditional triad of land, labour, or
capital" [Prus97]
13
1. pace of change: Rapid change in the business environment means quicker knowledge
obsolescence. A company increasingly has to face new emerging markets, technologies or
competitors. As long as it is able to adapt to those changes, this means more opportunities
for a company. Lifelong learning is required. To do so, it has to have a knowledge base it
can rely on and that supports this process.
2. nature of goods and services: Today's products encapsulate an "unprecedented amount of
knowledge" [Prus97]. Knowledge-intensity in products is resulting from a trend towards
"mass customisation" building greater knowledge of particular customer needs into "what
used to be a standard product" [Prus97].
3. scope of the typical firm and its market: The challenges of globalisation are alerting more
executives to the need of knowledge management than anything else. People need to know
enough about how to spot global opportunities and how business is done in that part of the
world. Geography brings challenges to spread knowledge over the company.
4. size and attention rate of employee bases: Downsizing, "the scourge of the nineties"
[Prus97], is a severe strain on organisational knowledge. By removing idle time from a
workers day, it makes new creation and acquisition of knowledge difficult. Driving away a
firms most experienced people means downsizing intellectual capital. No organisation can
take its knowledge base for granted, therefore investment in the shared knowledge base of a
company is needed.
5. structure of organisations: Businesses that have been organised along geographical shape
reorient themselves according to markets, products or processes. People in widely dispersed
locations have to share their knowledge on those matters. Networks to overcome those
boundaries and allow for knowledge transfer have to be established. "The real challenge is
to use technology in the most creative way to create the widest bandwidth for
communication" [Prus97].
6. capabilities and cost of information technology: Highly dispersed operations, global
expansion and continual change would not be possible without the ability to deploy
knowledge formally and capture and utilise knowledge via computing.
14
Benefits of knowledge management
"There is an even more powerful argument for knowledge management: the success of the
vanguard who have already taken on the challenge" [Prus97]. "Since economic returns from
knowledge have been difficult to quantify, a company has to rely on general indications of
success" [Dave98]. The Fraunhofer Institute, Production Systems and Design Technology,
Berlin, has conducted a survey of the top 1000 German and top 200 European organisations
3
,
focusing on the benefits of knowledge management [Frau98]. According to the study, managers
in European companies cited the following benefits due to a knowledge-based management
strategy
:
· productivity increases (50%)
· process improvements (19%)
· transparency of structures and processes (18%)
· increased focus on customers and improved customer satisfaction (18%)
· improvement in facilities forecasting and decision-making (17%)
· greater exchange of information (15%)
· quality improvements (13%)
· success in market leadership (8%)
· improvements in staff qualifications and staff satisfaction (7%)
Ernst & Young identify four further benefits [Chas97]:
· increased responsiveness to customer (84%)
· improved efficiency of people and operations (82%)
· improved innovation (73%)
· improved products and services (73%)
and KPMG even lists benefits such as an increasing market share, an increasing share price, an
increasing profit and creating new/additional business opportunities [KMPG98].
Davenport and Prusak discovered broadly two degrees of success for a company: The most
impressive involved the fundamental transformation of a company, based on improved decision
making, greater adaptability and flexibility and increased competitive advantage.
3
for further information on this survey, visit the Fraunhofer Institute's web-site: www.fhg.de
15
Other fundamental benefits are improved legal protection for intellectual property, sharpened
customer focus and higher return on human capital investments [New96]. The other operational
improvement was limited to a process or function like new product development, customer
support, education and training, software development and patent management [Dave98]. In
contrast to business process re-engineering that focuses on cost savings, knowledge
management appears to focus on revenue and growth
4
[Ven97].
Focus of the dissertation
"Considered by some as a fad and consequently an attempt doomed to failure or to
disillusionment, knowledge management stumbles today on lack of common understanding,
agreed standards and proven processes" [Ross98]. Firstly the dissertation therefore aims at
reducing "uncertainty and varying interpretations" [Neg96] about knowledge management by
giving a well-founded survey and a rough comparison of its features with those of information
management.
"It`s like reengineering after (Michael) Hammer`s book came out" Art Middlebrooks
5
is cited.
"All the management consultants repackaged their existing methodologies under the topic of re-
engineering, or downsizing or rightsizing. Companies are renaming or repackaging existing
applications as knowledge management tools" [Cune99]. Therefore Thomas Davenport and
Laurence Prusak stress that they will "resist the tendency in management books to tell that
knowledge management is totally new, that one must drop everything else and adopt our
nostrum, and that you can't possibly do it without lots of high-priced help" [Dave98].
Knowledge management draws from existing resources that an organisation may already have
in place. It may probably already do something that might be called knowledge management.
