This dissertation has been submitted by a student. This is not an example of the work written by our professional dissertation writers.
Today Information Technology is gaining new heights with greater leaps. This enables new age managers to develop newer tools to manage business better. IT has not only expedited the intra and inter organizational communication but also enabled us to manage a lot of data effectively.
Knowledge management is emerging as a key management tool for the new century. Although it can be defined in a variety of ways, the process of organizing knowledge in order to get a sustainable development can be termed as Knowledge management. It consists of identification, representation, distribution, application and utilization of available knowledge to get improved performance. Knowledge Management in a company is carried out by systematically organizing the intellectual capital to achieve its business goals. The intellectual capital means the company's intangible assets which increase its valuation. The Core competencies of a company go together with the sustainable competitive advantage.
This report explains the process of Knowledge Management to bring in Competitive advantage in the Indian IT industry. It also elaborates on the methods on how innovation can be encouraged in the company. Further, the challenges for KM like resistance to culture change and tacit knowledge sharing are discussed. In India companies have started taking knowledge management as an important aspect as it not only gives a good working culture but also improves the return on investments eventually. However, there is still a good scope of improvement in the field of Knowledge management for the Indian IT industry.
The research uses questionnaires and interpretations from interviews to collect primary data .Though it gives a comprehensive analysis, it leaves a further scope for research in the field.
Knowledge Management is relatively new buzz in the corporate world. It is a tool developed to safeguard the organization from competition in future. Apparently, the physical assets and tangible capacities are not sufficient to sustain a competitive advantage in today's market place. What make difference in the long run are the intangible assets, such as Brands, Intellectual property, knowledge etc. These assets can not be bought but have to be created within organization, by the members of organization over a period of time.
The aim of this report is to identify and analyse the concepts and current practices of Knowledge management in order to recommend ways of propelling innovation and competitive advantage within the companies.
The Research Objective is to
- Get a comprehensive idea of the current Knowledge Management practises.
- Identify and analyse the challenges faced by the organizations in implementing Knowledge Management
- Know the ways of how companies can propel innovation and competitive advantage.
- Recommendations in order to improve the company culture.
- Suggest the methods to attain sustainable competitive advantage handling the challenges faced.
The guiding principal of my research is as follows
- How do companies integrate KM with their company policies?
- How change should be initiated?
- What are the levels of hierarchy?
- When the change does actually happen?
- Is KM just for innovation, competitive advantage or more?
- Are rewards and recognition the way to drive KM?
- What are the basic challenges for KM?
The research philosophy is Positivism -- Philosophy that involves working with an observable social reality. The emphasis is on highly structured methodology to facilitate replication, and the end product can be law-like generalisations similar to those produced by the physical and natural scientists. (Saunders, 2000) This research contains mainly qualitative data collection methods for both primary and secondary data. Primary data was obtained by interviewing the key people of some of the IT companies in India. Questionnaire was designed to get the views of the employees working in the IT industry.
Questionnaires were also designed and used to obtain primary data. The response of these questionnaires is being used in order to obtain a particular result in the form of percentage. The secondary data has been collected through books, journals, websites, etc. All of the research methods will be discussed in further detail in the relevant chapter.
The key outcome of this research would be a perfect understanding of the knowledge management practises and to know how companies use it in India for competitive advantage and innovation. Thus using this knowledge the researcher expects to identify main problems in the current trends and evaluate solutions for them. Finally, it also determines the difference between being a multinational corporation (MNC) and small to medium enterprise (SME) with respect to knowledge management.
This chapter describes the research methodology adopted for the report. To start with, this report elaborates on the research philosophy - Positivism, moving on towards the various stages of research like primary and secondary data collection methods. The reasons behind selecting the particular method are also explained in the report.
This report includes both primary and secondary data collected from various sources. Secondary data refers to data already collected by someone else and primary data is collected for a specific purpose by the researcher (Saunders, 2000).The research philosophy is Positivism -- Philosophy that involves working with an observable social reality. The emphasis is on highly structured methodology to facilitate replication, and the end product can be law-like generalisations similar to those produced by the physical and natural scientists. (Saunders, 2000)
2.1.1 Research Strategy:
This research is based on the quantitative research strategy which involves collection of data from various sources. It also proposes to collect some primary data through interviews and questionnaires from people from the IT industry in India.
A survey is a method whereby a sample of subjects is drawn from a population and studied to make analysis about the population. The survey strategy enables the researcher to collect a large amount of data in a highly efficient way.
2.1.2 Sample Size:
For the interviews there was no such constraint of number of questions. The interviewees were asked questions in order to know the KM practices in their organization. In case of the questionnaires due to restrictions of time and access, only 500 questionnaires were distributed to various IT company employees. The reason for distributing the questionnaires to the employees from all the levels and department was to get a clear idea of how employees take the concept of Knowledge management at their workplace.
2.2 Research Stages
2.2.1 Secondary Data Collection: The first stage of the research was a critical literature review to obtain the secondary data. Secondary data collected includes the information and concepts from books, journals and websites based on Knowledge management, Organisational behaviour, Knowledge Integration etc. The list of various sources referred can be viewed from the relevant chapter of the report. Access to the books and journals was through Coventry University Library and electronic library databases like FAME, Engineering Village2 etc. Case studies of various companies as mentioned in the appendices were analysed by the researcher in order to get the relevant information and to decide on certain concepts considering them as the evidences.
2.2.2 Interviews: The second stage of the research was to interview some key people of various IT companies in India. Selection of these companies for the interview was done on the basis of how KM practices are being carried out there. These vary from the Market leaders to the new entrants in the IT industry. Many companies are such that they have been practising good KM processes since a long time, but a few have just started to get into it. This was done so because it gave researcher a clear idea of the current scenario in the Indian IT industry. Selecting the best companies alone would not have helped in introducing the scope of improvement for the research. The interviews were face to face interviews and the researcher has written down the important points from the session. The people who have been interviewed were mainly the Knowledge Management Executives in the companies. These were the people who knew exactly what processes are being practised in the company, so interviewing them was the best way to get the details about the KM practices in the companies. Their designations were like senior knowledge officers, Chief knowledge officers etc. Confidentiality was requested by the interviewees so company names are not mentioned anywhere.
The final stage for primary data collection was through questionnaires. The questionnaires designed were distributed to the employees of junior level in the IT companies. It had just 10 questions but they were selected in such a way that the they would serve the main purpose of the survey - to understand the current scenario in Indian IT industry among that class of employee by whom the KM practices are expected to follow. Questions selected were simple to answer so that the respondents are interested in answering till the end of the questionnaire. This also makes it possible to collect maximum responses. These questionnaires were not passed on to the management level or the KM people as the interviews were carried out with them. The researcher wanted to extract information from the employees in the Indian IT companies regarding their views about the Knowledge Management processes in their companies. This was also helpful in getting an overview of the facts about the how aware the Indian corporate world is in regards with knowledge management.
CRITICAL LITRATURE REVIEW
3.1.1. What is knowledge?
Definition of knowledge provided by Schulz (2001) beginning with the 1992 American Heritage Dictionary: ‘knowledge is what has been learned from experience or study. Knowledge is a broad concept that usually includes insights, interpretations, and information. Organizational knowledge refers to knowledge and information that all, part, or parts of the organization share, and that is frequently stored in standard operating procedures, routines, or rules'.
Today, knowledge has emerged and is accepted as the most critical resource available to an organization (Bartlett and Ghosal 1993, Davenport and Prusak 1995, Drucker 1993, Leonard-Barton 1992, Nonaka 1991, Nonaka and Takeuchi 1995, Nonaka et al. 2001, Stewart 1997 and 2001, Toffler 1990 and World Bank 1998).
Knowledge can be defined as the understanding of a concept gained by education, experience or even by mere observation. To acquire knowledge means processing of information with the help of learning, communication, perception, reasoning and linking. It is the theoretical or practical understanding of information and facts which is obtained by correctly processing the raw data.
Here arises the need to understand the difference between data, information and knowledge. Data is the collection of certain facts or values about a particular concept. Information is the processing done on data using relevant theory. The organization of data is nothing but information. The extraction of information on the basis of proper understanding is Knowledge. This can be further explained by considering an example of solving a quadratic equation. The variables are in the form of information, a value of the variable is data and the operation we carry out with them for calculating the answer is our knowledge.
The following figure shows the DIKW (Data Information Knowledge Wisdom) hierarchy as stated by Clark, 2004.
