planning exec

Corporate Information and Operations

Siemens AG File: CIO FF_Template5/20/2010 Page: 1

Planning and Executing the Business Case for Knowledge Management

© Siemens AG 2003 Corporate Information and Operations

Knowledge Management

Demonstrating the Value of KM, 26-27 November 2003, LondonDr. Josef Hofer-AlfeisSiemens AG, Corporate Information and Operations, Management & Support Processes and Knowledge Management

This is Siemens

LightingAutomation andInformation and Energy and TransportationHealth Care

Business Areas:

g gControlCommunications

gyPower

p

Siemens represents one of the largest human and knowledge networks in the world:

1Corporate Information and OperationsT. PittschielerCIO SPC© Siemens AG 2003

Using KM drive Perfmnce&Inno HA20030911e del.ppt 12-Nov-03

Siemens represents one of the largest human and knowledge networks in the world:more than 430.000 employeesacross borders into 190 countries and culturescollaborating with numerous customers and partnersderives 75 percent of total sales from products developed in the last five years



Effective socio-technical KM systems Some usage indicators from March 2003

Overview from the top 4 group initiatives and from corporate activities:

Communities of Practice (CoP): >1500, including >250 cross-group or corporate,>90,000 community members90,000 community members

Knowledge Marketplaces with >75,000 users

Knowledge/Content, e.g. Proficiencies of >430.000 employeese.g. in various organizational structures, internal and external, … 190 countriese.g. codified in >250,000 knowledge objects in the marketplaces

Processes, e.g. per 1000 knowledge objects typically 300 downloads/month;e.g. 75% of Urgent Requests responded in less than 2 days in many communities



Sources: Andreas Manuth, Information & Communication Networks, Dirk Ramhorst, Siemens Business Services, Bernhard Schoen, Information & Communication Mobile, Bodo Winkler, Siemens Med, Dr. Josef Hofer-Alfeis, Corporate Information & Operations, March 03

KM organization in Siemens:

~25 full-/part-time KM drivers on corporate, group and region level

>1000 part-time KM supporters (moderators, facilitators, ..), ~30 KM consultants

CoP KM: ~300 members; CoP Innovation Mngt.: ~100 members

Agenda

• Creating Strategies for the major KM drivers

• Executing KM strategies

• Diagnostics and Measurements on Knowledge and KM

• Integrating KM into a Business Process Framework

• Conclusions and Overview on Key Success Factors



Conclusions and Overview on Key Success Factors



action perspective of knowledge workers

Knowledge drivers and their basic objectives in any businessPerspectives and strategies of the major players in the KM arena

Learn from doing, from colleagues and from the worldCollaborate, improve and innovate

strategic perspective of business owner and management team

enabling perspective of the KM organizers

Collaborate, improve and innovate

Support knowledge sharing and creation by excellent KM systems and processesdevelop and rolloutoperate and maintain

personal development strategyKM instruments strategy

KM infrastructure strategy / roadmap



strategic perspective of business owner and management team Improve knowledge work and learning

focused by the business strategy and orchestrated across support functions:coordinate adequate staffing and proficiency buildingdrive effective knowledge multiplication (diffusion)coordinate efficient knowledge documentation (codification) Knowledge Strategy

Co-operating Strategies needed to transform successfully

Management-driven Measure

K states and value

Transformationto

more performance& more innovation

on knowledgef th b i

top-down Knowledge Strategy

middle-bottom-up KM Instruments Strategy

User-/KM Org-driven



for the business

middle-top-down KM Infrastructure Strategy

KM Org - driven

Measure KM state & value



Evaluating knowledge to focus and co-ordinate actionsThe top-down Siemens-CIBIT Knowledge Strategy Process (KSP)

