Aussie financial sector ahead on KM
Aussie financial sector ahead on KM
Australia's financial sector is ahead of its European rivals in planning a knowledge management strategy, but behind the Europeans on implementation. A survey released yesterday also found that Europeans think more creatively about how knowledge management can benefit the business.
Australia seems to be good at understanding the benefits of KM, but has done nothing with it.
Knowledge Management in Australian Financial Institutions surveyed 130 Australian financial institutions following a similar report in Europe. The survey found that 92 per cent of Australian companies had ongoing plans to "exploit their knowledge bases." Of these, 76 per cent were aware of their internal knowledge resources. European financial institutes did not compare as well, only 41 per cent said they were setting up a knowledge management (KM) program and less than 30 per cent were assessing the need for KM, the survey reports.
Australian financial institutes utilise KM for improving customer service, according to Frada Burstein, an associate professor in the School of Information and Management Systems at the Monash University in Melbourne, who carried out the survey.
"The companies indicate that they mainly rely on internal knowledge sources when trying to sustain competitive advantage," he said.
The survey discovered that European financial businesses are creative thinkers, unlike Australians.
Europe is ahead in the actual implementation of a KM system. Zohdy Rateb, the financial services marketing manager for survey sponsor Fuji Xerox Australia said that Australia seems to be good at understanding the benefits of KM, but has done nothing with it. Despite good implementations, Europeans complained of information overload, but only 33 per cent of Australian's had the same complaint.
In contrast, 80 per cent of Australians surveyed complained of knowledge hoarding. Management culture was the biggest barrier to knowledge sharing in Australia, followed by a lack of knowledge criteria development. Only eight per cent of Australian financial institutes have developed a centralised repository for knowledge. Over 63 per cent of Europeans have central knowledge and document storage systems.
Countering these findings is a healthy interest in KM investment. The survey found that 7.8 per cent of total revenue will be awarded to KM, up from just three per cent for 2000 and 2001.
The survey discovered that European financial businesses are creative thinkers, unlike Australians. Europeans see knowledge management as an opportunity to identify new markets and they see a relationship between KM and innovations within the business. Australians on the other hand are far more conservative and see KM only as a way of improving customer service.
Monash University carried out the survey in association with Fuji Xerox Australia. Over 130 Australian financial institutes were polled, 20 per cent of whom responded. The University carried out 10 face to face interviews with high ranking "opinion leaders" at top Australian banks and insurance companies.
Related Articles: