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KNOWLEDGE MANAGEMENT

KNOWLEDGE MANAGEMENT. IS6800 GROUP PROJECT BY: Kevin Lin Rajesh Rajasekaran Gautam Kondru Andrew Orr. You Should Know This Guy. Kai-Fu Lee ( 李開復 ) – A Speech Recognition Expert 1983 , BA , Columbia Univ. 1988 , Ph.D. , Carnegie Mellon Univ.

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KNOWLEDGE MANAGEMENT

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  1. KNOWLEDGE MANAGEMENT IS6800 GROUP PROJECT BY: Kevin Lin Rajesh Rajasekaran Gautam Kondru Andrew Orr

  2. You Should Know This Guy • Kai-Fu Lee (李開復) – A Speech Recognition Expert • 1983, BA, Columbia Univ. • 1988, Ph.D., Carnegie Mellon Univ. • 1988~?, Assistant professor at Carnegie Mellon Univ. (“Most Important Scientific Innovation” – Business Week) • 1990~95, Apple Computer (Mgr. of Speech & Language Technologies Group, V.P. of Interactive Media Group) • 1996~97, SGI (V.P. and G.M. of Web Products Div.), & Cosmo Software (President) Microsoft, http://www.microsoft.com/presspass/exec/kaifu/default.mspx Visual Communications and Image Processing 2000, http://www.spie.org/web/meetings/programs/vc00/specevents.html

  3. You Should Know This Guy(Cont.) • Kai-Fu Lee (Former) Corporate Vice President, Natural Interactive Services Division (NISD) • 1998, Founder, Microsoft Research Asia, China • Feb., 2003, V.P. of NISD at Microsoft Corp • NISD’s products or services includes • speech, • natural language, • advanced search and help, and • authoring and learning technologies. • July 2005, Kai-Fu Lee left Microsoft. Mircosoft, http://www.microsoft.com/presspass/exec/kaifu/default.mspx

  4. You Should Know This Guy(Cont.) • Google to Open Research and Development Center in China • MOUNTAIN VIEW, Calif. – July 19, 2005 – Google Inc. (NASDAQ: GOOG), developer of the award-winning search engine, today announced that it will open a product research and development center in China, and has hired respected computer scientist and industry pioneer, Dr. Kai-Fu Lee, to lead the operation and serve as President of the company's growing Chinese operations. Google Press Center, http://www.google.com/press/pressrel/rd_china.html

  5. You Should Know This Guy(Cont.) • Kai-Fu Lee Begins Work In Google's China Operations • TechWeb News – September 22, 2005 – Kai-Fu Lee, the center of an ongoing legal battle between Google Inc. and Microsoft Corp., has taken up his post as head of Google's China operations, about two weeks after a judge ruled that the former Microsoft vice president could work for the search engine, China's state news agency reported Thursday. Tech Web News, http://www.techweb.com/wire/ebiz/171100255

  6. You Should Know This Guy(Cont.) • Google’s Kai Fu Lee Out of Work Until January • Oct 28, 2005 – A federal judge issued a “final” order preventing Google from moving the Kai Fu Lee case to California. The order puts the case on ice until at least January, when it will be resumed in Washington state. Lee has been prevented from taking the reins of his new job overseeing Google in China since his controversial hiring from Microsoft in July. Meanwhile, Google hired Johnny Choua former executive in China of UTStarcom, to get working on China. The Unofficial Google Weblog, http://google.weblogsinc.com/entry/1234000587065544/

  7. Turnover => Game over ? • Voluntary employee turnover rate in IT industry in 2004: 14.90% ( >1/7 )* • “There is no acceptable level of turnover if you're losing your best people,” says Diane Morello, an analyst at Gartner Inc.** • Sharing & retaining knowledge is important *Nobscot Corporation, http://www.nobscot.com/survey/us_voluntary_turnover_0804.cfm **A.S. Horowitz, You Can’t always guess what they want, Computerworld, (2005) http://www.computerworld.com/careertopics/careers/story/0,10801,104497,00.html

