Knowledge strategy planning: methodology and case

Abstract

This study aims at suggesting an integrative methodology for planning knowledge management initiatives. First, four major underpinning assumptions which should be addressed in knowledge management are identified through literature reviews on strategic information systems planning and knowledge management. Based on these assumptions, we introduce a knowledge strategy planning methodology, called P²-KSP methodology. The P²-KSP methodology places its emphasis on improving organizational performance by identifying and leveraging knowledge directly related to business processes and performance. The methodology consists of five phases: business environment analysis, knowledge requirements analysis, knowledge management strategy establishment, knowledge management architecture design, and knowledge management implementation planning. After its detailed procedures and related features are explained, results of applying it to a large semiconductor manufacturer's knowledge management project are discussed.

Introduction

Facing a knowledge economy (Nonaka, 1994, Nonaka and Takeuchi, 1995) and knowledge-based competition (Drucker, 1993), an organization should be able to secure various types of knowledge assets and maximize their strategic value. To do this, many organizations began to reexamine and rearrange their business strategies, processes, information technologies, and organizational structures from a knowledge perspective (Davenport, Jarvenpaa, & Beers, 1996). Adoption and assimilation of the knowledge management paradigm requires the design and establishment of structures, processes, and technologies along with organizational knowledge resources (Lee & Kim, 2001).

Despite the active implementations of knowledge management projects, however, many organizations have failed to realize the expected benefits of knowledge management. First, they were not able to distinguish knowledge from information or data, ignoring the unique characteristics of knowledge and knowledge workers (Ruggles, 1998). Secondly, as Miles et al., 1998, Wiig et al., 1997 identified, they lacked the proper methodology for implementing knowledge management. In many cases, traditional methodologies for developing information systems or business consulting were applied in implementing knowledge management (Iivari et al., 2000, Management Review, 1999).

To overcome such problems, academics and practitioners introduced frameworks for embodying knowledge management effectively and comprehensively (Earl, 2001, Miles et al., 1998, Teece, 1998a, Teece, 1998b, Wiig, 1997). Based on such frameworks, this article introduces a methodology for planning and implementing knowledge management. The proposed methodology starts from identifying organizational knowledge requirements and leads to the architecture development for the related systems. To assess the applicability of the methodology, we applied it to the knowledge strategy planning process of a large, global company and discuss its results.

This article proceeds as follows. First, we review the literature on organizational knowledge and knowledge strategy planning. Then, underpinning assumptions for knowledge strategy planning are identified in contrast to the traditional information systems planning. This is followed by the detailed description of the performance-driven and process-based knowledge strategy planning (P²-KSP) methodology. Finally, results of applying the P²-KSP methodology to a real knowledge management project are discussed in terms of its usefulness and limitations.