USING A SUPPLY AND DEMAND MODEL

USING A SUPPLY AND DEMAND MODEL TO ANALYZE THE CURRENT SITUATION OF KNOWLEDGE MANAGEMENT PROGRAMS IN IRAN
MOHSEN AKHBARI VARKANI
Department of Industrial Engineering, Yazd University of Iran, Yazd, Iran and Department of Technical Knowledge, MATN Company, Tehran, Iran
makhbari@stu.yazduni.ac.ir
MOHAMMAD SALEH OWLIA
Department of Industrial Engineering, Yazd University of Iran, Yazd, Iran
owliams@yazduni.ac.ir
In recent years, Iranian companies have shown more interest on knowledge management and have started to invest on KM projects. They have used different approaches and methodologies to implement knowledge management programs. While most of the companies have hired consultants for KM design and implementation, a few have experienced in-house development. However, it seems that knowledge management consultancy in Iran is in its early stages of growth in terms of market as well as internal capabilities. The aim of this paper is to present the current situation of knowledge management initiatives in Iran. A supply and demand model was used to analyze the knowledge management products and services in one side and the customers’ requirements of the systems on the other side. Via a comparison matrix, the customers’ requirements were compared against the existing knowledge management products and services. The results showed key challenges of Iranian KM market from both supply and demand sides.
1. Introduction
The popularity of Knowledge management (KM) is still increasing. Also, KM is no longer a buzz word. (Plessis, 2005) Many companies in all over the world choose different approaches to KM to get better results. Successful implementation of KM necessitates eliciting different kinds of the customers’ requirements. According to Ralph R. Young (2001) in his book, the requirement engineering handbook, requirement is a necessary attribute in a system, a statement that identifies a capability, characteristic, or quality factor of a system in order for it to have value and utility to a customer or user. Hence, if a customer knows his/her requirements to KM system (KMS) better, he/she can follow a better approach for KM implementation. On the other hand, with the growing popularity of KM, increasing number of software vendors claim their systems would qualify as KM Systems (Frank, 2001). Iranian KM market like the other markets worldwide hasn’t been unbreakable to such challenges from both sides i.e. customers and solution providers. It is not more than about five years which KM has become a hot topic among Iranian companies. Many academic and industrialized entities like researchers, students, companies, research institutes and solution providers have persuaded to follow KM. As a result, different approaches to KM are developed. Many conferences, seminars and conversation meetings were held. Enormous contents on the field of KM are published in blogs, wikis and websites. Some universities started up to hold KM courses. Moreover, a number of new businesses were established. According to a research project defined by Department of Technical Knowledge, Markaze Toseye Fannavari Niroo (MATN Co.) for developing an integrated model of knowledge, innovation and technology management, a research study was done to analyze the current situation of KM programs in Iranian companies. To obtain a good imagination on the current situation of KM programs in Iran, a “Supply and Demand Model” is presented in this paper. The “supply side” of the model describes different existing solutions and approaches on KM which is available for implementing KM. In contrast, the “demand side” of the model introduces different types of requirements to KM from the customers' points of view. Having such a model helped us to systematically analyze the KM situation from two points of view.
2. Literature Review
Nowadays, a spectrum of various KM technologies can be found worldwide. KMS, for example, are categorized into knowledge repositories, knowledge discovery and mapping tools, e-learning suits, community builders, meta search systems, enterprise knowledge portals, push-oriented systems, collaborations tools, and visualization and navigation systems. In addition, Liao (2003) studies KM technologies provided into market during 1995 to 2002. KM framework, knowledge-based systems, data mining, information and communication technology, artificial intelligence/expert systems, database technology, and modeling are seven sorts of KM product and services. Furthermore, looking at case study papers in the literature shows that KM has had a significant role on business processes. For instance, KM helps to reuse design knowledge in engineering design process. Plessis and Boon (2004) have introduced KM as a prerequisite for eBusiness and customer relationship management process. Also, Lehtimäki, et. al. (2009) recently uses KM in project marketing which is formerly utilized more in project management. For example, capturing and sharing knowledge in construction industry can provide competitive advantages. Some papers have discussed other practices, experiences and success stories about utilization of KM (Plessis and Boonb, 2004; Wong and Aspinwall, 2006; Berends, Vanhaverbeke and Kirschbaum, 2007; Sicilia, Lytras, Rodriguez and Barriocanal, 2006; Buckman, 1998). In a research report provided by Department of Trade and Industry (DTI) in the year of 2003, the research team divided KM tools into two classes including KM techniques and KM technologies which KM technologies also subdivided into hardware and software applications. Software products in this research study encompass data and text mining, groupware, intranet, extranet, knowledge bases, taxonomy and ontologies. Other types of KM technologies mentioned in this study refer to the past research works done by Jackson (1998), Bair and O’Connor (1998), Wensley (2000), Gallupe (2001) and Tsui (2002a & b). They includes document management, information management, searching and indexing, communications and collaborations, systems for managing intellectual property, knowledge Retrieval, integrated Systems, process modeling and management, workflow management, enterprise resource management, agent tools, search engines, navigation tools and portals, virtual reality, intelligent agents, meta/web crawler, case-based reasoning and e-learning.
In summary, a list of KM products and services can be extracted from the literature review summarized in Table 1. They can be categorized into two groups. The first group includes generic KM products and services which directly emphasis on managing the knowledge contents like knowledge repositories or cover KM functionalities like community builders for better sharing of knowledge. The other type specifically integrated into business processes and assists them to work better. For example, a KM solution presented by Lehtimäki et. al. (2009) aims to incorporate KM processes into project marketing processes.
Table.1 a list of KM products and services worldwide
Generic KM product and service
Specific KM product and service
• knowledge repositories
• knowledge discovery and mapping tools
• community builders
• meta search systems
• enterprise knowledge portals
• collaborations tools
• visualization and navigation systems
• k-base systems
• data-mining
• knowledge modeling
• AI/Expert systems
• data and text mining
• groupware
• intranet and extranet
• taxonomies
• ontologies
• searching and indexing
• systems for managing intellectual properties
• k-retrieval
• agent tools
• navigation tools and portals
• search engines
• virtual reality
• meta/web crawler
• case-based reasoning • e-learning suits
• reuse design knowledge in business processes
• eBusiness
• customer relationship management (CRM)
• project marketing
• project management
• document management
• information management
• process modeling and management
• workflow management
• enterprise resource management
3. Research Methodology
To do the research on a rationale basis, firstly, a research methodology is developed. As Fig. 1 shows, the methodology includes seven steps as follows:
Step 1) to study the current situation of KM consulting companies which provide KM solutions.
Step 2) to study the current situation of companies which are experienced in KM implementation without any help from consulting companies.
Step 3) to study the current situation of companies which are experienced in KM implementation with the help of consulting companies.
Step 4) to develop a KM product and service model
Step 5) to develop a KM requirements model
Step 6) to evaluate international KM products and services (summarized in Table 1) against KM products and services provided in Iran as well as comparing two acquired models in steps 4 and 5.
Step 7) analysis and discussion













Fig 1. research methodology

The required data for the study were basically collected through searching the internet, blogs, official companies' websites and their success stories. Also, when required, complementary interview meetings were held with KM representatives of such companies. To analytically discuss the current situation of KM programs in Iran, the presented research methodology in Fig. 1 was applied. In the first step, almost all of the management consulting companies who are providing KM solutions were recognized. The aim of this work was to identify current situation of existing KM products and services. Besides, available approaches to KM were identified. It should be said that a few companies just claim that they are expert on KM implementation but in practice, there was no proof. About 11 well-known consulting companies were studied. The second step was assigned to review the results of KM projects implemented in Iranian companies who have experienced in-house development. Three companies were selected whereas it seems more companies were included. For instance, one of these companies were started its KM program since 2004 internally and expand its plan with the help of consulting services. In spite of existence of such companies which were implemented their KM programs in-house, there is no doubt that most Iranian companies implement their KM programs with the help of consulting companies. Then, in the third step, companies who implemented KM by the help of consulting companies were studied.
In step four, we present the product and service model of KM solutions which is equal to the “supply side” of our supply and demand model. The model is the output of the first step. It includes KM products and services provided by KM consulting companies in the Iranian market. (Section 4)
Then, the requirements model of KM has shown in step five which outlines all of the user or customer requirements to KM resultant from the second and third steps (Section 5). It means that the sources of requirements include two types of customers: who implemented KM in-house and who put KM into action with the help of consulting companies. The developed model here is equal to the “demand side” of the supply and demand model. In step six of the methodology, first, the presented KM products and services in the Iranian market are evaluated against international ones. In addition, both developed models from the previous steps (4 and 5) are compared against each other using a comparison matrix. (Section 6.1) Finally, step seven is assigned to the key challenges that affect the development of KM programs in Iran. (Section 7)
4. KM product and service model: supply side
To identify KM solution providers and consulting companies, we referred to a complete list of management consulting companies from the Iran Management Consultants Association (IMCA) that shows companies professionally active on KM. Furthermore, searching on the internet, past experiences from KM projects and other accessible resources helped us to recognize almost majority of KM solution providers in Iran. A specification table was made for each company includes information like “company name”, “general activity areas”, “related services to KM” and “contact information”. For example, Table 2 shows information about company A, B and C among 11 studied companies.


