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Chapter 2
The Nature of Knowledge
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Chapter Objectives
Understand the difference between knowledge,data, and information
Explain the alternative views of knowledge Understand the different types of knowledge
Recognize the various locations of knowledge
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What is Data?
Data comprises facts, observations, orperceptions
Data represents raw numbers or assertions
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What is Information?
Information is processed data
Information is a subset of data, only including
those data that possess context, relevance andpurpose
Information involves manipulation of raw data
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What is Knowledge?
A justified true belief (Nonaka and Takeuchi)
It is different from data & information
Knowledge is at the highest level in a hierarchywith information at the middle level, and data tobe at the lowest level
It is the richest, deepest & most valuable of thethree
Information with direction
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Data, Information, and Knowledge
InformationData
Zero Low Medium High Very High
Value
Knowledge
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Data, Information, and Knowledge:Example
H T H T TH H H T H
T T T H T
pH = 0.40pT = 0.60RH = +$10RT = -$8
nH = 40nT = 60
InformationData
Zero Low Medium High Very High
Value
Knowledge
EV = -$0.80
CountingpH = nH/(nH+nT)p
T
= nT
/(nH
+nT
) EV=pH RH+ pT RT
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Data, Information, Knowledge and Events
Knowledge
InformationDataInformation
System
Decision
Events
Use ofinformation
Knowledge
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Subjective View of knowledge
Knowledge as State of Mind
Knowledge as Practice
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Objective View of knowledge
Knowledge as Objects
Knowledge as Access to Information
Knowledge as Capability
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Types of Knowledge
Individual, social, causal, conditional, relationaland pragmatic
Embodied, encoded and procedural
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Procedural and DeclarativeKnowledge
Declarative knowledge (substantive knowledge)focuses on beliefs about relationships amongvariables
Procedural knowledge focuses on beliefsrelating sequences of steps or actions to desired(or undesired) outcomes
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Tacit and Explicit Knowledge
Tacit knowledge includes insights, intuitions, andhunches
Explicit knowledge refers to knowledge that hasbeen expressed into words and numbers
We can convert explicit knowledge to tacitknowledge
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General and SpecificKnowledge
General knowledge is possessed by a largenumber of individuals and can be transferredeasily across individuals
Specific knowledge, or idiosyncratic
knowledge, is possessed by a very limited
number of individuals, and is expensive to
transfer
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Technically and ContextuallySpecific Knowledge
Technically specific knowledge is deepknowledge about a specific area
Contextually specific knowledge knowledgerefers to the knowledge of particularcircumstances of time and place in which work isto be performed
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Illustrations of the DifferentTypes of Knowledge
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Knowledge and Expertise
Expertise can be defined as knowledge of higherquality
An expert is one who is able to perform a taskmuch better than others
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Types of Expertise
Associational Expertise
Motor Skills Expertise
Theoretical (Deep) Expertise
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Types of Knowledge
Simple knowledge focuses on one basic area
Complex knowledge draws upon multiple distinct areasof expertise
Support knowledge relates to organizationalinfrastructure and facilitates day-to-day operations
Tactical knowledge pertains to the short-term positioningof the organization relative to its markets, competitors,
and suppliers Strategic knowledge pertains to the long-term positioning
of the organization in terms of its corporate vision andstrategies for achieving that vision
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OrganizationalEntities
People
Knowledge Reservoirs
Groups
Individuals Organizational Units
Inter-organizationalNetworks
Organizations
Artifacts
Practices RepositoriesTechnologies
Reservoirs of Knowledge
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Characteristics of Knowledge
Explicitness
Codifiability
Teachability Knowledge Specificity
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Conclusions
Knowledge is different from data & information
Knowledge in an area can be defined as justified
beliefs about relationships among conceptsrelevant to that particular area
Knowledge can be of different types
Knowledge has several characteristics
Knowledge resides is several different places
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Chapter 2
The Nature of Knowledge