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Knowledge Management as the Engine
of Business Process Improvement
Thomas W. Hoglund
Chief Knowledge Officer
EDS
tom.hoglu...
Topics



                                    The business environment for KM at EDS



                      Culture &
  ...
The Business Environment for KM at EDS


• World’s most experienced outsourcing company
• #87 on Fortune 500 list
• 130,00...
Our KM Vision

Vision
• Leverage the collective experience and expertise of all our
  employees to create, sell and delive...
Technology
                                                                 & Tools


KM Building Blocks                  ...
Culture &
                                                                                  Behavior


     Critical Types...
Culture &
                                                        Behavior


   Our Core Business Processes    Business
  ...
Culture &
                                                                                                     Behavior


...
Culture &
                                                              Behavior


   Top Priorities                      ...
Culture &
                                                                                                              Be...
Technology
                                                     & Tools


Process Knowledge Portal Example
              M...
Technology
                                          & Tools


     Portfolio Knowledge Example
                   Offerin...
Technology
                                                        & Tools


Experience Knowledge Example




            ...
Prioritizing - the Knowledge Pyramid                                                Content




                          ...
Sample Knowledge Pyramid - Sales                                                                Content




 Focus here
fo...
Build KM Processes Into Core Business                          Processes




     Knowledge Management Process
Create     ...
Feedback Loops                                         Processes




                            Sales
                   ...
KM Enables Process Improvement                       Processes




                   Embody the
                    Proce...
Knowledge Activities and Benefits                                                Processes




                        • M...
KM Enabling Process Improvement                                                                    Processes




         ...
How Do You Measure Business Impact?

         KM System                          Business Impact                    Busine...
KM Can Have Big Impact - Example

                                                         Contribution of Knowledge

    ...
Pilot Impact

“The knowledge repository is becoming the first place to look for competitive information and leading edge
s...
Top Five Lessons Learned


1. Technology is easy, changing behaviors is hard


2. KM opportunities exceed available bandwi...
Knowledge Management as the Engine
of Business Process Improvement
Thomas W. Hoglund
Chief Knowledge Officer
EDS
tom.hoglu...
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KM as the Engine of Business Process Improvement

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KM Chicago (September, 2004)

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Transcript of "KM as the Engine of Business Process Improvement"

