THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: March 21, 2002 01:28 PM Thursday; Rod Welch

Contact Mark Clare about calculating cost savings Com Metrics.

1...Summary/Objective
2...Kanisa Marketing Internet Service to Assist/Replace Call Centers
..........Automated Expert Consultant
..........Personalized Interaction
..........Virtual Knowledge Network
..........Self-maintaining Content
..........Intelligent Escalation and Cross/Up-sell
..........Automated Service Optimization
3...ROI on Com Metrics Expands Kanisa's Markets Beyond Call Centers


..............
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CONTACTS 
0201 - Kanisa, Inc.                         408 863 5800
020101 - Mr. Mark Clare; Knowledge Architect =408 863 5866
020102 - mark.clare@kanisa.com

SUBJECTS
Measuring Communication Issues
Calculate Cost Benefit Level of Effort
Calculation Cost Savings Knowledge Value Equation, Powerpoint Present
Reality Forces Mistakes into Span of Attention
Front-end Invest Planning v. Immediate Action Management Dilemma
ROI Good Management Difficult Calculate Compare Cost Front-end Invest
ROI for Call Centers May Useful for Com Metrics to Expand Kanisa's Ma
Com Metrics ROI Methodology Can Expand Kanisa's Market Opportunities
Calculating Cost Savings ROI for KM John Submits Powerpoint Presentat

1811 -    ..
1812 - Summary/Objective
1813 -
181301 - Follow up ref SDS 18 0000, ref SDS 9 0000.
181302 -
181303 - Received information today that Mark Clare with Kanisa has done
181304 - important work on calculating ROI for KM.  Sent a letter to Mark with
181305 - links to POIMS and the USACE report on ROI using SDS for Com Metrics
181306 - and asked if Mark's ideas can be applied to communication.
181307 -
181308 -       [On 020322 sent another letter to Mark citing NWO. ref SDS 24
181309 -       KJ6G
181310 -
181311 -
181312 -
181313 -  ..
1814 -
1815 -
1816 - Progress
1817 -
181701 - Jim Maloney submitted a letter today with an attachment to a
181702 - Powerpoint presentation prepared by Mark Clare that shows ROI for KM
181703 - services marketed by Kanisa applied to call centers based on a theory
181704 - of discounted cash flow.
181705 -
181706 - This calculation works because call centers have stats that can be
181707 - used to construct a calculation.
181708 -
181709 -      [On 020606 Microsoft customer support representative comments
181710 -      favorably on SDS capability in relation to aiding solution of
181711 -      call center activity. ref SDS 25 L99K
181712 -
181713 -  ..
181714 - Kanisa has an interesting management team...
181715 -
181716 -
181717 -            http://www.kanisa.com/mteam.shtml
181718 -
181719 -
181720 -  ..
181721 - Mark's Powerpoint presentation includes a lot of files. To save this
181722 - stuff so we can figure out how to find it, put it in....
181723 -
181724 -
181725 -             f: 03 00050 01 04 07 mckm.ppt
181726 -
181727 -
181728 - ...for the Power Point presentation, and copy a version into HTML in
181729 - the file...
181730 -
181731 -
181732 -             f: 03 00050 01 04 07 mckm.htm
181733 -
181734 -
181735 - ...that created a subsidiary directory for support html files that
181736 - use a convention for assigning the directory string associated with
181737 - the base file.
181738 -
181739 -  ..
181740 - The HTML files have some XML stuff at the beginning rather than the
181741 - standard header.
181742 -
181743 -    So far links do not embed very well in the material.  Need to
181744 -    figure out how to modify the thing so anchors can be entered.
181745 -
181746 -  ..
181747 - The argument that Mark makes for savings in call centers is in the NWO
181748 - applied to communication and daily management. ref OF 2 0110
181749 -
181750 -     Explanation of rework is also shown, ref OF 2 6915, based on
181751 -     USACE's report on 971008, ref SDS 12 1273, that submits a cost
181752 -     saving analysis. ref DRP 1 4172
181753 -
181754 -     ...below, submit letter to Mark on this opportunity. ref SDS 0
181755 -     R59Y
181756 -
181757 -       [On 020322 sent another letter to Mark citing NWO. ref SDS 24
181758 -       KJ6G
181759 -
181760 -       [On 020610 John Maloney says a grave pathology in this space is
181761 -       the white-hot focus on "...things that save time and money..."
181762 -       Skilled practitioners understand that it is strictly not an
181763 -       efficiency play, never was, never will be. That's what led to
181764 -       most all of the gruesome train wrecks. It is much more oriented
181765 -       towards effectiveness, productivity growth (innovation), value,
181766 -       agility, relationship, conversation, collaboration and
181767 -       community. Metrics have value only insofar as they enable and
181768 -       shepherd change, that's all. ref SDS 27 3B6K
181769 -
181770 -  ..
181771 - Review of Kanisa's web site...
181772 -
181773 -
181774 -                   http://www.kanisa.com
181775 -
181776 - ...and their brochure in a PDF format shows concepts and explanations
181777 - that are similar to Com Metrics explained in POIMS and NWO.
181778 -
181779 -
181780 -
181781 -
181782 -
181783 -
181784 -
181785 -
1818 -

