Apics12

Knowledge Management@Work ASPectx 10407 Christina Court Louisville, KY 40223 www.aspectx.com [email_address] (502) 254-9757 (502) 254-9793

What We’ll Cover
Definition
Some case examples
Benefits
Drawbacks
Impact on competitive intelligence

Just a Buzz Word?
“Intellectual capital,” not buildings but the people in them
“The art of creating value from an organization’s intangible assets”
“Turning corporate information into actionable knowledge.”
“The transfer of knowledge across an organization”

Two Approaches Computer solution People solution

KM Is Real
“Trusted” information inside an organization
Information with “context”
Captures a need when:
Uncertain business climate
Rapid staff turnover
Being “smart” pays dividends

Buckman Laboratories
Specialty chemicals, $400 million per year revenue
1,273 employees worldwide
All are linked by “K-Netix,” developed by Buckman
Concept is end of 10 years of work on knowledge sharing

Components
Discussion forums on CompuServe backbone
Lotus Notes with its Internet server for “documents” and “data”
Next step: link customers with lab’s inventory and order system

Buckman System CompuServe Buckman Labs Internet

A Pragmatic Approach
Use commercial off-the-shelf software
Lotus Notes
CompuServe
Internet “option”
Make a part of the workplace

The Benefits
It works
Clear separation of “internal system” and “Internet system”
Information moves
Collaboration possible within the organization
Relatively easy to set up and maintain

What do we mean by “ knowledge”? What are our sources? Who has access to what? What technology do we need?

What Most Organizations Have Financial information systems Sales / marketing information systems Electronic files Paper documents

Answer: What Must Occur Software and systems that integrate separate work activities

Choices for Data Aggregation Leading to Knowledge
Application Service Providers (ASPs)--Small to Medium Biz Use
Enterprise Resource Planning (ERPs)--Large Govt. & Corp.
B-to-B Ecommerce Exchanges--Buyer/Sellers
Vertical Portals with Intranet/Extranet Capability--Trade Associations

SageMaker – Portal Engine
$18 million in venture funding
Wall Street data center
Access to 6,500 text and data sources
Internet technology / browser-based
Leader in “vortals” – vertical portals
World Bank (apps, data, text)
International Monetary Fund (real time data, transactions)
Union Oil (competitive intelligence)

SageMaker … Knowledge Management
Bus based architecture (main transmission path)
Plug in application and content components
Based on industry standard
XML — Extensible Markup Language
Standard browser front-end ... thin client
Lower costs, flexibility, scalability

SageWavePersonalized Interface

Licensed B-to-B Content

Benefits of Knowledge
Better knowledge of customer and faster response to his / her needs
Know the competition and more effective actions in the market
Know industry measurement and sustain a fair valuation
Know your employees and mobilize to meet changing demand

1. Sales and Marketing
Dow Chemical. 25,000 patents in a database used by all divisions--transfers to new brands
Outokumppu-Finland. Applied knowledge of construction of plants to new business model. Increased revenues

2: Improve sales with “intelligence”
Benetton, Italy. Produces “mass-customized” apparel to fit latest trends. React to customer “actions”
Ritz Carlton. Staff required to note information from every personal encounter with guest. Data on guests are stored for next visit pampering.

3: Improve Revenues by Leveraging Knowledge
Skandia AFS, Sweden. Formal procedure to analyze startups of new financial products, reduced time to profit from 2 years to 6 months
WM-Data, Sweden. Links non-financial indicators to strategy--produces an intangible assets report annually.

4: Grow Employee Expertise
Honda. Given employees information outside their job area
Ernst & Young. Employee database matched to information from client calls. Hot tips are passed to people who need the information.

Other Options
dataware.com
(XML support and concept mining)
salient.com
(NT knowledge-based sales mgmt.)
vergesoft.com
(service company focus)
waresource.com
(Lotus Notes implementation)
knowlix.com
(includes call management tools)
dkmsoft.com
(rich media queries)
revize.com
( extranet publishing tools and content mgmt.)

Web Wincite
User supplies information
Links fields of intelligence
Audit cards--source and importance
Posted notes--comments added by users
References--files and related web sites
Multiple report options

Suggested Planning for KM
1. Appoint a Chief Knowledge Officer (CKO)
2. Conduct an enterprise-wide Knowledge Audit to determine the organization’s “knowledge management readiness.”
3. Implement a “Knowledge Management System”
groupware, doc management, search engine, tracking
4. Use KM methodology to achieve a specific business objective
5. Start an enterprise KM education program
6. Create or find a directory of subject matter experts

Success Stories
Booz, Allen & Hamilton--a 5,550 employee management and technical consultancy with revenues of $1.28Bn
Claims 3-year savings of $21.2M, an ROI of 1,389%, by using knowledge management to better deploy its professional services staff

Success Stories
Texas Instruments avoided spending $500M on a new silicon fabrication facility by leveraging internal knowledge of best practice in its existing plants
Skandia Insurance was able to set up its new office in Mexico in six months whereas previously it had expected this task to take seven years

Conclusions
Large data flows require software solutions
Knowing about customers and competitors drives the business
A spur to new ways of doing business
Computers and information technology part of the environment

Suggested Reading
The Knowledge Creating Company by Ikjiro Nonaka and Hirotaka Takeuchi
Intellectual Capital: The New Wealth of Organizations by Thomas Stewart
www.apqc.com--The American Productivity and Quality Council, a non-profit trade association; white paper-- If We Only Knew What We Know
Business Researcher’s Interest (Brint)-- www.brint.com/OrgLrng.htm

Apics12

by Dawny1962 on Jun 17, 2009

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