The first text to be analysed is by Karl Wiig. At the time of writing the article he was Chairman of the Knowledge Research Institute. He was one of the first to publish specifically on the topic of KM and contributes regularly to the Journal of Knowledge Management. The article selected for analysis was the very first item in the opening volume of the Journal of Knowledge Management. As an introduction to a relatively new area of academic interest, the article is
broad in its definition of KM and its application to companies, industrialised societies and countries.
Overview
This article, as indicated by its title, provides an introduction to KM. It traces the origins of KM and highlights the significance of KM to organisations at local and national levels. The article also recommends several principles and strategies for implementing KM.
Wiig’s perception of knowledge is conveyed through descriptions of the role of knowledge, its characteristics and its attributes. The role of knowledge is ostensibly to generate competitive advantage for the organisation, by making it ‘act intelligently’ (p. 8) in order to create and deliver products and services of the highest quality to customers.
The role of knowledge is, however, not limited to the business organisation. The author extends the role of knowledge to local and national societies, which are forms of organisation as well. Wiig contends that knowledge is a ‘driving force’ that will help societies to position themselves for future success (p. 13). By this he implies that the management of knowledge is necessary at all levels of society.
Critical reading
As this is the first of the texts to be analysed, I will elaborate on the process of cluster-agon analysis. Cluster-agon analysis begins with locating key words within the text that highlight some aspects of a topic, such as knowledge in this case, over others. From these key words, I highlight the relationships they have with one another and form clusters based on their associations in terms of meaning. The clusters formed are not the only concepts that are
present in the text. However, they are the most prominent and reflect the concept of knowledge as conceived by the author.
After reading the article several times, I listed key words drawn from definitions of knowledge as stated in the text. These definitions include explicit ones such as ‘how people work with their minds’ (p. 6) and implicit definitions such as how individuals and groups arrive at decisions (p. 7). Wiig elaborates on these definitions by highlighting some of the
characteristics of knowledge. For example, he says that knowledge is acquired from people, it can be transferred from generation to generation through education (p. 7) and it can be created, captured and deployed. These descriptions suggest that knowledge has finite, physical qualities that allow it to be ‘packaged’ and transferred.
The list of key words derived from the definitions of knowledge includes over 18 verbs. Many of the verbs refer to the physical qualities of knowledge as well. For example, the words ‘transfer’, ‘restructure’, ‘deploy’ and ‘deliver’ imply the movement of concrete objects. Other words such as ‘build’ and ‘store’ also convey the impression of ‘knowledge’ having physical qualities. There is also a sense of military-like efficiency in the words ‘deploy’ and ’deliver’. These words thus share similar connotations of the concept of knowledge.
When applied in relation to business assets and natural resources the words mentioned above are usually literal descriptions. However, in the text they are figuratively applied to the concept of knowledge. The connotations imbue ‘knowledge’ with the physicality and business associations that assets generally have. Unsurprisingly, the most frequently repeated description of knowledge is ‘knowledge as an asset’.
So, a cluster around the concept of knowledge having asset-like qualities was formed. Defining knowledge in terms of an asset is part of a larger metaphor which Andriessen (2006) says is ‘knowledge as a physical resource’ (p. 98). As a result, the physical qualities of knowledge as described by the text will indicate how strongly this aspect of knowledge is embedded in the text. I will examine this term more closely in the following discussion, followed by other clusters that have been generated from this text.
Knowledge as an asset
The image of knowledge as an asset is a prevalent one in KM literature. The distinguishing feature of this image is how tangible knowledge becomes in the course of the text (Hellstrom & Raman, 2001). The assumption that knowledge can be managed like a physical resource is one that Wiig makes throughout the article. As mentioned earlier, Wiig employed over 18 different verbs and most of them indicated that knowledge is something physical. For example, in order for knowledge to be built, deployed,
transferred, acquired, packaged and distributed, it implies that ‘knowledge’ is tangible. Hence, like a physical asset, knowledge can be stored, converted and ‘leveraged’ as the organisation chooses.
