Turban Dss9e 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
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
Opening Vignette:
MITRE Knows What It Knows
Through Knowledge Management
Company background
Problem description
Proposed solution
Results
Answer and discuss the case
questions
11-5
Opening Vignette:
MITREs View to the KM Process
11-6
Introduction to
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
organizations employees
11-7
Introduction to
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
Introduction to
11-9
Introduction to
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
Introduction to
Explicit and tacit knowledge
11-11
Explicit (leaky) knowledge

Knowledge that deals with objective,
rational, and technical material (data,
policies, procedures, software,
documents, etc.)
Easily documented, transferred,
taught and learned
Examples
Introduction to
Explicit and tacit knowledge
11-12
Tacit (embedded) knowledge

Knowledge that is usually in the domain
of subjective, cognitive, and experiential
learning
It is highly personal and hard to formalize
Hard to document, transfer, teach and
learn
Involves a lot of human interpretation
Examples
Introduction to
11-13
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
Organizational
Learning and Transformation
11-14
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
Organizational
Organizational learning
11-15
Development of new knowledge and

insights that have the potential to
influence organizations 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!
Organizational
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,
Organizational
11-17
Why people dont 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 ones 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
Organizational
11-18
Why people dont 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
Activities
initiatives and activities
Most knowledge management

initiatives have one of three aims:
1.
2.
3.
11-19
To make knowledge visible

To develop a knowledge-intensive
culture
To build a knowledge infrastructure
Activities
Knowledge creation is the
generation of new insights, ideas,
or routines
Four modes of knowledge creation:
11-20
Socialization
Externalization
Internalization
Combination
Analytics-based knowledge creation?
Activities
Knowledge sharing
11-21
Knowledge sharing is the willful

explication of one persons 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
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
Approaches to
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
Approaches to
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
Knowledge Management A Demand Led Business

Supply-driven vs. demand-driven KM
Activity
11-25
Approaches to
11-26
Best practices
In an organization, the best methods
forsolving problems. These are often
stored in the knowledge repository of
a knowledge management system
Knowledge repository is the actual
storage location ofknowledge in a
knowledge management system.
Similar in nature to a database, but
generally text-oriented
A
Comprehensi
ve View to
Knowledge
Repository
11-27
Approaches to
Knowledge
Management
Approaches to
Developing a knowledge repository
11-28
Knowledge repositories are developed

using several different storage
mechanisms in combination
The most important aspects and
difficult issues are making the
contribution of knowledge relatively
easy for the contributor and
determining a good method for
cataloging the knowledge
Information Technology (IT) in

The KMS cycle
11-29
KMS usually follow a six-step cycle:

1. Create knowledge
2. Capture knowledge
3. Refine knowledge
4. Store knowledge
5. Manage knowledge
6. Disseminate knowledge

The Cyclic
Model of
Knowledge
Management
11-30

Components of KMS
11-31
KMS are developed using three sets of core

technologies:
1. Communication
2. Collaboration
3. Storage and retrieval
Technologies that support KM
Artificial intelligence
Intelligent agents
Knowledge discovery in databases
Extensible Markup Language (XML)

Artificial intelligence
AI methods used in KMS:
11-32
Assist in and enhance searching

knowledge
Help for knowledge representation (e.g.,
ES)
Help establish knowledge profiles of
individuals and groups
Help determine the relative importance of
knowledge when it is contributed to and
accessed from the knowledge repository

AI methods used in KMS:
11-33
Scan e-mail, documents, and databases to

perform knowledge discovery, determine
meaningful relationships and rules
Identify patterns in data (usually through neural
networks and other data mining techniques)
Forecast future results by using data/knowledge
Provide advice directly from knowledge by
using neural networks or expert systems
Provide a natural language or voice command
driven user interface for a KMS

Intelligent agents
Intelligent agents are software systems

that learn how users work and provide
assistance in their daily tasks
They are used to elicit and identify
knowledge
11-34
See ibm.com, gentia.com for examples
Combined with enterprise knowledge

portal to proactively disseminate
knowledge

Knowledge discovery in
databases (KDD)
A machine learning process that
performs rule induction, or a
related procedure to establish (or
create) knowledge from large
databases
11-35
a.k.a. Data Mining (and/or Text

