1. Manfred Bornemann: Wissensmanagement 2013 KNOWLEDGE MANAGEMENT Division: Management Module: Special Forms of Management

2. Manfred Bornemann: Wissensmanagement 2013 The students are introduced to knowledge as a key resource for organizations with properties significantly different to "classical resources" such as capital or labor. They identify the main drivers of Intellectual Capital and get an idea about strengths and weaknesses of Intellectual Capital in their organizations. Participants learn about the prioritization and systematic development of Intellectual Capital, they are introduced to selected methods and instruments and apply them on business situations.  Classification and strategic evaluation of knowledge and Intellectual Capital  Methods and instruments for knowledge management  Prioritization and implementation of knowledge management Knowledge Management

3. Manfred Bornemann: Wissensmanagement 2013 At the end of this course you should be able to…  … discuss the differences between intangible and tangible resources  … apply ideas of knowledge management strategies  … and selected methods to manage knowledge (instruments)  … differentiate strategic relevant drivers of Intellectual Capital  … apply a toolbox to document, assess and manage Intellectual Capital

4. Manfred Bornemann: Wissensmanagement 2013 Assessment methods and criteria First attempt: learning checks at the end of each of the four learning units. Knowledge management is included in the final grade with 50% weight. Second attempt: Oral examination over the entire syllabus. Knowledge management is included in the final grade with 50% weight.

5. Manfred Bornemann: Wissensmanagement 2013 Understand the impact of knowledge driving change Time table / content structure Part 2Part 1 Part 4  Measuring IC (quick check)  The Future of Management  Overview to references and players in KM  Summary of KM methods  Exercise: present the essentials of one KM instrument  Interpretation of QQS portfolio  Impact of Intellectual Capital? Causes and effects  Modeling the impact of change measures (case study)  Implementation of Knowledge Management  Summary Basic Concepts Of Knowledge Management Management 2.0 KM methods in organizations Sam Test Part 3  Analyses of Intellectual Capital  Introduction to Intellectual Capital Reporting  Application - first steps with the IC- toolbox  Individual exercise: definition of assessment questions Intellectual Capital Statements as strategic KM Instrument  Introduction  Attributes of knowledge  Model for KM  Strategies for KM break

6. Manfred Bornemann: Wissensmanagement 2013 Objective of this lecture Students develop some ideas about the concepts of “Knowledge", “Intangible Assets", and “Intellectual Capital“. Students understand essential terminology and concepts of knowledge management and are able to relate them to other management fundamentals. We learn to apply the instrument of Intellectual Capital Reporting (toolbox) and use it to better understand some of challenges of knowledge management. A conceptual basic model provides the framework for our discussions. Additional references and some case studies support group interaction and reflection.

7. Manfred Bornemann: Wissensmanagement 2013 Grading individual tests –comprehension of KM methods / –video comprehension Reflection / Summary Hamel (participation) –IC test (participation) –multiple choice test (participation) teamwork –presentation of one method of knowledge management (participation) –presentation of an Intellectual Capital Statement as a case study (participation)

8. Manfred Bornemann: Wissensmanagement 2013 Dr. Manfred Bornemann Intangible Assets Consulting GmbH since 1996 Implementation of IC reports in the German speaking Market Teaching assignments at several (applied) universities Member in the board of editors –International Journal for Intellectual Capital Management –Knowledge Management Research & Practice –The Learning Organization

9. Manfred Bornemann: Wissensmanagement 2013 The Story of Light To produce light for one candle for one hour, prehistoric man had to invest about an hour to collect wood or create torches and ignite them. That was a considerable effort and thus limited activity to the natural rhythm of day and night. Several steps of innovation from candles to oil lamps, using various wicks, allowed for the improvement of efficiency by not only providing more and better-quality light (in terms of candles), but also less labor and less unpleasant side effects (smoke, grime, risk of injury because of fire, etc.). According to Nordhaus (1998) one hour of labor today produces 350,000 times more light than a Babylonian man could consume with the same effort. Today, we create so much light at such a low cost that now the opposite of scarcity is the problem: light pollution in urban and densely populated areas with its negative effects on our well-being. Thanks to human creativity and effort, an awkward problem that consumed relevant resources was resolved. Yes, it took a very long time, because rates of innovation were extremely low for most of the period. But innovation rates accelerated tremendously from 0.003% per year from the Stone Age to the Middle Ages to 1% until roughly a century ago and 3% since then. Source: http://cowles.econ.yale.edu/P/cp/p09b/p0957.pdf http://www.ajoma.de/html/dark_sky.html

10. Manfred Bornemann: Wissensmanagement 2013 What EXACTLY supports OUR performance? enterprises as black box What is knowledge? What attributes has knowledge? What is the impact of knowledge?

11. Manfred Bornemann: Wissensmanagement 2013 team work of employees three star chef outstanding recipes first grade supplies good relations to suppliers and partners

12. Manfred Bornemann: Wissensmanagement 2013 What exactly supports our performance?

13. Manfred Bornemann: Wissensmanagement 2013 Hard questions ??? If Intangibles are our competitive advantage … how exactly do they look like? What is the status quo of intangibles in our eco system? What is the source of intangibles? How are they developed systematically? What is the impact of intangibles? Where do they have effects (industry, governmental, social, science)? How could we commercialize intangibles in SME structures in the medium technology level (not: high tech sectors)? How does this work right now – and how could it work? What are limiting and supporting drivers? Which management instruments and management philosophies are beneficial? What are the implications for management from the perspective of politics and other stakeholders in these systems? How would a task force be organized to first clarify these questions, to provide answers and then to communicate them?

14. Manfred Bornemann: Wissensmanagement 2013 Hard questions in SMEs Which knowledge assets are available (resource based approach) – and what could we do with them? (Alternative: what would we like to accomplish – and what would it take to do so?) How can we grasp Intangibles? (examples: what is the difference between Microsoft and Apple or Oracle and SAP or Sturm and Rapid; what is the difference between a job applicant from university/FH or Harvard or BFI? What are our Value Propositions? How can we balance a group and achieve homogeneity? (==> concept of people / idea of men) What prerequisites need to be accomplished to prevent erosion of competitive advantages but grow them? (==> corporate values / culture / visions) How can we transfer Intangibles? How to protect Intangibles? What are the essential business models to utilized Intangibles? ==> requirements: differences in perception … (based upon prior knowledge) articulation and communicating perceptions definition of categories / taxonomies to support connectivity pattern recognition – complexity – interdisciplinary approaches

15. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Knowledge in a narrow and wide sense

16. Manfred Bornemann: Wissensmanagement 2013 Knowledge as a Resource MONEY / tangible assets Increasing scale effects Transparent financial markets Money can be spent only once (it is scarce) Intangibles decreasing scale effects Seller and buyer do not have the same level of information by definition. Intangibles are not scarce (but TIME to learn is)

17. Manfred Bornemann: Wissensmanagement 2013 Justification and legitimation We discuss knowledge management because Knowledge and Intellectual Capital have different attributes than tangible or financial assets. We can share knowledge – an sharing (partially) increases the value of knowledge. At the same time, we still keep our knowledge. Intangibles are easy to copy or to reproduce (software, music, pdf- documents). Parallel, we face severe barriers (prior knowledge) and lock-in- effects (language, operating systems) that prevent or delay change. When used effectively, knowledge supports scale effects (e.g. technology, medical knowledge, consulting). Alternatively, mistakes in handling knowledge lead to full loss of competitive advantages (e.g. solar technology).

18. Manfred Bornemann: Wissensmanagement 2013 Objectives of KM Short term Avoid errors? Identify new strategies? Improvement of processes / products? Long term Better accomplishment of strategic objectives! Improvement of productivity (input/output)! Better understanding of our own core competencies (who? why? what? how? how better? Establishment of a Learning Organization

19. Manfred Bornemann: Wissensmanagement 2013 Management?! Karl Weick source: http://faculty.fuqua.duke.edu/~charlesw/s591/Bocconi-Duke/Papers/new_C11/Cartographic%20Myths%20in%20Organizations.pdf

20. Manfred Bornemann: Wissensmanagement 2013 Basic model of KM Source: Praxishandbuch Wissensmanagement

21. Manfred Bornemann: Wissensmanagement 2013 Knowledge is embedded in processes Source: Praxishandbuch Wissensmanagement

22. Manfred Bornemann: Wissensmanagement 2013 strategic knowledge management symbols data information knowledge applying act competency + syntax + meaning + context (experiences, expectations) + focus of application + strategic intent + act “correct” + uniqueness competitive advantage operational knowledge management Source: North, K. (1999): Wissensbasierte Unternehmensführung: Wertschöpfung durch Wissen. 2. Aufl., Wiesbaden: Gabler. A staircase model of knowledge

23. Manfred Bornemann: Wissensmanagement 2013 What is knowledge ? than we can tell“ Polanyi 1966 „We know more … explicit knowledge implicit knowledge

24. Manfred Bornemann: Wissensmanagement 2013 Different types of knowledge knowledge privatecollective explicit stored stable over time implicit hard to share, depending on action and person private documents and competencies documented processes, organi- zational structures, data, other docs individual experiences, intuition, ability to think in abstract terms established shared practices, values, un-codified rituals and norms

25. Manfred Bornemann: Wissensmanagement 2013 The SEKI model Source: I. Nonaka & H. Takeuchi, The Knowledge Creating Company: How Japanese Companies Create the Dynamics of Innovation (Oxford: Oxford University Press, 1995).

26. Manfred Bornemann: Wissensmanagement 2013 Source: Praxishandbuch Wissensmanagement Feedback loop of strategic Knowledge Management

27. Manfred Bornemann: Wissensmanagement 2013 Which knowledge strategy to apply? Relative importance for the business Tables Written Documents Knowledge Bases Systems Siemens, 1998 Facts Creative Abilities Codification Personalization Process- and System models applied systems Hypertext Deliver Facts - Systematize - Correlate - Analyze - Plan - Arrange - Design Concept Difficulty of the task

28. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Best practice transfer with personalization and codification

29. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement pro and con for personalization and codification strategy Permanently available, Useful for frequent reuse Simple and fast transferability Knowledge remains updated Complexity of knowledge transfer is flexible Potential for learning and innovation for each transfer Costly and difficult codification process Danger of outdated knowledge base Lacking context Diverging mental models make utilization difficult Sometimes hard to identify ideal expert Experts might not be available Inter-personal dislikes codification personalization

30. Manfred Bornemann: Wissensmanagement 2013 Examples form consulting Source: Hansen / Nohira, HBS, 1999

31. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Knowledge activities based on Probst et al.

32. Manfred Bornemann: Wissensmanagement 2013 Bergeron, Bryan: Essentials of Knowledge Management, Wiley 2003 Knowledge activities by Bergeron

33. Manfred Bornemann: Wissensmanagement 2013 Understand the impact of knowledge driving change Time table / content structure Part 2Part 1 Part 4  Measuring IC (quick check)  The Future of Management  Overview to references and players in KM  Summary of KM methods  Exercise: present the essentials of one KM instrument  Interpretation of QQS portfolio  Impact of Intellectual Capital? Causes and effects  Modeling the impact of change measures (case study)  Implementation of Knowledge Management  Summary Basic Concepts Of Knowledge Management Management 2.0 KM methods in organizations Sam Test Part 3  Analyses of Intellectual Capital  Introduction to Intellectual Capital Reporting  Application - first steps with the IC- toolbox  Individual exercise: definition of assessment questions Intellectual Capital Statements as strategic KM Instrument  Introduction  Attributes of knowledge  Model for KM  Strategies for KM break

