Enterprise Information & Knowledge Management Taiwan Semiconductor Manufacturing Company

1. TSMC’s Practices on Knowledge Management Enterprise Information & Knowledge Management Taiwan Semiconductor Manufacturing Company

2. Agenda TSMC Knowledge Management Michael Huang 黃建中 Definition of Knowledge Asset & Knowledge Management TSMC Knowledge Management Strategy TSMC KM Roadmap Case Studies Enterprise Portal- Operation Jason Huang 黃怡霖 Expert Yellow Page & Expert Forum Cathy Li 李月青 Knowledge Roadmap & EKM Trump Shieh 謝景川 Barriers & Lesson LearnedMichael Huang 黃建中 Q&A

3. Knowledge Management Definition - Leading Companies The process of systematic creation, acquisition, synthesis, sharing and use of information, insights, and experiences. A systematic way of building and exploiting knowledge capital. -- Accenture Knowledge Management is a discipline used to systematically leverage expertise and information to improve organizational efficiency, responsiveness, competency, and innovation. -- IBM/ Lotus Using search engine to retrieve useful knowledge. Create a learning environment at work (learning organization). -- HP Knowledge Management is a business process for managing intellectual assets. It is a discipline that promotes an integrated approach to the creation, capture, organization, access and use of an enterprise’s information assets. -- Gartner Group

4. TSMC KM Definition and Goal Definition Knowledge Management is a Business Process for managing TSMC Knowledge Asset. Through this process, TSMC Knowledge Asset is leveraged systematically to improve organizational efficiency, responsiveness, competency, and Speed of Innovation. Goal Build competitive advantages by enabling theSpeed of Innovationto achieve aKnowledge Based Enterprise

5. Inventory on TSMC Knowledge Asset SOP Workflow Yield enhancement Financial Data Customer Service Intranet Domain Experts Product Information Production Process Personal Expertise Trouble shooting knowledge People Network Customer Relationships Document Design Spec CIM transaction Leverage Limited Resources to Enhance Core Competency

6. TSMC Knowledge Asset vs. KM Strategy TSMC KM focus on our core competency Operation, RD, IP, Sales & Marketing, & IT Most core competency knowledge assets are Explicit in themselves EI&KM develops KM strategic planning based on the distribution of knowledge assets Market research Customer service skill Industry environment analysis Yield enhancement skill Trouble shooting skill Product domain knowledge Production control knowledge Productivity enhancement knowledge ………………... Systematic Approach: Structural System oriented Tech intensive Knowledge Management Approach Customer relationship Supplier network Expertise distribution Personal expertise Line experience Market forecast ………………... Approach: Un-structural Process oriented Culture dominant Personal Knowledge Characteristics Tacit Explicit

7. TSMC KM T Strategy Horizontal- Culture diffusion Knowledge asset integration Vertical- Build a vertical KM role model Smartly copy the role model to other core competency Horizontally Diffuse KM Culture among Organizations T In-depth develop KM Methodology within Core Competency 

8. TSMC KM Roadmap Other Domains Corporate MyTSMC R1 2000.8 MyTSMC R2 2001.3 MyTSMC R4 MyTSMC R3 Tacit Expert Forum 2001.02 Engineer Workplace II (Collaboration) Operation Expert Yellow Pages 2000.10 PATS KM Engineer Workplace I (Decision support system) EKM Incentive 2000.12 Explicit EKM R1 2000.3 EKM R2

9. TSMC Knowledge Management Process- Operation Create Extract Organize Access Leverage Process Knowledge Manager Knowledge user Knowledge creator (Engineers) Knowledge editor Knowledge user People EKM System (Security control, Actively distribution, Quality review) Process DSS MFG DSS Expert Forum Content Editor Expert Yellow Pages EQP DSS Technology MyTSMC Suggestion Program Suggestion Program Patent Program Operation KM Incentive Program Incentive Performance Measurement

10. TSMC Knowledge Management Architecture • Enterprise Portal • Single entry • User identification • Single password •Personalized setting HTTP HTTP HTTP Real-time collaboration Enterprise community KM • Doc management • Analysis • EYP • Report center • Video conference • On-line communication • Video broadcasting • Community DB • Forum • Calendar sharing • Resource sharing BroadVision / Weblogic / MS Media server Intelligent Search / Integrated Security Module Notes Win 2000 Server PeopleSoft Telecom Management Account Management Organization Management • E-Mail • ADS • Organization

11. MES TOM News Financial Data Mart External Source Accounting Knowledge PIDB HR Lotus Notes Intranet Horizontal KM Culture Diffusion through Integration To provide an environment to foster enterprise information/ knowledge integration among organization Structured Data Unstructured Data Collect, Categorize, Personalize, Centralized Deliver Organization A Organization B Organization C Organization X

