knowledge management system for new product development

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.

KMS for NPDMTECH Consulting Service 2

Knowledge & Innovation


COMMODITY

PRODUCTTECHNOLOGY

PRODUCT

PR

OLIF

ER

AT

ION

BU

SIN

ES

S T

RE

ND

S

BU

SIN

ES

S I

MP

AC

T

MANUFACTURING

COMPANY

LOCAL GLOBAL

Need to differentiate

Brand strength

Perceived value through

design

Customer centric

Total experience

- partnership

- smart business

World class

Business Innovation


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”

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.


Knowledge

Drive Design

Collaborative

Engineering

Traditional

Engineering

Exte

nt o

f Pro

cess

Ch

an

ge

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


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


perceive the technologies to be

significantly new.

Incremental Technical

Consumers perceive only

limited new benefits


perceive the technologies as

only slightly new.

Consumers perceive only

limited new benefits


perceive the technologies to be

significantly new.

Technology Innovation

Cu

sto

mer

Ben

efit

s

HighLow

Hig

hL

ow


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


Business

Value

Process

Competency

Str

ate

gic

Ta

ctica

l

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

Re

ve

nu

es

Time

Sustaining innovation

Disruptive innovation

Innovation - The Innovator’s Dilemma


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


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


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?


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


Data

Theory

Information

Experience

Knowledge Understanding Wisdom

What is Knowledge?

The Russell Ackoff Model

description:

Whatinstruction:

How toexplanation:

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.


Knowledge & Learning Framework

know don’t know

kn

ow

what we know we

don’t know

what we don’t know we don’t know

what weknow we

know

what wedon’t know we know

What we Know & Don’t Know?


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 modelsNew approaches to finance,

decision making, and accountingThe management of technology

represented in the form of intellectual property

A new innovation processThe 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


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


The Knowledge-Based Theory of the Firm

Individual

CompetenceExternal

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


The Knowledge Strategy of Affärsvärlden

Individual

CompetenceExternal

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


-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1978

1983

1988

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:


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


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


Key Knowledge Management Principles

Information available to everyone by defaultInformation will be stored digitallyInnovation in knowledge management will be encouragedKnowledge management will be globalWe will retain business and corporate memoryKnowledge management will be business process drivenInformation/knowledge content will have individual and

functional ownershipKnowledge acquisition, sharing and learning will be key

individual objectivesProcesses, policies and standards will evolve to make us more

productiveNatural work team needs will dictate knowledge structureRight5 information will be determined by personal choiceDatabases will be used for knowledge deployment, e-mail for

communication


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


The KM Maturity Model

Ref: V P Kochikar, PhD, Principal Knowledge Manager, Infosys Technologies

Limited, Electronics City, Bangalore 561229, India

[email protected]


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?


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."


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


K. Protection vs K. Sharing

K. P

rote

ctio

n

K. Sharing


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


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

ProcessPerson

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


Agenda

What Is KM?

KM for New Product Development (NPD)





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

ST

YL

E

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


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


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.


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.


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

technologyKnowledgeTacit & explicit

Ref: W. L. Miller, L.Morris, Four Generation R&D


The World of KM

From sharing with ourselves to sharing

with our customers and partners….

Fast to

MarketCustomer

Engagement

The

Market

Place

The World of Knowledge

Management

Lower

Costs


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)


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.”


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

OperationsExcellence

CustomerIntimacy

Product Innovation

Future StateValue Disciplines

?

CustomerIntimacy

OperationsExcellence

Product Innovation

Current StateValue Disciplines

?

Cost Reduction

Collaborative Environment

Performance InnovationBenchmark against best practice

Revenue Growth

Customer SatisfactionUser Choice and Interaction

Improved Quality


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)


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

DevelopMake the

Product

Market

Launch

Create

RevenueGo / No goGo / No go Go / No go

Activity

Deliverables

Purpose

STRATEGYCONCEPT

PREPOSITIONCONCEPT CONVERSION EXECUTIVE LAUNCH EXTEND

New Product Development

Stage Gate Product Development Process


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


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

Demandsupp.?

no

yes

Reject

Hardware or

Software?

yes

no

Specify

HW/SW

Details

Specify

Details

price

> 800,- ?

yes Approve

Demandappr. ?

no

yesSend

Order

no

price

> 800,- ?

