InformationRiskManagementKnowledgeManagementAbusinesscase\'5c'5c'5c'0d18March1999Thisreportcontains28pagesAppendicescontain8pagesNIRM_KM.docContents1Background11.1Whyhasknowledgebecomeastrategicbusinessissue?11.2TheKPMGglobalvisionandstrategy12Knowledgemanagementdefined42.1Knowledge42.2Knowledgemanagement42.3Theknowledgesystem53KnowledgemanagementinIRM63.1TheUnitedKingdom63.1.1KMstructures73.2TheUnitedStates83.3InternationalHeadquarters(IHQ)83.4SouthAfrica94Benefits104.1Keybenefits104.1.1Tangiblebenefits104.1.2Intangiblebenefits115Costs126Challenges156.1Wheretostart?156.2Culturalchange166.3Knowledgemanagementstrategy177Technology188Contentandmaintenance198.1Genericknowledge198.2Layout198.3Clientconfidentiality208.4Maintenanceandsanitation218.5Acompleteprocess219Thenextsteps23AppendixA-SuggestedIRMSouthAfricaknowledgerepositorystructure24AppendixB-DraftjobdescriptionsforstaffingofaKnowledgeCentre261Background1.1Whyhasknowledgebecomeastrategicbusinessissue?Recentlytherehasbeenashiftawayfroma“capitalasset”basedeconomytoonewherethestrategicassetsofanyorganisationareitsknowledgeassets.Thischangeinparadigmisasgreatastheshiftinthepastfromanagriculturaltoanindustrial-basedeconomyatthestartoftheIndustrialRevolution.Theuseofknowledge,anditssubsequentmanagement,asastrategictooltoenablefirmstogainanedgeovertheircompetitorshasbeenenabledthrough:technologicaladvancementsallowingthecapture,managementanddisseminationofvastquantitiesofinformationwithinorganisations;theemergenceof“virtualorganisations”inwhichtraditionalboundariesseparatingbusinessunitsareblurring;andknowledgebeingutilisedtochangeorganisationsandopennewmarkets.Inaddition,therisksofnotmanagingone抯knowledgeassetsincludes:lossofproductivityandopportunitiesthroughwastedtimefindinginformationanddatawithinanorganisation;informationoverloadasaresultofnotoolsorprocessesbeinginplacetomanageandorganisedataandinformation;thelossofknowledgeduetostaffattrition(itisestimatedthat50%ofknowledgenotactivelystoredandmanagedislostevery5yearsassuminga10%turnoverinstaffperannum);andcontinualre-inventingofthewheelaslessonslearnedinthepastarenotstoredandpassedontoothersintheorganisation.1.2TheKPMGglobalvisionandstrategy“KPMGistheglobaladvisoryfirmwhoseaimistoturnknowledgeintovalueforthebenefitofitsclients,itspeopleanditscommunities.”KPMGisaknowledge-basedorganisation.Whilethatimpliesthatwerecruitandretainthehighestcalibreofperson,itisnotsomuchthepoolofknowledgethatisKPMGthatcounts,butratherhowweturnthatknowledgeintovalue.Ourknowledgecanbeseenaspartofourcompetitiveedge,somethingthatsetsusapartfromourcompetitors.TheKPMGvaluesetallowsustomaximiseouradvantagebymaintainingthesevaluesinalldealingswithstaffandclients.Inordertoachievethisthesevaluesmustbeembeddedintoourprocessesandactivities.Thevaluesfocusonthreeareas:Clients;People;andKnowledge.Itisthelatterthatthisbusinesscaseaddresses.ThevalusasexpressedunderKnowledgestatethat,“Wewillcontinuouslyextendthefrontiersofoursharedknowledgebytreatingknowledgeasahighly-valuedassetwhicheveryoneinthefirmhasarightandobligationtouseandaresponsibilitytocontributetowards.”ThisistheessenceofKnowledgeManagement(KM):theprocessofturningapoolofdiverseknowledgeandexpertiseintoasharedresourcethatbetterallowsthefirmtomeetitsgoalsandobjectives.ThisproposalwilladdresstheissueofKMwithintheInforma...