Laudon Mis15 PPT Ch11

Management Information Systems:
Managing the Digital Firm

Fifteenth edition
Chapter 11 H
Managing Knowledge
Copyright © 2018 Pearson Education Ltd.

Learning Objectives
•
11-1 What is the role of knowledge management systems in business?
•
11-2 What types of systems are used for enterprise-wide knowledge management, and
how do they provide value for businesses?
•
11-3 What are the major types of knowledge work systems, and how do they provide
value for firms?
•
11-4 What are the business benefits of using intelligent techniques for knowledge
management?

Video Cases
• Case 1: How IBM’s Watson Became a Jeopardy
Champion
• Case 2: Alfresco: Open Source Document
Management and Collaboration

Fiat: Real Time Management with Business
Intelligence (1 of 2)
• Problem
– Various production centers had their own database systems
– Information system challenges from purchase of Chrysler
• Solutions
– New system analyzes automobile production across divisions
– detailed view of dealer sales to final customers
– Makes data and information more understandable

Fiat: Real Time Management with Business
Intelligence (2 of 2)
• Fiat uses Oracle’s Hyperion to provide near real-
time information on its operations across the globe
• Demonstrates IT’s role in helping organizations
improve performance and remain competitive
• Illustrates the ability of IT systems to create new
efficiencies

•
11-1 What is the role of knowledge management systems in business?

What Is the Role of Knowledge
Management Systems in Business?
• Knowledge management systems among fastest growing
areas of software investment
• Information economy
– 37% U.S. labor force: knowledge and information workers
– 55% U.S. GDP from knowledge and information sectors
• Substantial part of a firm’s stock market value is related to

intangible assets: knowledge, brands, reputations, and
unique business processes
• Well-executed knowledge-based projects can produce
extraordinary ROI

Important Dimensions of Knowledge (1 of 2)
• Data, knowledge, and wisdom
• Tacit knowledge and explicit knowledge (Tacit: knowledge
reside in the mind of employees that has not been documented; explicit: knowledge that has been documented)
• Important dimensions of knowledge

– Knowledge is a firm asset. i.e. Intangible asset
– Knowledge has different forms i.e. tacit, explicit, know-how, craft, skill, email, graphic,
voice mail, structured/unstructured documents
– Knowledge has a location. i.e. minds of humans, in business process.

– Knowledge is situational/contextual. i.e. when to perform a procedure, how to use it.

https://ritholtz.com/wp-content/uploads/2010/11/data_info_knowledge_wisdom.png

Important Dimensions of Knowledge (2 of 2)
• Knowledge-based core competencies
• Key organizational assets i.e. two or three things they are good at
• Knowing how to do things effectively and efficiently in ways

others cannot duplicate is a prime source of profit and
competitive advantage
– Example: Having a unique build-to-order production system
– Organizational learning
– Process in which organizations gain experience through collection
of data, measurement, trial and error, and feedback

The Knowledge Management Value Chain
(1 of 3)
• Knowledge management
– Set of business processes developed in an organization to create,
store, transfer, and apply knowledge
• Knowledge management value chain

– Each stage adds value to raw data and information as they are
transformed into usable knowledge
 Knowledge acquisition
 Knowledge storage
 Knowledge dissemination
 Knowledge application

(2 of 3)
• Knowledge acquisition
– Documenting tacit and explicit knowledge
 Storing documents, reports, presentations, best practices
 Unstructured documents (e.g., e-mails)
 Developing online expert networks so that employee can “find the expert” in the company
– Creating knowledge
– Tracking data from TPS and external sources
• Knowledge storage
– Databases
– Document management systems
– Experts systems
– Role of management i.e. support the development of planned knowledge storage systems,
encouraging, rewarding

(3 of 3)
• Knowledge dissemination
– Portals, wikis
– E-mail, instant messaging
– Search engines, collaboration tools
– A deluge of information?
 Training programs, informal networks, and shared management experience
help managers focus attention on important information.
• Knowledge application
– New business practices
– New products and services
– New markets

Value Chain
Figure 11.1: The Knowledge Management
Investment in the Investment in the

organizational and Information
management capital Technology

Building Organizational and Management
Capital: Collaboration, Communities of
Practice, and Office Environments
• Developing new organizational roles and
responsibilities for the acquisition of knowledge
• Chief knowledge officer executives
• Dedicated staff / knowledge managers
• Communities of practice (COPs)
– Informal social networks of professionals and employees
– Activities include education, online newsletters, sharing knowledge
– Reduce learning curves of new employees

