ISKO-Conference Knowledge Organaisation 97 - 7. - 10.10.1997, Humboldt Universität, Berlin
Knowledge Organisation in Companies
Dipl. Math. Manfred Bundschuh
Bergisch Gladbach
Translation into English of
https://www.academia.edu/46930390/Knowledge_Oganization_in
_Companies
Contents
1. Knowledge Organisation in Companies
1.1 The three worlds of knowledge organization
1.2 Knowledge management in companies
1.3 Explicit and implicit (collective) knowledge
2. Knowledge production in companies
2.1 Types of knowledge
2.2 Knowledge acquisition
2.3 Knowledge retention
3. Knowledge management in companies
3.1. The cybernetic control loop of knowledge organization in companies
3.2 Knowledge development
3.3 Knowledge distribution
3.4 Knowledge organization
4. Knowledge assessment in companies
4.1 Knowledge quality
4.2 Knowledge utilization
4.3 Knowledge transparency
5.
Zusammenfassung
6.
Bibliography
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Knowledge Organization in Companies
The topic of "knowledge organization" is red-hot today in the age of the Internet and intranet and is
an economic factor of considerable proportions that now affects every company and its employees.
The development is currently being driven by the "dynaxity" (dynamics and complexity) of the
transformation of Europe into a continental market with a single currency and a single market
mechanism for about 800 million people (Georg Turnheim, p. 2). Numerous conferences will
therefore deal with the following problems: Knowledge Management, Learning or Intelligent
Organizations, Information Retrieval, Internet, Intranet and Knowledge Organization.
"In this time of upheaval, it is essential to strive for fundamental insights."
(M. Bundschuh, p. 24) To this end, this conference contribution would like to provide an overview
of current approaches in literature and practice.
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1.1 The three worlds of knowledge organization
"In order to be able to classify the topic correctly, we need a model of knowledge organization that
enables us to learn, act and teach in an evolutionary way that secures our existence" (Bundschuh, p.
24). From a holistic point of view, Popper's classification scheme of the three worlds offers a
particularly suitable approach for structuring and systematizing the topic.
Since knowledge organization in companies (according to Juup Essers and Jos Schreinemakers, p.
26) belongs to Popper's World 2 (i.e. the world of our experiences), we refer in this presentation to
the business processes of knowledge organization in companies, i.e., we only deal with "World 2".
This is followed by World 3 (that of the products of the human mind), i.e., knowledge management
in companies, which is strongly linked to the knowledge organization in companies (World 2). The
world 1 of physical, material things that underlies both worlds - "that which is the case"
(Wittgenstein), the knowledge of the details themselves, deals with the manifold conditions in
companies, the "knowledge facts".
The business processes of the knowledge organization itself suggest a tripartite division, since the
production (1.) and the processing of knowledge (2.), i.e. its administration (2.a) and evaluation
(2.b), are considered. This gives us a 3x3 matrix as a framework. In addition, there is a further
tripartite division into raw materials, as well as their procurement and storage, which manifests
itself in the 9 sub-areas of the matrix with different characteristics. Therefore, the structure of
knowledge organization in companies in a total of 27 sub-topics (triple trinity) can be seen in Fig. 1
as an ordering scheme of the various facets of the topic:
Knowledge Organization in the Company (KO)
Commodities
Procurement
Storage
Welt 2:
Knowledge Organization (Business processes of the KO)
1. Production:
Knowledge
Knowledge acquisition Knowledge Retention
2. Processing
a. Administration Knowledge development … distribution … Organization
b. Assessment
Knowledge quality
… use
… transparency
Welt 3:
Knowledge management
1. Production:
Knowledge policy … potentials
2. Verarbeitung
a. Verwaltung
Creating awareness … availability
b. Bewertung
Knowledge culture … objectives
Welt 1:
Knowledge Facts
1. Produktion:
Data
Collection
2. Verarbeitung
a. Verwaltung
Knowledge capital … Information
b. Bewertung
Expertise
Criteria
… order
… infrastructure
… principles
Documentation
… Presentation
Assessment
Triple-Trinity
Fig. 1: Popper's 3 worlds of knowledge organization in companies
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This introduction to the structure of the topic is preceded in order to facilitate understanding and to
provide the reader with Ariadne's thread for his orientation within this complicated (not complex !)
structure.
