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Confidential | Author name 1 | Author name 2 | Date © Copyright IBM Corporation
Knowledge Management
System for New Produc...
KMS for NPDMTECH Consulting Service 2
Knowledge & Innovation
KMS for NPDMTECH Consulting Service 3
COMMODITY
PRODUCT
TECHNOLOGY
PRODUCT
PROLIFERATION
BUSINESSTRENDS
BUSINESSIMPACT
MAN...
KMS for NPDMTECH Consulting Service 4
The Transformation Process
Simplification
Integration
On Demand
By breaking down
bar...
KMS for NPDMTECH Consulting Service
Knowledge Management and Organizational
Learning are emerging paradigms in industry
s...
KMS for NPDMTECH Consulting Service 6
Knowledge
Drive Design
Collaborative
Engineering
Traditional
Engineering
ExtentofPro...
KMS for NPDMTECH Consulting Service 7
Categories of Product Innovation
Application Radical
Consumers perceive
significant...
KMS for NPDMTECH Consulting Service 8
Organization Baseline
Measurements
1. Leadership
1.1 Values and Vision
1.2 Managing ...
KMS for NPDMTECH Consulting Service 9
Business
Value
Process
Competency
StrategicTactical
Non-core Core
Infrastructure
Opt...
KMS for NPDMTECH Consulting Service
Knowledge Management can be supported
by exchange of information
– Individual Learning...
KMS for NPDMTECH Consulting Service
Knowledge explication, or on
knowledge capitalization
explication of tacit knowledge:...
KMS for NPDMTECH Consulting Service
Practical solutions require different
degrees of formalization
Ensure the utilization...
KMS for NPDMTECH Consulting Service 13
Agenda
What Is KM?
KM for New Product Development NPD
The Architecture of KMS fo...
KMS for NPDMTECH Consulting Service 14
Data
Theory
Information
Experience
Knowledge Understanding Wisdom
What is Knowledge...
KMS for NPDMTECH Consulting Service 15
Knowledge & Learning Framework
know don’t know
know
what we
know we
don’t know
what...
KMS for NPDMTECH Consulting Service 16
The Fundamental of KM
 The management of knowledge
from many diverse sources - by
...
KMS for NPDMTECH Consulting Service 17
Comprehensive Knowledge Management Framework
Culture
Leadership
Measurement
Technol...
KMS for NPDMTECH Consulting Service 18
The Knowledge-Based Theory
of the Firm
Individual
Competence
External
Structure
Int...
KMS for NPDMTECH Consulting Service 19
The Knowledge Strategy of
Affärsvärlden
Individual
Competence
External
Structure
In...
KMS for NPDMTECH Consulting Service 20
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
1
9
7
8
1
9
8
3
1
9
8
8
VA
AF
Sales Marg...
KMS for NPDMTECH Consulting Service 21
KM to Support High Performance
Product, Processes and Resources
 All relevant info...
KMS for NPDMTECH Consulting Service 22
Ten “Domains” of Knowledge
Management
Sources: Xerox
Capturing &
Reusing Past
Exper...
KMS for NPDMTECH Consulting Service 24
Key Knowledge Management
Principles
Information available to everyone by default
...
KMS for NPDMTECH Consulting Service 25
Knowledge Management Tools
Knowledge Management Tools
Workflow
Groupware
Data
Ware
...
KMS for NPDMTECH Consulting Service 26
The KM Maturity Model
Ref: V P Kochikar, PhD, Principal Knowledge Manager, Infosys ...
KMS for NPDMTECH Consulting Service 27
Ask New Questions
External
Structure
Internal
Structure
Individuals’
Competence
How...
KMS for NPDMTECH Consulting Service 28
The KM Maturity Model (1)
 Capability Maturity Model (CMM) states “continuous proc...
KMS for NPDMTECH Consulting Service 29
The KM Maturity Model (2)
Ref: Kochikar, V. P. "The Knowledge Management Maturity
M...
KMS for NPDMTECH Consulting Service 30
K. Protection vs K. Sharing
K.Protection
K. Sharing
KMS for NPDMTECH Consulting Service 31
Knowledge vs Relationship
P E
O
PE
O
Company A Company B
Personal Relationship
(tac...
KMS for NPDMTECH Consulting Service 32
KM in ICI
Aims of KM project
 To provide a basis for valuing the
knowledge in mon...
KMS for NPDMTECH Consulting Service 33
Agenda
What Is KM?
KM for New Product Development (NPD)
The Architecture of KMS ...
KMS for NPDMTECH Consulting Service 34
Positioning Breakthrough
Products
People use products to improve their
experience w...
KMS for NPDMTECH Consulting Service 35
Knowledge Model vs Business
Model
The Kantor/Gomory/Gover model of the marketplace ...
KMS for NPDMTECH Consulting Service 36
How Is Knowledge Embedded
in the Product?
R&D, management, and
advertising service...
KMS for NPDMTECH Consulting Service 37
The Change of the Company
Market Value
Professor Frank Lichtemberg of Columbia
Uni...
KMS for NPDMTECH Consulting Service 38
Industrial Age
Value model
Capability assets
•Individual
•organizational
Capital
& ...
KMS for NPDMTECH Consulting Service 39
The World of KM
From sharing with ourselves to sharing
with our customers and part...
KMS for NPDMTECH Consulting Service 40
Emergent generic KM business
strategies
 Knowledge replication
 i.e. banks, fast ...
KMS for NPDMTECH Consulting Service 41
What is a Knowledge
Business?
Says Professor Fumio Kodama
of Saitama University, T...
KMS for NPDMTECH Consulting Service
Build a model where KM provide the framework to bring
the product closer to the needs ...
KMS for NPDMTECH Consulting Service
Revenue Growth
• Percentage increase in sales proposals
per sales person
• Percentage ...
KMS for NPDMTECH Consulting Service 44
Mission
Strategy
Innovation
Feasibility Study
- Market
-Customer
- Technical
Busine...
KMS for NPDMTECH Consulting Service 45
First Product Correct
Integrated
Product/Process
Development
Product
/Process
Desig...
KMS for NPDMTECH Consulting Service
Business Process Models represent
control flow of business activities
THE DFKI PURCHAS...
KMS for NPDMTECH Consulting Service
An ideal Knowledge Management system would
answer manifold questions related to a give...
KMS for NPDMTECH Consulting Service 48
KM Initiatives for NPD (1)
Innovation
 Innovation takes place when different idea...
KMS for NPDMTECH Consulting Service 49
KM Initiatives for NPD (2)
Product Complexity
Useful
Communication
Games
Computer
...
KMS for NPDMTECH Consulting Service 50
Project
Decisions
CompetitiveAdvantage
Time Reduction
Strategic
Decisions
Actionabl...
KMS for NPDMTECH Consulting Service 51
Knowledge Value Driver
Knowledge Value Opportunity Sample Measure
Customer Intimacy...
KMS for NPDMTECH Consulting Service 52
Integration in Product Development
Integration in product development takes increa...
KMS for NPDMTECH Consulting Service 53
Matching customer requirement
with engineering and manufacturing
capabilities
The d...
KMS for NPDMTECH Consulting Service 54
3 Types of Knowledge Sharing in
NPD
Sharing knowledge of customers
 Refer to the ...
KMS for NPDMTECH Consulting Service 55
IPD Performance Measures
IPD performance measures are classified
into two categori...
KMS for NPDMTECH Consulting Service 56
Teamwork & Productivity
Indicators of high level of teamwork are:
 Timely conflic...
KMS for NPDMTECH Consulting Service 57
Time & Value
Time to market
 Values time to market would strive to get producers ...
KMS for NPDMTECH Consulting Service 58
Knowledge Sharing in IPD
Shared
Knowledge of
Customers
Shared
Knowledge of
Supplier...
KMS for NPDMTECH Consulting Service 59
Agenda
What Is KM?
KM for New Product Development NPD
The Architecture of KMS fo...
KMS for NPDMTECH Consulting Service 60
The Challenge of Knowledge Cycle
Product
Innovation
= Knowledge
Creation
Design Spe...
KMS for NPDMTECH Consulting Service 61
Knowledge Management
Process Framework
Strategic
Triggered by shifts in the
macro e...
KMS for NPDMTECH Consulting Service 62
Design of an iterative model of
technological innovation
KMS for NPDMTECH Consulting Service 63
The Organization From a
Knowledge-based Perspective
 Organization learning
Primar...
KMS for NPDMTECH Consulting Service 64
Innovation vs KM
Human Capital Customer
Capital
Organization
Capital
Knowledge
mana...
KMS for NPDMTECH Consulting Service 65
Communities of Practices
The Engine of Knowledge Creation and Use
OEM
OBM
Retail
N...
KMS for NPDMTECH Consulting Service
KM oriented on Business Process Management
BPMS-METHODOLOGY: PRODUCT/PROCESS-PHILOSOPH...
KMS for NPDMTECH Consulting Service
Knowledge Management adds a new quality
to Business Process Management
 Conventional ...
KMS for NPDMTECH Consulting Service
Objectives Of An Organizational Memory
Ensure the utilization of “formal” organizatio...
KMS for NPDMTECH Consulting Service 70
The Organization Architecture
Organization
TeamInter -Organization
Individual
Syste...
KMS for NPDMTECH Consulting Service 71
The “ideal” KMS
KMS for NPDMTECH Consulting Service 72
KMS Framework, Method and Tool
Org. Architecture
Knowledge
Assets
Measurement
Syste...
KMS for NPDMTECH Consulting Service 73
Developing the Knowledge Organization
Audit Design /
Implement
1. Analysis Business...
KMS for NPDMTECH Consulting Service 74
Knowledge Management System
Layout
KM
Systems
Ontology
KM Process / Apps Library
KM...
KMS for NPDMTECH Consulting Service 75
Knowledge Discovery in
Knowledge Bases
Processing and analysis of useful knowledge...
KMS for NPDMTECH Consulting Service 76
Knowledge
Strategy
Business
Strategy
Metrics
Incentives
Technical Infrastructure
Kn...
KMS for NPDMTECH Consulting Service 77
Knowledge processes clearly
defined and supported
The knowledge process must be act...
KMS for NPDMTECH Consulting Service 78
Agenda
What Is KM?
KM for New Product Development NPD
The Architecture of KMS fo...
KMS for NPDMTECH Consulting Service 79
Approaches of KM Software
KMS for NPDMTECH Consulting Service 80
Product Development Engineers have
an tremendous need for knowledge.
Transformation...
KMS for NPDMTECH Consulting Service 81
e-Portal
K. Management
Knowledge Based
Engineering
Explicit
Knowledge
Formalize
Con...
KMS for NPDMTECH Consulting Service 83
KMS Demo by PLM
KMS for NPDMTECH Consulting Service 84
KMS for NPDMTECH Consulting Service 85
Portal
What makes a portal, a portal? (Morrison)
Personalisation
Organisation on...
KMS for NPDMTECH Consulting Service 86
A Knowledge Portal consists
of several components.
Functions
Document
Management
Te...
KMS for NPDMTECH Consulting Service 87
Different functions have to be
combined into a useful entirety.
Functions
Personali...
KMS for NPDMTECH Consulting Service 88
Price to Do It?
How long do you need
to get those information?
How many people ne...
KMS for NPDMTECH Consulting Service 89
Deliverables of KMS to NPD
 System Thinking
Generate a big picture
perspective of...
KMS for NPDMTECH Consulting Service 90
Agenda
What Is KM?
KM for New Product Development NPD
The Architecture of KMS fo...
KMS for NPDMTECH Consulting Service 91
Business Transformation
“You can't manage intellectual assets unless
you know what ...
KMS for NPDMTECH Consulting Service 92
As- Is Current State
Technology
People
Process
• Do everything
• Overworked
• Capit...
KMS for NPDMTECH Consulting Service 93
To-Be Future State
Technology
People
+
+
Process
• “Expert” focus
• Capital rich
• ...
KMS for NPDMTECH Consulting Service 94
New Product Process Improvement
and Organization Learning
Operations
Phase I Phase ...
KMS for NPDMTECH Consulting Service 95
Model of KM Analysis
Ref: Ferrari, F. M. and J. C. d. Toledo (2004). "Analyzing the...
KMS for NPDMTECH Consulting Service 96
Critical Successful Factors
Achievable project scope with actionable
implementatio...
KMS for NPDMTECH Consulting Service 97
Teams vs Technology vs Learning
Team Technology Learning
Trust The building of posi...
KMS for NPDMTECH Consulting Service 98
Teams vs Technology vs Learning
Team Technology Learning
Virtual
Teaming
Real life ...
KMS for NPDMTECH Consulting Service
Business
drivers
Business
changes
Implement
tracking
system
Manage
performance
costs
B...
KMS for NPDMTECH Consulting Service
Benefits management is a critical path of
the Knowledge Management programme
Outputs
•...
KMS for NPDMTECH Consulting Service
Overview of the Benefits Management
Process
Identify the Key
Performance Metric
catego...
KMS for NPDMTECH Consulting Service 10
Some of the Ways in which we Measure our Efforts
Is Knowledge Being Retained and S...
KMS for NPDMTECH Consulting Service 10
• Increase in proposals per sales
person
• New revenue attributable to KM
based on ...
KMS for NPDMTECH Consulting Service 10
Knowledge Management Audit
Rate 1 (Not at all) — 5 (Very great extent)
Learning Cli...
KMS for NPDMTECH Consulting Service 10
Knowledge Management Audit (cont)
Quality of Work Life
7 There is a general
feeling...
KMS for NPDMTECH Consulting Service 10
 xxx
Critical Success Factor
Consistency and
Sustainability
How Gemini Consulting ...
KMS for NPDMTECH Consulting Service 10
Worst Practice: How to Block
Knowledge Transfers
Individual
Competence
External
Str...
KMS for NPDMTECH Consulting Service 10
Worst Practice
Internal Climate: Competitive
Organisation: In “Silos”
Systems: N...
KMS for NPDMTECH Consulting Service 10
•PDP
Diagnostics
•PDM Fastpath
•KM Auditing
•GCS-100
•Product Design
Services
MTECH...
KMS for NPDMTECH Consulting Service 11
Conclusion
In manufacturing, physical production activities are
increasingly becom...
Confidential | Author name 1 | Author name 2 | Date © Copyright IBM Corporation
THEND
stephenau@mtech.com.hk
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Knowledge Management System for New Product Development

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Examine how knowledge management system can enable product innovation and development.

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Knowledge Management System for New Product Development

  1. 1. Confidential | Author name 1 | Author name 2 | Date © Copyright IBM Corporation Knowledge Management System for New Product Development by Stephen AU MTECH Engineering Co.,Ltd.
  2. 2. KMS for NPDMTECH Consulting Service 2 Knowledge & Innovation
  3. 3. KMS for NPDMTECH Consulting Service 3 COMMODITY PRODUCT TECHNOLOGY PRODUCT PROLIFERATION BUSINESSTRENDS BUSINESSIMPACT MANUFACTURING COMPANY LOCAL GLOBAL Need to differentiate Brand strength Perceived value through design Customer centric Total experience - partnership - smart business World class Business Innovation
  4. 4. KMS for NPDMTECH Consulting Service 4 The Transformation Process Simplification Integration On Demand By breaking down barriers between lines of business, implementing enterprise-wide standards for five core processes: •Market planning •Product development •Procurement •Customer Care •Fulfillment To deliver unified processes across the value net—from suppliers to partners to employees to customers. This further increased efficiency, especially for product innovation initiatives like PLM As the business environment grows faster, less predictable and increasingly customer-driven, e- business on demand will allow us to respond quickly to changes and market opportunities. We have to migrate from production driven to knowledge driven enterprise for “Right At the First Time”
  5. 5. KMS for NPDMTECH Consulting Service Knowledge Management and Organizational Learning are emerging paradigms in industry shorter product life cycles, lean organizational structures, concurrent engineering efforts, globally dispersed virtual enterprises, enterprise reengineering, ... ... make knowledge management an urgent need for enterprises managers are biased towards non-technological issues, like human resource management, cultural aspects, organizational changes etc. ... ... which are crucial for KM, anyway several IT communities recently „discovered“ the area: workflow systems, CSCW, expert systems, case-based reasoning, intranets, data mining, document management systems, ... ... are considered to be useful for KM CURRENT SITUATION However, a commonly agreed-upon approach and methodology is still lacking.
