Knowledge management to enhance competitiveness of VNPT software company

Through that I was able to collect the necessary responses for the analysis present status of knowledge management and its impact on the competitiveness of VNPTSoftware.. Quantitative an

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

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NGUYỄN VIỆT HƯNG

KNOWLEDGE MANAGEMENT TO ENHANCE

COMPETITIVENESS OF VNPT SOFTWARE COMPANY

QUẢN TRỊ TRI THỨC NHẰM NÂNG CAO NĂNG LỰC CẠNH TRANH TẠI CÔNG TY PHẦN MỀM VNPT

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2018

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

NGUYỄN VIỆT HƯNG

KNOWLEDGE MANAGEMENT TO ENHANCE

COMPETITIVENESS OF VNPT SOFTWARE COMPANY

QUẢN TRỊ TRI THỨC NHẰM NÂNG CAO NĂNG LỰC CẠNH TRANH TẠI CÔNG TY PHẦN MỀM VNPT

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG

Hà Nội - 2018

DECLARATION

The author confirms that the research outcome in the thesis is the result of author‟s

independent work during study and research period and it is not yet published in other‟s

research and article

The other‟s research result and documentation (extraction, table, figure, formula,

and other document) used in the thesis are cited properly and the permission (if required) is

given

The author is responsible in front of the Thesis Assessment Committee, Hanoi

School of Business and Management, and the laws for above-mentioned declaration

ACKNOWLEDGEMENT

I would like to express my deeply thank to Assoc.Prof PhD Nguyen Ngoc Thang for his support since the beginning of my research with his advice about the very interesting research topic, then going through research outline, until the end of this research From this research, I can have a deep understanding of knowledge and knowledge management impact to competitiveness of VNPT Software Company

I would like to thank everyone who are VNPTSoftware‟s staffs and managers, who have assisted me to be fulfillment with this research‟s aims and scopes They also took the time to answer my questionnaire and the Managers gave thoughtful instructions so that everyone responded fully Through that I was able to collect the necessary responses for the analysis present status of knowledge management and its impact on the competitiveness of VNPTSoftware

Because limited time and ability so it cannot avoid some mistakes in my research I look forward to receiving comments from lecturers and colleagues in order have more completed and better achieved of research result

CONTENT

INTRODUCTION 1

1 Rationale 1

2 Literature review 2

3 Aims of research 8

4 Research object 8

5 Scopes of research 8

CHAPTER 1 THEORETICAL BACKGROUND ON COMPETITIVENESS WITH KNOWLEDGE MANAGEMENT 9

1.1 Theoretical basis of knowledge management 9

1.1.1 Knowledge management of the organization 9

1.1.2 Factors influence to knowledge management of the organization 17

1.1.3 Elements of knowledge management of the organization 21

1.1.4 Tools of knowledge management 26

1.1.5 Knowledge management model of the organization 30

1.1.6 Evaluation of knowledge management 32

1.2 Theoretical basis of competitiveness 33

1.2.1 Competitiveness 33

1.2.2 Evaluate competitiveness of the organization 34

1.3 Research methods 35

1.3.1 Research model and assumptions 35

1.3.2 Research sample 37

1.3.3 Design to questionnaires and scales 38

1.3.4 Data collection method 42

1.3.5 Check the reliability scale 42

1.3.6 Exploratory factor analysis 43

1.3.7 Regression and test hypothesis 43

CHAPTER 2 ASSESSING THE SITUATION OF COMPETITIVENESS WITH KNOWLEDGE MANAGEMENT IN VNPTSOFTWARE 45

2.1 Introduction of VNPTSoftware 45

2.1.1 Introduction of VNPT Group 45

2.1.2 Introduction of VNPT Software Company 48

2.2 About to knowledge management and competitiveness in VNPTSoftware 52

2.2.1 Situation of knowledge management in VNPTSoftware 52

2.2.2 Situation of competitiveness in VNPTSoftware 59

2.3 Quantitative analysis of the relationship between knowledge management and competitiveness in VNPTSoftware 61

2.3.1 Research sample description 61

2.3.2 Alanyze scales reliability of survey samples 61

2.3.3 Analyze exploratory factor of survey samples 62

2.3.4 Regression analysis of the relationship between knowledge management and competitiveness in VNPTSoftware 65

2.3.5 Test of research model 66

2.4 Comment on research results 66

2.4.1 Comment on research results from the KM model impact to competitiveness 67 2.4.2 Describe the interaction between knowledge management factors and competitiveness from research results 69

CHAPTER 3 PROPOSAL ON SOLUTION TO ENHANCE COMPETITIVENESS ASSOCIATED WITH KNOWLEDGE MANAGEMENT IN VNPTSOFTWARE 70

3.1 Orientation in enhance competitiveness of VNPTSoftware 70

3.2 Solutions on enhance competitiveness of VNPTSoftware 72

3.3 Recommendations 74

CONCLUSION, LIMITATION AND IMPLICATION 75

1 Conclusion 75

2 Limitation 76

3 Implication 77

REFERENCES 78

APPENDIX 1 QUESTIONNAIRE IN ENGLISH 82

APPENDIX 2 QUESTIONNAIRE IN VIETNAMESE 86

APPENDIX 3: SUMMARY RESULT OF ANALYSIS 91

APPENDIX 4: RESULT OF ANALYSIS 92

APPENDIX 5: EXPLORATORY FACTOR ANALYSIS ABOUT KNOWLEDGE MANAGEMENT AND COMPETITIVENESS 101 APPENDIX 6: REGRESSION RESULTS ABOUT KNOWLEDGE MANAGEMENT AND COMPETITIVENESS

LIST OF TABLES

Table 1.1: Typical Knowledge Sources 14

Table 1.2: What is knowledge management 15

Table 1.3: Why do we have to manage knowledge? 17

Table 1.4: Technology Appropriate to Knowledge Management Approach 19

Table 1.5: The Productivity Challenge: A Closer Look? 25

Table 1.6: Initiative for Knowledge Sharing and Dissemination 26

Table 1.7: Document Management: KM Starting Point 27

Table 1.8: Description of hypothesis 36

Table 1.9: Scales of Leadership 39

Table 1.10: Scales of Organization 39

Table 1.11: Scales of Technology 40

Table 1.12: Scales of Learning 40

Table 1.13: Scales of Competitiveness 41

Table 2.1: Data of VNPTSoftware‟s Managers 53

Table 2.2: Statistics of activity status of FAW vnpt.facebook 54

Table 2.3: Restructuring of the company 55

Table 2.4: List of Training Course of VNPTSoftware from July to December, 2017 57

Table 2.5: Market share of main services of VNPTSoftware 60

Table 2.6: Market share of CA Service in 2016 60

Table 2.7: Plan of development VNPT IVAN service in the next 3 years 61

Table 2.8: Reliability of the scales 62

Table 2.9: Analysis results of knowledge management factors affect competitiveness 63

Table 2.10: Knowledge management factors affect competitiveness 63

Table 2.11: Results of regression of six factors of knowledge management effect competitiveness 66

Table 2.12: The test results of the pair of hypoyheses 66

Table 2.13: Statistical results of the servey 67

Table 3.1: Price of VNPT-ERP HRM module 72

LIST OF FIGURES

Figure 1: Enterprise knowledge management architecture 2

Figure 1.1: Levels of conceptual development from data to knowledge 10

Figure 1.2: Interaction between of Tacit and Explicit knowledge 11

Figure 1.3: Elements of a knowledge map 12

Figure 1.4: Contents must be management 21

Figure 1.5: Knowledge Capture and Sharing 23

Figure 1.6: Knowledge management model of the organization 31

Figure 1.7: Flowchart of the research process 35

Figure 1.8: Research model of competitiveness of VNPTSoftware 36

Figure 2.1: Top 10 most valuable Vietnamese brands 2017 48

Figure 2.2: Organizational chart of VNPTSoftware 52

Figure 2.3: Top 10 most valuable Vietnamese brands 2017 59

Figure 2.4: The research model of "Knowlwdge management - Competitiveness" adjusted after the survey 65

Figure 2.5: Relationalship with "Knowlwdge management” and ”Competitiveness" 69

Figure 3.1: Key services of the SaaS market 71

INTRODUCTION

1 Rationale

Vietnam Posts and Telecommunications Group (VNPT) is the leading group in Vietnam in the segment of telecommunications and information technology Brand of VNPT Vinaphone ranked in the top 10 strongest brand in Vietnam (Financial Brand - 2017)

VNPT Software Company (VNPTSoftware) is the main unit of VNPT in the research and development of software solutions, has won many prestigious national awards

in the field of information technology such as “Sao Khuê”, „Nhân Tài Đất Việt”.VNPTSoftware is providing software products and services to many national organizations, ministries and enterprises in the following fields: (1) Governmental foundation electronic, (2) Ministries: Ministry of Health, Education, Environmental Resources,… and (3) Business and community

VNPTSoftware was established during the strong transfer of perceptions and the way people use, communicate with technology Inheriting 70 years of development in VNPT's telecom market in Vietnam include 31.6 million mobile subscribers (2016) and 3.8 million broadband Internet subscribers (2016),VNPTSoftwareis aware that all software products developed and deployed are closely linked to the development of Vietnam, the social life and the development of enterprises

The goal and vision of VNPTSoftware is to be No.1 in the segment of providing software as a service (SaaS) in Vietnam.Therefore, to achieve this goal, VNPTSoftware must improve its competitiveness to lead the SaaS segment in the Vietnamese market

The question is how to improve the competitiveness to meet the objectives?

From many researchs, in organizations, knowledge is the key factor to the term development of the organization to be able to implement its new strategy To develop

long-a knowledge mlong-anlong-agement system, you must be developed the good knowledge management model According to Dr David E Chesebrough, the enterprise‟s knowledge management model is influenced by four pillars: (1) leadership, (2) organization, (3) technology, and (4) learning in order to improve overall organization performance (Figure 1.1)

Figure 1: Enterprise knowledge management architecture

Source: Stankosk, Calabrese, Baldanza (1999);Chesebrough (2006)

Today, we realize that we live in a world where knowledge is the last factor to create value On the microeconomics level, knowledge is becoming the most important source of corporate strategy, while managing their knowledge of ultimate competitiveness (Giju, 2010) The knowledge base of a firm is considered as intellectual capital, and is increasingly emphasized as a importance source of competitive advantage Developing, managing, and leveraging knowledge (consits individual, group, department, and firm-level knowledge) are becoming strategic activities in many firms for achieving competitive advantage In this context, building organizational capabilities to acquire, create, and transfer knowledge has become a key challenge for strategy and organizational managers

But the weakness of VNPTSoftware is have not the knowledge management system With the desire to contribute to the development of the company, from the above

analysis, I decided to select the topic «Knowledge management to enhance

competitiveness of VNPT Software Company» for my graduate thesis

2 Literature review

There has been many researchs dealing relationship between knowledge management capability and competitiveness In the following section, the author presents a summary of relevant case studies:

Bogdanovska Djurovic, Andrijana (2010) studies the structure of organizations and

processes The finding emphasize the need to look at the structure, culture and technology

as knowledge management infrastructures and assets, allow implement effective knowledge management processes within and between organizations The methodology used in this analysis is a case study approach applied on a single case with the use of multiple embedded units of analysis (Yin 2003, p 40) This is a longitudinal study of the same case at two or more time points, secondary data sources and information used as Accenture records, Thomas Cook data, high-level manager interviews and other information from relevant sources (Economist, Business Week) The result of study is an efficient knowledge management process allows for the creation of a sustainable competitive advantage to financial and non-financial performance of companies

In another study, P.L Liu et al (2004) said that knowledge has become a major part

of resources and prerequisites for success in the manufacturing environment Competitiveness and resulting benefits can be obtained by utilizing knowledge management and intensive learning This study discusses the effectiveness of knowledge management of competitiveness in Taiwan's industries It focuses on four main functions

of knowledge management is obtaining, refining, storing, and sharing knowledge as independent variables The company characteristics, technology advantages and size of enterprises are dependent variables The results show that knowledge management has a great influence on competitiveness Assume hypothesis that "The more knowledge management capability you have, the more competitiveness you process" has been verified

by statistical analysis There variables are company characteristics, technology advantages and size of enterprises which has been proven to interact with management-ability knowledge, also produces many positive effects on the competitiveness of the product This paper demonstrates that the size of the business is one of the key success factors This empirical study confirms the relationship-ship between knowledge management and competitiveness in Taiwan's industries This study shows the impact of knowledge management on competitiveness

In 2009, S Massa and S Testa published the paper using a comparative case study approach to investigate how two Italian food producers manage their knowledge The first company to be considered focus on marketing, while the second on the knowledge technology This paper providing examples of how companies can succeed in managing their knowledge base based on relative knowledge This paper compares two case studies

of small local professional food producers, exploring how they manage, exploit and nurture their knowledge The authors collected data from semi-structured interviews with

entrepreneurs and other information providers (marketing or trade management, R & D management, quality management, human resources management and information management system) Moreover, they access to company data (website, balance sheet, internal report) This study confirms that not only knowledge but also the behavior of innovation appears to be unexpected events that primarily affect to the knowledge management features

In an analysis of the impact of knowledge management to competitive advantage, Tatjana Simaškienė and Aistė Dromantaitė-Stancikienė (2014) found that knowledge management can help to make better company activity‟s efficiency, in this way the company can achieve successful competitive advantage After providing a model by Jashapara (Jashapara, A., supra note 16.) that helps ensure knowledge management efficiency to competitiveness and data analysis, some following conclusions are drawn: (1) Knowledge is a valuable resource used of the company, bring competitive advantage and help to achieve business goals (2) Knowledge management is a strategic process of organizations that want to develop strategic capabilities that allow them to deal with uncertain business environments and effectively support them to gain competitive advantage (3) Knowledge management can be defined as strategy, culture, company‟s learning, process and technologies that interact with people, processes, and technology When this interaction is effective and sustainable, a company can take advantage of the potential benefits of knowledge management (4) Knowledge management is a multidisciplinary field that can be analyzed from the perspective of a range of complementary approaches Many areas and perspectives provide the advantage of knowledge management, making it a tool for enhancing the true competitiveness of the company and undermining the proposition that knowledge management resources is useless

In 2008, Mu-Yen Chen, Mu-Jung Huang and Yu-Chen Cheng conducted an empirical study about "Measuring Knowledge Management Using a Competitive Perspective" This paper proposes a method for measuring the effectiveness of knowledge management in a competitive of a technology university The authors use the Analytical Network Process (ANP) model, which is a theory for making multi-criteria decisions and collecting very effective tangible and intangible information This model uses The Balance Scorecard (BSC) with four actors, including: customer perspective, innovation perspective, learning perspective, and financial perspective, used as indicators for Measurement

compare the organization's knowledge management performance with its main competitors for effective information on knowledge management improvement, decision making, and clear ways to gain competitive advantage; (2) suggest that the technology university must strengthen the knowledge creation and accumulation to catch up with its competitors; and (3) it is applied to the benefit of an organization These results demonstrate that the proposed method can act as a measurement tool for an entire knowledge management of an organization

In a study in August 2011, Omar R Mahdi, Mahmoud Khalid Almsafir and Liu Yao aimed to find out the role of knowledge and knowledge management in achieving sustainable competitive advantage in the organization The authors find that the use of knowledge and knowledge management is being evaluated as a potential resource for sustainable competitive advantage Using research methodology through comparisons and summaries, this study finds knowledge and knowledge management that affect sustainable competitive advantage from many aspects And it suggests that company should re-bundle their strategic knowledge from many different types and transform it using knowledge management to maintain competitive advantage in a dynamic business environment This study summarizes two major issues that must be addressed in trying to maintain a competitive advantage: “(1) Which resources or skills can be identified as the source of sustainable competitive advantage resources? (2) How can one transform the identified source into the capacity or competency of the organization?” In answer to the first question, the authors suggest that knowledge should be added as a resource and skill of sustainable competitive advantage This research has explored strategic knowledge that contains three different levels of core knowledge, advanced knowledge and creative knowledge In addition, to further study the tactical analysis from a view of knowledge management, the authors addressed the second question by proposing four major knowledge management processes, including knowledge collection, creation, development, and distribution Finally, if the combination of these two systems is dynamic, it is possible

to achieve sustainable competitive advantage as expected

In a study about "A conceptual linkage between knowledge management, competitive advantage and competitive maneuverings of organizations" conducted in 2015, Kashif Akram, Nasir Mehmood, Imran Khan, Formula have found the conceptual link between knowledge management and organization‟s strategy formulation and competitive advantage This research is used Firm‟s Resource Based view method and Porters‟ Five force model to create strategic linkages and competitive advantage as a lens The company

discussed in the current study is distinct implementation and alignment of knowledge management strategy process and business strategy, so the company reap tangible benefits

It implements a successful knowledge management linkage strategy and business strategy, from successes in nurturing knowledge sharing, collection and implementation culturethat drives innovation, agility, efficient and result in becoming a sustainable competitive company With many small and medium enterprises, the authors find many problems, issues and challenges related to the implementation and measurement of knowledge management strategies As economies converge from a technology-based economy to a knowledge-based economy, basic resources still exist in the market and get sustainable advantage in linking knowledge of knowledge management strategy and business strategy

of the enterprise Advanced organizations have developed and implemented strategies in ways that can bring sustainable competitive advantage to the organization's assets This research will be effective for managers who understand the strategic importance of knowledge, knowledge management and knowledge strategy to achieve sustainable competitive advantage

In a study of the Egyptian software industry in 2011, Ghada El-Kot and Dalia Gamal conducted an empirical study investigating the relationship between knowledge management, organizational innovativeness and organization competitiveness in 94 software companies of Egypt To collect data, the authors used complete questionnaires and sent anonymous to software companies, and collected data from 94 companies that feedback result These data were then analyzed using correlation analysis and structure equation modeling The Resource Based View method of knowledge management in this software industry has empirically explained of the mechanisms through which knowledge management affects the competitiveness of the organization The results of this study also provide an explanation of how this will happen through organizational innovativeness by detecting organizational innovation that is a perfect phase from the knowledge management to gain sustainable competitive advantage of the organization The practical implication of this study is the finding of evidence of the importance of knowledge management for organizational competitiveness In addition, this study also confirms innovativeness is multi-dimensional, giving managers with understanding many sources of innovativeness other than the technical innovation that is prevalent in technology

Finally, in a study by Nguyen Thi Nguyet Que (2010) about "Knowledge Management Capability and Competitive Advantage: An Empirical Study of Vietnamese

strategy to assist Vietnamese companies in buying, creating, sharing, innovating, and exploiting knowledge-based resources to take initiative and adapt to changing environments to create competitive advantage to succeed This research provides an empirical evidence in Viet Nam where almost all similar studies have been conducted in Western or newly industrialised Asian countries In addition to previous studies, this study raises the following three questions: Q1 What are the key dimensions of the knowledge management capability of a firm? Q2 How do the key dimensions of the knowledge management capability of a firm relate to each other? Q3 How do the key dimensions of the knowledge management capability of a firm affect its competitive advantage? The author uses the Resource Based View of the companys to empirically examine the relationship between knowledge management infrastructure and competitive advantage, thereby developing an integrated theoretical model of competitive advantage based on knowledge management capability of the company The author hired FKS Consulting and Research Company Ltd to conduct survey by distributing 600 questionnaires to senior managers participating in National Construction Exhibition in Ho Chi Minh City They then collected 148 responses with complete evaluation data, using factor analysis and reliability testing to refine the questionnaire for the main survey These questions were sent

to 1000 top managers from the Business Directory issued by the Vietnamese Chamber of Commerce and Industry With this main survey, 362 responses were sent to be analyzed for calibration by SPSS version 15.0 The results of the SEM analysis indicated that the proposed model of measurement and structural model satisfies the necessary fit conditions Empirical evidence confirms that this model can be applied in Vietnam, an Asian country with a socialist market economy with the majority of SMEs In Vietnam, knowledge management capabilities are built from the social knowledge management infrastructure, knowledge management technology infrastructure and knowledge management processes are strongly correlated The study identifies the social infrastructure of three dimensions of culture, structure and people (or T-shaped skills) The knowledge management process is four-dimensional process of knowledge acquiring, converting, and protecting process Knowledge management processes are dynamic capabilities that play a key role in the organization's competitiveness The study also provides many recommendations for business executives in Vietnam on how to successfully implement knowledge management projects to achieve business strategy goals

