knowledge management is6800 group project by: kevin lin rajesh rajasekaran gautam kondru andrew orr

KNOWLEDGE MANAGEMENT

IS6800 GROUP PROJECT BY:

Kevin LinRajesh Rajasekaran

Gautam KondruAndrew Orr

2

You Should Know This Guy

• Kai-Fu Lee (李開復 ) – A Speech Recognition Expert• 1983, BA, Columbia Univ.• 1988, Ph.D., Carnegie Mellon Univ.• 1988~?, Assistant professor at Carnegie Mello

n Univ. (“Most Important Scientific Innovation” – Business Week)

• 1990~95, Apple Computer (Mgr. of Speech & Language Technologies Group, V.P. of Interactive Media Group)

• 1996~97, SGI (V.P. and G.M. of Web Products Div.), & Cosmo Software (President)

Microsoft, http://www.microsoft.com/presspass/exec/kaifu/default.mspxVisual Communications and Image Processing 2000, http://www.spie.org/web/meetings/programs/vc00/specevents.html

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You Should Know This Guy(Cont.)

• Kai-Fu Lee (Former) Corporate Vice President, Natural Interactive Services Division (NISD)• 1998, Founder, Microsoft Research Asia, China

• Feb., 2003, V.P. of NISD at Microsoft Corp• NISD’s products or services includes

– speech,

– natural language,

– advanced search and help, and

– authoring and learning technologies.

• July 2005, Kai-Fu Lee left Microsoft.

Mircosoft, http://www.microsoft.com/presspass/exec/kaifu/default.mspx

4


• Google to Open Research and Development Center in China • MOUNTAIN VIEW, Calif. – July 19, 2005 – Google

Inc. (NASDAQ: GOOG), developer of the award-winning search engine, today announced that it will open a product research and development center in China, and has hired respected computer scientist and industry pioneer, Dr. Kai-Fu Lee, to lead the operation and serve as President of the company's growing Chinese operations.

Google Press Center, http://www.google.com/press/pressrel/rd_china.html

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• Kai-Fu Lee Begins Work In Google's China Operations• TechWeb News – September 22, 2005 – Kai-Fu Lee, th

e center of an ongoing legal battle between Google Inc. and Microsoft Corp., has taken up his post as head of Google's China operations, about two weeks after a judge ruled that the former Microsoft vice president could work for the search engine, China's state news agency reported Thursday.

Tech Web News, http://www.techweb.com/wire/ebiz/171100255

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• Google’s Kai Fu Lee Out of Work Until January• Oct 28, 2005 – A federal judge issued a “final” order preve

nting Google from moving the Kai Fu Lee case to California. The order puts the case on ice until at least January, when it will be resumed in Washington state. Lee has been prevented from taking the reins of his new job overseeing Google in China since his controversial hiring from Microsoft in July. Meanwhile, Google hired Johnny Choua former executive in China of UTStarcom, to get working on China.

The Unofficial Google Weblog, http://google.weblogsinc.com/entry/1234000587065544/

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Turnover => Game over ?

• Voluntary employee turnover rate in IT industry in 2004: 14.90% ( >1/7 )*

• “There is no acceptable level of turnover if you're losing your best people,” says Diane Morello, an analyst at Gartner Inc.**

• Sharing & retaining knowledge is important

*Nobscot Corporation, http://www.nobscot.com/survey/us_voluntary_turnover_0804.cfm **A.S. Horowitz, You Can’t always guess what they want, Computerworld, (2005) http://www.computerworld.com/careertopics/c

areers/story/0,10801,104497,00.html

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Knowledge

• What is knowledge?• “Familiarity, awareness, or understanding

gained through experience or study”

• “The psychological result of perception and learning and reasoning”

Dictionary.com, http://dictionary.reference.com/search?q=knowledge

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Knowledge(Cont.)

• Two forms of knowledge• Explicit

• Represented by some artifact• Created with the goal of communicating with another person• ex. Documents, Videos

• Tacit• What knower knows• Derived from experience• Embodies beliefs and values• ex. Work experience

• Both forms of knowledge are essential for organizational effectiveness.