1.2 Knowledge management in companies
The knowledge available in companies and its effective and efficient use are a key
success factor of the first order for the future competitiveness of companies. In her overview article,
Gloria Reyes (p. 43) describes the organizational measures required for this as follows: "If the
company's internal knowledge is to be regarded as an asset, then the same processes and the same
value chain must come into play as for other assets. The raw materials in the form of external data
or internal documentation must be procured according to the just-in-time model if possible. The
data must be further processed and refined with the company's internal knowledge from know-how,
etc., in order to finally reach the appropriate target groups with the appropriate packaging. The
entire organization must be converted to the rational production and processing of knowledge."
With the strategy of shortening the "time to market", companies can also act as learners. and
Intelligent Organizations can catch up with the current stormy development of the knowledge
organization. The urgency with which these measures must be tackled is shown by Christof Schmitz
and Betty Zucker/1 (p. 12 f.): "Right now, there is a great danger that in the course of general
reorganizations, know-how that has been developed over many years, the resource that has the
greatest value, will be destroyed. ... If we don't take knowledge flow management (i.e. management
of the business processes of the knowledge organization, note by M. Bundschuh) into our own
hands now, when will we? ... The background to Knowledge Flow Management is formed by three
factors:
1. Knowledge is the ultimate resource of the company.
1.
The management of knowledge and the achieved knowledge performance (how quickly
knowledge is available, note by M. Bundschuh) decide the competition.
1.
The central management task is the management of the existing and the development of the
new knowledge."
By optimising the business processes of the knowledge organisation in companies with reverse
engineering (i.e. restructuring of business processes), it can be achieved that the right know-how
can be applied at the right time by the right employees.
Knowledge management in companies means the production, management and evaluation of knowhow in relation to the company's goals, i.e. knowledge organization is always an instrument of
knowledge management within an internal / external organizational / sociological system.
Gloria Reyes (p. 42) uses food for thought and key questions to point out management issues: "If
knowledge is not distributed or communicated to others in the company, it is lost. ...
The management of in-house knowledge begins with the determination of the importance of
knowledge in the company: Where does it come from? Which of these is actually used ? Where are
you going? Finally, one evaluates: Is the knowledge outdated? Only available with great effort ?
Always late ? The value of the knowledge can then be determined: How much does it cost? How
much does not knowing cost? Can it be procured faster and better from external bodies? Can you
capitalize on existing knowledge?"
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These burning questions of knowledge entrepreneurs (i.e. persons actively promoting knowledge
organization) in companies are currently leading to concrete concepts of how companies present
themselves on the World Wide Web and how to communicate via intranet and intranet.
e-mail, the flood of messages (not a flood of information!) can be brought to the woman or man in
the company.
1.3 Explicit and implicit (collective) knowledge
The sentence "If the company knew what it knows" indicates that it is the tip of the iceberg of
operational knowledge. "In addition to this explicit knowledge, there is also the large area of
implicit knowledge, which is all too often overlooked. By that I mean knowledge that we use but
are not aware of." (Ewald Kiel/1: p. 37)
Christof Schmitz and Betty Zucker/1 (pp. 44 - 47) write: "Our cultural focus is on explicit
knowledge. This refers to describable, standardizable knowledge that is methodically and
systematically stored in systems, structures, processes, documentation, libraries and databases.
However, explicit knowledge is not everything, implicit knowledge is just as relevant. ... implicit
knowledge (is) that subjective ability, are those abilities and competences that someone exercises in
the handling of his tasks without being fully described, ... Not only management, but also many of
our knowledge domains are contained in a specific practice and are not explicitly formulated in
books, manuals, training programs or the like. Often this practice is then called art; in management,
people tend to call it charisma. ...
The addition of implicit knowledge gives us the opportunity to understand organizations not only as
information-processing machines, but as living systems. ... The second important addition of
implicit knowledge concerns our understanding of innovation. Innovation means developing new
explicit and implicit knowledge. New knowledge replaces old knowledge (which, as is well known,
is not equally loved by everyone), which is why innovation always means self-renewal. ... Implicit
knowledge is therefore an important resource of the company.
The transformation of implicit knowledge into explicit knowledge is an important part of any
innovation process. ... Dialogue and joint reflection help to bring out silent knowledge and bring it
to the surface. ... Implicit knowledge is externalized. ... The explicit knowledge that emerged in the
dialogue ... is now combined, checked and supplemented with other explicit knowledge in the
company. ... A solution is found, and the knowledge contained in it becomes part of the knowledge
of the interlocutors. They internalize it."
2.
Knowledge production in companies
The core question of knowledge production in companies is how the immanent potential of
knowledge, skills and creativity of employees can be translated into active action using effective
methods. To do this, the company must become aware of which explicit and implicit knowledge
resources it has at its disposal and which can be accessed externally.
