Knowledge Process Management—
Copyright 2006 Maxil Technology Solutions Inc
Copyright 2006 Maxil Technology Solutions Inc. All Rights Reserved.www.maxiltechnology.com
Whitepaper
Knowledge Process Managementaddresses specific client needsthrough customized domain expertise
Raj Kosaraju
The US, the UK, and other Western European countries are facing a shortage of highly trained and specialized professionals in various knowledge-intensive high-skill sectors. And, the problem is only expected to worsen.During the last decade, an increasing number of North American and European companies have successfully outsourced select Business Process Operations,allowing them to save on capital and operational expenses. This success in costreduction, while improving quality has encouraged many firms to start off-shoring their high-end knowledge work.However, as companies evolve, not only do their IT strategies change but theirbusiness processes also evolve in the quest for operational excellence. Such companieswill look for vendors who provide an integrated outsourcing model specific to a particular domain to achieve continuous improvements. It is in this area, that Knowledge Process Management (KPM) will play a critical role. KnowledgeProcess Management (KPM) is a structured set of knowledge, related tothe organizational experience in a given domain or set of domains.What Is KPO?Knowledge Process Outsourcing (KPO) is the trend of off shoring high-end knowledge intensive businessprocesses to low wage destinations that require significant domain expertise. The central theme of KPOis to create value for the client by providing business expertise.What Is KPM?Information Week describes Knowledge Management as "the process of capturing a company'scollective expertise wherever it residesin databases, on paper, or in people's headsand distributing it to wherever it can help produce the biggest payoff."Socio-Cultural and Organizational ComponentsTechnology
KPM focuses on and building strengths in specializeddomains such as pharmaceuticals, biotechnology, finance, engineering design, etc.KPM builds on KPO, taking process management astep further. KPM offers the client a completely integrated solution by using specialized domain expertise.What Does KPM Offer Beyond KPODomain ExpertsCompanies are realizing the importanceof having specialized professionals such as accountants,scientists, economists etc., spanning various verticals, toensure continued quality enhancements. Technologies suchas databases, can store all the data imaginable, but theycannot store the logic and analytics needed to make sense of that data.Identification of Knowledge GapsKPM companies utilize domain experts across multiple verticals, which allow themto identify pain areas within their specialized industry, through constant interaction with customers and industry experts.Knowledge RepositoryKPM organizations possess domain experts who build libraries, containing information of present and past projects relating to that area of specialization. This enables clients to access a rich repository of knowledge that would takes years to build.Centralized Place for all Project DataCompanies cannot treat project management as isolated, linear plans. Underestimatingthe importance of collaboration among all resources,a centralized project management information site andintegrated project components can result in staggering budget overruns. KPM offers a single business management solution in one centralized place for all project data.Retention and Reusability of KnowledgeSince all knowledgeis retained in a repository, clients find it easier to work with a KPM partner when looking for a customized solution, or when implementing an internal solution.Continuous ImprovementKPO involves delegating aspecific high-end process or task to a third party. However, with a KPM partner, the domain experts close the loopbetween the client and the vendor by providing recommendationsfor improvement, identify debilitating bugs, providingideas on architectural improvements, as well as helping the client foresee future needs, thus allowing the company to maintain a competitive edge.Knowledge AssetsIntangibles such as cross platformvertical exposures and industry standard quality paradigms such as Six Sigma are indispensable if a company is tomaintain its competitive advantage. Information technologies cannot distribute human intelligence. A central repository of data is useless unless people utilize and access the information.Even then, the static data loses its relevance unless the right people update and add to the existing knowledge base.Supply Chain ManagementDomain expertise is the differentiating factor in solving supply-chain problems because you need to understand industry-specific business processes and practices. Organizations want solutions to address their business problems and they want the people who walk in the door to know their business.Knowledge Transfer and Process DiversificationKPM enables an organization to align the right people