Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Discount or incentive
Reexamination Certificate
1999-02-05
2002-06-25
Hafiz, Tariq R. (Department: 2163)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Discount or incentive
C705S001100, C705S007380, C705S500000
Reexamination Certificate
active
06411936
ABSTRACT:
TECHNICAL FIELD
This invention pertains generally to the field of knowledge-based computer and processing systems and more particularly, to the field of knowledge management systems, model driven decision support systems, and data and information driven decision support tools for enterprise value enhancement.
BACKGROUND OF THE INVENTION
The intellectual assets of a corporation are typically three to four times the tangible book value. With roughly 15% of the US workforce employed in the information sector today, the knowledge industry represents 33% of GDP and generates more than 50% of all corporate profits. Knowledge has essentially become the primary ingredient of whatever is made, done, bought and sold. Value creation in the enterprise is thus becoming increasingly dependent on “knowledge productization,” which in turn is driven by knowledge activity. Growth, therefore, can be achieved only through increased knowledge activity.
Despite this trend, less than 2% of the number of major corporations grew total shareholder return by more than 35% per year over the last decade, and less than 1% of all companies grew earnings by more than 50% per year over the last five years. One of the major factors responsible for this is the lack of sufficient knowledge management systems for enterprise value enhancement.
Enterprise value enhancement, a business and knowledge management process to dynamically improve enterprise-wide business results—and thereby continuously renewing and increasing the fundamental value of the enterprise, has become more challenging than ever before for senior management. The business environment is increasing in complexity and uncertainty, and product and industry life cycles are becoming shorter. Moreover, as the business world becomes more digitally connected, the need for dynamic mass-customized solutions to add value seems to be on the rise.
FIG. 1
shows the evolution of value-adding mechanisms over time.
Value creation in the enterprise has thus far been predominantly a passive strategy responding to market movements rather than a proactive strategy pervading all functions and occurring throughout the enterprise by identifying all the opportunities and all the spaces in which to add value.
FIG. 2
presents a unique way to visualize the process of value creation, which is in many ways similar to filling a large room with Ping-Pong balls. As demonstrated, different ways of aligning and orienting the balls along the walls of the room yield significantly different counts of balls that can fit the exact same room dimensions. Value creation is dependent upon strategy, and the notion of strategy as “the gentle art of re-perceiving” does make strategy an inherently creative process, but business creativity is much broader in that it encompasses both innovation and entrepreneurship.
Creativity is how value is derived from new ideas and the processes by which those ideas are developed, typically following the commercialization process, the steps of which are outlined in FIG.
3
.
The delivery of enterprise value enhancement on an on-going basis with certainty is becoming more difficult in the fast-changing business landscape primarily because value enhancement is still an art rather than a science. The essential contributors and drivers of value enhancement are still the humans with expertise retained within themselves and upon whom a heavy reliance for knowledge transformation is placed, despite great technological advancements. The ‘fishschool’ effect, where everyone follows a mission or direction regardless of whether the overall strategic objectives are being met at every step along the way, is ideal for project implementation and is therefore even desired for effective project management. Value enhancement, on the other hand, is essentially a process of continually gathering innovative ideas across the enterprise, integrating them seamlessly with strategic initiatives, and then deploying them through ‘implementation solutions’ based on enterprise potential and desired speed, the latter two factors linked to the resources available to the enterprise in question. A value enhancement perspective results in continuously optimized value delivery through all the elements of the value add cube as can be seen in FIG.
4
. Enterprise value enhancement is thus a function of strategy, marketing, finance, and the collective application of enterprise creativity and knowledge assembled in a flow designed for continuous renewal and dependent, among other factors, upon flow rates and queues.
Knowledge has been defined as an opinion, idea or theory that has been verified empirically and agreed upon by a community. In a sense, it is defined as a justified, true belief and this view ignores tacit knowledge. Management on the other hand is the cyclical process of planning, organizing, action, control and feedback. Knowledge management is a discipline that promotes an integrated approach to identifying, managing and sharing all of the information assets in the enterprise, including databases, documents, policies and procedures as well as unarticulated expertise and experience resident in individual workers. Knowledge itself is an elusive asset which is why knowledge management, a discipline that manages and improves the organizational learning process, must be baked into the enterprise. The human factor is very critical and knowledge management, for all its importance, is still maturing.
The recent focus of knowledge management systems has been on effective information access that improves and speeds up the learning process, and such systems facilitate the collection, organization and transfer of knowledge aided by search engines, relational and object databases, GroupWare and other technologies. The core component of current knowledge management systems is the knowledge warehouse, and the emphasis is mainly on explicit knowledge. Knowledge, however, in the broadest sense, resides mostly inside people, with their portfolio of know-how, memory of past solutions, understanding of what works well, and their ability to see patterns and come up with fresh solutions that have a high probability of success. An enterprise needs to be well stocked with such tacit knowledge. The need today is for streams of ideas that can continuously enhance value or, in other words, knowledge flow with a focus on value creation.
Enterprise value enhancement, which pertains to the field of knowledge management, enables an entire organization to be collectively engaged in the process of contributing to the knowledge generation, knowledge communication and knowledge distribution process, the essential steps in productizing knowledge, whether for a product or for a service. Knowledge generation is fueled by knowledge communication across the enterprise, and value addition ultimately takes place through the transformation of knowledge activity into offerings, namely through the process of knowledge distribution. Enterprise value enhancement thus depends upon the systematic extraction of explicit and tacit knowledge within the enterprise and its continuous conversion to new, value through the creativity process via highly efficient implementation methodologies eliminating the typical knowledge “siloing” effects that tend to take place in corporate settings.
It is estimated that less than one-fifth of all intellectual capital available to an enterprise is actually utilized. The gross under-utilization of this very important knowledge resource occurs for various reasons some of which are sub-optimized organizational structures, lack of systems for capturing creativity, and interspersed ‘human elements’ such as the lack of motivation and the presence of ego. Opportunities for innovation, which is invention realized or commercialized, do not emerge from sophisticated analysis of data or from a rearrangement of existing information into different formats—they emerge from experiences and insights and mostly in environments that encourage creativity. Enterprise value enhancement is about the systematic collective
Eugene Stephens & Associates
Hafiz Tariq R.
NVal Solutions, Inc.
Robinson-Boyce Akiba
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