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Decision support and BI systems ch11

Decision Support and
Business Intelligence
Systems
(9th Ed., Prentice Hall)
Chapter 11:
Knowledge Management


Learning Objectives










11-2


Define knowledge and describe the
different types of knowledge
Describe the characteristics of knowledge
management
Describe organizational learning and its
relationship to knowledge management
Describe the knowledge management
cycle
Describe the technologies that can be
used in a knowledge management system

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Learning Objectives










11-3

Describe different approaches to knowledge
management
Describe the chief knowledge officer and
others involved in knowledge management
Describe the role of knowledge
management in organizational activities
Describe the different ways of evaluating
intellectual capital in an organization
Describe how KMS are implemented

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall



Learning Objectives








11-4

Describe the roles of technology,
people, and management in knowledge
management
Describe the benefits and drawbacks of
knowledge management initiatives
Describe how knowledge management
can revolutionize the way an
organization functions
The future of KN: Web 2.0 and beyond…

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Opening Vignette:
“MITRE Knows What It Knows Through Knowledge
Management”

11-5



Company background



Problem description



Proposed solution



Results



Answer and discuss the case questions

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Opening Vignette:
MITRE’s View to the KM Process

11-6

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Introduction to
Knowledge Management


Knowledge management concepts and definitions


Knowledge management

The active management of the expertise
in an organization. It involves collecting,
categorizing, and disseminating
knowledge


Intellectual capital

The invaluable knowledge of an
organization’s employees

11-7

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Introduction to
Knowledge Management


Knowledge is


information that is contextual, relevant, and actionable



understanding, awareness, or familiarity acquired through
education or experience



anything that has been learned, perceived, discovered,
inferred, or understood.

In a knowledge management system, “knowledge is
information in action”

11-8

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Introduction to
Knowledge Management

11-9

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Introduction to
Knowledge Management


Characteristics of knowledge









11-10

Extraordinary leverage and increasing
returns
Fragmentation, leakage and the need to
refresh
Uncertain value
Uncertain value of sharing

Knowledge-based economy
The economic shift from natural resources
to intellectual assets

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Introduction to
Knowledge Management


Explicit and tacit knowledge


Explicit (leaky) knowledge
Knowledge that deals with objective, rational, and
technical material (data, policies, procedures, software,
documents, etc.)

11-11



Easily documented, transferred, taught and learned



Examples…

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Introduction to
Knowledge Management


Explicit and tacit knowledge


Tacit (embedded) knowledge
Knowledge that is usually in the domain of subjective,
cognitive, and experiential learning

11-12



It is highly personal and hard to formalize



Hard to document, transfer, teach and learn



Involves a lot of human interpretation



Examples…

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Introduction to
Knowledge Management


Knowledge management systems (KMS)
A system that facilitates knowledge management by
ensuring knowledge flow from the person(s) who know
to the person(s) who need to know throughout the
organization; knowledge evolves and grows during the
process

11-13

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Organizational
Learning and Transformation


Learning organization
An organization capable of learning from its past
experience, implying the existence of an organizational
memory and a means to save, represent, and share it
through its personnel



Organizational memory
Repository of what the organization “knows”

11-14

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Organizational
Learning and Transformation


11-15

Organizational learning


Development of new knowledge and insights that have
the potential to influence organization’s behavior



The process of capturing knowledge and making it
available enterprise-wide



Need to establish corporate memory



Modern IT helps…



People issues are the most important!

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Organizational
Learning and Transformation


Organizational culture
The aggregate attitudes in an organization concerning a
certain issue (e.g., technology, computers, DSS)

11-16



How do people learn the “culture”?



Is it explicit or implicit?



Can culture be changed? How?



Give some examples of corporate culture: Microsoft,
Google, Apple, HP, GM, …

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Organizational
Learning and Transformation


11-17

Why people don’t like to share knowledge:

Lack of time to share knowledge and time to
identify colleagues in need of specific knowledge

Fear that sharing may jeopardize one’s job security

Low awareness and realization of the value and
benefit of the knowledge others possess

Dominance in sharing explicit over tacit knowledge

Use of a strong hierarchy, position-based status,
and formal power

Insufficient capture, evaluation, feedback,
communication, and tolerance of past mistakes

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Organizational
Learning and Transformation


11-18

Why people don’t like to share knowledge:

Differences in experience and education levels

Lack of contact time and interaction between
knowledge sources and recipients

Poor verbal/written communication and
interpersonal skills

Age, gender, cultural and ethical defenses

Lack of a social network

Ownership of intellectual property

Lack of trust in people because they may misuse
knowledge or take unjust credit for it

Perceived lack of accuracy/credibility of
knowledge

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Knowledge Management
Activities


Knowledge management initiatives and activities


11-19

Most knowledge management initiatives have one of
three aims:
1.

To make knowledge visible

2.

To develop a knowledge-intensive culture

3.

To build a knowledge infrastructure

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Knowledge Management
Activities

11-20



Knowledge creation is the generation of new insights,
ideas, or routines



Four modes of knowledge creation:


Socialization



Externalization



Internalization



Combination



Analytics-based knowledge creation?

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Knowledge Management
Activities
Knowledge sharing



11-21



Knowledge sharing is the willful explication of one
person’s ideas, insights, experiences to another individual
either via an intermediary or directly



In many organizations, information and knowledge are
not considered organizational resources to be shared but
individual competitive weapons to be kept private

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Knowledge Management
Activities
Knowledge seeking



11-22



Knowledge seeking (knowledge sourcing) is the search
for and use of internal organizational knowledge



Lack of time or lack of reward may hinder the sharing of
knowledge or knowledge seeking

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Approaches to
Knowledge Management


Process approach to knowledge
management attempts to codify
organizational knowledge through
formalized controls, processes and
technologies




Practice approach focuses on building the
social environments or communities of
practice necessary to facilitate the sharing
of tacit understanding


11-23

Focuses on explicit knowledge and IT

Focuses on tacit knowledge and socialization

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Approaches to
Knowledge Management


Hybrid approaches to knowledge management




Hybrid
at
80/20
to
50/50

11-24



The practice approach is used so that a repository stores
only explicit knowledge that is relatively easy to document
Tacit knowledge initially stored in the repository is contact
information about experts and their areas of expertise
Increasing the amount of tacit knowledge over time
eventually leads to the attainment of a true process
approach

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


Knowledge Management A Demand Led Business
Supply-driven vs. demand-driven KM
Activity


11-25

Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall


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