A Comparative Case Study of Knowledge Resource Utilization 239Copyright © 2005, Idea Group Inc. Copying or distributing in print or electronic forms without writtenA reason an application like ERP is utilized by resource-consolidating companies
is to aid in improving business processes. For example, a typical customer order makes
a paper-based journey from in-basket to in-basket around the company, being keyed and
rekeyed into different departments’ computer systems along the way. The time spent in
these in-baskets causes delays and lost orders, and the rekeying into different computer
systems invites errors. Meanwhile, no one in the company truly knows the status of the
order. At any given point, there is no way for the finance department to get into the
warehouse’s computer system to see whether the item has been shipped.
By having this information in one software system rather than scattered among
many different systems that do not communicate with one another, companies can keep
track of orders more easily, and coordinate manufacturing, inventory, and shipping
among many different locations at the same time. When one department finishes with the
order, it is automatically routed via the ERP system to the next department. To find out
where the order is at any point, an employee would need only to log in to the ERP system
and track it down. People in different departments view and update system information
easily. This method allows customers to get their orders faster and with fewer errors.
The Knowledge Life Cycle
The ability to share knowledge across an organization can be a critical organiza-
tional asset. Information technologies are used in modern organizations to facilitate
corporate communications, store corporate information, and support corporate transac-
tions. These capabilities, among others, allow corporate information technologies to
assist in storing, organizing, and accessing the corporation’s collective knowledge.
Recollection of past events using an automated information system can help users
understand the context of activities and learn how the organization has operated under
past circumstances. Thus, they are better able to conduct themselves and make decisions
in the context of the provided knowledge.
Managing knowledge in organizations includes capturing, encoding, storing,
filtering, and disseminating information that can be actualized into valuable organiza-
tional know-how. One basic assumption of KM contends resource constraints such as
time, capital, and understanding limit the ability to reasonably expect that all necessary
and relevant knowledge can be captured and disseminated throughout an organization.
Nonetheless, mechanisms to capture, encode, and store process knowledge in organi-
zations provides (1) a starting point for future projects and (2) a basis for avoiding similar
mistakes in future projects. Knowing the how and why (i.e., process knowledge) behind
what (i.e., factual knowledge) leads to greater abilities to generate insight and better
understanding.
Experience and expertise in the workplace provide valuable real-world artifacts for
study. However, personal knowledge associated with a specific project can deteriorate
overtime. If knowledge can be captured and encoded in a relatively quick and painless
way, knowledge assets could be incorporated and shared through the collective
organizational knowledge base. Hoffman et al. (1995) describe several methodologies for
eliciting knowledge from experts. Methods for capturing process knowledge have had
mixed results. The need for corporate amnesia along with resource constraints and the
monumental effort that is often required to capture knowledge have conspired against
the regular and consistent gathering of useful knowledge.