The document discusses knowledge management, innovation, and productivity as integral parts of good governance. It covers recent developments in these areas, myths about knowledge management, and how innovation and productivity can be improved through standards and governance frameworks. Maturity models are presented as a way to evaluate knowledge management strategies and ensure good governance of cybersecurity and information technology.

1. Knowledge Management, Innovation & Productivity as an Integral Part of Good Governance Prof. K. Subramanian SM(IEEE, USA), SMACM(USA), FIETE, SMCSI,MAIMA,MAIS(USA),MCFE(USA) Director & Professor, Advanced Center for Informatics & Innovative Learning (ACIIL), IGNOU Honorary IT Adviser to CAG of India Ex-DDG(NIC), Ministry of Comm. & IT Emeritus President, eInformation Systems, Security, Audit Association President, Cyber Society of India

2. Agenda Recent Developments Myths of KM KM & Society Innovation & Productivity Standards Governance & Assurance Maturity Model

3. Important Notable Quotes “ Ever since men began to modify their lives by using technology they have found themselves in a series of technological traps.” Roger Revelle “ The law is the last interpretation of the law given by the last judge.”- Anon. “ Privacy is where technology and the law collide.” -- Richard Smith (who traced the ‘I Love You’ and ‘Melissa viruses’) "Technology makes it possible for people to gain control over everything, except over technology" John Tudor

4. Important Notable Quotes Productivity and Innovation are the strongest determinants of standard of living in the knowledge-based society, and provide the only direct route to recession-proofing the economy, and achieving broad economic and social benefits. Research performance is a robust predictor of productivity and innovation Innovation is at the heart of productivity growth

5. Typical Global Scenario Cyberspace is Dynamic, Undefined and Exponential Countries’ need dynamic laws, keeping pace with the technological advancements In a Virtual Space, Netizens Exist, Citizens Don’t! Trust in E-environments Lack of a mature IT society Absence of Single governing body Legislation High skill inventory Reduce fear of being caught Disgruntled Employees

6. Global issues with Governance of Cyberspace Information Technology & Business: current status and future Does IT matter? IT--enabled Business - Role of Information, Information Systems - In business - Role of information technology in enabling business - IT dependence Changing Role of the CIO Web 2.0 and 3.0 and governing cyberspace eBusiiness, eHealth, eBanking, eGovenance Current Challenges and Issues 12/02/07 Suny BUFF Lecture 27th Nov 2007

7. The drivers and emerging trends in the Digital/Information age Economic Drivers Technological Advances Political Drivers Social Drivers Citizens Community Organizations Other Governments Media Businesses Employees Government-Government Business-Government Citizen-Government Common Needs

8. These changes impact the fundamental way that organizations compete in the digital/information age . Industrial Age Foundation for Economic Development Digital/Information Age Control of Natural Resources Control of Knowledge Competitive Advantage Protection of Assets/Resources Open/Competitive Rapid (re)invention Increase Scale Expansion Business Environment Labor Intensive Jobs Process-Related Work Work Outsourced Decision Making Hierarchical Collaborative Key Assets Human Resources, Information & Technical Infrastructure Physical Resources Geographic Scope Global Regional

9. MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance ORGANIZATIONS INFORMATION TECHNOLOGY

10. 17 Myths of KM A. The nature of knowledge 1. “Knowledge is always a plus” transformational innovation and disruptive innovation 2. “Knowledge always helps innovation” 3. “Knowledge is sticky” 4. “The concept of knowledge is infinitely extendable”

11. 17 Myths of KM B. The nature of knowledge sharing 5. “Knowledge can be transferred” 6. “Knowledge-sharing is always a good thing”. 7. “Knowledge is more important than values” 8. “People always want to have better knowledge” 9. “The task of KM is to enhance the supply of knowledge” 10. “There are structural solutions to the lack of demand for knowledge” 11. “KM is the same for all organizations”

12. 17 Myths of KM C. The impact of knowledge sharing 12. “Knowledge is the only sustainable competitive advantage” 13. “Knowledge management will transform the business landscape” 14. “KM succeeded and no one knows it” 15. “It was the IT vendors who killed KM” 16. “The right question to ask is: how do you make knowledge-based organizations?” 17. “Knowledge is the raison d’etre for organizations and explains competitive advantage”

13. Principles of Good Governance Leadership Selflessness Integrity Objectivity Accountability Openness Honesty Humane Governance Should be Creative Uses Knowledge for National Wealth and Health creation Understands the economics of Knowledge High Morality

14. New Important Evolving Technologies 6T (IT, BT, NT, ET, CT and ST) Digital Cocooning, Insperience (Indoor + Experience), Web Identity (Avata, MiniHome,…), Consumption Curator, Ubitizen (Ubiquitous + Citizen), DMB (Digital Multimedia Broadcasting), TPS (Triple Play Service: Internet +Tel+ Broadcast) Grid Computing Ubiquitous Technology

15. New Environmental Changes Space : Real Space (Physical)  Cyber Space (Electronic)  Ubiquitous Space (Cross Space)  Time : Local Time  Global time (Need) through Real-time Systems  (Communication) Speed : Mbps  Gbps  Tbps (Tera: 10 12 )  Pbps (Peta: 10 15 ) (  Velocity of Light)  Media : Analog  Digital  Hybrid System : Centralized  Distributed  Integrated

16. The Connectivity Paradigm The Physical Connectivity The Economic Connectivity The Electronic Connectivity The Knowledge Connectivity The Spiritual Connectivity

18. How to be an Innovative Organization Create a Strategic Vision Establish Innovation as a Priority Create Organizational Structures that Promote Collaboration Establish Processes to Convert Idea to Innovations Allocate Resources Train Workforce on Creativity Tools Measure & Communicate Results Recognize Creative Behavior Reward Innovative Results

19. Innovation at all Levels Cost Culture Time to Implement Productivity Knowledge Retention People Retention Return on Vision

20. FUTURE CORPORATIONS’ NEW GENERATION HR POLICY To cover all type of Employees Must attract, hold and make productive people and develop long-term relationship, knowledge Outside information-gather, analyze and filter and use & reuse. Spot, Pat & Develop Change Agents Big Ideas-Fuse, Infuse & Diffuse Cost Reduced Controlled Assets To Grow and Nurture

21. KM & Community Despite the rise of virtual technologies, the physical work environment is still a major factor in knowledge workers performance Creating a knowledge friendly culture and a productive work environment, fending off bureaucracy; helping to create and nurture such a community Looking at Intellectual Capital created in relation to the resources deployed Managers of knowledge workers often have to be knowledge workers themselves; they are “ player/coaches”. Getting the right balance of playing and coaching is critical, but is quite difficult The fate of advanced economies depends upon making knowledge workers more productive Peter Drucker

22. Evaluating KM Strategies: Cost Culture Time to Implement Productivity Knowledge Retention People Retention Return on Vision

23. A combination of technology, innovation, leadership and inspired workforce-Ingredients for India Development The economic strength is powered by competitiveness - The competitiveness is powered by knowledge power. - The knowledge power is powered by Technology and Innovation. - The Technology and Innovation is powered by Resource Investment. - The Resource investment is powered by Revenue and Return on Investment. - The Revenue is powered by Volume and repeat sales through Customer Loyalty. - The customer loyalty is powered by Quality and value of products. - Quality and value of products is powered by Employee Productivity and innovation. - The Employee Productivity is powered by Employee Loyalty, employee satisfaction and working environment. - The Working Environment is powered by management stewardship. - Management stewardship is powered by Invisible leadership

24. Knowledge Work: Should have Autonomy & Associated Responsibility Continuous Innovation should be built into the KW’s Job. Continuous Learning & Continuous Teaching should be part of the Job Judgments rather than Measures dominates KWs’ Productivity

25. Knowledge Is Power Performance of Organisations What's the path to better learning, better collaboration, and a better way to measure how well or poorly an organization is performing? For many organizations, the answer is Knowledge Management.

26. Innovation & Productivity through ICE Technologies Quantity, Quality, Customization/Personalization & Price are equal Better Packaging and Integration of Services Efficient Delivery and Distribution Management TCO minimized & ROI Increased Stronger Brand Imaging and better Innovative & effective Marketing Better CRM and CEM Better SCM & ERM Better HRM (Innovative New Generation HR Policies for Growth & Employee Retention) Creation, Evaluation and selection of appropriate, affordable & sustainable Technologies

27. Evaluating KM Strategies

28. KNOWLEDGE WORKERS VS MANUAL WORKERS Own the means of Production Totally Portable and Carry Enormous Value (ASSET) Organization Need them than they need the Organization Jobs Needs them Convert this knowledge into Performance Productivity & increase the Capacity of the Organization Carry valuable Experience Knowledge grown with experience Useful only at their Place of Work They need a Job Knowledge Workers Manual Workers

29. Managing Interdependencies Critical Issues Infrastructure characteristics (Organizational, operational, temporal, spatial) Environment (economic, legal /regulatory, technical, social/political) Coupling and response behaviour (adaptive, inflexible, loose/tight, linear/complex) Type of failure (common cause, cascading, escalating) Types of interdependencies ( Physical, cyber, logical, geographic) State of operations ( normal, stressed /disrupted, repair/restoration ) .

