Knowledge Management DPSA KM Workshop

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Knowledge ManagementDPSA KM Workshop

• Mohamed F Bhyat and Ernest Ramphele
• 14 / 15 February 2008

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Snapshot - The Journey
2008
1999
2000
2001
2002
2003
2004
2007
Vert Industry Solutions

• Global Ops
• Caribbean
• India
• Dubai

• Born in Africa, building a global bridge, living
  a simple philosophy of, Knowledge Empowerment.
• We assist our Partners in establishing
  Intelligent Agile Information Management
  Practices, the foundation for establishing a
  Knowledge Enterprise.

Namibia Office
Establ. Company
Establ. COEs
Intern Program
SAM Prod GTM
HomeBase Prod GTM
Milestones
Customers
150
100-
30-
20
100
75-
50-
Clients are our Partners
Revenue
gtR5M
gtR25M
gtR100M
gtR12M
ltR5M
gtR18M
gtR20M
gtR270M FY08
Impumelelo Top 300
Black Achiever Award
Accolades
Variety of African Achiever Awards
Fortune Client Partners
Variety of Technology Top 100 Awards
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Our Company Structure
Slide 3
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Value Chain

• Concept
• Thought
• leadership
• Creating the need
• Awareness

• Business
• Strategy
• Vision
• Purpose
• BPR
• E biz strat

• Business
• Implementation
• strategy
• Change Mng
• Capacity
• building
• Mentorship
• Leadership

• MIS Strategy
• Technology Strategy
• Architectures
• Applications
• Implementation
• Networks
• Systems Integration
• H/W
• S/W development
• Call center
• Facility mgt
• Administration

• Business Intelligence
• Knowledge Mng
• Client satisfaction
• E commerce
• E Gov
• CRM

Feedback Loops
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Knowledge Management?

• What is Knowledge Management
• Knowledge Management - a broader perspective
• Knowledge Management and the SA Public Sector
• In a knowledge organization constantly competing
  in two markets
• market for key customers and market for key
  employees
• developing this dual perspective and
  understanding is first step in managing a
  knowledge based org.

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What is KM?
Tacit knowledge less structured, answer varies
with context, takes form of wisdom, experience,
stories

• KM is a business enabler.
• It is Management of Corporate Intellectual
  Assets.
• Human Capital the skills, talent, and knowledge
  that a companys employees possess their
  capability, creativity, capacity, relationships
  and networks
• Information Capital the companys databases,
  information systems, networks, and technology
  infrastructure.
• Organizational Capital the companys culture,
  its leadership, how aligned its people are with
  its strategic goals, and employees ability to
  share knowledge. This includes
• Formalized business processes and
• Intellectual Property Patents, Trademarks,
  Branding, etc
• These assets are often intangible, have perceived
  value that can only be recognized when
  transacted, and are not measured by GAAP
• KM is a key enabler of modern comptrollership
  (Financial Management and Control)

• Explicit (Rules) based
• structured processes lead to answers can be
  automated
• Libraries Taxonomies. Make everything explicit
  Control the informational space

• Collaboration between people
• Connect people to people - networks for learning.
  Limit information to that which supports action

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Knowledge Economies.

• The Knowledge Economy, Globalization ,
  Competitive Advantage
• It is a phrase that refers to the use of
  knowledge to produce economic benefits.
• The effective use of knowledge is becoming the
  most important factor for international
  competitiveness and for creating wealth and
  improving social welfare.
• The phrase was popularized if not invented by
  Peter Drucker as the heading to chapter 12 in his
  book The Age of Discontinuity

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Knowledge - A starting point The Industrial
Revolution

• Of course knowledge existed before the industrial
  revolution, but it existed and resided with for
  example organized religion, with individuals, as
  crafts.
• What the industrial revolution did was to convert
  experience into knowledge, apprenticeship into
  textbooks, secrecy into methodology, doing into
  applied knowledge think of the guilds
• Technical schools were established and brought
  together, codified and published knowledge which
  had developed over millennia.
• These essentials are what we call the industrial
  revolution - the transformation by technology of
  society and civilization worldwide.

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Taylorism and Scientific Management

• The next major step forward was a great leap in
  the productivity revolution.
• F.W. Taylor (1856-1915) in the United States
  applied Scientific Management to the application
  of knowledge to work.
• In the industrial revolution - knowledge was
  applied to tools, processes, products.
• Taylor applied knowledge to the study of WORK,
  the analysis of work and the engineering of work.
  
• All earlier economic powers in history- GB,
  Germany, US - emerged through leadership in new
  technology.
• In the post war period - Japan, Korea, Taiwan,
  Hong Kong, Singapore
• all owed their rise to training and the
  application of scientific of knowledge to work
  enabled a largely pre industrial, low wage work
  force with world class productivity in
  practically no time at all.

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• What the industrial revolution did was to convert
  experience into knowledge, apprenticeship into
  textbooks, secrecy into methodology, doing into
  applied knowledge think of the guilds
• Technical schools were established and brought
  together, codified and published knowledge which
  had developed over millennia.
• These essentials are what we call the industrial
  revolution - the transformation by technology of
  society and civilization worldwide.

K Economies?
Post industrial
Intensity of K in wealth creation
Taylorism Scientific Management
Industrial revolution
Pre industrial
time
existed and resided with for example organized
religion, with individuals, as crafts.
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• The next major step forward was a great leap in
  the productivity revolution.
• F.W. Taylor (1856-1915) in the United States
  applied Scientific Management to the application
  of knowledge to work.
• In the industrial revolution - knowledge was
  applied to tools, processes, products.
• Taylor applied knowledge to the study of WORK,
  the analysis of work and the engineering of work.
  

K Economies?
Post industrial
Intensity of K in wealth creation
Taylorism Scientific Management
Industrial revolution
Pre industrial
All earlier economic powers in history- GB,
Germany, US - emerged through leadership in new
technology. In the post war period - Japan,
Korea, Taiwan, Hong Kong, Singapore all owed
their rise to training and the application of
scientific of knowledge to work enabled a largely
pre industrial, low wage work force with world
class productivity in practically no time at all.
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• Value added goods and services
• Trends in world trade
• Codification of knowledge
• ICT in diffusing K
• K dispersion
• Increasing tacit skills handling
• Innovation

K Economies?
Post industrial
Taylor (ism) Scientific Management
Intensity of K in wealth creation
Industrial revolution
Pre industrial
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Finland as a Knowledge Economy

• In the 1990s Finland became the most ICT
  specialized country in the world
• Finland ranks highest in WEF competitiveness
  index and PISA studies - OECDs Program for
  International Student Assessment (PISA)
• Finland is among top performers in patenting
• Finlands success shows that a strong knowledge
  economy can be built in a small and comparatively
  Peripheral country

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How Did Finland Become A Knowledge Economy?

• Increasing RD intensity was facilitated through
  national consensus building
• Specialization in high-tech and RD-intensive
  production needs to be preceded by major
  structural change in economic and social
  structures
• Finland has evolved quickly from a resource
  driven economy to a knowledge driven economy
• Finlands industrial renewal benefited from
  liberalizing trade and lifting the remaining
  restrictions on capital flows in the 1990s
• Policy emphasis has shifted from macroeconomic
  toward microeconomic policies
• A systems view was adopted early in industrial
  and technology policies
• Institutions and policy organizations have also
  played an important role in Finnish knowledge
  economy development

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PORTERS FOUR-PHASE MODEL OF NATIONAL
COMPETITIVE DEVELOPMENT and RECENT DEVELOPMENTS
IN GAUTENG
Wealth driven economy
Knowledge driven economy

• Gauteng City Region
• Triple Helix
• Indigenous innovation
• Own RD and technologies
• ICT,
• Automotive
• Manufacturing
• Aeronautics ,
• Chemicals
• Environment
• Transport

Investment driven economy
Knowledge

• Post apartheid
• GPG Smart Province
• Social spending
• Blue IQ
• GEDA
• GSSC
• Innovation Hub
• Automotive sector
• Logistics
• Inland port
• Gautrain

Resource driven economy

• Gold driver.
• Related industries
• Financial and other
• Support services
• Industrial base

Late 1800s To mid 1980s
2020 and beyond
1995s to present
2008 s to 2020
Adapted from Porter 1990 and Hernesniemi and
others 1996.
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Global View Knowledge Economy Index1995 and
most recent year
Sweden
10
Finland
Canada
Japan
9
USA
Ireland
Australia
8
E Central Asia
Korea
G7
Germany
Mexico
7
W. Europe
Russia
E Asia
6
Argentina
Brazil
South Africa
5
Jordan
Turkey
China
Developed Oceania
4
Tunisia
World
Latin America
India
3
Indonesia
Kenya
East and N. Africa
South Asia
2
Ghana
Africa
1
Pakistan
Nigeria
1 2 3 4 5
6 7 8 9
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Source World Bank Knowledge Assessment
Methodology
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INFORMATION AND KNOWLEDGE MANAGEMENT (KM)
Internal Data
External Data
Internal Data
External Data
Current DW
Structured Data

• Customer Info
• Competitor Info
• Market Intelligence

Sensitised, dynamically changing dimensions, as
well as Tacit Knowledge (AI) and Informal
Information Exchange
Unstructured Data
Data ? Information ? Insight ? Intelligence
ACTIONABLE ? Knowledge / Awareness / Wisdom
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Mining Value Chain
Geologists
Geochemists
Geophysicists
Exploration
Geostatisticians
Role of State
Mining
Mining engineers
Capital
Geophysicists
Mechanical Engineers
Financial expertise
Market analysts
Metallurgists
Exchanges
Artisans
Capital markets
Capital
Marketing And Sales
Logistics
Role of State
Infrastructure
Role of State
The Substructure Educational system academic
and applied universities Role of the state
Environment, Energy , Water, Entrepreneurs
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JHB Stock Exchange
Innovation driven improvements will be
incremental
Great leap in improvement purely from efficiency
management People, processes, and systems
2005 To 2007
valuation went from R250 000 to R7.5B
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Knowledge Management and the SA Public Sector
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Knowledge Management in the Public Sector

