Framework of-knowledge-management-study

ISSN: 2348 9510
International Journal Of Core Engineering & Management(IJCEM)
Volume 1, Issue 3, June 2014
1
Framework for Knowledge Management Strategy System: A
Conceptual Study
Professor Abdulsattar Mohammad Al-Ali, Ph.D
Department of Management,
College of Finance & Business,
The World Islamic Sciences & Education University (WISE),
Amman - Jordan
asmalali.alali@gmail.com
Abstract:
Knowledge is a corporate asset similar to any asset of an organization and nationwide,
and as other assets, knowledge needs to be managed and used strategically, knowledge
management is about finding simple, yet effective ways to develop, access and share the
explicit and implicit knowledge that resides within and around us every day.
This paper provides a framework for characterizing the various tools (methods, practices
and technologies) available to knowledge management practitioners. It provides a high-
level overview of many several key terms and concepts, describes the framework,
provides examples of how to use it, and explores a variety of potential application areas.
Key words: Knowledge Management, System Framework
INTRODUCTION: Brief Background
Knowledge Management (KM) is one of those terms comprised of very slippery
components. What is knowledge, after all? And what is management? How can we hope
to manage something that’s fluid and ever-changing? While there is some merit to these
important questions, fortunately a lot of researchers are mixing between these terms and

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information management. If we think of knowledge as what we can write down and what
we know in our heads, we can at least visualize what it is we need to start managing.
While ―what we can write down‖ has attracted all kinds of funding and attention (e.g.
naming conventions, databases), the ―what we know in our heads‖ part has not. And, as
the trick to successful knowledge management is in developing ways to knit together
both types of knowledge, this paper will focus on a few straightforward and practical KM
tools and techniques designed to help us building a framework for KM strategy.
To do that we must ask ourselves basic questions like: do we know where to locate a
particular file or output? Do we know whom to contact if we require a specific piece of
information? Do we know what our colleagues know? And if not, how can we tap their
experience and expertise? Do we have a clear KM strategy leads to value decision? Do
we able to use knowledge in right way to achieve an organization’s development? Or/and
nationwide development? At its core, KM is about creating, identifying, capturing and
sharing knowledge. It is about getting ―the right knowledge, in the right place, at the right
time,‖ particularly in influencing an action or a decision (ABC of KM, 2005). KM is an
intrinsic component of knowledge translation: without a good KM strategy in place, we
might lose track of crucial knowledge – we might not know what we do know or even
need to know – and miss golden opportunities to influence policy decisions. Knowledge
is, after all, a society’s, an organization’s, and an individual’s most valuable resource.
When the subject in question is knowledge management, this process is far from simple.
Knowledge management (KM) arises from many different areas, concerns multiple
disciplines, is ever-changing, and has a most annoying habit of branching off into a
myriad of directions.
The origins of knowledge management (KM) explain a great deal about its current
condition. Prusak (2001) looks at the multi-disciplinary contributions that gave rise to an
increasing interest in knowledge including the fields of economics, sociology,
philosophy, and psychology, as well as information science. While an in depth discussion
of these contributions is not necessary to understand KM, the realization that the breadth
of its beginning encompasses many disciplines is. This is one factor that accounts for the
broad range of viewpoints and approaches in this field. Core reasons for the development
of a need and desire to manage knowledge are outlined by a number of researchers and
writers in the field.
There are several factors that are regularly described. The first of these is the shift from
an industrial model of business, one where an organization’s assets were primarily
tangible and financial (e.g. production facilities, machinery, land and ever cheaper labor

