K nowledge M anagement of

1. KnowledgeManagement of This report was prepared by Group no.8 Young Ha, Kim (20011015,PHY) Eun sil, Kim (20041026,CSE) Hae min, Park (20041234,IME)

2. Contents 1. About KM/Introduction/Effects of KMSK KM backgrounds/SK corp. overview/SKMS/Strategic need for KMDetail about SK KM/Knowledge portal/Procedure to establish K-base and CoP/About CoP/History of SKMSEffort to settle SK KM/Employee interview/Settlement of KMResults/Successful case(2)/Survey result 2. 3. 4. 5.

3. land, energy, equipment Knowledge, information Innovative Techology Convergence of technology Line Manufacturing Manufacture on order 1. About KM Introduction Knowledge Management comprises a range of practices used by organizations to identify, create, represent, and distribute knowledge for reuse, awareness and learning. Definition Entering the knowledge-based society New Management Paradigm Background • Labor knowledge becomes valuable • (Gold Collar) • Relative expansion of investment on • information technology • Ability to manufacture products through convergence of technology to meet diverse needs of customers Old Paradigm New Paradigm *knowledge is the core of value creation

4. 1. About KM Effects of KM Changes as a result of KM Closed reactive Standardized Commanding Open proactive Diverse excitement Idea trust Cutting Cost Synergy createdHeightened corporate value Ultimate results of KM

5. History • Established in 53’ • 2nd largest corporation in Korea • Among top 10 corporations of Korea since 1975 • Initially specializing in fabrics  Vertical integration of chemicals • In the 80’s develops mobile communications as its future business driver 2. SK KM backgrounds SK corp. overview SK corp. A holding company since 1st of July 07 • Energy & Chemical • SK corp  energy (since 1st of July) • SK chemical • SKC, etc. Telecommunication = SK telecom - SK C&c, etc. • Trading & Service • SK networks • SK constructions • SK shipping, etc.

6. 2. SK KM backgrounds SKMS Share accurate information among participants so that they couldapply it in company operation Definition of KM of SK Infra KMFramework Contents Strategy/Value People Process System • Leadership by example and staff members’ enthusiasm • Change managed exclusively by a specific organization • Systematic process of collecting, evaluating, integrating, analyzing knowledge • Extensive use of information technology (DB, N/W) in order to effectively manage information • Establish scope of information and knowledge that are necessary • Store information in one’s head once it has been understood clearly • Express the know-how so that others can understand fully. • Maximize productivity by making extensive use of knowledge of managers while making decisions or pursuing SUPEX KM in practice

7. Strengthen core competencethrough KM Change of expected role Accomplish Visionary goal Driving Enabling 2. SK KM backgrounds Strategic need for Knowledge Management • Core Driver of the SKMS realization and pursuit of SUPEX • Successfully embodies knowledge based society based on corporate level incentive-laden outcome evaluation • Change of Value Chain • Enlargement of process complexitymutual reliance Process Individual competence Operation process Organization/culture • Development of crisis awareness with regards to change of environment • Expansion of mindset for voluntarily sharing of knowledge implementation of SKMS Support learning activity Incentive on outcome World class corporation as the frontier of digital economy value/contribution Knowledge asset Information system • Early and yet, stable implementation of institute system’s unique function • Establishment of value-inclined system based on strengthened network among systems Pursuit of SUPEX organizational competence

8. 3. Detail about SK KM Knowledge Portal – i OK i OK (Knowledge Portal HR KM System GroupWare TDP/IDP Topic Knowledge Base Solution Pack KM Safety/environment Marketing China Biz CS mgmt SKMS/SUPEX SOP/operation standard Best Practice Industry/economy status Technique/know-how technology product Mgmt plan Regulation Case Corporate/Personnel/Contact History Solution Pack e-HR CoP Learning Squad Project Team Room Share information e-Learning Registration of Knowledge/case Register Knowledge KM case Best Practice Communication Q&A/FAQ Discussion Expert within Corporation Search Speed Search Power Search

9. KB/CoP Sponsor (executives, team leaders) Marketing manufacturing R&D support CoP CoP CoP CoP 3. Detail about SK KM Procedure to establish Knowledge Base and CoP Deduce Knowledge Map Grasp the necessary knowledge Deduce KB Organize CoP • Structuralize defined knowledgeable actors into simple format • Construct content of knowledge • Consider Career Field • Categorize necessary knowledge into high related and mutually exclusive units • Obtain effective contents • Fields of study/ job/ project/organization • Development plan in phases • Define knowledgeablefactors which need to be managed strategically CoP (Community of Practice) • Network of experts seeking improvements in knowledge creation/sharing, problem solving

