Knowledge Network is Power(13)

'Global Mando', Knowledge Network is Power

It is not too much to say that knowledge management will draw more and more attention from all types of organizations in the future. Definition of knowledge management can be different from one company to another. 

However, nobody argues that only the firm establishment of knowledge management can guarantee the survival of any given organization.

As showed above, Mando Corporation is one of the best role model for knowledge management. Undoubtedly, knowledge management resurrected a dishonored company into a highly promising star.

As Mr. Oh implied, without knowledge management, Mando may already have been liquidated. In this point of view, lessons from the story of Mando insist that knowledge management should be spread into every single part of a society.

Knowledge Network is Power(12)

'Global Mando', Knowledge Network is Power

- Combination: It is combination that differentiates Mando's knowledge management from competitors. Global knowledge network, product life management program enabled the company to analyze, disseminate and edit explicit knowledge. As a result, Mando's knowledge management was widely claimed a unique system.

- Internalization: Mando didn't stop at the combination stage. Rather, it stepped forward to reach internalization, which means completion of the SECI model. For example, community of practice activities played crucial roles in embodying explicit knowledge throughout the entire organization.

Tacit knowledge such as craft and know-how, explicit knowledge such as manuals and management system, exchanged with each other harmoniously and thus created a virtuous circle of ever–advancing knowledge management system.

Knowledge Network is Power(11)

'Global Mando', Knowledge Network is Power

Against this background, in application of SECI model , Mando's knowledge management can be analyzed as following:

- Socialization: From central and local research centers to manufacturing facilities both at home and abroad, all employees captured tacit knowledge such as know-how and perspectives. With untrapped mind, people at Mando accumulated and dispersed tacit knowledge step by step.

- Externalization: Externalization realized when Mando took strong initiatives in knowledge management in spite of bankruptcy. Through peer group sharing and dialogue, experts' tacit knowledge articulated and gradually translated to explicit knowledge into understandable and relevant form.

Knowledge Network is Power(10)

'Global Mando', Knowledge Network is Power

One of the distinguished aspects of the Mando’s knowledge management is the unique performance evaluation indexes. Mando came up with its own evaluation tools which measure how much knowledge management contributed to the corporate performance.

Starting in 2006, Mando designated knowledge asset assessment and management system as the top priority of CKO (Chief Knowledge Officer). Consequently, Mando set up the overt goal and evaluated the performance of knowledge management, which brought the active participation of the employee and never-ending commitment of the management.

On top of that, Mando has changed the corporate culture so that employees can freely use the community of practice into works. For example, through community of practice activities, employees define what Mando’s core competency is in terms of competitive advantage and recreate core knowledge. 

Additionally, in pursuit of global communities of practice between oversea investors and partners, Mando widens knowledge management activities even outside the company.

Knowledge Network is Power(9)

'Global Mando', Knowledge Network is Power

Thanks to this innovation, Mando could dramatically reduce customer complaints and costs in quality control and inventory, all of which had caused big fraction in and outside of the organization. It is due to Mando's sharing of real-time information of domestic, overseas research centers and factories. 

This sharing also narrowed information gap and even expanded the knowledge scope of the organization. Throughout all these, Mando perfectly established a 'global cooperation system'. Moreover, Mando also cut down management cost and enhanced customer satisfaction by maintaining concrete production information and improving product quality. All of them led to the upgrade of Mando's global management capability.

According to the company, productivity was estimated to elevate by more than 200% and 20 billion won-equivalent outcomes were attained thanks to the global R&D knowledge management. Besides, Mando did full-page revision of its intellectual assets such as company codes, information system manual and quality management system into a 'global Mando standard manual'.

Knowledge Network is Power(8)

'Global Mando', Knowledge Network is Power

The central research center in Korea leads the development projects of the new technology and global R&D. Furthermore the center establishes and operates the optimal 'global R&D response system' by collecting customer demands and technology information in close cooperation with research centers in Beijing and India, technology centers in America and Germany. 

'Global Specification Management System' is the best example. Product information of both domestic and overseas investors and partners is efficiently exchanged throughout the whole process of product development, from the planning stage to mass production and quality control level. 

In the same context, PLM program enables research centers, domestic factories and overseas investors to share information on technology, parts development and product specification management.

Knowledge Network is Power(7)

'Global Mando', Knowledge Network is Power

These experts who have been at Mando more than 5 years are the holders of core technologies in their own R&D (Research and Development) area. They act as a go-between to disperse their knowledge into co-workers who join the development project.