Types of Knowledge Management Systems
1. Enterprise-wide knowledge management
systems
– General-purpose firm-wide efforts to collect, store, distribute, and
apply digital content and knowledge
2. Knowledge work systems (KWS)

– Specialized systems built for engineers, scientists, other knowledge
workers charged with discovering and creating new knowledge
3. Intelligent techniques
– Diverse group of techniques such as data mining used for various
goals: discovering knowledge, distilling knowledge, discovering
optimal solutions

Figure 11.2: Major Types of Knowledge
Management Systems
management systems
Specialized ty[es of
knowledge
•
11-2 What types of systems are used for enterprise-wide knowledge management, and
how do they provide value for businesses?

What Types of Systems Are Used for
Enterprise-Wide Knowledge Management?
• Three major types of knowledge in an enterprise

– Structured documents
 Reports, presentations
 Formal rules
– Semistructured documents
 E-mails, videos
– Unstructured, tacit knowledge
• 80% of an organization’s business content is

semistructured or unstructured

Enterprise Content Management Systems
manages structured and semi-structured knowledge
• Help capture, store, retrieve, distribute, preserve

documents and semistructured knowledge
• Bring in external sources
– News feeds, research
• Tools for communication and collaboration

– Blogs, wikis, and so on
• Key problem: developing taxonomy (classification scheme)
• Digital asset management systems i.e. Coca-Cola example : it has to

keep track of all the images of the Coca-Cola brand that have been created in the past at all of the company’s world
wide offices.

Figure 11.3: An Enterprise Content
Management System
It has capabilities for classifying, organizing,

and managing structured and semistructured knowledge
and making it available throughout the enterprise.

Interactive Session: Organizations: ECM in
the Cloud Empowers New Zealand
Department of Conservation
• Class discussion
– Describe the knowledge management problem discussed in this
case study.
– What management, organization, and technology factors
contributed to the problem?
– How did implementing enterprise content management solve the
problem? How did the new ECM system change the way the DOC
worked?
– How successful was this solution? Explain.

Locating and Sharing Expertise some of the knowledge reside in the
head of individual experts (tacit knowledge)
• Provide online directory of corporate experts in

well-defined knowledge domains
• Search tools enable employees to find appropriate
expert in a company
• Social networking and social business tools for
finding knowledge outside the firm
– Saving
– Tagging
– Sharing web pages

Learning Management Systems (LMS)
• Provide tools for management, delivery, tracking, and
assessment of employee learning and training i.e. Google Class,
Blackboard, Moodle.
https://www.youtube.com/watch?v=zv5bpfxJ2xE
• Support multiple modes of learning

– CD-ROM, web-based classes, online forums, and so on
• Automates selection and administration of courses

• Assembles and delivers learning content
• Measures learning effectiveness
• Massively open online courses (MOOCs)
– Web course open to large numbers of participants

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Management Information Systems:

Managing the Digital Firm

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

• Substantial part of a firm’s stock market value is related to

Copyright © 2018 Pearson Education Ltd.

• Important dimensions of knowledge

– Knowledge has a location. i.e. minds of humans, in business process.

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

• Knowing how to do things effectively and efficiently in ways

Copyright © 2018 Pearson Education Ltd.

• Knowledge management value chain

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

Investment in the Investment in the

management capital Technology

Copyright © 2018 Pearson Education Ltd.

2. Knowledge work systems (KWS)

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

• Three major types of knowledge in an enterprise

• 80% of an organization’s business content is

Copyright © 2018 Pearson Education Ltd.

• Help capture, store, retrieve, distribute, preserve

• Tools for communication and collaboration

• Key problem: developing taxonomy (classification scheme)

• Digital asset management systems i.e. Coca-Cola example : it has to

Copyright © 2018 Pearson Education Ltd.

It has capabilities for classifying, organizing,

Copyright © 2018 Pearson Education Ltd.

Copyright © 2018 Pearson Education Ltd.

• Provide online directory of corporate experts in

Copyright © 2018 Pearson Education Ltd.

• Support multiple modes of learning

• Automates selection and administration of courses

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