Download (IT) in Knowledge Management

Decision Support Systems
Knowledge Management
Learning Objectives
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



Define knowledge and describe the different types of knowledge
Describe the characteristics of knowledge management
Describe organizational learning and its relationship to knowledge
management
Describe the knowledge management cycle
Describe the technologies that can be used in a knowledge
management system
1-2
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Learning Objectives
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Describe different approaches to knowledge management
Describe the chief knowledge officer and others involved in knowledge
management
Describe the role of knowledge management in organizational
activities
Describe the different ways of evaluating intellectual capital in an
organization
Describe how KMS are implemented
1-3
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Opening Vignette:
“MITRE Knows What It Knows Through Knowledge
Management”
 Company background
 Problem description
 Proposed solution
 Results
 Answer and discuss the case questions
1-4
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Opening Vignette:
MITRE’s View to the KM Process
ENABLING TECHNOLOGIES FOR
KNOWLEDGE MANAGEMENT
Collaboration
Internet
Communication
KM LIFE-CYCLE
Create
Share
Data
Mining
Extranet
Expert
Systems
Intranet
Search
Engine
Identify
Modify
Artificial
Intelligence
feedback
Machine
Learning
Act
Databases
Apply
Measurements
Knowledge
representation
Web 2.0
Portals
CULTURE
PROCESS
PRACTICE
Web
technologies
INFLUENCING FACTORS
1-5
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Introduction to
Knowledge Management

Knowledge management concepts and definitions

Knowledge management
The active management of the expertise in an organization. It
involves collecting, categorizing, and disseminating knowledge

Intellectual capital
The invaluable knowledge of an organization’s employees
1-6
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Introduction to
Knowledge Management

Knowledge is
information that is contextual, relevant, and actionable
 understanding, awareness, or familiarity acquired
through education or experience
 anything that has been learned, perceived, discovered,
inferred, or understood.

In a knowledge management system, “knowledge is
information in action”
1-7
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Introduction to
Knowledge Management
Data
Processed
Information
Relevant and
Actionable
Knowledge
DEPLOYMENT CHART
Database
PHASE 1
PHASE 2
PHASE 3
PHASE 4
PHASE 5
DEPT 1
DEPT 2
DEPT 4
1
2
3
4
5
Wisdom
DEPT 3
Relevant and actionable processed-data
1-8
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Introduction to
Knowledge Management
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Characteristics of knowledge
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Extraordinary leverage and increasing returns
Fragmentation, leakage and the need to refresh
Uncertain value
Uncertain value of sharing
Knowledge-based economy
The economic shift from natural resources to intellectual
assets
1-9
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Introduction to
Knowledge Management

Explicit and tacit knowledge
Explicit (leaky) knowledge
Knowledge that deals with objective, rational, and
technical material (data, policies, procedures,
software, documents, etc.)
 Easily documented, transferred, taught and learned

1-10
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Introduction to
Knowledge Management

Explicit and tacit knowledge
Tacit (embedded) knowledge
Knowledge that is usually in the domain of
subjective, cognitive, and experiential learning
 It is highly personal and hard to formalize
 Hard to document, transfer, teach and learn
 Involves a lot of human interpretation

1-11
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Introduction to
Knowledge Management

Knowledge management systems (KMS)
A system that facilitates knowledge
management by ensuring knowledge flow from
the person(s) who know to the person(s) who
need to know throughout the organization;
knowledge evolves and grows during the
process
1-12
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Organizational
Learning and Transformation
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
Learning organization
An organization capable of learning from its past
experience, implying the existence of an
organizational memory and a means to save,
represent, and share it through its personnel
Organizational memory
Repository of what the organization “knows”
1-13
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Organizational
Learning and Transformation

Organizational learning
Development of new knowledge and insights that
have the potential to influence organization’s
behavior
 The process of capturing knowledge and making it
available enterprise-wide
 Need to establish corporate memory
 Modern IT helps…
 People issues are the most important!

