=Paper= {{Paper |id=Vol-34/paper-24 |storemode=property |title=Knowledge Re-Use as Engineering Re-Use: Extracting Values from Knowledge Management |pdfUrl=https://ceur-ws.org/Vol-34/yeung_holden.pdf |volume=Vol-34 |dblpUrl=https://dblp.org/rec/conf/pakm/YeungH00 }} ==Knowledge Re-Use as Engineering Re-Use: Extracting Values from Knowledge Management== https://ceur-ws.org/Vol-34/yeung_holden.pdf
                                Knowledge Re-Use As Engineering Re-Use:
                         Extracting Values From Knowledge Management
                                               Christopher Yeung and Tony Holden
                                         Department of Engineering, Cambridge University
                                         28 Trumpington Street, Cambridge CB2 1PZ, U.K.
                                           ktcy2@eng.cam.ac.uk, holden@eng.cam.ac.uk

                                                                                       products, services and business processes attribute an
                                 Abstract                                              increasingly larger portion of total costs, effective sharing
                                                                                       of knowledge can give significant economic and lead-time
     This paper presents a knowledge-sharing                                           advantages that potentially provide the key differentiating
     framework for achieving effective knowledge re-                                   factor in any engineering re-use initiative. From a
     use within industrial organisations. This                                         practical KM perspective, reusable assets can be
     knowledge re-use paradigm goes beyond                                             knowledge of the know-how, know-why and know-what
     traditional engineering re-use which focuses                                      [Bla95] that constitutes an organisational memory
     solely on re-applying tangible resources such as                                  [Wal91] “in the business about customers, products,
     hardware components, software objects or                                          processes and competitors” [KPM98]. In this aspect,
     information repositories in new situations. The                                   knowledge is as much about whom you know as it is about
     Knowledge-Sharing         Management       (KSM)                                  what you know [Bad1991; Lot1998].
     framework describes how managers can align
     knowledge management strategy with corporate                                      However, firms have hitherto often not considered the re-
     core competence strategy by articulating the                                      use of knowledge as part of the overall re-use strategy.
     values and risks of knowledge re-use. A general                                   The knowledge factor was either ignored as it would
     knowledge-sharing process is abstracted into a                                    somehow be ‘picked-up’ by the person who attempted to
     five-stage process model (adoption, adaptation,                                   re-use a component, or because knowledge could only be
     absorption, integration, dissemination), supported                                re-used unconsciously through some hidden cognitive
     by four pillar components (organisational                                         processes and ad-hoc organisational routines that defy
     infrastructure, actor, technological enabler,                                     management. This study, conducted within a broader
     sharing channel), which together guide the design                                 framework of engineering re-use project involving
     of the work environment and processes by                                          Cambridge University Engineering Department and 8
     integrating the concept of effective knowledge re-                                U.K. companies in the manufacturing engineering,
     use.                                                                              chemical, aerospace, automobile and defence industries, is
                                                                                       the initial work in developing the Knowledge-Sharing
                                                                                       Management (KSM) framework to articulate the salient
1 Introduction                                                                         enablers and barriers to knowledge transfer. This initial
Engineering re-use is the business strategy of using the                               work leads to an engineering re-use approach which
firm’s existing assets in new applications to create new                               considers the presently missing factor of tacit knowledge.
assets. An asset can be a tangible or intangible resource,
possessed or otherwise controlled by the company used in                               1.1 Beyond Re-Using Tangible Outputs
achieving corporate goals. In other words, re-use in
                                                                                       Traditionally, assets can be re-used in one of two ways,
general aims to exploit the value of economy of scale of
                                                                                       either through the re-use of hardware, such as physical
assets by leveraging resources spent in one application in
                                                                                       parts or components, or through the re-use of software,
multiple other situations to reduce time to market,
                                                                                       such as libraries of functions or objects [Mol99; Rei97;
development resources, costs and risks.
                                                                                       Sut00]. Such a re-use paradigm is invariably based on the
                                                                                       logic that development efforts can be minimised by re-
Given that the value of knowledge now embodied in
                                                                                       using the tangible outputs produced from previous
                                                                                       undertakings. Tangible outputs are often those where the
The copyright of this paper belongs to the paper’s authors. Permission to copy         knowledge of technology, design, experience of use and
without fee all or part of this material is granted provided that the copies are not   lessons learnt are embedded. This ‘black-box’ concept
made or distributed for direct commercial advantage.                                   does not necessarily require thorough understanding of the
Proc. of the Third Int. Conf. on Practical Aspects of                                  detail of designs, implementation or the inner workings of
Knowledge Management (PAKM2000)                                                        the re-used object. One only needs to understand its
Basel, Switzerland, 30-31 Oct. 2000, (U. Reimer, ed.)                                  external interface as an individual component in order to
http://sunsite.informatik.rwth-aachen.de/Publications/CEUR-WS/Vol-34/                  re-use it. This typically allows one to build upon others’
                                                                                       tangible outputs.



