Knowledge Management Heritage

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CHAPTER 1

INTRODUCTION

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INTRODUCTION:

Knowledge management (KM) is a newly emerging interdisciplinary business

model that has knowledge within the frame work of an organization as its focus. It is

rooted in many disciplines including business economics psychology and information

management. It is the ultimate competitie adantage for today firm! Knowledge

management inoles people! technology and processes in oerlapping parts.

In some ways KM is about surial in a new business world a world of

competition that increases in comple"ity and uncertainly each day. It is a world that

challenges the traditional ways of doing things the focus is not only on finding the right

answers! but also on asking the right #uestions what worked yesterday may or may not

work tomorrow. $he focus is on %doing the right thing& rather than %doing things right&

so that core competencies do not become core rigidities in the future.

KM is the process of capturing and making use of a firms collectie e"pertise

anywhere in the business'on paper in documents in databases or in people

heads(called $acit knowledge)$hat up to percent of information is presered as tacitknowledge .

Definition of Knowledge Management:

Knowledge is %a state of being with respect to somebody of information. $hese states

include ignorance! awareness familiarity! understanding facility and so on&.

*s per +on ,oung! -/0-K/ Knowledge *ssociates International

%Knowledge management is the discipline of enabling indiiduals! teams and entire

organization to collectiely and systematically create! share and apply knowledge! to

better achiee their obecties&

*s per west Midlands +egional /bseratory! 2K

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%Knowledge management will delier understanding collaboration and partnership

working. It will ensure the region ma"imize the alue of information and the

knowledge assets and it will help its citizens to use their creatiity and skills better!

leading to improed effectieness and greater innoation %.

4e define knowledge management as a business actiity with two primary aspects5

• $reating the knowledge component of business actiities as an e"plicit concern of

business reflected in strategy! policy and practice at all leels of the organization.

• Making a direct connection between an organization intellectual assets 6 both

e"plicit and tacit (personal Know 6how) 6 and positie business results.

MIS relation wit !nowledge management:

Information systems (I7) and management of knowledge are often discussed either as

separate entities or alternatiely as analogies. 8ut what is the gap between information

processed with I7 and human Information or knowledge9 Is the gap insurmountable! or can

the subspecies be analyzed and selected! so that section of these two sets will be found or so

that the union of information and knowledge complete each other9

I7 and users share information! which is why it is in this conte"t more important than data! as

the basis for systems! but human knowledge is the final aim. *s a background there is a

philosophical classification of knowledge. ositiism! post'positiism and critical theory is

briefly presented. $his presentation is assuming constructiism as the most appropriate

iewpoint to knowledge.

$here are arious species of information! which are analyzed more deeply. I-$ consists of

information processing and communication technologies. ;rom philosophy! there can be the

same main streams found. Information theory gies us #uantitatie classes based on

probability. 7emantics leads us to #ualitatie information categories.

Information and communication theory lie along with systems theory. 7ystems analysis is an

engineering discipline based on this theory of the nature of systems. $his analysis framework

for studying and modifying the world is used for the e"amples about engineering that are


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mainly from a proect 4I7 ' 4eb'enabled Information 7erices for ngineering. 4I7 is

concerned with knowledge management (KM) in participatory design processes of comple"

products! putting the engineer in the centre of the oerall picture. Main obectie of the

proect is not on deeloping new specific KM tools and methods but rather to integrate and

e"ploit e"isting state'of'the art approaches oriented towards the needs of industrial users.

$hese research proects will prototype a meta'system for different kinds of information

sources. In this conte"t! 4I7 can be an e"ample to show what findings are obsered from

engineering knowledge.

IN"ORMATION AND KNO#$ED%E:

Most definitions of KM share the perspectie of collection and dissemination of knowledge

to benefit organization and its indiiduals. $ypically knowledge is defined like =information

that is releant! actionable! and based at least partially on e"perience>. 4e must take a look at

paradigms of philosophy and species of information to find out what is meaningful for KM.

Paradigm& from Pilo&o'(

$he paradigms from philosophy can be distinguished by ontology! which (in philosophy)

concerns beliefs about the form and nature of reality! and epistemology! which concerns the

nature of knowledge and the relationship between those who know and knowing. ;our main

paradigms are

1) ositiism! 3) post'positiism!


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obseration from AoutsideA into information implemented. eople can be better or worse at

this engineering process! and at least fuzzy optimization becomes releant. Mind is biased

machine5 reality is actually out there! and knowledge is obectie.

Criti*al teor( is based on the ontology that reality is irtual. 7ocial! political! economic!

ethnic and other factors shape reality. $he epistemology is subectiist. ;indings are alue

laden with respect to the worldiew of an in#uirer. In#uiry is alue determined in both

postmodernism and post structuralism.

$his presentation is on the leel of *on&tr,*ti)i&m- according to which there e"ists both local

and specifically constructed realities. /ntology says that reality is relatie phenomenon! and

pistemological knowledge is created in interaction between in#uirers and its participants in

a situation. 7ubectiist epistemology relates to created findings.

$here are no obserers! only iewers. Biews! like behaiors are deried from

worldiew. Interaction of different worldiews occurs through a semantic communication

process or interaction occurs in a framework! Alife worldA. -ognitie oriented constructiist

theories emphasize the e"ploration and discoery on the part of each learner as e"plaining the

learning process. Knowledge is still ery much a symbolic! mental representation in the mind

of the indiidual. In socially oriented theory the conte"t is part of the knowledge. Knowledge

is based on e"perience through worldiews! which are relatie to the institutions that one is

attached to in a gien society! and they change as the institutional realities change.

Knowledge is not e"plicit. $o derie knowledge from information means that much of

knowledge is based on sensory or perceptual e"perience (a posteriori) but such knowledge

can be used to understand new things (a priori). Knowledge by ac#uaintance is based on

e"perience! but we can also recognize things without sensual e"periences! which lead to a

distinction between direct and indirect knowledge. ropositional knowledge tells us that earth

goes around the sun and one plus one is two.

4hat then is e"plicit9 en I7 functions! such as search! retrieal and filtering are

effectie as long as they are processing data. $hey are working when applied to appropriate

tasks! such as sorting! comparing! or isualizing data! but their capabilities are rather limited

when applied to processing of any interpretation. $he interpretation of information is always

constructiist.


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Information S'e*ie& .a&ed on Pro.a.ilit(:

*s the data! information and knowledge are separated! the middle layer remains crucial. $he

'ro.a.ilit( inter'retation of information is giing us three categories of physical! syntactic

and semantic information.

P(&i*al information is the orientation degree of systems! opposite to entropy. It is the

common denominator that can bring matter! energy and time into a single! unified framework

of analysis. *ll matter'energy transformations are change of state information. *nimate and

inanimate obects ' information condensations of matter'energy! e.g. CD*! atom! gala"y ' are

including the more information the more complicated they are. *ctually! it>s impossible to

say confidently of anything that it could not be information. hysical information can further

be classified as natural and manmade artifacts.

S(nta*ti* information is attached to communication in any channel where messages are sent

and receied using some notation system. $he amount of information is depending from the

rarity of each notation string. $he theory of synta" is ery close to the statistical'

mathematical information theory.

Eoweer! when someone is creating or utilizing syntactic information! there is always

interpretation 6 een with completely automatic I7.

7emantics is the branch of semiotics! the philosophy of signs that deals with meaning. $he

other two branches are synta" and pragmatics. It>s basically the study of the relationship

between what an obect is representing! and the obect itself.

Semanti* information is attached to declaratie sentences about states of affairs that hae a

linguistic meaning. Information is therefore eliminating ambialence. $he probability of a

sentence is inersely proportional to its information. $hat is because information is the

amount of ambialence! which disappears when we get to know that the sentence is true.

ragmatic information! howeer! belong to #ualitatie interpretation.

Information S'e*ie& .a&ed on /,alitati)e Inter'retation:

/,alitati)e inter'retation consists of 1) communication! 3) presentation and


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*ll propositional knowledge is deried from causal connections. -ausalities are retrospectie

(there has been this causality before) or prospectie (this causality can be seen coming).

Ginked with truth alues there is a ustification condition.

ragmatic information is build into proposition and ustification. It is related to the

significance of information to the person receiing it in a particular situation. ;or

communication it is the most important category. 4hen conerting it to an I7! it must be

noted that pragmatic information is including together with the actual sentence the

constructiist state of the surrounding world e"cluded from the sentence.

;or I7! another aspect of pragmatic information emerges aboe others: noelty or newness. It

is a crucial component when measuring alue of information. $hree kinds of noelty can be

listed: 1) the amount of how meaningful or surprising the information is for the recipient! 3)

the utility alue of information! and . *lso #uestions! e"clamations! adice! re#uests or orders

that hae not got any truth'alue are belonging to e"pressie information. 8ut knowledge'

related e"pressie information has always got a truth'alue.

*n e"pression can be a communicated as erbal! aural! isual! based on sense of touch! or

based on artifacts. resentation is also important for I7. -ommon knowledge and scientific

information are both platonic (epistemic) information. It has got a truth'alue! but knowing

the alue is not a re#uired.

$he truth'alue of scientific information is heterogeneous5 there are e.g. realist and

instrumentalist iew of science! as well as relatiists and obectiist.

$ruth'alue and eidence are re#uirements for epistemic information. 4hen there is a truth'

alue! but no eidence! we are talking about do"astic information! which is pertaining to

belief! or to states sufficiently like beliefs (thoughts! udgments! opinions! desires! wishes!

fears). 4e may know that something is so! and we may also beliee that something is so.

8elieing may be based on facts! opinion or both! and may be true! erroneous or both.

7omething may be true but we may not beliee it! and we may beliee something that isnHt

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8eliefs! suppositions and hypotheses! hae not necessarily got a truth'alue. $his kind of

e"pressie information is named as modal information. In the modal information category

there are absolute alues or norms! commands! #uestions etc.

;or I7 the most obious is data and dialogical or data'deried information. +aw data is

conerting to data'deried information when processed. $his is traditionally diided into

procedural information! which is a series of instructions following a specific algorithm or

heuristics! whereas declaratie information is passie! non'algorithmic description of world

in a symbolic and e"plicit format. Cata is finally numerical.

Meta'information management is nowadays a crucial component of organizational system

strategy. It can be further diided to system'specific meta'information and data'specific

information. $he system information is about the media where the data is stored and

retrieed! while the data'specific information is solely data about data.

*ll information categorization is based on the same procedure where human

notice patterns from enironment! and! when the perception of these patterns leads to the

interpretation of new information in the conte"t of preious knowledge! the meaning occurs.

$his notion of dynamic meaning is an important aspect for I-$. $here are many other issues

of human knowledge not written here! such as the #uestion of understanding and tacit

knowledge.

Need of !nowledge management:

4e need to manage knowledge that identifies some of the specific business factors including:

• Marketplaces are increasingly competitie and the rate of innoation is rising.

• +eductions in staffing create a need to replace informal knowledge with formal methods

• -ompetitie pressures reduce the size of the work force that holds aluable business

knowledge.

• $he amount of time aailable to e"perience and ac#uire knowledge has diminished

• arly retirements and increasing mobility of the work force lead to loss of knowledge.

• $here is a need to manage increasing comple"ity as small operating companies are trans'

national sourcing operations.• -hanges in strategic direction may result in the loss of knowledge in a specific area.

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Im'ortan*e of !nowledge Management &(&tem in an organi0ation:

Most companies are focused on producing a product or serice for customers. Eoweer! one

of the most significant keys to alue'creation comes from placing emphasis on producing

knowledge. $he production of knowledge needs to be a maor part of the oerall production

strategy.

/ne of the biggest challenges behind knowledge management is the dissemination of

knowledge. eople with the highest knowledge hae the potential for high leels of alue

creation. 8ut this knowledge can only create alue if itHs placed in the hands of those who

must e"ecute on it. Knowledge is usually difficult to access 6 it leaes when the knowledge

professional resigns.

%$he only irreplaceable capital an organization possesses is the knowledge and ability of its

people. $he productiity of that capital depends on how effectiely people share their

competence with those who can use it.& 6 *ndrew -arnegie

$herefore! knowledge management is often about managing relationships within the

organization. -ollaboratie tools (intranets! balanced scorecards! data warehouses! customer

relations management! e"pert systems! etc.) are often used to establish these relationships.

7ome companies hae deeloped knowledge maps! identifying what must be shared! where

can we find it! what information is needed to support an actiity! etc. Knowledge maps codify

information so that it becomes real knowledge5 i.e. from data to intelligence.

In the book Balue 8ased Knowledge Management! the authors adocate that eery

organization should strie to hae si" capabilities working together:

1. Prod,*e: *pply the right combination of knowledge and systems so that you produce

knowledge based enironment.

3. Re&'ond: -onstantly monitor and respond to the marketplace through an empowered

workforce within a decentralized structure.


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?. Attra*t: *ttract people who hae a thirst for knowledge! people who clearly

demonstrate that they loe to learn and share their knowledge opening with others.

$hese so'called knowledge professionals are one of the most significant components

of your intellectual capital.

. Create: roide a strong learning enironment for the thirsty knowledge worker.

*llow eeryone to learn through e"periences with customers! competition! etc.

F. $a&t: 7ecure long'term commitments from knowledge professionals. $hese people

are key driers behind your organization. If they leae! there goes the knowledge.

Knowledge professionals will become the dominant force behind the new economy! not

unlike the farmer was once the key player behind the agricultural age. 8y the year 31! one'

third of the workforce in the 2nited 7tates will be comprised of knowledge professionals. It is

incumbent upon all organizations to embrace this need for managing knowledge. Lust take a

look at those organizations that seem to create alue against the competition. ,ou will

inariably find a strong emphasis on knowledge management.

Prin*i'le& of Knowledge Management:

4inston -hurchill said! A$he empires of the future are the empires of the mind.A $om eterssaid! AEeay lifting is out5 brains are in.A

$he knowledge economy has brought new power to workers. Many are Afree agents!A

contingency workers that make up almost a third of the 2.7. workforce. 4orkers own the

means of production'their knowledge. $hey can sell it! trade it! or gie it away and still own

it. *s a result! the ways we manage people hae undergone a dramatic! fundamental shift.

Knowledge is perishable. $he shelf life of e"pertise is limited because new technologies!

products! and serices continually pour into the marketplace. Do one can hoard knowledge.

eople and companies must constantly renew! replenish! e"pand! and create more knowledge.

$hat re#uires a radical oerhaul of the old knowledge e#uation: knowledge power! so hoard

it. $he new knowledge e#uation is knowledge power! so share it and it will multiply.

4idespread noncompetitie benchmarking and best'practice sharing show how eagerly weare embracing the concept of knowledge sharing.

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Eubert 7t. /nge! who led the deelopment of the knowledge management approach at

-anadian Imperial 8ank of -ommerce! sees the primary challenge as making an

organizationHs unarticulated or tacit knowledge e"plicit so that it can be shared and renewedconstantly.

AIt is important!A he says! Ato understand how knowledge is formed! and how people and

organizations learn to use it wisely.A

* naigation techni#ue is to look at the stars to tell you where you are. 7imilarly! we must use

a powerful new Aknowledge lensA in order to naigate or manage our companies. 8ut we canHt

manage knowledge in a traditional way. *lways changing! knowledge is more organic than

mechanical.

Deertheless! here are 13 fairly steady principles about knowledge.

1 Knowledge i& me&&( 8ecause knowledge is connected to eerything else! you canHt

isolate the knowledge aspect of anything neatly. In the knowledge unierse! you canHt

pay attention to ust one factor.

2 Knowledge i& &elf+organi0ing $he self that knowledge organizes around is

organizational or group identity and purpose.

3 Knowledge &ee!& *omm,nit( Knowledge wants to happen! ust as life wants to

happen. 8oth want to happen as community. Dothing illustrates this principle more

than the Internet.

4 Knowledge tra)el& )ia lang,age 4ithout a language to describe our e"perience! we

canHt communicate what we know. "panding organizational knowledge means that

we must deelop the languages we use to describe our work e"perience.