with the right job, at the right time, at a fraction of a cost.Identify gaps and domain knowledge needsThe KPM Framework Library repository Acquire domain knowledgeStore and organizationdomain knowlegeShare domain knowlegeCreate new domain knowledgeDiscovery of existing domain knowledge Use application domain knowledgeKPM MethodologyKPM combines domain expertise across several verticals to create industry-specific knowledge basesand repositories. This sharing, reuse and retention of knowledge leads to continuous improvement andexpansion of the organization's products and services as well as accelerated project implementation.Central to the KPM methodology is the assessment and the process-based knowledge map. Thesetechniques help organizations identify their strengths, weaknesses, knowledge gaps and critical business functions. This helps the organization improve resource allocation, while identifying priorities.KPM AssessmentThe KPM assessment evaluates the strengths and weaknesses of an enterprise's knowledge processesto create a KPM-driven solution.The intent of this assessment is to identify opportunities for performance improvements across the enterprise.Opportunities for improvement extend across organizational lines and cover managerial, operational, social, and technological issues that are interrelated.Through a KPM assessment, an unbiased understanding of the company's business, vision, strategies, operation, and strengths and weaknesses are developed.Two critical components to a KPM assessment are: Involvement of key senior resources Reuse of corporate assetsThe rapid pace of a KPM project and its short duration mandates reuse. Reusable assets (listed here)expedite the delivery of KPM while minimizing risk. Reuse of knowledge assets, such as technical templates, business templates, process templates, and package software Reuse of skills with an industry and a technology focus Reuse of process assets, including methodology, task structure and work plans, metrics, techniques and iterative deliveryHow the operational aspects, social systems and technological aspects of KPM are bound together and leveraged to achieve maximum customer satisfaction is the true focus of KPM.
Business Process Activity 1Activity 2Activity 3Activity 4Knowledge Outputs Knowledge InputsTacit knowledge: individual knowledge=a best practice from an expertTacit knowledge: team knowledge=expert advice on performing a business process activity Explicit knowledge: report=results of business process performance Explicit knowledge: knowledge in a document=a website article Copyright 2006 Maxil Technology Solutions Inc. All Rights Reserved. www.maxiltechnology.comwhitepaperSource: Deborah Plumley, Process Based Knowledge Mapping, Destinationkm.comProcess-Based Knowledge MapOne of the integral tools used within the KPM methodology is the process-based knowledge map, which is a diagram that visually displays knowledge within the context of a business process. In other words, the map shows how knowledge should be used within the process and sources of this knowledge.Any type of knowledge that drives the process or results from execution can be mapped. This could include tacit knowledge (knowledge in people such as expertise, experience, and intuition) and explicit knowledge (codified knowledge such as that in documents).The knowledge map becomes the basis for a knowledge management program, a set of knowledge managementactivities within a business initiative, or a knowledge management project (such as a community of practice or a collaborative workspace). Needed competencies can be captured on a knowledge map, which are used for a competency/ skill development plan.The mapping technique has several advantages. First, the knowledge map represents a simple, clear visual that is easy to understand, update, evolve, and use. The map becomes a valuable tool during the life of the project. Second, the mapping methodology forces participants to identify key knowledge areas that arestrategic and/or critical to their business. Third, the analysis of the knowledge map generates ideas that are most suited to the organization and the business context.The Maxil AdvantageInstitutions that have spent millions of dollars to attract and retain world-class experts find specific expertise difficult to locate.Take the example Cummins Engine Inc., a world leader in providing diesel and natural gas engines forvarious applications."CARB and EPA have imposed very strict 2007 emission levels on the Heavy Duty diesel industry. We want to be the first to launch 2007 EPA compliant engines in the market, before Caterpillar or Detroit Diesel. We utilized all our resources to find engineers who specialize in controls and mechanical design using ProE to help us make our engine module software 2007 ready, while developing new engine prototypes, but we met will little success. We started believing that the expertise did not exist. Luckily, we found a vendor in India with access to a rich pool of engineers and designers who