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Introduction to Knowledge Management

99 Paradigm Shifts for Survival in the Knowledge Economy by Serafin D. Talisayon of CCLFI. Philippines

Sarinah Narciso

on 2 October 2012

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Transcript of Introduction to Knowledge Management

Accdg to Serafin Talisayon KNOWLEDGE MANAGEMENT fundamental changes are sweeping through the global economy A1 What is Knowledge Management? anything that yields regular income is "capital" A2 Understanding Intellectual Capital what we do not see we cannot manage B2 Shift to knowledge: Wealth from intangibles knowledge assets appreciate with use Information and Economics we need new eyes Awareness Choice Change mental box dedicated to developing tools and providing products/services for managing human processes for creating intangibles Agricultural Revolution
@ 30,000 Industrial Revolution
@300 Information/Knowledge Revolution
@30 "The most important wars of the 21st century will be fought no longer on the physical battlefield, but in corporate boardrooms, laboratories, stock exchanges, classrooms, and shop floors.” "Whereas at one time the decisive factor of production was the land, and later capital, today the decisive factor is increasingly man himself, that is, his knowledge” “once your market value exceeds twice your book value, you must seriously consider managing your knowledge assets” “corporate knowledge is embodied in people, embedded in processes and earned with partners and patrons” Knowledge is both repository and creator of value Information = know what/what is
Knowledge = know how/what works Knowledge Management is...Getting the right knowledge to the right people at the right time and helping people share and put information into action in ways that strive to improve organizational performance KM:deploying knowledge for maximum creation of value

Most knowledge is tacit yet what gets managed more is explicit knowledge. Difference between Knowledge Management and Information Management
*Information management --> information objects and with people-to-information interface, only explicit knowledge

*KM--> both people-to-information and people-to-people interfaces, both explicit and tacit knowledge Knowledge Creation

4 key attributes of long-lived companies
1. ability of learn/adapt
2. cohesion and identity
3. tolerance of differences, eccentricities, experimentation; decentralized; open to other possibilities
4. financially conservative

"corporations die from learning disabilities" Use/re-use, creation of value and production or benefit occurs at this stage KM = Organizational Performance

business process that create value for the organization

a. when repeated across teams, productivity increases, standardization of best practices

Beware:standardization is double-edged if it is too rigid or improvisation or improvement is too bureaucratic, standardization becomes anti-learning

b. Acknowledge worker performing a core business process should be provided the right information and knowledge at his or her fingertips right when he or she needs it KM Stages
1. Deployment
2. Integration
3. Transformation Business case for KM
"Most admired knowledge enterprises 2003 earned 1992-2002 an average of 19.6% Total Return to Investors which is 2.2 times greater than the Fortune 500 median"
Ac Assets: Are things we own
Liabilities: are things we owe other people
Capital: if it earns/enables us to earn Mango tree is a "natural income" 3 forms of intellectual capital 1. Human Capital 2. Structural Capital 3. Stakeholder capital B1 Shift to knowledge: Power from Expertise vs. Power from capital p.24 Lesson 1: earning power comes more from the knowledge assets of its technical people than from its financial assets

Lesson 2: power is shifting from owners of capital to owners of knowledge

Lesson 3: it experts are very marketable and therefore highly mobile. Lesson 4: managing people and managing knowledge have become most important.

Lesson 5:people could also be key liabilities or obstacles Unlearn outmoded mindsets to better survive new global realities“the problems in the world stem from the difference between how we think and how the world works” Success in life and work is correlated more with EQ Intellectual capital: less readily seen but matters more
*net worth measured by traditional accounting methods (small visible tip)*intellectual capital consisting of human capital (skills experiences, work attitudes of employees) stakeholder capital (network of loyal customers and suppliers, brand, reputation, partners) AND structural capital (work processes, innovation cultures, patents and copyrights, databases, manuals, libraries) "The real voyage of discovery consists not in seeking new landscapes, but in having new eyes” - Marcel Proust Post industrial is making people more important than money B4 Shift to knowledge: People and Services B3 Shift to knowledge: Changing Foundations of National Power POWER SHIFTS

Landowners, Plantations, Harvesting
Kings, Nobles and Lords

Capitalists, Factories, Manufacturing, Bankers and Industrialists Accdg to Walter Wriston...
The organization (nation) that figures out how to harness the collective genius of its people is going to blow the competition away
-strategic issue: how to nurture or attract people who know how to create move and use all these (information, technology and knowledge)-wanted: cultures that encourage and nurture geniuses Primary = land-intensive
Secondary = energy, raw materials and capital-intensive
Tertiary = knowledge and people intensive KM is getting the right knowledge to the right people at the right time and helping people share and put information into action in ways that strive to improve organization performance B5 Benefits from Knowledge Management other basic facts on the Philippine economy and society point to the likelihood that knowledge-based services could well become the competitive edge internet access and texts liberalization of telecoms industry privately owned colleges and universities 2nd largest English speaking population high literacy gap small gender gaps high value on education and relationships very open and democratic society value is created whenever knowledge is shared and re-used shorter learning curve no repeated mistakes save time and resources work template best practices repeated productivity increases Community of Practitioners formal or informal group of people engaged in the same or similar profession or work knowledge generates economic benefit,
sharing multiplies knowledge use and benefits, getting knowledge at the right time saves money Information can be copied and recopied at will without diminishing the utility of the original consumption of information does not destroy the original form of pattern and so preserves the utility of the information for the next consumer pricing has less to do with the unit product cost and more with the utility to the consumer the name of the game is creating networks shareability and difficult excludability of information = shareable =
books, lecture notes, moonlight =non-share=
gas and food that I consumed =excludable=
fence =non-excludable=
sunshine 1. non-shareable and excludable
2. shareable and excludable
3. non-shareable and non-excludable
4. shareable and non-excludable information is shareable and non-excludable
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