Table.2 examples of services provided by Iranian KM consulting companies
company name general activity areas KM products and services
A • systems engineering and management
• IT management
• HRM
• KM • design and implementation of:
o corporate memory
o organizational portal
o content management system
o knowledge master planning
o learning organization
o learning systems
• research studies
• training seminars and courses
• publications (e.g. knowledge booklets)
B • project management services
• PMBOK implementation
• project planning and Control
• project procurement management
• MIS
• quality management services
• KM
• training • project KM systems
• training (especially for project-oriented companies)
C • KM • personal KM solutions
• project KM
• knowledge acquisition
• comprehensive KM softwares
• KM strategy planning
• knowledge sharing culture assessment
• social network analysis
• assessment of project management system according to KM criterion

Using gathered information from the KM consulting companies in Iran, a complete list of different products and services provided by such companies is obtained. These products and services can be classified into three groups: Consulting products and services, Training and Publications. (Table 3) As well, the consulting products and services are organized into five types. From Table 3, the “supply side” of the supply and demand model is attainable.

Table.3 classification of KM-related products and services provided by Iranian KM consulting firms
category product and service types
1 Consulting products and services comprehensive products and services (cover almost all KM functionalities)
• implementation of KM processes
• KMS support services
• KM software development (e.g. knowledge sharing system)
• design and development of project KMS
• KM and business excellence
component-based products and services (cover one or more KM functionalities)
• support services for organization portal
• CMS support services
• knowledge acquisition
• knowledge and technology strategy planning
• design and development of corporate memory
• electronic document management systems (EDMS)
assessment services
• KM assessment and evaluation
• knowledge auditing
• assessment of project management systems according to KM criterion
• assessment of KM dimensions like sharing culture
• assessment of project management system according to KM criterion
• integrated knowledge and technology assessment
• social network analysis
codification and documentation services
• documentation of management experiences
• electronic document management systems (EDMS)
other services
• research and survey on KM
• development of RFPs for KMS
2 Training courses • seminars
• training courses
• workshops
3 Publications • book publication
• CD publication

