| © Copyright 2006 Maxil Technology Solutions Inc. All | | | | easier to work with a KPM partner when looking for a |
| Rights Reserved. | | | | customized solution, or when implementing an internal |
| Whitepaper | | | | solution.Continuous Improvement—KPO involves |
| Knowledge Process Management—addresses | | | | delegating aspecific high-end process or task to a third |
| specific client needsthrough customized domain | | | | party. However, with a KPM partner, the domain |
| expertise | | | | experts close the loopbetween the client and the |
| Raj Kosaraju | | | | vendor by providing recommendationsfor improvement, |
| The US, the UK, and other Western European | | | | identify debilitating bugs, providingideas on architectural |
| countries are facing a shortage of highly trained and | | | | improvements, as well as helping the client foresee |
| specialized professionals in various | | | | future needs, thus allowing the company to maintain a |
| knowledge-intensive high-skill sectors. And, the problem | | | | competitive edge.Knowledge Assets—Intangibles |
| is only expected to worsen.During the last decade, an | | | | such as cross platformvertical exposures and industry |
| increasing number of North American and European | | | | standard quality paradigms such as Six Sigma are |
| companies have successfully outsourced select | | | | indispensable if a company is tomaintain its competitive |
| Business Process Operations,allowing them to save on | | | | advantage. Information technologies cannot distribute |
| capital and operational expenses. This success in | | | | human intelligence. A central repository of data is |
| costreduction, while improving quality has encouraged | | | | useless unless people utilize and access the |
| many firms to start off-shoring their high-end | | | | information.Even then, the static data loses its |
| knowledge work.However, as companies evolve, not | | | | relevance unless the right people update and add to |
| only do their IT strategies change but theirbusiness | | | | the existing knowledge base.Supply Chain |
| processes also evolve in the quest for operational | | | | Management—Domain expertise is the differentiating |
| excellence. Such companieswill look for vendors who | | | | factor in solving supply-chain problems because you |
| provide an integrated outsourcing model specific to a | | | | need to understand industry-specific business |
| particular domain to achieve continuous improvements. | | | | processes and practices. Organizations want solutions |
| It is in this area, that Knowledge Process Management | | | | to address their business problems and they want the |
| (KPM) will play a critical role. KnowledgeProcess | | | | people who walk in the door to know their |
| Management (KPM) is a structured set of knowledge, | | | | business.Knowledge Transfer and Process |
| related tothe organizational experience in a given | | | | Diversification—KPM enables an organization to align |
| domain or set of domains.What Is KPO?Knowledge | | | | the right people with the right job, at the right time, at a |
| Process Outsourcing (KPO) is the trend of off shoring | | | | fraction of a cost.Identify gaps and domain knowledge |
| high-end knowledge intensive businessprocesses to | | | | needsThe KPM Framework ©Library repository |
| low wage destinations that require significant domain | | | | Acquire domain knowledgeStore and |
| expertise. The central theme of KPOis to create value | | | | organizationdomain knowlegeShare domain |
| for the client by providing business expertise.What Is | | | | knowlegeCreate new domain knowledgeDiscovery of |
| KPM?Information Week describes Knowledge | | | | existing domain knowledge Use application domain |
| Management as "the process of capturing a | | | | knowledgeKPM MethodologyKPM combines domain |
| company'scollective expertise wherever it | | | | expertise across several verticals to create |
| resides—in databases, on paper, or in people's | | | | industry-specific knowledge basesand repositories. This |
| heads—and distributing it to wherever it can help | | | | sharing, reuse and retention of knowledge leads to |
| produce the biggest payoff."Socio-Cultural and | | | | continuous improvement andexpansion of the |
| Organizational ComponentsTechnology | | | | organization's products and services as well as |
| KPM focuses on and building strengths in | | | | accelerated project implementation.Central to the KPM |
| specializeddomains such as pharmaceuticals, | | | | methodology is the assessment and the |
| biotechnology, finance, engineering design, etc.KPM | | | | process-based knowledge map. Thesetechniques help |
| builds on KPO, taking process management astep | | | | organizations identify their strengths, weaknesses, |
| further. KPM offers the client a completely integrated | | | | knowledge gaps and critical business functions. This |
| solution by using specialized domain expertise.What | | | | helps the organization improve resource allocation, |
| Does KPM Offer Beyond KPODomain | | | | while identifying priorities.KPM AssessmentThe KPM |
| Experts—Companies are realizing the importanceof | | | | assessment evaluates the strengths and weaknesses |
| having specialized professionals such as | | | | of an enterprise's knowledge processesto create a |
| accountants,scientists, economists etc., spanning | | | | KPM-driven solution.The intent of this assessment is to |
| various verticals, toensure continued quality | | | | identify opportunities for performance improvements |
| enhancements. Technologies suchas databases, can | | | | across the enterprise.Opportunities for improvement |
| store all the data imaginable, but theycannot store the | | | | extend across organizational lines and cover |
| logic and analytics needed to make sense of that | | | | managerial, operational, social, and technological issues |
| data.Identification of Knowledge Gaps—KPM | | | | that are interrelated.Through a KPM assessment, an |
| companies utilize domain experts across multiple | | | | unbiased understanding of the company's business, |
| verticals, which allow themto identify pain areas within | | | | vision, strategies, operation, and strengths and |
| their specialized industry, through constant interaction | | | | weaknesses are developed.Two critical components |
| with customers and industry experts.Knowledge | | | | to a KPM assessment are:• Involvement of key |
| Repository—KPM organizations possess domain | | | | senior resources• Reuse of corporate assetsThe |
| experts who build libraries, containing information of | | | | rapid pace of a KPM project and its short duration |
| present and past projects relating to that area of | | | | mandates reuse. Reusable assets (listed here)expedite |
| specialization. This enables clients to access a rich | | | | the delivery of KPM while minimizing risk.• Reuse of |
| repository of knowledge that would takes years to | | | | knowledge assets, such as technical templates, |
| build.Centralized Place for all Project | | | | business templates, process templates, and package |
| Data—Companies cannot treat project management | | | | software• Reuse of skills with an industry and a |
| as isolated, linear plans. Underestimatingthe importance | | | | technology focus• Reuse of process assets, |
| of collaboration among all resources,a centralized | | | | including methodology, task structure and work plans, |
| project management information site andintegrated | | | | metrics, techniques and iterative deliveryHow the |
| project components can result in staggering budget | | | | operational aspects, social systems and technological |
| overruns. KPM offers a single business management | | | | aspects of KPM are bound together and leveraged to |
| solution in one centralized place for all project | | | | achieve maximum customer satisfaction is the true |
| data.Retention and Reusability of Knowledge—Since | | | | focus of KPM. |
| all knowledgeis retained in a repository, clients find it | | | | |