12. Enterprise Portal – myTSMC.com Conceives as a direct result of the information “overload” induced by the latest technologies Provides important information from inside and outside TSMC in a personalized way Integrates the disparate systems and processes in TSMC Hosts a standard collaboration platform for members of TSMC Facilitates business analysis and problem resolution Work Flow/ Employee Manual Web Sources MS Office Enterprise Portal myTSMC.com Back Office System (SAP, TOM…) Email Data Warehouse Document Management

13. MyTSMC Roadmap Enterprise Portal enhances competitive advantages by increasing speed and productivity through collaborative and personalized workplace to accelerate organization to an eCorporation. R4: Mobilized Info. Delivery and Back Office System integration R3: Employee- Centric Workplace Increasing Business Value R2: Personalized Information Center R1: Building Awareness & Personalization Workplace Integration Content Integration Entry Increasing Development Cost • Adv. Search • People Finder • E-mail Integration • Webconferencing • Corporate Categories • Company Info. • Misc. Content • Calendar • Personalization • Employee Workplace • Enterprise Calendar • Global Collaboration • Back Office Systems Integration • Mobile Accessibility Key Features:

14. Column Editors Content Developer Content Developer Content Developer Content Developer MyTSMC Organization Structure Business Owner Portal Sponsors System Owner Advisory Board Data Owner Performed by other department Portal Management Board Capability Planning System Dev. & Maintenance Business Operations Help Desk Technical Architect EP Core Capability Dev. System Maintenance Affiliated Capability Dev. & Mt. Content Management Usage Monitoring & Promotion Service Consulting Training Editorial Board Chief Editor HR Content Integrator Operation Content Integrator Legal Content Integrator more…

15. The way wemeet……without boundary • Webconferencing to interact with colleagues worldwise at the time and place we need • The way wecare……like a family • Personalized attention on individual needs. Horizontal Diffusion- Enabled by MyTSMC MyTSMC is a workplace to to integrate TSMC intellectual capital and play as a role-based information, knowledge, communication, collaboration and decision-making aids. • The way wecollaborate……productive and efficient • Knowledge management to grow and share experience • A/R tracking system to review the daily progress • The way wecommunicate……anytime and anywhere • Common perspective to speed up the information access and distribution • Different channels to deliver emails based on priority • Mobile alert to notify important events • The way weexecute……speed and agile • Advanced search to quickly locate required information • Executive dashboard to keep informed on key indices • Access to required applications from the personal workplace

16. Vertical In-depth Development- Operational KM Explicit knowledge documentation Explicit knowledge systemization Analysis?? Support System EKM Provide the electronic knowledge database Web conf. e-Mail phone,.. Expert Forum Build the expert-interaction environment across areas and organizations in TSMC Yellow Pages Build the expert-network in TSMC Tacit knowledge explicitization

17. TSMC KM Roadmap Other Domains Corporate MyTSMC R1 2000.8 MyTSMC R2 2001.3 MyTSMC R4 MyTSMC R3 Tacit Expert Forum 2001.02 Engineer Workplace II (Collaboration) Operation Expert Yellow Pages 2000.10 PATS KM Engineer Workplace I (Decision support system) EKM Incentive 2000.12 Explicit EKM R1 2000.3 EKM R2

18. Agenda TSMC Knowledge Management Case Studies Enterprise Portal- Operation Jason Huang 黃怡霖 Expert Yellow Page & Expert Forum Cathy Li 李月青 Knowledge Roadmap & EKM Trump Shieh 謝景川 Barriers & Lesson Learned Q&A

19. Implementation Strategy R&D / Exploration Design & Engineering New Product Development Brand/Product Management Fabrication / Assembly Financial Management Collaborative Groups Integration Model Collaboration Model Supply Chain Management Personal Sourcing / Procurement Customer Service/ Call Centers Level of Interdependence Transaction Model Expert Model Account Planning Retail Operations Marketing / Advertising Telemarketing Individual Actors Systematic Routine Interpretation / Judgment Complexity of Work Explicit Tacit (Data source: Accenture, 2000)

20. Why we need EKM? F1E1 F1E2 PE FA knowledge F5E1 Defect Lib F2E1 F3E1 F4E2 F4E1 The Past ….. knowledge is isolated and is difficult to be re-used knowledge can be effectively shared and re-used for Innovation Current 4:00 PM Monday Fab2 SST’s flash Gate oxide fail in furnace and scrap 144 wafers 4:20 PM Monday Fab2 Find possible solutions of Fab5 4:10 PM Monday Fab2 Search similar cases in EKM system in TSMC 5:30 PM Monday Fab2 Set up experiment plans 08:30 AM Tue Fab2 Present in production meeting and set up prevention actions 11:30 PM Monday Fab2 Check result and make decision