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5 te more (o, tr( to 'in !nowledge down- te more it &li'& awa( ItHs tempting to try

to tie up knowledge as codified knowledge'documents! patents! libraries! databases!

and so forth. 8ut too much rigidity and formality regarding knowledge lead to the

stultification of creatiity.

6 $oo&er i& 'ro.a.l( .etter Eighly adaptable systems look sloppy. $he surial rate of

dierse! decentralized systems is higher. $hat means we can waste resources and

energy trying to control knowledge too tightly.

7 Tere i& no one &ol,tion Knowledge is always changing. ;or the moment! the best

approach to managing it is one that keeps things moing along while keeping options

open.

8 Knowledge doe&n9t grow fore)er entually! some knowledge is lost or dies! ust as

things in nature. 2nlearning and letting go of old ways of thinking! een retiring

whole blocks of knowledge! contribute to the itality and eolution of knowledge.

No one i& in *arge Knowledge is a social process. $hat means no one person can

take responsibility for collectie knowledge.

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14 O=>ECTI?ES O" RESEARCH:

$he main obecties of the research are:

1. $o know how helpful is knowledge management in the organization.

3. $o know how knowledge management is implemented in the organization.


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CHAPTER + II

RE?IE# O" $ITERATURE

RE?IE# O" $ITERATURE

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* number of management theorists hae contributed to the eolution of

knowledge management! among them such notables as eter Crunker! aul 7tresemann!

and eter 7enge in the 2nited 7tates. Cucker and 7tresemann hae stressed the growing

importance of information and e"plicit knowledge as organizational resources! and

7enge has focused on the %learning organization %5 a cultural dimension of Managing

knowledge. -hirsi*rgyris! -hristoper 8artlett! and Corothy Geonard'8arton of Earard

8usiness 7chool hae e"amined arious facets of managing knowledge. In fact Geonard

68arton>s well'known case study of chaparral steel a company which has had an

effectie knowledge management strategy in place since the mid'1s inspired the

research documented in her wellsprings of knowledge'building and sustaining sources of

innoation

erest +ogers work at 7tanford in the diffusion of innoation and $homas *llen>s

research at MI$ in information and technology transfer both of which date from the late

1s! hae also contributed to our understanding of how knowledge is produced used

and diffused within organizations. 8y the mid'1J the importance of knowledge (and

its e"pression in professional competence) as a competitie asset was apparent een

though classical economic theory ignores (the ale of) knowledge as an asset and most

organization still lack strategies and methods for managing it.

+ecognition of the growing importance of organizational knowledge was accompanied

by concern oer how to deal with e"ponential increases in the amount of aailable

knowledge and increasingly comple" products and processes. $he computer technology

that contributed so heaily to superabundance of information started to become part of

the solution ! in a ariety of domains .Coug ngelbart0s *ugment (for %augmenting

human intelligence&)! which was introduced in 1J! was an early hyperte"t0groupware

application capable of interfacing with other applications and systems. +ob *cksyn>s and

Con Mc-racken! Knowledge Management 7ystem (KM7).an open distributed

hypermedia tool! is another notable e"ample and one that predates the 4orld 4ide 4eb

by a decade.

$he 1J also saw the deelopment of systems for managing knowledge that relied on

work done in artificial intelligence and e"pert systems! giing us such concepts as

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%knowledge ac#uisition>! =knowledge engineering>! =knowledge'base systems! and

computer'based ontologies.

$he phrase %knowledge management> entered the le"icon in earnest. $o proide a

technological base for managing knowledge a consortium of 2.7.companies

7tarted the initiatie for managing knowledge *ssets in 1J. Knowledge management'

related articles began appearing in ournals like 7loan management +eiew!

/rganizational 7cience Earard 8usiness +eiew and others and the first books on

organizational learning and knowledge management were published (for

e"ample!7enge>s $he fifth Ciscipline and 7akaiya =s $he knowledge ale reolution)

8y 1! a number of management consulting firms had begun in'house knowledge

management programs and seeral well known 2.7...uropean and Lapanese firms had

instituted focused knowledge management programs. Knowledge management was

introduced in the popular press in 11! when $om 7tewart published %8rainpower& in

fortune magazine. erhaps the most widely read work to date is lkuiro Donaka>s and

Eirotaka $akeuchi>s the knowledge 6creating company Eow Lapanese companies create

the Cynamics of innoation (1)

8y the mid'1>s knowledge management initiaties were flourishing thanks in part to

the internet. $he International Knowledge Management Detwork begun in

urope in 1J! went online in 1? and was soon oined by the us6 abased knowledge

Management ;orum and other KM'related groups and publications! $he number of

knowledge management conferences and seminars is growing as organizations focus on

managing and leeraging e"plicit and tacit knowledge resources to achiee competitie

adantage in 1? the IKMD published the results of a knowledge management surey

conducted among uropean ;irms and the uropean community began offering funding

for KM'related proects through the 7+I$ program in 1

Knowledge Management which appears to offer a highly desirable alternatie to failed

$OM and business process re'engineering initiaties has become big business for such

maor international consulting firms as rnst and ,oung *rthur *nderson and 8ooz 6

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*llen and Eamilton In addition a number of professional organization interested in such

related areas as bench marking best practices risk management and change management

are e"ploring the relationship of knowledge management to their areas of special

e"pertise and *7I7(*merican 7ociety for Information 7cience)

Knowledge and information hae become the medium in which business problems

occur. *s a result managing knowledge represents the primary opportunity for achieing

substantial saings! significant improements in human performance and competitie

adantage.

7mall companies need formal approaches to knowledge management een more because they

don>t hae the market leerage inertia and resources that big companies do. $hey hae to be

much more fle"ible more responsie and more %right& because een small mistakes can be

fatal to them.

Categori0ation of !nowledge management a''roa*e&:

$he term %knowledge management& is now in widespread use haing appeared in the titles

of many new books about knowledge management as a business strategy as well as in articles

in many business publications! including the wall street ournal there are of course many

ways to slice up the multi'faceted world of knowledge management. Eoweer it>s often

useful to categorize them.

In a posting to the knowledge management ;orum Karl rik 7helby identified two %tracks& of

knowledge management:

• Management of information. $o researchers in this track! according to 7helby!&

Knowledge obects that can be identified and handled in information systems&.

• Management of people. ;or researchers and practitioners in this field knowledge

consists of processes a comple" set of dynamic skills know'how! etc that is constantly

changing.

APPROACHES TO KNO#$ED%E MANA%EMENT:

*pproaches to organizational knowledge management we hae adopted a three part

categorization:

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• Mechanistic approaches

• -ultural0behaiorist approaches

• 7ystematic approaches to knowledge management

Me*ani&ti* a''roa*e& to !nowledge management:

Mechanistic approaches to knowledge management are characterized by the application

of technology and resources to do more of the same better! the main assumptions of the

mechanistic approaches include:

• 8etter accessibility to information is a key including enhanced methods of access

and reuse of documents.

• Detworking technology in general and groupware in particular will be key

solutions

• In general technology and sheer olume of information will make it work

*ssessment:

such approaches are relatiely easy to implement for corporate %political&

reasons because the technological and techni#ues although sometime adanced in

particular areas are familiar and easily understood there is a modicum of good sense

here because enhances access to corporate intellectual assets is ital 8ut it simply not

clear whether access itself will hae a substantial impact on business performanceespecially as mountain of new information are placed online 2nless the knowledge

management approach incorporate methods of leeraging cumulatie e"perience. $he

net result may not be positie and the impact of implementation may be no more

measurable than in traditional paper models.

C,lt,[email protected])iori&ti* a''roa*e& to !nowledge management:

-ultural0behaioristic approaches! with substantial roots in process re'engineering andchange management! tend to iew the %knowledge problem& as a management issue.

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$echnology through ultimately essential for managing e"plicit knowledge resources is not

the solution. $hese approaches tend to focus more on innoation and creatiity than on

leeraging e"isting e"plicit resources or making working knowledge e"plicit.

