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Transcript 
Management Information Systems 8/e
Chapter
10
Chapter 10 Managing Knowledge for the Digital Firm
MANAGING
KNOWLEDGE FOR
THE DIGITAL
FIRM
10.1
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OBJECTIVES
• Why do businesses today need knowledge
management programs and systems for
knowledge management?
• Which information system applications
are most useful for distributing, creating,
and sharing knowledge in the firm?
• What are the business benefits of using
artificial intelligence technology for
knowledge management?
10.2
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OBJECTIVES
• How can businesses use expert systems
and case-based reasoning to capture
knowledge?
• How can organizations benefit from using
neural networks and other intelligent
techniques?
10.3
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
MANAGEMENT CHALLENGES
• Designing knowledge systems that genuinely
enhance organizational performance
• Identifying and implementing appropriate
organizational applications for artificial
intelligence
10.4
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Organizational Learning and Knowledge Management
Organizational learning
• Creation of new standard operating
procedures and business processes
reflecting experience
Knowledge management
• Set of processes
• Creates, gathers, stores, maintains, and
disseminates knowledge
10.5
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Organizational Learning and Knowledge Management
Knowledge Assets
• Organizational knowledge enabling
the business to create value
Chief Knowledge Officer (CKO)
• Senior executive in charge of
organization’s knowledge management
program
10.6
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Systems and Infrastructure for Knowledge Management
Tacit Knowledge
• Expertise and experience not formally
documented
Best Practices
• Successful solutions or problem-solving
methods developed by specific
organization or industry
10.7
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
Systems and Infrastructure for Knowledge Management
Organizational Memory
• Stored learning from organization’s
history
• Used for decision making and other
purposes
10.8
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
KNOWLEDGE MANAGEMENT IN THE ORGANIZATION
10.9
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Information Work
• Consists of creating or processing
information
• Divided into knowledge workers and data
workers
10.10
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Distributing Knowledge: Office and Document Management Systems
Office systems
• Manage and coordinate work of data and
knowledge workers
• Connect work of local information workers
with all levels and functions of organization
• Connect organization to external world
• Example: Word processing, voice mail, and
imaging
10.11
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
10.12
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Typical Office Systems
Document imaging systems
• Convert documents and images into
digital form
• Can be stored and accessed by the
computer
Knowledge repository
• Documented knowledge in a single
location
10.13
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
10.14
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
10.15
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Creating Knowledge: Knowledge Work Systems
Knowledge Work Systems (KWS)
• Aid knowledge workers in creation and
integration of new knowledge
• Specialized tools for specific types of
knowledge work
• User-friendly interface
10.16
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
10.17
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
10.18
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Examples of Knowledge Work Systems
• Computer-aided design (CAD)
• Virtual reality systems
• Virtual Reality Modeling Language (VRML)
• Investment workstations
10.19
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
Sharing Knowledge: Group Collaboration Systems and Enterprise Knowledge
Environments
• Groupware
• Intranets and Enterprise Knowledge
Environments
• Enterprise information portals
• Teamware
10.20
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
INFORMATION AND KNOWLEDGE WORK SYSTEMS
10.21
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
What is Artificial Intelligence?
• Effort to develop computer-based systems
that behave as humans
• Includes natural language, robotics,
perceptive systems, expert systems, and
intelligent machines
10.22
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Why Business is Interested in Artificial Intelligence
• Artificial Intelligence:
– Stores information in active form
– Creates mechanism not subjected to
human feelings
– Eliminates routine and unsatisfying jobs
– Enhances organization’s knowledge
base
– Generates solution to specific problems
10.23
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
10.24
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Capturing Knowledge: Expert Systems
• Knowledge Base
• Rule-based Expert System
• Rule Base
• Knowledge Frames
10.25
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
10.26
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Capturing Knowledge: Expert Systems
• AI shell
• Inference Engine
• Forward Chaining
• Backward Chaining
10.27
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
10.28
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Building an Expert System
Knowledge engineer
• Specialist eliciting information and
expertise from other professionals
• Translates information into set of rules for
an expert system
10.29
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Examples of Successful Expert Systems
• Galeria Kaufhof
• Countrywide Funding Corp.
10.30
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
Organizational Intelligence: Case-Based Reasoning
Case-based Reasoning (CBR)
• Captures and stores collective knowledge
• Represents knowledge as database of
cases and solutions
10.31
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
User describes the
10.32
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Neural Networks
• Hardware or software emulating
processing patterns of biological brain
• Put intelligence into hardware in form of a
generalized capability to learn
10.33
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
10.34
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
ARTIFICIAL INTELLIGENCE
10.35
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
10.36
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Fuzzy Logic
• Rule-based AI
• Tolerates imprecision
• Uses nonspecific terms called
membership functions to solve problems
10.37
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
10.38
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Genetic Algorithms
• Problem-solving methods
• Promote evolution of solutions to
specified problems
• Use a model of living organisms adapting
to their environment
10.39
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
10.40
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Hybrid AI Systems
• Integration of multiple AI technologies into
a single application
• Takes advantage of best features of
technologies
10.41
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter 10 Managing Knowledge for the Digital Firm
OTHER INTELLIGENT TECHNIQUES
Intelligent Agents
• Software programs
• Use built-in or learned knowledge base to
carry out specific, repetitive, and
predictable tasks
10.42
© 2004 by Prentice Hall
Management Information Systems 8/e
Chapter
10
Chapter 10 Managing Knowledge for the Digital Firm
MANAGING
KNOWLEDGE FOR
THE DIGITAL
FIRM
10.44
© 2004 by Prentice Hall
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