Presentation on theme: "Outline The Expanding World of Knowledge Management Where Are We Now?"— Presentation transcript:
0Knowledge Management… and Beyond Tom Davenport Accenture Institute for Strategic Change NASA November 7, 2001
1Outline The Expanding World of Knowledge Management Where Are We Now? A Knowledge Management FrameworkThe Value of Knowledge ManagementImplementing Knowledge Management over TimeNew Frontiers in Knowledge Management
2The Expanding World of Knowledge Management Organizational LearningPerformance SupportBest PracticesInnovation and ReinventionBusiness IntelligenceKnowledge — The most valuable form of information content, with a high level of human contribution and usabilityManagement — A concerted effort to improve the creation, distribution, or use of knowledgeFocus on the BENEFITS of Knowledge Management
3Where Are We Now? Finally getting some real KM technologies But the distinct KM technology is vanishingKnowledge becoming an accepted business resourceBut how will it compare to profits?Many small, function-specific projectsBut few transformational onesDesperately seeking valueBut nobody really measures it wellHow do we get to the next stage?
4As We Mature...Knowledge becomes too important to leave to the professionalsMaximizing knowledge becomes a preeminent corporate objectiveGeneral managers become knowledge managersWe move from knowledge inventory-building to supply chain managementAttention becomes the scarcest resource
5What We Need... To Begin To Advance Widely-available technologies A place to get startedA few people to help outA business problem or problem solverQuick resultsKnowledge strategyProcess change for knowledge workersCultural changeIntegration across content typesTop management support
6How Do We Manage Knowledge? Knowledge management is more than the knowledge or the technology.Context (Strategy)ResourcesContent(Knowledge)TechnologyProcessDiscuss how having lotus notes doesn’t mean you have knowledge management.Discuss what it is and what it isn’t.Establish common lexicon.PeopleObjectivesMetricsSegments
7The Most Important Resource Includes organizational structure, culture and behavior, networks, roles and responsibilitiesCreating knowledge and learning from it are highly volitional and largely invisibleCulture and behavior trumps allPeople!
8Knowledge Culture and Behavior The fundamental belief that creating, sharing, and using knowledge are highly-valued activitiesTo begin, focus on a subcultureFind one where knowledge mattersNo obvious cultural barriersTo advance, focus on long-term cultural changeBig incentivesExecutive exampleDow Chemical started with knowledge management in the R&D areaIBM started in consulting and servicesTexas Instruments, Johnson & Johnson started with the sharing of bestpractices, which was highly consistent with their quality-oriented culturesFew organizations have changed their entire cultures, and perhaps nonehave done so purely for reasons of knowledge management. The US Armydid have a culture change arising out of its Viet Nam experience, whichmade it much more receptive to knowledge sharing and the managementof “lessons learned.”D
9Knowledge Works through Networks To begin, identify/form communitiesTreat them as clubsNeed to meet socially and facially on occasionNot by IT aloneTo advance, manipulate network tiesStrong vs. weakPhysical vs. virtualGlobal vs. localNegative example - U.S. insurance company that started with knowledgemanagement by installing Notes, appointing a CKO in the “financialknowledge” area - but no network in place, and financial workers hadlittle in commonPositive example - Daimler Chrysler - formed networks in the technical areasof new vehicle engineering to address quality problems and knowledgetransfer across platform teams - worked well in the US, but can it beextended to Germany?
10People and Knowledge Roles To begin, focus on professionalsKnowledge leadersKnowledge initiative managersKnowledge network facilitators, reporters, etc.To advance, focus on amateursHow much division of knowledge labor?How much time learning vs. doing?Do we hire knowledge seekers in the first place?At Applied Materials, a leading semiconductor equipment firm,identified project managers as the key “amateur” role thatneeded to begin using knowledge more effectivelyAt Bechtel, question of whether design engineers would managetheir own knowledge, or whether a group of professionalknowledge managers would do most of the work - strategy wasto go with knowledge managers in the first few years, but beginto change the behavior of the engineers and eliminate the needfor professionals
11Knowledge Is a... Process! Knowledge work is a process Marketing, R&D, customer service, consulting, etc.Redesign to create some slackKnowledge management is a processCreate, capture, refine, distribute, use, monitorProcess!
12To Begin, View KM as a Process Capture/ StoreRefineDistributeUseMonitorCreateWhich subprocesses do we do (well)?Where do we need to focus?Who owns or manages each one?What human and technical enablers apply?At General Motors in marketing knowledge, conclusion was, “We’regood at every aspect of knowledge management except use”At Johnson and Johnson, how can we get better at two subprocesses:creation and innovation, and distributing/sharing knowledge acrossbusiness unit boundaries
13The Critical Role of Knowledge Work Processes Have to improve knowledge work jobsParticipation is keySome process orientation is OK, but also explore...Where and with whom people workChanging the unit of knowledgeApplying knowledge technologyThe key is to redesign key knowledge workers’ jobs so that theyare more effectiveExamples: new car development at Chrysler“Audit innovation” at Ernst & Youngoil exploration deals at BP Amoco
14To Really Advance, Link Them e.g., The Patient Care ProcessDiagnoseTreatObserveReviewTrackHistoryLinking MechanismsPeoplePilots and prototypesProcess designsProgrammingLinking method examples:“Knowledge champions” at Andersen Consulting, “knowledge stewards”at Ernst & YoungThe “knowledge-oriented drug development process” at J&J Pharma-ceutical Research InstituteThe “dialogue/decision process” at General Motors“Knowledge horizons” at W.L. GoreKnowledge Management ProcessCapture/ StoreRefineDistributeUseMonitorCreate
15And Don’t Forget (as if) ... Little standalone valueLots of choices, but do the basics first (e.g., a portal)Increasing blending with other technology types (e.g., e-learning)For a broad solution, integration still requiredTechnology!
