ARTHUR ANDERSEN BUSINESS CONSULTING KNOWLEDGE MANAGEMENT COMPETENCY CENTER

ARTHUR ANDERSEN BUSINESS CONSULTING KNOWLEDGE MANAGEMENT COMPETENCY CENTER Knowledge Management 한국전산원 지식경영 1999년 2월 아더앤더슨코리아 정 병 헌 © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Agenda 1. 지식경영이란? 2. 한국전산원의 지식경영 구축 방향 3. 아더앤더슨 소개 ©

Knowledge Management Changing Values - Three Economies Capital al i r st u d In Knowledge Labor Intellect Ag ric ult ur al Land © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Definition of Knowledge knowledge noun 1. The state or fact of knowing. 2. Familiarity, awareness, or understanding gained through experience or study. 3. The sum or range of what has been perceived, discovered, or learned. 4. Learning; erudition: teachers of great knowledge. 5. Specific information about something. 6. Carnal knowledge. [Middle English knowlech : knowen, to know. See KNOW + -leche, n. suff. ] "Knowledge is information that has value" © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Knowledge vs. Information Knowledge Information consists of facts, truths and beliefs, perspectives and concepts, judgments and expectations, methodologies, and know-how. is accumulated and integrated over time to handle specific situations and challenges. consists of facts and data organized to describe a particular situation or condition. We use knowledge to determine what a specific situation means. Knowledge is applied to interpret information about the situation and to decide how to handle it. • • • how to operate a workstation how to talk to customer how to verify that caller is authorized person how to interpret request how to interpret data how to explain to customer © 1999 Arthur Andersen Korea, All Rights Reserved. • • • Account holder password type of account restrictions account balance ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Forms of Knowledge F Know-how : procedures that get things done F Know-who : Key resources to call upon F Know-what : the ability to discern key patterns based on knowledge F Know-why : understanding in the larger context, the vision F Know-when : a sense of rhythm, timing and realism © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Definition of Organizational Knowledge "The collective experience of an organization embodied in both people and artifacts. " Organizational Knowledge : The valuable information that is retained in an organizational system, despite the comings and goings of the individuals who collectively make up the system. (Hiebeler, 1996) © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management System ; What is it? Knowledge Management Defined: 1 the discipline of enabling individuals in an organization to collective create, share and apply knowledge to achieve business objectives. Knowledge Management System Defined: 1 a management system that uses knowledge, enabling individuals or agents to carry out a task Basic Elements of a KMS 1 1 1 Knowledge Strategy Knowledge oriented organization & HRM Knowledge creating & Sharing Process Knowledge Performance Measures IT : User Interface, Search System (inference engine), Knowledge Base (repository), Authoring Interface (expert interface) © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Leveraging Organizational Knowledge Sum total of knowledge that be applied to building customer value by any one individual Organizational Knowledge Personal Knowledge Recent Past © 1999 Arthur Andersen Korea, All Rights Reserved. Near Future ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Types of Knowledge & Knowledge Systems Types of Knowledge C Organizational m Expressed - Codified A Individual m Expressed m Not expressed - Tacit © 1999 Arthur Andersen Korea, All Rights Reserved. C Convergent Knowledge Systems m Data bases m Knowledge bases A Divergent Knowledge Systems m Groupware systems (eg. Lotus Notes) m Informal Networks ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management The Divergent and Convergent Knowledge Process Value Screen Organizing Framework Codified Data Bases Key Knowledge Areas Divergent Process Convergent Process Skill: Analysis Skill: Synthesis © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Convergent vs. Divergent Systems Convergent Divergent Audit Kspace AA Online Real Estate Business Consulting Tax © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management From Tacit to Explicit - Creating Organizational Value Learning by Doing Explicit (Internalization) (Combination) Operational Knowledge Systemic Knowledge Linking Explicit Knowledge Field Building Tacit (Socialization) (Externalization) Sympathized Knowledge Conceptual Knowledge Tacit Dialogue Explicit From : Ikujiro Nonaka & Hirotaka Takeuchi, The Knowledge-Creating Company, 1995 © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management The Knowledge Creation Process Knowledge Systems "Capture" "Experience" Personal Knowledge Organizational Knowledge Innovation "Learn" © 1999 Arthur Andersen Korea, All Rights Reserved. Result: New Products and Services "Express" ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Organizational