KNOWLEDGE  MANAGEMENT (KM):
COGNITIVE  COMPETENCIES  AND TECHNOLOGICAL  SKILLS

Volume 10, Number 5                                                                                       December 2003

 

BUSINESS  INTELLIGENCE (BI) and  TRANSFORMATIONAL  LEADERSHIP

                                                   
        Electronically Networked Intelligent Enterprises (ENIEs) are changing the very nature of business, economic, and education development.  Virtual Communities Of Practice (VCOP) are critical to achieve digital dividends.  What characteristics are essential for ENIEs via VCOPs?  What BI strategies must business enterprises and communities adopt to remain competitive?

          Globally Competitive Communities, Electronically Networked Communities, and Intelligent Communities were highlighted in previous issues of KM.  And, articles about above-mentioned questions have been included in KM ranging from consumer-centric to technology-centric issues.

Articles focused on BI begin this issue of KM and are followed by a series of topics about the use of BI and KM in economy sectors including e-commerce, B2B and B2C, in Financial Services.

          Can organizational theory inform the designers and implementers of business intelligence (BI) systems to help increase the likelihood of their success?  The link between BI and the organization that uses it is that an organization collectively is a cognitive system: it senses the environment, makes a representation of it, acts on the basis of the representation and learns from the results of its actions, storing its experience as institutional memory.  A BI system supports this process at various levels of organizational learning.

Kurtyka, Jerry (November 2003). Implementing Business Intelligence Systems: An Organizational Learning Approach.  DM Review, 13(11), 42-45.  http://www.dmreview.com  

          Between the worlds of strategy and execution lies the vast space of BI.  On the strategy side, BI answers questions about what happened: What can be improved?  What isn’t yielding value to the corporation?  On the execution side, BI is key to answering questions about what’s happening now: How is the value chain flowing?  Where are the stoppages?  Is marketing coordinated with suppliers, logistics, distributors, and stores?

Morrill, Lelia & Warudkar, Hemant (November 18, 2003).  From Strategy to Execution.
Intelligent Enterprise, 6(18), 21-27.      http://www.intelligententerprise.com
 

          Accepting deposits and lending out money at interest has been the core of banking for centuries.  But, advances and applications of technology have altered banking significantly during the past decade, Business-to Business and Business-to-Consumer, for the diverse array of establishments within the Financial Services Sector 52 category of the U.S. Census Bureau.

          An Economic Census is taken every five years, years ending in a “2" and a “7," using the North American Industry Classification System (NAICS).  It provides information for 20 broad business groups (sectors) with over 1,100 detailed industry classifications.  Sectors include:

                    NAICS Sector Name                                           Sector Number

Accommodation and Food Services                                                  72
Administration and Support and Waste Management                         56
Agriculture, Forestry, Fishing, and Hunting                                        11
Construction                                                                                   23
Educational Services (except schools, colleges, universities)              61
Finance and Insurance                                                                     52
Health Care and Social Assistance                                                   62
Information                                                                                      51
Management of Company and Enterprises                                         55
Manufacturing                                                                                 31-33
Mining                                                                                            21
Other Services Except Public Administration                                     81
Professional, Scientific and Technical Services                                  54
Public Administration                                                                       92
Real Estate and Rental and Leasing                                                  53
Retail Trade                                                                                     44-45
Transportation and Warehousing                                                       48-49
Utilities                                                                                           22
Wholesale Trade                                                                             42 

          Financial Services Sector 52 category includes (a) financial services establishments and (b) insurance services establishments.  Categories of institutions include commercial banking, savings institutions, depository institutions, credit unions, etc.    http://help.econ.census.gov
The 2002 Economic Census collected e-commerce, e-supply chain, and categories of other useful information for creating a business plan and for growing or maturing a business.  
 
          All borrowers and depositors are shareholders in the Financial Services Sector and need to be aware of how e-transactions are evolving and applications of technologies because they can be beneficiaries or victims of changes in the industry as seen in increases in fraud and identify theft.   Awareness is necessary but insufficient for employees. 

           How can programs to prepare a critical mass of intellectual capital and technologically proficient remain state-of-the-art and be able to cope with domestic and global issues related to multi-national financial services enterprises?

          What basic research is necessary about e-commerce applications by providers of various services within the sector in Business-to Business (B2B) and Business-to-Consumer (B2C)?
 
                      
Addie Mac (Fannie Mae)  http://www.perfectloan.biz/  
AFLAC @  http://www.aflac.com
American General @  http://www.aigag.com
AnchorBank  http://www.anchorbank.com
Associated Bank  http://www.associatedbank.com
Bank of America   $ 769,179,000  http://www.bankofamerica.com
Bank of New York   $ 99,604,000  http://www.bankofny.com
Bank One   $ 299,463,000   http://www.bankone.com
BB&T Corporation  $ 80,444,806  http://www.bbandt.com
Capital One  http://www.capitalone.com
Charles Schwab @  http://www.schwab.com
Citigroup, Inc.   $ 1,187,035,000  http://www.citigroup.com
Countrywide Credit @  http://www.countrywide.com
First Fed Savings  http://www.356bank.com
Fifth Third Bancorp  $ 88,264,838  http://www.53.com
FleetBoston Financial  $ 197,128,000  http://www.fleet.com
F&M Bank - WI  http://www.fmbanks.com
FMR @   http://www.fidelity.com
Hartford FS Group @  http://www.thehartford.com
Household Interntl @  http://www.household.com
Johnson Bank   http://www.johnsonbank.com
J.P. Morgan Chase @  $ 802,603,000  http://www.chase.com
KeyBank  $ 85,497,000  http://www.keybank.com
M&I Bank  http://www.mibank.com
Mellon Financial @  http://www.mellon.com
National City Corp  $ 123,392,239  http://www.nationalcity.com
PNC FS Group @  http://www.pnc.com
Progressive @  http://www.progressive.com
State Street Corporation  $ 83,102,299   http://www.statestreet.com
SunTrust Banks  $ 120,857,299   http://www.suntrust.com
U.S. Bankcorp   $ 194,899,000   http://www.usbank.com
Wachovia @  $ 364,285,000  http://www.wachovia.com
Wells Fargo Bank  $ 369,645,000  http://www.wellsfargo.com
 
Key:   @ Financial Services (FS) Industry EC Leaders by InformationWeek (KM, Aug. 2002, p. 3). $ Assets (Figures in article by Paul Sweeney http://www.chiefexecutive.net ).  

Sweeney, Paul (November 2003).  The General of Fifth Third.  Chief Executive, (193), 42-45. Source: SNL Financial LC, as of September 5, 2003.  http://www.snl.com
  

CFO has released a winter 2003 special issue containing 20 trends that will drive IT strategies.  The 20 trends are discussed in four categories:
(a) IT Management
(b) Core Technologies
(c) Emerging Technologies
(d) Financial Systems. 

IT Management contains:
(a) IT Budgets & RO
(b) Internal Control
(c) Software Licensing
(d) Outsourcing
(e) Utility Computing. 

Core Technologies contains:
(a) Enterprise Suites
(b) Linux
(c) Collaborative Computing
(d) Security
(e) Storage Systems. 

Emerging Technologies contains:
(a) Grid Computing
(b) Composite Applications
(c) 64-Bit Computing
(d) Nanotech
(e) Wireless/Mobile Computing. 

Financial Systems contains:
(a) Business Intelligence
(b) Data Visualization
(c)   Risk Management
(d) Electronic Payments
(e) XBRL.                     

http://www.cfo.com


          New research ... found that the volume of new information stored on paper, film, optical and magnetic media doubled between 1999 and 2002.  Last year along, enough new information was generated to fill half a million libraries, each the size of the Library of Congress. 
http://www.cfo.com     
http://www.sims.berkeley.edu/research/projects/how-much-info-2003/     
    

         
           On May 23, 2002, the Federal Trade Commission (FTC) issued a final rule under the Graham-Leach-Bliley Act (GLB), entitled Standards for Safeguarding Customer Information, that became effective one year later on May 23, 2003 (the Safeguard Rule).

