KNOWLEDGE

MANAGEMENT
(KM)
Session # 3
Three Megatrends
Technology (Networking)
- Performance; Connectivity; Portability

Info. / Knowledge Work

> 70% of work is info. intensive

Globalization
- of markets, products and resources/labor
The New Economy

Networked
Knowledge
Economy

Global and interdependent

The New Economy
Global, Knowledge-based, Networked

Location
Independence

... A ‘Virtual’ World

 Land Area
Top 15 land area (1000 km2), 1999
country size % of world sum %
1 Russia 16,889 13.0 13
2 China 9,327 7.2 20
3 Canada 9,221 7.1 27
4 USA 9,159 7.0 34
5 Brazil 8,457 6.5 41
6 Australia 7,682 5.9 47
7 India 2,973 2.3 49
8 Argentina 2,737 2.1 51
9 Kazakhstan 2,671 2.1 53
10 Algeria 2,382 1.8 55
 Population
Top 15 population (millions), 1999
country size % of world sum %
1 China 1,254 21.0 21
2 India 998 16.7 38
3 USA 278 4.7 42
4 Indonesia 207 3.5 46
5 Brazil 168 2.8 49
6 Russia 146 2.4 51
7 Pakistan 135 2.3 53
8 Bangladesh 128 2.1 55
9 Japan 127 2.1 58
10 Nigeria 124 2.1 60
Source:http://www.erols.com/mwhite28/literacy.htm
Source:http://www.erols.com/mwhite28/literacy.htm
 Knowledge makes the Difference
between Poverty and Wealth...
Thousands of US dollars
14
Rep. of Korea
12

10
Difference
attributed to
8 Knowledge
6
Difference
4 due to
Physical and
2 Human
Ghana
0 Capital
1960 1965 1970 1975 1980 1985 1990 1995 2000
PAKISTAN

Pakistan’s
switch to the
“Tech- Haves”
critically
depends upon
Knowledge!
 Need for Knowledge
Management
• “Knowledge has become the key resource, for a
nation’s military strength as well as for its
economic strength… is fundamentally different
from the traditional key resources of the
economist – land, labor, and even capital…we
need systematic work on the quality of
knowledge and the productivity of knowledge…
the performance capacity, if not the survival, of
any organization in the knowledge society will
come increasingly to depend on those two
factors” [Drucker,1994]
Innovation vis-à-vis
Productivity
The source of wealth is something
specifically human: KNOWLEDGE

Knowledge applied to tasks we

already know how to do is
PRODUCTIVITY

Knowledge applied to tasks that are

new and different is INNOVATION
Peter F. Drucker, 1992
FORCES SHAPING
OUR FUTURE
We know the world is
changing fast. But how
fast-and why?
Step back and examine
the technological,
economic, and
geographic forces that
are at work on our world.
Human Beings are
producing more
Transistors (and at
a lower cost)…

… than they
did Grains of
Rice.
32% of the world’s languages
are from Asia 874 million
native Chinese speakers

355 million
Urdu/Hindi Speakers

207 million
Bengali speakers
 Who’s online?

88%
84%
71%
32%
Age 19-29 30-49 50-64 65+
 What advertisers
Consumer electronics in the world spent on placing
ads in video
2 billion mobile phones games #56
#34 million
million

1.5 million
TV Sets

820 million 2004 2005

PCs

190
million
Game Boys
70
million 50
iPods 3.2
million
million
PDAs
Black-
Berry
 Manufacture’s Retailer’s
Warehouse Distribution
Manufacturer Center

Customers

Outbound Store Retailer

Delivery
Logistics Delivery

The Value Chain

 Learning
Analysis & Knowledge
Refinement Discovery

Action

Customer Market
Interaction Planning

Knowledge in Processes
 Let’s Face It !
• Like it or not, Gifts of Globalization
• Suppliers are a click away
• Technology: BioT, NanoT, GridT, ICT
• Business Disequilibrium is Faster
• Competition on Quality, Value, Speed
• Cheaper Products from China, India
• Is there any Intangible Service for
SALE?
 Managerial
Consideration

Individual K
and
Institutional K