1. Transforming the Organization An Information Approach Presented by Keith Cromack Raytheon Company Bentley College Waltham, MA June 30, 2004

2. 2 Transforming the Organization Thought for the Day “…anyone in the organization who is not directly accountable for making a profit should be involved in creating and distributing knowledge that the company can use to make a profit.” Sir John Browne – British Petroleum HBR: 1997 Our job is to create and share knowledge

3. 3 Transforming the Organization From Computer User to Knowledge Worker Collaborative Groups Individual Contributors Interpretation Judgment Routine Integrated Workers Systematic, repeatable work Rely on formal processes Need tight integration across functional boundaries Knowledge Workers Improvisational work Rely on deep expertise across multiple functions Flexible teams Transaction workers Routine work Rely on formal rules, procedures and training Low discretion workforce Expert Workers Judgment-oriented work Rely on individual expertise and experience Star performers Knowledge Workers Rely on Information and Context

4. 4 Transforming the Organization What we think we know! Most Knowledge Workers are overwhelmed by and not effective at handling the information they need to do their jobs. Without control over content, Knowledge Workers can waste up to 40% of their time in document- related-non-value-added tasks. (Gartner 2003) More than 25% of Knowledge Worker time – 3 hrs a day - is wasted searching for information – rather than acting on it. (IDC) 60% of Knowledge Workers spend 60 minutes a day duplicating work already done by someone else. (Delphi Group 2000) Our Ability to Create Information has Outpaced our Ability to find and Put it to Use

5. Transforming the Organization Thought for the day More is not more _________ Less is more!

6. Transforming the Organization Is all Information Equally Valuable? What Management Cares About We Need to Understand and Leverage the Overlap What Employees Care About Knowledge Opportunities (Sweet Spot)

7. Transforming the Organization Is all Information Equally Valuable? Only 20 % of all knowledge is captured - 80 % of all knowledge remains in people’s heads Knowledge (20%) Only 15 % of all captured knowledge accessible as information Accessible Information (3%) Only 10% of accessible information is ever used – 90% is a cost to the business Accessed Information (0.3%) Only 7% of accessed information is ever used by people to do their jobs Info Used for Business Decisions (0.02%) How do we help our users easily, quickly and reliably find and use information needed to do their jobs?

8. 8 Transforming the Organization Current State of Accessible Information The Key to Transformation is Our Unstructured Information 15% Unstructured Information  Represents 85% of all accessible Raytheon Information (Data Discovery, March 2002)  Continues to grow at a rate of 200% per year (Yankee Group, 2002)  Resides in Intranets, docuShare, shared drives, group servers, email systems  Exists in every format & data type used over the last 20 years Our ability to create information has substantially outpaced our ability to retrieve it – and put it to work. 85 %

9. 9 Transforming the Organization What does Success Look Like? Retrieve Reduced Time to Information Create / Capture Increased number of On- line Information Contributors Apply Increased reuse and sharing of information Manage Increased amount of Information assets “Under Management” Deliver Improved communications vehicles Information Life Cycle – Touch Points for Transformation

10. 10KC Transforming the Organization Information & Knowledge Management

11. Transforming the Organization Putting it all together A A A A A A A A Business Process / Job Assignment PortalDocuShare Databases Oracle Notes Shared Drives Data Warehouse Data Warehouse Information Sources DTIC Taxonomy Framework SSICLOCC Govt. Standard NAICS Business Relationship Business Function Employees NCS Employees NCS IT Employees How do we help our users easily, quickly and reliably find and use information needed to do their jobs? myRaytheon | NCS | Information Technology myPages | Search | Collaboration | Businesses | Functions | Communities | User Interface

12. 12 Transforming the Organization Putting it all together Interface Becomes Intelligent Brings the User and Information Together

13. 13 Transforming the Organization The Value Proposition Improving Business Intelligence and Decision Making Through Simplified and Predictable Information  Better decision making through accessible Data, Information & Business Intelligence  Quicker access to People, Solutions, Knowledge, & Capabilities to grow the business  Streamlining of business & user processes Enabling Customer Focused Solutions through One Company Sharing of Information and Capabilities  Share, Reuse & Reach Back by Capturing Knowledge & Re-inserting into the Business  Delivering open architectures that support our business agility Developing Relationships Through Early IT Engagement in Business Initiatives  Doing the IT we “sell” to our customers (Do IT)  Equipping programs with information throughout the product life cycle  Improving customer access to Raytheon services, information and products

14. 10.You refer to your vacation plan as a “vision statement” 9.You prepare your grocery list using PowerPoint 8. When dining out, you order the “low hanging fruit” 7.You suggest Six Sigma time value mapping to your waiter when you order arrives late. 6.You plan your weekend with “critical success factors” 5. You think of dating as “benchmarking” 4.You celebrate your wedding anniversary by conducting a performance review. 3.Your Valentines cards have bullet points 2. You decide to reorganize your family into a “team based organization” 1. You start to feel sorry for Dilberts’ boss Transforming the Organization Top 10 Signs That you are taking this too seriously…..

15. Transforming the Organization I’d Like to Talk with You Keith Cromack Director – Information Services Keith_a_Cromack@Raytheon.com Office (781-522-3328) AOL IM Screen Name (kacromack)