Department  Communication  &  Cultural  Management  

Knowledge  Management  

Paper  

Knowledge  Chaos  
 

Written  by:         Felix  Albus  

          f.albus@zeppelin-­‐university.net  
Term:           Spring  Term  2010  
   2  

Table  of  Contents  

 

1.   Introduction....................................................................................................... 3  
 

2.   Data,  Information,  Knowledge  and  Memes....................................................... 4  

 

3.   Global  information  economy............................................................................. 6  

 

4.   Managing    Knowledge  Workers......................................................................... 8  

 

4.   Knowledge  Management................................................................................... 9  

4.1   Knowledge  Management  in  Businesses .................................................... 10  

 

5.   Conclusion ....................................................................................................... 12  
 

Bibliography............................................................................................................ 13  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   3  

 “We  are  drowning  in  information  but  starved  for  knowledge.”  

John  Naisbitt  (Author)  

 
 
 
1.   Introduction  
 

More   and   more   people   ask   themselves   in   what   kind   of   society   we   are   living   in.  
How  we  can  make  sense  of  the  increasing  complexity  in  our  lives  and  what  is  going  
on   around   us.   What   will   the   future   look   like?   Social   scientists   often   describe   the  
future   of   our   society   as   the   information   or   knowledge   society.   Employee’s   turn  
into   knowledge   workers   and   the   management   of   knowledge   itself   emerges   as   a  
new   and   vastly   important   organizational   practice   in   both   the   private   and   the  
public  sector.  Due  to  the  forces  of  globalization  we  face  a  worldwide  competition  
in  almost  every  sphere  of  our  lives.  Where  in  the  last  century  globalization  mainly  
was   seen   as   the   fight   for   location   advantages   between   states,   today   the   global  
competition   moves   far   beyond   that.   An   excellent   education,   quality   of   work   and  
life  are  just  a  few  key  factors,  which  everybody  rivals  for.  In  the  beginning  of  the  
80s  there  was  a  discussion  what  affects  the  microelectronic  revolution  would  have  
on  our  social  and  economic  relationships.  The  end  of  work  and  the  leisure  society  
were  two  terms  often  used  in  this  context.  Even  though  life  certainly  has  become  
more  convenient  during  the  last  20  years,  we  are  still  working.  It  is  the  paradigms  
of  our  social,  economic  and  political  relationships,  which  have  changed,  and  they  
will  continue  to  change  in  an  even  more  radical  way  in  the  future.  This  change  is  
driven   by   the   way   we   gather   and   process   information   nowadays.   Just   like   the  
letterpress  printing  in  the  16th  century  changed  the  way  we  transform  a  complex  
set   of   information   into   knowledge,   the   prevalence   of   the   Internet   changed   this  
process   again.   It   made   it   even   faster   and   more   profound,   because   in   the   virtual  
world   there   are   almost   no   boundaries   for   storage   and   accessibility.   Without   a  
question  the  Internet  is  the  Alexandria  of  modern  times.  Knowledge  is  the  key  to  
success   and   intercultural   transfer   of   information   is   one   of   the   thriving   factors   of  
globalization.  Knowledge  has  become  a  commodity  and  the  culture  we  are  living  in  
   4  

has   developed   a   distinct   thirst   for   information.   That’s   why   our   society   can   be  
called  a  knowledge  society.  

2.   Data,  Information,  Knowledge  and  Memes  

 
It  is  imperative  to  be  able  to  differentiate  between  data,  knowledge,  information  
and   thought   patterns,   so   called   memes.   Obviously   all   around   us   information  
seems   to   be   multiplying.   We   know   that   matter   and   energy   cannot   increase  
without   further   input   but   apparently   information   can   with   virtually   no   input.   “The  
reason  why  information  can  increase  like  this  is  that  the  necessary  raw-­‐materials  
are   available   […].”1   But   is   it   really   information   that   is   multiplying.   As   Luhmann   put  
it,   information   does   not   exist   naturally,   it   is   produced   by   observation   and   hence   it  
is  always  subject  to  an  individual  being  (“a  difference  that  makes  a  difference”).    

