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This document is downloaded from Outstanding Academic Papers by Students
(OAPS), Run Run Shaw Library, City University of Hong Kong.
Title Knowledge management assessment and solution: proposal for a consulting company
Author(s) Li, Tsz Wai (李子慧); Song, Kai (宋凱); Liu, Liyuan (劉力源); Zhu,
Zhijun (朱芷君); Liu, Yuqing; Wei, Huiming (韋慧明)
Citation
Li, T. W., Song, K., Liu, L., Zhu, Z., Liu, Y., & Wei, H.(2018). Knowledge management assessment and solution: proposal for a consulting company (Outstanding Academic Papers by Students (OAPS), City University of Hong Kong).
Issue Date 2018
URL http://dspace.cityu.edu.hk/handle/2031/9137
Rights This work is protected by copyright. Reproduction or distribution of the work in any format is prohibited without written permission of the copyright owner. Access is unrestricted.
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Knowledge Management Assessment and Solution:
Proposal for a Consulting Company
Li Tsz Wai
SONG Kai
LIU Liyuan
ZHU Zhijun
LIU Yuqing
WEI Huiming
Supervised by
Dr Yulin Fang
Submitted to City University of Hong Kong in Partial Fulfillment of the
Requirements for the Postgraduate: Master of Science in Electronic
Business and Knowledge Management
2018
IS6921 Knowledge Management
Department of Information System, College of Business
City University of Hong Kong
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Contents
1. Abstract ................................................................................................................................ 4
2. Introduction ......................................................................................................................... 5
2.1 Challenges .................................................................................................................. 6
3. Assessment Scope ................................................................................................................ 7
3.1 Challenges Related to Scope ..................................................................................... 9
4. Assessment Approach ....................................................................................................... 10
4.1 Qualitative Assessment ........................................................................................... 10
4.2 Quantitative Assessment ......................................................................................... 11
5. Contingency Factor Analysis and Prioritizing KM process .......................................... 12
5.1 Knowledge characteristics ...................................................................................... 12
5.2 Task characteristics ................................................................................................. 15
5.3 Environment characteristics ................................................................................... 17
5.4 Organizational characteristics................................................................................ 17
5.5 Prioritizing Knowledge Management process ...................................................... 17
6. Current KM Process Identification ................................................................................. 21
6.1 Knowledge Discovery .............................................................................................. 21
6.2 Knowledge Capture ................................................................................................. 21
6.3 Knowledge Sharing ................................................................................................. 22
6.4 Knowledge Application ........................................................................................... 22
7. Current KM Systems and KM infrastructure ................................................................ 24
7.1 KM System ............................................................................................................... 24
7.2 KM Mechanism ....................................................................................................... 24
7.3 KM Technologies ..................................................................................................... 24
7.4 Assessment of KM Mechanism and Technology .................................................. 25
7.5 KM Infrastructure ................................................................................................... 26
8. Assessment Results ............................................................................................................ 28
9. Proposed Solution .............................................................................................................. 28
9.1 Non-technical KM infrastructure .......................................................................... 28
9.1.1 Organization Culture ................................................................................... 28
9.1.2 Organization Structure ................................................................................ 29
9.1.3 Physical Environment .................................................................................. 30
9.2 IT infrastructure ...................................................................................................... 31
9.2.1 Solutions for Improving Existing KM Tools .............................................. 32
9.2.2 Solutions for Implementing New KM Tools ............................................... 35
10. Evaluation ........................................................................................................................ 40
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10.1 Evaluation Criteria ................................................................................................ 40
10.1.1 Insufficient Communication ...................................................................... 40
10.1.2 Insufficient Training .................................................................................. 40
10.1.3 Insufficient IT support ............................................................................... 41
10.1.4 Required Resources .................................................................................... 41
10.1.5 Challenges ................................................................................................... 42
10.1.6 KM Processes .............................................................................................. 42
10.2 Evaluation Result................................................................................................... 43
11. Implementation ................................................................................................................ 44
11.1 Work Breakdown .................................................................................................. 44
11.2 Project Team Structure ........................................................................................ 45
11.3 Timeline .................................................................................................................. 46
11.4 Resources Estimation ............................................................................................ 47
11.4.1 Fixed Cost Estimation ................................................................................ 47
11.4.2 Human Resource Estimation ..................................................................... 47
11.4.3 Total Project Cost Estimation ................................................................... 49
11.5 Contingency Plan - Risk Mitigation ..................................................................... 50
12. Expected Outcomes ......................................................................................................... 51
13. Key Learning Points ........................................................................................................ 53
14. Reference .......................................................................................................................... 54
15. Appendix .......................................................................................................................... 55
Appendix 1 - Terminology ........................................................................................... 55
Appendix 2 - Generalized Business Process of Cosmetic Division ........................... 56
Appendix 3 - Summary of Contingency Factors in Each Process ............................ 57
Appendix 4 - Interview Question ................................................................................. 58
Appendix 5 - Questionnaire Design ............................................................................. 59
Appendix 6 – Implementation: Work Breakdown Details ........................................ 61
Appendix 7 – Total Project Cost Estimation Details .................................................. 69
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1. Abstract
This proposal is aimed at suggesting knowledge management tools to the cosmetic
division of the REACH24H consulting company to improve its knowledge management.
REACH24H is a China-based international consulting company in the field of regulatory
compliance established in 2009, provides global regulatory compliance solutions to
assist manufacturers, importers and downstream users to effectively extend its
businesses from foreign countries to mainland China. The objective of the proposal is to
indicate the internal knowledge management problems of the REACH24H and propose
the KM-oriented solution to solve the problem. The proposed solution is targeted to
improve the weakness and the insufficiency of the company based on the assessment
result. The assessment result reveals that there are four problems existing in the division
including the lack of IT support, lack of communication, lack of training as well as the
deficient non-technical KM infrastructure. The proposed solution including
implementing new KM tools, improving existing KM tools and improving the deficient
non-technical KM infrastructure. By using criteria scoring evaluation, the value and
worthiness of improving and integrating the existing KM tools are higher than
implementing new KM tools. The detailed plan of the suggested solution is illustrated in
order to increase the credibility of the proposal and to show proposal is highly feasible.
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2. Introduction
REACH24H is an international consulting company in the field of regulatory compliance
established in 2009. It is a China-based company which provides global regulatory
compliance solutions to assist manufacturers, importers and downstream users to
effectively extend its businesses from foreign countries to mainland China. The targeted
industries of REACH24H including chemicals, cosmetics, food and agrochemicals.
REACH24H has assisted for over 4,000 companies to gain market share. With its social
media platform, ChemLinked, REACH24H could propose end-to-end structured
solutions for every different client. REACH24H currently has global operations in China,
Ireland and the United States. Their internal team is made up of ex-governmental
officials, global-regulatory experts, toxicologists, environmental risk assessors, chemical
engineers, IT software developers and IT engineers. More than 150 professionals focus
on deepening research on the main regulations and to provide the most valuable
products and services to clients.
REACH24H consists of Industrial Chemical Division (ICD), Food Division (FD),
Cosmetic Division (CD), Agrochemical Division (AD) and Consumer Product Service
Department (CPSD). Different divisions will share information and communicate
mainly through four social media platforms: ChemLinked, Online BBS, WeChat Official
Page and Ding Ding (refers to Figure 1).
Figure 1– Organization Structure of REACH24H
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REACH24H has three goals: 1. To provide higher quality service for customers; 2. To
increase the satisfaction of employees with a good internal management system; and 3.
To avoid technical loss.
Firstly, it is essential for the organization to provide higher quality service to customers.
A high-quality service can attract more customers and increase profits. It is the core for
the organization to keep operating business. Secondly, the infrastructure built in the
organization can consolidate the internal network for collaboration and communication,
so as to create a perfect performance. Based on some theories1 and academic research,
when the employees created a better performance, they will have a higher satisfaction
and loyalty towards the job. Consequently, it can lower the turnover rate and keep the
operation run smoothly. Also, even if there are new technical employees enter, they can
quickly learn the core technology of the organization.
2.1 Challenges
There are three main challenges of REACH24H: (1) Improvement of the efficiency in the
knowledge capture process, (2) Improvement of the efficiency in knowledge sharing
process and (3) Reduced communication errors. Since the background difference among
employees, the working style of employees might be different. As a result, perhaps the
efficiency of knowledge capture and knowledge sharing can be improved, then the
quality and efficiency of the entire teamwork can be improved. Thus, helping the
company to achieve its first goal more feasible and easy. Also, reducing communication
errors can accelerate efficiency. Therefore, applying knowledge management is vital for
the organization.
The identified opportunities for REACH24H to improve and optimize its KM operation
would be classified into three areas, as below:
1 Example of theories: Fulfilment theory and Discrepancy theory, etc.
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Working Environment
As Reach24H is an international company, employees’ responsibility may become
unclear due to its geographical difference and shift-duty policy. New employees may not
be able to understand the workflows. This may lead to inefficient or duplicating works.
Furthermore, the job training provided for new employees are brief and short, it may
lower the result of knowledge discovery and knowledge capture for the newcomers.
Communication
Another problem with REACH24H would be the communication problem. Traditional
office design, the lack of technical support and KM infrastructure would be the main
reasons for causing insufficient communication. The frequency of error occurrence may
increase due to the ineffective, ambiguous or misleading communication, hence, lower
the service quality.
