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October 05, 2010

The Knowledge Supply Chain

It was quite an honor giving a joint presentation yesterday with John Zachman & Leon Kappelman at SIMposium 2010 in Atlanta, GA.

I presented a case study on "Building Mobil's Knowledge Base and Knowledge Supply Chain." We talked about how Enterprise Architecture and Knowledge Engineering helped preserve, share, and automate The Knowledge of the corporation.

This was the right time to introduce new ideas we've been working on with customers for a while.

  • The Knowledge Wars™
  • The Knowledge Supply Chain™
  • BIZRULES® RuleMart™
  • BIZRULES® RuleMall™
  • BIZRULES® KARMA (sm)
  • Ruling The Cloud (sm)

You'll hear more about this at RulesFest next week

You can hear more about these ideas, plus get the technical version of this case study, next week at RulesFest 2010 in San Jose, CA. 

SLIDES:  http://www.bizrules.com/library/KnowledgeSupplyChain_forSIM2010_byRolandoHernandez.pdf
SLIDES SHORT LINK:  http://bit.ly/93t7kq
TWITTER:  @BizRulesInc  #BIZRULES | #simposium2010 | #rulesfest  www.Rulesfest.org

May 07, 2010

Terrorists are Coming To Town

Terrorists are coming to town.

 

We better watch out
We all might die
Stay home don't go out
I'm telling you why

Terrorists are coming to town.

 

TSA's making a list,
Airlines aren't checking it twice;
We'll never find out Who's naughty or nice.
Terrorists are coming to town.

 

Wall Street's closed when you're sleeping
Drops 1,000 points when you're awake;
Some rule fool trades 16 billion shares
instead of 16 million.
So be good for Goldman's Sake!

 

Rule Fools are running Wall Street.
Rule Fools are running this town.

 

No more need to worry
Cause Rules are coming to town.
Cause Principles are coming to town.

 

O! We better watch out!

BP is gonna try,
To stop the 5,000 feet underwater oil spout

By giving a containment dome a try.

 

I know their Experts have
The Knowledge to fix it.
One day we'll know

Why the Blowout Preventer blew it.

 

Rule Fools are running Wall Street.
Rule Fools are running this town.

Terrorists are coming to town.

Terrorists are coming to town.

 

BP Oil Containment Dome   Blowout Preventer (US OSHA)

 


© Rolando Hernandez 

Please use Twitter hashtag #RULEFOOL for this post
Follow me on Twitter username @BizRulesInc

 

Check out Ten Rules for Restoring Trust in Wall Street, BP, TSA, Airlines... and anyone else who wants to do business in this town!

 

September 25, 2008

Ten Rules for Wall Street

Ten Rules for Wall Street

What are the rules? Did people break the rules, bend the rules, or ignore the rules?

Confidence in Wall Street went down the drain last week. The credit crisis gave business a bad name, and it gave government a bad name for not doing anything about it. Trust disappeared. 

It's time to rebuild trust in business and government.

Here are ten rules for restoring trust in business and government. These rules apply to everything from the global financial system, to Wall Street; from federal governments to local jurisdictions; from global corporations, to organizations and small businesses.

Companies that learn to define transparent rules that are sensible, consistent, easy to understand, and easy to follow will be easy trust. On the other hand, companies that rely on opaque rules that are complicated, confusing, illogical, inconsistent, or deceptive will be hard to trust. They will go out of business.

Rule 10 - Have guiding principles. Act on principles, independent of influence by greed or friends.

Rule 9 - Follow policies and guidelines about what is permissible and what will not be tolerated.

Rule 8 - Establish rules of behavior concerning what is right and wrong. Success in business depends on understanding the rules. The rules of the business are the way the business really operates. Design transparent rules that are logical, sensible, easy to understand, and easy to follow.

Rule 7 - Leverage knowledge and judgment. Know what you know, and know what you don't know. Document and retain what your experts know and how they think so their knowledge can be shared with those who need to know. Use wise judgment. Know when to follow the rules, when to bend them, and when to forget them.

Rule 6 - Make smart decisions informed by facts, rules, knowledge, principles, and judgment. Decide using clear, logical, and unbiased rules that explain each decision clearly. Use sound reasoning to make rules-based, principles-based, and knowledge-based decisions.

Rule 5 - Create enterprise architecture to deal with change and complexity. Use architecture to simplify complexity, and to understand how the whole business and the whole system works; Understand who, what, when, where, why, and how. Design the architecture to ensure that all the parts fit (interoperability), connect (integration), work (quality), work as intended (alignment), last (reliability), and can be shared (reusability). Design the architecture so the business can handle increases in complexity and increases in the rate of change (flexibility). Design the architecture to reduce time-to-market and reduce operating costs. Design the architecture to support rules-based and principles-based compliance.

