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BENEFITS AND CHALLENGES OF
KNOWLEDGE MANAGEMENT
WLEApril 18, 2006
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QUOTABLE QUOTES"I think there is a world market for maybe
5 computers"Thomas Watson, chairman of IBM, 1943
“People are difficult to govern because they have too much knowledge”The Way of Lao-tzu, (604 BC - 531 BC)
“Technology is dominated by two types of people: those who understand what they do not manage and those who manage
what they do not understand.”Putt’s Law
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AGENDA
KNOWLEDGE MANAGEMENT (KM) DEFINITION
BENEFITS FROM USING KM
CHALLENGES IN KM IMPLEMENTATION
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WHAT IS KNOWLEDGE MGMT?
“KM IS A CONCEPT IN WHICH AN ENTERPRISE GATHERS, ORGANIZES, SHARES, ANDANALYZES THE KNOWLEDGE OF INDIVIDUALSAND GROUPS ACROSS THE ORGANIZATIONIN WAYS THAT DIRECTLY AFFECT PERFORMANCE”
- Robert S. Seiner
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WHAT IS KNOWLEDGE MGMT?
“KM IS THE PROCESS THROUGH WHICHORGANIZATIONS GENERATE VALUE FROM THEIRINTELLECTUAL AND KNOWLEDGE-BASED ASSETS”
- Meridith Levinson
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WHAT IS KNOWLEDGE MGMT?
“KM INVOLVES THE IDENTIFICATION AND ANALYSISOF AVAILABLE AND REQUIRED KNOWLEDGEASSETS AND PROCESSES…SO AS TO FULLFILLORGANIZATIONAL OBJECTIVES.”
- Dr. Carl Sveiby
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WHAT IS KNOWLEDGE MGMT?
“SIMPLY THE TRANSFER OF KNOWLEDGE FROMONE PERSON TO ANOTHER, THE RESULT OFWHICH ENABLES THE RECIPIENT TO BENEFITFROM THE COLLECTED WISDOM OF THE MOREEXPERIENCED MEMBERS OF AN ORGANIZATIONOR GROUP.” - Robert Villegas
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WHAT IS KNOWLEDGE MGMT?
DATA
RULES
INFORMATION
PROCEDURES,POLICIES,
BEST PRACTICES
POSSIBLE MEANINGS
POSSIBLE ACTIONS
POSSIBLE RESULTS
COMPUTATIONALINPUTS
ORGANIZATIONALINPUTS
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WHAT IS KNOWLEDGE MGMT?
DATA
RULES
INFORMATION
PROCEDURES,POLICIES,
BEST PRACTICES
POSSIBLE MEANINGS
POSSIBLE ACTIONS
POSSIBLE RESULTS
PUBLICATIONS, RESEARCHBEST PRACTICES, EXPERIENCEINDUSTRY EXPERTS,CONFERENCES, ON-GOINGPROJECTS, PROCESSES
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WHAT IS KNOWLEDGE MGMT?
“A CYCLICAL SYSTEM THAT ENABLES AN ORGANIZATION TO EFFICIENTLY ACHIEVE ITSOBJECTIVES BY HAVING THE ABILITY TOTRANSFORM TACIT AND EXPLICIT LEARNINGSINTO HABITS, BETTER PLANNING, ANDEXECUTION”
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EXAMPLES OF APPLIED KM
MANUFACTURING / INDUSTRY BENCHMARKINGOPERATIONAL INDUSTRY INDICESBEST PRACTICESSTRATEGIC COST MGMTPARTNERSHIPTECHNOLOGY ADVANCEMENT
SW DEVELOPMENT KITS / API, SW MGMT JDBC, GOOGLE API, iODBC, OOPCODE LIBRARIESSEI IMPLEMENTATION AND CERTIFICATIONCALL CENTER’S (HELPDESK) EXPERT SYSTEMWORLD WIDE WEB
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EXAMPLES OF APPLIED KM
DOCUMENT MGMT SYSTEM VIS-A-VISWITH BENCHMARKINGS, SPECS, RULES, FINDINGS, DOE, PROJECT MGMT
• HIERARCHICAL AND GROUP SECURITY
• CHANGE MANAGEMENT SYSTEM
• OBSOLESCENCE MGMT
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EXAMPLES OF APPLIED KMWIKIWIKIWEB
INFORMAL INFORMATIONSHARING WITH RELATIVE EASE
• WIKIPEDIA VERSION• INITIALLY FOR DESIGN ENGRS• MOUSE USER CAN SHARE BRAINS• AI AND RULES BUILT-IN
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QUICK QUIZ:
WHAT IS KNOWLEDGE MANAGEMENT?