Knowledge Sharing
Lacking communication and KM infrastructure also constraint knowledge sharing. Due
to the low connection between employees and divisions, no matter tacit or explicit
knowledge is not allowed to share freely. ChemLinked would be the main platform for
employees to do internal information and knowledge exchange. Although the company
introduced DingDing and WeChat as a social media platform, it is unnecessary for
employees to frequently keep an eye on the platform, therefore, it is hard to manage the
information and knowledge well. As a result, a sharing-based system would be needed
for information storage and knowledge sharing instantly between teammate, divisions
and clients.
3. Assessment Scope
In this assessment, cosmetics division would be the focus. The reason for selecting
cosmetics division of REACH24H because they could like to implement knowledge
management into their company and one of our team members has been worked for
REACH24H, therefore, our team can easily get data from cosmetics division and give
suggestion properly. The cosmetics division is formed by 15 members, including the
department leader, the technical team leader, the consultant team leader, four chemical
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regulatory technical engineers, four chemical regulatory analyst and four cosmetics
regulatory consultants (Figure 2).
Figure 2– Personnel Structure Framework of Cosmetics Department of REACH24H
The major function of the cosmetics division is to provide professional global market
consultation and customized regulatory compliance services to cosmetics companies.
More specifically, the cosmetics division has four main tasks when dealing with clients,
which are regulatory consultant process, responsible agent filing process, product
qualification process, and application and follow-up process (refers to Appendix 2)
Regulatory Consultant Process
In the regulatory consultant process, the cosmetics division will assign a consultant to
do cosmetics registration procedure. Then the consultant will provide a list of required
documents and testing items that the customer needs to prepare. The next process is to
provide clients with a customized solution for cosmetic registration, period and cost
assessment. Finally, to arrange a kickoff meeting which aims to connect the consultant,
client and chemical regulatory analyst from the technical team.
Responsible Agent Filing Process
For overseas manufacturers, they need to authorize one independent legal entity to be
responsible for their application, so the cosmetics division will be responsible for its
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registration on behalf of the client. During the responsible agent filing process, the
assigned analyst will register as the responsible agent of clients. During this period, the
cosmetics responsible analyst will help to preserve the administrative approval of the
documents and certificates.
Product Qualification Process
The product qualification process is mainly for doing testing and analysis including to
define the product category. Chemical regulatory engineers will do product analysis and
define the category of specific products. After that, these testing items will be sent to
professional testing institutions to check whether all ingredients are applicable.
Application and Follow-up Process
After the product qualification process, the cosmetics product application process is
ready. In this process, the analyst and consultant need to review all application
documents and files that need to be submitted to the government authorities (e.g. China
Food and Drug Administration). Then, they will prepare application dossier. After the
technical review by government authorities, cosmetics division will follow-up reviewers’
comments and do improvement accordingly. At last, the consultant will report to the
client.
3.1 Challenges Related to Scope
So far, there are three main challenges in the cosmetics division. The first one is the
inconvenient and inefficient way of customer data storage. At present, the cosmetics
division mainly use folders (i.e. to print on paper) and Microsoft Excel (Excel) to store
customer files, which is very traditional, fragmented and hard-to-share. If one employee
wants to get the customer's information, they need to communicate with the colleague
in advance and obtain the information by copying or emailing the documents, which is
very time-consuming.
The second challenge is the lack of internal knowledge sharing system. At present, the
mobility of personnel in this industry is relatively large. If any employee jumps to
another company, his/her technology and knowledge might be lost and the entire
division may not be able to operate smoothly as usual.
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The third challenge is the lack of technical support for team communication. At present,
the communication within the cosmetics division is mainly through face-to-face
meetings, which is highly efficient. However, when there is a lack of technology to
support or recording the conversation, it is easy to cause misunderstanding or
communication errors, which lower the professionalism of performance.
4. Assessment Approach
In order to determine what improvements are actually needed for REACH24H in terms
of its knowledge management, a series of assessments, including qualitative assessment
and quantitative assessment, have been conducted. By doing so, our team could set up
a customized KM solution for REACH24H to optimize their business.
4.1 Qualitative Assessment
For qualitative assessment, two methods have been used to evaluate and understand
whether the knowledge management processes work: 1. Browse the official website,
Cosmetic Division website and the social Media Platform, ChemLinked and 2. Conduct
Interview.
Browse the Official Website and its Social Media Platform, ChemLinked
By visiting the websites and ChemLinked, our team could understand the fundamental
information of REACH24H including their company background, business structure,
vision-and-mission, services, future plans and internal management structure, etc.
Conduct Interview
Interview is a typical qualitative research method. It can effectively help our team to
collect data and information from the target. For our assessment, few ex-employees of
REACH24H headquarter (Hangzhou) have been interviewed face-to-face and by phone
call respectively.
At the beginning of the interview, interviewees’ opinions (satisfaction and
dissatisfaction) was asked in order to recall their memories of work and make the
atmosphere more relaxing. Next, several questions about the early stage working in
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REACH24H has been asked. It is surprising that most of the interviewees unanimously
mentioned the inadequacies of team communication and technical support. Also,
knowledge sharing is another problem for its internal operation. As REACH24H is a
consulting company offering import-and-export and business extension services to its
customers. Although it is a case-by-case work, it takes time to complete one because
every case is unique and may involve a lot of procedures. To complete one case, different
knowledge and skills in different aspects would be required. However, it is hard for a
newcomer to catch up different knowledge efficiently due to the differences of working
culture between teams and divisions.
Moreover, for the sake of exploring the obstruction factors of knowledge sharing, office
design, the company working culture and general workflow have been asked. To build
up and maintain a professional image of a consulting company, the office design of
REACH24H remains quite traditional: one office for each department and two staff will
share one cubicle with a partition to separate a desk. Cross-divisions or team will barely
interact with each other. This office design leads to working culture different and makes
different divisions and teams become independent. Consequently, causing the problems
of insufficient, ambiguous and misleading communication as well as unclear company
structure (e.g. team duty) and workflows.
The last but not least, they indicated that information storage is big trouble for them to
work. Since the information of clients is mostly confidential, employees have to encrypt
every single file in Excel with a password while there is no technical support. By using
Excel as the main method to store data, it is inconvenient for the employees to get access
to the file while they do not have permission to access. Also, it is frequent that to make
errors when editing or transferring file by using email or copy-and-paste to USB because
it is very time-consuming. Very often, errors may occur due to the Excel “AutoSaved”
function (i.e. it will duplicate the file).
4.2 Quantitative Assessment
The purpose of using the quantitative method as one of the assessment approaches is to
understand and evaluate the areas for improvement of REACH24H in terms of its
knowledge management. Due to the time limit and cost control, a questionnaire
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(Appendix 1) was distributed to collect data for further analysis. A total of eighteen
questions were designed in four sections, mainly by using five points Likert scale from
strongly satisfied or strongly agree to strongly dissatisfied or strongly disagree to reflect
two perspectives: 1. Information and Knowledge Sharing; and 2. KM Infrastructures.
Four sections including 1. Personal Information; 2. Working Environment; 3. Internal
Communication and Interaction; and 4. Data Storage.
5. Contingency Factor Analysis and Prioritizing KM process
5.1 Knowledge characteristics
It is necessary to assess the knowledge characteristics of each business process in the
cosmetics division since there are several types of knowledge2 in each process, as shown
in table 1 -4 (summary figure refers to appendix 3).
Regulatory Consultant process
In the regulatory consultant process, both tacit knowledge and explicit knowledge would
be included. It consists of regulatory consultancy, documents preparation, solution
assessments, and experience sharing. Declarative knowledge and contextually specific
knowledge are the most related knowledge (refers to Table 1). Since REACH24H have
to provide customers with regulatory consultancy about the cosmetics registration
procedures, the company has its own knowledge sharing platform which is
“ChemLinked”, all members would have a great opportunity to share their own
experience through this platform.
2 T would stand for tacit knowledge, E for explicit knowledge, D for declarative knowledge, P for
procedural knowledge, G for general knowledge, CS for contextually specific knowledge and TS would
stand for technically specific knowledge.
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Table 1 - Knowledge Characteristics in Regulatory Consultant Process
Responsible Agent Filing Process
In the responsible agent filing process, explicit knowledge would be mainly applied
since the company should provide related regulatory rules from the company’s own
regulatory database to clients. Also, contextually specific knowledge would also be
applied since the company will mobilize a given situated decision solution to the
colleagues or to the clients (refers to Table 2). The company will also use the regulated
format to organize the related documents. At last, the cosmetics division will hold
meetings and assist the compliant importation between the overseas cosmetic
company and assigned importer.
Table 2 – Knowledge Characteristics in Responsible Agent Filling Process
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Product Qualification Process
In the product qualification process, the most related knowledge is procedural
knowledge, contextually specific knowledge and technically specific knowledge (refers
to Table 3). The engineer will do product analysis and define the category of specific
products. Afterwards, these items will be sent to professional testing institutions to
check whether all ingredients are applicable. Also, declarative knowledge will also be
applied in this process since the company will check whether all claims after a series of
testing processes.
Table 3 – Knowledge Characteristics in Product Qualification Process
Application and Follow-up Process
In the application and follow-up process, tacit knowledge and contextually-Specific
knowledge will be mainly applied in this process (refers to Table 4). In this stage, the
chemical regulatory analyst will check all the files that government authorities (China
Food and Drug Administration, CFDA) require to submit. And after the documentation
reviewed by CFDA, the analyst will do the follow-up work such as giving feedbacks and
comments to clients or make an improvement with the engineer accordingly. In the case
that if there is any unexpected comment received, or the application has been rejected,
an emergency meeting would need to solve the problems. In order to optimize and
enhance the performance, cosmetic division head will assign a senior analyst and
consultant to assist. The senior analyst and consultant will give direct attention to the
case and share their experience and knowledge on ChemLinked Platform, or sometime,
through WeChat conversation.
