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An Integrated Knowledge Management Model
for Global Application Management Business
– White Paper –

Siemens IT Solutions and Services




                                    Executive Summary
                                    The Knowledge Management (KM) program at Global Application Management
                                    (GAA) is one good example of how a large organization should go about
                                    building capability in the area.

                                    KM was initiated in a project form at smaller scale to pilot out the feasibility
                                    and suitability for the Application management business. Later, it was mapped
                                    to meet out strategic business objectives without loosing sight of the actual
                                    knowledge needs of the workforce. The development and roll-out was well
                                    planned in phases to ensure scheme goes the ‘first time right’. The results of
                                    first project in GPC India were used to demonstrate the value of KM to other
                                    organizational entities and countries.

                                    KM Services offered are combination of pull (self-service) and push services
                                    (facilitated transfer) specially designed to meet the needs of consultants.
                                    There is a robust measurement system around KM process to ensure all
                                    participation and non-adherence gets reported.

                                    While the initiative is barely one and half year old in GAA, the early signs of
                                    success indicate that change management strategy and plan are on the right
                                    track and other process and systemic challenges are addressed appropriately.
Siemens IT Solutions and Services




                        Disclaimer
                        The views expressed in the paper can be attributed to Global Application
                        Management as a whole. The paper is based on the current practices and they
                        are subject to change due to policy of the organization. The business scope
                        of the current Knowledge Management deployment is for Global Application
                        Management only. The process indicators are chosen randomly as samples to
                        demonstrate the case in point.




                        Acknowledgements
                        First of all, we would like to acknowledge the efforts of all consultants of Global
                        Application Management who participated in all kind of Knowledge Management
                        (KM) processes. It is their contribution which is being discussed and detailed out in
                        the paper and the whole text is reflecting the point of view of Global Application
                        Management. The thought leadership provided by Mr. Andreas Degenhardt,
                        Head of Siemens IT Solutions and Services – Global Application Management,
                        Mr. Sanjay Vispute, and Mr. Manish Saxena, main author of this text, is one of the
                        defining factors for the KM program. The KM technical team and support team
                        based out of India also deserve huge credit for converting a vision into a real
                        working system.




2
Contents                                                                                                       Page


Executive Summary …………....................................…………….…...............…........... 1
Introduction: Siemens IT Solutions and Services ……..........................................….. 4
Context of setting up Knowledge Management team …........................................... 5
KM value proposition in Global Application Management ....................................... 9
Evolving KM strategy for the organization ..........................................................… 10
Conceptual model and approach to achieve GAA’s KM vision ..............................… 12
GAA’s KM Model ...............................................................................................… 15
Challenges of KM deployment at organization level ……......................................... 19
Success so far ...................................................................................................… 21
Key Success Factors for KM in GAA ....................................................................… 22
Abbreviations ...................................................................................................… 23




                                                                                                                         3
Siemens IT Solutions and Services




                        Introduction
                        Siemens IT Solutions and Services is an internationally leading provider of informa-
                        tion technology solutions and services, offering one-stop shopping for the complete
                        IT service chain – from consulting to systems integration and IT infrastructure
                        management right through to industry-specific IT solutions.

                        As a cross-sector business Siemens IT Solutions and Services supports the Siemens
                        Industry, Energy and Healthcare Sectors that possesses IT. Special focus will also
                        be on fully integrated, industry-specific IT solutions developed together with the
                        Siemens Sectors.




                        What makes Siemens IT Solutions and Services unique?
                        Industry DNA – as the only IT partner embedded within a global integrated technol-
                        ogy company, with a 160 year history of continuous industry leadership, Siemens IT
                        Solutions and Services has an unrivalled knowledge of all the industries and sectors
                        that it addresses.

                        Practical innovation: Siemens IT Solutions and Services with its technical expertise,
                        backed by a strong engineering culture, provides innovation that delivers measurable
                        value to the clients, both in the public and private space.

                        Quality & Commitment – as a service company, with customer satisfaction and
                        contract renewal rates among the very best in the global industry, Siemens IT
                        Solutions and Services has the proven ability to guide the successful transformation
                        of it’s customers’ business processes and operations. Siemens IT Solutions and
                        Services is known for always staying engaged, never walking away from difficulties
                        and delivering on its promises.




                        Global Application Management business
                        Global Operations (GO) is the outsourcing business division of Siemens IT Solutions
                        and Services. GO is further divided into two parts; Infrastructure Services and Global
                        Application Management (GAA) business.




4
This paper is based on the experiential learning out of the KM program in GAA
business globally which operates into Application Management Services (AMS)
space. GAA has five main priorities:

•	 Quality in everything we do

•	 Win new customers

•	 Better collaboration

•	 Foster Standardization and Industrialization

•	 Promote the AMS topic towards the market, internally and to our people




Context of setting up a Knowledge Management team
“The need for setting up a KM team and systems was felt by top management for
multiple business reasons” explains Manish Saxena when coming to speak about how
this project came into life. These reasons attributed for having a robust KM system
could be distinctly classified in two categories; direct business reasons and the
classical problems addressed by knowledge management. The direct business reasons
were i.e. growth strategy in market place, improving operational efficiency, driving
consistent look and feel within all constituents of the organization and integrate and
create one global organization. The other set of classical reasons for setting up KM
were to reduce information search time for employees, improve learning curves of
new joiners, limit the knowledge drain with outgoing employees, avoid reinvention
of the wheel across multiple geographies, improve collaboration among global work-
force and last but not least, foster a culture of knowledge centricity and creativity.

In AMS business, the global competition is getting fiercer and players are now
increasingly emphasizing more on building and sustaining competitive advantages.
And, given the nature of the business, source of competitive advantage in long run
will be the work-force and their competence as a whole. Andreas Degenhardt points
out that luckily GAA was quick to realize the fact and started focusing on systems
and processes that help consultants in keeping their knowledge abreast and thereby,
become more productive and effective for their customers. The key priorities for AMS
business were to generate all round growth from existing customers and by acquiring




                                                                                         5
Siemens IT Solutions and Services




                        new customers. “KM has been chosen as one of the several strategic tools to enable
                        growth by sharing best practices of customer acquisition and servicing teams of
                        different countries”, says Andreas Degenhardt. Furthermore KM aims to have one
                        common database of knowledge assets (i.e. enhancements) to promote upselling
                        and cross-selling across verticals and geographies.

                        Another salient feature of GAA strategy was to create a sustainable competitive
                        advantage by having low cost structure. It was proposed to achieve this by having
                        an integrated model of delivery across five production centers to optimize capacity
                        utilization. The cost of operations varied in a broad-band across these global
                        production centers along with the competencies of consultants resolving incidents
                        and realizing enhancements on customer IT systems. Was there any challenge to
                        be faced? “Yes, answers Manish Saxena, the major challenge in implementing an
                        integrated delivery model was the absence of common systems i.e. ticketing tools,
                        diverging processes, documentation practices and exposure to consultants.
                        The consultants were used to work in closed teams interacting within themselves
                        and catering to one client. The proposed model needed to have one consultant
                        working across several projects to facilitate higher capacity utilization.”

                        According to Saxena, the next big challenge faced was to contain the burgeoning
                        cost of operations. Due to the push in last several years for starting new initiative
                        at country level and driving country or region specific approach have led to accumula-
                        tion of fragmented costs. In addition, outsourcing could not be pushed very strongly
                        due to region specific growth model. The management felt the need to consolidate
                        all such initiatives and attempt to synergize. For a long-term competitiveness, it was
                        necessary to contain the operational cost and promote outsourcing in big way. While
                        it started around five years back but real thrust came when the Integrated Common
                        Delivery System was pushed by a central team from HQ. KM was seen as a big enabler
                        for unified delivery model and also a tool to improve productivity of line staff.