A.D. Marwick, Knowledge Management Technology, IBM Systems Journal, Vol.40, No.4, 814-830 (2001)

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Knowledge(Cont.)

• Knowledge is transferable• Organizational learning takes place as individuals

participate in the conversion of knowledge between tacit and explicit forms.

• Knowledge Transformation processes• Socialization (T to T – Tacit knowledge formation and

communication )• Externalization (T to E – Formation of explicit knowledge from tacit

knowledge)• Internalization (E to T – Formation of new tacit knowledge from

explicit knowledge)• Combination (E to E – Use of explicit knowledge)


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Knowledge(Cont.)

Tacit to Tacit (Socialization)Eg. Face-to-face meetings and discussions of shared experience; often informal

•NetMeeting, Lotus Sametime

•Synchronous collaboration (chat)

Tacit to Explicit (Externalization)Eg. Dialog within team, answer questions (formation)

•Asynchronous collaboration (Newsgroups, Forums)

•Annotation

Explicit to Tacit (Internalization)Eg. Distant learning, learning from a report

•Visualization

•Browsable video/audio of presentations

Explicit to Explicit (Combination)Eg. E-mail a report, document classification

•Text search

•Document categorization

• Sample technologies that can support or enhance the knowledge conversion processes


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Knowledge Management

• Definition of knowledge management (KM)• A.D. Marwick*

• KM is the name given to the set of systematic and disciplined actions that an organization can take to obtain the greatest value form the knowledge available to it.

• Malhotra** • “Essentially, it (KM) embodies organizational processes

that seek synergistic combination of data and information processing capacity of information technologies, and the creative and innovative capacity of human beings.”

*A.D. Marwick, Knowledge Management Technology, IBM Systems Journal, Vol.40, No.4, 814-830 (2001)

**Y. Malhotra, Tooks@work: Deciphering the knowledge management hype, The Journal for Quality and Participation, Vol.21, No.4, 58-60 (1998)

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Knowledge Management(Cont.)

• KM-focused activities• Generating new knowledge

• Accessing valuable knowledge from outside sources

• Using accessible knowledge in decision making

• Embedding knowledge in processes, products, and/or services

• Representing knowledge in documents, databases, and software

• Facilitating knowledge growth through culture and incentives

• Transferring existing knowledge into other parts of the organization

• Measuring the value of knowledge assets and/or impact of knowledge management

C. Marshal, L. Prusak and D. Shpilberg, Financial risk and the need for superior knowledge management, California Management Review; Vol.38, No.3, 77-101, (1996)

R. Ruggles, The state of the Notion: Knowledge Management in Practice, California Management Review, Vol.40, No.3, 80-89 (1998)

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KM Tools• Collaborative tools

• Groupware (Lotus notes, IntraNet, ExtraNet)• Meeting support systems• Corporate yellow pages (Knowledge directories)

• Content Management• Internet / WWW ( Information provider)• Document Management systems (e-filing)• Digital image processing systems

• Electronic Publishing systems• Business Intelligence• Data Warehousing• E-Commerce• Helpdesk systems

S. Moffett, R. McAdam, and S. Parkinson, Technological Utilization for Knowledge Management, Knowledge and Process Management, Vol.11, No.3, 175-184 (2004)

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KM: Global Statistics

• International Data Center (IDC) predicts 41% increase in global spending per year on knowledge services.

• Global spending on KM services projected to reach $13 billion in 2005.

• Global KM software market was worth $5.4 billion in 2004.

• “Knowledge Drain” & “Knowledge Deficit” cost Fortune 500 companies billions.