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Table 4– Knowledge Characteristics in Application and Follow-up Process
5.2 Task characteristics
The second step is to assess the task characteristics in detail in each process which
include task uncertainty and task interdependence (refers to Table 5).
Table 5– Summary of Task Characteristics of Main Business Process
Regulatory Consultant
Low uncertainty:
In the regulatory consultant process, everything is prepared by the client when they
come to seek for the consulting services. The assigned consultant only need to
understand the clients’ need and follow the procedures step-by-step to provide services.
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High interdependence:
In the regulatory consultant process, several teams would be needed to collaborate
together. The first step is to complete the cosmetics registration. Then the consultant
will provide a list of documents and testing items that need to be provided by clients for
collecting the data accordingly. The consultant will need to communicate with related
divisions to get understanding of the products, for example, what is the requirement of
a specific product if the client wants to import it into China market, or what are the legal
documents for doing import registration, so as to do the following processes.
Responsible Agent Filing Process
Low uncertainty:
The application form that needed to be fill-in is standardized. The information is mostly
provided by the clients. Every testing and analysis have its regulation. As a result, the
analyst would only need to undergo the process by getting data from the database.
Low interdependence:
In the responsible agent filing process, the consultant can complete it by themselves as
it is a routine job for them.
Product qualification Process
High uncertainty:
The product qualification process including testing and analysis. For the testing part, it
is often to happen that the testing item is new, for example, the product contains a patent
ingredient or the testing result shows negative. It would be challenging for both the
testing team and analysis team to do the evaluation.
High interdependence:
The process would consist of a consultant, engineer and analyst. In case that there is an
unexpected result appeared, they have to communicate with each other. Collaboration
with different divisions will definitely help in this process.
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Application and Follow-up Process
High uncertainty:
There are many uncontrollable variables such as the evaluating result given by CFDA as
the rejection or improvement requested.
High interdependence:
When the application being rejected or any improvement requested, a cross-division
emergency meeting would be needed to hold for solving the problems as soon as possible.
5.3 Environment characteristics
High uncertainty
Since regulatory is modifying all the time, the company should always get ready to
update its database and get the methods to meet the amended requirements. As a result,
the environment is the uncontrollable (i.e. high uncertainty).
5.4 Organizational characteristics
Company Size
This part will assess the organizational characteristics, including organization size and
strategy. The size of the organization is medium but the cosmetic division is small, the
strategy applied is to provide high-value and secure services with a relatively low cost.
There are about 180 people and approximately 50 people in each branch.
Company Strategy
Since a low-cost strategy applied and the human resources are limited and the company
strategy, the company prefers to use existing knowledge to generate new knowledge by
internal sharing and brainstorming. Also, due to the fact that the company will get a
bundle of confidential information from clients, the company will prefer investing in risk
management to secure information and prevent any loophole from leaking information.
5.5 Prioritizing Knowledge Management process
KM processes include four sub processes: knowledge discovery, knowledge capturing,
knowledge sharing and knowledge application (refer to figure 3). By referring to the
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contingency analysis, when a specific business process attained a higher score, it means
that specific business process need knowledge management the most.
Figure 3 – Knowledge Management Knowledge Process
Following tables show the scores of the desired knowledge management process in each
business process. We will calculate the score of each process to prioritize the KM
processes. (Yes=1, OK=0.5, NO=0)
Regulatory Consultant Process
Table 6 – Prioritizing KM Process for Regulatory Consultant Process
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Responsible Agent Filing Process
Table 7 – Prioritizing KM Process for Responsible Agent Filling Process
Product qualification Process
Table 8 - Prioritizing KM Process for Product Qualification Process
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Application and Follow-up Process
Table 9 – Prioritizing KM Process for Application and Follow-up Process
Summary of Prioritizing KM Process for Contingency
Table 10 – Prioritizing KM Process for Contingency
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6. Current KM Process Identification
At the stage, we will identify and analyze current KM solutions of REACH24H four KM
processes one-by-one.
6.1 Knowledge Discovery
Knowledge discovery is basically developing new tacit knowledge or explicit knowledge,
and depending on the different types of knowledge, it is divided into two sub-processes:
Knowledge Combination and Knowledge Socialization. As a consulting firm, a cosmetic
division of REACH24H is always striving to discovery and update massive knowledge of
regulations on ChemLinked so as to keep competitiveness.
For the combination process which is developing new explicit knowledge by combining
existing explicit knowledge, it will relate to some new regulations and rules combination.
In the regulatory consulting process, REACH24H is good at producing structured
solutions by studying different regulations.
While for the socialization process, it is developing new tacit knowledge by interaction
among different individuals by discussing and sharing unique knowledge to each other.
Attending workshops or forums is quite common when it comes to socialization, for
example, to proactively participate in, or being invited to attend regulatory conferences
of tor maintain the updated information and regulation trends.
6.2 Knowledge Capture
Knowledge capture is defined as retrieving explicit knowledge or tacit knowledge. It is
supported by two sub-processes: Externalization and Internalization.
Externalization is the process of transforming tacit knowledge into explicit knowledge.
After the consultant analyzed clients’ information from various dimensions, an end-to-
end proposal and structured solution would be prepared for clients. However, due to
the lack of system support, it is hard to schedule and operate four processes very
smoothly, which may trigger the client’s satisfaction. As a result, using externalization
can help clients or the third parties to understand what REACH24H is doing in a
visualized way.
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On the contrary, internalization is to convert explicit knowledge to tacit knowledge.
Considering the situation that when the consultant participated in conferences regularly,
they will hold a meeting for sharing updated information to those who absented, which
represents the traditional notion of “learning”.
6.3 Knowledge Sharing
Knowledge sharing aims at sharing explicit and tacit knowledge to others in order to get
understanding and do knowledge application. Exchange and socialization are the two
sub-processes of knowledge sharing. In fact, knowledge sharing is the most important
part among the organization business processes of REACH24H.
In terms of the exchange process, as there are a lot of documents and reports need to
exchange internally from consultant to technical team, or vice versa, such as testing
report, Certificate of Free Sales (CoFS), Original Equipment Manufacturer (OEM)
agreement, etc., it is hard to manage or takeover without any system support. Although
the company has introduced online BBS for internal knowledge sharing, it has been
recognized as ostentation because of the low frequency of use.
For sharing tacit knowledge, socialization is vital because it can contribute to the whole
business process. In this part, the cosmetic division will have a monthly team meeting
to report project progress, especially for the project milestone when the regulatory
consulting process is on-going. Every team member needs to participate and share the
challenge of the project. Very often, they will make the request to get extra resources,
and the team leader will then try to allocate the resources to them.
6.4 Knowledge Application
Knowledge application is to use explicit knowledge and tacit knowledge to perform the
working tasks. It also takes two forms: Direction and Routines, depending on the
knowledge type.
Direction is the process through seeking help from other to process knowledge directly
without transferring the knowledge. While consultants need to report the progress to
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clients, the consultant will need to contact analyst and engineer to get information. The
kick-off meeting is held for the purpose of applying direction - analyst and engineer can
directly explain to the client about the consulting process, for example, the process of
testing. As a result, consultants do not need to understand the contextually specific
knowledge and technical specific knowledge thoroughly. This can also reduce the
duplication of work.
Routines are focusing on utilization of knowledge embedded in procedures, regulation,
norms that guide future behaviour. In the cosmetic division, there are plenty of
handbooks and guidelines for consultants to check. For example, the standardized
procedure for starting projects. It would be useful for the new employee to quickly
understand the project outlines.
Table 11 – Summary of current KM processes and desired KM processes
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7. Current KM Systems and KM infrastructure
7.1 KM System
KM system is the combination of KM mechanisms and KM technologies.
7.2 KM Mechanism
KM mechanism serves as a way to promote knowledge management and it is structural
or organizational. For the REACH24H, it can be reflected in several aspects as follows:
New employee training
For the cosmetic division, they will have the training courses in order to give the staff a
deeper understanding of professional knowledge.
Face-to-face meeting
The cosmetic division has a face-to-face meeting per month. Everyone can share their
project progress and make a request for the resource they may need. Also, they will share
the update regulations internally during the meeting.
Learning by doing
In the cosmetic division, new employees are required to attend the training course
before they start working. The senior staffs will lead the new hire to understand the
process and practice in the organization. The new hire can capture knowledge during
the training.
Learning by observation
When the new employees do not know how to handle the projects, they can learn by
observing what the senior consultant do in the same situations.
7.3 KM Technologies
KM technologies are supportive of knowledge management. In REACH24H, they
leverage different types of technologies to support knowledge management.
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Official website
The official website is for visitors and clients get an understanding of REACH24H. For
there are some specific functions like a message box to let potential clients contact
REACH24H.
WeChat official account
The WeChat official account is mainly used for publishing the update information and
knowledge for REACH24H.
Online BBS
The online BBS is the internal discussion platform in REACH24H. The employees can
have discussions about the regulations and sharing working experiences. However, the
online BBS is now of low frequency of use.
ChemLinked
REACH24H created the ChemLinked platform to provide chemical regulatory
information for China and the rest of Asia Pacific region. The “news” alert function is co-
built by REACH24H and the government helping identify possible trade risk and
hazards. The employees can access expert articles and reports, chemical regulatory
database, online training courses and electronic translation store by using ChemLinked.
Software and Information
For internal communication, REACH24H applies the Dingding software which is
designed by Alibaba, for the consultants to contact with other teams. For client data
storage, the cosmetic department mainly uses folders and Excel files to store customers’
information.
7.4 Assessment of KM Mechanism and Technology
Regulatory consultant process
In the regulatory consultant process, the desired KM processes are exchange,
internalization and combination. For the exchange process, face to face meeting,
ChemLinked and WeChat official account work effectively to facilitate the consultants
to share explicit knowledge. For the internalization process, on the job training, official
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website, ChemLinked and WeChat platform are helpful for the consultant to transform
explicit knowledge to tacit knowledge more easily. For the combination process, face to
face meeting, learning by doing, ChemLinked help consultants to develop new explicit
knowledge by combining existing explicit knowledge. We can clearly see that the
existing KM mechanisms and technology are helpful to the desired KM process but there
is still having spaces to improve. Especially the low-frequency use of KM technologies
and the high loss rate of employees, current mechanisms and technologies cannot solve
this problem effectively.
Responsible agent filing process
For the responsible agent filing process, the desired KM processes are direction,
externalization and socialization for KS and exchange. We find that ChemLinked makes
the direction process better, however, it has no intention for the employee to keep using
frequently. For the externalization, socialization for KS and exchange, WeChat official
account and online BBS would both be the effective channels.
Product qualification Process
For the product qualification process, the desired KM processes are direction,
socialization for KS and KD. As mentioned above, ChemLinked can facilitate the
direction process. For socialization for KS and KD, face-to-face meeting, ChemLinked
and WeChat official account would help effectively.
Application and Follow-up Process
For the application and follow-up process, the desired KM processes are direction,
socialization for KS and KD.As mentioned above, ChemLinked can facilitate the
direction process. For socialization for KS and KD, face-to-face meeting, ChemLinked
and WeChat official account would help effectively.
7.5 KM Infrastructure
KM infrastructure is the long-term foundations for knowledge management. It includes
five major components: organization culture, IT infrastructure, common knowledge and
the physical environment.
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Organization culture
The group behaviour from the norms and beliefs can be reflected by the organizational
culture. In the cosmetic division, employees are encouraged to share knowledge. Also,
the management support KM. However, there are lack of incentives for knowledge
sharing.
Organization structure
Although REACH24H introduced some platform to foster knowledge sharing, there are
no KM division or position for chief knowledge officer. The division leader is responsible
for managing the whole division, making decisions and communicate with the top
management. However, there is no KM division to help the leader manage all incoming
knowledge.
IT infrastructure
As mentioned in KM technologies, REACH24H makes use of different kinds of
information technology to support daily operation. For instance, ChemLinked is,
supposing, a useful tool for the organization to store regulations information and
knowledge sharing. However, as the incentive to use is low, the frequency of use is low.
Common knowledge
The common knowledge integrates an individual’s knowledge with the knowledge of
others and thus enhance the value of it. REACH24H set a series of basic rules to follow
by employees. Therefore, the employees should be familiar with their workflows and
what they should be careful of. The new employees also need to attend the training
course in order to better prepare themselves for the job. But for the senior staffs, the
company is not able to provide advanced training courses regularly.
Physical environment
The office design of REACH24H remains traditional, although there are enough meeting
rooms provided for holding meetings, the interaction between individuals and divisions
low.
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8. Assessment Results
According to the tables shown in the previous parts, it can easily to point out the desired
KM process in the business process of cosmetic division. The top prioritized desired KM
process would be Exchange, Internalization, Combination for the regulatory consultant
process; Direction, Externalization, Socialization for KS and Exchange for responsible
agent filling process; Direction, Socialization for KS and KD for product qualification
process and application and follow-up process. Comparing the desired KM to current
KM, it is easy to observe Socialization is the most important process required for the
cosmetic division. However, Socialization for KD process is lacking in all current KM
process. Other KM processes that need to improve would be Direction. For the KM
infrastructure, the office design would be the hinder of doing knowledge sharing.
Although the company has introduced social platforms and system to help to improve
the situation, the employees found that useless, hence, lowered the value of IT
application. Consequently, the assessment reveals that the cosmetic division still has
rooms for doing KM improvement.
9. Proposed Solution
9.1 Non-technical KM infrastructure
According to the current study conducted by Masa’deh (2016), there is a significant
positive impact of KM infrastructure on job satisfaction and it revealed that the
dimensions of KM infrastructure that has the highest effect on job satisfaction are
organizational culture followed by information technology. Under no circumstances
should the KM infrastructure be ignored before implementing the KM processes. Several
components of the KM infrastructure has been identified from the assessment such as
organization culture can be further improved by proposing the following tools.
9.1.1 Organization Culture
Reward mechanism
Features
Although the management is aware of the importance of KM and willing to invest in it,
the majority of employees are not transferring the knowledge in practice. Therefore,
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REACH24H may step further to recognize and give a reward to those employees who
make contributions to knowledge sharing or knowledge discovery on a weekly, monthly,
quarterly or yearly basis.
Advantages
With the reward mechanism, employees are more likely to be involved in the KM
systems and technologies. Also, this can be helpful for great results in KM in REACH24H.
Disadvantages
Excessive rewards may lead to the employees’ over-satisfaction which can bring some
bad influences. For the long term sustainability of KM initiative, it has to focus on
moving the reward-based system to one of recognition among colleagues.
Improvement Areas
Currently, REACH24H lack reward mechanism for KM and their employees seldom
involved in knowledge sharing. This solution can build up the better organization culture
for KM and ensure that employees feel appreciated.
9.1.2 Organization Structure
Separate KM division or chief knowledge officer (CKO)
Features
The role of KM division or CKO can be diverse. They are responsible for collecting useful
data for the organization as knowledge, developing an overall framework that guides KM,
actively promoting the knowledge agenda within and beyond the company, overseeing
the development of KM infrastructure and facilitating connections, communication and
coordination.
Advantages
This solution can both maximize the returns on the investment in knowledge and exploit
the intangible assets in an effective and professional way. The KM division or CKO
masters hard and soft skills in KM. They know how every department of a company
works to determine the technical needs of each division of the firm, which brings a lot of
benefits to the company.
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Disadvantages
Despite the advantages brought by KM division or CKO, this solution might be costly
and time-consuming. The KM division needs to recruit talents with much experiences
both in KM and regulation consulting areas. Also, it takes a lot of time in communication
with every department to identify knowledge relevant to REACH24H.
Improvement Areas
As a regulation consulting firm, REACH24H runs knowledge-based processes in its
business. This solution can greatly enhance its professional image and employees’
productivity.
9.1.3 Physical Environment
Cafeteria, coffee room and hallways for informal meetings
Features
Cafeteria, coffee room and hallways provide venues where employees can through
socialization to learn from and share insights with each other. It encourages both
scheduled and spontaneous meetings to take place in a casual, coffee shop atmosphere.
Advantages
This solution can foster KM by providing opportunities for employees to meet and share
ideas. Theses group-oriented spaces and common areas draw employees in and facilitate
spontaneous interactions, brainstorming and knowledge sharing. In addition,
employees tend to have a stronger relationship with their managers and are more
satisfied with their jobs.
Disadvantages
These common areas need extra space and the decoration would be expensive. Moreover,
employees may misuse these areas for personal issues.
Improvement Areas
In REACH24H, there is insufficient communication between different teams and
divisions. This solution can increase the possibility of cross-functional communication.
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Interior design from traditional cubes to open plan
Features
The open office plan means that everyone works in the same area instead of a cubicle
type working area.
Advantages
Communication and knowledge sharing are obviously easier between workstations and
divisions. Normally, with an open office plan, managers and supervisors are in constant
contact with the staff. For the staff, they are able to reach management more quickly and
deal with issues.
Disadvantages
It is a simple fact that the more people you have in one area the noisier it gets. An
employee may be easily distracted from the meaningless background noise. Also, this
solution might lack privacy, which can be harmful to the supposed easy collaboration.
Improvement Areas
In the cosmetic division, the interior design is traditional cubes so employees do not
know what exactly other colleagues are doing. The change from traditional cubes to open
plan will reduce the boundaries within office workspaces and encourage employees to
create and share knowledge.
9.2 IT infrastructure
For the Technical KM infrastructure, considered that there is some existing KM
infrastructure already in use in the REACH24H, it is necessary to evaluate whether
improve the existing KM tools or implement the new KM tools can reduce waste of
investment and lower the cost of making changes on the organization. There is no doubt
that the purpose of doing the KM is to enhance the efficiency of doing knowledge
processes, therefore, two options have been proposed for further evaluation to see which
is the best choice for the company.
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9.2.1 Solutions for Improving Existing KM Tools
Here, there are some found existing KM tools can be further improved, which includes
the Shared Drive, Online BBS, ChemLinked and IBM Connections.
9.2.1.1 Shared Drive
Features
By making good use of the existing shared drive, it can enhance the productivity and
efficiency of sharing documents between different divisions. Some practical approaches
are to appoint a separate person to supervise it, clear up, update and record regularly.
Employees can only access public drive and private drive based on the authorization. In
terms of specific kinds of documents, it is suggested to develop templates to improve the
efficiency of documentation.
Advantages
It is convenient for team members to access the documents in many places as long as
they are connected to the internet. Also, it is time-saving for its user-friendly operation.
Moreover, the file size restriction is beneficial for management.
