Knowledge Management DPSA KM Workshop Mohamed F Bhyat and Ernest Ramphele 14 / 15 February 2008 Snapshot - The Journey 1999 2000 2001 2002 2003 2004 2007 2008 Vert Global Ops ProdBorn in building a Africa, GTM Establ. Industry Establ. SAM Intern Namibia HomeBase Milestones Company GTM Program Office Prod COEs -Caribbean Solutions -India global bridge, living a simple -Dubai philosophy of, „Knowledge Customers 20+ Empowerment‟. 75- 100+ 150+ 100- 50- 30- Clients are our Partners We assist our Partners in Revenue <R5M establishing >R5M >R12M >R18M Intelligent >R100M >R20M >R25M & >R270M Agile Information FY08 Management Practices,300 the Black Impumelelo Top Accolades Achiever Variety of African Achiever Awards Fortune foundation for establishing a Award Variety of Technology Top 100 Awards Client Partners “Knowledge Enterprise”. Our Company Structure Slide 3 Value Chain •Concept •Business •Business •MIS Strategy •Business •Thought •Strategy Implementation •Technology Strategy Intelligence leadership •Vision strategy •Architectures •Knowledge Mng •Creating the •Purpose •Change Mng •Applications •Client satisfaction need •BPR •Capacity •Implementation •E commerce •Awareness • E biz strat building •Networks •E Gov •Mentorship •Systems Integration •CRM •Leadership •H/W •S/W development •Call center •Facility mgt •Administration Feedback Loops 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. Tacit knowledge: less structured, answer varies with context, takes form What is KM? 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 company‟s employees possess; their capability, creativity, capacity, relationships and networks • Information Capital: the company‟s databases, information systems, networks, and technology infrastructure. • Organizational Capital: the company‟s 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 • (Rules) based Explicit These assets are often intangible, have perceived value that can only be recognized lead transacted, and •structured processeswhento answers; can be are not measured by GAAP − automated KM is a key enabler of modern comptrollership (Financial Management and Control) Collaboration between people •Libraries & Taxonomies. Make everything explicit •Connect people to people - networks for Control the informational space learning. Limit information to that which supports action 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 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. 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. •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? Intensity of K in wealth creation Post industrial Taylorism Scientific Management Industrial revolution Pre industrial time existed and resided with for example organized religion, with individuals, as crafts. •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 K the engineering of work. Economies? Intensity of K in wealth creation Post industrial 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. •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 Intensity of K in wealth Taylor (ism) Scientific Management Industrial revolution creation Pre industrial 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 - OECD’s Program for International Student Assessment (PISA) • Finland is among top performers in patenting • Finland’s success shows that a strong knowledge economy can be built in a small and comparatively Peripheral country How Did Finland Become A Knowledge Economy? • Increasing R&D intensity was facilitated through national consensus building • Specialization in high-tech and R&D-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 • Finland‟s 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 PORTER‟S FOUR-PHASE MODEL OF NATIONAL COMPETITIVE DEVELOPMENT and RECENT DEVELOPMENTS IN GAUTENG Wealth driven economy Knowledge driven economy Knowledge Investment driven •Gauteng City Region economy •Triple Helix •Indigenous innovation •Post apartheid •Own R&D and technologies •GPG Smart Province •ICT, Resource driven •Automotive economy •Social spending •Blue IQ •Manufacturing •GEDA •Aeronautics , •Gold driver. •GSSC •Chemicals •Related industries •Innovation Hub •Environment •Financial and other •Automotive sector •Transport •Support services •Industrial base •Logistics •Inland port •Gautrain Late 1800’s 1995’s to 2008 ’s to 2020 and To mid 1980’s present 2020 beyond Adapted from Porter 1990 and Hernesniemi and others 1996. Global View: Knowledge Economy Index 1995 and most recent year Sweden 10 Finland Canada Japan USA 9 Ireland Australia 8 E & Central Asia Korea G7 Mexico Germany 7 W. Europe E Asia Russia 6 Brazil Argentina 5 South Africa China Jordan Turkey Developed 4 Tunisia World Oceania India Latin America 3 Kenya Indonesia South Asia East and 2 Ghana N. Africa Africa 1 Pakistan Nigeria 1 2 3 4 5 6 7 8 9 10 Source: World Bank Knowledge Assessment Methodology INFORMATION AND KNOWLEDGE MANAGEMENT (KM) Internal Data External Data Current DW DW Process Structured Delivery Architecture Architecture Customise ROLAP Full Data SS1 DW Summary & Web Functionality Transform Server Customer Info Transform & Load • MOLAP Dims Extract, Cleanse MOLAP S Web Extract SS2 Push P Portal • Competitor Info O MDB R Extract & load Data Reports • Market Intelligence Source Marts Replication Area Data Marts Metadata Repository Sensitised, dynamically changing dimensions, as well as Unstructured Tacit Knowledge (AI) and Informal Information Exchange Data Data Information Insight Intelligence ACTIONABLE Knowledge / Awareness / Wisdom Mining Value Chain Geologists Geochemists Geophysicists Geostatisticians Exploration Role of State Capital Mining engineers Mining Geophysicists Mechanical Engineers Financial expertise Metallurgists Market analysts Exchanges Artisans Capital Capital markets Marketing Role of State Logistics And Infrastructure Sales Role of State The Substructure: Educational system; academic and applied universities; Role of the state; Environment, Energy , Water, Entrepreneurs JHB Stock Exchange Great leap in improvement purely Innovation driven from efficiency management: improvements will People, processes, and systems be incremental 2005 To 2007 valuation went from R250 000 to R7.5B Knowledge Management and the SA Public Sector 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 KM and Your Desired Outcome Effective, efficient Business BU 1 driver of the use of Strategic Intent BU 2 information and & Vision knowledge for BU n Development •Innovation and Continuous Improvement •Able to respond to changing environmental conditions. •Deliver in line with mandate & National Imperatives Growing Greater Growing Professionalism Build, Leveraging Organizational operational skills institutional Learning Acquire, technology culture capability capacity capability integrity 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 Information value chains Market expose package repurpose assimilate leverage Information monitor Asset mine valuation Demand render Supply Side catalogue secure enhance transform integrate organize cleanse screen profile capture generate Information supply chain maturity Relationship Between Structured / Explicit KM Products; Intangible Knowledge And Capabilities And Intellectual Capital Within The Organization ROI ROI ROI Marketed Complex Packaged new products Repurposed Assimilated Information Integrated And Leveraged products Rendered New K generated Catalogued Communities of Practice information Profiled And Organized Feed into HRD Strategy Cleansed And Structured Lessons learnt Capabilities risk Data warehouse Structure via embedded processes Knowledge map data Structured / transactional data Unstructured information Capabilities audit Structured Intellectual Capital Management Information Management Enterprise Framework KM •Methodologies •Best practice •IP Assets “we expected too much of public service” Fraser - 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 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.” 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 Our Model know-why refers to the scientific knowledge of the principles and laws of nature. . Know–who who knows Know-how relates to the skills what and or the capacity to do who knows . something. how to do what. . Know-what relates to a person’s knowledge about facts . 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 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.
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