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Information and knowledge are distinct based on their internal organization. Information
is disorganized, while knowledge is organized (Koniger and Janowitz, 1995).
It is argued that the aims of knowledge management (KM) are not to build knowledge
management system (KMS) but to enhance organizational competitiveness through
capitalizing the potential value of knowledge (Kim, 1999; Wiig, 1997). For this purpose,
we need to search for KM strategy with regard to gaining sustained competitive
advantage for Samsung. Researchers suggest that business process reengineering
(BPR) can provide us with good resources for KM (Hwang et al., 1998). Probably BPR
can be a methodology for enhancing the process efficiency.
As a global company Samsung SDI (formerly Samsung Display Device) must practice
Process Innovation for building core competency and competitiveness. From the initial
stage, the company must introduce and adopt advanced processes rather than
innovating their own established systems and processes. There are so many documents
and manuals of Process Innovation practices so they need to have effective ways of
handling these kinds of knowledge and information. Afterward, Samsung must realize
the needs of introducing KM and implementing Proces Innovation -based KMS. The
whole picture of Samsung SDI’s KM process is presented in Figure 1.
Management innovation related knowledge must be shared with other members of the
Samsung company who are working in the dispersed places across the country and
across the world. Samsung must employ KMS for knowledge as a valuable asset based
on the characteristics of knowledge.
Methodological knowledge of PI
Specifically, this type of knowledge derives from analytical knowledge about process and
improved process based on internal consensus. The process knowledge includes the
contents of specific tasks and their relationship, departments concerning task, process-
related information system, and output knowledge in this stage.
First, the type of knowledge is produced through externalization that is transformed from
tacit knowledge to explicit knowledge (Nonaka and Takeuchi, 1995). Second, the value
of this knowledge is capitalized when the knowledge is distributed, shared and
internalized by the members who are in charge of the task. Third, this type of knowledge
is bound to the given context due to the characteristics of knowledge. When the context
has been changed instantly, the process knowledge has been restructured and adjusted
to the changed context. Therefore, the KMS should be implemented and infrastructure is
constructed toward the direction of capitalizing the value of the process knowledge for
Samsung. Moreover, it is essential for the KM implementation to distribute process
knowledge and to secure the places for sharing.
The KT-Path means the transformation path of different types of knowledge in the I-
Space. Especially, the significance of the KT-Path is the knowledge transformation
between tacit and explicit knowledge, which is necessary for knowledge creation in
Samsung organizational level. It is necessary to consider the characteristics of
knowledge and cultural dimension in the I-Space in order to identify the most effective
and efficient ways for Samsung.
The Samsung organizations should deploy so-called “relational strategy” for absorbing
complexity. When managing the organizations, SAMSUNG management must use the
network-based strategy, especially the traditional extended family system in order to
absorb the complexity. In this organization, the cognitive complexity is high.Thus, they
must use the relational strategy to deal with cognitive complexity. In other words,
relationship like the extended family system can be used for absorbing the cognitive
complexity.
KMS in the Koren culture is constructed by relational, qualitative and wholistic strategy,
which is based on relationship-centered and clan-centered approach. And this system is
adopted socially, because complexity of knowledge is absorbed by the relationship-
centered strategy. Therefore the korean people prefer using well-documented papers
and absorbing complexity of knowledge based on relationship of extended family system
to processing and elaborating information in terms of analytical perspective that is mainly
practiced in the Western countries.
The more effective and efficient way to transform the process knowledge for Samsung
IS shown in figure below.
The case of Samsung shows the fact that EDMS may become the infrastructure of KM
and accumulate and utilize process knowledge. The company must regard the document
as an important explicit knowledge source in the organization, not simply as information
and data as such. Furthermore, the company must start KM as a way of knowledge
accumulation and utilization. At the initial phase, the company must simply changed its
documents into the electronic format, and saved into the knowledge store. But later, the
company must innovate business processes and tasks in terms of KM. Especially after
PI there are massively produced process documents, i.e. process knowledge so that it
should be stored, transformed, shared and utilized, these are the goals of KM.