Sandhya, S. M., KM Market: Eyeing Exponential Growth, http://www.ciol.comnfolder/102071101.asp

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Drivers of KM

Competition - 50% Competitive advantage

Productivity

Peer pressure

Knowledge Assets – 28% Staff Turnover

Intellectual Capital

Knowledge Sharing

Intellectual property

Attainable results – 14% Results

Risk Reduction

D. Mason and D.J. Pauleen, Perceptions of Knowledge Management: a Qualitative Analysis, Journal of Knowledge Management, Vol.7, No.4, 38-48 (2003)

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Barriers to KMCulture - 45% Diverse culture

Organization culture

Trust

Communication

Sharing

Leadership – 22 % Leadership

Management

Education – 16% Lack of Awareness

Lack of Vision

Lack of Understanding

D. Mason and D.J. Pauleen, Perceptions of Knowledge Management: a Qualitative Analysis, Journal of Knowledge Management, Vol.7, No.4, 38-48 (2003)

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KM Implementation• Technology-Push Model

Journal of Knowledge Management VOL.9 NO 1 2005, pp.7-28

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KM – Technology push model

• CISCO SYSTEMS• Legendary faith in technologies for predictive

modeling and decision making

• Misplaced faith on their Forecasting systems

• Ended up writing off $2.2 billion in inventories and Sacking 8,500 employees

A key lesson of KM ignored by CISCO:PAST MAY NOT BE AN ACCURATE PREDICTOR OF THE FUTURE


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KM Implementation(cont.)

• Strategy-Pull Model


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KM – Strategy pull modelPARTNERS HEALTH CARE, BOSTON

- KM was implemented to the order-entry system because it’s central to their physicians delivering good medical care.

• Serious medical errors were reduced by 55% after KM was incorporated into their Order-entry system.

• PARTNERS found a new drug was beneficial for heart problems, orders for that drug increased from 12 to 81 percent.

Knowledge Management Review; Mar/Apr 2005;8;1; ABI/INFORM Global, Journal of Knowledge Management VOL.9 NO 1 2005, pp.7-28

FOREST LABORATORIES, INC.

- CASE STUDY

http://www.frx.com

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COMPANY PROFILE

• Founded in 1954.• Publicly traded on the NYSE, under the ticker

symbol FRX.• FOREST, based in NY, has operations on Long

Island in New Jersey, Missouri, Ohio, Ireland and United Kingdom.

• Identifies, develops and delivers pharmaceutical products that make a difference in people’s lives.

• Total of 5000 employees of which close to 2800 employees are in the sales force.

• $3 billion revenue for the FY 2005.

http://www.frx.com/about/index.aspx

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FOREST ACCOLADES

• Ranked among Fortune’s Fastest Growing Companies, five years (2000 – 2004).

• Ranked as one of The Best companies to sell for by selling power for four consecutive years (2001-2004).

• Ranked #32 on the Pharm exec 50 listing of the top 50 pharmaceutical companies by sales.

• Ranked #5 among the Best Performers of the S&P 500 in 2004.

• Ranked #1 on the Wall Street Journal Honor Roll for 2003.

http://www.frx.com/about/accolades.aspx

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FOREST - PRODUCTS

Established Therapeutic Areas

Central Nervous system - LEXAPRO, CELEXA, NAMENDA, CAMPRAL

Cardiovascular - BENICAR, TIAZAC

Respiratory - AEROBID

Relatively New Therapeutic Areas

Endocrinology Ob/Gyn – Pediatrics

Pain Management

http://www.frx.com/products/index.aspx

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Quote from our CEO• “Pharmaceutical

companies do more to benefit human health, reduce pain, prolong life, and ultimately create more longer lasting and intrinsic human happiness than any other business.”