34. Manfred Bornemann: Wissensmanagement 2013 Flash IC assessment www.wissensbilanz-schnelltest.de

35. Manfred Bornemann: Wissensmanagement 2013 Useful material for KM Prowis is a collection of knowledge management instruments with several examples provided by the German BMWI http://www.prowis.net/prowis/sites/default/files/pdf/Literatur/Leitfaden/prowis_leitfaden _fraunhofer_web.pdf http://www.prowis.net/prowis/sites/default/files/pdf/Literatur/Leitfaden/prowis_leitfaden _fraunhofer_web.pdf EU-guideline for knowledge management ftp://cenftp1.cenorm.be/PUBLIC/CWAs/e-Europe/KM/German-text-KM-CWAguide.pdf ftp://cenftp1.cenorm.be/PUBLIC/CWAs/e-Europe/KM/German-text-KM-CWAguide.pdf GfWM - Landkarte zu Wissensmanagement http://gfwm-online.de/files/GfWM-Wissenslandkarte.pdf http://gfwm-online.de/files/GfWM-Wissenslandkarte.pdf Studie zum Wissensmanagement (Pawlowsky et al) http://www.bmwi.de/BMWi/Redaktion/PDF/S-T/studie- wissenmanagen,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf http://www.bmwi.de/BMWi/Redaktion/PDF/S-T/studie- wissenmanagen,property=pdf,bereich=bmwi2012,sprache=de,rwb=true.pdf D-A-CH Glossar Wissensmanagement http://wm-wiki.wikispaces.com/file/view/D-A-CH_Wissensmanagement_Glossar_v1- 1.pdf http://wm-wiki.wikispaces.com/file/view/D-A-CH_Wissensmanagement_Glossar_v1- 1.pdf

36. Manfred Bornemann: Wissensmanagement 2013 Associations active in KM Plattform Wissensmanagement www.pwm.at www.pwm.at Wissensmanagement Forum www.wm-forum.org www.wm-forum.org Gesellschaft für Wissensmanagement www.gfwm.de www.gfwm.de

37. Manfred Bornemann: Wissensmanagement 2013 Understand the impact of knowledge driving change time table / content structure Part 2Part 1 Part 4  Measuring IC (quick check)  The Future of Management  Overview to references and players in KM  Summary of KM methods  Exercise: present the essentials of one KM instrument  Interpretation of QQS portfolio  Impact of Intellectual Capital? Causes and effects  Modeling the impact of change measures (case study)  Implementation of Knowledge Management  Summary Basic Concepts Of Knowledge Management Management 2.0 KM methods in organizations Sam Test Part 3  Analyses of Intellectual Capital  Introduction to Intellectual Capital Reporting  Application - first steps with the IC- toolbox  Individual exercise: definition of assessment questions Intellectual Capital Statements as strategic KM Instrument  Introduction  Attributes of knowledge  Model for KM  Strategies for KM break

38. Manfred Bornemann: Wissensmanagement 2013 some more quotes In the old economy, the challenge for management was to make product. Now the challenge for management is to make sense. (John S. Brown) Treat people as if they were what they ought to be and you help them become what they are capable of becoming. (W. Goethe) Before you become too entranced with gorgeous gadgets and mesmerizing video displays, let me remind you that information is not knowledge, knowledge is not wisdom, and wisdom is not foresight. Each grows out of the other, and we need them all. (Arthur C. Clark)

39. Manfred Bornemann: Wissensmanagement 2013 exercise Please extract the main ideas of the following video link. After watching the video, you have 5 minutes for a brief summary and personal comment.

