Dr Sherif Kamel
Department of Management
School of Business, Economics and
Communication
Information, Knowledge, Technologies,
Concepts and Systems Management
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

Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
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

Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Data, information and knowledge

One of the primary goals of IS is to economically process
data into information or knowledge
o
Data
-
o
Information
-
o
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
Data that have been organized so that they have meaning and value to
the recipient
Knowledge
-
Data or information that have been organized and processed to convey
understanding, experience, accumulated learning, and expertise
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
Classifications of IS

Organizational structure
o
Departmental information systems
-
o
Enterprise information systems (EIS)
-
o
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
Inter-organizational systems
-

Use of several application programs in one functional area or
department
Some information systems connect several organizations
Functional area
o
o
o
o
o
Accounting information system
Finance information system
Manufacturing (operations/production) information system
Marketing information system
Human resources management information system
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Classifications of IS

Support provided
o
o
o
o
o
o
o
o

Transaction processing system (TPS)
Management information system (MIS)
Knowledge management system (KMS)
Office automation system (OAS)
Decision support system (DSS)
Enterprise information system (EIS)
Group support system (GSS)
Intelligent support system
System architecture
o
o
o
A mainframe-based system
A standalone personal computer (PC)
A distributed or a networked computing system
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Copyright © 2005 Sherif Kamel
Classifications of IS

Activity supported
o
Operational
–
o
Managerial
–
o
Day-to-day operations of an organization
Middle-management activities such as short-term planning, organizing,
and control
Strategic
–
Decisions that significantly change the manner in which business is
being done
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Copyright © 2005 Sherif Kamel
Evolution of management support
systems (MSS)

Early 1950s
1960s
Late 1960s
Early 1970s
Early 1980s

Mid 1980s

1990s




Transaction Processing System (TPS)
Management Information Systems (MIS)
Office Automation System (OAS)
Decision Support System (DSS)
Executive Information Systems,
Enterprise Information Systems (EIS)
and Group Support Systems (GSS)
Expert Systems (ES), Knowledge
Management Systems (KMS)
Artificial Neural Networks (ANN)
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Copyright © 2005 Sherif Kamel
Transaction processing systems (TPS)

Support the monitoring, collection, storage, processing,
and dissemination of the organization’s basic business
transactions
o
o
o
Provide the input data for many applications involving other support
systems
Considered critical to the success of any organization
Collects data continuously, frequently on a daily basis, or even in
“real time”
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Copyright © 2005 Sherif Kamel
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
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Copyright © 2005 Sherif Kamel
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 Internet
o 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
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Information systems and people
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Copyright © 2005 Sherif Kamel
Information Infrastructure
building blocks






Information architecture
Computer hardware
Software development
Networks and communication facilities (including the
Internet and intranets)
Databases
Information management personnel
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Copyright © 2005 Sherif Kamel
Information architecture


High-level map or plan of the information requirements in
an organization
Architecture designers require two kinds of information
o
Business needs of the organization
-
-
o
Objectives
Problems
Contribution that IT can make
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
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Copyright © 2005 Sherif Kamel
Types of information architecture

Mainframe environment
o
o

PC environment
o

Processing is done by a mainframe computer
Users work with passive (or “dumb”) terminals, which are used to
enter or change data and access information from the mainframe
Only PCs form the hardware information architecture
Networked (distributed) environment
o
Distributed processing divides the processing work between two or
more computers
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Copyright © 2005 Sherif Kamel
Client/server architecture

Client/server architecture
o
Divides networked computing units into two major categories;
clients and servers
-
o
o
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
Client/server architecture maximizes the use of computer resources
Client/server architecture gives a company as many access points
to data as there are PCs on the network
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Copyright © 2005 Sherif Kamel
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
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Copyright © 2005 Sherif Kamel
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
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Copyright © 2005 Sherif Kamel
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)
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Copyright © 2005 Sherif Kamel
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
o
Vertical exchanges position themselves as the hub for all buying,
selling, and related services in a single market category
Horizontal exchanges focus on a specific function or need
applicable to many different industries
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Copyright © 2005 Sherif Kamel
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
o
Next-generation eCommerce, mCommerce enables users to
access the Internet without a place to plug in to
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
Copyright © 2002 Turban, McLean and Wetherbe
Copyright © 2005 Sherif Kamel
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
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Copyright © 2005 Sherif Kamel
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)
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Copyright © 2005 Sherif Kamel
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

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Copyright © 2005 Sherif Kamel
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
o
Tacit knowledge is usually in the domain of subjective, cognitive,
and experiential learning
Explicit knowledge deals with more objective, rational, and
technical knowledge
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Copyright © 2005 Sherif Kamel
Innovation
Solve existing
problems
External
Environment
Create
knowledge and
information
Outside - In
Adapt to
a changing
environment
Create new
environment
Inside - Out
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Redefine
problems and
solutions
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Knowledge Cycle
Data
Information
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Knowledge
Copyright © 2005 Sherif Kamel
Epistemology and Ontology
Epistemology is the Theory of Knowledge
 Ontology is the Knowledge Creating Entities

-
Individuals
Groups
Organizations
Inter-organizations
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Copyright © 2005 Sherif Kamel
Knowledge Creation Process

There are 4 modes of knowledge conversion
created when tacit and explicit knowledge interact
with each other
o
o
o
o
Socialization
Externalization
Combination
Internalization
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Copyright © 2005 Sherif Kamel
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
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Copyright © 2005 Sherif Kamel
Knowledge and information
Epistemological
Dimension
Explicit
Knowledge
Tacit
Knowledge
Individual
Group
Ontological
Organization Inter-Organization Dimension
Knowledge Level
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Copyright © 2005 Sherif Kamel
Types of information
Syntactic
Semantic
Volume of
information
Meaning of
information
More important to
knowledge creation
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Copyright © 2005 Sherif Kamel
Knowledge conversion

Which modes of knowledge is more truthful?
o
o

Western School: [Explicit Knowledge]
Japanese School: [Tacit Knowledge]
It is widely believed that explicit and tacit
knowledge complement each other
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Copyright © 2005 Sherif Kamel
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

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Copyright © 2005 Sherif Kamel
Knowledge creation spiral

Socialization mode
o
o

Externalization mode
o
o

Triggered by meaningful dialogue or collective reflection
Help individuals using metaphors articulate hinder tacit knowledge
that is otherwise difficult to communicate
Combination mode
o
o

Starts with building a field for interaction
Facilitates sharing of experiences and mental models between
members
Triggered by networking
Reflects knowledge acquisition and knowledge dissemination
Internalization mode
o
Triggered by learning by doing
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Copyright © 2005 Sherif Kamel
Spiral of organizational knowledge creation
Externalization
Epistemological
Dimension
Combination
Explicit
Knowledge
Internalization
Tacit
Knowledge
Socialization
Individual
Group
Ontological
Organization Inter-Organization Dimension
Knowledge Level
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Copyright © 2005 Sherif Kamel
Knowledge-based economy

Rapid changes in the business environment cannot be
handled in traditional ways
o
o

Firms are much larger, with higher turnover and require better tools
for collaboration, communication, and knowledge sharing
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
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Copyright © 2005 Sherif Kamel
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)
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Copyright © 2005 Sherif Kamel
Objectives of knowledge management




Create knowledge repositories
Improve knowledge access
Enhance the knowledge environment
Manage knowledge as an asset
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Copyright © 2005 Sherif Kamel
Knowledge management cycle






Create knowledge
Capture knowledge
Refine knowledge
Store knowledge
Manage knowledge
Disseminate knowledge
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Copyright © 2005 Sherif Kamel
Organizational knowledge repositories

Knowledge network model
o

The individual who has the knowledge transfers expertise through
person-to-person contacts
Knowledge repository model
o
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 model
o
Many organizations use a hybrid of the network and repository
models
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Copyright © 2005 Sherif Kamel
Knowledge Repositories

Databases
o

Data warehouses
o

It is possible to structure part of a knowledge repository as a
database
Large repositories of valuable data, can be used for knowledge
management, especially in conjunction with customer relationship
management (CRM) systems
Electronic Documents
o
Electronic document management systems
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Copyright © 2005 Sherif Kamel
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
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Copyright © 2005 Sherif Kamel
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
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Copyright © 2005 Sherif Kamel
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
o
o
o
o
o
Decision Support Systems (DSS)
Artificial Intelligence (AI)
Database Management Systems (DBMS)
Customer Relationship Management Systems (CRM)
Supply Chain Management Systems (SCM)
Corporate Intranets and Extranets
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Copyright © 2005 Sherif Kamel
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?
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Copyright © 2005 Sherif Kamel