                        For the variety of reasons explained in above paragraphs, process standardization
                        took a back seat. This ideally should have been the key differentiator when you eye
                        big conglomerates or global organizations. These players demand common standards
                        of services and processes from all production centers. Hence, KM was thought to be




6
serving as a common platform to integrate all knowledge pertaining to processes,
people, services and tools. After restructuring, GAA strived to become a well-oiled
and synchronized organization in short span of time. Again, the challenge was on
connecting minds of people belonging to diverse demographies. The feeling of one
GAA irrespective of the country specific incorporation was needed and it was agreed
to achieve the same by rolling out common global processes, platform and tools.
The organizational culture was the key factor in driving this aspiration. Again, KM
was identified as key initiative to help achieve these objectives.

The second set of reasons that led to setting up a KM team at corporate level was
to address the classical problems identified by KM in any organization. One major
challenge in large organization like Siemens IT Solutions and Services GAA was to
connect knowledge islands. The challenge was not the unavailability of knowledge
but the access to the right knowledge at the time when people need it. Another
missing link was the contextual understanding of the knowledge. It all results into
huge information search time which otherwise could have been utilized for more
productive business purposes. As per the estimates provided by a leading consulting
firm, about 92% of the knowledge and information is often found unstructured and
resultant information search time for employees could be as high as 35%.

One of the focus areas of KM deployment has been to reuse knowledge to the
possible extent. In large organizations, reinvention is commonly seen as a source of
additional cost which could have been very well avoided just by being well informed.
For example; a lead practice i.e. a comprehensive design of the Management
Information System for a country could be easily replicated in other countries
without investing any time and efforts by other countries. As per a study done by
KM practicing organization in India, reuses can save cost up to 70% using a good KM
system which shared and disseminate information efficiently. According to Andreas
Degenhardt, Siemens IT Solutions and Services GAA is no exception to this thumb
rule because of the size and scale. So there lied an opportunity to control the cost
by driving reuse of all types of knowledge i.e. transactional knowledge and tacit
knowledge.




                                                                                       7
Siemens IT Solutions and Services




                        In current scenario, when ample opportunities are available to employees particularly
                        in emerging markets like India, Brazil, Argentina and Russia, the attrition rate was
                        touching all time high. At one point in time (2008), for GAA India annual attrition rate
                        went up to as high as 18%. Of course, later during the subsequent recessionary years,
                        it came below significantly but business volumes too dipped strongly. In such dynamic
                        scenario, it is always beneficial to have steeper learning curves for new joiners so
                        that they could become productive sooner than usual average. This has direct bearing
                        on organizational bottom lines. In this context, KM system plays a vital role.
                        KM systems offer for any new joiners to pick-up learning in selected areas at one’s
                        pace and convenience. More importantly, the dependency on seniors in the system
                        for providing learning to a new joiner is reduced.

                        Another incidental benefit of KM is to make knowledge transfer independent
                        (of course to a limited extent as KM system can never be a replacement of a human
                        mind which captures enormous knowledge) of people who participate in business
                        processes. This is equally true in a scenario when an experienced resource moves
                        out from the current role.

                        In recent times, when workforce is spread in wider geographies, it is all the more
                        necessary to have stronger focus on people to people collaboration. It has been a well
                        established fact that a team which connects at individual level shares more and learns
                        faster from each other than a team which does not have personal connections.
                        This has been the underlying philosophy of social collaboration or also called as social
                        computing. This latest aspect of KM has been a focus of current KM model of GAA.

                        One of the major intended benefits of the KM intervention is to drive a culture of
                        knowledge sharing and reuse. “When knowledge is made available to employees,
                        it also triggers into many improvement ideas”, outlines Saxena. An organization if
                        actively tracks and drives the reuse and further incremental knowledge over the base
                        knowledge, it generally leads to many major or minor improvements. It has been
                        empirically proven that KM programs usually leads into increased tendencies among
                        employees to come up innovative solutions of day-to-day problems.




8
KM value proposition in Global Application Management
KM systems aim to ensure consistent, efficient, effective and smart services to
end-customers by enabling smart work-ways within GAA delivery units. The following
table explains the opportunities (potential benefits) available to KM for GAA on the
four quadrants of the balance scorecard.


 Process        •	 Smarter & efficient processes: Adapting best practices.
                   Drive reusage of knowledge

                •	 Standardize processes for greater consistency and flexibility

                •	 Enable CDP model by offering common source of knowledge and
                   documentation which results into higher flexibility

                •	 Avoid reinvention. Quick replication across Global Production
                   Centers (GPCs)

 Customer       •	 Improve contextual grasp of customer knowledge

                •	 Move up from customer satisfaction to customer delight

                •	 Improved SLAs and response time. Futuristic solutions

                •	 Ensures new joiners adapts faster and thereby reduces impact
                   on delivery to customer

 People         •	 Learn right things with right speed and ensure financial benefits
                   (P2P learning)

                •	 Higher collaboration among teams

                •	 High levels of employee engagements

                •	 Help get access to Global Subject Matter Experts across GAA


 Finance        •	 Need to improve operational efficiency (productivity,
                   response time, optimize utilization of resources)

                •	 Smart work ways to ensure market growth from existing
                   customers

                •	 Enhance chances for cross-selling and up-selling of
                   enhancements




                                                                                       9
Siemens IT Solutions and Services




                           Evolving KM strategy for the organization
                           The genesis of KM thought process of GAA lies in urgent business needs as discussed
                           in the previous chapter. KM was first identified as one of the core project under the
                           program “GAA for 2014” initiative in 2008. It started on a small note in global produc-
                           tion center in India. The initial focus had been to capture incidents and their resolu-
                           tion in a database for driving reuse of the same. The intended benefit was to improve
                           productivity of consultants. After around two quarters, the need was felt to have a
                           broader view of knowledge management. It was also planned that a line function will
                           be instituted which will carry forward the work of the project team and enlarge the
                           scope of KM. Subsequently, Global Knowledge Officer (GKO) was appointed.

                           With the advent of the line function, GKO worked out a comprehensive KM roadmap
                           for GAA through a wide-level consultation with GAA leadership and country teams.
                           The document also took the strategic business objectives of GAA (as explained under
                           the value proposition of KM for GAA and its customers) into consideration, the vision
                           of program GAA for 2014 and the knowledge needs of the workforce.

                           The following knowledge needs of GAA employees have been identified to begin the
                           further design of the KMS:




     Figure 1                 Past Resolutions               Capture past resolutions, smart retrieval, stop re-invention
     Knowledge needs of
     GAA workforce                   Project
                                    Document                 Structured document based collaboration. Prescribed & standard

                                        Process &            Top level Process knowledge, operating instructions, Audit,
                                        protocols             Continuous Improvements

                                                Social
                                            Collaboration    Encourage People to people connection. Drive sharing & reuse.


                                      Measurements
                                                             Measure progress, trends. Stay focused. Centralized & Transparent
                                                              approach

                                    Contextual               Help employee get more knowledge; corporate, specialized,
                                    Knowledge                 interests, customer

                                 Learning
                                                             Ensure learn right things, faster and translate into business
                                                              benefits.