Disadvantages
The deployment of shared drive requires manual supervision, and it may be failed to
handle all the documents when faced with business expansion.
Improvement Areas
As mentioned, some problems related to documentation and data storage has been
identified. Using the shared drive, the problem of documents sharing will be solved. On
one hand, relevant documents can be delivered from another department quickly. On
the other hand, it is very easy for us to share documents to improve working efficiency.
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9.2.1.2 Online BBS
Features
Online BBS is a system which allows a group of people to leave messages, and the others
in the group can read and reply. In REACH24H, there is an existing internal internet-
based discussion system for their employees to exchange news, opinions and experience
to other colleagues. To improve the utilization of BBS, we suggest to assign an individual
for maintenance and promotion and to develop a mobile BBS application in
smartphones.
Advantages
Online BBS operate in a very simple manner. It gives users an opportunity to get
information from a huge number of sources. Whenever the employees find useful
documents or come up with interesting ideas, he/she could post it on the BBS and
everyone in the company could participate in discussion directly.
Disadvantages
Since the online BBS is so public and often unedited, it is difficult to ensure the quality
of each thread and post. Also, the online BBS do not keep an archive of each thread and
post. Some may disappear over a period of time as new threads are started.
Improvement Areas
Also, the problems of insufficient internal communication and training for new hires
have been identified by the assessment. With the help of Online BBS, new hires could
review the posts and know more about the systems and projects of the company.
9.2.1.3 ChemLinked
Features
To meet the growing demand for regulatory advice and market intelligence,
ChemLinked Chemical Portal is an existing platform which was created to provide
chemical regulatory information for China and the rest of the Asia Pacific region. It
integrates with news, Chempedia, regulation databases and webinars in its website. To
enhance the usability of ChemLinked, we suggest implementing the search and filter
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functions by professional areas, projects and levels. Also, ChemLinked should develop a
multi-language user interface including Chinese.
Advantages
ChemLinked is a trusted source of timely regulatory information. Moreover,
ChemLinked is a good choice to reach domestic and international companies,
professionals and government bodies in the chemical industry. It has gained recognition
and unparalleled popularity globally.
Disadvantages
Although ChemLinked has free access to open resources like news, articles and webinars,
it cost money to experience more premium features such as databases and interaction
with editors and experts.
Improvement Areas
The assessment result shows that there is still much space for improving knowledge
discovery, knowledge sharing and knowledge application. With the help of ChemLinked,
employees will be closely connected to the update information and regulation in the
industry.
9.2.1.4 IBM Connections
Features
IBM Connections is a collaboration platform that integrates email, activity and task
management, instant messaging, file sharing, collaborative document editing and more
into a unified solution. In its profiles section, users can tap the expertise and get answers
fast. The software refines communication to the extent of a common platform for
sharing ideas and allows all interested users to contribute and to access corporate
information. The knowledge base is well-organized, and accessible via mobile devices to
be used outside the office.
Advantages
Using this platform, employees can contact everybody inside the company, and access
every file he/she may be interested in. As a result, the company saves an incredible
amount of time, and there is no risk that valuable information will slide through the
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cracks. IBM Connections is integrated behind the firewall, meaning that it will enhance
security and take this burden off the IT team’s shoulders.
Disadvantages
The preparation stage of implementation could be very complex and time-consuming. A
project team should be set up to maintain the whole process, which means the cost could
be very high.
Improvement Areas
In order to solve insufficient IT support in KM processes, IBM Connections is a
collaborative tool for knowledge socialization, exchange and direction. Once the
software is set up properly and start running, both the quality of the consulting
services and the efficiency of the employees will be improved largely.
9.2.2 Solutions for Implementing New KM Tools
After considering the improvement of existing KM tools, some new KM tools have been
proposed to improve the KM processes of REACH24H which includes the Skype for
Business, the Web-based Learning System, the Document Management System and the
E-document System.
9.2.2.1 Skype for Business
Features
“Skype for Business” is a unified communication platform that can send an instant
message which is developed by Microsoft. “Skype for Business” is for the socialization,
both internal and external. The employees can communicate with each other through
“Skype for Business” and the employees can also have met with clients through “Skype
for Business”. “Skype for Business” have both desktop and mobile application which
allow employees to use in the office and at home.
Advantages
“Skype for Business” is an international software that has been widely used all around
the world for professional and formal business communication. “Skype for Business” is
more secure than using WeChat in terms of its encryption system. “Skype for Business”
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has firewalls which can resist hacking. This can enhance the confidentiality of business
information.
Disadvantages
“Skype for Business” is not free. The company needs to pay annual fees to subscribe the
license to access software. Some employees may do not know how to use this software
because it is not a prevalent communication tool in China. Therefore, REACH24H may
need to organize some training courses for its employees.
Improvement Areas
The initial communication platform of REACH24H is WeChat. However, WeChat is not
a formal business platform. If the company keep using WeChat, it may lower the brand
image and professionalism of REACH24H. Besides, in terms of security issues, the
information stored in WeChat may have risks on involving information surveillance or
information leakage. However, “Skype for Business” has well-developed firewalls which
can resist hacking to protect information. Another factor that should be noted is that
“Skype for Business” is a widely used software over the globe. As an international
company, REACH24H has preferred the use “Skype for Business” instead of WeChat to
cater for their foreign clients.
9.2.2.2 Web-based Learning System (WBL)
Features
Web-based Learning System using the web-based technologies to provide online courses
including regulations and case study. The employees can study at home, at work, or
anywhere with laptops and connect to the internet. The WBL can also provide
customized course structure for different staff grades. WBL also have an assessment
function which provides discussion forums, online multiple choice test and e-portfolio.
Advantages
The employees can have systematic training courses which allow them to acquire new
knowledge and share knowledge.
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Disadvantages
A critical obstacle could be how to collect and classify the online courses as well as who
will be in charge to update the courses. Also, although the company can subscribe to the
system, this system is costly.
Improvement Areas
WBL is useful for new employees not only to quickly adapt to the company's
environment by capturing new knowledge and understand the workflow of the company
but also for project teams to get information quickly when the project is on-going.
9.2.2.3 Document Management System (DMS)
Features
Documents management system (DMS) is a newly-developed system which can store a
large number of files, manage documents and classify the files. It has embedded various
functions like documentation storage, classification, searching and collaboration and
history recording. Moreover, proper templates for different types of documents have
been set up in the system. When using this system, employees can classify and store their
own documents to make them convenient to use. Moreover, department members can
scan and edit relevant documents from other departments. For security reasons, the
documents could be accessed only by authorized staff, and the permission of reading
and writing should be managed separately, which is flexible for the company to do
resources management.
Advantages
It provides an efficient way of managing and sharing documents. By developing a
customized user-friendly interface, the operation of the system can be quite easy to catch
up.
Disadvantages
A critical obstacle could be how to collect and classify current documents before start
developing DMS. And investing in DMS may lead to the over-budget problem.
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Improvement Areas
With the using of DMS system, all departments can get useful information from the
system which saves lots of time. Moreover, the confusion and loss of documents can be
avoided by the function of collaboration and history recording. New employees can also
easily find the proper templates for different types of documents in the system to be used
for their projects.
9.2.2.4 E-Document System
Features
E-Document system is an online platform for the company to do the knowledge
management which integrated most of the functions which can improve the knowledge
processes. The way of use is simple because it only involves two steps.
The first one would be the knowledge accumulation which has three parts. The first part
is “Knowledge document upload”: Whether on the PC or the mobile devices, this system
provides a fast and convenient way to upload documents, allowing employees to upload
various work-related knowledge documents to the enterprise knowledge base anytime.
The second part is “Process accumulation knowledge”: REACH24H mainly has 4
processes. The employees can share the process document via this system. After the
process flow of the process of sending and receiving documents, the process of contract
approval, and the process of project acceptance, the corresponding documents are
automatically archived into the enterprise knowledge base. The last part is “Work scene
accumulation knowledge”: In the work scenarios such as conferences, collaborations,
tasks, microblogs, projects, etc., all kinds of management documents generated will
enter the enterprise knowledge base through pre-set paths and rules, so that the
accumulation of enterprise knowledge in daily work is “unconsciously going." This part
can also store either explicit or tacit knowledge.
The second step is knowledge sharing. This process has four parts. The first part is the
“Knowledge document retrieval”: Provide a powerful internal enterprise search engine
which is similar to Baidu and Google, is convenient for employees to search for what
they want, making knowledge sharing more convenient and efficient. The second part is
the “Knowledge information portal”: Build multidimensional knowledge portals such as
company rules, typical cases, and product-related portals. It can share with more
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employees who need specific knowledge at any time. The third part is “Building a
knowledge map”: Provide a powerful knowledge map scene designer, which can
integrate, sort and index all kinds of knowledge according to management and work
scenes, thus establishing various knowledge maps, such as new employee employment
guidelines, product sales guidelines, and other knowledge maps. The last part is the
“Mobile knowledge review”: Provide powerful and fast mobile search function, which is
convenient for employees to query knowledge documents on mobile devices in the
mobile information portal anytime and anywhere, so that knowledge sharing can serve
all employees in 7*24 hours.
Advantages
E-Document system can provide a platform for the company to share and store the
knowledge. The system is very convenient and easy to operate. In the long run, this
system can save money for new employees’ training and avoid the loss of knowledge
caused by the loss of talent.
Disadvantages
The system can be outsourced to a third party for development or developed by the
REACH24H. However, REACH24H is required to spend a lot of time and money to build
up the system. Also, as it involved a lot of functions, the testing period would be long
and need to keep spending money for doing the continuous maintenance.
