business under pressure knowledge management helps
TRANSCRIPT
April 29th, 2010
© 2010 Baker Hughes Incorporated. All Rights Reserved.
Business Under Pressure
Knowledge Management Helps Companies Meet With Economic Challenges and Reorganization
Mary Jensen
© 2009 Baker Hughes Incorporated. All Rights Reserved.2
Topics of Discussion
•Baker Hughes, The Company
•Knowledge Management –Baker Hughes‟ History and Culture
– How it all started
– How it is changing with the organization
– Where we are
•Success Stories
•The Focus of Baker Hughes‟ Knowledge Management
•Take Aways
7.185
9.027
10.428
11.864
9.664
$0
$2
$4
$6
$8
$10
$12
$14
'05 '06 '07 '08 '09
Baker Hughes At a Glance
Revenue ($ Billions) 2009 Revenue (By Region)
Products & ServicesDrilling and Evaluation
Drill BitsDrilling SystemsLogging-while-drillingWireline ProductsFormation Evaluation Services
Completion and ProductionWell Completion TechnologiesArtificial Lift Systems
Fluids and Chemicals
Drilling FluidsProduction Chemicals
Reservoir Development Services
By the Numbers…12 months ending December 31, 2009
2009Revenue from ~90 countries $9,664 M
Operating Income $732 M
Income from Continuing Operations $421 M
$1.36 / share
Total Assets $11,439 M
Total Debt $1,800 M
Employees over ½ outside the US 34,400
Origins
© 2009 Baker Hughes Incorporated. All Rights Reserved.4
KM Forum• Established in 1999 with the
support of the COO
• Cross-divisional boundaries; all product centers represented
“Knowledge Management has emerged as a major force in the marketplace.”
Knowledge Management at Baker Hughes
Value Propositions
• Find the right people, process, or technology
• Find the right knowledge quickly
• Enable collaboration and teamwork
• Leverage the value of ourcommunities
• Learn faster
• Provide knowledge to our customers
• Make better decisions
Knowledge Management Journey
E-Business
KM Systems
2002 2003 2004 2005 2006 2007 2009
BakerHughesDirect
Interchange
Public Website
Rogue BHIWebsites
Eliminated
Division Intranets
EnterpriseContent Migration
CommonLook & Feel
WellLink
CustomerE-Procurement
All Divisionson BHD
PeopleLinkContent Management Search
LearningManagement
Content Management
“Always-On”Redundancy
SupplierE-Procurement
Single Source providing services to employees, customers and others. Security, personalization and content management processes shared. All are available via the Internet.
MySAP Portal
Updated Interface
Well DataManagement
2008 2010
KnowledgeWorkSpace
GISSolutions
ESS/MSS
Local Sites
WellLinkExpanded
Communities of Practice
2011
UpdatedInterface
BHI Enterprise Portal
CustomerCollaboration ONE Glossary
PublicWeb
An Upward Journey…
© 2009 Baker Hughes Incorporated. All Rights Reserved.7
…on the KM Maturity Model
2000 2006 2008 201020042002
KM NEEDS
Changes to the Environment
© 2009 Baker Hughes Incorporated. All Rights Reserved.8
From 2009 Letter to Stockholders
Improved Customer Focus:Moving to a Geomarket Model
Strategic Acquisition for Advancing Competitive Position
Reorganization – Changes to the KM Model
© 2009 Baker Hughes Incorporated. All Rights Reserved.9
Initial Geo Model – More Relationships & Complexity
Sales
Operations
Geo 1
Geo 2Geo 3
Geo X
Geo 1
Geo 2Geo 3
Geo X
Technology Technology R&D
F&C
C&P
D&E
?
EARC
Sales
LA
MEAP
NA
EARC
Operations
LA
MEAP
NA
Technical Support Technology R&D
Old Product Line Model – Operational Model
Re-Org &
Change
Change Mandates Evaluation…
© 2009 Baker Hughes Incorporated. All Rights Reserved.10
…Growth is up to us!
