2010 3rd International Conference on Information Management, Innovation Management and Industrial Engineering

Knowledge process reengineering and implementation of enterprise knowledge

management

SUO Baimin Han Zijun and GAO Xiaohua

Management School, Dalian University of Technology Management School, Shenyang Normal University
Dalian, P.R. China Shenyang, P.R. China
e-mail: suobaimin@163.com e-mail: 504691355@qq.com
e-mail:gaoxiaohua5521@163.com

Abstract—Although lots of enterprises pay more attention to embodiment for the relative knowledge, and management will and
knowledge, many influential factors restrict the effective evaluation of value.
implementation of knowledge management. The more Change of idea. In the era of knowledge economy, knowledge
important part of these influential factors is from business is becoming the most important production factor and the main
process, namely, how to reconfirm core process of enterprise headspring of economy growth. The first step of knowledgelization
from the angle of the view of point on knowledge resource. of business process is to form the idea on knowledge resource and
Business process reengineering is an inner reformation which knowledge asset in business process and confirm the important
status, action and influence of this idea. Business process gets in
enterprise adapts the requirement of knowledge economy era.
touch with improvement of enterprise capability and extent of
Enterprise can establish the foundation for implementing
customer satisfaction.
knowledge management effectively by business process It is a set of activities which take on the import of all kinds of
reengineering. The precondition of business process raw and processed material and customer needs as start point and
reengineering is knowledgelization and its goal is to define takes on creating the valuable products and services for customers
enterprise knowledge process in business process. Knowledge as the end. Knowledgelization of business process means to make
process doesn’t exist separately in business and brings into enterprise staffs adapt the requirement of knowledge economy era
play the role by integration with business process under the in the operation of business process, form the idea which
knowledge environment factors. knowledge is the most important resource gradually and know that
none but knowledge resource combines with other resource, it can
Keywords-business process reengineering; knowledge bring into play the role better. In the same time, we should know
process reengineering; knowledgelization; knowledge that knowledge can be devoted into the operation of enterprise
environment factors business process and create value for production and management
activities of enterprise. So, realization of change of idea is the
important precondition and pledge of knowledgelization of business
I. INTRODUCTION process.
At present, although many traditional enterprises pay more Embodiment for the relative knowledge. Knowledgelization
attention to knowledge, a good many influential factors restrict the means that the relative knowledge should be embodied in every
effective implementation of knowledge management. The more phase of enterprise business process. The basic factors of business
important part of these influential factors is from business process, process mainly include the following aspects: activities, connection
namely, how to reconfirm core process of enterprise from the angle between activities, undertakers and achievement fashion of
of the view of point on knowledge resource. The core process is the activities [1].
process which combines knowledge process and key business All kinds of activities are the movement of basic units from
process tightly by business process reengineering on the basis of enterprise operation. Activities include complicated activities and
traditional business process. The key activity to construction of simple activities. Complicated activities can include other low-level
enterprise core process is business process reengineering. The activities, but simple activities do not include them. Activities often
precondition of reengineering is the knowledgelization of business import some practicality, information and knowledge in order to
process. Knowledge process does not separate from enterprise obtain the output of practicality, information and knowledge.
business process, but is integrated with business process by Activities of business process mainly include accommodate
enterprise knowledge activities system and bring into play the role logistics, production operation, delivery logistics, management and
with business process during the course of implementing distribution, and service of distribution, etc. [2]. All these activities
knowledge management. are constituted as some consecution which is determined by the
inherence relation of activities from division of labor. This is
II. KNOWLEDGELIZATION TRANSFORM OF BUSINESS embodied as a relation of feedback, namely, output from the latter
PROCESS activity becomes the input of the front activity in a succession of
activities in business process, which reflects the situation that result
A. Definition to knowledgelization of business process from the latter activity ensures the next action of the front activity[3].
Undertakers of activities mean the idiographic staff or
Because the goal of business process engineering is to build a organization. With the improvement of informationalization level,
new knowledge process, precondition of reengineering is how to some information device and automechanism can become the
realize knowledgelization of business process. So, we need undertaker of activity. The undertaker of business process means
understand it form the following three aspects: change of idea, the operation and the relative function department and streamline of