Improvement Areas
Whether on the PC or the mobile devices, this system provides a fast and convenient way
to upload documents, allowing employees to upload various work-related knowledge
documents to the enterprise knowledge base anytime. The employees can share the
process document via this system. This system can also store either explicit or tacit
knowledge. The system is convenient for employees to search for what they want,
making knowledge sharing more convenient and efficient. This system builds
multidimensional knowledge portals such as company rules, typical cases, and product-
related portals. It can share with employees who need specific knowledge at any time.
This platform also provides a powerful and fast mobile search function, which is
convenient for employees to query knowledge documents on mobile devices in the
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mobile information portal, so that knowledge sharing can serve all employees in 7*24
hours.
10. Evaluation
In order to find out which is the best solution suit for the REACH24H, it is important to
set up criteria to do an evaluation for two proposed solutions.
10.1 Evaluation Criteria
A detailed description of the scoring criteria will be illustrated in the following:
10.1.1 Insufficient Communication
Communication refers to both text-based and oral-based communication. Client’s
information, company information, industry information are the information that
required to exchange frequently. Besides, knowledge exchange is crucial for sharing tacit
knowledge from both senior to junior employees as well as from team to team. Having
meetings is also crucial for doing knowledge discovery, knowledge capture, knowledge
sharing and knowledge application. When the KM tools can complement the insufficient
in the specific area, 1 mark will be given. A tick symbol will be represented to 1 mark.
Table 12 - Criteria scoring of KM Tools to improve Insufficient Communication
By doing criteria scoring evaluation, table 12 shows the result of the proposed solution
for new KM tools and for existing KM tools are scored 14 marks. As a result, the value of
either implementing new KM tools or improving the existing KM tools is same.
10.1.2 Insufficient Training
Training is of paramount importance for knowledge discovery, knowledge capture and
knowledge sharing. Online training and discussion forum are two methods most likely
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to be accepted by the employees for taking training. As a result, insufficient training can
be improved by either implementing a new system or embedding the training function
on the KM system. 1 mark will be given if the KM tool has the function of offering
training. A tick symbol will be represented to 1 mark.
Table 13 - Criteria scoring of KM Tools to improve Insufficient Training
By doing criteria scoring evaluation, table 13 shows the proposed solution for new KM
tools and for existing KM tools are scored 3 marks and 1 marks respectively. As a result,
the value of implementing new KM tools is higher than improving the existing KM tools.
10.1.3 Insufficient IT support
IT support including the function of storage, exchange and update the document. It is
vital for the cosmetic division because the team members from the division are required
to access the document to edit, update or comment the information. Therefore, 1 mark
will be given if the KM tool can improve the area of document storage or document
exchange or document update. A tick symbol will be represented to 1 mark.
Table 14 - Criteria scoring of KM Tools to improve Insufficient IT Support
By doing criteria scoring evaluation, table 14 shows the score of the proposed solution
for new KM tools is 4 marks and the score of existing KM tools is 9 marks. As a result,
the value of implementing new KM tools is lower than improving the existing KM tools.
10.1.4 Required Resources
For any project, time and cost are the top-prioritized concerns for doing a project.
Therefore, Time and cost are included as a criterion to do an evaluation. For the required
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time is short, can be finished within 4 months, 1 mark will be given. Otherwise, no mark
will be given. And for the cost, under RMB200,000 will be defined as low cost, and 1
mark will be given; between RMB200,001 to RMB400,000 will be defined as medium
cost, 0.5 marks will be given; more than RMB 400,001 will be defined as expensive, no
mark will be given.
Table 15 - Criteria scoring of required resources for implementing KM Tools
By doing criteria scoring evaluation, table 15 shows the score of the proposed solution
for new KM tools and existing KM tools are 2 marks and 5 marks respectively. As a result,
the value of implementing new KM tools is lower than improving the existing KM tools.
10.1.5 Challenges
Challenges refer to the potential risks that may confront. Four criteria have been set
under the challenge for the proposed KM tools, including technical issues for setup,
technical issues for maintenance, system stability and employee adoption. The level of
challenge will be classified in two grade, which is High (0 marks), Medium (0.5 marks)
and Low (1 mark).
Table 16 - Criteria scoring of challenges for implementing KM Tools
By doing criteria scoring evaluation, table 16 shows the score of the proposed solution
for new KM tools is 9 marks and the score of existing KM tools is 10 marks. As a result,
the value of implementing new KM tools is slightly lower than improving the existing
KM tools.
10.1.6 KM Processes
Based on the assessment result, the areas for improvement in terms of the KM processes
has been added as one of the criteria. It is, for further explanation, 1 mark will be given
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if the KM tools can facilitate or improve either combination or socialization of
knowledge discovery, externalization or internalization from knowledge capture,
exchange or socialization of knowledge sharing or direction and routines of knowledge
application. In here, 0.5 marks will be given to each sub-process.
Table 17- Criteria scoring of KM Tools to improve the KM processes
By doing criteria scoring evaluation, table 17 shows the score of the proposed solution
for new KM tools is 10 marks and the score of existing KM tools is 9 marks. As a result,
the value of implementing new KM tools is slightly higher than improving the existing
KM tools.
10.2 Evaluation Result
Table 18 - Criteria scoring Result of KM Tools
Table 18 shows the total score of two proposed solutions. 42 marks were given to the
implementation of new KM tools and 48 marks were given to improve the existing KM
tools. Therefore, doing investment in improving the existing KM tools is worthier than
investing in implementing new KM tools. The reasons for choosing to improve KM tools
is not only because of the comparison of the total score but also the score for each KM
tool. Four existing KM tools scored within 11-13 marks, which mean the value of each
KM tool is nearly about the same. However, the value of each new KM tool is quite
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different, the range of score is from 6 to 15.5 marks. Moreover, in terms of the required
resources, the required time is longer and the required cost is higher if the
implementation the new KM tools. Consequently, due to the basis of cost and
effectiveness, the suggested solution would be to improve the existing KM tools.
11. Implementation
11.1 Work Breakdown
The project's implementation plan includes seven main tasks, namely project
initialization, project planning, project execution, system design, system installation,
system testing and project closure. The detailed work breakdown is as follows:
Task Name Duration
1.Initiating The Project 9 days
2.Planning The Project 59 days
2.1 Share Drives 10 days
2.2 Online BBS 12 days
2.3 ChemLinked 13 days
2.4 IBM Connections 19 days
2.5 Develop Project Plan 4 days
2.6 Submit Project Plan 1 day
2.7 Milestone: Project Plan Approval 0 day
3. Executing The Project 193 days
3.1 Share Drives 30 days
3.2 Online BBS 35 days
3.3 ChemLinked 50 days
3.4 IBM Connections 78 days
4. Closing The Project 6 days
Table 19 - Work breakdown
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11.2 Project Team Structure
The human resource for this project requires at least 10 staffs. The project also needs an
outsourcing team IBM. Among them, Project Manager, Domestic Division Head,
Consultant Leader, Technical Leader and IBM IT leader are monthly contract employees
depending on the period of their work schedule. The detailed project team structure is
listed as below:
Role Organization / Position Responsibility
Supervisor Administrative Department Chairman. Responsible for the
whole company
Project Manager Administrative Department General Manager. Responsible
for following-up the work
Cosmetic Division
Head Administrative Department
Head. Responsible for the
Domestic issue
Consultant Leader Consultant Agency Leader. Responsible for the
Consultant Agency
Consultant 1 Consultant Agency Consultant.
Consultant 2 Consultant Agency Consultant.
Cosmetic Regulatory
Consultant Consultant Agency
Consultant. Responsible for the
cosmetic department
Technical Team Leader IT Department Leader. Responsible for the product.
Software Development
engineer IT Department
Engineer. Responsible for
the Software development.
Test Engineer IT Department Engineer. Responsible for testing the
product.
Programmer IT Department Programmer. Responsible for following
up the product process
IBM Suppliers Supplier Supplier. Outsourcing.
Table - 20 Project Team Structure
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11.3 Timeline
This is the timeline chart on monthly basis. Revisiting these tasks on a monthly basis
can help to initiate any changes that need to take place and adjust the progress
accordingly. Because in many cases it is required to shorten the project duration, so
based on the work breakdown and the timeline, two methods can be used to accelerate
project progress, which is fast-tracking and project crashing.
Fast-tracking does not need to wait for each part to be done separately but can
perform two or more tasks concurrently. So by rearranging the tasks, the project can
save a lot of time. When fast-tracking has not been able to save enough time for the
project, the best way is to consider the project crash. This approach can help add
additional resources to project at the lowest cost. And the project process can be further
shortened by assigning other resources for specific activities.
Figure 4 - Timeline for improving existing KM tools
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11.4 Resources Estimation
11.4.1 Fixed Cost Estimation
The fixed cost of the knowledge management transformation project only occurs during
the installation process. This fixed cost is used to purchase servers that provide services
and guarantees for three knowledge management tools.
Major Tasks Fixed cost (RMB)
Installation $10,000.00
Sub-Total $10,000.00
11.4.2 Human Resource Estimation
The following table shows the standard cost and overtime cost of each work role. The
total human resource expenditure can be calculated based on the length of time that
each role participated in this project. Because the IBM connections is a third-party
outsourcing project, so it is recorded at a total price of RMB$300,000 in the human
resource estimation.
