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Profitability and Knowledge: If We Only Knew What We Know

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    p.32 .............................Sequent Compsys Inc.
  1. Knowledge Intensive prossessor pnts in value chain
  2. Detailed model of cycle time and flow with its channel ops
  3. good handle on project costs--focus transfer initiatives on parts of the value chain that
    • reduce project cycle time
    • decrease costs
    • increase volume, customers, projects, revenue
    • manage risk associated with operations
    Projects may be similar, but they differ in know-what, know-why, know-how, know-who and in knowledge use Look for the highest pain / gain. Chart p 37 DELL HOME DEPOT APPLE OperationalExcellence CustomerIntimacy ProductLeadership
  4. Operational Excellence Intimacy
      5. not discussed
  5. Customer Intimacy: capture, transfer, develop knowledge re customers to:
      6. present a single face;
      provide a one stop service;
      support representatives in customer service and problem solving;
      become so easy to do business with that the "cost of exit" is higher than the cost of staying;
      support sales efficiency - sell, cross-sell, repeat
    SequentUnix Systems Integrator Buckman Labs Arthur Andersen Library: one place to go for everything to do your job more effectively Online intranet to link 80 countries & leverage knowledge across time-zones One-stop KnowledgeSpace harnessing the full knowledge of the firm for every engagement BoB Hiebeler, MngDir KSpace, "The word capability refers to human beings, and this is what knowledge is all about." The concept is to bring the power of the entire team to the client. O'Dell & Gayon say, "What's at the fingertips? Everything from best practices, relevant engagements, experience, performance measures, diagnostic tools, methodologies, tools and techniques, aids to presentations, a hotlist of experts to call for more information and knowledge."
  6. USAA: army officers start auto insurance in 1922, overcoming distance led to intimacy
  7. ECHO system: every contact has opportunity; 1500 customer comments weekly, reviewed for patterns and action
  8. Product Leadership: market excellence (p47) includes reducing the time to market, quicken design and communication to take market lead, increase gross profit margin:
      9. incorporate new ideas (from within or outside the organization) into new product or service offerings ;
      re-use lessons learned to accelerate development and process;
    Company examples MACDONALDS HUGHES SPACE & COMMUNICATIONS New Product Cost reductions*
        Hughes saved 7-25 million USD by re-using designs for spacecraft an assumption of 90% reduction in labour cost associated with a new design
        National Security Agency (NSA); Monsanto, IBM (show benefit - provide incentive) Mr. Huang, core management system.