Dr David J. Skyrme
The following is the full text of a paper that was delivered at
OnLine '97 (9-11 December 1997). Reproduced with the permission of Learned Information
Europe Ltd. Tel: +44 (0)1865 388000. Fax: +44 (0)1865 736354. A follow-on paper Information Managers: Do We Need Them? was presented at Online Information 2004.
This paper reviews the role of the Internet in the current
'knowledge revolution'. Knowledge has emerged as a current 'hot topic'
for many organisations. Many see knowledge management as the next
source of competitive advantage.
The paper starts by exploring the momentum in the knowledge agenda
and reviews the current state of theory and practice, based on an
international study of best practice. It then considers the
role of information systems, and especially how the evolution of the
Internet and Intranets can contribute to effective knowledge management.
These themes are together in frameworks that shape the
role of the technological infrastructure in knowledge work. It is
concluded that collaborative technologies and information management
both have significant contributions to make, but that many
organisations have yet to adopt them both systematically and
strategically. Implications are developed for online service providers
and information professionals in how they might achieve their full
potential in moving forward the strategic knowledge agenda.
1. Introduction
Every few years, a new technological development or management
philosophy captures the attention of many strategic thinkers in
organisations. First there was the Total Quality movement, and then
Business Process Reengineering. There is no doubt, that the last
couple of years has seen a surge of interest in knowledge management and
also the Internet. Yet, as someone who has followed and
participated in leading edge management practice for years, neither
of these are really new, and neither, if you analyse trends properly,
are real surprises.
It was back in 1950s that Drucker is credited with coining the
term 'knowledge worker'. He was writing about the role of knowledge in
organisation in some depth in the 1980s (e.g. see Drucker
(1988)), as were many other foresighted writers e.g. Masuda (1980)
and Sveiby (1987). Even after articles in more widely read publications
in the early 1990s, most notably by Nonaka (1991) and
Stewart (1991), there was no widespread interest among business
managers until just a year or so ago. Now, the conference scene is
exploding and there is at least one substantive new book published
on the topic every month.
Likewise, the Internet has been evolving steadily for over two
decades, since its origins in the US APRAnet project in the 1960s. What
seems to me remarkable is that until fairly recently online
service providers and corporate MIS managers were ridiculing it,
saying it would not affect them. One MIS director, when I presented the
advantages of the Internet for knowledge work at a conference
in 1993, and its inevitable diffusion into being a core
organisational technology retorted "over my dead-body" - I have not seen
him since! Similarly "no threat to online hosts" was a headline I saw
in the information press a year or so ago. Such reactions are typical
of those operating in a well established field, not understanding the
nature of innovation and diffusion of new ideas into the
marketplace and business practice.
Both these example are where the use of trend analysis techniques,
such as those based on content analysis as used by Trend Monitor
International (Wyllie 1993), can help determine when the
underlying trends reach a critical mass of reporting that impinges on
management consciousness. Today, both are on the management agenda.
For the rest of this paper, we start from the premise, validated
by our trend analysis and research, that neither the Internet nor
knowledge management are 'fads', but will be fundamental factors
in future business strategies for most organisations. We start by
examining these trends and their underlying characteristics. These are
then drawn together into the role of information and IT to
support knowledge management activities. The paper concludes with a
series of implications for information professionals and online service
providers.
2. The Knowledge Agenda
2.1 Momentum of Knowledge Awareness
The interest in knowledge as a strategic lever in business is not
new. In the 1970s and 1980s there were great expectations that knowledge
based computer systems ('expert systems') could harness
knowledge to solve many business problems. That promise was only
partially fulfilled and certainly not to the extent that workers in the
field had hoped. In retrospect the problem was that developers
focused too much on what has been described as "falling into the trap
of trying to develop 'thinking machines' rather than using machines to
augment human thinking" (Skyrme 1990).
The more general view of the pervasive role of knowledge in
business activities, has evolved from a number of management writers and
practitioners as portrayed by Amidon (1997) in her 'Wellsprings
timelines' - hindsight, insight and foresight. This shows the
evolution and convergence of thinking and writing about knowledge as a
strategic focus, alongside other initiatives such as agile
manufacturing, innovation and the learning orignization. In our
discussions with managers during 1996 and early 1997, the two most
important written influences cited were the ongoing series of
articles by Stewart in Fortune (Stewart 1993, 1995), and of the book by Nonaka and Takeuchi (1995) The Knowledge Creating Company.