  1. 1. Knowledge Management as the Engine of Business Process Improvement Thomas W. Hoglund Chief Knowledge Officer EDS tom.hoglund@eds.com (312) 399-6234
  2. 2. Topics The business environment for KM at EDS Culture & Behavior Business Processes Organization Technology Our process-oriented approach to KM Context Content & Tools Results & lessons learned 2
  3. 3. The Business Environment for KM at EDS • World’s most experienced outsourcing company • #87 on Fortune 500 list • 130,000 employees • Annual revenue of $21.5 billion • Manage 1 million software applications on 65,000 servers in 189 data centers around the globe • Support 3 million desktops • Respond to 20 million support calls per year • Process 2 billion credit card transactions per year • Process 1 billion health insurance claims per year 3
  4. 4. Our KM Vision Vision • Leverage the collective experience and expertise of all our employees to create, sell and deliver world class solutions that make our clients successful Strategy to get there • Apply KM to targeted, high-impact business processes • Implement discrete projects to drive measurable results • Use these projects to: – Begin driving broader cultural changes – Continue to enhance/standardize KM methodology, tools and skills 4
  5. 5. Technology & Tools KM Building Blocks Business Content Organization Processes Culture & Context Behavior Technology & Tools Content Organization Business Processes Culture & Context Behavior 5
  6. 6. Culture & Behavior Critical Types of Knowledge Business Processes Organization Content Technology Context & Tools To be successful, we need: From a KM standpoint, we need to: Create, Consistent processes to define, disseminate, use Process sell and deliver our offerings and provide Knowledge feedback Standard packaging of the Create, information needed to sell and disseminate, use Portfolio and provide Knowledge deliver a particular offering feedback Information re how we’ve actually Capture, Experience sold, configured and delivered disseminate, re- Knowledge offerings to our clients use and mine Access to appropriate Synthesize and External external information disseminate Knowledge needed to make decisions Efficient ways for teams to Provide templates Team create and monitor their work to share Knowledge for a particular pursuit/client 6
  7. 7. Culture & Behavior Our Core Business Processes Business Processes Organization Content Technology Context & Tools Define Sell Deliver Portfolio 7
  8. 8. Culture & Behavior Major Knowledge Flows Business Processes Organization Content Technology Context & Tools Portfolio Sales Delivery Operations Operations K Operations Ex Ex nal ter ter Offering ter Sales Delivery na na Process Process Process Ex lK lK K K K Team K Define Portfolio K Sell Deliver Portfolio Team Knowledge Portfolio K Team Knowledge Team Knowledge Sales Delivery Experience Experience Knowledge Knowledge Other Other Sales Delivery Teams Teams 8
  9. 9. Culture & Behavior Top Priorities Business Processes Organization Content Technology Context & Tools Sales Operations Sales Process K Define Portfolio K Sell Deliver Portfolio Sales Experience Knowledge Other Sales Teams 9
  10. 10. Culture & Behavior Knowledge Repositories Business Processes Organization Content Technology Context & Tools Portfolio Playbook Lin hc ka ar Se ge s/ s/S ge ea a nk rc Li Portfolio Knowledge h Sa e Sales Network knowledgeCentre dg le e s wl Pr o Kn oc e es nc s ie Kn er p ow Ex le es dg l Sa e Linkages/Search 10
  11. 11. Technology & Tools Process Knowledge Portal Example Major steps in sales process Specific tasks Specific deliverable 11
  12. 12. Technology & Tools Portfolio Knowledge Example Offering Standard Info Available 12
  13. 13. Technology & Tools Experience Knowledge Example Can navigate by company, offering, document type, etc. 13
  14. 14. Prioritizing - the Knowledge Pyramid Content Standards M at ur ow nt ow it y e nt -h of Harvest/ Co Bu Innovate Kn of si ne e lu ss Best Of Knowledge Va Pr oc at es h -w s ow Evaluate Kn Knowledge Artifacts of Business Processes Round Up Institutionalize Quantity of K 14
  15. 15. Sample Knowledge Pyramid - Sales Content Focus here for portfolio & process knowledge Standards E.g. Standard M Proposal Templates, sales Focus here for at experience ur process, portfolio offerings ow nt ow it y knowledge e nt -h of Harvest/ Co Bu Innovate Kn of si ne e Best Of Knowledge lu ss Va Examples: Pr Best of Breed Proposals; Best of Breed Work Plans oc at es h -w s ow Evaluate Kn Knowledge Artifacts of Business Processes Examples: Closed Sales, Lost Sales, Proposals, RFP Responses, Cost Models, Work Plans Round Up Institutionalize Quantity of K 15
  16. 16. Build KM Processes Into Core Business Processes Knowledge Management Process Create Capture Organize Distribute Apply Manage What steps in the Where in the business business process Are people process using K? can we should people use K? Value? leverage? Write Present Win Open Deliver Proposal Account Job Services Proposal Numbers Business Process 16
  17. 17. Feedback Loops Processes Sales Operations Feedback Sales Process K Feedback Define Portfolio K Sell Deliver Portfolio Sales Experience Knowledge Feedback Other Sales Teams 17