Abbildung:  Transformation  process  between  knowledge,  information  and  data.  

 
Following   Luhmann’s   definition   of   information   this   would   mean   that   either   the  
number   of   human   beings   producing   information   has   increased   or   the   way   of  
producing   information   –   so   to   say   observing   things   –   must   have   become   easier.  
Both   is   true   and   part   of   the   reason   why   we   speak   of   informational   abundance   but  
it   doesn’t   explain   the   speed   of   the   surge.   A   better   explanation   can   be   achieved  
when   we   visualize   that   most   of   the   information   we   observe   is   just   a   copy   or   a  
slightly  altered  version  of  another  information  already  existing.  Copying  does  not  
necessarily   create   more   information   but   it   creates   more   data   and   it   has   never  
                                                                                                               
1
cf. Blackmore, S. (2010).
   5  

been   easier   to   copy   than   it   is   today.   And   at   this   point   Luhmann   comes   into   play  
again.   Our   generation   is   confronted   with   more   sensory   stimulus   than   any  
generation  before  in  the  history  of  mankind.  Our  brains  change  and  so  does  our  
way  to  create  and  process  data.  Selection  and  deceleration  are  key  factors,  which  
make  a  difference  in  a  world  of  informational  abundance.  “Everything”  is  just  not  
an  option  anymore  and  therefore  we  have  to  choose,  which  kind  of  data  is  worth  
becoming   information.   Reasonable   differentiation,   the   ability   to   sometimes  
choose  arbitrarily  and  to  constrain  on  the  essential  becomes  vital  if  one  does  not  
want  to  perish  in  the  explosion  of  information.  Percolating,  compressing,  refining,  
restructuring  and  evaluating  information  are  the  central  tasks  for  anyone  living  in  
this   new   world.   Computers   do   a   lot   of   the   administrative   work.   Search   engines   for    
example   are   good   filters   and   digital   information   can   be   stored,   copied   and  
selected   by   machines,   before   it   becomes   real   information   through   observation.    
 
Take   Amazon’s   recommendation   algorithm   for   example.   Books,   DVD’s   and   other  
things  are  suggested  to  the  user  based  on  the  buying  patterns  of  other  users  who  
bought   similar   things   in   the   past.   Not   always   is   this   information   meaningful   to   the  
consumer,  but  it  shows  that  some  kind  of  proto-­‐information  can  be  created  within  
a  machine,  which  eventually  becomes  a  real  information  as  soon  as  it  draws  the  
user’s   attention.   In   the   end   machines   cannot   create   information   in   Luhman’s  
understanding   of   the   word,   they   can   only   replicate   it.   And   with   every   new   dataset  
the  observer  still  has  to  evaluate  if  the  new  observation  fits  previous  experiences  
and  if  it  is  a  valuable  information  worth  being  stored  or  not.  As  the  author  John  
Naisbitt  put  it  “We  are  drowning  in  information  but  starved  for  knowledge.”2  

Memes   as   the   fourth   category   are   patterns   of   thought   and   behavior,   which   can  
directly   be   copied   from   one   person   to   another   by   imitation.   The   term   meme  
comes   from   the   word   “to   mimic”   and   that   is   exactly   what   memes   do.     Memes   are  
not   about   understanding   something   or   gathering   information   to   create  
knowledge,   they   are   about   reducing   the   complexity   of   complicated   issues   and  
about  copying  something  that  has  proven  to  be  success-­‐  or  useful  by  any  means.  
                                                                                                               
2
Naisbitt, J, (1982).
   6  

Some   memes   are   good   and   others   are   bad,   but   they   all   compete   for   their  
multiplication.   The   interesting   thing   about   memes   is   that   they   are   copied   with  
selection  and  variation.  Just  like  an  evolutionary  process  they  alter  and  change  as  
they  spread  and  ultimately  that  is  what  creates  trends.  