3 Key Performance Indicators2 Knowledge Areas

1 Business Transformation ( focus specific topic like Process, Org., Product …)

tam

4 Knowledge Portfoliocurrent impact

futu

re im

pact

5 Knowledge Cockpit

ficat

ion

Proficienciesand KSt k h ldO

wne

r and

Man

agem

ent T

eart

s



Consolidation & Integration

of actions

This approach has originally been developed by

Knowledge Action Plan,Execution & Solution Strategy enriched by state-of-the-art KM

6 ImprovementAction ProposalsBus. perspective

proficiency diffusion codification diffusioncodi

f Stakeholders

Business Improvement Projects execution and controlling

Bus

ines

s O

K A

rea

Expe

rK

M T

eam

Knowledge Portfolios: Knowledge areas and their impact on key performance indicators (Information & operations unit example)

People/Knowledge/Quality MngtService Mngt

UnderstandingMobileBiz

Top-level Knowledge Portfolio

Detail-level Knowledge PortfolioProject Management

Project MngtIT Core

Competences

Biz Underst. EconomicsProcess &Data Mngt



Business Case:Business/org. transformation in post-merger phaseKey Performance Indicators:•Client success and satisfaction•Process & project performance•Employee satisfactionCurrent impact: in 2002/03Future impact: in 2003/04



The complete Knowledge Cockpit to plan improvementsExample: Knowledge Area “Value Selling”



Knowledge Action Plan: typical action samples

Define – install – operate – create - promote …

• Subject Matter Expert for …• Role and Career for Project Managers• Knowledge Transfer Workshops with internal/external K Stakeholders for …• Competence Network / Community of Practice for …• Regular project / leaving expert debriefings in …• Learning processes from projects with clients in …• Cookbook / Framework / Training for …• Taxonomy … Content structure in …



• Process model and implementation for …• Sustaining Experience Sharing and Proficiency Building in …

How to leverage this value of improvement proposals in the business?



Agenda









Realizing improvements in knowledge work and learningfor the business-critical Knowledge Areas (KA)

People/Knowledge/Quality Mngt

Service MngtUnderstandingMobileBiz

Top-level Knowledge Portfolio role-specificcompetence models

EFA & Competence

Survey

specifictrainings

Project Mngt

IT CoreCompetences


KnowledgeArea

RoadmapKnowledge Area Coach from Management Team

business requirements



Subject Matter Experts /Communities of Practice in the K Area

KA expertise & requirements

KM Projects

inter-disciplinaryKM Team

State-of-the-art KM and KM RoadmapOrchestration across support functions



KM Players & Knowledge flows and examples of KM interventions to improve knowledge state and processes

Teams,employees

Use & creation of knowledge,

Examples of KM interventions

org for KMTrainings

Urgent R

eques

…

Debriefing Reports

Lessons Learned t R

eque

sts

Ans

wer

s

BestPractices

Solutions

Experiences

employeesin the daily business

gcollaboration …

Guidelines

Templates

…

Management Processes

Operational Processes

Support Processes

org for KM& Content

Communication… K Culture

Initiative

Trainings

Urgent Request ProcessKnowl.TransferTools



st

… Urg

ent

Methods

…

Sharing &assessment

of knowledge

KnowledgeMarketplace

Standardization and distribution of knowledge

departments,support functions,

CoC’s

Communities ofPractice

CommunitySupport

Community Workspaces& ShareNet Support

KM Tools and Solutions Examples

CIO-internal Competence Networks /Communities of Practice (CoP)• Guideline for Founder and

ModeratorCommunication ShareNet Workspaces

• TeaTime• Meeting Point• Events• Media

Tools & Solutions forCompetence & Knowledge

Management in CIOKnowledge Transfer Tools

• Consulting offering

Communication

Trainings

for Competence Networks / CoPs• Content Structure template • Urgent Request procedure• Feedback module• News Channel



• Project Debriefing• Leaving Expert Debriefing• Debriefing Moderation offering• Knowledge

Transfer Workshopinternal/external

• top+• Financial Basics• Value Selling• ShareNet

Basics

• Competence Strategy• Sustainable KM

Implementation• CIO ShareNet• CIO Content

Management



Why is an inter-disciplinary KM Team so important?KM systems are holistic socio-technical systems

