Research Paper INNOVATION IN INFORMATION AND KNOWLEDGE MANAGEMENT

Contents ix

Contents

Preface v

Part I Introduction: Exploring the Role of Technology
in Knowledge Management

Chapter 1 The Rise of Knowledge Management:
In Pursuit of Excellence 3
1.1 Introduction 4
1.2 Drivers of KM 5
1.3 Outcomes of KM 11
1.4 KM Frameworks 13
1.5 Conclusions 17

References 17

Chapter 2 Managing Knowledge with Technology:
Mission Possible 21
2.1 Introduction 22
2.2 Technology and Integrated KM 23
2.3 Categorisation of Technology Roles 25
2.4 Issues and Challenges for Practice and Research 32
2.5 Conclusions 35

References 36

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x KM: Through the Technology Glass

Part II Codification Technologies: Supporting
Knowledge Storage and Finding

Chapter 3 Web-based Knowledge Records:
Empowering Societies 41
3.1 Introduction 42
3.2 The World Wide Web 43
3.3 The Concept of Knowledge Record 44
3.4 Case study: Exploring Australian Web Sites 45
3.5 Issues and Challenges 50
3.6 Australian Standard Guidelines 52
3.7 Conclusions 53

References 54

Chapter 4 Structured Knowledge Repositories:
Building Corporate Memories 57
4.1 Introduction 58
4.2 Concept of Knowledge Repository 59
4.3 Facilitating Knowledge Extraction from

Repositories 60
4.4 Empirical Study 63
4.5 Lessons Learned 67
4.6 Conclusions 70

References 70

Chapter 5 Knowledge Maps: Locating and
Acquiring Expert Advice 73
5.1 Introduction 74
5.2 Understanding Knowledge Maps 75
5.3 Competency Map Description 78
5.4 Empirical Test 79
5.5 Conclusions 85

References 86

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Contents xi

Chapter 6 Knowledge Discovery Tools: Application
in Associations Analysis 89
6.1 Introduction 90
6.2 Knowledge Discovery from Data 91
6.3 Empirical Study 93
6.4 Lessons Learned 98
6.5 Conclusions 101

References 102

Part III Personalisation Technologies: Supporting
Knowledge Creation and Sharing

Chapter 7 Interactive Idea Generator: Stimulating
Creative Thinking 109
7.1 Introduction 110
7.2 Creativity in Decision-Making 111
7.3 Tool Description 115
7.4 Tool Evaluation 118
7.5 Conclusions 122

References 123

Chapter 8 Electronic Mentor: Fostering
Knowledge Development 125
8.1 Introduction 126
8.2 Learning from Feedback and Guidance 127
8.3 Empirical Study 130
8.4 Conclusions 135

References 136

Chapter 9 Knowledge Sharing Technology:
To E-talk Or Not to E-talk? 141
9.1 Introduction 142
9.2 Technologies for Knowledge Sharing 143
9.3 Empirical Study 145
9.4 Conclusions 150

References 151

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xii KM: Through the Technology Glass

Chapter 10 Virtual Reality Model: Visualising Social Networks 153
10.1 Introduction 154
10.2 Visualisation 154
10.3 Virtual Reality Model Description 156
10.4 Tool Application 161
10.5 Conclusions 166

References 167

Part IV Complete KM Solutions: Integrated Systems
and Technologies

Chapter 11 Web Course Technology: Creating Virtual
Knowledge Spaces 171
11.1 Introduction 172
11.2 A Conceptual Model of Virtual k-Space 173
11.3 k-Space Design Features 175
11.4 Empirical Evaluation 180
11.5 Conclusions 186

References 187

Chapter 12 Simulation Game: Adventures in Knowledgeland 189
12.1 Introduction 190
12.2 Contingency Factors 190
12.3 Game Description 198
12.4 Lessons Learned 201
12.5 Conclusions 203

References 204

Chapter 13 Internet Portals: Supporting Online
Communities of Practice 207
13.1 Introduction 208
13.2 Portal Technology 209
13.3 Case Study: ActKM Community of Practice 210
13.4 Conclusions 218

References 218

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Contents xiii

Chapter 14 Total Knowledge Management System: Combining
Technological and Social Aspects 221
14.1 Introduction 222
14.2 Social Aspects of KMS 223
14.3 Empirical Study 228
14.4 Conclusions 232

References 233

Part V Issues and Challenges: Present and Future

Chapter 15 Towards Knowledge Management Practice:
How to Get There? 239
15.1 Introduction 240
15.2 Review of Leading KM Frameworks 240
15.3 Guidelines for Conducting KM in Organisations 244
15.4 Illustrative Cases 246
15.5 Conclusions 250

References 251

Chapter 16 The Future of Knowledge Management:
What Is on the Horizon? 255
16.1 Introduction 256
16.2 Automation: Intelligent Systems That Apply

Knowledge 257
16.3 Integration: Merging of E-commerce and

Knowledge Management 261
16.4 The Final Word 265

References 266

Index 269

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PART I

Introduction: Exploring the Role of

Technology in Knowledge Management

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The Rise of Knowledge Management 3

CHAPTER 1

The Rise of Knowledge Management:

In Pursuit of Excellence

Necessity is the mother of all inventions
— Proverb

This chapter provides an overarching introduction to the field of
knowledge management (KM). It examines the emerging context and
rationale for KM, the implications and benefits of KM for
organisations, and the current understanding of the KM concept itself.
The aim is to provide a broad theoretical basis for exploring the role
of technology in KM and to set the scene for the remaining chapters
of the book.

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4 KM: Through the Technology Glass

1.1 Introduction

The growing interest in knowledge management has been fuelled by a
number of development trends: globalisation with the increasing intensity
of competition; virtualisation or digitalisation enabled by advances in
information and communication technology; and the transformation to
knowledge based economy together with changing organisational
structures, new worker profiles, preferences and predispositions (Raich
2000; Hall, 2003). This new emerging world is variously referred to as
third wave, information age, knowledge-based or knowledge economy or
society. Regardless of the terminology, these names, and others, refer to
the transition that is taking place in the business environment.

As organisations move towards becoming more knowledge-based,
their business success will increasingly depend on how successful
knowledge workers are at developing and applying knowledge productively
and efficiently. The ability to identify and leverage key knowledge plays
a critical role in organisational survival and advancement. Consequently,
the companies are facing the need to improve the management of their
knowledge.

The knowledge economy demands that organisations integrate their
activities, processes and systems in order to exploit their resources more
efficiently and subsequently gain economies of scope and access to and
from new markets (Burnes, 2000). Those organisations that are unable
to change or choose not to adapt in a timely manner are likely to
become vulnerable and unable to compete in the future.

The basic assumption of KM is that organisations that manage
organisational and individual knowledge better will deal more successfully
with the challenges of the new business environment. More specifically,
knowledge management is considered to be central to achieving process
and product improvement, executive decision making and organisational
adaptation and renewal (Earl, 2001). The central task of those concerned
with knowledge management is to determine ways to better cultivate,
nurture and exploit knowledge at different levels and in different contexts.

However, while there is a widespread agreement of the importance
of knowledge with respect to the struggle for economic success, there are

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The Rise of Knowledge Management 5

differences among researchers and practitioners alike in what constitutes
useful knowledge and the ways in which it should be managed (Holsapple
and Joshi, 1999). There are major disagreements as to whether it should
be considered a technical issue, a human resources issue, a procedural
issue or a part of strategic management (Handzic and Hasan, 2003). The
variation between different schools of thoughts on knowledge
management are an indication of the many problems faced. To gain a
greater understanding of the KM phenomena, the following sections will
examine major drivers, outcomes and models of KM, and introduce an
integrated KM framework as a basis for understanding the role of
technology in KM.

1.2 Drivers of KM

We are currently experiencing a period of major change in the world
economy. This is characterised by increased complexity, uncertainty and
surprises. Some analysts think of it as a period of living in the centre
of the “Bermuda Triangle” (Raich, 2000) where individuals and
organisations have to deal with the increasing turbulence and speed of
change. This change is brought about by the mega-trends of
globalisation, digitalisation (or virtualisation) and transformation to a
knowledge-based economy.

Knowledge Economy

The transformation from the old economy to a new, knowledge-based
economy, is driven largely by the recognition that knowledge rather
than financial capital, land or labour is the major source of continued
economic growth, value and improved standards of living. Figure 1.1
shows that while every economy relies on knowledge to some extent
as its base, in the “knowledge economy” knowledge itself is for sale
and ideas are the main output or product of the economic institutions.

Tiwana (2001) identifies major characteristics of the new economy
in terms of knowledge centricity, increasing returns, network effects,

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6 KM: Through the Technology Glass

accelerated clockspeed, transparency, customer loyalty, innovation,
ad-hoc alliances, and products as experiences. He notes that knowledge
centricity is typically demonstrated in the increasing dependence of
services and non-physical as well as physical goods on knowledge for
their production and distribution.