3.   Global  information  economy  

 
As  many  markets  become  saturated,  high  levels  of  competition  and  the  need  for  
businesses   to   remain   dynamic   force   organizations   to   shorten   their   innovation  
cycles.  The  time  span  in  which  a  specific  piece  of  knowledge  is  ‘state-­‐of-­‐the-­‐art’  is  
shortening.   This   means   that   external   knowledge   and   intellectual   property   has   to  
be   integrated.   “With   the   increasing   depth   of   knowledge   specificity,   a   trend   to  
specialize  within  corporations  as  well  as  between  corporations  is  observed.”3  As  a  
consequence  knowledge  assets  are  increasingly  recognized  as  an  important  input  
in  production  processes.4  In  fact  some  of  the  most  rapidly  growing  companies  in  
the  world  do  not  produce  anything  material.  Their  capital  is  their  knowledge  and  
in  an  information  economy  knowledge  rather  than  monetary  capital  is  the  basis  of  
wealth. Traditional   production   factors,   such   as   land,   labor,   and   money   are  
becoming   restraints   rather   than   driving   forces.   Knowledge   turns   out   to   be   the  
most  critical  factor  of  production.5 Finally  it  has  become  a  resource  similar  to  any  
other  production  good.  Over  the  last  a  global  marketplace  developed,  organizing  
the   exchange   and   the   value   of   information.   But   the   national   institutions   are   still  
governing  property  rights,  which  determine  the  excludability  of  knowledge.  There  
are   no   International   laws   or   conventions   on   how   to   treat   property   rights.   This  
means,   that   in   some   countries   national   law   protects   an   inventor   of   a   specific  
knowledge  from  possible  imitators  whereas  in  another  country  the  inventor  might  
have   virtually   no   control   over   the   unlicensed   application   of   his   intellectual  
property.   Since   there   is   an   international   flow   of   information,   which   generate  
                                                                                                               
3
Haeussler, C. (2009), p.3.
4
Dolfsma, W. (2008), p.1.
5
Wired
   7  

knowledge   laws   on   copyright   can   have   most   different   effects.   They   can   be  
debilitating,  protective  and  sometimes  they  simply  don’t  exist.    

In   the   knowledge   economy   we   all   are   principals   and   agents   at   the   same   time.  
Sometimes  we  give  information  away  sometimes  we  gain  new  information.  At  this  
point   it   becomes   clear   that   the   process   of   creating   new   knowledge   is   always  
embedded   in   social   systems,   because   knowledge   multiplies   best   in   a  
communicative   environment.   And   through   such   a   new   form   of   science   is  
emerging.   The   German   futurologist   Matthias   Horx   calls   them   the   “symbiotic  
sciences”.6   With   increasing   frequency   knowledge   of   various   scientific   areas   is  
mixed   and   connected   to   each   other.   It   is   an   interdisciplinary   recombination   of   the  
known,   which   often   leads   to   completely   new   perceptions   and   radical   new  
innovations.  In  an  open  knowledge  economy  firms  cannot  simply  try  to  maximize  
the   incoming   knowledge   streams   while   minimizing   the   outgoing   ones,   they   have  
to   celebrate   a   business   model   that   embraces   an   open   exchange   of   knowledge  
between   the   firm   and   other   parts   of   the   society   in   order   to   stay   competitive.  
Processes  used  in  this  context  are  Open  Innovation  and  Cross  Industry  Innovation.    

