KNOWLEDGE MANAGEMENT

1
KNOWLEDGE MANAGEMENT

• IS6800 GROUP PROJECT BY
• Kevin Lin
• Rajesh Rajasekaran
• Gautam Kondru
• Andrew Orr

2
You Should Know This Guy

• Kai-Fu Lee (???) A Speech Recognition Expert
• 1983, BA, Columbia Univ.
• 1988, Ph.D., Carnegie Mellon Univ.
• 1988?, Assistant professor at Carnegie Mellon
  Univ. (Most Important Scientific Innovation
  Business Week)
• 199095, Apple Computer (Mgr. of Speech
  Language Technologies Group, V.P. of Interactive
  Media Group)
• 199697, SGI (V.P. and G.M. of Web Products
  Div.), Cosmo Software (President)

Microsoft, http//www.microsoft.com/presspass/exe
c/kaifu/default.mspx Visual Communications and
Image Processing 2000, http//www.spie.org/web/mee
tings/programs/vc00/specevents.html
3
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
• NISDs 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
You Should Know This Guy(Cont.)

• 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/p
ressrel/rd_china.html
5
You Should Know This Guy(Cont.)

• Kai-Fu Lee Begins Work In Google's China
  Operations
• TechWeb News September 22, 2005 Kai-Fu Lee,
  the 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/17
1100255
6
You Should Know This Guy(Cont.)

• Googles Kai Fu Lee Out of Work Until January
• Oct 28, 2005 A federal judge issued a final
  order preventing 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.weblog
sinc.com/entry/1234000587065544/
7
Turnover gt Game over ?

• Voluntary employee turnover rate in IT industry
  in 2004 14.90 ( gt1/7 )
• 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/surve
y/us_voluntary_turnover_0804.cfm A.S.
Horowitz, You Cant always guess what they want,
Computerworld, (2005) http//www.computerworld.com
/careertopics/careers/story/0,10801,104497,00.html
8
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/se
arch?qknowledge
9
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)
10
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)

A.D. Marwick, Knowledge Management Technology,
IBM Systems Journal, Vol.40, No.4, 814-830 (2001)
11
Knowledge(Cont.)

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

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
A.D. Marwick, Knowledge Management Technology,
IBM Systems Journal, Vol.40, No.4, 814-830 (2001)
12
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_at_work Deciphering the
knowledge management hype, The Journal for
Quality and Participation, Vol.21, No.4, 58-60
(1998)
13
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)
14
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)
15
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
16
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)
17
Barriers to KM
Culture - 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)
18
KM Implementation

• Technology-Push Model

Journal of Knowledge Management VOL.9 NO 1 2005,
pp.7-28
19
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

Journal of Knowledge Management VOL.9 NO 1 2005,
pp.7-28
20
KM Implementation(cont.)

• Strategy-Pull Model

Journal of Knowledge Management VOL.9 NO 1 2005,
pp.7-28
21
KM Strategy pull model

• PARTNERS HEALTH CARE, BOSTON
• KM was implemented to the order-entry system
  because its 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 200581
ABI/INFORM Global, Journal of Knowledge
Management VOL.9 NO 1 2005, pp.7-28
22
FOREST LABORATORIES, INC.
- CASE STUDY
http//www.frx.com
23
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 peoples
  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
24
FOREST ACCOLADES

• Ranked among Fortunes 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 SP
  500 in 2004.
• Ranked 1 on the Wall Street Journal Honor Roll
  for 2003.

http//www.frx.com/about/accolades.aspx
25
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
26
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
27
FORESTINCOME Statement summary recent 5 yrs
http//media.corporate-ir.net/media_files/irol/83/
83198/reports/2005/FinancialData.pdf
28
BUSINESS CHALLENGES AT FOREST

• Business process improvements at Forest Research
  Institute (FRI)
• Advanced methods needed to handle R D process
  associated with required regulatory submissions
• Need to convert mountains of clinical data into
  meaningful information
• Need to implement collaborative work practices
  for better business prospects
• Increased needs to Digitize, Manage, Secure,
  Share, Utilize and Publish intellectual assets
  effectively for business growth
• Streamline the often time-consuming internal
  audit process.
• Need to effectively handle huge amount of
  documents especially RD related contents.

Mr. Perry Venugopal, Assistant Director,
INFORMATICS - FRI
29
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/indu
stry/EPCAutumun_2002_Documentum.pdf
30
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
• RD operations in the Pharmaceutical,
  life-sciences industry.

http//www.documentum.com
31
FRI DOCUMENT MANAGEMENT SOLUTION

• The PRD 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

Mr. Perry Venugopal, Assistant Director,
INFORMATICS - FRI
32
FRI DOCUMENT MANAGEMENT SOLUTION
Mr. Perry Venugopal, Assistant Director,
INFORMATICS - FRI
33
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
34
SAP KM AT FOREST - TO ACCESS SAP BEST PRACTICES
RESOURCES
Mr. Brian Bilyeu, Senior Manager, SAP- Business
operations, Mr. Lawrence Bua, Senior Manager, IT
- Operations
35
FOREST-SAP ENTERPRISE PORTAL
Mr. Brian Bilyeu, Senior Manager, SAP- Business
operations, Mr. Lawrence Bua, Senior Manager, IT
- Operations
36
FRI RD Process Improvements after the DOCUMENTUM
implementation

• Better version control management of Forests
  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/indus
try/life_sciences/research/index.htm
37
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/r
esearch/index.htm
38
Case Study

• Siemens AG

39
Company Overview

• Siemens
• Founded more than 155 years ago in Berlin, it is
  one of the worlds 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_pft4mls6
uo1067030n1067030i1002155pc194z2sdc_sid295132620
89 viewed 11/08/05
40
Company Overview

• Fortune Global 500 ranked Siemens AG, number one
  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,
  supervisory 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.

http//www.usa.siemens.com/index.jsp?sdc_pft4mls6
uo1067030n1067030i1002155pc194z2sdc_sid295132620
89 viewed 11/08/05
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)

http//www.usa.siemens.com/index.jsp?sdc_pft4mls6
uo1067030n1067030i1002155pc194z2sdc_sid295132620
89 viewed 11/08/05
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.

http//www.usa.siemens.com/index.jsp?sdc_pft4mls6
uo1070267n1070267i1067030pc194z2sdc_sid295132620
89 viewed 11/08/05
43
Global Clients

• John DeereSAP 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
44
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.

Sven C. Voelpel, Malte Dous, and Thomas H.
Davenport, Academy of Management Executive, 2005,
Vol. 19, No. 2
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. 2 http//www.europe.redhat.com/softwa
re/ccm/customers/siemens.gif
47
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/rfran
kel/community/exsharedir.gif
48
ShareNet
http//ccm.redhat.com/doc/core-platform/5.0/acs-co
re/doc/images/found-item.gif
49
ShareNet Organization
Sven C. Voelpel, Malte Dous, and Thomas H.
Davenport, Academy of Management Executive, 2005,
Vol. 19, No. 2
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. 2 http//www.wmich.edu/ois/sap/progra
ms/images/germany.map.jpg
51
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/ASIAN
OW/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 anothers 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

Sven C. Voelpel, Malte Dous, and Thomas H.
Davenport, Academy of Management Executive, 2005,
Vol. 19, No. 2
53
Expansion and Consolidation

• Feb 2002
• Siemens ShareNet deployed in RD 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

Sven C. Voelpel, Malte Dous, and Thomas H.
Davenport, Academy of Management Executive, 2005,
Vol. 19, No. 2
54
Cost Justification
Sven C. Voelpel, Malte Dous, and Thomas H.
Davenport, Academy of Management Executive, 2005,
Vol. 19, No. 2
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 America 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 US1
  million.
• Limitations of ShareNet
• Significant costs to maintain
• Limited automation of supervision

Sven C. Voelpel, Malte Dous, and Thomas H.
Davenport, Academy of Management Executive, 2005,
Vol. 19, No. 2
56
CASE STUDY
57
Company History and Overview

• 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.

Accenture, http//www.accenture.com/Global/About
_Accenture/Company_Overview/History/default.htm,
November, 2005.
58
Company Profile

• Largest of the Pure Consultancies1
• 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.
59
A Need for Knowledge Management

• As a pure consultancy, Our people are our
  products1
• 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/mc
keonsamples/article 3.html
60
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.

Recycling Internal Know-How Knowledge
Management at Accenture, http//home.nyc.rr.com/mc
keonsamples/article 3.html
61
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.

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

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

64
http//webpages.dcu.ie/scallanc/Andersens.ppt
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The Knowledge Xchange IT Structure

• Directory Databases
• KX Front Page KX Yellow Pages

http//webpages.dcu.ie/scallanc/Andersens.ppt
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The Knowledge Xchange IT Structure

• Reference Databases
• People and Places, Client Experience, Libraries
  by Indusrty/Service

http//webpages.dcu.ie/scallanc/Andersens.ppt
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The Knowledge Xchange IT Structure

• Discussion Databases
• General forums for service and industry
  specific discussions.

http//webpages.dcu.ie/scallanc/Andersens.ppt
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The Knowledge Xchange IT Structure

• External Databases
• Provide past or current news stories on
  industries and companies grouped by market units
  and service lines.

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

Recycling Internal Know-How Knowledge
Management at Accenture, http//home.nyc.rr.com/mc
keonsamples/article 3.html
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Measuring the Successfulness of KX

• Knowledge Xchange was considered so strategic
  that senior executives didnt 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

• Accentures 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
Accentures Knowledge Management Journey
1992 - 1995 1994 - 1997 1996 -
2000 1999 - 200?
Smart Workplace
Knowledge Outfitting
Knowledge Sharing
Enabling Infrastructure

• 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

• Our best knowledge guides our activities
• Integrated performance support
• Job tools are knowledge tools
• Continuous Learning

Recycling Internal Know-How Knowledge Management
at Accenture,, http//home.nyc.rr.com/mckeonsample
s/article 3.html
73
Best Practices for Knowledge Management

• Knowledge Management Strategy
• Identify and Review the Organizations Vision and
  Mission
• Identification of Relevant and Valuable Knowledge
• Align Knowledge Capture with Business Strategy
• Technology for Supporting KM
• Evaluate IT Tools Needed to Enable KM
• Evaluate Existing Workflow Software
• Align Knowledge and Business Strategies with IT

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Best Practices for Knowledge Management

• Creating a Culture for Knowledge Sharing
• Incentives for Contribution
• Encourage Utilization
• Monitor Employee Usage
• Global Integration
• Measuring Effectiveness of KM
• Justification for Implementation
• Qualitative Assessment of Value Added
• Quantitative Measurement of Revenue Gained

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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 121 for KM efforts

Yelden, E. F., Albers, J. A., The Business Case
for Knowledge Management, Journal of Knowledge
Management Practices, August, 2004.
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QA