2.1 Types of knowledge
Julius A. Schreider (p. 24) distinguishes between personal and social knowledge. When an
individual's personal knowledge is communicated, abstracted and transformed into public property,
it is accessible to all members of a cultural circle and thus social knowledge. According to Schreider
(p. 24), this knowledge can be identified, verbalized and presented as text and thus become abstract
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knowledge, a second kind of social knowledge. Only this abstract knowledge can be indexed,
classified and systematized.
Jiri Panyr has presented a knowledge taxonomy that can also be used as a checklist for the
development of implicit knowledge:
1." "Global" expertise
1.1 Simple factual knowledge
1.2 Knowledge of conventions, rules and trends
1.3 Knowledge of the organization of the elements of a subject area, and
on the methodological handling of these elements
1.4 Knowledge of generalizations and abstractions in a subject area
2. Heuristic-strategic knowledge
2.1 Conditions for knowledge acquisition or absorption (understanding)
2.2 Application or application and action knowledge
2.3 Analysis and synthesis
2.3.1 Analysis
2.3.2 Synthesis
3. Values and characteristics
3.1 Values (weighting)
3.2 Order of values and value system
3.3 The Essence of Judging (Evaluation)
Fig. 2: Types of knowledge, according to Jiri Panyr, p. 15
In contrast, Peter Jaenecke (p. 25) distinguishes between core, marginal and pseudo-knowledge - a
classification according to more qualitative criteria, while the expertise of companies according to
James Brian Quinn et al. is effective on four levels (in order of increasing importance):
"Know-what:
Know-how:
Know-why:
Care-why:
cognitive knowledge,
highly developed skills,
Understanding of systemic relationships,
Creativity on your own initiative."
Quinn et al. suggest further developing the expertise of employees and making it effective. To this
end, companies are to be reversed, because
for know-what should
only the best will be hired, the initial training is intensively strengthened,
the professional challenges are continuously increased and
the professionals are rigorously evaluated, the underperforming are dismissed
and for Care-why
increase the ability of professionals to solve problems through additional knowledge,
das per Systemmanagement und Software verfügbar wird
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as well as the reluctance of professionals to share information with others.
and to find an organizational form in accordance with the expertise.
In the use of groupware, a distinction is currently made between push information (e.g. e-mail - the
information is sent to the recipient) and pull information (e.g. intranet, Internet - the information is
picked up by the recipient).
2.2 Knowledge acquisition
Today, the targeted, active awakening of knowledge reserves takes place through business process
optimization in companies. In this way, implicit knowledge becomes explicit knowledge and this in
turn is translated into action (Murray, p. 207). At present, this often happens more reactively than
actively (because resistance has to be overcome). However, approaches can be observed, such as
benchmarking (i.e. cross-company comparison on the basis of key figures), or the use of
gatekeepers (employees who actively acquire knowledge for the company) for monitoring
(permanent observation, monitoring) and collecting external information (be it at trade fairs,
conferences, congresses, courses, presentations, etc.). This allows companies to actively shape the
process of knowledge acquisition. In this context, efforts are also being made to engage in so-called
data mining in order to collect internal information and to promote the active exchange of
experience between suppliers and customers in order to discover external information.
All in all, the process of acquiring knowledge is very time-consuming and requires good
organization so that it does not turn into a flood of news, because "In this actionism, it is often
overlooked that the methods and goals in literature research currently hardly take into account the
limited human capacity. ... The overriding principle is: Whatever material accumulates must also be
kept available." (Jaenecke, p. 31) This problem leads us to the next section.
2.3 Knowledge Retention
"If knowledge cannot be retrieved, it is considered lost." (Reyes, p. 43) Therefore, in addition to
libraries and literature collections, there are now many other ways of storing knowledge, with the
trend towards media that provide knowledge actively, electronically, in dialogue. Whereas in the
beginning it was still databases, today it is data warehouses, computer-aided learning programs,
intranet and Internet as well as information routers (for filtering information) that provide
knowledge for those seeking information. Gloria Reyes (p. 44) distinguishes between information
routers with filter function and analysis systems, which can also monitor, distribute and integrate, as
well as document management systems/full text management systems, which can only integrate, or
also distribute, if they are connected to groupware.
With this variety of knowledge to be documented, the problem arises of organizing a reasonable
administration for relevant knowledge, i.e., not superfluous and disordered knowledge - our next
topic.
3. Knowledge management in companies
Lilia Stünzner (p. 60 f.) uses the systems theory approach to show that a dissemination of
knowledge is possible when complex feedback systems are present, i.e., networked, reciprocal
communication and information channels: "This can also produce new knowledge, new
information, since knowledge components can be linked with each other. The internal increase in
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complexity via reflexive connections thus creates the possibility of generating new knowledge and
increasing knowledge. On the other hand, mistakes can be corrected and advantageous
developments can be obtained, as knowledge or information can be permanently reflected.
Ultimately, there is then the potential for meaningful system differentiation and selection of
information."
3.1 The cybernetic control loop of knowledge organization in companies
Therefore, we can set up a cybernetic control loop (see below, Figs. 3 and 4) of knowledge
organization in companies. A cybernetic control loop consists of the following four components:
The Controller: receives measurements of the measuring element, decides, passes on the target to
and to the actuator.
The Actuator: selects measures and passes on a set value to the control system.
The Control System: carries out measures specified by the actuator. The shorter the control range
(e.g. time interval), the more well-dosed measures are possible for system control.
The Measuring Element: measures the degree to which goals have been achieved; checks for
deviations from the optimum (caused by disturbances) and informs the controller about this.
Fig. 3: Components of a cybernetic control loop
The entire cycle is called the feedback process and leads to a flow equilibrium (homeostasis): the
system regulates itself. Examples of such control loop systems are heating with thermostats or, to
stay with the meaning of the word cybernetics, the journey of a ship with a pilot on board in unsafe
waters:
Heating:
Ship:
Controller
ThermostatAttitude
Captain
Actuator
Switch to
Heating
Helmsman
Control System
Heating
Drive
Measuring Element
Thermostat
Lotse (pilot)
Fig. 4: Examples of cybernetic control loops
If we apply this model to knowledge organization in companies - as shown in Fig. 6 (p. 8) - we can
find the following agreement with Popper's 3 worlds of knowledge organization in companies (Fig.
1, p. 2):
Controller
World 3
Actuator
World 2 (1.)
Control System
World 2 (2.a)
Measuring element
World 2 (2.b)
Knowledge management … Production
… Management
… Assessment
- Knowledge policy
… Development
… Quality
- Knowledg Distributio
… Utilization
… Knowledge
- Knowledge Objectives - Knowledge acquisition
- Knowledge Principles … Retention
… Organization
… Transparency
Fig. 5: The components of the cybernetic control loop of knowledge organization
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Figure 6 illustrates this control loop by means of a screen of a computer system developed by M.
Bundschuh and D. Gaußelmann for the simulation of cybernetic control loops, with which the
behaviour of the system can be observed, e.g. in the event of disturbances.
Fig. 6: The cybernetic control loop of knowledge organization in companies
3.2 Knowledge development
The development of knowledge can be considered in terms of content and organization. In terms of
content, it is about refining existing knowledge through analysis, verification, consolidation,
transfer to use cases, followed by technical steps. The application of these methods has often led to
the emergence of new knowledge.
The administration distinguishes here a) the organizational structure, i.e., all entities in the
companies involved in the development of knowledge: specialists, departments, teams, and b) the
process organization, i.e., methods and standards, technical tools, system architecture, project
management and quality assurance. This can also be understood as professional project
management of knowledge development.
Well-organized knowledge acquisition leads to a sharpening of awareness in companies of the value
of knowledge as an economic asset and also to the development of a "knowledge culture" in
companies, both topics that can be assigned to Popper's World 3. In a survey of 431 organizations
conducted by the Ernst & Young Center for Business Information and Business Intelligence in 1997
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(Twenty Questions on Knowledge in the Organisation), the knowledge culture (non-existent or
poor, M. Bundschuh's note) was named as the leader of the greatest obstacles to knowledge transfer
in organizations with 54%.
3.3 Knowledge distribution
The distribution of knowledge is, so to speak, the marketing of knowledge. Here, on the one hand,
demand (pull knowledge) meets a range of knowledge (push knowledge). Automation in the form
of knowledge management systems, e.g. in the form of intranet and Internet, etc., can support this
knowledge-process chain. Murray (p. 207 f.) writes: "The Information Model is Changing from
'Document' to 'Dialog'.... Yes, access is very important, but it's only part of the requirement."
Groupware is ideally suited here to simplify the joint use of knowledge and to promote the
development of knowledge networks in companies.
3.4 Knowledge Organization
Order is half the battle and therefore knowledge must be prepared and packaged. The preparation
includes the description (indexing), classification, systematization and
(Re-)presentation of knowledge. This involves organizing with classification methods that are well
known in libraries, documentation centers and databases.