                                                                                                               
6
cf. Horx (2009), p. 353.
   8  

4.   Managing    Knowledge  Workers  

 

Information   has   been   identified   as   a   virtual   good,   which   is   not   bound   to  

geographical  and  temporal  boundaries  until  it  becomes  knowledge  again.  But  even  
then   Knowledge   is   not   static.   According   to   our   definition   it   can’t   be   exchanged  
directly,   but   knowledge   workers   can   very   well   work   in   different   places.   In   a   future  
where   the   world   is   described   as   global   village   knowledge   workers   will   work  
independent  from  their  geographical  position.  They  might  become  part  of  a  virtual  
global   network   their   selves   fostering   international   cooperation   and   the   mash   of  
civilizations.  The  challenge  will  be  to  have  the  right  knowledge  in  the  right  place  at  
the   right   time.   That   is   why   a   lot   of   the   problems   multinational   companies   and  
organizations  are  facing  can  only  be  solved  by  collaborative  work  across  borders.  
Those   problems   have   become   very   complex   and   interconnected.   They   often  
require  responses  from  different  disciplines,  which  means  that  many  people  have  
to   work   together.   But   what   kind   of   leadership   is   needed   to   organize   an  
international   workforce?   The   right   way   might   be   to   get   things   done   through   a  
community   of   people   not   by   having   traditional   command   and   control   structure.  
That   is   also   where   technology   comes   into   play   again.   Interaction   in   virtual   social  
networks   is   an   approach,   which   has   revolutionized   private   communication   over  
the  Internet.  The  same  might  happen  in  business.  

According   to   Professor   Arnoud   De   Meyer   who   coined   the   term   “collaborative  

leadership”   knowledge   workers   by   definition   are   people   who   have   a   lot   of  
expertise   in   a   certain   discipline   or   science.   “Knowledge   workers   do   not   like  
hierarchies”.7   That’s   why   they   have   to   be   given   the   space   to   deploy   their  
knowledge   in   order   to   be   creative.   Meyer   speaks   of   “seduction”   to   make  
knowledge  workers  join  a  community  of  knowledge.  But  certainly  management  in  
the   future   means   not   only   fostering   a   climate   of   collaboration   inside   of   the  
company   but   also   in   interaction   with   the   society.   What   is   needed   is   cognitive  
diversity.   The   “intelligent   firm”   is   an   ever-­‐changing   body   where   communities    

                                                                                                               
De Meyer, A. (2010), In an interview at Cambridge University.  
7
   9  

assemble  and  disintegrate  on  a  regular  basis.  And  that  is  why  managing  knowledge  
workers   and   communities   of   practice   often   is   about   transparency   and   how   an  
intelligent   collective   can   compensate   losses.   In   other   words   who   has   the  
knowledge  and  where  is  it  needed  the  most.  Those  are  the  questions  Knowledge  
Management  deals  with.  

4.   Knowledge  Management  
 
As   pointed   out   in   section   2   of   this   paper,   data   is   constructed   by   observation.  
Information  is  not  equitable  with  knowledge.  Knowledge  rather  is  the  result  of  an  
individual   learning   process,   in   a   manner   of   speaking   it   is   information   in   use.  
Therefore   the   term   Knowledge   Management   is   somewhat   deceptive,   because  
knowledge  can  neither  be  stored  nor  passed  on  without  further  ado.  Knowledge  
means   someone   being   an   expert   in   something,   but   any   expertise   whatsoever  
cannot  be  transferred  from  one  individual  to  another  without  transforming  it  back  
into   information   first.   Other   individuals   can   observe   information   and   in   applying  
information   they   eventually   become   experts   again   and   gain   their   own   knowledge.  
Hence   Knowledge   Management   is   about   the   documentation   of   both   data   and  
information,   which   can   be   transformed   into   knowledge   by   the   individual  
whenever   a   certain   expertise   is   required   somewhere   within   the   organizational  
body.   Therefore   the   primary   focus   of   Knowledge   Management   lies   on   the  
optimization  of  the  production  of  knowledge  or  on  “how  to  make  learning  easier”.  
The  intelligent  organization  of  information  has  to  be  learned  by  both  individuals  as  
and  organizations  to  avoid  a  critical  overflow  of  data  or  information,  which  always  
leads   to   disappearances   of   some   kind.   In   an   era   of   informational   abundance   the  
ability   of   being   able   to   percolate   the   necessary   from   the   unnecessary   is   vital   for  
personal  and  professional  success.  Today  knowledge  can  be  shared  in  open  as  well  
as  in  closed  networks,  but  the  ability  of  instantaneous  duplication  and  distribution  
of   knowledge   generally   raises   the   yet   unsolved   question   of   property   rights  
described   in   section   3   of   this   paper.   An   estimated   98%   of   Google’s   market  
capitalization   can   be   attributed   to   the   company’s   intellectual   property   (e.g.  
   10  