Tiwana further notes that knowledge-based offerings have increasing
returns. Once the first unit is produced at a significant cost, additional
units can be produced at a near-zero incremental cost (e.g., piece of
software). Network effects are evidenced in the positive correlation
between the market size and the value of the knowledge offering. Thus,
companies trying to capture as much market as possible do so even at
an initial loss (e.g., offering free software). Rapid and unpredictable
changes dominate. To cope, business must have adequate organisational
and technological mechanisms to support speedy adaptation and
knowledge application. As businesses become increasingly networked
with others (e.g., customers, partners) their knowledge becomes more
transparent and potent. Firms are differentiated by differences in levels
of assimilation and mobilisation of their knowledge.

Success in the new economy requires intimate knowledge of the
company customer base. Such knowledge can help businesses provide

Capital

Industrial

Labor

Land

Intellect

Figure 1.1 Shifting economy

Knowledge

Agricultural

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The Rise of Knowledge Management 7

tailored products and services and thus attract and retain their customer’s
loyalty. Success often requires inventing new business processes, new
industries and new customers rather than re-arranging old ones. With
the rapidity of knowledge obsolesce, new knowledge must be integrated
fast. This can be done through the formation of temporary collaborations
between partners and members on an as-needed basis. Finally, in the
knowledge economy, products and services are increasingly perceived as
experiences. Accordingly, organisations act as knowledge integrators,
finding out and offering customers individualised experiences they want
and need.

Knowledge Organisation

Economic progress throughout history has been driven by commerce and
business organisations. These organisations have internal structures that
mediate roles and relationships among people working towards some
identifiable goal. Their existence is the result of a successful balance
between the forces in their environment and their own creativity and
adaptivity (Bennet and Bennet, 2003). Currently, at the forefront of
organisational performance are the organisations which recognised that
information, knowledge and their intelligent application are the essential
factors of success in the new economy, and take advantage of information
technology to achieve high level of efficiency and effectiveness. Various
metaphors used to describe a knowledge organisation include: agile
production system, living organism, complex adaptive system, self-
organising system and virtual organisation.

The knowledge organisation can be best viewed as an intelligent
complex adaptive system. It is complex because the system is composed
of a large number of individual specialists called intelligent agents, who
have multiple and complex relationships with the system and
environment. It is adaptive because these intelligent agents direct and
discipline their own performance through organised feedback from
colleagues, customers and headquarters. It has been suggested in the
literature (Bennet and Bennet, 2003) that a successful knowledge
organisation exhibits the following characteristics: high performance,
customer-driven, improvement-driven, high flexibility and adaptiveness,

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8 KM: Through the Technology Glass

high levels of expertise and knowledge, high rates of learning and
innovation, innovative IT-enabled, self-directed and managed, proactive
and futurist, valuing expertise and sharing knowledge.

One of the ways to achieve effective knowledge creation, transfer
and utilisation within an organisation is through communities of practice
(Wenger, 1998). This approach to organisational structuring advocates
the formation of centres of expertise for each knowledge domain,
discipline or subject matter speciality. The alternative approach suggests
organising around projects and related activities. Information and
communication technology can be the catalyst to form and sustain
heterogeneous communities. With the support of the intranet or internet,
these communities can include diverse people from different space and
time zones of the globe (Hasan and Crawford, 2003).

While information technology is not necessary to create a knowledge
organisation, the use of advanced technologies can transform the way
the whole business works. The concept of “cybercorp” has been heralded
as the new business revolution (Martin, 1996). It is envisaged as a
totally virtual organisation based on the capabilities of the modern
communication, i.e., the internet and the mobile phone. Typically, a
virtual organisation consists of three fundamental parts: knowledge
professionals and workers who possess core competencies; relationships
and networks of people including partners, suppliers and customers
grouped around a common brand; and a culture based on co-operation
and collaboration and sitting in the centre of global networks linked
electronically (Raich, 2000).

A knowledge organisation must of necessity become a learning
organisation, so that the entire firm will learn while it works and be able
to adapt quickly to market changes and other environmental
perturbations. It has been suggested that the building blocks of a learning
organisation are systematic problem solving, experimentation, learning
from past experience, learning from others and transferring knowledge
(Garvin, 1998). The way to build it is to first foster the environment
that is conducive to learning, then open up boundaries to stimulate the
informal exchange of ideas and finally create formal learning forums and
programmes with explicit learning goals tailored to business needs.