The latter, in particular, has provided managers with
a framework for distinguishing between explicit and tacit knowledge
and the conversion processes between them. They describe explicit
knowledge as that which:
"can be expressed in words and numbers and can be easily communicated and shared in the form of hard data, scientific formulae, codified procedures or universal principles"
and contrast it with tacit knowledge which
"is highly personal and hard to formalise. Subjective insights, intuitions and hunches fall into this category of knowledge."
The four conversion processes they describe are:
- Tacit-to-tacit (socialisation) - where individuals acquire new knowledge directly from others;
- Tacit-to-explicit (externalisation) - the articulation of knowledge into tangible form through dialogue;
- Explicit-to-explicit (combination) - combining different forms of explicit knowledge, such as that in documents or on databases;
- Explicit-to-tacit (internalisation) - such as learning by doing, where individuals internalise knowledge from documents into their own body of experience.
2.2 Contribution of Knowledge to Business Success
Knowledge adds value to a business through its products, processes
and people. The product contribution of knowledge is described by Davis
and Botkin (1994). They describe six features of
knowledge-based businesses:
- The more you use knowledge-based offerings, the smarter they get.
- The more you use knowledge-based offerings, the smarter you get.
- Knowledge-based products and services adjust to changing circumstances.
- Knowledge-based businesses can customise their offerings.
- Knowledge-based products and services have relatively short life cycles.
- Knowledge-based businesses enable customers to act in real-time.
Recent examples of the growing intensity of knowledge in products
are the intelligent oil drill, which 'knows' the shape of the reservoir
it is drilling, and the intelligent car, whose engine
management systems can monitor performance of vital parts and 'knows'
when they need servicing. These are examples of where knowledge can
enhance the value of a product in the eyes of the
customer.
Another contribution of knowledge is that in business processes.
Throughout industry there are examples of where individuals or
departments are ostensibly carrying out the same process, but where
the performance levels are quite different. Often it is the 'tacit'
knowledge of the experienced person that makes the difference. The
sharing of best practices from one part of an organization to
another is therefore a key component of many knowledge management
programmes. For example, Texas Instruments was able to save the
equivalent of the investment in a new semiconductor fabrication
plant, by sharing best practices between their existing plants
(O'Dell 1996).
The value of knowledge as manifest in an organisations products,
its intellectual capital (such as patents and licences), people (human
capital) and processes (structural capital) is very evident
when the book value of a company, as measured by traditional
accounting methods, is compared with its market value, which takes into
account the marketplace perception of intangible value not
measured by accountants. For many high-tech companies (such as
Microsoft) or knowledge intensive companies (such as biotechnology
companies) this factor is ten or more to one.
The net result is that as the value and contribution of knowledge
becomes more evident, that organisations are investing in initiatives to
manage and harness that knowledge. This means a
systematic approach to managing the processes for creating and
capturing it, classifying it and storing it, disseminating and using it.
2.3 State of Knowledge Practice
During 1996, as part of the research for a 500-page report on
knowledge management, we investigated the state of knowledge management
in various companies around the world (Skyrme and Amidon
1997). This included literature reviews, case study interviews and
the results of an Ernst ∓ Young/Business Intelligence two continent
survey (North America and Europe). The survey showed that
nearly 90 per cent of senior managers believed that their
organisations were in a knowledge-intensive business, whatever their
industry. It also revealed different perceptions of the value of various
activities and of the contribution of technology across different
industries and functions. Our research showed that the following were
common activities that were taking place in knowledge
management initiatives:
- Creation of knowledge teams - people from all disciplines to develop the methods of knowledge management
- Sharing of best practices - from one part of the organization to
another, through databases, but also through personal interaction and
sharing events
- Development of knowledge databases - best practices, expert directories, market intelligence etc.