However, there is no research related to knowledge management to improve the competitiveness of a software company in Vietnam Thus, this study is not the same as previous studies

3 Aims of research

This research focuses on servey toknowledge management at VNPT Software Company, and suggests solutions to improve this performance Detail goal:

- Theoretical foundation of knowledge management;

- Research and analysis of knowledge management activities of the company;

- Proposing solutions to improve the efficiency of knowledge management to enhance the competitiveness of the company

CHAPTER 1 THEORETICAL BACKGROUNDON COMPETITIVENESS WITH

KNOWLEDGE MANAGEMENT 1.1 Theoretical basis of knowledge management

1.1.1 Knowledge management of the organization

1.1.1.1 Knowledge

Concept

Up to now, no precise definition of knowledge has been accepted, can be covered in its entirety, there are still many doctrines, different theories of knowledge Here are some typical concepts:

According to the Vietnamese dictionary, knowledge is the systematic understanding

of things, natural or social phenomena (general)

According to the Oxford English Dictionary © 2008 Oxford University Press, knowledge is the knowledge and skill acquired through experience or education or knowledge or similar things acquired through practical experience

According to the Wikipedia Website (https://en.wikipedia.org/wiki/Knowledge),knowledge is a familiarity, awareness, or understanding of someone or something, such

as facts, information, descriptions,or skills,which is acquiredthroughexperience or education by perceiving, discovering, or learning

According to the Fifth Generation Work - Virtual Organization Website (http://www.seanet.com/~daveg/glossary.htm), knowledge is information associated with rules which allow inferences to be drawn automatically so that the information can be employed for useful purposes

Through the above conception, knowledge is associated with concepts such as data, information, intellect So, how does knowledge differ from the above?

As information is processed more, it can become knowledge Information is further processed when someone finds a contextual relationship that exists between the data hold and the information And when one can identify and understand their contexts and implications, the set of data and information becomes knowledge Knowledge has a tendency to create its own context In other words, contexts of knowledge representation have a complete character - a factor that pure information does not have These contexts are dynamic They change constantly But when fully understood, they have a high degree

of predictability and reliability as they change and evolve over time

Intelligence is the ability to use knowledge wisely to achieve one's purpose Intelligence is attached to man and evaluation, adjudication and planning of actions So when information helps us to know and make decisions, it is knowledge Information becomes "input" loaded into the brain, through the process that produces knowledge But this process of dealing with different individuals will produce different "outputs" This means the same information, but for each individual with different intellectual abilities, the knowledge he perceives is different from the knowledge that others perceive Information

is structured data that is outward-looking and accessible to everyone But knowledge is more about structured and personalized information within a particular human being, so accessibility is harder and the expression is not always accurate

Figure 1.1: Levels of conceptual development from data to knowledge

Source: Ackoff(1989) Thus, within this thesis, we can understand: Knowledge is the information, data and skills that are structured and personalized that each person acquires through experience

or training Figure 1.1 shows the conceptual levels from data to knowledge

Types of knowledge

According to Nonaka and Takeuchi(1995), we can divide into three types of knowledge: explicit knowledge,tacit knowledge and implicit knowledge

Explicit knowledge: These are knowledge that is interpreted and coded in the form

of text, documents, audio, video, photos through verbal or nonverbal language, system principles, computer programs, standards or other means Structured knowledge is often expressed and easily transferred For example, specialized knowledge is presented in textbooks, books, newspapers, magazines Structured knowledge is usually explicit knowledge In his highly influential book –“Knowledge-Creating Company” - Nonaka and Takeuchi distinguish explicit knowledge and tacit knowledge Explicit knowledge is

knowledge that is systematized in papers, documents, or reports, which can be conveyed in formal and systematic languages

Tacit knowledge: Knowledge that a person has unconscious self Tacit knowledge

can not be explained or reasoned because:

- Tacit knowledge is not fully understood,

- Tacit knowledge is familiar, automatic and surpasses the sense of who owns it For example: know-how, beliefs, experience, sensitivity in work

Nonaka and Takeuchi also argue that tacit knowledge is the knowledge that can not

be or is difficult to systematize in documents, materials, and this knowledge that is personal, tied to context and work Tacit knowledge is difficult to present in documents, but is highly operating in the human brain This knowledge is the type of knowledge in the human head Many people think that this is the vast majority of knowledge within an organization What people know is often more valuable than what is written Thus, creating a connection between an unknown and a knowing person is a very important aspect of an organization

Figure 1.2: Interaction between of Tacit and Explicit knowledge

Source: Bettoni, Schneider(2002)

Acording to Marco C Bettoni and Sibylle Schneider (2002), tacit knowledge is generated in any individual either from available tacit knowledge "reflecting" or from explicit knowledge "interpreting" and constitutes "a kind of living structure that grows and changes, yet endures" (Figure 1.2)

Implicit Knowledge (also called “potential knowledge”): Knowledge is contained

in verbal or nonverbal language, action (either as a recording or as part of a communication system) , the network of trained brains, knowledge embedded in technology, culture, practice Most enterprises have data is showing sales, customers These sales represent potential knowledge - the data from which can gather new knowledge if this data is accessed and analyzed So, if we look at knowledge within the

organization, we see that any organization has three types of knowledge above, however what does type of knowledge the enterprise hold? Where are they located? Who holds? And how to use it to effectively exploit knowledge intended for the organization's core business or production process to create value?

Knowledge map

Figure 1.3: Elements of a knowledge map

Source: F Caldwell, Gartner Group; Chesebrough (2006)

Knowledge map is a strategy that can be used to help organizations understand problems that need to be addressed in the knowledge management process Knowledge map is a model that illustrates the information associated with each other Knowledge mapping begins with the process of developing a taxonomy, or called classification of information Any knowledge management strategy for an organization must first focus on identifying, organizing, and exploiting its external knowledge

Figure 1.3 shows that the basic elements of the knowledge map are closely related with each others The starting point of the knowledge map is organization's business goals Depending on the level of goals set, the organization will develop different knowledge strategies and business processes With each strategy and business process, there will be requirements to meet the demand for different knowledge supply Knowledge requirements will guide the search and selection of specific knowledge sources accordingly And in turn, the sources of knowledge will impact back into the business process of the organization

Therefore, when considering the relevant factors in the knowledge map, the organization should carefully consider and select the factors and find suitable with the situation and ability of the organization

Knowledge sources

In the general trend toward integrated knowledge where new products and production processes incorporate multiple technologies from some scientific rules, it is important to understand that today's units have The ability to learn hard and to innovate (Pavitt 1998; Johnson, Loren and Lundvall 2002) While in big enterprises, information and knowledge are still largely communicated through functional interactions between R&D, production, marketing and human resource departments with function groups (Capello 1999), but SMEs need to rely on external sources of knowledge Accordingly,

based on the origin of knowledge we can divide into two main sources: internal

knowledge sources and external sources of knowledge

Internal knowledge sources is the knowledge acquired from within the unit Units acquire knowledge through on-the-job research and development and through learning from continuous improvements Employee skills are also an important source of new knowledge and units regularly organize training and coaching programs to build and improve the internal knowledge base

External knowledge sources can be divided into local knowledge sources, national knowledge sources, international knowledge sources depending on where the knowledge is located (Belussi, McDonald, and Borrás 2002) If the unit does not have the appropriate knowledge inside the unit, they can outsource it by working with partners, suppliers, other units or affiliated with public, semi-public and private organizations In terms of geographic location, these partners may be near (local), somewhere in the country (national) or in the world (international)

Based on the form of storage, coding, knowledge transfer, we can divide knowledge into the following two sources: electronic knowledge sources and traditional knowledge sources Electronic knowledge is the source of knowledge stored on electronic devices such as data warehouse, databases, information systems, email Traditional knowledge sources are stored in paper documents such as books, newspapers, notebooks, etc Table 1.1 lists the specific and typical knowledge sources that organizations typically use in their operations

Table1.1: Typical Knowledge Sources

Mary Parker Follett said that "Management is the art of getting things done through

people" This definition implies that managers achieve the goals of the organization by

arranging and delegating work to others rather than completing work on their own

In the view of Koontz and O'Donnell (1968): Management is the design and maintenance of an environment in which individuals working together in groups can accomplish their assigned tasks and goals

From the above, we can understand: Management is a process of achieving the expected goals by planning, organizing, leading, controlling the members and the human resources in organization

About knowledge management, so far there is no uniform definition of knowledge management and there are many different concept of knowledge management Here are some typical concepts:

According to Brian Newman (1999), knowledge management is a set of processes that manage the creation, retention, transfer and utilization of knowledge

Rebecca O Barclay and Philip C Murray (1997) argue that knowledge management (KM) is a two-face business activity: (a) processing knowledge components

of business as a factor of activity businesses are reflected in strategy, policy, and implement at all levels of the organization, and (b) direct connection of the organization's intellectual property - including explicit knowledge (recorded) and tacit knowledge (personal know-how) and positive business results

If one considers knowledge management in the broadest context, then there are multifarious definitions of knowledge management All these definitions hint at the same idea but each one focuses on a particular aspect of knowledge management (Table 1.2)

Table 1.2: What is knowledge management

Source: Benjamins, V.R.,(2001)

Thus, KM is a science associated with the organization's activities Simply, KM is the transformation from tacit knowledge to explicit knowledge and shares it in the organization In a more specialized way, KM is the process by which organizations create value from knowledge-based and intellectual-based assets Defined in this way, it is clear that KM is involved in the process of identifying, acquiring, distributing, and maintaining the necessary knowledge for the organization

The essence of knowledge management

KM consists of two main aspects is information management and human management The majority of organizations and managers are so familiar with the term of information management This term is associated with knowledge management, which is associated with the goals identified and processed by the information system Implementing information management has evolved and become widely accepted as the managers recognize that information is an important source of organization that can and should be managed to improve competitiveness of the organization Many techniques have been developed and applied such as "Knowledge Technology" to analyze the sources of knowledge Information management performs "Knowledge Analysis" and "Knowledge Planning" activities such as information analysis and information planning In fact, KM

includes the identification and mapping of intellectual property in the organization That is, determine who the person knows in the organization From this perspective, KM can be considered as a process of reorganizing intellectual property that focuses primarily on the unique resources and core functions of the organization Through this process, the value and flexibility of intellectual property is increased In addition, intellectual property will improved in decision-making in service and production

KM does not just map, but also creates knowledge that creates competitive advantage and transforms large amounts of organizational data into readily accessible information Through knowledge management, people can identify bottleneck points that impede knowledge flow to decision-making and action By applying information communication technology, all aspects of KM can be coordinated and smooth Indeed, the fact is that when knowledge is well managed, the time required to complete the task is greatly reduced and unnecessary redundancies, if inevitably, can be minimized

The second aspect of KM is human management Basically, this work involves knowledge management in the heads of everyone This includes knowledge management that exists in parallel with the organizational process, including a combination of operational skills, knowledge, and other knowledge-related capabilities.To effectively manage tacit knowledge owners, we need to consider their cultural and social values, attitudes and aspirations, preferences If we do this, we can create new knowledge that information management can not do

Although many organizations today recognize the importance of two aspects of

KM, the full potential value of KM remains at the level of awareness In fact, not all organizations that own some KM system realize that they have them Most organizations have some kind of system for explicit knowledge management, whether simple or complex On the other hand, tacit knowledge management is not common and knowledge management based on technology has not yet developed a completely effective means of exploiting hidden knowledge Although tacit knowledge is the core knowledge of the organization, it is intrinsically personal that it is difficult to shape and communicate

Both aspects of KM address two critical problems: (a) create more organizational knowledge; and (b) create more benefits KM creates great opportunities to accept business strategies that are impossible before For example, KM can open the door to an unlimited network of relationships with customers and suppliers By enhancing customer relationships, KM helps to explore new problem and opportunities through the use of

and customer data include the customer's place and contact name Clearly in this way, KM can implement and enhance the impact of organizational initiatives such as overall quality management, business process reengineering, and organizational knowledge Thus, from these analyzes, KM initiatives can be applied to a multitude of areas for achieving high results in any organization

The role of knowledge management for the organization

KM helps organizations:

- Understand more how the organization activities;

- Reduced time and effort in finding information and materials

- Avoid repeating and redundancy of work;

- Reduced response times for frequently asked issues;

- Improved quality and speed of decision making

1.1.2 Factors influence to knowledge management of the organization

Arcording to Filemon A Uriarte(2008), knowledge management is affected by four factors: management and organization; infrastructure; people and culture; and content management system

1.1.2.1 Management and organization

The first and most important element of KM is the commitment to the highest level

of management This commitment is absolutely essential to the success of any KM proposal The KM efforts must spread throughout the organization from top to bottom Managers also need to have appropriate behaviors by exemplary

Table 1.3: Why do we have to manage knowledge?