5. Requirements Model: demand side
To develop a requirements model for the current customers' needs and expectations to KM, a number of companies including the those who approached to KM in-house and ones who implemented KM with the help of consulting companies were studied. To have a better analysis on the customers' requirements, case companies were selected from different types of companies. Four types of companies and their definitions are:
1. Product-based organizations i. e. companies who constantly produce something as the output of their production process (e.g. automakers)
2. Project-based organizations i. e. companies who participate in a bid, win the project and execute the projects in their limited life cycle (e.g. construction companies)
3. Service-based organizations that their main customer value is the services provide to customers, such companies don’t produce any tangible product (e.g. banks)
4. Research-based organizations who can be a type of service organizations that their main services is to do research customers (e.g. research and development centers)
Besides, we kept in mind to choose different organizations expanded in country's economic structure i.e. government, industry/ economic section and corporate levels. We studied 4 cases on government level, 8 cases on industry/ economic section level and 11 case companies on the corporate level. From the existing 23 cases, 3 of them were product-based (%13), 1 case was project-based (%4), 13 organizations were service-based (%57) and the remaining 6 organizations were research-based (%26). The mentioned numbers shows the fact that service and research-based companies were more investing on KM (%83) whereas product and project-based ones have experienced less KM programs.(%17) The results indicate that service and research-based companies generally tend to codify their knowledge and experiences. Also, it seems that the diversity of KM project types in product and service-based organizations is more than the other. It was expected that codification projects in project-based organizations were more but the results shows a lack of attention to this. A significant reason can be the shortage of technical and engineering knowledge among consultants. It means that KM consultants and customers can hardly find a common technical language which is a key factor for success in KM implementation.
Although, there were some limitation to hold meetings with KM project managers in such companies, a few interview meetings were held. For each case, a specification table was obtained includes some information about their KM goals, their preliminary requirements to KM, KM activities and also their KM outcomes. Therefore, a complete list of user or customers' requirements was developed. According to Young (2001) the requirement mentioned here, are of high-level requirements which needs to be restated in more detail. Some of these requirements are as follows:
- To establish a KM organizational unit to perform KM processes and tasks
- Reusing past experiences in new situations
- Sharing knowledge and experiences
- Knowledge assessment in technology transfer process
- Knowledge codification in technology transfer process
- Codification of project knowledge
- To running a mechanism for knowledge acquisition and reuse when key employees are leaving the organization due to different causes such as retiring.
- To prevent from past failures
- To organize experts’ network in the organization
- To solve organizational issues, problems and challenges in shorter time limit efficiently
- Know what an organization know and what it doesn’t know
- Idea dispersing in employees’ minds
- Existence of huge useless knowledge in organization which can be retrieved
- To design an incentive system for knowledge workers
- To implement a KMS
- To collect and organize knowledge experiences to support business strategy
- KM assessment
- KM training
- To assess organization knowledge
- To develop a knowledge map
Then, requirements are categorized into four groups in the demand model: “structural”, “codification”, “assessment” and “training and publication” requirements:
Structural requirements are parts of requirements for manipulating organizational structure to support KM programs. Requirements to KM processes, people, and creation of relationships can be considered in this category. For instance:
- To establish a KM organizational unit to perform KM processes and tasks
- Sharing knowledge and experiences
- To organize experts’ network in the organization
Codification requirements describe a group of requirements which insist on documenting organizational knowledge both tacit and explicit (Polanyi, 1966), experience and past findings. The results show that project-based organizations mainly have such requirements. The solutions provided for such requirements generally design a knowledge repository or a knowledge-base which is able to ease the way knowledge workers access to the required knowledge right on time. Some samples of codification requirements are:
- Knowledge codification in technology transfer process
- Codification of project knowledge
- To running a mechanism for knowledge acquisition and reuse when key employees are leaving the organization due to different causes such as retiring.
- To develop a knowledge map
Assessment requirements basically focus on assessment and evaluation processes. A spectrum of assessment programs can be from assessing a dimension of KM either a KM process or one of its enablers like technology to assessing the whole aspects of KM. Also, there are a few number of stated requirements emphasis on knowledge assessment. Requirement such as:
- Knowledge assessment in technology transfer process
- KM assessment
- To assess organization knowledge
are of typical assessment requirements.
Finally, training and publication requirements look for solutions to resolve the lack of understanding of KM. Furthermore, publication requirements particularly refer to KM-related materials for training.
The above requirements types cover all the existing wants and expectations among Iranian companies. Customers can either have just one of these requirements or can request a combination of them. For instance, requirements to design, development and establishment of a KMS encompass all types of requirements.
6. Supply and Demand Model
From the previous sections (4 and 5), a supply and demand model is proposed (Fig. 2) As Fig. 2 shows, both requirements model (demand side) and product and service model (supply side) are presented face to face with each other. It is clear that training requirements can be responded by training services. As well, publication services can help to increase the performance of provided solutions in training. Obviously, other remaining requirements types including structural and codification requirements will be covered by consulting products and services. The presented supply and demand model behaves like a KM market in which customers are located in one side, they are looking for appropriate solutions and on the other side, solution providers or KM consulting companies look for customers to deliver their KM products and services to them.
























Fig. 2. Supply and Demand Model







6.1. Comparison matrices
i: comparison of national KM products and services Vs international ones
In the first comparison, we evaluate Iranian KM market against international KM products and services from the supply point of view. To evaluate, we used information from Table 1 and the right side of the presented model in Fig 2. From such comparison new or frequent KM products or services presented in the Iranian market can be found. Also areas that Iranian solution providers have neglected them can be obtained.
New or frequent practices found in the Iranian KM market are knowledge acquisition and documentation, KM strategy planning, overall or partial KM assessment and knowledge auditing. In addition, areas like visualization and navigation systems, data-mining, AI/Expert systems, building taxonomies and ontologies, agent tools, virtual reality, reuse design knowledge in engineering process, integration between KM and other business processes, use of KM in project marketing and so on are of KM fields which Iranian solution providers don’t enough invest on.
ii: KM products and services Vs KM requirements (in Iran)
Using the resultant model in Section 6, a comparison matrix is developed. The matrix compares “supply side” of the model against its “demand side”. (Table 4) In other words, it evaluates the KM product and services (existing solutions) in opposition to KM requirements in the Iranian market. The requirement types are placed in rows whereas KM products and services located in columns. The “” notation in each cross-section of the matrix shows that either a KM product or service covers a requirement type or not. A coverage score (%) is calculated both for requirements and KM products and services. The presented coverage score for each requirement demonstrate that how many percentages of KM products and services are appropriate for the requirement type. For example, 22% of existing KM products and services in the market can be applied on the requirement of organizing experts’ network in the organization. As well, the coverage score (%) for each KM product and service shows that its coverage on the whole customers’ requirement types. For instance, codification and documentation services have 60% coverage on the customers’ requirements.