C. Yeung, T. Holden                                                                                                                            24-1
Recent attempts [Gru95; Pir95; Svi96] in the field of re-       ‘black-box’ approach to re-use is thus insufficient in
use include ‘knowledge re-use’ from a knowledge                 allowing the knowledge user to understand and discern
engineering approach. In this approach, it is the (formal)      contexts of application. Accustomed to a ‘black-box’
representations of knowledge that are really get re-used.       approach, practitioners are often unaware of the part tacit
Such imperative symbolic or connectionist representations       knowledge is playing in re-use. They either ignore it or re-
of knowledge are in fact static snapshots of elicited           use it sub-consciously, preferring instead to grapple with
domain knowledge extracted from subject experts.                tangibles. However, as knowledge increasingly commands
Another approach to ‘knowledge re-use’ are the attempts         a larger portion of the total cost and value of the whole
to re-interpret codified knowledge by data-mining               product package, it is important to go beyond merely re-
repositories of information, searching attributes of            using the tangible outputs. To do so, knowledge re-use
scenarios to identify correlations of cases and repetitive      requires situated understanding and interpretation of the
patterns [Bor97; Bru99; Kuh97; Lin99]. Knowledge has            lessons learnt, organisational best practices and
to be codified with the use of a priori structured              capabilities. It involves mobilising knowledge embedded
articulation processes. In other words, merely the tangible     in decision-making processes and organisational routines
outputs are still being re-used.                                [Leo98; Nel82]. This implies re-using networks of
                                                                interlinking knowledge as a whole rather than individual
On the other hand, knowledge held by people is dynamic          modules of knowledge. Effective re-use thus needs to
and context dependent. Human cognition, subject to its          encompass a holistic KS methodology as an integral part
limited processing capability, is able to adapt the             of the overall engineering re-use strategy. The following
conceptual model of knowledge to situate the application        table summarises the different re-use approaches from a
context [Men98a]. The adaptation is often aided by tacit        knowledge perspective:
knowledge developed through experience of use,
professional praxis, and repetitive practice. The above

                        Table 1: Different Re-use Approaches From A Knowledge Perspective

                              Re-use Codified Knowledge In Tangible Outputs                       Uncodified Knowledge
                              Hardware                      Software                              Intangible / Process
Reusable Assets               Physical parts, modules, sub- Database, information                 Individual, group,
                              systems, or facilities.       repository, component design,         organisational, and inter-
                                                            or software object.                   organisational knowledge of
                                                                                                  regulatory, functional,
                                                                                                  positional and cultural assets.
Asset Characteristics         ‘Black-box’ approach to re-use – definition of external interface   Lessons learnt, experience,
                              determines reusability, design rationales are abstracted and        skills, best practices and
                              information about implementation details are hidden inside the      capabilities are re-used with
                              ‘black-box’.                                                        historical, rational context
                                                                                                  specific details.
Knowledge Embodiment          Knowledge embedded in re-         Knowledge encapsulated in         Knowledge interwoven with
                              usable components as objects.     objects, frames or codified in    decision-making process or
                                                                repositories.                     organisational routines.
Unit Of Knowledge Re-Used     Individual component level.       Symbolic representations such     Network of interlinking
                                                                as domain rules, models,          knowledge.
                                                                frames or past cases.
Knowledge Re-Used             Explicit and codified             Elicited knowledge codified       Explicit as well as tacit
                              knowledge of know-how.            into symbolic representations.    knowledge, can be either
                                                                                                  codified or uncodified
                                                                                                  knowledge of know-how,
                                                                                                  know-why and know-what.
                                                                                                  Meta-cognitive knowledge
                                                                                                  [Kha98] with ability to
                                                                                                  familiarise new contexts,
                                                                                                  perspectives and roles in
                                                                                                  problem solving, learning and
                                                                                                  discovery.