Why do we have to manage knowledge?

Marketplaces are increasingly competitive and the rate of innovation is rising

Reductions in staffing create a need to replace informal knowledge with formal methods

Competitive pressures reduce the size of the work force that holds valuable business knowledge

The amount of time available to experience and acquire knowledge has diminished Early retirements and increasing mobility of the work force lead to loss of knowledge

There is a need to manage increasing complexity as small operating companies are transnational sourcing operations

Changes in strategic direction may result in the loss of knowledge in a specific area

Source: Barclay, R.O and Murray, P.C.,(2004)

Commitment from top managers can be implemented in two steps: First, top managers should be models by sharing and using their knowledge The best way to promote KM and demonstrate its strategic importance is that senior managers should deliver consistent messages and clear communication to all levels of the organization Second, a structure that support KM needs to be added, including financial, technological and human resources This is the way to create a KM department and designateChief Knowledge Officer (CKO) This department is responsible for promoting and implementing KM Its mission includes the establishment of a knowledge-driven technology infrastructure as well as support for the collection, classification and monitoring of knowledge use This department is also tasked with managing corporate resources such as labor and capital to make it possible to pursue goals effectively

1.1.2.2 Infrastructure

All KM systems require a certain level support of technology and infrastructure As business processes become more complex and flexible, KM can only be fully implemented when appropriate information and communication technologies are available An appropriate information and communication infrastructure is needed to create, organize, share and apply knowledge KM solutions that handle explicit knowledge and tacit knowledge are now required by the basic communication infrastructure This infrastructure can include communication ports, virtual work spaces, electronic libraries, information systems or online forums The need for such a management system is so great in organizations in many different locations (for example, international companies have offices or factories in many countries) because they need to exchange and cooperate in good and effective ways to overcome geographic distances Any KM system needs three major technology infrastructures That is:

- The technology infrastructure needed to create and arrange the content;

- The technology infrastructure needed to search information;

- The technology infrastructure needed to locate the appropriate profesional skills;

To create and arrange the content, it is necessary to have information technology tools The first step is to prepare a chart tree or build a knowledge map In the knowledge map, the objective of the organization is outlined and the information is organized in a systematic and orderly catalog The knowledge of employees is reflected in the structure of the catalog Users use the knowledge tree as easily as most employees apply the same

intellectual models and use the knowledge in their work When the KM system is mature, the knowledge tree grows and quality gradually

There are many ways to find information Currently, the most popular search methods include access internet, exploite electronic data, and search digital document Organizations can invest in information systems including servers, access networks, and content management software so that employees, according to their access roles, are able

to access content that is convenient By effectively using these materials and content management solutions, organizations can become more efficient by finding the information they need faster Accordingly, they may also make better informed decisions

Table 1.4: Technology Appropriate to Knowledge Management Approach

Source: “What is Knowledge Management?”, Sun Microsystems, Inc (2000)

Identifying and locating relevant profesional skills for the task is as important as content availability and arranging Managers make more effective decisions when they get input from experienced professionals The process of locating experts inside and outside the organization can be greatly facilitated by the application of information and communication technology tools By accessing the unique knowledge of professionals, organizations can enhance their competitive advantage

1.1.2.3 People and culture

The success of KM depends on many factors, in which the most important is the management of people and culture in the organization People is the subject of tacit knowledge And sharing tacit knowledge is a key determinant success of KM Therefore,

the problems that arise in building human resources can have significant effects on the organization performance Accordingly, KM process in an organization must consider not only the process and the resources but more importantly the human beings with which they are knowledgeable This is what is known as the determinant of "people and culture" in

KM People and culture as a determining factor of KM need three important factors:

- Redefining the organizational structure

- Activities in the human resource

- The culture of the organization

The first factor- organizational structure, determinant of decision making as well as calculation of implemention and resources The structure of the organization varies, either horizontally or vertically Depending on the purpose of the organization, a type of organizational structure can facilitate better sharing and information management than other type of structures

The second factor - activities in human resource management, including recruitment, training, evaluation, promotion and compensation for knowledge workers If these activities are effectively implemented, it will have a great impact on the organization's KM operations as well as the efforts to create a culture of knowledge sharing among workers

Assumptions and values that form the basis for decision making often create organization's culture frameworks In order to ensure that employees participate extensively in the creation and sharing of knowledge, there is a need for change in traditional thinking and culture from storing to knowledge sharing This can only happen when there is a credible atmosphere in the organization and when employees feel safe about using them On the other hand, it motivate individuals to share their knowledge Therefore, it is important to manage expectations and motivational levels of employees That, though, is not enough to confirm the existence of a knowledge sharing system, but it

is important that it provides ways to develop their knowledge-sharing motivation

1.1.2.4 Content management system

Content management systems include both internal and external information systems that support the innovation and management of digital information In order to ensure that knowledge management systems work properly, should be developed and implemented content management programs The roles and responsibilities of maintaining and updating information should be clearly delineated at the same time There should also

be a way in which "authors" or "contributors" can provide new content in the form of articles Content management systems also include workflow process policy for target users that determine how content is programmed in the system

Figure 1.4: Contents must be management

Source: The Knowledge Center’s Organization: A Dream Quest, (2004)

1.1.3 Elements of knowledge management of the organization

Arcording to Filemon A Uriarte(2008), a complete knowledge management system have the following four elements are knowledge creation and capture, knowledge sharing and enrichment, information storage and retrieval, and knowledge dissemination

1.1.3.1 Knowledge creation and capture

The first activity of KM is creation and collection of knowledge Knowledge is continually created in any group, corporation or organization because of the interactions between people and people that produce knowledge One of the basic goals of KM is to acquire knowledge created in such interactions Due to the fierce competitive nature of the market today, it is increasingly necessary to create new knowledge, ideas and proposals, and to apply those knowledge, ideas and innovations to organizations and businesses

Writing ideas is the most common methods used to obtain creativity and innovation from individuals Different individuals have different views at the same thing The writing

process of ideas will make possible the sharing of views, ideas of individuals Through this process, views, ideas, and intellectual patterns can be challenged, and edited or changed Good management of this process helps to detect common problems and general views Synthesized views can lead to innovation and new knowledge

