Business processes and knowledge management

Knowledge has been a subject of interest and inquiry for thousands of years since at least the time of the ancient Greeks, and no doubt even before that. “What is knowledge” continues to be an important topic of discussion in philosophy. More recently, interest in managing knowledge has grown in step with the perception that increasingly we live in a knowledge-based economy. Drucker (1969) is usually credited as being the first to popularize the knowledge-based economy concept by linking the importance of knowledge with rapid technological change in Drucker (1969). Karl Wiig coined the term knowledge management (hereafter KM) for a NATO seminar in 1986, and its popularity took off following the publication of Nonaka and Takeuchi’s book “The Knowledge Creating Company” (Nonaka & Takeuchi, 1995). Knowledge creation is in fact just one of many activities involved in KM. Others include sharing, retaining, refining, and using knowledge. There are many such lists of activities (Holsapple & Joshi, 2000; Probst, Raub, & Romhardt, 1999; Skyrme, 1999; Wiig, De Hoog, & Van der Spek, 1997). Both academic and practical interest in KM has continued to increase throughout the last decade. In this article, first the different types of knowledge are outlined, then comes a discussion of various routes by which knowledge management can be implemented, advocating a process-based route. An explanation follows of how people, processes, and technology need to fit together for effective KM, and some examples of this route in use are given. Finally, there is a look towards the future.

Competing for knowledge:creating, connecting and growing

With the buzzwords of knowledge-based economy and knowledge-driven economy, policy-makers, as well as journalists and management consultants, are pushing forward a vision of change that transforms the way advanced economies work. Yet little is understood about how the knowledge-based economy differs from the old, traditional economy. It is generally agreed that the phenomenon has grown out of the branch of economic thought known as new growth theory. Digesting up-to-date thinking in economics, management, innovation studies and economic geography, this significant volume provides an account of these developments and how they have transformed advanced economies.

Editorial

On behalf of the Operational Research Society, Palgrave Macmillan and the editorial team, I am pleased to welcome readers to this, the first issue of Knowledge Management Research & Practice (KMRP). The aim of KMRP is to provide an outlet for rigorous, high-quality, peer-reviewed articles on all aspects of managing knowledge, organisational learning, intellectual capital and knowledge economics. The Editorial Board intends that there be a particular emphasis on cross-disciplinary approaches, and on the mixing of 'hard' (e.g. technological) and 'soft' (e.g. cultural or motivational) issues. This issue features four regular papers and an editorial paper; in addition, there are two book reviews. KMRP is intended as a truly international journal. The papers in this issue feature authors based in five different countries on three continents; eight different countries and four continents if the editorial paper is included. The first of the regular papers is 'The Knowledge-Creating Theory Revisited: Knowledge Creation as Synthesizing Process', by Ikujiro Nonaka and Ryoko Toyama. There can be few readers who are unaware of the work on knowledge creation by Nonaka and his co-workers such as Takeuchi, and this paper seeks to revisit and extend some of the earlier ideas. The second paper is 'Knowledge Sharing in a Multi-Cultural Setting: A Case Study' by Dianne Ford and Yolande Chan. They present a case study that explores the extent to which knowledge sharing is dependent on national culture. The third paper is 'R&D Collaboration: The Role of bain Knowledge-creating Networks' by Malin Brännback. She also draws upon Nonaka and Takeuchi's work on knowledge creation, using the case of knowledge-creating networks in biopharmaceutical R&D involving both universities and industry as an example. The fourth regular paper is 'The Critical Role of Leadership in Nurturing a Knowledge Supporting Culture' by Vincent Ribière and Alea Saa Sitar. They examine the role of leaders in knowledge management generally, and especially in knowledge organisations, from the viewpoint of 'leading through a knowledge lens'. In addition, this issue includes an 'editorial paper', 'Knowledge Management Research & Practice: Visions and Directions' by the editorial team of John Edwards, Meliha Handzic, Sven Carlsson, and Mark Nissen. This paper presents a small survey of academics and practitioners, outlines key directions for knowledge management research and practice, and gives the editorial team's views on how KMRP can help promote scholarly inquiry in the field. We trust that you will both enjoy reading this first issue and be stimulated by it, and cordially invite you to contribute your own paper(s) to future issues of KMRP.