SUBJECTS
Internet Service Provider to Assist and Replace Call Centers Online T
Automated Expert Consultant for Customer Call Centers Online Technica
Technical Support Unproductive Telecphone Skill Based Routing
Kanisa Mark Clare Call Centers Technical Support Industry Effort to P
Call Centers Technical Support Industry Effort to Perform Knowledge M
Cost Benefits KM Technical Support Call Centers Industry Effort to Pe

2809 -
280901 -  ..
280902 - Kanisa Marketing Internet Service to Assist/Replace Call Centers
280903 -
280904 - It appears Kanisa is selling development of online customer support to
280905 - replace labor intensive personal help from call centers, for example
280906 - there is a quote from Jobs at Apple....
280907 -
280908 -               We want to provide our customers with an online service
280909 -               and support experience that is personalized and
280910 -               interactive. We think Kanisa has the best e-Service
280911 -               technology to help us do this"  Steve Jobs
280912 -
280913 -     [On 020322 Mark explains Kanisa is focusing on marketing call
280914 -     center support. ref SDS 24 2V6I
280915 -
280916 -     [On 021011 Greg Oxton with CSI asks about SDS records on the
280917 -     Internet; CSI seems to provide professional support for call
280918 -     centers and calls it KM. ref SDS 28 MU9I
280919 -
280920 -  ..
280921 - So, perhaps they design a web solution and provide the servers that
280922 - support it, since they describe a "serviceweb" product...
280923 -
280924 -
280925 -            http://www.kanisa.com/product/overview.shtml
280926 -
280927 -
280928 -     The Kanisa ServiceWeb product architecture consists of four web
280929 -     services that dynamically interact and communicate with each other
280930 -     so that your Automated Solution Center can continually provide
280931 -     customers with a personalized, effective and robust self-service
280932 -     experience that delivers bottom line results for your company.
280933 -
280934 -  ..
280935 - Kanisa describes....
280936 -
280937 -
280938 -                 Automated Solution Centers That Work
280939 -
280940 -
280941 -      http://www.kanisa.com/solutions/automated_solution_centers.shtml
280942 -
280943 -
280944 - ...that says in part....
280945 -
280946 -       ..
280947 -      Kanisa ServiceWeb is the only system that delivers 100% of the
280948 -      critical requirements for an effective Automated Solution Center:
280949 -
280950 -        •  Automated Expert Consultant
280951 -
280952 -           Like an expert sales or service professional, Kanisa rapidly
280953 -           guides users to relevant, precise information and services.
280954 -
280955 -
280956 -
280957 -
2810 -

SUBJECTS
Internet Service Provider to Assist and Replace Call Centers Online T
Personalized Interaction for Customer Call Centers Online Technical S

3005 -
300501 -   ..
300502 -
300503 -        •  Personalized Interaction
300504 -
300505 -           Kanisa draws from profiles, preferences and machine learning
300506 -           to target and dynamically tailor the service interaction to
300507 -           each individual user
300508 -
300509 -              This sounds like a very powerful capability given the
300510 -              range of personalities, interests and backgrounds of
300511 -              people.
300512 -
300513 -
300514 -
300515 -
300516 -
3006 -

SUBJECTS
Internet Service Provider to Assist and Replace Call Centers Online T
Virtual Knowledge Network for Customer Call Centers Online Technical
Dynamic Knowledge Repository History, Experience, Lessons Learned, Ca
DKR Needs Engine of Knowledge Intelligence, Core Capability
Paperless Virtual Office Webmail Anytime Anywhere Intelligence on Int
Kanisa Automated Expert Organizes Classifies Content for Call Centers
Intelligence Organize Analyse Align Summary Link to Detail Feedback A
Content on Internet Webmail SDS Innovation Anytime Anywhere Intellige
Killer App Remember More than 5% Gist New Way of Thinking Through Wri
Kanisa ServiceWeb Automated Expert Virtual Knowledge Network Organize
Paperless Virtual Office Webmail Content Strengthened on Internet SDS
Killer App Improves Alphabet Technology to Augment Intelligence Lifts