patents   such   as   the   search   algorithm).8   This   shows   very   plainly   that   protecting  
intellectual   capital   from   external   interest   groups   is   vital.   Unfortunately   an  
aggregation   of   knowledge   –   the   core   idea   of   Knowledge   Management   –   raises   the  
risk  of  loosing  valuable  IP  to  competitors  tremendously.  

The   question   remains,   who   is   in   possession   of   knowledge   and   who   is   allowed   to  

use  it?  Digital  rights  management  and  open  source  are  two  contrary  approaches  
trying   to   solve   this   issue.   The   Governance   of   knowledge   on   part   of   companies   and  
countries   determines   the   pace   of   the   transformation   of   modern   societies   into  
knowledge  societies.    

4.1   Knowledge  Management  in  Businesses  

 
Knowledge   Management   has   become   a   trend   during   the   last   couple   of   years.   It  
enables  employees  ranging  from  government  to  manufacturing  to  take  informed  
action  in  situations  that  go  beyond  their  practical  experience.  For  the  business  as  a  
whole   this   means   that   the   speed   with   which   its   employees   are   able   to   work  
accelerates  dramatically  and  it  becomes  more  adaptable  to  new  market  challenges  
and  opportunities.  

In   the   economic   climate   we   experienced   the   last   2   years   companies   became   more  
careful  in  implementing  new  and  expensive  technology  initiatives.  They  began  to  
realize   that   leveraging   the   accumulated   intellectual   property   already   existing  
within   the   corporation   is   a   low   cost   way   to   work   more   efficiently   and   hence   be  
more   competitive.9   “A   pivotal   role   in   migrating   to   a   knowledge   strategy   is   the  
creation  of  a  culture  to  support  trust  and  collaboration.”10  A  useful  tool  to  pass  on  
valuable  information  and  creating  new  knowledge  among  employees  are  so  called  
“communities   of   practice”.   It   is   a   subsequent   fitting   of   contextual   information,  
which   follows   the   aim   to   solve   a   certain   problem.   The   knowledge   to   solve   the  
                                                                                                               
8
cf. Frappaolo, C. (2006), location 50 – 60.
9
cf. Frappaolo, C. (2006), location 41 – 48.
10
cf. Frappaolo, C. (2006), location 31 – 41.
   11  

problem  does  not  exist  yet,  but  the  information  available  to  the  members  of  the  
community   can   eventually   lead   to   the   solution   for   the   problem.   This   group   can  
evolve   naturally,   when   a   certain   problem   occurs   but   it   can   also   be   created  
specifically   with   the   goal   of   gaining   knowledge   related   to   a   certain   field.  
Information   portals,   E-­‐learning,   E-­‐analysis   and   content   management   are   similar  
approaches,   which   are   counted   among   those   classic   KM-­‐practices,   which   have  
been  successfully  implemented  by  many  enterprises.11  Since  all  of  those  methods  
are   geared   towards   an   ongoing   and   target-­‐oriented   education   of   the   employees   it  
becomes  imperative  to  understand  that  in  an  information  society,  education  is  not  
a  convenience  anymore  but  it  is  the  primary  tool  for  growing  people  and  profits.  