*ssumptions of cultural0behaioristic approaches often include:

• /rganizational behaior and culture need to be changed dramatically. In our

information intensie enironments! organizations become dysfunctional

relatie to business obecties.

• It>s the processes that matter! not the technology.

• Dothing happens or changes unless a manager makes it happen.

*ssessment: the cultural factors affecting organizational change hae almost certain been underalued! and cultural0behaioristic implementations hae shown some

benefits. 8ut the cause effect relationship between cultural strategy and business

benefit is not clear! because the %Eawthorne effect& may come into play and because

we still can>t make dependable predictions about systems as comple" as knowledge

based business organizations.

S(&temati* a''roa*e& to !nowledge management:

7ystematic approaches to knowledge management retain the tradition fath in rational

analysis of the knowledge problem: the problem can be soled! but new thinking of

many kinds is re#uired. 7ome basic assumptions:

• It>s sustainable results that matter! not the processes or technology or your

definition of %knowledge&.

• * resource cannot be managed unless it is modeled! and many aspects of the

organization>s knowledge can be modeled as an e"plicit resource.

• 7olutions can be found in a ariety of declines and technologies! and

traditional methods of analysis can be used to re'e"amine the nature of

knowledge work and to sole the knowledge problem.

• -ultural issues are important! but they too must be ealuated systematically.

mployees may or may not to be %changed&! but policies and work practices

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must certainly be changed! and technology can applied successfully to

business knowledge problems themseles.

*ssessment: unrepentant rationalists in the business world are taking a systematic

approach to soling the %knowledge problem&. 7ystematic approaches show the most

promise for positie cumulatie impact! measurability and sustainability.

Te !nowledge e*onom( i& te net .ooming e*onom( in a world of re*e&&ion:

In a world that is facing economic recession many are starting to ask =what is going to be the

ne"t booming economy! what are its characteristics and! how will it help us to grow out of

recession9>

*t knowledge'management 6online.com we strongly suggest that the ne"t booming economy

is already hereP It>s the rapidly growing knowledge economyP

More indiiduals! teams! organizations and inter' organizations networks will be restructuring

and renewing themseles with the primary purpose of profitability trading their knowledge to

add een higher alue! predominantly on the world wide web.

*lready we see more enlightened organizations deeloping and applying the knowledge they

hae about their industry! customers! partners and stakeholders! as their prime strategic asset!

and at the highest point in the alue chain. *nd many are becoming less inoled and more

open to profitably outsourcing the other business operations.

*round the world we hear automobile companies talking far more about their critical and key

knowledge areas of design! knowledge of manufacturing! knowledge of distribution!

knowledge of serice and support etc as their >crown ewels> or =master recipe>.

8ased on applying this key knowledge they then outsource the other business components.

4e hear the same from the aerospace industry! the food and agricultural industry! the health

care industry! in fact most! if not all! industries.

O,r !nowledge mantra i& B!nown and a''l( wat (o, !now te .e&t- and lin! to te

re&t

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Knowledge has become the key strategic asset for the 31st century and for eery organization

that alues knowledge it must inest in deeloping the best strategy for identifying!

deeloping and applying the knowledge assets in needs to succeed.

ery organization needs to inest in creating and implementing the best knowledge

networks! processes! methods! tools and technologies. $his will enable them to learn! create

new knowledge! and apply the best knowledge much faster.

ery indiidual who wishes to successfully participate in the rapidly growing global

knowledge economy must now consider the deelopment of their personal knowledge

management competencies as an =essential life skill> for the 31 st century.

It has been said many times! =knowledge will radically and fundamentally transform

economies>.

/ne thing is absolutely certain in this rapidly changing world.

Te .e&t !nowledge will alwa(& .e in demand

In! say! fifty years time you can be certain of one thing. Geaders of economies! industries and

organizations will always be ery interested in finding new and better ways to create and

apply knowledge.

Effe*ti)e !nowledge management i& a timele&& and *angele&& 'rin*i'le

$he strategies! methods and tools of knowledge management will undoubtedly

change! but the timeless principles will! of course! remain unchanged.

*nd to surie and succeed in the new global knowledge economy we must become far more

effectie and more productie. 4e must always strie for the best relations and highest

#uality.

$o do that! the successful organizations and indiiduals will not allow themseles to keep=re'

inenting the wheel> or =repeating the same mistakes>. $his is so costly and! we suggest that

good leaders will simply not tolerate! nor be able afford! such cost inefficiencies caused by

knowledge gaps and bad knowledge flows.

4ould the global financial crisis hae been preented or minimized with far more effectie

global knowledge management9

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;inally! those indiiduals and organizations that can best sense! become #uickly alerted to!

find! organize! and apply knowledge! with a much faster response time! will simply leae

the competition far behind.

*ll of this can only be achieed through good knowledge leadership that understands the

unchanging timeless principles for knowledge! that which transforms indiiduals and

organizations to become far more responsie and effectie players in a growing knowledge

economy.

Knowledge management i& for e)er(one

Nlobal and0or planetary knowledge management is becoming a reality today.

It is our belief that the knowledge economy is rapidly becoming the largest and most

successful and sustainable economy in the world.

Pro*e&& of !nowledge management &(&tem:

/rganization will hae many areas to improe but KM team should focus on all following

areas

.

Gearning from ;ailures in KM

-hief knowledge officer

Nenerations of Knowledge Management

Key focus area for Knowledge Management

4eb 8ased Knowledge Management.

4eb based knowledge management software

-ustomer knowledge management.

$earning from "ail,re& in KM:

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Knowledge Management is not all about success stories. -rucial organization learning comes

from failures where planed effort is put to get a well targeted outcome. ID the process of

Knowledge Management we call it lessons learned. "perimenting and learning is a

continuous process for a learning organization but learning from failures is important in such

a process. /rganizations should hae a right frame work and attitude to learn from its

failures. Eere are some of the key points to learn from failures.

4e identify or discuss about successful implementation or deeloping a new concepts

by any organization. 8ut we rarely discuss our failures. /rganization has to understand that

eery failure opens up way for improements and triggers learning and unlearning process.

/rganizations pass through a failures and learning process to deelop a successful product or

serices. Eere we are discussing about success which is an outcome of well targeted

approach. Dot a success happened by chance. ery failure is taken as a learning opportunity

in the process of deeloping better product and serices in a learning organization. 8ut we

rarely understand or discuss the process by which the new product or concept is deeloped.

$his process which is deeloped keeping in mind the people and its culture! is uni#ue to the

organization canHt be copied by others.

Ciscussions on failures usually not takes place because of three main reasons. /ne is

organizational culture where failures are not taken in proper sprit. /ften inestigation carried

out to identify the person responsible than identifying learning and short comings. 7econd is

lack of trust among the employees. 7haring of success and failures comes if culture of mutual

trust and beliee e"ists in the organization. 8laming others for failures leaes less chance for

learning. $his behaior known as Cefensie +easoning is well e"plained in the article

$eaching 7mart eople Eow to Gearn by -hris *rgyris in E8+ May'Lun 11. $hird is

aailability of platform to interact. Interactions should take place in a structured process by

giing the members a free and open atmosphere to e"plain or proect the failures. +oot cause

analysis discussion of a maintenance group is a good e"ample of this. Knowledge

Management encourages discussion on failures in a tool popularly known as -ommunity.

Eere members of a -op haing common interest regularly meet to share their failure and

success stories and help each other.

* productie failure is better than an unproductie success. 4e hae little to learn where

success is not because of targeted efforts. 4hereas each failure gies us insight and new way

to deelop or improe. *fter a successful completion of proects often the key peoples are

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shifted to other proects to transfer the knowledge gained or lessons learned from the

successfully or failed ones.

$o encourage learning and to limit the damage due to failures! organizations often create

prototypes or models to e"periment with different approaches. $his actie e"perimentation

usually does not affect the lie system resulting in minimal conse#uence damage and

proides a platform to understand cause and affect eents. Eere productie failures are

targeted to deelop new concepts and to better understand the system. 8asic assumptions and

standard procedures are often challenged to create new and improed process. 4ithout a

process of actie e"perimentation organization remains in the captiity of old assumptions

and practices.

Gearning from failure gies organizations the insight to moe forward and deelop new

learning. /rganization should not forget its past and should neer try to re'inent the wheel.

/rganization culture! mutual trust creates an atmosphere of sharing among employees to

drie the organization in its ourney of Knowledge Management.

Cief Knowledge Offi*er:

Co you hae a chief knowledge officer in your organization9 $here are different opinions on

haing a -hief Knowledge /fficer (-K/) or not. If your organization is a learning

organization and knowledge is shared across all the platforms and innoation is part of the

culture then why you need a -K/9 8efore that let us find out what the roll and responsibility

of a -K/.

-hief Knowledge /fficer has to facilitate knowledge creation! sharing! and innoation across

the organization to achiee its strategic obecties.

$he ultimate success of -K/ is to make all his or her responsibility or ob a part of all the

organization process or CD* so the absence of the -K/ is neer felt. 7o it is more likely that

a successful -K/ is who has no ob. ;or this reasons some organizations donHt hae a -K/

3?

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post and e"pect all seniors or diisional heads to perform the role of -K/ in their own

process. -K/ is not the chief information officer and is different in many ways.

-K/ hae the knowledge of facilitating innoation in all process of the organization so he

who knows the strategic re#uirement and knowledge creation. It is more likely that -K/ is

the ne"t Neneral Manager of the organization.

%eneration& of Knowledge Management:

Knowledge A)aila.le: "ir&t generation of Knowledge Management:

$he KM system should able to delier all the re#uired knowledge to the Knowledge worker as and when re#uired with a little effort. $he best practices should be shared among all the

employees to improe productiity. $here should be a way to discuss or access the systems

for Gesions learnt! root cause analysis! success stories etc. Knowledge workers must learn

from each

other e"perience and would able to discuss freely with all other member of the organization.

*ll documents! procedures! maintenance practices! system tools etc should be aailable and

can be easily access by the knowledge workers as and when re#uired. "perts yellow page!

community of practices encourages knowledge workers to innoate and share the

e"periences. ;re#uently *sked Ouestions on arious rules and procedures will help in

reducing time and efforts of different sections of the organization. * free flow of

information and knowledge is what targeted here.

Know wat we don9t !now: Se*ond generation of Knowledge Management

*re we good in all the areas9 4ere we are lagging9 Eow to bridge the knowledge gaps9

$hese are the #uestions the second generation of knowledge management will try to address.

/rganizations must always ealuate its own performance with others and find out the scope

of improements. *ll K'gaps need to be identified in a regular basis and to be presented to

the knowledge workers for discussion and innoation. $he target is not only to bridge the K'

gaps but to moe ahead with the e"perience gained in the process. $he door is always kept

open for new learning to improe the standard. $he organization canHt confined itself only to

facilitate re#uired knowledge flow for its knowledge workers on their day to day actiities

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but will make it more challenging to e"plore the best possible way to do the same ob.

8enchmarking standards always rose to new heights

Knowledge for te f,t,re: Tird generation of Knowledge Management

-an the organization find out what is going to be the ne"t technology in coming years9 4hat

the customers are going to looking for the product and serices in future9 4hat is working

today for the organization is going to work tomorrow also9 Eow fast the organization will

realign itself to change in market9 *ll these falls in third generation of knowledge

management. Eere all innoations! learningHs are targeted to future market re#uirements.

/rganization must find out the future re#uirement without any isible indication from the

present enironment. roducts are deeloped to set new standards. Do one has asked 7ony to

produce 4alkman5 neither had they found the demand for such a product from any market

research. Market may not know that such a product is re#uired. M7 /ffice deeloped by

Microsoft keeping an eye the growing use of - in eeryday life and long before they

anticipated the re#uirement

Ke( fo*,& area for Knowledge Management:

ery organization has many areas to improe or gie better result. It is known that an

organization e"ist for customers but the way to achiee this may not necessarily be same for

all. *fter returning from a conference one member of KM team has proposed to deelop

customer profile in an improed Q new manner. Ee was influenced by a success story of a

mobile serice proider who has substantially increased its customer base by understanding

customer and proiding a better serice. $his customer centric approach is to be copied and

applied in a manufacturing company. Eoweer in reality the company products were in high

demand and there is always shortage at market. $he company was e"panding its production

capacity. 8ecause of high capital cost and delay from e#uipment manufacturers and long

installation process the e"pansion was getting delayed. Eere in this case a faster completion

of capacity e"pansion would sere the customers interest better than proiding a better

customer profile or serice. $he KM team has missed the focus area to improe and got

carried away by some other success story which has worked in a different industry.

3F

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ery organization has its uni#ue strategic focus area. 8y focusing in this the KM team gets

ma"imum impact.

4hat are the strategic focus (or strategic) areas the KM team must identify. In a broad way

there are three areas and one of these three are to be the key (or strategic) focus area for the

organization.

1. Internal rocess improements or optimize operational efficiency

3.;ast Q innoatie product deelopment


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but in all most all cases a web browser is used as client end tool to access the KM system.

*dantages of web based knowledge management system

1. $his is easy to maintain as deelopment re#uirements are limited to the serer side.

-hanges can be done to the system easily and continues improement can be done to

the system.

3. $he client side any web browser can be used to access the serer. ;rom the users point

of iew they are comfortable with a web browser ( thanks to internet ) and they know

the common system of login 0 logout ! form entry etc so using a browser at client end

is always adantages than using any custom maid front end tool. $his is one of the

main reasons to go for a web based KM system. *ny new employee oining the

organization can use the system without any formal training on portal.


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Cepending on the serer support the programming language can be selected. 7ome of the

languages popularly used for scripting are Laa 7erer ages (L7)! *7 or *7 dot Det!

E! -old fusion! erl! etc. Catabase support is a common re#uirement in such cases as

details of files! members! system tracking etc are to be stored. opular database for web

applications are My7OG! M77OG! /racletc.

In the client side any web browser can be used to access the serer. opular browsers are M7

internete"plorer!DetscapeDaigator!;ire;o"etc.

Networ!

*n e"isting network can be used to deelop a web based KM system. Internet also can be

used for this with re#uired access limitations. /rganizations with offices in scattered

geographical locations can use BD (irtual priate network) which uses internet to create a

priate network. In such a system organization can keep its web serer inside its premises and

through BD outside offices can access the serer.

KMPortal

/ne web portal can be deeloped using any internet hosting solutions and access can be

restricted by login systems. 2sers with different leels of permission can access contributions

0 articles of different authors. $his type of system helps in sharing best practices! e"periments!

innoations! failure stories etc. KM portals are deeloped with database support to keep the

records of authors! members! access leels! isitor tracking and many other re#uirements.2sually all contributions of members> passes through a eteran approal system before it

goes to the public iew or the member iew. Members posting to the author! rating system!

feedback of users> members> management! admin area etc are some of the features generally

used in KM portal.

#e. =a&ed di&*,&&ion .oard or for,m

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* irtual community can be created by using 4eb based discussion boards. Cifferent sections

or areas can be created to create different sections for discussions. Eere the discussions are

aailable for all in the organization to iew 0 post 0 reply to the topics. $his is an ideal

solution for branch offices! communities located in different geographical areas but haing

common area of interest. $hey can share their common problems! areas of concerns!

e"perience and help each other in building a strong bond of networking. Gittle help from

organization in creating trust among members by organizing face to face interactie sessions

will encourage the members to actiely participate in the forums.

$here are many readymade scripts aailable in the market and one such system can be

deeloped in house keeping in mind the re#uirements of the organization. 2nder open source

community some scripts are popular for web application like E88!

=$O%S

4eb blogs are popular now days and companies hae utilized this tool to create awareness

and eole opinions on different issues. 8logs can be hosted in the company intranet or

popular blog sites like blogspot.com can be used to gie a platform to the employees to post

their iews. Many companies hae their blogging policy also.

E'ert S(&tem

Many organizations donHt know what they know. 8y encouraging employees posting their

problems or difficulties to an e"pert system organization can sae time and money in finding

best solutions to the problems. "perts> database with profile updating can be kept for the

public iew and #ueries can be posted to specific e"perts based on the areas of domain and

e"pertise of the e"ports. $his helps in creating innoation and learning culture in an

organization.

#e. =a&ed Knowledge Management &oftware:

4eb based knowledge management can be deployed in a company intranet or on the Internet

with or without secure login. -ompanies can deelop a knowledge management system using

the Internet with login access to all its employees located in different part of the world. *


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mobile work force can login to the KM (knowledge Management) portal from anywhere by

connecting to internet. Many such initiaties in the past hae gien good result to the

companies. 7uch systems help strategically to the company when company branches are

located in different geographical location and this gies a platform to the employees to share

best practices! problems! customer interactions etc and preent reinention of wheel. 4e will

discuss some of the tools here.


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CHAPTER 3

INDUSTR< COMPAN<

PRO"I$E


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INDUSTR< PRO"I$E

India is the worldHs second largest producer of food ne"t to -hina! and has the potential of

being the biggest with the food and agricultural sector. $he total food production in India is

likely to double in the ne"t ten years and there is an opportunity for large inestments in food

and food processing technologies! skills and e#uipment! especially in areas of -anning! Cairy

and ;ood rocessing! 7pecialty rocessing! ackaging! ;rozen ;ood0+efrigeration and $hermo

rocessing. ;ruits Q Begetables! ;isheries! Milk Q Milk roducts! Meat Q oultry!

ackaged0-onenience ;oods! *lcoholic 8eerages Q 7oft Crinks and Nrains are important

sub'sectors of the food processing industry. Eealth food and health food supplements is another

rapidly rising segment of this industry which is gaining ast popularity amongst the healthconscious.

India is one of the worlds maor food producers but accounts for less than 1. per cent of

international food trade. $his indicates ast scope for both inestors and e"porters. ;ood e"ports

in 1J stood at 27 S.J billion whereas the world total was 27 S?


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$he food industry includes:

• +egulation: local! regional! national and international rules and regulations for food

production and sale! including food #uality and food safety! and industry lobbying

actiities

• ducation: academic! ocational! consultancy

• +esearch and deelopment: food technology

• ;inancial serices insurance! credit

• Manufacturing: agrichemicals! seed! farm machinery and supplies! agricultural

construction! etc.

• *griculture: raising of crops and liestock! seafood

• ;ood processing: preparation of fresh products for market! manufacture of prepared

food products

• Marketing: promotion of generic products (e.g. milk board)! new products! public

opinion! through adertising! packaging! public relations! etc

• 4holesale and distribution: warehousing! transportation! logistics

• +etail: supermarket chains and independent food stores! direct'to'consumer!

restaurant! food serices

• -onsumer : nd user has one of the highest influences on the food industry through

things like preference

•

Definition&


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It is challenging to find an inclusie way to coer all aspects of food production and sale. $he

;ood 7tandards *gency! a goernment body in the 2K! describes it thus:

A...the whole food industry 6 from farming and food production! packaging and

distribution! to retail and catering.AT1U

$he conomic +esearch 7erice of the 27C* uses the term food system to describe the same

thing:

A$he 2.7. food system is a comple" network of farmers and the industries that link to

them. $hose links include makers of farm e#uipment and chemicals as well as firms

that proide serices to agribusinesses! such as proiders of transportation and

financial serices. $he system also includes the food marketing industries that link

farms to consumers! and which include food and fiber processors! wholesalers!

retailers! and foodserice establishments.AT3U.

Ind,&tr( &i0e

rocessed food sales worldwide are appro"imately 27S


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Main article: ;ood processing

;ood processing is the methods and techni#ues used to transform raw ingredients into food

for human consumption.;ood processing takes clean! harested or slaughtered and butchered

components and uses them to produce marketable food products.there are seeral different

ways in which food can be produced.

/ne /ff roduction $his method is used when customers make an order for something to be

made to their own specifications! for e"ample a wedding cake. $he making of /ne /ff

roducts could take days depending on how intricate the design is and also the ability of the

chef making the product.

8atch roduction $his method is used when the size of the market for a product is not clear!

and where there is a range within a product line. * certain number of the same goods will be

produced to make up a batch or run! for e"ample at Nregg>s 8akery they will bake a certain

number of chicken bakes. $his method inoles estimating the amount of customers that will

want to buy that product.

Mass production $his method is used when there is a mass market for a large number of

identical products! for e"ample! chocolate bars! ready meals and canned food. $he product

passes from one stage of production to another along a production line.

Lust In $ime $his method of production is mainly used in sandwich bars such as 7ubway! it is

when all the components of the product are there and the customer chooses what they want in

their product and it is made for them fresh in front of them.

#ole&ale and di&tri.,tion

* ast global transportation network is re#uired by the food industry in order to connect its

numerous parts. $hese include suppliers! manufacturers! warehousing! retailers and the end

consumers. $here are also those companies that! during the food processing process! add

itamins! minerals! and other necessary re#urements usually lost during preparation.

4holesale markets for fresh food products hae tended to decline in importance in /-C

countries as well as in Gatin *merica and some *sian countries as a result of the growth of


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supermarkets! which procure directly from farmers or through preferred suppliers! rather than

going through markets.

$he constant and uninterrupted flow of product from distribution centers to store locations is

a critical link in food industry operations. Cistribution centers run more efficiently!

throughput can be increased! costs can be lowered! and manpower better utilized if the proper

steps are taken when setting up a material handling system in a warehouse. (1)

(1) http:00www.groceryhead#uarters.com0articles03'1'108oosting'efficiency'at'the'C-

Retail

4ith populations around the world concentrating in urban areas! T?U food buying is increasingly

remoed from all aspects food production. $his is a relatiely recent deelopment! taking

place mainly oer the last years. $he supermarket is a defining retail element of the food

industry! where tens of thousands of products are gathered in one location! in continuous!

year'round supply.

;ood preparation is another area where change in recent decades has been dramatic. $oday!

two food industry sectors are in apparent competition for the retail food dollar. $he grocery

industry sell fresh and largely raw products for consumers to use as ingredients in home

cooking. $he food serice industry offers prepared food! either as finished products! or as

partially prepared components for final AassemblyA.

"ood&er)i*e

Main article: ;oodserice

"ood ind,&tr( te*nologie&

7ophisticated technologies define modern food production. $hey include many areas.

*gricultural machinery! originally led by the tractor! has practically eliminated human labor

in many areas of production. 8iotechnology is driing much change! in areas as dierse as

agrochemicals! plant breeding and food processing. Many other areas of technology are also

inoled! to the point where it is hard to find an area that does not hae a direct impact on the


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food industry. -omputer technology is also a central force! with computer networks and

specialized software proiding the support infrastructure to allow global moement of the

myriad components inoled.

Mar!eting

*s consumers grow increasingly remoed from food production! the role of product creation!

adertising! publicity become the primary ehicles for information about food. 4ith

processed food as the dominant category! marketers hae almost infinite possibilities in

product creation.

Media Mar!eting

* key tool for ;M-N marketing managers targeting the supermarket indusrty includes

national titles like $he Nrocer in the 2.K.! -heckout in Ireland! rogressie Nrocer in the

2.7. and riate Gabel urope for the entire of the uropean 2nion.

;ood processing is the set of methods and techni#ues used to transform raw ingredients into

food or to transform food into other forms for consumption by humans or animals either in

the home or by the food processing industry. ;ood processing typically takes clean! harested

crops or slaughtered and butchered animal products and uses these to produce attractie!

marketable and often long shelf'life food products. 7imilar processes are used to produce

animal feed.

"treme e"amples of food processing include the delicate preparation of deadly fugu fish or

preparing space food for consumption under zero graity.