- HOWARD SOLOMON

CHAIRMAN & CEO of FOREST

http://media.corporate-ir.net/media_files/irol/83/83198/reports/2005/FinancialHighlights.pdf

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FOREST–INCOME Statement summary [recent 5 yrs]

http://media.corporate-ir.net/media_files/irol/83/83198/reports/2005/FinancialData.pdf

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BUSINESS CHALLENGES AT FORESTBusiness process improvements at Forest Research Institute (FRI)

1. Advanced methods needed to handle R & D process associated with required regulatory submissions

2. Need to convert mountains of clinical data into meaningful information

3. Need to implement collaborative work practices for better business prospects

4. Increased needs to Digitize, Manage, Secure, Share, Utilize and Publish intellectual assets effectively for business growth

5. Streamline the often time-consuming internal audit process.

6. Need to effectively handle huge amount of documents especially R&D related contents.

Mr. Perry Venugopal, Assistant Director, INFORMATICS - FRI

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CEO QUOTE

• Quotes from a CEO of a major pharmaceutical company:

“In this industry, we make 2 products –

Drugs and Documents. Unfortunately, the authorities are only interested in the documents.”

http://www.documentum.com/products/collateral/industry/EPCAutumun_2002_Documentum.pdf

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DOCUMENT MANAGEMENT SYSTEMS

• What is DOCUMENTUM?- DOCUMENTUM is the life

sciences industry standard enterprise content management (ECM) platform for creating, capturing, managing, delivering, and publishing large volumes of content within and beyond the enterprise.

- De-facto standard for maintaining

documents, audit trails and optimize

R&D operations in the Pharmaceutical, life-sciences industry.

http://www.documentum.com

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FRI DOCUMENT MANAGEMENT SOLUTION

• The PR&D group - As a tool to edit, manage,

review and approve all CONTROLLED documents

• The Regulatory Affairs group - As a tool to collate, manage,

review and approve all the documents related to an FDA submission


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FRI DOCUMENT MANAGEMENT SOLUTION


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EMERGING CHALLENGES AT FOREST

FOREST spends approx. $25 million dollars this year to extend the business functionality of the existing SAP-ERP solutions in order to effectively manage the information flowing across the enterprise.

Mr. Brian Bilyeu, Senior Manager, SAP- Business operations,Mr. Lawrence Bua, Senior Manager, IT - Operations

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SAP KM AT FOREST - TO ACCESS SAP BEST PRACTICES RESOURCES


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FOREST-SAP ENTERPRISE PORTAL


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FRI R&D Process Improvements after the DOCUMENTUM implementation

• Better version control management of Forest’s intellectual assets

• Introduced collaboration work practices both internally and externally with its research partners and co-marketers.

• Eliminated the internal research audits required for demonstrating compliance with FDA regulations.

• Re-use the same content wherever appropriate (ie: NDA (US) vs. CTD (Europe/Japan) – same content- different presentation

• Rapid seamless access to the information enables FOREST to make GO/NO-GO decisions at the early stage of the product life-cycle

Mr. Perry Venugopal, Assistant Director, INFORMATICS – FRI,http://www.documentum.com/industry/life_sciences/research/index.htm

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Potential Business problems that can be avoided

• 50% of R & D expenses are during the clinical development phase.

• 7 million pages per year of clinical studies content to be managed.

• Each day late for the drug arrival to the market equals $1 million dollar in lost revenue.

• A missed paper-work with FDA or an outdated information to FDA during the New drug submission process can potentially delay the FDA approval process by SIX MONTHS.

http://www.documentum.com/industry/life_sciences/research/index.htm

Case Study

Siemens AG

39

Company Overview

• Siemens:

• Founded more than 155 years ago in Berlin, it is one of the world’s largest private organizations

• Employs 440,000 people in 190 countries.

• World leader in Information and Communications, Automation and Control, Lighting, Medical, Power and Transportation.

http://www.usa.siemens.com/index.jsp?sdc_p=ft4mls6uo1067030n1067030i1002155pc194z2&sdc_sid=29513262089& viewed 11/08/05

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Company Overview• Fortune Global 500 ranked Siemens AG, number on

e in the world's electronic industry in the year 2004

• Reported global sales of $91.3 billion in fiscal 2004 (10/1/03 - 9/30/04).

• Siemens has a decentralized corporate structure• Every unit has its own executive management, s

upervisory groups and regional units.

• Information and Communication Networks (ICN) • Major division within Siemens• Employs approx. 33,000 people • Generates revenues of €7,122 billion (roughly $

8 billion) in sales.


