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Compaq KM Strategy Presentation from 2000

Created in 2000 to present to the CEO and CIO of Compaq

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Compaq KM Strategy Presentation from 2000

  1. 1. Knowledge Management Strategy
  2. 2. 2 MissionMission  Examine the benefit of a corporate KM strategyExamine the benefit of a corporate KM strategy for Compaqfor Compaq  Evaluate Compaq’s current initiativesEvaluate Compaq’s current initiatives  Propose a strategy and roadmapPropose a strategy and roadmap
  3. 3. 3 AgendaAgenda  What is Knowledge Management  Current state of Knowledge Management in Compaq  Knowledge Management Strategy proposal
  4. 4. 4 It’s All About Delivering KnowledgeIt’s All About Delivering Knowledge for Effective Decision Makingfor Effective Decision Making Data Store Computing & Communication KnowledgeKnowledge && DecisionDecision MakingMaking
  5. 5. 5 What is Knowledge Management?What is Knowledge Management? PeoplePeople  Knowledge managersKnowledge managers  Formal Communities of PracticeFormal Communities of Practice  Training and communicationsTraining and communications  Measurement and reward systemsMeasurement and reward systems  Knowledge sharing cultureKnowledge sharing culture TechnologyTechnology  CollaborationCollaboration  Workflow & project managementWorkflow & project management  RepositoriesRepositories  Content managementContent management  LearningLearning  PortalsPortals  Search engines & locatorsSearch engines & locators  Document managementDocument management  Problem resolution systemsProblem resolution systems ProcessProcess  Forming Communities of PracticeForming Communities of Practice  Collaboration processCollaboration process  Shared standardsShared standards  Common taxonomyCommon taxonomy  Survey, census, requirements analysisSurvey, census, requirements analysis  Metrics and reportingMetrics and reporting  Cross-organizational integrationCross-organizational integration  Feedback loopFeedback loop
  6. 6. 6 Benefits of Best-in-Class KMBenefits of Best-in-Class KM  Eliminate redundant efforts  Avoid making the same mistakes twice  Collaborate across businesses to stimulate innovation  Be perceived as a “smart partner” by customers  Reuse materials, expertise and problem solving experience to benefit partners and customers  Find needed information quickly and easily  Receive personalized information at the right time  Locate and leverage expertise and experience  Learn effectively at the time of need
  7. 7. 7 What are KM Leaders Doing?What are KM Leaders Doing? Organization Target Value Proposition Approach Technology Results Chevron Reduce operating costs Communities of Practice (COPs), facilitate transfer of Best Practices Standardized Microsoft platform, Plumtree portal $2 billion reduction in annual operating costs (1991 vs. 1998) Cap Gemini Ernst & Young Faster revenue growth, lower costs COPs, central KM managers, content management Microsoft platform and Exchange 10-fold increase in revenue with 5-fold increase in employees Increased production from 1500 to 6000 bbl/day for customer Schlumberger Knowledge in the hands of employees and customers Technical COPs, intranet & extranet Web enabled Source: APQC, 2000
  8. 8. 8 What are Competitors Doing?What are Competitors Doing? Results Reduced service request time, increased sales productivity Organization Target Value Proposition Approach Technology Dell Decrease customer response time, lower costs COPs, universal repository Standardized on Exchange Server and Outlook IBM Global Services Revenue growth, industry leadership COPs, knowledge managers, Intellectual Capital Management System Lotus Notes, Raven, Domino 400% increase in service revenue, time savings of $24M in 1997 HP Revenue growth, customer demand Focused on people and process solutions 70+ COPs speed adoption of consulting approaches COPs, knowledge maps Source: APQC, 2000
  9. 9. 9 KM Journey: Best Practice vs. ROIKM Journey: Best Practice vs. ROI KMPhasesofBestPracticeKMPhasesofBestPractice ROIROI NO ACTIVITYNO ACTIVITY EXPLORE and EXPERIMENTEXPLORE and EXPERIMENT LAUNCH PILOTS and KM INITIATIVESLAUNCH PILOTS and KM INITIATIVES EXPANDEXPAND INSTITUTIONALIZEINSTITUTIONALIZE Some Compaq initiatives are higher up the scale, but none are enterprise-wide Globally, CompaqGlobally, Compaq is here…is here… Source: APQC, 2000
  10. 10. 10 AgendaAgenda  What is Knowledge Management  Current state of Knowledge Management in Compaq  Knowledge Management Strategy proposal
  11. 11. 11 Compaq Internal KM AnalysisCompaq Internal KM Analysis  Conducted an internal analysis – Engaged KM experts to assess current state – Conducted KM summits  Collected data – Received 466 responses to KM survey – Conducted KM interviews  Found positive indications – Many excellent initiatives – People, process and technology expertise on board
  12. 12. 12 Barriers to KM SuccessBarriers to KM Success  Too many systems to deal with  Information overload  Not enough time to keep up or make sense  Can’t find needed information or the right person  Can’t always access information  No payoff for sharing knowledge  Don’t know what’s available or how to use tools  Redundant, fragmented efforts
  13. 13. 13 Examples of current problemsExamples of current problems There is no good way to find a subject matter expert. Limited information exchange between engineering, manufacturing, services, suppliers. Sales reps can’t get information they need when they need it.  Sales cycle prolonged  Best solution is not always offered Implications  Ineffective design reuse  Product launch mistakes repeated  Lost opportunities  Lost time  Right resources are not applied to the problem No common processes for information sharing between employees, partners, and customers Too many different systems and information sources No Compaq standard expertise locator or people finder ProblemSituation
  14. 14. Current KM Tools by Category Affinity groups AltaVista forums Notes Conferences COPs eRoom Forums Lotus Notes WebBoard Email Distribution lists File shares Exchange public folders Account lists Collaboration Primavera TeamPlay SCORPIO Bid Solution Crafting Tool THINQ (internal best practices) Visual Process (methodology knowledge-base) Business Excellence Assessment Expeditor PSIA IcomXpress Keyflow Infomall (software development) CPT (Capacity Planning Tool) Workflow & Project Management
  15. 15. Current KM Tools by Category Content ManagementContent Management Inline Readers Choice Web Library WebIR PS Knowledge Network Solutions Center Knowledge Network Organization specific pages Regional specific pages Intranet Infoboards RepositoriesRepositories WWCIW WWCIW (HR) GARR (Global Accounts Revenue Reporting) NCRF (customer validation) TechInfo (product information) TIM (Total Information Manager) TIPS (NonStop Himalaya Inline) Tandem-based Data Warehouse Asia Customer Reference Application (ACRA) Bespoke (documentation repository) Local servers Sniff (StorageWorks website) Horizon OnLine Catalogue Learning Utility Educational CDs Virtual Presenter CBTs and Training LearningLearning
  16. 16. KM Tools by Category Planets MyPIM SE Connection ActiveAnswers Ask Compaq MS Compaq Alliance Enterprise Portfolio Repository Compaq Customer Success Program Global Account Management PortalsPortals Search Engines & LocatorsSearch Engines & Locators Verity Comet – Services Tool Compaq White Pages ASIS (skills inventory) Novient Document ManagementDocument Management Documentum Tandem Document Management Facility Knowledge Navigator File Shares Exchange Public Folders
  17. 17. Current KM Tools by CategoryCurrent KM Tools by Category Other TMS US HR Service Center (Authoria) Local warehouse for reporting via Portal Manual Profitability Tool QA (homegrown application) IS Information Tracking System PIT tracking system Prophecy Status Board Security Warning Quest (Call Tracking) Cornerstone RightNow (Partner email, self help) Central 800 Number Etracking Knowledge Tree Supplier Review Subcontract Supplier Information Integrated Problem Tracking (IPT) Product Service Reporting ServiceWare Motive CSNet IQ2000 Remedy (Help Desk Tool) QTip Brightware Primus Knowledge Navigator IM Offline / Bookshelf Quick Find KCS TIMA Ask Compaq Problem Resolution
  18. 18. 18 Problem SummaryProblem Summary PeoplePeople  No corporate wide CommunitiesNo corporate wide Communities of Practiceof Practice  No effective way to find expertsNo effective way to find experts  Difficult to reward knowledge sharingDifficult to reward knowledge sharing TechnologyTechnology  Explosion of tools but no convergenceExplosion of tools but no convergence  Lack of integration between toolsLack of integration between tools  Lack of integration between informationLack of integration between information sourcessources  Tools not delivering on full productivityTools not delivering on full productivity potentialpotential ProcessProcess  No common process for knowledgeNo common process for knowledge sharingsharing  No common process for collectingNo common process for collecting knowledge requirementsknowledge requirements  No common process for measuring andNo common process for measuring and reporting KM ROIreporting KM ROI
  19. 19. 19 AgendaAgenda  What is Knowledge Management  Current state of Knowledge Management in Compaq  Knowledge Management Strategy proposal
  20. 20. 20 Recommended SolutionRecommended Solution 3. Leverage our existing strengths 4. Build common structure from our best initiatives 5. Create a Compaq Knowledge Management Program 11 22 33
  21. 21. 21 Leverage Existing StrengthsLeverage Existing Strengths KM program processes Intranet management approach Organization Existing Initiative Strength to Leverage Consumer Satisfaction & Quality Toolbox Professional Services Customer Services WWSS Consumer Group Knowledge Network ISSG Knowledge Centered Support Web Library HR Service Center Product Information Tool ActiveAnswers HRO&E SPG Call Center KM Employee self-service process Product launch process Customer access to Compaq knowledge Customer self-service process Integration of external content Collaboration processes and tools 11 22 33
  22. 22. 22 Build Common Structure fromBuild Common Structure from Best InitiativesBest Initiatives ISSG Christina Hanger Customer Services Peter Mercury Professional Services Jeff Lynn Engineering Don Borgal TargetsKM Leaders Common Structures Marketing David Merrill Gary Elliott  Collaboration models  Systems integration standards  Collaboration models  Systems integration standards  Collaboration models  Internal content management  Portal standards  Remote access/synchronization  Collaboration models  Internal content management  Portal standards  Collaboration models  Systems integration standards  Add 2 points to bottom line  Increased customer satisfaction  Shorter time to problem resolution  Improved product and services quality  Increased sales, profits, productivity, customer satisfaction, employee satisfaction  Save $200M per year  Save $millions 11 22 33
  23. 23. 23 Create Compaq KM ProgramCreate Compaq KM Program Deliverables – People  Provide knowledge resource assistance  Facilitate organizational learning and market KM successes – Process  Establish common KM requirements, standards and metrics  Support collaboration – Technology  Support knowledge access  Recommend a common set of tools for each KM category 11 22 33
  24. 24. 24 Cool Stuff from KM ProgramCool Stuff from KM Program People  Establish Communities of Practice for:  Engineering, Manufacturing, Services and Suppliers  Marketing professionals  Professional Services and Customer Services  All KM COP leaders  Develop a KM training module for new employee orientation and other training programs Process  Conduct a survey to collect KM user needs and requirements  Develop, publish and maintain KM standards for:  Collaboration  Portal implementation  Measuring and reporting Technology  Support standard collaboration tools  Support common portal for personalization  Support an expertise locator
  25. 25. 25 How Do We Deliver?How Do We Deliver?  Establish a KM Steering Committee – Cross-Compaq group representing GBUs, Geos and Functions – Forum for surfacing, addressing and solving shared KM issues and needs – Bridge existing “silos” – Leverage the work that is best done once – Facilitate cross-organizational flow of know-how and best practices  Establish a KM Program Office – Coordinate KM Steering Committee – Responsible for KM program deliverables – Requirements  12 FTEs  $5M budget
  26. 26. 26 Immediate Next StepsImmediate Next Steps  Approve KM Program………………..November 13th  Establish KM Program Office……………….Q4 2000  Announce KM Program ……………………..Q1 2001  Convene KM Steering Committee …………Q1 2001
  27. 27. Backup Slides
  28. 28. 29 Compaq Knowledge Management RoadmapCompaq Knowledge Management Roadmap Q3 ‘00 Q4 ‘00 Q1 ‘01 Q2 ‘01 Q3 ‘01 Q4 ‘01 Develop a Compaq Global KM Strategy Jan - Prioritize and Staggered Launch Pilot Initiatives Nov 14th - Formalize and Establish the Compaq KM Program • Staff KM Program Office • Identify resources and launch KM Steering Committee • Establish Program goals, objectives, strategies & methods Jan - KM Communications & Training Initiatives • Create KM Communication/Training Task Force • Establish links with existing training organizations • Launch KM Communication program to educate/socialize GBUs/GEOs/Functions Jan - Information Sources Integration Initiatives • Create Information Sources Integration Task Force • Identify information sources to integrate • Initiate Web Library Information integration Mar - Establish KM Logical & Technical Foundation • Facilitate creation and adoption of common standards, processes, methodologies •Facilitate creation and adoption of standard platform, common portal, common language and consistent user interface
