Knowledge Management of Global Work
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Transcript of Knowledge Management of Global Work
Knowledge Management of Global WorkFrank Harmsen
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Agenda
• Welcome to Ernst & Young! • IT Knowledge in a Global Context• The ‘Distance’ notion• Keeping the Balance - The 6P Model
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Analysis
Design
Build
Test
Impleme-mentation
Amsterdam
HyderabadNew York
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Analysis
Design
Build
Test
Impleme-mentation
Amsterdam
HyderabadNew York
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Drivers for Offshore Outsourcing
Decreasing Availability of Skilled Personnel
Shortage of skilled IT workforce in developed nations Rising costs of Manpower in developed nations Growth of highly-skilled IT personnel in several low cost
developing countries
Emergence & Evolution of Outsourcing Companies
Increased maturity of the web & state-of-the-art infrastructure being developed worldwide
Evolution of successful distributed delivery models leading to a wide range of IT work being executed from offshore locations
Increasing Competitive Pressures
Increasing globalization and evolution of disruptive technologies is forcing companies across industries to: Provide superior customer service Reduce cost of operations across board Continued focus on rapid implementation of IT projects
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Onsite
Offshore
Onsite: Various locations (e.g., Netherlands) Retention of regional business
knowledge Continuity Local language Single point of contact
Offshore: SE Asia, China, Africa Lower cost Resources Quality
Nearshore
Nearshore: Spain, Canada, Mexico Easier Travel Cultural Similarities Time Zone Nearshore technical
skills to deal with show-stoppage situations
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Transportation costs for bits are zero
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Client interaction, Interviews, Reviews, Program Leadership, & Goal-Setting
Analysis and synthesis Background research, thought leadership, & information support.
Architecture, Requirements, Change Mgmt, & Implementation
Requirements analysis, High level Design, & Prototype building, & Implementation support
Detailed design, Code Development, Testing & Integration
Client Interaction, Process Mapping, Solution Definition, Architecture, Change & Program Mgmt
Prototype Building, High Level Design, & Implementation Support
Custom Components, Integration Interfaces, & Reports Building
First-level support, Facilities support, & Program Mgmt
Near-site support centers, Service Redundancy
Large Offshore Centers, Core Service Delivery
(e.g. Captive units of GECIS, American Express, Citibank, British Airways)
Source: Infosys Framework - Evolution of GDM= Lower Ratio of Resources
= Higher Ratio of Resources
On site Nearshore Offshore
Strategy and Roadmap Definition
Application Development, Integration and Maintenance
Systems Integration and Package Implementation
IT and BPO Support
Organizations determine their desired / optimal global locations for various activities
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India China USA0
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• Overall a 25% to 35% cost advantage is expected in offshore destinations versus costs in the US
• The primary source of benefit is salary, but infrastructure, training and other costs are likely to be higher offshore
General Salary LevelsSalary Cost at Infosys
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CultureGeography
Time ZonesGovernance & Control
LanguageStability
SecurityLegislation
Knowledge
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Distance Matters! (1)
• Collaboration over distance is hard… particularly…– for innovative activities– when you need to be close to your
customer– when requirements are not well-specified.
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Distance Matters! (2)
Negative impacts of distance:– Slows work– Leads to breakdowns– Increases chance of failure– Increases risks– Requires more oversight, control,
governance, travel.
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(Fabriek, 2007)
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Paradigm
Shorten the distance(s)! Balancing the 6 P’s:
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Paradigm Underpinning Way of Thinking, e.g.
Anglo-Saxon vs Rheinländisch East vs West Structured vs Evolutionary
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People Culture Coherence Human, Social and Customer Capital
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Process Delivery models
OneTeam Networked Front Office / Back Office
Methods and Method Engineering One way of working… But tailored to the situation
at hand
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Planet Sustainability, ecological footprint Corporate responsibility Labor environment at offshore locations
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Profit Benefits versus costs Investments in retained organization Intellectual capital!
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Products Software tools
Wiki Proprietary tools, databases
Hardware tools Videoconferencing
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Example of a Product: CPort
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Questions?