Iipa lecture km & good governance jan 12 2011

Knowledge Management, Innovation & Productivity

as an Integral Part of Good Governance

Prof. K. SubramanianSM(IEEE, USA), SMACM(USA), FIETE, SMCSI,MAIMA,MAIS(USA),MCFE(USA)SM(IEEE, USA), SMACM(USA), FIETE, SMCSI,MAIMA,MAIS(USA),MCFE(USA)Director & Professor, Advanced Center for Informatics & Innovative Learning

(ACIIL), IGNOUHonorary IT Adviser to CAG of India

Ex-DDG(NIC), Ministry of Comm. & ITEmeritus President, eInformation Systems, Security, Audit Association

President, Cyber Society of India

12th Jan 2011 KM, Innovation & Productivity as an integral part of G Governance-IIPA Lecture

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Agenda

• Recent Developments• Myths of KM• KM & Society• Innovation & Productivity• Standards• Governance & Assurance Maturity Model


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Important Notable Quotes• “Ever since men began to modify their lives by using

technology they have found themselves in a series of technological traps.” Roger Revelle

• “The law is the last interpretation of the law given by the last judge.”- Anon.

• “Privacy is where technology and the law collide.” --Richard Smith (who traced the ‘I Love You’ and ‘Melissa viruses’)

• "Technology makes it possible for people to gain control over everything, except over technology"

John Tudor


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Important Notable Quotes

• Productivity and Innovation are the strongest determinants of standard of living in the knowledge-based society, and provide the only direct route to recession-proofing the economy, and achieving broad economic and social benefits.

• Research performance is a robust predictor of productivity and innovation

• Innovation is at the heart of productivity growth


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Typical Global Scenario

• Cyberspace is Dynamic, Undefined and Exponential

• Countries’ need dynamic laws, keeping pace with the technological advancements

• In a Virtual Space, Netizens Exist, Citizens Don’t!

• Trust in E-environments

• Lack of a mature IT society

• Absence of Single governing body

• Legislation

• High skill inventory

• Reduce fear of being caught

• Disgruntled Employees


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Global issues with Governance ofCyberspace

• Information Technology & Business: current

• status and future

• Does IT matter? IT--enabled Business

- Role of Information, Information Systems

- In business

- Role of information technology in enabling business

- IT dependence

• Changing Role of the CIO

• Web 2.0 and 3.0 and governing cyberspace

• eBusiiness, eHealth, eBanking, eGovenance

• Current Challenges and Issues

12/02/07 Suny BUFF Lecture 27th Nov 2007 6


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The drivers and emerging trends in the Digital/Information age

Tech

nolo

gica

l

Adv

ance

s

Polit

ical

Driv

ers

Economic

Drivers

Social Drivers

Citizens

Community Organizations

Other Governments

Media

Businesses

Employees

Common Needs


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These changes impact the fundamental way that organizations compete in the digital/information age.

Industrial AgeFoundation for

Economic Development

Digital/Information Age

Control of Natural Resources Control of KnowledgeCompetitive Advantage

Protection of Assets/Resources

Open/Competitive

Rapid (re)inventionIncrease Scale Expansion

Business Environment

Labor Intensive Jobs Process-Related WorkWork Outsourced

Decision MakingHierarchical Collaborative

Key AssetsHuman Resources, Information & Technical Infrastructure

Physical Resources

Geographic Scope GlobalRegional


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MEDIATING FACTORS:MEDIATING FACTORS: Environment Environment Culture Culture

Structure Structure Standard Procedures Standard Procedures Politics Politics Management Decisions Management Decisions Chance Chance

ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY


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17 Myths of KM

• A. The nature of knowledge• 1. “Knowledge is always a plus”

• transformational innovation and disruptive innovation

• 2. “Knowledge always helps innovation”• 3. “Knowledge is sticky”• 4. “The concept of knowledge is infinitely

extendable”


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17 Myths of KM

• B. The nature of knowledge sharing• 5. “Knowledge can be transferred”• 6. “Knowledge-sharing is always a good thing”.• 7. “Knowledge is more important than values”• 8. “People always want to have better knowledge”• 9. “The task of KM is to enhance the supply of

knowledge”• 10. “There are structural solutions to the lack of

demand for knowledge”• 11. “KM is the same for all organizations”


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17 Myths of KM

• C. The impact of knowledge sharing• 12. “Knowledge is the only sustainable competitive advantage”• 13. “Knowledge management will transform the business• landscape”• 14. “KM succeeded and no one knows it”• 15. “It was the IT vendors who killed KM”• 16. “The right question to ask is: how do you make knowledge-

based organizations?”• 17. “Knowledge is the raison d’etre for organizations and

explains competitive advantage”


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Principles of Good Governance• Leadership• Selflessness• Integrity• Objectivity• Accountability• Openness• Honesty

• Humane Governance• Should be Creative• Uses Knowledge for

National Wealth and Health creation

• Understands the economics of Knowledge

• High Morality


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New Important Evolving Technologies

• 6T (IT, BT, NT, ET, CT and ST)

