Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Impact of Globalization and Knowledge Management

Within High Tech Manufacturing Environment

Junaid Nasir

Dublin Software Lab, IBM Ireland

Abstract
This paper seeks to investigate the process of knowledge transfer. Management in High-Tech
I.T. Organisations is addressing the issue of knowledge sharing due to their growing awareness
of the importance of knowledge to organisational success. To manage and measure knowledge-
based resources is one of the most important challenges for the modern organizations.

It is widely claimed that knowledge has succeeded capital as the most important production
factor. More and more knowledge is built into products and making the most of the
organization’s intellectual assets is a major, if not the most important, key to competitiveness.
Therefore, Knowledge Management has evolved during the past few years as the next big
management school and more and more companies are starting Knowledge Management
programs.

Background
With the excessive downsizing and striping organizations of their core assets during the 1980’s
and 1990’s, “Knowledge often walked out the door during downsizing” (Davenport, Prusak).
As organizations began to realize these lost assets, they set out to focus on managing their
current and future Knowledge Assets. Increasingly, organizations are setting out to explicitly
manage the knowledge assets, and seeking to leverage the know-how, experience and judgment
resident within, and in many cases outside of the organization. Renewed interest in the area of
knowledge management has emerged in the last ten years in the form of an increased focus on
the dynamics of knowledge creation and sharing in Organisations. This has been most apparent
in the rise in prominence of research and consulting practices revolving around Knowledge
Management (KM) and Intellectual Capital Management (ICM). “According to a study of 500
European marketing directors from financial services, insurance, banking, and telecom
companies, 66 percent claim that inaccurate or incomplete data has negatively affected their
company's profitability.” (By Lisa Picarille, 7th July, 2003 Edition - SAS Institute Inc.)

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Introduction
For centuries Craftsmen have been passing down their trade over periods of many years down
to their apprentices, this being the only method of passing their years of experience down to
others. Philosophers in their own right for centuries have been searching for the key to
knowledge creation and generation. It is only however in the past two decades that Knowledge
has become such an important topic for human behavioral research and business. Withstanding
Environmental and Globalization pressures comes change. The new economy companies are
unique.

Leveraging of an organization’s know-how is viewed as imperative for continued success. To

some extent, this has always been the case and there are no surprises in the above statement.
Knowledge and Information are the two most powerful competitive advantages of this era. The
creation and management of knowledge has become a central concern to businesses and
management, both as a source of value and opportunity to achieve and sustain more competitive
advantage. Knowledge is different from data, information or analytics in that it can be created
from any one of those layers, or it can be created from existing knowledge using logical
inferences.

Knowledge Management
The Knowledge Management (KM) area has become so diverse over the past ten years as
researchers have begun to investigate not only the mechanics of knowledge creation and
transfer but also of social and cultural issues that are of importance in understanding this topic.
KM is the process of leveraging and utilizing the vast, untapped potential of both implied and
documented knowledge to achieve optimal performance, both are equally important for
improving performance. Knowledge Management enables businesses to exchange and optimize
the knowledge and experience. "Knowledge Management caters for the critical issues of
organisational adoption, survival and competence in face of increasingly discontinuous
environmental change. Essentially, it embodies organizational processes that seek synergistic
combination of data and information processing capacity of information technologies, and the
creative and innovative capacity of human beings" (Malhotra 1997).

Increased realization of knowledge as the core competence (Prahlad & Hamel 1990), coupled
with recent advances in information technology such as intranets and the World Wide Web, has
increased organizational interest in the topic of knowledge management. Examples of known
knowledge management initiatives include Andersen's Knowledge Xchange, Booz Allen &
Hamilton's Knowledge On-Line, CAP Gemini's Knowledge Galaxy, Ernst & Young's Center
for Business Knowledge and Monsanto's Knowledge Management Architecture. (Dr. Yogesh
Malhotra - August 17, 1997, Philosophy of Information Systems Mini-track)

Knowledge Management Drivers

“Knowledge management was born from a marriage of organizational learning; the backlash,
but recognized importance of, process thinking as typified in business process re-engineering;
and the onslaught of information sources from the Web and e-mail. This Planning Assumption
deals with the drivers that will influence the future of KM and does not analyze the current state
of its practice.” (Daniel Rasmus - -- Knowledge Management Watch 2000: Influences and
Trends, May 08, 2000) The virtualization of organizations is forcing enterprises to find new
ways to collaborate with partners, suppliers, advisors and others, not just for the sake of
knowledge transfer, but as a core integration process for the development and delivery of goods

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

and services. Virtualization is also causing a re-evaluation of the relationships between

employees and intellectual capital, leading to the knowledge brokering markets and expertise
profiling in Web-based collaboration tools where teams and companies can seek talent from non
employees on a temporary basis over the Web. Other influences include mergers and
acquisitions; geographic reach of markets and sites; continued pressure on cycle times for
product and service delivery; innovation, learning and process development; and the
consolidation around core competencies that is driving outsourcing and partnerships (see Fig.1)
Figure – 1 Knowledge Management Drivers

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. S o u r c e : G ig a In f o r m a t io n G r o u p F ig u r e 1

Why Knowledge Management is Necessary

Knowledge management is necessary for companies because what worked yesterday may or
may not work tomorrow. Considering a simplistic example, companies that were manufacturing
the best quality of buggy whips became obsolete regardless of the efficiency of their processes
since their product definition didn't keep up with the changing needs of the market. The same
holds for assumptions about the optimal organization structure, the control and coordination
systems, the motivation and incentive schemes, and so forth. To remain aligned with the
dynamically changing needs of the business environment, organizations need to continuously
assess their internal theories of business for ongoing effectiveness. That is the only viable
means for ensuring that today's 'core competencies' do not become 'core rigidities' of tomorrow.

Knowledge as Resource for Sustained Competitive Advantage

Knowledge Management is quite closely related to an earlier management concept, namely the
Resource-Based View of the Firm. In this view sustained competitive advantage is seen to come
from within the firm rather than solely from the firm’s relationship and interactions with its
external competitive environment. This view builds on the work of Edith Penrose, in the 1950’s,
who viewed the firm as both an administrative organization and a collection of productive
resources, both human and material. The knowledge of the firm, whether residing in humans or
in more material forms, is clearly one of its greatest assets and most valuable resources. (Edith
Penrose: The Theory of Growth of the Firm, Basil Blackwell- 1959)

Prahald and Gary (1990) were at the forefront of this resource-based school in their writings on
the core competence of the corporation. They described the core competencies as being the
collective learning in the organization, and made the important observation that unlike physical
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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

assets, competencies do not deteriorate as they are applied and shared but are enhanced and they
grow. (Prahald, C.K. And Hamel, Gary (1990), The Core Competence of the Corporation,
Harvard Business Review, May - June)

“The firm’s resources and capabilities are divided into four categories namely Financial,
Physical, Human and, Organisational. The human resources include all the experience,
knowledge, judgment, risk-taking wisdom of individuals associated with a firm. Barney
proposes that a firm’s potential for sustained competitive advantage will then depend on the
value, rareness and inimitability of these resources and, most importantly, the extent to which
the firm is well organized to exploit them.” (Jay Barney (1995), Looking Inside for Competitive
Advantage, Academy of Management Executive, Vol.9 No.4.)

Manufacturers shift gears to share knowledge with partners

Technology has enabled businesses to transmit data with ever-increasing efficiency, but moving
physical goods has proved less tractable. The growing pressures of e-commerce, just-in-time
manufacturing and deregulated transport make eliminating bottlenecks, inventory problems and
errors increasingly important.

First, the standardization of Web servers and browsers allowed businesses to publish
information online. Then, standardization around e-commerce enabled simple Web transactions
– another significant step forward. More recently, integrating online applications with
customers' internal systems has created a new range of e-business possibilities. In this fast-
moving, highly competitive marketplace, companies must respond quickly to unpredictable
events such as changes in demand or sudden unavailability of supplies.

The more complex a finished product, the more likely it is to contain materials from far-away
suppliers. A supplier and a retailer may not even know of each other's existence, as each deal
mainly with intermediates.

Historically, companies have responded to this uncertainty by maintaining "just-in-case" levels

of inventory at every link in the supply chain, tying up capital and slowing the flow of goods.
The Japanese firm and the "traditional" US firm have different inter-firm knowledge systems; in
particular, Japanese firms tend to exchange information more frequently with their main
suppliers, customers and other kinds of organizations (i.e. non-profit organizations). As a result,
they tend to develop new products and processes faster than the "traditional" US firm. Shows
that non-Japanese high-technology firms that adopt Japanese-style networks tend also to
develop new products and processes faster than their competitors. (Elsie L. Echeverri-Carroll -
Journal of Knowledge Management; 03: 4 1999)

Tacit and Explicit Elements of Knowledge

This area is closely linked with the area of knowledge transfer and generation. Nonaka and
Takeuchi highlight these two elements of knowledge as they discuss the different attitudes of
knowledge creation that exist between East and West. They tell us that western society does not
recognize the complexity of knowledge and it is for this reason that many of their Knowledge
Management systems are nothing more than Information Management systems and thus fail to
deliver what the organizations expects. Their definitions of the two are quite similar to those of
many others:

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

“Explicit knowledge can be expressed in words and numbers, and easily

communicated and shared in the form of hard data, scientific formulae,
codified procedures, or universal principles”

“Japanese view knowledge as being “Tacit”. Something not easily visible and
expressible… Tacit knowledge is highly personal and hard to formalize,
making it difficult to communicate or share with others.

“Tacit knowledge is deeply rooted in an individual’s actions and experience,

as well as in the ideals, values, or emotions he or she embraces”

The KM challenge lies in the efficient use of existing knowledge via a conversation or
transformation of knowledge object to an explicit and shareable state. The solutions proposed to
achieve this objective can be summed up as “revised socio-technical systems” which
incorporates both information technologies and social/cultural changes. The western approach
concerns itself with “the idea of capturing knowledge gained by individuals, embedding it in the
organization’s information systems and spreading it to others in the organization” The KM
imperative can be read as an attempt to convert knowledge into a tangible form controlled by
Organisations. In this respect it can be seen to reflect an overriding managerial instrumentalism.
“Knowledge can and should be evaluated by the decisions or actions to which it leads”. The
goal of commercial knowledge is not truth but effective performance: not “what is right” but
“what works” or even better “what works better” where better is defined in financial and
competitive contexts.” (Davenport T.H. & Prusak, L. (1998) Working Knowledge: How
Organisations Manage What They Know, Boston, Harvard Business School).

The classification of knowledge is another noteworthy aspect of Western approaches to KM. In

seeking to define discrete, relatively stable types of knowledge, the literature emphasizes on an
analysis which is essentially taxonomist in nature.

Emergence of New Management Role in Managing Knowledge Worker

Tapping into employees’ knowledge is a familiar role for all managers. Managers of I.T.
Organisations are aware of the issues faced by them in management. Even a couple of years
managing rather than doing leaves you out of the loop. This is true in other fields as well. As the
volume of knowledge grows year after year and specialization increases, more and more of us
find ourselves in this situation. Managers increasingly have to manage knowledge they don’t
understand. This is forcing management to review and rethink the assumptions about
supervision. Managers have new roles in addition to that of manager: those of teacher, scout,
and keeper of the flame. Sharing decision making has many obvious benefits to the
Organisations – more knowledgeable decisions, faster ones, happy employees. This increases
the likelihood that knowledge workers will stay with the company, and it is a way to better use
the organization’s intellectual capital. (Horbie Frances – 1999, “Managing Knowledge
Workers: New Skills and Attitudes to Unlock the Intellectual Capital in Your Organization”)

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Seven Knowledge Levers

The table below shows domains of the business where the knowledge dimension can be used as
a strategic lever, either to add value to products and services or to improve organisational
performance. (David J. Skyrme and Debra M. Amidon, Business Intelligence (1997).Creating
the Knowledge-based Business).
Table – 1 Seven Knowledge Levers

Lever Key Activities Example

Developing deep knowledge sharing
Steel case - an office products manufacturer has totally redefined
relationships. Understanding the needs
Customer its market into knowledge worker productivity through opening
of your customers' customers.
Knowledge a customer knowledge channel from its product end-users into its
Articulating unmet needs. Identifying
R&D.
new opportunities.

Improving knowledge flows between Toshiba collects comparative data on suppliers ranking 200
Stakeholder suppliers, employees, shareholders, and quantitative and qualitative factors. It has an active supplier’s
Relationships community etc. using this knowledge to network and association where knowledge is shared and
inform key strategies. suppliers are integrated into future strategies.

Systematic environmental scanning,

Business including political, economic, Smith Kline Beecham have evolved a virtual library that delivers
Environment technology, social and environmental market updates, patent information and a wealth of externally
Insights trends. Competitor analysis. Market sourced material to the desk tops of its research scientists.
intelligence systems.

Price Waterhouse is typical of several consultancies that have

Knowledge sharing. Best practice
knowledge databases to allow sharing of company knowledge. In
Organizational databases. Directories of expertise.
addition to the KnowledgeViewSM they have knowledge centers
Memory Online documents, procedures and
that provide human analysts and navigators. It helps them solve
discussion forums. Intranets.
customer problems faster.

Embedding knowledge into business CIGNA made their best underwriting knowledge available as
Knowledge in
processes and management decision guidance screens in their computerized underwriting processes.
Processes
making. This helped them turn a loss into a profit.

Knowledge embedded in products.

Knowledge in Campbell Soup's "Intelligent Quisine" (IQ) delivers weekly
Surround products with knowledge e.g.
Products and packages of nutritionally designed, portion controlled meals to
in user guides, and enhanced
Services those suffering hypertension or high cholesterol.
knowledge-intensive services.

Knowledge sharing fairs. Innovation Tetra Pak Converting Technologies has learning networks,
Knowledge in workshops. Expert and learning where people from across the organization, pool, update and
People networks. Communities of knowledge develop their expertise in key technologies such as laminating
practice. and printing.
Source: Business Intelligence

Through the research of KM practices in the U.S., Gartner Group, have found that Knowledge
Capital is embedded in the enterprise's intangible assets (Gartner Group-GG). GG suggests that
Knowledge Capital includes intangible assets like brand image (particularly for very influential
companies, such as Coca-Cola or Microsoft) as well as Intellectual Capital. Intellectual Capital
includes the knowledge of employees; data and information about processes, experts, products,
customers and competitors; and intellectual property such as patents or regulatory licenses.
They have worked out the ratio of intangible assets (the incremental value of market
capitalization over book value) to tangible assets for various companies, and based on that
suggested strategies for KM.

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

The 'Hi-Tech Hidebound' Syndrome

Knowledge Management solutions characterized by memorization of 'best practices' tend to
define the assumptions that are embedded in information databases. Interestingly, such
embedded assumptions also get programmed in the organization's strategy, reward systems and
resource allocation systems. The hardwiring of such assumptions in organizational knowledge
bases may lead to perceptual insensitivity of the organization to the changing environment.
Institutionalization of 'best practices' may facilitate efficient handling of routine, 'linear,' and
predictable situations during stable or incrementally changing environments. However, when
this change is discontinuous, there is a persistent need for continuous examination and renewal
of the basic premises underlying the 'best practices' stored in organizational knowledge bases.

The dominant conception of Information Technology enabled Knowledge Management is

constrained by the very nature of the knowledge creation processes. Specifically, the extant
mainstream notion of such inquiring systems has given sparse attention to:

the dynamic and continuously evolving nature of knowledge,

the tacit and explicit dimensions of knowledge creation,
the constructive nature of knowledge creation.

These issues are not meant to be mutually exclusive or comprehensive; however they highlight
some of the limitations inherent in the current techno-centric conceptualizations of knowledge
management.

Given the increasingly wicked nature of the organizational environment, there seems to be an
imperative need for consideration of the subjective human sense-making interpretations. Such
human sense-making processes can provide the multiple, diverse, and contradictory
interpretations based on information in computer databases. The role of such processes seems
relevant in ensuring that the organization is doing the right thing, in contrast to the optimization
based predictive models that focus on doing things right. In a survey conducted by Ernst and
Young International Ltd., of 431 companies world-wide, 54% or respondents indicated that
creating a knowledge culture was the biggest obstacle to setting up successful knowledge
management programs. (Webb, Dave, “Corporate Culture Blocks Use of Knowledge”,
Computing Canada, Willowdale, Sept 1 1998)

"The future is moving so quickly that you can't anticipate it...We have put a tremendous
emphasis on quick response instead of planning. We will continue to be surprised, but we won't
be surprised that we are surprised. We will anticipate the surprise." (Dr. Yogesh Malhotra -
March, 1999, Knowledge Management for Organizational White-Waters: An Ecological
Framework)

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

IBM offerings in Knowledge Management field

IBM delivers best of breed solutions to customers on a global scale, leveraging thought
leadership from the Knowledge and Organizational Performance Forum to deliver breakthrough
consulting and implementation around 'the future of work.' IBM Lotus architects its products
with globalization in mind from the very outset.