Rule 4 - Do the engineering, to design systems that work, change, and last. Apply architecture and engineering design principles to ensure alignment, flexibility, quality, interoperability, integration, reusability, reliability, compliance, reduced time-to-market, and reduced costs. Build in risk management safety factors so the business and the systems can handle extreme stresses and excessive loads.

Rule 3 - Have a clear vision. Stand for brand.

Rule 2 - Instill confidence. Improve the quality, consistency, and accuracy of decisions and actions.

Rule 1 - Build trust. Align actions, decisions, and transactions with management's intentions. Align execution to goals, strategy, and mission. Align systems to business. Align implementation to intention.

Sept. 25, 2008   Rolando Hernandez   BIZRULES

August 22, 2008

Army mandates 12 knowledge management principles

"Connecting those who know with those who need to know." That is a great definition of knowledge management. And it's right out of the Army manual. The US Army recently released a knowledge management memo outlining 12 principles to encourage and reward sharing knowledge throughout the organization.

"Knowledge management is about connecting those who know (know-why, know-what, know-who, and know-how) with those who need to know and leveraging that knowledge across the institutional Army and to contractors, nongovernmental organizations, the other military services and coalition partners,” states the memo.

A few months ago I wrote about classifying knowledge as either critical knowledge or common knowledge.  Common knowledge is about your experience and what you know.  Critical knowledge is about your expertise and how you think.

Continue reading "Army mandates 12 knowledge management principles" »

March 13, 2008

Visible Knowledge LLC helps companies prevent Brain Drain

10,000 baby boomers are retiring today.

10,000 more will retire next Monday. And Tuesday. And so on. That's the way it's going to be for the next 20 years. Key personnel and subject matter experts with 20 to 30 years of experience are going to clear their desk and head down to Florida. As they walk out the door, invaluable corporate knowledge will simply disappear.

Intellectual capital, a vital corporate asset, will melt away unless companies do something to stop the brain drain and to retain critical knowledge.

Visible Knowledge LLC (www.visibleknowledge.com) has a solution:

  • An interactive RuleMap™ that models business rules & simulates business logic
  • An interactive Expertise Blueprint™ that transforms knowledge into Visible Knowledge™
  • A Legacy Interview(sm) 

Visible Knowledge helps companies retain vital corporate knowledge before it melts away. They focus on documenting invaluable critical knowledge from your top domain experts and key personnel, before they retire. It can take companies years and millions of dollars to recover from losing this type of knowledge.

A traditional exit interview is just not enough when you're dealing with subject matter experts or super experts. So Visible Knowledge has developed a Legacy Interview(sm) process that extracts and documents critical knowledge before experts leave or retire. They use a rapid knowledge acquisition process to extract maximum amount of knowledge in a minimum amount of time. Visible Knowledge focuses on capturing critical knowledge.

If Know It All Ken just gave you two weeks notice, and he's the only one who knows how to fix the $5 million widget making machine, Visible Knowledge can help. They can spend a few days with Ken and document the crucial knowledge you need to keep the business running.  

If Super Expert Sally is retiring in a few months, Visible Knowledge can spend a few weeks with her to elicit as much vital and critical knowledge as possible before she leaves.

If your entire Dept of Super Experts is retiring next year, Visible Knowledge can work with your team over the next few months or years to document the critical knowledge you need to retain.

Later, if you need to automate the knowledge that was captured and retained, companies like BIZRULES can help you do that. BIZRULES works with leading knowledge software vendors to design and build knowledge-based and rule-based solutions.

March 14, 2007

New Power for Management: Business Rules

Understanding and managing business rules is vital to the corporation. It is just as important as managing people, processes, and information.

Nevertheless, business rules are often misunderstood and poorly managed.

Many rules remain unwritten – they are known only to and retained by subject matter experts who sooner or later leave the corporation, causing brain drain. When business rules are written, they are seldom shared and reused throughout the corporation, which increases operating costs. When business rules are automated, they may not be aligned to the business strategies and policies, leading to quality problems.

In order to program business rules, programmers often rely on unclear business rule specifications that are incomplete or incorrect. Then they usually hard-wire the business rules in computer languages that only programmers can understand and change.

Because programmers are not directly involved in the day-to-day operation of the business, they often make assumptions about what the rules are and what management intended. That leads to mistakes or bugs in the programs, which requires further programming and re-programming.

There is a solution.

Some corporations use advanced business rules technology and business rule management methods to take business rules out of IT and bring them back into the business. Now management can finally manage and change their business rules.