- Creation of Knowledge Centres - focal points for the development
of knowledge skills, managing and enhancing knowledge databases and
facilitating knowledge flow
- Collaborative Technologies - the use of Intranets (internal Internet) or groupware for rapid information access
- Intellectual Capital teams - to identify and audit intangible assets such as knowledge.
One shorthand way of summarising the knowledge movement, is to say
that it is to get the right knowledge at the right place, at the right
time. If this is done expeditiously, customer service can
be improved through solving problems better, new products brought to
market quicker, business processes continually improved, and innovative
new ideas brought to commercialisation. What many
practitioners have found, is that it the flow of knowledge that is
important. This is where networked computer and communications
technology plays an important role.
3. The Internet (R)evolution
3.1 The Evolution of Computing in the Workplace
One of the most widespread ways in that technology supports
knowledge processes, is not through simple point solutions, such as
expert systems or group decision support systems, but through
enterprise wide information and knowledge sharing infrastructures.
Groupware conferencing systems like Lotus Notes and Intranets were very
evident.
Figure 1 - The Evolving Role of Information Technology
If one traces the evolution of the contribution of information and
communications technologies (ICT) in the workplace, the focus has
changed over time (Figure 1). In the 1960s and 1970s the focus
was on automating procedures. We even called the discipline data
processing at the time. During the 1980s the leading edge was moving
toward communications, most notably through electronic mail. At
this time, online access to information through networks was also
growing appreciably. Like manufacturing automation before, as we have
gain the efficiencies in the office through automation of
standard procedures (aided and abetted by BPR!) the locus of computer
software development has shifted to support less structured activities,
those of professional and managers. This is what I call
the cognitive computing focus. We are trying to avoid the mistakes of
the 'black box' mentality of earlier knowledge systems, and develop
systems that augment and support the knowledge work of
humans.
Of these, the one that is having the most profound impact is that
of the Internet and related technologies. As noted earlier, to many it
seems like a revolution, but I prefer to call it an
evolution, since its use has been growing exponentially for many
years. From a knowledge perspective the Internet has several
characteristics that our research found was exploited in various
knowledge programmes:
- It uses a communications standard protocol (TCP/IP) that is
widely supported - this means that it is universally accessible from
many locations and through many different computer platforms
- End-user software, such as electronic mail and World Wide Web
browsers are universally available and are low cost (and often free) -
this makes it cost effective to implement on an enterprise
wide basis
- Internet access is widely available throughout the world,
increasingly with international providers - this means that a company's
employees, especially those that travel a lot, can use the
Internet rather like a corporate network; we found several
organisations using a global service like CompuServe as a better option
than building an in-house corporate network
- The World Wide Web. This provides a quick means of publishing information that can be shared on a world-wide basis: "every user is also a publisher". This universal repository of information means that information resources can be updated and widely shared at an attractive cost.
In fact, it can be said that it is the World Wide Web that made
the Internet popular among most business users. We now have something
akin to Doug Engelbart's notion of a 'docuverse' - a document
universe that interlinks pages of information. I'm sure some of you
still use Gopher, Verocia and Archie, but for most end-users, the Web
represents the Internet.
3.2 Internet vs. Online
It is appropriate here to consider the many criticisms of the
Internet that have been made to me by online service providers, who
perhaps at the time did not want the Internet to be so successful
(although they now have a different view that they are embracing it).
First, there is often the criticism that "you get what you pay for",
and since the "web is free" then the information is not
worth much. In fact, many areas of useful information on the Web are
not free - users pay for them, albeit usually on a 'pay-by-use' basis
rather than an up front subscription as for many traditional
online services. In fact, I have spent money on searched items and
subsequently found I could have got the very same item for free on the
Web! Second, the Internet is not secure. This is true if you
are dealing with really sensitive information. But for most people
seeking information and knowledge this is not a real issue.
Two criticisms that do have some validity are that it is slow and
difficult to find information. Actually the Internet is very fast when
you consider how quickly information can be retrieved from
the vast databases that it holds. Obviously if you use a local CD-ROM
or proprietary online service you can get information quicker, but if
you look at the end-to-end time, from developing a search
strategy to collecting information, and the time an end-user might
have to spend briefing an intermediary, then the difference is often not
that great.
