1

Global Knowledge Management Trends

Rory L. Chase

Managing Director, Teleos

2

MAKE Methodology

• Delphi research methodology

• Panel of experts consisting of senior executives and KM/IC experts

• Three rounds of consensus-building to identify the MAKE Winners

– Round 1: Nominations

– Round 2: Finalists

– Round 3: Winners

3

MAKE FrameworkEight Knowledge Performance Dimensions

• Creating an enterprise knowledge-driven culture

• Developing knowledge workers through senior management leadership

• Delivering knowledge-based products/services/solutions

• Maximizing enterprise intellectual capital

4

MAKE FrameworkEight Knowledge Performance Dimensions (continued)

• Creating an environment for collaborative knowledge sharing

• Creating a learning organization

• Delivering value based on customer knowledge

• Transforming enterprise knowledge into organizational wealth

5

Most Admired Knowledge Enterprises (MAKE) Framework ©Teleos

6

Global MAKE Finalists

Region 1998 2007

Asia 2 (04%) 12 (24%)

Europe 9 (20%) 12 (24%)

North America 33 (74%) 18 (36%)

South America – 1 (2%)

Global1 (02%) 7 (14%)

7

Global MAKE Winners

Region 1998 2007

Africa – –

Asia – 4 (20%)

Europe 4 (20%) 4 (20%)

North America 16 (80%) 8 (40%)

South America – –

Global– 4 (20%)

8

2007 Asian MAKE Winners

Astra International

Eureka Forbes

Honda Motor

Infosys Technologies

Larsen & Toubro ECD

Samsung Advanced Instituteof Technology

Samsung SDS

Satyam Computer Services

Singapore Airlines

Sony

Tata Consultancy Services

Tata Steel

Toyota

Westpac Banking Corporation

Wipro Technologies

(in alphabetical order)

9

2007 European MAKE Winners

BP

British Broadcasting Corporation

Ericsson

Mondragon Cooperative Corporation

Nokia

(in alphabetical order)

Norsk Tipping

Novo Nordisk

Rolls-Royce

Royal Dutch Shell

SAP

10

2007 North American MAKE Winners

Air Products

APQC

Caterpillar

Fluor

Google

Hewlett-Packard

IBM

Microsoft

Raytheon

US National Aeronautics & Space Administration

(in alphabetical order)

11

2007 Global MAKE Winners

Accenture

Apple

BP

British Broadcasting Corporation

Ernst & Young

Fluor

General Electric

Google

IBM

Infosys Technologies

Intel

McKinsey

Microsoft

Nokia

Royal Dutch Shell

Samsung Group

3M

Toyota

Wikipedia

Wipro Technologies

(in alphabetical order)

12

Global MAKE WinnersBusiness Sectors

• 9 Winners – Computer Hardware, Software & IT Solutions

• 6 Winners – Professional Services/Consulting

• 5 Winners – Electronics and Electrical Manufacturing

• 4 Winners each – Oil & Gas Exploration and Services

13

Global MAKE WinnersBusiness Sectors (continued)

• 3 Winners each – Diversified Manufacturing; Financial Services; Motor Vehicle Manufacturing; Networking Equipment; Pharmaceuticals

• 2 Winners – Chemicals; Internet Searching Services & Portals

• 1 Winner each – Construction and Engineering; Consumer Products; Media; Mining & Mineral Extraction; Public Sector; Retail; Semiconductors & Equipment

14

KM/IC Metrics

Metrics used by MAKE researchers:

• Total Shareholder Return

• Return on Equity

• Return on Assets

• Return on Revenue

• Market Capitalization

• Value Added

• Brand Value

• R&D Expenditure

15

Knowledge Metrics

Metric 2007 Global MAKE Top 500 Company

Winners Median

Total Return to

Shareholders (1996-2006) 22.4% 11.0%

Return on Assets (2006) 12.8% 3.7%

Return on Revenues (2006) 13.6% 6.4%

16

MAKE Winners’ Scores

Knowledge Dimension Asia Europe N. America

Organizational Culture 7.94 7.85 8.25

Knowledge Leaders 7.91 8.04 7.76

Innovation 7.90 7.98 8.01

Enterprise Intellectual Capital 7.75 8.10 7.86

Collaboration 7.82 7.86 8.03

Organizational Learning 7.84 8.14 8.02

Managing Customer Knowledge 7.73 7.71 7.66

Transforming Knowledge into Wealth 7.87 8.57 7.89

17

Global KM Trends

• Asian, especially Japan, European and North American organizations are facing leadership challenges in developing knowledge workers

• Organizations in all parts of the world now view innovation capability as an essential core business competency

• Many Asian and North American organizations are failing to match the intellectual capital capabilities found in their European counterparts

• Effectively managing customer knowledge is becoming an urgent priority for a growing number of global organizations

18

Global KM Trends (continued)

• Companies in countries such as Brazil and China are switching their focus from traditional quality and cost marketing approaches to more intensive knowledge-driven business strategies

• By the year 2012, there will be 3-5 global leaders in each of the major business sectors

• Wikipedia represents a new type of Global MAKE Winner, where individuals participating in global communities create, deliver and use knowledge products and services

19

20

Global Knowledge Management Trends

Rory L. Chase

Managing Director, Teleos

E-mail: teleos@mac.com

Website: http://www.knowledgebusiness.com