All that is needed is to expand or improve those practices [Dave98]. According to that statement
the dissertation will secondly provide a guideline for knowledge management focusing on core
competencies and core processes. When introducing knowledge management in an organisation
it can serve as a starting point to evaluate existing knowledge management resources and find
out about actions that have to be taken.
4
for a knowledge benefit chart of examples for knowledge management benefits visit the KRI web-site
at www.knowledgeresearch.com/knowledge_benefits.htm
5
a partner at Kuczmarski & Associates, a consulting firm in Chicago
16
Corresponding to market reports (e.g. KMPG) the smallest part of knowledge management is
technology. Therefore a profound review of an approach for appropriate technology that is
based on the concept of knowledge management will provide a guideline assessing current so
called "knowledge management" technologies available on the market. Knowledge management
encompasses several technologies that are not new. Indeed "its not the separate pieces that are
new, then, but rather the way they're coming together as a "seamless puzzle" [Cune99]. To start
at any point with knowledge management, even small companies can jump on the bandwagon.
"Being successful in building up a functioning information as well as knowledge management
and running it efficiently, a company will gain advantages to stand against hard competition in
the market" [Hölb98].
Chapter overview
Chapter 1 introduces the reader to the concept of information management, providing a general
framework that will help to compare it with knowledge management and focusing on the
information "life cycle". The conclusion that information management has been concerned with
knowledge as well leads the reader to the search of a model incorporating both information and
knowledge.
Chapter 2 provides an overview of four models differentiating information from knowledge. It
gives then a working definition for information and knowledge and applies that definition to one
of those four models that will serve as a starting point for the comparison of knowledge
management and information management.
Chapter 3 focuses on knowledge and its characteristics in more detail. It describes the types of
knowledge and the process of knowledge creation in a company according to their market
dimension. The separation of hard from soft knowledge is introduced and will guide throughout
the dissertation.
Chapter 4 compares the concept of knowledge management roughly with information
management referring to the general framework introduced for information management and
pointing out the similarities concerning main components as well as differences like
methodologies. The conclusion of that comparison results in the realisation, that knowledge
management and information management complements each other and should be managed in
alignment with each other.
17
Chapter 5 focuses on knowledge management in detail. One focus will be on the facilitators for
knowledge management in an organisation and the renewal of point of view on processes that is
needed. The other focus will be parallel to the outline of information management on the core
process of knowledge management.
Chapter 6 explains the role of technology for knowledge management. It then goes on to
provide an approach to classify technology. Referring once more to the differentiation of hard
and soft knowledge it outlines the natural approach based on cognitive psychology and the
computer approach and introduces a third group of communication technology that is
introduced as "knowledge enabling technology".
Chapter 7 provides a rough market survey on knowledge management software conducted by
several business consultancies and the findings of an Internet search. Finally conclusions of the
comparison of results drawn from the market survey with those findings are given for each
subcategory of knowledge management software.
The conclusion summarises the most important findings of the dissertation. It then looks at
where knowledge management is heading in the future and finishes with consequences that arise
for management and also for information professionals.
18
Chapter 1 Information management
Information management as a discipline includes organisational-wide policy-planning, the
development and maintenance of integrated systems and services, the optimisation of
information flows and the harnessing of leading edge-technologies to the functional
requirements of end-users [But98]. This definition has to be understood on the basis that the
efficient and effective fulfilment of an organisation's mission and plans presume an inhouse
information processing and broking as well as an exchange of information with the outside
world [Gud96]. Efficiency is defined as the ratio of input through output - to reach a given
target with the smallest possible resources - and effectiveness is defined as the ratio of output
through planned output - aimed at reaching the best result with given resources. Information
management aims at levering the costs for those resources as well as maximising the results.
Vogel identifies two types of information management. One type considers information
management as a culture of management that is driven through a consciousness of information
in general. The other type is called information resources management that has a great deal of
impact on organisational structures and processes. As there is widespread confusion in
differentiating information from knowledge the dynamic aspect of information resource
management is well stressed by Marchand [Vog92]. The author stresses the aspect of
information resource management as that of the management of information processes as well
as quantity and quality of knowledge usage of individuals that refers to the information
acquisition and application in the dynamic model.
As far as information is handled as a resource, its management generally embraces the planning
and control as means for co-ordination of this resource. Vogel identifies four strongly
interrelated dimensions of co-ordination [Vog92]:
· internal need for information resources with external market of resources
· standardisation of provision of resources within the different organisational units
· the harmonisation of different types of information resources
· an investigation of the efficiency and effectiveness in relation to its costs
Every enterprise is driven by information on environmental trends and issues, products,
markets, standards, procedures, regulations and customers. In addition it exploits data on its
own internal performance and functioning (e.g. cash flow). In the following a classification of
information assets of an organisation is given alongside the question, how subsistence
information can be converted into high-yield information [Dave98].
