Essentials of Management Information Systems, 6e
Chapter 11
Chapter 11 Managing Knowledge in the Digital Firm
Managing Knowledge in
the Digital Firm
11.1
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
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 enterprisewide 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?
11.2
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
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?
11.3
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Management Challenges
1. Designing knowledge systems that genuinely
enhance organizational performance
2. Identifying and implementing appropriate
organizational applications for artificial
intelligence
11.4
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
The Knowledge Management Landscape
Important Dimensions of Knowledge
11.5
•
Knowledge
•
Wisdom
•
Tacit knowledge
•
Explicit knowledge
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
The Knowledge Management Landscape
U.S enterprise knowledge management software revenues, 2001-2006
Figure 11-1
11.6
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
The Knowledge Management Landscape
Important Dimensions of Knowledge
•
11.7
Knowledge:
– Is a firm asset
– Has different forms
– Has a location
– Is situational
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
The Knowledge Management Landscape
Organizational Learning and Knowledge Management
11.8
•
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
The Knowledge Management Landscape
The knowledge management value chain
Figure 11-2
11.9
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
The Knowledge Management Landscape
The Knowledge Management Value Chain
11.10
•
Knowledge acquisition
•
Knowledge storage
•
Knowledge dissemination
•
Knowledge application
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
The Knowledge Management Landscape
The Knowledge Management Value Chain
11.11
•
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Types of Knowledge Management Systems
Types of Knowledge Management Systems
11.12
•
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Types of Knowledge Management Systems
Major types of knowledge management systems
Figure 11-3
11.13
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Structured Knowledge Systems
11.14
•
Structured knowledge
•
Semistructured knowledge
•
Knowledge repository
•
Knowledge network
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Enterprise-wide knowledge management systems
Figure 11-4
11.15
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
KWorld’s knowledge domain
Figure 11-5
11.16
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
KPMG knowledge system processes
Figure 11-6
11.17
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Window on Technology
DaimlerChrysler Learns to Manage
Its Digital Assets
11.18
•
What are the management benefits of using
a digital asset management system?
•
How does ADAM provide value for
DaimlerChrysler?
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Organizing Knowledge: Taxonomies and Tagging
11.19
•
Taxonomy: Method of classifying things
according to a predetermined system
•
Tagging: Once a knowledge taxonomy is
produced, documents are tagged with
proper classification
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Hummingbird’s integrated knowledge management system
Figure 11-7
11.20
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Knowledge Networks
Key Functions of an Enterprise
Knowledge Network
11.21
•
Knowledge exchange services
•
Community of practice support
•
Auto-Profiling Capabilities
•
Knowledge management services
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
The problem of distributed knowledge
Figure 11-8
11.22
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
AskMe Enterprise knowledge network system
Figure 11-9
11.23
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Portals, Collaboration Tools, and Learning Management Systems
•
11.24
Teamware: Group collaboration software
running on intranets that is customized for
teamwork
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Portals, Collaboration Tools, and Learning Management Systems
•
11.25
Learning Management Systems (LMS):
Tools for the management, delivery,
tracking, and assessment of various types
of employee learning
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Enterprise-Wide Knowledge Management Systems
Window on Management
Managing Employee Learning: New
Tools, New Benefits
11.26
•
What are the management benefits of using
learning management systems?
•
How do they provide value to Alyeska and
APL
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Knowledge Work Systems
Knowledge Workers and Knowledge Work
Knowledge workers perform 3 key roles:
11.27
•
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Knowledge Work Systems
Requirements of knowledge work systems
Figure 11-10
11.28
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Knowledge Work Systems
Examples of Knowledge Work Systems
11.29
•
Computer-aided design (CAD)
•
Virtual reality systems
•
Virtual Reality Modeling Language
(VRML)
•
Investment workstations
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
Capturing Knowledge: Expert Systems
11.30
•
Knowledge Base: Model of human
knowledge
•
Rule-based Expert System: Collection in
an AI system represented in the the form of
IF-THEN
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
Capturing Knowledge: Expert Systems
11.31
•
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
Rules in an AI program
Figure 11-11
11.32
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
Inference engines in expert systems
Figure 11-12
11.33
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
Capturing Knowledge: Expert Systems
•
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
11.34
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
Examples of Successful Expert Systems
11.35
•
Galeria Kaufhof
•
Countrywide Funding Corp.
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
Organizational Intelligence: Case-Based Reasoning
•
Case-based Reasoning (CBR):
Artificial intelligence technology that
represents knowledge as a database of
cases and solutions
11.36
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Techniques
How case-based reasoning works
Figure 11-13
11.37
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Fuzzy Logic Systems
Fuzzy Logic Systems
11.38
•
Rule-based AI
•
Tolerates imprecision
•
Uses nonspecific terms called membership
functions to solve problems
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Fuzzy Logic Systems
Implementing fuzzy logic rules in hardware
Figure 11-14
11.39
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Neural Networks
Neural Networks
11.40
•
Hardware or software emulating processing
patterns of biological brain
•
Put intelligence into hardware in form of a
generalized capability to learn
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Neural Networks
How a neural network works
Figure 11-15
11.41
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Genetic Algorithms
Genetic Algorithms
11.42
•
Problem-solving methods
•
Promote evolution of solutions to specified
problems
•
Use a model of living organisms adapting
to their environment
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Genetic Algorithms
The components of a genetic algorithm
Figure 11-16
11.43
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Genetic Algorithms
Hybrid AI Systems
11.44
•
Integration of multiple AI technologies into
a single application
•
Takes advantage of best features of
technologies
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Agents
Intelligent Agents
•
11.45
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Intelligent Agents
Intelligent agent technology at work
Figure 11-17
11.46
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Management Issues for Knowledge Management Systems
Implementation Challenges
11.47
•
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Management Issues for Knowledge Management Systems
Implementation Challenges
11.48
•
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
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Management Issues for Knowledge Management Systems
Implementing knowledge management projects in stages
Figure 11-18
11.49
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Obtaining Value from Knowledge Management Systems
Obtaining Value from Knowledge Management Systems
11.50
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 enterprisewide values
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Chapter 11 Case Study
Can Knowledge Systems Help Procter & Gamble Stay Ahead of the Pack?
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?
11.51
Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm
Chapter 11 Case Study
Can Knowledge Systems Help Procter & Gamble Stay Ahead of the Pack?
11.52
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.