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costs), to one where assets are primarily intangible and tied up in the knowledge,
expertise and capacity for innovation of its people (Blair 2002; Prusak 2001; Lang 2001).
Where once a business valued itself based on what it owned and how it controlled costs,
we have moved into an era where competitive advantage is based on the creation of
knowledge and its effective use. Over time the ability of a company to differentiate itself
from the competition by streamlining production and reducing costs has evaporated.
Now, in order to compete in a market where the gains from managing these tangible
assets have shrunk, successful competing requires innovation – the creation of new ways
to do things through the creation of new knowledge.
A second factor is the dramatic increase in the volume of information, its electronic
storage, and increased access to information in general. This has increased the value of
knowledge, because it is only by knowledge that this information can be evaluated
(Prusak 2001). This increased value of knowledge is exemplified by shifts in the
Learning and Information Systems field. Once it was sufficient to help people find
information; now, because there is so much more information and such wide access to
this huge volume, both good and bad, it has become increasingly important that people
know how to evaluate what they find. Knowledge is also valued highly because it is
closer to action (McInerney, 2002). Information on its own does not make decisions; it is
the transfer of information into people’s knowledge base that leads to decision-making
and thereby to action.
The increase in the value of what people know, especially that which is difficult to
capture or express, is a common theme in the literature (Alavi and Tiwana 2002; Wright
2001; McInerney 2002; Blair 2002; Prusak: 2001). A simple example of this would be
the ―rules of thumb‖ that are used by executives to make decisions. Often these rules are
not only unwritten, but the person may not even be aware of them. They simply know
whether or not a given choice of action will work or not. This kind of knowledge is closer
to action, in this case making a decision, than the information, such as reports and
documents, used to support a decision. Such knowledge is contained within the expertise
of that executive, and it is increasingly valuable.
DEFINING THE KNOWLEDGE MANAGEMENT:
There are numerous ways to define knowledge management. In fact, so critical is this
aspect to any discussion of the field, that virtually every article or study includes a
definition of some kind. Knowledge is now recognized, in many government circles, as

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an important commodity that can benefit government departments in their day-to-day
operations and the public in the growing efforts to be effective in the modern knowledge
economy. The challenge now for organizations is to determine and develop principles
and guidelines on how knowledge can be created, harnessed, shared and distributed
among government agencies and to the public.
Accordingly, "Knowledge is information that changes something or somebody -- either
by becoming grounds for actions, or by making an individual (or an institution) capable
of different or more effective action." -Peter F. Drucker in The New Realities.
Knowledge is information and thought that aids us in some human purpose—no purpose,
no knowledge. If information falls in a forest and there’s no one there to hear it, it won’t
become knowledge. Since 2002, most businesses have realized that semantic arguments
arising from classifications such as data, information, knowledge and wisdom.
Knowledge and information – or ―data arranged in meaningful patterns‖ – are not
synonymous. While information is a type of knowledge, its value comes from its
interpretation within a context. As Davenport and Prusak (1998) explain, transforming
information into knowledge involves making comparisons, thinking about consequences
and connections, and engaging in conversations with others. Here, knowledge can be
divided into two categories: explicit or tacit. Explicit knowledge is something that we can
put our hands on, capture and document – knowledge that can be recorded. This includes
research findings, lessons learned, toolkits, and so on. We can easily resort to computers
and other information technologies to organize our explicit knowledge. Tacit knowledge
cannot be documented as easily; it is subconscious – we are generally not even aware that
we possess it. Tacit knowledge is context-specific and includes, among other things,
insights, intuitions and experiences. Capturing this is more difficult and involves the key
ingredients of time and personal interaction.
From the above concepts, we define Knowledge Management as a ―discipline that
promotes an integrated approach to creation, capture, organization, access and use of an
organization's information assets‖. These information assets may include databases,
documents, policies and procedures, as well as the enraptured, tacit expertise and
experience resident in individual workers. However, the Knowledge management (KM)
is a process employed by organizations to capture and share people's tacit knowledge.
This includes experiences, expertise and insight often shared across multiple or
nonspecific domains to promote collaboration among employees. Also, to provide broad
access to the organization's information assets without regard to their source or structure
(they may be internal or external to the organization and may be textual, data, visual or

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another format). The business value of KM is achieved when the sharing of an
organization's collective information assets stimulates innovation and reuse, enables
formal management and leverage of intellectual capital, drives organizational learning,
and, finally, improves the collective performance of knowledge workers. KM system
techniques and tools include broad access across information management platforms
(intranets, extranets and the Internet, as well as desktop and transaction-processing
environments), groupware, sophisticated taxonomy and indexing technologies, and
others.
Knowledge Management refers to one or more of these activities:
Creating and populating a repository of in-house knowledge;
Measuring the dollar-value of chunks of knowledge;
Facilitating the transfer of knowledge;
Creating a knowledge sharing environment; and
Building a corporate culture focused on innovation and knowledge creation
KNOWLEDGE MANAGEMENT SYSTEM STRATEGY:
The knowledge becomes an essential organizational (or/and national) driver and a key
factor in value creation. Increased focus must be placed on expanding the organizational
knowledge base, either by learning from others, or by creating new knowledge through
innovation. Both processes help secure sustainable competitive advantage. Figure (1)
shows the knowledge as basis for competitive advantage.
Thus, knowledge management can be seen as an integrated approach to achieving
organizational goals and strategy by placing particular focus on ―knowledge‖, now
widely considered as the new factor of operations. Moreover, knowledge management
supports and coordinates the creation, transfer and application of individual knowledge in
value creation processes. This can only be realized in a corporate culture that promotes
knowledge management strategy and actively supports information and documentation
processes (e.g. through the systematic application of innovation and quality management
tools and methods).

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Figure (1) Knowledge as basis for competitive advantage
However, to manage an organizational base, it must be build a strong strategy
management system with clear measurable objectives. The inclusion of individual assets
in this measurement adds a further dimension to the assessment of traditional factors of
operations. In this way, other factors (including traditionally elusive ―soft factors‖)
become more readily available for value creation processes. Comprehensive knowledge
management system should ensure that ―knowledge‖ is used as effectively and efficiently
as traditional factors of operations in achieving organizational goals. Added benefits
include an improved capacity for organizational learning and a greater potential for
action.
The major benefits of knowledge management system for organizations include:
Greater transparency of knowledge potential and gaps
Knowledge – based value creation processes
Increased innovation through staff involvement
Increased competitiveness
Long – term security and survival
What is a KM Strategy?
As with any sound strategy, our KM practices should be closely linked to our own assets,
needs, mandate, mission, and goals, taking into account our own values and ways of
Knowledge is the basis for
innovation
Innovation is driving force behind
long-term competitive advantage
Competitive advantage ensure
corporate strategy

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working. In fact, understanding these elements must be the starting point for any KM
strategy.
In its most reduced form, a KM strategy (like any other strategy) must answer three
questions: where are we now, where do we want to be, and how do we get there?
• Where are we now? What kinds of knowledge do we produce (or gather or store)?
What outputs have we created? How do we currently manage our knowledge? How do
our organization’s culture and systems either serve or hinder sound KM practices?
• Where do we want to be? In five years’ time, how will a sound KM strategy change
our organization? How will we know when we have a sound KM system? How will we
measure the value of our efforts?
• How do we get there? We need an action plan outlining the three resources of people,
processes and technology. What specific tools and practices will we use? How will we
motivate people to change their practices?
In a slightly different formulation, Denning advises that our KM strategy should ask:
What knowledge do we want to share (type and quality)? With whom do we want to share
it (audience)? How will our knowledge actually be shared (channels)? And why will this
knowledge be shared (motivations and objectives)?
A useful way to conceptualize our KM strategy is through people, processes, and
technology – memorably visualized as ―the legs of a three-legged stool – if one is missing
then the stool will collapse.‖ While there is some argument as to which leg is the most
important, consensus is emerging in favor of the first – people. After all, it is people –
human resources – who are the ones that create, share and use knowledge. Without taking
into account the role people play in generating and sharing knowledge, KM strategies are
likely to fail.
It follows that a successful KM strategy requires a change in an organization’s culture
and behavior. At the heart of this change would be recognizing the centrality of
knowledge, and how the organization must improve its means for creating, capturing,
sharing and using it. The corporate culture of the organization includes all the values,
traditions, rituals and beliefs that determine how people act in an organization.
Corporate culture can be determined by carrying out periodic reviews of the basic
elements of corporate culture illustrated in Figure (2). The resultant ―gaps‖ between the
actual culture and a target culture open to knowledge management from the starting point
for strategic management intervention. Indeed, management is in a unique position to
create, steer and change corporate culture.
A strategic orientation in knowledge management should not only ensure that all related
activities are based on general corporate goals; it should also help to continually improve

