1. © 2009 Pearson Education, Inc. Publishing as Prentice Hall Supporting Knowledge Work Chapter 14 Information Systems Management in Practice 8 th Edition

2. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-2 Introduction Managing knowledge Willingness to share knowledge Codifying tacit knowledge Embedding outside (of firm) knowledge Customers’ and researchers’ knowledge Real-time system Computer ethics Information privacy and intellectual property rights Challenges to existing laws and regulation

3. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-3 Companies Want to Manage Knowledge Knowledge cannot be controlled or engineered, but can be leveraged through organizational processes and culture Two states of knowledge (Nonaka) Tacit Exists within a person’s mind and is private and unique to each person Explicit Articulated, codified and made public

4. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-4 A Model For Managing Knowledge FIGURE 14-1 A Knowledge-Management Framework

5. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-5 Building Human Capital A form of intellectual capital that consists of Knowledge, skills and innovativeness of employees Company values and culture 1. Knowledge creation and capture Getting people together to share knowledge and acquiring it from outside (e.g. customers) High-touch: encouraging sharing culture, innovation

6. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-6 Building Human Capital cont’d 2. Knowledge Absorption and Reuse Getting people to internalize the knowledge (information) where it can be enhanced and reused Identifying source of organizational memory Social networks perspective  Which employee(s) in the network holds vital information?  T-managers (boundary spanners): Roles in vertical (departmental) and horizontal (inter-departmental) domains

7. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-7 British Petroleum Case Example: T-Manager Concept Researchers found that company implemented mechanisms to foster and guide managers’ knowledge-sharing activities Peer groups Defining responsibilities and roles Setting and measuring performance metrics T-manager Role as tertius iungens (bringing people together)  Egypt divisional head personally involved in 3 of 20 “peer assists” a year  Related expertise sourced directly rather than through HQ

8. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-8 Building Structural Capital Intellectual capital embedded in hardware, software, databases, organizational structure, patents and trademarks Knowledge that has been codified into tangible company asset Knowledge organization and categorization Creating metadata indexes for knowledge repositories (documents, databases)

9. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-9 A Pharmaceutical Company Case Example: Improving a Knowledge Support Process Knowledge Imperative Conference: Creating a knowledge infrastructure with the objective to improve new drug development cycle Created generic ‘knowledge tree’ of all drugs filed with Food and Drug Administration (FDA) 60,000 documents Commissioned 10-year drug study beforehand to serve as guide for development team(s) “Public” template (Post-It notes) Mental model (huge sheets of paper on the wall) Results significantly exceeded expectations

10. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-10 Skandia Future Centers Case Example: Valuing Intellectual Capital Putting a value on knowledge Aimed to find a common mechanism for establishing value and trading that value Project began as small network for exchanging knowledge Network evolved into a Web-based trading arena where people can buy and sell knowledge assets Value: When knowledge contributors feel they are on a “journey” or have “freedom”

11. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-11 Building Structural Capital cont’d Knowledge Distribution and Access “Pushing” knowledge out to users and accommodating users who “pull” information to themselves Generally, companies focus on high-tech approaches, such as implementing networks and networking tools to access human and structural capital

12. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-12 Building Customer Capital Customer capital is the strength of a company’s franchise (relationship) with its customers Put differently, it is the total discounted lifetime values of all of its customers (driven by satisfaction) Components of customer capital Brand capital Familiarity with company and its products and services Value capital Value customers place on company’s product and services as a function of price and quality Retention capital Loyalty (repeat customer)

13. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-13 A North American Bank Case Example: Building Customer Capital How to evaluate customer intangible assets to minimize risks of bank loan defaults and delinquencies? Defining and measuring customer capital Depth of knowledge about the bank within a customer’s organization Breadth of knowledge by a customer Loyalty to the bank Educating customers and aligning bank’s values with customers to strengthen those aspects Bank was able to transform into a customer-centric organization Determine customers’ needs, communicating effectively with customers, develop purposeful relationships, engendering learning (about bank) by customers

14. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-14 The Cultural Side of Knowledge Management Knowledge management: Implementing new technology yes, but we must also change organizational culture (behavior)! Focus on people’s knowledge sharing efficacy and motivations What are the cultural red flags? Behavioral Whistle blower or messenger of bad news Losing one’s place as a knowledge gatekeeper Time implications (it takes time!) Management Saying the project is not cost justifiable because benefits are intangible Concern that too much participation will reduce employee productivity Concern that creating the taxonomy of knowledge categories will be too expensive to undertake

15. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-15 Recap: Stages of KM FIGURE 14-2 Knowledge Management Stages Source: Reprinted with permission from Best Practices in Knowledge Management, Giga Information Group, 1997, www.gigaweb.com.

16. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-16 The Cultural Side of Knowledge Management cont’d How to design an information system to match what users value so that they actually will use it and gain value from it? Demand driven Roots out tacit knowledge In members’ email box every day Full of intriguing opinions The system should facilitate conversations rather than serve as a library of sorts

17. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-17 Partners Healthcare System Case Example: Design the system to match what the users value A system that delivers just-in-time knowledge to physicians Online order entry Notifications and recommendations (as drug prescription is ordered) Possible drug interactions  side effects, patient allergies New or better drugs available Event-detection mechanism  Flags event(s) that could endanger patient’s health Committees of top clinicians identify and maintain system’s knowledge bases

18. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-18 Intellectual Capital Issues Legislation to address pertinent issues on data, information, content and intellectual capital created in some, but not all countries in the world (problematic given globalization) Country and cultural variations Resolution is salient to the further development of e-commerce Four dimensions of issues in managing information

19. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-19 1. Value Issues Information’s value depends on the recipient and the context Pricing (demand and supply) as a practical way to establish the value of information Tools to increase the value of information Information maps Textual charts and diagrammatic maps  Point to location of information Information guides  People who know where the information is Documents Groupware

20. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-20 2. Usage Issues Information use is difficult to manage because Information complexity must be preserved Maintain information “richness” People do not share easily Highly competitive organizational climates and cultures (Who gets the glory?) Technology does not change culture on its own Change in basic employee values, attitudes and behaviors, and management expectations

21. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-21 3. Sharing Issues A sharing culture must exist in an organization in order to effectively implement a sharing system Technical solutions do not address the issue Change managers must work out entrenched attitudes about organizational control Balancing encouraging employees to share information and intrusive management (coercion) Limits to information sharing Do you want anarchy in your organization?

22. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-22 Social and Ecological Issues Knowledge is widely fragmented and thus its power is in the heads of a large number of stakeholders Employees, customers, partners How to get people to work together in shared vision instead of against each other (agency)?

23. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-23 Wikis A simple open source for online knowledge repository Collaborative software that allows Web pages to be created and edited using a Web browser Facilitates group work (collaboration) without face-to-face is the key feature of a wiki Knowledge creation based on trust and code of ethics Wiki for business use Low cost of acquisition (OSS) and use (built for dummies) Reasonable level of functionality, security and durability Self-organization and management of corporate knowledge (Web documents)

24. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-24 The Vast Arena of Computer Ethics

25. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-25 A Little History New technologies pose ethical issues when they introduce new possibilities for human action Mainframe era Invasion of privacy PC (desktop) era Intellectual property rights Internet era Resurfacing of all past concerns and more on a global scale  Privacy, intellectual property rights, censorship (e.g. many instances in Asia)

26. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-26 What is Computer Ethics? Ethical issues arise because of “policy vacuums” engendered by new technologies (especially the Internet) Areas of ethical concern include: Privacy Intellectual property rights Liabilities Free speech Professional conduct and accountability Should there be new laws or are there alternatives? Can we rely on traditional moral values and norms? Country and cultural variations

27. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-27 Information Privacy Privacy includes Freedom from intrusion, Right to be left alone Right to control information about oneself Freedom from surveillance Internet privacy Cookies, private information submitted on e-commerce sites Some countries have enacted laws to address such issues We all have a part to play: Things that can be done to increase information privacy protection At the national level By computer professionals By technology In institutions By individuals

28. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-28 Intellectual Property Rights Intellectual property protection is critical as many digital products and services are easily imitable Four traditional types of legal intellectual property protection Copyrights, patents, trademarks, trade secrets But the real value of such mechanisms is only proven when they can be successfully enforced during litigation

29. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-29 Legal Jurisdiction Laws are written for particular jurisdiction with clear geographic boundaries Difficult to extrapolate traditional institutions into virtual world (Internet) What is being done to cope with institutional underdevelopment on the Internet? International level (United Nations Commission on International Trade and Law) Developed a model law that supports commercial use of international contracts in e-commerce National level Adaptation and extension of existing commercial laws Firm level Placing online contracts on Web sites (“I agree”)

30. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-30 Online Contracting Contract law looks for evidence that the parties have mutually assented (i.e. agree after much deliberation) to the terms of a particular set of obligations In e-business, evidence of acceptance of a contract can be a simple click on a button saying, “I Accept” or “I Agree”

31. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-31 Clickwrap Agreements Case Example: Online contracting A “clickwrap contract” is an example of what the law calls a contract of adhesion A contract you did not really bargain over in any way, but which was presented as more of a take it or leave it offer Adhesion contracts are generally enforceable

32. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-32 Conclusion Managers need to understand the 4 stages of the knowledge lifecycle to properly facilitate knowledge work in their organizations Recap: What are the four stages and which specific approach should be used at each juncture? Managers should have at least a general understanding of the vast arena of computer-related ethical issues to set, promulgate and enforce appropriate company policies Whether adherence to national or international laws and regulations or organization-instigated (strategic or operational imperatives)

33. © 2009 Pearson Education, Inc. Publishing as Prentice Hall 14-33 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall