Supernova Project: Knowledge Management for Better Resource, Creation of Effective Support Systems - Business Plan Example

Supernova Project Introduction The Supernova project aims at creating a basis for expansion across the UK with an eye on attracting new investment funds. The proposed cost of the project is £220,000. This paper seeks to recommend the process and implementation of a plan for the Supernova project. This plan revolves around the following two premises: Risk Assessment for information assurance Training and Development Activities for better orientation Knowledge management Marketing Risk Assessment Model Risk, in case of varied operational decisions, is seen as a focus of single determinants of behaviour arising from risk theories. (Stephenson, 2004)1 Various unresolved contradictions can be reconciled by examining the usefulness of placing risk propensity and risk proportion in a more central role than has been previously recognised through effective risk assessment programs. Based on such analysis, it is believed that the propensity of risk dominates both the actual and perceived characteristics of the situation as a determinant of risk behaviour. (Stephenson, 2004) Such an observation can safely justify the finding that suggests that apart from being central to any and every business or organisation, risk is something that entrepreneurs in general, are averse to. This can be attributed to the fact that at the end of the day, any loss of information has far reaching implications of its own and is deeply rooted in the genesis of risk taking and management. Coming back to the issue of the risk averse nature of businesses in context of the Supernova Project, the one question we need to ask before proceeding any further is whether mere risk assessment is enough to act as a strong foundation for resolving all those difficulties arising out of risk management in case of expansion activities. For the answer, let us consider the diagram below: If the above diagram is considered, the answer is, no. And more and more organisations in the expansion arena are beginning to recognise this basic premise, which has led to creativity in the sphere of risk management strategies. It has become necessary therefore, to keep reinventing the methods and strategies to be used in order to overcome the perils enumerated above, in a timely and cost effective manner. (Brussin, 2006)2 Another creative aspect attributed to the entire gamut of activities concerning risk management in this sphere adheres to the notion of utmost good faith that has been lately used to expand the protection for the insurer from pre-contractual fraud to include post-contractual fraud as well. This works in the benefit of the insured, who is saved from the abyss of financial loss, as well as the insurer, who is saved from parting with the sum assured upon occurrence of such a loss, therefore subjugating both parties to complete protection in an aspect that was earlier a matter of great confusion as well as debate. The mechanism of creative risk management extends to preliminary planning as well. To be prepared and organised for the contingencies in advance will help the managers cope with them more easily. This can be further propagated by the use of timeliness and efficiency in the response stage with a reliable communication system, logistics and flawless coordination to boot. (Stephenson, 2004) For this purpose, in the Supernova Project damage assessment and reporting should constitute of the preliminaries of restoration and restructuring apart from playing an important role in the formulation of a crisis management plan. Since crises threaten the strategic objectives of the Supernova Project, crisis management has been structured so as to work under the foresight of strategic management. This is one of the major trends that are seen to be emerging in the field of prioritising control of crisis to facilitate eventual risk management. Further, staff training and scenario testing have been made to sound more specific with special emphasis on real life situations and an assessment of the responses that are gathered thereon. This results in proper task description and designation of responsible staff. Also, outsourcing has become a major trend in providing of equipment and facilities so as to lighten the load on the risk bearer’s mind. During strategic planning of risk management, a major point to be made and clarified is the estimated value of percentages for the probability of the risks that should be included in the picture. To give a fairer idea, the records of insurance companies are now taken as a database for the purpose of analysis. (Stephenson, 2004) In this regard, let us take a brief look at a minor case study from a developing country in order to more effectively depict the level of creativity that is being employed in the sphere of insurance and risk management. This will not only enhance the client base of the Supernova Project, but also reduce the burden of the cost project payable by the company due to increase in investment fund, which becomes more like a retail product. A move of such nature definitely qualifies as creativity. Therefore, it can be said that a risk averse entrepreneur has a variety of innovative options before him today, for the purpose of risk management and insurance in terms of financial loss. In keeping with this viewpoint, the theories studied above have been based on the models that have a great deal of influence on the risk management strategies in the Supernova Project. Creation of Effective Support Systems Through Development Activities In the Supernova Project, there will be a vast change in terms of physical infrastructure expansion as well as expansion of activities in its operational sphere. In this regard, training and developmental activities are of paramount important to further entrepreneurial orientation and process evaluation. Training and development processes for the Supernova Project, may either be diagnostic or based on future role-play. In this case, the kinds of training followed by the organization may be categorized into on the job and off the job training methods. These will depend on the nature of information being shared and the level at which the operations in terms of virtual safety and secure identity solutions, take place for better risk assessment. (Brussin, 2006) While on the job methods rely on training within the organization at the expense of the same, off the job methods refer to external sources where an employee may obtain training. Therefore, there are larger benefits of training through the theoretical and empirical frameworks within which training strategies are decided upon, so as to carry out an assessment of the very roots where training and development begins and to propose a contextual point of judging responses and development areas in terms of risk assessment within the Supernova Project. Training and Development Patterns It is impetrative to assess the beneficial nature of training strategies in context of the theory applied for determining the need for such training within the Supernova Project. Therefore, the process of assessing the needs before planning the training strategy involves the following steps: (Marquardt, 1996)3 ( i ) Identification of needs – an analysis of needs addresses the problems at hand besides anticipating future demands in terms of risk assessment in the information assurance system. The benefit of this step lies in the fact that it considers the best and most cost effective way to meet those training needs right at the onset, which make the training strategy planning and implementation process more fluid. ( ii ) Definition of specific knowledge requirements - this stage to examines the skills and knowledge level that is required to be developed within the information assurance system in order to meet the new objectives identified by the training needs. This helps the management gain perspective as to which kind of training strategy will be the most effective one when adopted for the situation at hand. ( iii ) Planning process – This includes paying special attention to the training techniques that have been used in the past and their effectiveness. This helps show any deviations and how they may be modified or discarded entirely. Further, in the planning stage, one also decides on the locations of training, which is generally based on the model being followed to meet training needs and objectives as well as other learning requirements. ( iv ) Trainer Competence – For competence in communication and soft skills, it is crucial to have the right mix of all factors. One of these factors includes the trainer. While the organization itself may have a training department, it may also source its training projects to external trainers. These trainers are sent by training companies who conduct sessions over a period of a few weeks depending on the situation at hand and the employee requirements. Therefore, in choosing a competent trainer, the organization makes sure that it gets the best of development as these trainers know the knack of basing their training on the availability of suitable training methodologies and the degree of responsibility within the information assurance system. ( v ) Evaluation of training – this is where the planners evaluate the training needs and prioritize them before carrying out a similar process of evaluation for the training strategy they have in mind so as to link the strategy with the needs and reach certain projections regarding success or failure. This helps bridge numerous gaps in the implantation stage and is thus extremely important and beneficial for a smooth sailing process. Through this process, there is also an increased focus on the specific training objectives so as to zero in on the best strategy, which will produce the scope for improvement and enhance the effectiveness of training. ( vi ) Implementation process – In this regard, the assessment of the existing training methods are taken into consideration so as find the best option for making use of the training strategy in terms of development of individual areas. This helps save time and cut cost besides rendering a certain amount of effectiveness and authenticity to the whole process. Knowledge Management for Better Resource Utilization Before delving any deeper into the elements of this brand of knowledge management, it is important to study and analyze the exact implication for this management tool as regards an information assurance system within the Supernova Project. (Source: Wilson, 2002)4 The above diagram depicts the growth of titles using knowledge management which may be applied in a multi layer fashion to the information assurance system within the Supernova Project as discussed above. In this regard, information management may be defined as something that involves deploying new technology solutions, e.g: content or document management systems, data warehousing and portal applications. It covers all the systems and processes in an organization for the creation and use of corporate information. Managing information in a secure manner has become one the most difficult tasks within the healthcare industry. The sheer variety of information sources has changed information from mediocrity of data to a natural efficacy and requirement. Information management involves people, processes, technology and content. (Wilson, 2002) Knowledge management encompasses strategy, method, practice and approach in an organizational context. Data represents facts or values of results and has the capacity to represent information. Patterns of relations of data, and information have the capacity to represent knowledge. This shows a strong connection with the premise that the Supernova Project operates on in terms of the use of various tools of information technology to integrate the knowledge within the organization. This also promotes a stronger and wider base for communication. In this regard, the Supernova Project also shows that communication management is a vital phenomenon in organization and is extremely important in an organization. In general, efficient communication in an organization contributes directly or indirectly to improved organizational performance. This shows a focus on knowledge management which has been integrated into its system through a deep analysis of the information that can be used accordingly. (Wilson, 2002) The organization transforms diversity of information and complexity of technology into a detailed collection, which represents the need for intelligent and innovative drive towards integration of information and technology. Thus, with use of words like intelligence and innovation, it is understood that there is a lot of scope for the use of tools like intellectual capital which this IT system supports. Intellectual capital thus finds the scope for growth and development through a focus on the use of intelligence and innovation in this system. (Wilson, 2002) In this regard, the importance of knowledge management comes to the fore in terms of its applicability in any information management system which integrates the use of knowledge. (Wilson, 2002) Marketing Entry Point Strategy In terms of the suitable model to be used for the development of a relevant marketing plan and strategy, we have made use of the International Market Entry Mode Strategy for this company. This strategy is ideal for those companies that wish to diversify geographically. (Walter et al, 1988) This strategy along with others that have to do with market segmentation and brand positioning for maximum customer satisfaction will be used in order to evolve a strategy that is best suited for the purpose of an entry level product in a market as diverse as that of UK. The first element when entering a new market is the risk factor. For the Supernova Project there has been a strategic management of risk through a change of location. This needs to be followed up by the launch of personalised and online services. There is a need to now focus on changing passive international sales into hardcore business. It is important to capitalise on the opportunities by undertaking risks so as to achieve organisational growth. Therefore, once the entry level mode is applied to this situation, there will be a concerted effort towards arriving at decisions that have to do with control, risk and commitment as demonstrated in the diagram below: To deal with the risk factor at an entry level, this diagram shows that the commitment level needs to be high so as to start by catering to consumer satisfaction. With effective segmentation, it will be easy to find out the areas of investment so as to find an appropriate positioning on the scale where exports start. (Walter et al, 1988) Therefore, a good entry level strategy would involve introducing the fact that the Supernova Project is capable of presenting an international face as far as its products go and can be modified to cater to any kind of culture or country. In this regard, there will be long term growth through the management of the immediate and other short term risks. In this case, the main risk comes from losing its exclusivity which can be tackled through the direct investment strategy. As an entry point mode, a company dealing with high end products needs to make a more individualistic statement. This calls for a mix of passive as well as consumer centric activities at the location as well as around it. For this, it is important to touch the pulse of the target consumers by being accessible to them distance wise. Therefore, it will be found that for an entry level product in an international market, exploring the retail market is the best option. The direct investment strategy is the best one for the entry mode strategy. Short Term Capital Requirement: Marketing Cost of Marketing (Year One to year Two): $50,000 Cost of Marketing (Year Two to Year Five): $50,000 Cost of Marketing (Year Five to Year Eight): $30,000 Cost of Marketing (Year Eight to Year Ten): $35,000 The costs laid down above depend on factors like scale of operations. In the first two to five years, the scale of operations will be low, which will lead to less intensive marketing. Also, in a bid to retain exclusivity, there will be a focus on only certain areas for the promotional activities. The marketing activities will intensify during the fifth and tenth years, where there will be an all time high during the last two years so as to maintain and achieve a certain quality of marketing activities. The total budget for marketing is $1,150,000 Capital Requirement: Entrepreneurial Control Year One to Three: Reorganisation of Departments: $55,000 Weekly Performance Studies: $40,000 Year Three to Seven: Control of Economy of departmental operations – This will be done through recruitment of new staff: $20,000 Reorganisation on basis of new staff: $25,000 Creation of Knowledge Management System: $10,000 New Planning Department for better goal actualisation process: $100,000 Year Eight to Ten: Planning through research and performance reports: $45,000 Expansion in terms of more outlets: $150,000 The entrepreneurial control system reflects a movement towards better HR practices in order to gain more knowledge and carry out better planning. Projections for returns on Investment: Years One to Five: With an inclination towards marketing research and basic reorganisation of the HR base, with regular performance appraisal programs, the returns for the first five years are slated to be $ 5,000,000. Years Six to Ten: With a focus on expansion and growth policies, as well as reaching economy of operations, there will be a return of $15,000,000 during the last five years of the implementation of the strategic plan. Togetherness V/s Individuality In the modern day organization, the group effort is everything. In the case of the Supernova Project that we have taken there is a focus on teams and teamwork through departmentalization of activities. The decentralization of accountability, authority and responsibility help in making better use of the human capital. It gives the workers the scope to bond with each other and know more about each other’s strengths and weaknesses. 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