Measuring the Return on Knowledge Embedded in Information Technology

We propose a methodology for measuring the return on knowledge in company processes. We argue that one promising approach is to formulate the problem within the context of a knowledge management framework. That is, we will demonstrate that it is possible to measure the impact of knowledge embedded in information technology (IT) deployed in an organizationís core processes. In this sense, the core process knowledge embedded within IT is a particular instance of knowledge used to produce core process outputs. We provide a case example of the application of the knowledge value-added (KVA) methodology to provide a ìproof-of- conceptî example of how measuring the value added by IT might be approached. We discuss the implications in terms of the generic requirements for any methodology attempting to solve this problem as well as how the results of the use of KVA can be applied to analyze the potential value added by IT

A framework for the improvement of knowledge-intensive business processes

2006-2007 > Academic research: refereed > Publication in refereed journalAccepted ManuscriptPublishe

Application of lean thinking approach to an internal service system of a utilities company

An ineffective and inefficient provision of internal services has impacts on the performance and sustainability of organisations. The current research aims at verifying if effectiveness and efficiency gains result from the application of a systematic lean approach to the internal services of a utilities company. Lean thinking is the conceptual framework considered for such purpose. The methodology serving such intents is based on a case study developed at the markets division of a utilities company with business on the power and gas markets. The information that sustains this research was collected through direct observation and informal interviewing of the staff of the markets division, as well as of its internal customers. The lean thinking systematic approach encompasses the application of lean tools. In this regard, process activity mapping is employed, as well as other lean tools, like problem solving, kaizen blitz events, kanban, or work standardisation. Three processes concurring to the provision of internal services are studied: market risk hedging, database parameterisation for financial derivatives register, and CO2 emission allowances stock calculation. The assessment of such processes within a lean thinking tools framework and their customer value and waste identification are followed by the implementation of improved versions of such processes. Results indicate that effectiveness gains are achievable and carry real impacts in terms of value for the internal customer, an aspect sparsely developed on previous research. In terms of efficiency impacts, lead time is reduced 74%, 97% and 89% for each process, respectively, whilst personnel participation is reduced 7%, 20% and 57%.Uma inefectiva e ineficiente prestação de serviços internos gera impacto na performance e sustentabilidade das organizações. A presente investigação visa verificar se a aplicação sistemática da perspectiva lean thinking aos serviços internos de uma empresa do sector das utilities resulta em ganhos de efectividade e eficiência. A metodologia que serve o propósito da presente investigação é sustentada por um caso de estudo levado a cabo na unidade de mercados de uma empresa do sector energético. Toda a informação obtida foi recolhida a partir de observação directa, ou de entrevistas informais dos colaboradores da unidade de mercados, bem como dos clientes internos da mesma. A perspectiva lean thinking considerou a aplicação de ferramentas lean, nomeadamente process activity mapping, problem solving, eventos kaizen blitz, kanban, e estandardização de actividades. Três processos que concorrem para a prestação de serviços internos são estudados: cobertura de risco de mercado, parametrização de base de dados para registo de derivados financeiros, e cálculo do stock de licenças de emissão de CO2. A avaliação de tais processos numa perspectiva de aplicação de ferramentas lean thinking, bem como a identificação do desperdício e do valor dos serviços na perspectiva dos clientes internos, é seguida da implementação de versões melhoradas dos mesmos processos. Os resultados da investigação indicam que impactos positivos de efectividade são possíveis, originando ganhos de valor para o cliente interno, aspecto parcamente abordado em investigações anteriores. Em termos de eficiência, o lead time dos processos foi reduzido em 74%, 97% e 89% para cada um dos mesmos, enquanto que a participação dos colaboradores for reduzida em 7%, 20% e 57%

