managing knowledge for the digital firm

10.1 © 2004 by Prentice Hall

Management Information Systems 8/eManagement Information Systems 8/eChapter 10 Managing Knowledge for the Digital FirmChapter 10 Managing Knowledge for the Digital Firm1010

MANAGINGMANAGING

KNOWLEDGE FORKNOWLEDGE FOR

THE DIGITALTHE DIGITAL

FIRMFIRM

Chapter


Management Information Systems 8/eManagement Information Systems 8/eChapter 10 Managing Knowledge for the Digital FirmChapter 10 Managing Knowledge for the Digital Firm

• Why do businesses today need knowledge Why do businesses today need knowledge management programs and systems for management programs and systems for knowledge management?knowledge management?

• Define and describe the types of systems used for Define and describe the types of systems used for enterprise-wide knowledge management and enterprise-wide knowledge management and demonstrate how they provide value for demonstrate how they provide value for organizations?organizations?

• Identify the challenges posed by knowledge Identify the challenges posed by knowledge management systems and management solutions.management systems and management solutions.

OBJECTIVES



Important Dimensions of KnowledgeImportant Dimensions of Knowledge

Distinction between data, info, knowledge and wisdomDistinction between data, info, knowledge and wisdom– DataData: flow of events or transactions captured by

organizations– InformationInformation: to turn data into useful info, a firm must

expend resources to organize data into categories of understanding, such as monthly, daily, or regional reports

– KnowledgeKnowledge: to transform info into knowledge, a firm must expend additional resources to discover patterns, rules, and contexts where the knowledge works

– WisdomWisdom: is thought to be the collective and individual experience of applying knowledge to the solution of problems. Wisdom involves where, when and how to apply knowledge



How do firms obtain knowledge ?How do firms obtain knowledge ?

They create and gather knowledge using a variety of organizational learning mechanism

Organizational learningOrganizational learningThrough trial and error, careful measurement of planned Through trial and error, careful measurement of planned activities , feedback from customers and the environments. in activities , feedback from customers and the environments. in general, organizations create new standard operating general, organizations create new standard operating procedures and business processes that reflects their procedures and business processes that reflects their experience.experience.

Knowledge managementKnowledge managementSet of business processes developed in the organizationSet of business processes developed in the organization

• Creates, gathers, stores, maintains, and disseminates knowledgeCreates, gathers, stores, maintains, and disseminates knowledge• Knowledge management increases the ability of the org to learn from its environment and to Knowledge management increases the ability of the org to learn from its environment and to

incorporate knowledge into its business processesincorporate knowledge into its business processes

KNOWLEDGE MANAGEMENT IN THE ORGANIZATION

Organizational Learning and Knowledge Management



Knowledge AssetsKnowledge Assets• Organizational knowledge regarding how to

efficiently and effectively perform business processes and create new products and services that enables the business to create value.. Management theorists believe that these know. assests are as Management theorists believe that these know. assests are as important for competitive advantage, than physical assetsimportant for competitive advantage, than physical assets

Chief Knowledge Officer (CKO)Chief Knowledge Officer (CKO)• Senior executive in charge of organization’s

knowledge management program. They help design programs and systems to find new sources of knowledge or to make better use of existing knowledge in organizational and management processes





• Communities of practice (COPs)Communities of practice (COPs) – are informal social networks of professionals and employees within

and outside the firm who have similar work-related activities and interests

• TaxonomyTaxonomy– A scheme for classifying info and knowledge in such a way that it

can be easily accessed (like a table of contents in a book)

Organizational knowledge can be captured and stored using case-based Reasoning.

Ex:Ex: Accounting and consulting firms have developed structured document and engagement-based (case-based)engagement-based (case-based) repositories of reports from consultants who are working with particular clients. The reports typically are created after the consulting engagement is completed and include detailed descriptions of the consulting objective





Tacit Tacit (network)(network) Knowledge Knowledge• Expertise and experience not formally Expertise and experience not formally

documented documented which resides in the minds of which resides in the minds of individual employeesindividual employees

-Structured internal knowledgeStructured internal knowledge (explicit (explicit knowledge)knowledge) that exists in formal documents

-External knowledge External knowledge of competitors,of competitors, products and products and marketsmarkets

Best PracticesBest Practices• Successful solutions or problem-solving methodsSuccessful solutions or problem-solving methods

developed by specific organization or industrydeveloped by specific organization or industry


Systems and Infrastructure for Knowledge Management



IT Infrastructure for Knowledge Management


Figure 10-1



• Consists of creating or processing Consists of creating or processing informationinformation

• Divided into knowledge workers and data Divided into knowledge workers and data workersworkers

INFORMATION AND KNOWLEDGE WORK SYSTEMS

Information Work



Office systemsOffice systems

Computer sys, designed to inc the prod of info workers in theComputer sys, designed to inc the prod of info workers in the offoff

• Manage and coordinate work of data and Manage and coordinate work of data and knowledge workersknowledge workers

• Connect work of local information workers Connect work of local information workers with all levels and functions of organizationwith all levels and functions of organization

• Connect organization to external worldConnect organization to external world

• Example: Word processing, voice mail, and Example: Word processing, voice mail, and imagingimaging


Distributing Knowledge: Office and Document Management Systems




The Three Major Roles of Offices

Figure 10-2

1. Coordination of the work of loc professional and info workers

2. Coord work in the org across levels and function

3. They couple the org to the ext env



Document imaging systemsDocument imaging systems

• Convert documents and images into digital Convert documents and images into digital form form

• Can be stored and accessed by the computerCan be stored and accessed by the computer