In doing so, Mando shortened the required time for the development of new technology and invigorated R&D. At the same time, by stocking knowledge from community of practice activities, Mando encourages all employees see and learn the know-how of in-house experts. 

Mando's knowledge management does not just stay in sharing, utilizing and creating corporate knowledge. Rather, it advances to global network which ties foreign investors and partners together.

Knowledge Network is Power(6)

'Global Mando', Knowledge Network is Power

Let us talk about the intelligent car project for example, which was under development at that moment. The central research center was deeply involved in advanced development. 

In other words, the central research center mainly provided the concept of technology and devised necessary electronic and controlling technology. Furthermore, the center performed prototype tests as well.

In the meantime, once the quality and specifications of a product fixed, local research centers take the responsibility of mass production and after sale response.

Right after the development project of the intelligent car begins, in-house experts armed with related knowledge and experiences, immediately rush to the corporate research centers. 

Knowledge Network is Power(5)

'Global Mando', Knowledge Network is Power

Performance and safety of a car highly relies upon the quality of core parts, to name a few, breaks, suspension and steering, Mando succeeded in achieving world-class competitiveness in the development and production of core parts through knowledge management.

Other than Hyundai Motors, a long-time Korean customer, GM, Ford and Daimler-Chrysler also became new buyers of Mando. And this vividly shows even American 'Big 3'  highly values Mando's technological capability.

 

The very secret of knowledge management lies in the flip side of Mando's success story. First, in virtue of knowledge management, Mando initiated enterprise-level changes and innovation. In addition, as a knowledge-based company, Mando enhanced its competitiveness in technology by sharing knowledge throughout the organization. Moreover, as a result of close cooperation between central and local research centers located all around the Korea, plenty of new knowledge is endlessly being created.

Knowledge Network is Power(4)

'Global Mando', Knowledge Network is Power

In fact, Mr. Oh Sang Su, CEO and president of Mando in 2007, valued knowledge management as the indispensible part of the corporate operation.

"Mando's development history is totally attributed to knowledge management. Over the past 10 years, all employees of Mando are deeply involved in as many as 243 communities of practice, global conference system and e-campus. In doing so, all knowledge is shared and core competency has been strengthened."

He added, "Measuring the value of knowledge asset and converting it into numbers for the first time in Korea is also big fruits of knowledge management. As a matter of fact, knowledge management contributed Mando as much as 144.1 billion won including core knowledge asset value of 81.9 billion won over the last 7 years." 

Knowledge Network is Power(3)

'Global Mando', Knowledge Network is Power

In addition, Mando’s knowledge management is of great significance in Korean corporate sectors. Mando is the first Korean company which developed its own performance evaluation indexes and used it to measure how much knowledge management contributed to the corporate performance and how big the net value of key assets are. 

In doing so, Mando could manage the goals of knowledge management effectively. In the wake of Asian financial crisis back in 1997~1998, Mando went bankrupt and froze out all corporate expenditures. However, Mando didn’t stop investment in knowledge management.

As a result, Mando finally revived with 41 billion won in net profit in 2008. With high recognition of Mando's knowledge management, Korea's top business daily, MAEIL Business Newspaper and BOOZALLEN Korea awarded Mando the best prize in knowledge management in 2007.

Knowledge Network is Power(2)

'Global Mando', Knowledge Network is Power

Regarding the question of knowledge management, where does Mando's competitiveness come from?

Mando's competitive advantage lies in knowledge management through which all employees share, utilize and recreate core knowledge of the organization.

Thus, the essence of Mando's knowledge management can be defined as not mere 'information system' rather something 'human-based'. It is because Mando has been endlessly ripping out values by inserting the clothes of knowledge management on the top of information system. 

People in Mando bragged that they finished establishing information system such as ERP (Enterprise Resource Planning), PLM (Product Lifecycle Management) long time ago.

Knowledge Network is Power(1)

'Global Mando', Knowledge Network is Power

It is no doubt that we are living in a knowledge-oriented society. Knowledge is considered one of the core competitiveness to companies, universities and even governments. 

That could explain why many organizations rush to adopt knowledge management and take subsequent steps to improve their capabilities in various ways.

In this regard, taking a look at a company which shows wonderful performance in knowledge management over the considerable amount of times serves as an opportunity to enlighten the importance of knowledge management in this fast-changing era once again. 

And as far as knowledge management concerns, Mando Corporation, unlisted, one of the top Korean auto parts supplier whose sales reached 1,575 billion won  in 2008, is sure to be the best example.