Planning exec

Corporate Information and Operations
Siemens AG File: CIO FF_Template
5/20/2010 Page: 1
Planning and Executing the
Business Case for
Knowledge Management
© Siemens AG 2003 Corporate Information and Operations
Knowledge Management
Demonstrating the Value of KM, 26-27 November 2003, London
Dr. Josef Hofer-Alfeis
Siemens AG, Corporate Information and Operations,
Management & Support Processes and Knowledge Management
This is Siemens
LightingAutomation andInformation and Energy and TransportationHealth Care
Business Areas:
g g
ControlCommunications
gy
Power
p
Siemens represents one of the largest human and knowledge networks in the world:
1Corporate Information and Operations
T. Pittschieler
CIO SPC
© Siemens AG 2003
Using KM drive Perfmnce&Inno HA20030911e del.ppt 12-Nov-03
Siemens represents one of the largest human and knowledge networks in the world:
more than 430.000 employees
across borders into 190 countries and cultures
collaborating with numerous customers and partners
derives 75 percent of total sales from products developed in the last five years

5/20/2010 Page: 2
Effective socio-technical KM systems
Some usage indicators from March 2003
Overview from the top 4 group initiatives and from corporate activities:
Communities of Practice (CoP): >1500, including >250 cross-group or corporate,
>90,000 community members90,000 community members
Knowledge Marketplaces with >75,000 users
Knowledge/Content,
e.g. Proficiencies of >430.000 employees
e.g. in various organizational structures, internal and external, … 190 countries
e.g. codified in >250,000 knowledge objects in the marketplaces
Processes, e.g. per 1000 knowledge objects typically 300 downloads/month;
e.g. 75% of Urgent Requests responded in less than 2 days in many communities
T. Pittschieler
CIO SPC
© Siemens AG 2003
Sources: Andreas Manuth, Information & Communication Networks, Dirk Ramhorst, Siemens Business Services, Bernhard Schoen,
Information & Communication Mobile, Bodo Winkler, Siemens Med, Dr. Josef Hofer-Alfeis, Corporate Information & Operations, March 03
KM organization in Siemens:
~25 full-/part-time KM drivers on corporate, group and region level
>1000 part-time KM supporters (moderators, facilitators, ..), ~30 KM consultants
CoP KM: ~300 members; CoP Innovation Mngt.: ~100 members
Agenda
• Creating Strategies for the major KM drivers
• Executing KM strategies
• Diagnostics and Measurements on Knowledge and KM
• Integrating KM into a Business Process Framework
• Conclusions and Overview on Key Success Factors
T. Pittschieler
CIO SPC
© Siemens AG 2003
Conclusions and Overview on Key Success Factors

5/20/2010 Page: 3
action perspective of knowledge workers
Knowledge drivers and their basic objectives in any business
Perspectives and strategies of the major players in the KM arena
Learn from doing, from colleagues and from the world
Collaborate, improve and innovate
strategic perspective of business owner and management team
enabling perspective of the KM organizers
Collaborate, improve and innovate
Support knowledge sharing and creation by excellent KM systems and processes
develop and rollout
operate and maintain
personal development strategy
KM instruments strategy
KM infrastructure strategy / roadmap
T. Pittschieler
CIO SPC
© Siemens AG 2003
strategic perspective of business owner and management team
Improve knowledge work and learning
focused by the business strategy and orchestrated across support functions:
coordinate adequate staffing and proficiency building
drive effective knowledge multiplication (diffusion)
coordinate efficient knowledge documentation (codification) Knowledge Strategy
Co-operating Strategies needed to transform successfully
Management-driven
Measure
K states and value
Transformation
to
more performance
& more innovation
on knowledge
f th b i
top-down Knowledge Strategy
middle-bottom-up KM Instruments Strategy
User-/KM Org-driven
T. Pittschieler
CIO SPC
© Siemens AG 2003
for the business
middle-top-down KM Infrastructure Strategy
KM Org - driven
Measure
KM state & value

