Decision Support and Business Intelligence Systems (9 th Ed., Prentice Hall)

Decision Support and Decision Support and Business Intelligence Business Intelligence

SystemsSystems(9(9thth Ed., Prentice Hall) Ed., Prentice Hall)

Chapter 11:Chapter 11:

Knowledge ManagementKnowledge Management

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall11-2

Learning ObjectivesLearning Objectives Define knowledge and describe the

different types of knowledge Describe the characteristics of knowledge

management Describe organizational learning and its

relationship to knowledge management Describe the knowledge management

cycle Describe the technologies that can be

used in a knowledge management system


Learning ObjectivesLearning Objectives Describe different approaches to

knowledge management Describe the chief knowledge officer and

others involved in knowledge management Describe the role of knowledge

management in organizational activities Describe the different ways of evaluating

intellectual capital in an organization Describe how KMS are implemented


Learning ObjectivesLearning Objectives Describe the roles of technology,

people, and management in knowledge management

Describe the benefits and drawbacks of knowledge management initiatives

Describe how knowledge management can revolutionize the way an organization functions

The future of KN: Web 2.0 and beyond…


Opening Vignette:Opening Vignette:

“MITRE Knows What It Knows Through Knowledge Management”

Company backgroundProblem descriptionProposed solutionResultsAnswer and discuss the case questions


Opening Vignette:Opening Vignette:MITRE’s View to the KM ProcessMITRE’s View to the KM Process

ENABLING TECHNOLOGIES FOR KNOWLEDGE MANAGEMENT

Expert Systems

DataMining

SearchEngine

Web 2.0

Databases

Portals

Internet

Collaboration

Webtechnologies

Intranet

Extranet

Knowledgerepresentation

Measurements

Machine Learning

Artificial Intelligence

Create

Identify

Share

Act Apply

Modify

CULTURE PROCESS PRACTICE

KM LIFE-CYCLE

Communication

INFLUENCING FACTORS

feedback


Introduction to Introduction to Knowledge Management 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 capitalThe invaluable knowledge of an organization’s employees


Introduction to Introduction to Knowledge Management 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”


Introduction to Introduction to Knowledge Management Knowledge Management

ProcessedRelevant and

Actionable

Relevant and actionable processed-data

Database PHASE 5

DEPT 4

DEPT 3

DEPT 2

DEPT 1

PHASE 4PHASE 3PHASE 2PHASE 1

DEPLOYMENT CHART

1 2 3 4 5

Data

Information

Knowledge

Wisdom


Introduction to Introduction to Knowledge Management Knowledge Management Characteristics of knowledge

Extraordinary leverage and increasing returns

Fragmentation, leakage and the need to refresh

Uncertain value Uncertain value of sharing

Knowledge-based economyThe economic shift from natural resources to intellectual assets


Introduction to Introduction to Knowledge Management 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

Examples…


Introduction to Introduction to Knowledge Management Knowledge Management Explicit and tacit knowledge

Tacit (embedded) knowledgeKnowledge 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 Examples…


Introduction to Introduction to Knowledge Management 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


Organizational Organizational Learning and Transformation 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”


Organizational Organizational Learning and Transformation 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

Need to establish corporate memory Modern IT helps… People issues are the most important!


Organizational Organizational Learning and Transformation 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”? Is it explicit or implicit? Can culture be changed? How? Give some examples of corporate culture:

Microsoft, Google, Apple, HP, GM, …


Organizational Organizational Learning and Transformation 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 Dominance in sharing explicit over tacit knowledge Use of a strong hierarchy, position-based status,

and formal power Insufficient capture, evaluation, feedback,

communication, and tolerance of past mistakes


Organizational Organizational Learning and Transformation Learning and Transformation Why people don’t like to share knowledge:

Differences in experience and education levels Lack of contact time and interaction between

knowledge sources and recipients Poor verbal/written communication and

interpersonal skills Age, gender, cultural and ethical defenses Lack of a social network Ownership of intellectual property Lack of trust in people because they may

misuse knowledge or take unjust credit for it Perceived lack of accuracy/credibility of

knowledge


Knowledge Management Knowledge Management ActivitiesActivities Knowledge management

initiatives and activities Most knowledge management

initiatives have one of three aims: 1. To make knowledge visible2. To develop a knowledge-intensive

culture3. To build a knowledge infrastructure


Knowledge Management Knowledge Management ActivitiesActivities Knowledge creation is the

generation of new insights, ideas, or routines

Four modes of knowledge creation: Socialization Externalization Internalization Combination

Analytics-based knowledge creation?


