Trends in Enterprise Knowledge Management

Trends in Enterprise Knowledge Management Edited by Imed Boughzala Jean-Louis Ermine Series Editor Pierre-Noël Favennec

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Trends in Enterprise Knowledge Management

This page intentionally left blank

Trends in Enterprise Knowledge Management Edited by Imed Boughzala Jean-Louis Ermine Series Editor Pierre-Noël Favennec

First published in France in 2004 by Hermes Science/Lavoisier entitled Management des connaissances en entreprise First published in Great Britain and the United States in 2006 by ISTE Ltd Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address: ISTE Ltd ISTE USA 6 Fitzroy Square 4308 Patrice Road London W1T 5DX Newport Beach, CA 92663 UK USA www.iste.co.uk GET and LAVOISIER, 2004 ISTE Ltd, 2006 The rights of Imed Boughzala and Jean-Louis Ermine to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988. Library of Congress Cataloging-in-Publication Data Management des connaissances en entreprise. English. Trends in enterprise knowledge management / edited by Imed Boughzala [and] Jean-Louis Ermine. p. cm. Includes bibliographical references and index. ISBN-13: 978-1-905209-03-3 1. Intellectual capital--management. 2. Knowledge management. I. Boughzala, Imed. II. Ermine, Jean-Louis. III. Title. HD53.M354 2006 658.4'038--dc22 2006006216 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library ISBN 10: 1-905209-03-7 ISBN 13: 978-1-905209-03-3 Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham, Wiltshire. Cover photo: created by Atelier Isatis, Dijon, France.

Table of Contents Preface.................................. 15 PART 1. Introduction.......................... 21 Chapter 1. Introduction to Knowledge Management........... 23 Jean-Louis ERMINE 1.1. Introduction............................ 23 1.1.1. Knowledge: a strategic value for the firm............ 23 1.1.2. Objectives of KM....................... 23 1.1.3. KM: a new and complex approach............... 24 1.2. The two types of approaches to KM................. 24 1.2.1. Knowledge elicitation..................... 25 1.2.1.1. Tacit knowledge elicitation................ 25 1.2.1.2. Knowledge extraction.................. 26 1.2.1.3. Supporting technologies for explicit (elicited) KM..... 27 1.2.2. Tacit KM........................... 27 1.2.2.1. The functioning modes of knowledge communities..... 28 1.2.2.2. Knowledge community supervision............ 29 1.2.2.3. Supporting technologies for knowledge communities.... 30 1.3. The key factors of success in KM processes............. 31 1.3.1. The water lily strategy..................... 31 1.3.1.1. The pilot project(s).................... 33 1.3.1.2. The federation of KM projects.............. 33 1.3.1.3. Project deployment.................... 34 1.3.2. Change factors........................ 34

6 Trends in Enterprise Knowledge Management 1.4. KM: an action for continuous progress................ 35 1.4.1. Knowledge cartography.................... 36 1.4.2. The repository of KM processes................ 37 1.4.3. The KM actions........................ 39 1.4.4. Piloting processes and actions................. 41 1.5. Conclusion............................ 41 1.6. Bibliography............................ 42 Chapter 2. Can One Identify and Measure the Intangible Capital of the Enterprise?.............................. 45 Patrick EPINGARD 2.1. The intangible capital: an essential and elusive concept........ 47 2.2. Immaterial measurement: a theoretical enigma?........... 54 2.3. Conclusion............................ 62 2.4. References............................. 63 Chapter 3. Complexity Theory: Dynamics and Non-Linearity are the Only Reason for Knowledge Management to Exist.......... 65 Walter BAETS 3.1. Introduction............................ 65 3.2. The knowledge era......................... 66 3.3. The complexity paradigm...................... 68 3.4. What should be understood by KM: the corporate view........ 73 3.5. Research perspective on KM.................... 75 3.6. References............................. 77 PART 2. Academic Studies........................ 79 Chapter 4. Value Creation through Intangibles: Emerging Good Practice.............................. 81 Nigel COURTNEY, Clive HOLTHMAN and Chris HENDRY 4.1. Introduction............................ 81 4.2. A remedy for our times....................... 83 4.3. Dispensing with the mystery.................... 84 4.4. Value creation in the 21 st century.................. 88 4.4.1. Selecting an approach..................... 88 4.4.2. Taking a balanced view.................... 90 4.5. Evidence of good practice..................... 90 4.5.1. Theme 1: brand value..................... 91 4.5.1.1. B&Q.......................... 91 4.5.1.2. Whitbread........................ 92

Table of Contents 7 4.5.2. Theme 2: knowledge..................... 93 4.5.2.1. Bloomberg....................... 93 4.5.2.2. The UK Fire & Rescue Service.............. 94 4.5.3. Theme 3: innovation..................... 95 4.5.3.1. Intercos......................... 95 4.5.3.2. mmo2......................... 96 4.5.4. Theme 4: reporting intellectual capital............. 97 4.5.4.1. Austrian Research Centers (ARC)............. 97 4.5.4.2. Celemi......................... 98 4.6. Key messages........................... 99 4.7. About the authors......................... 100 4.8. References............................. 101 Chapter 5. Learning-by-Doing Knowledge Externalization: From Boundary Objects to the Emergence of Tacit Knowledge......... 103 Jean-Michel VIOLA and Réal JACOB 5.1. Learning-by-doing KM....................... 104 5.2. A process of externalization: knowledge strategy at Power Corp.... 105 5.2.1. Mapping as a knowledge audit and mapping as scenario planning. 107 5.2.2. Criticality assessment scales as decision rules.......... 107 5.2.3. Modeling as a learning tool, as co-creation of knowledge.... 107 5.2.4. Plans as road maps addressing more specifically the need for tacitness........................ 108 5.3. The tacit output of externalization: the importance of boundary objects............................ 108 5.3.1. Externalization creates critical boundary objects......... 109 5.3.2. Refining the classical definition of tacit knowledge....... 109 5.3.2.1. Tinkering........................ 110 5.3.2.2. Judgment........................ 110 5.3.2.3. Connectivity....................... 110 5.3.2.4. Coordination....................... 111 5.4. Conclusions and lessons learned................... 111 5.5. Bibliography............................ 112 Chapter 6. Approaches and Methods for Valuing Knowledge Management Performance........................ 115 Aurélie DUDEZERT 6.1. KM performance: the aims of an evaluation............. 116 6.1.1. The knowledge-based view: a theoretical relation between KM and organizational performance................. 116 6.1.2. What is performance for KM?................. 117 6.1.3. What is KM?......................... 118

8 Trends in Enterprise Knowledge Management 6.2. Method of research and inquiry................... 119 6.3. Macro-organizational approaches to valuing KM performance..... 119 6.3.1. The competitive performance of KM.............. 120 6.3.2. The financial performance of KM............... 121 6.4. Micro-organizational approaches to valuing KM performance..... 122 6.4.1. The process-based approach to the performance of KM..... 122 6.4.2. The systemic approach to the performance of KM........ 123 6.5. Conclusion............................ 124 6.6. References............................. 124 Chapter 7. ICIS for Knowledge Management: The Case of the Extended Enterprise........................... 131 Imed BOUGHZALA 7.1. Introduction............................ 131 7.2. Concepts and definitions...................... 132 7.2.1. Inter-company co-operation and the extended enterprise..... 132 7.2.2. ICIS and KM......................... 132 7.3. MeDICIS............................. 135 7.4. Models for ICIS design....................... 138 7.4.1. The business model...................... 138 7.4.2. The co-operation model.................... 139 7.4.3. The agent model....................... 140 7.4.4. The communication model................... 141 7.4.5. The co-ordination model.................... 142 7.4.6. The CPS model........................ 143 7.5. Discussion............................. 144 7.6. MeDICIS life cycle......................... 145 7.7. Conclusion............................ 146 7.8. About the author.......................... 147 7.9. References............................. 147 Chapter 8. Knowledge Management and Environment Scanning: A Methodological Guide to Improving Information Gathering...... 149 Thierno TOUNKARA 8.1. Introduction............................ 149 8.2. Modeling of the interaction process between the corporate knowledge of the firm and its environment................ 150 8.3. General approach......................... 151 8.3.1. Requirements specification for environment scanning...... 151 8.3.2. Description of the approach.................. 151