4615 -
461501 -  ..
461502 -
461503 -        •  Virtual Knowledge Network
461504 -
461505 -           Kanisa creates a knowledge network, by organizing and
461506 -           classifying content regardless of location or format.
461507 -
461508 -              Automated expert consultant, discussed above, ref SDS 0
461509 -              R57N, self-maintaining content explained in the segement
461510 -              below, ref SDS 0 179J, and a Virtual Knowledge Network
461511 -              all sound like DKR "engine" that Doug Engelbart plans to
461512 -              develop, reported on 000120. ref SDS 16 3002
461513 -
461514 -              On 000513 automated expert and virutal knowledge network
461515 -              with self-maintaining content could "augment human
461516 -              intelligence," ref SDS 19 5835, so Kanisa's seems to have
461517 -              made significant strides in Knowledge Management that
461518 -              should be a "Killer App."
461519 -              ..
461520 -              On 000623 Jack Park planned to develop an "engine"
461521 -              to create a knowledge nework by organizing and
461522 -              classifying content. ref SDS 20 2915
461523 -
461524 -              Earlier on 000221 Jack reported research on organizing
461525 -              and classifying content, generally called developing an
461526 -              "ontology," is hard to accomplish. ref SDS 17 7455
461527 -
461528 -
461529 -
461530 -
4616 -

SUBJECTS
Internet Service Provider to Assist and Replace Call Centers Online T
Sel -maintaining Content for Customer Call Centers Online Technical S

4805 -
480501 -   ..
480502 -        •  Self-maintaining Content
480503 -
480504 -           Kanisa continuously and automatically updates itself from
480505 -           every content source, eliminating many of the costs
480506 -           associated with content management.
480507 -
480508 -
480509 -
480510 -
480511 -
480512 -
480513 -
4806 -

SUBJECTS
Internet Service Provider to Assist and Replace Call Centers Online T
Intelligent Escalation and Cross/Up-sell for Customer Call Centers On

5005 -
500501 -  ..
500502 -
500503 -        •  Intelligent Escalation and Cross/Up-sell
500504 -
500505 -           Automatically escalate issues along with its complete
500506 -           context to the appropriate resources; including user
500507 -           communities, online training systems, electronic
500508 -           storefronts, or directly into existing CRM systems.
500509 -
500510 -
500511 -
500512 -
5006 -

SUBJECTS
Internet Service Provider to Assist and Replace Call Centers Online T
Automated Service Optimization for Customer Call Centers Online Techn

5205 -
520501 -  ..
520502 -
520503 -        •  Automated Service Optimization
520504 -
520505 -           Advanced Analytics enable Kanisa ServiceWeb to constantly
520506 -           refine and optimize service delivery.
520507 -
520508 -
520509 -
520510 -
5206 -

SUBJECTS
ROI for Call Centers May Useful for Com Metrics to Expand Kanisa's Ma
Kanisa Selling KM for Call Centers May be Able to Support Com Metrics
USACE Report Showing ROI Using SDS for Com Metrics is 10:1 by Reducin
Management Productive Complimentary Action Collaboration Cooperation
Quality Management Competitive Advantage Debug Management Concurrent
Enron Case Study Showing Communication Not Aligned Poses Biggest Risk