Lean and agility in the healthcare sector: the case of hospital de Lamego

JEL Classification System: M11 – Production Management; I15 – Health and Economic DevelopmentHealthcare services have been subject of various research aiming at process improvement under a lean approach. Another perspective – Agility – has also been used, though in a lower scale, in order to analyse the ability of different hospital services to adapt to demand uncertainties. Both perspectives have a common denominator, the assessment of effectiveness and efficiency of the services in a healthcare setting context. The present research aims to analyse the impacts of the combination of both perspectives in the effectiveness and efficiency of an hospital service. The adopted methodology is based on a case study approach applied to the process of the ambulatory surgery service of Hospital de Lamego. Data was collected from direct observations, formal interviews and informal conversations. This process has been selected according to three criteria, which were fully met. The customer of the process was identified as well as his perception of value. The process has been mapped using a flow chart, on a process modelling perspective, as well as through the use of Value Stream Mapping (VSM), Process Activity Mapping and Spaghetti Diagram, which have enabled the identification of three types of waste and improvement suggestions. The results point out that leagility cannot be applied to the process, but the application of lean and agility would bring benefits in both efficiency and effectiveness, and contribute to value creation if improvements are introduced in hospital’s human resources and facilities management.Os serviços de saúde têm sido alvo de diversos estudos tendo em vista a melhoria de processos de acordo com uma perspetiva Lean. Outra perspetiva – Agility – tem também sido usada, embora em menor escala, de forma a analisar a habilidade de diferentes serviços hospitalares em se adaptarem às incertezas da procura. Ambas perspetivas têm um denominador comum, a avaliação da eficácia e da eficiência dos serviços dentro de um contexto de prestação de cuidados de saúde. O presente estudo destina-se a analisar os impactos da combinação das duas perspetivas, na eficácia e eficiência de um serviço hospitalar. A metodologia adotada baseia-se num caso de estudo aplicado ao processo de um serviço de cirurgia de ambulatório no Hospital de Lamego. Foram feitas observações diretas, entrevistas formais e conversas informais para a recolha de dados. Este processo foi selecionado seguindo três critérios, sendo todos eles cumpridos. O cliente do processo foi identificado bem como a sua perceção de valor. O processo foi desenhado usando um fluxograma, na ótica de modelação de processos, assim como através do uso de outras ferramentas como o Value Stream Mapping, Process Activity Mapping e Spaghetti Diagram, tendo sido possível identificar três tipos de desperdício, sendo apresentadas sugestões de melhoria. Os resultados indicam que o conceito de leagility não pode ser aplicado no processo, mas a aplicação de medidas lean e agile traria benefícios tanto na sua eficácia como na sua eficiência, contribuindo para a criação de valor para o cliente, se as melhorias forem introduzidas na gestão dos recursos humanos e instalações do hospital

Knowledge Integrated Business Process Management for Third Party Logistics Companies

The growing importance of logistics as well as the increasing dynamic complexity of markets, technologies, and customer needs has brought great challenges to logistics. In order to focus on their core competency in such a competitive environment, more and more companies have outsourced a part or the entirety of the logistics process to third party logistics (3PL) service providers. 3PL has played a crucial role in managing logistics processes within supply chain management. Logistics processes require and supply various types of knowledge for planning, developing, operating, controlling and improving business processes. Therefore, in the current knowledge era, knowledge integrated business process management (KIBPM) is of significant importance for 3PL. This work applies KIBPM in 3PL from both a theoretical and practical perspective. The methodology for this study is a combination of literature and primary source research. From the theoretical perspective, it reviews the related literature on knowledge, KM, KIBPM and 3PL. It next analyzes application potentials as well as basic theories of KIBPM in 3PL, and proposes a framework for application. Furthermore, it studies the issues, knowledge sources and content, as well as KM approaches from the strategic and operational perspectives. In particular, it discusses the dynamics, logistics networks, business process networks and tacit knowledge sharing in 3PL. From the practical perspective, a case study of a leading 3PL provider demonstrates the drivers, practices and approaches of KIBPM application. The case study is based on in-depth interviews and extensive access to the secondary data of the firm. It analyzes the core business processes, the process knowledge and key activities of KM in the formulation of business strategy and the operation of business processes in contract logistics. In addition, it applies the proposed framework in this case. Furthermore, it discusses the findings from the literature and case study that relate to the research questions, compares the differences and similarities of KM in 3PL between theory and practice, and puts forward some research and managerial implications. This study has come to the conclusion that it is more effective and efficient to integrate KM in business processes. Knowledge of market, customer requirements, partners, and competitors and collaborative KM in the logistics networks are essential when choosing competitive strategies, process designs and development strategies for business. 3PL needs dynamic capabilities to sustain competitive advantage through KM. In operation, knowledge related business procedures and domains, as well as the results in project management of warehousing, intermodal transport and cooperation between geographic networks, have considerable value for business process execution, evaluation and improvement. 3PL motivates tacit knowledge sharing and effective knowledge acquisition, production, warehousing, distribution and application with a trusting organizational culture, process oriented structure, appropriate technology, and incentive measures. However, while KM is a tool for improving the competency and performance for the organization, learning capability is more important to keeping sustainable competitive advantage in the long term for 3PL. The application of KIBPM in 3PL supports business process management at both the strategic and operational levels. It especially contributes to business development, collaborative projects, intermodal transport, and logistics service improvement