10. Mutual Participation • Shared Knowledge Accumulation Characteristicsof CoP 3. Detail about SK KM About Community of Practice Knowledgecreation Knowledgemanagement Knowledgecategorization CoP room New document Write out K-Pack complete -branched depending on the purpose of establishment -branched depending on scope of knowledge as library -Document transfer among CoP -Categorize depending on document format Register maildocument Reviewed byexperts Register settledocument Transfer to K-Base K-Base : Function is to bestow value and manage knowledge created through CoP in order to bring out synergy effect when reused. Knowledge Pack :Organizes knowledge created through CoP to make it suitable for project record management. core knowledge acquisition will be used to attain, manage, and reuse the core knowledge.

11. Exhibitionapplied KM base established KMactivated KM internalized/stabilized 3. Detail about SK KM History of SKMS 1979 1989 1993 1995 1998 1999 2000 2001 2002 2003 2004 SKMSestablished Pursuit of SUPEX New Vision New SK Change management KM study Mgmt strategy/result combined KM considers each biz characteristics KM understood work=KM Standard of operation amended ISO certification KM SQC activity Information forum CoPactivated Web BasedK-Portal established KM case published Introducing groupware Integrated QA system

12. 4. Effort to settle SK KM Employee Interview SK Corporation KM driving team leader– Min Ho, Jo The problem with Korean companies is that they assume IT oriented solution will do in order to promote KM. In addition, they believe that system for knowledge management is not a good KMS It gets worse when people start putting too much importance is mere accumulation of high-quality knowledge or points (mileage) in the beginning. Knowledge is all about the people who use it. The primary focus of KM should be managing the people who make use of KM . • Manage people • KMS Solution is not all there is to it. Source: KM case study, DBguide.net

13. Excecutives Training KM system Monitoring 4. Effort to settle SK KM Settlement of KM • Talk/correspondence with CEO • Regular KM reportings Rewards • Evaluation on number/qualityof posted knowledge by fellow employees • Rewards to function /business/corporate level • Email on how-to-use KM toall staff employees • PR on excellent KM practices • Development of training material • Status on KM • Survey on employees understanding of KM each year

14. Ulsan refinery production team: set in the rear in order to prevent error from occurring due to uneven flow, bubble formation • Ulsan Operations: If certain conditions are met, it makes no difference 5. Results Successful Case Case: Setting up Marine Loading Arm Question: Busan Logistics center: Set stop valve frontal/rear due to crowded space Answer: Answer: • Seoul Logistics Support Team: Set in the rear in order to prevent shipping excess • Seoul oil pipeline team: set in the rear in order to prevent error from occurring due to uneven flow, bubble formation With the help of KM system (people of diverse backgrounds, geographies) it is concluded that setting up in the rear area is the better way to go

15. Amass information quicker than competitors Improved team work More precise forecast Increase in trading volume by 400%, profit by 600% in 3 years Develop 1st, 2nd, 3rd generation of trading method 5. Results Successful Case Case: Information Share Aromatic trading CoP - Sharing CoP among marketing people in charge about overall chemical industry status Knowledge regarding sales/manufacturing/R&D, which previously did not communicate well among themselves, is integrated *SUPEX Awarded: ‘Discovery of new biz model through intangible asset’

16. Survey on contribution of KM success (2002~4) Over 51% 11% 31~50% 27% 21~30% 28% 11~20% 23% Below 10% 11% Indirect profit: 316 billion WON Direct profit: 11.6 billion WON -Saved communication cost (reduced meeting time, travel cost) -Reduced employee training cost -Reduced manufacturing shut down 5. Results Survey Result Effects of KM based on personal experience (survey) Questions • Increase in operation efficiency as a result of extensive use of work-related knowledge • Enhanced capabilities through learning • Improved & standardized methods of operation • Steep learning curve for the novice • Minimizing the effects of absence of experts • New Ideas • Creation of novel management techniques and technology • Improvement in abilities to forecast the market • Quicker satisfaction brought to customers diverse needs and dissatisfaction • Increase in sales by selling knowledge Contributions

17. Thank you • End of presentation