Mining)

11-36
Model marts
Small, generally departmental repositories
of knowledge created by employing
knowledge-discovery techniques on past
decision instances. Similar to data marts
Model warehouses
Large, generally enterprise-wide
repositories of knowledge created by
employing knowledge-discovery
techniques. Similar to data warehouses

Extensible Markup Language (XML)
Web 2.0
11-37
XML enables standardized representations of

data structures so that data can be
processed appropriately by heterogeneous
information systems without case-by-case
programming or human intervention
The evolution of the Web from statically
disseminating information to collaboratively
creating and sharing information
KM System Implementation
Knowledge management products and

vendors
Knowware
Technology tools (software/hardware
products) that support knowledge
management
Software development companies / vendors
11-38
Collaborative computing tools

Knowledge servers
Enterprise knowledge portals (EKP)
An electronic doorway into a knowledge
management system
11-39
Software development companies /

vendors
Electronic document management

(EDM)
A method for processing documents
electronically, including capture, storage,
retrieval, manipulation, and presentation
Content management systems (CMS)

An electronic document management system
that produces dynamic versions of
documents, and automatically maintains the
current set for use at the enterprise level
Software development tools
11-40
Knowledge harvesting tools

Search engines
Knowledge management suites
Knowledge management consulting
firms
Knowledge management ASPs
KMS Implementation
Integration of KMS with other

business information systems
11-41
With DSS/BI Systems

With AI
With databases and information
systems
With CRM systems
With SCM systems
With corporate intranets and extranets
Roles of People in
Chief knowledge officer (CKO)

The person in charge of a knowledge
management effort in an organization
11-42
Sets KM strategic priorities

Establishes a repository of best practices
Gains a commitment from senior executives
Teaches information seekers how to better elicit it
Creates a process for managing intellectual assets
Obtain customer satisfaction information
Globalizes knowledge management
Roles of People in
Skills required of a CKO include:
11-43
Interpersonal communication skills

Leadership skills
Business acumen
Strategic thinking
Collaboration skills
The ability to institute effective educational
programs
An understanding of IT and its role in
advancing knowledge management
Roles of People in
The CEO, other chief officers, and

managers
The CEO is responsible for championing a

knowledge management effort
The officers make available the resources
needed to get the job done
11-44
CFO ensures that the financial resources are available

COO ensures that people begin to embed knowledge
management practices into their daily work processes
CIO ensures IT resources are available
Managers also support the KM efforts by

providing access to sources of knowledge
Roles of People in
Community of practice (CoP)

A group of people in an organization
with a common professional interest,
often self-organized for managing
knowledge in a knowledge
management system
11-45
See Application Case 11.7 as an

example of how Xerox successfully
improved practices and cost savings
through CoP
Roles of People in
KMS developers
KMS staff
11-46
The team members who actually

develop the system
Internal + External
Enterprise-wide KMS require a fulltime staff to catalog and manage the

knowledge
Ensuring the Success of

Success stories of knowledge management
Efforts
Implementing a good KM strategy can:
11-47
Reduce
loss of intellectual capital
costs by decreasing the number of times
the company must repeatedly solve the
same problem
redundancy of knowledge-based activities
Increase
productivity
employee satisfaction

MAKE: Most Admired Knowledge Enterprises
Efforts
Annually identifying the best practitioners of KM
Criteria (performance dimensions):
1.
Creating a knowledge-driven corporate culture

Developing knowledge workers through leadership
Fostering innovation
Maximizing enterprise intellectual capital
Creating an environment for collaborative knowledge
sharing
Facilitating organizational learning
Delivering value based on stakeholder knowledge
Transforming enterprise knowledge into stakeholders
value
2.
3.
4.
5.
6.
7.
8.
11-48

MAKE: Most Admired Knowledge
Efforts
Enterprises
Annually identifying the best practitioners of

1. McKinsey &
10. PricewaterhouseCoope
KM
Company
rs
2008 Winners:
2.
3.
4.
5.
6.
7.
8.
11-49
9.
Google
Royal Dutch Shell
Toyota
Wikipedia
Honda
Apple
Fluor
Microsoft
11.
12.
13.
14.
15.
16.
17.
18.
Ernst & Young

IBM
Schlumberger
Samsung Group
BP
Unilever
Accenture

Useful applications of KMS
Efforts
Finding experts electronically and

using expert location systems
11-50
Expert location systems (know-who)

Interactive computerized systems that
help employees find and connect with
colleagues who have expertise required
for specific problemswhether they are
across the county or across the roomin
order to solve specific, critical business
problems in seconds

Knowledge management valuation
Efforts
Financial metrics for knowledge

management valuation
11-51
Focus knowledge management projects

on specific business problems that can be
easily quantified
When the problems are solved, the value
and benefits of the system become
apparent

Knowledge management valuation
Efforts
Nonfinancial metrics for knowledge

management valuationnew ways to
view capital when evaluating intangibles:
11-52
Customer goodwill
External relationship capital
Structural capital
Human capital
Social capital
Environmental capital

Causes of knowledge management
Efforts
failure
11-53
The effort mainly relies on technology and

does not address whether the proposed
system will meet the needs and objectives
of the organization and its individuals
Lack of emphasis on human aspects
Lack of commitment
Failure to provide reasonable incentive for
people to use the system

Factors that lead to knowledge
Efforts
management success
11-54
A link to a firms economic value, to

demonstrate financial viability and
maintain executive sponsorship
A technical and organizational
infrastructure on which to build
A standard, flexible knowledge structure
to match the way the organization
performs work and uses knowledge

Efforts
management success
11-55
A knowledge-friendly culture that leads

directly to user support
A clear purpose and language, to
encourage users to buy into the system
A change in motivational practices, to
create a culture of sharing
Multiple channels for knowledge transfer

Efforts
management success
11-56
A significant process orientation and

valuation to make a knowledge
management effort worthwhile
Nontrivial motivational methods to
encourage users to contribute and
use knowledge
Senior management support
Last words on KM
Knowledge is an intellectual asset

IT is just an important enabler
Proper management of knowledge is
a necessary ingredient for success
Key issues:
11-57
Organizational culture
Executive sponsorship
Measurement of success
End of the Chapter
11-58
Questions / comments
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2011 Pearson Education, Inc.

Publishing as Prentice Hall
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Decision Support and

Define knowledge and describe the

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Describe different approaches to

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Describe the roles of technology,

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Knowledge management concepts

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

information that is contextual, relevant,

In a knowledge management system,

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Extraordinary leverage and increasing

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Explicit and tacit knowledge

Explicit (leaky) knowledge

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Explicit and tacit knowledge

Tacit (embedded) knowledge

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Development of new knowledge and

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

How do people learn the culture?

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Why people dont like to share knowledge:

Lack of time to share knowledge and time to

Fear that sharing may jeopardize ones job security

Low awareness and realization of the value and

Dominance in sharing explicit over tacit knowledge

Use of a strong hierarchy, position-based status,

Insufficient capture, evaluation, feedback,

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Why people dont like to share knowledge:

Differences in experience and education levels

Lack of contact time and interaction between

Poor verbal/written communication and

Age, gender, cultural and ethical defenses

Lack of a social network

Ownership of intellectual property

Lack of trust in people because they may misuse

Perceived lack of accuracy/credibility of

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Most knowledge management

To make knowledge visible

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Knowledge sharing is the willful

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Knowledge seeking (knowledge

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Process approach to knowledge

Practice approach focuses on building the

Focuses on explicit knowledge and IT

Focuses on tacit knowledge and socialization

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Hybrid approaches to knowledge

The practice approach is used so that a

Copyright 2011 Pearson Education, Inc. Publishing as Prentice Hall

Knowledge Management A Demand Led Business