•

Hi&tor(


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;ood processing dates back to the prehistoric ages when crude processing incorporated

slaughtering! fermenting! sun drying! presering with salt! and arious types of cooking (such

as roasting! smoking! steaming! and oen baking). 7alt'preseration was especially common

for foods that constituted warrior and sailorsH diets! up until the introduction of canning

methods. idence for the e"istence of these methods e"ists in the writings of the ancient

Nreek ! -haldean! gyptian and +oman ciilizations as well as archaeological eidence from

urope! Dorth and 7outh *merica and *sia. $hese tried and tested processing techni#ues

remained essentially the same until the adent of the industrial reolution. "amples of

ready'meals also e"ist from pre industrial reolution times such as the -ornish pasty and the

Eaggis

Modern food processing technology in the 1th and 3th century was largely deeloped to

sere military needs. In 1J Dicolas *ppert inented a acuum bottling techni#ue that

would supply food for ;rench troops! and this contributed to the deelopment of tinning and

then canning by eter Curand in 1J1. *lthough initially e"pensie and somewhat hazardous

due to the lead used in cans! canned goods would later become a staple around the world.

asteurization! discoered by Gouis asteur in 1JF3! was a significant adance in ensuring

the micro'biological safety of food.

In the 3th century! 4orld 4ar II! the space race and the rising consumer society in

deeloped countries (including the 2nited 7tates) contributed to the growth of food

processing with such adances as spray drying! uice concentrates! freeze drying and the

introduction of artificial sweeteners! colouring agents! and preseraties such as sodium

benzoate. In the late 3th century products such as dried instant soups! reconstituted fruits

and uices! and self cooking meals such as M+ food ration were deeloped.

In western urope and Dorth *merica! the second half of the 3th century witnessed a rise in

the pursuit of conenience! food processors especially marketed their products to middle'

class working wies and mothers. ;rozen foods (often credited to -larence 8irdseye) found

their success in sales of uice concentrates and A$B dinnersA. T1U rocessors utilised the

perceied alue of time to appeal to the postwar population! and this same appeal contributes

to the success of conenience foods today.

=enefit&


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Mass production of food is much cheaper oerall than indiidual production of meals from

raw ingredients. $herefore! a large profit potential e"ists for the manufacturers and suppliers

of processed food products. Indiiduals may see a benefit in conenience! but rarely see any

direct financial cost benefit in using processed food as compared to home preparation. oor

#uality ingredients and sometimes #uestionable processing and preseration methods detract

greatly from the oerall benefit gained by indiidual consumers.

More and more people lie in the cities far away from where food is grown and produced. In

many families the adults are working away from home and therefore there is little time for the

preparation of food based on fresh ingredients. $he food industry offers products that fulfil

many different needs: ;rom peeled potatoes that only hae to be boiled at home to fully

prepared ready meals that can be heated up in the microwae oen within a few minutes.

8enefits of food processing include to"in remoal! preseration! easing marketing and

distribution tasks! and increasing food consistency. In addition! it increases seasonal

aailability of many foods! enables transportation of delicate perishable foods across long

distances! and makes many kinds of foods safe to eat by de'actiating spoilage and

pathogenic micro'organisms. Modern supermarkets would not be feasible without modern

food processing techni#ues! long oyages would not be possible! and military campaigns

would be significantly more difficult and costly to e"ecute.

Modern food processing also improes the #uality of life for people with allergies! diabetics!

and other people who cannot consume some common food elements. ;ood processing can

also add e"tra nutrients such as itamins.

rocessed foods are often less susceptible to early spoilage than fresh foods! and are better

suited for long distance transportation from the source to the consumer . ;resh materials! suchas fresh produce and raw meats! are more likely to harbour pathogenic micro'organisms (e.g.

7almonella) capable of causing serious illnesses.

Draw.a*!&

?

http://en.wikipedia.org/wiki/Potatohttp://en.wikipedia.org/wiki/Ready_mealhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Diabeteshttp://en.wikipedia.org/wiki/Vitaminhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Producehttp://en.wikipedia.org/wiki/Potatohttp://en.wikipedia.org/wiki/Ready_mealhttp://en.wikipedia.org/wiki/Microwave_ovenhttp://en.wikipedia.org/wiki/Supermarkethttp://en.wikipedia.org/wiki/Diabeteshttp://en.wikipedia.org/wiki/Vitaminhttp://en.wikipedia.org/wiki/Consumerhttp://en.wikipedia.org/wiki/Produce


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In general! fresh food that has not been processed other than by washing and simple kitchen

preparation! may be e"pected to contain a higher proportion of naturally'occurring itamins!

fiber and minerals than an e#uialent product processed by the food industry. Bitamin -! for

e"ample! is destroyed by heat and therefore canned fruits hae a lower content of itamin -

than fresh ones.

;ood processing can lower the nutritional alue of foods! and introduce hazards not

encountered with naturally'occurring products. rocessed foods often include food addities!

such as flaourings and te"ture'enhancing agents! which may hae little or no nutritie alue!

or be unhealthy. reseraties added or created during processing to e"tend the Hshelf'lifeH of

commercially'aailable products! such as nitrites or sulphites! may cause aderse health

effects. 2se of low'cost ingredients that mimic the properties of natural ingredients (e.g.

cheap chemically'hardened egetable oils in place of more'e"pensie natural saturated fats or

cold'pressed oils) hae been shown to cause seere health problems! but are still in

widespread use because of cost concerns and lack of consumer knowledge about the effects

of substitute ingredients.

rocessed foods often hae a higher ratio of calories to other essential nutrients than

unprocessed foods! a phenomenon referred to as Aempty caloriesA. 7o'called unk food!

produced to satisfy consumer demand for conenience and low cost! are most often mass'

produced processed food products.

8ecause processed food ingredients are often produced in high #uantities and distributed

widely amongst alue'added food manufacturers! failures in hygiene standards in Hlow'leelH

manufacturing facilities that produce a widely'distributed basic ingredient can hae serious

conse#uences for many final products.

$he addition of these many chemicals for preseration and flaor hae been known to cause

human and animal cells to grow rapidly! without going into *poptosis.

Performan*e 'arameter& for food 'ro*e&&ing

?1

http://en.wikipedia.org/wiki/Vitamin_C#Natural_and_artificial_dietary_sourceshttp://en.wikipedia.org/wiki/Food_additivehttp://en.wikipedia.org/wiki/Empty_caloriehttp://en.wikipedia.org/wiki/Junk_foodhttp://en.wikipedia.org/wiki/Apoptosishttp://en.wikipedia.org/wiki/Vitamin_C#Natural_and_artificial_dietary_sourceshttp://en.wikipedia.org/wiki/Food_additivehttp://en.wikipedia.org/wiki/Empty_caloriehttp://en.wikipedia.org/wiki/Junk_foodhttp://en.wikipedia.org/wiki/Apoptosis


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4hen designing processes for the food industry the following performance parameters may

be taken into account:

• Eygiene! e.g. measured by number of micro'organisms per ml of finished product

• nergy consumption! measured e.g. by %ton of steam per ton of sugar produced&

• Minimization of waste! measured e.g. by %percentage of peeling loss during the

peeling of potatoesH

• Gabour used! measured e.g. by &number of working hours per ton of finished product&

• Minimization of cleaning stops measured e.g. by %number of hours between cleaning

stops&

COMPAN< PRO"I$E

?3

http://en.wikipedia.org/wiki/Hygienehttp://en.wikipedia.org/wiki/Energy_consumptionhttp://en.wikipedia.org/wiki/Hygienehttp://en.wikipedia.org/wiki/Energy_consumption


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Heritage at a %lan*e:

$he Eeritage Nroup! founded in 13 by 7ri Dara -handra 8abu Daidu! is one

of the fastest growing riate 7ector nterprises in India! with three'business diisions iz.!

Cairy! +etail and *gri under its flagship -ompany Eeritage ;oods (India) Gimited (E;IG)!

one infrastructure subsidiary ' Eeritage Infra Ceelopers Gimited and other associate

-ompanies iz.! Eeritage ;inlease Gimited! Eeritage International Gimited and Eeritage *gro

Merine riate Gimited. $he annual turnoer of Eeritage ;oods crossed +s.


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7ri Daidu held arious coeted and honorable positions including -hief

Minister of *ndhra radesh! Minister for ;inance Q +eenue! Minister for *rchies Q

-inematography! Member of the *.. Gegislatie *ssembly! Cirector of *.. 7mall Industries

Ceelopment -orporation! and -hairman of Karshaka arishad.