Most of the effective and enduring KM solutions result from a coordinated collaboration of various management disciplines: Knowledge, HR, Information/IT, Org/Process, Innovation/Intellectual Property, … , g , p y,

Simple example: Leaving Expert / Project Debriefing • Process design and implementation (e.g. Preparation – Transfer of

Knowledge areas / Relationships / Responsibilities / Lessons Learnt –Codification and demand-specific provision/distribution): KM Team

• Integration into HR / Project Management processes: HRM/PM• Integration into collaboration and document management



g gplatform, enabling of virtual team debriefings: IT

• Integration into content structures and processes: Content Mngt.• Integration with knowledge processes of organizational

structures (org. units, teams, Communities of Practice, Centers of Competence): KM Team

Knowledge innovation corridors and magnets from Knowledge Portfolios in the KSP

detail Knowledge Portfoliosf t h l i

P-K-Q MngtService Mngt

UnderstandingMobileBiz

Knowledge Portfolio 2bMature Technologies: Else

-1

0

1

2

3

4

5

6

-1 0 1 2 3 4 5 6Current Impact

Futu

re Im

pact

Knowledge Portfolio 2aMature Technologies: Telecommunication

-1

0

1

2

3

4

5

6


Futu

re Im

pact

Key

BasicNot relevant

Promising

Mat

ure

Tech

nolo

gies

for technologiesof an R&D unit

ProvidingK Portals

IT CoreCompetences




Knowledge Portfolio 2cNew Technologies: NGN Products

-1

0

1

2

3

4

5

6


Futu

re Im

pact

Basic

KeyPromising

Not relevant

Knowledge Portfolio 2dNew Technologies: NGN Services

-1

0

1

2

3

4

5

6


Futu

re Im

pact

BasicNot relevant

Promising

Key

New

Tec

hnol

ogie

s M

top-level Knowledge Portfolioof an Info & Operations unit



Agenda









Measuring Knowledge and KMExamples of applied approaches

• Infrastructure usage monitoring (# of downloads, …)• KMS activity indicators (active memberships, documents processed, …)

KM Maturity Assessment based on the KM Maturity Model KMMM

Value

X • KM Maturity Assessment based on the KM Maturity Model KMMM,cross-organizational KM State Benchmarking

Knowledge KM

State X

Knowledge KM

State

Value X • KM user satisfaction surveys (CoP Assessment, KMS users survey)• Business impact of KM projects (Cost savings, value created, …)

(Siemens Catalogue of proven Cost-Benefit Arguments SCoBA)

• Info/Knowledge Object reuse rate



Knowledge KM

State

Value XX

• Knowledge quality/reuse feedback• Business Impact of Knowledge Area (KSP)• Length of information „genealogy chain“• Level of Proficiency, Diffusion, Codification (KSP)



ROI in KM projects: Examples from the Siemens Catalogue of proven Cost-Benefit Arguments (SCoBA) - Good practice sharing of benefit arguments

• reduced resource and infrastructure requirements by improving processes for codified knowledge assets: ~ Mio’s € savings

• reduced travel and collaboration cost by online collaboration (workshop with 70Cost reduction

• more efficient search for & access to information: > 48h saved per year/user of Information Management System (15.000 users)

• reduced time to make an offer due to faster access to experts, crucial knowledge assets and avoiding redundant work by ShareNet:in average 8,900h time savings per month

• reduced problem solving time by Communities of Practice ensuring permanent availability of experts and high quality documents: half day per week in average

reduced travel and collaboration cost by online collaboration (workshop with 70 people from 15 countries, 76 postings in ShareNet): ~100 thousands of € savings

Time reduction



• new customer contracts won by Siemens regional units due to urgent request in ShareNet: worth ~Mio’s €

• new customer contracts won by globally reusing knowledge objects in ShareNet (competitor info, pricing concepts): worth ~ Mio’s €

• innovation and business improvements due to over 160.000 implemented ideas in FY 01/02 via 3i initiative: = tens of mio’s € value of benefit

availability of experts and high quality documents: half day per week in average

Sales increase/Growth/ Innovation

Agenda











Siemens Reference Process House and positioning of KSP and KM (wip)

Management ProcessesStrategic Planning Business Review Strategic Controlling

KSP, (K Balance Sheet?, K

Controlling?)

?

•Siemens Reference Process House - binding Standard•for overarching Process Management / Standardization

Business Processes

Supply Chain Management (SCM)

ReturnDeliverMakeSourcePlan

Customer Relationship Management (CRM)

CareSellUnderstandPlan

f ( )



Support ProcessesProcess &Information

Mgt.Financial

Mgt.HumanResour-

cesEnviron-

mentQuality

Mgt.Commu-nication

RealEstateMgt.

Procure-ment

Product Lifecycle Management (PLM)

Phase outCommer-cializeRealizeDefineProduct

Portf.-Mgt.Plan

KnowledgeMgt.

?

Support Process Cluster “Knowledge Management”(DRAFT)

Govern KM…From mandate to efficient organization, KM strategy and program.

Develop and rollout KM Systems and Tools

Improve Knowledge (States and Processes)

Manage Relationships

g Pr

oces

ses

for K

M

From KM stakeholder contact and promoting KM solutions to satisfiedKM stakeholders

From knowledge strategy and its action plan to improved proficiencies,knowledge diffusion and codification (static and dynamic aspects)and KM systems requirements



Operate KM Systems and maintain KM Tools

Enabling ProcessesEnabler processes specifically necessary to run the Support Process KM

Ope

ratin

g

From business- & KM systems requirements to ready-to-use KM solution

From customer demand to KM system performance and efficiency, andKM service delivery



Agenda









Using KM to drive performance and innovationConclusions and Lessons Learnt

Evidence via business examplesKey success factors for realization :

Planningg• integrating proficiency, diffusion and codification issues by a comprehensive

knowledge model• focusing and orchestrating business improvement actions by top-down Knowledge

Strategy• co-ordination of KM players and their strategies:

• business owner and management team (Knowledge Area Coaches)• interdisciplinary KM team (HR, IT, Org/Process, ….)• Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)



Implementation

Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)

• implementing KM holistically via Socio-technical Architecture and Process Model• appropriate measurements



A comprehensive Knowledge ModelExample: The knowledge space of a world-class restaurant cooking

plus communities of suppliers,peers and customers

Knowledge: the capability

in cooks …

g p yfor effective action



in cookbooks …in teams and comunities …

Codification

Prof

icie

ncy

3-D knowledge spaceSources for content: Max Boisot, CIBIT, SiemensSource of images: Bocuse à la carte – Kochen mit dem Meister. Falkenverlag, Niedernhausen/Ts. (1985)

Tips – interactive forums – courses with livecamRecepies – online shops, e.g. www.bocuse.com

or more in www.frank-buchholz.de

Knowledge

Knowledge: our definition and basic dimensionsModel of the 3-D Knowledge Space and basic metrics

lowdiffusion

high d.

“Knowledge” =capability for effective action*

• in individuals• in organizations

• in information about it

“Knowledge” =capability for effective action*

• in individuals• in organizations

• in information about it

ncy

diffusion

highworld-class

expert

expert



Codification

Prof

icie

n

Sources:* Peter Senge,CIBIT, M. BoisotSiemens AG

low

beginner

skilled &trained



The holistic KM solution approach: System ArchitectureSuccessful KM solutions are socio-technical systems

Knowledge Strategy and CultureM t

KM ProcessesKnowledge Communities

KMOrgani-zation

Measurements

Knowledge / Content



Knowledge Marketplaces

Integrating KM into business means implementation and integration work in all six dimensions coherently driven by a KM Roadmap

Holistic KM solutions: System Architecture in detailSuccessful KM solutions are socio-technical systems