19
tangible
intangible
current
customer database
competitor files
publications
research
specialists
corporate memory
copyright
invisible colleagues
consultancy skills
quality of service
fixed
telecommunication
backbone
information systems
libraries (book stock)
networks
trademarks
hallmark
table 1.1: classification of information assets [Dave98]
1.1 Object areas of information management
Arthur D. Little has made an effort to classify information management and to determine its
main domains in defining three object areas of information, techniques of informing and
technology itself [Gud96]. The discipline of information management is occupied with the
integration of those areas
6
. The first domain of information treats information management as
aimed integration of information into working processes. Information is dealt with in the sense
that it is organisational knowledge and a basic resource, a competitive factor and a basis of
rationalism of organisational activities. It is aimed at
· acquisition of the right information at the right time in the right place
· directing and control of information activities and behaviour
· connection of production and service processes with information activities
· a better fulfilment of an organisations mission through information management
The second domain of techniques of informing is about the development of procurement,
acquisition, compilation and storing techniques and methods of information (and furthermore of
knowledge). The third domain refers to the usage of information and communication
technologies to support the first two domains. It refers also to the development of relating
systems in order to rationalise the potentials inherent in modern technologies for the benefit of
the organisation.
6
compare with the model of information management of Krcmar [Roep97]
20
Out of these considerations comes the conclusion that information management is more than
just the management of information, it is far more occupied with the management of those
object areas listed above. As management "in general" it can be understood as an organisational
process in the sense of achieving systematically goals, strategies and activities as well as an
instrument of management in the sense of an improvement of decision and information
processes [Gud96]. The following graph shows the classical management functions.
resources:
people
technology
methods
information
planning
organising
directing
controlling
mission
plans
figure 1.2: management model (adapted from Terry/Franklin in:
W.H.Staehle and modified) [Gud96]
information activity as
organisational activity
information
techniques
of informing
technology
· Information as reason-oriented knowledge
· Information as a foundation for rationalism
· Information as day-to-day background knowledge
·
Information as an activity
· techniques of information broking
· techniques of documentation
· techniques of information products and acquisition
· information technologies
· communication technologies
· information and communication systems
figure 1.1: object areas of information management [Gud96]
21
1.2 A framework for information management
Along the three management tasks of planning, directing and controlling resources it is helpful
to consider information resource management on three levels of co-ordination in an
organisation. Those three levels are structural, practical and specific information resource
management. On the structural level, institutional conditions have to be created and the
instruments for planning, directing and control developed. On the practical level the instruments
are coming into action and on the specific level we will find a detailed plan for each single
resource. In the following a short description of every level is given [Vog92].
1.2.1 Structural resource management
Introduction strategy
The structural conditions in an organisation for information management have to be placed
7
at
top management level. The result will be the role of knowledge management for the fulfilment
of an organisation's mission.
Development of planning instruments
Information planning takes place on three levels in an organisation that are the strategically,
dispositive and operative level. On the strategical level the fields for action and activities are
chosen, on the dispositive level the offer and demand for information resources are analysed and
on the operative level the demand for those resources as well as activities are made concrete for
a short period. The plans of each level can be classified into a plan to reach a defined goal, a
plan for measures and for resources referring to a department, a division or a project. It is of
high relevance that these plans are integrated into the planning of organisational structures.
Development of planning methods
Along the priority of either integration of organisational structures with information processing,
time and intensity of required activities for information processing or analysed fields or
divisions for action for information processing adequate methods can be classified. Those
methods are recommended series of steps and procedures to be followed in the course of the
planning instruments chosen. Krüger/Pfeiffer
8
identify three components of methods [Vog92].
The first component is a portfolio-analysis to identify the success position for each business
division, the second is a portfolio-analysis to identify the information intensity for each business
division and the third component is a cross table of both that identify the scope and speed of
7
see also [Pryt98]
8
see also [Vog92]
22
development of information processing for each business division. Methods can be swot
analysis, Porter/Millar Matrix, branch-analysis, Porter's "five-forces" model, Porter's value
chain and others [Gibb97].
Development of instruments for control and directing
Planning methods have to be completed through the control to which degree a plan has been
completed. This can be achieved through the use of reports under review, cost accounting
systems and budgeting controlling. The recording of information processing provides the
decision-makers with the planning, directing and control of these instruments in monetary
terms.
