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DaimlerChrysler KM Strategy
K6201 - KM Foundations-Group 3August 2011
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traditional market
Why Chrysler KM?
new markets
need stretch!
1990s
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traditional market
Why Chrysler KM?
new markets
•different client•different product•need scale•need speed
1990s
Focus 1
Focus 2
dilemma
•traditional clients•need preserve standard•increased competition
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Why Chrysler KM?
pressure
But in 1970-80s
•plant closures•staff lay-offs•budget cuts•shrinking engineering
Techincal
Reports
Institute of
Engineering
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Why Chrysler KM? •need go for new
markets•with weakened engineering•under increasing competition
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Why Daimler KM?
1990s
•Stagnating demand for luxury cars•5.7bln loss•Lexus and Co push into the luxury market•Non-traditional distribution and sales -Internet
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Why Daimler KM?
1990s
Failed diversification attempt + huge losses
A-class ( Swatchmobile)
M-class SUV
aerospace
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Daimler KM initiativeNo formal
structure
Learning champions failureLearning champions did not know what type of data, info, knowledge was useful to practitioners
Established the Daimler Corporate University
Germany's tradition of vocational training provided provided a built-in structure for the exchange of tacit knowledge from one generation to the next
Instruct top executives in strategic thinking and other executive skills
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Everybody else is doing it so why can’t we?
1998
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KM at Chrysler
1. How to map corporate knowledge and make it explicit and accessible?
2. How to make knowledge buckets talk to each other?
3. How to capture the knowledge being produced?
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KM at Chrysler
Design Div.
Sales Div.
Procurement Div.
Manufacturing Div.
Engineering Div.
heavy teams
platforms
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KM at Chrysler: 3 Steps. 1 – Restructure & Make Knowledge Bucketsplatforms Small
carsLarge cars Minivans Jeeps Trucks
Adv.Veh.Engineering
Body
Chassis
Electrical/Electronic
Interior
Powertrain
Scientific Labs
Vehicle Development
Program Management
Energy Management
Thermal
Know
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KM at Chrysler: 3 Steps. 1 – Restructure & Make Knowledge Buckets
Knowledge bucket
Product DBs
CAD/CAMManucafturing,Procurement,Supply data
Vehicle Test data
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KM at Chrysler: 3 Steps. 2 – Tech Clubs
platforms Small cars
Large cars
Minivans Jeeps Trucks
Adv.Veh.Engineering Tech Club 1
Body Tech Club 2
Chassis Tech Club 3
Electrical/Electronic Tech Club 4
Interior Tech Club 5
Powertrain Tech Club 6
Scientific Labs Tech Club 7
Vehicle Development Tech Club 8
Program Management Tech Club 9
Energy Management Tech Club 10
Thermal Tech Club 11
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KM at Chrysler: 3 Steps. 3 – Engineering Book of Knowledge (EBOK)
Tech Club1
Tech Club5
Tech Club2
Tech Club3
Tech Club4
Tech Club n
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KM at Chrysler: 3 Steps.
- Skill in discovering niche markets
- Skill in developing products rapidly
- Innovations ( minivan, SUV)
3 Steps
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Daimler Chrysler mergerWho brings what?
North American market
Flexibility & Innovation
3D modeling
Upscale segment of North American, European and Asian markets
High-class engineering skills
Crash simulation
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Daimler Chrysler mergerKnowledge merging - PMI
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Daimler Chrysler – KM initiatives1) KM initiatives are driven by market situation, generally: a disaster makes think faster
2) KM initiatives require understanding & support on top level3) KM initiatives require combination of 3 aspects: a) specific human interactions,
b) organizational and conceptual “places” to work on knowledge assets
-c)IT tools to connect data, info, knowledge and people
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Daimler Chrysler – KM initiatives
KM initiatives require combination of 3 aspects
KOL
Matrix organization
Special
Interest
groups EBOK
TechClubKnowledgeBuckets & platforms
Lotu
s Not
es
Issue
Resolution
Teams
PMI program
CoP
Knowledgedomains
Wel-
Kom
Booz-Allen Chrysler Daimler Chrysler Daimler
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