40. Manfred Bornemann: Wissensmanagement 2013 https://www.youtube.com/watch?v=K3-_IY66tpI

41. Manfred Bornemann: Wissensmanagement 2013 Reflection Hamel What are the main points of Hamel?

42. Manfred Bornemann: Wissensmanagement 2013 Routine processes and knowledge intensive processes Bergeron, Bryan: Essentials of Knowledge Management, Wiley 2003

43. Manfred Bornemann: Wissensmanagement 2013 Bridging the knowledge gap Bergeron, Bryan: Essentials of Knowledge Management, Wiley 2003

44. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Examples of KM instruments

45. Manfred Bornemann: Wissensmanagement 2013 What exactly is the meaning of these drivers? What exactly is the reference or scale? Why is the deviation of scoring in our team so substantial? example of the status quo of Intellectual Capital in an SME Maximum Minimum Average

46. Manfred Bornemann: Wissensmanagement 2013 Primary field of intervention in Knowledge Management internal COMMUNICATION and knowledge transfer

47. Manfred Bornemann: Wissensmanagement 2013 78 34 localglobal context Type of knowledge explicit tacit Routinenon-routine type of task Challenges for knowledge transfer 56 12 Bornemann, based on: Nancy Dixon: Common Knowledge, HBSP, 2000

48. Manfred Bornemann: Wissensmanagement 2013 Methods 1.Chat Forum; blackboards, checklist 2.Intranet, manuals 3.local Project archive, 4.global Project archive incl. maintenance 5.Mentoring, personal coaching, team meeting - usually no top down implementation possible; awareness creation 6.corporate meetings, lessons learned workshops, C.U., Yellow pages, staff rotation, ??? 7.little intervention! Allow for time budget (subsidiary) 8.story telling, personnel rotation

49. Manfred Bornemann: Wissensmanagement 2013 Which measures are supported? Where is demand for more? Art des Wissens explizit tacit RoutineNichtroutine Art der Aufgabe 78 34 localglobal Kontext 56 12 explicit methods 1) existing, room for improvement 2) quite well implemented 3) only partially available 4) Not available – implementation is currently not yet discussed implicit methods 5) yes – still room for improvement 6) Not yet, but already planned as learning platform 7) yes 8) Not really, partially covered from Robert methods: 1Chat Forum; blackboards, checklist 2 Intranet, manuals 3 local Project archive, 4 global Project archive incl. maintenance 5 Mentoring, personal coaching, team meeting - usually no top down implementation possible; awareness creation 6 corporate meetings, lessons learned workshops, C.U., Yellow pages, staff rotation, ??? 7 little intervention! Allow for time budget (subsidiary) 8 story telling, personnel rotation Caution: case - dependent!!!

50. Manfred Bornemann: Wissensmanagement 2013 Some more methods of Knowledge Management Wissensmanagement im 21. Jahrhundert Quelle: Deutsche Gesellschaft für Personalführung e.V. 2002.

51. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Methods for “Business Process oriented KM”

52. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Tools for “Business Process oriented KM”

53. Manfred Bornemann: Wissensmanagement 2013 Group exercise Please use all available source to learn about these methods and instruments for KM. –Prowis Shop –EU-guideline for KM –Glossary of GfWM –Wikipedia – „knowledge management“ Which of them are of most interest for you? Please select one and provide a short presentation – use the template in the next slide –objective/ focus of application –implementation –cost / benefits

54. Manfred Bornemann: Wissensmanagement 2013 Method: objective/ focus of application implementation cost / benefits names of team members

55. Manfred Bornemann: Wissensmanagement 2013 Reflection of methods Which method is most reasonable for US???

56. Manfred Bornemann: Wissensmanagement 2013 Diagnosis and codification Source: Internet 2003 – Links dead

57. Manfred Bornemann: Wissensmanagement 2013 Understand the impact of knowledge driving change Time table / content structure Part 2Part 1 Part 4  Measuring IC (quick check)  The Future of Management  Overview to references and players in KM  Summary of KM methods  Exercise: present the essentials of one KM instrument  Interpretation of QQS portfolio  Impact of Intellectual Capital? Causes and effects  Modeling the impact of change measures (case study)  Implementation of Knowledge Management  Summary Basic Concepts Of Knowledge Management Management 2.0 KM methods in organizations Sam Test Part 3  Analyses of Intellectual Capital  Introduction to Intellectual Capital Reporting  Application - first steps with the IC- toolbox  Individual exercise: definition of assessment questions Intellectual Capital Statements as strategic KM Instrument  Introduction  Attributes of knowledge  Model for KM  Strategies for KM break

58. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Methods to assess Knowledge and Intangible Assets

59. Manfred Bornemann: Wissensmanagement 2013 Measuring knowledge with „Wissensbilanz – made in Germany“ please install this toolbox http://www.akwissensbilanz.org/Toolbox/WB-TB2.zip http://www.akwissensbilanz.org/Toolbox/WB-TB2.zip

60. Manfred Bornemann: Wissensmanagement 2013 What is an Intellectual Capital Statement ?  An Intellectual Capital Statement is an instrument to document and report the development of Intellectual Capital of an organization.  It relates corporate objectives, business processes and Intellectual Capital with business performance of an organization and takes advantage of indicators. Quelle: Leitfaden Wissensbilanz – Made in Germany. Bundesministerium für Wirtschaft und Arbeit in Zusammenarbeit mit dem Arbeitskreis Wissensbilanz. www.akwissensbilanz.org D

61. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Focus of an Intellectual Capital Statement

62. Manfred Bornemann: Wissensmanagement 2013 Business Environment (opportunities & risks) Organization Model for Intellectual Capital Statements by AKWB Business Processes actions business strategy knowledge - vision and objectives business performance Financial &. tangible Capital initial- situation Knowledge processes Human Capital Structural Capital Relational Capital Intellectual Capital external impact Source: www.akwissensbilanz.org

63. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Differentiation of Intellectual Capital

64. Manfred Bornemann: Wissensmanagement 2013 typical drivers of IC Human Capital Employee qualifications Management competencies Social Skills Engagement of employees Structural Capital Corporate culture Communication Organization Innovation Relational Capital Customer relations Stakeholder relations Supplier relations Optimaler Bereich strengths and weaknesses Indicators Interdependencies and prioritizaition source: www.akwissensbilanz.org

65. Manfred Bornemann: Wissensmanagement 2013 Project plan to implement an Intellectual Capital Statement Vorbereitung (Projektstart) Workshop 1 Einflussfaktoren, QQS-Bewertung Erfolgsfaktoren und Indikatoren erheben Workshop 2 Wirkungsanalyse Interpretation Maßnahmen Projektteam Geschäfts- führung Interne Arbeiten Nachbereitung und Diagnose Wissensbilanz zusammenstellen Laufzeit 3-6 Wochen Workshop 3 Wissensbilanz finalisieren (intern) Source: www.akwissensbilanz.org

66. Manfred Bornemann: Wissensmanagement 2013 Geschäftsprozesse Geschäftserfolg ›Gewinn ›Image/Marke Humankapital ›Fachkompetenz ›Management- und Sozialkompetenz ›Mitarbeitermotivati on Strukturkapital ›Unternehmenskult ur ›Kommunikation und Organisation ›Innovationen Beziehungskapital ›Beziehungen zu Kunden ›Beziehungen zu Kooperationspartn ern ›Beziehungen zu Stakeholdern Beschreibung von Strategie, Vision, Geschäftsprozessen und -umfeld sowie Definition von Geschäfts-erfolgen Festlegung der Einflussfaktoren des intellektuellen Kapitals Bewertung der Einflussfaktoren nach Qualität, Quantität und Systematik Ermittlung der Einflussfaktoren mit der größten Hebelwirkung Priorisierung der Einflussfaktoren gemäß ihrem Verbesserungs- potenzial und ihrer Hebelwirkung Definition geeigneter Maßnahmen zur Optimierung der priorisierten Einflussfaktoren Erstellung eines Abschluss- berichtes MaßnahmenWissensbilanzAuswertungGeschäftsmodellWirkungBewertungIntellekt. Kapital 1 2 1 2 1 2 1 3 2 source: www.akwissensbilanz.org