                           After analyzing all of the three defining factors of KM strategy, the conceptual model
                           was finalized which laid the foundation of basic tenets of KM. The first and foremost,




10
a vision for KM has been carved out from the over all vision of GAA:


                      Harness GAAs corporate brain for achieving GAA for
Figure 2              2014




                                                                                       Strategic Business Objectives
                                                                                                                       Profitability
Proposed KM vision

                      Improve Collaboration. Empower employees with
                      peer‘s knowledge                                                                                  Employee
                                                                                                                       engagement


                      Avoid Reinvention. Quickly Replicate Best Practices
                                                                                                                        Customer
                                                                                                                         intimacy
                      Enable business growth by more resilient
                      employees

                                                                                                                        Innovation
                      Foster a culture of creativity & openness




                     Broad contours of KMS strategy and design
                     GAA identifies KM as one of the four core processes in Application Management
                     framework. The below principles explain the broad contours of the design of the KM
                     program for GAA:

                     •	 Strongly linked to the GAA’s overall business objectives

                     •	 Focus on driving culture of sharing and re-use of knowledge

                     •	 Build GAA’s organizational body of knowledge for long-term advantage

                     •	 Designed to cater knowledge needs of the work-force

                     •	 Capture transactional knowledge. Experiential knowledge (tacit and explicit) and
                       external knowledge to meet all-rounds needs of the consultants

                     •	 Ensures knowledge is provided at the point of need

                     •	 Offers a combination of pull (self-service) and push (facilitated transfer) services
                       to consultants

                     •	 Leverage power of communities in ensuring knowledge sharing

                     •	 Helps to bring several organizational entities closer by providing opportunities
                       of social collaboration and standardized documentation structure

                     •	 Measure business and financial impact of the reuse




                                                                                                                                       11
Siemens IT Solutions and Services




                           Conceptual model and approach to achieve GAA’s
                           KM vision


                           GAA’s definition of Knowledge Management
                           KM is pertaining to a set of activities that ensure knowledge created in all business
                           interactions (i.e. transactions, projects, initiatives, programs and customer
                           interactions) are captured, categorized and stored in GAA’s organizational body
                           of knowledge for future purposes i.e. organizational learning and reusage.
                           KM program will enable people to people learning at individual and organizational
                           level by bringing a cultural change and technology enablement of the knowledge
                           processes about.

                           The aim of KM program will be to harness individual and collective brilliance
                           (knowledge) of workforce and transform the same into GAA’s competitiveness in
                           market place in generating sustainable competitive advantage. There are two
                           conceptual models that outline guiding principles for designing of KM in GAA.




     Figure 3                Needs of knowledge seekers       Provide Context to knowledge       Make sense                        Share & reuse
     Conceptual model:
     Knowledge to enable
     right decisions




                                                    Enterprise-wide Knowledge Management System
                                 Developments                                                       Relevance                       Disseminate
                                                                     Priorities                                                      Awareness
                                 Business Intelligence                                              Understanding
                                                                     Practices                                                       Feedback
                                 Situations                                                         Context
                                                                     Training                                                        Consequences
                                 Circumstances                                                      Analysis
                                                                     Distinctions
                                 Events                                                             Meaning
                                                                     Changes
                                 News


                                                                                                               Benefits to workforce


                                                                          Risk taking/     Handle business
                             resourcefulness         Pragmatism                                               Clarity of purpose         collaborate
                                                                         New initiatives     ambiguity




12
In today’s time, effectiveness of knowledge worker’s is crucial for organizational
success. Hence, businesses must enable people to make decisions quickly,
effectively and with minimum oversight.

Businesses depend on their people for several thing:

•	 to seek relevant information;

•	 to understand loads of information based on situations and surroundings;

•	 to analyze and make sense of information; and

•	 to share and disseminate information so that people know and understand
  situations, actions, implications and next steps.

Therefore, a good KM program should focus on harnessing the tacit knowledge
of employees who have best situational awareness. It has been proven by several
studies that a well designed and executed KM program would result into enhanced
business resilience of employees which is their ability to make right decisions at
the respective moments of truth.

From the individual employee perspective, six major behavioral characteristics of
individuals get impacted due KM to some extent. This is put together defined as
business resilience:

1. Pragmatism in overall approach,

2. Resourcefulness,

3. Risk taking ability/ new initiative,

4. Handle business ambiguity smartly,

5. Clarity of purpose,

6. Collaborate.




                                                                                     13
Siemens IT Solutions and Services




                            From the methodology and tool perspective, the below KM framework helps in
                            determining the right mix of methodologies to influence people’s sharing and
                            reusage tendencies in the organizational set-up.




                                                                                       To
     Figure 4                                                tacit                                            explicit
     Transformation of
     knowledge from tacit
     to explicit…
                                                          Socialisation:                           Externalisation:
                                            tacit         Sharing                                  Codification
                                                          experience                               documentation
                                  From




                                                          Internalisation:                         Combination:
                                         explicit         Individual use                           Creation of
                                                          of experience                            New knowledge

                                                                     Source: The knowledge creating company, I. Nonaka and H. Takeuchi




                            This above knowledge transformation framework forms basis for identifying various
                            methodologies that are explained in subsequent chapters.



                                             Socialization                                                 Externalization
     Figure 5                                 (tacit to tacit)                                               (tacit to explicit)
     Framework: Transfor-       Communities of practice                                 Codification of knowledge
     mation of knowledge        DOJO                                                    GAA taxonomy / folksonomy
                                Social collaboration                                    Documentation
                                Share Problems
                                Idea contest

                                            Internalization                      KM                          Combination
                                             (explicit to tacit)                Portal                     (explicit to explicit)




                              Experience sharing                                          Sharing among GPCs
                              Success stories                                             Measuring variation among GPCs
                              What went wrong – stories                                   Benchmarking ( internal / external)
                                                                                           Adopt new knowledge




14
GAA’s KM Model
                        The KM program offers three services. First, pull services (self-service) –
                        contribute & retrieve knowledge as and when one’s need it. Second, push services
                        (facilitated transfer of knowledge) driven by the need of the organization.
                        And, third, community exchange where peers and experts join hands to discuss
                        and share knowledge.




                                                               Employees
Figure 6
The enterprise portal
of GAA and global                                                           Push
                                                        Pull                                       KM Team
production portal are
the two gateways to
                                                                                                   Transactional
all these services                                 Self-service       Facilitated
                                                                                                    Knowledge
                                                        (IT           Transfer of                   Databases
                                                    Enabled)          knowledge
                                                                                                      GAA-
                                                                                                     Business
                                                                                                     Insights

                                                                                                   GAA’s library

                                   Network &                                        Personalized
                                   community                                                       Employee
                                     service                                                       Collaboration


                                                                                                    Document
                                                    GAA Enterprise Knowledge                       Collaboration
                                                             Portal
                                                                                                    Campaigns
                                                   Self-service       Facilitated
                                                                                                    Community
                                                        (IT           Transfer of                    Events
                                                    Enabled)          knowledge

                                                      Pull                 Push                    KM Team


                                                               Employees




                                                                                                                   15
Siemens IT Solutions and Services




                           Portfolio of KM tools and functionalities at GAA
                           Siemens being a large conglomerate, a well integrated organization which cut across
                           multiple sectors and geographies, and also being a pioneer in technologies and
                           research and development has a huge legacy of management information systems.
                           Some of them are really world-class and classify as knowledge management systems.
                           Therefore, it was decided to harness existing tools and functionalities which are
                           relevant	for	AMS	business	and	integrate	GAA	specific	tools	with	legacy	systems	
                           in order to maximize returns on investments and avoid duplications. The current
                           portfolio	of	general	and	GAA	specific	tools	appears	as	below:




                                                                  GP Portal                  S olution DB          G P P ortal
     Figure 7                                              Transactional, Tacit, Explicit
                             Past Resolutions
     Knowledge needs of                                                                      AMF            S lideP ool
     GAA workforce                                              Doc-Central
                                    Project                  Delivery, CSO, T&T, BP            Doc -C entral         QMS
                                   Document

                                                                      AMF                     As k E xpert  My R atings
                                       Process &             Business Process, WBT
                                                                                             Change How We Work Together
                                       protocols


                                                                      QMS
                                              Social       Templates, Standard, Audits
                                           Collaboration                                      G A A P ortal         T R AiL
                                                           Social Computing                        P ers onal P rofiles
                                     Measurements          P2P Learning, Communities
                                                                                             T raining           C ommunity
                                   Contextual
                                                                   Context                           MIS
                                   Knowledge               Corp., Production, Customer
                                                                                             T ec hnoW eb            ibid
                                Learning
                                                                  Learning                   R es earc h        L ibrary
                                                            Skill-upgrade, Soft & tech.




                           These tools are being rolled out to global production centers; Customer service
                           organization and hybrid model (Delivery Competency Centers).




16
Glimpse of the Live KM Systems

                                       GAA Portal                                  Customer Project &
                                       Purpose: Information                        Unit Collab. base
Figure 8                               Dissemination                               Purpose: knowledge
Live KM Systems                        Technology: SharePoint,                     about customer & units
                                       DotNet                                      Technology: SharePoint,
                                                                                   DotNet

                                       Global Production                           Social Collaboration
                                       Portal                                      Purpose: collaboration
                                       Purpose: Transactional                      Technology: SharePoint
                                       Knowledge for reuse                         (MySite),
                                       Technology: SharePoint,
                                       DotNet


                                       SlidePool                                   Wiki
                                       Purpose: Share & review                     Purpose: Document
                                       presentation                                Collaboration
                                       Technology: SharePoint,                     Technology: SharePoint,
                                       DotNet                                      DotNet




                  Highlights of KM deployment in GAA
                  •	 KM strategy, plan, process design, training and support are provided by GAA’s
                    Global KM team which operates out of India.

                  •	 KM is part of a line organization: Process Improvement Management and
                    Production unit (PIM PSU) which drives standardization across GAA

                  •	 Each regional unit or Global Production Centers has a KM coordinator responsible
                    for driving KM performance in the unit

                  •	 Every Global Production Center has a demand manager for ensuring change and
                    enhancement

                  •	 Infrastructure is maintained in India by a technical team which has a strong
                    functional and technical skills

                  •	 Communication is managed through the Internal Communication Team based
                    out of Munich

                  •	 Weekly reporting on KM engagements feeds into all offices of units heads and
                    GAA Head




                                                                                                             17
Siemens IT Solutions and Services




                         •	 There are KM specific roles that are set-up i.e. Subject Matter Experts for
                           each unit and global service areas. These roles are pillars for ensuring quality
                           of knowledge assets in KMS

                         •	 There is a point based system which is interlinked with every knowledge
                           contribution and reuse. So every knowledge transaction gets recognized by
                           offerings points to an individual. GAA has some plans to link these points
                           with a new reward scheme. Policy clearance for the same is being sought




                         KM measurement systems
                         KM promotes a transparent and robust set of metrics around followings


                          KPI Type                                Level of measurement
                                               Individual         Project/       Business Unit       Country
                                                                  Factory         (GPC/CSO/
                                                                                    GTAS)
                          People Engage-
                          ment (KM-PE)
                          KM Process
                          (KM-PR)
                          Process Impro-
                          vement (PI)
                          Financial (Fin)

                          Customer
                          Satisfaction




18
Challenges of KM deployment at organization level
KM has some classical challenges which are often faced irrespective of industry or
organization.	In	addition,	there	are	some	organization	specific	challenges.	Also,	most	
of the challenges associated with KM could be characterized as change management
barriers which are commonly evident in most change situations in an organization.

In GAA’s KM journey which is about one and half year old, there have been many
challenges. Some of them have been overcome and some are still being addressed.




Generating buy-in at middle management
While the top team at the Head Quarter was really bought into the idea of KM, hence
the sponsorship came without much selling. The same was the case with country
leaderships which were quite open to the new initiative based on the experience and
initial success achieved in GPC India.

The challenging part was the mid-level teams which are usually very busy with too
many operational issues. The effect of top level buy-in did not directly percolated
down as expected. Hence intensive dialog started on regular basis. Things began to
change	when	KM	team	could	find	few	promoters	and	advocates	in	each	country	who	
lead as the key change agents. Also, a new role of country KM coordinator (which
was instituted bit late) was instrumental in driving the change. Still in some pockets,
KM performance dashboards are not being paid enough attention. But, it is probably
too early to expect quick turnarounds in the remaining groups of people who are
usual late changers. For sure, the value of many of KM tools and functionalities are
slowly established at organizational level.

The progress so far could largely be attributed to the high visibility provided by the
GAA Head and perseverance shown by local and global KM team.




Driving knowledge process compliance at consultant level
One of the most crucial factors was to involve real knowledge creators of the
organization.	The	commitment	of	the	top	team	did	not	influence	the	behaviors	of	
consultants as much as originally thought. This was true in initial phase but later
things improved with collective efforts of local and global KM team. Country KM SPOC




                                                                                          19
Siemens IT Solutions and Services




                         came into picture a bit late but became effective soon. The point emphasized was
                         that having local owner of the KM deliverables always pays off.




                         Robust measurement system
                         In	initial	phase,	measurement	was	difficult	due	to	unavailability	of	data	from	various	
                         ticketing tool in different projects. Later when more data was made available, things
                         started showing positive trends.




                         Quality consciousness
                         At second level, the issue of having good quality knowledge assets in KMS proved vital
                         to	long-term	credibility.	While,	right	from	beginning	there	were	sufficient	measures	
                         to control quality of solutions (knowledge), maturity of validation process takes some
                         time. The Engineers needed some time to become expert and consistent in approving
                         knowledge assets. There were trainings and re-trainings for them which started
                         showing results. Another factor which worked in favor was effective communication.
                         There were few system related changes i.e. recording each rejection for each Engineer
                         proved helpful. In next stage, system will enable two-way communication and
                         traceability of feedbacks provided to consultants.




                         Effective communication and training
                         Communication through multiple channels i.e. Intranet, Quick News and feedback
                         sessions proved effective. Initial trainings on tools were very helpful.




                         Changing perception of KM being a cost center
                         One of the soft challenges was to change perception that KM is an all-time cost center
                         and	hard	benefits	of	KM	i.e.	productivity	gains	and	savings	will	be	a	far	reality.	There	
                         can	not	be	better	advocate	than	the	real	benefits	which	are	validated	and	published	
                         by commercial teams in each unit. In later stage, above 2000 cases of reuse were
                         reported and they are under validation by KM team before submitting to commercial
                         teams. Once done, this will lend good credibility to the KM program.




20
Success so far
So far the success of KM program could be inferred from the statistics below:



 No.   Indicator of Success           Actual Performance               Remarks

  1.   Employees participating in     Equivalent to about 35%          251 per week
       KM program                     of total workforce in a
                                      given month
  2.   Creation of knowledge assets   About 500 in a month             Average of 100
                                                                       approved K assets
                                                                       in a week
  3.   Reuse trends of knowledge      About 200 in a month             Average of 36 in
       assets                                                          a week

  4.   Total knowledge assets in      8500
       KMS


  5.   Knowledge sharing session      One in a month on
       i.e. webinars                  average with 6% of
                                      workforce participating

                                                        * sample data as per the last week of March 2010




Lately, KM is being showcased to many customers at proposal stage or later.
So far, almost all customers have shown keen interest and expressed willingness
to harness KM for their own service accounts. Recently a global pulp and paper
industry player appointed a knowledge manager for their account which will work
within KM framework of GAA and help customer in managing knowledge in the AMS
engagement. This is a real sign of success when a customer demands for dedicated
KM roles. Now, the endeavor would be to take this beginning to a bigger scale.




