Knowledge Management Systems: Concepts, Hierarchies, and Models

Introduction to Knowledge Management Systems

Basic Terminology: Data, Information, and Knowledge

Understanding the distinctions between data, information, and knowledge is foundational in knowledge management. These concepts form a hierarchy that underpins organizational learning and decision-making.

• Data: Unorganized and unprocessed facts; static in nature and represents discrete facts about events. Data is the raw material for information.

• Information: Aggregated and processed data that is meaningful and purposeful, making decision-making easier. Information is derived from data.

• Knowledge: Human understanding of a subject matter, acquired through study and experience. Knowledge is based on learning, thinking, and understanding, and is derived from information.

Additional info: Knowledge integrates human perception and cognitive processes to draw meaningful conclusions.

Information, Knowledge, Wisdom Hierarchy

Hierarchy Structure and Characteristics

The hierarchy illustrates the progression from raw facts to wisdom, emphasizing increasing completeness, objectivity, and actionable value.

• Facts: The base level, representing raw data.

• Information: Processed facts that are relevant and actionable.

• Knowledge: Information adapted to purpose, with the potential to influence action.

• Wisdom: The highest level, representing completeness and the ability to make sound judgments.

Level	Characteristics
Facts	Raw, unprocessed data
Information	Processed, relevant, actionable
Knowledge	Integrated, purposeful, influential
Wisdom	Complete, objective, sound judgment

Knowledge: Importance and Properties

Why is Knowledge Important?

Knowledge is a critical resource for organizations, enabling effective decision-making and innovation.

• Dependency: Information is dependent on knowledge for context and application.

• Purpose: Knowledge adapts information to specific purposes.

• Action: Knowledge has the potential to influence action and drive organizational success.

• Expertise: The process of applying expertise is a key aspect of knowledge.

Example: In a business context, knowledge about market trends enables managers to make informed strategic decisions.

Types and Kinds of Knowledge

Explicit vs. Tacit Knowledge

Knowledge can be classified based on its form and how it is shared within organizations.

• Explicit (Codified) Knowledge: Formal, documented knowledge such as reports, manuals, databases, and books. Easily shared and stored.

• Tacit (Implicit) Knowledge: Informal, uncodified knowledge embedded in human minds, such as memories, skills, and experiences. Difficult to formalize and transfer.

Example: A written procedure for customer service is explicit knowledge, while the intuition of an experienced manager is tacit knowledge.

Classifications of Knowledge

• Expert Knowledge: Acquired through years of experience.

• Know-How: Accumulated lessons and practical experience.

• Common Sense Knowledge: Basic understanding possessed by most individuals.

• Heuristics Knowledge: Reasoning by analogy, deduction, and induction.

Additional info: Scientific discovery often relies on inductive reasoning, moving from specific observations to general conclusions.

Procedural, Declarative, Semantic, and Episodic Knowledge

• Procedural Knowledge: Understanding of how to perform procedures.

• Declarative Knowledge: Routine, easily recalled information.

• Semantic Knowledge: Organized knowledge, including facts and relationships.

• Episodic Knowledge: Knowledge based on specific events or episodes.

Knowledge Management (KM)

Definition and Components

Knowledge Management is the process of acquiring, creating, sharing, and using knowledge to achieve organizational objectives.

• Processes: Acquiring, creating, sharing, and applying knowledge.

• Culture: Establishing a knowledge-focused culture is essential for successful KM.

• Technology: Information systems and IT tools facilitate KM initiatives.

Example: A company uses a centralized database to capture and share best practices across departments.

Intellectual Capital: Human vs. Structural Capital

Types of Intellectual Capital

• Human Capital: Knowledge possessed by employees, managers, vendors, and customers.

• Structural Capital: Organizational assets such as databases, manuals, trademarks, and business processes.

Type	Description
Human Capital	Knowledge in people's minds
Structural Capital	Organizational systems and processes

Benefits of Knowledge Management

Organizational Advantages

• Enhances core business competencies

• Accelerates innovation and time to market

• Improves decision-making and cycle times

• Strengthens organizational commitment

• Provides sustainable competitive advantage

Example: Implementing a KM system reduces training time and improves service quality.

Knowledge Management Systems (KMS)

Definition and Purpose

KMS are integrated systems of people, procedures, software, and databases designed to create, store, share, and use organizational knowledge.

• Facilitate sharing and growth of knowledge

• Promote a culture of information sharing

• Enable efficient knowledge dissemination and application

Classifications of KMS

• Knowledge Discovery Systems

• Knowledge Capturing Systems

• Knowledge Sharing Systems

• Knowledge Application Systems

• Artificial Intelligence and Machine Learning Technologies

Knowledge Management Models

SECI (Knowledge Spiral) Model

The SECI model (Nonaka & Takeuchi, 1995) describes how tacit and explicit knowledge are transformed in organizations through four modes:

• Socialization (Tacit to Tacit): Sharing experiences through observation, imitation, and practice.

• Externalization (Tacit to Explicit): Making tacit knowledge explicit through concepts, images, and documentation.

• Combination (Explicit to Explicit): Integrating different types of explicit knowledge to create new knowledge.

• Internalization (Explicit to Tacit): Applying explicit knowledge to develop new tacit knowledge through learning-by-doing.

Organizational Epistemology Model (Von Krogh & Roos, 1995)

This model distinguishes between individual and social knowledge, focusing on how knowledge is created, acquired, and managed within organizations.

• Epistemology: Theoretical understanding of knowledge creation and use.

• Ontology: Nature of reality and how it is perceived by individuals and organizations.

• Methodology: Methods and processes for managing knowledge.

Knowledge Type	Description
Tacit	Difficult to articulate, such as skills and intuition
Explicit	Codified, documented knowledge
Embedded	Part of organizational routines and culture
Cultural	Shared beliefs and norms

Sense-Making KM Model (Choo, 1998)

Focuses on organizational adaptation through sense-making, knowledge creation, and decision-making.

• Sense Making: Interpreting information to adapt to dynamic environments.

• Knowledge Creation: Organizational learning to develop new abilities and products.

• Decision Making: Choosing plausible actions aligned with strategy.

Wiig Model for Building and Using Knowledge (1993)

Emphasizes completeness, connectedness, currency, perspective, and value in knowledge organization.

• Completeness: All parts of knowledge are accounted for.

• Connectedness: Knowledge parts are related.

• Currency: Unity and consistency of knowledge.

• Perspective: Different fields view knowledge differently.

• Value: Use determined by the value of knowledge.

Knowledge Management Cycle

Stages of the KM Cycle

The KM cycle describes the transformation of knowledge through various stages in an organization.

• Discovery: Development of new tacit or explicit knowledge from data and information.

• Capture: Retrieving explicit or tacit knowledge from individuals, artifacts, or organizational entities.

• Sharing/Dissemination: Transferring knowledge to others for effective action.

• Application: Utilizing knowledge to guide decisions and perform tasks.

Example: A new product idea is discovered, captured in a report, shared with the team, and applied in product development.

Summary Table: KM Cycle Processes

Process	Description
Discovery	Creating new knowledge
Capture	Retrieving existing knowledge
Sharing	Disseminating knowledge
Application	Using knowledge for action