Perhaps the most valid criticism is that the information is very
variable in quality and the way it is organised. However, there are a
number of resource sites that are building up categorised
information and archive databases that compare favourably with online
services. Online services have been perfecting their database
techniques, their classification schemes and keywords for many
years and provide a standard familiar interface to their disparate
sources of information. Their value added comes in sourcing, classifying
and refining information. This is worth a premium, but
charges will undoubtedly have to come down to meet the increased
availability of low cost information on the Internet.
In summary, the Internet is an incredible information source, and
it has brought information directly to the end-users, without involving
an intermediary such as a librarian or information
professional. Furthermore, technology developments on the Internet
will really improve matters in the near future. Examples include more
intelligent search engines and intelligent software agents,
that roam the net and bring back relevant information to your
desk-top. This poses challenges for online providers and information
professional alike. How can we serve the end-user better? How should
we meet the opportunities and the challenge of the Internet? As is
already happening, the world of online services and the Internet are
converging. Users want the best of both worlds, the
accessibility, universality, ease-of-use and low cost of the Internet
combined with structured, organised and (in some cases) the exclusive
information of online services.
3.3 The Knowledge Dimension
So far in this paper, the consideration of the Internet has been
almost entirely to do with its information role. But by the time
knowledge becomes encoded in a database, it is 'explicit'
knowledge. In many respects effective sharing of tacit knowledge
needs the face-to-face socialization process as described by Nonaka and
Takeuchi. This is difficult over a distance although new
technologies such as viedoconferencing are helping. If companies want
to share the best knowledge they have to tap into experts wherever they
happen to be - world-wide, inside or outside of the firm.
The Internet here pays the role of enhancing remote access, through
making the necessary connections and enhancing global communications.
Users congregate in areas of shared interests, and start
electronic conversations.
Electronic mail is the main way that this happens, but computer
conferencing, such as with Lotus Notes, is popular in a corporate
setting. However, knowledge sharing across organisational
boundaries is increasingly required. Therefore, Internet facilities
such as electronic mail discussion lists are a way that individuals
working in dispersed multi-company teams, an increasingly
common facet of organisational life, can converse together over a
distance. The European Telework Development project is one example,
where the project was originally formulated electronically, and
where almost all of the day to day activities between 30 participants
in 15 countries, takes place that way (Mitchell 1996). While there are a
growing number of Web conferences, companies that are
most developed in sharing and developing knowledge over electronic
networks seem to prefer a fully functional groupware product such as
Lotus Notes, now Web enabled through its Domino version.
3.3 Intranets
It is the ease of use that have made the use of Internet
technology, such as browsers and search engines, of interest to
companies wanting to share information. The advantages in a corporate
setting of using Intranets (internal Internets) are similar to those
that make use of the Internet attractive in external information access
and communications. End-users are familiar with browser
interfaces, information can be shared across different local area
networks and computer platforms, and published information is instantly
available over the whole network. Furthermore this
information need not just be HTML (the Web mark-up language)
documents, but can be in any number of common formats, such as word
processed documents. Increasingly Intranets are also hosting
transaction and database applications with the Web browser being the
universal interface to different 'back-end' systems.
Thus an Intranet can connect everyone with everyone else, and can
facilitate sharing of company information, and with Internet gateways
external information. As with the Internet, the issues of
organising and managing information becomes problematical. There is
also the added tensions within an organisation of what is 'official'
information and what 'informal'. Intranets are surfacing many
organizational cultural issues, such as 'information politics'! (CIO
1996)
4. Knowledge Work Support
4.1 The ICT Contribution
In analysing knowledge work we found that information and
communications technologies enhance knowledge processes and support
knowledge workers in several ways:
- Ready access to organised information
- Better communications and interaction with fellow knowledge workers (either individually or in groups)
- Access to personal knowledge support tools (such as cognitive mapping tools)
- Use of specific point solutions (e.g. risk analysis in lending)
- Group decision support systems that facilitate decision making processes.
These represent combinations of person-to-computer and
person-to-person interaction. Access to relevant information is not just
though information databases. It is common to have information
screens that support business process applications. For example, at
insurance company CIGNA, the knowledge of their best experts has been
incorporated into help screens in their underwriter's desk
top system.
