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The Knowledge-Centric
Strategy
Penny Buckley
Collaborative Technologies
Copyright © 2000 , SAS Institute Inc. All rights reserved.
Agenda
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A Definition of KM
A Definition of Collaborative Technologies
How Collaborative Technologies Works - In Theory
How Collaborative Technologies Works - In Practice
Benefits of Collaborative Technologies
Applications for Collaborative Technologies
Case Studies
Tips for Implementation
Familiar Business Trends
Fluid Organizations
Globalization of Organizations
Matrixed and dynamic
Team oriented - cross
organization(s), cross geography
Rapid turn-over
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Selling/competing globally
Organized across
international boundaries
Rapidly Changing Marketplace
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Information Technology
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$1T invested in infrastructure
The world is connected
Infoglut
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Shrinking TTM, shorter
product life-cycles
New competitors - from
different markets, start-ups …
Familiar Business Facts
More than 95% of customers
never complain before leaving
for a competitor
Each lost customer complains
to 18-24 peers or associates
(BEM – before email)
The average business loses 20%
of its customer base annually
Telecommunications and
high-tech customer churn
averages 30-40% annually
There are 180 Million lost customer
affiliations annually …
500,000 daily
Fact: US industry has invested over $1 trillion in technology since
1980.
Problem: There has been little improvement in the efficiency or
effectiveness of knowledge workers
Reason: Much of the technology implemented has ignored how
knowledge workers communicate and operate -- by collaborating and
sharing knowledge.
Source: John Seely Brown
Director of the Xerox PARC Research Center
And… to add to the problem...
Expectations have increased with the recent innovations...
 The web
 GUIs
 Search engines
 Push technology
So… workers expect smoother business processes and
increased customer/corporate intelligence
So what do we need?
“The biggest change that technology could bring
would not be a faster computer . . .
It would provide easy ways for workers to access
and use the masses of information being generated
about the outside (of the organization) . . .”
Peter Drucker
“And about the inside of
the organization”
And …
to capture, share and develop
collective knowledge
Software Adoption Curve
Initiation Contagion
Implementation Maintenance Displacement
Visibility
Bandwagon
Effect
Peak of
Inflated
Expectations
Technology
Trigger
Type A
Plateau of
Productivity
Slope of
Enlightenment
Trough of
Disillusionment
Type B
Type C
Recommended Adoption Time Frame
Source: Gartner Group
Time
XML
Knowledge
Management
xDSL
Visibility
Extranets
On-line Communities
Streaming Media over Web
Interactive/Internet TV
IP Telephony
E-Cash
Biometrics
Agents
Intranet Publishing
Wearable
Computers
Visibility
VRML/Avatars
Data Mining
Java Platform
Network Computers
Ubiquitous
Computing
Personal Digital Assistants
Speech Recognition
Push
Desktop Videoconferencing
Cable Modems
Technology
Trigger
Peak of
Inflated
Expectations
Trough of
Disillusionment
Slope of
Enlightenment
Summer 1998 to Fall 1999
Plateau of
Productivity
Time
A Definition of
Knowledge Management
What is KM?
Using technology and process to…
Capture and accumulate knowledge of people in an
organization
Disseminate knowledge where and when it’s needed
Enable people to re-use the knowledge work of others
Provide an environment for collaboration
Collaboration is Key ...
Why?
 Produces innovation …
• “Innovation is a natural byproduct of people working
together and exchanging ideas, but this level of interaction
is easily lost in today’s age of telecommuting”
 Takes advantage of existing expertise within organization
 Takes advantage of Best Practices
 Eliminates redundant effort
 Can be the difference between productivity and stagnation
But...
According to KM World, April 2000…
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Collaboration is the one area most ignored by firms
claiming to offer a KM solution
• more attention is paid to other features such as
searching disparate data stores, notification and
dynamic content delivery
Two Approaches:
The old way
CC: Everyone!
A better way
Knowledge Repository
SCS
Group
Memory
KM - The Pro’s & Con’s
Weaknesses:
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Need to ‘prime the pump’ to get going employees will only use KM if they get
out more than they put in.
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Users don’t always know where to place
new knowledge - it tends to congregate
in ‘default’ locations.
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KM systems can descend into chaos if
not structured - users can be
overloaded with choices and content.
Strengths:
 Provides an easy way to
collect and store knowledge.
 Powerful search function
allows users to find information.
 allows users to collaborate
around topics/themes.
