What’s your ‘return on knowledge’?
The Knowledge Value Chain® (KVC) is an organizational process improvement methodology focused on knowledge processes—business strategy, market research, corporate intelligence, knowledge management, special libraries, and even R&D and legal research.
If you’re a business analyst, you know about the value chain, an analytic model popularized by Harvard professor Michael Porter. But did you know that it can also be applied to knowledge work itself—the processes of business research, analysis, and intelligence?
We think it can—and we’ve done it. The KVC methodology treats knowledge production and use as a specialized type of manufacturing process. This allows us to use ROI metrics and management techniques derived from traditional manufacturing to balance, optimize, and otherwise make knowledge-based processes more effective and efficient.
How does managing knowledge better help you compete better?
The late Peter Drucker wrote, “The productivity
of knowledge is the determining factor in the competitive position of a company, an industry, an entire country.”
Drucker was the first to realize that knowledge is the single most important factor in organizational competitiveness. Knowledge is not a theory, and it’s not a luxury—it’s a mission-critical resource you need to compete effectively in a persistently challenging global economy. We believe the only true ’sustainable competitive advantage’ comes from acquiring organizational knowledge faster and better, and converting that knowledge into enterprise value faster and better, than your rivals.
To achieve this ‘knowledge advantage’, you need to systematically understand 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 premise: Knowledge is not a cost, it’s an investment. The challenge is in maximizing the return on that investment (ROI)—and in demonstrating you’ve done so. The KVC methodology helps you maximize ROI by optimizing the efficiency and effectiveness of organizational research, intelligence, and other knowledge processes.
How are companies using the KVC?
The KVC methodology is being applied in a range of industries and situations. Training professionals in data, information, knowledge, and intelligence disciplines was the KVC’s original goal, and still one of its major uses.
Our clients have been applying the KVC in a number of innovative ways:
- 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. We’ve completed a major effort doing this at the enterprise level for a financial services firm.
- TECHNOLOGY GOVERNANCE. 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!