Lotus Learning Management System

The Lotus Learning Management System is available in 15 EMEA languages and is enabled in
another 10 languages. This means the help, documentation and user interface are translated, as
well as the numerous reports generated by the Learning Management System.
In addition, the Lotus Learning Management System has been. Software products that are
"enabled" are in English but have been engineered to run on foreign-language-based operating
systems such as Windows 2000. This means that companies can install and use the English
Lotus Learning Management System on an operating system in another language and that the
product is fully enabled to allow input and output, display, and sorting for the other language or
locale. The Lotus Learning Management system was designed from the start to be implemented
in a multilingual environment. Supporting Unicode, the Lotus Learning Management System
allows multilingual data to be stored in a single database, making the global deployment
possible in many languages simultaneously without much efforts.

Lotus Quickplace
Lotus QuickPlace helps teams communicate and collaborate, allowing them to achieve their
goals quickly and efficiently. Along the way, a QuickPlace can accumulate a great deal of
valuable information and it provides limited document management functionality, although
these features are not its primary purpose. Fully Translated version of Lotus Quickplace 3.01 is
available in 12 EMEA languages.

Lotus QuickPlace Architecture

QuickPlace is the answer for team collaboration. It provides a tool that allows project managers
to assign tasks and monitor the progress of each. It also offers a team calendar (not to be
confused with the Domino calendar), that shows upcoming events affecting the team.
QuickPlace also gives you simple workflow management. It is easy to use, allows instant access
to users on the Web, and lets you customize it to fit your organization's needs.

Sooner or later most teams eventually go on to other projects—as they meet their objectives and
members are needed elsewhere. When this happens, the QuickPlace may no longer be a center
of high activity, but it may still contain important documents of use to future teams. This is
where Dom.Doc comes into play; you can enhance the ability to manage QuickPlace content by
using Domino.Doc, the solution to document management. Due to the highly customizable
nature of both Domino.Doc and QuickPlace, these two standalone products can be integrated,
using QuickPlace's toolkit and the Domino.Doc API.

Lotus Domino Document Manager (Dom.Doc)

Domino.Doc is a document management system that runs on Domino. It allows users to save a
variety of types of documents directly from their desktops to a central Domino.Doc server. This
can be done through three different clients: Notes, a Web browser, and the Explorer client.
Virtually all Domino.Doc server code is provided through the templates that make up a
Domino.Doc library infrastructure.

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Domino.Doc Architecture
Domino.Doc 3.5 client and Domino.Doc 3.1 server have now been certified to run on Notes and
Domino 6, client and server. Domino.Doc is a flexible, out-of-the-box document management
system that is easy to deploy and that can be tailored to meet your specific needs. It is designed
as an enterprise document management system built on top of the Domino platform.
Domino.Doc provides library services for documents, such as document profiling, version
control, check-in/check-out, collaboration, and security. These services allow Domino.Doc to
be put to a wide variety of uses, for example a repository for Web content management for an
Internet site.

The Domino.Doc storage paradigm is based on a hierarchical model with the library serving as
the main entry and navigation point. This is where administrators can define who has access to
the system and at what level. The security levels within Domino.Doc are Manager, Editor, Draft
Editor, Reader, and No Access. Users are prompted for a login and password to be
authenticated by the system.

A file cabinet consists of a binder database and one or more document databases. The binder
database stores information about the binders including all the binder metadata. It also contains
the links to the various document databases referenced by the binder. The document database
contains information about the documents including all the metadata, the attachments, and the
various views used to display the documents. Metadata within the database is stored in
subforms that can be customized to your needs using Domino Designer. There are various ways
for you to customize Domino.Doc. The Domino.Doc API is a Win32 application and can be
instantiated from LotusScript, C++, and Visual Basic.

QuickPlace and Domino.Doc integration

We have briefly described the value of both QuickPlace and Domino.Doc as individual
products. However, the ability to integrate the two provides you with the benefit of managing
your fast-growing QuickPlace content, using Domino.Doc as your archive repository. The
information generated by a QuickPlace should not be lost once the QuickPlace is no longer
actively used. Instead, there may be a great deal of value in recycling this content by storing it
for future retrieval. Domino.Doc can be the storage repository and can serve as the means
through which your QuickPlace documents are published to your portal, intranet site, and
elsewhere in your corporation. Adding workflow and publishing capabilities to documents in
Domino.Doc gives you the flexibility to fully leverage your document management tools.

Lotus Workflow
Lotus Workflow, formerly known as Domino Workflow, is a stand-alone application
development tool that works on top of Domino to provide our customers with the ability to
develop, manage, and monitor all their business processes and help them eliminate the
downfalls of paper-based work. A key component in the Lotus' e-Business and Knowledge
Discovery strategy, Lotus Workflow is in the business of improving organizational
effectiveness and internal business processes for companies. Fully translated Lotus
Workflow3.0 versions are available in 10 European languages.

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Lotus Workflow Architecture

Lotus Workflow builds on your developers ’existing knowledge of IBM software products such
as IBM Lotus Notes ®and Lotus Domino as well as other Lotus products. Fast integration with
IBM Lotus Domino.Doc ®, IBM Lotus Sametime ®, IBM Lotus QuickPlace ™ and Notes
®applications helps improve productivity and save time.

Lotus Workflow extends the workflow capabilities of Domino to provide the most powerful
workflow management system available. Mission-critical workflow applications can now be
supported and maintained, rolled out across the enterprise, and quickly modified as processes
evolve. By providing point-and-click tools and reusable object libraries for routing rules, role
assignment, deadline handling, and task automation, even complex processes can be automated
with little or no programming.

Lotus Workflow 3.0.1 is now certified for Lotus Notes and Domino 6 and ready for Workflow
applications deployment. Lotus Workflow 3.0 includes alternate name support "out of the box."

IBM Lotus Extended Search

IBM Lotus Extended Search 4.0 easily integrates search into e-business applications to find all
the information needed from one intuitive interface. IBM(R) Lotus(R) Extended Search is a
scalable, server-based technology that searches in parallel across many content and data
sources, returning aggregated query results into a Web application.

Unlike many products that allow you to search a specific type of data, Extended Search allows
you to enter a single request from a web browser and search potentially thousands of data
repositories, the Internet, and for people with expert knowledge at the same time. These
repositories can be of varied content and structure and, like the experts with whom you need to
collaborate, they might be geographically dispersed throughout the world. Fully Translated
version of IBM Lotus Extended Search is available in 19 EMEA languages.

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Capabilities of IBM Lotus Extended Search

• Many popular web search sites and news sites.

• Mail systems, such as those managed by Lotus Notes ® and Microsoft Exchange Server.
• Document management systems, such as IBM DB2 Information Integrator for Content databases.
• Relational databases such as IBM DB2 ®, Oracle, Microsoft SQL Server, Microsoft Access, and other
databases that comply with Open Database Connectivity (ODBC) standards.
• Full text indexes, such as those created with IBM WebSphere ® Portal, Domino Domain Index, Microsoft
Index Server, and Microsoft Site Server.
• Lotus repositories, including Notes databases, Domino.Doc ® libraries and cabinets, Lotus QuickPlace
™ places, and Lotus Discovery Server knowledge maps (K-maps).
• Instant messaging systems, such as Lotus Sametime ®. This feature enables to direct queries to
knowledgeable persons, not just searchable data repositories.
• Lightweight Directory Access Protocol (LDAP) directories, such as those managed by IBM SecureWay ®
Domino LDAP Server, and Exchange LDAP Server.
• File systems - text files stored on any local or network drive if they are not compressed or encrypted.

IBM Lotus Discovery Server

IBM Lotus Discovery Server is the most comprehensive knowledge server for e-business users
today. Search or browse for information and subject matter experts from multiple locations,
collaborate with colleagues instantly, increase knowledge sharing and decrease time spent
looking for needed resources - all from a web browser.

And now with Lotus Discovery Server 2.0.1 includes improvements in the "abilities," like
enhanced deployability, manageability, extensibility, usability, reliability and performance.
IBM Lotus Discovery Server application framework diagram is shown below.

Source: IBM Software Group

Some key benefits are mentioned below:

• Search and find answers fast while avoiding information overload.

• Identify documents, people and places with a single search across your entire organization.
• Capture and quickly catalog information and intellectual assets to avoid duplicate work.
• Identify experts for collaboration on demand - to improve decision cycle times and leverage skills across
departmental and geographical boundaries.
• Reduce knowledge loss from personnel turnover
• Help new employees understand your company's resources more quickly.

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Worldwide Market Growth

As companies adopt knowledge management programs and move through the planning, review,
and implementation stages of their programs, there will be an increase in the demand for
knowledge management services. The total worldwide knowledge management services market
will increase at a compound annual growth rate (CAGR) of 51%, resulting in a market of over
$10.2 billion by 2004 (see Table 1).