C. Yeung, T. Holden                                                                                                          24-2
                               Re-use Codified Knowledge In Tangible Outputs                        Uncodified Knowledge
                               Hardware                           Software                          Intangible / Process
Solution Focus                 Technology oriented solution, with IT as the centrepiece.            Human oriented solution,
                               Employ techniques of pattern matching, data mining or case-          involving soft factors to
                               based reasoning to identify re-usable assets.                        facilitate resolution of
                               Employ techniques of artificial intelligence and knowledge           organisational and cognitive
                               engineering to elicit and represent knowledge.                       issues.
                                                                                                    IT as a technological enabler
                                                                                                    to support the knowledge re-
                                                                                                    use process.
Critical Success Factors       Accuracy and speed of identifying relating reusable objects.         Re-use strategy aligns with
                               Dimensions of success factors: traceability, storage, retrieval,     business strategy.
                               and versioning.                                                      Situated re-use approach fits
                                                                                                    with context of organisational
                                                                                                    culture and tasks.
                                                                                                    Re-use method not exceeding
                                                                                                    the cognitive capabilities of
                                                                                                    the work force.

The business implications from the above discussions are that organisations need to adopt two different strategies for re-
use, with one based on the codification of explicit knowledge embedded in tangible objects, and the other on
personalised sharing of tacit knowledge [Han99]:

                                         Table 2: Knowledge Re-use Strategies

                                          Codification Strategy                           Personalisation Strategy
Business Model                            Standardised products.                          Customised products.
Market Positioning                        Mature products, well-understood tasks.         Product innovation.
Re-usable Knowledge                       Knowledge embedded in tangible objects          Knowledge interwoven with decision-
                                          of hardware or software.                        making processes or organisational
                                                                                          routines.
Knowledge Re-Use Strategy                 Articulation relies on explicit codified        Tacit knowledge shared only through
                                          knowledge, people-to-document                   person-to-person mentor.
                                          approach.

                                                                  Non91; Jen95; Bla95; Tee98a]. The knowledge typology
2 Knowledge Re-Use Analysis                                       categorises the characteristics of knowledge content to be
                                                                  shared, which, having considered the constraints of the
Current methods for knowledge re-use analysis can be              characteristics, provides the basis for specifying
viewed from three perspectives. Firstly, units of                 appropriate technological tools and organisational
knowledge re-used from a stakeholder perspective along            environment to support the sharing activities.
the supply chain [Por85], which may involve transferring
of individual, group and organisational knowledge                 Ruggles [Rug97] points out that information and
internal to the firm [Edv98; Nah98; Bak94] or                     communication technology tools are useful in augmenting
appropriation of external knowledge across firm                   KS activities by reducing the temporal, organisational,
boundaries [Bad91]. Knowledge stakeholder perspective             spatial and social distances. But their limitations, that
can be used to map potential sources of knowledge and             tools themselves do not encourage or otherwise
where are the recipients [Hol98] of identified knowledge          discourage KS [Rug97; Fra98], need to be recognised. On
transfers. Secondly, knowledge development lifecycle              the impacts of organisational environment, Sanchez &
[Sie99] is a useful guide to visualise the dynamic                Heene [San97b], Senge et al. [Sen94] and many
development of knowledge over time [Non95; Rei96].                researchers [Gal94; Non94; Bah92; Dav98a; Che96;
The knowledge lifecycle captures the temporal dimension           Chi96; Mag98; Mal98; Man97; Mat96] have agreed on
of dynamic knowledge development within the                       the importance of organisational forms on facilitating or
organisation. Knowledge demand and knowledge supply               otherwise hindering the flow of knowledge from the
analysis can supplement to ensure availability of required        knowledge carrier to the knowledge recipient. Jensen &
knowledge to the recipient at any particular point in the         Meckling [Jen95] in particular proposes the use of agency
knowledge lifecycle, serving as a guide for setting KS            and knowledge transfer costs to analyse the cost
targets and assessing results of knowledge development            effectiveness of knowledge flow in terms of co-location of
over time. Thirdly is the dimension of re-usable                  decision rights and possessed knowledge – that is, the role
knowledge content from a typological perspective [Pol66;          and responsibility structure delegating the decision-




C. Yeung, T. Holden                                                                                                           24-3
making authorities to the knowledge carriers. The design                  the sum of agency cost and knowledge transfer cost in
of organisational form should then take into consideration                supporting KS.

                                                    Dynamic Knowledge Development
                                                    Lifecycle
                                                    Knowledge creation1, growth, re-use,
                                                    decay and attrition2 over time.
                                                    1
                                                     : [Non95]; 2: [Rei96]




           Unit Of Knowledge                                                           Knowledge Asset [Hal97]
           Individual:                                                                 Regulatory assets:
           Human capital1 of creativity, skills,                                       Intellectual property, patent,
           cognitive ability to learn, absorb and                                      trademark, copyright, licence,
           assimilate knowledge.                                                       registered proprietary designs.
           Group:                                                                      Functional assets:
           Communities of practices.                                                   Employee, distributor, supplier


                                                                  Transformed Into
                                                                  Re-usable Assets
           Organisational:                                                             know-how, know-why, know-what.


                                                                     Knowledge
           Social capital2,3 of culture.                                               Innovation capability.
           Structural capital1 of organisational                                       Positional assets:
           form and infrastructure.                                                    Reputation of company, product
           Organisational capital1 of business                                         brands, distribution network,
           process and innovation.                                                     established market entry barrier,
           Inter-organisational interface:                                             customer base, unique access to
           Relationship capital1,3 of customer-                                        suppliers and partnership networks.
           supplier network.                                                           Cultural assets:
           Partnership / alliance network of                                           Not-invented here culture of re-use
           knowledge links4.                                                           versus originality, openness to share
           1
            : [Edv98]; 2: [Nah98]; 3: [Bak94];                                         re-usable assets.
           4
            : [Bad91]

                                          Knowledge Typology
                                          Tacit / Explicit [Pol66; Non91], General / Specific,
                                          [Jen95] Know-How / Know-Why / Know-What
                                          [Bla95], Positive / Negative [Tee98a], Autonomous
                                          / Systematic [Tee98a].

                          Figure 1: Transformation Of Knowledge Into Organisational Assets

It is the intention of organisations to transform knowledge into assets, which can be owned and possessed by firms
having longer lasting values. Hall [Hal97] gives a clear categorisation of knowledge assets in terms of regulatory asset,
functional asset, positional asset and cultural asset. However, though there are many existing theories on exploiting
inter- and intra-firm knowledge [Bad91; Fra94; Mow96; Non94; Non95; Szu96; Tee98a], the linkage between
knowledge as a resource and knowledge as an asset is under-developed. What is not clear is how the transformation
takes place, how knowledge content can become re-usable assets and how to design the environment to facilitates KS
activities so that knowledge can be transformed into assets and knowledge re-use can effectively take place. This is the
gap which the KSM framework intends to fill. Figure 1 captures the relationship between the three knowledge re-use
perspectives and the transformation of knowledge into knowledge assets.

3 Knowledge-Sharing Management Framework
Following on from the above knowledge re-use analysis, we have developed a holistic KSM framework focusing on the
re-use and sharing of knowledge. This new framework is illustrated below.




C. Yeung, T. Holden                                                                                                            24-4
                                                               Adopt




                              te
                            na




                                                                                                        Ad
                           i
                        em




                                                                                                           ap
                       ss




                                                                                                             t
                                       Sharing                                      Organisational
                      Di               Channel                                      Infrastructure

                                                            Reduce Risk
                                                            (Lower Cost)


                                    Knowledge Sharing                            Core Competence
                                    (Knowledge Asset)                          Competitive Advantage

                                                        Enhance Productivity
                                                          & Effectiveness
                                                          (Higher Value)

                                    Technological
                                                                                        Actor
                                      Enabler
                      In
                        te




                                                                                                         rb
                           gr




                                                                                                       so
                              at
                                e




                                                                                                     Ab
                             Figure 2: Knowledge-Sharing Management (KSM) Framework


