10.1 © 2003 by Prentice Hall 10 MANAGING KNOWLEDGE FOR THE DIGITAL FIRM Chapter

10.2 © 2003 by Prentice Hall Why do businesses today need knowledge management programs and systems for knowledge management?Why do businesses today need knowledge management programs and systems for knowledge management? Which information system applications are most useful for distributing, creating, and sharing knowledge in the firm?Which information system applications are most useful for distributing, creating, and sharing knowledge in the firm? What are the business benefits of using artificial intelligence technology for knowledge management?What are the business benefits of using artificial intelligence technology for knowledge management? Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OBJECTIVES

10.3 © 2003 by Prentice Hall How can businesses use expert systems and case-based reasoning to capture knowledge?How can businesses use expert systems and case-based reasoning to capture knowledge? How can organizations benefit from using use neural networks and other intelligent techniques?How can organizations benefit from using use neural networks and other intelligent techniques? OBJECTIVES Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.4 © 2003 by Prentice Hall Designing knowledge systems that genuinely enhance organizational performanceDesigning knowledge systems that genuinely enhance organizational performance Creating robust expert systemsCreating robust expert systems MANAGEMENT CHALLENGES Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.5 © 2003 by Prentice Hall Organizational learning Creation of new standard operating procedures and business processesCreation of new standard operating procedures and business processes Knowledge management Set of processesSet of processes Creates, gathers, stores, maintains, and disseminates knowledgeCreates, gathers, stores, maintains, and disseminates knowledge KNOWLEDGE MANAGEMENT IN THE ORGANIZATION Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Organizational Learning and Knowledge Management

10.6 © 2003 by Prentice Hall Chief Knowledge Officer (CKO) Senior executive in charge of organization’s knowledge management programSenior executive in charge of organization’s knowledge management program KNOWLEDGE MANAGEMENT IN THE ORGANIZATION Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Organizational Learning and Knowledge Management

10.7 © 2003 by Prentice Hall Tacit Knowledge Expertise and experience not formally documentedExpertise and experience not formally documented Best Practices Successful solutions or problem-solving methods developed by specific organization or industrySuccessful solutions or problem-solving methods developed by specific organization or industry KNOWLEDGE MANAGEMENT IN THE ORGANIZATION Systems and Infrastructure for Knowledge Management Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.8 © 2003 by Prentice Hall Organizational Memory Stored learning from organization’s historyStored learning from organization’s history Used for decision making and other purposesUsed for decision making and other purposes KNOWLEDGE MANAGEMENT IN THE ORGANIZATION Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Systems and Infrastructure for Knowledge Management

10.9 © 2003 by Prentice Hall IT Infrastructure for Knowledge Management KNOWLEDGE MANAGEMENT IN THE ORGANIZATION Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Figure 10-1

10.10 © 2003 by Prentice Hall Consists of creating or processing informationConsists of creating or processing information Divided into knowledge workers and data workersDivided into knowledge workers and data workers INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Information Work

10.11 © 2003 by Prentice Hall Office systems Manage and coordinate work of data and knowledge workersManage and coordinate work of data and knowledge workers Connect work of local information workers with all levels and functions of organizationConnect work of local information workers with all levels and functions of organization Connect organization to external worldConnect organization to external world Example: Word processing, voice mail, and imagingExample: Word processing, voice mail, and imaging INFORMATION AND KNOWLEDGE WORK SYSTEMS Distributing Knowledge: Office and Document Management Systems Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.12 © 2003 by Prentice Hall INFORMATION AND KNOWLEDGE WORK SYSTEMS The Three Major Roles of Offices Figure 10-2 Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.13 © 2003 by Prentice Hall Document imaging systems Convert documents and images into digital formConvert documents and images into digital form Can be stored and accessed by the computerCan be stored and accessed by the computerJukebox Device for storing and retrieving many optical disksDevice for storing and retrieving many optical disks Typical Office Systems INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.14 © 2003 by Prentice Hall INFORMATION AND KNOWLEDGE WORK SYSTEMS Components of an Imaging System Figure 10-3 Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.15 © 2003 by Prentice Hall INFORMATION AND KNOWLEDGE WORK SYSTEMS Web Publishing and Document Management Figure 10-4 Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.16 © 2003 by Prentice Hall Knowledge Work Systems (KWS) Information systemInformation system Aid knowledge workers in creation and integration of new knowledgeAid knowledge workers in creation and integration of new knowledge Creating Knowledge: Knowledge Work Systems INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.17 © 2003 by Prentice Hall Changes in the Construction Project Management Process INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Figure 10-5

10.18 © 2003 by Prentice Hall Specialized toolsSpecialized tools User-friendly interfaceUser-friendly interface Requirements of Knowledge Work Systems INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.19 © 2003 by Prentice Hall Requirements of Knowledge Work Systems INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Figure 10-6