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Role Organization/
Position
Responsibility Type of
Resource
Standard
Cost
Overtime
Cost
Supervisor Administrative
Department
Responsible for
the whole company. Work $55/hr $110/hr
Project
Leader
Administrative
Department
Responsible for
the whole project. Work $55/hr $110/hr
Project
Manager
Administrative
Department
Responsible for
following-up the work. Work $55/hr $110/hr
Domestic
Division
Head
Administrative
Department
Responsible for the
Domestic issue. Work $55/hr $110/hr
Consultant
Leader
Consultant
Agency
Responsible for the
Consultant Agency. Work $55/hr $110/hr
Consultant 1 Consultant
Agency Consultant. Work $45/hr $90/hr
Consultant 2 Consultant
Agency Consultant. Work $45/hr $90/hr
Cosmetic
Regulatory
Consultant
Consultant
Agency
Responsible for the
cosmetic department. Work $45/hr $90/hr
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Technical
Team Leader IT Department
Responsible for the
product. Work $50/hr $90/hr
Software
Development
Engineer
IT Department Responsible for
Software development. Work $45/hr $90/hr
Test
Engineer IT Department
Engineer.
Responsible for
testing the product.
Work $45/hr $90/hr
Programmer IT Department
Programmer.
Responsible for
following up the
product process.
Work $45/hr $90/hr
Suppliers
Supplier Commission
Supplier.
Outsourcing. Work
The IBM Connections
project is calculated at a
package price of $300,000
RMB.
11.4.3 Total Project Cost Estimation
The following table shows the fixed and labour costs incurred in each task. Based on the
costs generated by each task, the total cost can be calculated using the bottom-up
estimation method.
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Task Fixed Cost Labor Cost Total Cost
1. Project Initialization $0 $30,330 $30,330
2. Planning The Project $0 $96,810 $96,810
3. Executing The Project $0 $22,270 $22,270
4. Design System $0 $222,460 $222,460
5. Installation $10,000 $41,050 $41,050
6. Test $0 $61,000 $61,000
7. Closing the Project $0 $21,100 $21,100
TOTAL COST $505,020
11.5 Contingency Plan - Risk Mitigation
In the following, three risks from potential causes and possible impacts have been
analyzed. Table 21 shows the risk register and table 22 shows the probability and impact
matrix of KM innovation project for REACH24H:
Bugs in the mobile APP
Technically, bugs are inevitable in computer programs. But, it’s necessary to control
critical bugs and minimizes their negative effects as much as possible. Because critical
bugs probably affect the system normally working. And if users couldn’t log in the system
at some particular situation, then the company may lose much money.
System stability after customization
The second solution aims to provide a multifunctional platform for uses, which is
basically integrating with some effective tools based on the current system. Thus, it
definitely requires our technical team cooperating with software vendors about
modifying back-end data connection so that the new platform could be a high-efficiency
production tool.
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Less motivation
Usually, developing a new system means that employees need relearning how to work
on it, which means the workload will increase at the very first beginning. Thus, how to
use incentives to attract and activate employees to learn the system would be pretty
important. For example, the employer may offer a few hours day-off if employees
successfully learn how to use the system.
Table 21 - Risk Register of KM innovation project
Table 22 - Probability/Impact Matrix of KM innovation project
12. Expected Outcomes
By improving the existing KM tools, it is believed that the outcomes would be able to solve
the previously mentioned problems.
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For the IT-based KM suggestion, which is to improve existing KM tools, it can alleviate
the turnover rate of human resources as it can increase the satisfaction of employees and
the loyalty of employees. To improve the existing KM tools is, indeed, solving the
problems caused by insufficient IT support as KM tools are one of the IT supports. As a
result, the KM tools can act as a platform for communicate and share knowledge. Besides,
the share drive can act as an information hub to store and manage information. This can
improve the area of knowledge sharing (exchange) between process-to-process and from
team to team. Online BBS can act as a community to improve the problem areas of
knowledge capture (internalization) and knowledge sharing (socialization). The
ChemLinked and IBM connections can improve the knowledge discovery (combination),
knowledge share (exchange) and knowledge application (direction) since the filter, search
and outsource some of the functions of two KM tools.
For the non-IT-based KM suggestions, which refers to the improvement of the
organization culture, organization structure and the physical environment, it can mainly
internally contribute to the cosmetic division. For the physical environment, it can help
to remove the boundary of interpersonal relationship by removing the cubicle office
design as the employees could freely talk to each other’s, concurrently, it can increase the
transparency of the business processes. For the KM culture, to maintain a good
atmospheric working environment can foster communication between employees. It can
help to encourage the employees to get involved in the knowledge processes. The
proactive or senior employees can share their knowledge and the passive or junior
employees can discover or capture knowledge. To develop a KM department or set up a
post for KM officer can help to keep tracking of the problem hidden in the company.
By following the proposed plan to make an improvement on the existing KM tools can
optimize the knowledge management of the cosmetic division. It can help the company
to reach the objectives of providing high-value consulting services to the clients, as well
as to maintain its professional brand image. The benefit of improving existing KM tools
can, on one hand, increase the loyalty of the customers and employees; on the other hand,
increase the credibility of the company, hence, to potentially increase the sales,
Overall speaking, improving the existing KM tools can lead the REACH24H to build an
intellectual-based environment to do knowledge process. For examples, the
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communication between employees will become effective and knowledge exchange would
be highly encouraged, etc. As a result, there is a complementary beneficial relationship
between the proposed technical-based KM solutions and proposed non-technical-based
KM infrastructure to foster the effective KM processes. The ultimate outcomes would
enable ways to elicit, represent, organize, reuse and renew both tacit and explicit
knowledge among the team workers, as well as to create a knowledge-driven culture,
maximize its intellectual capital and create an environment for collaborative knowledge
sharing for REACH24H.
13. Key Learning Points
During the KM seminars, Professor Fang has introduced us to the fundamental concepts
in the study of knowledge and its management, including the processes of knowledge
discovery, knowledge capture, knowledge sharing and knowledge application. However,
there are some challenges come up when starting to conduct the assessment. First of all,
it difficult to connect the basic KM concepts with the real business environment. In order
to deepen our understanding of KM concepts, we spent a lot of time and efforts in research
including reading articles, searching for real cases and group discussions. Secondly, the
target company we chose for the project was not easy to identify its KM processes simply
by browsing its company website. Fortunately, by communicating with our teammate
who worked for the REACH24H, we could understand the company business strategy,
objective and business processes in a more effective way. As a result, we completed the
assessment report timely and productively. The experience of conducting an assessment
and writing a report made us easier to prepare a solution proposal. Based on the
assessment result, we managed to propose the effective solutions for REACH24H and
developed the implementation plan as detailed as possible.
To conclude, after doing this analytic-based group project, we have not only developed
the ability to describe the key concepts of applying KM to enable REACH24H to achieve
sustainable competitive advantages but also become capable to propose problem-solving
solutions in KM implementation and management strategies with reference to the
business environment of REACH24H.
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14. Reference
Čiarnienė, R., Vilmantė, K., & Vienažindienė, M. (2010). EXPECTATIONS AND JOB
SATISFACTION: THEORETICAL AND EMPIRICAL APPROACH.
doi:10.3846/bm.2010.131
Fisher, C. D. (2003). Why do lay people believe that satisfaction and performance are
correlated? possible sources of a commonsense theory. Journal of Organizational
Behavior,24(6), 753-777. doi:10.1002/job.219
REACH24H Cosmetic website. (n.d.). Retrieved from
http://www.reach24h.com/cosmetic-en/
Masa’deh, R. e. (2016). "The role of knowledge management infrastructure in enhancing
job satisfaction at Aqaba five star hotels in Jordan." Communications and Network
8(04): 219.
Ward, V. and C. Holtham (2000). "The role of private and public spaces in knowledge
management." Victoria 20(7250): 1202.
