816
The International Conference on Administration and Business
ICEA - FAA 2009 14 – 15 NOVEMBER 2009 http://conference.faa.ro
The Faculty of Business and Administration
University of Bucharest
817
The International Conference on Administration and Business
ICEA - FAA 2009 14 – 15 NOVEMBER 2009 http://conference.faa.ro
The Faculty of Business and Administration
University of Bucharest
managers are intriguing. For instance, one critical to successful knowledge management
survey found that 87% of European business implementation, as elucidated by Quinn et
directors believe they could enhance their al. (1996). Thus, a knowledge management
company’s competitiveness with improved program needs to identify critical
KM and 76% believe that building and performance indicators of success factors to
sharing knowledge is important for their gauge its performance.
company (Williams, 2003). Another study of In achieving this, various knowledge
500 firms conducted by KPMG illustrated management models have been reviewed so
that 80 % of senior executives feel that KM that a unified framework of knowledge
is strategic to their organization and 78 % management can be developed. From the
feel that they have missed business analyses of the models, it was found that
opportunities. The study estimated that, on several studies have proposed several key
average, 6 % of annual revenue has been variables for successful implementation of
forgone due to missed knowledge knowledge management. For example,
opportunities; that their average spending Davenport have identified eight knowledge
on knowledge programs is < 2 % of annual management success factors such as
revenue; and over 64 % said that their ROI a. technology infrastructure;
on their knowledge efforts was unknown. b. organizational infrastructure;
In spite of these surveys sited above, c. balance of flexibility, evolution and
examples abound of organizations ease-of-accessibility to knowledge;
implementing successful knowledge d. shared knowledge;
management initiatives (Davenport & e. knowledge-friendly culture;
Prusak, 1998, and Myers, 2001). Hoffmann- f. motivated workers who develop,
Roche, the Swiss pharmaceutical firm, has share and use knowledge;
estimated that it saves over $1 million per g. means of knowledge transfer using
day due to its KM activities. Hewlett- various information technology
Packard’s knowledge efforts aimed at infrastructure;
customer service have reduced average call h. senior management support and
times by two-thirds and the cost per call has commitment.
fallen by 50 percent. Chevron Corporation Ryan and Prybutok (2001) propose five
estimates that it saved an initial $150 success factors such as
million, plus at least another $20 million a. an open organizational culture;
annually by instituting a best practices b. senior management leadership and
program. Dow Chemical’s efforts to commitment;
capitalize on its intellectual property have c. employee involvement;
saved it over $40 million. Over a six-year d. teamwork;
period since its investment of $72 million, e. information systems infrastructure.
Schlumberger Corp. has realized an ROI of Perhaps the most comprehensive list of
668% on its KM programs (Swanborg & success factors has been presented by
Myers, 1997). Finally, Teltech, a firm that Moffett et al. (2003). Ten key components to
specializes in aiding companies to implement successful knowledge management were
knowledge management programs, reports identified:
that its clients enjoy an average ROI of 12:1 a. a friendly organizational culture;
for their efforts. b. senior management leadership and
commitment;
3. Knowledge management success c. employee involvement;
factors d. employee training;
e. trustworthy teamwork;
Digman asserts that the critical success f. employee empowerment;
factors is useful for structuring g. information systems infrastructure;
environmental analysis because there is an h. performance measurement;
important link between environmental i. benchmarking;
analysis and critical success factors leading j. knowledge structure.
to organizational success. The analyses of In my opinion the key success factors for KM
these factors provide an important meaning are:
to knowledge management through the a. Employee training
identification of core processes that are b. Employee involvement
818
The International Conference on Administration and Business
ICEA - FAA 2009 14 – 15 NOVEMBER 2009 http://conference.faa.ro
The Faculty of Business and Administration
University of Bucharest
819
The International Conference on Administration and Business
ICEA - FAA 2009 14 – 15 NOVEMBER 2009 http://conference.faa.ro
The Faculty of Business and Administration
University of Bucharest
820
The International Conference on Administration and Business
ICEA - FAA 2009 14 – 15 NOVEMBER 2009 http://conference.faa.ro
The Faculty of Business and Administration
University of Bucharest
821
The International Conference on Administration and Business
ICEA - FAA 2009 14 – 15 NOVEMBER 2009 http://conference.faa.ro
The Faculty of Business and Administration
University of Bucharest
822
The International Conference on Administration and Business
ICEA - FAA 2009 14 – 15 NOVEMBER 2009 http://conference.faa.ro
The Faculty of Business and Administration
University of Bucharest
823