1. Decision Support and Business Intelligence Systems (9 th Ed., Prentice Hall) Chapter 11: Knowledge Management

2. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-2 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

3. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-3 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”

4. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-4 Introduction to Knowledge Management

5. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-5 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

6. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-6 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

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-7 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

8. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-8 Organizational Learning and Transformation 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”

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-9 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

10. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-10 Organizational Learning and Transformation Organizational culture The aggregate attitudes in an organization concerning a certain issue (e.g., technology, computers, DSS) How do people learn the “culture”? Can culture be changed? How? Some examples of corporate culture?

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-11 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 Differences in experience and education levels Poor verbal/written communication and interpersonal skills Lack of a social network Lack of trust in people because they may misuse knowledge or take unjust credit for it

12. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-12 Knowledge Management Activities Knowledge creation is the generation of new insights, ideas, or routines Four modes of knowledge creation: Socialization Externalization Internalization Combination

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-13 Knowledge Management Activities Knowledge sharing 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

14. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-14 Knowledge seeking 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 Knowledge Management Activities

15. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-15 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 80/20to50/50

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-16 Approaches to Knowledge Management 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

17. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-17 Information Technology (IT) in Knowledge Management The KMS cycle KMS usually follow a six-step cycle: 1. Create knowledge 2. Capture knowledge 3. Refine knowledge 4. Store knowledge 5. Manage knowledge 6. Disseminate knowledge

18. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-18 Information Technology (IT) in Knowledge Management The Cyclic Model of Knowledge Management

19. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-19 Information Technology (IT) in Knowledge Management Components of KMS KMS are developed using three sets of core technologies: 1. Communication 2. Collaboration 3. Storage and retrieval Technologies that support KM Artificial intelligence Intelligent agents Knowledge discovery in databases Extensible Markup Language (XML)

20. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-20 Information Technology (IT) in Knowledge Management Artificial intelligence 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

21. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-21 Information Technology (IT) in Knowledge Management AI methods used in KMS: 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 a natural language or voice command– driven user interface for a KMS

22. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-22 Information Technology (IT) in Knowledge Management 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

23. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-23 Ensuring the Success of Knowledge Management Efforts MAKE: Most Admired Knowledge Enterprises “Annually identifying the best practitioners of KM” 2008 Winners: 1. McKinsey & Company 2. Google 3. Royal Dutch Shell 4. Toyota 5. Wikipedia 6. Honda 7. Apple 8. Fluor 9. Microsoft 10. PricewaterhouseCoopers 11. Ernst & Young 12. IBM 13. Schlumberger 14. Samsung Group 15. BP 16. Unilever 17. Accenture 18. …

24. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-24 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

25. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-25 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…

26. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-26 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

27. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 11-27 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