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and institutionalize the knowledge management processes themselves. This requires the
following steps:
Setting knowledge management goals
Establishing and implementing design measures
Initiating change processes
Periodic assessment reviews
All these activities from part of a typical management process. To ensure knowledge
management activities are fully integrated into actual working practices, management
must continually observe any cause-and-effect relationships. In practice, evaluations
based on the business indicators ―effectiveness‖ and ―efficiency‖ has proved highly
successful. Figure (3) illustrates the cycle of strategic knowledge management. (Guide to
KM; www.wm-forum.org).
The cycle of strategic knowledge management appropriately to any dynamic changes in
its internal and external environments, yet at the same time remain true to its knowledge-
oriented goals.
Although it is often tempting to see technology as the ―knowledge savior,‖ its proper role
is more as an enabler of KM. Technology is a method, not a strategy. The right
technological tools can indeed help us organize, store and access our explicit knowledge
as well as helping to connect people and furthering their abilities to share their tacit
knowledge. However, technology alone cannot be the beginning and end of a KM
strategy. The challenge is finding the right technological tools that will serve our broader
KM system. Although it is often tempting to see technology as the ―knowledge savior,‖
its proper role is more as an enabler of KM. Technology is a method, not a strategy. The
right technological tools can indeed help us organize, store and access our explicit
knowledge as well as helping to connect people and furthering their abilities to share their
tacit knowledge. However, technology alone cannot be the beginning and end of a KM
strategy. The challenge is finding the right technological tools that will serve our broader
KM system.( The RM Knowledge Translation Toolkit, www.research-matters.net)

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Artifact
(e.g. architecture of its physical environment,
atmosphere, customs, rituals, …)
Espoused Values
(e.g. ideologies, company, philosophy, taboos, …)
Basic Underlying Assumption
(e.g. about the environment, interpersonal
relationships, …)
Provide justification for all
actions
Easy to observe, hard to
decipher
Ultimate source of values
and actions
Figure (2) Basic elements of corporate culture
From the above concept, one of the main requirements for effective knowledge
management is an organizational framework that supports the optimal acquisition and
networking of knowledge. The knowledge-based network organization is one such
possibility. Knowledge domains can also encompass members of the organizations.
These might include research staff at universities and research institutions, or the
employees of customers and suppliers integrated in value creation processes, such as
supply chain management systems. However, one better example of this is the innovation
process. New, innovative products are often the result of close cooperation work with
customers and suppliers. Some innovation activities may even be outsourced to external
partners. For example, organizations often finance research projects, dissertations or
doctoral thesis.

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Corporate Goals
Knowledge
Management Goals
Design Measures
(cause)
Knowledge
Management Review
Change
Process (effects)
Effectiveness
(doing the right
things)
Efficiency (doing
things right)
Strategic Knowledge Management
The network of internal and external knowledge domains is described as a knowledge-
based network organization. The responsibility for coordination of the individual
knowledge domains lies with management, who need to make two decisions based on the
organization’s corporate strategy.
Which knowledge domains to set up and develop internally (core competencies)
and which to customers.
The knowledge goals for the individual knowledge domains.

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Figure (3) Cycle of strategic knowledge management
KNOWLEDGE MANAGEMENT SYSTEM FRAMEWORK:
Knowledge management (KM) is an integrated systematic approach to identify, measure,
and share all of the organization’s information assets, including databases, documents,
policies and procedures, as well as previously unarticulated expertise and experience
resident in individual officers (Junes, 2003). KM creates a new working environment
where knowledge and experience can easily be shared and also enables information and
knowledge to emerge and flow to the right people at the right time so they can act more
efficiently and effectively.
From the above concepts; The knowledge management (KM) refers to the developing
body of methods, tools, techniques and values through which organizations can acquire,
develop, measure, distribute and provide a return on their intellectual assets. Knowledge
management, as a formal area of management activity, it seems to reflect a constellation
of changes in the business environment. These include long run shifts in advanced
industrial economies which have led to the increasingly widespread perception of
knowledge as an important organization asset, the rise of occupations based on the
creation and use of knowledge, the convergence of information and communication
technologies and the advent of new tools such as Intranets and Groupware system, and
theoretical developments which emphasize the importance of unique and inimitable
assets such as tacit knowledge (Morris et al., 2003).
This paper attempts to develop framework for knowledge management system which is
the objective being to capture and store the accumulated knowledge of the organization
expertise in information storage databases. Also, to build the interfaces between the areas
of activities in the organization of using the knowledge for various needs.
The proposed framework consists of seven major areas plus one service area to the
organization all over, linking it with internal and external environment. Also, this
proposed framework could add another business area depends on the size and status
factors of the organization. All these areas and others cover the functions and activities of
the organization which appears a knowledge potential of the organizations. Figure (4)
illustrates the major framework of knowledge base management system in the
organization.