  29. 29. 30 KM Program DeliverablesKM Program Deliverables Common KM Requirements, Standards & Metrics  Survey to determine user needs and requirements  Communicate user needs and requirements to implementers  Conduct usability testing and promote usability to implementers  Document KM processes including measurement and reporting  Develop, publish, and maintain KM standards  Facilitate the development, publishing, and maintenance of an effective taxonomy  Help implementers use taxonomy and standards in practical applications Collaboration Support  Provide standard collaboration processes and tools  Facilitate creating, developing, expanding, and operating COPs  Lead a community of the leaders of all COPs  Recognize and reward those who lead and participate in COPs  Provide a common list of all COPs and discussion forums to allow users to find those of interest Knowledge Access Support  Recommend a common set of tools for each KM category  Define user requirements and standards for portals and personalization  Help implementers develop personalized portal interfaces  Help users to customize and optimize personalized portals  Help develop improved methods for remote access, including content synchronization and wireless access  Help develop rapid prototypes for accessing information, connecting disparate systems, and proving concepts
  30. 30. 31 KM Program Deliverables (continued)KM Program Deliverables (continued) Organizational Learning  Develop and deliver a KM training module to integrate with Compaq new hire orientation to ensure employees know about and can use KM processes and tools  Provide online self-help and self-paced instruction on using KM methods, processes, and tools  Conduct periodic workshops to facilitate sharing of best practices, communication of new ideas, and adopting new ideas  Communicate, promote, and educate on the KM Program both within and outside Compaq Knowledge Resource Assistance  Help users find information, find people, and answer questions  Develop and maintain directories, expertise locators, yellow pages, and contact lists  Provide feedback on user problems to improve existing processes and tools
  31. 31. 32 Case: ChevronCase: Chevron  Target: Reduce operating costs  Approach: Communities of Practice (COPs) and facilitated transfer of best practices  Technology: Standardized the whole company on a common Microsoft platform, with Plumtree portal  Results: – $2 billion reduction in overall operating costs. – Energy costs reduced by about $200 million per year. – 10-15 percent improvement in capital efficiency. – Barrels of oil output per employee increased by over 30 percent. – Employee safety performance increased by more than 50 percent. Source: APQC, 2000
  32. 32. 33 Case: Cap Gemini Ernst & YoungCase: Cap Gemini Ernst & Young  Target: Faster revenue growth, lower cost  Approach: Content management, COPs by practice, industry and geography, central KM managers, – Core team of knowledge managers provides coordination and content management support - 650 people – Spent $10,000 per employees to move to standard platform and create KM processes. Continuing costs: $1,000 per employee.  Technology: Microsoft Platform and Exchange  Results – 10-fold increase in revenue with only a 5-fold increase in headcount Source: APQC, 2000
  33. 33. 34 Case:Case: IBM Global ServicesIBM Global Services  Target: Revenue growth, industry leadership  Approach: COPs, knowledge managers, central repository and content management(ICM AssetWeb)  Technology: Lotus Notes, Raven, Domino  Results: Revenue growth, speed – Service revenue increased nearly 400 percent from 1991 to 1998. – ICM AssetWeb helped IBM reduce proposal preparation time, increase wins and decrease the costs of executing engagements by reducing re-use. – Time savings alone saved $24 million in 1997. – Time producing deliverables reduced by 40 to 60 percent. Source: APQC, 2000
  34. 34. 35 Case:Case: Hewlett Packard ConsultingHewlett Packard Consulting  Target: Rapid reuse of best practices and knowledge since 1996  HPC has built more than 70 Learning Communities around the world.  Knowledge maps have been created for more than 25 percent of the organization’s solutions.  Senior leadership support of the effort has led to appointments of knowledge managers through geography and solution areas.  KM principles have been integrated into HPC’s New Hire Orientation and will soon be a part of the project management training curriculum. Source: APQC, 2000
  35. 35. 36 Case:Case: SchlumbergerSchlumberger  Target: Put knowledge in the hands of employees and customers  Approach: Intranet and extranet, technical communities. Measures teamwork, value creation, and innovation.  Technology: Web enabled  Results: – Cost savings and incremental revenue for customers have been greater than $10 million each to date. – For the Drilling and Measurement business, SLB has saved $1 million in training costs through re-use and sharing. – Going forward, SLB expects to pass on savings of more than $100 million per year to customers. Source: APQC, 2000