Increasing the use of simulation in business

The nature of Discrete-Event Simulation (DES) and the use of DES in organisations is changing. Two important developments are the use of Visual Interactive Modelling systems and the use of DES in Business Process Management (BPM) projects. Survey research is presented that shows that despite these developments usage of DES remains relatively low due to a lack of knowledge of the benefits of the technique. This paper considers two factors that could lead to a greater achievement and appreciation of the full benefit of DES and thus lead to greater usage. Firstly in relation to using DES to investigate social systems, both in the process of undertaking a simulation project and in the interpretation of the findings a 'soft' approach may generate more knowledge from the DES intervention and thus increase its benefit to businesses. Secondly in order to assess the full range of outcomes of DES the technique could be considered from the perspective of an information processing tool within the organisation. This will allow outcomes to be considered under the three modes of organisational information use of sense making, knowledge creating and decision making which relate to the theoretical areas of knowledge management, organisational learning and decision making respectively. The association of DES with these popular techniques could further increase its usage in business.

Knowledge management in a New Zealand tree farming company:Ambiguity and resistance to the "technology solution"

Purpose - Managers at the company attempt to implement a knowledge management information system in an attempt to avoid loss of expertise while improving control and efficiency. The paper seeks to explore the implications of the technological solution to employees within the company. Design/methodology/approach - The paper reports qualitative research conducted in a single organization. Evidence is presented in the form of interview extracts. Findings - The case section of the paper presents the accounts of organizational participants. The accounts reveal the workers' reactions to the technology-based system and something of their strategies of resistance to the system. These accounts also provide glimpses of the identity construction engaged in by these knowledge workers. The setting for the research is in a knowledge-intensive primary industry. Research was conducted through observation and interviews. Research limitations/implications - The issues identified are explored in a single case-study setting. Future research could look at the relevance of the findings to other settings. Practical implications - The case evidence presented indicates some of the complexity of implementation of information systems in organizations. This could certainly be seen as more evidence of the uncertainty associated with organizational change and of the need for managers not to expect an easy adoption of intrusive IT solutions. Originality/value - This paper adds empirical insight to a largely conceptual literature. © Emerald Group Publishing Limited.

Knowledge transfer in website design:exploring the processes and benefits of design collaboration for non-creative Micros

This thesis explores the interaction between Micros (<10 employees) from non-creative sectors and website designers ("Creatives") that occurred when creating a website of a higher order than a basic template site. The research used Straussian Grounded Theory Method with a longitudinal design, in order to identify what knowledge transferred to the Micros during the collaboration, how it transferred, what factors affected the transfer and outcomes of the transfer including behavioural additionality. To identify whether the research could be extended beyond this, five other design areas were also examined, as well as five Small to Medium Enterprises (SMEs) engaged in website and branding projects. The findings were that, at the start of the design process, many Micros could not articulate their customer knowledge, and had poor marketing and visual language skills, knowledge core to web design, enabling targeted communication to customers through images. Despite these gaps, most Micros still tried to lead the process. To overcome this disjoint, the majority of the designers used a knowledge transfer strategy termed in this thesis as ‘Bi-Modal Knowledge Transfer’, where the Creative was aware of the transfer but the Micro was unaware, both for drawing out customer knowledge from the Micro and for transferring visual language skills to the Micro. Two models were developed to represent this process. Two models were also created to map changes in the knowledge landscapes of customer knowledge and visual language – the Knowledge Placement Model and the Visual Language Scale. The Knowledge Placement model was used to map the placement of customer knowledge within the consciousness, extending the known Automatic-Unconscious -Conscious model, adding two more locations – Peripheral Consciousness and Occasional Consciousness. Peripheral Consciousness is where potential knowledge is held, but not used. Occasional Consciousness is where potential knowledge is held but used only for specific tasks. The Visual Language Scale was created to measure visual language ability from visually responsive, where the participant only responds personally to visual symbols, to visually multi-lingual, where the participant can use visual symbols to communicate with multiple thought-worlds. With successful Bi-Modal Knowledge Transfer, the outcome included not only an effective website but also changes in the knowledge landscape for the Micros and ongoing behavioural changes, especially in marketing. These effects were not seen in the other design projects, and only in two of the SME projects. The key factors for this difference between SMEs and Micros appeared to be an expectation of knowledge by the Creatives and failure by the SMEs to transfer knowledge within the company.

Knowledge maintenance and the frame problem

Knowledge maintenance is a major challenge for both knowledge management and the Semantic Web. Operating over the Semantic Web, there will be a network of collaborating agents, each with their own ontologies or knowledge bases. Change in the knowledge state of one agent may need to be propagated across a number of agents and their associated ontologies. The challenge is to decide how to propagate a change of knowledge state. The effects of a change in knowledge state cannot be known in advance, and so an agent cannot know who should be informed unless it adopts a simple ‘tell everyone – everything’ strategy. This situation is highly reminiscent of the classic Frame Problem in AI. We argue that for agent-based technologies to succeed, far greater attention must be given to creating an appropriate model for knowledge update. In a closed system, simple strategies are possible (e.g. ‘sleeping dog’ or ‘cheap test’ or even complete checking). However, in an open system where cause and effect are unpredictable, a coherent cost-benefit based model of agent interaction is essential. Otherwise, the effectiveness of every act of knowledge update/maintenance is brought into question.

