knowledge management for enterprise systems: observations from small, medium and large ...
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8/8/2019 KNOWLEDGE MANAGEMENT FOR ENTERPRISE SYSTEMS: OBSERVATIONS FROM SMALL, MEDIUM AND LARGE ORGANIZATIONS
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KNOWLEDGE MANAGEMENT FOR ENTERPRISE SYSTEMS:
OBSERVATIONS FROM SMALL, MEDIUM AND LARGEORGANIZATIONS
Knowledge Management for Enterprise Systems
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Presented By:Ankit Luthra 06502922Ankush Sharma 0960907Namrata Mittal 09609145
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IntroductionEnterprise Systems have emerged as possibly the most important andchallenging development in the corporate use of information technology.Organizations invests heavily in these large, integrated application
software
Resource requirements in ES implementation and lifecycle widemanagement have traditionally restricted these applications to largeorganizations
ES vendors are now focusing on Small and Medium organizations withscaled-down ES
Both Large and SMEs face different type of issues and receive differentbenefits from ES
Knowledge Management for Enterprise Systems
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Does Organizational size have any relation with the
existence ofInformation System success?
Studies investigating the impact of organizational size in relation to the
antecedents of Information System success
Paper attempts to minimize this gap by focusing on lifecycle-wideknowledge managementin small, medium and large organizations
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The number of employees in an organization has been employed as acommon tool to classify organizations.
Organizations are classified into:SmallMedium &Large
In the context of Enterprise System (ES), the classification of large,medium and small is similarly unclear.
ReviewonInformationSysteman
Organizationalsize
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After studying MIS, researchers have identified organization size as acritical variable
Organization size have greater importance because of its influence on:Resource availabilityRequirements necessary for integrationDegree of formalizationLead time for planning and implementation
Researchers recognized organization size as an uncontrollable variableand states that IS projects are less likely to succeed in SMEs
Small business are prone to : Software,Hardware, & Implementation problems
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It can be concluded form various researches and studies that firm sizeis:
Directly related to firms computer operations Inversely related to amount of external programming that arebeing used Directly related to portion of revenues allocated to Electronic DataProcessing (EDP) Inversely related to percentage of EDP costs that are used forpurchasing computer hardware
Considering application types:F
irstly it was found that small and mid-sized organizations place agreater emphasis on accounting and inventory controlFurther it was identified that inventory control software was highly
problematic in such organizationsThen, budgeting and inventory control were the primary uses of IS in
small organizationsKnowledge Management for Enterprise Systems
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A study of mid-sized organizations identified that user-friendlyinterfaces are a key factor for end users satisfaction
Investigation on IS acquisition in medium and large organization hashypothesized a positive relationship between firm size and softwaresophistication
Some researchers suggests that the resource constraints faced by SMEsmay hinder their ability to maintain technology up to date
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ReviewofKnowledge Management
LifecycleCreation Retention Transfer Application
Acquisition
Generation Capture
Storage Share
Disseminate Utilization
Use
These were the four phases common to all theinventors of knowledge Management.
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Knowledge CreationReplacing existing contentwithin the organizations tacit andexplicit knowledgebase.Required all throughout thelifecycle key players-consultants, vendorsand clients.The areas of concern before werecost, time ignoring external
parties.
KnowledgeTransferInformal meetings etc.,promotes socialization in small
orgs. But, prevents widedistribution.Formal training etc., widerdistribution of context specificknowledge.Formal training is imp. For
effective ES implementation.
Knowledge ApplicationImportant in maintenance andup gradation.Constantly evolving ES should beapplied to the real worldproblems.
Knowledge RetentionEmbedding knowledge fordeveloping persistence
Evolves through observations,experiences & actions.Failures can be led by StaffPoaching & Knowledge Drain.
KnowledgeManagementLifecycle
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Study Context2 organizations, belonging to a state Govt. in Australia running a marketleading Enterprise System for more than a decade.
199 ,state Govt. commenced Financial module across all state Govt. agencies(later Controlling, Materials Management and Human Resources also).
Homogeneous environment due to same ES software, similar versions, samephase of lifecycle with installed Financial Accounting and Controlling, MaterialsManagement modules.
Broad objectives of ES(1) support the Managing for Outcomes (MFO)framework and financial management improvement activities, (2)encouragebest practice for resource management, ( )consolidation of state Govt. financialinformation, (4) meet the business needs of agencies and ( ) achieve economiesof scale in main operations.
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PredispositionsA small agency that provided corporate services to agroup of other small agencies demonstrated theirdissatisfaction with the ES.
Senior management believed that the system was toocomplex and too expensive for a small organization,despite its richness in functionality.
After three years of using the implemented EnterpriseSystem, the agency decided to replace that with a locally-owned, small scaled ES.
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ClassificationofOrganizationsDiscussions with the strategic management in organization managing theES for other organization revealed that they employ the number of user
licenses to usefully classify organizations:
Small : Where the number of user licenses
below 200
Medium : Where the number of user licenses is in
between 200 999.
Large : Where the number of user licenses is
above 1000.
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Impactofsizeoforganizationonperceive
valueinthefourKM phases Knowledge Creation
The differences between thethree organizational sizes inrelation to the knowledgecreation items remainminimal.
Considering the knowledgewithin the client organizationat the time of the
implementation, the largeorganizations possessed moreinternal knowledge than thatof small organizations
There were no substantial
differences between the threeor anizational cohorts.
Descriptive Statistics of the KM Process
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Knowledge Retention
The mean scores descend with the declining organizational sizes.
The observed differences are then statistically tested using the pairedt-test, where the observations are confirmed at significance level .01.
The lack of planning and resources in small organizations retainnecessary knowledge for the lifecycle-wide ES-success.
Descriptive Statistics of the KM Process
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Knowledge Transfer The mean scores descend with the declining organizational sizes.
The observed differences are then statistically tested using the pairedt-test, where the observations are confirmed at significance level .01
Knowledge Re-use The issues pertaining to knowledge retention and transfer, theES-knowledgebase in small organizations remain relatively infertile.
Descriptive Statistics of the KM Process
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Satisfaction levels of three organizations
Despite the equal knowledge creation at the time of the
Implementation small organizations tend to face issues in relation toretaining, transferring and using knowledge throughout the ES-lifecycle.
Small organizations demonstrate lower satisfaction in theirknowledge management activities.
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Pathmodelofknowledgemanagement1
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The strength of the paths between KM activities duringand post ES-implementation and the overall goodness ofthe KM process:
The r-square of the overall goodness of KM process, decline with the
declining organizational sizes Larger organizations tend to explain the overall goodness using the KM
activities post implementation
The overall goodness of small organizations is still relying on theknowledge creation that had taken place
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Conclusions Enterprise Systems are well-suited for large organizations than small andmedium organizations. All organizations require a lifecycle wide knowledge management strategy to
reap benefits from Enterprise Systems.
Even with similar knowledge creation outcomes, small and medium sized
organizations demonstrated lower mean scores in relation to lifecycle wideknowledge management activities
Respondents from small and medium organizations reported lower levels ofsatisfaction towards the overall goodness of the knowledge management in theirorganizations.
Findings highlight the capabilities of small organizations to maintain a lifecycle
wide ES knowledge management strategy, even with the same levels ofknowledge creation at the time of the ES implementation.
Reasons behind incapability of small organizations:
Lack of adequate resources.
High reliance on external expertise in system implementation.
Lack of IT sophistication.
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Thanks for your time!!
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