Knowledge Management

1. Knowledge Management Presented by Group number 4 Mike Seabough Keith Floyd Nick Carron Nattapon Lertsrijatuporn

2. What Exactly Is Knowledge Management? We found many different definitions, but the one that best fit our understanding of KM….

3. Definition: “Any structured activity that improves an organization’s capacity to acquire, share, and utilize knowledge in ways that improves its survival and success.” Source: reference 1

4. It also helps to understand, • “KM is not a technology, but a strategic solution that applies information technology.” Source: reference 2

5. Why have KM? • Quite simply, most firms do not know what they know. Information is passed along too slowly, and sometimes not available to those who would use it to make costly decisions.

6. In every instance, the company’s with KM in place have a lower occurrence of knowledge problems than those without KM. KM helps to eliminate knowledge problems Source: reference 12

7. Basics of KM • In order to understand what the definition means, and how it can pertain to business, one must first understand a few basics of knowledge management.

8. KM: The Basics Knowledge Management Tacit Knowledge Explicit Knowledge Knowledge Information Data SourceReference 1

9. Knowledge Management: Data • “A set of discrete facts” (Davenport and Prusak, 1998). • “Text that does not answer questions to a particular problem” (Quigley and Debons, 1999). • An Example would be: Company K has a $4 million budget for the in house IT department. Source: reference 4

10. Knowledge Management: Information • “Facts organized to describe a situation or condition” (Wiig, 1993). • “Data with relevance and purpose” (Davenport, 1997). • Example: The $4 million budget for Company K was a 20% increase over the 2003 budget. Source: reference 4

11. Knowledge Management: Knowledge • Knowledge is processed information. • “Valuable information from the human mind” (Davenport, 1997). • “Text that answers the questions why or how” (Quigley and Debons, 1999). Example: The increase of Company K’s IT budget is due to the competitive edge that the in house Knowledge Management Program has helped to generate. Source: reference 4

12. Knowledge Knowledge can be divided into two categories: and Tacit Explicit

13. Tacit Knowledge • “Know how” • Difficult to describe • “It can be demonstrated but rarely codified, and resides with its holder. It gets transferred through demonstration and on-the-job training.” • Examples include riding a bike and throwing a ball. Source: reference 3

14. Explicit Knowledge • Explicit knowledge is much more easier to pass from one person to the other. It can be written out in step by step guidelines to follow to complete a task. • An example of tacit knowledge is the ability to create a power point slide.

15. Difficulties of Implementing Knowledge Management • Convince employees that it is in their best interest to share knowledge. This goes against conventional thought that says knowledge is power, so become more powerful than others. • “While employees may not deliberately hoard their knowledge, convincing them to make the time to participate in and contribute to a knowledge management system or community can be a challenge.” • Deciding which information should be retained. Source: reference 5

16. More Difficulties of Implementing KM Senior management may be reluctant. They may feel that they lose control when information no longer has to pass through them.

17. Benefits of KM • Avoidance of wasted time “reinventing the wheel. • Improved decision making. • Encourage employees who are not networking to engage in sharing information. • Improves support among colleagues due to the value of knowledge they receive. • Increase: responsiveness to consumers, efficiency of staff, and process of innovation. 2000 KPMG Consulting Study with 423 Respondents SourceReference 12

18. Trends in KM Spending Increases Federal spending on KM products and services were expected to reach $6.3 billion in 2003. A 2000 study by KPMG Consulting found that of 423 organizations in Europe and the U.S., 81% were actively pursuing KM. Source: reference 8

19. KM by Industry 2000 KPMG Consulting Study of 423 Respondents SourceReference 12

20. KM Trends: KM Becoming More Common 2000 KPMG Consulting Study of 423 Respondents SourceReference 12

21. How Helpful can KM be? • “We had a critical problem that was going to prevent us from launching a new product line on time. We posted the question to the knowledge base and got an answer from an engineer who had just solved a similar problem. We made the fix and got the product out on time, saving us millions in lost revenue” (Ives and Gersting, 1998). Source: reference 3

22. How Helpful Can KM Be? cont. • Shell International Exploration and Production attributes more than $200 million in direct costs saved and additional income in 2002 to the use of its SiteScape online collaboration forum. Source: reference 7

23. Some Best Practices of KM: • “Set strategic priority and management commitment to KM.” • Establish a thorough process to transfer learning throughout the organization. • “it needs to be abundantly clear that [contributing knowledge] will benefit them personally, not just the company. For example, an overworked programmer would personally appreciate the shortcut of grabbing code from a reusable library, rather than having to rewrite it every time it’s needed.” • Combine dissimilar data and information to get a more holistic view of opportunities and threats. Source: reference 3,6&8

24. KM Around the Globe 2000 KPMG Consulting Study of 423 Respondents SourceReference 12

25. A world of Insight CASE STUDY

26. History • Founded in 1873 • Headquarters in St. Louis • 16 Offices Worldwide • Over 800 Lawyers • Over 1900 Employees Source: reference 32