Table of Contents 9 8.4. Knowledge book.......................... 153 8.4.1. Methodological tools..................... 154 8.4.1.1. Methodological tools for MASK application........ 154 8.4.1.2. Classification of the knowledge to be modeled according to the type of environment scanning........... 155 8.4.2. Case study: Renault...................... 157 8.5. Construction of axes........................ 157 8.5.1. Construction of a partition................... 159 8.5.1.1. Methodological tools for the elaboration of a partition... 159 8.5.1.2. The grid of criteria for the grouping of the models into classes............................. 159 8.5.1.3. The grid of semantic links................ 161 8.5.1.4. Renault case study: an example of grouping by connectivity......................... 162 8.5.2. Extraction and grouping of information into classes....... 162 8.5.3. Identification of themes.................... 163 8.5.3.1. Qualitative evaluation grid for the criticality of themes... 163 8.5.3.2. Approach and illustration................. 163 8.5.4. Construction of the visual synthesis.............. 164 8.6. Elaboration of the environment scanning focus........... 165 8.7. Evaluation of our approach..................... 167 8.8. Conclusion............................ 167 8.9. References............................. 168 Chapter 9. The Concept of Ba within the Japanese Way of Knowledge Creation................................. 171 Pierre FAYARD 9.1. A Japanese concept........................ 172 9.2. Elementary, my dear Watson!................... 173 9.3. The Human Health Care (HHC) program.............. 176 9.4. Shaping a new way of functioning for organizations......... 178 9.5. References............................. 179 9.6. Further reading.......................... 179 PART 3. Club Workshop Studies..................... 181 Chapter 10. The Knowledge Maturity Model............... 183 Jean-François TENDRON 10.1. Introduction........................... 183 10.2. Work methodology of the commission on Aspects économiques de la gestion des connaissances (economic aspects of KM)........ 184 10.3. The Knowledge Maturity Model (KMM).............. 186

10 Trends in Enterprise Knowledge Management 10.4. Use of the KMM......................... 188 10.4.1. Raising consciousness about KM............... 188 10.4.2. Evaluation of a community s maturity in terms of KM..... 190 10.4.2.1. Example of evaluation................. 190 10.4.2.2. Example of reactions.................. 192 10.5. Perspectives........................... 193 10.6. Conclusion............................ 194 10.7. References............................ 195 Chapter 11. Knowledge Mapping: A Strategic Entry Point to Knowledge Management......................... 197 Gérard AUBERTIN 11.1. Why map corporate knowledge?.................. 197 11.2. What knowledge and competencies should be mapped?....... 199 11.3. How is knowledge/competency mapping performed?........ 202 11.3.1. Defining the mapping goal.................. 202 11.3.2. Identifying knowledge.................... 202 11.3.2.1. Conceptual approach to identifying knowledge...... 203 11.3.2.2. Process-based approach to identifying knowledge..... 204 11.3.2.3. Identifying knowledge using automatic mapping tools... 205 11.3.3. Building the areas of the knowledge map........... 205 11.3.4. Representing knowledge: the area-based mapping model.... 206 11.3.4.1. Formal model..................... 206 11.3.4.2. The graphical model.................. 208 11.4. What are the operational uses and mapping tools?.......... 209 11.5. Knowledge mapping and criticality study.............. 210 11.5.1. Defining criticality...................... 210 11.5.2. The criticality study as risk assessment............ 210 11.5.3. Defining critical factors................... 211 11.5.4. Preparing an assessment schedule and performing the criticality study......................... 212 11.5.5. Calculating area criticality.................. 213 11.5.5.1. Different critically average values............ 213 11.5.5.2. Assessments differences................. 214 11.5.5.3. Non-discriminating criterion............... 214 11.5.6. Analyzing results...................... 215 11.6. How to manage a mapping project................. 215 11.6.1. Opportunity study...................... 215 11.6.2. Managing change...................... 215 11.6.3. Action principles....................... 216 11.7. Conclusion............................ 216 11.8. Bibliography........................... 216