4.2 Support for the Knowledge Value Chain
The number of ways in which computers support knowledge work is
very varied and makes planing for it quite difficult. We have developed
half a dozen frameworks that position the various support
mechanism along different dimensions. We share two of the here. The
first is along a knowledge processing value chain (Figure 2).
Figure 2 - Computer support for knowledge processes
First, computer support can make the input processes more
effective. This means selecting information and knowledge that is
relevant. Text summarising for, example extracts the key parts from a
document, so that the reader can gain most of the sense in only a
fraction of the original. British Telecom research has found that
virtually no important meaning is lost with a 25 per cent
abridgement of the original document. Data mining extracts new
knowledge from existing data. It can find patterns that humans cannot,
but considering many more dimensions and variables.
In terms of the knowledge base, what we found was an increasing
emphasis of adding some context to the information. This might be a
fuller description of the application of the information, an
indication of the quality of the source, and many other little human
touches that are often not found in formal databases, but which happen
in day-to-day conversation. Some companies now add
multimedia commentary e.g. the "expert speaks or demonstrates".
Finally, in terms of dissemination and use, as noted before it is
the roll-out of Intranets and groupware that is having the most impact
on knowledge management. The 'black box' expert systems,
and other point solutions to knowledge problems, are growing in
popularity for specific applications. However, Intranets and groupware
are seen as a universal solution to the primary need for
knowledge sharing, from best knowledge and expertise to the point of
action, from those who have it, to those who need it. It provides a
foundation for the sharing of information or 'explicit
knowledge' as encoded in databases and 'tacit' knowledge, as
partially transmitted in email and other conversations. Often computer
communications help make the connections between people, who
subsequently follow up with "richer" communications methods, such as
videoconferencing or face-to-face. BP, for example, have rolled out
videconferencing as a key plank of their knowledge management
initiative, in their virtual teamworking project. This allows experts
and knowledge workers to communicate effectively and share 'tacit'
knowledge without the need to travel.
4.3 Layers of Infrastructure
Another useful perspective on the role of ICT in knowledge
management is the role of technology infrastructure. If, as noted,
technologies that allow collaborative work, such as the Intranet and
groupware, are needed, what are the building blocks to have a truly
effective infrastructure. Figure 3 shows the 'stepping stones' that
together build an enterprise-wide and inter-enterprise
collaborative infrastructures.
Layered elements of a collaborative technological infrastructure
They represent ever complex layers of functionality:
- Connections - the ability to connect anyone into the network at
any time. Portable computer and mobile phones are an example. One case
we investigated, Buckman Laboratories, invests only in
portable, not desk top, computers. A person's office is where their
computer is, and wherever they can plug it into the international
telephone system and the company network.
- Communications - establishing communications facilities such as
electronic distribution lists, electronic meeting places (forums and
discussion lists).
- Conversations - developing techniques and skills in conversing
electronically; extracting meaning from ongoing threads of conversation.
There is a role here for what is increasingly called a
'knowledge editor'.
- Collaboration - developing a toolcase of collaborative tools, or knowledge collaboration 'archetypes'; supplementing these with moderators who nurture the development of new knowledge through a wide range of contributions.
Not only are these technology layers, but they are process layers
as well. The human and organisational factors become more important the
higher the layer. Thus, BP found that for videconferencing
to work effectively, needed personal coaching when it was introduced.
If a knowledge support architecture is defined in terms of these
levels, it clearly identifies the potential an organisation has
to effectively create and share knowledge. Whether they realise this
potential depends crucially on other factors, mostly organisational in
nature.
5. Strategies for Success
5.1 Success Factors
Our research showed that the greatest inhibitor to knowledge
sharing was inappropriate behaviours and organisational culture. The
syndrome "knowledge is power" predominates too often. It is beyond
the copse of this paper to go into the organisational and behavioural
aspects, that were so important that they took two chapters of the six
central chapters of our report (Skyrme and Amidon 1997).
In summary, a number of recurring factors do stand out in a
successful knowledge programme:
- A knowledge leader or champion - someone who actively drives the knowledge agenda forward, creates enthusiasm and commitment.
- Top management support - a CEO who recognises the value of knowledge and who actively supports the knowledge team in its work.