8409 -
840901 -  ..
840902 - ROI on Com Metrics Expands Kanisa's Markets Beyond Call Centers
840903 -
840904 - Per above, Kanisa may be interested in expanding the scope of savings
840905 - and ROI that can be achieved by customers using KM. ref SDS 0 IX6I
840906 -
840907 -  ..
840908 - On 990201 considered savings from document handling. ref SDS 15 7399
840909 -
840910 -  ..
840911 - Submitted ref DIT 1 0001 asking if Mark has done calculations of ROI
840912 - or can point to other efforts that extend his excellent Powerpoint
840913 - presentation beyond the application to Call Centers to aid general
840914 - management and communication, supported by SDS?  This kind of thing
840915 - would be great interest to investors, sureties and others with value
840916 - at risk who need help understanding investment in good management.
840917 -
840918 -     [On 020322 Mark explains his calculation can be generalized, and
840919 -     focus is on call centers, because Kanisa is focusing on this
840920 -     market segment. ref SDS 24 0001
840921 -
840922 -     [On 020326 called Mark to follow up.
840923 -
840924 -     [On 020607 Mark proposes meeting to discuss this idea during a
840925 -     July conference sponsored by KMCI in San Francisco. ref SDS 26
840926 -     0001
840927 -
840928 -     [On 020610 John Maloney says a grave pathology in this space is
840929 -     the white-hot focus on "...things that save time and money..."
840930 -     Skilled practitioners understand that it is strictly not an
840931 -     efficiency play, never was, never will be. That's what led to most
840932 -     all of the gruesome train wrecks. It is much more oriented towards
840933 -     effectiveness, productivity growth (innovation), value, agility,
840934 -     relationship, conversation, collaboration and community. Metrics
840935 -     have value only insofar as they enable and shepherd change, that's
840936 -     all. ref SDS 27 3B6K
840937 - ..
840938 - The letter to Mark says....
840939 -        ..
840940 -    1.  John Maloney forwarded your Power Point presentation on
840941 -        calculating cost benefits of KM, ref DIT 1 0001, based on call
840942 -        center scenarios, per above. ref SDS 0 9Y5J
840943 -        ..
840944 -    2.  My work centers on a basic theory that communication is
840945 -        the biggest risk in management, ref DIT 1 M96I, due to meaning
840946 -        drift as related in POIMS. ref OF 1 V8P1
840947 -
840948 -        On 000716 Professor Ransdell reported SDS theory of
840949 -        communication has eluded discovery since the 17th century.
840950 -        ref SDS 21 7838
840951 -
840952 -           [On 020321 Mark has focused ROI calculations on KM based on
840953 -           the cost of mistakes. ref SDS 24 H36I
840954 -
840955 -    3.  Big risk to enterprise and government is not in the call
840956 -        center, but in the board room, the engineering room and the
840957 -        operating room. ref DIT 1 246O  The CEO, program and project
840958 -        managers, who encounter a lot of details get mixed up everyday,
840959 -        as seen from the record on Enron reported on 020204.
840960 -        ref SDS 23 EX5O
840961 -
840962 -           [On 020321 Mark has focused his ROI calculations on KM for
840963 -           CEO and strategic issues. ref SDS 24 4T3H
840964 -        ..
840965 -    4.  USACE published a calculation on cost savings from
840966 -        improving communication based on reducing mistakes that cause
840967 -        rework. ref DIT 1 009N  The challenge is that costs to improve
840968 -        management accrue regularly and immediately, while costs of bad
840969 -        management are deferred and come in huge losses, as occurred to
840970 -        Enron and on 010911. ref SDS 22 0001
840971 -
840972 -           [On 020322 Mark explains scope of his work that seems
840973 -           relevant to USACE report, ref SDS 24 4T3H; he does not
840974 -           comment on the USACE report. ref SDS 24 IV3I
840975 -        ..
840976 -    5.  The problem is evident in medical practice, engineering,
840977 -        everywhere that is heavily dependent on communication, however,
840978 -        it is hard for folks to grasp cost benefits. ref DIT 1 005N
840979 -        Mark's analysis might strengthen the presentation published by
840980 -        USACE, ref DRP 1 0001, and specifically on reducing rework.
840981 -        ref DRP 1 4680
840982 -        ..
840983 -    6.  Just wondered if you have done any calculations along
840984 -        these lines, or can point to other efforts that extend your
840985 -        excellent presentation more broadly. ref DIT 1 JB9L  This kind
840986 -        of thing would be of great interest to investors, sureties and
840987 -        others with value at risk who need help understanding
840988 -        investment in good management.
840989 -
840990 -           [On 020322 Mark has focused his ROI calculations on KM for
840991 -           CEO and strategic issues. ref SDS 24 4T3H
840992 -
840993 -           [On 020322 Mark does not comment on the USACE report,
840994 -           ref SDS 24 IV3I; follow up letter asks about this again.
840995 -
840996 -           [On 020607 Mark proposes meeting to discuss this idea during
840997 -           a July conference sponsored by KMCI in San Francisco.
840998 -           ref SDS 26 0001
840999 -
841000 -     [On 020610 John Maloney says a grave pathology in this space is
841001 -     the white-hot focus on "...things that save time and money..."
841002 -     Skilled practitioners understand that it is strictly not an
841003 -     efficiency play, never was, never will be. That's what led to most
841004 -     all of the gruesome train wrecks. It is much more oriented towards
841005 -     effectiveness, productivity growth (innovation), value, agility,
841006 -     relationship, conversation, collaboration and community. Metrics
841007 -     have value only insofar as they enable and shepherd change, that's
841008 -     all. ref SDS 27 3B6K
841009 -
841010 -
841011 -
841012 -
841013 -
841014 -
841015 -
841016 -
841017 -
Distribution. . . . See "CONTACTS"