It is important to note that IDC is focusing on discrete knowledge management initiatives and
does not include knowledge management that is a secondary component of other projects.
Figure – 2 Worldwide and U.S. Total Knowledge Management Services Spending, 1998 and 2004 ($M)

Source: IDC, 2000

IDC assumes worldwide and U.S. revenue will grow as companies move from the planning and
review stage of their knowledge management programs toward implementation. Once
implementation begins, knowledge management programs will start with small pilot programs
and expand over time. The United States is leading the knowledge management market, with
the non-U.S. regions lagging by one to two years.

Once success stories are publicized, many companies will begin to plan and implement
knowledge management programs. IDC expects the U.S. market to be larger than the non-U.S.
market until 2004. In 2004, knowledge management initiatives in non-U.S. regions will have
gained popularity, and spending will surpass levels in the United States. In 1999, the United
States accounted for 62% of overall knowledge management spending, while it will account for
only 47% in 2004 (see Figure 1).
Figure - 3 Worldwide Knowledge Management Revenue by Region, 1998-2004

Source: IDC, 2000

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

The non-U.S. knowledge management market consists of Western Europe, Canada,

Asia/Pacific, and the ROW. Of this group, Western Europe accounts for the largest share of
knowledge management revenue. The concept is just getting off the ground in Asia/Pacific,
with Australia and New Zealand accounting for the majority of the activity, although Korea is
beginning to show interest.

At present, IDC includes Japan in Asia/Pacific and Latin America in the ROW because of the
limited amount of knowledge management activity in the regions. Although knowledge
management is gaining momentum in Japan, its slow climb is due to the hierarchical business
culture of Japanese business. Latin America shows little knowledge management activity, but
IDC expects activity to increase with improvements in the infrastructure and economic
environment.

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Major Market Drivers

Some of the major Macro & Micro Drivers for the acceleration of knowledge management in
today’s global environment are discussed below:

Macro-Drivers
eBusiness and the Internet
The primary driver for knowledge management is ebusiness. Companies are being inundated
with data while being forced to make quicker decisions in response to a rapidly changing
business climate and heightened customer expectations. Knowledge Management offers
companies a means to create value out of their data and allow employees to make better-
informed decisions to serve the customer.

Globalization
As companies expand their operations around the world, the need to effectively share resources
and leverage experience across boundaries becomes critical. By storing, filtering,
contextualizing, and distributing structured and unstructured data while offering the ability to
track experts within an organization, knowledge management is the glue that can keep a
company operating efficiently in a global economy.

Mergers and Acquisitions

With companies expanding through mergers and acquisitions, there is a growing challenge to
consolidate operations and share resources across industry, regional, and cultural borders. As in
globalization, knowledge management offers an efficient process to accomplish these tasks.

Deregulation
Deregulation of utilities, particularly the telecom industry, is a critical driver, particularly in
Western and Eastern Europe, because it will promote the entrance of new providers into the
market and drive down prices. As prices fall for local phone calls, Internet usage will grow and
cause an increase in ebusiness. To effectively manage the higher volume of information and
create a customized buying experience online, companies will need to implement knowledge
management programs.

Micro-drivers
Revenue and Profit Growth
As companies become enamored with new technology, they often run the risk of overlooking its
practicality and instead focus on the bells and whistles. The result is wasted time and money
that could have been invested more wisely, thus positively affected the bottom line. With
knowledge management, companies appear to have learnt from their past mistakes and are
approaching the concept with an eye towards how a knowledge management solution can make
a business more profitable. This change is primarily due to corporate management taking an
active role in leading knowledge management efforts.

Retention of Key Talent and Expertise

The United States' healthy economy has created a tight labor market, presenting companies with
the challenge of finding ways to keep their employees and/or capture the expertise that
employees take with them when they walk out the door. By capturing this expertise through a
knowledge management solution that may include communities of practice and best practices,

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

companies are not only covered when an employee leaves but they are also capable of getting a
new employee up to speed quickly in a new position, creating a positive work environment.

Customer Retention and/or Satisfaction

The business environment continues to become more competitive with globalization, mergers
and acquisitions, and the speed of information flow. As a result, the viability of a business will
hinge on its ability to increase customer satisfaction and grow the customer base. Knowledge
management lends itself to this goal because it emphasizes getting the right information to the
right people at the right time in order for them to make informed decisions.

