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Scott Burger May 7, 2003

The Management of Knowledge in a Corporate Environment: An Examination of the Determinants of Success. Scott Burger May 7, 2003. The Importance of Knowledge.

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Scott Burger May 7, 2003

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  1. The Management of Knowledge in a Corporate Environment:An Examination of the Determinants of Success Scott Burger May 7, 2003

  2. The Importance of Knowledge • “The basic economic resource—‘the means of production,’ to use the economist’s term—is no longer capital, nor natural resources (the economist’s ‘land’), nor ‘labor.’ It is and will be knowledge.”– Peter Drucker,“The Next Society,” The Economist

  3. The Importance of IT • During the years 1995-2000 labor productivity grew at an annual rate of 2.5 percent—nearly twice the 1972-1995 rate of 1.4 percent—while concurrently, expenditures on information technology (IT) doubled - “U.S. Productivity Growth, 1995-2000,” McKinsey Global InstituteReport

  4. The Importance of IT? • Link between greater productivity and IT is entirely attributable to six sectors which account for 30% of GDP: • Retail • Wholesale • Securities • Telecommunications • Semiconductors • Computer Manufacturing

  5. Outline of Presentation • Define Objective of Study • Describe Literature Review • Explain Study Methodology • Explore Results • Draw Conclusions

  6. Objective of Study • To determine whether competitive advantage/higher firm performance (from a knowledge management initiative) is dependent on the successful execution of five moderating factors, not dollars spent on information technology.

  7. Thesis Model Independent Variable Moderating Factors Dependent Variable Information Procurement and Dissemination Absorptive Capacity IT Infrastructure Cross-Functional Communication Competitive Advantage / Better Performance Culture Organization Assessment/IT Strategy Review Process

  8. Literature Review • Relationship between IT and knowledge management (KM) not linear (McKinsey Global Institute Report) • Role of unobservable effects contributing to above-average performance (Mueller; Jacobson; Rumelt; DeTienne, et al; Senge; Grant; Nonaka, et al.) • Intangible moderating factors are important—e.g., culture (Bourgeois, et al; Lei, et al; Dash; Comeau-Kirschner; Pan)

  9. Study Methodology • Two-firm qualitative case study most appropriate because of elusive nature of variables (Itami, et. al; Yin; Jacobson)

  10. Firm Selection • Sun Microsystems • Enterprise Services Operations, Americas • Lockheed Martin • Ground Systems, Aeronautics Division • Computing and Network Services, Enterprise Information Services

  11. Sun Microsystems • Firm Details • Knowledge Management Goals • Extend technical knowledge • Improve process and procedures • Build the collective knowledge of employees

  12. Lockheed Martin • Firm Details • Knowledge Management Goals • Provide efficient access to data • Learn from previous projects

  13. Results • Sun Microsystems • Employee efficiency has risen 50-60% because of: • Information Procurement and Dissemination • Cross-Functional Communication • Culture

  14. Results • Lockheed Martin • Outbidding competitors because produce better, cheaper products as a result of: • Absorptive Capacity • Organization Assessment and Technology Strategy Review Process

  15. Conclusions • Five moderating factors proposed are important

  16. Thesis Model Thesis Model Independent Variable Moderating Factors Dependent Variable Information Procurement and Dissemination Absorptive Capacity IT Infrastructure Cross Functional Communication Competitive Advantage / Better Performance Culture Organization Assessment/IT Strategy Review Process

  17. Conclusions • Five moderating factors are important • Other important considerations: • Fluidity between physical and virtual interactions • Relevance and currency of knowledge • Information overload

  18. A Special Thanks To… • Mark Smith • Larry Stimpert • Venture Grant • Hilliard Fund

  19. Questions? • I know it was a great presentation, but someone has to have a question…

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