21. What is EKM ? Engineering Knowledge Management is a systematic process and system to leverage engineering expertise and knowledge to improve organizational efficiency, responsiveness, competency and innovation across the Operation area. Major Functions : Create Document for Knowledge Creators Approval Document for Knowledge Managers Query Document for Knowledge Hot Paper Ranking Dept Statistics for Incentive Mechanism Subscribe Interested Papers

22. EKM focuses on ... Create Extract Organize Access Leverage Process Knowledge Manager Knowledge user Knowledge creator (Engineers) Knowledge editor Knowledge user People EKM System (Security control, Actively distribution, Quality review) Process DSS MFG DSS Expert Forum Content Editor Expert Yellow Pages EQP DSS Technology MyTSMC Suggestion Program Suggestion Program Patent Program Operation KM Incentive Program Incentive Performance Measurement

23. Major Features of EKM Create Extract Organize Access Leverage Process Extract Organize Access Focus on Core Competency Deliver right knowledge In right time to right person Standardization • Integrate w/ daily work of knowledge creator • Quality control by knowledge managers • Built-in incentive mechanism • Expertise • Taxonomy • Organization • Knowledge map • Powerful search • Active knowledge delivery • Interaction among knowledge workers • Knowledge asset protection

24. The Methodology on EKM Focus - Extract Extract Create Organize Access Leverage Process • Collect Engineer’s Knowledge from daily job • Reduce the Extra effort of Knowledge Editor • Approval before Published • BillBoard for Champion Author and Department

25. The Methodology on EKM Focus - Organize Organize Create Extract Access Leverage • Clear Knowledge Map is the core successful factor of KM system. • Good knowledge taxonomy will help users access knowledge efficiently • Collaborate with Domain Experts • Approved by Steering Committee

26. The Methodology on EKM Focus - Access Access Create Extract Organize Leverage Process • Multi-Dimension & Full Text Search • Subscribe and Forward • User personal bookmark • Tight Security Control

27. Knowledge EKM Deployment Leadership Leverage Create Measurement Culture Extract Access Organize Technology

28. Operation KM Steering Committee President CIO Business Owner Operation T/B System Owner BOSD EKM Facilitator IE&OE EI&KM core team Task force HR & Legal MFG T/B Diffusion T/B Thin-film T/B Facility T/B Etching T/B Litho T/B PATS T/B Integration T/B Domain KM Leader Domain KM Leader Domain KM Leader Domain KM Leader Domain KM Leader Domain KM Leader Domain KM Leader Domain KM Leader EKM Deployment Task Force Change Management Performance & Incentive System

29. TSMC 2000 KM WorkShop

30. EKM -Current Status 2000 2001

31. EKM -Total Viewed Count 2000 2001

32. Agenda TSMC Knowledge Management Case Studies Knowledge Roadmap & EKM Trump Shieh 謝景川 Expert Yellow Page & Expert Forum Cathy Li 李月青 Enterprise Portal- Operation Jason Huang 黃怡霖 Barriers & Lesson Learned Q&A

33. TSMC KM Roadmap Other Domains Corporate MyTSMC R1 2000.8 MyTSMC R2 2001.3 MyTSMC R4 MyTSMC R3 Tacit Expert Forum 2001.02 Engineer Workplace II (Collaboration) Operation Expert Yellow Pages 2000.10 PATS KM Engineer Workplace I (Decision support system) EKM Incentive 2000.12 Explicit EKM R1 2000.3 EKM R2

34. Supplement I I I I I G Profit Profit Profit Profit Sharing Sharing Sharing Sharing I I Plans Plans Plans Plans Profit Sharing Plans G G G G O G I TSMC Operation Knowledge Implicit Implicit EYP Web Conference Expert Forum Explicit Implicit EKM EYP/Expert Forum EKM Implicit Explicit I：Individual G：Group O：Organization (Data source: Ikujiro Nonaka) Explicit Explicit

35. TSMC Knowledge Management Process- Operation Create Extract Organize Access Leverage Process Knowledge Manager Knowledge user Knowledge creator (Engineers) Knowledge editor Knowledge user People EKM System (Security control, Actively distribution, Quality review) Process DSS MFG DSS Expert Forum Content Editor Expert Yellow Pages EQP DSS Technology MyTSMC Suggestion Program Suggestion Program Patent Program Operation KM Incentive Program Incentive Performance Measurement

36. Why Expert Yellow Page ? Domain expert network EYP Inefficient in locating who owns a certain skill Domain Knowledge Can Be Aligned With Individual Employee

37. What is Expert Yellow Page ? • Linking the Expert Yellow Page to Corporate Strategy T In-depth develop KM Methodology within Core Competency  Expert Yellow Page Vertical Strategy Expert yellow page is a systematic expertise network and competency roadmap to leverage engineering expertise and knowledge, to improve organizational efficiency, responsiveness, competency and innovation across the Operation area.