2000 2006 2009 201020042002
EnterpriseTools
Economic PressuresKM NEEDS
Acquire BJ
Services
KM Axioms at Baker Hughes - Sustainability
•Focus on the Desired Outcome
•Strong Governance
•Enterprise Support
•Single Source
•Easy to Use
•Self Service
•Extensible & Reusable
© 2009 Baker Hughes Incorporated. All Rights Reserved.11
People
Process
Technology
People – Core Values – Culture of Collaboration
Integrity:
© 2009 Baker Hughes Incorporated. All Rights Reserved.12
Performance:
Teamwork:
Learning:
• We believe teamwork leverages our individual strengths.• We expect everyone to actively participate on the BHI team.
• We openly communicate up, down, and across the organization.
• We value the diversity of our workforce.
• We willingly share our resources.
• We work hard, celebrate our successes and learn from our failures.
• We learn from sharing past decisions and actions, both good and bad, to continuously improve performance.
• We improve by benchmarking and adopting best practices.
• We believe integrity is the foundation of our individual and corporate actions that drives an organization of which we are proud
• We are honest, trustworthy, respectful and ethical in our actions.
Key Processes BHI KM
• Communities of Practice
• Knowledge Discovery
• Enterprise Content Management
• Learning
© 2009 Baker Hughes Incorporated. All Rights Reserved.13
Knowledge
Locate and leverage
internal assets,
knowledge, and content
management systems
Collaboration
Share information
through common sites,
host discussions, and
enable users to
virtually connect
Communication
Maintain a connection
and share updated
news/events with
members
Expertise Location...
© 2009 Baker Hughes Incorporated. All Rights Reserved.14
White and Yellow Page Information
…Self Service applications keep information fresh
Collaboration
© 2009 Baker Hughes Incorporated. All Rights Reserved.15
Communities of Practice
Governance Councils
Project Teams
Community Resources
Knowledge Capture
Marketing Analysis & Collaboration
Cultural tendency facilitated by easy to use tools
80% of all employees use Knowledge WorkSpaces
every month
16
Enterprise Portal
GEO
Value - adding
Storefronts
Electronic
Catalogs
IndustryIndustry
Exchange(sExchange(s ) )
or Clientor Client
SystemsSystems
CustomersCustomers
&&
EmployeesEmployees
TotalTotal
RecallRecall
RigLinkRigLink
BOTBPC HCCBHDF CLIFT INTEQ
BakerHughesDirectBakerHughesDirect
Content DeliveryContent Delivery
Content
Management
Value - adding
Storefronts
Electronic
Catalogs
IndustryIndustry
Exchange(sExchange(s ) )
or Clientor Client
SystemsSystems
IndustryIndustry
Exchange(sExchange(s ) )
or Clientor Client
SystemsSystems
Customers,
Suppliers&&
EmployeesEmployees
WellLink DS
RigLinkRigLink
BOTBPC HCCBHDF CLIFT INTEQBOTPSBPCGEO HCCF(N)BHDFGEO CLIFTPS INTEQF(N)
BakerHughesDirectBakerHughesDirect
Content DeliveryContent Delivery
Content
Management
Content
Management
We
bM
eth
od
s
LD
AP
Au
ton
om
y
TotalTotal
RecallRecall
RigLinkRigLink
LiveWire
WellLink RT
BPCW NetWeaver
Role Based – Personalized - Customizable
A Single Place to go for Information
An Enterprise Search and Find Solution
„Enabling the right people toquickly and efficiently find the right answers and information‟
Actionable Information
Expertise
Web & Document
Content
Applications
An enterprise search is different than a web search….pulls together structured and
unstructured content from across the organization while
maintaining permissions
Re-Org &
Change
Sustaining the Focus…
© 2009 Baker Hughes Incorporated. All Rights Reserved.18
…to build success!
2000 2006 2009 201020042002
EnterpriseTools
Economic PressuresKM NEEDS
Acquire BJ
Services
Success: Governance
© 2009 Baker Hughes Incorporated. All Rights Reserved.19
Division A
Division B
Division C
Lesson: Governance and Centralized Support are the foundation for success
Success: Expertise Locator
•Self Service Expertise Locatorsupports rapid organizational changes
© 2009 Baker Hughes Incorporated. All Rights Reserved.20
Lesson: Self Service Applications are agile
PeopleLink Yellow Page Modifications
Through Mar '10
85.1% 84.6%
71.9%
95.5%90.1%
80.0%
89.7% 90.6%93.5%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
BA BHDF BHI BOT BPC BSS CEN HCC INT
Success: HS&E Groups Come Together
© 2009 Baker Hughes Incorporated. All Rights Reserved.21
Lesson: Provide processes and tools that facilitate the business objectives
Knowledge WorkSpace
Employees
Content Management System Enterprise
PortalAll Employees
Knowledge Artifacts ContentManagement
Global HS&E Collaboration
Success: Knowledge WorkSpace
© 2009 Baker Hughes Incorporated. All Rights Reserved.22
The Middle East -Leveraging Wikis
• Encompassing Operations to Marketing and Development
• Creating Wikis for every area and field
• BHI is able to capture details and assist the region in building their knowledge
Lesson: Easy to use tools encourage adoption
Success: Reusable Capabilities
© 2009 Baker Hughes Incorporated. All Rights Reserved.23
• Consolidated Facility Information and Contracts by Region
• Vendor Management
• Improved Contract Negotiations
• $ $ $ Cost Savings
Embracing the Model –In Support Functions
Lesson: Reuse and extensibility improve efficiencies
Searching New Sources of Knowledge
Success: Collaborative Partnering
• Support of Financial Outsourcing
• Partner Company
• Global Distribution
• Rapid Deployment
© 2009 Baker Hughes Incorporated. All Rights Reserved.24
Lesson: Partnering allows us to focus on our core competencies
FASST Project
Lesson: Our core technologies facilitate our partnering
Success: BJ Merger
Collaboration - Preparing
© 2009 Baker Hughes Incorporated. All Rights Reserved.25
Portal Access – Communication, Tools, Culture - Knowledge
Expertise Location
Lesson: Leverage robust technologies to keep the focus on the People and Process
Success: Center of Excellence
Lesson: Focus on the outcomes you want to achieve
People
Process
Technology
Information
Opportunity
Expertise
By The Numbers
• 100 percent of employees have updated White Page information; over 80% have updated their Yellow Pages
• 85% of employees utilize the Enterprise Portal and 80% use the Collaboration Tools on a monthly basis
• The portal hosted 859,219 global sessions for customers and employees last month
• Employees make 13,000 expertise searches daily
© 2009 Baker Hughes Incorporated. All Rights Reserved.27
KM Opportunities for Moving Forward
• KM is a key component on linking Markets and Technologies
• Technical Support
• Reconnecting People
• Efficiencies in connecting BJ Services
© 2009 Baker Hughes Incorporated. All Rights Reserved.28
Focuses within Baker Hughes KM Today
© 2009 Baker Hughes Incorporated. All Rights Reserved.29
Communities
Promoting
Tool Updates
Simple Processes
Engage New Champions in Governance
Take Aways
•Governance and Centralized Support are the foundation for success
•Self Service Applications are agile
•Provide processes and tools that facilitate the business objectives
•Easy to use tools encourage adoption
•Reuse and extensibility improve efficiencies
© 2009 Baker Hughes Incorporated. All Rights Reserved.30
•Leverage robust technologies to keep the focus on the People and Process
•Focus on the outcomes you want to achieve
© 2009 Baker Hughes Incorporated. All Rights Reserved.31
Questions and Answers