Knowledge repositoryKnowledge repository• Collection of Documented int & ext knowledge in a Collection of Documented int & ext knowledge in a

single location for more efficient management & single location for more efficient management & utilization by the org. utilization by the org. Using these tools, knowledge from many diff Using these tools, knowledge from many diff sources that can be documented in the forms of memo, presentations, and sources that can be documented in the forms of memo, presentations, and articles can be digitized and placed in a central location for easy storage and articles can be digitized and placed in a central location for easy storage and retrievalretrieval

Typical Office Systems




Knowledge Work Systems (KWS)Knowledge Work Systems (KWS)• Aid knowledge workers in creation and Aid knowledge workers in creation and

integration of new knowledgeintegration of new knowledge

• Specialized tools for specific types of Specialized tools for specific types of knowledge workknowledge work

• User-friendly interfaceUser-friendly interface

Creating Knowledge: Knowledge Work Systems




Changes in the Construction Project Management Process


Figure 10-5



• Computer-aided design (CAD)Computer-aided design (CAD)– automates the creation and revision of designs, using

computers and sophisticated graphics software• Virtual reality systemsVirtual reality systems

– Interactive graphics software and hardware that create computer-generated simulations that provide sensations that emulate sensations real-world activities

• Virtual Reality Modeling Language (VRML)Virtual Reality Modeling Language (VRML) – A set of specifications for interactive three-dimensional

modeling on the WWW. Users can download a three-dimensional data over the Internet, and virtual world designed using VRML from a server over the Internet using their Web browser

• Investment workstationsInvestment workstations– powerful desktop comp for financial specialists, which

is optimized to access and manipulate massive amounts of financial data

Examples of Knowledge Work Systems




• Effort to develop computer-based systems Effort to develop computer-based systems that behave as humansthat behave as humans

• Includes natural language, robotics, Includes natural language, robotics, perceptive systems, expert systems, and perceptive systems, expert systems, and intelligent machinesintelligent machines

ARTIFICIAL INTELLIGENCE

What is Artificial Intelligence?



• Artificial Intelligence:Artificial Intelligence:types of systems that would be able to learntypes of systems that would be able to learn

languages and use a perceptual apparatus.languages and use a perceptual apparatus.

– 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

Why Business is Interested in Artificial Intelligence




The Artificial Intelligence Family


Knowledge management also includes a diverse group of intelligent Knowledge management also includes a diverse group of intelligent

techniques, such as :techniques, such as :

- data mining focus on discovering knowledge

- expert systems and fuzzy logic distilling knowledge in the form of

rules for a computer program

- genetic algorithms discovering optimal solutions for problems that are too

large and complex for human beings to analyze



Knowledge engineerKnowledge engineer

• Specialist eliciting information and Specialist eliciting information and expertise from other professionals expertise from other professionals

• Translates information into set of rules for Translates information into set of rules for an expert systeman expert system

• A knowledge engineer is similar to a A knowledge engineer is similar to a traditional systems analyst traditional systems analyst


Building an Expert System


Management Information Systems 8/eManagement Information Systems 8/eChapter 10 Managing Knowledge for the Digital FirmChapter 10 Managing Knowledge for the Digital Firm1010

MANAGINGMANAGING

KNOWLEDGE FORKNOWLEDGE FOR

THE DIGITALTHE DIGITAL

FIRMFIRM

Chapter



• Where, when, and how to apply Where, when, and how to apply knowledge is referred to as:knowledge is referred to as: – wisdom.– information.– data.– knowledge.

Multiple Choice QuestionsMultiple Choice Questions( 6 Questions)( 6 Questions)



• An informal group of people that may An informal group of people that may deliver work in many different locations, deliver work in many different locations, but who share, professional interest is but who share, professional interest is called:called:– community of practice.– communities of discovery.– communities of interest.– communities of knowledge.

Multiple Choice QuestionsMultiple Choice Questions



• CAD systems require:CAD systems require:– processing nodes.– neural networks.– graphics and powerful modeling capabilities.– groupware.




• When capturing tactic knowledge, which When capturing tactic knowledge, which of the following technologies would NOT of the following technologies would NOT be used?be used?– Virtual reality– Expert systems– Fuzzy logic systems– Case-based reasoning




• These types of systems would be able to These types of systems would be able to learn languages and use a perceptual learn languages and use a perceptual apparatus.apparatus.– Artificial intelligence– Fuzzy logic.– CAD– Intelligent agents




• Organizational knowledge can be captured Organizational knowledge can be captured and stored using: and stored using: – case-based reasoning.– neural networks.– user-defined techniques.– backward chaining.




• Because of their complexity and intangible Because of their complexity and intangible benefits, knowledge-management systems benefits, knowledge-management systems represent only a minor area of information represent only a minor area of information systems investment. systems investment. – True– False

True-False QuestionsTrue-False Questions(6 Questions)(6 Questions)



• Knowledge is both an individual attribute Knowledge is both an individual attribute and a collective attribute of a firm. and a collective attribute of a firm. – True– False

True-False QuestionsTrue-False Questions



• Knowledge storage generally involves the Knowledge storage generally involves the creation of wisdom. creation of wisdom. – True– False




• Architects, engineers, and medical workers Architects, engineers, and medical workers use precise simulations of objects provided by use precise simulations of objects provided by virtual reality systems. virtual reality systems. – True– False

True-False Questions True-False Questions



• Best practice is a scheme for classifying Best practice is a scheme for classifying information and knowledge in such a way information and knowledge in such a way that it can be easily accessed.that it can be easily accessed. – True– False




• The majority of knowledge workers do not The majority of knowledge workers do not rely on office systems to increase rely on office systems to increase productivity in the office. productivity in the office. – True– False


managing knowledge for the digital firm

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