1.2.2 Practical resource management
Information policy
In contrast to an information strategy that focuses on a single department or division,
information policy focuses on the whole organisation [Vog92]
9
. Along the results of the
strategic phase general principles that are valid for the whole organisation concerning
information processing have to been considered to reach the organisation mission and plans.
This includes a definition of the position and role of information processing and the expected
performance of information resource management
Holistic concept
Derived from the strategic and functional demand of all organisational divisions the
requirements for information processing have to be defined and due to market conditions and
organisational stock to be adapted.
1.2.3 Information specific management
Knowledge
Insufficient supply with knowledge can only be identified through acquisition and analysis of
information need inside the organisation. Tools are to be seen in Classification, Thesauri and
data dictionaries. Information needs have to be compared with the available internal and
external information potential to satisfy such a need. The aspects are listed below:
· analysis of information need
· recording and valuing of information potential
· exploitation of external information potential
9
Elisabeth Vogel refers to a couple of authors among others Horton 1982 and Marchand/Horton 1986,
who place information policy on the practical level
23
Technology
The design of the resource technology requires the activities as follows to be exploited to its full
potential and along the requirements derived inside and outside the organisation:
· survey of internal stock of technical systems
· observation of the market for information and communication technologies
· investigation of demand for technology
· definition of technical standards
· development of strategies for demand of technologies
· access methods for knowledge
Personal
A task of information management is the stimulation of people's motivation and qualification of
using technology. This requires a survey of available know-how, development of training
programs and a linkage of information resource management to human resource management.
Organisational conditions
An audit of structure and processes for organisational information processing has to be
conducted in order to reorganise structure as well as processes and thus contribute to the
postulated mission and plans of the organisation.
Knowledge- and information flows
The design of adequate information systems and processes requires an organisation wide
analysis, optimisation and evaluation of relationships between processes and dependencies
between people, processes and knowledge repositories.
Process of system design
The resources knowledge and technology are integrated into information systems. This requires
the choice of methods for system analysis, development and project management in order to
reach a sufficient system development. Software tools that are being discussed are programming
languages of the fourth generation. The integration of system users into the development
process is seen as an important step.
Information processes
The use of information systems has to be improved and the support of the acquisition of
information for an improved problem solving of an organisation has to be achieved. An instance
that links an information system and an user can be established either by an information broker
or an intelligent system.
24
1.3 The core information process
From that framework that describes broadly the task of information management several types
of processes can be derived. This process is concerned with people, technology, organisational
structures, values and culture, management style, control mechanisms (budgeting) and processes
themselves. These are all factors that influence the informationcore process, transforming data
into information and knowledge for the benefit of the organisation. According to that process
there is an input phase, a management phase and an output phase. Along the different phases the
role of an information manager differs. In the input phase he has the role of a prospector and
refiner who develops, accesses and stores data that has to be categorised as either useful or
useless. In the management phase he takes over the role of a processor and cleanser who
manages efficiency, effectiveness and empowerment of information processing and considers
the value of information. In the output phase he finally acts as a transporter and communicator
who takes ideas, concepts and information and communicates them clearly to others [Gar97].
Depending on the point of view this process consists of steps that have to be completed in order
to accomplish the whole process or a set of sub-processes that have to be completed also. Those
sub-processes can be best demonstrated with the following graph below, which form a cycle of
processes. Along this graph information management is not only concerned with those
processes [But98] but also with the management of resources that support those processes
[Vog92]. Some core sub-processes are performed by individuals, others by the organisation.
Information process
figure 1.3: core information process and supporting processes
process
processes
process
processes
process
processes
control
mechanism
Processes
(reorganisation)
technology
people
organisational
culture
management
style
supporting
core
information
knowledge
process
information process
processes
data
25
Describing those sub-processes in more detail it becomes clear why organisations might have
difficulties in separating information from knowledge. The cycle of information management is
thus described as being engaged with information and knowledge.
relevant knowledge
reading
information
information recognition
subjective
knowledge
subjective knowledge
re-interpretation
public
knowledge
public knowledge
reviewing validated
knowledge
validated knowledge
release
knowledge domain
knowledge domain
re-structuring
resource
bank
resource bank
retrieval relevant
knowledge
figure 1.5: steps of information management cycle [But98]
Davenport proposes a holistic management of information with a human centred approach to
address this paradox. The author argues that early on information management involved four
approaches of
· unstructured information
· intellectual capital or knowledge
· structured information on paper
figure 1.4: information management cycle [But98]
processes
performed
by individual
Processes
performed by
organisation
retrieval
reading
recognition
re-inter-
pretation
reviewing
release
restructuring
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- , 1999, A concept for knowledge management: A comparison of knowledge management and information management, Hamburg, Bedey Media GmbH, https://www.diplom.de/document/220932
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