  6. 6. KMS for NPDMTECH Consulting Service 6 Knowledge Drive Design Collaborative Engineering Traditional Engineering ExtentofProcess Change Extent of Product Change Incremental Product Family Additions Build to Order New Breakthrough Products Linear Innovation Customer Driven Innovation Radical Innovation Levels of Innovation The ability to develop and introduce standard products that meet or exceed the industry average cycle-time and incorporate innovations that follow the industry’s trends. The ability to dynamically recombine, modify, or tailor parts and assemblies into new or custom products based on customer demands The ability to develop and introduce breakthrough or “category-killer” products that appeal to entirely new user markets or dramatically expand existing market opportunities
  7. 7. KMS for NPDMTECH Consulting Service 7 Categories of Product Innovation Application Radical Consumers perceive significantly new benefits Producers in the industry perceive the technologies as only slightly new Consumers perceive significantly new benefits Producers in the industry perceive the technologies to be significantly new. Incremental Technical Consumers perceive only limited new benefits Producers in the industry perceive the technologies as only slightly new. Consumers perceive only limited new benefits Producers in the industry perceive the technologies to be significantly new. Technology Innovation CustomerBenefits HighLow HighLow
  8. 8. KMS for NPDMTECH Consulting Service 8 Organization Baseline Measurements 1. Leadership 1.1 Values and Vision 1.2 Managing For Results 1.3 Role Model Behavior 1.4 Fact-Based Actions and Principle-Based Actions 1.5 Communication 1.6 Environmental and Social Responsibility 2. Human Resources 2.1 Resource Planning & Staffing 2.2 People Development 2.3 Empowering Work Environment 2.4 Total Pay and Recognition 2.5 Leveraging Diversity 3. Business Process Management 4. Customer and Market Focus 5. Knowledge and Information 3.1 Business Process Management Principles 3.2 Management Processes 3.3 Operational Processes a) Time to Market b) Integrated Supply Chain c) Market to Collection d) Customer Services 3.4 Enabling Processes 4.1 Customer First 4.2 Customer Knowledge and Market Requirements 4.3 Market Segmentation & Coverage 4.4 Customer & Market Communications 4.5 Customer and Partner Relationships 4.6 Competitive and Technology Trends 5.1 Knowledge Sharing 5.2 Quality and Productivity Tools 5.3 Information Management 6. Results 6.1 Customer Satisfaction & Loyalty 6.2 Employee Motivation & Satisfaction 6.3 Market Share 6.4 Financial Results 6.5 Productivity 6.6 Profitable Revenue Growth Understanding & Measuring the Value of Knowledge
  9. 9. KMS for NPDMTECH Consulting Service 9 Business Value Process Competency StrategicTactical Non-core Core Infrastructure Optimization Business Process Innovation Infrastructure Operations Business-related Operations • CRM • Risk management • Process streamlining • Cultural dynamics • Adaptive strategies • Product portfolio • Disruptive technologies • Product elaboration • Marketing intimacy • Best practices mgnt • Logistics • Procurement • Finance Revenues Time Sustaining innovation Disruptive innovation Innovation - The Innovator’s Dilemma
  10. 10. KMS for NPDMTECH Consulting Service Knowledge Management can be supported by exchange of information – Individual Learning – continued training & experience – Learning by sharing experiences – cooperation & observation – Learning through communication – supply-driven learning – demand-driven learning – Learning through development of a knowledge repository – storing and monitoring lessons learned information externalization internalization socialization communication knowledge retrievalstorage knowledge information repository ORGANIZATIONAL LEARNING IT people tend to concentrate on either the communication / collaboration, or the repository aspects (Organizational Memory). individual learning IT support management
  11. 11. KMS for NPDMTECH Consulting Service Knowledge explication, or on knowledge capitalization explication of tacit knowledge:  the typical expert system approach  [KühnAbecker97]: cost-benefit problems  [Rittel72],[Buckingham Shum 97]: feasibility for “wicked problems”?  [DavenportJarvenpaa+96]: construction and maintenance problems capitalization on implicit and existing explicit knowledge:  existing documents and knowledge sources often severely underutilized  ease finding, access, and exploitation  increase utilization potential TWO COMPLEMENTARY APPROACHES
  12. 12. KMS for NPDMTECH Consulting Service Practical solutions require different degrees of formalization Ensure the utilization of “formal” organizational knowledge:  business rules, design guidelines, standard procedures, ...  ... can be formalized to allow automatic processing Enable sharing and reuse of experiences:  lessons learned, best practice reports, case bases, ...  ... can be stored as semi-structured electronic documents Ease the exploitation of implicit knowledge, personal knowledge, and knowledge contained in documents and databases  technical documentation, hypertexts, personal notes, minutes of meetings, graphics, images, product data sheets, business letters, ...  ... must be effectively accessible OBJECTIVES OF AN ORGANIZATIONAL MEMORY How can several kinds of knowledge synergetically interact?
  13. 13. KMS for NPDMTECH Consulting Service 13 Agenda What Is KM? KM for New Product Development NPD The Architecture of KMS for NPD PLM Technology to support the KMS Successful implementation of KMS
  14. 14. KMS for NPDMTECH Consulting Service 14 Data Theory Information Experience Knowledge Understanding Wisdom What is Knowledge? The Russell Ackoff Model description: What instruction: How to explanation: Why what is best: Care why doing things right doing the right things Vision & design: What could and should be done the futurethe past Knowledge & engineering: What has been done Michael Polanyi “ We can know more than we can tell.” Knowledge is the fuel of innovation Knowledge as information put to productive use. Knowledge emerges through shared contexts that are created through interaction.
  15. 15. KMS for NPDMTECH Consulting Service 15 Knowledge & Learning Framework know don’t know know what we know we don’t know what we don’t know we don’t know what we know we know what we don’t know we know What we Know & Don’t Know?
  16. 16. KMS for NPDMTECH Consulting Service 16 The Fundamental of KM  The management of knowledge from many diverse sources - by linking people to people to serve customers, people needing expertise with people who have expertise. They should be about connection, not collection.  Expeditionary marketing through mutually dependent learning  The integration of both explicit and tacit knowledge  The development of robust models for competitive architecture and organizational capability  New organizational models  New approaches to finance, decision making, and accounting  The management of technology represented in the form of intellectual property  A new innovation process  The process and tools through which these elements are integrated Knowledge Management Track / Level Management of information Management of people / process Organization Level “Re- engineering” “Organization Theorists” Individual Level “Specialists” - Learning “Psychologists” - Culture
  17. 17. KMS for NPDMTECH Consulting Service 17 Comprehensive Knowledge Management Framework Culture Leadership Measurement Technology Reward and incentive systems Initiation Modeling Repository Distribution & transfer Use Knowledge management activities Knowledge resources Human capital Structure capital Customer capital Retrospect Generation Value and norms Influences on knowledge management
  18. 18. KMS for NPDMTECH Consulting Service 18 The Knowledge-Based Theory of the Firm Individual Competence External Structure Internal Structure 3. How can the organisation’s customers, suppliers and other stakeholders improve the competence of the employees? 2. How can organisation’s employees improve the competence of customers, suppliers and other stakeholders? 6. How can we enable the conversations among the customers, suppliers and other stakeholders so they improve their competence? 4. How can we improve the conversion of individually held competence to systems, tools and templates? 9. How can the organisation’s systems, tools & processes and products be effectively integrated? 1. How can we improve the transfer of competence between people in our organisation? 5. How can we improve individuals competence by using systems, tools and templates? 8. How can the organisation’s systems, tools & processes and products improve the competence of the customers, suppliers and other stakeholders? 7. How can competence from the customers, suppliers and other stakeholders improve the organisation’s systems, tools & processes and products? $ Strategic Purpose: How can the value creation capacity of the whole system be maximised? The 9 Knowledge Strategy Questions
  19. 19. KMS for NPDMTECH Consulting Service 19 The Knowledge Strategy of Affärsvärlden Individual Competence External Structure Internal Structure •“Piggy-backing” •Journalists working in industry •Readers giving In-house seminars •Readers as advisors •Analysts give free seminars •Article policy to be “consultant” •Interns from industry, universities •High image executives and advertisers targeted •Advertisers = Readers •Free seminars for readers+advertisers •Create positive “buzz” •R&D into analytical models •Computerised article archive •Computerise models •Journalists -> Admin •Open office •Intangble Assets Monitoring •Flat organisation •Employee ownership •Recruit highly educated staff •Articles written by teams •No by-lines •Frequent role rotation • Swaps Sales <->journalists •Models used by analysts •Archives searched •Admin -> journalists •Other editorial systems •Advertiser access to readership data •Subscriber access to Industry analysis •Subscriber access to AFV own models •Readership statistics collected •Industry analyses collected •Advertiser statistics collected •JV with University $ Strategic Purpose: To support readers investment decisions by maximising the value creation of the whole system
  20. 20. KMS for NPDMTECH Consulting Service 20 -10% -5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 9 7 8 1 9 8 3 1 9 8 8 VA AF Sales Margin AF:Affärsvärlden. VA: Veckans Affärer Leveraging Intangibles Most important Factors  Higher education: Working smarter  Employee ownership: Retaining Competence  Close relations with selected customers: Learning while working  Collaborative Climate: Leveraging Competence Competence Internal Structure External Structure Internal Structure Leveraging Intangible Asset:
  21. 21. KMS for NPDMTECH Consulting Service 21 KM to Support High Performance Product, Processes and Resources  All relevant information available to make planning, produce and service decisions throughout the product lifecycle  Integrated sales, marketing, design, production and service  Focus on the CUSTOMER VALUE GLOBALIZATION 7X24X365 OPERATION ACCELERATED PRODUCT/ SERVICE CYCLES DISINTER- MEDIATION RISING CUSTOMER EXPECTATIONS SERVICE- BASED COMPETITION REDEFINITION OF VALUE CHANNEL SATURATION CUSTOMER
  22. 22. KMS for NPDMTECH Consulting Service 22 Ten “Domains” of Knowledge Management Sources: Xerox Capturing & Reusing Past Experiences Instilling Responsibility for Knowledge Sharing Sharing Knowledge & Best Practices Mapping Networks of Experts Building & Mining Customer Knowledge Bases Embedding Knowledge in: Products, Services Processes Driving Knowledge Generation for Innovation Understanding & Measuring the Value of Knowledge Leveraging Intellectual Assets Producing Knowledge as a Product D. Holtshouse Knowledge Initiative, Corp. Business Strategy ©1998 XEROX CORP. All Rights Reserved
  23. 23. KMS for NPDMTECH Consulting Service 24 Key Knowledge Management Principles Information available to everyone by default Information will be stored digitally Innovation in knowledge management will be encouraged Knowledge management will be global We will retain business and corporate memory Knowledge management will be business process driven Information/knowledge content will have individual and functional ownership Knowledge acquisition, sharing and learning will be key individual objectives Processes, policies and standards will evolve to make us more productive Natural work team needs will dictate knowledge structure Right5 information will be determined by personal choice Databases will be used for knowledge deployment, e-mail for communication
  24. 24. KMS for NPDMTECH Consulting Service 25 Knowledge Management Tools Knowledge Management Tools Workflow Groupware Data Ware - hous e Watercooler Communication Intranets Document Management Project Management Web Conference Case Base Reasoning Social Gathering Meeting, seminar,.. Brain Storming, Mindmap, Visual Thinking
  25. 25. KMS for NPDMTECH Consulting Service 26 The KM Maturity Model Ref: V P Kochikar, PhD, Principal Knowledge Manager, Infosys Technologies Limited, Electronics City, Bangalore 561229, India Kochikvp@inf.com
  26. 26. KMS for NPDMTECH Consulting Service 27 Ask New Questions External Structure Internal Structure Individuals’ Competence How can we capture data into systems supporting dialogue with customers? Which IT systems support tacit knowledge transfer? How can we maximize leverage of all intangible assets in working for customers? •How can we create an office space conducive to knowledge transfer? •How can we change our internal control systems to measure our contribution to the corporate strategy? •How can we improve our core competencies? •How we create events that transfer tacit knowledge? •How can we improve trust among people? How can we improve relations with customers and suppliers that bring intangible revenues? How can we build better relationships with those customers and suppliers that bring learning to our people?
