Knowledge Management (KM)
A Market Intelligence Perspective
A KM Webinar Presentation
Dian L. Chu
MBA, C.P.M.
Chartered Economist
June 18, 2009
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Agenda
 Market Intelligence (MI) Framework
 MI KM Modes & Cycle
 Critical Success Factors
 KM Application
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What is Knowledge Management?
 Knowledge management is the process
through which an organization
generates value from their intellectual
and knowledge-based assets.
 Types of knowledge
 Explicit: Patents, Trademarks, etc.
 Tacit: Knowledge stored primarily in an
individual’s head and shared in conversations
 Market Intelligence falls under both
Source: Knowledge Management Definition & Solutions, CIO.com
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Market Intelligence (MI) in Supply Chain
Management
“The process and the result of gathering
and analyzing information about the
aggregate forces (including economics) at
work in trade and commerce in a specific
service and commodity.”
~ Institute for Supply Management
Source: Market Intelligence for Supply Professionals, ISM, 2/7/2008
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Air Traffic for One Day Around the
World
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Main Drivers of Market
Intelligence
 Globalization – The World is Flatter!
 Merrill Lynch estimated over 85% of the
business information is un-constructed
data.
 Research by Outsell, Inc. found
average office workers spend
equivalent of $13,182 per worker per
year on info searching.
 No Technology Today Can Replace the
Power of Human Brain!
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Market Intelligence Matrix of Drivers
Strategic Intelligence
Available Information Analyzed in Context
Raw Goods Services
Materials Manufacturers Suppliers
Supply & Financial/Currency
Technologies
Demand Markets
Competitors Forces of Nature Geo-Politics
Dynamic Matrix – Constantly Changing
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Knowledge Network Drives
a Competitive Edge
Soft
Knowledge
Market Driven
Strategy &
Planning
Constantly
Monitor Agile Response
Gather to Changing
Analyze Market Conditions
Recommend
Identify New
Opportunities
Hard
Knowledge
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Source: Adapted from “Developing a Supply Market Intelligence Network”, Hanfield & McCormack, 2005, available through ISM

Optimize Resource Utilization
Typical Work Allocation Model
Without Market With Market
Intelligence Intelligence
Market
Intelligence
Source: Adapted from “Market Intelligence as a Critical Supply Management Tool“, MeadWestvaco Corp., May 2007, available through ISM
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Where Does the Info Come
From?
 Subscription-based research services
 Business, industry journals & magazines
 Trade organizations & associations
 Government agencies – e.g., DOE & BLS
 Internet (e.g. Yahoo Finance), TV,
Company presentations
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Potential Market Intelligence Role
 Budgetary Escalation Guidance
 Actual vs. Forecast Comparison
 Market Segment Research – Rigs, Bits,
Pressure Pumping Services, etc.
 Monthly Executive Newsletter focusing
on supply market trends and forecasts
 Ad Hoc project-based research and
forecast
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Agenda
 Market Intelligence (MI) Framework
 MI KM Modes & Cycle
 Critical Success Factors
 KM Application
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Source: KM, Access to Untapped Resources, a presentation by Dr. R.M. Kaplin, Oct. 5, 1997
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The Only Sustainable Advantage
 "The only sustainable advantage a
firm has comes from what it
collectively knows, how efficiently it
uses what it knows, and how readily
it acquires and uses new knowledge.“
~ Nagar Lai, 2006
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Knowledge Loss
 Change is a significant element in
loss of knowledge
– Management
– Organization
– Environment
 Loss by Consultant
 Memory Loss
Source: KM, Access to Untapped Resources, a presentation by Dr. R.M. Kaplin, Oct. 5, 1997
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Source: KM, Access to Untapped Resources, a presentation by Dr. R.M. Kaplin, Oct. 5, 1997
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MI & KM - Why Should
Companies Do This?
 “Intellectual assets are worth three to four times a
company’s tangible book value.” ~ Gartner
 Organizational Objectives
 Share and Identify Trends
 Increasing Competition
 Increasing Cross Functional Working Relationships
 Increased “Best Practice” Transparency across
business units
 Increased Staff Mobility
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Oil Industry KM Challenge
 Demographic: The median age at oil companies is
between 48 and 52.
 50% of oil and gas workers in North America will
reach retirement age by 2015. ~ Deloitte
 A wave of retirements in the next decade will strip
the industry of its most skilled and knowledgeable
workers.
 Expect a potential shortfall of skilled personnel
AGAIN by 2012 made worse by attrition of the
current economic downturn. ~ Royal Dutch Shell
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Objectives of KM
 Create knowledge repositories
 Improve knowledge access
 Enhance the knowledge environment
 Manage knowledge as an asset
Source: Adapted from KM, The Common Terms Used by Management, Who Should Learn & Why, Nagar Lai
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Market Intelligence KM Cycle
 Create
 Capture
 Refine
 Store
 Manage
 Disseminate
 Utilize
Source: Adapted from KM, Access to Untapped Resources, a presentation by Dr. R.M. Kaplin, Oct. 5, 1997
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Agenda
 Market Intelligence (MI) Framework
 MI KM Modes & Cycle
 Critical Success Factors
 KM Application
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Three Pillars of KM
Process Technology
People
Source: Adapted from KM, The Common Terms Used by Management, Who Should Learn & Why, Nagar Lai
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Market Intelligence
Implementation
 Leadership & Sponsor Support
 Dedicated Resources – In-House vs.
Outsourced
 Focused MI Resources Aligned with
Business Strategies
 Effective Communication & Info Dissimilation
- Early Success
 Enabling Technology
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Types of Technology Support
MI & KM
 Knowledge Repositories
 e-learning Applications
 Discussion and Chat
 Synchronous Interaction Tools
 Search and Data Mining Tools
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Knowledge-Based Organization
Adapted from “Sustainable Knowledge Management to Connect, Enrich & Inspire” presentation by Chan Meng Khoong, 3/30/08
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Agenda
 Marathon Overview
 Market Intelligence (MI) Framework
 MI KM Modes & Cycle
 Critical Success Factors
 KM Application
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Examples of KM Systems
 Electronic document management systems
 Collaboration tools to enhance knowledge
transfer within the organization.
 Enterprise knowledge portal (e.g., SAP)
into various KM systems.
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An Example of Enterprise Document
Management System (DMS)
 DMS is the system
used to manage and
maintain contract,
safety, and insurance
information.
 Accessible through
SAP
 DMS supplies and
receives info to and
from external systems
Source: Adapted from Marathon Oil Corp., Global Procurement DMS Training Overview,
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Other KM Tools – A Few Examples
 Digital Oilfield Applications
 Intranet – KM for a broader audience
 MS SharePoint – Personal & Project-Based for
more efficient knowledge sharing
 MS Office Communicator – Instant Messenger &
Chat
 Windows Netmeeting – Real-time Collaboration
through Data, Audio, Video & Conferencing
 Data Mining – MicroStrategy, Business
Warehouse, & OLAP, etc.
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What’s Next?
 Enterprise Content Management
- Mission: Provide a single, company-wide
solution to improve productivity, reduce risk
and lower costs associated with managing
the lifecycle of electronic and physical
information, including records.
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 Questions & Comments?
June 18,2009
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