Knowledge Management Knowledge Management ActivitiesActivities 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


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 Knowledge Management ActivitiesActivities


Approaches toApproaches toKnowledge Management Knowledge Management Process approach to knowledge

management attempts to codify organizational knowledge through formalized controls, processes and technologies Focuses on explicit knowledge and IT

Practice approach focuses on building the social environments or communities of practice necessary to facilitate the sharing of tacit understanding Focuses on tacit knowledge and socialization


Approaches to Approaches to Knowledge Management 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 Hybrid atat

80/2080/20to to

50/5050/50


Knowledge Management - Knowledge Management - A Demand Led Business A Demand Led Business ActivityActivity Supply-driven vs. demand-driven KM

Technology approach

Data

Knowledge

Information Action

Results

Supply-driven: DIKAR

Demand-driven: RAKIDBusiness-value approach

summarize

contextulize utilize

obtain


Approaches to Approaches to Knowledge Management 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


Approaches to Approaches to Knowledge Knowledge Management Management

KNOWLEDGE MANAGEMENT PLATFORM (KMP)

Human Experts

KNOWLEDGE PORTAL (Web-based End User Interface)

Intelligent Broker

KNOWLEDGE REPOSITORY (Knowledge / Information / Data Nuggets)

Web Crawler Data/Text Mining ToolsManualEntries

DIVERSE INFORMATION / DATA SOURCES(Weather / Medical Info / Finance / Agriculture / Industrial)

Ad hocSearch

KN

OW

LED

GE C

RE

AT

ION

KN

OW

LED

GE U

TIL

IZA

TIO

N

A A ComprehensiComprehensive View to ve View to Knowledge Knowledge RepositoryRepository


Approaches to Approaches to Knowledge Management Knowledge Management Developing a knowledge repository

Knowledge repositories are developed using several different storage mechanisms in combination

The most important aspects and difficult issues are making the contribution of knowledge relatively easy for the contributor and determining a good method for cataloging the knowledge


Information Technology (IT) Information Technology (IT) in Knowledge Management 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


Capture Knowledge

Refine Knowledge

Store Knowledge

Manage Knowledge

Disseminate Knowledge

Create Knowledge

1

2

3

4

5

6

Information Technology (IT) Information Technology (IT) in Knowledge Management in Knowledge Management

The Cyclic The Cyclic Model of Model of Knowledge Knowledge ManagementManagement


Information Technology (IT) Information Technology (IT) in Knowledge Management in Knowledge Management Components of KMS

KMS are developed using three sets of core technologies:

1. Communication2. Collaboration3. Storage and retrieval

Technologies that support KM Artificial intelligence Intelligent agents Knowledge discovery in databases Extensible Markup Language (XML)


Information Technology (IT) Information Technology (IT) in Knowledge Management 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


Information Technology (IT) Information Technology (IT) in Knowledge Management 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 advice directly from knowledge by using neural networks or expert systems

Provide a natural language or voice command–driven user interface for a KMS


Information Technology (IT) Information Technology (IT) in Knowledge Management in Knowledge Management Intelligent agents

Intelligent agents are software systems that learn how users work and provide assistance in their daily tasks

They are used to elicit and identify knowledge

See ibm.com, gentia.com for examples Combined with enterprise knowledge

portal to proactively disseminate knowledge


Information Technology (IT) Information Technology (IT) in Knowledge Management in Knowledge Management Knowledge discovery in

databases (KDD) A machine learning process that performs rule induction, or a related procedure to establish (or create) knowledge from large databases a.k.a. Data Mining (and/or Text

Mining)


Information Technology (IT) Information Technology (IT) in Knowledge Management 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


Information Technology (IT) Information Technology (IT) in Knowledge Management in Knowledge Management Extensible Markup Language (XML)

XML enables standardized representations of data structures so that data can be processed appropriately by heterogeneous information systems without case-by-case programming or human intervention