1-14
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Organizational
Learning and Transformation

Organizational culture
The aggregate attitudes in an organization
concerning a certain issue (e.g., technology,
computers, DSS)
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
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How do people learn the “culture”?
Is it explicit or implicit?
Can culture be changed? How?
1-15
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Organizational
Learning and Transformation

Why people don’t like to share knowledge:

Lack of time to share knowledge and time to identify colleagues in
need of specific knowledge

Fear that sharing may jeopardize one’s job security

Low awareness and realization of the value and benefit of the
knowledge others possess

Dominance in sharing explicit over tacit knowledge

Use of a strong hierarchy, position-based status, and formal power
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Insufficient capture, evaluation, feedback, communication, and
tolerance of past mistakes
1-16
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Organizational
Learning and Transformation

Why people don’t like to share knowledge:
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Differences in experience and education levels

Lack of contact time and interaction between knowledge sources and
recipients
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Poor verbal/written communication and interpersonal skills
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Age, gender, cultural and ethical defenses
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Lack of a social network
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Ownership of intellectual property
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Lack of trust in people because they may misuse knowledge or take
unjust credit for it
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Perceived lack of accuracy/credibility of knowledge
1-17
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Knowledge Management Activities
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Knowledge management initiatives and activities
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Most knowledge management initiatives have one
of three aims:
1.
2.
3.
To make knowledge visible
To develop a knowledge-intensive culture
To build a knowledge infrastructure
1-18
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Knowledge Management Activities
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Knowledge creation is the generation of new
insights, ideas, or routines
Four modes of knowledge creation:
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Socialization
Externalization
Internalization
Combination

Analytics-based knowledge creation?
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1-19
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Knowledge Management Activities
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Knowledge sharing
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Knowledge sharing is the willful explication of one
person’s ideas, insights, experiences to another
individual either via an intermediary or directly
In many organizations, information and knowledge
are not considered organizational resources to be
shared but individual competitive weapons to be
kept private
1-20
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Knowledge Management Activities
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Knowledge seeking
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Knowledge seeking (knowledge sourcing) is the
search for and use of internal organizational
knowledge
Lack of time or lack of reward may hinder the
sharing of knowledge or knowledge seeking
1-21
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Approaches to
Knowledge Management

Process approach to knowledge management attempts to codify
organizational knowledge through formalized controls,
processes and technologies
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Focuses on explicit knowledge and IT
Practice approach focuses on building the social environments
or communities of practice necessary to facilitate the sharing of
tacit understanding
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Focuses on tacit knowledge and socialization
1-22
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Approaches to
Knowledge Management

Hybrid approaches to knowledge management
The practice approach is used so that a repository
stores only explicit knowledge that is relatively easy
to document
 Tacit knowledge initially stored in the repository is
contact information about experts and their areas of
expertise
 Increasing the amount of tacit knowledge over time
eventually leads to the attainment of a true process
approach

Hybrid
at
80/20
to
50/50
1-23
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Knowledge Management A Demand Led Business Activity
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Supply-driven vs. demand-driven KM
Supp
ly-dr
iven
:
Data
summarize
DIKA
R
n
Tech
ol
h
roac
p
p
a
ogy
Results
obtain
Information
Action
contextulize
Bu s i
n e ss
-valu
e
utilize
Knowledge
appr
o a ch
Dem
a
: RA
n
e
v
i
r
nd-d
KID
1-24
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Approaches to
Knowledge Management
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Best practices
In an organization, the best methods for solving problems.
These are often stored in the knowledge repository of a
knowledge management system
Knowledge repository is the actual storage location
of knowledge in a knowledge management system. Similar in
nature to a database, but generally text-oriented
1-25
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Approaches to
Knowledge Management
KNOWLEDGE PORTAL
(Web-based End User Interface)
Human Experts
Intelligent Broker
KNOWLEDGE REPOSITORY
(Knowledge / Information / Data Nuggets)
KNOWLEDGE CREATION
A Comprehensive
View to Knowledge
Repository
KNOWLEDGE UTILIZATION
KNOWLEDGE MANAGEMENT PLATFORM (KMP)
Web Crawler
Data/Text Mining Tools
Ad hoc
Search
JUN
1
5
Manual
Entries
DIVERSE INFORMATION / DATA SOURCES
(Weather / Medical Info / Finance / Agriculture / Industrial)
1-26
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Approaches to
Knowledge Management

Developing a knowledge repository
Knowledge repositories are developed using several
different storage mechanisms in combination
 The most important aspects and difficult issues are
making the contribution of knowledge relatively easy
for the contributor and determining a good method for
cataloging the knowledge

1-27
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management

The KMS cycle

KMS usually follow a six-step cycle:
1.
2.
3.
4.
5.
6.
Create knowledge
Capture knowledge
Refine knowledge
Store knowledge
Manage knowledge
Disseminate knowledge
1-28
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management
Capture
Knowledge
The Cyclic Model of
Knowledge Management
Create
Knowledge
2
1
Refine
Knowledge
6
Disseminate
Knowledge
Store
Knowledge
Manage
Knowledge
3
4
5
1-29
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management
Components of KMS
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
KMS are developed using three sets of core technologies:
1.
2.
3.