... are the knowledge creation and sharing processes as well as other KM processes

and their integration into the business processes

... means values, culture, leadership & strategy and

rewards & recognition for a

KM Processes

Knowledge Strategy and Culture

Knowledge Communities

KMOrgani-zation

Knowledge / Content

... are networks of knowledge stakeholders creating and

sharing knowledge related to specific knowledge areas

rewards & recognition for a knowledge-intensive

organization

... are specific Knowledge

Management functions which initiate, promote and support KM-



Knowledge Marketplaces…are the (standard) Knowledge

Sharing Platform including technical platforms, tools, workplaces, services, and

infrastructure as well as office spaces and communication

channels and events;

activities

... means the capability for effective action in people, organizations and codified in descriptions, processes and systems,

which is medium in knowledge repositories and flows. …concerns issues of structure,

quality, validity and value



Using KM to drive performance and innovationConclusions and Lessons Learnt

Evidence via business examplesKey success factors for realization :

Planningg• integrating proficiency, diffusion and codification issues by a comprehensive

knowledge model• focusing and orchestrating business improvement actions by top-down Knowledge

Strategy• co-ordination of KM players and their strategies:

• business owner and management team (Knowledge Area Coaches)• interdisciplinary KM team (HR, IT, Org/Process, ….)• Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)



Implementation

Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)

• implementing KM holistically via Socio-technical Architecture and Process Model• appropriate measurements• integrating Knowledge Strategy Process (KSP) and KM processes in

Business Process Framework

Contact

Dr. Josef Hofer-AlfeisSenior Consultant, Knowledge Management

Strategy, Diagnostics and Measurements,KM Competence Development,Facilitator of theCommunity of Practice KM

Siemens AG, CIO PM MSKCorporate Information and OperationsProcess ManagementManagement & Support Processes and Knowledge ManagementSüdallee 1 (München-Airport)



D-85386 Munich, GermanyFon +49-89-636-36408 // Fax +49-89-636-718838 // Mobile +49-171-7659829mailto:[email protected]

KM & KSP Consulting Services:Siemens Business Services: http://www.siemens.com/index.jsp?sdc_p=t4c61s3u2o1052006d1065184pn1052006fl0m&sdc_sid=24119695695&

Mailto:[email protected] Technology: http://intranet.ct.siemens.de/en/tech/abteilungen/ic/ic1/index.html Mailto:[email protected]

www.siemens.de



Further Readings on Siemens KM

Current Siemens KM books:

• T Davenport G Probst (eds ): Siemens KM Case Book 2nd editionT. Davenport, G. Probst (eds.): Siemens KM Case Book, 2 edition, Wiley/Publicis, 2002

Books with Siemens Contributions:• M. Bellmann, et al (Hrsg.): Praxishandbuch Wissensmanagement,

Symposion, 2002• C. W. Holsapple (eds.): Handbook on KM, Springer, 2002• Ulrich Reimer, et al (eds.): WM2003: Professionelles



Ulrich Reimer, et al (eds.): WM2003: Professionelles Wissensmanagement – Erfahrungen und Visionen, GI-Edition, Lecture Notes in Informatics, 2003

• APQC International Consortium Benchmarks on KM: Siemens selected as Best Practice Partner

• 1999/2000 Successfully Implementing KM

External Recognition

• 2000/2001 Communities of Practice• 2001/2002 Retaining valuable Knowledge• 2002/2003 Using KM to drive Innovation• 2003/2004 Transfer of Best Practices (invited)

• Most Admired Knowledge Enterprise study (MAKE from TELEOS/The KnowNetwork):

• international 1998 - 2003: 6th time only German company among the 20 best world wide and ranked number 7 in 2003 out of 101 companies



• In Europe: 2001/2 ranked number 5 out of 91 companies• Invited speeches at numerous international conferences• Knowledge Management Case Book, 3.500 copies sold in 12 months

ISBN Order Number: 3-89578-159-2 at PMCD / Wileyand many other publications

planning exec

Education