  8. Knowledge • What is knowledge? • “Familiarity, awareness, or understanding gained through experience or study” • “The psychological result of perception and learning and reasoning” Dictionary.com, http://dictionary.reference.com/search?q=knowledge

  9. Knowledge(Cont.) • Two forms of knowledge • Explicit • Represented by some artifact • Created with the goal of communicating with another person • ex. Documents, Videos • Tacit • What knower knows • Derived from experience • Embodies beliefs and values • ex. Work experience • Both forms of knowledge are essential for organizational effectiveness. A.D. Marwick, Knowledge Management Technology, IBM Systems Journal, Vol.40, No.4, 814-830 (2001)

  10. Knowledge(Cont.) • Knowledge is transferable • Organizational learning takes place as individuals participate in the conversion of knowledge between tacit and explicit forms. • Knowledge Transformation processes • Socialization (T to T – Tacit knowledge formation and communication ) • Externalization (T to E – Formation of explicit knowledge from tacit knowledge) • Internalization (E to T – Formation of new tacit knowledge from explicit knowledge) • Combination (E to E – Use of explicit knowledge) A.D. Marwick, Knowledge Management Technology, IBM Systems Journal, Vol.40, No.4, 814-830 (2001)

  11. Knowledge(Cont.) • Sample technologies that can support or enhance the knowledge conversion processes A.D. Marwick, Knowledge Management Technology, IBM Systems Journal, Vol.40, No.4, 814-830 (2001)

  12. Knowledge Management • Definition of knowledge management (KM) • A.D. Marwick* • KM is the name given to the set of systematic and disciplined actions that an organization can take to obtain the greatest value form the knowledge available to it. • Malhotra** • “Essentially, it (KM) embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies, and the creative and innovative capacity of human beings.” *A.D. Marwick, Knowledge Management Technology, IBM Systems Journal, Vol.40, No.4, 814-830 (2001) **Y. Malhotra, Tooks@work: Deciphering the knowledge management hype, The Journal for Quality and Participation, Vol.21, No.4, 58-60 (1998)

  13. Knowledge Management(Cont.) • KM-focused activities • Generating new knowledge • Accessing valuable knowledge from outside sources • Using accessible knowledge in decision making • Embedding knowledge in processes, products, and/or services • Representing knowledge in documents, databases, and software • Facilitating knowledge growth through culture and incentives • Transferring existing knowledge into other parts of the organization • Measuring the value of knowledge assets and/or impact of knowledge management C. Marshal, L. Prusak and D. Shpilberg, Financial risk and the need for superior knowledge management, California Management Review; Vol.38, No.3, 77-101, (1996) R. Ruggles, The state of the Notion: Knowledge Management in Practice, California Management Review, Vol.40, No.3, 80-89 (1998)

  14. KM Tools • Collaborative tools • Groupware (Lotus notes, IntraNet, ExtraNet) • Meeting support systems • Corporate yellow pages (Knowledge directories) • Content Management • Internet / WWW ( Information provider) • Document Management systems (e-filing) • Digital image processing systems • Electronic Publishing systems • Business Intelligence • Data Warehousing • E-Commerce • Helpdesk systems S. Moffett, R. McAdam, and S. Parkinson, Technological Utilization for Knowledge Management, Knowledge and Process Management, Vol.11, No.3, 175-184 (2004)

  15. KM:Global Statistics • International Data Center (IDC) predicts 41% increase in global spending per year on knowledge services. • Global spending on KM services projected to reach $13 billion in 2005. • Global KM software market was worth $5.4 billion in 2004. • “Knowledge Drain” & “Knowledge Deficit” cost Fortune 500 companies billions. Sandhya, S. M., KM Market: Eyeing Exponential Growth, http://www.ciol.comnfolder/102071101.asp

