APPROACHES TO KNOWLEDGE MANAGEMENT THE PROCESS APPROACH

9.5 APPROACHES TO KNOWLEDGE MANAGEMENT THE PROCESS APPROACH

There are two fundamental approaches to knowledge management: the process approach and the practice approach (see Table 9.1).The process approach attempts to

codify organizational knowledge through formalized controls, processes, and tech-

C H A P T E R 9 KNOWLEDGE MANAGEMENT

TABLE 9.1 Process and Practice Approaches to Knowledge Management.

Process Approach

Practice Approach

Type of Knowledge Supported

Explicit knowledge—codified in rules,

Mostly tacit knowledge—unarticulated

tools, and processes ( D e L o n g and

knowledge not easily captured or codi-

Fahey, 2000)

fied (Leonard and Sensiper, 1998)

Means of Transmission

Formal controls, procedures, and

Informal social groups that engage in

standard operating procedures with

storytelling and improvisation

heavy emphasis on information

(Wenger and Snyder, 2000)

technologies to support knowledge creation, codification, and transfer of knowledge (Ruggles, 1998)

Benefits

Provides structure to harness generated

Provides an environment to generate

ideas and knowledge (Brown and

and transfer high-value tacit knowl-

Duguid, 2000)

edge (Brown and Duguid, 2000;

Achieves scale in knowledge reuse

Wenger and Snyder, 2000)

(Hansen et al., 1999)

Provides spark for fresh ideas and

responsiveness to changing environ- ment (Brown and Duguid, 2000)

Disadvantages

Fails to tap into tacit knowledge. May

Can result in inefficiency. Abundance of

limit innovation and forces partici-

ideas with no structure to implement

pants into fixed patterns of thinking

them.

Role of Information Technology Heavy investment in IT to connect

Moderate investment in IT to facilitate

people with reusable codified

conversations and transfer of tacit

knowledge (Hansen et al., 1999)

knowledge (Hansen et al., 1999)

Source: Adapted from Alavi, Kayworth, and Leidner (2003).

implement explicit policies governing how knowledge is to be collected, stored, and disseminated throughout the organization. The process approach frequently involves the use of information technologies, such as intranets, data warehousing, knowledge repositories, decision support tools, and groupware (Ruggles, 1998), to enhance the quality and speed of knowledge creation and distribution in the organizations. The main criticisms of the process approach are that it fails to capture much of the tacit knowledge embedded in firms and forces individuals into fixed patterns of thinking

(Brown and Duguid, 2000; DeLong and Fahey, 2000; Von Grogh, 2000). This approach is favored by firms that sell relatively standardized products that fill common needs. Most of the valuable knowledge in these firms is fairly explicit because of the stan- dardized nature of the products and services. For example, a kazoo manufacturer has minimal product changes or service needs over the years, and yet there is steady demand and a need to produce the item. In these cases, the knowledge is typically sta- tic in nature.

Even large firms that utilize tacit knowledge, such as Cap Gemini Ernst & Young, have invested heavily to ensure that the process approach works efficiently. The 250 people at Cap Gemini Ernst & Young's Center for Business Knowledge manage an

electronic repository and help consultants find and use information. Specialists write reports and analyses that many teams can use. And each of Cap Gemini Ernst & Young's more than 40 practice areas has a staff member who helps codify and store documents. The resulting area databases are linked through a network (Hansen et al.,

1999). Naturally, people-to-documents is not the only way consultants in firms like Cap Gemini Ernst & Young and Accenture share knowledge; they talk with one another as

well. But they do place a high degree of emphasis on the codification strategy (Hansen

523 P A R T 111 ' COLLABORATION, COMMUNICATION, ENTERPRISE DECISION SUPPORT SYSTEMS, AND KNOWLEDGE MANAGEMENT