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									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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