  16. Drivers of KM D. Mason and D.J. Pauleen, Perceptions of Knowledge Management: a Qualitative Analysis, Journal of Knowledge Management, Vol.7, No.4, 38-48 (2003)

  17. Barriers to KM D. Mason and D.J. Pauleen, Perceptions of Knowledge Management: a Qualitative Analysis, Journal of Knowledge Management, Vol.7, No.4, 38-48 (2003)

  18. KM Implementation • Technology-Push Model Journal of Knowledge Management VOL.9 NO 1 2005, pp.7-28

  19. KM – Technology push model • CISCO SYSTEMS • Legendary faith in technologies for predictive modeling and decision making • Misplaced faith on their Forecasting systems • Ended up writing off $2.2 billion in inventories and Sacking 8,500 employees A key lesson of KM ignored by CISCO: PAST MAY NOT BE AN ACCURATE PREDICTOR OF THE FUTURE Journal of Knowledge Management VOL.9 NO 1 2005, pp.7-28

  20. KM Implementation(cont.) • Strategy-Pull Model Journal of Knowledge Management VOL.9 NO 1 2005, pp.7-28

  21. KM – Strategy pull model PARTNERS HEALTH CARE, BOSTON • KM was implemented to the order-entry system because it’s central to their physicians delivering good medical care. • Serious medical errors were reduced by 55% after KM was incorporated into their Order-entry system. • PARTNERS found a new drug was beneficial for heart problems, orders for that drug increased from 12 to 81 percent. Knowledge Management Review; Mar/Apr 2005;8;1; ABI/INFORM Global, Journal of Knowledge Management VOL.9 NO 1 2005, pp.7-28

  22. FOREST LABORATORIES, INC. - CASE STUDY http://www.frx.com

  23. COMPANY PROFILE • Founded in 1954. • Publicly traded on the NYSE, under the ticker symbol FRX. • FOREST, based in NY, has operations on Long Island in New Jersey, Missouri, Ohio, Ireland and United Kingdom. • Identifies, develops and delivers pharmaceutical products that make a difference in people’s lives. • Total of 5000 employees of which close to 2800 employees are in the sales force. • $3 billion revenue for the FY 2005. http://www.frx.com/about/index.aspx

  24. FOREST ACCOLADES • Ranked among Fortune’s Fastest Growing Companies, five years (2000 – 2004). • Ranked as one of The Best companies to sell for by selling power for four consecutive years (2001-2004). • Ranked #32 on the Pharm exec 50 listing of the top 50 pharmaceutical companies by sales. • Ranked #5 among the Best Performers of the S&P 500 in 2004. • Ranked #1 on the Wall Street Journal Honor Roll for 2003. http://www.frx.com/about/accolades.aspx

  25. FOREST - PRODUCTS Established Therapeutic Areas Central Nervous system - LEXAPRO, CELEXA, NAMENDA, CAMPRAL Cardiovascular - BENICAR, TIAZAC Respiratory - AEROBID Relatively New Therapeutic Areas Endocrinology Ob/Gyn – Pediatrics Pain Management http://www.frx.com/products/index.aspx

  26. Quote from our CEO • “Pharmaceutical companies do more to benefit human health, reduce pain, prolong life, and ultimately create more longer lasting and intrinsic human happiness than any other business.” - HOWARD SOLOMON CHAIRMAN & CEO of FOREST http://media.corporate-ir.net/media_files/irol/83/83198/reports/2005/FinancialHighlights.pdf

  27. FOREST–INCOME Statement summary [recent 5 yrs] http://media.corporate-ir.net/media_files/irol/83/83198/reports/2005/FinancialData.pdf

  28. BUSINESS CHALLENGES AT FOREST Business process improvements at Forest Research Institute (FRI) • Advanced methods needed to handle R & D process associated with required regulatory submissions • Need to convert mountains of clinical data into meaningful information • Need to implement collaborative work practices for better business prospects • Increased needs to Digitize, Manage, Secure, Share, Utilize and Publish intellectual assets effectively for business growth • Streamline the often time-consuming internal audit process. • Need to effectively handle huge amount of documents especially R&D related contents. Mr. Perry Venugopal, Assistant Director, INFORMATICS - FRI

  29. CEO QUOTE • Quotes from a CEO of a major pharmaceutical company: “In this industry, we make 2 products – Drugs and Documents. Unfortunately, the authorities are only interested in the documents.” http://www.documentum.com/products/collateral/industry/EPCAutumun_2002_Documentum.pdf

  30. DOCUMENT MANAGEMENT SYSTEMS • What is DOCUMENTUM? • DOCUMENTUM is the life sciences industry standard enterprise content management (ECM) platform for creating, capturing, managing, delivering, and publishing large volumes of content within and beyond the enterprise. • De-facto standard for maintaining documents, audit trails and optimize R&D operations in the Pharmaceutical, life-sciences industry. http://www.documentum.com

  31. FRI DOCUMENT MANAGEMENT SOLUTION • The PR&D group • As a tool to edit, manage, review and approve all CONTROLLED documents • The Regulatory Affairs group • As a tool to collate, manage, review and approve all the documents related to an FDA submission Mr. Perry Venugopal, Assistant Director, INFORMATICS - FRI

  32. FRI DOCUMENT MANAGEMENT SOLUTION Mr. Perry Venugopal, Assistant Director, INFORMATICS - FRI

  33. EMERGING CHALLENGES AT FOREST FOREST spends approx. $25 million dollars this year to extend the business functionality of the existing SAP-ERP solutions in order to effectively manage the information flowing across the enterprise. Mr. Brian Bilyeu, Senior Manager, SAP- Business operations, Mr. Lawrence Bua, Senior Manager, IT - Operations

  34. SAP KM AT FOREST - TO ACCESS SAP BEST PRACTICES RESOURCES Mr. Brian Bilyeu, Senior Manager, SAP- Business operations, Mr. Lawrence Bua, Senior Manager, IT - Operations

  35. FOREST-SAP ENTERPRISE PORTAL Mr. Brian Bilyeu, Senior Manager, SAP- Business operations, Mr. Lawrence Bua, Senior Manager, IT - Operations

  36. FRI R&D Process Improvements after the DOCUMENTUM implementation • Better version control management of Forest’s intellectual assets • Introduced collaboration work practices both internally and externally with its research partners and co-marketers. • Eliminated the internal research audits required for demonstrating compliance with FDA regulations. • Re-use the same content wherever appropriate (ie: NDA (US) vs. CTD (Europe/Japan) – same content- different presentation • Rapid seamless access to the information enables FOREST to make GO/NO-GO decisions at the early stage of the product life-cycle Mr. Perry Venugopal, Assistant Director, INFORMATICS – FRI, http://www.documentum.com/industry/life_sciences/research/index.htm

  37. Potential Business problems that can be avoided • 50% of R & D expenses are during the clinical development phase. • 7 million pages per year of clinical studies content to be managed. • Each day late for the drug arrival to the market equals $1 million dollar in lost revenue. • A missed paper-work with FDA or an outdated information to FDA during the New drug submission process can potentially delay the FDA approval process by SIX MONTHS. http://www.documentum.com/industry/life_sciences/research/index.htm

  38. Case Study Siemens AG

  39. Company Overview • Siemens: • Founded more than 155 years ago in Berlin, it is one of the world’s largest private organizations • Employs 440,000 people in 190 countries. • World leader in Information and Communications, Automation and Control, Lighting, Medical, Power and Transportation. http://www.usa.siemens.com/index.jsp?sdc_p=ft4mls6uo1067030n1067030i1002155pc194z2&sdc_sid=29513262089& viewed 11/08/05