41

US Operations

• US Corporate headquarters in New York City

• Employs approximately 70,000 people in all 50 states and Puerto Rico.

• $16.6 billion in U.S. sales

• Trades on NYSE (SI)


42

Business Areas in US• Information and Communications

• Siemens provides systems, services and solutions to 70 percent of the Fortune 500.

• Automation and Control• Siemens' postal automation systems process more than 90 percent of the mail for the

United States Postal Service (USPS)

• Power • Power generation systems produce more than 1/3 of the electricity in the U.S.

• Medical• Processes some 157 million healthcare information transactions every business day.

• Research and Development• Dedicates $4 million and 5,700 employees to R & D• Generates more than 32 inventions every business day• In 2004, it invested approximately $6.2 billion in research and development.


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Global Clients• John Deere

SAP R/3 Rollout in Europe

• Lufthansa Baggage Management System

• National Employment Agency, RomaniaIT Infrastructure Services

• Siemens Medical SolutionsGlobal Remote Service for medical system

• UK Passport Service (UKPS)Efficient document processing

• VolkswagenInternet presentation Touran

• AudiIT Client Services

• BBCOutsourcing

• DaimlerChryslerService Process Management

• Department of Labor, South AfricaIT Outsourcing

• Fujitsu Siemens ComputersApplication Management for SAP solutions

• HSBCCall Center

http://www.siemens.com

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Knowledge Management at Siemens

Driver for KM initiatives:• Growing competition

• Deregulation in the core market in Germany

• Demand for Siemens to provide complex total solutions

• Transform company into a customer-oriented organization that provided customized solutions and services globally

Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2

45

Siemens KM Initiative

Concept:

• Information and Communication Networks group had to tap the comprehensive expertise and rich experience of its employees.

• A Knowledge Management System had to network the 17,000 sales and marketing employees across the globe.


46

Knowledge Management System

• Knowledge Library: A central component that would• Consist of thousands of knowledge bids• Have a web based entry form for users to input bids

• Urgent Request Forum: A place where any user can post a question and request immediate response.

• Rich Transmission Channels: • Community news bulletin boards• Discussion groups for certain topics• Live chat rooms

• Knowledge Library + Urgent Request Forum + Transmission Channels =

Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2http://www.europe.redhat.com/software/ccm/customers/siemens.gif

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ICN ShareNet• The first ShareNet version was developed with the help of

an external web-development company.

Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2 http://www.swiss.ai.mit.edu/~rfrankel/community/exsharedir.gif

48

ShareNet

http://ccm.redhat.com/doc/core-platform/5.0/acs-core/doc/images/found-item.gif

49

ShareNet Organization


50

Language Barriers

• Initial response to English-only ShareNet not very positive:• Some employees did not dare to post a

question in a forum where several thousand people could see their grammar or spelling mistakes

• Few others were of the opinion that in a German-based company the first language should still be German.

• Language problems were mitigated over time:• Users saw the personal benefit of

sharing and receiving knowledge.

Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2http://www.wmich.edu/ois/sap/programs/images/germany.map.jpg

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Cultural Differences• China

• 50 companies and 27 regional offices• Headcount of 25000

• Barriers:• Grammar and spelling mistakes might harm

“face” in the company. • What is “Face” ?

• Defined as what other people think of you

• Mitigation Practices:• Additional workshops for ShareNet

Managers• Chinese version of user handbook• Allowing to contribute in Chinese language

Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2 http://archives.cnn.com/2000/ASIANOW/east/01/08/tibet.lama.01/map.china.tibet.gif

52

Incentives• Bonus-On-Top: First reward system

• Reward to share knowledge across countries.

• Web-based system:• Shares were awarded for

• Entering knowledge bids into the library• Reusing knowledge• Responding to urgent requests and • Appraising one another’s contributions.