  27. 27. KMS for NPDMTECH Consulting Service 28 The KM Maturity Model (1)  Capability Maturity Model (CMM) states “continuous process improvement is based on many small, evolutionary steps rather than revolutionary innovations” (Software Engineering Institute1993) Level Organizational Capability 1 Default Complete dependence on individual skills and abilities 2 Reactive Ability to perform tasks constituting the basic business of the organization repeatably 3 Aware Restricted ability for data-driven decision-making Restricted ability to leverage internal expertise.. Ability to mange virtual teams well 4 Convinced Quantitative decision-making for strategic and operational application widespread High ability to leverage internal and external sources of expertise Organization realizes measurable productivity benefits thru knowledge sharing Ability to sense and respond proactively to changes in technology and business environment 5 Sharing Ability to manage organizational competence quantitatively Strong ROI-driven decision making Streamlined process for leverage new ideas for business advantage Ability to shape change in technology and business environment Ref: Kochikar, V. P. "The Knowledge Management Maturity Model - A Staged Framework for Leverage Knowledge."
  28. 28. KMS for NPDMTECH Consulting Service 29 The KM Maturity Model (2) Ref: Kochikar, V. P. "The Knowledge Management Maturity Model - A Staged Framework for Leverage Knowledge." Key Result Area Level People Process Technology Default – ‘knowledge, we’ve got plenty of – what we need is to work hard’ -- -- -- Reactive – ‘We need to leverage all our knowledge, but we’re too busy to do that’ Knowledge Awareness Content Capture Basic Information Management Aware – ‘ At least we’ve made a beginning in managing our knowledge’ Central Knowledge Organization Knowledge Education Content Structure Management Knowledge Technology Infrastructure Convinced – ‘We’ve reached where we are by managing our knowledge well, and we intend to keep it that way’ Customized Enabling Content Enlivement K. Configuration Management Quantitative KM Knowledge Infrastructure Management Sharing – ‘We’re sharing knowledge across the organization, and are proud of it’ Expertise Integration Knowledge Leverage Innovation Management
  29. 29. KMS for NPDMTECH Consulting Service 30 K. Protection vs K. Sharing K.Protection K. Sharing
  30. 30. KMS for NPDMTECH Consulting Service 31 Knowledge vs Relationship P E O PE O Company A Company B Personal Relationship (tacit level) Organizational Relationship (explicit level) O = Organizational Capital. P = Human Capital. E = External Capital. Boss A Boss B
  31. 31. KMS for NPDMTECH Consulting Service 32 KM in ICI Aims of KM project  To provide a basis for valuing the knowledge in monetary terms  To determine the structure and extend of education and training required by employees who are concerned with the manufacturing process technology  To represent knowledge in the form of guidelines and procedures that may be used in direct problem solving and diagnostic work. Managing from the Knowledge Perspective Organizational Process Person Development GroupWare Expert System Information Science Ref: L.Gordon, J., C. Smith, et al. (1999). "Practical Approaches to Knowledge Management." In Applications and Innovations in Expert Systems VII: 17-32
  32. 32. KMS for NPDMTECH Consulting Service 33 Agenda What Is KM? KM for New Product Development (NPD) The Architecture of KMS for NPD PLM Technology to support the KMS Successful implementation of KMS
  33. 33. KMS for NPDMTECH Consulting Service 34 Positioning Breakthrough Products People use products to improve their experience while doing tasks. Tech Driven Form follows functions is no longer relevant High Low HighLow STYLE TECHNOLOGY Value Driven We are now in a period where form and function must fulfill fantasy Cost driven Style driven Ref: J.CAGA, C.M.VOGEL, ‘Creating Breakthrough Products’, 2002 Useful, Useable & Desirable
  34. 34. KMS for NPDMTECH Consulting Service 35 Knowledge Model vs Business Model The Kantor/Gomory/Gover model of the marketplace (Gover, 1993), showing di!erent drivers for knowledge management processes. Gover, J. E. (1993). "Analysis of US semiconductor collaboration." IEEE Transactions on Engineering Management 40: 104-113 OEM ODM OBM
  35. 35. KMS for NPDMTECH Consulting Service 36 How Is Knowledge Embedded in the Product? R&D, management, and advertising services necessary to bring the product to market. Do you know how may CPU in the new BMW 7 Series?  A car’s electronics cost more than the steel in it Chips are made mainly from silicon which is worth nothing. The value is in the design, the intellectual content, not the physical.
  36. 36. KMS for NPDMTECH Consulting Service 37 The Change of the Company Market Value Professor Frank Lichtemberg of Columbia University measured the ROI – a dollar spent on R&D returned 8 times more than a dollar spent on new machinery. A new machine helps you to do old work better – incremental improvement. R&D leads to innovation – to replace your competitor. Margaret Blair of the Brookings Institution, in 1982, the tangible assets accounted 62.3% of the company's market value, ten years later, they made up only 37.9% of the whole value. They’ve replaced inventory with information, substituted knowledge for fixed assets.
  37. 37. KMS for NPDMTECH Consulting Service 38 Industrial Age Value model Capability assets •Individual •organizational Capital & tools labor technology The Industrial Trend Capability Assets in Two Ages. The relative importance of capital and tools has diminished significantly in the Knowledge Age, while people with knowledge, technology , and businesses processes have become much more important . Knowledge Age Value model Capability assets •Individual •organizational Capital & tools Process labor technology Knowledge Tacit & explicit Ref: W. L. Miller, L.Morris, Four Generation R&D
  38. 38. KMS for NPDMTECH Consulting Service 39 The World of KM From sharing with ourselves to sharing with our customers and partners…. Fast to Market Customer Engagement The Market Place The World of Knowledge Management Lower Costs
  39. 39. KMS for NPDMTECH Consulting Service 40 Emergent generic KM business strategies  Knowledge replication  i.e. banks, fast food chains, retailers e.g. Toys ‘r’ Us, MacDonald’s, INTEL etc, all provide examples of conducting operations in precisely the same way wherever they are located world wide.  Knowledge diffusion/leveragability  is about “knowing what we know, and using it”. This seems to be the key strategy in most KM endeavours.  Knowledge innovation  which is concerned with knowing what comes next e.g. new products, new services, new ideas that might keep an organisation competitive.  Knowledge commercialisation  which is concerned with, what does the organisation know that it can sell, i.e.. Consultancy, products and services, e.g. British Gas plc have developed KM systems initially for their own organisational needs but which they now seek to promote externally for profit. (Prusak 2000)
  40. 40. KMS for NPDMTECH Consulting Service 41 What is a Knowledge Business? Says Professor Fumio Kodama of Saitama University, Tokyo: “If R&D investment begins to surpass capital investment, the corporation could be said to be shifting from being a place for production to being a place for thinking.”