Managing the process of creating new knowledge is the hardest.Often, creativity and innovation flourish when there is less interference from managers But for some organizations, they have no choice but to find ways to manage this process because of their survival sometimes they have to depend on how they can manage it good or not When new knowledge is born, it needs to be absorbed to be able to use

Knowledge can be received in different ways External knowledge can be acquired

by accessing various sources such as publications, websites, e-mail and information networks Explicit knowledge in inside and outside the organization can be received in various forms such as paper reports, meeting minutes, copies of memos These documents are usually created at multiple levels of administration and management Meanwhile, implicit knowledge can be generated and received during discussions and meetings with staff, shareholders, corporate partners, consultants and experts Workshops and product launches also bring great value to the creation and reception implicit knowledge that can

be generated by speakers or participants

Figure 1.5: Knowledge Capture and Sharing

Source: Awad, E M and Ghaziri, H M., (2003)

Creativity and knowledge acquisition consist of two main tasks: content management and arrange knowledge into the management system

Content management is associated with the creation of a database of information This content usually requires three basic decisions: Firstly, what new information will be generated, distributed and issued; Information can be distributed in any way (in the ways mentioned above, also via the web, public shared folders) Content management determines the means by which content is added to accepted data Secondly, content management decides who gets access or who has role to update or delete information in the database Thirdly, content management decides what information should be into database Content management requires a tool that identifies what information has been organized from the database and what information is not organized from other sources that are included in the system

Information can be collected and put into the KM system in various ways In order

to facilitate retrieve information later, it is necessary to mark the content as data type and that information entered into the KM database This can be done by creating a software interface which users can upload documents into the system Users may also have to respond to questions about this document Through the answers, the document will be categorized and clearly marked to facilitate search and retrieval later This is accomplished

by data sorting By arranging storage systems, information and data can be collected and organized Information can be found from central site by building an index of keywords to archives However, this system also has the disadvantage that the listing method does not support classification level and it may require the workflow processes such as the information approval process

1.1.3.2 Knowledge sharing and enrichment

The second part of KM is sharing and enriching knowledge It is in the process of sharing that knowledge is refined and enriched Knowledge can be shared by the organization with employees (for example, through memoranda and instructions); by employees with employees (eg through group discussions and internal meetings); by organization with people outside the organization (for example through attending seminars and workshops) Competitive advantage of many organizations is usually determined by the magnitude of knowledge sharing taking place inside the organization But knowledge is not automatically shared, it must be encouraged and nurtured In general, it is necessary to create a conducive environment for communication and cultures within the organization so that knowledge is easily shared Therefore, when designing a KM system in any organization, knowledge administrators should consider the natural tendencies of employees to store knowledge and be alert to others When knowledge is shared effectively, organizations can be influenced by decision-making They can make and make decisions quickly when individuals through the organization can access important strategic ideas Therefore, KM must ensure that employees have direct access to the information and knowledge required to perform certain projects or to design certain products Accordingly, people with accurate information and knowledge may be willing to share with the person who can use it to generate greater profits for the organization

1.1.3.3 Information storage and retrieval

The third part of KM is information storage and retrieval The organization must ensure that knowledge is shared and available to access from employees This can be done

by storing information in a central site with easy-to-retrieve means For example, environmental and social economic statistics and reports can be stored in a database, while officially approved documents should be classified and stored electronically in the appropriate document management system Documents and information in the database can be retrieval through the Internet or an internal website of the organization

Table1.5: The Productivity Challenge: A Closer Look?

The Productivity Challenge: A Closer Look?

Employees spend an hour and a half per day to processing emails, which is 20% of effort

Employees get 50% - 75% of their relevant information directly from other people More than 80% of enterprise‟s digitized information reside in individual hard drives and personal files

Source: Information Worker Productivity Council Research, (2004), and “The Knowledge Worker Investment Paradox” Gartner Research, (2002)

Information is organized and stored according to architecture of the content management system Organizations can deploy different content management systems according to their needs and capabilities Content management systems, though different, but the same principle that information needs to be structured and be divided as much as possible Thus, organizing, searching, and exploiting data is more efficient Relational database systems typically organize information into two-dimensional tables, each table consisting of rows of data (record), each record containing data fields with different data types such as character type, numeric type ,date-time type, ,to encrypt and store the data that the organization wishes A good and user-friendly software design that allows users to update, store, access and retrieve information quickly, easily and efficiently without more skills or complex training

1.1.3.4 Knowledge dissemination

The fourth content of KM is the dissemination of knowledge If knowledge is not effectively disseminated, its influence on development will be limited Effective knowledge dissemination requires to transfer tacit knowledge that highly personalized into explicit knowledge - the type of knowledge that can be widely shared In an organization

where there are management and hierarchical concerns, employees tend to keep their knowledge to themselves and share it with caution In that case, managers must be at the forefront of creating an environment of understanding, collaboration and learning The common forms of knowledge dissemination are publications, presentations, websites and libraries There are also other forms such as participating in external networks, establishing partnerships with other organizations and creating knowledge centers

Table 1.6: Initiative for Knowledge Sharing and Dissemination

Initiative for Knowledge Sharing and Dissemination

The Asian Development Bank launched the Center for Learning, Information, Communication and Knowledge (CLICK) initiative at the World Summit on the Information Society in Geneva in December 2003

Under this initiative, ADB will set up ICT-based interactive knowledge centers in its developing member countries Through CLICK, ADB will support distance learning

on key development topics for developing member countries with up-to-date knowledge products and services that are tailored to clients‟ needs CLICK will also enable developing member countries and ADB‟s development partners to disseminate their own knowledge products and services through this facility

Source: Asian Development Bank, (2004)

1.1.4 Tools of knowledge management

There are many methods of using tools to knowledge management in organizations Arcording to Filemon A Uriarte(2008), theseused tools are: Document Management System; Enterprise Portal; Knowledge Map &Skill Management; Information Database and Lessons Learned System; Collaboration tools; Communities of Practice;

1.1.4.1 Document Management System

Document is the most common source of knowledge and information in every organization Materials include almost everything: quotation, project proposals, contracts

or agreements, technical designs, system models, solutions, technical reports, scientific documents and others Because these document are diverse in terms of type and length, organizations need to systematically manage these documents to help them exploit them With many organizations, efforts to systematize and organize document management are the starting point of KM

Table 1.7: Document Management: KM Starting Point

Document Management: KM Starting Point

There are several document management products on the market, all providing basically the same functionalities (e.g., MS Sharepoint, Oracle iFS, Lotus Domino, etc.) Some typical features are described below

Description Web-based central repository containing all important documents for an

organization Structured according to each organization‟s needs

Benefits Enterprise-wide sharing of any kind of document (office, html, mail) Features • Easy construction of folder structure

