Sustainable Value Report 2001/2002 - BMW Group

BMW plants in Spartanburg
and Dingolfing
Knowledge management: A competitive
edge
Knowledge is one of the most important
resources of the future. Instead of following
the trend of packing knowledge into electronic
databases, the BMW Group pursues a longterm
strategy focusing on the promotion of a
knowledge culture.This approach is based on
the principle that a knowledge culture creates
the basic conditions to support BMW employees
in their efforts to makes better use of internal
and external information.
Based on information obtained from empirical
studies, BMW recognized at an early stage that
knowledge management often requires highly
functional information technology (IT). At the
same time, it must not run parallel to, or contradict
the business processes. A key factor in
long-term success, however, is the work on the
knowledge culture in a world, in which “sharing
knowledge” is often contrary to the “knowledge
is power” concept.
Consequently, a majority of the measures
are aimed at strengthening the awareness in
dealing with knowledge and to provide sustainability,
for example, by implementing this frame
of mind in the corporate principles.This includes
qualifying personnel within the framework of
Basic questions of knowledge management
Is user orientation
assured (interface
between IT and
user)?
Source: BMW
IT
People/Culture
Processes/Organization
target-group specific training, as well as the
creation of suitable incentives and performance
appraisal systems.
Another focus of attention is on the preparation
and organization of communication platforms
to ensure that experiential knowledge
can flow beyond the limitations of departments
and company plants.This includes, for example,
facilitating an exchange of experience via
Intranet platforms face-to-face encounters,
and communication spaces in the production
plants. Knowledge within the corporation can
only gain effectiveness through the maximum
networking of knowledge carriers and knowledge
transfer.
Sharing success
Profit sharing and financial participation plans
are components of the employee-oriented BMW
Group personnel policies.
In 1973 BMW AG successfully introduced
a profit sharing plan essentially based on the
payment of dividends. In 2001, BMW AG
distributed around c235 million in profit sharing
based on the 2000 financial year.This is over
2.5 times more than the amount paid out five
years ago. In 2000, the total bonus payments
including profit sharing, vacation pay, and
To what extent does the
corporate culture promote
the sharing of knowledge
and the use of knowledge
from others?
Is knowledge management
integrated into the existing
business processes, or is it
regarded as “extra”work?
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