  41. 41. KMS for NPDMTECH Consulting Service Build a model where KM provide the framework to bring the product closer to the needs of the customer Building on the current leading position in operations excellence KM will provide opportunities to leverage other value discipline areas Operations Excellence Customer Intimacy Product Innovation Future State Value Disciplines ? Customer Intimacy Operations Excellence Product Innovation Current State Value Disciplines ? Cost Reduction Collaborative Environment Performance Innovation Benchmark against best practice Revenue Growth Customer Satisfaction User Choice and Interaction Improved Quality
  42. 42. KMS for NPDMTECH Consulting Service Revenue Growth • Percentage increase in sales proposals per sales person • Percentage increase in cross selling due to better advice (include new products from new acquisitions) • New revenue attributable to KM (based on sales force feedback) Improved Quality • Increase in sales conversion ratio • Percentage of complaints due to poor advice Customer (Internal & External) User Choice and Interaction • User interaction (frequency, searches, documents accessed per session, amount of time spend per session) • % of employees accessing the KM solution per month and average time Customer Satisfaction • Customer satisfaction surveys • Number of complaints where processes and procedures are not adhered • Number and types of calls to Help Desk • Number of queries completed without hand-offs Cost Reduction • Decrease labour cost per proposal • Decrease expenses per proposal (e.g., travel costs) Collaborative Environment • Percentage of proposals using collaborative (team and virtual working) environment • R & D • Product Development • Sales and marketing programme Financial Business ProcessInnovation and Development Benchmark against best practice • Increase revenue from new services enabled by KM Performance Innovation • Frequency/quality of contributions • Specific solution innovations that can be traced to KM initiatives • Percentage of proposals that leverage “best practice” content (including reuse). • Percentage of proposals that employ “best practices” Benefits and measurements (Balance Scorecard)
  43. 43. KMS for NPDMTECH Consulting Service 44 Mission Strategy Innovation Feasibility Study - Market -Customer - Technical Business Strategy Idea Generation Product Design Brief Outline Tech Specification Concept Development Business Case Mock Up Market Analysis Cost Analysis User Testing Project Budget Design Development Prototype Market Testing Strategic Business Plan Production Development Manufacture Plan Tooling Pilot Production Manufacture Marketing Communication Sales & Distribution Promotion Plan Product Management Monitoring & Control Direction Seeking Opportunity Measure Exploit Opportunity Product Develop Make the Product Market Launch Create Revenue Go / No goGo / No go Go / No go Activity Deliverables Purpose STRATEGY CONCEPT PREPOSITION CONCEPT CONVERSION EXECUTIVE LAUNCH EXTEND New Product Development Stage Gate Product Development Process
  44. 44. KMS for NPDMTECH Consulting Service 45 First Product Correct Integrated Product/Process Development Product /Process Design Manufacturing Process Execution Product /Process Modeling & Simulation Traditional Processes & Controls Non-Traditional Processes & Emerging Technologies FPC Supporting Infrastructure Business Operations Management Sustaining FPC Culture Value Stream Integration Requirements- Driven Design Tool & Fixture Design Process Definition Process Planning Test & QA Planning Design Optimization Product/Process Design Integration Product Performance Modeling Process Capability & Variability Modeling Virtual Prototyping Tradeoffs & Optimization Equipment & Process Capability Models Prognostics Simulation-Based Machine Instructions Assembly, Packaging & Handling Material Processing Material Preparation Metrology Control Operations Control Process Control & Predictive Maintenance Information Control Additive Processes Material Processing Engineered Materials & Surface Reconfigurable Manufacturing Systems Hybrid Processes Subtractive Processes Future Transformations of Manufacturing Figure 1.2-1. The functional model for First Product Correct provides a framework for identifying R&D requirements according to specific areas of need. First Product Correct
  45. 45. KMS for NPDMTECH Consulting Service Business Process Models represent control flow of business activities THE DFKI PURCHASING PROCESS The main complexity of this process is hidden in few knowledge-intensive activities. Specify Demand Check Budget Support Demand supp.? no yes Reject Hardware or Software? yes no Specify HW/SW Details Specify Details price > 800,- ? yes Approve Demand appr. ? no yes Send Order no price > 800,- ? Update Purchasing Database yes Receive Invoice Sign Invoice Sign Invoice Install HW / SW Deliver Goods no yes Update Database Pay Invoice Allocat e Inv.no. Attach Inv.no. Hardware or Software? Receive Goods Receive Delivery Note
  46. 46. KMS for NPDMTECH Consulting Service An ideal Knowledge Management system would answer manifold questions related to a given knowledge-intensive activity Specify Demand Check Budget Support Demand supp.? no yes Reject Hardware or Software? yes no Specify HW/SW Details Specify Details price > 800,- ? yes Approve Demand appr. ? no yes Send Order no price > 800,- ? Update Purchasing Database yes Receive Invoice Sign Invoice Sign Invoice Install HW / SW Deliver Goods no yes Update Database Pay Invoice Allocat e Inv.no. Attach Inv.no. Hardware or Software? Receive Goods Receive Delivery Note – Are there general guidelines for buying computer devices? – Who bought a graphics card recently? – Are there any experiences with card Matrox Mystique? – Can anyone recommend a good graphics card? Which requirements can be derived for an Organizational Memory Information System which is able to answer such questions?
  47. 47. KMS for NPDMTECH Consulting Service 48 KM Initiatives for NPD (1) Innovation  Innovation takes place when different ideas, perceptions, and ways of processing and judging information collide. That in turn, often requires collaboration among various players who see the world in inherently different ways.  ‘The greater challenge in innovation is linking emerging technologies with emerging markets’ by John Seely Brown  Manufacturing is the process of material conversion. It is repetitive, benefits from variability reduction. On the other hand, product innovation is the process of knowledge conversion. It needs variability. Mass Customization  It requires a tight information exchange with customers, as well as the advanced production systems required to create “unique” products economically.  The key is gathering the right information on the spot. Francis, P. H. (2000). Product Creation - the heart of the enterprise: from engineering to e-commerce, The Free Press.
  48. 48. KMS for NPDMTECH Consulting Service 49 KM Initiatives for NPD (2) Product Complexity Useful Communication Games Computer Video etc………… Useable Materials User interface Reliability Environmental Safety etc…. Desirable Marketing Sales channel Customer services etc.……………. K. Quality K. Quantity K. Speed
  49. 49. KMS for NPDMTECH Consulting Service 50 Project Decisions CompetitiveAdvantage Time Reduction Strategic Decisions Actionable Decisions Access To Best & Latest Thinking Faster Access To Knowledge Minimizes Non-Informed Decisions Faster Problem-Solving Productivity Performance Faster Innovation Turn Knowledge Into Action Quickly (Pfeffer and Sutton 2000) It is possible that differences in organizational performance come from differences in what firms know. But that a much larger source of variation in performance stems from the ability to turn knowledge into action quickly.
  50. 50. KMS for NPDMTECH Consulting Service 51 Knowledge Value Driver Knowledge Value Opportunity Sample Measure Customer Intimacy Intimate knowledge of customers for the purpose of providing world class service, or to customize and target marketing of products and services Breadth & depth of customer purchases Intellectual Property Increasing and managing a portfolio of codified and/or patented knowledge that contributes to the financial value of the enterprise Value of patents Operation Excellence Experimenting with, researching and sharing best practices to increase quality of products, and serve and enhance performance Spread of best practices Innovation Expanding knowledge required to rapidly generate, produce and market new and innovative products and services Time to market Knowledge-Based Products Generating additional knowledge value in the value chain to deliver higher value, "intelligent" products, and establish uniqueness Number of knowledge- based enhancements Rapid Response Increasing adaptability, flexibility and responsiveness in a constantly changing environment Change management speed & efficiency
  51. 51. KMS for NPDMTECH Consulting Service 52 Integration in Product Development Integration in product development takes increasing ly complex forms to capture the synergy of Intra- and Inter- company integration and relationships:  Team integration  Forming a team with members from all appropriate functions  Intra-process integration  Managing the entire development project from its concept formulation through market introduction.  Resource integration  Giving the team the authority and resources to carry out the project  Chain integration  Involvement of customers and the supply chain for product development Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in integrated product development." European Journal of Innovation Management 7(2): 102-112.
  52. 52. KMS for NPDMTECH Consulting Service 53 Matching customer requirement with engineering and manufacturing capabilities The design process (sharing knowledge) Knowledge of customer requirements (present and future) Knowledge of engineering and manufacturing capabilities (internal capabilities and suppliers) Product development process performance •Teamwork •Development productivity Product development strategic initiatives •Value to customer •Time to market Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in integrated product development." European Journal of Innovation Management 7(2): 102-112.
