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A Case Study for Knowledge Management

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A Case Study for Knowledge Management Creating Sustainable Business Value Emerson Johns Jim Porter Carol Arnold Jehu Burton – PowerPoint PPT presentation

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Title: A Case Study for Knowledge Management


1
A Case Study for Knowledge Management
Creating Sustainable Business Value
Emerson Johns Jim Porter Carol Arnold Jehu Burton
2
Session Purpose
  • Understand how knowledge management creates
    sustainable business value.
  • Learn how to implement a knowledge management
    process and culture.

3
Agenda
Introduction Emerson Johns Overview Jim
Porter KM Project Carol Arnold Interoperability
Jehu Burton Discussion All
4
The only thing that gives an organization a
competitive edge is what it knows, how it uses
what it knows, and how fast it can know something
new. Laurence
Prusak IBM Knowledge Institute
5
Key Benchmark Companies
  1. Johnson Johnson
  2. Gateway
  3. Sprint
  4. IBM
  5. PriceWaterhouseCoopers
  6. World Bank
  7. Intel
  8. Microsoft
  9. Accenture
  10. Chevron
  11. Ford
  12. Capital One
  13. Skandia
  14. Cisco
  15. MIT Sloan School of Management
  16. British Petroleum
  17. Dow
  18. Texas Instruments
  19. Siemens

Knowledge networking KM IT client
services Business market research Institute for
KM KM Knowledge and learning KM Enterprise
KM KM Information architecture Best
practices Knowledge champions KM KM Academic
program KM KM KM KM
6
Business Successes
  • BPattributed 260 million added value directly
    from KM
  • Dowsaved 40 million over 10 years by divesting
    costly, unused patents
  • Texas Instrumentssaved 1 billion as a result of
    improved KM
  • Chevronemployee productivity up 50 percent thru
    TQM and KM
  • Siemensits ShareNet tool added 122 million in
    sales since rollout

7
Of all the initiatives weve undertaken at
Chevron during the 1990s, few have been as
important or as rewarding as our efforts to build
a learning organization by sharing and managing
knowledge throughout our company. In fact, I
believe this priority was one of the keys to
reducing our operating costs by more than 2
billion per year.
Kenneth T. Derr Chairman and CEO Chevron
8
Knowledge Management (KM)
Implementation Session
KM Overview Jim Porter
9
Knowledge Management
The Right Information at the Right Place at the
Right Time at the Right Price enables rapid,
effective Decision Making and Problem Solving
delivering Sustainable Business Results
10
The Goal is Zero
ZERO on-job injuries ZERO off-job injuries ZERO
environmental incidents ZERO ethics
incidents ZERO people-treatment incidents
100 Right Behaviors
11
Knowledge As Value
Product Price Per Pound ()
Pentium processor 42,893.00
Viagra 11,766.00
Gold 4,827.20
Hermes scarf 1,964.29
Palm Pilot 1,726.92
Saving Private Ryan DVD 874.75
Bicycle 100.00
Mercedes Benz E-Class sedan 18.98
Chevrolet Cavalier sedan 6.76
Hot-rolled steel 0.19
Source Fortune, March 20, 2000, p. 68
12
Creating Sustainable Business Value from Data
Information f (Data) Knowledge f
(Information) Sustainable Business Value f
(Knowledge)
13
Business Existing ExamplesEffective Knowledge
Management
  • Construction Industry Institute
  • Process Industry Practices
  • Center for Chemical Process Safety
  • Independent Project Analysis

14
CII Knowledge Impact Areas
  • Safety
  • Business Decisions
  • Capital Projects
  • Plant Startups
  • Competency Renewal
  • Personnel Development
  • Outside Influence

15
Compelling Drivers Improved Information
Utilization
  • Improve productivity.
  • Increase customer value.
  • Renew and leverage needed competencies.
  • Smart leverage of expertise
  • Safe self-service
  • Experts in optimum role
  • New/unproven resources development
  • Drive innovative solutions.

