Emerging collaborative model

Emerging Collaborative Model

People Process
Virtual Return on Collaboration
networks IntelligenceTM centric

Information Technology
Structured, unstructured, network Web 2.0, BI + KM + SN,
distribution navigator

Companies have spent the last three decades remolding operations,
taking cost out of the business. Today its about innovation and
networked collaboration.

Automation Integration Networking
Technology
drivers Internet 1.0/2.0 Internet 3.0
Mainframe DP Minis & PCs ERP
e-commerce Social Networks

1980 1990 1995 2000 2011
Business Function stovepipes Cross-functional Inter-enterprise Teams and
drivers processes processes networks

Key attributes  Efficiencies created by  Integrated and shared data  Companies extend  Work is performed cross-
automating core business enabled re-engineering beyond their 4 walls functionally and cross-
clerical and transaction to grow revenue, organizational
 Re-organized work around
functions reduce costs
end-to-end transactional  Basic organizing
increase customer
 Basic organizing principle processes that crossed principles based on
satisfaction
is hierarchical, stovepiped functional boundaries teams; virtual, permanent
business departments and  New internet or transient
 Focus on transaction
functions marketplace
efficiency and shared  Informal and formal
 Focus on transaction information across  Focus on end-to-end communication and
efficiency functions processes and collaboration among
connecting with individuals, teams and
customers, suppliers communities
and vendors

Work takeout, cost reduction, and end-to-end Reinvents how companies innovate, build
process transformation relationships, market and compete

1

Groups, networks and teams are dominant inside enterprises
today – yet few companies have created a unified technology and
business strategy to capitalize on the way people collaborate
Preference in Group Size Collaboration

9%prefer 42%
working in groups Frequency of
of two 40% the
Collaboration
18%
54%prefer
working in groups
of three 46%

30% Motivation for
27%prefer the
working in groups 19% Collaboration
of four or more

90% 4%
10%prefer of U.S.
corporations
82%
working alone support
“group of white-collar workers
work” partner with co-workers
Business Week April 28, 2008 indata

2

Leading companies are adapting collaboration strategies to
improve performance

Application Company Overview
Using state-of-the-art collaboration technologies to transform a
traditional collection of suppliers into a seamless global collaborative
Manufacturing to product the 787 Dreamliner. Real-time collaboration system
networked 100 suppliers in six countries.

Leverages InnoCentive to tap into a global network of scientists to
R&D discover and develop new products and services faster. By 2010 P&G
will obtain 50% of its innovation from outside its company’s walls.

Employee InnovationJam brought together over 100K employees from 160
countries in a series of moderated online discussions. Combined
collaboration insights surfaced breakthrough innovations.

With its Mindstorms product line, Lego offers a free, downloadable
Product software development kit to make the product’s most passionate
development devotees part of the design team. Customers post descriptions of
their Mindstorms creations along with the software code to share to
make the product more exciting.

Training and Uses 3-D immersive environments to conduct business process
simulation rehearsals, the management of events not easily practiced in real-
life., e.g. crisis management training.

Copyright © 2008 The AKA Group, LLC. All rights reserved.
3

Companies must think differently to find NEW ways to generate
ROI in this new world - the ingredients are still the same, but the
models and tools are different

Return on Investment Return on IntelligenceTM

People Process People Process
Virtual Collaboration
ROI networks ROI centric

Information Technology Information Technology
Structured, unstructured, Web 2.0, BI + KM +
network distribution SN, navigator

ROI = Hard benefits/cost ROIintell= Hard + soft benefits/cost

Companies used return on investment to justify systems and process reengineering. It’s time
to leverage Return on IntelligenceTM - expertise and knowledge of employees/customers

4

Enterprise business drivers remain the same, but companies
need to leverage them in a new way to accelerate growth and
innovation
Old New Opportunity
 Hierarchy of positions  Self-organized internal and  Systems support finding talent and
People/Users external networks
 Improved efficiency  Team-based, mobile, skills, information sharing, and
of transactional geographically dispersed collaboration internally and externally
workers networks, and communities across teams and networks of people
 Enhance effectiveness of
“knowledge workers”