• Define customized document types with corresponding metadata/ attributes

• Indexation of all common file types (office, pdf, html, txt)

• Advanced search

• Alerting/subscription services

• Workflow

• Version control

• Profile and user-based access and actions

• Threaded discussions about documents

Source: Benjamins , V R.,(2004)

Document management has two main functions: one is content provisioning and two is facilitating the management and access of content These two functions have a very positive effect on the efficiency of the organization Nowadays, there are many cloud-based online document management solutions that greatly assist the user in accessing multiple devices anytime, anywhere

Document management has four basic elements: Firstly is the recording of contents and archival records; Second is organize hierarchical or networked electronic documents Thirdly is to provide search tools to retrieve the desired documents And fourth is to enhance the security of content by setting the level of access and grant appropriate role for each user

1.1.4.2 Enterprise Portal

Communication Portal, also known as the Internal Portal, to distinguish it from the Public Portal for users outside the organization, is a powerful tool to easily manage knowledge.Through this portal, users can share information and collaborate with others to

find best solutions for work, and then contribute new knowledge to the organization's knowledge store A common example may be the cycle of creating complete knowledge that goes through stages An employee searches and retrieves knowledge from the Portal and exploits, uses, develops knowledge to make decisions and actions This results that are shared and disseminated as learned lessons This knowledge is saved so that other colleagues can access and use it Users can exploit knowledge from higher educated people

or from documents collected based on past experience To be more effective, documents should be categorized by information including summary, author, type, date, and other contextual data

Portal provides an access point through which employees can find out all the information they need This portal provides functions and tools that enable knowledge to

be available to all employees and authorized external users These tools support searching, teamwork, discussion, and other purposes Portals can support individuals and teams share experiences by providing functions for meetings such as create sharing workspace, telephone and video conferencing, dissemination or sharing of documents In addition, Portal can support create collaborative work schedules and remind members of the calendar and the documents to be prepared Portal also provides public or private chat channels Portals are often web-based software, which allows for editing, archiving, sharing, decentralization, adding new versions, and finding information

The basic functions of Enterprise Portal:

- Single sign-on, profile

- Structure, navigation, and personalization

- Community, share and collaborate

- Work flow

- Capture, store and publish

- Categorize and classify

- Search and retrieve

- Notification

- Integration with business applications

- Maintenance

1.1.4.3 Knowledge Map &Skill Management

The KM tool is also effective in receiving information provided by professionals and sharing professional skills with colleagues In an organization where people are the

most important asset, managing their skills, abilities, fortes and experience is extremely necessary Skill Management System is a web-based tool that supports it spreading work across the organization in a distributed direction All employees can update their skills by themselves (adding new skills or upgrading skills)

Knowledge maps help identify who can be a partner, a customer, a supplier, and a competitor through documents, translations, authors, experts, and external users Knowledge maps are the standard tools used to control Portal access to archives and to classify knowledge store

1.1.4.4 Information Database and Lessons Learned

Everyday, all employees learn and improve their work on the basis of experience gained This not only brings benefits to workers themselves (increasing their knowledge and skills), but also brings benefits the organization as the worker performs better However, the organization also needs to learn by receive relevant experiences and distributing them throughout the organization This ensures knowledge gets to the right people and at the right time Learned lessons knowledge base make up the memory of the organization Learned lessons system supports simultaneous processing and distribution of knowledge Learned lessons system is important in organizations where errors can cost expensive and avoid them in the future to help organize significant savings These systems are also particularly useful in organizations where the best skills need to be replicated and disseminated as much as possible In addition to supporting systems, the process of identifying the type of knowledge to acquire and the time when knowledge is to be distributed are important factors for a successful lesson system Experience shows that this properly functioning system can provide the many functions required to turn a company into a learning organization

1.1.4.5 Collaboration Tool

Along with document management, collaborative management is the most important function of the KM tool Collaborative management builds a working environment as a large meeting room where colleagues work together, even when at a distance or at different times The content of the discussion, whether written, audio or video, is stored and can be reused for other related tasks Members share knowledge, contribute ideas, or discuss with each another to find the best solution A good collaborative environment helps people work in a safe and efficient online environment where they can perform most office tasks such as email, search and share documents, work

in a collaborative process, share knowledge, and build closer relationships This environment also encourages employees to share information in open discussion rooms, thus helping to detect tacit knowledge Enterprise Resouces Planning (ERP) software also supports good collaborative management and can view ERP as part of the KM system

A good collaborative management software allows the organization to define the workflow on the software to fit the reality At each step, the user performs the required tasks, evaluates the work and moves on to the next step The software support the delivery

of time and resources to streamline workflow smoothly and quickly, without being overdue

at any step If the employee have difficulty at one step, that iser or system will send a support request to the involved individuals or departments or have experience to assist in processing This system is also used to evaluate work performance and monitor the compliance of processes by individuals and departments in the organization

1.1.4.6 Communities of Practice

Communities of Practice is a great tool for sharing experiences between people with the same goals and interests There, knowledge is shared, discovered and created An Communities of Practicethat can help to share and enrich knowledge and a useful tool of the KM system will contribute to bringing trust to many users One fairly common thing is that people work better with them if they are an group However, in modern organizations members of the group often work in different geographic or departmental locations This tool provides a virtual environment for these people to exchange knowledge and experience Depending on their role and personal ability, individuals can participate in various exchange groups

1.1.5 Knowledge management model of the organization

The knowledge management system model described in Figure 1.6 shows three layers, consits: facilitating factors (the top layer), leveraging factors (middle layer), and infrastructure (bottom layer)

Figure 1.6: Knowledge management model of the organization

Source: Skyrme, D J., (2004)

Enabler‟s factors in the top layer The main factor here is leadership Top level managers understands that knowledge is strategic and connects their ideas to "the bottom layer of the organization." Decisions of the leaders strongly influence the development and sharing of knowledge Without these precursors factors, most knowledge initiatives fail or are impeded

The second layer of the model consists systems of levers that amplifies the distribution of knowledge This system includes processes facilitate knowledge flow, information and measurement (eg, intellectual capital) It is important to distinguish between explicit knowledge and tacit knowledge because their administration is different Explicit knowledge is knowledge that is written or expressed in forms, such as documents, processes, records, or computer database Tacit knowledge is things in the human mind and is difficult to distribute Tacit knowledge includes understandings, experiences or know-how Management of Explicit Knowledge provides systematic processes for information processing such as the management of information sources as discussed above Management of Tacit Knowledge is more related to human managemen Creating

an environment that encourages knowledge sharing is an important leverage In addition, how people can interact with each other is important, whether through knowledge sharing events, meetings with work groups, or individual training and coaching