"To conceive of knowledge as a collection of information seems to rob the concept of all of its life... Knowledge resides in the user and not in the collection. It is how the user reacts to a collection of information that matters." – Churchman A Starting Premise Knowledge is Power Many companies are beginning to realize that the knowledge of their employees is the most valuable asset. PEOPLE ARE CRUCIAL ….. The exclusive source of knowledge for organisations is people. Individual knowledge is the starting point for organisational knowledge. The knowledge pool of each individual cannot be replicated Only people can spread knowledge resources across the company It is only people who can convert knowledge into efficient action. Company Knowledge Resides in… Documents Explicit Potential Knowledge Tacit Modes of Knowledge Generation • Acquisition • Dedicated Resources • Fusion • Adaptation • Knowledge Networking Acquisition Direct and Effective way --- acquire knowledge •Buy the Knowledge •Buy an organization •Hire individuals who have Knowledge. Companies buy other companies for various reasons: • to generate additional revenue, • to achieve a strategic size or product mix, • to get access to new markets • to gain the skills of a senior management team Acquisition Acquirement other companies for knowledge. Companies pay premium for adding new knowledge to their knowledge stock. IBM's 1995 purchase of Lotus. IBM paid $3.5 billion, 14 times Lotus's book valuation of $250 million. The $3.25 billion premium IBM paid represents its appraisal of Lotus's unique knowledge of Notes and other collaborative software applications. The minds that invented Lotus Notes are more valuable than the software itself. Acquisition British Petroleum gives a Thief of the Year Award to the person who has "stolen" the best ideas in application development. The company recognizes that, when it comes to organizational knowledge, Originality is less important than Usefulness Acquisition . Texas Instruments has created a Not Invented Here, but I Did It Anyway Award for borrowing a practice from either inside or outside the company. The Spanish proverb "Well stolen is half-done" sums up this idea succinctly. The knowledge-focused firm needs to have appropriate knowledge available when and where it can be applied, not to generate new ideas for their own sake. Acquisition Leasing outside knowledge Company’s university Research Funding Hoechst --- supports research Department of Molecular Biology at Massachusetts General Hospital in hopes that it will lead to the development of profitable new drugs. R&D efforts are always speculative Acquisition Renting knowledge really means renting a knowledge source. Hiring a consultant for a project is an obvious example. Knowledge source is temporary High-level consultants are expensive For maximum Knowledge transfer. Squeeze as much knowledge Dedicated Resources Knowledge creators and users may not even speak the same language. Xerox's Palo Alto Research Center --- mid-1970s. Knowledge workers at Xerox PARC invented key elements of graphical interface computer The mouse, graphical icons and menus. The Management were not close enough to the research to evaluate the newly created knowledge. Steve Jobs--- Apple computers built Macintosh. A brief tour of Xerox PARC was sufficient to gather the fruits of research funded for years by Xerox. Fusion Matsushita first automatic breadmaking machine --- example of diversity Matsushita combined three product divisions with different cultures rice cookers, toasters and coffeemakers, and food processors The new product Combined the First group computer-control expertise Second group induction heater technology Third group knowledge of rotating motors. Knowledge management principles – help fusion •Foster awareness-value of knowledge •Identify key knowledge workers •Emphasize the creative potential •Make the need for knowledge creation Encourage, reward , direct •Introduce measures and milestones of success Adaptation Adapt or die is our fate; so We adapt and advance Knowledge generation drivers • New products from competitors • New technologies • Social and economic changes Success is often the enemy of innovation; it has been called the winner's curse. Networks Knowledge generation by informal, self-organizing networks within organizations . Employees interact • in person • on the telephone • and via e-mail • and groupware to share expertise and solve problems together. Difficult to codify --- adds to the knowledge of the entire company. Processes Involved in Knowledge Management : Identification Mapping Capturing Storing Applying Acquiring Sharing Creating RPS TYPICAL INFORMATION SHARING •NR - Darpan , TS Feedback •ER- Anubhav, Tech 2K.Com •WR- Reaching Out, Technical Share •SR- SR News, TS Tidings •TSHQ- Feedback Journal , New Horizons , Annual Performance Report on Thermal & Nuclear Sets •PS:MSX- Power Sector Operations Overview booklet, PRAYAS, POWER MAP RPS •What do we do if knowledgeable people suddenly leave ? How can we ensure that what one department or division learns is widely shared throughout the company? Power Sector Executives Knowledge Pool No. of Executives : 1585 Total BHEL Experience : 33000 years Average Experience in BHEL : 20.8 years RPS Jan’2002 Total BHEL Experience - Power Sector Executives 9655 7301 Years 6787 5370 2436 32 20-25 523 805 25-30 30-35 E1,E2 E3 35-40 E4 40-45 E5 45-50 50-55 55-60 E6,E6A,E7 GM,ED GM,ED Age Group(Yrs.) RPS Enterprise Knowledge Management Manual Product Data Management Document Management Specification Turbine Customer Order Performance Data Regulation Change Request Archive Note Publication Rotor Assembly Casing Instruction Drawing Image Drawing Drawing Bottom Case Top Case Rotor Forging LP Rotor Model Rotor Option A Holding Bolts Bottom Cover Rotor Disk CAD/CAM/CAE Data Management Part Families Component Management Blade Rev A Blade Rev B Blade Rev C Rotor Option B Rotor Option C Configuration Management Creation Of Knowledge Clip Board ( MOU Project ) of Site Related Problems Start date : 15-06-2004 Completion date : Jan-2005 Project cost : 72.5 lakhs PROJECT OBJECTIVES Empowering BHEL Engineers with a Centralised Database Containing Problems faced during Erection, Commissioning , Operation & Servicing, their Analysis & Resolutions for BHEL Commissioned Projects to enable them to take timely technical decisions in trouble shooting the defects Creation of Repository of site related technical information through Prompt accessibility & retrieval of information for quick and reliable trouble shooting Capabilities building to trouble shoot problems of older technology Development of more number of trouble shooters Considering the wide range of products and number of collaborations for each product , it is necessary to facilitate our business sectors with information to take timely corrective actions and valid decisions Project Goals Generating additional business in the areas of SAS and R&M Availability of important technical data on a centralised basis Fast and easy archiving and retrieval of data Cost reduction in operations Maintaining capabilities in servicing / trouble shooting/ RLA & R &M of older machines needing attention to avoid the situation where expertise is depleting High value services to customers Improved customer satisfaction Anticipated Benefits Improved speed of Execution of Contracts Less dependency of Manufacturing units Saving time/ work due to reduced traveling More value addition per Employee by Regions /Power sector Renovation and Modernisation business Marketing (PS & IS ) Quicker & reliable problem analysis & solutions associated with high value services Repository of Information Generated and Digitised A.. Feed Back Articles – Site related Since Year 1992-93 B. Let Us Know- articles describing state of art technology C. Commissioning Procedures 1.Boiler & Auxiliaries & its Systems 2.Turbine & Auxiliaries & its Systems 3.Generator & its Auxiliaries 4.Cooling Water System 5. Other Commissioning Systems Present status Categorisation of Feed back articles – Product wise Generation of Key words – for Search Engine Procurement of Server, LapTops, Digital Cameras , Scanners and Application software ( Oracle 91) Scope for further work a. Extended to all 120 / 210 /200/250/500 MW BHEL Thermal Sets b. Gas Turbines/ CCPPS It is not “Knowledge is Power but Knowledge sharing is Power” RPS Thank You All