The politics of knowledge in central Asia:science between Marx and the market

Through careful historical and ethnographic research and extensive use of local scholarly works, this book provides a persuasive and careful analysis of the production of knowledge in Central Asia. The author demonstrates that classical theories of science and society are inadequate for understanding the science project in Central Asia. Instead, a critical understanding of local science is more appropriate. In the region, the professional and political ethos of Marxism-Leninism was incorporated into the logic of science on the periphery of the Soviet empire. This book reveals that science, organizes and constructed by Soviet rule, was also defined by individual efforts of local scientists. Their work to establish themselves 'between Marx and the market' is therefore creating new political economies of knowledge at the edge of the scientific world system.

The growing importance of inter-company collaboration

Guest editorial: This special issue has been drawn from papers that were published as part of the Second European Conference on Management of Technology (EuroMOT) which was held at Aston Business School (Birmingham, UK) 10-12 September 2006. This was the official European conference for the International Association for Management of Technology (IAMOT); the overall theme of the conference was “Technology and global integration.” There were many high-calibre papers submitted to the conference and published in the associated proceedings (Bennett et al., 2006). The streams of interest that emerged from these submissions were the importance of: technology strategy, innovation, process technologies, managing change, national policies and systems, research and development, supply chain technology, service and operational technology, education and training, small company incubation, technology transfer, virtual operations, technology in developing countries, partnership and alliance, and financing and investment. This special issue focuses upon the streams of interest that accentuate the importance of collaboration between different organisations. Such organisations vary greatly in character; for instance, they may be large or small, publicly or privately owned, and operate in manufacturing or service sectors. Despite these varying characteristics they all have something in common; they all stress the importance of inter-organisational collaboration as a critical success factor for their organisation. In today's global economy it is essential that organisations decide what their core competencies are what those of complementing organisations are. Core competences should be developed to become a bases of differentiation, leverage and competitive advantage, whilst those that are less mature should be outsourced to other organisations that can claim to have had more recognition and success in that particular core competence (Porter, 2001). This strategic trend can be observed throughout advanced economies and is growing strongly. If a posteriori reasoning is applied here it follows that organisations could continue to become more specialised in fewer areas whilst simultaneously becoming more dependent upon other organisations for critical parts of their operations. Such actions seem to fly in the face of rational business strategy and so the question must be asked: why are organisations developing this way? The answer could lie in the recent changes in endogenous and exogenous factors of the organisation; the former emphasising resource-based issues in the short-term, and strategic positioning in the long-term whilst the later emphasises transaction costs in the short-term and acquisition of new skills and knowledge in the long-term. For a harmonious balance of these forces to prevail requires organisations to firstly declare a shared meta-strategy, then to put some cross-organisational processes into place which have their routine operations automated as far as possible. A rolling business plan would review, assess and reposition each organisation within this meta-strategy according to how well they have contributed (Binder and Clegg, 2006). The important common issue here is that an increasing number of businesses today are gaining direct benefit from increasing their levels of inter-organisational collaboration. Such collaboration has largely been possible due to recent technological advances which can make organisational structures more agile (e.g. the extended or the virtual enterprise), organisational infra-structure more connected, and the sharing of real-time information an operational reality. This special issue consists of research papers that have explored the above phenomenon in some way. For instance, the role of government intervention, the use of internet-based technologies, the role of research and development organisations, the changing relationships between start-ups and established firms, the importance of cross-company communities of practice, the practice of networking, the front-loading of large-scale projects, innovation and the probabilistic uncertainties that organisations experience are explored in these papers. The cases cited in these papers are limited as they have a Eurocentric focus. However, it is hoped that readers of this special issue will gain a valuable insight into the increasing importance of collaborative practices via these studies.

Inter-organisational knowledge transfer strategies

Inter-organisational knowledge transfer is very important for SMEs. However, compared to knowledge transfer within an organisation, its ‘boundary paradox’ makes its process more complicated and difficult to understand. In order to solve the ‘paradox’, inter-organisational knowledge transfer strategies need to be developed for SMEs. Through a review of the literature on knowledge transfer, this paper proposes an inter-organisational knowledge transfer process model that contains four stages (initiation, selection, interaction and conversion). It classifies three situations in which an SME exchanges knowledge with a customer (whether a larger company or an SME). It then applies a coordinating mechanism to analyse knowledge transfer strategies for the SME when it is a knowledgegiving firm and knowledge-receiving firm respectively, in the different stages of each situation.