Web 2.0 The evolution of the Web from statically

disseminating information to collaboratively creating and sharing information


KM System Implementation KM System Implementation Knowledge management products and

vendors Knowware

Technology tools (software/hardware products) that support knowledge management

Software development companies / vendors Collaborative computing tools Knowledge servers Enterprise knowledge portals (EKP)

An electronic doorway into a knowledge management system…


KM System Implementation KM System Implementation Software development companies /

vendors Electronic document management

(EDM) A method for processing documents electronically, including capture, storage, retrieval, manipulation, and presentation

Content management systems (CMS) An electronic document management system that produces dynamic versions of documents, and automatically maintains the current set for use at the enterprise level


KM System Implementation KM System Implementation Software development tools

Knowledge harvesting tools Search engines Knowledge management suites Knowledge management consulting

firms Knowledge management ASPs


KMS Implementation KMS Implementation Integration of KMS with other

business information systems With DSS/BI Systems With AI With databases and information

systems With CRM systems With SCM systems With corporate intranets and extranets


Roles of People in Roles of People in Knowledge Management Knowledge Management Chief knowledge officer (CKO)

The person in charge of a knowledge management effort in an organization Sets KM strategic priorities Establishes a repository of best practices Gains a commitment from senior executives Teaches information seekers how to better

elicit it Creates a process for managing intellectual

assets Obtain customer satisfaction information Globalizes knowledge management


Roles of People in Roles of People in Knowledge Management Knowledge Management Skills required of a CKO include:

Interpersonal communication skills Leadership skills Business acumen Strategic thinking Collaboration skills The ability to institute effective educational

programs An understanding of IT and its role in

advancing knowledge management


Roles of People in Roles of People in Knowledge Management Knowledge Management The CEO, other chief officers, and managers

The CEO is responsible for championing a knowledge management effort

The officers make available the resources needed to get the job done

CFO ensures that the financial resources are available COO ensures that people begin to embed knowledge

management practices into their daily work processes CIO ensures IT resources are available

Managers also support the KM efforts by providing access to sources of knowledge


Roles of People in Roles of People in Knowledge Management Knowledge Management

Community of practice (CoP)A group of people in an organization with a common professional interest, often self-organized for managing knowledge in a knowledge management system See Application Case 11.7 as an example

of how Xerox successfully improved practices and cost savings through CoP


Roles of People in Roles of People in Knowledge Management Knowledge Management KMS developers

The team members who actually develop the system

Internal + External

KMS staff Enterprise-wide KMS require a full-

time staff to catalog and manage the knowledge


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts Efforts Success stories of knowledge management

Implementing a good KM strategy can: Reduce…

loss of intellectual capital costs by decreasing the number of times

the company must repeatedly solve the same problem

redundancy of knowledge-based activities Increase…

productivity employee satisfaction


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts Efforts MAKE: Most Admired Knowledge Enterprises

“Annually identifying the best practitioners of KM” Criteria (performance dimensions):1. Creating a knowledge-driven corporate culture 2. Developing knowledge workers through leadership 3. Fostering innovation 4. Maximizing enterprise intellectual capital 5. Creating an environment for collaborative knowledge

sharing 6. Facilitating organizational learning 7. Delivering value based on stakeholder knowledge 8. Transforming enterprise knowledge into stakeholders’

value


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts 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. …


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts 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


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts Efforts Knowledge management valuation

Financial metrics for knowledge management valuation

Focus knowledge management projects on specific business problems that can be easily quantified

When the problems are solved, the value and benefits of the system become apparent


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts Efforts Knowledge management valuation

Nonfinancial metrics for knowledge management valuation—new ways to view capital when evaluating intangibles:

Customer goodwill External relationship capital Structural capital Human capital Social capital Environmental capital


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts 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…


Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts 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



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



management success A significant process orientation and

valuation to make a knowledge management effort worthwhile

Nontrivial motivational methods to encourage users to contribute and use knowledge

Senior management support


Last words on KMLast words on KM Knowledge is an intellectual asset IT is “just” an important enabler Proper management of knowledge is

a necessary ingredient for success

Key issues: Organizational culture Executive sponsorship Measurement of success

Decision Support and Business Intelligence Systems (9 th Ed., Prentice Hall)

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