Sustainability Through Knowledge Management

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Sustainability Through Knowledge Management
AIChE Annual Meeting Philadelphia, PA November
18, 2008
Used with permission, Computer Sciences
Corporation
Jim Porter Chief Engineer and VP Engineering
Operations DuPont (Retired)
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The only thing that gives an organization a
competitive edge is what it knows, how it uses
what it knows, and how fast it can know something
new. Laurence
Prusak IBM Knowledge Institute
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Knowledge Management
The Right Information at the Right Place at the
Right Time at the Right Price enables rapid,
effective Decision Making and Problem Solving
delivering Sustainable Business Results
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Creating Sustainable Business Value
Information f (Data) Knowledge f
(Information) Sustainable Business Value f
(Knowledge)
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Core Values

• Safety and Health
• Environmental Stewardship
• High Ethical Standards
• Respect for People

Our Goal Must Be Zero
Used with permission, DuPont
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Knowledge As Value
Source Fortune, March 20, 2000, p. 68
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Business Successes

• BPattributed 260 million added value directly
  from KM
• Dowsaved 40 million over 10 years by divesting
  costly, unused patents
• Texas Instrumentssaved 1 billion as a result of
  improved KM
• Chevronemployee productivity up 50 percent thru
  TQM and KM
• Siemensits ShareNet tool added 122 million in
  sales since rollout

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• Less than effective knowledge management causes
  1.4 billion bomber crash.
• B-2 stealth bomber crashed on Guam February
  23
• Crash caused by moisture that distorted sensors
• Crash was the first in the fleet's 20-year
  history
• B-2 was expected to last 50 years
• Moisture issue had been known for years

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Major Opportunity Areas

• Capability to capture information
• 88 of top salespeople have over 30 years of
  experience.
• 40 engineers will be pension-eligible in the
  next two to four years.
• 38 of a persons time is wasted trying to manage
  information.

No central repository of intellectual capital.
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Major Opportunity Areas

• 2. Capability to find right information and
  people
• 20 of a scientists time is spent searching and
  accessing information.
• 75 of the info people need to effectively work
  is not in transaction backbone data.

No capability to locate experts/expertise across
company.
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Major Opportunity Areas

• 3. Ability to collaborate and share info and
  expertise
• 20 of a persons time is spent repeating
  answers.
• 25 of info that a company owns is used.
• 65 of a companys design work is duplicated.

Success and business intelligence depend on
readily available knowledge.
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Implementation Issues

• Medium to large companies potential problems
  implementing knowledge management
• Incomplete understanding of the value
• Inability (or unwillingness) to fund another
  program centrally
• Difficult to understand the actual current-state
  culture
• Culture and acceptance of change varies across
  business units
• Driving integration of customer experience with
  employees and partners and vendors is difficult
• Not managing the KM implementation as a change
  process
• Length of time to roll-out knowledge management
  perceived to be long

• Medium to large companies potential problems
  implementing knowledge management
• Incomplete understanding of the value
• Inability (or unwillingness) to fund another
  program centrally
• Difficult to understand the actual current-state
  culture
• Culture and acceptance of change varies across
  business units
• Driving integration of customer experience with
  employees and partners and vendors is difficult
• Not managing the KM implementation as a change
  process
• Length of time to roll-out knowledge management
  perceived to be long

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How to Approach Issues

• Develop a vision and roadmap
• Select journey partners for needed expertise
• Technology
• Integration
• Solution development
• Business development strategy
• Experience in implementation change management
• Funding
• Locate businesses that have specific needs in
  areas within your vision Early Adopters
• Expand their horizons/understandings to wider KM
• Explain the win/win
• Demonstrate value meet their needs/priorities

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Knowledge Management Vision
Create a strategy and managing process for
accelerating knowledge management that will
introduce a culture change as well as effective
tools and processes to further enable employees
as knowledge workers, improve productivity, and
use knowledge intensity to achieve sustainable
growth.
SAFER
FASTER
KNOWLEDGE
Knowledge Communities
ENVIRONMENT
Knowledge Workers
Knowledge Infrastructure
Knowledge Base
Knowledge Processes
BETTER
CHEAPER
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Process ViewTypical Enterprise
Strategic Plan
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Key Strategies and Initiatives
Think Big-Start Smart-Scale Fast
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Issues and Challenges

• Knowledge Management
• Long-term storage/accessibility of electronic
  media
• Enable the Data gt Information gt Knowledge
  progression
• Interoperability
• Open systems
• Applications integration
• Legacy Data

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Improved Information Utilization Drivers

• Improved productivity
• Increased customer value
• Renew and leverage needed competencies
• Smart leverage of expertise
• -Safe self-service
• -Experts in optimum role
• - New/unproven resources development
• Drive innovative solutions

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Key Learnings

• Ease-of-access to knowledge assets is critical.
• Time required to find/reuse knowledge must be
  minimized.
• Top management support is critical.
• Tacit knowledge capture is much more difficult
  than explicit.
• Knowledge management is a culture change not
  just a toolbox.

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Summary

• Have a vision roadmap

• Have a vision roadmap
• Enlist journey partners

• Have a vision roadmap
• Enlist journey partners
• Look for opportunity windows to implement
  components of your vision within the value chain

• Have a vision roadmap
• Enlist journey partners
• Look for opportunity windows to implement
  components of your vision within the value chain
• Be patient, but persistent and focused on vision
  

• Have a vision roadmap
• Enlist journey partners
• Look for opportunity windows to implement
  components of your vision within the value chain
• Be patient, but persistent and focused on vision
  
• And remember it is a
• JOURNEY .

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Knowledge Management Value

• The most important contribution management needs
  to
• make in the 21st Century is to increase the
  productivity
• of knowledge work and knowledge workers. It is on
  their
• productivity, above all, that the future
  prosperity -- and
• indeed the future survival -- of the developed
  economies
• will increasingly depend. -- Peter Drucker

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Questions??