978-0-7695-4279-9/10 $26.00 © 2010 IEEE 23

DOI 10.1109/ICIII.2010.484
high automatization level or informationalization system, such as III. GOAL OF BUSINESS PROCESS REENGINEERING:
ERP and MRPII, etc. If knowledge is embodied by staff and KNOWLEDGE PROCESS
organization, it belongs to tacit knowledge from experience and
skill, and that knowledge embodied by information device is often For enterprise, process is not only the business process, but also
including knowledge process. But in fact, knowledge process is not
the data, information or explicit knowledge.
expressed in enterprise directly and definitely and knowledge
Achievement fashion of activities can either be limited by
resource and knowledge asset can not also be known by people and
technical condition, such as calculating activities which used abacus
or calculator past and micro computer now, or be influenced by job bring into play the role effectively. So, the ignored knowledge
custom and enterprise culture. From the total trend, knowledge process should be embodied in the operation of business process by
which is needed for accomplishing activities gets more and more, business process reengineering, embedded in the business process
more specializing and deeper. and combined with it [6]. All these are the prelude of knowledge
process reengineering.
Management will and evaluation of value. Knowledgelization
of business process is also a process of management at one time. It A. Background of business process reengineering
indicates the management will and evaluation of value for
knowledge in business process [4]. Forming the idea on knowledge The existing business process formed in the practice of
resource and knowledge asset in business process and embodying industrialization era and accorded with the practical need of past
the relative knowledge in the activities of business process are only business in a certain extent. However, with the coming of
a precondition and base. Its goal is to improve the attention to knowledge economy era, environment which enterprise exists has
knowledge in process from organization and staff and enhance changed apparently and characteristics of knowledgelization are
knowledge content and level of knowledge-intensive of business more and more distinctly. And it will lead the goal of enterprise
process. The deep-level meanings of knowledgelization of business strategy to change correspondingly [7]. Although enterprise has
process is the process which is taken action for seeking the management will for knowledge resource and knowledge asset,
approach to utilize effectively these knowledge resource and process can not satisfy the requirement. It is necessary to reengineer
knowledge asset, but the final result. Its essential is to analyze their the business process in order to accomplish current assignment. The
states by making an inventory of knowledge resource and goal of business process reengineering is to construct knowledge
knowledge asset in business process[5], evaluate which knowledge process on the basis of current business process from utilizing
embodied in business process more valuable and give clearly knowledge effectively and realize knowledge process embedding
expression to management will and evaluation of value for correctly in and combining with business process.
knowledge from business process accordingly. B. Composing of knowledge process
B. Implementation of enterprise knowledgelization of Knowledge process means the general designation for
business process knowledge process and path which connect each standing point
according to enterprise knowledge value chain [8]. Knowledge
Implementation of enterprise knowledgelization of business process constitutes by knowledge value chain, knowledge flow and
process is built on the basis of the understanding and knowing to its knowledge standing point. Knowledge value chain is the core part
definition. Based on it, enterprise can realize knowledgelization of of enterprise knowledge process and embodies knowledge life
business process from technique characteristics, change of circle. Knowledge flow is the change and direction of knowledge in
enterprise idea and value and reform of guidance fashion and process and indicates the dynamic nature of knowledge. Knowledge
manner. standing point is the key unit which knowledge process pass
Think about knowledgelization according to technique through in business process and means the area of knowledge-
characteristics. Because functions and constitutions of products and intensive or the cross part of knowledge value chain.
service are different, technology condition and technique devices Establishment of knowledge process is the key step of
opposite to production process have separately characteristics. knowledge management initiative. Its core part is knowledge value
These technology characteristics can realize knowledgelization of chain. And it includes seven phases: knowledge generation,
business process by using explicit knowledge. knowledge evaluation, knowledge abstraction, knowledge
Advance knowledgelization by dint of enterprise idea and value. preservation, knowledge distribution, knowledge application and
Enterprise idea and value means enterprise embraces action rules knowledge improvement. Knowledge innovation is the main
and valuation to society and economy in management activities. It activity in the phase of knowledge generation. Headstream of
can make work link and approach different distinctly, neither of innovation is not only from inside enterprise, but also from abroad
effect. All these can not describe by explicit knowledge, because outside which contains the whole knowledge origins. Not only
some are contained in the tacit knowledge of organization. So, it is explicit knowledge is preserved in documents on the basis of
helpful to make business process, its work link and approach evaluating value, but also core speciality from organization and
changing distinctly by introducing idea on knowledge resource and individual is managed during the course of guiding knowledge from
knowledge asset to enterprise idea and value and promote business tacit to explicit in following phases, such as knowledge evaluation,
process changing to the direction of knowledgelization. knowledge abstraction, knowledge preservation. In addition,
Influence the process of knowledgelization by reform of enterprise also pays attention to cultivate knowledge team system to
guidance fashion and manner. Difference of leaders of guidance transform thought to word. Because knowledge which is only
fashion and manner will influence the business process seriously diffused a lot of times can give birth to time, enterprise must build
and variance of guidance fashion also directly influence the process the opening knowledge team and learning system on line in
of embodying, sharing and transferring knowledge in business knowledge distribution phase. Enterprise needs market its
process. From this meaning, it is very important for knowledge by right action plan and share knowledge to
knowledgelization to exert the predominance of staff, especially the organization and individual which have knowledge need in order to
force from guidance fashion and manner of leaders. make knowledge giving birth to value in deed in knowledge
application phase. Enterprise mainly should establish wisdom base
and knowledge advisor group which can renew experience and