5/20/2010 Page: 4
Evaluating knowledge to focus and co-ordinate actions
The top-down Siemens-CIBIT Knowledge Strategy Process (KSP)
3 Key Performance Indicators2 Knowledge Areas
1 Business Transformation ( focus specific topic like Process, Org., Product …)
t
am
4 Knowledge Portfolio
current impact
futureimpact
5 Knowledge
Cockpit
fication
Proficiencies
and K
St k h ld
OwnerandManagementTea
rts
T. Pittschieler
CIO SPC
© Siemens AG 2003
Consolidation
& Integration
of actions
This approach has originally
been developed by
Knowledge Action Plan,
Execution & Solution Strategy
enriched by state-of-the-art KM
6 Improvement
Action Proposals
Bus. perspective
proficiency diffusion codification diffusion
codif
Stakeholders
Business Improvement Projects execution and controlling
BusinessO
KAreaExper
KMTeam
Knowledge Portfolios: Knowledge areas and their impact on
key performance indicators (Information & operations unit example)
People/Knowledge/Quality Mngt
Service Mngt
Understanding
Mobile
Biz
Top-level Knowledge Portfolio
Detail-level Knowledge Portfolio
Project Management
Project Mngt
IT Core
Competences
Biz Underst. EconomicsProcess &
Data Mngt
T. Pittschieler
CIO SPC
© Siemens AG 2003
Business Case:
Business/org. transformation in
post-merger phase
Key Performance Indicators:
•Client success and satisfaction
•Process & project performance
•Employee satisfaction
Current impact: in 2002/03
Future impact: in 2003/04

5/20/2010 Page: 5
The complete Knowledge Cockpit to plan improvements
Example: Knowledge Area “Value Selling”
T. Pittschieler
CIO SPC
© Siemens AG 2003
Knowledge Action Plan: typical action samples
Define – install – operate – create - promote …
• Subject Matter Expert for …
• Role and Career for Project Managers
• Knowledge Transfer Workshops with internal/external K Stakeholders for …
• Competence Network / Community of Practice for …
• Regular project / leaving expert debriefings in …
• Learning processes from projects with clients in …
• Cookbook / Framework / Training for …
• Taxonomy … Content structure in …
T. Pittschieler
CIO SPC
© Siemens AG 2003
• Process model and implementation for …
• Sustaining Experience Sharing and Proficiency Building in …
How to leverage this value of improvement proposals in the business?

5/20/2010 Page: 6
Agenda
T. Pittschieler
CIO SPC
© Siemens AG 2003
Realizing improvements in knowledge work and learning
for the business-critical Knowledge Areas (KA)
People/Knowledge/
Quality Mngt
Service Mngt
Understanding
Mobile
Biz
Top-level Knowledge Portfolio role-specific
competence models
EFA &
Competence
Survey
specific
trainings
Project Mngt
IT Core
Competences
Data Mngt
Knowledge
Area
Roadmap
Knowledge Area Coach
from Management Team
business requirements
T. Pittschieler
CIO SPC
© Siemens AG 2003
Subject Matter Experts /
Communities of Practice in the K Area
KA expertise & requirements
KM Projects
inter-disciplinary
KM Team
State-of-the-art KM and KM Roadmap
Orchestration across support functions

5/20/2010 Page: 7
KM Players & Knowledge flows and examples of KM
interventions to improve knowledge state and processes
Teams,
employees
Use & creation
of knowledge,
Examples of KM interventions
org for KMTrainings
UrgentReques
…
Debriefing
Reports
Lessons
Learned
tRequestsAnswers
Best
Practices
Solutions
Experiences
employees
in the daily
business
g
collaboration …
Guidelines
Templates
…
Management Processes
Operational Processes
Support Processes
org for KM
& Content
Communication
… K Culture
Initiative
Trainings
Urgent Request Process
Knowl.
Transfer
Tools
T. Pittschieler
CIO SPC
© Siemens AG 2003
st
…
Urgent
Methods
…
Sharing &
assessment
of
knowledge
Knowledge
Marketplace
Standardization and
distribution of knowledge
departments,
support functions,
CoC’s
Communities of
Practice
Community
Support
Community Workspaces
& ShareNet Support
KM Tools and Solutions Examples
CIO-internal Competence Networks /
Communities of Practice (CoP)
• Guideline for Founder and
ModeratorCommunication
ShareNet Workspaces
• TeaTime
• Meeting Point
• Events
• Media
Tools & Solutions for
Competence & Knowledge
Management in CIO
Knowledge Transfer Tools
• Consulting
offering
Communication
Trainings
for Competence Networks / CoPs
• Content Structure template
• Urgent Request procedure
• Feedback module
• News Channel
T. Pittschieler
CIO SPC
© Siemens AG 2003
• Project Debriefing
• Leaving Expert Debriefing
• Debriefing Moderation offering
• Knowledge
Transfer
Workshop
internal/external
• top+
• Financial Basics
• Value Selling
• ShareNet
Basics
• Competence Strategy
• Sustainable KM
Implementation
• CIO ShareNet
• CIO Content
Management