Knowledge Management Model Leadership "SOFT" Share Apply Measurement Organize Create Organizational Knowledge Adapt "HARD" Identify Culture Collect Technology Enablers Process © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Collaboration: Entering the Discovery Zone Unknown New Solutions to Identified Problems BP G Solutions Known Discovery Zone Known Solutions to Known Problems Known Solutions to Unidentified Problems Unknown Problems/Opportunities © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Major Four Pillars for KMS A functional Knowledge System requires that knowledge be acquired/created, shared, managed, and leveraged for decision making by a balanced combination of: Strategy • • Strategy People Process Information Technology People Technology Process If the balance is wrong in one or more of the elements, the Knowledge System is broken. © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Major Four Pillars - Strategy The knowledge management strategy is the vision & direction of knowledge management system. Like any other strategy (e. g. , marketing strategy), successful performance depends on the degree to which the strategy is focused on corporate strategy, the clarity of the objectives, and the degree to which there is accountability for knowledge sharing. The key components of the knowledge management strategy are: Strategy People Technology Process q Shared Knowledge Management Vision q Communities of Practices q Internal Knowledge Domains • Knowledge of Products : Specifications, Pricing, Profitability • Knowledge in Products : Smart products • Knowledge of Processes : Learning © 1999 Arthur Andersen Korea, All Rights Reserved. q External Knowledge Domains • Environment : Sociological trends, Economic trends, Political • Regulatory • Competitor : Profiles, Analysis of strategy, Benchmarking • Supplier : Location, Capability, Pricing, Benchmarking, • Customer : Demographics, Profitability, Buying patterns ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Major Four Pillars - People & Organization People are obviously key to making a knowledge management process work. Developing the people side requires assuring that key people have the capacity (skills), willingness (motivation), and rationale (focus) to engage in the process of acquiring and sharing what has heretofore been strictly a personal resource. The key components are: Strategy People Technology Process · Leadership: inspiration and focus around knowledge management. · Skills - focus on both what to know and how to access knowledge. - Model of competencies required in key positions - Access to training, other forms of skill development © 1999 Arthur Andersen Korea, All Rights Reserved. • Rewards: incentives linked with knowledge sharing and acquisition. — Performance evaluation — Compensation — Promotion/succession planning • Organizational Structure : Structure facilitate between individual knowledge and organizational knowledge. — Center of excellence — Network organization ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Major Four Pillars - Process The knowledge management process is the collection of activities by which knowledge is acquired, stored, and utilized. Like any other process (e. g. , financial), successful performance depends on the degree to which the process is focused on user needs, the clarity of the process, and the degree to which there is accountability for performance. The key components of the knowledge management process are: · Process performance measurement: the means of assessing the growth and utilization of intellectual capital. · Financial resource allocation: funding processes based on acquisition and utilization of knowledge. · Process ownership. · Revenue enhancement: the strategy for selling knowledge. © 1999 Arthur Andersen Korea, All Rights Reserved. Strategy People Technology Process • Formalized processes to. . . — Search out best practices and lessons learned — Identify and close knowledge gaps — Transfer best practices and lessons learned — Gather intelligence — Share information with customers — Form alliances — Acquire tacit knowledge. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Major Four Pillars - Information Technology Appropriate use of technology makes the difference between data and knowledge (data that is useful and is organized meaningfully). Technology is chosen and systems are configured based on the knowledge management process, the people who use the process, the culture, and the organization structure. Key elements of technology are: Strategy People Technology Process · Database: high quantities of information are warehoused and maintained. · Linkages - Customer: technology is used to reach new customers and link existing customers more closely with key business processes. - Employee: technology is used to allow employees to communicate more readily with one another and have access to company information. · Decision support: technology is used to deliver relevant information to guide decision making. © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Why Arthur Andersen? How does Knowledge Management Related To Our Other Services? Technology Services Process Management Knowledge Strategy Change Enablement The role of knowledge in achieving the business objectives Business Objectives The Client’s Strategy Cost Management © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Why Arthur Andersen? We are a best practice company! • 1997 APQC Information Technology in Consortium Study Best Practices Information Technology in KM • 1997 Corporate Leadership Council Knowledge Management Study • 1997 EFQM Knowledge Management Consortium Study • 1996 APQC Knowledge Management Consortium Study Best Practice Company • 1995 Knowledge Imperative Symposium • Numerous Site Visits and Articles - - - Our Experience Sells!!!!! © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Why Arthur Andersen? Use and Show AA’s Tools • Knowledge Management Assessment Tool. TM (KMATTM) • Knowledge. Space. TM and Lotus Notes (AAOL, Client Service Connection, etc. ) • External Knowledge. Space. TM • Best Practices, Competency Center Structure, Organization and Process • Client Credentials, Recognition and Experience © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management AA’s Knowledge Management Services q 지식경영 체계의 진단 지식경영 서비스 사명 (Performing Knowledge Audits and Diagnostics ) • Knowledge Management Assessment Tool ® (KMAT). • 지식경영과 관련된 기업전략, 조직, 프로세스, 정보기술의 진단 To help our clients transform their capability to create, share, apply and value knowledge to improve performance and create competitive advantage. q 지식경영 전략 수립 (Developing a Knowledge Strategy for your organization) • 기업전략 지원을 위한 지식경영 전략 수립 • 지식그룹 (Community of Practices) 파악 및 구축 지식경영 모델수립 q 지식경영 체계 구축 (Creating Knowledge Systems) • 통합 지식경영체계 및 플랫폼 구축 • 프로세스, 조직구조, 정보기술 체계 구축 지식시스템 구축 지식경영 전략수립 q 조직학습의 기반 구축 (Building Organizational Learning Infrastructure) 학습기반 구축 • Community of Practice 구현 • 암묵지와 형식지의 공유 체계 지식베이스 구성 q 지식경영 리서치 (Collaborative Knowledge Management Research) • 지식경영 관련 조사 방법론 제공 • 학습조직 관련 조사 방법론 제공 q 지식경영 모델 구축 능력 배양 (Building Simulations and Modeling Capability) • System Dynamics • 지식공유를 위한 새로운 문화 © 1999 Arthur Andersen Korea, All Rights Reserved. AA Consultants provides …. • • • 지식경영의 전략 및 성과 측정 방안 지식획득, 공유, 강화에 대한 프로세스 구축 지식경영을 지원하는 조직구조 및 인적자원관리체계 지식의 분류체계 및 지식베이스 분류기준 수립 지식공유를 위한 정보시스템 구축 ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management AA’s KM Approach Frame 1. Knowledge as a thing to be passed about in packages. 2. Knowledge as something that is developed and leveraged by connecting people. 3. Knowledge as something that is created through conversation and interaction. © 1999 Arthur Andersen Korea, All Rights Reserved. Approach Build databases - what we call convergent systems, containing “validated” knowledge in them. Build communication networks for sharing and discussion. Build communities with the capability to learn and with a common sense of purpose and meaning. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management AA’s Knowledge Management Methodology © 1999 Arthur Andersen Korea, All Rights Reserved.

Knowledge Management Major Four Phases I. Diagnosis & Awareness IV. KM System Implementation • KMAT Diagnostic • OLI Workshop • Analysis of Systems Change KM System Development Phases • Software Pilot Application & Implementation • Human Resource Mgt. • Creation and Transfer of Best Practices • Change Evaluation II. KM Strategy Development • Knowledge Strategy Workshop • Strategy Design and Development III. KM System Design • KM Blue Print • Process Design • Performance Measurement Systems • Software Selection • Systems Design © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management 아더앤더슨 운영조직 아더앤더슨은 전세계를 4개 지역으로 나누고 각 지역 본부하에 국별 사무소 체제로 운영하고 있습니다. 한국은 Asia Pacific 지역본부에 속해 있으며, 각 지역사무소는 산업별 -서비스 라인별로 연계된 3 Way Matrix 형태로 운영됩니다. Arthur Andersen Industry Support Area Operation GBP Group Manufacturing Communication Entertainment EMEIA Consumer Products Financial Markets AMERICAS Real Estate Insurance Commercial Services Healthcare Government Services Knowledge/Technology ATG CC BCDG ASIA PACIFIC ASK Network PEC Energy PSWCC S S S © 1999 Arthur Andersen Korea, All Rights Reserved. GBP: ATG: CC: Global Best Practice Advanced Technology Group Competency Center S S S BCDG: Business Consulting Development Group PEC: Professional Education Center PSWCC : Packaged Software Competency Center ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Key Benefits of Working with Arthur Andersen Business Consulting ·Industry and Technical Expertise ·Skills and Experience of Our Professionals ·Worldwide Resources and Capabilities STRATEGY • Strategic Business & Technology Planning • Revenue Enhancement • Merger Integration • Knowledge Services • Performance Management INTEGRATED SOLUTIONS PEOPLE • Organization Design • Change Enablement TECHNOLOGY • • • © 1999 Arthur Andersen Korea, All Rights Reserved. Enterprise Package Solutions Internet Business Solutions Client/Server Solutions Knowledge Systems Solutions Year 2000 Solution Planning PROCESS • • Business Process Design Activity-Based Management Customer Satisfaction Logistics / Supply Chain Management ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management 아더앤더슨의 고객지원 방안 - Knowledge Capital 저희들이 가장 큰 자랑으로 여기는 Knowledge Capital입니다. 