Strategic human resource management in the knowledge-based economy

U radu su razmatrani najvažniji elementi strategijskpg upravljanja ljudskim resursima u kontekstu ekonomije u kojoj znanje ima status kritičnog resursa, čime je istovremeno opredeljen predmet istraživanja. Osnovni cilj istraživanja je da se dokaže da strategijsko upravljanje ljudskim resursima doprinosi poboljšanju organizacionih performansi i da su ljudski resursi važan faktor koji treba uzeti u obzir prilikom formulisanja organizacione strategije. U tom smislu, analizirani su ključni izazovi, različiti pristupi upravljanja ljudskim resursima i njihova uloga u kreiranju konkurentske prednosti. Formulisanje strategije upravljanja ljudskim resursima je posmatrano kroz moguće pristupe, proces i način usklađivanja sa organizacionom strategijom. Posebna pažnja je posvećena strategiji upravljanja znanjem, kako sa aspekta njenog formulisanja, tako i sa aspekta identifikovanja njenih ključnih elemenata. Istraživanje strategije upravljanja talentima je sprovedeno kroz analizu ključnih konstituenata i taktika i tehnika za upravljanjee talentima. Evaluacija strategije upravljanja ljudskim resursima je analizirana sa aspekta uticaja na organizacione performanse i kroz izbor alata i pokazatelja. Empirijskim istraživanjem je utvrđeno da praksa strategijskog upravljanja ljudskim resursima, strategija upravljanja znanjem i strategija upravljanja talentima imaju ppzitivan uticaj na organizacione performanse i inovativnost, respektivno, čime se opravdanim smatraju ulaganja u razvoj jedinstvene prakse i u aktivnosti koje se odnose na kreiranje, usvajanje, deljenje i primenu znanja, odnosno na formiranje i održavanje pula talenata u okviru organizacije.The paper discusses the most important elements of strategic human resource management in the context of the economy in which knowledge has the status of a critical resource, which is also defined subject of research. Main research objective is to prove that strategic human resource management contribute to improvement of organizational performance, and human resources are important factor which need to be considered during process of organizational strategy formulation. In this context,there have been analyzed the key challenges, different approaches to human resources management and their role in creating competitive advantage. Formulation of HR strategy is considered through possible approaches, process, and fit with the organizational strategy. Special attention was paid to the knowledge management strategy, both in terms of its formulation, but also in terms of identifying its key elements. The research of talent management strategy is done through the analysis of key constituents and tactics and techniques for talent management. Evaluation of HR strategy is analyzed from the point of impact on organizational performance and the selection of tools and indicators. Results of empirical research show that strategic human resource practice, knowledge management strategy, and talent management strategy have positive impact on organizational performance and innovation, respectively, which justifies investments in development of unique practice and activities related to creating, capturing, sharing, and using knowledge, as well as forming and retaining pull of talents within organization

An approach for identifying value in business processes.

The article of record as published may be found at http://dx.doi.org/10.1108/13673270310492949Many organizations are embarking upon knowledge management initiatives to enhance their competitiveness. While there has been a significant amount of multidisciplinary research in this area, the evidence from surveys of practitioners indicate that a large proportion of company projects focus on the implementation of technology-based solutions without consideration for the structural and contextual issues. Many academic authors have presented a variety of different models for knowledge management but have often failed to relate these to the requirements of practitioners. This paper presents a model of knowledge management derived from a synthesis of current literature. The model emphasizes the need for knowledge evaluation within a knowledge management approach and describes, using a case study, how this might be achieved