Process  End-to-end  Collaborative business  Focus on improving innovation,
transactional processes product development, sales, decision
processes support and analytical activities across
non-transactional roles

Information  Siloed operational  Individualized and role-based  Integration of structured and non-
data delivery of data and structured information, data and
unstructured information to content that can be distributed and
networks of people shared among virtual teams internally
and externally

Technology  ERP  Global IT platform  Leverage of /Web 3.0 and social
 Internet  Social computing, Web3D networking paradigm to create new
 Custom applications and collaboration (mashups, ways to deliver shared functions and
rss feeds, iphone, knowledge to virtual teams
networking sites)

5

Traditional process improvement methods largely ignore
collaborative business activities within, across and outside the
boundary of business processes and functional departments

Core Business Value Processes
 Inter-process communication drivers
Finance enhance performance improvement
 Make decisions, share
information and expertise
 Analyze financial and operating
Development

Marketing

Customer
Logistics
performance
Product

Sales &

Service
MFG
R&D

 Conduct research, innovate and
develop new products
 Seek consensus, evaluate
information, brainstorm and
resolve issues

Human Resources
 Focus: Repeatability of knowledge
worker thought process vs.
repeatability of action
Information Technology  Identify, capture and improve
collaboration points

Inter-process collaboration drivers

6

Collaboration among teams of people across the enterprise are
iterative and networked; they overlay the traditional functional
view of the enterprise

End-to-end transaction
processes Iterative and networked collaborative processes

Sales & Service

R&D Customer Financial
Finance Product
Product Channels Decision
Management
Development Mgmt Support

Operations
Team
Management
Collaboration Technology
Human Resources & Operating
and Social Management
Support
Networking
Procurement

7

Cross-functional collaboration exists everywhere, opportunities to
leverage collaborative technologies apply across the enterprise
Collaboration and virtualization of information is required to support cross-functional processes and virtual teams.

Engineer- Sales & Employee Legal &
R&D & Prod Dev Customer Financial
ing Marketing & HR Patent

 Develop new  Manufacturing  Sales access to  Customers  Ability to  Finance uses  Legal and patent
products, engineering new product and looking for on- maintain skills, information to departments
commercialize must coordinate marketing line information competencies develop revenue work closely
them and sun with production. information to regarding and interests, profiles and with
set old products. sell products to products and allowing others alternatives for development
 Product
customers. company in organizations sales and labs and
 Require engineering
policies such as to locate talent, operations engineering to
collaboration must coordinate  Information
environmental ideas. planning. understand new
between lab, with labs and including
issues. ideas and
marketing and marketing. specifications  Establish  Analysts do
products for
sales. and intended  Customers may communities of monthly
patent
applications want a secure interest. analysis of
applications.
must be readily log-on to track business and
available and orders and financial results.  New patents are
accessible to collaborate on Provide info to the IP that are
sales . forecasts as well management to critical to
as new product support decision enterprise future
ideas. making.
Suppliers &
Manufacturing
Partners

Suppliers and partners receive forecast Manufacturing must coordinate forecast
information and purchase orders based on with sales, prepare a multi-level parts and
production plan. Plan changes recipe plan, trigger requisitions and
communicated immediately to avoid over schedule the manufacturing facilities.
supply or shortages. Changes must be communicated.

8
8

New business drivers are required to measure performance
improvement in this new environment

Traditional New business
Metrics Metrics
business drivers drivers
R&D Spend R&D as % of rev Faster innovation Time to product

Increased worker Txn/hr Ratio of KW
productivity Increased productivity spend to total
Shortened cycle Time to forecast, %
5 day closing Quality of forecast
times deviation
6 SIGMA Error Rates Talent sourcing Utilization by
Error rates
competency
Improved job Knowledge
Production and error Turnover
effectiveness contribution

Reduced IT costs IT $ as % of revenue IT effectiveness % function costs
as % rev

Metrics focus shifts from process/function to
collaborative, role-based metrics
9

The new emerging collaborative model requires new ways of
deploying Information Technology

Knowledge-enabled Workplace

New Collaborative Business Architecture

Financial, Mgt & Operating Decision
HR

RD&D and Product Development
Enterprise Knowledge Navigator
Knowledge & Content Stores

Customer Channels
Sourcing Information

Data Warehouse
Procure-To-Pay

Order-To-Cash
Operations

Support
ERP
Operations

Knowledge
Finance

Sales
Collaborative
Transaction Knowledge work
Functions Transaction Tech Info Info Tech Collaborative
work Processes Processes

Integration of Structured
& Unstructured
Information

10

The ability to harness the talents of all types of workers throughout
the enterprise will become a defining capability for firms

Transactional Knowledge
work work

 Accounting  Science Marketing
 Claims processing  Marketing director
 Financial analysis
 Accounts receivable
 IT development
 Payroll
 Sales
 HR processing  Supply chain
 Purchasing management Knowledge Worker::
 IT architecture someone who uses
 Department knowledge and experience in
management the workplace principally to
generate enterprise value

Knowledge workers are now estimated to outnumber all other workers in North
America by at least a four to one margin

11

So how to get there from here and what are the gaps today?

endstate

today

12

Knowledge work is about repeatability of thought process not
repeatability of action

 Thought process =
repeatable internalized
knowledge work
 Acts as common context for
collaboration
 Information use injected in
context

Unfortunately, the concept “thought process” is a formal concept
completely ignored by traditional methods and approaches

13

Traditional performance improvement techniques treat thought
process as a black box

 What do they want to buy?
 Does our product meet their
needs?
 Do they have the budget?
 Who is the competition?

 What is the long term potential?

14

Thought process can be embodied in a formalism that facilitates
the design of knowledge work-based applications

Integrated Knowledge
Learnings
Customer Base
Input
Customers Products Competitors

15

Thought process metaphor can be used to implement true
“business intelligence” by implementing a directed user interface
Librar
y
Internet Knowledge Base
Data
Sales Policy Warehouse
Knowledge Information  Customers
Management
Templates Companies  Products
Sources
Processes …

 Thought process Qualification
Guidelines Information Sources Opportunities
Qualification
operators guides the Factors

user Identify
Current Conditions
Identify Identify
Information Cost Factors
Define Rule Estimate Cost Filter

 What should I do next?
Objectives Constraints Opty Ranking Info Needs Info Needed Opportunities

 Relevant knowledge, Information NeedsInformation Costs
Proposed Policy Adaptations Template Adaptations

examples, templates, Knowledge Capture Processes

guidelines Change Product
All Panels Change
Top Sales Execs Select Corn Sales Down!
************
Weather?
************ Product
Soybeans Wheat Competition?
************
Customers? Suggested
************
************ Rice Causes

Top Customers Industry News
……………$ 120M ……………………
……………$ 90M
Related …………………….
Data ……………$ 78M ……………………
……………$ 56M …………………….
……………………
Recent Proposals …………………….
…………………… ……………………
…………………… ……………………. Related
…………………… …………………… News
…………………… …………………….

16

A disconnect exists between how information is structured
versus how it is consumed; existing technology architectures do
not adequately address this gap

Traditional New

 Information delivery follows the  People consume information as
hierarchical way companies organize networks and teams; permanent or
work transient

Company
Team
rooms E-Mail

Spreadsheets
Dept A Dept B
Networking site Water cooler
(e.g. Linkin) chats

PowerPoint
Sub Sub Sub
Information
Dept 1 Dept 2 Dept 3 Flow

Information flow interconnected

Lack of a unified strategy results in lost innovation and productivity

17

This emerging business model assumes delivery of information
to role-based to teams and networks of people

Mgmt Team Sales Team Customer Team Human Resources

Strategic Customer Employee
Forecast RFPs
Plans Surveys Feedback

Delivery Service

Enterprise Systems Data

 Scheduled delivery of packets of information to teams
 Teams define membership and security

