1. Business Policy & Strategy Chapter 12
Management Information Systems
Murdick, Moor, Babson & Tomlinson
Sixth Edition, 2000

2. Intellectual capital and Knowledge
The Old Economy vs. the New Economy
Transformation to factors of production
Intellectual capital has become the primary input for business operations
Toffler, Drucker, and Romer
Engendered the notion of the “knowledge economy”
Intellectual capital the major impetus of contemporary economic study
Primary determinant of economic well-being

3. The Need for Knowledge Management
Strategy for knowledge management is a primary implement for the fulfillment of the company’s vision and mission.
Successful strategy is contingent upon the identification, capture, and dissemination of information to certain vital areas.

4. Knowledge Management and Processes
Integrating knowledge management
Knowledge management is inseparable from core processes
Successful implementation involves suffusion throughout the organization
Knowledge management serves to compliment overall strategy

5. Knowledge Management and Processes
Knowledge Capture
Surmounting obstacles of knowledge capture
Focus on integral processes encumbers knowledge capture
Isolation from key processes precludes effective identification
Facilitating mechanisms

6. Knowledge Management and Processes
Knowledge Life Cycle
Knowledge captured from internal or external sources
Knowledge is then classified, evaluated, and considered with regard to its usefulness and accessibility
Potential improvements
Obsolescence

7. Knowledge Management and People
Knowledge Users
Conflict of primary responsibilities and knowledge capture
Incorporating knowledge capture as a norm
Knowledge Managers
Chief Information Officer (CIO) or Chief Knowledge Officer (CKO)
Responsible for the overall knowledge assets of the company and promulgating areas into which the organization should evolve
Implementing suitable technology infrastructure
Coordination of cross-departmental knowledge sharing activities

8. Future Implications Knowledge Management continues to gain relevance
Indispensable with regard to organizational success
Progressing knowledge refinement
Sharing of individual knowledge into organizational learning is the most difficult challenge facing leaders

9. Functions of MIS Data vs. Information Information Systems Collect data
Store and update data
Process data into information
Present info. to users

10. Collecting Internal & External Data
Data must be:
Relevant
Accurate
Timely
Obtained through:
Internal sources
External sources

11. Storing Data and Manual/Automatic Updating
MIS must be:
Capable of storing data until needed
Able to update stored data regularly
Data can be updated manually or automatically

12. Processing Data Assumption?
Data is of use to managers
Some data used in form which they are stored
Avoid analysis paralysis with too much data not needed by employees and managers in circulation
Some must be transformed into useful form
called Data processing

13. Presenting Data and Information
Useful forms:
Tables, reports, graphs, charts
Must be appropriate
Sales
Costs
100 50

14. Hardware and Software
Hardware changes in that we no longer use huge mainframes in most businesses. Technology is feasible in terms of affordability of hardware for quick data processing speeds
Software development
database management
graphics
spreadsheets
word processing
desktop publishing
accounting
communications

15. Internet, Intranet, Extranet
Internet – worldwide network
Intranet – internet within a firm
Extranets – use of internet for communication between organization and its specific members in its environment

16. REASONING AND DECISIONS
DECISION SUPPORT SYSTEM (DSS)
Enables Users to solve complex, unstructured problems
Assists in design of: mergers, acquisitions, plant expansions, new product development, and investment management
GROUP DECISION SUPPPORT SYSTEM (GDSS)
Allows several people to simultaneously work on a file or database and work together on computer networks
Facilitates: information exchange, group decision making, work scheduling, and other forms of group activity without requirements of face to face meetings

17. REASONING AND DECISIONS
ARTIFICIAL INTELLIGENCE AND EXPERT SYSTEMS (AI)
Attempts to give computers humanlike capabilities
Using computer systems with capacity to reason and deal with difficult issues of judgment
To offer consistent and expert advice for routine types of problems when managers may not be available 24 hours a day to make decisions

18. CONVERGING TECHNOLOGIES AND THE MANAGEMENT CHALLENGE
Information technology involves more than just computers: faxing, television and television cable systems, satellites, etc
Goes beyond providing information
Managerial roles of planning, organizing, and controlling
Handles interactions with customers, suppliers, business allies, and others outside the organization
This has greatly reduced the need for managers in areas of routine analytical and control activities

19. CONVERGING TECHNOLOGIES AND THE MANAGEMENT CHALLENGE cont.
Challenge for management is to stay on top of rapidly changing technology and to look ahead and forecast what is to be done for the organization
Creating a MIS Checklist may help with challenges
Does your firm audit the database to determine data that is now obsolete or has been modified?

20. Knowledge Management at work
Acer Corp.
ideas.com
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