Figure 1: The DIKW hierarchy (Clark, 2004)
Knowledge is generally personal, subjective and inherently local - it is found “within the heads of employees” (www.ichnet.org/glossary.htm 2004)
3.1.2 Classification of Knowledge:
Knowledge can be classified as:
1. Tacit Knowledge - This type of knowledge is hard to formulate and communicate because it is gained by experience. Tacit knowledge is personnel and context specific. People carry tacit knowledge in their brain, thus it is not easy to share it. There is no systematic approach to store tacit knowledge as people are many times unaware of their tacit knowledge. However it is the most valuable form of knowledge as it is can be acquired only by experience and is not easily found written anywhere.
2. Explicit Knowledge - Explicit knowledge is transmittable into a formal systematic language with the help of tacit knowledge. Thus, the codification of ones tacit knowledge results into explicit knowledge. Explicit knowledge can be in the form of books, manuals, notes, documents etc. The definition of some phenomenon is the explicit part whereas the practical understanding behind the phenomenon is tacit.
3. Embedded Knowledge - The knowledge contained in some kind of physical form is known as embedded knowledge. For example the design of an artefact gives us the basic idea of where it can be used.
3.1.3 Knowledge Management.
Knowledge management is defined as the process of getting the right information to the right people at the right time, and helping people create knowledge and share and act upon information in ways that will measurably improve the performance of organization and its partners. This means providing access to information at the time people need it to make the best decisions possible for mission safety and success.
According to Wally Block of The Intranet Journal, the following points make up the generalized term: Knowledge Management.
- Knowledge management is the way that organizations create, capture and reuse knowledge to achieve organizational objectives.
- Knowledge management can also be defined as a process with four parts that comprise a loop.
- Knowledge is created. This happens in the heads of people.
- Knowledge is captured. It is put on paper in a report, entered into a computer system of some kind or simply remembered.
- Knowledge is classified and modified. The classification can be the addition of keywords; it may be indexing. Modification can add context, background or other things that make it easier to reuse later. The test of this step's success is to determine how easily people in the organization will be able to find and use the knowledge when they need it.
- Knowledge is shared. When knowledge is shared and used, it's modified by the folks who use it. This takes us back to knowledge creation.
The process of organizing knowledge in order to get a sustainable development can be termed as Knowledge management. It consists of identification, representation, distribution, application and utilization of available knowledge to get improved performance.
Knowledge Management in a company is carried out by systematically organizing the intellectual capital to achieve its business goals. The intellectual capital means the company's intangible assets which increase its valuation.
3.2. Knowledge Creation:
According to Nonaka “the key to knowledge creation lies in the mobilization and conversion of tacit knowledge”. The process of Knowledge creation is done my transformation of tacit and explicit forms thus giving rise to four forms of transformations. This can be further explained with the help of the following diagram:
Fig: Nonaka's Spiral model.
Source: Nonaka, I. (1991) "The knowledge creating company." Harvard Business Review, 69, (Nov-Dec)
- Tacit to Tacit: Socialization
Team meetings are held to share the experiences of the team members. This provides everyone to share their ideas and also solution of similar problem in the past can be used.
- Tacit to Explicit: Externalization
This can be done by having question answer sessions. Here the senior employees are capable of solving the queries of their juniors.
- Explicit to Explicit: Combination
Sharing of documents is the best example of this type of transformation. The case studies, notes etc can be exchanged in order to have a faster creation of knowledge.
- Explicit to Tacit: Internalization
Internalization can be done by reading and understanding documents prepared by others. Extracting knowledge from an e-mail received from a colleague is the best example of this.
3.3 Knowledge Capture
3.4 Knowledge Sharing
The World Bark (1998) identifies and discusses the most important decisions that an organization must make in establishing its knowledge management program. These are:
Deciding with whom to share; deciding what to share; deciding how to share; and deciding to share.
3.5 Learning Organization:
A "Learning Organization" is one in which people at all levels, individually and collectively, are continually increasing their capacity to produce results they really care about. The learning organization focuses on enhancing its systems (including people) to continually increase the organization's capacity for performance.
The concept of learning organization can be better understood by considering the following points:
An organization learns many important aspects of business, skills and technology during the process of learning. For an organization to grow in a competitive world, it is very important to never let the learning process end.
3.5.2 Levels of learning:
- Aligning learning with corporate priorities
- Designing learning for maximum impact
- Using e-business technologies to enable formal and informal interactions
- Obtaining recognition by the entire organization that learning is a critical enabler to success
- Community of Practice
Ardichvili, Page and Wentling (2003) study community of practice at Caterpillar Inc and find that when employees view knowledge as a public good belonging to the whole organization, it flows easily. However, even when individuals give the highest priority to the interest of the organization and of their community, they tend to shy away from contributing knowledge out of fear of criticism or misleading the community members. Trust increases knowledge sharing.
Essex (2000) discusses a study titled .Beyond knowledge Management: New ways to Work and Learn undertaken by the Conference Board in New York in early 2000. It says that management support and corporate culture, not technology, drive successful KM projects.
CHANGE -- what draws people to share varies from organization to organization and matches the core values and other processes. Alignment with the current culture and a practical purpose to share is, specifically, what draws people most strongly to share knowledge.
(Blue -- http://gbr.sagepub.com/cgi/reprint/7/1/119)
The concept of a community of practice (often abbreviated as CoP) refers to the process of social learning that occurs when people who have a common interest in some subject or problem collaborate over an extended period to share ideas, find solutions, and build innovations
- Communities of Action
- Communities of Circumstance
- Communities of Interest
- Communities of Position
- Communities of Purpose
(Source: Shin and Bickel (2008) - in Chris Kimble and Paul Hildreth (2008). Communities of Practice: Creating Learning Environments for Educators. Information Age Publishing)
- Performance Management
NECESSITY OF KNOWLEDGE MANAGEMENT
A systematic capture, transfer, and use of internal and external know-how are a vital part of any business strategy.
- With no common processes for sharing information among employees, partners, and customers, limited information exchange will occur among suppliers and the engineering, manufacturing, and service functions. Consequently, the organization will experience ineffective design reuse, and product launch mistakes will be repeated.
- If there is no company standard expertise locator or people finder, then the inability to locate subject matter experts will result in lost opportunities, lost time, and being incapable of applying the right resources to significant problems. And with too many different systems, proposals, and pricing sheets, sales representatives cannot have access to information they need when they need it. This can prolong the sales cycle and lead to less-than-best sales solutions offered to the client
- With retirement and turnover, knowledge is walking out the door everyday. New hires do not have the benefit of past experiences and lessons learned, yet their time-to-competence needs to be compressed.
- Mergers and acquisitions result in two bodies of knowledge and expertise and two cultures that must assimilate quickly.
- Portals and e-business are drivers of knowledge management. People want information they can use and trust from a single point of access. Also, an often neglected point is that customers want access to your knowledge and to their business transactions with you.
- Another driving factor is e-learning. Firms now must know where and how knowledge is really being created and acquired. Knowledge management can set the framework for how learning fits into the overall picture of developing employees and making them productive.
The key component of a good knowledge management system is the content itself. If the knowledge management system does not provide users with timely, accurate information, inform them of best practices, and link them to expertise, organizations will not realize the full value of their investment in the system. One of the key steps in the strategic design of knowledge management systems is identifying the information already in use within an organization. Although, in theory, an effective knowledge management system is a central database of data, information, and knowledge contained within the organization, the act of actually creating, maintaining, and using such a central repository is a challenge in practical terms.
One of the many benefits of knowledge management is the learning that occurs when a user takes a piece of information from one place, personally transforms it, and creates something new. Although the designers and developers of the knowledge management system can facilitate this type of learning by encouraging those who have the knowledge to capture it, and by designing a system that links end users to information that they might find helpful, neither the designers nor the developers could have planned or predicted such this particular act of learning. It happened informally, without the guidance of an instructor and without the suggestion of a designer.” (Carliner, section 1)
Knowledge Management takes advantage of a company's information experience and expertise to serve customers better and respond quickly to changing marketing conditions.
Successful companies build a corporate environment that fosters a desire for knowledge among their employees and that ensures its continual application, distribution and creation. Less successful companies tend to take a top down approach: pushing knowledge to where it is needed. Besides creating an environment that encourages knowledge pull, successful companies excel in applying, distributing, and creating knowledge. (Hauschild, 2001)
Companies link all their information together and build models that improve processes, product and customer relations. Such companies understand that true knowledge management requires them to develop ways of making workers aware of those links and goes beyond infrastructure to touch almost every aspect of business.
COMPONENTS OF KNOWLEDGE MANAGEMENT SYSTEM
“The key component of a good knowledge management system is the content itself. If the knowledge management system does not provide users with timely, accurate information, inform them of best practices, and link them to expertise, organizations will not realize the full value of their investment in the system. One of the key steps in the strategic design of knowledge management systems is identifying the information already in use within an organization. Although, in theory, an effective knowledge management system is a central database of data, information, and knowledge contained within the organization, the act of actually creating, maintaining, and using such a central repository is a challenge in practical terms.
One of the many benefits of knowledge management is the learning that occurs when a user takes a piece of information from one place, personally transforms it, and creates something new. Although the designers and developers of the knowledge management system can facilitate this type of learning by encouraging those who have the knowledge to capture it, and by designing a system that links end users to information that they might find helpful, neither the designers nor the developers could have planned or predicted such this particular act of learning. It happened informally, without the guidance of an instructor and without the suggestion of a designer.”
Knowledge Management takes advantage of a company's information experience and expertise to serve customers better and respond quickly to changing marketing conditions.
Successful companies build a corporate environment that fosters a desire for knowledge among their employees and that ensures its continual application, distribution and creation. Less successful companies tend to take a top down approach: pushing knowledge to where it is needed. Besides creating an environment that encourages knowledge pull, successful companies excel in applying, distributing, and creating knowledge.
Companies link all their information together and build models that improve processes, product and customer relations. Such companies understand that true knowledge management requires them to develop ways of making workers aware of those links and goes beyond infrastructure to touch almost every aspect of business.
ENTERPRISE KNOWLEDGE MANAGEMENT
Enterprise knowledge management entails formally managing knowledge resources in order to facilitate access and reuse of knowledge, typically by using advanced information technology. KM is formal in that knowledge is classified and categorized according to a prespecified—but evolving—ontology into structured and semi structured data and knowledge bases. The overriding purpose of enterprise KM is to make knowledge accessible and reusable to the enterprise.
Knowledge resources vary for particular industries and applications, but they generally include manuals, letters, summaries of responses to clients, news, customer information, competitor intelligence, and knowledge derived from work processes. A wide range of technologies are being used to implement KM systems: e-mail; databases and data warehouses; group support systems; browsers and search engines; intranets and internets; expert and knowledge-based systems; and intelligent agents. In artificial intelligence, knowledge bases are generated for consumption by so-called expert and knowledge-based systems, where computers use rule inference to answer user questions. Although knowledge acquisition for computer intervening is still important, most recent KM developments make knowledge available for direct human consumption or develop software that processes that knowledge.
Historically, KM has been aimed at a single group—managers—through what has been generally referred to as an executive information system. An EIS contains a portfolio of tools such as drill-down access to databases, news source alerts, and other information— all aimed at supporting managerial decision making. More recently, however, KM systems are increasingly designed for entire organizations. If executives need access to information and knowledge, their employees are also likely to have an interest in and need for that information. In addition, KM technology is ideally suited for non management groups—such as customer support, where customer service requests and their solutions can be codified and entered into a database available to all customer service representatives.
IMPLEMENTING KNOWLEDGE MANAGEMENT
As organizations store an increasing amount of information and knowledge in data and knowledge warehouses and in data and knowledge bases, they are attempting to manage that knowledge in more efficient ways. Historically, organizational knowledge has been stored on paper and in people's minds. Unfortunately, paper has limited accessibility and is difficult to update. And when people leave, they take most of their knowledge with them, so reuse is not always feasible. Thus, firms have moved to data and knowledge warehouses and to data and knowledge bases to improve accessibility, updatability, and achievability of data and knowledge.
In many companies, one of the first KM tools is a data warehouse. A data warehouse acts as a central storage area—a warehouse—for an organization's transaction data. Data warehouses differ from traditional transaction databases in that they are designed to support decision making rather than simply efficiently capturing transaction data. Typically, data warehouses contain multiple years of transaction databases stored in the same database. Data warehouses are not updated on a transaction-by-transaction basis. Instead, the entire database is updated periodically. The size of data warehouses can be substantial. A leading bank in US has a 560-Gbyte data warehouse, for example, and MasterCard On-Line is a 1.2- Tbyte database available to member companies for a fee. With all the data accessible in one place, relationships between data elements can be more effectively explored. Users can browse the data or establish queries, though this type of analysis generally results only in knowledge for particular individuals. An alternative approach is to use a process called knowledge discovery to determine whether there is additional knowledge hidden in the data.
Rather than the kind of quantitative data typical of data warehouses, knowledge warehouses are aimed more at qualitative data. KM systems generate knowledge from a wide range of databases including Lotus Notes databases, data warehouses, work processes, news articles, external databases, Web pages (both internal and external), and people. Thus, knowledge warehouses are likely to be virtual warehouses where the knowledge is dispersed across a number of servers. In some cases, a Web browser can be used as an interface to a relational database. For example, Ford Research and Development uses a browsable Oracle database. The database contains manuals and design rules, specifications, and requirements. Another frequently used corporate application is a human resource knowledge base about employee capabilities and skills. Employee information can include education, specialties, previous experience, and other descriptors.
Historically, Lotus Notes has provided one of the primary tools for storing qualitative and document based information and for facilitating virtual groups. With the recent explosion of the Internet, however low-cost Web-based solutions within intranet environments have become the focus of KM.
Data and knowledge bases
Knowledge can come from top-down activity, work processes, news reports, and a wide range of other sources. Knowledge typically captured to meet top-down requirements includes manuals, directories, and newsletters. Knowledge bases capturing information generated from work processes are likely to include working papers, proposals, and other similar documents.
In addition, knowledge bases can be designed to provide continuity and history in activities like customer support.
“For countries in the vanguard of the world economy, the balance between knowledge and resources has shifted so far towards the former that knowledge has become perhaps the most important factor determining the standard of living - more than land, than tools, than labour.” - World Development Report, 1998
Knowledgeassetsare defined as (Boisot, 1998, p.3}: “stocks of knowledge from which services are expected to flow for a period of time that may be hard to specify in advance.”
Distinction between the three terms - data, information, and knowledge - is relevant for explaining the contrast between physical assets and knowledge assets. Knowledge builds upon information that is extracted from data (Boisot, p. 12). In contrast to data that can be characterized as a property of things, knowledge is a property of agents predisposing them to act in particular circumstances. Information is that subset of the data residing in things that activates an agent through the perceptual or cognitive filters. In contrast to information, knowledge cannot be directly observed. Its existence can only be inferred from actions of agents. Similarly knowledge assets cannot be directly observed in nature - they need to be apprehended indirectly (Boisot, p. 12). Hence, in contrast to the emphasis on tangible input-focused measures of physical assets, knowledge assets require understanding in terms of quality and content of performance outcomes. Boisot (1998) notes that knowledge assets are manifested in terms of technologies, competences and capabilities. Technology is defined a “socio-physical systems configured so as to produce certain specific types of physical effects.” Competence denotes “the organizational and technical skills involved in achieving a certain level of performance in the production of such effects.” Capability is interpreted as “a strategic skill in the application and integration of competences.”
World Bank (2004) emphasizes that the time is opportune for India to make its transition to the knowledge economy. India has ample scope for exploiting the global knowledge revolution and recent advances in technology to boost the productivity of agriculture, industry, and services and to reduce poverty. To get the greatest benefit from this knowledge revolution, India needs to press on with the economic reforms agenda, develop educated skilled workers, create an efficient innovation system and continue to implement the various policy and institutional changes needed to accelerate growth.
Knowledge management lifecycle: (Source - “Knowledge Management” Elias M.Awad and Hassan M. Ghaziri p.24)
- Capturing : - data entry
- voice input
- Organising - cataloguing
- Refining - contextualizing
- Transfer - Flow
*** ROLE OF TRUST IN KM LIFE CYCLE -
Trust means integrity, consistent communication and proven willingness of the organisation to integrate employees into the decision making process (Source - “Knowledge Management” Elias M.Awad and Hassan M. Ghaziri p.24). The culture of the organisation can play a vital role in building up trust in the organisation.
CHANGE -- This literature review brings out five important points:
1. Organizational culture is crucial for successful KM initiatives. Lack of focus on the cultural issues involved has led to the failure of many KM initiatives.
2. Its quite difficult to create the right kind of organizational culture. Successful organizations dont change their culture altogether for KM, instead, they use practical ways to incorporate it.
3. Communities of Practice are very useful in creating a knowledge sharing culture.
4. The organizations core values trust and the vision and commitment of leadership are crucial for creating the right kind of culture.
5. There is a lack of in-depth studies in the Indian context on this aspect of knowledge management. This provides the justification/rationale for undertaking this research work to fill the gap.
The primary data collected from the interviews and questionnaires are discussed in this chapter. Case studies of various companies under consideration are also analysed here as it gives the researcher a better understanding of the current Knowledge Management scenario in India. The past of KM practices in India is also discussed in this chapter to virtually plot the progress line for the knowledge management scenario and to check how far it has reached till now. This study will help to suggest some recommendations to the companies in India. The details about the case studies, questionnaires and interviews are given in the relevant section of the appendices of this report. The comparison of the facts coming across through the data findings can be compared with the concepts cited in the critical literature review to come to a conclusion.
4.1 Case Studies:
Infosys Case study
The first case study considered as a part of research was the case of Infosys Technologies - a global Most Admired Knowledge Enterprise (MAKE). According to the information gained from this case (Refer Appendix A) in 1999, Infosys encountered a problem in their organizational knowledge flows. This was detected while the improvement of their core business processes. The CEO of Infosys was pleased by the success of a 5 year old KM program, but while moving towards the 4th level of KMM (knowledge management maturity) they realised that some strong metrics were missing in order to assess the KM program. He had a lot of pressure from the board of directors asking for the Return on investment reports for KM.
The overview of the history of Infosys can be described as follows. As per the findings from the case, by 2005 Infosys made profits of $688 million and emerged as the 2nd largest firm in India. However when they went to the fortune1000 companies to sell their services, most CIO didn't believe that an Indian company could build IT applications. They didn't take Infosys seriously at the 1st impression. Here was the need of a GDM (global delivery model) in order to achieve the operations like a virtual corporation. (Please refer appendix A for details about GDM). Even though it was quite advantageous but there still a void as regards to knowledge flow as stated by the CEO. There was clear cut knowledge redundancy issues found in the organization. As he proceeded there were cases that knowledge existed somewhere but it was not known where it is.
The scalability strategy would be successful only if knowledge resources were made accessible to every employee. This was stated by the CEO as per the case study. Thus the importance of being a learning organization is explained here.
Need / Necessity of KM:
The CEO believed that scalability demanded efficient capacity utilization. They had to be ready for project opportunities in new functions and technical domains. This gave rise to the initiation of KM program. They formed a steering committee in order to implement KM strategy. Their main intension was “to make Infosys an organization where every action is fully enabled by the power of knowledge where every employee is empowered by the knowledge of every other employee. Thus knowledge sharing was supposed to be incorporated in the company. They revealed that a significant number of requirement were for explicit knowledge such as project documents, client reports, reusable code etc. however the improvement of tacit knowledge flow was kept as the primary goal for long term. Thus KM was now started with the conceptualisation of the KMM - Knowledge Management Maturity model (Please refer Appendix A for details of KMM). To achieve level 2 of KMM the first thing to be done was to increase awareness among the employees so that the initial knowledge capture process is successful. As for KM process to be successful the knowledge capturing and sharing acts as a very good foundation. Thus it was the point to develop the initial technical infrastructure to support KM. the investment was increased in the training by creating a Research and development centre.
The next level was attained to convert the interest into serious involvement. They introduced a new scheme in which users will award quality points called KCU (knowledge currency units). But the officials explained “while the scheme was serving as our initial purpose, it was an imperfect instrument to sustain a long term involvement of employees”.
Resistance to Knowledge Sharing:
The KM executives at Infosys created a Project Learning system (PLS) to which project managers were asked to submit detailed account of their learning from the project. But they faced very strong resistance from them with the reasons like “lack of time” or “project deadlines”. However they knew that the reason behind this was just that the project managers didn't want to share their proprietary knowledge. So this system was scrapped and an existed system Integrated Project Management (IPM) was modified. IPM had a low component of the proprietary knowledge.
Moving towards KMM level 4:
By this time, Infosys was recognised as Asia's Most Admirable Knowledge Enterprise (MAKE) for 2003 and in 2004 was recognised among Globally Most Admirable Knowledge Enterprise. But the board of directors were not very happy with the success as they were waiting to get the ROI (return on investment) for KM program. The main challenge they faced was improvement of tacit knowledge flows. This demanded advanced training programs, which in turn needs further investments in the KM process. The financial report at this point stated that there was a 15% lower defect rate in those projects where good amount of knowledge sharing was done. The project cost also lowered by 13% of the overall project quality. Project leaders reported savings of over 4 man-days per person per year as a direct benefit as a direct benefit of reusing project related knowledge. Their operational efficiency also increased from 2 to 4 percent. (Source: Journal of Information Technology (2007) 22, www.palgrave.com).
Nandan Nilekani, the CEO of Infosys had the challenge to explain the board on how KM has helped in giving a competitive advantage. He then recollected one project which he gained because the same type of application was already being developed with someone in the organisation. It was being identified what the client was actually looking for. Thus the Infosys got that project because with the help of KM system.
But a question arises that of many projects will he be able to put in front of the board to convince them? Do the board members ever understand the need of KM in an organisation? And above all, do the employees understand the need and necessity of KM in the organization? Well, an attempt to answer these is done in the critical analysis of the report.
- Also discuss tata steel case.
Face to face interviews were carried out by the researcher in India so as to get the exact information about the current scenario of knowledge management in India. The actual interview notes taken down during the session are given in the appendix. Many companies were visited for the interviews but in order to maintain the flow of the report all of the interviews will not be discussed here. The main interviews according to the researcher were of those companies who are either having a good cultural background for knowledge management, the companies who have applied KM practices and are really successful today, the companies who tried and did not succeed, and also those who have just started with it. Thus these few types will be discussed here. As stated earlier the name of the company will not be mentioned anywhere as the interviewees requested to remain anonymous due to security reasons.
The actual notes taken during the interview can be found in the APPENDIX C. Following is the discussion based on the interviews with KM executives of various companies
The first company under consideration for discussion was one of the market leaders in field. They had started using and implementing KM practices since a long time and are today successfully running not only in India but they also have their offices in US, UK etc. when asked about their KM practices the CKO answered that they have a intranet based site named “K-Shop”, containing info on project it encompasses Knowledge transition plan which ensures people transferring their knowledge gained in the organisation. Every employee contributes two BoK's which is linked with their appraisal n performance, which is duly scanned by the review committee to prevent violation of intellectual property rights (IPRs). The data collected is separated into two categories: general data: which consists, and WRITE ALL
E-LEARNING: it is an intranet based application also called I-Lite that provides online training material to all employees. It is extensively used by the company to train new employees and develop skills. Learning modules are prepared and tests are organised after a stipulated period of time. At the time of appraisal line managers need to check how many tests have been taken and passed by the employees and decides the learning and training requirements of his sub ordinate in the following year. This is directly related to performance management system.
INDUCTION programs are a training program for the new joiner that is conducted over a period of six days where new candidates are formally introduced to the senior management team. Classroom training is given to the new employees to educate them a bout the organisation, its structure, culture and business goals,
Discussion forums are held where all are encouraged to write down their skills n competencies in different levels.
RADAR is a defect preventive system. When any tip, session or performance is reviewed, all the defects are uploaded in RADAR.
Pride for Quality is a repository of templates, design, document stating the requirements of clients, coding, and standards etc. there is also a system appreciation document which is to be read by the new comers.
The KM website also known as ICM is reviewed by a committee that uploads reusable components related to knowledge.
LOTUS NOTES SERVER: stores information about new employees and stores them in a database. Knowledge on various topics such as application management, design architecture, domain knowledge is contributes by the employees.
Discussion forums: this company has one of the most modern tools for discussion forum. all employees are given IP phone lines from which they access any other access any other employee in the organisation. On the PC they can view any recorded conference by registration.
Training: customers giving feedback for training of an employee is a unique thing practiced by the company. On the company's global campus site, free training is available for all the employees on the area they need, online books are also available on the site.
Centre of competency (CoC): it's a formal classroom training in which assignmnts are given to the employees on which they are rated.
Database of people: is a new initiative by the company and is useful for accessing those people who have an expertise in a field.
This is a good example if how KM practices can fail in a company. The KM intranet site for this company is called Channel One which started in 2002, but failed because:
- There was no ownership of data
- no dedicated team responsible for KM
a second wave of Km was launched by the company. Middle n top management had identified 90 KM champions who were active, enthusiastic and industrious people in the teams. The KM champions were given the responsibility of creating case studies and putting all the relevant data which could be useful for future reference in a proper format.
The second phase of KM initiatives was analysed on these parameters:
- Solution provider
- Reduced time to respond for the company executive to client problem
- Addressing business needs not the technology needs
- Improving quality of job
The KM champions were made owners of KM initiative, while the usage of KM is restricted to senior associates only. Every vertical has a separate KM portal where access is restricted to senior business analyst as it contains sensitive informative.
The business analyst who heads the project team delegates the case (write paragraph)
The rejection of materials happens due to Incompleteness, Language, Lack of illustration, or not following standard template.
For junior associates, technology network and discussion forums are available for upgrading skills.
Idea-logy.com was launched in 2000-01 with the objective to participate in the idea generations in their day to day working for process improvement. Everybody from s worker on shop floor to top management was supposed to contribute. However it failed because no rewards were awarded for idea generated, was voluntary, lacked motivation and had no motivation to current problems at hand.
MI net: daily secondary sales data and stock related information is update don this site accessible to both sales force and head office. It is successful because knowledge is structured, relevant knowledge was available on the net, knowledge about eligibility, ethics and incentive policy was found and it helped new recruits reduce their learning curves.
E lerning portal: an intranet portal whose objective was to create a learning site across depatments. It was used to induct a new person in the organisation but failed because there was no revision, it was driven by IT, older employees were not motivated, no sustenance model was thought of and because no evaluation was ever done.
A questionnaire was designed by the researcher to distribute among the IT professionals in India. The sample copy of an unfilled questionnaire is given in appendix of this report. There were 10 questions asked through the questionnaire. The 1st two questions were based on the information about the respondent designation in the company and work experience counted in number of years of service. Confidentiality was requested by the respondents, so name of the employee or the organization are not mentioned any where throughout the report.
On the basis of the study results it can be fair to state that the knowledge management for IT field in India is on a progress level as 94% of the respondents said that knowledge management practises are formally being carried out in the company they work. Thus the analysis of the responses to the first question shows that in India the IT professionals are fairly aware of the concepts of KM. The next question was a multiple selection type in which the respondent was given few options to choose as their response to what main KM practices are being carried out in the organisation. It is clear from the survey done that majority of companies are using their intranet or web portals for the processing of KM practices. Nearly 78% of the respondents belong to the organization where intranet and web portals are being used. 62% of the respondents go through the KM processes with the help of knowledge repositories in the company. However, the percentage of companies having discussion forums and assignment patterns are 36% and 23% respectively.
Now to find out the awareness of KM in the industry it was important for the researcher to know that how much importance employees give to the KM processes. This was accomplished using the next question in which the respondents were asked to rate the significance of KM in an IT company. The response shows that 61% of the people questioned feel that KM is extremely important whereas remaining 39% feel that it is fairly important. It is really good to see that there is no class of employee who feel that KM is not important or people can work without it as well. The importance of KM alone does not give the reason for it to be so important. When asked about the major achievement of the company with the help of good KM practices 64% of the respondents said that competitive advantage, innovation, good working culture and employee empowerment, all of these can be achieved with the help of good KM practices. The respondents who think that only competitive advantage can be achieved are 21% whereas those voting for Innovation achievement are 24%. Very few people think that KM can be helpful for employee empowerment and for creating a good working culture. The percentages for these were 13% and 10% respectively.
Knowledge Management can not only improve the company's future but it can also help the employees to enhance their career by giving it a good shape for progress. Nearly 85% of the IT executives in India feel that the use of KM processes in their company has helped them to make some progress in their career. 13% are still in a process of deciding whether the KM process has helped them or not career wise. Hardly 2% respondents do not agree that KM processes in their companies have helped them in their career. It shows that the Indian IT sector employees are also counting on KM practices of their company to look forward for the progress in their company.
The maximum usage of the KM processes is done by the junior to mid-level employees of the organization. The researcher feels that the reason behind this would be because they are suppose to follow the KM rules and regulations set by the management (mainly Knowledge officers) people. Thus it is very important that the employees are happy with the KM processes running in the organization. To know the scenario in the Indian IT industry the questionnaire included this option in which the respondents were asked whether they were happy with the current KM processes of their organization. Almost 76% of them say that they were happy with it whereas there were 24% of the survey population who were not happy with the knowledge management practices in their organization.
There were two descriptive type of questions asked in the questionnaire. The first one was to get the contribution of the respondents to KM in the company. The response was really varied. Many employees said that they contributed to the KM process by training their colleagues. Whereas some said that they created a few web blogs or newsletters. Some of the respondents declared that they conducted seminars or presentations in order to contribute to their KM process. A few respondents also said that while coding the program they used such a code that will be reusable in the future for other projects. This was a good case overall as employees were interested in the betterment of the company through KM. But, to the researcher's surprise, none of the respondents said that they contributed in order to encourage innovation in the field of KM. There was no answer that dictated suggestion of new strategies in the organization for knowledge management.
The next descriptive question also gave surprising responses. The respondents were asked if they had any suggestions in order to improve the KM practices in the company. Majority of the respondents suggested that they wanted everyone to be involved in the process of enhancing the company's state with the help of KM. thus; it is fair to conclude that the employees are not happy with the amount of involvement from everyone in the organization. This reflects the fact that there is a resistance to change issue somewhere in the organizations, the details of which shall be discussed in the critical analysis chapter.
CHANGE -- These findings have serious implications for the organizations under study, as well as the industry and the country. The public sector, in particular, needs to take a serious look at its organizational culture in the present time of privatization and liberalization. In this knowledge-driven, services-led global economy, knowledge is the most critical resource and if we are not able to create a culture of knowledge creation, sharing and dissemination, then the competitiveness of our firms, our industry and our country is at stake.
- KNOWLEDGE MANAGEMENT FOR COMPETITIVE ADVANTAGE
- INNOVATION WITH KM
INNOVATION BASED SERVICE PROVIDERS
Innovation in companies is a mix of innovation culture and innovative system. Hence, innovation must envelope everything a firm does that is critical for its continuing survival and growth. Such innovations have to take place not only in product and process breakthrough's but also in host of business, organization and process-related areas that are critical for facilitating product and process innovations. Key management processes of new product development, capital project appraisal and resource allocation need to be carefully redesigned making them conducive to the innovation process within the firm. As the Industry moves in this direction, individual organizations must establish knowledge & innovation management systems that will help them identify and quantify their domain expertise. The systems established must ensure that in areas where significant domain expertise already exists albeit at other organizations, the company can consider options such as licensing to avoid reinventing the wheel. Service providers must look at a new paradigm that encompasses Research & Development, IP Generation & Management, Co-Development & Cross licensing and tie-ups with Manufacturing.
- KM IN SME AND MNC - A COMPARISION
- SURVIVAL WITH CULTURE CHANGE
-- CHALLENGES FOR KM
**KM for good ROIs
With the help of km following improvements can be done in the company:
- decision making is improved
- better ability to get new partners up to speed up quickly
- improved morale bcoz employees are making more effective decisions
- increasing customer loyalty due to better trust in ur employee expertise
(source: managing knowledge, Wayne applehans alden globe greg laugero )
(same source: Hiring people - page 69 )
CHANGE -- Initially India focused on rendering high quality software development services. In order to reduce costs, maintenance and lower-end jobs will move to cost beneficial locations. This will force companies to work at higher technology levels and on significantly more challenging work scenarios. They will need to accept the risks involved in development of technologies, which was not the case some years back. Companies will also need to accept probable failure as a possibility. Although the Services Industry has not traditionally been considered an “Innovation-base”, it must move towards this goal if it must sustain itself in the long run. Software Services companies need to think outside the box and look to ways of contributing their domain expertise into the knowledge pool of the global market leaders in specific technology segments.
India is today the Research & Development choice for MNC's. Around 200 global companies have already set up their Research & Development centres in India. 
ADD THIS IS RECOMMENDATIONS -- Fahey and Prusak (1998) draw attention to a set of pervasive knowledge management errors based on their observing or partaking in over a 100 knowledge projects. After discussing the 11 errors, they suggest three critical set of actions, namely, managers need to continually reflect on knowledge as an organizational phenomenon; they must be obsessive about noting and correcting errors in their stock of knowledge; and must also be vigilant about detecting and correcting errors in their process of knowing-the generating, moving and leveraging of knowledge throughout the firm.
LIMITATION OF STUDY
REFERENCES AND BIBLOGRAPHY
1. American Productivity and Quality Centre (APQC) International Benchmarking Clearinghouse. 1999. Creating a Knowledge-Sharing Culture, APQC, Texas. www.apqc.org
2. Ardichvili, A., V. Page and T. Wentling. 2003. .Motivation and Barriers to Participation in Virtual Knowledge-sharing Communities of Practice., Journal of Knowledge Management, Kemptson, 7 (1): 64.78.
3. Bartlett, C.A. and S. Ghosal. 1993. .Beyond the M-form: Toward a Managerial Theory of the Firm., Strategic Management Journal, 14: 23.46.
4. Bontis, N. 1999. .Managing an Organisational Learning System by Aligning Stocks and Flows of Knowledge: An Empirical Examination of Intellectual Capital, Knowledge Management and Business Performance., The University of Western Ontario. Dissertation Abstracts on Disc, ProQuest Searchware, Jan. 1999.Sept. 2000.
5. Brown, S.J. and P. Duguid. 2003. .Balancing Act: How to Capture Knowledge Without Killing it., Harvard Business Review, 81 (3), May.June: 73.80.
6. Bukowitz, R.W. and L.R. Williams. 1999. The Knowledge Management Fieldbook. Hurlow: Pearson Education Ltd.
7. Clark D. (2004) http://www.nwlink.com/~donclark/performance/understanding.html accessed
7. Davenport, T.H. and L. Prusak. 1995. Working Knowledge: How Organisations Manage What They Know, pp. IX. Harvard Business School Press, Boston.
8. Denning, S. 1998. .Building Communities of Practice., American Productivity and Quality Council, Texas. www.apqc.org.
9. Drucker, P.F. 1993. Post-Capitalist Society. London: Butterworth-Heinemann. p. 166.
10. Essex, D. 2000. Knowledge Management Programs Pay Big Dividends, ITworld.com, Aug 01. www.itworld. com
11. Fahey, L. and L. Prusak. 1998. .The Eleven Deadliest Sins of Knowledge Management., California Management Review, 40 (3). Spring.
12. Handzic, M. and D. Ahahari. 2004. .Knowledge Sharing Culture: A Case Study., Journal of Information and Knowledge Management, 3 (2): 135.42.
13. Hedlund, G. and I. Nonaka. 1993. .Models of Knowledge Management in the West and Japan., P. Lorange et al. (ed.), Implementing Strategic Process: Change, Learning and Cooperation. Oxford: Basil Blackwell.
14. Kochikar, V.P. 2000. Knowledge.The Currency of the New Millennium, Infosys website.www.infy.com/ corporate/thought-papers/knowledge3.htm
15. Koulopoulos, T.M. and C. Frappaols. 1999. Smart things to know about Knowledge Management. Oxford: Capstone Publishing Ltd.
16. Kwan, M.L.M. 1999. Process-oriented Knowledge Management, Boston University. Dissertation Abstracts on Disc, ProQuest Searchwave, Jan. 1997. Sept. 2000.
17. Kyriakidou, O., .Developing a Knowledge Sharing Culture., Management Services, Enfield, June 2004, 48 (6): 22.24.
18. Leonard-Barton, D. 1992. .Core Capabilities and Core Rigidities: A Paradox in Managing New Product Development., Strategic Management Journal, 13 (5): 363.80.
19. Levin, D.Z. 1999. Transferring Knowledge within the Organization in the R&D Arena, Northwestern University. Dissertation Abstracts on Disc, ProQuest Searchware, Jan. 1997.Sept. 2000.
20. Malhotra, Y. 1998. .An Interview with Tom Davenport and Larry Prusak about their New Book.Working Knowledge: How Organisations Manage What They Know., Brint Research Institute. www.brint.com
21. Manasco, B. 1997. .Leading Lights: An Interview with Author and Consultant Stan Davis., Knowledge Inc. www.knowledgeinc.org
22. Manasco, B. 1997. .Leading Lights: Technology Designer Michael Schrage., Knowledge Inc. www.knowledgeinc.org
23. Mcdermott, R. and C. O.Dell. 2001. .Overcoming Cultural Barriers to Sharing Knowledge., Journal of Knowledge Management, Kemptson, 5 (1): 76.86.
24. Mullin, R. 1998. .Knowledge Management: A Cultural Evolution., The Journal of Business Strategy, 17 (5): Sept..Oct.
25. Nonaka, I. 1991. .The Knowledge-creating Company., Harvard Business Review, Nov..Dec.:96.104.
26. Nonaka, I. and H. Takeuchi. 1995. The Knowledge creating Company,. p. 7. New York: Oxford University Press
27. Nonaka, I., R. Toyama and N. Konno. 2001. .SECI, Ba and Leadership: United Model of Dynamic Knowledge Creation., in I. Nonaka and D. Teece (ed.),
28. Park, H., V. Ribiere and W.D. Schulte Jr. 2004. .Critical Attributes of Organizational Culture that Promote Knowledge Management Technology Implementation Success., Journal of Knowledge Management,
29. Kemptson, 8 (3): 106. Parlby, D. 1998. The Knowledge Journey, KPMG Consultancy UK. www.kpmg.co.uk
30. Planning Commission Task Force (2001). Report, India as Knowledge Superpower: Strategy for transformation, Planning Commission, Government of India, New Delhi.
31. Ruggles, R. 1998. .The State of the Notion: Knowledge Management in Practice., California Management Review, 40 (3): 80.89. Spring.
32. Senge, P. 1998. .The Fifth Sense., in R. Gibson (ed.), Rethinking The Future, pp. 122.46. London: Nicholas Brealey Publishing.
33. Shukla, A. and R. Srinivasan. 2002. Designing Knowledge Management Architecture. New Delhi: Response Books.
34. Singh, M.D., R. Shankar, R. Narain and A. Agarwal. 2003. .An Interpretive Structural Modeling of Knowledge Management in Engineering Industries, Journal of Advances in Management Research, 1 (1): 28.40.
35. Srinivasan, R. 2004. .Knowledge Architectures for Cultural Narratives., Journal of Knowledge Management,
36. Kemptson, 8 (4): 65.
37. Stewart, T.A. 1997. Intellectual Capital: The New Wealth of Organisations, p. 6. New York: Doubleday. .... 2001. The Wealth of Knowledge, p. 5. New York: Currency.
38. Toffler, A. 1990. Powershift: Knowledge, Wealth and Violence at the Edge of the 21st Century. New York: Bantam Books.
39. World Bank. 1998. What is Knowledge Management?, A Background Document to the World Development Report. New York: World Bank Publication. www.worldbank.org .... 1999. World Development Report.Knowledge for Development 1998/99, p. 17. New York: Oxford
40. University Press.2004. India and the Knowledge Economy:
Leveraging Strengths and Opportunities. www.worldbank.org.in
41. Zhu, Z. 2004. .Knowledge Management: Towards a Universal Concept or Cross-cultural Contexts?.Knowledge Management Research and Practice, Houndmills, Aug., 2 (2): 67.
TCS Tata Consultancy Service
-- ARRANGE THESE IN alphabetical order.
TATA CASE STUDY
(GREEN-- : http://www.tatasteel.com/technologyupdate/km/latest_happenings.htm )
According to Rory Chase, managing director of Teleos, "India is emerging as a dynamic center of innovative knowledge management. The annual Indian MAKE study serves as a benchmark to recognize those Indian companies which are leaders in effectively transforming enterprise knowledge into wealth-creating ideas, products and solutions. These companies are building portfolios of intellectual capital and intangible assets which will enable them to out-perform their competitors - both in India and abroad - in years to come."
Business leaders, analysts and investors constantly ask: "What are the economic and competitive advantages of pursuing a business strategy based on knowledge leadership?" Based on the findings of the 2006 Indian MAKE study, the benefits are tangible and significant. One of the clearest metrics to demonstrate this fact is Total Shareholder Return (TSR). Last year, the TSR for the 2006 Indian MAKE Winners was 29%, more than five times that of the US Fortune 500 company median of 5.4%.
