What’s your “return on knowledge”?
The Knowledge Value Chain® (KVC) is a business process improvement methodology that applies modern management methods and technologies to organizational “knowledge processes”—including business strategy, market research, corporate intelligence, knowledge management, special libraries, and even R&D and legal research.
If you’re a business analyst, you probably know about the value chain, an analytic model popularized by Harvard professor Michael Porter in his 1985 book Competitive Advantage. But did you know that it can also be customized to apply to “knowledge work” itself—the processes of business research, analysis, and intelligence?
It can be—we’ve done it. The KVC methodology treats knowledge production and application as a specialized type of manufacturing process. This allows us to use ROI metrics and management techniques derived from other kinds of manufacturing to balance, optimize, and otherwise make the process more efficient and effective.
Compete more effectively by managing your organization’s knowledge better
The late Peter Drucker said, “The productivity
of
knowledge is the determining factor in the competitive position of a company, an industry, an entire country.”
Note that Drucker called organizational knowledge THE determining factor in competitiveness, not A determining factor. We agree, and add that knowledge is not a luxury—it’s mission-critical to competing effectively in a persistently turbulent global economy.
In plain words, you’ll be more successful by doing these three fundamental things:
- Know what you know,
- Know what you don’t know but need to know, and
- Know how to obtain and apply that knowledge.
The KVC starts with a single fundamental insight: Intelligence is not a cost, it’s an investment. The challenge is maximizing the return on that investment (ROI)—and demonstrating you’ve done so. The KVC methodology helps you maximize ROI by optimizing the efficiency and effectiveness of organizational intelligence and other knowledge processes.
How are companies using the KVC?
The theory sounds good—but does it work?
Our clients think so. The KVC methodology is being applied effectively in a range of industries and situations. Though training data, information, knowledge, and intelligence professionals is the KVC’s major application, our clients have recently pushed the boundaries to include:
- WORKFLOW DESIGN. A major pharmaceuticals company used the KVC to integrate the flow of product intelligence across R&D and sales teams. This resulted in a “knowledge synergy” that increased productivity and effectiveness.
- BUSINESS PROCESS DESIGN. A global information and media firm integrated KVC-based metrics directly into a Six Sigma business initiative that includes their corporate intelligence function. This resulted in a more efficient and effective intelligence process.
- INVESTOR PITCHES. A web-based information aggregator used the KVC to explain to potential investors how its information products would offer value to customers—and generate revenue.
- BOARDROOM AWARENESS. Another pharma-related company uses the KVC to educate senior management and their Board—that is, knowledge users—about the process by which intelligence is created.
- RESEARCH STRATEGIES DESIGN. The KVC can be used not only to execute and manage research projects and functions, but also to plan and design such activities. Working with SCIP Fellow and past President Dr. Martha Matteo, we’re developing a case study in the emerging bioplastics industry that helps knowledge producers (corporate intelligence professionals) gain skills in identifying and acquiring the information top management needs to support a specific strategic business objective (global market expansion).
- TECHNOLOGY GOVERNANCE. IT people play an integral role in the Knowledge Value Chain. We’re current exploring applications of the KVC methodology in redefining IT governance.
- MANAGEMENT EDUCATION. Two new books we’re aware of describe and/or reference the KVC framework. One of these is Competitive Intelligence: Improving Law Firm Decision Making by Ann Lee Gibson, Ph.D.
- CONSULTING. Two consultants we’re aware of are using the KVC framework in their own workshops (after requesting and receiving permission from us to do so.)
Can the KVC help your organization too? Contact us now so we can begin to understand the challenges you face, and how we can help you.
Is the KVC right for your organization?
The Knowledge Value Chain® Workbook is a low-risk, cost-effective way to learn the basics of the KVC model. Get your copy now so you can evaluate how the KVC can help your organization achieve better results.
UPDATE: Sorry, we are now SOLD OUT of hard copies. Please stay tuned for a new way to buy the KVC.
Time-challenged? Watch the video!