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Framework Knowledge Management
Computer
Based (IS)
Auditing
ABC
System
SCM
System
Quality
Management
R + D
Knowledge
Capital (HR)
External
Environment
Other
Functions
1. The Knowledge-based Network Organization:
One of the main requirements for effective knowledge management is an
organizational framework that supports the optimal acquisition and networking of
knowledge.
Since knowledge is intrinsically linked to people, location plays an equally
important role for knowledge as it does for other factors of operations. In other term, an
organization can be described as the sum of its locations and departments (areas) as
illustrated in Figure (4). Moreover, the organization appears as a network of individual
knowledge domains. This can be seen clearly in Figure (4), which depicts the same
organizational structure, but in some different forms.
However, if the focus is placed on ―knowledge‖, the change in perspective yields
a totally different picture. The organization new appears as a network of individual and
areas knowledge domains. This can be seen clearly in Figure (5), which depicts the same
organizational structure, but in different forms.
Figure (4) Framework of knowledge base management system
Knowledge domains can also encompass member of other organizations. These might
include research staff (knowledge workers or experts) from both organizations and/or

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Knowledge
Management
System
Computer
Based (I S)
Auditing
ABC System
System
Supply Chain
Management
System
Quality
Management
R + D
Knowledge
Capital (HR)
Operations
External
Environment
External
Environmen
t
universities, or the employees of customers and suppliers integrated in a value creation
processes within the supply chain management system.
Figure (5) The organization’s network of knowledge communications
2. Relevance and Overview of Supporting Technologies:
Information and networking technologies offer a great valuable support for knowledge
management activities. Indeed, many tasks in knowledge management (e.g. networking

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across geographical boundaries and time zones) only really become feasible through the
use of appropriate technologies. However, to ensure that they provide the support
required, the decision for any technology-based solution(s) should be driven by
knowledge management needs and not by technical considerations. Discussing specific
technical solutions before the actual knowledge management goals have been set, or even
adjusting goals to suit technical constraints (and without considering people –oriented
alternatives) are clear warning signals.
Establishing an overview of the different technologies available and the activities they
support can be very useful in the knowledge management implementation process. The
example given in Figure (6) considers different technologies with a view to basic
knowledge management activities. These are:
(a) Knowledge planning activities include the definition of knowledge management
goals and strategies.
(b) Knowledge creating focuses on the development of new knowledge.
(c) Knowledge integration makes existing (internal or external) knowledge available
throughout the organization.
(d) Knowledge organization is to bring structure into all this knowledge.
(e) Knowledge transfer includes both planned, institutionalized transfer as well as
spontaneous knowledge exchange.
(f) Knowledge maintenance activities ensure obsolete, out-of-date knowledge is
identified, updated or even ―forgotten‖.
(g) Assessing knowledge provides an overview of the knowledge available and
determines how it has developed over time. It also indicates the extent to which
knowledge goals have been reached.
Figure (6) gives an overview of the support that the different technologies available
can provide for knowledge management activities. (Guide to KM; www.wm-forum.org).
3. Innovation and Knowledge Management System:
Innovation means renewal and change, but in today’s business world it has come in
particular to mean the development of new corporate services, products, processes and

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structures. The development and application of new knowledge is the basic of innovation,
emphasizing the strong links between innovation and knowledge. The core competence
of an organization can be divided into several levels. Activities at a knowledge domain
level focus on the continued development of the core knowledge domains. In general, this
involves a variety of different knowledge holders (individuals or/and organizations) and
can include external knowledge domains and expertise from cooperation partners.
The market therefore acts as an external evaluator of innovation and knowledge
management. An internal evaluation can be carried out by visualizing the development of
the organization’s core competences and culture in form of a core competence tree.
Ideally, the core competence tree should be constructed in such a way that the same
knowledge can be used to realize any number of different customer solutions.
4. Optimizing Problem – Solving Processes:
Despite the appearance of a large number of electronic support tools (Figure 6), there
have been relatively few other changes in the way problem-solving processes are carried
out. A process – oriented approach to problem – solving can greatly improve efficiency
and effectiveness. A focus on the knowledge perspective in the organization of such
processes emphasizes the potential synergies between process and knowledge
management. Problem – solving processes have to be designed to suit the actual business
case and should make use of existing organization knowledge.
Supported
Technology
Plannin
g
Knowle
dge
Creating
Knowle
dge
Integrati
ng
Knowle
dge
Organiz
ing
Knowle
dge
Transferr
ing
Knowled
ge
Maintain
ing
Knowled
ge
Assessi
ng
Knowle
dge