          On February 20, 2003, The Department of Health and Human Services (DHHS) published the long-awaited Final Security Regulations under HIPPA that became effective on April 21, 2003, with a compliance deadline of April 21, 2005 (the Security Rule).  The Security Rule requires covered entities that posess, process or transmit electronic protected health information (EPHI) to do the following: ....  The HIPPA Privacy Rule that became effective in April 2003, applies to all forms of protected health information including paper records.

          Finally, on June 5, 2003, the Securities and Exchange Commission (SEC) published final rules for Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) that will be effective on June 15, 2004, for all SEC reporting companies with a market capitalization in excess of $75 million and on April 15, 2005, for all companies that file periodic reports with the SEC (the 404 Rules).

Goldman, Jack (November/December 2003).  A BC Overview of Sarbanes-Oxeley, HIPPA, and
Graham-Leach-Bliley Acts. Community Insights 1(6), 34-41.
http:// www.communityinsights.com

Access additional HIPPA information in KM: Oct., 2003, pp. 2 and 3; Aug., 2003, p. 6.
 

CRN announced its top 25 doer and thinker executives in the November 17, 2003, issue that contains vision statements by the leaders plus company innovators.  http://www.crn.com
Our vision for the on-demand era is gaining real traction – and that represents a ....

  1.  Sam Palmisano                IBM                                   http://www.ibm.com
  2.  Steve Ballmer                  Microsoft                            http://www.microsoft.com
  3.  Carly Fiorina                   Hewlett-Packard                  http://www.hp.com
  4.  Larry Ellison                   Oracle                                 http://www.oracle.com
  5.  Scott McNealy                Sun Microsystems               http://www.sun.com
  6.  Sanjay Kumar                 Computer Associates           http://www.cai.com
  7.  Gary Bloom                     Veritas Software                  http://www.veritas.com
  8.  Paul Otellini                    Intel                                    http://www.intel.com
  9.  Steve Jobs                      Apple                                 http://www.apple.com
10.  Hideki Komiyama            Sony Electronics                 http://www.sony.com
11.  Linus Torvalds                 Open Source Dev. Labs        http://www.osdl.org
12.  Matthew Szulik               Red Hat                               http://www.redhat.com
13.  Darl McBride                  The SCO Group                    http://www.sco.com
14.  Mike Cox                       Logicalis                              http://www.logical.com
15.  Ed Coleman                   Compucom                          http://www.compucom.com
16.  John Chambers              Cisco Systems                     http://www.cisco.com
17.  Gil Shwed                      Check Point Software            http://www.checkpoint.com
18.  John Thompson              Symantec                             http://www.symantec.com
19.  Steve Raymund              Tech Data                             http://www.techdata.com
20.  Mike Grainger                 Ingram Micro                        http://www.ingrammicro.com
21.  Bob Huang                     Synnex                                http://www.synnex.com
22.  Gary Brothers                 D&H Distributing                   http://www.dandh.com
23.  John Edwardson             CDW                                    http://www.cdw.com
24.  Michael Dell                   Dell                                      http://www.dell.com
25.  Meg Whitman                 eBay                                    http://www.ebay.com
 

          This year, Under Armour Performance Apparel, the seven-year-old company Plank launched ..., ranked second on the Inc. 500 list and will top $110 million in revenue.

Hyman, Mark (December 2003).  How I Did It.  Inc., 25(13), 102-104. http://www.inc.com
          (Access entrepreneur topics in KM: Oct., 2003, p. 1; Aug., 2003, p. 1. 

This article contains examples of companies that have benefitted via business cast flow factoring.
And, the article contains a list of establishments engaged in factoring and contact information.
 