5/20/2010 Page: 8
Why is an inter-disciplinary KM Team so important?
KM systems are holistic socio-technical systems
Most of the effective and enduring KM solutions result from a coordinated
collaboration of various management disciplines: Knowledge, HR,
Information/IT, Org/Process, Innovation/Intellectual Property, …, g , p y,
Simple example: Leaving Expert / Project Debriefing
• Process design and implementation (e.g. Preparation – Transfer of
Knowledge areas / Relationships / Responsibilities / Lessons Learnt –
Codification and demand-specific provision/distribution): KM Team
• Integration into HR / Project Management processes: HRM/PM
• Integration into collaboration and document management
T. Pittschieler
CIO SPC
© Siemens AG 2003
g g
platform, enabling of virtual team debriefings: IT
• Integration into content structures and processes: Content Mngt.
• Integration with knowledge processes of organizational
structures (org. units, teams, Communities of Practice,
Centers of Competence): KM Team
Knowledge innovation corridors and magnets from
Knowledge Portfolios in the KSP
detail Knowledge Portfolios
f t h l i
P-K-Q Mngt
Service Mngt
Understanding
Mobile
Biz
Knowledge Portfolio 2b
Mature Technologies: Else
-1
0
1
2
3
4
5
6
-1 0 1 2 3 4 5 6
Current Impact
FutureImpact
Knowledge Portfolio 2a
Mature Technologies:
Telecommunication
-1
0
1
2
3
4
5
6
-1 0 1 2 3 4 5 6
Current Impact
FutureImpact
Key
BasicNot relevant
Promising
MatureTechnologies
for technologies
of an R&D unit
Providing
K Portals
IT Core
Competences
Data Mngt
T. Pittschieler
CIO SPC
© Siemens AG 2003
Knowledge Portfolio 2c
New Technologies: NGN Products
-1
0
1
2
3
4
5
6
-1 0 1 2 3 4 5 6
Current Impact
FutureImpact
Basic
KeyPromising
Not relevant
Knowledge Portfolio 2d
New Technologies: NGN Services
-1
0
1
2
3
4
5
6
-1 0 1 2 3 4 5 6
Current Impact
FutureImpact
BasicNot relevant
Promising
Key
NewTechnologiesM
top-level Knowledge Portfolio
of an Info & Operations unit

5/20/2010 Page: 9
Agenda
T. Pittschieler
CIO SPC
© Siemens AG 2003
Measuring Knowledge and KM
Examples of applied approaches
• Infrastructure usage monitoring (# of downloads, …)
• KMS activity indicators (active memberships, documents processed, …)
KM Maturity Assessment based on the KM Maturity Model KMMM
Value
X • KM Maturity Assessment based on the KM Maturity Model KMMM,
cross-organizational KM State Benchmarking
Knowledge KM
State X
Knowledge KM
State
Value X • KM user satisfaction surveys (CoP Assessment, KMS users survey)
• Business impact of KM projects (Cost savings, value created, …)
(Siemens Catalogue of proven Cost-Benefit Arguments SCoBA)
• Info/Knowledge Object reuse rate
T. Pittschieler
CIO SPC
© Siemens AG 2003
Knowledge KM
State
Value X
X
• Knowledge quality/reuse feedback
• Business Impact of Knowledge Area (KSP)
• Length of information „genealogy chain“
• Level of Proficiency, Diffusion, Codification (KSP)

5/20/2010 Page: 10
ROI in KM projects: Examples from the Siemens Catalogue of proven Cost-
Benefit Arguments (SCoBA) - Good practice sharing of benefit arguments
• reduced resource and infrastructure requirements by improving processes for
codified knowledge assets: ~ Mio’s € savings
• reduced travel and collaboration cost by online collaboration (workshop with 70
Cost
reduction
• more efficient search for & access to information: > 48h saved per year/user of
Information Management System (15.000 users)
• reduced time to make an offer due to faster access to experts, crucial knowledge
assets and avoiding redundant work by ShareNet:
in average 8,900h time savings per month
• reduced problem solving time by Communities of Practice ensuring permanent
availability of experts and high quality documents: half day per week in average
reduced travel and collaboration cost by online collaboration (workshop with 70
people from 15 countries, 76 postings in ShareNet): ~100 thousands of € savings
Time
reduction
T. Pittschieler
CIO SPC
© Siemens AG 2003
• new customer contracts won by Siemens regional units due to urgent request
in ShareNet: worth ~Mio’s €
• new customer contracts won by globally reusing knowledge objects in ShareNet
(competitor info, pricing concepts): worth ~ Mio’s €
• innovation and business improvements due to over 160.000 implemented
ideas in FY 01/02 via 3i initiative: = tens of mio’s € value of benefit
availability of experts and high quality documents: half day per week in average
Sales
increase/
Growth/
Innovation
Agenda
T. Pittschieler
CIO SPC
© Siemens AG 2003

