ENLIGHTENED KNOWLEDGE MANAGEMENT

The biggest challenge is to understand what is meant by "knowledge management." To some, knowledge management is about the creation of expert systems. There is validity to that, but in our organization knowledge management is structured in three layers. First is the infrastructure to support knowledge management initiatives. Second are the tools to access and consolidate information, and third is information delivery. We look at knowledge management as "just-in-time" information. A few years ago, we called ourselves data processing departments. What we really wanted was to give people information, so we became information systems departments. Over the past few years, thereıs been an influx of information from sources outside the corporation, such as the Internet and news feeds. People are drowning in information. We have to find a way to help the business user sift through the wealth of information to get to the critical information. The future challenge is how can we filter information to help business users get what they need. One way is knowing enough about an individualıs job or function, to make sure all the specific information to accomplish a particular task is on the desktop. An alternative is to give the individual tools to ask for information relevant to a particular activity. We have to look at tools to manage information in ways that weıve never had to do before. To me, that is the essence of knowledge management.

MARK TUCKER, FLMI/M, ACS
Senior Consultant

The Delphi Group (Boston)

Unenlightened IT departments tend to define the knowledge management "problem" in the context of what they already know how to do, which is to build databases. This is an inadequate response, because knowledge management is not just an esoteric form of information management. In fact, the success of an organizationıs knowledge management strategy will have little to do with technology, especially in the early stages. This is not to say there isnıt a role for IT in the knowledge management initiative. Once the company understands what it means to be knowledge-driven and the challenges it faces in getting there, IT can play a crucial role in providing access to corporate knowledge and facilitating its capture. Indeed, there are signs this IT shop has already created a good information infrastructure upon which to layer the companyıs ultimate knowledge management technology solutions. In all likelihood, some of the technology exists within the company already, but needs to be applied in different ways. Beyond that, there are many good knowledge management products that can be used to extract and profile existing knowledge from these systems. But now is not the time to say what they are. This company doesnıt know yet what it needs to do with any of them, and without that knowledge, they risk wasting any investments they might make.

RON ARENSON
VP, General Manager, Imaging and Workflow

Eastman Software (Billerica, MA)

A focused knowledge management (KM) strategy can and should serve as a source of competitive differentiation for this company. A good place to start is by re-reading the companyıs annual report and marketing literature. How does the company attempt to set itself apart from its competitors? High service levels? Low-priced offerings? Niche marketing? A well-planned KM strategy can make these strategic goals a reality. Information, in both structured and unstructured forms, is the raw material of the insurance industry. This company is off to a good start with the structured component since it is available in existing databases. Departmental brainstorming sessions that begin with the question "What would we like to know about our customers?" provide a good starting point for "mining" operations that can turn information into knowledge. For most companies, dealing with the unstructured component of information is a more daunting challenge. Having the executive team meet one morning in the mailroom with the goal of following documents through the various in-house organizational processes can be an enlightening experience. If you are still dependent upon the movement of paper from one step to the next, there is room for dramatic improvement. Can you afford to change? Often times the more relevant question is "Can you afford not to change?" The day-to-day costs associated with inefficient business processes can be immense. Spend some time speaking with your employees on the front line. Ask them what gets in the way of increased efficiency, and donıt be surprised when they point to unstructured information in the form of paper-based documents. Begin by selecting a mission-critical process. Develop an ROI analysis with quantifiable goals, and go to it. Select an architectural model that is compatible with your existing systems and that can grow with your business. Choose an experienced vendor and/or integrator willing to work closely with you as a strategic partner. Bear in mind that while keeping up with the latest buzzwords is fine, you have been managing knowledge for years. Maybe now is the time to use the latest technology to do a better job of it.

SCOTT J. SMITH
Global Knowledge Mgmt. Consulting and Solutions

IBM (Cambridge, MA)

Our hypothetical CEO needs to understand that knowledge manage-ment is more than the tools technology provides. These technologies provide a foundation for access only. The CEO's question ignores the people aspect of KM. It might be helpful to start with a good definition of KM. IBM Institute defines KM as "a firm's ability to know what it knows, harness and coordinate what it knows, and how quickly it can know something new." To begin a KM effort, the CEO and management team need to answer, "How can we leverage knowledge to support value creation?" The answer results from an examination of how knowledge enhances existing corporate priorities. For example, suppose the company wants to reduce LAE and loss cost through better initial claims handling. ıKnowledge discoveryı techniques could identify the following types of initiatives: