1 Knowledge Management Session 4

2 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?

3 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? Objectives

4 Topics 1.Knowledge Management Concepts 2.IT Techniques for Knowledge Management 3.IT Systems for Knowledge Management 4.Enterprise Knowledge Networks 5.Capturing Knowledge

5 Data Information Knowledge Wisdom Understanding Relationships Understanding Patterns Understanding Principles Increasing Complexity Increasing Context Data, Information, Knowledge and Wisdom

6 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

7 Types of Organisational Knowledge Explicit Knowledge – represented in documents, books, 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

8 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

9 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

10 The Knowledge Management Value Chain

11 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”

12 How Does Knowledge Management Create Value? Delivering the best products and services --- offerings that push performance boundaries Delivering solid products and services at the best price and with the least inconvenience Cultivating relationships to gain customer knowledge Delivering what specific stakeholders want Employee Capability Operational Excellence Product/Service Leadership Customer Intimacy Leveraging human intellectual capital in service design and delivery

13 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

14 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

15 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

16 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

17 Major types of knowledge management systems

18 Enterprise-Wide Knowledge Management Systems Structured knowledge Semistructured knowledge Knowledge repository Knowledge network

19 Enterprise-Wide Knowledge Management Systems

20 The Problem of Distributed Knowledge

21 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 – , virtual workspaces etc.

22 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

23 Hummingbird’s Integrated Knowledge Management System

24 Enterprise Information Portal

25 KPMG – KWorld Model 15 Segments KPMG Library Conferences People Clients/Targets Products & Segments 19 Products ConsultingTaxAssurance FAS Regions

26 KPMG Knowledge System Processes

27 AskMe Enterprise Knowledge Network System

28 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