Table.4 comparison matrix: requirement types against KM products and services
KM products and services







Customers' requirements Comprehensive services and solutions Component-based services and solutions Assessment services Codification and documentation services Seminars Training courses Workshops Book publication CD publication Coverage Score (%)
To organize experts’ network in the organization   - - - - - - - 22
To establish a KM organizational unit  - - - - - - - - 11
Sharing knowledge and experiences   -  - - - - - 33
To implement a KMS  -   - - - - - 33
Idea dispersing in employees' minds   -  - - - - - 33
Knowledge codification in technology transfer process   -  - - - - - 33
Reusing past experiences in new situations   -  - - - - - 33
Knowledge acquisition and reuse when key employees are leaving the organization   -  - - - - - 33
Existence of huge useless knowledge in organization which can be retrieved   -  - - - - - 33
To develop a knowledge map   -  - - - - - 33
To collect and organize knowledge experiences to support business strategy   -  - - - - - 33
Knowledge assessment in technology transfer process    - - - - - - 33
KM assessment    - - - - - - 33
To assess organization knowledge    - - - - - - 33
KM training  - - -      66
Coverage Score (%) 100 80 27 60 7 7 7 7 7
7. Main results and findings
Due to the results from the supply and demand model and other investigations during the research, the following results and findings are summarized:
1. According to the complexity and diversity of presented solutions in the market, Iranian KM solution providers can be grouped into two categories:
- Companies that merely focus on KM.
- Companies which KM is one of the service types that they provide. The number of these companies is more than the former ones.
2. The age of professional KM consulting companies isn’t more than 10 years. It means that the business is still very young.
3. Knowledge and experience codification along together with KMS design and development are of the most preferred requirements among customers. However, information on the efficiency of such projects is not available.
4. Membership in the international KM societies and cooperation with world-class KM solution providers is a key issue which most Iranian consultants close the eyes to it.
5. The presented deliverables by consulting companies are generally into three forms including a software package, technical reports or a combination of them.
6. It should be said that there are a lot of companies in Iran which provide other functionalities of KM like document management and content management.
7. There are a lot of hidden requirements which customers have ignored. For instance, strategic approaches to KM.
8. The component-based KM solutions consider two dimensions: content and human. From the content points of view, they have presented solutions like knowledge-base, corporate memory and so on. In addition, social networking solutions focus on human aspect and knowledge sharing culture.
9. Both knowledge and KM assessment are of the requirements which still seek more comprehensive and creative solutions. It should be noted that knowledge assessment is a more complex process rather than KM assessment.
10. About the relationships between KM and other management information systems like human resources information systems, document management systems, project management systems and so on, project management systems have very adjacent relationship to KMS. The relationship comes from the point that acquired knowledge within the projects needs to be extracted to reuse for coming projects in the future. Projects managers naturally take notice on critical success factors like time, quality and cost and aren’t attentive to knowledge related issues. By designing an appropriate project KMS, project management team can organize and codify knowledge and experiences within the projects, store them and reuse. This functionality of KMS is very valuable for the project-based organizations.
11. The codification and documentation services correspond with codification requirements are of interesting KM services among organizations particularly in management layer. Most governmental organizations have shown their interest to such projects. A criticism to these types of KM projects is their impermanent characteristic.
12. KM training is a kind of KM services which either professional KM consulting companies or educational institutes in Iran have invested on. Training services for many consulting companies act as a starting engine to run a KM project.
8. Conclusion
In this paper, the current situation of KM in Iran was analyzed from two points of views: supply and demand. To do this, a number of case companies were chosen. We found different types of product and services presented in the Iranian market by KM solution providers. Also, a list of customers’ requirements to KM was presented. The requirements were classified into four types: structural, codification and documentation, assessment and publication. Then, a supply and demand model was designed and using a comparison matrix, requirements to KM were compared against available KM products and services. A coverage score was calculated for each dimension of the matrix. The results showed key issues and challenge for the Iranian KM market. The international KM products and services were also compared with KM products and services presented in the Iranian market. From the analysis, the shortcomings of Iranian solution providers were identified.
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