had specific domain experience. Today, most of our controls software and new engine designs are being developed by our vendor and we are confident of meeting our deadline."clientDomain ExpertiseTechnologySolutionsMaxil ekpm Copyright 2006 Maxil Technology Solutions Inc. All Rights Reserved. www.maxiltechnology.comwhitepaperAdded Value of KPMKPM delivers higher value to organizations that outsourcetheir domain-based processes, thereby enhancing KPO's traditional cost-quality paradigm.KPM creates value for the client by providing businessexpertise combined with process expertise.KPM necessitates shifting from simple delivery of standardizedprocesses' to implementations that demand advanced analytical and technical skills, as well as critical judgment.KPM enables enterprises to: reduce design-to-market lead times manage critical hardware efficiently provide research on markets, competition, productsand services enhance organizational effectiveness in businessadministration help in dealing with rapidly evolving business scenariosMaxil Technologies Solutions Inc. provides KPM consulting that has a proven record of: Transferring and implementing large volumes of work for clients in multiple specialized domains Sustaining major projects sent offshore Leveraging experience in an international environment Providing clients with zero risk services and solutionsMaxil offers some inherent benefits to the client: Low investment Low commitment level Low risk Quick start Flexible approach Quick Implementation Healthy ROICompanies with their captive units offshore, face major risks and drawbacks: Large and long-term investment requiring considerable management time Once committed, it's not easy to withdraw Challenges of starting and running an operation in aforeign countryMaxil has invested in establishing dedicated domain groups for its lines of business: Insurance Finance HealthcareMaxil understands the importance of a dedicated vertical team to address a specific business line. For example, our InsuranceDomain Group comprises of 15 internationally certified insurance consultants, each with an average of more than a decade experience in specific areas of the insurance industry such as life, property and casualty, reinsurance and broking.There are five compelling reasons for choosing Maxil as your KPM partner: Intangible assets Domain competence Scalability Bundling of KPO and IT Multi-site/Multi-country presence Copyright 2006 Maxil Technology Solutions Inc. All Rights Reserved. www.maxiltechnology.comwhitepaperThe Maxil KPM Value PropositionStrategic LevelsDomain KnowledgeTechnology PlatformCultural AlignmentMethodology & ToolsProcessesReusabilityEnergyCostQualitySpeedReliabilityFlexibilitySpeed to marketLower total cost of OwnershipFlexibilityReliable Solutions Competitive Advantage Improved Efficiency & EffectivenessValue AreasBenefits to the clientMaxil KPM OfferingsMaxil's KPM solutions provide clients with a synergistic combination of deep domain expertise and strong operational excellence in: Knowledge Strategy Business Strategy Knowledge Mapping Practice Communities Intellectual Capital and KPMSummaryVertical specialization is becoming a market requirement and crucial to market success. More companies are facing an acute shortage of workers with specialized expertise and deep knowledge in specificfields. Consequently, KPM consultants, leveraging their experience and capabilities in particular industry segments, are invaluable.KPM consultants start with a solid grasp of processes and workflows. Since 70 to 80 percent of acompany's business rules are representational of all businesses operating within a vertical, your KPMpartner focuses all his energy and time on adding functionality or customization specific to your needs.The Future of the IT Professional and KPMThe IT professional of the future will adopt to the KPM model. No longer will it be sufficient to say "I workin IT." Instead, a new breed of IT professionals will have technical aptitude, local knowledge, industry expertise and leadership ability.Gartner predicts that by 2010, six out of ten IT professionals will assume business-facing roles.The new IT professionals are people whose numerous roles, assignments and experiences enable themto synthesize knowledge and context to fuel business value. They are applying their skills and experiences to situations and challenges, while implementing cross-organizational insight to supplement teams and fill competency gaps.Your KPM partners with broad insight, deep process knowledge and industry orientated competencieswill help companies incorporate innovation and multiple perspectives into IT-based processes, products, services and technologies.The KPM model is fast becoming an integral component of any organizations planning process. Those that ignore it will do so at their own peril
Copyright 2006 Maxil Technology Solutions Inc. All Rights Reserved. www.maxiltechnology.com
Knowledge Process Management
By: Raj Kosaraju
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