3.1 Business Context                                                Adoption: The recipient scans the environment, either
                                                                     through informal socialisation or systematic search, to
The business context is provided by the competitive                  identify threats and opportunities in abstracted
advantages achieved through reduction of business risks              knowledge, tacit or explicit, relevant to the tasks at
(costs) and enhancement of productivity and effectiveness            hand. Background knowledge of the recipient is
(values). A mapping of knowledge resources to targeted               helpful in the identification process (to be aware what,
re-usable knowledge assets can be used to support the                where and who to look for). The knowledge identified
development of knowledge-based core competencies of                  could be fuzzy and not situated in the current context.
the firm. The mapping identifies required knowledge                  The recipient also may not have the level of
resources to be mobilised to attain core competence                  understanding in interpreting or applying the
development objectives. The targeted core competencies               knowledge adopted.
can provide the business rationales for KS initiatives in           Adaptation: The logical cognitive processes of the
terms of values of enhanced productivity and mitigated               recipient, subject to a limited processing capability,
risks. The risks mitigated can be upside risk of loss of             forces the adaptation of internalised conceptual models
business opportunities and core competence as well as                of previously adopted knowledge to the current task
downside risk of knowledge attrition. Gaps identified                specific context. Domains of adopted knowledge are
between the knowledge resource-knowledge asset-core                  analysed, either consciously or unconsciously, to
competences mapping and the corporate strategic targets              eliminate uncertainty, fuzziness and internal
can be used to align the KS strategy with the business               contradictions, resulting in ‘implicit conceptual’ or
strategy of the firm. Development of the KS strategy can             ‘explicit interpretative’ changes [Men98a].
then be guided with the use of the above KS process                 Absorption: The recipient can start gaining experience
model and the four pillars, which are also part of the new           and competence in the use of the knowledge adapted
approach, and are described in the next two sections.                as it is situated to the environment and task. An
                                                                     internalisation process starts to broaden the recipient’s
3.2 Knowledge Sharing Process Model                                  tacit knowledge base as causality of effects and
To achieve re-use, knowledge needs to be effectively                 consequences are learned through applying the
shared between the knowledge carrier and the recipient.              knowledge. The recipient’s perceptions of the world
An exposition of an abstracted knowledge-sharing process             are framed by consultation with the adapted
is therefore useful. Previous attempts to describe the               knowledge and interactions with its context. To have
process include Nonaka [Non91], Boisot et al. [Boi97],               an effective internalisation process, the recipient must
Senge et al. [Sen94] and Rayport and Sviokla [Ray95]. By             believe that the adapted knowledge is complementary
extending Lang’s [Lan97] work, we have devised the                   to helping achieve his personal goal, and within the
following five-stage KS process model:                               bounds of the organisational, social and professional
                                                                     norms he is operating in.



