Chapter 11 Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Managing Knowledge in the Digital Firm 11.1 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Objectives What is knowledge management? Why businesses today need knowledge management programs and systems for knowledge management? What types of systems are used for enterprisewide knowledge management? How they provide value for organizations? How knowledge work systems provide value for firms? What are the major types of knowledge work systems? 11.2 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Objectives What are the business benefits of using intelligent techniques for knowledge management? What major management issues and problems are raised by knowledge management systems? How can firms obtain value from their investments in knowledge management systems? 11.3 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Management Challenges Designing knowledge systems that genuinely enhance organizational performance Identifying and implementing appropriate organizational applications for artificial intelligence 11.4 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm The Knowledge Management Landscape Important Dimensions of Knowledge 11.5 • Knowledge • Wisdom • Tacit knowledge • Explicit knowledge © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm The Knowledge Management Landscape U.S enterprise knowledge management software revenues, 2001-2006 Figure 11-1 11.6 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm The Knowledge Management Landscape Important Dimensions of Knowledge • 11.7 Knowledge: – Is a firm asset – Has different forms – Has a location – Is situational © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm The Knowledge Management Landscape Organizational Learning and Knowledge Management 11.8 • Organizational learning: Creation of new standard operating procedures and business processes reflecting experience • Knowledge management: Set of processes developed in an organization to create, gather, store, disseminate, and apply knowledge © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm The Knowledge Management Landscape The knowledge management value chain Figure 11-2 11.9 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm The Knowledge Management Landscape The Knowledge Management Value Chain 11.10 • Knowledge acquisition • Knowledge storage • Knowledge dissemination • Knowledge application © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Fuzzy Logic Systems Fuzzy Logic Systems 11.38 • Rule-based AI • Tolerates imprecision • Uses nonspecific terms called membership functions to solve problems © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Fuzzy Logic Systems Implementing fuzzy logic rules in hardware Figure 11-14 11.39 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Neural Networks Neural Networks 11.40 • Hardware or software emulating processing patterns of biological brain • Put intelligence into hardware in form of a generalized capability to learn © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Neural Networks How a neural network works Figure 11-15 11.41 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Genetic Algorithms Genetic Algorithms 11.42 • Problem-solving methods • Promote evolution of solutions to specified problems • Use a model of living organisms adapting to their environment © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Genetic Algorithms The components of a genetic algorithm Figure 11-16 11.43 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Genetic Algorithms Hybrid AI Systems 11.44 • Integration of multiple AI technologies into a single application • Takes advantage of best features of technologies © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Intelligent Agents Intelligent Agents • 11.45 Software program that uses built-in or learned knowledge base to carry out specific, repetitive, and predictable tasks for an individual user, business process, or software application © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Intelligent Agents Intelligent agent technology at work Figure 11-17 11.46 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Management Issues for Knowledge Management Systems Implementation Challenges 11.47 • Insufficient resources available to structure and update the content in repositories • Poor quality and high variability of content quality because of insufficient mechanisms • Content in repositories lacks context, making documents difficult to understand © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Management Issues for Knowledge Management Systems Implementation Challenges 11.48 • Individual employees not rewarded for contributing content, and many fear sharing knowledge with others on the job • Search engines return too much information, reflecting lack of knowledge structure or taxonomy © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Management Issues for Knowledge Management Systems Implementing knowledge management projects in stages Figure 11-18 11.49 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Obtaining Value from Knowledge Management Systems Obtaining Value from Knowledge Management Systems 11.50 Develop in stages Choose a high-value business process Choose the right audience Measure ROI during initial implementation Use the preliminary ROI to project enterprise-wide values © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Chapter 11 Case Study Can Knowledge Systems Help Procter & Gamble Stay Ahead of the Pack? Analyze P&G’s business strategy using the value chain and competitive forces models What business and technology conditions caused P&G to change its business strategy? What management, organization, and technology problems did P&G face? 11.51 © 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Chapter 11 Case Study Can Knowledge Systems Help Procter & Gamble Stay Ahead of the Pack? 11.52 What is the role of knowledge management in supporting P&G’s business strategy? Explain how knowledge management systems help P&G execute its business strategy How successful has P&G been in pursuing its business strategy and using knowledge management? How successful you think that strategy will be in the future? Explain your answer © 2005 by Prentice Hall ... Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Types of Knowledge Management Systems Types of Knowledge Management Systems 11.12 • Enterprise Knowledge Management Systems: ... 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Enterprise- Wide Knowledge Management Systems Enterprise- wide knowledge management... 2005 by Prentice Hall Essentials of Management Information Systems, 6e Chapter 11 Managing Knowledge in the Digital Firm Enterprise- Wide Knowledge Management Systems Structured Knowledge Systems