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Communic
ation
Technology
x xxx xx x xxx x x
Calibration
Technology
x xxx xx x xxx xx x
Document
Manageme
nt
x x xxx xxx xxx xxx xx
Adaption &
Presentatio
n
Technology
x xx x xxx xxx xx xx
E-Learning
Environme
nt
x x xxx xx xxx x xx
Content
Generation
Tools
x xxx xxx xxx x xxx xx
Personal
KM Tools
x xxx xx xxx x xx x
Artificial
Indigence
x xx xx xxx xx xx x
Networking
Technology
x xx xx x xxx xx x
Formats &
Standards
x xx xxx xxx xxx xxx xx

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Hardware x xx xx xx xxx xx x
Notes; xxx – This technology can make a major contribution to the activity
xx – This technology can often support this activity
x – This technology makes little contribution to the activity
Figure (6) Extent of supported by technology for knowledge management activities
Source: Guide to Knowledge Management, p. 20, www.wm-forum.org,
According to Guide to Knowledge Management (www.wm-forum.org) the actual staff
affected in the design of problem – solving processes can turn acceptance into a success
factor and can lead to radical improvements in the way problems are solved. The
following list shows some common examples of weaknesses in actual problem – solving
processes.
Knowledge requirements are not identified for the individual phases in the
problem-solving process. Staff is allocated to a problem according to availability
(and not for their expertise or knowledge).
No consideration is given to the possibility of integrating external knowledge
holders in the problem-solving process.
Developing the solution is not seen as part of the problem-solving process.
The development of the solution is not planned in advance, which causes delays
in the whole process.
If the organization demonstrates more than two of the above weaknesses, it would be
urgently advised to review and improve its problem-solving processes.
5. Knowledge Management Measurement and assessment:
a. Knowledge Measurement:
A closer look at the issues involved in ―knowledge measurement‖ requires a broader
definition of knowledge than given at the beginning of this study. There are two main

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reasons for this; The problems involved in embedding knowledge in operational
processes and complexity of knowledge processes. Consequently, no single measuring
method will be suitable for all processes.
Intangible assets can be divided into a number of categories (see Figure 7), with each
category posing its own challenges. These include intangible assets protectable by law
(e.g. by patents, trademarks, copyrights, etc.) and those for which no legal protection is
available. This distinction is particularly relevant for creditor protection.
Although intangible assets are often referred to in controlling or accounting terms as
―intellectual capital‖, ―intellectual assets‖ is in fact a more accurate term. Intellectual
capital is made up of three components: Human capital (or knowledge capital), structural
capital and customer capital. In the past, these were not included in financial statements,
and are therefore often referred to as the ―invisible‖ balance sheet.
However, the most important reason for addressing the issue of measurement is that it
will inevitably direct the discussion back to questions of corporate strategy, internal
networking, organizational goals, etc. This initiates an organizational development
process, which, in turn, promotes increased awareness of the new rules of business. This
―detour‖, which in itself would usually be sufficient grounds to merit a project, will
almost always have a positive (soft) effect on overall performance.
Based on the knowledge processes defined in Figure (10), key areas important to each
relevant issue (e.g. the effectiveness of knowledge transfer processes) are identified.
Barriers to knowledge transfer may also emerge at this stage (e.g. networking problems,
organizational peculiarities or privileges). Once the key areas have been determined a
detailed discussion of what involve will usually suffice to determine potential bottlenecks
or indicators. This discussion leads to the creation of a complete set of indicators of
financial metrics, which then need to be made manageable. It is extremely important that
the indicators chosen make sense both to the people involved and to management and that
a consensus is reached on any definition(s). Although not essential at this stage, it can
also be useful to consider their compatibility with external benchmarks. (Guide to KM,
www.wm-fourm.org)

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There is now a wide range of measurement methods available, although not every method
is suitable for every purpose. Basically, there are two approaches to measuring intangible
assets:
Monetary: Using financial indicators such as markets, costs or discounted cash
flows.
Non-Monetary: Using other indicators drawn perhaps from balanced scorecards
or strategic planning.
Measurement Methods: There are a several tools used in assessment of the KM
system which make out of this paper goal.
Intellectual Capital Measurement.
Your organization
Protectable by Law
Patents
Trademarks
Patterns
Copyrights
Not Protectable by Law
Intellectual Capital
Core processes
Corporate Culture
Climate of Innovation
Other organization
Figure (7) Classis of intangible assets
There is no longer any doubt of the increasing importance played by knowledge in value-
creating processes. The challenge now faced is how to make the most effective use of
intangible assets. This requires both representation and measurement of the
organizational knowledge base, which in this case includes not only human capital, but
also other factors such as existing organizational structures and customer relationships.
The intellectual capital report has already established its suitability as a representation
and measurement tool and is an effective method of communicating corporate goals,