  18. 18. KM Enables Process Improvement Processes Embody the Process Integrate Supporting Design Applications Improved Process The Process Contribute Shared Discover External Improvement Artifacts Best Cycle Practices Monitor Synthesize Process Internal Measures Best Practices Harvest Shared Learnings 18
  19. 19. Knowledge Activities and Benefits Processes • Make process repeatable • Eliminate re- entering data • Shorten learning curve • Reduce errors Embody the • Reduce cycle time Process Integrate • Reduce time • Increase Supporting searching for applications efficiency Applications • Increase quality Design • Reduce cycle Improved time Process • Reduce time searching for information The Process Contribute Shared • Reduce duplication of effort Discover External Improvement Artifacts • Learn from Best Cycle world class Practices organizations Monitor • Understand how well the Synthesize Process process is Internal Measures working Best • Raise overall Practices Harvest level of • Avoid repeating quality and Shared mistakes efficiency Learnings • Identify innovative approaches 19
  20. 20. KM Enabling Process Improvement Processes • Make process repeatable • Eliminate re- entering data • Shorten learning curve • Reduce errors Embody the • Reduce cycle time Process Integrate • Reduce time • Increase Supporting searching for applications efficiency Applications Design • Increase quality Improved EA • Reduce cycle Process w Se I/We time k flo r vi b ces • Reduce time or searching for information W Conten The Process Contribute • Reduce Mgt duplication of Knowledge Shared Content effort Feeds Discover External Improvement Portal Artifacts t • Learn from Best Cycle ar h ds Practices BoDas world class organizations Collab oration Monitor • Understand how well the Synthesize Process process is Internal Measures working Best • Raise overall level of Practices Harvest • Avoid repeating quality and Shared mistakes efficiency Learnings • Identify innovative approaches 20
  21. 21. How Do You Measure Business Impact? KM System Business Impact Business Goals Contribution Behavior • Survey hours saved & • Productivity & extrapolate • Contributor penetration and Efficiency growth • Compare profitability of engagements adopting KM • Quantity of K contributed versus not & extrapolate • Types of items contributed • Collect anecdotes from top • Percentage of sales, pursuits users and engagements captured • Quality of K contributed • Survey sales leads re KM • Recognition of top contributors contribution to success Knowledge Re-Use Behavior • Knowledge re-use penetration + • Compare win rate of pursuits adopting KM versus not & = • Sales Growth & growth extrapolate • Number of K objects re-used • Collect anecdotes from top users • Recognition of top re-users Other • Survey delivery leads re KM • Leadership support contribution to client • Membership penetration & satisfaction growth • Compare service excellence • Service • Member satisfaction scores of engagements Excellence & adopting KM versus not & extrapolate Innovation Monthly Monthly Annually 21
  22. 22. KM Can Have Big Impact - Example Contribution of Knowledge 10,000 Store of Nine month pilot results Cumulative Contributions 8,000 Knowledge has increased 34X 6,000 Re-Use of Knowledge 4,000 80,000 2,000 Cumulative Downloads 70,000 Usage of Knowledge has 60,000 increased 12X 0 50,000 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Target 8 Target 9 Target 10 Target 11 Target 12 40,000 Period Ended 30,000 20,000 10,000 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Target 8 Target 9 Target 10 Target 11 Target 12 Period Ended 22
  23. 23. Pilot Impact “The knowledge repository is becoming the first place to look for competitive information and leading edge solutions. Our ability to provide thought leadership was the pursuit driver in influencing our client. Information for the development of the presentation took 30 minutes rather than two days. If we had not been able to access the knowledge repository and peers were required to respond, it would have taken an additional week to get the information". Easwaran Nadhan, Principal, BAS “I have used the knowledge repository several times over the past few months, primarily to reuse collateral. For example, I’ve used it to compile a presentation on EDS’ .NET capabilities and also to develop a presentation on EDS’ capabilities and experience with Web Hosting. Finding collateral on the repository has increased the credibility of my presentations by providing additional examples, case studies and details. I have saved about 40 hours so far this year by using material in the repository.” Phillip McMullen, Lead Technologist, Application Services “Knowledge repository utilization was a contributor to the win at XXXX for a $1.2 M portal and middleware development pursuit. We did the information gathering in 50% of the time (spent four hours vs. eight hours). Without the repository, it would have required a mass mailing and multiple follow-ups". B.J. Joshi, Managing Consultant, BAS 23
  24. 24. Top Five Lessons Learned 1. Technology is easy, changing behaviors is hard 2. KM opportunities exceed available bandwidth 3. Business strategy must drive KM strategy 4. Don’t let KM get ahead of process redesign 5. Users need to see how this improves their day 24
  25. 25. Knowledge Management as the Engine of Business Process Improvement Thomas W. Hoglund Chief Knowledge Officer EDS tom.hoglund@eds.com (312) 399-6234
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