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 Knowledge
improvement

Structure, system factor

Staff factor

Fluxion
Enterprise knowledge

Culture factor

Competency
resource

Knowledge Technology factor

acquisition Knowledge
application

preservation

distribution
abstraction
generation

evaluation
Knowledge

Knowledge

Knowledge

Knowledge

Knowledge

Value
Fig. 1 The model of enterprise value chain based on the dynamic knowledge

knowledge continuously in knowledge improvement phase. And reengineering. And it provides the right gist for implementing
this is the important system which keeps knowledge fresh for ever. effectively knowledge management. However, the new enterprise
knowledge process is not isolated form enterprise business process
C. Knowledge process reengineering and can recruit effectively the past business process in order to
Knowledge process exists in enterprise business process adapt the need of time development. Therefore, we try to build the
objectively, but it is not to be all along. It needs to be established on inherent and logic relation between enterprise knowledge process
the basis of business process reengineering. The course of and enterprise business process and form the theoretic framework
reengineering mainly includes the following aspects: on their effect integration under knowledge environment factors.
Ensure the basic direction of business process reengineering. Under the framework, the relation between enterprise
At first, we should know the strategic goal of business process knowledge process and enterprise business process is expressed by
reengineering. Business process reengineering is just to apply five approaches: Knowledge Absorption (KA), Knowledge
effectively knowledge involved in process, understand that which Extraction (KE), Knowledge Representation (KR), Knowledge
processes can add knowledge value and construct enterprise Implementation (KI), and Knowledge Deployment (KD) [12].
knowledge process as the goal and direction of business process Technology and organization factors of knowledge environment
reengineering at the beginning of this precondition. support application of the whole system as the base [13]. Business
Choose and analyzing key part of business process. We should layer not only contains the whole process of enterprise, but also lays
at first which part need to reengineer, namely find the key part of over the systems came down from manufacture company, such as
business process during the course of business process MES, ERP and SCM. Naturally, knowledge absorption is
reengineering. The key part is the area which is the highest level of accomplished in the course of business process execution, which
knowledge-intensive in business process [9], namely in favor of predicates that data, information and knowledge process are chosen
applying knowledge transferring and creating value. or refined and then absorbed by documental procedure and human
Reengineer enterprise knowledge value chain according to resource. Figure 2 indicates a whole integrative and conceptual
enterprise value chain. Enterprise value chain includes assistant framework which is extended according to the model which is
activities and essential activities. We can mapped the relation of the designed by Yeon et al. [14].
two activities to the design of enterprise value chain which Here, we pay attention to analysis on layer of knowledge
embodies thought of knowledge process and bases on dynamic representation, especially knowledge flow [15]. Organizational
knowledge by business process reengineering. Enterprise value knowledge exists in solid manner in different forms, such as
chain based on dynamic knowledge also includes assistant activities document, database, brain and enterprise memory, etc. Explicit
and essential activities. On the basis of this, we can design the knowledge mainly is collected from document and database, while
model of enterprise value chain based on dynamic knowledge by tacit knowledge needs to be extracted from human resource.
combining a series of key links (shown in Fig.1), such as Explicit knowledge, tacit knowledge, document and human
knowledge generation, knowledge evaluation, knowledge resource are creating the new knowledge according to model of
abstraction, knowledge preservation, knowledge distribution, SECI [16]. Model of SECI which is put forward by Nonaka &
knowledge application and knowledge improvement in activities of Takeuchi first as a strategy based on knowledge innovation is a
creating knowledge value. In this model, the assistant activities successful example for supporting individual creative activities in
which include structure and system factor, culture factor, staff industrial and collaborative organization [17]. On the one hand,
factor and technology factor work as the environment factors of explicit knowledge can be transformed into tacit knowledge by
knowledge [10] to ensure the essential activities, such as knowledge inner process, such as learning, education and training, etc. On the
acquirement [11], generation, evaluation, abstraction, preservation, other hand, tacit knowledge also can be transformed into explicit
distribution, application and improvement, drive the knowledge knowledge by some activities, such as document, publication and
resource from inner and outer of enterprise by dint of technology imitating [18].
innovation and create value for enterprise. In the framework, explicit knowledge and tacit knowledge can
be extracted in model of knowledge process by technology and
IV. INTEGRATION OF KNOWLEDGE PROCESS AND organization factors of knowledge environment. The model of
BUSINESS PROCESS UNDER KNOWLEDGE ENVIRONMENT knowledge flow consists of knowledge flow chart and knowledge
FACTORS standard [19]. Knowledge flow chart ensures us to express clearly
knowledge flow by controller of knowledge flow.
Enterprise knowledge process is emerged and confirmed in the Activities of knowledge life cycle is combined with knowledge
activities of enterprise management by business process process and linked to other knowledge process and business process.

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 Knowledge management system Deployment layer
KD KD
3-phase implementing plan
Conceptual: UML Logic: EBNF Physical: XML Implementation layer

KI KI
Analysis of knowledge flow
KR KR
Explicit knowledge Inner Tacit knowledge Representation layer
KE KE
Document and database Outer Human resource
KA KA
Business process Business layer

Technology factor of knowledge Organization factor of knowledge Supporting layer

environment environment
Fig.2 The conceptual framework on integration of knowledge process and business process
KA(knowledge absorption) ˗KE(knowledge extraction)˗KR(knowledge representation)˗KI(knowledge implementation)˗KD(knowledge
deployment)
If the special activity of knowledge management in knowledge [8] Wang Delu. Implementation of knowledge management by
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Technology Literature Press,2006,pp84.
knowledge management.
[14] Yeon S-I,Suh E-H,Kim S-Y. A study on knowledge map
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