16Technology to Start Playing A basic set of knowledge toolsWeb portalSearch and retrievalDocument managementDiscussion databasesExpertise directoryInfrastructure aidsCommon applicationsDedicated databases
17Advanced Knowledge Technologies Role-specific portalsCombining relevant transaction data and knowledgeAI tools for more structureCase-based reasoning, rule-based systemsData-into-knowledge toolsNeural nets, CHAID, data miningDesktop video for the tacitly-mindedTools that link e-commerce and KM (e.g., selling knowledge)Tools that link knowledge and learning (simulations, performance support, web-based learning)Customer service applications frequently require higher levels ofstructure, because they are real-time while the customer is waitingAt Hewlett-Packard, for example, had to move to case-based reasoningin order to allow inexperienced people to work with customers on thehelp lineBP Amoco decided that the most important knowledge in the E&Pbusiness was tacit, so it implemented desktop video everywhereThere is an explosion of online learning tools, similar to the Siemensfinancial management program, and in many cases these draw fromknowledge management repositories
18(Knowledge) Content Management To begin, let a thousand categories bloomPerhaps a mapStructure becomes critical as content proliferatesContent architectureTaxonomiesThesauriMeta-knowledgeMultiple levelsHuman pruningChrysler’s “tech club” managers are focused heavily on whatmakes content knowledge rather than data or informationIBM Global Services has three levels of knowledge in itsrepositories; Arthur Andersen has two - convergent and divergentWeb companies are among the strongest in content management;Yahoo, for example, has a staff of over 100 content specialists whocreate and manage categories, check out sites, etc.
19Strategies for the Strategic To begin: choose a domain with business valueTo advance: focusWhat knowledge content really matters?Where does our knowledge environment need improvement?How do we make money?What’s the work setting?To really advance, link:Knowledge management with product/service strategy (World Bank, Ryder, Dow, DuPont, etc.)Sequent Computer - decided knowledge for sales was most strategicwhen bringing out a new line of more powerful computersThe best example of embedding knowledge into product and servicestrategy is at the World Bank, where James Wolfenson announcedin 1996 that the bank would become “the knowledge bank,”dispensing knowledge to third-world countries as well as loansFew companies have focused on customer knowledge, but it is theprimary focus at Procter & Gamble, one of the world’s bestmarketers
20KM and Alternative Work Settings CollaborativeGroupsIntegration ModelSystematic, repeatable workHighly reliant on formal processes, methodologies or standardsDependent on tight integration across functional boundariesCollaboration ModelImprovisational workHighly reliant on deep expertise across multiple functionsDependent on fluid deploy-ment of flexible teamsInterdependenceLevel ofTransaction ModelRoutine workHighly reliant on formal rules, procedures and trainingDependent on low discretion workforce or automation.Expert ModelJudgment-oriented workHighly reliant on individual expertise and experienceDependent on star performersFast food chain in US - “all my workers are knowledge workers” - truebut in lower left category - how can knowledge improve transactionsAudit at E&Y - the Integration model - methodologies, but modularizedMicrosoft software development - collaboration model, largely face tofaceLarge New York law firm - expert model - very difficult to change theirbehavior, so you supply knowledge managers to do it for themIndividual ActorsRoutineInterpretation / JudgmentComplexity of Work
21Measures for Measurers To start: knowledge activityHits, users, items, etc.To advance: business valueAt a minimum, anecdote managementBuild a chain of credibility: from activity measures to process measures to money (earned or saved)Forget putting it on the balance sheetIn any case, faith still requiredExample: customer support knowledge management at HPFirst test: are the knowledge bases being hit, are newcases being addedSecond test: is the time per call decreasing, is the numberof field dispatches or mailed-in computers decreasingThird test: can we grow the business without adding headcount;is customer service becoming a profit center
22Implementing Knowledge Management over Time Step 1: hardware and software infrastructureStep 2: human infrastructureStep 3: content proliferationNext steps:Integration with the front lineProduct/service integrationGreater use of Web and Microsoft toolsDiscuss how the KX is successful by referencing the process elements.
23Knowledge Management Frontiers - Attention Management Attention: the most important resource in businessa finite resourcea zero-sum gameAttention management is a two way street:seekers of attention try to capture itand givers of attention have to allocate and try to preserve itData, Information,KnowledgeInformationProcessingTechnologyVolumeAccessNetwork BandwidthAttentionTime
24Knowledge Management Frontiers: Turning Data into Knowledge and Results Businesses have more and better quality data than ever beforeThe systems which deliver the greatest value are those that enable managers to steer the business more effectively, as well as reduce operational costs and process transactions efficientlyTo date, relatively few businesses have been able to extract and use the full value of transaction data to:build stronger customer relationshipsdesign new and improved products and servicesenhance business and management processesSuccessfully realizing the value of transaction data requires an knowledge management approach which looks at a combination of technical, organizational, people and cultural factors
25A Model for Building Analytical Capability FinancialProcess & ProgramBehavioralOutcomesEvents that change as a result of the analysis and decision-makingIncludes changes in behavior, processes and programs, and financial conditionsDecisionMakingAnalysisTransformationWhere the data is actually analyzed and used to support a business decisionContextSkills & ExperienceOrganization & CultureTechnology & DataMay be viewed as the prerequisites of success for the capabilityStrategy