Knowledge Management: What Every Information Professional Should Know.

• Author: DUFFY, JAN

AT THE CORE

THIS ARTICLE EXAMINES:

* How to maximize the potential of organizational knowledge

* How to use KM to out-think the competition

* The difference between knowledge and information

New Web-enabled technologies continue to expand the reach of the extended enterprise. This expansion demands new and more complex skills of all information management and information technology professionals to facilitate its evolution. As the global reach of business expands and companies become larger and more geographically dispersed, it becomes increasingly difficult for them to know where their best knowledge is and even more difficult for them to "know what they know."

Every information manager needs to appreciate fully the scope and opportunity that knowledge management (KM) offers to the extended enterprise. This article will help information professionals and others to recognize and exploit the full potential of organizational knowledge. Because every employee can potentially contribute to enhancing an organization's knowledge, the information here is intended for widespread distribution.

The term knowledge management is commonly used to describe the process of locating, organizing, transferring, and using information. It is certainly true that many examples of KM are really instances of information retrieval. However, in organizations where KM has become a way of life, it is so much more -- it is central to capitalizing on the forces that are reshaping the business world.

Winning companies out-think the competition. Success is about how many good ideas can be generated, how many problems can be solved, and -- in both instances -- how fast. Can a sales person in Singapore quickly reuse a proposal that was written and used successfully in Atlanta? Can a product development group take advantage of feedback gathered from customers around the world? Can good ideas developed in Montreal be shared with engineers in Bombay? In today's highly competitive environment, organizations must be willing and able to take advantage of their "best brains" regardless of where they reside.

Organizations are no longer linked together in a linear value chain; they are connected to form a web, which presents a much more complex tableau. As illustrated in Figure 1, the extended enterprise represents the multiple connections between and amongst the enterprise and its customers, suppliers, distributors, and other service providers. An integrated suite of technologies that operate across a distributed environment supports this business model.

[Figure 1 ILLUSTRATION OMITTED]

At the heart of this extended enterprise, or web, are the traditional, internally focused information systems designed to manage the flow of information circulating within organizational boundaries. But, more importantly, surrounding the extended enterprise are the externally focused information systems designed to manage the flow of information into and out of the enterprise. In this way, knowledge can flow freely between individual and organizational partners, customers, and other allies. However, without a deliberately designed and implemented KM environment, it is unlikely that this cross-learning will take place to any significant degree.

The value of the extended enterprise lies in capitalizing on the links and synergies that develop at any number of contact points in the value net. In turn, the richness of these links and synergies depends on a steady exchange of knowledge and information throughout the extended enterprise.

For example, fully integrated customer KM provides the means of capturing information obtained from and about customers. The type of touchpoint is insignificant; it could be a telephone conversation with a sales representative, self-service using the Internet, e-mail exchange, or after-sales support from customer service. Once this information is collected, stored, and organized, it can be analyzed and accessed in many ways by many users. It could be used to forecast demand and, thus, support effective manufacturing planning and scheduling. Knowledge of individual customers' likes and dislikes can also be used to design effective targeted marketing initiatives and influence product design. Obtaining optimum benefit lies in implementing a well-designed...