definition of knowledge management

Week two of the BIS4410. (Definition of knowledge management)
Definition of knowledge management:“Knowledge management is the process of systematically and actively managing and leveraging the stores of knowledge in an organization, it is also the process of transforming information and intellectual assets into enduring value.” laudon (1998)
according to polyani (1967) “Knowledge can be either defined as tacit or explicit. While knowledge is difficult to record and document is called tacit knowledge. On the other hand, knowledge which is easy to documented is called explicit. In other word, explicit knowledge can be easy to communicated, while as, tacit can only be communicated by practice.

Alternatively Nonaka (1991) stated that knowledge management has three categories. Knowledge creation, knowledge dissemination and knowledge utilisation. In my opinion, knowledge management is a process for the organization to exploring and sharing knowledge, then use the assets to improve the performance. Organization wise, the most valuable function for knowledge management is how to transform the tacit knowledge into explicit knowledge and put the explicit knowledge into day to day practice, in order to get improvement in their performance.

During the class we argued that, does the knowledge management has to have‘storage’. the disagreement was coming from Tubo Azeez’s group. Rest of the class are agreed that, knowledge management is talking about the creating, storing, and distribution of the knowledge, according to Wigg (1997). However, Tubo was arguing that, storage would become pointless if the knowledge is communicated between tacit to tacit. In my opinion, knowledge management might not have the storage, if the knowledge is sharing between tacit to tacit. However, the performance of the knowledge management will be in a limited level. What is more, there is a possibility that, the knowledge will be shred with optional, if the knowledge is from tacit to tacit. I am not arguing that the knowledge management must have storage; what I try to say is, if there is a different level of knowledge management according to the performance, then the knowledge management without the storage will provide lower performance. In other word, a good knowledge management will contented a storage.

For example, Yum-IT in Pizza Hut (UK) ltd. Yum-IT is a combination of a knowledge management system and an information system. The information system part helps to the better management of the organization, and the knowledge management system helps to share the ideas and concept, in order to gain good result. Information system is installed in each store and the knowledgebase can be access from each store through intranet. The knowledgebase are called ’how to run a great restaurant’, IT department will update the knowledgebase every week. There are different section within the knowledgebase- customer issues, staff issues, legal issues, sales forecasting, product standard etc…. Sales forecasting. Provided the wrong sales forecast can directly affect the store performance. Yum-IT will store everyday sales, and cost. The system will generate a suggestion forecast. At this stage, the manager can make their decision based on the company target, system suggestion sales, and the sales of last year. The system will generate an e-mail sent to the area manager if the branch manger no accepts the suggested number. With in the e-mail, the branch manager needs to explain the reason for changing the suggested sales, (I.e. local event, new booking etc). The cost allowance. Soon as the sales forecast is been put into the system, it will automatically calculate the allowance of the cost of labour and stock. Below 20% of the sales will be the allowance of the labour cost. 25% of the sales will be the allowance of the stock cost. Another 5-8% will be used on the additional cost (gas, water). The system will not accept manage to make up the forecast above those allowance unless the manager increase the forecast of the sales. After the cost of the labour and stock been calculating. The system will generate the staff timetable and food order based on the pervious week. The branch manger can also make a change of those timetable and food order, however, an e-mail will be generate for the branch manager to explain the reason behind those changes. After the whole forecasting process completed, the system will generate two copies of report of all the data. One will be sent to the area manager, and the report will be uploading to the intranet in two weeks time along with the area manager’s note (I.e. over forecasted due to the big number of the booking cancellation). The report can be view or download from the intranet under the section of ‘how to run a good store‘. Those reports are very useful for other branch manager to avoid the same problem. What is more, the concept will not only limited to the figure but also the logically scene and experience behind it. These can be found when the manager explains the reason for changing the system suggestion and the communication between him and the area manager.

Within this example, the knowledge is created when the manager generated the forecast, and tacit knowledge will transform into explicit knowledge when the manger sent the e-mail to the area manager with all the forecast information. Last, the knowledge will be shared through the intranet

Ref: Michael Polyani, (1967) the tacit dimension, garden city, NY: anchor books.

Nonaka,I. (1991), ‘ the knowledge-Creating Company’, Harvard business review on knowledge management, 1998.

Laudon, K.C. & Laudon, J.P.( 1998) Managing Information Systems: New approaches to organisation and technology, Fifth Edition, Prentice Hall, Upper Saddle River, NJ.

Wiig.K.M (1997), ‘knowledge management: an introduction and perspective’ journal of knowledge management, vol. 1, no, 1.
http://www.kmconnection.com/What%20is%20knowledge.htm