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BENEFITS OF KM
COMMON AND GENERIC HELPS ENSURE THE RIGHT INFORMATIONGETS TO THE RIGHT PEOPLE AT THE RIGHTTIME TO MAKE THE RIGHT DECISIONS
WRITTEN THEORIES ORGANIZATIONAL AGILITYOPERATIONAL EFFICIENCYINNOVATION RATEEMPLOYEE GROWTH AND LEARNINGSCORE GROWTH AND IMPROVEMENT
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KM IN CYPRESS (IT)
Q1 2000: SHARED SERVICE CENTER (SSC)OPERATIONALIZED
• PAYROLL PROCESSING FOR ALL U.S. SITES• INVENTORY, A/P, A/R, ABC TO MAJOR CYSITES WORLDWIDE
• CORE SYSTEMS SW DEVELOPMENT
IMMEDIATE BENEFITS:• COST REDUCTION OF AT LEAST US$1M/YR
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BENEFITS OF KM (IN CY)Q1 2004: GLOBAL HELPDESK KM INSTITUTED
SUPPORTS ALL 23 CY SITES WW (EXCLUDINGSALES AND MARKETTING OFFICES)
BENEFITS:• COST AVOIDANCE OF US$0.6M / YEAR• IMPROVED CALL RESOLUTION TIME (CRT)FROM DAYS TO HOURS
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BENEFITS OF KM (IN CY)
Q3 2003: IT TECHNICAL REVIEW BOARDUNIFIED SW AND HW DEVELOPMENT PROCESSSHARING OF MINDS, ARCHITECTURE, RULES,MATRIX, MEMO’S, SCORECARDS, PROCESSES
BENEFITS:• ON-TIME DELIVERY IMPROVEMENT FROM 70% TO 16%.• SW DEFECTS FROM 8/DEV TO 2/DEV• SARBANES-OXLEY READY
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BENEFITS OF KM (IN CY)
TACIT BENEFITSIMPROVED TEAM COMMUNICATIONREDUCED PROBLEM SOLVING TIMEIMPROVED PROFITABILITYCONSISTENCYIMPROVED PROJECT MGMTCUSTOMER PARTICIPATIONREDUCED DESIGN CYCLE TIMECLOSE TO MARKETBUSINESS PROCESS IMPROVEMENT
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0
1
2
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Q304 Q404 Q105 Q205 Q305 Q405 Q106
WTD
UN
ITS
0%
10%
20%
30%
40%
50%
60%
70%
80%
PRO
JEC
T D
EFEC
TPRD WTD
IMPACT OF KM TO PROJECT DEVT
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"The hardest thing in the world to understand is the income tax."
— Albert Einstein
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FIRST TO MARKET
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CHALLENGES IN KM IMPLEMENTATION
CULTUREMANAGEMENT SUPPORT / SPONSORSHIPDEMONSTRATING BUSINESS VALUECHANGE MANAGEMENT IMPLICATIONSKEEPING UP WITH NEW TECHNOLOGIESSECURITY
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CHALLENGES IN KM IMPLEMENTATION
TECHNOLOGY INFRASTRUCTUREINTEGRATED DATABASESINTEROPERABILITYNAVIGATIONAL TOOLS
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CHALLENGES IN KM IMPLEMENTATION
PROCESS AND ARCHITECTUREBUSINESS PROCESS / MODELDOCUMENTATION / NO-TRASH MGMTINTEGRATING INTO PLANNING SYSTEMSEXECUTIONMEASUREMENTS
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IRONY OF KNOWLEDGE