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The Rise of Knowledge Management 9

Learning organisations have also been described as places “where people
continually expand their capacity to create the results they truly desire,
where new and expansive patterns of thinking are nurtured, where
collective aspiration is set free, and where people are continually learning
how to learn together” (Senge, 1990). To achieve these ends these
organisations use systems thinking, personal mastery, mental models,
shared vision and team learning. Furthermore, knowledge creating
companies are characterised as places where “inventing new knowledge
is not a specialised activity, but the way of behaving, indeed a way of
being, in which everyone is a knowledge worker”. The way to achieve
this is to use metaphors, encourage dialogue, and make tacit ideas explicit.

Knowledge Work and Workers

In knowledge based organisations, the largest part of their workforce is
engaged in knowledge work (Schultze, 2003). The following paragraphs
summarises different perspectives on this new phenomenon. The
economic perspective emphasises how knowledge work differs from other
types of work in the nature of knowledge possessed and produced by
workers. Knowledge work assumes the possession of mostly abstract,
theoretical and esoteric knowledge gained through formal education. It
also suggests that workers have to produce new knowledge rather than
just manipulate existing knowledge. The labour process perspective
concerns itself with the formation and composition of a new class of
white-collar workers between the proletariat and bourgeoisie who perform
managerial, professional and clerical tasks. Their work is characterised
by scientific base, formal education, autonomy, ethical rules, culture,
client orientation, social sanction and authorisation.

The work practice perspective focuses on the work that workers do
and classifies it into knowledge production and knowledge reproduction.
Re-production includes transfer and application. Specific processes and
practices that form part of knowledge work include generating new
knowledge, interpreting and representing it, as well as expressing,
monitoring, translating and networking. For example, software
engineering qualifies as knowledge work based on the presence of

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10 KM: Through the Technology Glass

creativity and problem-solving aspects of the work; co-location which
allows work remote from the employing firm; and “gold collar” conditions
of employment, including exceptional remuneration and benefits packages
(Edwards, 2003).

Given that all work requires the application of knowledge, the
emergence of knowledge work as a separate category of work has been
criticised. However, it does offer a possibility of categorising groups of
workers by highlighting their similarities and differences. Generally
speaking, a knowledge worker is any worker who performs knowledge
work (as described in the previous section) in every element of the
economy. It covers various managerial, professional and clerical
occupations. Examples of occupations that qualify as knowledge workers
include executives, legislators, engineers, scientists, administrators and
counselors. According to Australian statistics (ABS, 2003) there has
been a significant increase in the percentage of knowledge workers in
the country’s labour force over the last couple of years, this being
consistent with the country’s transition to a knowledge economy.

Of particular interest for KM is a special category of knowledge
workers, KM professionals, who make knowledge management in an
organisation work. KM professionals are a new phenomenon and there
is still no clear picture about what roles they should play in an organisation
and what competencies and skills they need to have to play these roles.
Currently there is a wide range of KM related job titles and roles found
in organisations. Examples include titles such as Chief Knowledge Officer
(CKO), Knowledge Asset Manager, Knowledge Officer, Web Master,
etc.

From this variety three distinct categories can be recognised: knowledge
manager, knowledge engineer and knowledge scientist (Weidner, 2003). The
knowledge manager is expected to be primarily concerned with the
knowledge needs of the enterprise. The knowledge engineers, with various
specialisations, are perceived as advisors on what can be done given the
current “state of the art”. Knowledge scientists are seen as showing them
what is possible if they were willing to try. A snapshot of actual CKOs
portrays them as highly educated and experienced individuals, generally
satisfied with their position, freedom and latitude it affords (McKeen

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The Rise of Knowledge Management 11

and Staples, 2003). At present, their primary goal is to raise awareness
of KM, and they have little direct authority and effect changes through
persuasion, negotiation and communication.

1.3 Outcomes of KM

The importance of KM for organisational performance has been widely
recognised and acknowledged in the management literature. In general,
KM is assumed to create value for organisations from applying their
accumulated knowledge to their products and services outputs. These
ensure organisational survival or advancement. KM can impact
organisational performance in a number of different ways, these can be
grouped into three broad categories: risk minimisation, efficiency
improvement and innovation (Von Krogh et al., 2000).