Tata Group recognized as one of the 2006 Global Most Admired Knowledge Enterprises (MAKE)
The Winners of the 9th annual Global Most Admired Knowledge Enterprises (MAKE) study have been announced by Teleos and TATA Group (primarily due to Tata Steel & TCS) has been named as one of the winners of this coveted award. Toyota is the overall Global MAKE Winner".
This is the first time that the Tata Group has been named a Global MAKE Winner. As per the summary report available Tata Group was rated high in two of the following knowledge dimensions
- Developing knowledge workers through senior management leadership (8th place)
- Creating an environment for collaborative knowledge sharing (13th place)
According to Mr. Rory Chase, MD, Teleos, Tata Steel and Tata Consultancy Services received a similar number of nominations from the 2006 Global MAKE expert panel. Most of Tata Steel's nominations (approx. 90%) were from 2006 Global MAKE expert panel members located in Asia.
Tata Steel received particularly high scores in the following knowledge performance dimensions:
- Creating a learning organization
- Delivering value based on customer knowledge Areas where Tata Steel can improve are:
- Maximizing enterprise intellectual capital
- Transforming enterprise knowledge into shareholder value
According to the 2006 Global MAKE Report, European knowledge-driven organizations are failing to keep pace with their Asian and North American counterparts, and more organizations are relying on innovation for the competitive advantage.
The winners of the 2006 Global MAKE study, conducted by Teleos in association with The KNOW Network, are (in alphabetical order):
• Accenture • Apple Computer • BHP Billiton • Buckman Laboratories • Dell • Ernst & Young • Fluor • Google • Hewlett-Packard • Honda Motor • McKinsey • Microsoft • Novo Nordisk • PricewaterhouseCoopers • Samsung Group • Sony • Tata Group • 3M • Toyota Motor Corporation • Unilever
Rory Chase, managing director of Teleos, said: "These organizations have been recognized as global leaders in effectively transforming enterprise knowledge into wealth-creating ideas, products and solutions. They are building portfolios of intellectual capital and intangible assets which will enable them to out-perform their competitors now and in the future."
A panel of Global Fortune 500 senior executives and internationally-recognized knowledge management/intellectual capital experts chose the 2006 Global MAKE Winners. The panel rated organizations against the MAKE framework of eight key knowledge performance dimensions which are the visible drivers of competitive advantage and intellectual capital growth.
The 2006 Global MAKE Winners have been recognized as leaders in:
• creating a corporate knowledge-driven culture • developing knowledge workers through senior management leadership • delivering knowledge-based products/solutions • maximizing enterprise intellectual capital • creating an environment for collaborative knowledge sharing • creating a learning organization • delivering value based on customer knowledge • transforming enterprise knowledge into shareholder value
- It is an intranet-based site, accessible to all individuals in the organization, which contains specific information on projects.
- knowledge transition plan: when a person is leaving a project team, department or company, he has to share and transfer the knowledge gained during his tenure
- Dynamic nature: the data is contributed dynamically by all the employees. It is compulsory for every employee to contribute at least two books of knowledge (BoK's). It is linked with their annual performance appraisal.
- But it is not that everybody can directly upload anything on the K-shop site. There is a review committee which scans through the documents and checks for originality, relevance, innovation, creativity, comprehensiveness, lucidity, etc. this is important considering the legal issues the company may face because of the violation of intellectual property rights (IPRs).
- The data can be segregated into two categories:
- General data: this consists of information on industrial trends, current happenings in the industry, behavioral aspects, cultural issues, etc. if a person is given an onsite assignment; it is very helpful for him to go through these documents.
- Technical data: this consists of information on problems faced by programmers, the solutions and analysis given by them.
- Reusable code components: this is a repository of various code snippets which can be reused for different projects. This saves on the time required for programming.
- Search option: advanced search is also available according to technology, domain, people, their expertise, etc.
- It is also called I-Lite. It is an intranet-based application which contains online training material for all employees to enhance their skills and knowledge in various areas.
- It is extensively used by the company to train the new employees. They have to undergo the learning modules and the tests at the end of a stipulated period. They have to score at least 60% to pass each module, failing which, they have to prepare for the module again and retake the tests.
- It contains modules on technical, cross-cultural sensitivity and communication related training modules.
- At the time of appraisal, the manager decides which and how many training programs his subordinates have to undergo in the coming year. A review of last year's training sessions and the benefits that the employee and the organization have got is also done. Thus it is linked with the performance management system.
- Induction program:
- This is a training program exclusively for a newcomer.
- Classroom training is imparted to the trainees for six days.
- These sessions include information on the organization, its structure, its culture, communication skills by senior management.
- KM Plan:
- Daily tips are uploaded by the employees. They also take sessions on various topics like technical, domain, tools to be used in the projects, language, etc. there are different points given for different type of contribution by the employees. It is compulsory that everyone should contribution at least 1 or 2 BoKs per year. This is reviewed at the time of appraisal.
- There is a KM Champion declared every month. KM anchor is a person who is selected on a rotational basis from among the team members.
- KM Anchor: he is responsible for all the KM activities of the project team for which he is working. He is responsible for preparation and execution of KM Plan. He is responsible for conducting the KM Meetings.
- MSR (Monthly Status Report): it contains information about other projects going on in the company, service level agreement and remedy tickets for support.
- Discussion forum: In the Skill Centre, everyone has to enter his expertise level in various competencies. There are five levels. The levels entered by the employee are checked and approved by his manager. Depending upon these levels, one can target a set of people for solving his query. There are different discussion forums for local and global needs.
- RADAR: It is a defect prevention system. When any tip, session or performance is reviewed, all the defects in that are uploaded in RADAR. Tools like Pareto's analysis and brainstorming are used for that. For brainstorming carried out every month, people from other project teams are also invited.
- Pride for Quality: this is a repository of templates, design, document stating the requirements of clients, coding standards, etc. There is also a system appreciation document which is to be read by all the newcomers.
- The name of the Knowledge Management website is Intellectual Capital Management (ICM). This website contains all the reusable components, inventions, programming language related knowledge, various document, biographies of successful people, etc. Before getting uploaded, it is reviewed by a committee.
- Lotus Notes Server: databases are stored. When a new person joins, his database is uploaded immediately. It consists of his background, qualification, etc.
- Knowledge on various topics such as application management, design architecture, domain knowledge like mutual fund, etc. is contributed by the employees. When a person downloads anything from this knowledge base, he has to give feedback on the quality, originality of the document. There are awards for users and uploaders.
- Patents filing system: the company files for the employees in collaboration with them. This is done to enable the employees who cannot afford it. This is a unique policy practiced in a company. The royalty for the patent is shared between the employee and the company. Non-monetary rewards like recognition are also given.
- Financial fraud management: there are Business Class Guidelines entered into the system. If any transaction is violating the norms, the system prevents it from happening. There is also a training given to the employees about financial integrity.
- Discussion forums: employee who wants to partake in this activity has to register himself. This company has one of the most modern tools for discussion forum. All the employees are given IP phone lines from which they access any other employee in the whole organization. On their PC they can view any recorded conference by registration.
- Training: Customers as well as managers recommend an employee for training. Customers giving feedback for training of an employee is also a unique thing practiced by the company. On the company's Global Campus site, free training is available for all the employees on the area they need. Online books are also available on the site. The cost of online training and books is allocated to the department from which the employee is working. So obviously a manager thinks about the necessity and need of the training.
- Centre of Competency (CoC): there is a formal classroom training in which assignments are given to the employees on which they are rated. CoC also facilitates updating of blue pages giving information on various topics.
- Level of competency: these are called CAT 1, CAT 2, etc. All the employees have to apply for a level and their managers have to approve it.
- Database of people: this is new initiative by the company. It is useful for accessing those people who have an expertise in a field.
- KMS Server: all the employees have login ID to this server. Anyone can upload any folder containing knowledge on some topic after review by his manager. The time and date of upload, the name and details of the person who uploads it are displayed.
- Project information: This is uploaded on the server and contains client information, status of the project, etc.
- Skill levels: there are two kinds of skills:
- Modelling and
The database stating the skill area of all employees is updated on a continuous basis. If a person has a need to consult others with a particular skill, he can contact them directly. This is also useful in resource management for deploying people for various projects.