• Redeemable for gifts and prizes such as textbooks, siemens mobile phones, trips to knowledge exchange partners

• Skewed motivation :• Trading of shares• Neglect of actual jobs


53

Expansion and Consolidation

• Feb 2002:• Siemens ShareNet deployed in R&D division with

minor modifications to the system that suited the division

• July 2002:• 19,000 registered users • More than 80 countries.• Supported by 53 ShareNet managers• 20,000 knowledge bids populated in the system• Over 2.5 million ShareNet shares distributed


54

Cost Justification


55

Benefits and Limitations

• Siemens ShareNet supports the view point that Just-In-Time delivery significantly improves performance• “For insurance purposes an ICN project manager in South A

merica tried to discover how dangerous it was to lay cables in the Amazon rainforest. He posted an urgent request asking for help from anyone with a similar project in a similar environment. A project manager in Senegal responded within several hours. Obtaining the right information before the cables went underground saved Siemens approximately US$1 million.”

• Limitations of ShareNet:• Significant costs to maintain• Limited automation of supervision


56

CASE STUDY

57

• Formerly Andersen Consulting; Several Arthur Andersen consultants established Accenture in 1989

• Accenture formalized Business Integration – a framework for aligning people, processes and technology with business strategy.

• Went public with IPO on July 19, 2001 – now trades on NYSE under ACN

• Currently provides the full range of consulting, outsourcing and related technology services.

Company History and Overview

Accenture, http://www.accenture.com/Global/About_Accenture/Company_Overview/History/default.htm, November, 2005.

58

Company Profile

• Largest of the “Pure Consultancies”1

• 123,000 employees at 110 offices in 48 countries 2

• Net Revenues of $15.55 billion for fiscal year ending August 31, 2005 2

• Clients include: U.S. government, London Stock Exchange, BP, Cingular Wireless and Ford Motor Company 2

1 Paik Y., Choi D.Y., The shortcomings of a standardized global knowledge system: The case study of Accenture, Academy of Management Executive, Vol. 19 No. 2, pp 81-84, 2005.

2 Accenture, http://www.accenture.com/Global/About_Accenture/Company_Overview/History/default.htm, November, 2005.

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A Need for Knowledge Management

• As a pure consultancy, “Our people are our products”1

• They hold knowledge capital in the form of wisdom and experience.

• Accenture must make its knowledge capital available to its employees world-wide to achieve a competitive advantage.

• A KM system makes knowledge sharing throughout the organization possible.

Recycling Internal Know-How: Knowledge Management at Accenture, http://home.nyc.rr.com/mckeonsamples/article 3.html

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Definition of Knowledge Management

The company defines its own knowledge management as:

“The systematic process of achieving organizational goals through capture, synthesis, sharing and use of information, insights and experiences.”


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A Pioneer and Leader in Knowledge Management

• One of the first companies to invest in knowledge management.

• Began implementation of KM solutions in the early 1990s to help deliver quality solutions faster.

• Since then, Accenture has allocated more than $500 million to its KM system.

• KM staff of over 500: 150 focus on database administration.

Paik Y., Choi D.Y., The shortcomings of a standardized global knowledge system: The case study of Accenture, Academy of Management Executive, Vol. 19 No. 2, pp 81-84, 2005.

62

The Knowledge Xchange

• An electronic depository comprised of 7000 individual databases.

• Information can be accessed by consultants using Lotus Notes or the internet.

• KX stores internally generated knowledge grouped by market units and service lines.

• Content includes: presentations, proposals, methodologies, appropriate experts, knowledgeable peers and best practices.


63

Utilizing Knowledge Xchange

• Consultants can begin new projects with a KX search for past or similar projects.

• Searches are facilitated by a portal, similar to a web browser, with a search engine.

• A portal search will return a list of content matches and links within the KX.

• Consultants can also access a variety of external sources via the portal.


64http://webpages.dcu.ie/~scallanc/Andersens.ppt

65

The Knowledge Xchange IT Structure

• Directory Databases KX Front Page & KX Yellow Pages

http://webpages.dcu.ie/~scallanc/Andersens.ppt

66


• Reference Databases People and Places, Client Experience, Libraries by

Indusrty/Service


67


• Discussion Databases General forums for service and industry specific

discussions.