16
Major Opportunity Areas
  • Capability to capture information
  • 88 of DuPonts top salespeople have over 30
    years of experience.
  • 40 of DuPont engineers will be pension-eligible
    in the next two to four years.
  • 38 of a persons time is wasted trying to manage
    information.
  • No central repository of intellectual capital.

17
Major Opportunity Areas
  • Capability to find right information and people
  • 20 of a scientists time is spent searching and
    accessing information.
  • 75 of the info people need to effectively work
    is not in transaction backbone data.
  • No capability to locate experts/expertise across
    company.

18
Major Opportunity Areas
  • Ability to collaborate and share info and
    expertise
  • 20 of a persons time is spent repeating
    answers.
  • 25 of info that a company owns is used.
  • 65 of a companys design work is duplicated.
  • Success and business intelligence depend on
    readily available knowledge.

19
Leaping to Our Next Century
Maturity
Maturity
Growth
Growth
Maturity
Chemistry, Biology. . . Knowledge - Intensive
Solutions
Birth
Growth
Birth
Chemistry Energy
Birth
Explosives
Six Sigma
1802 1830 1850 1900 1925 1945 1990 2000 2050 2090
TRANSFORMATION
20
New DuPont Vision
  • To be the worlds most dynamic science company,
    creating sustainable solutions essential to a
    better, safer, healthier life for people
    everywhere.

21
Strategic Pathways
Integrated Science
Knowledge Intensity
Productivity
Through People
22
DuPont Business Goals
  • Top Line Growth
  • World-class marketing capability
  • World-class sales capability
  • Enhanced innovation
  • Knowledge in offer bundles
  • Productivity
  • Employee productivity and effectiveness
  • People renewal
  • Global supply chain

23
Knowledge Management Vision
Create a strategy and managing process for
accelerating knowledge management that will
introduce a culture change as well as effective
tools and processes to further enable employees
as knowledge workers, improve productivity, and
use knowledge intensity to achieve sustainable
growth.
24
Process ViewTypical Enterprise (End-to-End View)
25
Compelling Drivers Improved Information
Utilization
  • Improve productivity
  • Increase customer value
  • Renew and leverage needed competencies
  • Smart leverage of expertise
  • Safe self-service
  • Experts in optimum role
  • New/unproven resources development
  • Drive innovative solutions

26
KM as a Renewal Facilitator

H, M, L High, Medium, Low complexity of request
27
Engineering Competency Knowledge Management
Business Case Summary
Leveraged Engineering competency
  • Benefit benchmarks
  • Cost estimate
  • 5 to 6 million dollars over three years

MM
Increased productivity 8.6 12.9 Reduced
problem-solving time 30.0 45.0 Best Practice
sharing 34.2 51.3 Packaged solutions/offerings
17.0 25.5 leverage Decreased time to
renewal 3.0 4.5
28
Key Learnings
  • Ease-of-access to knowledge assets is critical.
  • Minimize time required to find/reuse knowledge.
  • Management support is critical.
  • Tacit knowledge capture is much more difficult
    than explicit.
  • Knowledge management is a culture change not
    just a toolbox.

29
Knowledge Management (KM)
Implementation Session
KM Project Carol Arnold
30
Three Major Opportunity Areas
31
Major Opportunity Areas
  • Capability to capture information
  • 88 of DuPonts top salespeople have over 30
    years of experience.
  • 40 of DuPont engineers will be pension-eligible
    in the next two to four years.
  • 38 of a persons time is wasted trying to manage
    information.
  • No central repository of intellectual capital.

32
Major Opportunity Areas
  • Capability to find the right information and
    people
  • 20 of a scientists time is spent searching and
    accessing information.
  • 75 of the information people need to effectively
    work is not in transaction backbone data.
  • No capability to locate experts/expertise across
    company.

33
Major Opportunity Areas
  • Ability to collaborate and share info and
    expertise
  • 20 of a persons time is spent repeating
    answers.
  • 25 of info that a company owns is used.
  • 65 of a companys design work is duplicated.
  • Success and business intelligence depend on
    readily available knowledge.

