Managing the Digital Firm

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Knowledge Management
Session 4
1
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?
2
Objectives
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?
3
Topics
1. Knowledge Management Concepts
2. IT Techniques for Knowledge Management
3. IT Systems for Knowledge Management
4. Enterprise Knowledge Networks
5. Capturing Knowledge
4
Data, Information, Knowledge
and Wisdom
Increasing Context
Wisdom
Understanding
Principles
Knowledge
Information
Data
Understanding
Patterns
Understanding
Relationships
Increasing Complexity
5
Synergy of Knowledge
• A collection of data is not information
• A collection of information is not knowledge
• A collection of knowledge is not wisdom
• A collection of wisdom is not truth
6
Types of Organisational
Knowledge
• Explicit Knowledge – represented in
documents, books, e-mail and databases
• Embedded Knowledge – organisational
knowledge found in business processes
products and services
• Tacit Knowledge – undocumented knowledge
that is captured during business processes by
knowledge workers
7
Characteristics of Knowledge
• Subjectivity – depends on point of view
• Transferability – may be transferred from
one context to another
• Embeddedness – not always easily
accessible
• Self-Reinforcement – increases in value
the more it is shared
• Perishability – diminishes in value over
time
• Sponteneity – cannot be generated on
demand
8
Organizational Learning and
Knowledge Management
•
Organizational learning: Creation of new
standard operating procedures and
business processes reflecting experience
– “The Learning Organisation”
•
Knowledge management: Set of
processes developed in an organization
to create, gather, store, disseminate, and
apply knowledge
9
The Knowledge Management
Value Chain
10
Whose Knowledge?
• Push Knowledge Management – use of IT
systems to make information available
• Pull Knowledge Management – the culture
of the organisation – “You can lead a horse to
water but you can’t make it think”
11
How Does Knowledge
Management Create Value?
Customer Intimacy
Cultivating relationships to
gain customer knowledge
Delivering what specific
stakeholders want
Operational Excellence
Product/Service Leadership
Delivering solid
products and
services at the best
price and with the
least inconvenience
Delivering the best
products and services --offerings that push
performance boundaries
Employee Capability
Leveraging human
intellectual capital in
service design and
delivery
12
IT Techniques in Knowledge
Management
• Data Mining – extraction of implicit, previously
unknown and potentially useful information from
data
• Data Warehousing - a record of an
enterprise's past transactional and operational
information, stored in a database designed to
favour efficient data analysis and reporting - not
meant for current "live" data
• Data Dredging – pejorative term refers to the
imposition of patterns on data where no real
pattern exists
13
Data Mining
• Usually associated with an
organisation’s need to identify trends
• Eg. A supermarket may analyse the
buying patterns of people who buy
Coca-Cola and find that in 65% of
cases these customers also bought
Pringles - indicates possible joint
promotion of these products
14
Data Warehousing
• Data warehouses often hold large amounts of
information -subdivided into smaller logical units called
dependent data marts
• Two basic ideas:
– Integration of data from distributed and differently structured
databases, which facilitates a global overview and
comprehensive analysis in the data warehouse.
– Separation of data used in daily operations from data used in
the data warehouse for purposes of reporting, decision support,
analysis and controlling.
• Periodic imports of data from ERP systems and other
related systems into the data warehouse for further
processing
• Business Intelligence reports (e.g., MIS reports)
generated from the data managed by the warehouse.
Thus, the data warehouse supplies the data for and
supports the business intelligence tools that an
organization might use
15
Organizing Knowledge
•
Taxonomy: Method of classifying things
according to a predetermined system
•
Tagging: Once a knowledge taxonomy is
produced, documents are tagged with
proper classification
16
Major types of knowledge
management systems
17
Enterprise-Wide Knowledge
Management Systems
•
Structured knowledge
•
Semistructured knowledge
•
Knowledge repository
•
Knowledge network
18
Enterprise-Wide Knowledge
Management Systems
19
The Problem of Distributed
Knowledge
20
Building Blocks of Enterprise
Knowledge Management
• EIP or corporate portal - focal point of an
organisation’s knowledge management
• Information Management Systems – facilitates
organisation, indexing and classification of
knowledge assets
• Federated Search – facility to search across all
structures and unstructured information sources
• Business Intelligence (Decision Support) –
data warehousing, data mining, routine analysis,
reports etc.
• Collaboration – email, virtual workspaces etc.
21
Enterprise Information Portal
EIPs becoming foundation of B2E, B2C and B2B
systems
•
•
•
•
•
•
Search/discovery and navigation to information from a
knowledge map
Taxonomy, relevant indexing and classification of
information sources
Knowledge network, user interface to communities of
interest/expert systems
Personalisation and presentation of relevant information to
the desktop
Dynamic delivery of information to the desktop via
intelligent agents
Enterprise application integration
22
Hummingbird’s Integrated
Knowledge Management System
23
Enterprise Information Portal
24
KPMG – KWorld Model
15 Segments
19 Products
Regions
Products & Segments
Clients/Targets
People
Conferences
KPMG Library
Assurance
Tax
Consulting
FAS
25
KPMG Knowledge System
Processes
26
AskMe Enterprise Knowledge
Network System
27
Teamware and LMS
•
Teamware: Group collaboration
software running on intranets that is
customized for teamwork
•
Learning Management Systems (LMS):
Tools for the management, delivery,
tracking, and assessment of various
types of employee learning
28
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