30. CIO & CEO Business Led Info.strategy CIO & CMO Competitive Edge & CVP CIO & CTO Cost-Benefit Optimization CIO & CFO Shareholder Value Maximization CIO & CHRO Employee Performance and Rewards CIO & Business Partners Virtual Extended Enterprise CXO Internal Strategic Alliances

31. Capital Productivity (ROI, EVA, MVA) Material Productivity (60% of Cost) Managerial Productivity (Information Worker) Labour Productivity (Enabled by IW) Company Productivity Micro Factor Productivity Macro The Productivity Promise

32. “ IT Regulations and Policies-Compliance & Management” CREATIVITY VS COMMAND CONTROL Too much Creativity  results in anarchy Too much command & control  Kills Creativity We Need a Balancing Act  In IT Regulations and Policies-Compliance & Management

33. Lately, management realizes that there is a need to extend governance to information technology as well, and provide the leadership, organizational structures and processes that ensure that the enterprise’s IT sustains and extends the enterprise’s strategies and objectives.

34. With the increasingly demanded accountably of the Board of Management, an organization’s information and other intangible assets account for more than 80 percent of its market value,( IT Governance Institute® (ITGI®)). impairments to the integrity of information can be devastating to a company and its senior executives, who are held increasingly accountable for their organization’s financial information.

36. Governance Components Project Governance IT Governance Legal Governance Security Governance Human & Humane Governance

37. Cyber Governance Components Environmental & ICT Infrastructure Operational (logistics Integration) Technology (synergy & Convergence) Network (multi Modal Network) Management (HRM & SCM &CRM) Impact (feed-back correction) Operational Integration (Functional) Professional Integration (HR) Emotional/Cultural Integration Technology Integration

38. Standards, Standards, Standards Security Audit Interoperability Interface (systems/devises/comm.) Architecture/Building Blocks/Reusable HCI (Human Computer Interface) Process Environmental (Physical, Safety) Data Interchange & mail messaging Layout/Imprint

40. No one Standard Covers All………… Mission Business Objectives Business Risks Applicable Risks Internal Controls Review

41. BS7799-IS 15150 Vs COBIT Vs CMM Vs ITIL

42. ILM sophistication Level 1, the "reactive" phase is labor-intensive and automation-deficient. Level 2, the "efficient" phase features intelligent storage management. Level 3, the "responsive" phase manages business content. Level 4, the "business-driven " phase provides a unified view of both business and IT by taking advantage of a single database to look across the assets and business needs of the whole enterprise.

43. Transition: Insurance  Assurance & Assurance Layered Framework Insurance Audit Pre, Concurrent, Post IT Audit Environmental Operational Technology Network Financial Management Impact Electronics Continuous Audit Certification Assurance Management & Operational Assurance (Risk & ROI) Technical Assurance (Availability, Serviceability & Maintainability) Financial ASSURANCE Revenue Assurance (Leakage & Fraud) Legal Compliance & Assurance (Governance)

44. GOOD Governance Maturity Model

45. Lead IT governance—don't be led by it

46. “ Regulations and Policies-Compliance & Management” Pre-requisites Physical Infrastructure and Mind-set PAST : We have inherited a past, for which we cannot be held responsible ; PRESENT : have fashioned the present on the basis of development models, which have undergone many mid-course corrections FUTURE : The path to the future -- a future in which India and Indians will play a dominant role in world affairs -- is replete with opportunities and challenges. In a number of key areas, it is necessary Break from the past in order to achieve our Vision. We have within ourselves the capacity to succeed We have to embrace Integrated Security & Cyber Assurance Framework

47. 3/7/2009 IMT Ghaziabad Lecture Prof. KS@2009 March 2009 Assurance in the PPP Environment

48. Good Governance - Final Message “ In Governance matters Past is no guarantee; Present is imperfect and Future is uncertain“ “ Failure is not when we fall down, but when we fail to get up”

49. THANK YOU For Interaction: Prof. K. Subramanian [email_address] [email_address] [email_address] [email_address] Tele: 29533068