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Corporate Information and Operations
Siemens AG File: CIO FF_Template5/20/2010 Page: 1
Planning and Executing the Business Case for Knowledge Management
Demonstrating the Value of KM, 26-27 November 2003, LondonDr. Josef Hofer-AlfeisSiemens AG, Corporate Information and Operations, Management & Support Processes and Knowledge Management
This is Siemens
LightingAutomation andInformation and Energy and TransportationHealth Care
Business Areas:
g gControlCommunications
gyPower
p
Siemens represents one of the largest human and knowledge networks in the world:
Using KM drive Perfmnce&Inno HA20030911e del.ppt 12-Nov-03
Siemens represents one of the largest human and knowledge networks in the world:more than 430.000 employeesacross borders into 190 countries and culturescollaborating with numerous customers and partnersderives 75 percent of total sales from products developed in the last five years
Corporate Information and Operations
Siemens AG File: CIO FF_Template5/20/2010 Page: 2
Effective socio-technical KM systems Some usage indicators from March 2003
Overview from the top 4 group initiatives and from corporate activities:
Communities of Practice (CoP): >1500, including >250 cross-group or corporate,>90,000 community members90,000 community members
Knowledge Marketplaces with >75,000 users
Knowledge/Content, e.g. Proficiencies of >430.000 employeese.g. in various organizational structures, internal and external, … 190 countriese.g. codified in >250,000 knowledge objects in the marketplaces
Processes, e.g. per 1000 knowledge objects typically 300 downloads/month;e.g. 75% of Urgent Requests responded in less than 2 days in many communities
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Sources: Andreas Manuth, Information & Communication Networks, Dirk Ramhorst, Siemens Business Services, Bernhard Schoen, Information & Communication Mobile, Bodo Winkler, Siemens Med, Dr. Josef Hofer-Alfeis, Corporate Information & Operations, March 03
KM organization in Siemens:
~25 full-/part-time KM drivers on corporate, group and region level
>1000 part-time KM supporters (moderators, facilitators, ..), ~30 KM consultants
CoP KM: ~300 members; CoP Innovation Mngt.: ~100 members
Agenda
• Creating Strategies for the major KM drivers
• Executing KM strategies
• Diagnostics and Measurements on Knowledge and KM
• Integrating KM into a Business Process Framework
Using KM drive Perfmnce&Inno HA20030911e del.ppt 12-Nov-03
strategic perspective of business owner and management team Improve knowledge work and learning
focused by the business strategy and orchestrated across support functions:coordinate adequate staffing and proficiency buildingdrive effective knowledge multiplication (diffusion)coordinate efficient knowledge documentation (codification) Knowledge Strategy
Co-operating Strategies needed to transform successfully
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Business Case:Business/org. transformation in post-merger phaseKey Performance Indicators:•Client success and satisfaction•Process & project performance•Employee satisfactionCurrent impact: in 2002/03Future impact: in 2003/04
Corporate Information and Operations
Siemens AG File: CIO FF_Template5/20/2010 Page: 5
The complete Knowledge Cockpit to plan improvementsExample: Knowledge Area “Value Selling”
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Knowledge Action Plan: typical action samples
Define – install – operate – create - promote …
• Subject Matter Expert for …• Role and Career for Project Managers• Knowledge Transfer Workshops with internal/external K Stakeholders for …• Competence Network / Community of Practice for …• Regular project / leaving expert debriefings in …• Learning processes from projects with clients in …• Cookbook / Framework / Training for …• Taxonomy … Content structure in …
Why is an inter-disciplinary KM Team so important?KM systems are holistic socio-technical systems
Most of the effective and enduring KM solutions result from a coordinated collaboration of various management disciplines: Knowledge, HR, Information/IT, Org/Process, Innovation/Intellectual Property, … , g , p y,
Simple example: Leaving Expert / Project Debriefing • Process design and implementation (e.g. Preparation – Transfer of
Knowledge areas / Relationships / Responsibilities / Lessons Learnt –Codification and demand-specific provision/distribution): KM Team
• Integration into HR / Project Management processes: HRM/PM• Integration into collaboration and document management
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Knowledge KM
State
Value XX
• Knowledge quality/reuse feedback• Business Impact of Knowledge Area (KSP)• Length of information „genealogy chain“• Level of Proficiency, Diffusion, Codification (KSP)
Corporate Information and Operations
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ROI in KM projects: Examples from the Siemens Catalogue of proven Cost-Benefit Arguments (SCoBA) - Good practice sharing of benefit arguments
• reduced resource and infrastructure requirements by improving processes for codified knowledge assets: ~ Mio’s € savings
• reduced travel and collaboration cost by online collaboration (workshop with 70Cost reduction
• more efficient search for & access to information: > 48h saved per year/user of Information Management System (15.000 users)
• reduced time to make an offer due to faster access to experts, crucial knowledge assets and avoiding redundant work by ShareNet:in average 8,900h time savings per month
• reduced problem solving time by Communities of Practice ensuring permanent availability of experts and high quality documents: half day per week in average
reduced travel and collaboration cost by online collaboration (workshop with 70 people from 15 countries, 76 postings in ShareNet): ~100 thousands of € savings
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Support ProcessesProcess &Information
Mgt.Financial
Mgt.HumanResour-
cesEnviron-
mentQuality
Mgt.Commu-nication
RealEstateMgt.
Procure-ment
Product Lifecycle Management (PLM)
Phase outCommer-cializeRealizeDefineProduct
Portf.-Mgt.Plan
KnowledgeMgt.
?
Support Process Cluster “Knowledge Management”(DRAFT)
Govern KM…From mandate to efficient organization, KM strategy and program.
Develop and rollout KM Systems and Tools
Improve Knowledge (States and Processes)
Manage Relationships
g Pr
oces
ses
for K
M
From KM stakeholder contact and promoting KM solutions to satisfiedKM stakeholders
From knowledge strategy and its action plan to improved proficiencies,knowledge diffusion and codification (static and dynamic aspects)and KM systems requirements
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Conclusions and Overview on Key Success Factors
Using KM to drive performance and innovationConclusions and Lessons Learnt
Evidence via business examplesKey success factors for realization :
Planningg• integrating proficiency, diffusion and codification issues by a comprehensive
knowledge model• focusing and orchestrating business improvement actions by top-down Knowledge
Strategy• co-ordination of KM players and their strategies:
• business owner and management team (Knowledge Area Coaches)• interdisciplinary KM team (HR, IT, Org/Process, ….)• Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)
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in cookbooks …in teams and comunities …
Codification
Prof
icie
ncy
3-D knowledge spaceSources for content: Max Boisot, CIBIT, SiemensSource of images: Bocuse à la carte – Kochen mit dem Meister. Falkenverlag, Niedernhausen/Ts. (1985)
Tips – interactive forums – courses with livecamRecepies – online shops, e.g. www.bocuse.com
or more in www.frank-buchholz.de
Knowledge
Knowledge: our definition and basic dimensionsModel of the 3-D Knowledge Space and basic metrics
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Knowledge Marketplaces…are the (standard) Knowledge
Sharing Platform including technical platforms, tools, workplaces, services, and
infrastructure as well as office spaces and communication
channels and events;
activities
... means the capability for effective action in people, organizations and codified in descriptions, processes and systems,
which is medium in knowledge repositories and flows. …concerns issues of structure,
quality, validity and value
Corporate Information and Operations
Siemens AG File: CIO FF_Template5/20/2010 Page: 15
Using KM to drive performance and innovationConclusions and Lessons Learnt
Evidence via business examplesKey success factors for realization :
Planningg• integrating proficiency, diffusion and codification issues by a comprehensive
knowledge model• focusing and orchestrating business improvement actions by top-down Knowledge
Strategy• co-ordination of KM players and their strategies:
• business owner and management team (Knowledge Area Coaches)• interdisciplinary KM team (HR, IT, Org/Process, ….)• Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)
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Implementation
Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)
• implementing KM holistically via Socio-technical Architecture and Process Model• appropriate measurements• integrating Knowledge Strategy Process (KSP) and KM processes in
Business Process Framework
Contact
Dr. Josef Hofer-AlfeisSenior Consultant, Knowledge Management
Strategy, Diagnostics and Measurements,KM Competence Development,Facilitator of theCommunity of Practice KM
Siemens AG, CIO PM MSKCorporate Information and OperationsProcess ManagementManagement & Support Processes and Knowledge ManagementSüdallee 1 (München-Airport)
KM & KSP Consulting Services:Siemens Business Services: http://www.siemens.com/index.jsp?sdc_p=t4c61s3u2o1052006d1065184pn1052006fl0m&sdc_sid=24119695695&
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Ulrich Reimer, et al (eds.): WM2003: Professionelles Wissensmanagement – Erfahrungen und Visionen, GI-Edition, Lecture Notes in Informatics, 2003
• APQC International Consortium Benchmarks on KM: Siemens selected as Best Practice Partner
• 1999/2000 Successfully Implementing KM
External Recognition
• 2000/2001 Communities of Practice• 2001/2002 Retaining valuable Knowledge• 2002/2003 Using KM to drive Innovation• 2003/2004 Transfer of Best Practices (invited)
• Most Admired Knowledge Enterprise study (MAKE from TELEOS/The KnowNetwork):
• international 1998 - 2003: 6th time only German company among the 20 best world wide and ranked number 7 in 2003 out of 101 companies
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• In Europe: 2001/2 ranked number 5 out of 91 companies• Invited speeches at numerous international conferences• Knowledge Management Case Book, 3.500 copies sold in 12 months
ISBN Order Number: 3-89578-159-2 at PMCD / Wileyand many other publications