information, knowledge, technologies, concepts and systems management

Information, Knowledge, Technologies, Concepts and Systems Management

Dr Sherif KamelDepartment of Management

School of Business, Economics and Communication

Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe

Outline

Characteristics of IS Data, information and knowledge Classifications of IS Evolution of management support systems Information infrastructure Role of IS department Knowledge management Managerial issues


Characteristics of IS

Different information systems can exist in one organization (comprised of many sub-systems)

Information systems and information networks Inter-organizational information systems involve

information flow in two or more organizations Enterprise-wide system or inter-organizational IS

is composed of large and small computers hardware connected by different types of networks


Data, information and knowledge

One of the primary goals of IS is to economically process data into information or knowledge

o Data Items refer to an elementary description of things, events, activities,

and transactions that are recorded, classified, and stored, but not organized to convey any specific meaning

o Information Data that have been organized so that they have meaning and value to

the recipiento Knowledge

Data or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise


Classifications of IS

Organizational structureo Departmental information systems

Use of several application programs in one functional area or department

o Enterprise information systems (EIS) While a departmental IS is usually related to a functional area, the

collection of all departmental applications when combined with other functions’ applications comprises the enterprise-wide information system

o Inter-organizational systems Some information systems connect several organizations

Functional areao Accounting information systemo Finance information systemo Manufacturing (operations/production) information systemo Marketing information systemo Human resources management information system



Support provided o Transaction processing system (TPS)o Management information system (MIS)o Knowledge management system (KMS) o Office automation system (OAS)o Decision support system (DSS)o Enterprise information system (EIS)o Group support system (GSS)o Intelligent support system

System architectureo A mainframe-based systemo A standalone personal computer (PC)o A distributed or a networked computing system



Activity supportedo Operational

– Day-to-day operations of an organization

o Managerial– Middle-management activities such as short-term planning, organizing,

and control

o Strategic– Decisions that significantly change the manner in which business is

being done


Evolution of management support systems (MSS) Early 1950s Transaction Processing System (TPS) 1960s Management Information Systems

(MIS) Late 1960s Office Automation System (OAS) Early 1970s Decision Support System (DSS) Early 1980s Executive Information Systems,

Enterprise Information Systems (EIS) and Group Support Systems

(GSS) Mid 1980s Expert Systems (ES), Knowledge

Management Systems (KMS) 1990s Artificial Neural Networks (ANN)


Transaction processing systems (TPS)

Support the monitoring, collection, storage, processing, and dissemination of the organization’s basic business transactions

o Provide the input data for many applications involving other support systems

o Considered critical to the success of any organizationo Collects data continuously, frequently on a daily basis, or even in

“real time”


Functional management information systems (MIS) Ensures that business strategies add value in an efficient

manner Provides periodic information about operational efficiency,

effectiveness, and productivity by extracting information from the corporate database and processing it according to the needs of the user

Can be constructed in whole or in part by end-users Used for planning, monitoring, and control


New strategic systems (eCommerce)

Electronic commerce has become a new way of conducting business in the last decade…o In this new model, business transactions take place via

telecommunications networks, primarily the Interneto eCommerce provides organizations with innovative and

strategic advantages, such as; Increased market share Better ability to negotiate with suppliers Better ability to prevent competitors from entering

into their territory


Information systems and people


Information Infrastructurebuilding blocks Information architecture Computer hardware Software development Networks and communication facilities (including the

Internet and intranets) Databases Information management personnel


Information architecture

High-level map or plan of the information requirements in an organization

Architecture designers require two kinds of informationo Business needs of the organization

Objectives Problems Contribution that IT can make

o IS that already exist in an organization and how they can be combined among themselves or with future systems to support the organization’s information needs


Types of information architecture

Mainframe environmento Processing is done by a mainframe computero Users work with passive (or “dumb”) terminals, which are used to

enter or change data and access information from the mainframe

PC environmento Only PCs form the hardware information architecture

Networked (distributed) environmento Distributed processing divides the processing work between two or

more computers


Client/server architecture

Client/server architectureo Divides networked computing units into two major categories;

clients and servers Client is a computer such as a PC or a workstation attached to a

network, which is used to access shared network resources Server is a machine that is attached to this same network and provides

clients with these services

o Client/server architecture maximizes the use of computer resources

o Client/server architecture gives a company as many access points to data as there are PCs on the network


Electronic data interchange (EDI)

The electronic movement of specially formatted standard business documents, such as orders, bills, and confirmations sent between business partners

In the past, EDI ran on expensive value-added networks (VANs)

o These are private, data-only wide area networks used by multiple organization to provide high capacity, security, and economies in the cost of network service

Internet-based EDI


Trio-components of web-based systems

Internet is a worldwide system of computer networks - network of networks in which users at any one computer can, if they have permission, get information from any other computer

Intranet is the use of WWW technologies to create a private network, usually within one enterprise (security gateway such as a firewall is used to segregate the intranet from the Internet)

Extranet can be viewed as an external extension of the enterprise intranet


eCommerce and storefronts

One of the natural outcomes of the Internet and the World Wide Web has been eCommerce

Web-based systems are the engines of eCommerce eCommerce enable business and inventory transactions to

be conducted seamlessly over the Internet 24/7 An electronic storefront is the Web-equivalent of a

showroom (displaying products)


Electronic markets and exchanges

Electronic markets are a network of interactions and relationships over which information, products, services, and payments are exchanged

Electronic exchanges are central web-based locations where buyers and sellers interact dynamically, with buyer and sellers going back and forth on a price

o Vertical exchanges position themselves as the hub for all buying, selling, and related services in a single market category

o Horizontal exchanges focus on a specific function or need applicable to many different industries


Mobile commerce

mCommerce is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants

o Next-generation eCommerce, mCommerce enables users to access the Internet without a place to plug in to

o Wireless Application Protocol (WAP) is the emerging technology behind mCommerce

o Using Bluetooth technology, WAP-enabled smart phones offer fax, eMail, and phone capabilities all in one


Role of an IS department

The role of the IS department is changing from purely technical to more managerial and strategic

The position of the IS department tends to be elevated from a unit reporting to a functional department, to a unit reporting to a senior vice president or to the CEO

The role of the director of the IS department is changing from a technical manager to a senior executive

IS as a function could be centralized or decentralized or a combination of the two


Managerial issues

Transition to networked computing is a complicated process

Migrating from a architecture to another requires human and technical resources and capacities

Information systems is at the core of strategy development in the organization

How much infrastructure is needed? o Justifying information system applications is not an easy job due to

the intangible benefits and rapid changes in technologies

Role of end-users is invaluable in IS development and management

Ethical Issues (invading privacy of users or creating advantages to certain individuals at the expense of others)


Overview – knowledge management

Each organization processes information from the external environment in order to adapt to new circumstances

Such mechanism does not help in comprehending innovation

Innovation needs to come from within the organization and diffusing it to the external environment – the market place


Knowledge management definition

Knowledge management (KM) is a process that helps organizations identify, select, organize, disseminate, and transfer important information and expertise that are part of the organization’s memory

Knowledge is information that is contextual, relevant, and actionable

o Tacit knowledge is usually in the domain of subjective, cognitive, and experiential learning

o Explicit knowledge deals with more objective, rational, and technical knowledge


Innovation

ExternalEnvironment

Solve existing problems

Adapt to a changing

environment

Outside - In

Create knowledge and

information

Create new environment

Redefine problems and

solutions

Inside - Out


Knowledge Cycle

Data Information Knowledge


Epistemology and Ontology

Epistemology is the Theory of Knowledge Ontology is the Knowledge Creating Entities

Individuals Groups Organizations Inter-organizations


Knowledge Creation Process

There are 4 modes of knowledge conversion created when tacit and explicit knowledge interact with each othero Socializationo Externalizationo Combinationo Internalization


Important Tips

Socialization leads to sympathized knowledge such as shared mental models and technical skills

Externalization outputs conceptual knowledge such as development of analogies and metaphors

Combination gives rise to systemic knowledge such as prototype and new technologies

Internalization produces operational knowledge such as focusing on a project, sharing the experience, documentation use


Knowledge and information

Knowledge Level

Individual

Ontological Dimension Group Organization Inter-Organization

Epistemological Dimension

TacitKnowledge

ExplicitKnowledge


Types of information

Volume of information

Meaning of information

Syntactic Semantic

More important to knowledge creation


Knowledge conversion

Which modes of knowledge is more truthful?o Western School: [Explicit Knowledge]o Japanese School: [Tacit Knowledge]

It is widely believed that explicit and tacit knowledge complement each other


Knowledge creation spiral

Organizational knowledge creation is a continuous and dynamic interaction between tacit and explicit knowledge

The interaction is shaped by different shifts between different modes of knowledge conversion


Knowledge creation spiral

Socialization modeo Starts with building a field for interactiono Facilitates sharing of experiences and mental models between

members

Externalization modeo Triggered by meaningful dialogue or collective reflectiono Help individuals using metaphors articulate hinder tacit knowledge

that is otherwise difficult to communicate

Combination modeo Triggered by networkingo Reflects knowledge acquisition and knowledge dissemination

Internalization modeo Triggered by learning by doing


Spiral of organizational knowledge creation

Knowledge Level

Individual

Ontological Dimension Group Organization Inter-Organization

Epistemological Dimension

TacitKnowledge

ExplicitKnowledge

Externalization

Combination

Socialization

Internalization


Knowledge-based economy

Rapid changes in the business environment cannot be handled in traditional ways

o Firms are much larger, with higher turnover and require better tools for collaboration, communication, and knowledge sharing

o Firms must develop strategies to sustain competitive advantage by leveraging their intellectual assets for optimum performance

Managing knowledge is now critical for firms spread out over wide geographical areas, and for virtual organizations


Learning organization (culture)

The term learning organization refers to an organization’s capability of learning from its past experience

o To build a learning organization, it must tackle three critical issues: Meaning (determining a vision of the learning organization) Management (determining how the firm is to work) Measurement ( assessing the rate and level of learning)

Ability of an organization to learn, develop memory, and share knowledge is dependent on its culture

Over time organizations learn what works and what doe not work (organizational culture)


Objectives of knowledge management

Create knowledge repositories Improve knowledge access Enhance the knowledge environment Manage knowledge as an asset


Knowledge management cycle

Create knowledge Capture knowledge Refine knowledge Store knowledge Manage knowledge Disseminate knowledge


Organizational knowledge repositories

Knowledge network modelo The individual who has the knowledge transfers expertise through

person-to-person contacts

Knowledge repository modelo Knowledge contribution and use follows a two-step transfer

procedure of person-to-repository and repository-to-person Captured knowledge is stored in a knowledge repository, a collection of

both internal and external knowledge

Hybrid modelo Many organizations use a hybrid of the network and repository

models


Knowledge Repositories

Databaseso It is possible to structure part of a knowledge repository as a

database

Data warehouseso Large repositories of valuable data, can be used for knowledge

management, especially in conjunction with customer relationship management (CRM) systems

Electronic Documentso Electronic document management systems


Knowledge management benefits

Reduction in loss of intellectual capital when people leave the company

Reduction in costs by decreasing the number of times the company must repeatedly solve the same problem

Economies of scale in obtaining information from external providers

Increase in productivity by making knowledge available more quickly and easily

Increase in employee satisfaction by enabling greater personal development and empowerment

Strategic competitive advantage in the marketplace


Chief knowledge officer (CKO)

Set knowledge management strategic priorities Establish a knowledge repository of best practices Gain a commitment from senior executives to support a

learning environment Teach information seekers how to ask better and smarter

questions Establish a process for managing intellectual assets Obtain customer satisfaction information in near real time


Knowledge management and systems integration Knowledge management is an enterprise system that must

be integrated with other enterprise and information systems in an organization including

o Decision Support Systems (DSS)o Artificial Intelligence (AI)o Database Management Systems (DBMS)o Customer Relationship Management Systems (CRM)o Supply Chain Management Systems (SCM)o Corporate Intranets and Extranets


Managerial issues

Organizational culture change and transformation How can people contribute to knowledge acquisition and

sharing? How to measure the tangible and intangible benefits? Implementation is a successful factor for IT How can the organization develop a successful knowledge

management system?

information, knowledge, technologies, concepts and systems management

Documents

information flow

sherif kamelcopyright

subsystemsinformation

departmental applications

functions applications

application programs

day operations

small computers hardware