The packaging of knowledge is a measure against forgetting, misplacing and - especially currently
in the case of electronic images - falsification of knowledge. This applies to all types of documents:
journal articles, checklists, forms, manuals, patents, card indexes, etc. in conventional or electronic
form.
4.
Knowledge assessment in companies
Lilia Stünzner (p. 51) shows that knowledge is necessary for organizations to cope with complexity,
and Helmut Löckenhoff (p. 145) concretizes this as follows: "The act of conscious evaluation is
decisive for the then consciously meaningful management of complexity and for the conscious
control of change processes."
Juup Essers and Jos Schreinemakers (p. 25) also point to the problem of companies in determining
the quality and practical value of the knowledge available to them. It is not the quantity that decides,
but the quality.
4.1 Knowledge quality
In Gerhard Rahmstorf (p. 213) we find a minimum quality standard through the following criteria:
Truth, Validity,
innovative value,
Importance in theory,
relevance, applicability,
Topicality.
These criteria show that in order to obtain clarity about their application in knowledge assessment,
one must first look at knowledge use and knowledge transparency - the next two topics.
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4.2
Knowledge Utilization
Gerhard Rahmstorf writes about the use of objectified knowledge: "An important aspect of the topic
is that the use of knowledge must be oriented towards the needs of the users." Ewald Kiel/2 (p. 31)
distinguishes between the following needs:
normative needs:
explicit need:
Subjective need:
komparativer Bedarf:
Anticipated needs:
critical need:
regulations, norms, standards
clearly expressed by the individual
unconscious, semi-conscious, boundaries not clear
best practice, benchmarking
in the process of emergencing
remedying defects
With regard to technical aids, Christof Schmitz and Betty Zucker/2 (p. 77) demand: "Knowledge
use and knowledge development need more network-like, team-supported and communicationintensive structures and processes."
Finally, Charles Wang points out the consequences of unlimited use: "If everyone has the same
information at their disposal, there is no longer any knowledge of power."
In the survey of 431 organizations by the Ernst & Young Center for Business Information and
Business Intelligence in 1997 (Twenty Questions on Knowledge in the Organisation) mentioned
above, more than 80% of the companies named the following critical competitive factors:
Customers
best practice / effective processes,
Own competence and skills,
Own products and services,
Current market developments,
Competitor.
and expected the following benefits from more active management of their knowledge (also with
over 80% of the mentions), whereby innovation and flexibility were rated as particularly important
for the company's success:
Innovation,
Efficiency
Improved decision-making skills,
Improved response behavior towards customers,
Flexibility.
Obviously, knowledge management can be used specifically to increase competitiveness and
shorten the time to market (i.e., the accelerated development of products up to market maturity) as
well as to actively cope with future requirements (e.g. in the form of early warning systems) and
complexity. Ewald Kiel (p. 38) points out in this context that "knowledge is made a tool for certain
purposes." To do this, knowledge must not only be usable, but also transparent.
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4.3 Knowledge transparency
Knowledge transparency can be seen from a structural and functional point of view. From a
structural point of view, it is about the inner properties of knowledge transparency. By this I mean
correctness and consistency. Correctness is a sine qua non for the use of knowledge in companies.
Consistency of knowledge is an essential prerequisite for its applicability and can be ensured by
systematics and classification.
From a functional point of view, knowledge transparency is about the external behavior when
applying knowledge in companies. Functional properties of knowledge are availability, relevance,
topicality and future prospectiveness.
Availability is an indispensable prerequisite for knowledge management. Relevance depends
causally related to the need for information and the usability of the available knowledge. Christof
Schmitz and Betty Zucker/1 (p. 60) write about the topicality: "Old, outdated knowledge seems to
dominate and block the way for the new. ... So the question of the disposal of knowledge is
vehemently posed as an apparently obvious way of dealing with the knowledge explosion."
5. Summary
To sum up, it can be said that awareness of the value of knowledge must be awakened, since
knowledge is becoming the fourth economic factor - after land, labour and capital - as a result of the
increasing "dynaxity" for competition. To this end, the entire organization must be converted to the
rational production and processing of knowledge. Knowledge organization in companies means
consciously managing knowledge. This is the only way to tap into knowledge reserves (implicit
knowledge) and capitalize on the knowledge and gain an information advantage over the
competition.
The complexity of the topic was countered with a self-developed model, which is based on Popper's
theory of the 3 worlds and gives an overview of the diversity of the sub-topics. A self-organizing
cybernetic control loop system of knowledge organization in companies was presented, which can
be used to show management possibilities for controlling the knowledge organization.
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