10.20 © 2003 by Prentice Hall Computer-aided design (CAD)Computer-aided design (CAD) Virtual reality systemsVirtual reality systems Virtual Reality Modeling Language (VRML)Virtual Reality Modeling Language (VRML) Investment workstationsInvestment workstations Examples of Knowledge Work Systems INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.21 © 2003 by Prentice Hall GroupwareGroupware Intranets and Enterprise Knowledge EnvironmentsIntranets and Enterprise Knowledge Environments Enterprise information portalsEnterprise information portals TeamwareTeamware Sharing Knowledge: Group Collaboration Systems and Enterprise Knowledge Environments INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm

10.22 © 2003 by Prentice Hall An Enterprise Information Portal INFORMATION AND KNOWLEDGE WORK SYSTEMS Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm Figure 10-7

10.23 © 2003 by Prentice Hall Effort to develop computer-based systems that behave as humansEffort to develop computer-based systems that behave as humans ARTIFICIAL INTELLIGENCE Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm What is Artificial Intelligence?

10.24 © 2003 by Prentice Hall Artificial Intelligence:Artificial Intelligence: –Stores information in active form –Creates mechanism not subjected to human feelings –Eliminates routine and unsatisfying jobs –Enhances organization’s knowledge base –Generates solution to specific problems Why Business is Interested in Artificial Intelligence Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE

10.25 © 2003 by Prentice Hall The Artificial Intelligence Family Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE Figure 10-8

10.26 © 2003 by Prentice Hall Knowledge BaseKnowledge Base Rule-based Expert SystemRule-based Expert System Rule BaseRule Base Knowledge FramesKnowledge Frames Capturing Knowledge: Expert Systems Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE

10.27 © 2003 by Prentice Hall Rules in an AI Program Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE Figure 10-9

10.28 © 2003 by Prentice Hall AI shellAI shell Inference EngineInference Engine Forward ChainingForward Chaining Backward ChainingBackward Chaining Capturing Knowledge: Expert Systems Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE

10.29 © 2003 by Prentice Hall Frames to Model Knowledge Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE Figure 10-10

10.30 © 2003 by Prentice Hall Inference Engines in Expert Systems Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE Figure 10-11

10.31 © 2003 by Prentice Hall Knowledge engineer Specialist eliciting information and expertise from other professionalsSpecialist eliciting information and expertise from other professionals Translates information into set of rules, or frames, for an expert systemTranslates information into set of rules, or frames, for an expert system Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE Building an Expert System

10.32 © 2003 by Prentice Hall BlueCross BlueShield of North CarolinaBlueCross BlueShield of North Carolina Countrywide Funding Corp.Countrywide Funding Corp. Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE Examples of Successful Expert System

10.33 © 2003 by Prentice Hall Case-based Reasoning (CBR) Artificial intelligence technologyArtificial intelligence technology Represents knowledge as database of cases and solutionsRepresents knowledge as database of cases and solutions Organizational Intelligence: Case Based Reasoning Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE

10.34 © 2003 by Prentice Hall How Case-Based Reasoning Works Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm ARTIFICIAL INTELLIGENCE Figure 10-12

10.35 © 2003 by Prentice Hall Hardware or software emulating processing patterns of biological brainHardware or software emulating processing patterns of biological brain Put intelligence into hardware in form of a generalized capability to learnPut intelligence into hardware in form of a generalized capability to learn Neural Networks Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES

10.36 © 2003 by Prentice Hall Biological Neurons of a Leech Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES Figure 10-13

10.37 © 2003 by Prentice Hall Artificial Neural Network with Two Neurons Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES Figure 10-14

10.38 © 2003 by Prentice Hall A Neural Network Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES Figure 10-15

10.39 © 2003 by Prentice Hall Rule-based AIRule-based AI Tolerates imprecisionTolerates imprecision Uses nonspecific terms called membership functions to solve problemsUses nonspecific terms called membership functions to solve problems Fuzzy Logic Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES

10.40 © 2003 by Prentice Hall Implementing Fuzzy Logic Rules in Hardware Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES Figure 10-16

10.41 © 2003 by Prentice Hall Problem-solving methodsProblem-solving methods Promote evolution of solutions to specified problemsPromote evolution of solutions to specified problems Use a model of living organisms adapting to their environmentUse a model of living organisms adapting to their environment Genetic Algorithms Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES

10.42 © 2003 by Prentice Hall The Components of a Genetic Algorithm Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES Figure 10-17

10.43 © 2003 by Prentice Hall Integration of multiple AI technologies into a single applicationIntegration of multiple AI technologies into a single application Takes advantage of best features of technologiesTakes advantage of best features of technologies Hybrid AI Systems Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES

10.44 © 2003 by Prentice Hall Software programsSoftware programs Use built-in or learned knowledge base to carry out specific, repetitive, and predictable tasksUse built-in or learned knowledge base to carry out specific, repetitive, and predictable tasks Intelligent Agents Essentials of Management Information Systems Chapter 10 Managing Knowledge for the Digital Firm OTHER INTELLIGENT TECHNIQUES

10.45 © 2003 by Prentice Hall 10 MANAGING KNOWLEDGE FOR THE DIGITAL FIRM Chapter