However   corporate   Knowledge   Management   is   more   than   just   creating   storage  

capacity   for   accumulated   information   and   passing   on   knowledge   through   social  
systems.  In  some  respect  it  can  constitute  a  dynamic  long-­‐term  strategy.  Especially  
in   IT   and   engineering   companies   F&E   efforts   are   often   strategic   and   not   related   to  
a   certain   products   or   cost   objects.   The   results   of   such   broadly   conceived  
fundamental   research   and   the   processes   used   to   create   the   results   might   be  
valuable   for   a   variety   of   future   products.   Therefore   an   accurate   documentation   of  
the  research  has  to  be  accessible  in  order  to  build  upon  those  experiences  and  to  
prevent  double  work  across  the  corporation.  

 
 
 
 
 
 
 
 

                                                                                                               
11
cf. Frappaolo, C. (2006), location 24 – 31.
   12  

5.   Conclusion  
 
“Knowledge   has   become   the   central,   key   resource   that   knows   no   geography.   It  
underlies   the   most   significant   and   unprecedented   social   phenomenon   of   this  
century.  No  class  in  history  has  ever  risen  as  fast  as  the  blue-­‐  collar  worker  and  no  
class  has  ever  fallen  as  fast.  All  within  less  than  a  century.“12    

Worldwide  data  networks  have  radically  altered  and  accelerated  the  exchange  of  
information  and  not  only  changed  the  way  we  learn  but  also  how  society  develops  
as  a  whole.  As  we  are  on  the  verge  of  a  worldwide  information  society  it  seems  as  
if   we   are   required   to   process   more   and   more   information   in   an   ever-­‐shorter  
period   of   time.   This   means   that   for   the   individual   the   question   of   what   is   worth  
knowing  and  what  is  negligible  becomes  considerably  more  important.  Computers  
handle  vast  quantities  of  data  with  extraordinarily  high  fidelity,  but  variation  and  
selection  is  still  done  by  human  beings,  with  their  biologically  evolved  desires  for  
stimulation,   amusement   and   communication.13   Yet   technology   has   come   so   far  
that   computers   soon   will   be   able   to   actually   distinguish   what   is   relevant   for   an  
individual   and   what   is   not.   The   idea   of   the   semantic   web14   is   exemplary   for   this  
capability.   The   notion   of   machines   helping   the   individual   in   discerning   relevant  
information   will   also   be   interesting   for   Knowledge   Management,   because   the  
quintessential  idea  of  Knowledge  Management  is  how  knowledge  finds  the  learner  
when  it  is  needed  and  not  the  other  way  around.    

Summarizing   it   can   be   said   that   the   boundaries   between   data,   information   and  
knowledge  seem  to  blur  more  and  more.  But  this  appearance  is  deceitful,  because  
ultimately  content  always  is  created  for  human  beings  and  without  a  human  eye  
paying   attention   to   any   form   of   content,   it   can   hardly   be   considered   to   be   a  
difference  that  makes  a  difference.  

                                                                                                               
12
Peter Drucker in an Interview conducted by Wired Magazine.
13
cf. Blackmore, S. (2010).
14
Semantic Web or Web 3.0: A set of technologies that allows computers to “understand” the content of data on
the Internet. Through an indexation of all data machines would be able to locate related information on behalf
of the user.
   13  

Bibliography  
 
 
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http://opinionator.blogs.nytimes.com/2010/08/22/the-­‐third-­‐replicator/  
 
Naisbitt  John  (1982):  Megatrends:  Ten  New  Directions  Transforming  Our  Lives;  1st  
Edition;  Warner;  ISBN-­‐13:  978-­‐0446512510.  
 
Haeussler,  Caroline  (2009):  The  Economics  of  Knowledge  Regulation:  An  Empirical  
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Dolfsma,   Wilfred   (2008):   Knowledge   Economies   –   Innovation,   organization   and  
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Interview  with  Peter  Drucker:  
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