68


• External Databases Provide past or current news stories on industries and

companies grouped by market units and service lines.


69

Managing the Knowledge Xchange

• Teams of KM professionals are assigned to market units and service lines.

• Team members: • Ensure consultants contribute to KX• Train consultants in knowledge sharing• Identify relevant knowledge capital• Synthesize, streamline and clarify knowledge• Package and distribute knowledge• Develop vehicles for disseminating information and

knowledge• Consultants and KM professionals also use their

experience with KM at Accenture to advise clients on capturing and spreading knowledge in their own organizations.


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Measuring the Successfulness of KX

• Knowledge Xchange was considered so strategic that senior executives didn’t even ask for an ROI.1

• Success of KM is measured by the reduction in planning time, minimization of risk, improved quality and reduced costs. 2

• Example: A team resolves a software issue by posting a

question and receiving a solution overnight: Savings estimated at $200,000 of “fix-work” 1

1 Hildebrand, Carol, Processing Information: Andersen Consulting, CIO Magazine, August 1996.

2 Paik Y., Choi D.Y., The shortcomings of a standardized global knowledge system: The case study of Accenture, Academy of Management Executive, Vol. 19 No. 2, pp 81-84, 2005.

71

Shortcomings of Knowledge Xchange

• Accenture’s KX policies did not consider its “global vision” and allow for management flexibility at the local level.

• East Asian consultants were not as motivated as their U.S. counterparts to contribute to KX.

• All documents and abstracts had to be translated to English before submission to KX.

Paik Y., Choi D.Y., The shortcomings of a standardized global knowledge system: The case study of Accenture, Academy of Management Executive, Vol. 19 No. 2, pp 81-84, 2005.

72

Accenture’s Knowledge Management Journey

SmartSmart WorkplaceWorkplace

“Build it, and they will come”

Lotus Notes/KX

Discussion Databases

“Connections”

“Knowledge is actively managed”

Thought Leadership

Web-like technology

“Aggregation & Combination”

“Knowledge is aby-product”

Document Libraries

Communities

“Contributions”

KnowledgeKnowledge OutfittingOutfitting

KnowledgeKnowledge SharingSharing

EnablingEnablingInfrastructureInfrastructure

“Our best knowledge guides our activities”

Integrated performance support

Job tools are knowledge tools

“Continuous Learning”

1992 - 1995 1994 - 1997 1996 - 2000 1999 - 200?

Recycling Internal Know-How: Knowledge Management at Accenture,, http://home.nyc.rr.com/mckeonsamples/article 3.html

73

Best Practices for Knowledge Management

• Knowledge Management StrategyIdentify and Review the Organization’s Vision and

MissionIdentification of Relevant and Valuable KnowledgeAlign Knowledge Capture with Business Strategy

• Technology for Supporting KMEvaluate IT Tools Needed to Enable KM Evaluate Existing Workflow SoftwareAlign Knowledge and Business Strategies with IT

74

• Creating a Culture for Knowledge SharingIncentives for Contribution Encourage UtilizationMonitor Employee Usage

Global Integration

• Measuring Effectiveness of KMJustification for ImplementationQualitative Assessment of Value AddedQuantitative Measurement of Revenue Gained

Best Practices for Knowledge Management

75

Successful KM Initiatives

• Hoffmann-Roche saves over $1 million per day due to KM activities.

• KM program at HP reduced average call times by two-thirds & cost per call by 50%.

• Chevron estimates initial savings of $150M & $20M/yr from best practices program.

• Dow Chemicals: capitalizing on intellectual property saved $40M.

• Over six years, Schlumberger Corp. realized ROI of 668% on KM programs.

• Teltech clients enjoy ROI of 12:1 for KM effortsYelden, E. F., Albers, J. A., The Business Case for Knowledge Management, Journal of Knowledge Management Practices, August, 2004.

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Q&A