IBM. (2018). Overview of IBM Connections. Retrieved from https://www.ibm.com/hk-
en/marketplace/ibm-connections
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15. Appendix
Appendix 1 - Terminology
KM = Knowledge Management
KC = Knowledge Capture
KD = Knowledge Discovery
KS = Knowledge Sharing
T = Tacit Knowledge
E = Explicit Knowledge
D = Declarative Knowledge
P = Procedural Knowledge
G = General Knowledge
CS = Contextual-Specific Knowledge
TS = Technical-Specific Knowledge
BBS = Name of the internal Forum used by REACH24H company
ChemLinked = Name of the KM system used by REACH24H company
CD = Cosmetic Division
CRC = Cosmetic Regulatory Consultant (“Consultant”)
TT = Technical Team
CRA = Chemical Regulatory Analyst (“Analyst”)
CRE = Chemical Regulatory Engineer (“Engineer”)
CFDA = China Food and Drug Administration
CPSD = Consumer Product Service Department
CoFS = Certificate of Free Sales
OEM = Original Equipment Manufacturer
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Appendix 2 - Generalized Business Process of Cosmetic Division
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Appendix 3 - Summary of Contingency Factors in Each Process
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Appendix 4 - Interview Question
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Appendix 5 - Questionnaire Design
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Appendix 6 – Implementation: Work Breakdown Details
Task Name Duration
1.Initiating The Project 9 days
1.1 Kickoff Meeting 1 day
1.2 Document The Idea 3 days
1.3 Determine Project Team 3 days
1.4 Develop Project Charter 2 days
1.5 Charter Signed 0 day
2.Planning The Project 59 days
2.1 Share Drives 10 days
2.1.1 Define Integration Management 1 day
2.1.2 Define Scope Management 1.5 days
2.1.3 Define Schedule Management 1 day
2.1.4 Define Cost Management 1 day
2.1.5 Define Quality Management 1 day
2.1.6 Define Resource Management 1 day
2.1.7 Define Communication Management 1 day
2.1.8 Define Risk Management 1.5 days
2.1.9 Define Procurement Management 1 day
2.1.10 Project Monitor 10 days
2.2 Online BBS 12 days
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2.2.1 Define Integration Management 1 day
2.2.2 Define Scope Management 2 days
2.2.3 Define Schedule Management 1.5 days
2.2.4 Define Cost Management 1.5 days
2.2.5 Define Quality Management 1.5 days
2.2.6 Define Resource Management 1 day
2.2.7 Define Communication Management 1 day
2.2.8 Define Risk Management 1.5 days
2.2.9 Define Procurement Management 1 day
2.2.10 Project Monitor 12 days
2.3 ChemLinked 13 days
2.3.1 Define Integration Management 1 day
2.3.2 Define Scope Management 2 days
2.3.3 Define Schedule Management 1 day
2.3.4 Define Cost Management 1 day
2.3.5 Define Quality Management 2 days
2.3.6 Define Resource Management 1.5 days
2.3.7 Define Communication Management 1.5 days
2.3.8 Define Risk Management 2 days
2.3.9 Define Procurement Management 1 day
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2.3.10 Project Monitor 13 days
2.4 IBM Connections 19 days
2.4.1 Define Integration Management 2 days
2.4.2 Define Scope Management 5 days
2.4.3 Define Schedule Management 2 days
2.4.4 Define Cost Management 2 days
2.4.5 Define Quality Management 5 days
2.4.6 Define Resource Management 3 days
2.4.7 Define Communication Management 2 days
2.4.8 Define Risk Management 1.5 days
2.4.9 Define Procurement Management 1.5 days
2.4.10 Project Monitor 19 days
2.5 Develop Project Plan 4 days
2.6 Submit Project Plan 1 day
2.7 Milestone: Project Plan Approval 0 day
3. Executing The Project 193 days
3.1 Share Drives 30 days
3.1.1 Requirement Analysis 5 days
3.1.1.1 Project Monitor 5 days
3.1.2 System Design 5 days
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3.1.2.1 Sharing Module 2.5 days
3.1.2.2 Accessing Module 2.5 days
3.1.2.3 Project Monitor 5 days
3.1.3 Installation 10 days
3.1.3.1 Product Information Migrate 3 days
3.1.3.2 Install Software 7 days
3.1.3.3 Install Complete 0 day
3.1.3.4 Project Monitor 10 days
3.1.4 Testing 10 days
3.1.4.1 Develop test plan 1 day
3.1.4.2 System testing 3 days
3.1.4.3 Integration Testing 2 days
3.1.4.4 Load Testing 2 days
3.1.4.5 User Acceptance Testing 2 days
3.1.4.6 Project Monitor 10 days
3.2 Online BBS 35 days
3.2.1 Requirement Analysis 5 days
3.2.1.1 Project Monitor 5 days
3.2.2 System Design 10 days
3.2.2.1 Mobile Application Module 5 days
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3.2.2.2 Device Operation Module 5 days
3.2.2.3 Project Monitor 10 days
3.2.3 Installation 10 days
3.2.3.1 Product Information Migrate 4 days
3.2.3.2 Install Software 6 days
3.2.3.3 Install Complete 0 day
3.2.3.4 Project Monitor 10 days
3.2.4 Testing 10 days
3.2.4.1 Develop test plan 1 day
3.2.4.2 System testing 3 days
3.2.4.3 Integration Testing 2 days
3.2.4.4 Load Testing 2 days
3.2.4.5 User Acceptance Testing 2 days
3.2.4.6 Project Monitor 10 days
3.3 ChemLinked 50 days
3.3.1 Requirement Analysis 5 days
3.3.1.1 Project Monitor 5 days
3.3.2 System Design 15 days
3.3.2.1 Search Module 5 days
3.3.2.2 Filter Module 5 days
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3.3.2.3 Language Module 5 days
3.3.2.4 Project Monitor 15 days
3.3.3 Installation 15 days
3.3.3.1 Product Information Migrate 5 days
3.3.3.2 Install Software 10 days
3.3.3.3 Install Complete 0 day
3.3.3.4 Project Monitor 15 days
3.3.4 Testing 15 days
3.3.4.1 Develop test plan 2 days
3.3.4.2 System testing 4 days
3.3.4.3 Integration Testing 3 days
3.3.4.4 Load Testing 3 days
3.3.4.5 User Acceptance Testing 3 days
3.3.4.6 Project Monitor 15 days
3.4 IBM Connections 78 days
3.4.1 Requirement Analysis 10 days
3.4.1.1 Project Monitor 10 days
3.4.2 System Design 28 days
3.4.2.1 Email Module 4 days
3.4.2.2 Activity Management Module 4 days
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3.4.2.3 Task Management Module 4 days
3.4.2.4 Instant Message Module 4 days
3.4.2.5 File Sharing Module 4 days
3.4.2.6 Expertise Connection Module 4 days
3.4.2.7 Response Module 4 days
3.4.2.8 Project Monitor 28 days
3.4.3 Installation 20 days
3.4.3.2 Install Software 20 days
3.4.3.3 Install Complete 0 day
3.4.3.4 Project Monitor 20 days
3.4.4 Testing 20 days
3.4.4.1 Develop test plan 2 days
3.4.4.2 System testing 9 days
3.4.4.3 Integration Testing 3 days
3.4.4.4 Load Testing 3 days
3.4.4.5 User Acceptance Testing 3 days
3.4.4.6 Project Monitor 20 days
4. Closing The Project 6 days
4.1 Prepare Final Report 5 days
4.2 Present Final Report 0 day
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4.3 Document Lessons Learned 2 days
4.4 Update File 1 day
4.5 Project Complete 0 day
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Appendix 7 – Total Project Cost Estimation Details
Task Fixed Cost Labor Cost Total Cost
1. Project Initialization $0 $30,330 $30,330
1.1 Kickoff meeting $0 $2,600 $2,600
1.2 Document the Idea $0 $4,480 $4,480
1.3 Determine Project Team $0 $8,750 $8,750
1.4 Project Monitor $0 $1,000 $1,000
1.5 Develop Project Charter $0 $13,500 $13,500
1.6 Charter Signed $0 $0 $0
2. Planning The Project $0 $96,810 $96,810
2.1 Define Integration Management $0 $7,700 $7,700
2.2 Define Scope Management $0 $9,100 $9,100
2.3 Define Schedule Management $0 $8,850 $8,850
2.4 Define Cost Management $0 $10,340 $10,340
2.5 Define Quality Management $0 $9,000 $9,000
2.6 Define Resource Management $0 $9,300 $9,300
2.7 Define Communication Management $0 $8,400 $8,400
2.8 Define Risk Management $0 $9,150 $9,150
2.9 Define Procurement Management $0 $10,220 $10,220
2.10 Project Monitor $0 $5,000 $5,000
2.11 Develop Project Plan $0 $9,750 $9,750
2.12 Submit Project Plan $0 $0 $0
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2.13 Milestone: Project Plan Approval $0 $0 $0
3. Executing The Project $0 $22,270 $22,270
3.1 Requirement Analysis $0 $21,770 $21,770
3.2 Project Monitor $0 $500 $500
4. Design System $0 $222,460 $222,460
4.1 Sharing Module $0 $14,875 $14,875
4.2 Accessing Module $0 $14,875 $14,875
4.3 Mobile Application Module $0 $9,245 $9,245
4.4 Device Operation Module $0 $9,245 $9,245
4.5 Search Module $0 $6,750 $6,750
4.6 Filter Module $0 $6,750 $6,750
4.7 Language Module $0 $18,840 $18,840
4.8 E-mail Module $0 $18,840 $18,840
4.9 Activity Management Module $0 $18,840 $18,840
4.10 Task Management Module $0 $18,840 $18,840
4.11 Instant Message Module $0 $18,840 $18,840
4.12 File Sharing Module $0 $18,840 $18,840
4.13 Expertise Connection Module $0 $18,840 $18,840
4.14 Response Module $0 $18,840 $18,840
4.15 Project Monitor $0 $10,000 $10,000
5. Installation $10,000 $41,050 $41,050
5.1 Product Information Migrate $0 $20,360 $20,360
5.2 Install Software $0 $10,690 $10,690
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5.3 Project Monitor $0 $10,000 $10,000
5.4 Installation complete $0 $0 $0
6. Test $0 $61,000 $61,000
6.1 Develop test plan $0 $10,000 $10,000
6.2 System Testing $0 $14,000 $14,000
6.3 Integration Testing $0 $9,000 $9,000
6.4 Load Testing $0 $8,000 $8,000
6.6 User Acceptance Testing $0 $10,000 $10,000
6.7 Project Monitor $0 $10,000 $10,000
7. Closing the Project $0 $21,100 $21,100
7.1 Prepare Final Report $0 $5,000 $5,000
7.2 Present Final Report $0 $2,100 $2,100
7.3 Debt Collection $0 $5,000 $5,000
7.4 Document Lessons Learned $0 $4,000 $4,000
7.5 Update File $0 $5,000 $5,000
7.6 Project Complete $0 $0 $0
Sub-Total $10,000 $495,020 $505,020
Consultant Fee $0
Reservation $0
TOTAL COST $505,020
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This document is downloaded from Outstanding Academic Papers by Students (OAPS), Run Run Shaw Library, City University of Hong Kong.