  40. Company Overview • Fortune Global 500 ranked Siemens AG, number one in the world's electronic industry in the year 2004 • Reported global sales of $91.3 billion in fiscal 2004 (10/1/03 - 9/30/04). • Siemens has a decentralized corporate structure • Every unit has its own executive management, supervisory groups and regional units. • Information and Communication Networks (ICN) • Major division within Siemens • Employs approx. 33,000 people • Generates revenues of €7,122 billion (roughly $8 billion) in sales. http://www.usa.siemens.com/index.jsp?sdc_p=ft4mls6uo1067030n1067030i1002155pc194z2&sdc_sid=29513262089& viewed 11/08/05

  41. US Operations • US Corporate headquarters in New York City • Employs approximately 70,000 people in all 50 states and Puerto Rico. • $16.6 billion in U.S. sales • Trades on NYSE (SI) http://www.usa.siemens.com/index.jsp?sdc_p=ft4mls6uo1067030n1067030i1002155pc194z2&sdc_sid=29513262089& viewed 11/08/05

  42. Business Areas in US • Information and Communications • Siemens provides systems, services and solutions to 70 percent of the Fortune 500. • Automation and Control • Siemens' postal automation systems process more than 90 percent of the mail for the United States Postal Service (USPS) • Power • Power generation systems produce more than 1/3 of the electricity in the U.S. • Medical • Processes some 157 million healthcare information transactions every business day. • Research and Development • Dedicates $4 million and 5,700 employees to R & D • Generates more than 32 inventions every business day • In 2004, it invested approximately $6.2 billion in research and development. http://www.usa.siemens.com/index.jsp?sdc_p=ft4mls6uo1070267n1070267i1067030pc194z2&sdc_sid=29513262089& viewed 11/08/05

  43. John DeereSAP R/3 Rollout in Europe Lufthansa Baggage Management System National Employment Agency, RomaniaIT Infrastructure Services Siemens Medical SolutionsGlobal Remote Service for medical system UK Passport Service (UKPS)Efficient document processing VolkswagenInternet presentation Touran AudiIT Client Services BBCOutsourcing DaimlerChryslerService Process Management Department of Labor, South AfricaIT Outsourcing Fujitsu Siemens ComputersApplication Management for SAP solutions HSBCCall Center Global Clients http://www.siemens.com

  44. Knowledge Management at Siemens Driver for KM initiatives: • Growing competition • Deregulation in the core market in Germany • Demand for Siemens to provide complex total solutions • Transform company into a customer-oriented organization that provided customized solutions and services globally Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2

  45. Siemens KM Initiative Concept: • Information and Communication Networks group had to tap the comprehensive expertise and rich experience of its employees. • A Knowledge Management System had to network the 17,000 sales and marketing employees across the globe. Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2

  46. Knowledge Management System • Knowledge Library: A central component that would • Consist of thousands of knowledge bids • Have a web based entry form for users to input bids • Urgent Request Forum: A place where any user can post a question and request immediate response. • Rich Transmission Channels: • Community news bulletin boards • Discussion groups for certain topics • Live chat rooms • Knowledge Library + Urgent Request Forum + Transmission Channels = Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2 http://www.europe.redhat.com/software/ccm/customers/siemens.gif

  47. ICN ShareNet • The first ShareNet version was developed with the help of an external web-development company. Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2 http://www.swiss.ai.mit.edu/~rfrankel/community/exsharedir.gif

  48. ShareNet http://ccm.redhat.com/doc/core-platform/5.0/acs-core/doc/images/found-item.gif

  49. ShareNet Organization Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2

  50. Language Barriers • Initial response to English-only ShareNet not very positive: • Some employees did not dare to post a question in a forum where several thousand people could see their grammar or spelling mistakes • Few others were of the opinion that in a German-based company the first language should still be German. • Language problems were mitigated over time: • Users saw the personal benefit of sharing and receiving knowledge. Sven C. Voelpel, Malte Dous, and Thomas H. Davenport, Academy of Management Executive, 2005, Vol. 19, No. 2 http://www.wmich.edu/ois/sap/programs/images/germany.map.jpg

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