Knowledge Economy & Knowledge Management

1. Knowledge Economy & Knowledge Management Jae Kyoo, Lee Taegu University Management Department www.jklee.com

2. Definition of a KBE A knowledge-based economy (KBE) is one that encourages its organizations and people to acquire, create, disseminate, and use existing and new knowledge more effectively for greater economic and social development.

3. Big Changes Every 50 years Steam Engine Telephone TV Computer Multimedia 1st Wave 2nd Wave 3rd Wave 4th Wave 5th Wave Agricultural Society Agricultural Society Industrial Society Information Society 1814 1873 1920 1973 2010 - 2025

4. The Shifting Value of Communication Services Rich Media Content Content Personalised Services Commerce Time Value Shifting Machine to Machine Communications Distance Always Available Context Bandwidth Service Ubiquity Community Highly reliable, Zero delay, Infinite throughput, Secure Ubiquitous Access Best-efforts, High-latency, Vulnerable, Narrow-band Legacy Economy Internet Economy Economy Of Light

5. Communication Vision • Collapse Space Allow Communication and interaction that is as rich and efficient as if the participants were in the same place • Total Information All interactions and transactions can be recorded, archived and retrieved. All machines can be remotely monitored and controlled. • Complete Flexibility and Versatility Efficient, intuitive access is provided to these communications and information spaces from any access appliance in any geographic location. • Hyper-Automation Intelligent Personal Agents will be vital to navigating this immense new information space as well as for managing communication

6. Most CEOs Have Similar Internet Priorities • Supply Chain Strategy • Productivity Enhancement • New to World Businesses and Products • Clicks and Mortar Hybrids • New Industry Structures and Models

7. The Cost Savings Potential is Substantial 40% 34% 30 20% Estimated Savings 20 16% 11% 10% 10 5% 0 Electronic components Forest Products Electronic components Computing Steel Healthcare

8. Old Economy Impact The most important effect of the new economy may be to make the old economy more efficient. Economist April 1, 2000 We are going to see a lot of attention returned to cost effectiveness and efficiencies… as companies adapt to ebusiness en masse, these “old economy” concerns will be even more important than before the arrival of the “new economy”. Sean Maloney Senior VP, Intel

9. Knowledge Management • is the process of creating, capturing, sharing and leveraging of an organization’s collective knowledge and expertise • includes knowledge that is both explicit (documented) and tacit(what each employee knows).

10. Knowledge • Strategies and Ideas • How we do • I and we

11. Knowledge Management.. • Not Only - Technique - IT • But Also - Vision & Culture - Leadership

12. Three Key Points • E-Business Has No Boundaries • E-Business Operates at E-Speed • If you do not do it, someone else will

13. Targeting the KM Effort • Must be tied to Business Objective to Have Greatest Impact • Must be Focused Around Groups of People with a Shared Information Need • Must be Launched with Clear Target - Need for early visible success - Then, build on success

14. VISION To create Knowledge Organization A company of Boundaryless People with a thirst for learning and a compulsion to share

15. FundamentalsforKnowledge Organization • Trust, Respect • Openness • Job security / Reward • Mind set changes • Set new standards • On-going Innovation • Leadership

16. Leadership • Managing For Performance - Direct Reports - Coaching for Results - Virtural Teams

17. Knowledge Managementcomponents • Business Processes(where knowledge is generated) • Explicit Skills and Competencies • Performance Meterics and Measurement • Access to - Existing Data Bases(Internal Content) - External Information Bases

18. Training and KM Challenges • Assessment and proof of mastery • Portability of learning • Robustness of technical platform – network • Need to be “hybrid” – preserve the best of live training while encouraging on-line initiatives

19. KM as Basic Skill • New employees are taught that KM is part of their essential skill-set • They learn from their colleagues and are taught to share their knowledge with others • KM principles have expanded to include experiences at all managerial levels • Learning no longer restricted to classroom events

20. Field Activities Communities of Practice Dialog Question Problems, Ideas, Debate, solutions Bulletin Boards Documents Workflow Software Web Data Management System Email Knowledge Hub FAQs Project Archive Help Desk Training Best Practices Expertise Directory News New products New Services

21. Getting Training into the KM Loop • Need to make training part of each employee’s everyday activity • Need to distribute learning more effectively to distant learners • Need to develop best practices in “soft skills”

22. There is a Renewed Focus on Legacy Assetsand ‘Back to Basics’ Business Ideas

23. The New World Economy : The Levers Customer Intimacy Collaboration Accelerated market Growth Product Superiority Supply Chain Integration Cost Efficiency Purchase power Levers Process Efficiency Market Efficiency Aggregated content / community

24. We are proud of our success But “What we have and do”is not enough!

25. “Untapped and Unconnected Knowledge” “Tap it and utilize!”

26. Trends • Constant change requires information and learning opportunities to be delivered faster, more flexibly, more often and to more people. • Companies are under perssure to demonstrate impact and deliver more value with technology-based learning solutions. • Companies are partnering with training and KM vendors, mandating vendor integration of offerings. • OnLine Tools(SAP, Docent, Lotus Learning Space, Saba) - Promoting individual responsibility - Offering menu of learning “options” - Providing tools that let employees solve their own problem - Communicating clear alignment with competencies