1. The document discusses knowledge management, defining it as capturing and sharing information within an organization to create value from intangible assets. 2. Examples are provided of companies like Buckman Laboratories and SageMaker that have implemented successful knowledge management systems using technologies like Lotus Notes and intranets. 3. The benefits of knowledge management include better knowledge of customers and competitors, which can improve sales, revenues, and employee expertise.

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

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

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

4. Two Approaches Computer solution People solution

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

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

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

8. Buckman System CompuServe Buckman Labs Internet

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

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

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

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

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

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

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

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

17. SageWavePersonalized Interface

18. Licensed B-to-B Content

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

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

21. 2: Improve sales with “intelligence” Benetton, Italy. Produces “mass-customized” apparel to fit latest trends. React to customer “actions” Ritz Carlton. Staff required to note information from every personal encounter with guest. Data on guests are stored for next visit pampering.

22. 3: Improve Revenues by Leveraging Knowledge Skandia AFS, Sweden. Formal procedure to analyze startups of new financial products, reduced time to profit from 2 years to 6 months WM-Data, Sweden. Links non-financial indicators to strategy--produces an intangible assets report annually.

23. 4: Grow Employee Expertise Honda. Given employees information outside their job area Ernst & Young. Employee database matched to information from client calls. Hot tips are passed to people who need the information.

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

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

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

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

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

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

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