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strategy and business activities to both external and internal audiences. However, its more
important application lies in its use as a strategic instrument in the steering of key
organizational areas and in supporting personnel development.
Figure (8) shows a basic model for producing an intellectual capital report focusing on
the following components: General requirements, input, work processes, output and
effects. General requirements can be set extremely by stakeholders and market
requirements and internally by corporate strategy and goals. They influence the focus of
the key areas of corporate activity and also have an effect on any personnel development
measures directly related to these activities.
The input indicated in the model represents the intellectual capital available to an
organization to carry out its business objectives. Intellectual capital is divided into
human, structural and customer capital and each of these three categories are generally
described either in terms of quantity (using indicators) or quality. These assets are
activity applied in the organization’s business processes. If key processes have already
been defined (e.g. as part of quality management procedures), they will generally only
need to be marginally adapted for use in an intellectual capital report. The results are then
allocated as output to the individual processes and are usually described quantitatively
using indicators. The input is then compared with the relevant output to draw conclusions
on how efficiently the organization’s intellectual capital is being put to use.
The effect of this output on society, industry and the environment is represented by
impact indicators. These indicators collected, for example, through surveys or by
measuring customer and stakeholder satisfaction. This is probably the most difficult and
time-consuming factor to assess.
6. Knowledge Management assessment:
The aim of a knowledge management assessment is to measure the benefits to the
organization of any knowledge management activities. The basis for this assessment is a
selected range of relevant measures derived from the basic model of knowledge
management. These measures can be presented in a matrix diagram consisting of four
individual levels (the knowledge, process, data and goals levels) and four different

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perspectives (human, networking/ integration, organization and organizational
environment). (Guide to KM, www.wm-forum.org)
The purpose of this assessment is to evaluate the extent to which an individual measure
influences the organization’s ability to meet stakeholder goals. In this way, the
organization is able to determine the actual contribution a particular knowledge
management activity makes to meeting stakeholder expectations and, at the same time,
illustrate the real benefits generated by knowledge management. The analysis takes the
form of a self-assessment of the organization (or an individual division) by an assessment
team.
Intellectual Capital Work Processes → Effects
a. Human Capital :
Internal Staff
Staff Satisfaction
Training Days per
Employee
b. Structure Capital:
Management
System
Investment per Year
c. Customer Capital:
Alliance Partner
A. Operations:
Product Quality
(Specifications’
Standards)
b. Sales:
Reliability
c. Innovation
New Products per
Year
d. Network Activity
Multi-company
Projects per Year
e. Marketing
Proposals per Year
→
→
→
Follow on Projects
Customer
Satisfaction
No. of Complaints
per Year
No. of Patents per
Year
No. of Multi-
company Projects
per Year
No. of Orders per
Year
No. of Company

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Visits per Year
Inputs Outputs → Impacts
Figure (8) Intellectual (knowledge) capital model showing processes and examples
indicators
According to the Guide to Knowledge Management source, the assessment is carried out
in seven steps (www.wm-forum.org):
a. Identify target assessment area: Select the target area for the knowledge management
analysis.
b. Establish target criteria: Define the relevant stakeholders for the area to be assessed
and establish target criteria to describe their expectations.
c. define the ideal situation: define the desired ideal situation for the goals, knowledge,
process and data levels based on stakeholder expectations.
d. Determine factors of influence: Determine the factors that influence the ideal situation
from the human, networking/interaction, organization and organizational environment
perspective on each of the four levels.
e. Identify drivers: Identify the most important of for each fields of action.
f. Prioritize fields of action: Assess the influence of these drivers on the target criteria and
use the results of this assessment to prioritize the fields of action.
g. Set measures: Set specific measures to be taken in each field of action, taking into
consideration the main factors of influence for each area.

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7. KM Implementation Process:
Knowledge management can be introduced either for historic reasons or to plan for the
future, i.e. as a direct consequence of the urgency of a situation, or as a strategic
management decision. Whatever, the reason, everyone should be informed of this
decision before any definite steps are taken.
Pilot Project:
The first definite step towards knowledge management often takes the form of a pilot
project (study). Since pilot projects can have both positive and a negative influence on
any subsequent organization-wide roll-outs, they should be carefully planned and include
a clear distribution of roles.
A pilot project should ideally be targeted at a particular areas, division or group of
employees that are comfortable dealing with change and new challenges. It should also
directly involve everyone who will play a part in or might be affected by any measures
introduced. In this way, the project ‖involves the involved‖ from the start and can take
advantage of their experience in determining possible solutions and measures.
In general, the selection of any key areas for knowledge management should concentrate
primarily on knowledge-intensive processes critical to organization success.
The next stage is then to set the goals for the pilot project. These might include:
Improving knowledge transfer in selected areas.
Improving access to data and knowledge
Encouraging the use of creative potential
The following questions need to be asked when implementing knowledge management:
Which business processes are particularly knowledge-intensive and critical to
organization success?
In which processes is it extremely difficult to support knowledge transfer through
documentation?
Are there knowledge-intensive areas that can only be covered by a few members
of staff?

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Are there any areas in the organization where knowledge is particularly stable or
unstable?
Which areas will readily accept and are in urgent need of change?
Analysis Phase:
The pilot project begins with decision of steering committee on the meeting, and the
following points should be clear:
The expectations of everyone involved with the project and the project goals.
The project plan, the required resources and milestones.
In the analysis phase, selected processes are analyzed with a view to the goals set. In this
way, the introduction of knowledge management does not simply become the end in
itself: It ties in directly with the organization’s business activities and processes. This
requires a detailed representation and segmentation of the processes involved.
References:
1. Alavi, Maryam and Amrit Tiwana. (2002). Knowledge integration in virtual teams: the
potential role of KMS. Journal of the American Society for Information Science and
Technology 53(12): 1029–37.
2. ABC of Knowledge Management. (2005). NHS National Library for Health: Specialist
Library Knowledge Management.
3. Blair, David C. (2002). Knowledge management: hype, hope or help? Journal of the
American Society for Information Science and Technology 53(12): 1019–28.
4. Davenport TH and Prusak L. (1998). Working knowledge, how organizations manage
what they know. Boston, MA: Harvard Business School Press.
5. Denning S. (2002). The Springboard: How storytelling ignites action in knowledge-era
organizations. London: Butterworth Heinemann.
6. Jones, D (2003). Knowledge management and technical communication: a
convergence of ideas and skills available at: https://faculty.washington.edu/markh/tc 400.
7. Lang, Josephine Chinying. (2001). Managerial concerns in knowledge management.
Journal of Knowledge Management 5(1): 43–57.
8. McInerney, Claire. (2002). Knowledge management and the dynamic nature of
knowledge. Journal of the American Society for Information Science and Technology
53(12): 1009–1018.

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9. Michelle, S. (2004), Exploration of the field of knowledge management for the library
and information professional, Libri, vol. 54, pp. 190–198.
10. Morris, PWG, Elhag, TMS, Deason, P, Milburn, R, and Bloomfield, D (2003). IT
support for knowledge management in designer and contractor briefing. International
Journal of IT in Architecture, Engineering and Construction, 1 (1), 924.
11. Prusak, L. (2001). Where did knowledge management come from? Systems journal
40(4): 1002–1007.
12. Skyrme D. Best Practices in Best Practices: Guide on Developing a Sharing Best
Practices Programme. www.skyrme.com/kshop/kguides.htm
13. The RM knowledge translation toolkit: A resource for researchers www.research-
matters.net .
Biography:
Abdulsattar Al-Ali is a Professor in the Department of Management at The World Islamic
University for Sciences & Education (WISE), Amman – Jordan. He earned Higher
Diploma in Engineering Management from Moscow Institute of industrial Economics,
Russia, M.Sc and Ph.D in Industrial Engineering from The University of Birmingham,
U.K. He has published journal and conference papers and more than 15 books. Professor
Al-Ali has done supervision works on more than 40 Ph.D studies, and a lot of M.Sc.
works at various universities in the Midleast. He has done a lot of consultations works,
training programs and workshops in different subjects of industrial engineering and
management. He is member of IIE, MCSCMP , ect.

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