Knowledge Management@Work

ASPectx

10407 Christina Court

Louisville, KY 40223

www.aspectx.com

dawny@aspectx.com

(502) 254-9757

(502) 254-9793

What We’ll Cover

Definition Some case examples Benefits Drawbacks Impact on competitive intelligence

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”

Two Approaches

Computersolution

Peoplesolution

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

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

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

Buckman System

CompuServe

Internet

Buckman Labs

A Pragmatic Approach

Use commercial off-the-shelf software Lotus Notes CompuServe

Internet “option” Make a part of the workplace

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

What do we mean by

“knowledge”?

What are oursources?

Who has access to what?

What technology

do we need?

What Most Organizations HaveFinancial information systems

Sales / marketing

information systems

Electronic files

Paper documents

Answer: What Must Occur

Software and systems that integrate separate work activities

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

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)

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

SageWavePersonalized Interface

Licensed B-to-B Content

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

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

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.

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.

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.

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.)

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

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

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

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

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

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