• Digital Cocooning,

• Insperience (Indoor + Experience),

• Web Identity (Avata, MiniHome,…),

• Consumption Curator,

• Ubitizen (Ubiquitous + Citizen),

• DMB (Digital Multimedia Broadcasting),

• TPS (Triple Play Service: Internet +Tel+ Broadcast)

• Grid Computing

• Ubiquitous Technology


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New Environmental ChangesNew Environmental Changes

SpaceSpace:: Real Space (Physical) Real Space (Physical) Cyber Space (Electronic) Cyber Space (Electronic) Ubiquitous Space (Cross Space)Ubiquitous Space (Cross Space) TimeTime:: Local Time Local Time Global time (Need) Global time (Need) through Real-time Systemsthrough Real-time Systems (Communication) (Communication) SpeedSpeed:: Mbps Mbps Gbps Gbps Tbps (Tera: 10 Tbps (Tera: 101212)) Pbps (Peta: 10Pbps (Peta: 101515) () (Velocity of Light)Velocity of Light) MediaMedia:: Analog Analog Digital Digital Hybrid Hybrid SystemSystem: : Centralized Centralized DistributedDistributed Integrated Integrated


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The Connectivity Paradigm

• The Physical Connectivity• The Economic Connectivity• The Electronic Connectivity• The Knowledge Connectivity• The Spiritual Connectivity


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How to be an Innovative Organization

• Create a Strategic Vision• Establish Innovation as a Priority• Create Organizational Structures that Promote

Collaboration• Establish Processes to Convert Idea to Innovations• Allocate Resources• Train Workforce on Creativity Tools• Measure & Communicate Results• Recognize Creative Behavior• Reward Innovative Results


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Innovation at all Levels

• Cost• Culture• Time to Implement• Productivity• Knowledge Retention• People Retention• Return on Vision


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FUTURE CORPORATIONS’NEW GENERATION HR POLICY

• To cover all type of Employees• Must attract, hold and make productive people and develop long-term

relationship, knowledge• Outside information-gather, analyze and filter and use & reuse.• Spot, Pat & Develop Change Agents• Big Ideas-Fuse, Infuse & Diffuse• Cost

• Reduced• Controlled

• Assets• To Grow and Nurture


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KM & Community• Despite the rise of virtual technologies, the physical work environment

is still a major factor in knowledge workers performance• Creating a knowledge friendly culture and a productive work

environment, fending off bureaucracy; helping to create and nurture such a community

• Looking at Intellectual Capital created in relation to the resources deployed

• Managers of knowledge workers often have to be knowledge workers themselves; they are “ player/coaches”.

• Getting the right balance of playing and coaching is critical, but is quite difficult

• The fate of advanced economies depends upon making knowledge workers more productive Peter Drucker


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Evaluating KM Strategies:

• Cost• Culture• Time to Implement• Productivity• Knowledge Retention• People Retention• Return on Vision


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A combination of technology, innovation, leadership and inspired workforce-Ingredients for India Development

• The economic strength is powered by competitiveness

- The competitiveness is powered by knowledge power.

- The knowledge power is powered by Technology and Innovation.

- The Technology and Innovation is powered by Resource Investment.

- The Resource investment is powered by Revenue and Return on Investment.

- The Revenue is powered by Volume and repeat sales through Customer Loyalty.

- The customer loyalty is powered by Quality and value of products.

- Quality and value of products is powered by Employee Productivity and innovation.

- The Employee Productivity is powered by Employee Loyalty, employee satisfaction and working environment.

- The Working Environment is powered by management stewardship.

- Management stewardship is powered by Invisible leadership


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Knowledge Work:

• Should have Autonomy & Associated Responsibility

• Continuous Innovation should be built into the KW’s Job.

• Continuous Learning & Continuous Teaching should be part of the Job

• Judgments rather than Measures dominates KWs’ Productivity


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Knowledge Is PowerPerformance of Organisations• What's the path to better learning, better

collaboration, and a better way to measure how well or poorly an organization is performing?

• For many organizations, the answer is Knowledge Management.


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Innovation & Productivity through ICE Technologies• Quantity, Quality, Customization/Personalization & Price are equal• Better Packaging and Integration of Services• Efficient Delivery and Distribution Management• TCO minimized & ROI Increased• Stronger Brand Imaging and better Innovative & effective Marketing• Better CRM and CEM• Better SCM & ERM• Better HRM (Innovative New Generation HR Policies for Growth &

Employee Retention)• Creation, Evaluation and selection of appropriate, affordable &

sustainable Technologies

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Evaluating KM Strategies

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KNOWLEDGE WORKERS VS MANUAL WORKERS

• Own the means of Production

• Totally Portable and Carry Enormous Value (ASSET)

• Organization Need them than they need the Organization

• Jobs Needs them• Convert this knowledge into

Performance Productivity & increase the Capacity of the Organization

• Carry valuable Experience

• Knowledge grown with experience

• Useful only at their Place of Work

• They need a Job

Knowledge Workers Manual Workers


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Managing InterdependenciesCritical Issues

• Infrastructure characteristics (Organizational, operational, temporal, spatial)

• Environment (economic, legal /regulatory, technical, social/political)

• Coupling and response behaviour (adaptive, inflexible, loose/tight, linear/complex)

• Type of failure (common cause, cascading, escalating)

• Types of interdependencies

(Physical, cyber, logical, geographic)

• State of operations (normal, stressed /disrupted, repair/restoration)

.


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CIO & CEO Business Led Info.strategy

CIO & CMO Competitive Edge & CVP

CIO & CTO Cost-Benefit Optimization

CIO & CFO Shareholder Value Maximization

CIO & CHRO Employee Performance and Rewards

CIO & Business Partners Virtual Extended Enterprise

CXO Internal Strategic Alliances


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Capital Productivity (ROI, EVA, MVA)

Material Productivity (60% of Cost)

Managerial Productivity (Information Worker)

Labour Productivity (Enabled by IW)

Company Productivity Micro

Factor Productivity Macro

The Productivity Promise


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“IT Regulations and Policies-Compliance & Management” CREATIVITY VS COMMAND CONTROL

• Too much Creativity

results in anarchy• Too much command &

control Kills Creativity• We Need a Balancing Act In IT Regulations and Policies-Compliance & Management


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• Lately, management realizes that there is a need to extend governance to information technology as well, and provide the leadership, organizational structures and processes that ensure that the enterprise’s IT sustains and extends the enterprise’s strategies and objectives.


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• With the increasingly demanded accountably of the Board of Management, an organization’s information and other intangible assets account for more than 80 percent of its market value,( IT Governance Institute® (ITGI®)). impairments to the integrity of information can be devastating to a company and its senior executives, who are held increasingly accountable for their organization’s financial information.


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Governance Components• Project Governance• IT Governance• Legal Governance• Security Governance• Human & Humane Governance


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Cyber Governance Components• Environmental & ICT

Infrastructure

• Operational (logistics Integration)

• Technology (synergy & Convergence)

• Network (multi Modal Network)

• Management (HRM & SCM &CRM)

• Impact (feed-back correction)

Operational Integration (Functional)

Professional Integration (HR)

Emotional/Cultural Integration

Technology Integration


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Standards, Standards, Standards

• Security• Audit• Interoperability• Interface

(systems/devises/comm.)

• Architecture/Building Blocks/Reusable

• HCI (Human Computer Interface)

• Process• Environmental

(Physical, Safety)• Data Interchange &

mail messaging• Layout/Imprint

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MissionMission

Business ObjectivesBusiness Objectives

Business RisksBusiness Risks

Applicable RisksApplicable Risks

Internal ControlsInternal Controls

ReviewReview

No one Standard Covers All…………


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BS7799-IS 15150 Vs COBIT Vs CMM Vs ITIL


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ILM sophistication

Level 1, the "reactive" phase is labor-intensive and automation-deficient. Level 2, the "efficient" phase features intelligent storage management. Level 3, the "responsive" phase manages business content. Level 4, the "business-driven" phase

provides a unified view of both business and IT by taking advantage of a single database to look across the assets and business needs of the whole enterprise.


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Transition: Insurance Assurance &

Assurance Layered Framework• Insurance• Audit

Pre, Concurrent, Post• IT Audit

• Environmental• Operational• Technology• Network• Financial• Management• Impact

• Electronics Continuous Audit• Certification• Assurance

• Management & Operational Assurance

(Risk & ROI)• Technical Assurance

(Availability, Serviceability & Maintainability)

Financial ASSURANCE• Revenue Assurance

(Leakage & Fraud)• Legal Compliance &

Assurance (Governance)


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GOOD Governance Maturity ModelGOOD Governance Maturity Model


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Lead IT governance—don't be led by it


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“ Regulations and Policies-Compliance & Management”Pre-requisites Physical Infrastructure and Mind-set

• PAST: We have inherited a past, for which we cannot be held responsible ;

• PRESENT: have fashioned the present on the basis of development models, which have undergone many mid-course corrections

• FUTURE: The path to the future -- a future in which India and Indians will play a dominant role in world affairs -- is replete with opportunities and challenges.

In a number of key areas, it is necessary Break from the past in order to achieve our Vision.

We have within ourselves the capacity to succeed

We have to embrace Integrated Security & Cyber Assurance Framework


473/7/2009

IMT Ghaziabad Lecture Prof. KS@2009 March 2009 47

Assurance in the PPP Environment


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Good Governance - Final Message

“In Governance matters Past is no guarantee; Present is imperfect and Future is uncertain“

“Failure is not when we fall down, but when we fail to get up”

THANK YOUFor Interaction:

Prof. K. Subramanian

[email protected]

[email protected]@[email protected]

Tele: 29533068

Iipa lecture km & good governance jan 12 2011

Technology

knowledge management

nature of knowledge

impact of knowledge

concept of knowledge

better knowledge

supply of knowledge

knowledgebased organizations

knowledgebased society