There is still not a unified view for the concept of KM and BI and the relationship between the two in academia and the business world. This paper is trying to provide a thorough analysis of the differences between BI and KM and to establish a framework for relating one field to the other.
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Integration :Knowledge Management and Business Intelligence
There is still not a unified view for the concept of KM and BI and the relationship between the two in academia and the business world. This paper is trying to provide a thorough analysis of the differences between BI and KM and to establish a framework for relating one field to the other.
There is still not a unified view for the concept of KM and BI and the relationship between the two in academia and the business world. This paper is trying to provide a thorough analysis of the differences between BI and KM and to establish a framework for relating one field to the other.
2011 Fourth International Conference on Business Intelligence and Financial Engineering
Integration :Knowledge Management and Business Intelligence
Peng Cheng
Lei Cheng
Hubei Academy of Scientific and Technical Information
Dept.of Information Mangement and Information System
CCNU Wu Han, China chenglei5288@hotmail.com
Wuhan
AbstractAs business competition intensifies
and the market environment becomes increasingly complex, more and more enterprises learn to make use of Knowledge Management (KM) and Business Intelligence (BI) in order to improve corporate decision-making capacity and efficiency. However, there is still not a unified view for the concept of KM and BI and the relationship between the two in academia and the business world, which may bring about confusion and errors in theory study and application. this paper is trying to provide a thorough analysis of the differences between BI and KM and to establish a framework for relating one field to the other. And it comes to a conclusion that in business management and decision-making process, both BI and KM must be effectively integrated to give full play to their complementary functions. Keywords- Knowledge management; Business Intelligence ;
author concerned, Business Intelligence refers to a
transition from a variety of data (within and outside of the enterprise) to information (or knowledge) for business decisions so as to help enterprise managers make scientific decisions and enhance its competitive advantages. The same situation occurs in the research development of Knowledge Management (KM). Scholars come up with the definition of KM from different perspectives and there is still no conclusion even now. Peter F. Drucker, professor from Harvard University first proposed the concept of knowledge management. He believes that Knowledge management is to provide knowledge and existing knowledge to find effective and how to use knowledge to produce the best results. And stressed that knowledge management should be based on learning organization [3] Narrow knowledge management mainly refers to the management of knowledge itself, including knowledge creation, acquisition, processing, storage, dissemination and application. On the other hand, generalized knowledge management includes not only knowledge management, but also management of various resources related to knowledge. KM system is a platform which organizes and implements KM, it includes management tools which tackle explicit knowledge and tacit knowledge. It can collect, collate, transfer, share knowledge, and achieve the conversion from tacit knowledge to explicit knowledge through the socialization, internalization, externalization and combination of knowledge, thus creating new knowledge. [4]
comparison analysis ,Integration
I.
BACKGROUND
Business Intelligence (BI) derived from the
decision-making support technology in 1970s, which later experiences a gradual and complex evolution including Transaction Processing System (TPS), Executive Information System (EIS), Management Information Systems (MIS), Decision Support System (DSS) and other stages, [1]. In 1996, Gartner Group [2] defined BI as a series of technology or application systems which consist of data warehouse (or data mart), reporting, data analysis, data mining, data backup and recovery components, and which contribute to a better business decision and finally can help enterprises to keep a leading position in the competitive market. Today, there is still not a unified and accepted concept of BI. As far as the 978-0-7695-4527-1/11 $26.00 2011 IEEE DOI 10.1109/BIFE.2011.172
China
chengpeng@hbsti.ac.cn
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II.
knowledge resources, and knowledge sharing and
innovation are the primary goals of it. It attaches importance to the interaction of explicit knowledge and tacit knowledge, encourages knowledge innovation, and strives to create a corporate culture of knowledge sharing and operational mechanisms. For organizations, BI copes with objective information in the real-world, while KM systems tend to process subjective and personal knowledge, including a large number of explicit and easily-copied knowledge in the real world and hidden knowledge stored in the individual mind which is hardly directly accessible, such as people's thoughts, skills, experiences and perspectives. (3)Core technology. BI attaches more significance to data analysis and its core technologies consist of data warehousing, online analytical processing, data mining and enterprise information portals. On the other hand, the core technologies of KM involve document management, groupware technology, text mining and retrieval technology, enterprise knowledge portals and so on.