Knowledge based improvement:simulation and artificial intelligence for identifying and improving human decision-making in an operations systems

The performance of most operations systems is significantly affected by the interaction of human decision-makers. A methodology, based on the use of visual interactive simulation (VIS) and artificial intelligence (AI), is described that aims to identify and improve human decision-making in operations systems. The methodology, known as 'knowledge-based improvement' (KBI), elicits knowledge from a decision-maker via a VIS and then uses AI methods to represent decision-making. By linking the VIS and AI representation, it is possible to predict the performance of the operations system under different decision-making strategies and to search for improved strategies. The KBI methodology is applied to the decision-making surrounding unplanned maintenance operations at a Ford Motor Company engine assembly plant.

Enabling innovation:knowledge control, sharing and coordination boundaries in UK and German manufacturing

We investigate how boundaries in knowledge control, sharing and co-ordination influence UK and German manufacturing firms’ innovation intensity (an indicator of the volume of product change) and product life (an indicator of the pace of generational change). In general UK plants more commonly face knowledge control boundaries related to plant ownership or control, while German plants more commonly face boundaries related to knowledge sharing and knowledge co-ordination between functional groups. Our empirical results emphasise the importance of the strategic management of innovation. Knowledge control boundaries – related to external ownership, group membership and decision making autonomy – have a weak negative influence on plants’ innovation outcomes. Strategic decisions relating to multifunctional working and networking are found to be more important in overcoming knowledge sharing and co-ordination boundaries. Knowledge sharing boundaries, related to plant or company boundaries, prove most important where a plant has no in-house R&D capability. Knowledge co-ordination boundaries related to functional or multi-functional working have strong but differential effects on different innovation output measures: functional boundaries increase product life in both countries, and in Germany maintaining functional boundaries is also associated with increased innovation intensity.

Using decision support systems to facilitate the social process of knowledge management

The social processes involved in engaging small groups of 3-15 managers in their sharing, organising, acquiring, creating and using knowledge can be supported with software and facilitator assistance. This paper introduces three such systems that we have used as facilitators to support groups of managers in their social process of decision-making by managing knowledge during face-to-face meetings. The systems include Compendium, Group Explorer (with Decision Explorer) and V*I*S*A. We review these systems for group knowledge management where the aim is for better decision-making, and discuss the principles of deploying each in a group meeting. © 2006 Operational Research Society Ltd. All rights reserved.

Simulation based knowledge elicitation:effect of visual representation and model parameters

Since much knowledge is tacit, eliciting knowledge is a common bottleneck during the development of knowledge-based systems. Visual interactive simulation (VIS) has been proposed as a means for eliciting experts’ decision-making by getting them to interact with a visual simulation of the real system in which they work. In order to explore the effectiveness and efficiency of VIS based knowledge elicitation, an experiment has been carried out with decision-makers in a Ford Motor Company engine assembly plant. The model properties under investigation were the level of visual representation (2-dimensional, 2½-dimensional and 3-dimensional) and the model parameter settings (unadjusted and adjusted to represent more uncommon and extreme situations). The conclusion from the experiment is that using a 2-dimensional representation with adjusted parameter settings provides the better simulation-based means for eliciting knowledge, at least for the case modelled.

A knowledge-based system for process planning in a seamless steel tube plant

The thesis describes the work carried out to develop a prototype knowledge-based system 'KBS-SETUPP' to generate process plans for the manufacture of seamless tubes. The work is specifically related to a plant in which hollows are made from solid billets using a rotary piercing process and then reduced to required size and finished properties using the fixed plug cold drawing process. The thesis first discusses various methods of tube production in order to give a general background of tube manufacture. Then a review of the automation of the process planning function is presented in terms of its basic sub-tasks and the techniques and suitability of a knowledge-based system is established. In the light of such a review and a case study, the process planning problem is formulated in the domain of seamless tube manufacture, its basic sub-tasks are identified and capabilities and constraints of the available equipment in the specific plant are established. The task of collecting and collating the process planning knowledge in seamless tube manufacture is discussed and is mostly fulfilled from domain experts, analysing of existing manufacturing records specific to plant, textbooks and applicable Standards. For the cold drawing mill, tube-drawing schedules have been rationalised to correspond with practice. The validation of such schedules has been achieved by computing the process parameters and then comparing these with the drawbench capacity to avoid over-loading. The existing models cannot be simulated in the computer program as such, therefore a mathematical model has been proposed which estimates the process parameters which are in close agreement with experimental values established by other researchers. To implement the concepts, a Knowledge-Based System 'KBS- SETUPP' has been developed on Personal Computer using Turbo- Prolog. The system is capable of generating process plans, production schedules and some additional capabilities to supplement process planning. The system generated process plans have been compared with the actual plans of the company and it has been shown that the results are satisfactory and encouraging and that the system has the capabilities which are useful.