Knowledge Management and competitive advantages - A Case of Agile Product Development Model

1. Knowledge Management and competitive advantages -A Case of Agile Product Development Model Samson Tam Chairman, Group Sense (International) Limited 18 Nov 2004

2. Agenda • Define Knowledge • The Environment challenges • New System Implementation • Learn and Manage Knowledge • Benefits of the Model

3. Definition of Knowledge • Data: • set of discrete, objective facts about events • Information: • data becomes information when added meaning/value • Processes Involved: contextualization, categorization, calculation, correction & condensation

4. Definition of Knowledge • Knowledge: • A fluid mix of framed experience, values, contextual information, and expert insight that provides a framework for evaluating and incorporating new experiences & information • Process involved: comparison, consequences, connections, conversion • Components of knowledge: experience, ground truth, complexity, judgment, value & beliefs, rule of thumb

5. Agile Product Development Model

6. External Environment • Increasingly competitive environment • Product development lifecycles are becoming shorter • More built-in product features and functions • Pressure to reduce the development lead-time • Customer-focus with constantly changing requirements Enterprises need to constantly modify, upgrade products and redesign R & D processes

7. Internal Environment • Different customer types such as OEM, ODM and OBM, etc. • Many projects at the same time, starting concurrently • The business processes need to be very dynamic and non-repetitive • Responsiveness is important for matching individual customer’s need and provides company flexibility to external environment changes.

8. Need of agility in Product development “ Agility is the organization-wide generation of market intelligence, pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it”

9. Why new system is needed? • Black box of existing system • Delay launching time • No systematic approach on responding to change • No systematic approach on matching customer’s needs

10. Use of APDM The APDM is developed to manage product information in an efficient way. This system is able to help GSL understand and identify the impact of the changes in term of delivery time and affected cost.

11. Analyzing market need Forming product strategy 1st layer Making accurate specification (QFD cycle) 2nd layer Maximize profit & satisfy customer (MC cycle) 3rd layer Affect things after change request (Activity database) 4th layer

12. Project Review & Learning Meeting • Improve product development cycle by capturing those past experiences which are useful in problem solving and decision making • Inspire people to create new ideas & design new methods or products

13. Structure of Meeting • Knowledge database • Integrated development process • Organizational structure

14. An overview of Integrated Production and Knowledge Development System

15. Knowledge Database Knowledge activities management schema

16. Benefits of Agile Product Development Model • Leading with Quality/Reengineering/Best Practices • Leading with Organizational Learning • Leading with Decision Making

17. Leading with Quality/Reengineering/Best Practices • Sharing of best practices within the entire firm • Contact workers, get hold of their expertise & document the knowledge

18. Leading with Organizational Learning • Think about the organization as a “system” • Build & facilitate communities of learning & practice – promote knowledge sharing • Focus on issue of personal development & “mastery” of skills • Create less hierarchical, more “self-organizing” structures – encourage initiative • Plan with the use of scenarios

19. Leading with Decision Making • Make better the decisions and actions on the basis of knowledge • Monitor & track “who knows what when” to determine how knowledge is reflected in specific decisions • The value of knowledge equals the cost of stupidity

20. Q&A Session

21. Thank You!