COMPARISION OF KNOWLEDGE MANAGEMENT AND
BUSINESS INTELLIGENCE
Similarity of BI and KM. [5-6]
(1) They are both based on information technology. BI and KM both rely on the Internet, computer hardware, software, database storage and network communication technology. (2) Their application in business processes both includes collecting, collating, sharing and the use of information and knowledge, and they both achieve their functions depending on information and knowledge. KM and BI interact with each other and complement each other. (3) Subjectiveness of man is both emphasized in the application of them. KMs object is knowledge, and it particularly concerned about humans who master knowledge, their culture and behavior. It emphasizes the importance of the knowledge innovation and whether it is used effectively. BI initially focused on technology and data, the applied effect of which in fact is closely related to users skills as people normally use quantitative analysis of technical expertise to solve business problems with the aid of business intelligence systems.
A.
III.
Differences between KM and BI
(1) Connotation. BI evolved through transaction processing systems, administrative information systems, management information systems, decision support systems and so on. KM is the management ideas and methods in the development of the knowledge economy era. It stressed that knowledge is the most important resource and strategic capital, the corporate competitive advantage depends on knowledge creation, dissemination and utilization. KM focuses on capturing, sharing, distribution of nonstructured text and graphical information .. (2) Focus. BI mainly deals with information resources. As its objective is to make information resources orderly and structured, the whole process of BI is relatively closed and independent, and it pays more attention to the combination and integration of the external morphology of information. While the KM systems deal with
RESEARCH STATUS OF THE RELATIONSHIP
BETWEEN KM AND BI
B.
Current research status abroad
Richard T. Herschel and Nory E. Jones [7] look BI as a subset of KM. They believe that BI focuses on explicit knowledge, while KM includes both tacit knowledge and explicit knowledge. Both of them work well in facilitating learning, decision making and understanding. Cook and Cook consider [8] that knowledge management and business intelligence are both derived from enterprise management theory and supported by technology. BI helps organizations to increase the value of information, but it is unable to integrate non-quantitative data. 80% of corporate business information is unstructured or semi-structured. To extract useful information and knowledge from the unstructured text is more valuable to the enterprise. Okkonen J. finds[9] that the knowledge management and business intelligence are to some
A.
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extent cross. BI converts data into information and
intelligence, and KM systems add significance to such information and intelligence. Kadayam thinks[10] that KM and BI should be integrated. He claims that rapid technology development is building a bridge between KM and BI, and their integration will deepen and broaden the search for knowledge and information, in the meantime it will increase the value, movements and investment returns of intelligence. At present, some enterprises have started to develop an integrated platform of KM and BI. IBM [11] proposes that although KM is not as mature as BI, as time goes by, the systems will learn from each other and stimulate new methods for utilization, which results in a joint work, and this hybrid system is called KMBI. Nemati [12] believes that only if KM and BI are integrated can corporate decision making and corporate behavior be improved. They urged that the new generation of knowledge systems should capture, screen, store, organize and disseminate not only data and information, but also business knowledge. They suggest that knowledge warehouse can be an extension of data warehouse model. It will be beneficial to knowledge capture and coding, and also improve the reuse and sharing knowledge in an organization.
KM system and information system, which results
in a lack of knowledge storage and processing capabilities of the enterprise. Actually, knowledge management plays an important part throughout the course of business as well as data management and information management and it is an integral part of business activities. Thereby, the existing knowledge management systems need to be integrated with enterprise information systems in order to meet the needs for enterprise knowledge management. Because business intelligence systems are closely relevant to enterprise information systems, the integration of KM and BI can closely relate KM to information systems in the enterprise. This paper defies the integration result of BI and KM systems as KMBI framework. According to the hierarchical design ideas of information system development, KMBI can be divided into three layers: data integration, function integration and presentation integration. Data layer: The data layer of the BI system includes a variety of underlying database and information resources from CRM, ERP and SCM system in the enterprise. The knowledge base of KM system is made up of internal and external information and is responsible for responding to search requests, the storage management of knowledge and so on. The integration of KM and BI on the data layer realizes the integration of distributed and heterogeneous data by middleware and some other technology.
Current research status in China
In China, Liu Li [13] proposes that knowledge management is a necessary means and a booster to business intelligence. Zhu Xiaowu [14] holds the point that business intelligence is using a specific method to solve the problem of knowledge sharing in knowledge management. Jane Chenfu [15] considers that the information gained by enterprise is a source of enterprise knowledge, and it should be involved in the system of knowledge management so that it can be diffused and shared. B.
