Presented by Josua Tarigan, Petra Christian Univeristy

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The International Conference on IT to Celebrate
S. Charmonmans 72nd Birthday
Model in Measurement the Impact of Implementation
of Knowledge Management Towards Organizational
Market Value
Presented by Josua Tarigan, Petra Christian
Univeristy
March 30, 2009
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Agenda

• Background Performance Measurement Model in
  Business Process
• The Significance of Performance Measurement on KM
• Why Market Value Measurement Is Important?
• Model to Measure The Impact of KM Towards Market
  Value
• QA

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Background Performance Measurement Model in
Business Process

• Performance measurement is the evaluation towards
  past action in order of monitoring and
  maintaining business process
• BSC help the organization to balance the
  measurement from comprehensive perspective
  instead only financial

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The Significance of Performance Measurement on KM

• The organizations sometimes forgot to manage
  their own knowledge. However, when organization
  spends a big investment to collect the knowledge,
  hence organization has to know regarding the
  impact of knowledge management towards
  organization.
• Peter Drucker recognized that innovation from
  creative employee provides the only assured
  source of long-term success and competitiveness.

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Why Market Value Measurement Is Important?

• Most of big organization which stand up and stay
  in competition not again because of the capital
  or the tangible asset, but because of intangible
  asset.
• As comparison, research conducted by Baruch Lev
  2, found that book value proportion (BV)
  compare to market value (MV) going to decrease,
  where in the year 1982, book value proportion
  around 62 to market value, which is in 1992
  become 38 and in the year of 2000 went to
  10-15. In Indonesia context, studied by SWA
  magazine resulted the same pattern 8.

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Model to Measure The Impact of KM Towards Market
Value
M A R K E T V A L U E
Book Value Assets Balance Sheet
Financial Performance Indicator
Create
Intellectual and Intangible assets
Customer Performance Indicator
Create
Internal Business Performance Indicator
Create
Learning and Growth Performance Indicator
Create
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Model to Measure The Impact of KM Towards Market
Value
Commitment and Capability
OBJECTIVES
MEASURES
Increase employee capability
Employee satisfaction ratings
Employee commitment index
Employee productivity
Increase employee Motivation and Alignment
Suggestions per employee
Suggestions implemented per employee
Increase information systems capabilities
Percentage of process with real time feedback
capabilities
Percentage of customer facing employee With on
line accesses to customer and Product information

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Model to Measure The Impact of KM Towards Market
Value
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Model to Measure The Impact of KM Towards Market
Value
M A R K E T V A L U E
Financial KM (BV)
Financial Performance Indicator
Create
Customer KM
Customer Performance Indicator
Create
Internal Business KM
Internal Business Performance Indicator
Create
Learning Growth KM
Learning and Growth Performance Indicator
Create
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Thank YouQuestions?