Communication
Collaboration
Storage and retrieval
Technologies that support KM
Artificial intelligence
 Intelligent agents
 Knowledge discovery in databases
 Extensible Markup Language (XML)

1-30
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management
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Artificial intelligence
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AI methods used in KMS:
Assist in and enhance searching knowledge
 Help for knowledge representation (e.g., ES)
 Help establish knowledge profiles of individuals and groups
 Help determine the relative importance of knowledge when it is
contributed to and accessed from the knowledge repository

1-31
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management
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AI methods used in KMS:
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Scan e-mail, documents, and databases to perform knowledge
discovery, determine meaningful relationships and rules
Identify patterns in data (usually through neural networks and
other data mining techniques)
Forecast future results by using data/knowledge
Provide advice directly from knowledge by using neural networks
or expert systems
Provide a natural language or voice command–driven user
interface for a KMS
1-32
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management

Intelligent agents
Intelligent agents are software systems that learn how
users work and provide assistance in their daily tasks
 They are used to elicit and identify knowledge
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
See ibm.com, gentia.com for examples
Combined with enterprise knowledge portal to proactively
disseminate knowledge
1-33
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management

Knowledge discovery in databases (KDD)
A machine learning process that performs rule
induction, or a related procedure to establish (or
create) knowledge from large databases

a.k.a. Data Mining (and/or Text Mining)
1-34
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management
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
Model marts
Small, generally departmental repositories of knowledge
created by employing knowledge-discovery techniques on
past decision instances. Similar to data marts
Model warehouses
Large, generally enterprise-wide repositories of knowledge
created by employing knowledge-discovery techniques.
Similar to data warehouses
1-35
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Information Technology (IT) in Knowledge
Management

Extensible Markup Language (XML)

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XML enables standardized representations of data
structures so that data can be processed appropriately by
heterogeneous information systems without case-by-case
programming or human intervention
Web 2.0

The evolution of the Web from statically disseminating
information to collaboratively creating and sharing
information
1-36
Modified from Decision Support Systems and Business Intelligence Systems 9E.
KM System Implementation
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Knowledge management products and vendors
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Knowware
Technology tools (software/hardware products) that support
knowledge management
Software development companies / vendors

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Collaborative computing tools
Knowledge servers
Enterprise knowledge portals (EKP)
An electronic doorway into a knowledge management system…
1-37
Modified from Decision Support Systems and Business Intelligence Systems 9E.
KM System Implementation

Software development companies / vendors


Electronic document management (EDM)
A method for processing documents electronically, including
capture, storage, retrieval, manipulation, and presentation
Content management systems (CMS)
An electronic document management system that produces
dynamic versions of documents, and automatically maintains the
current set for use at the enterprise level
1-38
Modified from Decision Support Systems and Business Intelligence Systems 9E.
KM System Implementation

Software development tools
Knowledge harvesting tools
 Search engines
 Knowledge management suites
 Knowledge management consulting firms
 Knowledge management ASPs

1-39
Modified from Decision Support Systems and Business Intelligence Systems 9E.
KMS Implementation

Integration of KMS with other business information
systems
With DSS/BI Systems
 With AI
 With databases and information systems
 With CRM systems
 With SCM systems
 With corporate intranets and extranets

1-40
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Roles of People in
Knowledge Management

Chief knowledge officer (CKO)
The person in charge of a knowledge management effort
in an organization

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
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
1-41

Sets KM strategic priorities
Establishes a repository of best practices
Gains a commitment from senior executives
Teaches information seekers how to better elicit it
Creates a process for managing intellectual assets
Obtain customer satisfaction information
Globalizes knowledge management
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Roles of People in
Knowledge Management

Skills required of a CKO include:

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Interpersonal communication skills
Leadership skills
Business acumen
Strategic thinking
Collaboration skills
The ability to institute effective educational programs
An understanding of IT and its role in advancing knowledge
management
1-42
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Roles of People in
Knowledge Management

The CEO, other chief officers, and managers


The CEO is responsible for championing a knowledge
management effort
The officers make available the resources needed to get the
job done




1-43
CFO ensures that the financial resources are available
COO ensures that people begin to embed knowledge management
practices into their daily work processes
CIO ensures IT resources are available
Managers also support the KM efforts by providing access to
sources of knowledge
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Roles of People in
Knowledge Management

Community of practice (CoP)
A group of people in an organization with a
common professional interest, often self-organized
for managing knowledge in a knowledge
management system
1-44
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Roles of People in
Knowledge Management

KMS developers
The team members who actually develop the system
 Internal + External


KMS staff

Enterprise-wide KMS require a full-time staff to
catalog and manage the knowledge
1-45
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Success stories of knowledge management

Implementing a good KM strategy can:

Reduce…
loss of intellectual capital
 costs by decreasing the number of times the company
must repeatedly solve the same problem
 redundancy of knowledge-based activities


Increase…
productivity
 employee satisfaction

1-46
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

MAKE: Most Admired Knowledge Enterprises
“Annually identifying the best practitioners of KM”
 Criteria (performance dimensions):
Creating a knowledge-driven corporate culture
2. Developing knowledge workers through leadership
3. Fostering innovation
4. Maximizing enterprise intellectual capital
5. Creating an environment for collaborative knowledge sharing
6. Facilitating organizational learning
7. Delivering value based on stakeholder knowledge
8. Transforming enterprise knowledge into stakeholders’ value
1.
1-47
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

MAKE: Most Admired Knowledge Enterprises
“Annually identifying the best practitioners of KM”
 2008 Winners:
1.
2.
3.
4.
5.
6.
7.
8.
9.
McKinsey & Company
Google
Royal Dutch Shell
Toyota
Wikipedia
Honda
Apple
Fluor
Microsoft
10.
11.
12.
13.
14.
15.
16.
17.
PricewaterhouseCoopers
Ernst & Young
IBM
Schlumberger
Samsung Group
BP
Unilever
Accenture
1-48
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Useful applications of KMS

Finding experts electronically and using expert
location systems

Expert location systems (know-who)
Interactive computerized systems that help employees
find and connect with colleagues who have expertise
required for specific problems—whether they are across
the county or across the room—in order to solve specific,
critical business problems in seconds
1-49
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Knowledge management valuation

Financial metrics for knowledge management
valuation
Focus knowledge management projects on specific
business problems that can be easily quantified
 When the problems are solved, the value and benefits of
the system become apparent

1-50
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Knowledge management valuation

Nonfinancial metrics for knowledge management
valuation—new ways to view capital when evaluating
intangibles:
Customer goodwill
 External relationship capital
 Structural capital
 Human capital
 Social capital
 Environmental capital

1-51
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Causes of knowledge management failure
 The effort mainly relies on technology and does not
address whether the proposed system will meet the
needs and objectives of the organization and its
individuals
 Lack of emphasis on human aspects
 Lack of commitment
 Failure to provide reasonable incentive for people to
use the system…
1-52
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Factors that lead to knowledge management success



A link to a firm’s economic value, to demonstrate financial
viability and maintain executive sponsorship
A technical and organizational infrastructure on which to build
A standard, flexible knowledge structure to match the way the
organization performs work and uses knowledge
1-53
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Factors that lead to knowledge management success




A knowledge-friendly culture that leads directly to user support
A clear purpose and language, to encourage users to buy into
the system
A change in motivational practices, to create a culture of
sharing
Multiple channels for knowledge transfer
1-54
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Ensuring the Success of Knowledge
Management Efforts

Factors that lead to knowledge management
success
A significant process orientation and valuation to
make a knowledge management effort worthwhile
 Nontrivial motivational methods to encourage users
to contribute and use knowledge
 Senior management support

1-55
Modified from Decision Support Systems and Business Intelligence Systems 9E.
Last words on KM




Knowledge is an intellectual asset
IT is “just” an important enabler
Proper management of knowledge is a necessary
ingredient for success
Key issues:
Organizational culture
 Executive sponsorship
 Measurement of success

1-56
Modified from Decision Support Systems and Business Intelligence Systems 9E.
End of the Chapter

Questions / comments…
1-57
Modified from Decision Support Systems and Business Intelligence Systems 9E.