IV.
Logical layers: The logical layer integrates key
functions of KM and BI. The function modules comply with the principles of high cohesion and low coupling. The logical layer helps to the comprehensive analysis and exchange of enterprise data, information and knowledge. User level: The user level is the interface of the user with the system. KM and BI share terminal technology in the access to content and the display of it.The integration of KMBI platform further integrates knowledge management and business intelligence and thus the corporate intelligence portal is formed,
RESEARCH ON THE INTEGRATION OF KM AND BI
At present, in enterprise the KM system is
usually independent from the information system, or is as a separate module connected through the interface to the information systems. Consequently, the links especially data links is missing between
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and they have different system framework.
Therefore, the integration of them should be based on their common characteristics. The integrated KMBI system can maximize user productivity, provide enterprise customers with the best service, realize the analysis and utilization of a variety of data, information and knowledge by enterprise decision makers, improve the quality and speed of decision making and enhance competitive advantage. References [1] JIN ZHouComparative Business Intelligence and Knowledge Management Comparative [J] INFORMATION MAGAZNE2007(3)8081 [2]Anderson,M ,Hitten,D ,Lett,B OIS scenario:The emerging electronic workplace[R]Gartner Group,ROIS126,1996 [3@ Peter F Drucker. Knowledge management [M]. Harvard Business Review,;: 1998 [4] Nonaka,I,Takeuchi,HThe knowledgecreating mpany[M]New York:Oxford University Press,1995 [5] Yan Jian -yuan. the Relationship for Knowledge Management System and Information Management System [J]. Tianjin: Nankai Business Review, 1999(1):4146 [6] Keeley,CP,Davenport,THKM meets business ntelligence:Merging knowledge and information at Intel[J] Knowledge Management Review,2006,2:1015 [7]Herschel,RT,Jones,NEKnowledge management and business intelligence:The importance of integration[J]Journal of Knowledge Management,2005,9(4):4555 [8]Cook,C,Cook,MThe convergence of knowledge management and business intelligence[EBOL][20080108]http:www brintcommembersonline20080108intelligence,2000 [9]Okkonen,J,Pirttim?ki,V,Hannula,M,et alTriangle of Business Intelligence,performance measurement and Knowledge Management[C]2nd Annual Conference on Innovative Research in Management,May 911,2002,Stockholm, Sweden [10]Kadayam,SNew business intelligence:The promise of knowledge management,the ROI of Business Intelligence[EBOL][200205 14]http:wwwkmworldcom publications whitepapersKM2kadayampdf,2002 [11]Coay,WF,Kreulen,JT,Krishna,V,et alThe integration of business intelligence and knowledge management[J]IBM Systems Journal,2002,4:697713 [12]Nemati,H,Steiger,D,et alKnowledge warehouse:An architectural integration of knowledge kanagement,decisionsupport[J]Artificial Intelligence and Data Warehousing,Decision Support Systems,2002,33:143161 [13] Liu Li, Wang Pingdeng. Business Intelligence Knowledge Management System [J]. Harbin: Harbin Institute of Technology University, 2007,39(7):11421145 [14] Zhu Xiaowu. Theory and Application of Business Intelligence Review [J]. Beijing: ComputerSystem applications 2007(1):114117 [15] Jane Chen Fu. Decision Analysis and Management: a comprehensive framework for decision-making and methods to enhance the quality of [M]. Beijing: Tsinghua University Publishing
Figure 1.KM-BI Intelligence ;framework
which is able to provide more convenient
information and knowledge service for decisionmaking and management. Employees can easily query and acquire knowledge in the knowledge base in order to share and exchange knowledge, and they can constantly enrich and update the knowledge base. They can also obtain real-time business data, and use OLAP, data mining and text mining technology to get the law or new knowledge from a large number of data resources, and store the proven knowledge of laws into the knowledge base to achieve knowledge re-use and innovation. Decision-makers combine data, information and knowledge with specific business processes into systematic knowledge which is used to guide the actual work. V.
CONCLUSION
From the above analysis of KM and BI, we can
safely draw a conclusion that KM and BI are complementary as they develop as systems in their respective fields with an independent functions