Business rules management techniques help management clearly describe and communicate business rules to employees, partners, and customers. Business rule management software helps automate the rules that should be rule-based.

Business rules improve the condition of the corporation. They prevent business mistakes and minimize risk. They solve many critical problems facing business and IT.

Business rules are like the glue that holds together all the parts of the corporation, ensuring that the automated rules align with goals and strategies.

Business rules integrate and align all the moving parts of the corporation into a cohesive enterprise architecture and operating system that works, changes, and lasts.

Business rules give new power to management.

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Continue reading "New Power for Management: Business Rules" »

October 24, 2006

Find the "Knowledge Activist" in your company

Here is an interesting point about Subject Matter Experts by Kirk Kness, vice president of strategy and architecture at Baltimore-based financial services company T. Rowe Price Group Inc.:

Innovative employees often figure out how to handle exceptions and new scenarios that aren't covered by standard processes. However, these employees often don't have the time or the means to communicate their innovated solutions to colleagues.

Kness said CIOs and architects who are planning to launch a Web 2.0 strategy should find the "knowledge activist" in their companies. Knowledge activists are the people who are enthusiastic about understanding how processes in the business work. They are the people who are constantly looking to innovate the way they do things.

What a great term, "knowledge activist". That fits right in to the three main ideas I discuss on this blog: process, rules, and knowledge. I've already put this buzzword in a presentation I'm working on right now. Thanks Kirk!

Here's the rest of the story:

IT EXECS EAGER TO EXPLOIT WEB 2.0 WAVE By Shamus McGillicuddy, News Writer 10.24.2006 SearchCIO.com

September 13, 2005

Who are the Subject Matter Experts and Super Experts in your company? (FAQ #18)

Every company has Subject Matter Experts (SMEs). But great companies also have what I call Super Experts.

Everyone knows who the Super Experts are: They are the people that even the Subject Matter Experts call when they need help making a decision. They are the people that lead executives to seriously wonder, "what do we do if Peter gets hit by a truck?". Super Experts are the "brains" behind key, complex, and high-value decisions.

Subject Matter Experts

Subject Matter Experts are the people who make a lot of decisions in a little bit of time. These are microdecisions. SMEs seem to know a lot about a few topics.

SMEs could easily make hundreds or thousands of microdecisions in a day. Yet each decision is a crucial step in a larger process, such as building a product, making a sale, or taking a reservation. And each microdecision is crucial: A mistake at any point in the process will make the entire entire product, service or process defective.

Microdecisions are things like:
  • Is this customer eligible for this particular product?
  • What discounts is this customer entitled to for this particular transaction?
  • What is the commission for this booking?
  • What should I up-sell to this customer?
  • What should I cross-sell to this customer?
  • Do I have all the information I need to save this record in the system?
  • How do I work-around the bug or limitation in the system?
  • Who should we assign as the company contact person for this sale?
  • Does the customer want window or aisle?
  • Does the customer want a double bed or king bed?
  • What credit card does the customer want to use?
Super Experts

Super Experts are the rare individuals who solve the toughest problems in the company. They routinely make complex decisions, and they make it look easy. Their phone is constantly ringing. A Super Expert is the only one in the company who has the knowledge, experience, and expertise to make the right decision every time. Instead of making a hundred microdecisions a day, the Super Expert worries about making one big decision. Super Experts seem to know everything about lots of topics.

Super Experts may only make one decision a day. They may take a few days, or even weeks, to make an final decision. But each decision can save the company millions of dollars. Each decision can determine how thousands of transactions will be handled, and how millions or dollars will recorded in the books.

I'm talking about bottom line decisions... million dollar decisions like:
  • How do we solve this customer's mission critical problem right now?
  • What is our underwiting strategy and policy?
  • How do we design this plant so as to prevent and contain fires?
  • How do we clean up this oil spill?
  • Where should we build the plant?
  • Where should we build the product?
  • Where should we hire the employees?
  • What will our price program structure look like next year?
  • What will our discount policy be next year?
  • What promotions should we run?
  • What do we do to improve improve yields and revenue?
  • Should we create a new legal entity for this deal?
  • What Legal Entity structure should we use for this company?
  • What is the best way to structure this deal?
  • How do we minimize tax and maximize revenue for this contract?
  • What Legal Entity should we use for this contract?
  • How should we record these types of accounting transactions?
  • How do we calculate this quarter's tax provision?
  • What is the best product or right product that we should recommend for this customer situation?
  • How do we troubleshoot this problem?
Who are the Subject Matter Experts and Super Experts in your company?

If you are going to work on a business rules management project, one of the first things you need to do is identify who the true Subject Matter Experts and Super Experts are. You need to work with and elicit knowledge from both types of experts in order to succeed.
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