Defense of Market Share against New Entrants

Defending against new entrants is a constant challenge faced by all businesses, and the
challenge will continue to grow with globalization and acquisitions. With this increased threat,
Organisations will have to develop a competitive advantage in order to survive. Knowledge
management offers such an advantage by allowing employees to be more productive, resulting
in the potential to gain market share against less sophisticated competition.

Penetration of New Market Segments

With the rise in globalization and mergers and acquisitions, companies are not only penetrating
new markets but are also developing Organisations that span the globe. The challenge in
developing this type of organization is leveraging the widespread resources. Knowledge
management is a useful tool in this environment because it promotes sharing and lets
Organisations leverage their human capital.

Major Market Growth Inhibitors

In order to develop a successful knowledge management program, management needs to
understand and manage a program in relation to the people and culture of an organization.
Based on IDC's findings, the five main inhibitors that companies encounter when implementing
a knowledge management program include the following:

1. Lack of understanding of knowledge management and its benefits

2. No time for knowledge management among employees
3. Lack of skill in knowledge management techniques
4. Sharing not encouraged by current company culture
5. Lack of incentives and rewards for sharing knowledge

In order to address these challenges, it is critical that change management and process design be
primary components of a knowledge management initiative. Over time, management must
develop and continue to support a culture of sharing through ongoing training and educational
programs. By doing so, the shared culture will become sustainable, and leadership will be
pushed down to lower management levels.

Redesign of Processes and Operations

In putting a knowledge management program into place, Organisations often need to restructure
their operations to enhance knowledge flow and sharing. For example, if a company wants to
improve the productivity of its sales force, it may need to change the means in which price
changes reach sales and marketing to ensure the representatives have the most up-to-date
information as soon as possible. The ability to restructure is particularly important in ebusiness,
where speed and accuracy are critical to provide an enhanced purchasing experience. As a

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result, vendors that have experience in providing these services will have an advantage in
generating new business. For employees to participate in a knowledge management program,
incentives need to be in place to motivate participation. The incentives can include ties to
compensation and / or other types of perks such as extra vacation days. Because the
establishment of a sharing culture is so critical to the success of a knowledge management
program, incentive program development should be a visible component of a vendor's product
mix.

Leadership Preparation (Mentoring)

A knowledge management program will not be successful without effective leadership from
corporate and functional area management. Corporate management may not be involved in the
day-to-day management of the program, but it is critical for the employees to understand that
corporate management supports the knowledge management initiative and expects a maximum
effort from the employees. Preparation for the functional area management will also be critical
because they will be responsible for developing buy-in within their areas. If this group does not
believe in the knowledge management program, then the benefits will not be communicated
effectively, and the program will fail.

As knowledge management continues to gain momentum, the competitive landscape will

change as customers demand to see a proven track record of success by the service and software
vendors. Customers will be more conservative in their decision making and will require
demonstrable measures such as ROI for their programs. Vendors able to effectively understand
and prepare for this market shift will have a competitive advantage. From an industry
perspective, knowledge management programs can be developed for any type of business, but
those involved in the service industries most commonly embrace these programs.

Industries that have become involved in knowledge management and that will provide
opportunities to vendors include Business services, Communications, Discrete manufacturing,
Financial-services, Government departments.

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 Impact of Globalization and Knowledge Management within High Tech Manufacturing Environment

Conclusions
Organisations are being forced to consider the options that will help them gain a competitive
advantage against their competition and grow profits as a result of e-business, globalization,
deregulation, and the merger and acquisition environment. As a result of the growing
competitive environment, management is looking at knowledge management as a means to
make their Organisations more productive by leveraging their employees' intellectual capital.

The ability to harness knowledge will not only help the company's bottom line but will also help
the company retain expertise in a tight job market. By not adopting a knowledge management
program, companies run the risk of being stuck in an information overloaded environment and
getting left behind by the competition that understands the importance of leveraging knowledge.
While knowledge management is gaining popularity, companies need help developing solutions
and will require the vendors' solutions and support.

As a result of this growing awareness, we are going to see rapid growth in the demand for
knowledge management services. As companies begin implementation of pilot programs,
employees will learn knowledge management's benefits, be trained on technology, and become
comfortable with information sharing.

Eventually, implementation will become smoother because there will be organizational buy-in
and the technology will match the process flow. The higher comfort level will allow
organizations to broaden the scopes of their programs to include more challenging areas such as
supply chain management, which, in result, will drive the demand for more services.

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