C. Yeung, T. Holden                                                                                                      24-5
 Integration:    Discrete pieces of contextualised                     sharing of explicit knowledge can employ synchronous or
  knowledge are combined into a new whole, giving                       asynchronous communications, either geographically co-
  structures and coherence to shape the integration while               located or dispersed. Sharing of tacit knowledge, whether
  reconciling inconsistency due to imperfect information                unilateral or bilateral, needs to employ personalised face-
  from multiple sources of knowledge. Individuals with                  to-face interactions, socialisation and learning-by-doing as
  integrated knowledge either possess the skill of                      in mentoring apprentices.
  systematic problem solving with the ability to
  articulate the reasoning model and scientific theories                Organisational infrastructure refers to the organisational
  behind, or already master the ‘art’ [Zub88] of the                    form and how the designed form fits with facilitating the
  ‘craft’ [Non91] capable of applying knowledge in                      flow of knowledge from the carrier to the recipient. The
  aggregates even in novel circumstances.                               design of organisational forms for KS, rather than basing
 Dissemination: Knowledge can be disseminated to                       on traditional segregations according to product,
  other members of the organisation through                             geographic, or functional boundaries, one must consider
  personalised transfer (tacit-to-tacit) or multidirectional            the co-location of decision rights and possessed
  diffusion (tacit-to-explicit, or explicit-to-explicit). The           knowledge to balance the trade-off between sub-optimal
  scale of knowledge re-use then depends on the                         decisions and resources required for knowledge transfer.
  dissemination mechanisms employed, which are                          The design of the role and responsibility structure
  supported by the four pillars of KS described below.                  delegating the decision-making authorities to the
                                                                        knowledge carriers must fit with the cost-optimal point at
3.3 Four Pillars                                                        the minimum of the agency and transfer cost curves.
The barriers to KS implementation with respect to
                                                                        Actor refers to those human issues that bring about the
knowledge re-use and sharing can be categorised into four
                                                                        ‘deep convictions’ and ‘changes in attitudes and beliefs’
key areas. The four pillars of this framework are designed
                                                                        [Sen94]. Without such changes, sharing and learning
to help managers identify what focal areas need to be
                                                                        cannot take place. Employees need to be convinced that
addressed in order to support the knowledge sharing
                                                                        any KS initiative is essential and beneficial to achieving
process as exemplified in our model.
                                                                        their personal goals yet without diminishing their political
                                                                        power within the professional and social communities they
The sharing channel refers to the media selected and the
                                                                        operate in. The barriers of divisiveness and self-ownership
modes of communication used to share knowledge. The
                                                                        must be demolished to nurture a KS accepting culture
sharing mode can be either ‘unilateral co-operative’
                                                                        where people are capable of absorbing knowledge
[Que97] – knowledge transfer is unidirectional when
                                                                        received, through the fact they are motivated, committed
knowledge resides in one party but not in the other – or
                                                                        and willing to share knowledge. The following table
‘bilateral co-specialised’ [Que97; Lan97] – when all
                                                                        summarises three focal areas to achieving this.
parties involved do not possess the complete knowledge
required, but each shares their individual separate pieces
of knowledge to form a synergistic new whole. Unilateral

                                            Table 3: Soft Issues Relating To Actor

Area Of Focus                    Compensation And Rewards                 Culture                       Training & Cognitive
                                                                                                        Evaluation
Soft Issues                      Motivation 5,6,7,8,9,10,                  Hiring policy 10,14,19,27,   Absorptive capability 1,2,3,4,
                                 Commitment 5,6,8,10,11,12,13,14,          Mindset 5,25,26,             Integrative capability 2,
                                 Loyalty 2,8,14,15,16,                     Willingness 6,10,11,23,27,   Marginal utility 4,22,24 of
                                 Value system and incentives 6,10,11,      Professional/community       knowledge re-use and
                                 14,17,18,27
                                            .                              norms 19,20,21,              sharing,
                                                                           Management attitude and      Divisiveness of knowledge 6,
                                                                           leadership 5,6,10,19,25,28,29,
                                                                                                        14,23
                                                                                                              .
                                                                           Originality versus not-
                                                                           invented-here culture 19,20.
1
 : [Kla97]; : [Que97]; : [San97a]; : [Tee98a]; : [Arg91]; : [Van98]; 7: [Mye96]; 8: [Tam93]; 9: [Dav98a]; 10: [Mar96];
            2           3             4            5            6
11
  : [KPM98]; 12: [Non91]; 13: [Non98]; 14: [Dav96]; 15: [Rei96]; 16: [Pru97]; 17: [Rug98]; 18: [Dow98]; 19: [Han99]; 20: [Dav98b];
21
  : [Hal97]; 22: [Tee98a]; 23: [Pra90]; 24: [Mil98]; 25: [Ear99]; 26: [Bei99]; 27: [Sta89]; 28: [Sen94]; 29: [Edv97];


Technological enabler is the employment of information                  addition to the general performance criteria of accuracy,
and communication technologies to augment KS                            relevancy, speed and reliability:
activities. Technology tools must have the support of the                Discovery: Re-usable knowledge must be accessible to
other three pillars and the following characteristics, in                   systematic search to retrieve relevant bodies of