전세계 9만 여명의 컨설턴트들이 참여하여 만든 Arthur Andersen만의 지적자산으로서, 귀사는 저희와의 파트너쉽을 통하여 이를 공유하게 될 것입니다. DATABASE AA On-Line TYPE OF INFORMATION PRIMARY CONTACT Electronic Bulletin Board and Mark T. Stone, Atlanta Discussion Database Global Best Practices Knowledge Base (10. 0) Diagnostics and Best Practices Susan J. Leandri, WHQ Information BC Knowledge Base Engagement Information, Skills Profiles, and Library Resources Mark T. Stone, Atlanta EDGE Engagements, Deliverables, and Global Experience Mark T. Stone, Atlanta Consultant’s Advisor Local Office Library © 1999 Arthur Andersen Korea, All Rights Reserved. Engagement Tools and Techniques; Methodologies Library System for Local BC Practices Marcelo C. Borgheti, Atlanta David B. Boland, Atlanta ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management 아더앤더슨의 고객지원 방안 - Knowledge Capital Each of our project teams comes equipped with the vast array of resources and knowledge capital of Andersen Worldwide. These resources include subject area specialists, knowledge bases and methodologies that enable our people to bring the accumulated expertise of our entire Firm to bear on each client engagement, including: · CLIENT/SERVER · Model Process Model Workflow Analyze Business Area Code Alpha Test Specify Modules Model Data Develop Prototype Prepare for Rollout Beta Release Unit Test Refine Documentation Train Beta Test Refine Beta © 1999 Arthur Andersen Korea, All Rights Reserved. Release Convert Support Advanced Technology Group - Housed at our Technology Innovation Center in Atlanta, the Advanced Technology Group (ATG) is a unique collection of technical experts that maintains deep product expertise in all of the leading client/server environments. Their technical knowledge base is further supplemented by working partnerships that Andersen has forged with most of the leading technology vendors, including Oracle, Sybase, Borland, Hewlett-Packard, Novell and Lotus. Knowledge. Space. TM - We have synthesized our methodologies for process improvement, systems development and project management, as well as our accumulated engagement experience base and research into an intranet environment that we call Knowledge. Space. This tool provides a consistent, structured framework for client projects that reflects experience accumulated from thousands of engagements. The benefit to our clients is superior product quality delivered in shorter time frames. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Our Expertise in Telecommunication Industry - Global Communications & Entertainment Group n. More than 2, 200 dedicated professionals in 54 countries n. Fastest-growing of all Arthur Andersen industry programs n. Serves converging companies facing change: • Local and Long Distance Carriers • CLECs • Wireless (cellular, PCS, paging) • Cable Operators • Media Companies • Internet/Data Networks n. Aggressively growing in all key regions of the world: • North America • Latin America • Western Europe • Asia -Pacific n. Recognized thought leaders in the industry: • Knowledge. Space • Seminars and events • Industry white papers, research, • Frequently quoted in • Net Results • key media outlets © 1999 Arthur Andersen Korea, All Rights Reserved. ARTHUR ANDERSEN BUNISESS CONSULTING

Knowledge Management Our Expertise in Telecommunication Industry - Global Communications & Entertainment Group Emerson Survey Results In July 1998, Emerson Research Company released the results of a survey to determine the satisfaction of U. S. multinational companies with their professional service providers. According to Emerson, "AA. . . dominated the study. " The report also noted that "AA was … the first firm to achieve a 5 -star rating in overall satisfaction since the inception of our research in 1993. " Following is a summary of the overall ranking of the firms in the 1998 survey. Firm Arthur Andersen Ernst & Young KPMG Deloitte & Touche Pricewaterhouse. Coopers Rank 1 (5 Star) 2 2 4 4 With more than 83% of the respondents giving us ratings in the 8 -10 range on a 10 -point scale, our clients indicated overwhelmingly that they are "very satisfied" with Arthur Andersen. This is especially significant in light of Emerson's conclusion that Arthur Andersen is subject to the "highest client expectations. " Arthur Andersen was also the sole leader or tied for first in each of the nine client satisfaction categories of the survey: Functional service categories: Worldwide Accounting and Auditing Worldwide Tax Worldwide Information Technology Worldwide Other Consulting Services AA Rank 1 1 © 1999 Arthur Andersen Korea, All Rights Reserved. Service attributes: Knowledge of client's business worldwide 1 Coordination of service worldwide Responsiveness of global network Proactive contribution of global network Understanding worldwide needs and expectations AA Rank 1 1 ARTHUR ANDERSEN BUNISESS CONSULTING