5/20/2010 Page: 11
Siemens Reference Process House and positioning of KSP
and KM (wip)
Management Processes
Strategic Planning Business Review Strategic Controlling
KSP,
(K Balance Sheet?, K
Controlling?)
?
•Siemens Reference Process House - binding Standard
•for overarching Process Management / Standardization
Business Processes
Supply Chain Management (SCM)
ReturnDeliverMakeSourcePlan
Customer Relationship Management (CRM)
CareSellUnderstandPlan
f ( )
T. Pittschieler
CIO SPC
© Siemens AG 2003
Support Processes
Process &
Information
Mgt.
Financial
Mgt.
Human
Resour-
ces
Environ-
ment
Quality
Mgt.
Commu-
nication
Real
Estate
Mgt.
Procure-
ment
Product Lifecycle Management (PLM)
Phase out
Commer-
cialize
RealizeDefine
Product
Portf.-Mgt.
Plan
Knowledge
Mgt.
?
Support Process Cluster “Knowledge Management”
(DRAFT)
Govern KM
…From mandate to efficient organization, KM strategy and program.
Develop and rollout KM Systems and Tools
Improve Knowledge (States and Processes)
Manage Relationships
gProcessesforKM
From KM stakeholder contact and promoting KM solutions to satisfied
KM stakeholders
From knowledge strategy and its action plan to improved proficiencies,
knowledge diffusion and codification (static and dynamic aspects)
and KM systems requirements
T. Pittschieler
CIO SPC
© Siemens AG 2003
Operate KM Systems and maintain KM Tools
Enabling Processes
Enabler processes specifically necessary to run the Support Process KM
Operating
From business- & KM systems requirements to ready-to-use KM solution
From customer demand to KM system performance and efficiency, and
KM service delivery

5/20/2010 Page: 12
Agenda
T. Pittschieler
CIO SPC
© Siemens AG 2003
Using KM to drive performance and innovation
Conclusions and Lessons Learnt
Evidence via business examples
Key success factors for realization :
Planningg
• integrating proficiency, diffusion and codification issues by a comprehensive
knowledge model
• focusing and orchestrating business improvement actions by top-down Knowledge
Strategy
• co-ordination of KM players and their strategies:
• business owner and management team (Knowledge Area Coaches)
• interdisciplinary KM team (HR, IT, Org/Process, ….)
• Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)
T. Pittschieler
CIO SPC
© Siemens AG 2003
Implementation
Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)
• implementing KM holistically via Socio-technical Architecture and Process Model
• appropriate measurements

5/20/2010 Page: 13
A comprehensive Knowledge Model
Example: The knowledge space of a world-class restaurant cooking
plus communities of suppliers,
peers and customers
Knowledge: the capability
in cooks …
g p y
for effective action
T. Pittschieler
CIO SPC
© Siemens AG 2003
in cookbooks …
in teams and comunities …
Codification
Proficiency
3-D knowledge space
Sources for content: Max Boisot, CIBIT, Siemens
Source of images: Bocuse à la carte – Kochen mit dem Meister. Falkenverlag, Niedernhausen/Ts. (1985)
Tips – interactive forums – courses with livecam
Recepies – online shops, e.g. www.bocuse.com
or more in www.frank-buchholz.de
Knowledge
Knowledge: our definition and basic dimensions
Model of the 3-D Knowledge Space and basic metrics
low
diffusion
high d.
“Knowledge” =
capability for effective action*
• in individuals
• in organizations
• in information about it
“Knowledge” =
capability for effective action*
• in individuals
• in organizations
• in information about it
ncy
diffusion
high
world-class
expert
expert
T. Pittschieler
CIO SPC
© Siemens AG 2003
Codification
Proficien
Sources:
* Peter Senge,
CIBIT, M. Boisot
Siemens AG
low
beginner
skilled &
trained