C. Yeung, T. Holden                                                                                                              24-6
    knowledge by matching seekers’ requests with the best       world, then re-use is logically impossible, since there is no
    sources of knowledge.                                       one model of knowledge known that can fit in all
   Filtering: Explicit knowledge retrieved from                situations. As Menzies [Men98b] eloquently pointed out,
    repositories must be filtered to extract pieces of          any knowledge engineering approach excluding the
    knowledge that situates in the current context to avoid     modelling of the environment within which a knowledge
    overloading the seeker’s cognitive processing               base must operate will fail. The piece that solves the
    capability. Hypertext annotations to attach knowledge       puzzle is the tacit knowledge embedded in the KS
    with compound objects of relating knowledge or              process. Tacit knowledge provides the clue allowing
    versioning to capture historical background are             individuals to adapt the conceptual model in their minds
    example devices to convey the context.                      and also clarifies the contextual correlations between the
   Storage: Explicit knowledge captured must be                original and the current situation. The search for re-usable
    represented by an efficient codification scheme,            knowledge must therefore be found within the KS process
    thereby forming an organisational memory generating         model described in (2.2). To elaborate, values attributed
    longer last value to the organisation. The attrition of     to re-usable knowledge depends on the context as well as
    knowledge can be reduced when knowledge is                  the internalisation of the context imposed by the
    externalised and made available to others when              knowledge ‘re-user’. It is in this sense difficult to attribute
    needed.                                                     quantitative consensual values directly to re-usable
   Collaboration: Tools can intermediate to broker             knowledge. Any risks and rewards analysis of knowledge
    knowledge seekers with carriers by bringing the two         re-use should thus base on indictors that measures the
    together in knowledge activities by reducing the            effect of knowledge re-used to the specific tasks at hand,
    temporal, organisational, social and spatial distances in   that is, an indirect measurement approach with its
    collaboration.                                              valuation subject to fluctuations with changing application
   Organisational Scale: KS tools can provide consistent       contexts and to how well the knowledge is internalised.
    integrated     architecture    of     structures     and
    representations    enabling     uniform     access     to   Thirdly, IT delivers its values by efficiently packaging
    standardised knowledge repositories. Knowledge and          knowledge into objects, making distributions for re-use in
    its outputs can be leveraged throughout the                 scale possible with explicit knowledge. IT enhances the
    organisation to benefit from economy of scale of re-        productivity of knowledge ‘re-user’ through the five key
    use through mass distribution.                              roles of discovery, filtering, storage, collaboration and
                                                                organisational scale. However strong is IT’s ability to
4 How Knowledge Re-Use Adds Value                               raise the process speed and level of standardisation, IT
                                                                needs to be able to support the other three pillars to realise
The re-use of knowledge beyond tangible outputs has             the full benefits of the richness and dynamism of KS
implications for businesses in three ways. Firstly, any         activities.
knowledge re-use strategy must recognise the limitation of
mass volume transfer of tacit knowledge. As tacit
knowledge underpins the understanding, evaluation and
                                                                5 Future Work
application of all knowledge, it is the key component in        Faced with intense competitive pressure from
any knowledge re-use process. But since tacit knowledge         globalisation and shortened product development
is more difficult than tangible assets to imitate and           lifecycle, companies need methods to exploit maximum
replicate, its marginal cost of re-use can be difficult to      values from their existing knowledge assets to provide the
justify. Such difficulty limits the values of economy of        edge in competition. This paper describes our work to
scale achieved from the mass volume re-use of tacit             date in extending the established idea of engineering re-
knowledge. This issue should then draw management               use to include the more intangible concepts of knowledge
attention to geographic and decision authority co-              re-use. It describes a generic Knowledge-Sharing
locations. In practical terms, the former is the                Management framework demonstrating how knowledge
organisational hierarchy designed to align the roles and        management can realise practical business benefits in the
responsibilities of knowledge carriers with decision            area of knowledge re-use. Our next step is to apply and
makers and implementers. The latter are the organisational      further develop this framework by operationalising it with
infrastructures designed to bring together knowledge            our industrial partners in the financial and manufacturing
carriers and recipients.                                        sectors, refining the framework based on the feedbacks
                                                                and empirical data gathered in the process. Our final aim
Secondly, the implication of the context dependent nature       is to provide a knowledge sharing management
of knowledge is that it is futile to decontextualise            methodology that provides practical guidance on the
knowledge. In such a case, knowledge will become                design of organisational environments that facilitates the
information, and a knowledge carrier will lose the ability      implementation of knowledge sharing and re-use
to discern whether knowledge possessed is relevant to the       programs.
tasks at hand. The situated cognition argument concerning
re-use is, if knowledge is context dependent, and context
is ever changing in a constant state of flux in the real-




C. Yeung, T. Holden                                                                                                       24-7
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C. Yeung, T. Holden                                                                                            24-10