Vincenti (1990), Faulkner (1994) and more recently Coombs and Hull (1998) classified
knowledge management activities and associated practices under the three headings:
(1) knowledge processing;
(2) knowledge domains; and
(3) knowledge formality.
Furthermore, Soliman et al. (1999) described the processes of managing the human
resources knowledge in organisations as:
… the means by which value is added to raw-knowledge (inputs) in order to create
processed-knowledge (outputs) i.e. adding value for their clients.
In general, Samsung must utilise five processes for knowledge management in order to:
(1) create;
(2) capture;
(3) organise;
(4) access; and
(5) use knowledge.
These five processes cover almost the entire scope of human resources functions and they
are usually used to obtain the details of human resources “employees” knowledge.
The way to decide on the best approach for each organisation is to know:
(1) the market;
(2) the profitable areas; and
(3) whether the organisation provides one-off solutions or the same solution repeatedly.
If Samsung primarily provides clients with a repeat of earlier solutions, then it should
emphasise the capture and automation of explicit knowledge. This means investing
heavily in information technology (IT) and less heavily in the “best” experts. On the
other hand, if Samsung specialises in finding solutions for one-off projects, then
knowledge management strategy should focus on tacit knowledge, i.e. hiring the best
minds available.
Samsung must also determine how the human resources department can convert the
knowledge and make it available. Nonaka and Takeuchi (1995) argue that there are four
modes of knowledge conversion. These are externalisation, internalisation, socialisation
and combination. When adopting a knowledge management program, Samsung needs to
plan for each conversion mode.
Other technologies already employed by the enterprise could go at least part of the way
towards employing the knowledge management approach. These technologies include
office information systems, collaboration tools, retrieval and navigation tools and
knowledge-based systems. However, despite the applicability of the technology,
SAMSUNG must be warned that technologies possess limitations which could result in
many conflicts before a solution is achieved. The sign of a real knowledge management
system is a process and infrastructure aimed at supporting the creation, harvesting,
assimilation and leverage of knowledge.
Clark and Soliman (1997) have shown that managing the introduction of knowledge-
based systems is a difficult task, which requires team effort and support throughout the
enterprise. For instance, in the knowledge management chain a number of decisions need
to be made for Samsung . These decisions are required at each stage in the knowledge
management chain where it is necessary to create, capture, access and use knowledge, as
shown in Figure 3 (Soliman et al., 1999). Each time a decision is made, input from
various teams and groups across the Samsung organisation is required and the
complexity of the input warrants the use of knowledge-based systems.
Figure 3Illustration of the use of knowledge-based systems for decision making in the
various stages of the knowledge management chain (after Soliman et al., 1999) ts the
use of knowledge-based systems.
Conclusion
We conclude that the PI-based KM can provide Samsung with sustained competitive
advantages, which are inimitable competencies from other companies. The PI-based KM
may become the firm-specific competencies because process knowledge itself has
proprietary feature of knowledge for the company.
Thus, we suggest the implications of this study for implementing KMS effectively as
follows:
to bear in mind carefully the features of process knowledge when implementing KMS;
to consider socio-cultural factors and organizational culture when searching for the KT-
Path concerning knowledge cognition and utilization.
Although human resources management has played an increasingly important role in the
structure of organisations in recent years, there are still areas where it can progress even
further to improve the competitive position of organisations. For instance, if knowledge
management programs are used and developed to reflect the characteristics of the
organisation, it potentially leads to creating trust, mutual respect, dedication and
cohesiveness of the workforce involved.
The role of human resources management goes beyond mapping the human resources
knowledge. In fact, a significant part of the HRM role lies in identifying the knowledge
gap(s) and thus assisting in filling the strategic gaps of organisations.
The process of forward knowledge mapping serves as the exploration of strategic
opportunities for Samsung, while the backward knowledge mapping may be considered
as the alarm-bell for strategic deficiencies which Samsung must overcome.
While effective knowledge management can be expensive, ineffective knowledge
management is inevitably far more expensive.