- A clear value proposition - identification of the link between
knowledge and the bottom line business benefit; new measures of
performance and appropriate rewards.
- A compelling vision and architecture - frameworks that drive the agenda forward.
- Effective information and knowledge management processes.
We will focus on the latter as it is the province of many
information professionals. What we found was that those that were
successful had successful developed a co-operative team that involved
those with information management skills, IT knowledge (especially of
Internet technologies) and change agents. However, we found a general
lack of awareness among top management of the contribution
of good information management. For example, identifying important
knowledge is often an important starting point in a knowledge programme.
Yet there was little appreciation that information
resources management (IRM) through techniques such as information
audit, could make a strong contribution.
Organisations are crying out for a systematic approach that
gathers information, classifies it, adds value to it and supports the
knowledge sharing process. We found that some of the management
consultancies, whose business after all is "knowledge", were furthest
ahead. Price Waterhouse, for example, not only have their
KnowledgeViewSM database of best practices, but also have a taxonomy
that aids sharing of information across business disciplines and
industries, a knowledge centre, and many other features of good
practice.
5.2 Implications for Information Professionals
The knowledge agenda and the growth of the Internet means that
there is an opportunity to elevate the skills developed over many years
in handling information to a higher level and become active
in the knowledge agenda. Certainly the overall visibility of
information professionals needs to be improved. On the one hand the
Internet makes information more readily accessible to the end-user,
thus to some extent by passing the need to get involved in mundane
activities. On the other it has created a heightened awareness of what
information is available, yet tools, such as search engines,
may not be effectively used. Users are facing the information paradox
- "drowning in data, yet short of intelligence". The implications for
an information professional, that we draw from our
analysis, are that you should:
- Articulate the value added that good information management can
bring to your organisation and its contribution to the bottom line.
- Develop closer partnerships with the knowledge champions in your
organisation. They need your skills and you might benefit from their
current popularity among senior management!
- Help the users help themselves. Provide more "how to" guides so
that they can make more effective use of the only information resources
at their disposal, including the Internet/Intranet as an
information resource.
- Be an active Internet/Intranet user yourself. Use email as a
primary means of communication. Work in discussion lists and have your
own groupware areas, one for peer knowledge sharing of best
practice, and one for your client base.
- Seek out best practice, wherever it is. When did you last benchmark your activities against a comparable activity externally?
5.3 Implications for Online Service Providers
The Internet is here to stay and growing in stature all the time.
By now, most online service providers have recognised the inevitable and
have strategies to embrace the Internet. However, they
need to avoid the air of complacency that was evident a few years
ago. The need for well organised information is as real as ever, but
organisations will want to put it into their own frame of
reference. The implications are therefore:
- Don't get caught out with technological myopia in future. There
are trend analysis techniques that help you identify what is coming and
what wilt take hold. This is truer today as the Internet
growth is fuelling significant investment into new software and
technologies. Some of these technologies could really boost your product
offering.
- Segment and segment again. The days of the "one product serves
all" are over. Marketers are taking of the ultimate segment of one.
Discerning patterns of use by individual users (do some data
mining!) and you can fine tune your offering and sell them more.
- Develop a better understanding and closer relationship with your
end-user. Understand more about knowledge work, and that information you
provide does not stand-alone. It is part of a wider
knowledge process. Thus new segmentation of information and new
categories (e.g. problem categories) may be more useful than your
existing ones.
- Re-evaluate your business models and pricing strategy.
Organisations are sliming down and there's more opportunities for
'pay-as-you-go' rather than up front subscriptions.
- Develop hybrid solutions. This not only means combining CD-ROM with online, but also looking at human augmentation of your services. e.g. automatic email to subject matter experts, online videoconferencing while browsing through information. The future will be in knowledge networks, not information networks.
6. Conclusion
This paper has drawn together two main strands of current
management focus - the Internet and knowledge management. Each has a
momentum of its own. However, in combination, they provide a powerful
driving force for business and individual opportunities. We have
summarised some highlights from our research into this interaction and
indicated some of the ways in which information professionals
and online service providers can exploit this convergence.
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source: http://www.skyrme.com/pubs/on97full.htm
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