  36. 36. 37 How are Results Achieved?How are Results Achieved? TargetTarget Value PropositionValue Proposition  Customer intimacy – Market, sell, service more effectively  Product to market excellence – Accelerate time to market  Operational Excellence – Create savings, process improvements and new capacity ApproachApproach  Self-service  Communities of Practice (COPs)  Facilitated transfer of best practices TechnologyTechnology  Collaboration  Workflow & Project Management  Repositories  Content Management  Learning  Portals  Search Engines & Locators  Document Management  Problem Resolution Systems  Increase revenuesIncrease revenues  Decrease costsDecrease costs  Reduce time toReduce time to marketmarket  Improve customerImprove customer satisfactionsatisfaction  EnhanceEnhance perception inperception in market placemarket place ResultsResults Focus on aFocus on a specificspecific business needbusiness need Focus on aFocus on a specificspecific business needbusiness need Substantive resultsSubstantive results requires goingrequires going beyond Self-beyond Self- service approachservice approach Substantive resultsSubstantive results requires goingrequires going beyond Self-beyond Self- service approachservice approach Single commonSingle common infrastructure;infrastructure; single consistentsingle consistent interfaceinterface Single commonSingle common infrastructure;infrastructure; single consistentsingle consistent interfaceinterface Significant resultsSignificant results realized in targetedrealized in targeted areasareas Significant resultsSignificant results realized in targetedrealized in targeted areasareas
  37. 37. 38 How does Compaq stack up in KM?How does Compaq stack up in KM?  Year 2000 KM Honorees in the High-Tech Industry - America Online - IBM - Cisco Systems - Lucent Technologies - Computer Sciences - Microsoft - Dell - Motorola - HP - Nokia - Intel - Xerox  Compaq has not been mentioned among the top 40 knowledge-based organizations in the three years since the survey’s inception. Source: Most Admired Knowledge Enterprises (MAKE) survey, 2000
  38. 38. 39 KM Spending SurveyKM Spending Survey Organization Oper. Exp. Cap. Ex. FTE (In thousands) (In thousands) EMEA $500 $75 5 NA $310 $250 8 GBS $4,739 $0 50 M&S $900 $1,800 9 BCSG $450 $50 8 CS $3,000 $360 4 ISSG $1,750 $15 15 PS $2,625 $0 19 SPG $16 $2,146 12 WWSS $550 $0 9 TOTALS $14,840 $4,696 139 Organization Oper. Exp. Cap. Ex. FTE (In thousands) (In thousands) EMEA $500 $200 5 NA $1,192 $200 8 GBS $4,889 $1,000 50 M&S $2,000 $2,100 9 BCSG $1,100 $100 8 CS $3,000 $0 4 ISSG $1,800 $50 15 PS $4,460 $150 19 SPG $501 $2,670 12 WWSS $7,250 $3,000 9 TOTALS $26,692 $9,470 139 2000 2001
  39. 39. 40 Comments from SurveyComments from Survey  “I think the biggest difficulty in getting KM to work here is that usefulness is based on people taking the time to provide current and useful information. This is time people don’t have. There will have to be incentives to do so.”  “Stop the drive-by-toolings and get down into the trenches to see what individual folks struggle with everyday when working with our customers.”  “Please don’t let this program become a tool implementation effort. There is much, much more to KM than just having tool support.”  “Establish a KM Organization that would become a pervasive and accepted part of our culture as is HR, Legal, Finance, Facilities, Security, etc.”  “Simplify”  “Consolidate”  “Work together”
  40. 40. 41 What is Knowledge Management?What is Knowledge Management?  Systematic approaches to help information and knowledge flow – to the right people – at the right time – so they can act more efficiently and effectively.  Find, understand, share and use knowledge to create value. Knowledge is information in action
  41. 41. 42 KM Program ModelKM Program Model KM Steering Committee KM Program Office GBU Function GBU Leader GEO GEO Function Executive Sponsors KM Project KM Project
  42. 42. 43 KM Steering CommitteeKM Steering Committee  A forum for surfacing, addressing and solving shared KM issues and needs  Creates, captures and leverages KM best practices and approaches  Supports Communities of Practice and collaboration methods for transfer of high value tacit knowledge  Communicates KM messages and successes (internally and externally)  Advocates and supports common processes for knowledge access,management and use
  43. 43. 44 KM Program Office BudgetKM Program Office Budget  KM Program Office Staff (12 FTEs) - $1.5 M  Consultants/Contractors – $1.5 M  Communication and Training - $500 K  Other operating expenses - $1.5 M