- Process Data Management software (PDM): it is worldwide-accepted software used by the company for processing data, its analysis, etc.
COMPANY D ( company I )
- Knowledge Management intranet site at this company is called ‘Channel One'. This site is organization wide and is accessible by all the members in the organization. There are different knowledge Management cells for each and every vertical of the organization, over and above channel one.
- Channel one started in 2002. Then it was a mere repository of data, reference material for the project teams. It failed because,
- There was no ownership of data
- No dedicated team responsible for KM
- Then a second wave of Knowledge Management was launched by the company. 90 KM champions were identified by the middle and top management in the organization. These champions were the active, enthusiastic and industrious people in the teams. The Knowledge Champions were given the responsibility of creating case studies and putting all the relevant data which could be useful for future reference in a proper format.
- The second phase of knowledge management initiatives was analyzed on these parameters:
- Solution provider
- Reduced time to respond for the company executive to client problem
- Addressing business needs not the technology needs
- Improving quality of the job
- The KM Champions were made owners of KM initiative. KM champs are rotated among team members. The usage of KM endeavor is restricted to Senior Associates only.
- Today all the divisions have a well charted out KM program. Every vertical has a separate KM portal. To this portal only senior business analyst can access, since it contains sensitive information.
- The KM portal mainly contains, case studies, client documents, client presentations, practice presentations, competitive intelligence etc.
- The business analyst who heads the project team delegates the case preparation to one or more team members working on the project. As soon as the project is finished the Associate has to put a case study on the KM portal. The project leader gathers the inputs from team members, puts them in the standard format/template and sends to the review team. The KM team reviews the content, sieves out objectionable part and client specific information. Then the case study is uploaded on the portal for everyone to see. All the material which goes on the portal is scanned for IP issues and client confidentiality. Auto alert is set for the author to update the info he has put on the portal.
- Rejection of the material happens …….
- Verbose, no tables, explanatory charts, diagrams etc.
- Not following standard template
- For Junior Associates there is a technology network, a discussion forum and an academy is available for upgrading individual skills.
- Project close out and knowledge sharing: After action learnings and reviews are done in close out meeting which is attended by one KM team member, one team member who worked on project and one KM Champion.
- Future plan of the company:
- To create online discussion boards
- Knowledge Brokers: these will be a connecting link between the client and the company experts on the subject matter.
- Real time collaborations with clients and discussion forums.
COMPANY E (company k)
- Idea-logy.com: this was launched in 2000-01. The objective was to participate in the idea generations in their day-to-day working for process improvement. Everybody from a worker on shop floor to top management was supposed to contribute. People would rate the idea depending on the feasibility and relevance to the problem at hand. But it was a failure because of the following reasons:
- No reward so no innovative idea generated
- It was voluntary
- Lack of motivation
- No relevance to the current problem at hand
- MI-net: It was meant for sales force. On a daily basis secondary sales data and stock related information is updated on the site. The site is accessible to the sales force as well as head office. It is a huge success because
- Knowledge is structured
- Day to day required knowledge related to the users' territory was on the net
- Knowledge about eligibility, ethics, incentive policy
- It helped new recruits reduce their learning curve.
- E-learning portal: it was an intranet based portal. The objective was to create a learning site across departments. It was used to induct a new person in the organization. It was a repository of documented processes of departments. It was a failure because
- No revision - no responsibility given for this
- Driven by IT - It was not mandatory for anybody to go through it.
- The experienced people in the organization did not feel the need for this initiative.
- Any sustenance model was not thought of. The distribution of knowledge was planned.
- No evaluation was done.
- Future plans:
- Use knowledge management for new product development because they understand that this is an important cost centre. By proper utilization of knowledge, a substantial reduction in cost can be achieved.
- Use KM initiatives for unstructured data of brand management in marketing department.
- It is also proposed to be used in R&D where the knowledge is structured.
COMPANY F (E)
- The repository of data are classified into two types:
- Regional database: this is done at a broader level e.g., of Asia Pacific. Reports of projects, presentations, documents are collated and deposited here. These are final documents of the projects.
- Local database: all documents and not only the presentations. This database is in details. When a person wants to access the detailed database, he can contact a local person in that geographical area and request him to retrieve the data. These documents are uploaded when the project is going on.
The details of people uploading any of the above documents are also given.
- The experiences of the people however are not stored for future use.
- Induction/training: two different induction programs for freshers and lateral placements are carried out by the company. There is no assessment in induction.
- Laterals: they undergo a fundamental development course for 15 days which is held at a regional level office. But this course is sponsored by the company only after 1 to 1.5 years of service.
- Freshers: all the joiners from campus are considered as freshers. They have to undergo two days' induction which gives information about basics of company's business, basics about consultancy, etc.
- Appraisal is not focused on the training needs and review of last year's training programs.
- Online courses: some courses are compulsory (e.g. ethics) and the others are optional (e.g. courses on industrial knowledge, functional knowledge depending upon the interest of the employee). Some courses involve testing of the candidates at the end.
- Virtual teams: they are very easy to form and are regularly resorted to. This can be done through the manager who calls the concerned person.
- Knowledge sharing: A common meeting is held in which review of all projects is done so that all come to know about other projects and their status. In these sessions, local industrial trends are also brainstormed upon.
- Employees are satisfied 20% of the times they want to get help from the knowledge management system of the company. Rest of the requirement is satisfied by talking to various people on telephone and taking their advice.
- Customer feedback: the client knows the right person. There is no need to electronically capture the feedback. He can directly contact the concerned person.
- There is no resistance to adopt a new knowledge management initiative by the employees.
- All the data is confidential with the HR department. It is called resource management department.
- Learning plan: it is chalked out half yearly. Employees can self nominate themselves and if it is approved, they can go for learning opportunities. The objective of learning plan is clearly defined for individual employees in terms of level achievement in some competencies.
- Goal Sheet: this has the record of goals of training sessions and their extent of achievement.
- Induction: freshers undergo training on all the technical areas like software engineering, programming languages, software development life cycle, etc. For experienced people, a small training of two days giving an overview of internal processes is given.
- Deployment: People are assigned projects depending upon the business the project is brining for the organization. A mentor is assigned to every new joiner to take care of his professional as well as personal needs.
- There is no dedicated portal for knowledge management alone.
- Ultimatix: everyone has to upload their CVs on this intranet-based site. Competency levels of all employees are also updated in the personal information section. The update of competency levels of employees is the responsibility of Resource Management team, which is done in the learning plan review.
- Knowledge Transfer: It is need-based. At the time of resignation, sufficient notice period is given to the company, which can be different for different people depending upon their responsibility. The Project Leader is responsible for that.
- There is always a back up kept for all people.
- Increment and appraisal system is not linked with knowledge management initiative. It is not even performance driven. All employees are rated by their managers on a five-point scale and increment is decided.
- Virtual teams: most of the time, somebody is found in the project to refer to. There is no formal mechanism for forming virtual teams. It is done through personal relations. If a person is not adept at interpersonal skills, he may face problems.
- Knowledge Management System: There is a common hard drive accessible to all the employees. This contains knowledge on various industries, past projects done by the company. There is an excel file maintained containing websites, their user IDs and passwords. The company is the registered user of all these websites. This excel sheet is uploaded by any employees if he has a new information.
- There is a library of books which are ordered from foreign markets as soon as they are released there. It contains some books which are very difficult to be found in India.
- Recruitment process: it is aligned with the knowledge management department's activities. The strength required by all the departments is declared.
- Induction: for two years, rotation through all sectors and a few horizontals is given to the employees.
- Deployment: it depends upon three factors: vacancy in the project, tenure of the employee (if he is new person he has to take up rotation jobs) and expertise.
- Training: it is common for all. It includes orientation towards industries, clients, assignments, vision, mission, targets of the company for new sectors and geographies.
- There are two kinds of programs - optional and compulsory. Optional programs are declared and the people not on any project can undergo it. Compulsory programs are for the relevant people only. Training need is identified by the manager.
- Virtual Teams: it is easy to contact people from any other team. The data of all people and the projects they have worked is on the KMS server. But it is not open to all. Any person can get access to it by telling the necessity of seeking advice from other person.
- Knowledge sharing: this is done within a vertical. There are one or two practice meets per month.
- An improvement sought in the system by the employees is that there should be general knowledge sharing sessions which would give an overview about all the projects going on in the company. It should not be restricted to a vertical.