34
Knowledge Management Continuum
Organizational Readiness Productivity
Knowledge Mining
Collaboration w/ Customers
Cross-team working
Collaborative Workspace
Supply chain Enterprise transaction
Customer Intimacy Business Value
Business Evolution
Discussion Database
Notes v6.0
Document Management
Websphere
Inktomi
CRM Notes
Customer Experience
E-mail
Employee Experience
Microstrategies
CRM Siebel
APO
QuickPlace
SAP R3
Domino.doc
Vax Mail
Documentum
Notes 4.5
Technology Evolution
35
DuPont Knowledge Management Phase 1
Participants Initial Focus
FinanceInternal Audit 100 Global capability
CRD 4200 Research portal
Engineering 300 Renewal
Sourcing 1200 Global rapid workouts
Crop Protection 15 Technology laboratory
Strategic Accounts 140 Global account management
Imaging Technologies 20 Global leadership effectiveness
Six Sigma gt10,000 Business effectiveness
36
Key Strategies and Initiatives
37
2003Think Big, Start Smart, Scale Fast
38
KM Program Office
establish a dedicated team to lead the journey...
  • Business/program lead
  • Change management and education
  • KM consulting
  • Six Sigma/business analyst
  • IT KM Lead
  • Project-based resources
  • Project manager
  • Community facilitators
  • Knowledge capture resources
  • IT resources

39
KM Roles and Responsibilities
Group Manager Executive sponsor actively supportive of the roll out.
Knowledge Stewards Prime contacts for the KM team and early adopters of KM processes and tools. Champions of KM processes work with subject matter experts to oversee group intellectual property.
Subject Matter Expert (SME) Technology specialist, expert. Recognized, well-respected content/competency expert. Helps the Knowledge Steward manage intellectual assets for the rest of the group.
Knowledge Workers All people in the workgroup (regardless of whether they may also be SMEs, Knowledge Stewards, or OSPs).
40
Implement Common KM Processes
  • Effective global collaboration
  • Consistent knowledge sharing
  • Build and grow strong teams
  • Capture and organize knowledge assets
  • Document and publish good/best practices
  • Improve search/find and access to information
  • Find the right person (or be found!)
  • Better mentoring and training opportunities

41
Example Value Areas to Explore
  • Improve information/knowledge sharing
  • Capability to capture information/knowledge
  • Turning tacit knowledge into explicit knowledge
  • Improved innovation process
  • Ability to collaborate
  • Efficiency and effectiveness of scientists
  • Getting products to market faster
  • Driving growth Sales and marketing effectiveness
    and revenue growth

42
KM Roll Out Process
Managers Meeting
Weeks 1-2 are planning, front-end loading,
pre-work,
Planning Meeting
Group Launch
Weeks 3-4 are training, overviews, continued setup
Portal Set Ups
Tool Trainings
Learning Modules
Weeks 5-8 are more training, some project work,
feedback sessions, and a closing session
Workshop
Close Out
43
Portal Overview
A brief tour of the portal environment and its
concepts/terminology
  • KEY FEATURES
  • Collaboration
  • Engineering Employees
  • Engineering Search
  • Engineering Page