38. Expert Yellow Page - Use model Domain users Domain knowledge Administrator Users post their questions to the Expert Yellow Page (EYP) EYP Forward mail Domain Expertsor Personal booked experts Experts can also contact the users directly through telephone or e-mail

39. The Methodology on EYP Focus - Organize Organize Extract Create Access Leverage • Expertise taxonomy speed up users access knowledge efficiently • Integrated with organization chart, ex: • Register individual expert yellow page, ex: My expert • Embedded trainee mechanism, ex: • Embedded incentive and promotion mechanism, ex: Quiz game, Daily expert, voting and system statistic index.

40. The Methodology on EYP Focus - Access Access Extract Create Organize Leverage Process • Issuer or domain knowledge manager can extract valuable interactive message. • Powerful keyword & Tree-hierarchy expertise Search, ex: • Trigger one-to-one interaction on Web environment. • Query and access authority control. Add comment

41. Why is Expert Forum ? I I I I I G I I G G G G O G I EKM EYP, 1 to 1 1 to N N to N ???

42. What is Expert Forum ? Expert Yellow Page • Linking the Expert Forum to Corporate Strategy T In-depth develop KM Methodology within Core Competency  Vertical Strategy Expert Forum Expert forum is a virtual community discussion garden to dig engineering expertise and knowledge and breed innovation across the Operation area.

43. Expert Forum - Use Model T/B Rep. T/B Subgroup Leader T/B rep. open a specific forums for one subgroup Subgroup leaders build, supervise, and manage the work-related place Domain persons ask/view/reply the questions and events to the EForum (EF) EF Members Authorized Users Subgroup members post, reply and discuss the questions in this Workspace Forward mail

44. The Methodology on Expert Forum Focus - Create Create Extract Access Leverage Create • Breed knowledge innovation mechanism. • Embedded different weighting mechanism. • Embedded keyword search. • Embedded knowledge organization mechanism. • Embedded incentive mechanism. Ex:Top rating author/article, hottest topic/article and popular topic/article ….. etc.

45. The Methodology on Expert Forum Focus - Access Access Extract Create Leverage Create • Clear virtual community sitemap. Ex: • Push and subscribe mechanism. • My expert forum mechanism. Ex: Disable/enable hottest/latest/my favorite topic, display style …… etc. • Extract and access authority control.

46. Agenda TSMC Knowledge Management Case Studies Knowledge Roadmap & EKM Trump Shieh 謝景川 Expert Yellow Page & Expert Forum Cathy Li 李月青 Enterprise Portal- Operation Jason Huang 黃怡霖 Barriers & Lesson Learned Q&A

47. TSMC KM Roadmap Other Domains Corporate MyTSMC R1 2000.8 MyTSMC R2 2001.3 MyTSMC R4 MyTSMC R3 Tacit Expert Forum 2001.02 Engineer Workplace II (Collaboration) Operation Expert Yellow Pages 2000.10 PATS KM Engineer Workplace I (Decision support system) EKM Incentive 2000.12 Explicit EKM R1 2000.3 EKM R2

48. What is Enterprise Portal • Enterprise Portal is a common gateway to the internal and external information for executives and employees, delivered in a personalized manner, to facilitate improved communication, knowledge sharing and decision-making. • Search: Across all repositories with one query. • Browse: Through logical directory of content. • Personalize: your content and your services, on one page. • Subscribe: specified information at your preference. • Communicate: timely among peers. TSMC Enterprise Portal -- MyTSMC

49. Business Objective of Enterprise Portal To provide an environment to foster enterprise information/ knowledge integration among organization News MES TOM External Source Knowledge Financial Data Mart Accounting Lotus Notes PIDB HR Intranet Structured Data Unstructured Data Collect, Categorize, Personalize, Deliver Organization A Organization B Organization C Organization D Organization X

50. Development of MyTSMC- R1 R1 focuses on building the infrastructure and awareness of Enterprise Portal. It has built a prototype of platform for knowledge/information sharing culture. TSMC & You • Employee Benefits • My Life • Bulletin Board • Public Announcement • Corporate Organization • Operation • Human Resource • Accounting Division • Legal • Corporate Development • Quality&Reliability • General News • Semiconductor & related Industry News • Professional Organizations Employee Tool Kit Group Discussion • Glossary & Library • Request Forms • Software Download • Discussion topics • Expert Center TSMC Enterprise Portal -- MyTSMC R1