67. Manfred Bornemann: Wissensmanagement 2013 group exercise Please install the Wissensbilanz Toolbox http://www.akwissensbilanz.org/Toolbox/WB-TB2.zip http://www.akwissensbilanz.org/Toolbox/WB-TB2.zip Please start with the „demo project“ and ad three drivers of Intellectual Capitals including definitions that seem important for your case. Formulate adequate questions for the QQS- Dimensions for these three new drivers Assess these drivers according to strategic priorities and document the reasoning in the text box Optionally, adopt other drivers to your case in terms of quantitative measures

68. Manfred Bornemann: Wissensmanagement 2013 Understand the impact of knowledge driving change Time table / content structure Part 2Part 1 Part 4  Measuring IC (quick check)  The Future of Management  Overview to references and players in KM  Summary of KM methods  Exercise: present the essentials of one KM instrument  Interpretation of QQS portfolio  Impact of Intellectual Capital? Causes and effects  Modeling the impact of change measures (case study)  Implementation of Knowledge Management  Summary Basic Concepts Of Knowledge Management Management 2.0 KM methods in organizations Test Part 3  Analyses of Intellectual Capital  Introduction to Intellectual Capital Reporting  Application - first steps with the IC- toolbox  Individual exercise: definition of assessment questions Intellectual Capital Statements as strategic KM Instrument  Introduction  Attributes of knowledge  Model for KM  Strategies for KM break

69. Manfred Bornemann: Wissensmanagement 2013 Focus of intervention What are the consequences of measures for improvement? Source: www.akwissensbilanz.org Prioritization

70. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Example of system dynamics of IC

71. Manfred Bornemann: Wissensmanagement 2013 What EXACTLY supports OUR performance? enterprises as black box What is knowledge? What attributes has knowledge? What is the impact of knowledge?

72. Manfred Bornemann: Wissensmanagement 2013 0,25J-1J 1J-2J 0, J-1J 1J-2J 0, J-1J 0, J-1J 1J-2J >2J 1. Core- process 8. Cooperation/ Communika- tion/- 10. Product- innovation 12. Customer- Relations- 27. Financial Result 28.Image/ 5.employee- Engagement/ - Making complexity visible

73. Manfred Bornemann: Wissensmanagement 2013 0,25J-1J 1J-2J 0, J-1J 1J-2J 0, J-1J 0, J-1J 1J-2J >2J 1. Leistungs- prozesse 8. Kooperation/ Kommunika- tion/Wissens- transfer 10. Produkt- innovation entwickeln 12. Beziehungs- manage- ment zu Kunden 27. Finanzieller Erfolg 28.Image/ Marke 5.MA- Motivation/ Führungs- kompetenz Is our „business model“ supporting our objectives … ?! Do we actually have a shared understanding of our business model? What is it?

74. Manfred Bornemann: Wissensmanagement 2013 group exercise 2 What is the interaction between Intellectual Capital and business processes? What is the impact of KM Methods in this system? What are likely consequences of the intervention (future outlook / forecast)? Please upload your WBP file to moodle. Include the names of all people involved in the file name.

75. Manfred Bornemann: Wissensmanagement 2013 Driver and measure Visualization of interdependencies: Definition of status quo und Context / interpretation of the generator / future outlook

76. Manfred Bornemann: Wissensmanagement 2013 Discussion of the impact of IC

77. Manfred Bornemann: Wissensmanagement 2013 What exactly are the benefits of an Intellectual Capital Statement ? We understand the value creation process better and can optimize it for the future – together. Improved transparency about the most important drivers of Intellectual Capital. Shared mental models, about the contribution of each driver to the strategic priorities. Clarity about areas of intervention and measures to develop the organization.

78. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Scheme for implementing KM

79. Manfred Bornemann: Wissensmanagement 2013 Praxishandbuch Wissensmanagement Example for the life cycle of KM

80. Manfred Bornemann: Wissensmanagement 2013 Summary

81. Manfred Bornemann: Wissensmanagement 2013 Potential benefits of KM quantitative cost saving greater customer acquisition rate improved bottom line improved profit margin increased corporate valuation increased customer loyalty behavior increased customer retention increased market share increased repeat purchases increased stock valuation reduces cost of sales qualitative better management of ideas decreased likelihood of employee defection greater customer loyalty increased collaboration with customers increased customer satisfaction increased innovation increased knowledge worker empowerment increased knowledge worker productivity increased knowledge worker satisfaction increased market leadership increased organizational stability increased understanding of customer needs positive cultural change

82. Manfred Bornemann: Wissensmanagement 2013 KM and cost-benefit? Level of organizational development Relation cost/benefit accounting high low process management quality management information management knowledge management only after securing a minimum proficiency, the next challenge shall be targeted. Knowledge management depends on other management functions and their structures. lowhigh corporate culture human res. management Bornemann, 2002

83. Manfred Bornemann: Wissensmanagement 2013 Summary (1) KM is complex and expensive and attractive only for mature organizations. but: “thriving organizations" without KM will lose their competitive advantages quite soon.

84. Manfred Bornemann: Wissensmanagement 2013 Summary (2) KM is “simple" – if you know the concepts (e.g. St. Gallener Modell / WMF / GfWM /...) KM depends on strategy and objectives KM will change ALL processes KM is not enforceable (HC =/= financial capital) KM builds on the idea of man and influences recruiting KM depends on corporate culture (Collaboration / Participation / division and integration of labor /... ) KM must be supported top down There is no standard remedy for KM available. New technologies shift the edge and lower barriers of entry.

85. Manfred Bornemann: Wissensmanagement 2013 Summary (3) because of rising complexity because of exponential differentiation of products and services because of increasing customization and fractioning of markets differences are marginal but have substantial implications on productivity and performance of an organization. In the future, the integration of Intellectual Capital and processes in organizations will depend on contextual understanding, which will be harder to acquirer (Pisa), while factual knowledge most likely will be available easy and cheap. This might lead to paradox developments: knowledgeable and (formally) educated integrators will be paid handsomely, dedicated specialists will attract nice checks too, and all others might – because of lacking differentiation – fall behind.

86. Manfred Bornemann: Wissensmanagement 2013 “Wer nur kann, was alle schon können... und nur weiß, was alle schon wissen, kann auch nur tun, was bereits alle tun können. Wettbewerbserfolg, setzt immer den Willen, die Kraft und die Fähigkeit voraus, anderen mit eigenständigen Wissensfortschritten und Problemlösungen voranzugehen” Prof. Hubert Markl, Präsident der Max-Planck-Gesellschaft “Knowledge Management is expensive – but so is stupidity!” Thomas Davenport “The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom.” Issac Asimov “Now that knowledge is taking the place of capital as the driving force in organizations worldwide, it is all too easy to confuse data with knowledge and information technology with information.” Peter F. Drucker

87. Manfred Bornemann: Wissensmanagement 2013 Multiple Choice Test This test is essential for the individual grading All answers are available on these slides More than one answer is allowed. No supporting material / technologies are accepted. Additionally, please refer to the standards of Campus02 All the best

88. Manfred Bornemann: Wissensmanagement 2013 Literature and recommended reading with general focus WMF: guideline for knowledge management Al Ali: Comprehensive Intellectual Capital Management, 2003 Wiig: People focused knowledge management, 2004 Dierkes et al: Handbook of Organizational Learning and Knowledge, 2003 Easterby-Smith: Handbook of Organizational Learning and Knowledge Management, 2011 Al-Laham: Wissensmanagement, 2003 Harvard Business Review on Knowledge Management 1998