Mayer, Martin (December 2003).  Taking the Fear Out of Factoring.  Inc., 25(13), 90-99.
 

          Technology often arrives in three stages.  In the pioneer stage, people solve a basic problem.  This stage usually begins with, ‘Gee wouldn’t it be great if I could only ...?’ and ends with a new technology paradigm.

          In the completeness stage, the possibilities (service-oriented architectures, standardized interfaces, Internet integration) and limitations (no metadata, lots of manual coding, limited database connectivity, poor workflow, etc.) of pioneering technology are identified, and new components are engineered to fill the gaps.  The result was the birth of EAI and business-to-business (B2B) suites, which can today solve almost any integration challenge, given resources.

          The third stage of technology is characterized by segmentation and focus.  In building out complete technology solutions, vendors and users find that different problems require different technologies – and one seldom needs all capabilities in a given project.  The result is a range of purpose-specific tools: in this case, exemplified by product domains such as the enterprise service bus (ESB) and the application router.  (Author discusses Islands of Integration, Intelligence in the Network, The Changing Face of Integration, and other topics).      http://www.bijonline.com

Meyer, Fred (Nov. 2003).  Rethinking Integration.  Business Integration Journal, 5(11), 21-24. 


          When Ralph Petroff saw what ultra-wideband (UWB) technology could do for wireless communications, his life took an unexpected turn. ....  But, once he saw the technology UWB pioneer Larry Fullerton was developing, Petroff caught the entrepreneurial bug all over again.

          UWB is nothing short of the reinvention of the radio, says Petroff.  Whereas traditional radio uses a carrier signal turned to a specific frequency, UWB uses short digital pulses spread across a frequency spectrum.  Originally designed for the military, the technology can be used to detect people through walls or rubble, as a position location device to pinpoint items with more accuracy that global positioning satellite (GPS) technology or as a highly secure communications method capable of carrying more data at lower levels than existing wireless technologies. (For more on the technology, see “Unleashing UWB,” Sept. 2003, p. 62).  http://www.eb-mag.com

Harbart, Tam (Nov. 2003).  Making Waves in Washington.  Electronic Business, 29(14), 42-50.
          (Access information about ultra-wideband technology in KM, Nov., 2003, p. 6). 


          2003 was a year of rebirth for the CRM industry.  Vendors released more vertical applications than ever before.  Hosted CRM solutions became entrenched in the market.  The mid-market became the new hot target.  And marketing began to get its due attention ....

          As these trends took shape – and then took hold – it became increasingly clear that they are not fads.  ... hot trends now will likely be considered business as usual by the end of 2004.
 
Schneider, Martin (December 2003). The Year in (P) Review.  Consumer Relations Management,
          7(12), 26-30.  http://www.destinationCRM.com      (Access in KM, Oct., 2003, p. 3).
 
          You have received an RFP from Financial Service (FS) firms in a large region to analyze   activities by e-commerce leaders in the industry as well as among the firms participating in the project for the purpose of recommending a mosaic of actions to be initiated collectively and unilaterally to remain competitive, domestically and globally.  You had served as a consultant to many of the FS firms as they began to convert to digital technology and also assisted them in the Economic Census by the Census Bureau in 1992 and 1997.  You assisted with electronic filing of the 2002 Economic Census requiring e-commerce, e-supply chain, and other new information.  What methodology and procedures would you recommend?  How are Business Intelligence (BI) real-time information systems used to meet challenging economic environments?

Balogh, Jason (December 2003).  Finance Business Intelligence. DM Review, 13(12), 50-56.  
                 
http://www.dmreview.com  

http://www.wsreview.com

http://www.dataWarehouse.com

          (Also, access the 2003 top 100 BI providers in the December issue of DM Review).          

Zhu, Kevin, and Kraemer, Kenneth L. (Sept. 2002). “e-Commerce Metrics for Net-Enhanced
          Organizations: Assessing the Value of e-Commerce to Firm Performance in the
          Manufacturing Sector.”  Information Systems Research 13(3), 275-295.