Knowledge is also said to be renewable and reusable which suggests that ‘knowledge’ has the potential for exponential growth. In addition, it does not consume other resources in the process. In the context of a profit-driven organisation, ‘knowledge’ is a very important resource. Not only is knowledge perceived to be tangible but it is also a valuable resource. Since knowledge is perceived as a resource, a rate of return is expected of it. The author makes this clear when he says:
The overall purpose of KM is to maximise the enterprise’s knowledge-related effectiveness and returns from its knowledge assets and to renew them constantly (p. 8).
In order to obtain ‘returns’ from knowledge it is implied that knowledge can be bought and sold with some form of profit coming from the exchange. This is the same sense we get when we are told that knowledge can ‘create and generate value’ for organisations (p. 6). Given such connections, ‘value’ refers to positive material outcomes. We are also told that companies must derive the ‘best business value’ and maximise returns from their knowledge assets (p. 8). These are direct connections between the concept of knowledge as an asset and positive material outcomes. In terms of the cluster forming around ‘knowledge as an asset’, the word ‘value’ and its connotations of profit for the organisation have a close and direct link.
The word ‘value’ is not limited to profit. It has additional associations such as competitiveness and ‘value for money’ for a consumer. For example, in his explanation of a ‘knowledge society’, Wiig says that:
The ‘knowledge society’ is based on adding competitive value to products and services by application of direct or embedded human expertise – knowledge. This is a considerable change from providing value by relying on natural resources or operational efficiency as was the case in previous eras (p. 9).
‘Value’ in the first instance is not just the profit that can come to the
organisation but a form of advantage against other competitors. The second application of the word ‘value’ implies the worth of a product or service to a potential consumer. In this quote, Wiig is saying that knowledge is a higher form of resource because it adds ‘competitive value’ which was not the case with more traditional forms of resources. The point here is that the word ‘value’, which in itself has very positive meanings, is connected to
traditionally not been associated with profit or organisational competitiveness.
In keeping with the metaphor of knowledge as an asset, knowledge is also said to possess quality. The ‘quality’ of knowledge is said to be the ‘content available to create and deliver acceptable products and services, often tailored to individual customers’ specific needs’ (p. 13). With this attribute of ‘quality’, knowledge can be continually made ‘new and better’ (p. 8). The opposite would also be applicable but the author makes no reference to old or worthless knowledge. In fact, there is no hint that the author thinks knowledge is anything but positive.
In addition to this aspect of quality is the concept of ‘intellectual capital’. ‘Intellectual capital’ is a metaphor as well (Andriessen, 2006). For example, by combining ‘intellectual’ with ‘capital’, it could either mean that ‘capital’ has been personified or that ‘capital’ has been derived from the intellect. Either way it is a notion which is particularly appealing to business organisations because capital is usually associated with returns on investment which implies that ‘value’ is attached to it. Capital can also be calculated and measured which again reinforces the notion of physicality. In sum, the appeal of ‘intellectual capital’ combined with the superiority of knowledge as a resource increases the intensity of the ‘knowledge as an asset’ cluster.
The next cluster that surfaced was derived from what the text considers to be the process of managing knowledge. Wiig states that in order to be
‘competitive and successful’ knowledge must be managed in a ‘systematic, explicit and deliberate’ way (p. 6). He goes on to outline how knowledge can be managed within the organisation using flowcharts and timelines. This implies that knowledge is managed through structure which is imposed by
the organisation. Another aspect of structure is how other things can be contained within it. This is the connotation that can be derived from what Wiig refers to as ‘knowledge-centred strategies’ (p. 8) because the strategies he recommends contain the knowledge accumulated from KM activities. As such, I have named the next cluster ‘knowledge as structure’.
Knowledge as structure
In the text, managing knowledge is visually represented in the article by two flowcharts (pp. 7 and 11). The first flowchart represents a system of
managing knowledge within which sub-systems are present. Knowledge is defined in technical terms such as ‘inventories’ and ‘ontologies’ which basically refer to databases. From these systems, knowledge can be acquired, maintained and automated. These words emphasise the physical aspects of knowledge in the same way as those in the first cluster. In this respect, ‘knowledge as structure’ supports the cluster of ‘knowledge as an asset’. It also reinforces the reification of knowledge by the text.
The second flowchart provided by the author on ‘adopting KM methods, practices and technologies’ (p. 11) is somewhat vague in purpose. Dates and phases are indicated but what ‘productized solutions with considerable client responsiveness’ as a phrase means is not explained in the chart or the main text. Nevertheless, from this flowchart we can see that ‘knowledge’ is still managed within a system which an organisation can impose and roll-out in timed phases.
Within the first flowchart is a category called ‘knowledge infrastructure’ of which the ‘corporate university’ is the end point. The word ‘infrastructure’ suggests physical structure but when combined with ‘knowledge’ it implies that the infrastructure is built on ‘knowledge’. In this sense, knowledge is a ‘container’ as well as the ‘contained’.
Another example of knowledge as a container is ‘knowledge strategy’ (p. 8) as it ‘contains’ organisations’ ‘strengths, nature of their business, inclinations and expertise of their personnel, and particularly their fundamental beliefs of what is required to succeed’ (p. 9). In other words, ‘strategy’ is the sum of organisational knowledge. Wiig lists five ‘knowledge-centred strategies’. Within each strategy he packs so many items that it appears he is trying to cram as much knowledge as possible into one idea. For example, the ‘personal knowledge asset responsibility strategy’ is a one-sentence paragraph that reads,
A focus on personal knowledge responsibility for knowledge-related investments, innovations and the competitive state, renewal,
effective use, and availability to others of the knowledge assets within each employee’s area of accountability to being able to apply the most competitive knowledge to the enterprise’s work (p. 8).
The suggestion that ‘strategy’ is a structure within which knowledge can be stored is clear. This implies that the managing of knowledge requires the accumulation and storage of ‘knowledge’ in organisational strategies. These strategies become the competitive advantage organisations possess. In the context of this article, competitive advantage is an important aspect of taking on KM. Hence, ‘strategy’ has significance in this text.
In relation to managing knowledge, Wiig believes that only certain types of organisations can manage knowledge. He does not name any organisation but often refers to ‘advanced organisations’ (pp. 8 and 9), ‘leading
enterprises’ (p. 8), ‘highly successful enterprises’ (p. 9), ‘outstanding
organisations’ (p. 9) and, finally, ‘advanced companies in the Americas and Europe’ (p. 10). These references indicate that only the best organisations can or know how to manage knowledge. It also implies that knowledge is no ordinary resource that can be taken on lightly. In contrast to this high regard for those who can manage knowledge, the flowcharts and timelines seem
almost perfunctory. Perhaps Wiig was less interested in the ‘how’ of
managing knowledge than in the ‘who’ or ‘why’. Nonetheless, it tells us that Wiig is positive about the concept of knowledge because he maintains that managing knowledge increases the superiority of some organisations over others.
Thus, the clusters of ‘knowledge as an asset’ and ‘knowledge as structure’ support the observation from critical management studies that the concept of knowledge has been reified. Some of the important concepts within these clusters include the notions of ‘value’, ‘quality’, ‘capital’ and ‘strategy’. These are topics that are common in management studies. In the next two clusters I will examine, the topics of change and competition feature strongly. When related to knowledge, these two concepts convey the sense that knowledge has an inherent power or energy that affects outcomes.
For example, towards the end of the article, Wiig refers to knowledge as a ‘driving force’ and the ‘fuel to improve quality of life’ (p. 13). These
descriptions indicate that ‘knowledge’ contains power that generates positive outcomes. The other forces that he mentions in the text are the ‘emerging competitive environment’ (p. 6), ‘the driving forces behind the evolution from early agrarian societies’ (p. 9), the various ‘revolutions’ in the economy (p. 9) and the ‘market-driven’ demands from customers and international competition (p. 9). These are ‘forces’ that operate on a very broad scale but Wiig relates them to knowledge. Hence, they share meanings associated with knowledge possessing energy.
Knowledge as energy
Energy as a metaphor is somewhat nebulous in that it has a physical referent but one which we cannot see or touch. Similarly, Wiig makes use of the
image of boiling water to explain how knowledge management appeared on the world stage:
These notions [of KM] appeared in many places throughout the world – almost simultaneously in the way bubbles appear in a kettle of superheated water! (p. 6).
In other words, there is an underlying current of energy that caused
knowledge and its management to become important around the world. This reference to energy suggests that knowledge is like an undercurrent which is observable only in the effects it creates.
Another concept closely associated with knowledge and energy is change. For instance, the text tells us:
Dependence on human intellectual functions in working life will change over future decades. This change is driven by the continued worldwide competitive forces with their increased reliance on personal and embedded knowledge (p. 13).
The connection between change and knowledge is direct; dependence on knowledge will cause change which in turn is driven by ‘competitive forces’. The combination of the concept of change with ‘competitive forces’ linked together by a strong verb such as ‘driven’ creates the overall impression of a powerful yet invisible force at work. This ‘force’ according to the text is knowledge. Such connections create intensity in the concept of knowledge as the connections are immediate and specific.
‘Change’ is also perceived as a form of energy and not just an outcome as it causes the various revolutions of economic activities as listed on page 9 of the text. Change is implied to be the primary reason the industrial revolution occurred, followed by a product revolution, the information revolution and, finally, the knowledge revolution. It is within this changing and competitive environment that business organisations and societies need to position
themselves for success. Otherwise, the text implies that organisations and societies risk being left behind or severely disadvantaged in comparison to those who have taken on board knowledge management.
There is also a suggestion that competition and change are inevitable and relentless. Within such an environment, only the fittest organisations are said to survive. Since only ‘leading’ or ‘advanced’ organisations are capable of managing knowledge and reaping the rewards of positive material
outcomes, there is a sense of danger to those who do not seriously consider managing knowledge.
Hence, competition and change are concepts that contribute to the cluster of knowledge as energy. At the same time, they also imply that knowledge evolves. With each revolution that competition and change bring about, it is implied that the ‘new’ revolution is an upgrade from the previous one. Hence, knowledge evolves as society moves from one industrial revolution to the next. Wiig highlights this evolutionary power of knowledge by describing the ways in which companies and societies can ‘leverage’ knowledge for success. Phrases such as ‘continually improved and applied knowledge’ (p. 13), and ‘new resource-independent areas of growth’ (p. 13), suggest that knowledge is like evolution in the sense that evolution leads to development. On the other hand, evolution could also imply that the process of natural selection, as theorised by Darwin, is in effect. Both aspects of evolution are implied in the text. The theory of evolution in the literal sense is usually applied to living organisms. In this text, the association in meaning is created when ‘knowledge’ is personified.
Knowledge as evolution
Personification is apparent when knowledge is said to learn, create, innovate, memorise and improve (p. 8). These words suggest that ‘knowledge’ has the
ability to create more knowledge. Since creativity and innovation are seen as drivers of profit (pp. 8, 9), the fact that ‘knowledge’ possesses these attributes is a sign of its potential. From these qualities of creativity and innovation, knowledge produces outcomes that are ‘new’ and ‘better’ (p. 8). This positive perspective of knowledge highlights a belief that progress is always a good thing and that society will benefit from the development of knowledge. This reinforces the notion of knowledge as evolution.
According to Rutgers (1999), the assumption that progress is always positive is a historically embedded one. He gives the example of how ‘positivism is premised on the idea that rational, scientific thought can solve all human problems and that there is a steady progress of science and society’ (p. 23). In other words, development is always ‘new and better’ and we see this same attitude in the development of the concept of knowledge by Wiig.