                                                                                                           21
Siemens IT Solutions and Services




                         Key Success Factors for KM in Global Application
                         Management
                         Key success factors for KM in GAA have been:

                         •	 Strong commitment and trust by the Head of GAA, Commercial Head of GAA
                           and Head Process Standardization

                         •	 Of late, good support coming in from country heads

                         •	 Parent organization, Global Operations – too promote KM initiative

                         •	 Strong linkage of KM with business objective which helps in generating buy-in
                           from users

                         •	 Consultative approach in arriving at key features of design

                         •	 The role of local (country level) KM responsible is boon

                         •	 Formal set-up of regular and consistent dialogue between global KM team and
                           local country team

                         •	 Initially, top-down communication. Later, effective and all around communication
                           from multiple channels

                         •	 A comprehensive and user-friendly KMS which keeps on getting enhanced
                           regularly. The evolution of the system is an on-going feature. In KM roadmap,
                           there are four defined phases for functional and technological improvements
                           and upgrades

                         •	 KM measurements have been proving very handy in driving engagement




22
Abbreviations
AMS:     Application Management Services

CDP:     Common delivery pool; interchangeably used as Integrated Delivery Model

GAA:     Business division of Siemens IT Solutions and Services which operates
         into AMS

GO:      Global Operations, business division of Siemens IT Solutions and Services.
         GAA is part of GO

GKO:	    Global	Knowledge	Officer	(used	for	GAA)

GPC:     Global Production Centers (back-end entity which produces services)

HQ:      Head Quarter

KM:      Knowledge Management

KMS:     Knowledge Management System

P2P:     People to People learning

PIM PSU: Process Improvement Management and Production Support Unit of GAA

TAT:     Total turnaround time




                                                                                      23
The Author


 Manish Saxena, Global	Knowledge	Officer,	spearheads	
 the Knowledge Management (KM) program for Global
 Application Management (GAA) organization. Manish brings
 with him a rich experience of over 12 years from service
 industries like Telecom and Banking where he was heading
 a KM program for over seven years. Manish actively
 participates in various KM community groups and well
 connected with the international KM practicing fraternity.
 Scholastically, Manish graduated as Chemical Engineer,
 Masters in Business Management, a Chartered Financial
 Analyst	and	a	certified	Black	Belt	in	Six	Sigma	Methodologies.




Siemens AG                                                        Your contact:                       All hardware and software names
                                                                                                      used are brand names and/or
Siemens IT Solutions and Services                                 Siemens AG                          trademarks of their respective
                                                                                                      holders.
                                                                  Siemens IT Solutions and Services
Otto-Hahn-Ring 6                                                                                      © Siemens AG, 2010.
                                                                                                      Right	of	modifications	
81739 Munich, Germany                                             Manish Saxena                       reserved.
Global Info Desk                                                  SIS GO GAA                          08/2010

Tel.: +49-1805-444713                                             130, Pandurang Budhkar Marg
it-solutions@siemens.com                                          Worli, Mumbai 400 018, India
                                                                  Tel.: +91-22-24987000
                                                                  manish.saxena@siemens.com

www.siemens.com/it-solutions

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Integrated knowledge management model for global application management business

  • 1. An Integrated Knowledge Management Model for Global Application Management Business – White Paper – Siemens IT Solutions and Services Executive Summary The Knowledge Management (KM) program at Global Application Management (GAA) is one good example of how a large organization should go about building capability in the area. KM was initiated in a project form at smaller scale to pilot out the feasibility and suitability for the Application management business. Later, it was mapped to meet out strategic business objectives without loosing sight of the actual knowledge needs of the workforce. The development and roll-out was well planned in phases to ensure scheme goes the ‘first time right’. The results of first project in GPC India were used to demonstrate the value of KM to other organizational entities and countries. KM Services offered are combination of pull (self-service) and push services (facilitated transfer) specially designed to meet the needs of consultants. There is a robust measurement system around KM process to ensure all participation and non-adherence gets reported. While the initiative is barely one and half year old in GAA, the early signs of success indicate that change management strategy and plan are on the right track and other process and systemic challenges are addressed appropriately.
  • 2. Siemens IT Solutions and Services Disclaimer The views expressed in the paper can be attributed to Global Application Management as a whole. The paper is based on the current practices and they are subject to change due to policy of the organization. The business scope of the current Knowledge Management deployment is for Global Application Management only. The process indicators are chosen randomly as samples to demonstrate the case in point. Acknowledgements First of all, we would like to acknowledge the efforts of all consultants of Global Application Management who participated in all kind of Knowledge Management (KM) processes. It is their contribution which is being discussed and detailed out in the paper and the whole text is reflecting the point of view of Global Application Management. The thought leadership provided by Mr. Andreas Degenhardt, Head of Siemens IT Solutions and Services – Global Application Management, Mr. Sanjay Vispute, and Mr. Manish Saxena, main author of this text, is one of the defining factors for the KM program. The KM technical team and support team based out of India also deserve huge credit for converting a vision into a real working system. 2
  • 3. Contents Page Executive Summary …………....................................…………….…...............…........... 1 Introduction: Siemens IT Solutions and Services ……..........................................….. 4 Context of setting up Knowledge Management team …........................................... 5 KM value proposition in Global Application Management ....................................... 9 Evolving KM strategy for the organization ..........................................................… 10 Conceptual model and approach to achieve GAA’s KM vision ..............................… 12 GAA’s KM Model ...............................................................................................… 15 Challenges of KM deployment at organization level ……......................................... 19 Success so far ...................................................................................................… 21 Key Success Factors for KM in GAA ....................................................................… 22 Abbreviations ...................................................................................................… 23 3
  • 4. Siemens IT Solutions and Services Introduction Siemens IT Solutions and Services is an internationally leading provider of informa- tion technology solutions and services, offering one-stop shopping for the complete IT service chain – from consulting to systems integration and IT infrastructure management right through to industry-specific IT solutions. As a cross-sector business Siemens IT Solutions and Services supports the Siemens Industry, Energy and Healthcare Sectors that possesses IT. Special focus will also be on fully integrated, industry-specific IT solutions developed together with the Siemens Sectors. What makes Siemens IT Solutions and Services unique? Industry DNA – as the only IT partner embedded within a global integrated technol- ogy company, with a 160 year history of continuous industry leadership, Siemens IT Solutions and Services has an unrivalled knowledge of all the industries and sectors that it addresses. Practical innovation: Siemens IT Solutions and Services with its technical expertise, backed by a strong engineering culture, provides innovation that delivers measurable value to the clients, both in the public and private space. Quality & Commitment – as a service company, with customer satisfaction and contract renewal rates among the very best in the global industry, Siemens IT Solutions and Services has the proven ability to guide the successful transformation of it’s customers’ business processes and operations. Siemens IT Solutions and Services is known for always staying engaged, never walking away from difficulties and delivering on its promises. Global Application Management business Global Operations (GO) is the outsourcing business division of Siemens IT Solutions and Services. GO is further divided into two parts; Infrastructure Services and Global Application Management (GAA) business. 4
  • 5. This paper is based on the experiential learning out of the KM program in GAA business globally which operates into Application Management Services (AMS) space. GAA has five main priorities: • Quality in everything we do • Win new customers • Better collaboration • Foster Standardization and Industrialization • Promote the AMS topic towards the market, internally and to our people Context of setting up a Knowledge Management team “The need for setting up a KM team and systems was felt by top management for multiple business reasons” explains Manish Saxena when coming to speak about how this project came into life. These reasons attributed for having a robust KM system could be distinctly classified in two categories; direct business reasons and the classical problems addressed by knowledge management. The direct business reasons were i.e. growth strategy in market place, improving operational efficiency, driving consistent look and feel within all constituents of the organization and integrate and create one global organization. The other set of classical reasons for setting up KM were to reduce information search time for employees, improve learning curves of new joiners, limit the knowledge drain with outgoing employees, avoid reinvention of the wheel across multiple geographies, improve collaboration among global work- force and last but not least, foster a culture of knowledge centricity and creativity. In AMS business, the global competition is getting fiercer and players are now increasingly emphasizing more on building and sustaining competitive advantages. And, given the nature of the business, source of competitive advantage in long run will be the work-force and their competence as a whole. Andreas Degenhardt points out that luckily GAA was quick to realize the fact and started focusing on systems and processes that help consultants in keeping their knowledge abreast and thereby, become more productive and effective for their customers. The key priorities for AMS business were to generate all round growth from existing customers and by acquiring 5
  • 6. Siemens IT Solutions and Services new customers. “KM has been chosen as one of the several strategic tools to enable growth by sharing best practices of customer acquisition and servicing teams of different countries”, says Andreas Degenhardt. Furthermore KM aims to have one common database of knowledge assets (i.e. enhancements) to promote upselling and cross-selling across verticals and geographies. Another salient feature of GAA strategy was to create a sustainable competitive advantage by having low cost structure. It was proposed to achieve this by having an integrated model of delivery across five production centers to optimize capacity utilization. The cost of operations varied in a broad-band across these global production centers along with the competencies of consultants resolving incidents and realizing enhancements on customer IT systems. Was there any challenge to be faced? “Yes, answers Manish Saxena, the major challenge in implementing an integrated delivery model was the absence of common systems i.e. ticketing tools, diverging processes, documentation practices and exposure to consultants. The consultants were used to work in closed teams interacting within themselves and catering to one client. The proposed model needed to have one consultant working across several projects to facilitate higher capacity utilization.” According to Saxena, the next big challenge faced was to contain the burgeoning cost of operations. Due to the push in last several years for starting new initiative at country level and driving country or region specific approach have led to accumula- tion of fragmented costs. In addition, outsourcing could not be pushed very strongly due to region specific growth model. The management felt the need to consolidate all such initiatives and attempt to synergize. For a long-term competitiveness, it was necessary to contain the operational cost and promote outsourcing in big way. While it started around five years back but real thrust came when the Integrated Common Delivery System was pushed by a central team from HQ. KM was seen as a big enabler for unified delivery model and also a tool to improve productivity of line staff. For the variety of reasons explained in above paragraphs, process standardization took a back seat. This ideally should have been the key differentiator when you eye big conglomerates or global organizations. These players demand common standards of services and processes from all production centers. Hence, KM was thought to be 6
  • 7. serving as a common platform to integrate all knowledge pertaining to processes, people, services and tools. After restructuring, GAA strived to become a well-oiled and synchronized organization in short span of time. Again, the challenge was on connecting minds of people belonging to diverse demographies. The feeling of one GAA irrespective of the country specific incorporation was needed and it was agreed to achieve the same by rolling out common global processes, platform and tools. The organizational culture was the key factor in driving this aspiration. Again, KM was identified as key initiative to help achieve these objectives. The second set of reasons that led to setting up a KM team at corporate level was to address the classical problems identified by KM in any organization. One major challenge in large organization like Siemens IT Solutions and Services GAA was to connect knowledge islands. The challenge was not the unavailability of knowledge but the access to the right knowledge at the time when people need it. Another missing link was the contextual understanding of the knowledge. It all results into huge information search time which otherwise could have been utilized for more productive business purposes. As per the estimates provided by a leading consulting firm, about 92% of the knowledge and information is often found unstructured and resultant information search time for employees could be as high as 35%. One of the focus areas of KM deployment has been to reuse knowledge to the possible extent. In large organizations, reinvention is commonly seen as a source of additional cost which could have been very well avoided just by being well informed. For example; a lead practice i.e. a comprehensive design of the Management Information System for a country could be easily replicated in other countries without investing any time and efforts by other countries. As per a study done by KM practicing organization in India, reuses can save cost up to 70% using a good KM system which shared and disseminate information efficiently. According to Andreas Degenhardt, Siemens IT Solutions and Services GAA is no exception to this thumb rule because of the size and scale. So there lied an opportunity to control the cost by driving reuse of all types of knowledge i.e. transactional knowledge and tacit knowledge. 7
  • 8. Siemens IT Solutions and Services In current scenario, when ample opportunities are available to employees particularly in emerging markets like India, Brazil, Argentina and Russia, the attrition rate was touching all time high. At one point in time (2008), for GAA India annual attrition rate went up to as high as 18%. Of course, later during the subsequent recessionary years, it came below significantly but business volumes too dipped strongly. In such dynamic scenario, it is always beneficial to have steeper learning curves for new joiners so that they could become productive sooner than usual average. This has direct bearing on organizational bottom lines. In this context, KM system plays a vital role. KM systems offer for any new joiners to pick-up learning in selected areas at one’s pace and convenience. More importantly, the dependency on seniors in the system for providing learning to a new joiner is reduced. Another incidental benefit of KM is to make knowledge transfer independent (of course to a limited extent as KM system can never be a replacement of a human mind which captures enormous knowledge) of people who participate in business processes. This is equally true in a scenario when an experienced resource moves out from the current role. In recent times, when workforce is spread in wider geographies, it is all the more necessary to have stronger focus on people to people collaboration. It has been a well established fact that a team which connects at individual level shares more and learns faster from each other than a team which does not have personal connections. This has been the underlying philosophy of social collaboration or also called as social computing. This latest aspect of KM has been a focus of current KM model of GAA. One of the major intended benefits of the KM intervention is to drive a culture of knowledge sharing and reuse. “When knowledge is made available to employees, it also triggers into many improvement ideas”, outlines Saxena. An organization if actively tracks and drives the reuse and further incremental knowledge over the base knowledge, it generally leads to many major or minor improvements. It has been empirically proven that KM programs usually leads into increased tendencies among employees to come up innovative solutions of day-to-day problems. 8
  • 9. KM value proposition in Global Application Management KM systems aim to ensure consistent, efficient, effective and smart services to end-customers by enabling smart work-ways within GAA delivery units. The following table explains the opportunities (potential benefits) available to KM for GAA on the four quadrants of the balance scorecard. Process • Smarter & efficient processes: Adapting best practices. Drive reusage of knowledge • Standardize processes for greater consistency and flexibility • Enable CDP model by offering common source of knowledge and documentation which results into higher flexibility • Avoid reinvention. Quick replication across Global Production Centers (GPCs) Customer • Improve contextual grasp of customer knowledge • Move up from customer satisfaction to customer delight • Improved SLAs and response time. Futuristic solutions • Ensures new joiners adapts faster and thereby reduces impact on delivery to customer People • Learn right things with right speed and ensure financial benefits (P2P learning) • Higher collaboration among teams • High levels of employee engagements • Help get access to Global Subject Matter Experts across GAA Finance • Need to improve operational efficiency (productivity, response time, optimize utilization of resources) • Smart work ways to ensure market growth from existing customers • Enhance chances for cross-selling and up-selling of enhancements 9
  • 10. Siemens IT Solutions and Services Evolving KM strategy for the organization The genesis of KM thought process of GAA lies in urgent business needs as discussed in the previous chapter. KM was first identified as one of the core project under the program “GAA for 2014” initiative in 2008. It started on a small note in global produc- tion center in India. The initial focus had been to capture incidents and their resolu- tion in a database for driving reuse of the same. The intended benefit was to improve productivity of consultants. After around two quarters, the need was felt to have a broader view of knowledge management. It was also planned that a line function will be instituted which will carry forward the work of the project team and enlarge the scope of KM. Subsequently, Global Knowledge Officer (GKO) was appointed. With the advent of the line function, GKO worked out a comprehensive KM roadmap for GAA through a wide-level consultation with GAA leadership and country teams. The document also took the strategic business objectives of GAA (as explained under the value proposition of KM for GAA and its customers) into consideration, the vision of program GAA for 2014 and the knowledge needs of the workforce. The following knowledge needs of GAA employees have been identified to begin the further design of the KMS: Figure 1 Past Resolutions  Capture past resolutions, smart retrieval, stop re-invention Knowledge needs of GAA workforce Project Document  Structured document based collaboration. Prescribed & standard Process &  Top level Process knowledge, operating instructions, Audit, protocols Continuous Improvements Social Collaboration  Encourage People to people connection. Drive sharing & reuse. Measurements  Measure progress, trends. Stay focused. Centralized & Transparent approach Contextual  Help employee get more knowledge; corporate, specialized, Knowledge interests, customer Learning  Ensure learn right things, faster and translate into business benefits. After analyzing all of the three defining factors of KM strategy, the conceptual model was finalized which laid the foundation of basic tenets of KM. The first and foremost, 10
  • 11. a vision for KM has been carved out from the over all vision of GAA: Harness GAAs corporate brain for achieving GAA for Figure 2 2014 Strategic Business Objectives Profitability Proposed KM vision Improve Collaboration. Empower employees with peer‘s knowledge Employee engagement Avoid Reinvention. Quickly Replicate Best Practices Customer intimacy Enable business growth by more resilient employees Innovation Foster a culture of creativity & openness Broad contours of KMS strategy and design GAA identifies KM as one of the four core processes in Application Management framework. The below principles explain the broad contours of the design of the KM program for GAA: • Strongly linked to the GAA’s overall business objectives • Focus on driving culture of sharing and re-use of knowledge • Build GAA’s organizational body of knowledge for long-term advantage • Designed to cater knowledge needs of the work-force • Capture transactional knowledge. Experiential knowledge (tacit and explicit) and external knowledge to meet all-rounds needs of the consultants • Ensures knowledge is provided at the point of need • Offers a combination of pull (self-service) and push (facilitated transfer) services to consultants • Leverage power of communities in ensuring knowledge sharing • Helps to bring several organizational entities closer by providing opportunities of social collaboration and standardized documentation structure • Measure business and financial impact of the reuse 11
  • 12. Siemens IT Solutions and Services Conceptual model and approach to achieve GAA’s KM vision GAA’s definition of Knowledge Management KM is pertaining to a set of activities that ensure knowledge created in all business interactions (i.e. transactions, projects, initiatives, programs and customer interactions) are captured, categorized and stored in GAA’s organizational body of knowledge for future purposes i.e. organizational learning and reusage. KM program will enable people to people learning at individual and organizational level by bringing a cultural change and technology enablement of the knowledge processes about. The aim of KM program will be to harness individual and collective brilliance (knowledge) of workforce and transform the same into GAA’s competitiveness in market place in generating sustainable competitive advantage. There are two conceptual models that outline guiding principles for designing of KM in GAA. Figure 3 Needs of knowledge seekers Provide Context to knowledge Make sense Share & reuse Conceptual model: Knowledge to enable right decisions Enterprise-wide Knowledge Management System  Developments  Relevance  Disseminate  Priorities  Awareness  Business Intelligence  Understanding  Practices  Feedback  Situations  Context  Training  Consequences  Circumstances  Analysis  Distinctions  Events  Meaning  Changes  News Benefits to workforce Risk taking/ Handle business resourcefulness Pragmatism Clarity of purpose collaborate New initiatives ambiguity 12
  • 13. In today’s time, effectiveness of knowledge worker’s is crucial for organizational success. Hence, businesses must enable people to make decisions quickly, effectively and with minimum oversight. Businesses depend on their people for several thing: • to seek relevant information; • to understand loads of information based on situations and surroundings; • to analyze and make sense of information; and • to share and disseminate information so that people know and understand situations, actions, implications and next steps. Therefore, a good KM program should focus on harnessing the tacit knowledge of employees who have best situational awareness. It has been proven by several studies that a well designed and executed KM program would result into enhanced business resilience of employees which is their ability to make right decisions at the respective moments of truth. From the individual employee perspective, six major behavioral characteristics of individuals get impacted due KM to some extent. This is put together defined as business resilience: 1. Pragmatism in overall approach, 2. Resourcefulness, 3. Risk taking ability/ new initiative, 4. Handle business ambiguity smartly, 5. Clarity of purpose, 6. Collaborate. 13
  • 14. Siemens IT Solutions and Services From the methodology and tool perspective, the below KM framework helps in determining the right mix of methodologies to influence people’s sharing and reusage tendencies in the organizational set-up. To Figure 4 tacit explicit Transformation of knowledge from tacit to explicit… Socialisation: Externalisation: tacit Sharing Codification experience documentation From Internalisation: Combination: explicit Individual use Creation of of experience New knowledge Source: The knowledge creating company, I. Nonaka and H. Takeuchi This above knowledge transformation framework forms basis for identifying various methodologies that are explained in subsequent chapters. Socialization Externalization Figure 5 (tacit to tacit) (tacit to explicit) Framework: Transfor-  Communities of practice  Codification of knowledge mation of knowledge  DOJO  GAA taxonomy / folksonomy  Social collaboration  Documentation  Share Problems  Idea contest Internalization KM Combination (explicit to tacit) Portal (explicit to explicit)  Experience sharing  Sharing among GPCs  Success stories  Measuring variation among GPCs  What went wrong – stories  Benchmarking ( internal / external)  Adopt new knowledge 14
  • 15. GAA’s KM Model The KM program offers three services. First, pull services (self-service) – contribute & retrieve knowledge as and when one’s need it. Second, push services (facilitated transfer of knowledge) driven by the need of the organization. And, third, community exchange where peers and experts join hands to discuss and share knowledge. Employees Figure 6 The enterprise portal of GAA and global Push Pull KM Team production portal are the two gateways to Transactional all these services Self-service Facilitated Knowledge (IT Transfer of Databases Enabled) knowledge GAA- Business Insights GAA’s library Network & Personalized community Employee service Collaboration Document GAA Enterprise Knowledge Collaboration Portal Campaigns Self-service Facilitated Community (IT Transfer of Events Enabled) knowledge Pull Push KM Team Employees 15
  • 16. Siemens IT Solutions and Services Portfolio of KM tools and functionalities at GAA Siemens being a large conglomerate, a well integrated organization which cut across multiple sectors and geographies, and also being a pioneer in technologies and research and development has a huge legacy of management information systems. Some of them are really world-class and classify as knowledge management systems. Therefore, it was decided to harness existing tools and functionalities which are relevant for AMS business and integrate GAA specific tools with legacy systems in order to maximize returns on investments and avoid duplications. The current portfolio of general and GAA specific tools appears as below: GP Portal  S olution DB  G P P ortal Figure 7 Transactional, Tacit, Explicit Past Resolutions Knowledge needs of  AMF  S lideP ool GAA workforce Doc-Central Project Delivery, CSO, T&T, BP  Doc -C entral  QMS Document AMF  As k E xpert  My R atings Process & Business Process, WBT Change How We Work Together protocols QMS Social Templates, Standard, Audits Collaboration  G A A P ortal  T R AiL Social Computing  P ers onal P rofiles Measurements P2P Learning, Communities  T raining  C ommunity Contextual Context  MIS Knowledge Corp., Production, Customer  T ec hnoW eb  ibid Learning Learning  R es earc h  L ibrary Skill-upgrade, Soft & tech. These tools are being rolled out to global production centers; Customer service organization and hybrid model (Delivery Competency Centers). 16
  • 17. Glimpse of the Live KM Systems GAA Portal Customer Project & Purpose: Information Unit Collab. base Figure 8 Dissemination Purpose: knowledge Live KM Systems Technology: SharePoint, about customer & units DotNet Technology: SharePoint, DotNet Global Production Social Collaboration Portal Purpose: collaboration Purpose: Transactional Technology: SharePoint Knowledge for reuse (MySite), Technology: SharePoint, DotNet SlidePool Wiki Purpose: Share & review Purpose: Document presentation Collaboration Technology: SharePoint, Technology: SharePoint, DotNet DotNet Highlights of KM deployment in GAA • KM strategy, plan, process design, training and support are provided by GAA’s Global KM team which operates out of India. • KM is part of a line organization: Process Improvement Management and Production unit (PIM PSU) which drives standardization across GAA • Each regional unit or Global Production Centers has a KM coordinator responsible for driving KM performance in the unit • Every Global Production Center has a demand manager for ensuring change and enhancement • Infrastructure is maintained in India by a technical team which has a strong functional and technical skills • Communication is managed through the Internal Communication Team based out of Munich • Weekly reporting on KM engagements feeds into all offices of units heads and GAA Head 17
  • 18. Siemens IT Solutions and Services • There are KM specific roles that are set-up i.e. Subject Matter Experts for each unit and global service areas. These roles are pillars for ensuring quality of knowledge assets in KMS • There is a point based system which is interlinked with every knowledge contribution and reuse. So every knowledge transaction gets recognized by offerings points to an individual. GAA has some plans to link these points with a new reward scheme. Policy clearance for the same is being sought KM measurement systems KM promotes a transparent and robust set of metrics around followings KPI Type Level of measurement Individual Project/ Business Unit Country Factory (GPC/CSO/ GTAS) People Engage- ment (KM-PE) KM Process (KM-PR) Process Impro- vement (PI) Financial (Fin) Customer Satisfaction 18
  • 19. Challenges of KM deployment at organization level KM has some classical challenges which are often faced irrespective of industry or organization. In addition, there are some organization specific challenges. Also, most of the challenges associated with KM could be characterized as change management barriers which are commonly evident in most change situations in an organization. In GAA’s KM journey which is about one and half year old, there have been many challenges. Some of them have been overcome and some are still being addressed. Generating buy-in at middle management While the top team at the Head Quarter was really bought into the idea of KM, hence the sponsorship came without much selling. The same was the case with country leaderships which were quite open to the new initiative based on the experience and initial success achieved in GPC India. The challenging part was the mid-level teams which are usually very busy with too many operational issues. The effect of top level buy-in did not directly percolated down as expected. Hence intensive dialog started on regular basis. Things began to change when KM team could find few promoters and advocates in each country who lead as the key change agents. Also, a new role of country KM coordinator (which was instituted bit late) was instrumental in driving the change. Still in some pockets, KM performance dashboards are not being paid enough attention. But, it is probably too early to expect quick turnarounds in the remaining groups of people who are usual late changers. For sure, the value of many of KM tools and functionalities are slowly established at organizational level. The progress so far could largely be attributed to the high visibility provided by the GAA Head and perseverance shown by local and global KM team. Driving knowledge process compliance at consultant level One of the most crucial factors was to involve real knowledge creators of the organization. The commitment of the top team did not influence the behaviors of consultants as much as originally thought. This was true in initial phase but later things improved with collective efforts of local and global KM team. Country KM SPOC 19
  • 20. Siemens IT Solutions and Services came into picture a bit late but became effective soon. The point emphasized was that having local owner of the KM deliverables always pays off. Robust measurement system In initial phase, measurement was difficult due to unavailability of data from various ticketing tool in different projects. Later when more data was made available, things started showing positive trends. Quality consciousness At second level, the issue of having good quality knowledge assets in KMS proved vital to long-term credibility. While, right from beginning there were sufficient measures to control quality of solutions (knowledge), maturity of validation process takes some time. The Engineers needed some time to become expert and consistent in approving knowledge assets. There were trainings and re-trainings for them which started showing results. Another factor which worked in favor was effective communication. There were few system related changes i.e. recording each rejection for each Engineer proved helpful. In next stage, system will enable two-way communication and traceability of feedbacks provided to consultants. Effective communication and training Communication through multiple channels i.e. Intranet, Quick News and feedback sessions proved effective. Initial trainings on tools were very helpful. Changing perception of KM being a cost center One of the soft challenges was to change perception that KM is an all-time cost center and hard benefits of KM i.e. productivity gains and savings will be a far reality. There can not be better advocate than the real benefits which are validated and published by commercial teams in each unit. In later stage, above 2000 cases of reuse were reported and they are under validation by KM team before submitting to commercial teams. Once done, this will lend good credibility to the KM program. 20
  • 21. Success so far So far the success of KM program could be inferred from the statistics below: No. Indicator of Success Actual Performance Remarks 1. Employees participating in Equivalent to about 35% 251 per week KM program of total workforce in a given month 2. Creation of knowledge assets About 500 in a month Average of 100 approved K assets in a week 3. Reuse trends of knowledge About 200 in a month Average of 36 in assets a week 4. Total knowledge assets in 8500 KMS 5. Knowledge sharing session One in a month on i.e. webinars average with 6% of workforce participating * sample data as per the last week of March 2010 Lately, KM is being showcased to many customers at proposal stage or later. So far, almost all customers have shown keen interest and expressed willingness to harness KM for their own service accounts. Recently a global pulp and paper industry player appointed a knowledge manager for their account which will work within KM framework of GAA and help customer in managing knowledge in the AMS engagement. This is a real sign of success when a customer demands for dedicated KM roles. Now, the endeavor would be to take this beginning to a bigger scale. 21
  • 22. Siemens IT Solutions and Services Key Success Factors for KM in Global Application Management Key success factors for KM in GAA have been: • Strong commitment and trust by the Head of GAA, Commercial Head of GAA and Head Process Standardization • Of late, good support coming in from country heads • Parent organization, Global Operations – too promote KM initiative • Strong linkage of KM with business objective which helps in generating buy-in from users • Consultative approach in arriving at key features of design • The role of local (country level) KM responsible is boon • Formal set-up of regular and consistent dialogue between global KM team and local country team • Initially, top-down communication. Later, effective and all around communication from multiple channels • A comprehensive and user-friendly KMS which keeps on getting enhanced regularly. The evolution of the system is an on-going feature. In KM roadmap, there are four defined phases for functional and technological improvements and upgrades • KM measurements have been proving very handy in driving engagement 22
  • 23. Abbreviations AMS: Application Management Services CDP: Common delivery pool; interchangeably used as Integrated Delivery Model GAA: Business division of Siemens IT Solutions and Services which operates into AMS GO: Global Operations, business division of Siemens IT Solutions and Services. GAA is part of GO GKO: Global Knowledge Officer (used for GAA) GPC: Global Production Centers (back-end entity which produces services) HQ: Head Quarter KM: Knowledge Management KMS: Knowledge Management System P2P: People to People learning PIM PSU: Process Improvement Management and Production Support Unit of GAA TAT: Total turnaround time 23
  • 24. The Author Manish Saxena, Global Knowledge Officer, spearheads the Knowledge Management (KM) program for Global Application Management (GAA) organization. Manish brings with him a rich experience of over 12 years from service industries like Telecom and Banking where he was heading a KM program for over seven years. Manish actively participates in various KM community groups and well connected with the international KM practicing fraternity. Scholastically, Manish graduated as Chemical Engineer, Masters in Business Management, a Chartered Financial Analyst and a certified Black Belt in Six Sigma Methodologies. Siemens AG Your contact: All hardware and software names used are brand names and/or Siemens IT Solutions and Services Siemens AG trademarks of their respective holders. Siemens IT Solutions and Services Otto-Hahn-Ring 6 © Siemens AG, 2010. Right of modifications 81739 Munich, Germany Manish Saxena reserved. Global Info Desk SIS GO GAA 08/2010 Tel.: +49-1805-444713 130, Pandurang Budhkar Marg it-solutions@siemens.com Worli, Mumbai 400 018, India Tel.: +91-22-24987000 manish.saxena@siemens.com www.siemens.com/it-solutions