5/20/2010 Page: 14
The holistic KM solution approach: System Architecture
Successful KM solutions are socio-technical systems
Knowledge Strategy and Culture
M t
KM Processes
Knowledge
Communities
KM
Organi-
zation
Measurements
Knowledge / Content
T. Pittschieler
CIO SPC
© Siemens AG 2003
Knowledge Marketplaces
Integrating KM into business means implementation and integration
work in all six dimensions coherently driven by a KM Roadmap
Holistic KM solutions: System Architecture in detail
Successful KM solutions are socio-technical systems
... are the knowledge creation and sharing
processes as well as other KM processes
and their integration into the business
processes
... means values, culture,
leadership & strategy and
rewards & recognition for a
KM Processes
Knowledge Strategy and Culture
Knowledge
Communities
KM
Organi-
zation
Knowledge / Content
... are networks of knowledge
stakeholders creating and
sharing knowledge related to
specific knowledge areas
rewards & recognition for a
knowledge-intensive
organization
... are specific
Knowledge
Management
functions which
initiate, promote
and support KM-
T. Pittschieler
CIO SPC
© Siemens AG 2003
Knowledge Marketplaces
…are the (standard) Knowledge
Sharing Platform including
technical platforms, tools,
workplaces, services, and
infrastructure as well as office
spaces and communication
channels and events;
activities
... means the capability for effective action
in people, organizations and codified in
descriptions, processes and systems,
which is medium in knowledge repositories
and flows. …concerns issues of structure,
quality, validity and value

5/20/2010 Page: 15
Using KM to drive performance and innovation
Conclusions and Lessons Learnt
Evidence via business examples
Key success factors for realization :
Planningg
• integrating proficiency, diffusion and codification issues by a comprehensive
knowledge model
• focusing and orchestrating business improvement actions by top-down Knowledge
Strategy
• co-ordination of KM players and their strategies:
• business owner and management team (Knowledge Area Coaches)
• interdisciplinary KM team (HR, IT, Org/Process, ….)
• Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)
T. Pittschieler
CIO SPC
© Siemens AG 2003
Implementation
Knowl. Workers (Employees, Teams, Communities, Centers of Competence, org units)
• implementing KM holistically via Socio-technical Architecture and Process Model
• appropriate measurements
• integrating Knowledge Strategy Process (KSP) and KM processes in
Business Process Framework
Contact
Dr. Josef Hofer-Alfeis
Senior Consultant, Knowledge Management
Strategy, Diagnostics and Measurements,
KM Competence Development,
Facilitator of the
Community of Practice KM
Siemens AG, CIO PM MSK
Process Management
Management & Support Processes and Knowledge Management
Südallee 1 (München-Airport)
T. Pittschieler
CIO SPC
© Siemens AG 2003
D-85386 Munich, Germany
Fon +49-89-636-36408 // Fax +49-89-636-718838 // Mobile +49-171-7659829
mailto:josef.hofer-alfeis@siemens.com
KM & KSP Consulting Services:
Siemens Business Services: http://www.siemens.com/index.jsp?sdc_p=t4c61s3u2o1052006d1065184pn1052006fl0m&sdc_sid=24119695695&
Mailto:Frank.Rexer@siemens.com
Corporate Technology: http://intranet.ct.siemens.de/en/tech/abteilungen/ic/ic1/index.html Mailto:Manfred.Langen@siemens.com
www.siemens.de

5/20/2010 Page: 16
Further Readings on Siemens KM
Current Siemens KM books:
• T Davenport G Probst (eds ): Siemens KM Case Book 2nd editionT. Davenport, G. Probst (eds.): Siemens KM Case Book, 2 edition,
Wiley/Publicis, 2002
Books with Siemens Contributions:
• M. Bellmann, et al (Hrsg.): Praxishandbuch Wissensmanagement,
Symposion, 2002
• C. W. Holsapple (eds.): Handbook on KM, Springer, 2002
• Ulrich Reimer, et al (eds.): WM2003: Professionelles
T. Pittschieler
CIO SPC
© Siemens AG 2003
Ulrich Reimer, et al (eds.): WM2003: Professionelles
Wissensmanagement – Erfahrungen und Visionen, GI-Edition,
Lecture Notes in Informatics, 2003
• APQC International Consortium Benchmarks on KM:
Siemens selected as Best Practice Partner
• 1999/2000 Successfully Implementing KM
External Recognition
• 2000/2001 Communities of Practice
• 2001/2002 Retaining valuable Knowledge
• 2002/2003 Using KM to drive Innovation
• 2003/2004 Transfer of Best Practices (invited)
• Most Admired Knowledge Enterprise study (MAKE from TELEOS/The
KnowNetwork):
• international 1998 - 2003: 6th time only German company among the 20 best
world wide and ranked number 7 in 2003 out of 101 companies
T. Pittschieler
CIO SPC
© Siemens AG 2003
• In Europe: 2001/2 ranked number 5 out of 91 companies
• Invited speeches at numerous international conferences
• Knowledge Management Case Book, 3.500 copies sold in 12 months
ISBN Order Number: 3-89578-159-2 at PMCD / Wiley
and many other publications

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