18

Enterprise information strategies must integrate both internal and
external metrics and intellectual property

Traditional New

 Companies are hungry for  Comparative information must be
comparative information integrated directly into the overall
̶ Competitive benchmarks information delivery architecture to
allow for a rapid and accurate
̶ Best practice process metrics
response
̶ Industry analysis/marketplace trends
̶ Customer/supplier input and feedback
 Average companies are characterized by a
disintegrated delivery of internal and Structured
Internal data and intellectual
data
external metrics and IP warehouse property Integrated
Information
Architecture
External Non-Integrated External data and intellectual
External
benchmark Information property
metrics
data Architecture

19

The integration of structured data and unstructured information
delivers higher levels of work productivity, innovation, and
creativity
Traditional New
“Knowledge Management 2.0”, an
Unfortunately, talk of knowledge integration of data, content, and KM
management has made people’s eyes systems, within the context of the social
glaze over…. networking paradigm:
̶ One place to go for all info
̶ Provides just-in-time info delivery
̶ Facilitates collaborative innovation
̶ Connects subject matter expertise

Dilbert by Scott Adams Structured Unstructured
data content Extended
warehouse stores Information
To be an effective tool, knowledge
architecture
management must be more than an
internal search engine. External Metrics & Info

Today, enterprise content management and knowledge management is
disconnected from BI initiatives. Only 30% of information needs are addressed.
Source: Forrester
20

To enable the collaborative model, structured data and
unstructured content and knowledge must be unified to deliver
just-in-time information seamlessly

Content and Knowledge Stores
Unstructured
Information

Project
Document Intranets/ Content Email Desktop Knowledge
Workflow Team
Mgt Portals Mgt Apps Mgt
Rooms

Decision Support
Structured Data

Data Warehouse

ERP Non-ERP Systems

Traditionally, structured data and unstructured information evolves
separately throughout the enterprise

21

The knowledge domain model should extend across all
dimensions of the enterprise business

We must understand how
information is created and used in
each domain
To accomplish this, we must:
̶ Inventory information in each
domain
̶ Create high – level information
models of each domain
̶ Create an overarching knowledge
taxonomy for the entire enterprise
̶ Document sources and uses
̶ Document gaps

22

Multi-dimensional concept taxonomies – The intellectual glue
Products
Engineering
Operations
Sales & Markets
Taxonomy

Enterprise Information R&D

Competitors Structured Unstructured
data content
warehouse stores

Suppliers
External Metrics & Info

Customer

Locations
Processes
Employee Legal

Taxonomy unifies structured and unstructured data through common concepts

Copyright © 2008 The AKA Group, LLC. All rights reserved. 23

A comprehensive enterprise information management strategy
must be created which recognizes that all information and related
technologies to support day-to-day business must be addressed
together

Transaction Knowledge
Work Focus Work Focus
 Decision support needs  Opportunity identification
 Operational needs Data Knowledge  End state vision
 Current state gaps Management Content  Current state gaps
 Analytical and reporting tools Strategy Strategy  Content and knowledge domain
 Data architecture architecture
 Data governance  Content, KM, search, find
 Data mgmt technologies technologies
 Development, maintenance,  Knowledge content governance
support  Content technology architecture
 Data quality and control  Retrieval and access tools
 Collaboration social strategy
 Collaboration tools
Comprehensive
Information Management Strategy

 Technologies  Info integration
 Structured data  Reporting and info delivery
 Unstructured content  Access and use
 External content  Security and control

24

A collaborative, knowledge-centric technology architecture will
displace a transaction-centric, ERP dominant environment in the
next wave of the collaborative business model

Single enterprise portal
Email,
IM
Flexible Web
Persistent Static pages, Reporting
subject communities,
collaboration mash - ups, and BI apps,
knowledge profiles, wikis,
spaces other etc.
delivery etc Legacy
collaboration and
distributed apps
Portal services

Core business ERP Desktop apps, MS
Web services Content Integration
processing Office
Services

Single logical view of information stores
Federated search
Meta data Data replication

Other
External
ERP DW legacy Enterprise Content Storage
IP
data

Copyright © 2008 The AKA Group, LLC. All rights reserved. 25

A collaborative business model will create the need for an
Enterprise Knowledge Navigator, a new class of enterprise
application that unifies information and “connects people with
people” and “people with information”
Inputs Enterprise Knowledge Navigator Outputs
Information Sources Organizations
Navigation Portal
 Process information  Individuals
Ops metrics
 Financial information  Teams
G/L and
 Customer information  Projects

Portal Interface
planning
 Market information  Business units
Knowledge Base
 Product information CRM  Networks
 Personnel information  Departments
External data Structured Unstructured
 Intellectual property  Groups
Data Data
 External metrics
Products
 Best practices Location Geography

HR Dep’t
Dep’t

Metrics Content

Documents

External data feeds

26

The Enterprise Knowledge Navigator will enhance how people
think, analyze, sell, create, advise, and decide within the context
of their roles in the business

27

1. Strategic context for enterprise content and information
management

Enterprise strategic objectives

Identify and improve knowledge intensive
collaborative processes

28

Improving collaborative knowledge work processes must be
linked to explicit “Return on Intelligence”

Employee
Relationships
Customer
Relationships

Productivity

Speed and Responsiveness Growth and Innovation

29

Knowledge-intensive collaborative work process targeting

High
Strategic Planning
Supplier Management
• Sales
Production Planning
Product Development

Financial Reporting
• Recruiting • Marketing

Systems Management • Customer Service
Business
Impact
Regulatory Compliance
Public Relations

• Accounts Receivable
• Help Desk
• Payroll
• HR Development
• Accounts Payable

Benefits Administration
Low
Low High
Fuzziness

30

2. “Maximum blast radius” adoption strategy for collaborative
applications

 Target ideally collaborative applications that are highly visible with “maximum blast radius”
potential, ie., business benefit extends across multiple business functions and/or touches the
most number of people. Use these initiatives as organizational stakes in the ground to seed
benefits of IM to the business
 Four dimensions of business should be addressed:
̶ Products & Services - Focus on improving innovation, idea to market time, scientific sharing, collaboration across business
centers, storehouse of proprietary IP
̶ Customers - Focus on time to market, competitive positioning, customer satisfaction, sales through the use of collaboration
tools and access to scientific information as appropriate.
̶ People - Focus on connecting all employees. Fosters a “facebook”- like social networking environment to support business
and technical collaboration. Knowledge about people, who they are, what they know readily accessible by all.
̶ The Business - Focus on capturing and collaborating around cross-business best practices, business knowledge,
competencies, capabilities, shared IP. Fosters internal continuous improvement, shared knowledgebase of institutional
experience. Global best practices and improvement ideas that can be replicated and enhanced.

Customer
People
Collaboration

Business Best Product Dev
Practices & Services

31

The AKA Group is a pioneering consulting firm with an innovative
approach to enterprise performance improvement

 Founded in 2006 by Allan Frank – 1st CTO City of Phila, Pres & Founder
Answerthink/Hackett & KPMG CTO & Exec

 Focus on improving Business and IT performance

 Specializes in strategic business-technology enablement across
enterprise-wide collaborative processes:
̶ R&D, Innovation and Product Development
̶ Financial, Management and Operating Decision Support
̶ Customer Relationship Management
̶ IT Management
̶ Team Collaboration, Information Sharing and Social Networking
 Services span IT/Business Strategy & Architecture through Program
Management
̶ Extremely senior principals
̶ Agile networked “open source” model of complementary teams
 Industry specialization includes:
̶ Financial Services
̶ Chemicals, Pharma, Life Sciences, Healthcare
̶ Public Sector

32

Allan R. Frank
Founder & Chairman
610-331-8484
Allan.Frank@akaplex.com

Contact www.akaplex.com
Information

33

Emerging collaborative model

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