Here's a page from the KDS
training manual which shows the KIPASS (or Smart) ECU and the communication process that goes on to start the engine. When the key is depressed the KIPASS ECU 'looks' for the fob. If it finds it the display will show the stove knob/key symbol. That's STEP 1.
STEP 2. If the KIPASS ECU does not yet 'know' the steering lock (or Key) ECU [as in Olds case], KDS [which is connected to KIPASS via a cable & laptop] allows the operator to register the Key ECU at this stage above - before the key can be turn on. Obviously there is only about 10 seconds to start this process before the key symbol disappears from the display. Simply press the stove knob again - and again - and again until you can start the Key ECU registration process.
STEP 3. Once that's done the key/ignition can be turned on and the fuel injection [Engine] ECU can then be registered to KIPASS.
Turn the ignition off, wait for the key display to disappear; press key knob and turn; start the engine. Job done!
One of the frustrations with the various Kaw manuals for the bike is that the system components and the system itself has more than 1 name. Additionally, depending on the age of the bike, the KDS software version the operator is using may or may not be 'new enough' to have the newer ECUs 'listed' in the software, the newest version being 3.0.9.4