  53. 53. KMS for NPDMTECH Consulting Service 54 3 Types of Knowledge Sharing in NPD Sharing knowledge of customers  Refer to the extent of sharing understanding of current customers’ needs and future value to customer creation of opportunities among product development members. Sharing knowledge of internal capabilities  Refer to the extent of sharing understanding of the firm’s internal design, process and manufacturing capabilities among product development members.  The key is how many different functional specialists are aware of strengths and weaknesses of various aspects of design capabilities, manufacturing processes, facilities, and other manufacturing capabilities. Sharing knowledge of suppliers’ capabilities  Refer to the extent of sharing understanding of the suppliers’ internal design, process and manufacturing capabilities among product development members Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in integrated product development." European Journal of Innovation Management 7(2): 102-112.
  54. 54. KMS for NPDMTECH Consulting Service 55 IPD Performance Measures IPD performance measures are classified into two categories: Process outcomes that look at the effectiveness of the IPD process in terms of teamwork and productivity. Product outcomes that look into how the products performed in terms of serving the firms’ strategic initiatives, such as value to customers and time to market. Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in integrated product development." European Journal of Innovation Management 7(2): 102-112.
  55. 55. KMS for NPDMTECH Consulting Service 56 Teamwork & Productivity Indicators of high level of teamwork are:  Timely conflict resolution  Effective decision implementation  Creative problem solving,  Effective communication  Good coordination of activities Development productivity is about the total costs incurred in all activities of the product development. It is measured by the overall technical and team performance in terms of efficiency, budget, schedule and innovation. Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in integrated product development." European Journal of Innovation Management 7(2): 102-112.
  56. 56. KMS for NPDMTECH Consulting Service 57 Time & Value Time to market  Values time to market would strive to get producers to market ahead of competitors, develop products on schedule and keeping improving on the previous time-to-market performance. Value to customer  It is measured in terms of the value of new products in meeting customer needs and expectations in the market place  It is also reflected in the product success in the market place and its creation of value to customers in terms of highly perceived product quality. Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in integrated product development." European Journal of Innovation Management 7(2): 102-112.
  57. 57. KMS for NPDMTECH Consulting Service 58 Knowledge Sharing in IPD Shared Knowledge of Customers Shared Knowledge of Suppliers Shared Knowledge of Internal Capabilities IPD Process Performanc e Time to Market Value to Customer H1 H2 H3 H4 H5 H1: The greater the extent of sharing K. of customers, the greater the extent of teamwork and development productivity H2: The greater the extent of sharing K. of suppliers, the greater the extent of teamwork and development productivity H3: The greater the extent of sharing K. of internal capabilities, the greater the extent of teamwork and development productivity H4: The greater the extent of teamwork and development productivity, the greater the extent of time to market H1: The greater the extent of teamwork and development productivity, the greater the extent of value to customer Improving overall product development may require strategic thinking on how critical components of knowledge should be shared among cross-functional team members Hong, P., F. D. Williams, et al. (2004). "Knowledge sharing in integrated product development." European Journal of Innovation Management 7(2): 102-112.
  58. 58. KMS for NPDMTECH Consulting Service 59 Agenda What Is KM? KM for New Product Development NPD The Architecture of KMS for NPD PLM Technology to support the KMS Successful implementation of KMS
  59. 59. KMS for NPDMTECH Consulting Service 60 The Challenge of Knowledge Cycle Product Innovation = Knowledge Creation Design Specification Market surveys Concept ional experiences Skills Technologies Research Process Know-How Customer Requirements Market data WWW Service information Manufacturing Know-How Design Methods Quality information Standards Regulations Patent information K. Capture Product Data in KMS systems Irreversible Knowledge which is obsolete or lost after the project K.Loss Reversible Knowledge must be accessible and available for new projects K.Reuse
  60. 60. KMS for NPDMTECH Consulting Service 61 Knowledge Management Process Framework Strategic Triggered by shifts in the macro environment Assess Build / Sustain Divest Tactical Triggered by market- driven opportunity Capture Use Learn Contribute Cannot meet it Can meet it Lost opportunity From Personal Memory Organization Memory Knowledge repositories Relationships IT and communications infrastructure Functional skill sets Process know-how Environmental responsiveness Organizational Intelligence Failure External Sources ……
  61. 61. KMS for NPDMTECH Consulting Service 62 Design of an iterative model of technological innovation
  62. 62. KMS for NPDMTECH Consulting Service 63 The Organization From a Knowledge-based Perspective  Organization learning Primary locus of Intellect Locus of customization  Collaboration Direction of intellectual flow Communities of practices  Management change Method of leverage Human Capital Individual Competence Organization Capital Internal Structure Customer, Supplier & Competitors Capital External Structure How Effective the value creation is in the whole system? VALUE Ref: Stewart, T.(1997), “Intellectual Capital: The New Wealth of Nations”
  63. 63. KMS for NPDMTECH Consulting Service 64 Innovation vs KM Human Capital Customer Capital Organization Capital Knowledge management Learning Innovation management Kaizen Intellectual Capital management Rewarding Culture Talent retention Community of Practices Brand Pattern Process
  64. 64. KMS for NPDMTECH Consulting Service 65 Communities of Practices The Engine of Knowledge Creation and Use OEM OBM Retail Networks ODM Trading firms Component SuppliersBuying Office Sub-Contractor e.g. moldmaker Design House
  65. 65. KMS for NPDMTECH Consulting Service KM oriented on Business Process Management BPMS-METHODOLOGY: PRODUCT/PROCESS-PHILOSOPHY [Karagiannis, 1994] Company Products Processes Information Technology Employees based on created by done by Implementation of the processes Finished business processes How are the processes realized? How are the products made? Which products do we offer? What kind of improvement potential exists? Strategic Decisions Modeling Implementation Execution Evaluation What kind of knowledge is required?
  66. 66. KMS for NPDMTECH Consulting Service Knowledge Management adds a new quality to Business Process Management  Conventional business process models represent procedural knowledge  Business Process Management optimizes efficiency of the whole process  Knowledge Management improves the result of the process  It focuses on additional aspects:  Modeling  identification of required knowledge  analysis of existing knowledge  Implementation  structuring and recording of knowledge  strategies for the elimination of knowledge deficits  determining the access points  Execution  context-based information retrieval  active assistance Strategic Decision Modeling Implementation Execution Evaluation Organizational Memory Workflow-Management Systems Groupware- Products Document-Management Systems Internet Intranet etc. TOWARDS A KNOWLEDGE-MANAGEMENT METHODOLOGY
  67. 67. KMS for NPDMTECH Consulting Service Objectives Of An Organizational Memory Ensure the utilization of “formal” organizational knowledge:  business rules, design guidelines, standard procedures, ...  ... can be formalized to allow automatic processing Enable sharing and reuse of experiences:  lessons learned, best practice reports, case bases, ...  ... can be stored as semi-structured electronic documents Ease the exploitation of implicit knowledge, personal knowledge, and knowledge contained in documents and databases  technical documentation, hypertexts, personal notes, minutes of meetings, graphics, images, product data sheets, business letters, ...  ... must be effectively accessible How can several kinds of knowledge synergetically interact?
  68. 68. KMS for NPDMTECH Consulting Service 70 The Organization Architecture Organization TeamInter -Organization Individual System ProcessStructure Strategy Asset
  69. 69. KMS for NPDMTECH Consulting Service 71 The “ideal” KMS
  70. 70. KMS for NPDMTECH Consulting Service 72 KMS Framework, Method and Tool Org. Architecture Knowledge Assets Measurement System Develop K. Organization Strategic Planning KMS KM Systems Ontology KM Process / Apps Library KM Object Directory K Objects Store RDBMS Strategic Knowledge Navigator Knowledge Worker Navigator Knowledge System Administrator Knowledge Navigators K Server KM Process / Application KMS Application Server KM Systems Ontology KM Process / Apps Library KM Object Directory K Objects StoreK Objects Store RDBMS Strategic Knowledge Navigator Knowledge Worker Navigator Knowledge System Administrator Knowledge Navigators K Server KM Process / Application KM Process / Application KMS Application Server Organization TeamInter -Organization Individual System ProcessStructure Strategy Asset Organization TeamInter -Organization Individual System ProcessStructure Strategy Asset KM Strategy Common Language > Navigator Key Business Area K. Assets / Processes KM Strategy K. Objects K. Processes K. Systems K. Objects K. Processes K. Systems KM Case Key Business Area K. Assets K. Objects K. Assets
  71. 71. KMS for NPDMTECH Consulting Service 73 Developing the Knowledge Organization Audit Design / Implement 1. Analysis Business Processes 2. Leverage Knowledge Business Processes 3. Analysis Knowledge Networks 4. Leverage Knowledge Networks 5. Analysis the Technology 6. Leverage the Technology 7. Develop Knowledge Asset Schema 8. Integrate the Organization Architecture
  72. 72. KMS for NPDMTECH Consulting Service 74 Knowledge Management System Layout KM Systems Ontology KM Process / Apps Library KM Object Directory K Objects Store RDBMS Strategic Knowledge Navigator Knowledge Worker Navigator Knowledge System Administrator Knowledge Navigators K Server KM Process / Application KMS Application Server
  73. 73. KMS for NPDMTECH Consulting Service 75 Knowledge Discovery in Knowledge Bases Processing and analysis of useful knowledge in databases as requested Note that KD process comprises a number of tasks
  74. 74. KMS for NPDMTECH Consulting Service 76 Knowledge Strategy Business Strategy Metrics Incentives Technical Infrastructure Knowledge Application Personal Portal Content Store Leadership & Communication Individuals Communities of Practice Support Organization Knowledge Process PLAN: link knowledge strategy to business strategy to derive clear value COLLABORATE: gain involvement and commitment in all phases and integrate with broader organizational culture MEASURE: Design meaningful incentives to drive desired performance, link metrics to incentives and system goals PERFORM: knowledge processes integrated with business processes ENABLE: technology leverages and integrates with existing platforms and initiatives A comprehensive framework needs to guide implementations
  75. 75. KMS for NPDMTECH Consulting Service 77 Knowledge processes clearly defined and supported The knowledge process must be actively managed and monitored by the KM organization. Knowledge empowered Individual Leverage the CoP Virtual Team Leverage Experts Leverage Codified Knowledge 2b 2a 1 • Knowledge Coordinator • Knowledge Integrator • Subject Matter Experts Creates Knowledge Object Receives and Adds Value to Knowledge Object KM System Knowledge Worker Knowledge Integrator 1 4 2 3 KM Archive 5 Receives and Adds Value to Knowledge Object Subject Matter Experts KM System Knowledge Access Knowledge Contribution
  76. 76. KMS for NPDMTECH Consulting Service 78 Agenda What Is KM? KM for New Product Development NPD The Architecture of KMS for NPD PLM Technology to support the KMS Successful implementation of KMS
  77. 77. KMS for NPDMTECH Consulting Service 79 Approaches of KM Software
  78. 78. KMS for NPDMTECH Consulting Service 80 Product Development Engineers have an tremendous need for knowledge. Transformation of the economy Opening and liberalization of the markets Relevance of Product Engineering New Product Development Expansion Need for knowledge Knowledge Management New Technologies New Potentials Opportunity for Knowledge Management Information overflow Increasing share of new engineers I n s t i t u t f ü r W i r t s c h a f t s i n f o r m a t i k d e r U n i v e r s i t ä t S t . G a l l e n
  79. 79. KMS for NPDMTECH Consulting Service 81 e-Portal K. Management Knowledge Based Engineering Explicit Knowledge Formalize Consulting Methodologies Index Semantic Parser Translate Engines Expert Knowledge PDM & Knowledge Database Search End-user Information Technology for KM Knowledge Life Cycle Books of Knowledge K. Quality K. Quantity K. Speed
  80. 80. KMS for NPDMTECH Consulting Service 83 KMS Demo by PLM
  81. 81. KMS for NPDMTECH Consulting Service 84
  82. 82. KMS for NPDMTECH Consulting Service 85 Portal What makes a portal, a portal? (Morrison) Personalisation Organisation on the desktop Resource Division Tracking of activities Access & display of data stores Location of people and things
  83. 83. KMS for NPDMTECH Consulting Service 86 A Knowledge Portal consists of several components. Functions Document Management Teamwork Structured Content Personalization User Interface & Navigation Active Process Support I n s t i t u t f ü r W i r t s c h a f t s i n f o r m a t i k d e r U n i v e r s i t ä t S t . G a l l e n
  84. 84. KMS for NPDMTECH Consulting Service 87 Different functions have to be combined into a useful entirety. Functions Personalization Active Process Support Teamwork Document Management • Checklists • To Do list • Push • Workflow • Video Conferencing • Audio Conferencing • Discussion Groups • email • Find Experts • Message Boards • Chat Rooms • Meeting Planner • Subscribe to Contents • Versions Control • Access Control • Search / Navigation • Document Sharing • Append / Modify / Delete • Content Rating • Office Integration • Personal Inbox • Customizing • News Push • Scheduling • Profile Matches • Personal Favorites • Save Queries • History • Replication • Personal Directory • Hotlist
  85. 85. KMS for NPDMTECH Consulting Service 88 Price to Do It? How long do you need to get those information? How many people need to help you? How much & what do you save comparing with what you invest? You don’t have to pay a heavy price for moving heavy goods. You don’t have to pay a heavy price for moving valuable information.
  86. 86. KMS for NPDMTECH Consulting Service 89 Deliverables of KMS to NPD  System Thinking Generate a big picture perspective of the process and the project  New product development process Capable to capture, share and leverage knowledge to the NPD Focus on the needs of the multi- functional team, process flexibility and decentralization of the new product process  Learning by doing Use facilitators at important team meetings, e.g. planning, decision making or “stage gates”, lessons learned, etc.  After Action Review What is learned in the project is the best way to improve the process  Collaboration “The art of thinking together” provides better, more creative solutions Being used to accelerate the creation of mutual understandings within the work group  Experimentation Use DMU to test concepts with stakeholders  Talent retention Enable professionals to extend their performance beyond their personal limits, allowing them to achieve more inside the organization than they could on their own Ref: The Fifth Discipline, Peter Senge, Currency Doubleday, 1990
  87. 87. KMS for NPDMTECH Consulting Service 90 Agenda What Is KM? KM for New Product Development NPD The Architecture of KMS for NPD PLM Technology to support the KMS Successful implementation of KMS
  88. 88. KMS for NPDMTECH Consulting Service 91 Business Transformation “You can't manage intellectual assets unless you know what you are trying to do with them” TOM STEWART
  89. 89. KMS for NPDMTECH Consulting Service 92 As- Is Current State Technology People Process • Do everything • Overworked • Capital starved • Difficult to retain talent • Silo’ed (many separate PD functions) • Limited measurements • 3rd or 4th Quartile in performance • Legacy systems, many “home grown” • Some separate CAD/CAM & ERP/MRP systems in place
  90. 90. KMS for NPDMTECH Consulting Service 93 To-Be Future State Technology People + + Process • “Expert” focus • Capital rich • e-enabled human resources • Business outcome focus • Processes, not functions • Cohesive, simplified, standardized • Best practices applied – 1st Quartile • Current CAD/CAM technology • State-of-the-art PLM technology • Integrated NPD delivery model • Leverage and rationalization of all third parties
  91. 91. KMS for NPDMTECH Consulting Service 94 New Product Process Improvement and Organization Learning Operations Phase I Phase II Phase III Improvement 2 Architecture & capability development Improvement 1 Platform development Product development Market development Customer feedback Finance Model Ongoing research Project finance Return on investment finance Ref: Fig.8.1, W.L. Miller and L. Morris, “Fourth Generation R&D”, 1999
  92. 92. KMS for NPDMTECH Consulting Service 95 Model of KM Analysis Ref: Ferrari, F. M. and J. C. d. Toledo (2004). "Analyzing the knowledge management through the product development process." Journal of Knowledge Management 8(1): 117-129
  93. 93. KMS for NPDMTECH Consulting Service 96 Critical Successful Factors Achievable project scope with actionable implementation plan Trusted technology provider – partner Applicable IT solution with future extended capability Change management Process - Task Individual Organizational structure Value – culture
  94. 94. KMS for NPDMTECH Consulting Service 97 Teams vs Technology vs Learning Team Technology Learning Trust The building of positive team processes Open and accessible information Implicit knowledge made explicit through sharing of information Conflict Building relationships and mixing team talents Open and instant communications for working with conflict For deep levels of discussion and dialogue Dialogue A ‘core competency’ for developing effectiveness and facilitating interaction Enables a ‘higher order’ of communication Open and powerful communication for moving beyond single understandings Meetings Helps motivate individuals while building relationships and shared vision Asynchronous and synchronous meetings Synchronised action without specific action plan E-Practice Practice is performed in similar to work situations Establishes real work environments for practice Learning occurs through team processes without the fear of consequences Technology Teams Greater performance levels attained with teams using technology Technology enables teaming process of learning Captured team knowledge results in learning for new team members and the organisation
  95. 95. KMS for NPDMTECH Consulting Service 98 Teams vs Technology vs Learning Team Technology Learning Virtual Teaming Real life skills snd new team skills for enhanced learning Teaming without face to face contact Continuous learning possible without waiting for next meeting Networks Develop team members Enables instant access to information Implicit knowledge made explicit through sharing information between team Groupware Necessity for building relationships and bonding team members Enables instant communication for dealing with conflict Needed for reaching deep levels of discussion and dialogue Collaborat- ion Team vision and focus for the team User driven technological development enhanced Learning opportunities from failure Team Learning To align and develop teams to create results by challenging assumptions Immediate and continuous dialogue and sharing work whilst apart Collective intelligence greater than the sum of individual team members intelligence Knowledge Information transformed into knowledge Tools for collaboration, for capturing and storing knowledge Greater learning leads to greater organisational knowledge