Knowledge @ Work
Retailer
 Service and marketing share customer intelligence
Software firm
 Sales people access product data repositories for product
info, funnel reviews, contact info, competitive info, etc.
Pharmaceutical Firm
 Collect multi-dimensional information from disparate
sources
to assess and create a portfolio for a drug under
development
Adapted from Michael Hammer
What do all these examples
have in common?
They are all about
improving business performance via
knowledge capture, sharing & collaboration.
So how does BI fit in?
BI Simplified
Marriage of Two Worlds
Business Intelligence...
for knowledge creation
Knowledge Management...
for knowledge exploitation
A Definition of
Collaborative Technologies
CT = BI + KM
Collaborative Technologies seamlessly unites BI
(structured information), such as reports and analysis,
with unstructured information, such as email and documents, enabling
business users to consistently
access, share, and re-use knowledge
within a web-based collaborative environment.
Delivering a New Level of Value
Value chain
“Let’s propose a new
ad campaign ”
“Toy sales are
dominated by boys
in urban areas”
Business
Intelligence System
“I’d like to reuse the
Toy proposal
for my
new project ”
Data
Warehouse
Data
Collaborative
Server
Information
Knowledge
BI - The Pro’s & Con’s
Weaknesses:
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BI can identify relationships but
not the meaning of those
relationships.
Can make use of the vast
amounts of data collected,
regardless of where & how it is
stored.
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The people who generate reports
may not have a close relationship
with the people who use them.
Analysis of this data can spot
hidden trends and
relationships.
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Decision makers can model
“what if” scenarios based on
the actual data.
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Analysis tools often require
specific skills to use.
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Strengths:
Extending the value of BI:
Business Intelligence ...
• Technology creates information from data
• Allows decision makers to make well-informed, timely
decisions (one person at a time or via meetings)
Collaborative Technologies ...
• Information, in context, can be captured,
disseminated, and reused
• Decisions can be shared and reused (sharing brains!)
• Allows broader access to decision information (lots of
people can share brains!)
How Collaborative Technologies Works
- In Theory
Or ask more detailed
questions - using the
Business Intelligence
capability directly
Collaborate:
from within the stored
• find & reuse work
reports • discuss results
How the SCS Works
People across the
enterprise can then
the
access thisRefine
information
questions
and collaborate to
transform it into
Business
Actionable Knowledge
Intelligence
SAS
Collaborative
Server
• access • analyze
• manage • present
data warehouse
Structured Data
Deliver
dynamic
reports
SAS Institute’s
Business Intelligence
tools manage the Data
Documents
and transform it into
Web pages
E-mail
Knowledge
• integrate info from
multiple sources
The reports from the
Business
OtherIntelligence
kinds of
documents
tools can &
beresources
stored
Subscribe to:
caninto
alsothe
be• BI‘Group
added
reports to
• interpretations
the
Memory’
Groupserver
Memory
(SAS
and
and analyses
Collaborative
associated
with
Server)
• topics
of the
interest
Business Intelligence
reports
Capture:
• business decisions
• opportunities
• best practices
How Collaborative Technologies Works
- In Practice
Some of the Benefits of
Collaborative Technologies
Value Proposition
Collaborative Technologies Answers Real Business Issues...
 Maximize accessibility and ROI of existing and new
business solutions
 Promote organizational learning despite increased
workforce mobility
 Capture knowledge to fuel innovation - a sustainable
competitive advantage
Get More Value From BI & KM
BI and KM are synergistic - the whole is greater than the
sum of the parts:
 BI alone lacks the means to share and collaborate.
 KM alone lacks the ‘hard edge’ of business reporting.
 Each complements and augments the other.
OR…
BI legitimizes KM
&
KM extends BI
Extend Your BI Investment
Data
In
Manage
Organize
1000
Collaborative
Users
Exploit Information
Out
25 BI
Users
Extend Your HR Investment
User’s Span
of Influence
Collaborative Span
of Influence
Extend Your IT Investment
Collaborative Portal
Customer
Relationship
Management
Enterprise
Resource
Planning
SRM
Etc.
Some of the Applications for
Collaborative Technologies
The SCS as an Enabling Technology
"Knowledge management in conjunction with any other
application -- CRM, HR -- will eventually be ubiquitous.”
Integrate Collaborative Technologies with other solutions:
CRM
BSC
SRM
DW
HR Vision
CFO Vision
Collaborative CRM
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Monitor and collaborate around customer information
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Communicate and collaborate with customers.
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Customer service – SCS captures and integrates
documents, discussions and expertise.
• With better knowledge and more access to
information, response time to customer inquiries can
be significantly shortened.
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Collaborate about customer marketing campaigns.
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Reuse previous campaigns.
Campaign Management with Collaboration
External Data
Responses
Campaign
Analysis
Data cleaning
Ensure data quality
Integration
De-duplication
Enhancement
Web
drilldown
Analyze
slice& dice
Visualize
Operational
Marketing
DB
Data Mining
Customer DW
Operational
Systems
Data Mining
Campaign
Management
Fulfilment
Collaborative Strategic Vision
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Allows the business to base Key Performance Indicators
(KPIs) on ‘real’ data / information.
Communicates KPIs and business reports to those
responsible for delivering against targets.
Allows individuals to monitor their progress against plan
and discuss variations.
Learn from doing and achieve year-on-year
improvement.
Supplier
Relationships
Management
Process
Strategic
Analytic
Customer
Relationships
BSC
SRM
HR
Finance
CRM
IT
Production
Core
ABC/M
Knowledge base
DWA
Collaborative Technologies
Information Infrastructure
Transaction Systems (operational apps)
Collaborative Supply Chain Management
“In the future, the most successful businesses will be those
that can establish, manage and maintain a dynamic supply network
(series of supply chains that can rapidly adjust to respond to
customer needs) …
… such hyper-responsiveness will require organizations to
leverage global communication networks … and to
collaborate on business analysis and planning
throughout the entire supply network…”
Tim Minihan, E-business Research Director, Aberdeen Group. KM World, April 2000
Who will Likely Adopt?
Organizations that excel in innovation and learning
including:
 Strong emphasis on collaboration & sharing
 Substantial investments in managing information
 Innovative use of the Internet and Intranets as well as
other collaborative technologies to increase
communication
 Strong emphasis on on-going training
 Managerial group that explores and links new
technologies with business applications
Collaborative Technologies
Case Studies
Rapp Collins Worldwide
World's largest direct marketing company. Targets top-tier, high-tech
companies. Has clients in industries such as communications,
pharmaceuticals, electronics, semiconductor, entertainment and
automotive.
 Predicts the outcome of mailings and campaigns to help increase the
response rate and to reduce mailing costs.
 Electronically collaborates with their customers around confidential
materials such as catalogs graphics, logos, campaign ideas and
commercial clips.
Requirements:
 Install must be short, with no major customization or administration
 Intuitive interface = small learning curve for their users
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Quaker Chemical
Quaker Chemical Corp. markets its custom-formulated chemical
products and its fluid management services to manufacturers around the
globe.
 Quaker's 1,100 associates are spread among more than 20 offices
worldwide.
 Quaker.one serves as an information portal so that employees can
communicate and find information.
Requirements:
 enable global communication and collaboration
 access to disparate data
 can integrate with their existing applications (CFOV and their Sales
and Margin Analysis Application)
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Tips for Implementation
Characteristics of Organizations
Poised to Adopt:
Organizations that excel in innovation and learning including:
 Strong emphasis on collaboration & sharing
 Substantial investments in managing information and
knowledge
 Innovative use of the Internet and Intranets as well as other
collaborative technologies to increase communication
 Strong emphasis on on-going training
 Managerial group that explores and links new technologies
with new business applications
Implementation Questions to Consider:
What information would enable the knowledge workers to
perform the process tasks better?
 Does the base information exist within or does it need to
be obtained.
 How should it be accessed, managed, analyzed,
presented?
 How should it be maintained?
 Does the culture promote collaboration?
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Adapted from Michael Hammer, 1999
Driving Factors:
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Speed
Maturity
Generality
Precision
Complexity
Culture
Adapted from Michael Hammer, 1999
Who Does the Work?
An administrator or coach ensures the organization of the
knowledge.
 The COP leader (owner of the business problem)
 Facilitator of inter-process sharing acts as the manager of
enterprise level resources
 The trigger (consultant and stimulant)
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Adapted from Michael Hammer, 1999
Keys to the Kingdom:
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Organize around key processes.
Start with a pilot. Build on early successes.
Plan ahead. Resource the project appropriately. Don’t let
ad hoc efforts create unmanageable chaos.
Software is your friend, especially when it dovetails with
existing applications and working environment.
Don’t under estimate required cultural change.