44
KM Portal
  • A brief look of some tools available through the
    iPortal

QuickPlace
Sametime
Taxonomy and Collections Search
45
Portal Overview
Sametime Instant Messenger and QuickPlace are
located under the Collaboration tab
46
Portal Overview
47
Portal Overview
48
Knowledge Management (KM)
Implementation Session
Engineering Interoperability Jehu Burton
49
2003Think Big, Start Smart, Scale Fast
Establish Direct
Build Solution Offering Org.
Establish Business Driven Collaboration
Access Knowledge
Build Service
Create
Link the networks to
Collaborative
Execute Awareness
Definition Team
Cross-Functional
a content Repository
Planning
Campaign
Offering Capacity
Management
Package
Collaborative Project
Build
Offerings
Management
Establish
Systematize
Request for Expert
Offering Model
Networks with
Assistance
Capture Project
and Methodology
Collaboration
Best Practices
Streamline Knowledge Transfer
Integrate Existing
Establish Mentor Enhanced e-Learning
Knowledge Tools
Capture Problems
Capture Expert
Create a Mentoring
Create Self Service
and Solutions
Thought
Integrate with
Program
Training
Deployed
Leadership
Interoperability
Life Cycle Data Mgt
Build Training
Map
Capture
Establish Industry
Programs for Priority
Expertise and Skills
Subcontractor
Expertise
Renewal Areas
Project Results
Connection
Integrate/Augment
Integrate Report
Library
DuPont Eng. Univ.
Establish Corporate KM Backbone
KM Team
KM Processes
KM Communities
KM Infrastructure
KM Knowledge Base
Strategy, Deployment
K-Lifecycle, Help Desk
Network Op Model
Portal, Security, CMS
Taxonomy, Structure
K-Program Mgrs (BUs)
Self Service Admin.
Trusted Expert Locator
Repository, Search
Practices Services
Arch, App Dev, Ops
Change Management
Collaboration
Global, Web Services
Quality Rating
Course Development
E-Learning
Standards
50
Knowledge Management Vision
  • Create a strategy and managing process for
    accelerating knowledge management that will
    introduce a culture change as well as effective
    tools and processes to further enable employees
    as knowledge workers, improve productivity, and
    use knowledge intensity to achieve sustainable
    growth.

FASTER
SAFER
ENVIRONMENT
Knowledge Communities
KNOWLEDGE
Knowledge Infrastructure
Knowledge Base
Knowledge Workers
Knowledge Processes
BETTER
CHEAPER
51
Facility Data Management
Engineered
Process
Equipment
Development
Procurement
Field
Facility Process
Material
Procurement

Process
Renewal
MRO Procurement
Process Conditions
Equipment Reliability
52
Current View ApplicationCentric
Global User Community
Islands of Automation
Offline Access
Online Access
Manual Input of data
Little Connectivity
Hard to find data
Many User Interfaces
EngineeringDocuments Plant Drawings
Operating Data
Equipment Data
PID Data
Maintenance Data
53
Future View InformationCentric
Global User Community
Common User Interface
Offline Access
Online Access
Automated Data Flow
Faster Cycle Time
Higher Productivity
IncreasedUPtime
54
Align KM and Interoperability/Facility Data
Management
55
Issues and Challenges
  • KM
  • Long-term storage/accessibility of electronic
    media
  • Enable the Data gt Information gt Knowledge
    progression
  • Interoperability
  • Open systems
  • Applications integration
  • Legacy Data

56
DISCUSSION
57
How Do You Knowledge-Enable the Business?
Sponsorship
Ability
KM Strategy Alignment with Business
Goals Knowledge Program Plans Knowledge
Teams Communication Programs
Orientation and Training Applications and
Infrastructure Knowledge Services
Processes
Verification
Knowledge Management Processes Knowledge-based
Processes Innovation Programs
Measurement
Management Review Delivery Assurance Review
Balanced Score Card Reward and Recognition Perform
ance Appraisals
58
KM Processes
  • Find
  • Find the Right Person (or be found!)
  • Improve Search and Better Access to Information
  • Collaborate
  • Effective Global Collaboration
  • Document and Publish Good/Best Practices
  • Build and Grow Strong Teams
  • Consistent Knowledge Sharing
  • Better Mentoring and Training Opportunities
  • Capture
  • Capture and Organize Knowledge Assets

59
Interoperability Issues and Challenges
  • Open systemsNo active, coordinated U.S. body
    working on data standards.
  • Applications integrationcontinues to be
    difficult achieving collaboration between
    software companies.
  • The industry needs to reduce barriers to
    interoperability, enabling benefit realization.
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