Ferguson, Kevin (November 2003).  Mission Control.  Inc., 25(12), 27-28. 
http://www.inc.com

Kontzer, Tony (Nov. 17, 2003).  Real Time Teamwork.  InformationWeek, Issue 964, 57-69.
http://www.informationweek.com

Pallay, Jessica (December 2003).  Innovative Institutions.  Wall Street & Technology, 16-20.
http://www.wallstreetandtech.com/innovators

Redcliff, Deborah (October 27, 2003).  SMPD Blue.  NetworkWorld, 20(43), 54-55.
http://www.nwfusion.com

Schmerken, Ivy (December 2003).  Holistic Compliance.  Wall Street & Technology, 22-26.
http://www.wallstreetandtech.com

Schwartz, Ephraim (11.17.03).  IT On Wheels.  InfoWorld, 17(45), 63-68. 
http://www.infoworld.com

Ulfelder, Steve (October 27, 2003).  Mobile Grows Up.  NetworkWorld, 20(43), 51-54.
http://www.nwfusion.com

          The December 2003 issue of Hispanic Business contains a special culture report with four
excellent articles

(a) A Melting Pot With Flavor
(b) A Bicultural Bias
(c) Language of the Middle Class
(d) Affluence in Two Cultures. 
http://www.hispanicbusiness.com/go/culture
 

         Numerous issues will be important in the future.  No issue will be more important, however,
than Human Resources Development (HRD).  Employee and Personnel Departments of the 1960s and 1970s evolved into Human Resources Management Departments (HRMD) and most often had a focus on benefits, payrolls, and other functions primarily related to managing corporations in the 1980s.  During that era, managers began to more fully realize the value of human resources and their basic needs and wants for “development.”  All too often, however, development focused primarily on the needs of the firm.  Innovative leaders began to realize the value of clear mission and vision statements, a clear philosophy about business-level strategies plus social responsibility, and clarity in goals and objectives to which meaningful and purposeful training could be related.   A focus is emerging for a “gap” analysis to guide human performance improvement action plans. 


          “GetEducated Consulting served as an expert source for data about degrees online for an article by Janna Braun that appeared in The Wall Street Journal on 20 October 2003.
         
          About 200 accredited schools now offer MBA degrees over the Internet, compared with only three in 1989, according to educational research firm Eduventures Inc.  The population of online M.B.A. students last year soared to more than 100,000 from about 5,000 in 2000.

          ‘You can get a really great degree for a small amount if you can find the right school,’ says Vicky Phillips, chief executive of GetEducated.com, an online consulting firm in Essex Junction.
         
           Online M.B.A.s used to be offered only by schools operated by private businesses, such as the University of Phoenix Online, part of Phoenix-based Apollo Group Inc., and Jones International University, part of Jones International Ltd., Englewood, Colo.  These for-profit schools still dominate the online category in terms of total student enrollments.  But, more traditional universities have added programs as well in recent years, such as Penn State University in University Park, PA., and Indiana University in Bloomington, IN.

GetEducated.com published a report in spring 2002.  See online programs, KM, Aug 2002, p. 13.


Fischler Graduate School of Education and Human Services
Disneyworld Contemporary Resort, July 25-30, 2004
Summer Instruction, The Research Institute, & The Global Leading and Learning Institute

KM can be accessed and mined: http://www.members.cox.net/greenka6/wgnewweb/wgmenu.html
KM began to include materials used in E-Commerce, international business, and capstone courses at graduate and undergraduate levels and assist dissertation advisees at different universities.  Contents include many variables essential in business development, both domestic and global.

The KM October issue contains a detailed list of topics for July, August, and September issues. 

Comment: I work with individuals using multiple form and style guides with unique variations.
Content and leads to sources remain a central focus of KM; consistency to a format is variable.
Warren H.Groff, 3408 N. 49th St., Milwaukee, WI 53216-3208, 414-871-1127, groffw@nova.edu