Chapter 1: “The Knowledge-Based Company”
Chapter 2: “Intellectual Capital – the Context of Knowledge Management”
Chapter 10: “Human Centered Knowledge Management”

From: Corporate Memory: Strategies for The Knowledge Management by Annie Brooking. International Thomson Business Press, 1999

Summarized by: Ari Bancale
25 July 2001
Summary:

Chapter 1: The Knowledge Based Company

Data are facts, pictures, numbers presented without a context. Information is organized data presented in context.  Knowledge is information together with understanding of what it means and how to use it.

KM is making sure that access to knowledge is available to the right person, at the right time and in the right place.

Just having the knowledge does not mean that people will buy your product, corporate positioning and customer mind share is also important.

Knowledge lies in people.

Knowledge-based industries are those where the added value of the employees is the knowledge they possess, which typically can be transferred from one situation to another.

The emerging global market has made knowledge as a necessity to competitiveness.

The Internet has pushed us into information overload. KM must provide the interpretation of the relevance of the information.

A KM practice - Gathering of customer information and customization of products and services to the exact needs and desires of the individual customer. This is called one-to-one marketing.

KM Concepts

  1. Knowledge = Information + Understanding
  2. Knowledge is underutilized in the organization
  3. Knowledge adds value to products & services
  4. Knowledge provides competitive advantage


Chapter 2: Intellectual Capital – The Context for Knowledge Management

Intellectual capital started out as goodwill. Now, it is the combined intangible assets which enable the company to function.

Components of Intellectual Capital:

  1. Market assets – include brands, positioning, customer base, company name, backlog, distribution channels, collaborations, franchise agreements, licensing agreements, and favorable contracts.
  2. Intellectual property assets – include patents, copyright, design rights, trade secrets, trademarks, etc.
  3. Human centered assets – comprise the collective expertise, creative and problem solving capability, leadership, entrepreneurial and managerial skills embodied by the employees.
  4. Infrastructure assets – include management philosophy, corporate culture, management and business processes, financial relations, methodologies and IT systems.
Intellectual Capital Method (IC method)– looks at the attributes of a company that do not appear on the balance sheet.

Indicators to evaluate a business opportunity:

  1. Goal - e.g. 10% growth in market share
  2. Intellectual capital (see components above)
  3. Dream ticket – set of assets which have to be present in order for the goal to be met.
  4. Audit – activity of gather information on the relative strength or weakness of the elements of the dream ticket.
  5. Index – The index is constructed following an audit of the asset and a comparison of its status with that of the dream ticket.  If the status of the asset matches the dram ticket it is ranked 5, if it is very weak, it is ranked 1, and if the company did not even know the asset was required it is ranked at zero.
  6. Target – shows the status of all assets in one representation. A directional arrow shows whether the asset is becoming stronger and moving toward the center of the target or weaker and moving away.
  7. Measures – actions which can be implemented in order to improve the status of assets over time.


Intellectual capital audit process

  1. Identify goals, domain constraints & transition
  2. Characterize “Dream Ticket”
  3. Select audit methods
  4. Audit assets
  5. Document assets
  The final product is the IC Knowledge Base

Targeting intellectual capital

IC Indicators

In my company…

  1. Every employee knows what his or her job is and how it contributes to corporate goals.
  2. Each employee is treated as a rare asset, and management strive to fit each person into the optimal job.
  3. Every employee has the opportunity to create a career plan with the company.
  4. We evaluate ROI on R&D.
  5. We identify know-how generated by R&D.
  6. We know who our repeat customers are.
  7. We evaluate ROI on the distribution channel.
  8. We have a proactive intellectual property strategy.
  9. We audit all our licensing deals.
  10. We ensure there is synergy between employee learning programs and corporate goals.
  11. The position we have in the mind of the prospect is the same as we promote.
  12. We know the value of our brands.
  13. Every scientist and engineer understands the rudiments of patent protection.
  14. We generate new intellectual capital thru business collaboration
  15. Our management processes make us strong.
  16. There is the infrastructure to help the employees do a good job.
  17. There is a mechanism to capture employees’ recommendations to improve any aspect of the business.
  18. Employees are quickly rewarded for helping the company to achieve its corporate goals.
  19. We understand the innovation process and encourage all employees to participate within it.
  20. Our corporate culture is one of our greatest strengths.


Chapter 10: Human Centered Knowledge Management

KM is about people. The goal of a KM system should be to aim at making employees “all knowing”.

KM Concept #38 - Know What You Know

Some reasons a company might want to deploy a KM system:

  1. To know where particular expertise resides in the company.
  2. To know what expertise is being lost when an employee leaves.
  3. To know which individuals could perform a task in a team.
  4. To understand how knowledge flows within the company
  5. To track competencies and proficiencies in the company.
  6. To track the loss or acquisition of a particular competence or proficiency.
  7. To locate documents and other media on particular topics
  8. To assist in planning for training.
  9. To assist in planning for recruiting.
  10. To access anecdotal material on customer accounts, problem solving, etc.
Profiling a person

It is impractical to consider trying to do a comprehensive study of every employee in the company. The best thing to do is to identify a part of the organization where improving access to knowledge would have a positive effect on the company very quickly.

Sample profile components:

  1. Mission – motivations of the person
  2. Education
  3. Job Related Knowledge
  4. Hobbies
  5. Competencies and Proficiencies
  6. Psychometrics
  7. Professional

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