business under pressure knowledge management helps

April 29th, 2010

© 2010 Baker Hughes Incorporated. All Rights Reserved.

Business Under Pressure

Knowledge Management Helps Companies Meet With Economic Challenges and Reorganization

Mary Jensen

© 2009 Baker Hughes Incorporated. All Rights Reserved.2

Topics of Discussion

•Baker Hughes, The Company

•Knowledge Management –Baker Hughes‟ History and Culture

– How it all started

– How it is changing with the organization

– Where we are

•Success Stories

•The Focus of Baker Hughes‟ Knowledge Management

•Take Aways

7.185

9.027

10.428

11.864

9.664

$0

$2

$4

$6

$8

$10

$12

$14

'05 '06 '07 '08 '09

Baker Hughes At a Glance

Revenue ($ Billions) 2009 Revenue (By Region)

Products & ServicesDrilling and Evaluation

Drill BitsDrilling SystemsLogging-while-drillingWireline ProductsFormation Evaluation Services

Completion and ProductionWell Completion TechnologiesArtificial Lift Systems

Fluids and Chemicals

Drilling FluidsProduction Chemicals

Reservoir Development Services

By the Numbers…12 months ending December 31, 2009

2009Revenue from ~90 countries $9,664 M

Operating Income $732 M

Income from Continuing Operations $421 M

$1.36 / share

Total Assets $11,439 M

Total Debt $1,800 M

Employees over ½ outside the US 34,400

Origins


KM Forum• Established in 1999 with the

support of the COO

• Cross-divisional boundaries; all product centers represented

“Knowledge Management has emerged as a major force in the marketplace.”

Knowledge Management at Baker Hughes

Value Propositions

• Find the right people, process, or technology

• Find the right knowledge quickly

• Enable collaboration and teamwork

• Leverage the value of ourcommunities

• Learn faster

• Provide knowledge to our customers

• Make better decisions

Knowledge Management Journey

E-Business

KM Systems

2002 2003 2004 2005 2006 2007 2009

BakerHughesDirect

Interchange

Public Website

Rogue BHIWebsites

Eliminated

Division Intranets

EnterpriseContent Migration

CommonLook & Feel

WellLink

CustomerE-Procurement

All Divisionson BHD

PeopleLinkContent Management Search

LearningManagement

Content Management

“Always-On”Redundancy

SupplierE-Procurement

Single Source providing services to employees, customers and others. Security, personalization and content management processes shared. All are available via the Internet.

MySAP Portal

Updated Interface

Well DataManagement

2008 2010

KnowledgeWorkSpace

GISSolutions

ESS/MSS

Local Sites

WellLinkExpanded

Communities of Practice

2011

UpdatedInterface

BHI Enterprise Portal

CustomerCollaboration ONE Glossary

PublicWeb

An Upward Journey…


…on the KM Maturity Model

2000 2006 2008 201020042002

KM NEEDS

Changes to the Environment


From 2009 Letter to Stockholders

Improved Customer Focus:Moving to a Geomarket Model

Strategic Acquisition for Advancing Competitive Position

Reorganization – Changes to the KM Model


Initial Geo Model – More Relationships & Complexity

Sales

Operations

Geo 1

Geo 2Geo 3

Geo X

Geo 1

Geo 2Geo 3

Geo X

Technology Technology R&D

F&C

C&P

D&E

?

EARC

Sales

LA

MEAP

NA

EARC

Operations

LA

MEAP

NA

Technical Support Technology R&D

Old Product Line Model – Operational Model

Re-Org &

Change

Change Mandates Evaluation…


…Growth is up to us!

2000 2006 2009 201020042002

EnterpriseTools

Economic PressuresKM NEEDS

Acquire BJ

Services

KM Axioms at Baker Hughes - Sustainability

•Focus on the Desired Outcome

•Strong Governance

•Enterprise Support

•Single Source

•Easy to Use

•Self Service

•Extensible & Reusable


People

Process

Technology

People – Core Values – Culture of Collaboration

Integrity:


Performance:

Teamwork:

Learning:

• We believe teamwork leverages our individual strengths.• We expect everyone to actively participate on the BHI team.

• We openly communicate up, down, and across the organization.

• We value the diversity of our workforce.

• We willingly share our resources.

• We work hard, celebrate our successes and learn from our failures.

• We learn from sharing past decisions and actions, both good and bad, to continuously improve performance.

• We improve by benchmarking and adopting best practices.

• We believe integrity is the foundation of our individual and corporate actions that drives an organization of which we are proud

• We are honest, trustworthy, respectful and ethical in our actions.

Key Processes BHI KM

• Communities of Practice

• Knowledge Discovery

• Enterprise Content Management

• Learning


Knowledge

Locate and leverage

internal assets,

knowledge, and content

management systems

Collaboration

Share information

through common sites,

host discussions, and

enable users to

virtually connect

Communication

Maintain a connection

and share updated

news/events with

members

Expertise Location...


White and Yellow Page Information

…Self Service applications keep information fresh

Collaboration


Communities of Practice

Governance Councils

Project Teams

Community Resources

Knowledge Capture

Marketing Analysis & Collaboration

Cultural tendency facilitated by easy to use tools

80% of all employees use Knowledge WorkSpaces

every month

16

Enterprise Portal

GEO

Value - adding

Storefronts

Electronic

Catalogs

IndustryIndustry

Exchange(sExchange(s ) )

or Clientor Client

SystemsSystems

CustomersCustomers

&&

EmployeesEmployees

TotalTotal

RecallRecall

RigLinkRigLink

BOTBPC HCCBHDF CLIFT INTEQ

BakerHughesDirectBakerHughesDirect

Content DeliveryContent Delivery

Content

Management

Value - adding

Storefronts

Electronic

Catalogs

IndustryIndustry


or Clientor Client

SystemsSystems

IndustryIndustry


or Clientor Client

SystemsSystems

Customers,

Suppliers&&

EmployeesEmployees

WellLink DS

RigLinkRigLink

BOTBPC HCCBHDF CLIFT INTEQBOTPSBPCGEO HCCF(N)BHDFGEO CLIFTPS INTEQF(N)

BakerHughesDirectBakerHughesDirect

Content DeliveryContent Delivery

Content

Management

Content

Management

We

bM

eth

od

s

LD

AP

Au

ton

om

y

TotalTotal

RecallRecall

RigLinkRigLink

LiveWire

WellLink RT

BPCW NetWeaver

Role Based – Personalized - Customizable

A Single Place to go for Information

An Enterprise Search and Find Solution

„Enabling the right people toquickly and efficiently find the right answers and information‟

Actionable Information

Expertise

Web & Document

Content

Applications

An enterprise search is different than a web search….pulls together structured and

unstructured content from across the organization while

maintaining permissions

Re-Org &

Change

Sustaining the Focus…


…to build success!

2000 2006 2009 201020042002

EnterpriseTools

Economic PressuresKM NEEDS

Acquire BJ

Services

Success: Governance


Division A

Division B

Division C

Lesson: Governance and Centralized Support are the foundation for success

Success: Expertise Locator

•Self Service Expertise Locatorsupports rapid organizational changes


Lesson: Self Service Applications are agile

PeopleLink Yellow Page Modifications

Through Mar '10

85.1% 84.6%

71.9%

95.5%90.1%

80.0%

89.7% 90.6%93.5%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

BA BHDF BHI BOT BPC BSS CEN HCC INT

Success: HS&E Groups Come Together


Lesson: Provide processes and tools that facilitate the business objectives

Knowledge WorkSpace

Employees

Content Management System Enterprise

PortalAll Employees

Knowledge Artifacts ContentManagement

Global HS&E Collaboration

Success: Knowledge WorkSpace


The Middle East -Leveraging Wikis

• Encompassing Operations to Marketing and Development

• Creating Wikis for every area and field

• BHI is able to capture details and assist the region in building their knowledge

Lesson: Easy to use tools encourage adoption

Success: Reusable Capabilities


• Consolidated Facility Information and Contracts by Region

• Vendor Management

• Improved Contract Negotiations

• $ $ $ Cost Savings

Embracing the Model –In Support Functions

Lesson: Reuse and extensibility improve efficiencies

Searching New Sources of Knowledge

Success: Collaborative Partnering

• Support of Financial Outsourcing

• Partner Company

• Global Distribution

• Rapid Deployment


Lesson: Partnering allows us to focus on our core competencies

FASST Project

Lesson: Our core technologies facilitate our partnering

Success: BJ Merger

Collaboration - Preparing


Portal Access – Communication, Tools, Culture - Knowledge

Expertise Location

Lesson: Leverage robust technologies to keep the focus on the People and Process

Success: Center of Excellence

Lesson: Focus on the outcomes you want to achieve

People

Process

Technology

Information

Opportunity

Expertise

By The Numbers

• 100 percent of employees have updated White Page information; over 80% have updated their Yellow Pages

• 85% of employees utilize the Enterprise Portal and 80% use the Collaboration Tools on a monthly basis

• The portal hosted 859,219 global sessions for customers and employees last month

• Employees make 13,000 expertise searches daily


KM Opportunities for Moving Forward

• KM is a key component on linking Markets and Technologies

• Technical Support

• Reconnecting People

• Efficiencies in connecting BJ Services


Focuses within Baker Hughes KM Today


Communities

Promoting

Tool Updates

Simple Processes

Engage New Champions in Governance

Take Aways

•Governance and Centralized Support are the foundation for success

•Self Service Applications are agile

•Provide processes and tools that facilitate the business objectives

•Easy to use tools encourage adoption

•Reuse and extensibility improve efficiencies


•Leverage robust technologies to keep the focus on the People and Process

•Focus on the outcomes you want to achieve


Questions and Answers

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