  96. 96. KMS for NPDMTECH Consulting Service Business drivers Business changes Implement tracking system Manage performance costs Business caseRisks and Opportunities benefits Identification and structuring Realising and tracking Business Case Refine and continuous improvementOptimising the mix Design & Implement solution Business Direction ManagementBusiness Needs Review and refocus Overview of Benefits and performance management cycle
  97. 97. KMS for NPDMTECH Consulting Service Benefits management is a critical path of the Knowledge Management programme Outputs • Opportunity identification • Opportunity prioritisation • Project justification • Top level stretch target • Project ROI and NPV based on quantified financial benefits Tasks • KPI development • Target setting • Prioritisation review • “Refine” business case • Agreed performance targets for streams • Agreed performance tracking mechanism • Feedback on issues, risks and “early wins” • Management reports on performance vs. target Steps Business Case Design Solution ImplementationProject Phase Business Case Development Performance Target Development Performance Tracking Management • Review ,refine and refocus • Continuous improvement Performance Management Benefits Management
  98. 98. KMS for NPDMTECH Consulting Service Overview of the Benefits Management Process Identify the Key Performance Metric categories Break business case into key categories (balance scorecard) Match Business Case against key business processes Baseline current performance Define performance metrics for the business processes - where benefits will be realised Build Benefits performance requirements. Include intangible benefits Other industry standard performance measures Link to : - Vertical Market - Products Existing performance measures Chart planned vs actual benefit & costs over time
  99. 99. KMS for NPDMTECH Consulting Service 10 Some of the Ways in which we Measure our Efforts Is Knowledge Being Retained and Shared? Harnessing Organisational Knowledge success stories can our knowledge seekers better link with our knowledge owners participation in KBase work enthusiasm for new KBase work more responsive to clients move favourable responses from clients can we work faster are we more productive more aware of our experts more awareness about our expertise in specific areas more aware of what is possible reduced costs; reduced time
  100. 100. KMS for NPDMTECH Consulting Service 10 • Increase in proposals per sales person • New revenue attributable to KM based on sales force feedback Revenue Growth Customer Value Measures • Profile of user interaction (frequency, # of docs per session, document rankings) • #/% of employees with access • Frequency/quality of contributions, system-wide and by document • Periodic customer satisfaction surveys benchmarking against specific metrics User Activity Cost Reduction • Decrease labor cost per proposal • Decrease expenses per proposal (e.g., travel costs) • Decreased project start-up cost and associated increase in first year margins Revenue Measures Operational MeasuresInnovation Quality • Increase in proposal hit ratio Benchmarking • Specific solution innovations that can be traced to KM initiatives • #/% of proposals that leverage “best practice” content. • #/% of projects that employ “best practices” • Increase revenue from new services enabled by KM Performance Innovation Customer Satisfaction A sample balanced scorecard to measure knowledge management impact. Knowledge management metrics linked to business strategy
  101. 101. KMS for NPDMTECH Consulting Service 10 Knowledge Management Audit Rate 1 (Not at all) — 5 (Very great extent) Learning Climate 1 People feel free to speak their minds about what they have learned. 2 Mistakes made by individuals are considered constructive learning experiences. Process-Based 3 There are formal and informal structures designed to encourage people to share what they learn with their peers and the rest of the organisation. 4 There are channels of communication for collecting and sharing information from outside the organisation. Knowledge Competencies 5 There are people in the organisation gathering information, observing and sensing the internal and external environment and reporting back through formal and informal channels of communication. 6 There are many people who report back into the organisation the best sources of information and make these known to everyone through appropriate technologies. Harnessing Organisational Knowledge (1)
  102. 102. KMS for NPDMTECH Consulting Service 10 Knowledge Management Audit (cont) Quality of Work Life 7 There is a general feeling that it’s always possible to find a better way to do something. 8 Continuous improvement is practiced as well as preached. Big Picture 9 People have an overview of the organisation beyond their specialty and function and adapt their working patterns to it. 10 Cross-functional learning opportunities are expected and organised on a regular basis, so that people understand the functions of others whose jobs are different, but have related importance. Harnessing Organisational Knowledge (2)
  103. 103. KMS for NPDMTECH Consulting Service 10  xxx Critical Success Factor Consistency and Sustainability How Gemini Consulting deals with it • A purposeful incentive reward system must be sustainable. Only if stimuli to the active contribution to the knowledge management within the enterprise are consistent they will become purposeful. In this respect these incentives need to be consistent in themselves on the one hand. This means right from the beginning of its implementation a system is structured in a way that its essential components are conserved over a longer period of time. On the other hand, an incentive reward system for knowledge management should be a consistent component of the general incentive reward system of an enterprise. This is not meant to be a plea for a rigid, inflexible incentive reward system. The standard of quality that has been achieved should be taken into account as regards the stimuli. Open Communication • The communication to the staff member should already begin in the training period for the new staff member if not already in the period of recruitment for the potential staff member. The communication of the various incentives at Gemini Consulting starts in the member of staff´s first week at work at the latest Component of the Core Consulting Skills and Requirement for Recruitment • An incentive reward system is complemented by the fact that the capability of a potential staff member to apply his/her knowledge in favour of the enterprise and to share it with other colleagues especially belongs to the requirements for recruitment in the consulting business, of course. The change from material to immaterial values should be taken into account by particularly assessing these capabilities in the recruiting process. Integral part of the corporate culture • Another condition for the success of the knowledge management is for the corporate culture to support the readiness to mutual learning and to the active participation in the knowledge exchange. This cultural dimension often turns out to be a big hurdle when implementing the knowledge management. Globally Standardized Processes • Condition for success since international teams work on the most part of the projects. Therefore a uniform standard of assessment is indispensable. Knowledge Management as Service Offering • Essential element of the success of our knowledge management comes from Gemini Consulting together with Cap Gemini offering knowledge management as Service Offering worldwide. Finally our internal processes have also been benefiting and still benefit from the creation of know-how in this field which essentially contributes to their permanent improvement Information Technology • IT should merely be looked at as a necessary condition. Its essential contribution to success are the implementation and continuous improvement of appropriate tools corresponding to the size of the enterprise, the culture of communication and the level of evolution of the knowledge managementSource: © Gemini Consulting, 2000
  104. 104. KMS for NPDMTECH Consulting Service 10 Worst Practice: How to Block Knowledge Transfers Individual Competence External Structure Internal Structure Lack of professional support: “We need engineering support but we don’ t get it. They are never here.” Job security: “If you are the only one knowing something you have an empire and they can't dismiss you.” Lack of recognition: “Last week I helped out for 1/2 day. Next day I had to get up earlier to do my job.” Internal Trading: “We are competing against each other. If I do a job for some one I have to charge.” Learning not positive for career: “No-one goes a career for supervisor anymore.” Lack of tools training: “SAP is probably a good system but it needs a lot of training to work. But we have got no training so we can't use it properly.” No system to transfer (tacitly held) Expertise “It takes a lot of extra time to find faults now that xx (name) has left YY (department).” Lost Customer relation: “Earlier we knew the customers and they could call us and we helped them if something didn't work in the jobs we had done. We got to know the problems first hand and could often rectify on the spot.” No systems for customer support and access Reinventing the wheel: There are three different business groups developing databases, each around $500K. We didn’t know others were doing the same thing.
  105. 105. KMS for NPDMTECH Consulting Service 10 Worst Practice Internal Climate: Competitive Organisation: In “Silos” Systems: Not integrated Customers: Not involved Tacit Knowledge: Not understood Corporate strategy: Not known Managers: Not here Information policy: Don’t know,“Confidential” Rewards: $-incentives to Individuals, promotion to Hoarders Incentives to Learn: None (or little) Office: Closed design, managers in cubicles
  106. 106. KMS for NPDMTECH Consulting Service 10 •PDP Diagnostics •PDM Fastpath •KM Auditing •GCS-100 •Product Design Services MTECH Consultant Service MTECH Consultant Service – MCS through forming a KMS development community including Education, research & development Universities PLM Technology vendors IBM & Dassault Systemes Product design consultant Quadro consultant Industries - yourselves
  107. 107. KMS for NPDMTECH Consulting Service 11 Conclusion In manufacturing, physical production activities are increasingly becoming commodities, meaning that the value is increasingly in design, marketing, and management. Regional centers and 'world cities' are increasing their economic reach and span of control. So the trends in Hong Kong's manufacturing sectors indicate that Hong Kong can increasingly act as a co- ordination and management center for product making. We have to create and supply new design and manufacturing knowledge for product development rather than the physical products.
  108. 108. Confidential | Author name 1 | Author name 2 | Date © Copyright IBM Corporation THEND stephenau@mtech.com.hk

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