Decision Support Systems Knowledge Management. Modified from Decision Support Systems and Business...

Decision Support SystemsDecision Support Systems

Knowledge ManagementKnowledge Management

Modified from Decision Support Systems and Business Intelligence Systems 9E.

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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


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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


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Opening Vignette:Opening Vignette:

“MITRE Knows What It Knows Through Knowledge Management”

Company backgroundProblem descriptionProposed solutionResultsAnswer and discuss the case questions


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Opening Vignette:Opening Vignette:MITRE’s View to the KM MITRE’s View to the KM ProcessProcess

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


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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


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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”



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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


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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


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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


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Explicit and tacit knowledge Tacit (embedded) knowledge

Knowledge 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


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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


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Organizational Organizational Learning and Learning and Transformation 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”


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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!


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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?


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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


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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


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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


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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?


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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


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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


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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


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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


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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


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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


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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 Comprehensive A Comprehensive View to View to Knowledge Knowledge RepositoryRepository


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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


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


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Capture Knowledge

Refine Knowledge

Store Knowledge

Manage Knowledge

Disseminate Knowledge

Create Knowledge

1

2

3

4

5

6


The Cyclic Model of The Cyclic Model of Knowledge ManagementKnowledge Management


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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)


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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


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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


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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


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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)


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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


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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


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KM System KM System Implementation 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…


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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


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Software development tools Knowledge harvesting tools Search engines Knowledge management

suites Knowledge management

consulting firms Knowledge management ASPs


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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…


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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


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Ensuring the Success of Ensuring the Success of Knowledge Management Knowledge Management Efforts Efforts Factors that lead to 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


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Factors that lead to knowledge 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


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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


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End of the ChapterEnd of the Chapter

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