managing knowledge in the digital firm

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Essentials of Management Information Systems, 6e Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Chapter 11 Managing Knowledge in the Digital Firm 11.1 Managing Knowledge in the Digital Firm Chapter 11

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Chapter 11. Managing Knowledge in the Digital Firm. Objectives. What is knowledge management? Why do businesses today need knowledge management programs and systems for knowledge management? - PowerPoint PPT Presentation

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Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

11.1

Managing Knowledge inthe Digital Firm

Chapter 11

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

11.2

Objectives

1. What is knowledge management? Why do businesses today need knowledge management programs and systems for knowledge management?

2. What types of systems are used for enterprise-wide knowledge management? How do they provide value for organizations?

3. How do knowledge work systems provide value for firms? What are the major types of knowledge work systems?

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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4. What are the business benefits of using intelligent techniques for knowledge management?

5. What major management issues and problems are raised by knowledge management systems? How can firms obtain value from their investments in knowledge management systems?

Objectives

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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1. Designing knowledge systems that genuinely enhance organizational performance

2. Identifying and implementing appropriate organizational applications for artificial intelligence

Management Challenges

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Knowledge

• Wisdom

• Tacit knowledge

• Explicit knowledge

Important Dimensions of Knowledge

The Knowledge Management Landscape

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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U.S enterprise knowledge management software revenues, 2001-2006

The Knowledge Management Landscape

Figure 11-1

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Knowledge:– Is a firm asset– Has different forms– Has a location– Is situational

Important Dimensions of Knowledge

The Knowledge Management Landscape

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Organizational learning: Creation of new standard operating procedures and business processes reflecting experience

• Knowledge management: Set of processes developed in an organization to create, gather, store, disseminate, and apply knowledge

Organizational Learning and Knowledge Management

The Knowledge Management Landscape

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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The knowledge management value chain

The Knowledge Management Landscape

Figure 11-2

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Knowledge acquisition

• Knowledge storage

• Knowledge dissemination

• Knowledge application

The Knowledge Management Value Chain

The Knowledge Management Landscape

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Chief Knowledge Officer (CKO): Senior executive in charge of the organization's knowledge management program

• Communities of Practice (COP): Informal groups who may live or work in different locations but share a common profession

The Knowledge Management Value Chain

The Knowledge Management Landscape

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Enterprise Knowledge Management Systems: General purpose, integrated, and firm-wide systems to collect, store and disseminate digital content and knowledge

• Knowledge Work Systems (KWS): Information systems that aid knowledge workers in the creation and integration of new knowledge in the organization

• Intelligent Techniques: Datamining and artificial intelligence technologies used for discovering, codifying, storing, and extending knowledge

Types of Knowledge Management Systems

Types of Knowledge Management Systems

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Major types of knowledge management systems

Types of Knowledge Management Systems

Figure 11-3

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Structured knowledge

• Semistructured knowledge

• Knowledge repository

• Knowledge network

Structured Knowledge Systems

Enterprise-Wide Knowledge Management Systems

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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Enterprise-wide knowledge management systems

Enterprise-Wide Knowledge Management Systems

Figure 11-4

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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KWorld’s knowledge domain

Enterprise-Wide Knowledge Management Systems

Figure 11-5

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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KPMG knowledge system processes

Enterprise-Wide Knowledge Management Systems

Figure 11-6

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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DaimlerChrysler Learns to Manage Its Digital Assets

• What are the management benefits of using a digital asset management system?

• How does ADAM provide value for DaimlerChrysler?

Window on Technology

Enterprise-Wide Knowledge Management Systems

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Taxonomy: Method of classifying things according to a predetermined system

• Tagging: Once a knowledge taxonomy is produced, documents are tagged with proper classification

Organizing Knowledge: Taxonomies and Tagging

Enterprise-Wide Knowledge Management Systems

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Hummingbird’s integrated knowledge management system

Enterprise-Wide Knowledge Management Systems

Figure 11-7

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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Key Functions of an Enterprise Knowledge Network

• Knowledge exchange services

• Community of practice support

• Auto-Profiling Capabilities

• Knowledge management services

Knowledge Networks

Enterprise-Wide Knowledge Management Systems

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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The problem of distributed knowledge

Enterprise-Wide Knowledge Management Systems

Figure 11-8

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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AskMe Enterprise knowledge network system

Enterprise-Wide Knowledge Management Systems

Figure 11-9

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Teamware: Group collaboration software running on intranets that is customized for teamwork

Portals, Collaboration Tools, and Learning Management Systems

Enterprise-Wide Knowledge Management Systems

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• Learning Management Systems (LMS): Tools for the management, delivery, tracking, and assessment of various types of employee learning

Portals, Collaboration Tools, and Learning Management Systems

Enterprise-Wide Knowledge Management Systems

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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Managing Employee Learning: New Tools, New Benefits

• What are the management benefits of using learning management systems?

• How do they provide value to Alyeska and APL

Window on Management

Enterprise-Wide Knowledge Management Systems

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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Knowledge workers perform 3 key roles:

• Keeping the organization current in knowledge as it develops in the external world

• Serving as integral consultants regarding the areas of their knowledge, the changes taking place, and opportunities

• Acting as change agents

Knowledge Workers and Knowledge Work

Knowledge Work Systems

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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Requirements of knowledge work systems

Knowledge Work Systems

Figure 11-10

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Computer-aided design (CAD)

• Virtual reality systems

• Virtual Reality Modeling Language (VRML)

• Investment workstations

Examples of Knowledge Work Systems

Knowledge Work Systems

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• Knowledge Base: Model of human knowledge

• Rule-based Expert System: Collection in an AI system represented in the the form of IF-THEN

Capturing Knowledge: Expert Systems

Intelligent Techniques

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• AI shell: programming environment

• Inference Engine: strategy used to search through the rule base

• Forward Chaining: strategy for searching the rules base that begins with the information entered by user and searches the rule base to arrive at a conclusion

Capturing Knowledge: Expert Systems

Intelligent Techniques

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Rules in an AI program

Intelligent Techniques

Figure 11-11

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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Inference engines in expert systems

Intelligent Techniques

Figure 11-12

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Backward Chaining: Strategy for searching the rule base in an expert system that acts as a problem solver

• Knowledge Engineer: Specialist who elicits information and expertise from other professionals and translates it into set of rules for an expert system

Capturing Knowledge: Expert Systems

Intelligent Techniques

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Galeria Kaufhof

• Countrywide Funding Corp.

Examples of Successful Expert Systems

Intelligent Techniques

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• Case-based Reasoning (CBR): Artificial intelligence technology that represents knowledge as a database of cases and solutions

Organizational Intelligence: Case-Based Reasoning

Intelligent Techniques

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How case-based reasoning works

Intelligent Techniques

Figure 11-13

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Rule-based AI

• Tolerates imprecision

• Uses nonspecific terms called membership functions to solve problems

Fuzzy Logic Systems

Fuzzy Logic Systems

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Implementing fuzzy logic rules in hardware

Fuzzy Logic Systems

Figure 11-14

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Hardware or software emulating processing patterns of biological brain

• Put intelligence into hardware in form of a generalized capability to learn

Neural Networks

Neural Networks

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How a neural network works

Neural Networks

Figure 11-15

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Problem-solving methods

• Promote evolution of solutions to specified problems

• Use a model of living organisms adapting to their environment

Genetic Algorithms

Genetic Algorithms

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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The components of a genetic algorithm

Genetic Algorithms

Figure 11-16

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Integration of multiple AI technologies into a single application

• Takes advantage of best features of technologies

Hybrid AI Systems

Genetic Algorithms

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• Software program that uses built-in or learned knowledge base to carry out specific, repetitive, and predictable tasks for an individual user, business process, or software application

Intelligent Agents

Intelligent Agents

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Intelligent agent technology at work

Intelligent Agents

Figure 11-17

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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• Insufficient resources available to structure and update the content in repositories

• Poor quality and high variability of content quality because of insufficient mechanisms

• Content in repositories lacks context, making documents difficult to understand

Implementation Challenges

Management Issues for Knowledge Management Systems

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• Individual employees not rewarded for contributing content, and many fear sharing knowledge with others on the job

• Search engines return too much information, reflecting lack of knowledge structure or taxonomy

Implementation Challenges

Management Issues for Knowledge Management Systems

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Implementing knowledge management projects in stages

Management Issues for Knowledge Management Systems

Figure 11-18

Essentials of Management Information Systems, 6eEssentials of Management Information Systems, 6eChapter 11 Managing Knowledge in the Digital FirmChapter 11 Managing Knowledge in the Digital Firm

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1. Develop in stages

2. Choose a high-value business process

3. Choose the right audience

4. Measure ROI during initial implementation

5. Use the preliminary ROI to project enterprise-wide values

Obtaining Value from Knowledge Management Systems

Obtaining Value from Knowledge Management Systems

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1. Analyze P&G’s business strategy using the value chain and competitive forces models.

2. What business and technology conditions caused P&G to change its business strategy? What management, organization, and technology problems did P&G face?

Can Knowledge Systems Help Procter & Gamble Stay Ahead of the Pack?

Chapter 11 Case Study

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3. What is the role of knowledge management in supporting P&G’s business strategy? Explain how knowledge management systems help P&G execute its business strategy.

4. How successful has P&G been in pursuing its business strategy and using knowledge management? How successful do you think that strategy will be in the future? Explain your answer.

Can Knowledge Systems Help Procter & Gamble Stay Ahead of the Pack?

Chapter 11 Case Study