Learning Objectives
Explain knowledge management and how it creates value for organizations.
Describe the basic features of the Delphi technique, simulation, and scenario forecasting aids.
Use Osborn’s creativity model to stimulate adaptive and innovative decisions.
Apply three quality management decision and planning aids: benchmarking, the Deming cycle, and the balanced scorecard model.
Fostering Knowledge Management
Knowledge management (KM) involves recognizing, generating, documenting, distributing, and transferring between persons useful to improve organizational effectiveness.
KM is generally viewed as consisting of three main components: Explicit Knowledge Tacit Knowledge Enabling Technologies
Knowledge Management Drivers
Knowledge is becoming more valuable than physical or financial assets, or even natural resources.
Organizations that are reevaluating knowledge strategies are finding shortcomings such as: Productivity and opportunity loss Information overload Knowledge attrition Reinventing the wheel
Knowledge Management Targets
The application of KM has three natural targets: an organization’s teams
P&G, Innovation Net Customers
Xerox, Eureka, 30000 tips Workforce
Clarica Life Insurance
Enabling Technology
Technology provides the foundation for solutions that automate sharing of knowledge and fostering innovation.
Choosing technologies involve addressing two critical issues: technologies should deliver only relevant
information, but quickly from
every feasible source technologies need to comprise
a variety of devices, from telephone
to laptop computers
Enabling Culture
Culture is often the greatest barrier to successful implementation of KM.
To help create a sense of trust and positive cultural response in the InTouch service at SchlumbergerSema the following implementation was used:: A knowledge champion was assigned as a focal
point Extensive input from the field employees was
sought A knowledge-sharing culture was developed
Fostering Forecasts
Forecasting involves projecting or estimating future events or conditions in an organization’s environment.
Common forecasting pitfalls include: listening to the media assuming that things are
going to return the way they used to be
hearsay tunnel vision
Delphi TechniqueDelphi Technique
The Delphi technique is a forecasting aid based on a consensus of a panel of experts.
Uses experts to make predictions and forecasts about future events without meeting face-to-face.
The heart of the Delphi technique is a series of questionnaires.
Delphi Technique
The Delphi technique typically involves at least three phases. A questionnaire is sent to a group of experts A summary of the first phase is prepared A summary of the second phase is prepared
Three phases are recommended; however, experts tend to drop out after the third phase because of time constraints.
Delphi Technique
• Step 1—A problem is identified
• Step 2—Group members are asked to offer solutions to the problem
• Step 3—Responses of all group members are compiled and sent out
• Step 4—Members are asked to generate a new individual solution
Simulation
A simulation is a representation of a real system.
A simulation imitates something real, but is not real itself, and can be altered by its users
Examples of Business Simulation(adapted from Table 9.1)
Budget Models All levels of organization
Treasury and Financial Models Cash management Income statements Cash flow projections Stock and commodity prices
Marketing Models Sales budgets Pricing Market share projections Advertising and marketing
plans
Operations Models Inventory costs Material costs Production costs
Human Resources Models Compensation Optimum staffing levels Measures of productivity
Strategic Planning Models Scenario planning Political/economic
forecasts Business war-gaming
Stages in the Creative Process(adapted from Figure 9.1)
5. Verification
1. Preparation
2. Concentration
3. Incubation
4. Illumination
Osborn’s Creativity Model
Osborn’s creativity model is a three-phase decision-making process that involves: Fact finding
Idea finding
Solution finding
BrainstormingBrainstorming
Brainstorming is an unrestrained flow of ideas in a group with all critical judgments suspended.
A technique used to enhance creativity that encourages group members to generate as many novel ideas as possible on a given topic without evaluating them.
BrainstormingBrainstorming
Criticism is ruled outFreewheeling is
welcomedQuantity is wantedCombination and
improvement are sought
The Benchmarking Process(adapted from Figure 9.2)
1. Define the domain
Benchmarking
2. Identify the best performers
3. Collect and analyze to identify gaps
4. Set improvement goals
5. Develop and implement plans to close gaps
6. Evaluate Results
7. Repeat evaluations
The Deming Cycle(adapted from Figure 9.3)
Start
RepeatPDCA
4. Act 1. Plan
3. Check 2. Do
RepeatPDCA
Improvement and learning over time
The Deming Cycle
1. What we are trying to accomplish?2. What changes can we make that will
result in improvement?3. How will we know that change is an
improvement?
Provides a process for an organization to gain deeper knowledge and understanding of its strategic decisions by considering the role of finances, customers, internal processes, and learning/growth
Provides a broad perspective in planning and decision making
Takes account of financial and nonfinancial measures
Balanced Scorecard Model
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