Risk Minimisation

Risk minimisation is closely linked to identifying and holding onto the
core competencies that the company has. In most organisations, people
have been recognised as key holders of valuable knowledge. KM can
minimise the risk of losing valuable knowledge by identifying, locating
and capturing what is known by individuals and groups of organisational
employees that is of critical importance for organisational survival. Frank
(2002) offers five tips to reduce knowledge loss: do not let people leave,
mentor and coach, share best practices, share lessons learned and
document. Indeed, documented project management knowledge, expertise
and skills accumulated in the construction industry were found to benefit
both employees and the public at large (Land et al., 2002). At another
level, society’s knowledge records are preserving the cultural capital of
nations (Handzic, 2003).

KM can also impact people’s learning, adaptability and job satisfaction
(Becerra-Fernandez et al., 2004). For example, KM can facilitate
employees’ creativity and group effectiveness through informal and formal
socialisation (Handzic and Chaimungkalanont, 2003). Socialisation forms

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12 KM: Through the Technology Glass

a vital component of Nonaka’s (1998) knowledge creation model. It
enables tacit knowledge to be transferred between individuals through
shared experience, space and time. Examples include spending time,
working together or informal social meetings. More importantly,
socialisation drives the creation and growth of personal tacit knowledge
bases. By seeing other people’s perspective and ideas, a new interpretation
of what one knows is created.

Efficiency and Effectiveness Improvement

In today’s complex economy, businesses are constantly confronted with
the need to operate more efficiently in order to stay competitive and
satisfy increasing market demands. Organisations are under increasing
pressure from customers to deliver solutions and services faster and
cheaper. KM can improve organisational efficiency by transferring
experiences and best practices throughout the organisation in order to
avoid unnecessary duplication and to reduce cost. Technology is often
an important part of achieving efficiency improvements. For example, a
best practice replication program at Ford (Rollo and Clarke, 2001)
achieved process improvements in plants around the globe, and nine-
figure cost savings from a simple intranet-based KM system for knowledge
sharing.

KM can also help organisations become more effective by helping
them select and perform the most appropriate processes and make the
best possible decisions. KM can help organisations to avoid repeating
past mistakes, foresee potential problems and reduce the need to modify
plans (Becerra-Fernandez, 2004). For example, The Australian
Government responded to increasing community expectations of better
social services and access to empowering information sources by
integrating historically separate health, housing and community services
via a virtual corporate environment (Rollo and Clarke, 2001). The
outcome is that various community and service providers have been
given equitable and wide-spread access to expert knowledge and can
directly contact the right people for service delivery.

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The Rise of Knowledge Management 13

Process and Product Innovation

There is a growing belief that knowledge can do more than improve
efficiency and effectiveness. KM can impact process innovations, value-
added products and knowledge-based products (Becerra-Fernandez, 2004).
Innovation of products, processes and structures have been assessed as a
critical component in the success of new-age firms. The new products
and services resulting from the interaction of knowledge and technology
bring profound changes in the way businesses operate and compete in
the new economy.

Typically, innovative organisations focus on both new knowledge
and on knowledge processes. They constantly engage and motivate people,
creating the overall enabling context for knowledge creation. These
organisations take a strategic view of knowledge, formulate knowledge
visions, tear down knowledge barriers, develop new corporate values and
trust, catalyse and coordinate knowledge creation, manage various
contexts involved, develop conversational culture and globalise local
knowledge (Nanaka and Nishiguchi, 2001).

The unifying thread among various theoretical views is the perception
that innovation is the key driver of an organisation’s long-term economic
success. According to Von Krogh (2000) the greatest challenge for
organisations is to move in knowledge -enabling direction by consciously
and deliberately addressing knowledge management. Pfizer is one good
example of such an organisation (Rollo and Clarke, 2001). This company
uses KM primarily to beat the industry average. Its main approach to
management of the research process involves the “mining” of scientific
publications to make its researchers aware of the progress and projects
of others. This approach has resulted in the discovery of the well-known
Viagra drug.

1.4 KM Frameworks

There have been a number of recent efforts at developing KM frameworks
to better understand KM phenomena. In order to make sense of the

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14 KM: Through the Technology Glass

variety of existing KM frameworks, some form of categorisation or
grouping is needed. One way to group them is into partial and integrated
models or ontologies.

Partial KM Frameworks

Partial KM frameworks encompass a broad range of issues, methods and
theories that differ in scope and focus. Some are knowledge oriented,
like the intellectual capital models of McAdam and McCreedy (1999)
and the economic school …