7ri Daidu has won numerous awards including A Member of the 4orld

conomic ;orumHs Cream -abinetA ($ime *sia )! A7outh *sian of the ,ear A ($ime *sia )! A

8usiness erson of the ,ear A (conomic $imes)! and A I$ Indian of the Millennium A ( India

$oday).

7ri Daidu was chosen as one of leaders at the forefront of change in the

year 3 by the 8usiness 4eek magazine for being an unflinching proponent of technologyand for his drie to transform the 7tate of *ndhra radesh .

"orward loo!ing &tatement&:

%4e hae grown! and intended to grow! focusing on harnessing our

willingness to e"periment and innoate our ability to transform our drie towards e"cellence

in #uality! our people first attitude and our strategic direction.

Mi&&ion:

8ringing prosperity into rural families of India through co'operatie efforts

and proiding customers with hygienic! affordable and conenient supply of A ;resh and

Eealthy A food products.

?i&ion:

$o be a progressie billion dollar organization with a pan India foot print by

313.$o achiee this by delighting customers with A;resh and EealthyA food products! those

are a benchmark for #uality in the industry.

4e are committed to enhanced prosperity and the empowerment of the

farming community through our uni#ue A+elationship ;armingA Model.

??


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$o be a preferred employer by nurturing entrepreneurship! managing career

aspirations and proiding innoatie aenues for enhanced employee prosperity.

Heritage Slogan:

4hen you are healthy! we are healthy

4hen you are happy! we are happy

4e lie for your AE*G$E Q E*ID77A

/,alit( 'oli*( of H"I$:

4e are committed to achiee customer satisfaction through hygienically processed

and packed Milk and Milk roducts. 4e strie to continually improe the #uality of our

products and serices through upgradation of technologies and systems.

EeritageHs soul has always been imbibed with an unwritten perpetual commitment to

itself! to always produce and proide #uality products with continuous efforts to improe the

process and enironment.

*dhering to its moral commitment and its continuous drie to achiee

e"cellence in #uality of Milk! Milk products Q 7ystems! Eeritage has always been laying

emphasis on not only reiewing Q re'defining #uality standards! but also in implementing

them successfully. *ll actiities of rocessing! Ouality control! urchase! 7tores! Marketing

and $raining hae been documented with detailed #uality plans in each of the departments.

$oday Eeritage feels that the I7/ certificate is not only an epitome of achieed targets! but also a scale to identify Q reckon! what is yet to be achieed on a

continuous basis. $hough! it is a beginning! Eeritage has initiated the process of

standardizing and adopting similar #uality systems at most of its other plants.

Commitment&:

?


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Mil! Prod,*er&:

-hange in life styles of rural families in terms of:

• +egular high income through co'operatie efforts.

• 4omen participation in income generation .

• 7aed from price e"ploitation by un'organized sector .

• +emuneratie prices for milk .

• Increase of milk productiity through input and e"tension actiities

• 7hift from risky agriculture to dairy farming

• Eeritage

• ;inancial support for purchase of cattle5 insuring cattle

• stablishment of -attle Eealth -are -enters

• 7upplying high #uality -attle feed

• /rganizing A+ythu 7adasuA and Bideo programmes for educating the farmers in dairy

farming

C,&tomer&:

• $imely 7upply of Ouality Q Eealthy roducts

• 7upply high #uality milk and milk products at affordable prices

• ;ocused on Dutritional ;oods

• More than ? lakh happy customers

• Eigh customer satisfaction

?F


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• 3? hours help lines ( V1 complaints a day)

Em'lo(ee&:

• nhancing the $echnical and Managerial skills of mployees through continuous

training and deelopment

• 8est appraisal systems to motiate employees

• Incentie! bonus and reward systems to encourage employees

• Eeritage forges ahead with a motto Aadd alue to eerything you doA

Sareolder&:

Ret,rn&:

-onsistent Ciidend ayment since ublic Issue (Lanuary 1)

Ser)i*e:

• Eighest impotence to inestor serice5 no notice from any regulatory authority since

31 in respect of inestor serice

• Bery transparent disclosures

S,''lier&:

Doelar: technical collaboration in Milk drinks! yogurts drinks and fruit flaoured

drinks *lfa'Gaal: supplier of high'end machinery and technical support ;ocusing on $etra pack association for products package.

So*iet(:

• otential mployment Neneration

more than


48/81

more than sales agents associated with the company

• mployment for the youth by proiding financial and animal husbandry support for

establishing MIDI C*I+I7

• roducing highly health conscious products for the society

/,alitie& of management 'rin*i'le&:

1. -ustomer focus to understand and meet the changing needs and e"pectations of

customers.

3. eople inolement to promote team work and tap the potential of people.


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Curing the year 3F' li#uid milk sales was +s.3J


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In the retail sector E;IG has outlets namely %;reshX&. In those stores the products

sold are egetables! milkQ milk products! grocery! pulses! fruits etc.

In Eyderabad 1 retail shops are there. In 8angaloreQ -hennai!


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CHAPTER I?

1


52/81

DATA ANA$


53/81

;IDCIDN:

1. 8y this #uestion we can say that the employees in the organization participate in

decision making.

3. $he employees in the organization agree that knowledge management helps in better

and fast decision making.


54/81

;IDCIDN7:

1. 8y this #uestionnaire we can say that the better usage of knowledge management helps

in increase of productiity.

3. $he better usage of knowledge helps increase in output of the company.


55/81

;IDCIDN7:

1. 8y the implementation of knowledge management the employees can hae better

options of sharing their practices with all.

3. $his knowledge management enhances the employees in sharing their best practices.


56/81

;IDCIDN7:

1. 8y this #uestion we can say that knowledge management helps to enter into different

market types.

3. $he employees in the organization say that by the implementation of knowledgemanagement we can enter into the different market types easily.


57/81

;IDCIDN7:

1. 8y this #uestion we can say that by the knowledge management the innoations in the

organizations increase by the employees.

3. Knowledge management helps in increase of the innoations in the organization.


58/81

;IDCIDN7:

1. 8y this #uestion we can say that knowledge management system helps in increase of

the market share of the organization

3. $he employees in the organization say that implementation of knowledgemanagement results in the improement of the market share.


59/81

;IDCIDN7:

1. 8y this #uestion we can say that knowledge management helps in increasing the

learning0 adaption capability of the employee.

3. $he employees in the increase there learning0 adaption capability by the knowledgemanagement.


60/81

;IDCIDN7:

1. 8y this #uestion we can say that knowledge management helps in the employee

attraction and retention process.

3. $he employees in the organization say that knowledge management also helps inattraction and retention of employees.


61/81

;IDCIDN7:

1. 8y this #uestion we can say that knowledge management decreases the

communication gap between the employees in the organization.

3. $he employees in the organization say that by knowledge management thecommunication of the employees> increases.


62/81

;IDCIDN7:

1. 8y this #uestion we can say that knowledge management increases the delegation of

authority and accountability of the employees.

3. $he organization employees also agree that knowledge management helps to increasethe delegation of authority and accountability of the employees.


63/81

;IDCIDN7:

1. 8y this #uestion we can say that the organization return on inestment improes by

the knowledge management.

3. $he employees in the organization agree that the return on inestment increases by theknowledge management.

s database.

7trongly agree *gree Deither agree nor

disagree

Cisagree

J ?3 1 13

F


64/81

;IDCIDN7:

1. 8y this #uestion we can say that all the information is uploaded in the database of the

organization.

3. $he employees in the organization agree that all the information about the processdescription and employees is uploaded in the database.


65/81

;IDCIDN7:

1. 8y this #uestion we can understand that by the knowledge management persons best

practices can be shared with other employees.

3. $he employees in the organization also agree that the employee>s best practices can beshared with other employees in the knowledge management.


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;IDCIDN7:

1. 8y this #uestion we can say that enabling the hardware and software technologies are

aailable to support learning rather control it.

3. Most of the employees in the organization are confused to say either the hardware andsoftware technologies are aailable to support learning rather control it.


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;IDCIDN7:

1. 8y this statement we can say that

Documents

Knowledge Management Heritage