Designing Knowledge Organizations A Pathway to Innovation Leadership

A pedagogical approach to the principles and architecture of knowledge management in organizations

This textbook is based on a graduate course taught at Stevens Institute of Technology. It focuses on the design and management of today's complex K organizations. A K organization is any company that generates and applies knowledge. The text takes existing ideas from organizational design and knowledge management to enhance and elevate each through harmonization with concepts from other disciplines. The authors—noted experts in the field—concentrate on both micro- and macro design and their interrelationships at individual, group, work, and organizational levels.

A key feature of the textbook is an incisive discussion of the cultural, practice, and social aspects of knowledge management. The text explores the processes, tools, and infrastructures by which an organization can continuously improve, maintain, and exploit all elements of its knowledge base that are most relevant to achieve its strategic goals. The book seamlessly intertwines the disciplines of organizational design and knowledge management and offers extensive discussions, illustrative examples, student exercises, and visualizations. The following major topics are addressed:

• Knowledge management, intellectual capital, and knowledge systems
• Organizational design, behavior, and architecture
• Organizational strategy, change, and development
• Leadership and innovation
• Organizational culture and learning
• Social networking, communications, and collaboration
• Strategic human resources; e.g., hiring K workers and performance reviews
• Knowledge science, thinking, and creativity
• Philosophy of knowledge and information
• Information, knowledge, social, strategy, and contract continuums
• Information management and intelligent systems; e.g., business intelligence, big data, and cognitive systems

Designing Knowledge Organizations takes an interdisciplinary and original approach to assess and synthesize the disciplines of knowledge management and organizational design, drawing upon conceptual underpinnings and practical experiences in these and related areas.

JOSEPH MORABITO is professor in the School of Business, Stevens Institute of Technology. Professor Morabito's research interests include organizational design, knowledge management, business intelligence, and big data.

IRA SACK has served as professor at the Howe School of Technology Management, Stevens Institute of Technology. He led the design and development of master's and doctoral programs in information management.

ANILKUMAR BHATE consults in the areas of technology and product development, systems engineering, and business management.

Acknowledgments ix

Introduction to Knowledge Systems 1

I.1 Machine Versus Art Metaphor 1

I.2 Design and the Ordering of Ideas 2

I.3 Organization of the Book 3

I.4 How to Read This Book 6

I.5 A Journey Through KS 7

References 7

1 Understanding Knowledge 9

Chapter Preview 9

1.1 The New Pangaea 10

1.2 Characterizing the Knowledge Economy 11

1.3 A Glimpse into the Knowledge Society 12

1.4 Industrial Revolutions 13

1.5 The Social Challenge of the Knowledge Economy 13

1.6 A Macro Perspective of Knowledge Management 14

1.7 Architecture of the Organization 16

1.8 Data, Information, and Knowledge 17

1.9 Distinctions in the Information Continuum 20

1.10 Revisiting the Information Continuum 21

1.11 Knowledge As Such 22

1.12 A Brief Comparative Perspective and the Knowledge Triangle 37

1.13 Conceptions of Knowledge in Practice 38

1.14 The Relationship among Different Perspectives 45

1.15 Intangible Assets and Organizational Response 46

1.16 Valuation, Intangibles, and Intellectual Capital 47

1.17 Closing Remarks 51

1.18 Class Exercises 57

References 58

2 Designing Knowledge Systems 61

Chapter Preview 61

2.1 Perspectives of Knowledge 62

2.2 Knowledge Worlds 65

2.3 Inquiry Systems and the Search for True Knowledge 70

2.4 The Basics of Design in the Knowledge Era 74

2.5 New Directions in Knowledge Design 92

2.6 Closing Remarks 120

2.7 Class Exercises 121

References 123

3 Organizations and Systems 125

Chapter Preview 125

3.1 Organizations 126

3.2 Organizational Design 129

3.3 Systems Theory 141

3.4 HT and Design 146

3.5 Organization Molecules 152

3.6 Symmetrical Structures, Discourse, and Conversation 154

3.7 Closing Remarks 155

3.8 Class Exercises 158

References 159

4 Knowledge Work and Technology 161

Chapter Preview 161

4.1 What Is Knowledge Work? 163

4.2 Classifying Knowledge Workers 169

4.3 Tacit Aspect of Knowledge Work 174

4.4 Characterizing Thick Knowledge Work 176

4.5 Architectural Perspective of Knowledge Work 178

4.6 Process and Thin Work 180

4.7 Practice and Thick Work 181

4.8 Knowledge Work and Supporting Technology 195

4.9 KM Tools and Technologies 209

4.10 Robot Economy 210

4.11 Closing Remarks 213

4.12 Class Exercises 216

References 217

5 Organizations and Knowledge 221

Chapter Preview 221

5.1 Organizations and KM 222

5.2 Knowledge

Revisited 231

5.3 Organizational Knowledge Cycles and Models 239

5.4 Application of Concepts: Case Study on the PC 252

5.5 Knowledge Formation 257

5.6 Knowledge Exchange and Transfer 259

5.7 Knowledge Base 266

5.8 Organizational Design Representations 269

5.9 Architecture of the Learning Organization 281

5.10 Closing Remarks 287

5.11 Class Exercises 290

References 291

6 Social Aspects of Knowledge Management 295

Chapter Preview 295

6.1 Social Networks 298

6.2 Knowledge Network Design in Organizations 305

6.3 Culture in the Knowledge Organization 308

6.4 Industry Example of Culture: Toyota 316

6.5 Trust 320

6.6 Illustrative Example: Interorganizational K Exchange and Creation—Effects of Ties and Culture 323

6.7 Collaboration 324

6.8 Collaborating with Creatives 331

6.9 Office Design 332

6.10 Promoting Conversations and Dialogue 339

6.11 Closing Remarks 344

6.12 Class Exercises 349

References 351

7 Strategy and Leadership for Knowledge Management 355

Chapter Preview 355

7.1 What Is Strategy? 357

7.2 Strategy Continuum and the Knowledge Organization 366

7.3 Setting the Stage: Intangibles and a Knowledge Strategy 369

7.4 Leadership and KM 371

7.5 Getting Started 374

7.6 Strategies for the Knowledge Organization—Tacit Bundle 377

7.7 Culture Change 378

7.8 Chief Knowledge Office 382

7.9 People Value Stream 386

7.10 Closing Remarks 396

7.11 Class Exercises 401

References 403

8 Knowledge Horizons 405

8.1 Knowledge Arises 405

8.2 Digital Economy 409

8.3 End of Course Questions for Discussion and Research 411

References 413

Appendix 415

Index 417

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