• Government in South Africa (and indeed in all
  Developing Countries) are very complex businesses
• Face more complex issues than commercial
  enterprises
• Are a heady mix of
• policy development, strategic planning, project
  management
• line function responsibilities,
• the deliverers of hard services and in the case
  of LG need to develop
• sustainable economic growth and development
• This requires a multitude of skills
• And like any other complex organizations LG
  requires information and systems to deliver it,
  business processes, good governance, business
  intelligence, innovation,CRM, call centers and a
  very heavy dose of intellectual capital
• And the leadership required to make it happen

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KM and Your Desired Outcome
Business Strategic Intent Vision
Effective, efficient driver of the use
of information and knowledge for
Development
BU 1
BU 2
BU n

• Innovation and Continuous Improvement
• Able to respond to changing environmental
  conditions.
• Deliver in line with mandate National
  Imperatives

Growing operational capability
Growing institutional
capability
Greater skills capacity
Leveraging technology
Organizational culture
Professionalism Learning integrity
Build, Acquire, Retain IP/IC
An Integrated Knowledge Management System. On
line access to continuously growing and
changing organizational knowledge
Enabling the change and managing the process via
a KMO
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Information value chains

Market expose

package
repurpose


assimilate
leverage
monitor
mine
render
catalogue
secure

enhance transform
integrate organize cleanse
screen profile capture generate
Information Asset valuation
Demand
Supply Side
Information supply chain maturity
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Relationship Between Structured / Explicit KM
Products Intangible Knowledge And Capabilities
And Intellectual Capital Within The
Organization
ROI
ROI
ROI
Marketed
Complex new products
Packaged
Repurposed
Assimilated
Integrated And Leveraged
Information products
Rendered
New K generated
Catalogued
Communities of Practice
Profiled And Organized
information
Feed into HRD Strategy
Lessons learnt
Cleansed And Structured
Capabilities risk
Data warehouse
Structure via embedded processes
Knowledge map
data
Structured / transactional data
Unstructured information
Capabilities audit
Intellectual Capital Management
Structured Information Management
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Enterprise Framework

• KM
• Methodologies
• Best practice
• IP Assets

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we expected too much of public serviceFraser -
Moleketi Public Service Review 1999/2000,
tabled in Parliament April 13th, reported in the
Star April 14th, 2000

• Yes - progress in making public service more
  representative, but
• Government underestimated difficulties of
  transformation and tried to achieve too much too
  fast
• Failed to develop management cadre capable of
  implementing new policies complexity of new
  policies and change
• Timeframes over optimistic
• Caught up in issue and crisis, very little
  strategic planning, piecemeal solutions, no
  coherent strategy, no visionary management takes
  place in practice

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Knowledge Workers and the War for Talent

• South Africa has been ranked 24th of 30 economies
  surveyed in the first Global Talent Index, a
  report that compares how well countries nurture
  and retain skilled people.
• Each country was assessed on factors that
  included demographics, quality of compulsory
  education, quality of universities and business
  schools, and ability of the environment to
  nurture talent.
• Labour mobility and the openness of the labour
  market, trends in foreign direct investment, and
  propensity for attracting talent were other
  considerations.
• South Africa has a massive challenge ahead to
  develop, nurture and attract talent in an
  international environment in which skills are
  becoming increasingly sought after and
  increasingly mobile.

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A Systematic Approach

• KM principles and concepts
• Information vs. KM
• KM is about effective management of corporate
  knowledge assets
• What are intellectual assets / What is
  intellectual capital
• Does talent deliver
• Invisible / intangible assets
• How Intangible assets are converted Into bottom
  line revenues
• Knowledge Continuity - between employee
  generations
• Institutional Memory - organizational forgetting
• Leadership issues
• Cultural issues
• Knowledge and Information as a commodity
• The Social Life of Information
• What types of knowledge to stock

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Our Model
know-why refers to the scientific knowledge of
the principles and laws of nature.
.
Knowwho who knows what and who knows how to
do what.
Know-how relates to the skills or the capacity to
do something.
.
.
Know-what relates to a persons knowledge about
facts
.
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Developing a KM strategy

• KM strategy is to help firm achieve its strategy
  and goals
• Must be rooted in the business context
• Successful program takes years
• Formulation of a vision and strategy important
• Market program internally
• Strong leadership supports essential
• Good program on business results
• Usually best to use multiple approaches and tools

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What KM will do for you?

• Knowledge management provides organizations with
  a methodical approach to managing their knowledge
  requirements and assets.
• Knowledge management incorporates management of
  intellectual assets.
• By adopting KM as a set of sound management
  principles, rules, conventions, standards, values
  and procedures, organizations can measure and
  manage their growing investments in intellectual
  assets. These are assets over which organizations
  have historically had little control.