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Copyright © 2000 , SAS Institute Inc. All rights reserved.
The Knowledge-Centric Strategy
Penny Buckley
Collaborative Technologies
Agenda 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 Matrixed and dynamic Team oriented - cross
organization(s), cross geography Rapid turn-over
Globalization of Organizations Selling/competing globally Organized across
international boundaries
Information Technology $1T invested in infrastructure The world is connected Infoglut
Rapidly Changing Marketplace Shrinking TTM, shorter
product life-cycles New competitors - from
different markets, start-ups …
Familiar Business Facts
Each lost customer complains to 18-24 peers or associates
(BEM – before email)
The average business loses 20% of its customer base annually
There are 180 Million lost customer affiliations annually …
500,000 daily
More than 95% of customers never complain before leaving
for a competitor
Telecommunications and
high-tech customer churn
averages 30-40% annually
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 BrownDirector 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
Source: Gartner Group
Maintenance
DisplacementImplementation
ContagionInitiation
Visibility
Recommended Adoption Time Frame
Type A Type B Type CTime
BandwagonEffect
Slope ofEnlightenment
Plateau ofProductivity
TechnologyTrigger
Trough of Disillusionment
Peak of Inflated
Expectations
Software Adoption Curve
Summer 1998 to Fall 1999 Time
KnowledgeManagement
Slope ofEnlightenment
Plateau ofProductivity
Trough of Disillusionment
Peak of Inflated
ExpectationsTechnology
Trigger
Intranet Publishing
XML
xDSLExtranets
Streaming Media over Web
IP Telephony
E-Cash
Agents
VRML/Avatars
Java Platform
Push
Cable Modems
Desktop Videoconferencing
Speech Recognition
Personal Digital Assistants
Data Mining
On-line Communities
Interactive/Internet TV
Biometrics
WearableComputers
UbiquitousComputing
Network Computers
Visibility
Visibility
A Definition of Knowledge Management
What is KM?
Using technology and process to…
Capture and accumulate knowledge of people in an organizationDisseminate knowledge where and when it’s neededEnable people to re-use the knowledge work of othersProvide 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…
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:
SCSGroup
Memory
The old wayCC: Everyone!
A better way
Knowledge Repository
KM - The Pro’s & Con’s
Weaknesses: Need to ‘prime the pump’ to get going -
employees will only use KM if they get out more than they put in.
Users don’t always know where to place new knowledge - it tends to congregate in ‘default’ locations.
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 @ WorkRetailer 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 aboutimproving business performance via
knowledge capture, sharing & collaboration.
So how does BI fit in?
BI Simplified
DataIn
InformationOut
Manage Organize Exploit
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 Collaborative Technologies seamlessly unitesunites BI BI (structured information),(structured information), such as reports and analysis, such as reports and analysis,
with with unstructured information,unstructured information, such as email and documents, enabling such as email and documents, enabling business users to consistently business users to consistently
access, share, and re-use knowledge access, share, and re-use knowledge within a web-based within a web-based collaborativecollaborative environment. environment.
Delivering a New Level of Value
Data Information Knowledge
DataDataWarehouseWarehouse
DataDataWarehouseWarehouse
BusinessBusinessIntelligence SystemIntelligence System
BusinessBusinessIntelligence SystemIntelligence System
CollaborativeCollaborativeServerServer
CollaborativeCollaborativeServerServer
“Toy sales aredominated by boys
in urban areas”
“Let’s propose a newad campaign ”
“I’d like to reuse the Toy proposal
for my new project ”V
alue
cha
in
BI - The Pro’s & Con’s
Weaknesses: Analysis tools often require
specific skills to use. BI can identify relationships but
not the meaning of those relationships.
The people who generate reports may not have a close relationship with the people who use them.
Strengths: Can make use of the vast
amounts of data collected, regardless of where & how it is stored.
Analysis of this data can spot hidden trends and relationships.
Decision makers can model “what if” scenarios based on the actual data.
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
Subscribe to:• BI reports• interpretations and analyses • topics of interest
Capture:• business decisions• opportunities• best practices
Collaborate:• find & reuse work• discuss results• integrate info from multiple sources
How the SCS Works
Refine the questions
Deliverdynamicreports
SAS Collaborative
Server
Documents
Web pages
Structured Data
• access• manage
BusinessIntelligence
data warehouse
• analyze• present
SAS Institute’s Business Intelligence
tools manage the Data and transform it
into Knowledge
The reports from the Business Intelligence tools can be stored
into the ‘Group Memory’ server
(SAS Collaborative Server)
Other kinds of documents &
resources can also be added to the Group
Memory and associated with the Business Intelligence
reports
People across the enterprise can then
access this information and collaborate to transform it into
Actionable Knowledge
Or ask more detailed questions - using the Business Intelligence
capability directly from within the stored reports
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
DataIn
InformationOut
Manage Organize Exploit
1000 Collaborative
Users
25 BI Users
Extend Your HR InvestmentUser’s Span of Influence
Collaborative Span of Influence
Extend Your IT Investment
Customer
Relationship
Management
EnterpriseResourcePlanning
SRM
Collaborative Portal
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 BSCSRMDWHR Vision CFO Vision
Collaborative CRM Monitor and collaborate around customer information Communicate and collaborate with customers. 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.
Collaborate about customer marketing campaigns. Reuse previous campaigns.
Campaign Management with Collaboration
Data cleaning
Ensure data quality
Integration
De-duplication
Enhancement
drilldown
Analyze
Web
Visualize
Data Mining
slice& dice
Customer DW
Operational Systems
Data Mining
External Data Responses
Operational Operational Marketing Marketing
DBDB
FulfilmentCampaign
Management
CampaignAnalysis
Collaborative Strategic Vision
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.
Core
Analytic
Strategic
SRM
SupplierRelationships
CRM
CustomerRelationships
BSC
HR Finance
IT
Production
ABC/M
ManagementProcess
Information InfrastructureKnowledge base
Transaction Systems (operational apps)
DWA Collaborative Technologies
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
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)
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?
Adapted from Michael Hammer, 1999
Driving Factors:
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)
Adapted from Michael Hammer, 1999
Keys to the Kingdom:
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.
