|
|
| Leading
companies pursue KM to achieve and sustain world-class performance. For
some, the value of KM is unquestionable and long-term. Others make expectations
explicit and quantify achievements. |
| Depending
on which value discipline the enterprise pursues, some examples of expected
and realized benefits from KM are: |
|
When
pursuing Customer Intimacy:
|
- Increased
orders and proposal acceptance from having more knowledgeable
sales and marketing people -- by transferring mental models and perspectives
that exceptional performers use to all practitioners.
|
- Higher
customer satisfaction
leading to greater customer loyalty, less sales and marketing cost
per dollar sold, and greater market penetration by providing better
service to customers with individual requirements -- made possible
by pooling knowledge among team members and having instant access
to expert networks.
|
- Greater
market penetration and profit margins
with individualized product specifications and customer service --
achieved by obtaining and acting on in-depth knowledge of product
use in customer environments and effects on customer profitability
and success.
|
|
When
pursuing Product Leadership:
|
- Higher
quality products
leading to higher value to customers and better market acceptance,
with greater profitability and enterprise viability -- resulting from
better transfer of knowledge from outside sources and new educational
programs that provide wider horizons and general understanding in
designers and marketing people.
|
- More
innovative and advanced products
that open up new market niches with increased sales to increase net
income per share -- by fostering personal innovation, increased sharing
of knowledge between marketing, manufacturing, and product development,
and a new research agenda.
|
|
When
pursuing Operational Excellence:
|
- Less costly
products and services result in higher net profit -- resulting
from increased benchmarking and greater sharing of best practices
between different groups and inside and outside the organization.
|
- More
timely product deliveries,
reduced inventories, less rework, and greater customer satisfaction
-- by increasing craftspeople's and foremen's knowledge of their own
and adjacent processes.
|
- Greater
product consistency
leading to reduced operating costs -- from increased knowledge by
all employees of the effects of product variations on customer requirements,
sales, and enterprise profitability.
|
| _____________________________________________________________________ |
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- The Value of
Effective
Knowledge Management
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| ©
2005 Knowledge Research Institute, Inc. |