27. Notable Accomplishments • In 1939, Firm takes on as client a "poor Scotsman with just a little ‘bitty’ aviation company" and has served it since its founding. That little company was McDonnell Aircraft Company, now The Boeing Company. Source: references 32 & 35

28. Notable Accomplishments • In 1993, Firm chosen to represent the Government of Kuwait in the preparation, submission and prosecution of its claims of over $100 billion against the State of Iraq arising out of the invasion and occupation of Kuwait. Source: references 32 & 34

29. Keys to Technology • Reliability • Connectivity • Availability Source: reference 32

30. Why invest in Technology? • Allows lawyers and staff to have the best resources available • Lawyers can deliver faster, more improved services to clients • Functionality Source: reference 32

31. Infrastructure • Offices connected via WAN • Traveling lawyers and staff supported with wireless devices (Blackberries, Virtual Private Network, etc.) • Internet, Extranet, Intranet Source: Reference 32

32. Commitment to Technology • Flexibility built into technology • No “one way of doing things” • Web-based tools • First-ever recipient of the “Champion of Technology” Award from the Law Technology News Source: Reference 32

33. KM Projects • Electronic Library of litigation support training materials, including more than 75 video tutorials and newsletters • Installed and deployed Web-based case management tools to allow for real-time, cross-office collaboration • Built and deployed a centralized repository to search, store and retrieve final opinions issued by the firm Source: Reference 32

34. Source: reference 32

35. Source: reference 32

36. Champion of Technology • Bryan Cave received the first “Champion of Technology” award presented by Law Technology News. • The award was won for their use of the “Client Technology Group” • Lawyers, business analysts, Web and multi-media developers, and other staff work together to improve services for clients • Bryan Cave can communicate better and faster with the many diverse needs of their clients Source: reference 33

37. CASE STUDY

38. Company Background • Founded in 1906 as The Haloid Company • Later named Xerox Corporation in 1961 • Became successful by purchasing patents on xerography • Mainly manufactured copiers until the patents expired in the 1980s • Competition increased and Xerox expanded its entire product range • It worked to turn its product into a service Source: reference 29

39. Product Line • Focused on providing systems and services that help customers create, manage, and share documents • Major products include printers, copiers, office supplies, and software • Services include document management and consulting • 2003 R & D and IT budget totaled $868 million • 5.5% of revenue Source: reference 31

40. Financial Information 2003 Revenue = $15.7 billion 2003 Net income = $360 million In 2003, ranked 130th among Fortune 500 companies Total employees – 61,100 worldwide - 35,600 in the United States Source: reference 31

41. Net Income Source: reference 31

42. Xerox’s 5-Year Stock Price

43. Xerox Customers & CIO • Has a wide variety of customers including: • Microsoft • Sun Microsystems • My company! • CIO is also the Vice President of the Corporate Operations group • This group is responsible for information management and strategy Source: reference 31

44. Knowledge Management Strategy • In 1996, knowledge management was the hot, new topic • At that time, there were three main strategies for KM • A top-down, corporate-wide strategy • A middle-out strategy • A bottom-up, low budget strategy • Xerox opted for the bottom-up strategy, but tied it to the company’s vision of KM • Used 30-40 employees to spread the word about KM Source: reference 28

45. Bottom-Up KM Strategy • Xerox chose this strategy for the following reasons: • Little risk, big gain potential • Could lead to new products and markets • Could help convert it to a “document company” • Fits best in Xerox’s corporate environment • Considered a voluntary strategy • When positive results were found, a particular KM practice could then be implemented throughout the company Source: reference 28

46. Three KM Projects • Eureka – first and most successful KM project • Code X – an open-source software sharing platform • Docushare – research sharing platform Source: reference 28&29

47. KM Project: Eureka • Project focused on field and service representatives • Xerox has approx. 18,000 service reps who maintain or repair copiers or printers • Xerox researchers got a first-hand experience of what service reps actually do • They discovered that there are problems that are not covered in the repair manuals • Service reps who work together were found to share their solutions to problems encountered Source: reference 28&30

48. Eureka Source: reference 28

49. Eureka’s Success It saves Xerox between 5% & 10% on labor and parts Annual savings total $10 million It holds 50,000 problem solving tips In 2001, it solved 350,000 problems Voted Best KM Project in 1999 Inspired other KM projects Source: reference 28&29

50. KM Project: Code X • Code Exchange: started in 2001 on Xerox’s Intranet • Developed for Xerox software developers to: • Access and view all source codes • Copy and redistribute freely • Improve existing software • Exchange information on projects • “I wouldn’t share codes with my mother” • Code modifications are included on Code X when approved • Highly sensitive projects can be excluded • Projects are ranked by activity Source: reference 28