Update

Purchasing

Database

yes

Receive

Invoice

Sign

Invoice

Sign

Invoice

Install

HW / SW

Deliver

Goodsno

yes

Update

Database

Pay

Invoice

Allocat

e

Inv.no.Attach

Inv.no.

Hardware or

Software?

Receive

Goods

Receive

Delivery Note


An ideal Knowledge Management system would answer manifold questions related to a given

knowledge-intensive activity Specify

Demand

Check

Budget

Support

Demandsupp.?

no

yes

Reject

Hardware or

Software?

yes

no

Specify

HW/SW

Details

Specify

Details

price

> 800,- ?

yes Approve

Demandappr. ?

no

yesSend

Order

no

price

> 800,- ?

Update

Purchasing

Database

yes

Receive

Invoice

Sign

Invoice

Sign

Invoice

Install

HW / SW

Deliver

Goodsno

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?


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.


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


Project Decisions

Co

mp

eti

tive A

dvan

tag

e

Time Reduction

StrategicDecisions

ActionableDecisions

Access To Best & Latest ThinkingFaster Access To Knowledge

Minimizes Non-Informed DecisionsFaster Problem-Solving

Productivity PerformanceFaster 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.


Knowledge Value Driver

Knowledge Value Opportunity Sample Measure

Customer IntimacyIntimate 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 PropertyIncreasing and managing a portfolio of codified and/or patented

knowledge that contributes to the financial value of the enterprise

Value of patents

Operation ExcellenceExperimenting with, researching and sharing best practices to increase

quality of products, and serve and enhance performance

Spread of best

practices

InnovationExpanding knowledge required to rapidly generate, produce and market

new and innovative products and services

Time to market

Knowledge-Based ProductsGenerating additional knowledge value in the value chain to deliver

higher value, "intelligent" products, and establish uniqueness

Number of knowledge-

based enhancements

Rapid ResponseIncreasing adaptability, flexibility and responsiveness in a constantly

changing environment

Change management

speed & efficiency


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.


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



3 Types of Knowledge Sharing in NPD

Sharing knowledge of customersRefer 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 capabilitiesRefer 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’ capabilitiesRefer to the extent of sharing understanding of the suppliers’

internal design, process and manufacturing capabilities among product development members





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.





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




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.





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





Agenda

What Is KM?






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. CaptureProduct Data

in KMS

systems

Irreversible Knowledgewhich is obsolete or lost

after the project

K. L

os

s

Reversible Knowledgemust be accessible and

available for new projects

K.

Re

us

e


Knowledge Management Process Framework

StrategicTriggered by shifts in the

macro environment

Assess

Build / Sustain

Divest

TacticalTriggered by market-

driven opportunity

Capture

Use

Learn

Contribute

Cannot

meet it

Can

meet it

Lost

opportunity

From Personal Memory

Organization MemoryKnowledge repositories

Relationships

IT and communications

infrastructure

Functional skill sets

Process know-how

Environmental responsiveness

Organizational Intelligence

Failure

External Sources

……


Design of an iterative model of technological innovation


The Organization From a Knowledge-based Perspective

Organization learningPrimary locus of Intellect

Locus of customization

CollaborationDirection of intellectual flow

Communities of practices

Management changeMethod 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”


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


Communities of Practices

The Engine of Knowledge Creation and Use

OEM

OBM

Retail

Networks

ODM

Trading firms

Component

SuppliersBuying

Office

Sub-Contractor

e.g. moldmakerDesign House

http://www.conair.com./fashion1.html


KM oriented on Business Process Management

BPMS-METHODOLOGY: PRODUCT/PROCESS-PHILOSOPHY [Karagiannis, 1994]

Company

Products

Processes

Information

TechnologyEmployees

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?