Table of Contents 11 Chapter 12. Knowledge Management and Innovation (Innovation Maturity Model)....................... 219 Jean-Marie BEZARD 12.1. Introduction........................... 219 12.2. The evolution and path dependence hypothesis........... 220 12.3. Innovation factors......................... 221 12.3.1. Case studies......................... 221 12.3.2. The Innovation Maturity Model (IMM)............ 221 12.4. Conclusion............................ 224 12.5. References............................ 225 Chapter 13. Technology and Knowledge Management (Technology Maturity Model)...................... 227 Olivier LEPRETRE 13.1. Introduction........................... 227 13.2. Knowledge diffusion vehicle.................... 228 13.3. The limits of the diffusion of knowledge.............. 231 13.4. The need for global vision..................... 235 13.5. The Technology Maturity Model (TMM).............. 236 13.6. Following a TMM approach.................... 237 13.7. Application of TMM....................... 239 13.5. References............................ 242 PART 4. Case Studies.......................... 243 Chapter 14. Once-upon-a-time Knowledge Management at Mann+Hummel Automotive France................... 245 Nathalie LE BRIS 14.1. The increasing importance of knowledge sharing for Mann+Hummel France......................... 245 14.2. An approach based on core knowledge cartography......... 246 14.2.1. What are the needs of the employees?............. 246 14.2.2. A cartography that allows us to build an action plan...... 247 14.2.3. Actions from the Nonaka virtuous circle............ 250 14.2.4. A well appreciated approach................. 252 14.3. Implementation of lessons learned................. 252 14.4. Knowledge explicitation...................... 253 14.5. Sharing of explicit knowledge................... 254 14.6. Direct transfer of knowledge.................... 255 14.7. KM: an everyday task based on people more than on technology... 255

12 Trends in Enterprise Knowledge Management Chapter 15. Thales System Engineering Community of Practice: A Knowledge Management Approach................... 257 Cécile DECAMPS and Michel GALINIER 15.1. Introduction........................... 257 15.2. The knowledge sharing approach.................. 258 15.3. The Systems Engineering Community of practice at Thales..... 259 15.4. Why is there a KM portal dedicated to the Systems Engineering Community?.............................. 260 15.5. The Systems Engineering portal.................. 262 15.5.1. Functionalities supporting SE community animation and management............................ 262 15.5.2. Functionalities supporting access to SE community people and competencies.......................... 263 15.5.3. Functionalities supporting access to documents and other kinds of content........................... 263 15.6. Rolling out/organization...................... 265 15.7. The associated support organization................ 265 15.8. Balance and perspectives..................... 266 15.9. Bibliography........................... 267 Chapter 16. Appraising the Knowledge in a Radio-pharmacy Center based on Process Mapping and Knowledge Domain Cartography..... 269 Rita Izabel RICCIARDI and Antonio Carlos DE OLIVEIRA BARROSO 16.1. Introduction........................... 269 16.2. The importance of knowledge identification and evaluation within organizations.......................... 270 16.3. The case study.......................... 270 16.3.1. History and context of the Radio-pharmacy Center....... 270 16.3.2. The Center profile and key comments on its knowledge issues.......................... 272 16.4. The KM project.......................... 275 16.4.1. Study of processes...................... 275 16.4.2. Knowledge identification ( enabling knowledge )....... 275 16.4.3. Construction of the knowledge cartography.......... 276 16.4.4. Criticality analysis..................... 277 16.4.5. Setting up a KM plan of action................ 279 16.5. References............................ 279

Table of Contents 13 Chapter 17. Case Study: Knowledge Preservation for a Nuclear Reactor.................................. 281 Marta EPPENSTEIN 17.1. Introduction........................... 281 17.1.1. Atucha-type reactors..................... 282 17.2. Practical approaches....................... 282 17.2.1. Strategy analysis....................... 282 17.2.1.1. Different approaches to the map............. 283 17.2.1.2. Identification of knowledge axes............. 284 17.2.2. Identification of the critical knowledge: approaches...... 285 17.2.2.1. Rare or unable of replacement.............. 285 17.2.2.2. Usefulness for the company............... 285 17.2.2.3. Difficult to obtain.................... 286 17.2.2.4. Difficult to use..................... 286 17.2.3. Building the knowledge map................. 287 17.2.4. Knowledge server...................... 287 17.3. Technical development: analysis factors.............. 289 17.3.1. Knowledge transfer and capitalization............. 289 17.3.2. Human resources...................... 290 17.4. Conclusion............................ 291 17.5. References............................ 291 17.6. Further reading.......................... 292 The Authors............................. 293 Index................................. 295