On constructing a knowledge management pyramid model

Abstract

In this knowledge-based economy, knowledge has become an important asset to an organization and, consequently, knowledge management has emerged, as issue managers have to deal with Peter F. Drucker (1993) said that knowledge would be the only competitive resource for companies in the future. This is an era in which knowledge plays a dominant role in our daily business lives. Intellectual capital has gradually taken the place of traditional tangible capital in many business organizations. However, practitioners are often puzzled about where they stand, how well they are doing, and what they should do next. This paper aims to construct a knowledge management maturity model as a means to help answer these and related questions. There are three components in the proposed model: maturity levels, knowledge management processes, and knowledge management capabilities or enabling infrastructures. The maturity levels are based on the capability maturity model (CMM) of SEI. This model divides the knowledge management process into four main sub-processes: knowledge creation, knowledge storage, knowledge sharing, and knowledge application, emphasizing the need for continuous process improvement. Furthermore, knowledge management enablers are integrated into KMMM to describe how it supports the practices at each maturity level. The applicability of this model is evaluated through case studies, which also serve to illustrate how knowledge management practices among organizations are compared, and what maturity paths organizations can follow. Three banks were taken for cases study through in depth interview with their senior managements. By analyzing data gathered through the process described above, the conclusion of this study is induced.