A Knowledge Strategy

Four strategic projects currently underway, customer relations management, the
financial business model, financial business intelligence, and the project team and
project documentation portal, implement information systems to support the
decision-making process arising out of ‘as-is’ data architecture. These systems will
support the knowledge management efforts both directly and indirectly by
addressing the knowledge retention and knowledge packaging issues at the same
time as driving specific business process and strategic interventions.
5.2 Addressing external operational and technical
capacity shortages
Most businesses, in contemplating their markets and customers, seek ways to gain
a strategic or competitive edge over their rivals in the so-called ‘four Ps of
marketing’ – product, price, place and promotion. The market that the Bank serves
is not essentially commercially competitive and perhaps could best be described as
an oligopoly in that there are few clients and almost no competitors. At present, the
local authorities collectively constitute the client segment of the Bank’s market that
is subject to our external ICT-knowledge management focus. This segment has been
described as ‘under stress’ facing challenges relating low-level skills and capacity.
This segment, particularly after the demarcation process of December 2001,
presents a real opportunity to address the operational and technical capacity
shortages that have plagued the local authorities until now.
Various stakeholders in local government, ranging from the national and
provincial government departments to the other statutory entities such as the
Municipal Demarcation Board (MDB) and NGOs such as the Municipal Managers’
Association (MMA) have different information needs and demands. Frequent
requests are made to local authorities for statutory information (annual financial
statements or other performance management reports) or informal information
such as surveys and questionnaires. The nett result is that numerous pockets of
unique or even replicated data and information exist that may or may not be
accessible by those requiring it. Confusion inevitably reigns as to which is
information is accurate.
After the Bank’s September 2002 strategic planning process it became clear from
the number of initiatives put forward in response to the quantum leap challenge
posed by the CEO, that a common infrastructure requirement was emerging,
namely the need for a Wide Area Network (WAN) to facilitate the delivery of
initiatives having consensus. Given that the Bank’s South African client base had
just completed the demarcation process for local authorities, the extent of the WAN
requirement has considerably diminished following the reduction of ‘clients’ from
in the order of 832 to some 284 nodes.
Having researched all the possible WAN options presently technically available
a proposal was made to the Bank’s executive management in November 2002 and
the best strategic technical alternative was confirmed and approved to be put
forward as part of the 2003/4 budget for consideration by the Board of Directors.
Approval for the project budget and implementation was received from the Board
in February 2002. To support the future strategic projects agenda, the Bank needs to
implement a virtual branch infrastructure to effectively communicate and
48 Development Bank of Southern Africa