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

MemoryWorkflow-Management

SystemsGroupware-

Products

Document-Management

SystemsInternet Intranet etc.

TOWARDS A KNOWLEDGE-MANAGEMENT METHODOLOGY


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?


The Organization Architecture

Organization

TeamInter -Organization

Individual

System

ProcessStructure

Strategy

Asset


The “ideal” KMS


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 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


Organization


Individual

System

ProcessStructure

Strategy

Asset

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


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


Knowledge Management System Layout

KM

Systems

Ontology


KM Object Directory

K Objects StoreRDBMS

Strategic

Knowledge

Navigator

Knowledge

Worker

Navigator

Knowledge

System

Administrator

Knowledge

Navigators

K Server

KM Process /

Application



Knowledge Discovery in Knowledge Bases

Processing and analysis of useful knowledge

in databases as requested

Note that KD process comprises a number

of tasks


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


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


Agenda

What Is KM?






Approaches of KM Software


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

DevelopmentExpansion

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


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


KMS Demo by PLM


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


A Knowledge Portal consists of several components.

Functions

Document

ManagementTeamwork

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


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


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.


Deliverables of KMS to NPD

System ThinkingGenerate a big picture perspective of the process and the project

New product development processCapable 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 doingUse facilitators at important team meetings, e.g. planning, decision making or “stage gates”, lessons learned, etc.

After Action ReviewWhat 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

ExperimentationUse DMU to test concepts with stakeholders

Talent retentionEnable 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


Agenda

What Is KM?






Business Transformation

“You can't manage intellectual assets unless

you know what you are trying to do with

them”

TOM STEWART


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


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


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


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


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


Teams vs Technology vs Learning

Team Technology Learning

TrustThe building of positive

team processes

Open and accessible

information

Implicit knowledge made

explicit through sharing of

information

ConflictBuilding relationships and

mixing team talents

Open and instant

communications for

working with conflict

For deep levels of

discussion and dialogue

DialogueA ‘core competency’ for

developing effectiveness

and facilitating interaction

Enables a ‘higher order’

of communication

Open and powerful

communication for

moving beyond single

understandings

MeetingsHelps motivate

individuals while building

relationships and shared

vision

Asynchronous and

synchronous meetings

Synchronised action

without specific action

plan

E-PracticePractice 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


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

NetworksDevelop team members Enables instant access to

information

Implicit knowledge made

explicit through sharing

information between

team

GroupwareNecessity 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

KnowledgeInformation transformed

into knowledge

Tools for collaboration,

for capturing and storing

knowledge

Greater learning leads to

greater organisational

knowledge


Business

drivers

Business

changes

Implement

tracking

system

Manage

performance

costs

Business

caseRisks and

Opportunities

benefits

Identification

and structuringRealising and

tracking

Business Case

Refine and

continuous

improvement Optimising the mix

Design &

Implement

solution

Business

Direction

ManagementBusiness Needs

Review and refocus

Overview of Benefits and performance management cycle


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 onperformance 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


Overview of the Benefits Management Process

Identify the KeyPerformance Metric

categories

Break business caseinto key categories(balance scorecard)

Match Business Caseagainst 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 industrystandard

performance measures

Link to : - Vertical Market

- Products

Existing performance measures

Chart planned vs actual benefit & costs over time


2

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


3

• 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


4

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)


5

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)


6

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


7

Worst Practice: How to Block Knowledge Transfers

Individual

CompetenceExternal

Structure

Internal

StructureLack 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.


8

Worst Practice

Internal Climate: Competitive Organisation: In “Silos”Systems: Not integratedCustomers: Not involvedTacit Knowledge: Not understoodCorporate strategy: Not knownManagers: Not hereInformation policy: Don’t know,“Confidential”Rewards: $-incentives to Individuals,

promotion to HoardersIncentives to Learn: None (or little)Office: Closed design, managers in cubicles


9

•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


0

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.