copy of sait-i (knowledge management & erp)

8/6/2019 Copy of SAIT-I (Knowledge Management & ERP)

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STRATEGIC APPLICATION OFSTRATEGIC APPLICATION OF

INFORMATION TECHNOLOGYINFORMATION TECHNOLOGYUnit IUnit I

KNOWLEDGE MANAGEMENT :Building & knowledge Creating Company:- In an

economy where the only certainty is uncertainty, theone sure source of competitive advantage is

knowledgeWhen markets shift, competitors multiply, products

become obsolete almost over night successfulcompanies are those that consistently create new

knowledge, disseminating it widely throughout the

organization & quickly embody it in new


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technologies & products these activities define the

knowledge creating company, whose sloe business

is continuous innovation. Knowledge creating

companies.

Making personal knowledge available to others is the

central activity of the knowledge creating companies

it takes place continuously & at all levels of theorganization.

Knowledge management has Become one of the major

strategic uses of information technology.Many companies are building knowledge management

systems (KMS) to manage organizational learning &

business know how.


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The goal of such systems is to help knowledge

workers create, organize & make available important

business knowledge, wherever & whenever it is

needed in an organization.This includes processes, procedures, patents,

reference works, formulas, best practices, forecast

& problem fixes.Intranet / internet websites, data mining, knowledge

data bases, on-line discussion groups are some of the

key technologies that may be used by a KMS.Knowledge management systems facilitate

organizational learning & knowledge creation.They are designed to provide rapid feedback to

knowledge workers, encourage behaviour changes by


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employees & significantly improve business

performance.KMS helps to integrate the knowledge into

organizations business process products & services.

Knowledge management can be viewed as three

levels of techniques, technologies & systems that promote the collection, organization, access, sharing

& use of work place & enterprise knowledge.


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Leverage organization know how Performance support

Building expert networks

Enterprise

Intelligence

Information

creation,sharing & mgmt.

Document Mgmt.

Capturing & Distributing expert

stories Communication & collaboration New content creation

Access & Retrieval

Documents stored on-line

1

2

3


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Knowledge management systems use information

technology to help gather, organize, share business

knowledge within organization.

Corporate intranets have become the knowledgebases for storage & dissemination.

KNOWLEDGE MANAGEMENT DEFINITION:

(KM) KM is a business activity with two primary aspects:-

1. Treating the knowledge component of business

activity as an explicit concern of business reflected in

strategy, policy & practice at all levels of theorganization.

2. Making & direct connection between an

organizations intellectual assets both explicit

(recorded) & tacit (personal know how) and


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positive business results. In practice, KM often encompasses identifying &

mapping intellectual assets within the organization,

making vast amounts of corporate informationaccessible, sharing of best practices, & technology

that enables all of the above including information

communication technology (intra net etc.) & group

ware (collaborative work groups using it). A significant element of business community also

views knowledge management. As a natural

extension of business process re-engg.) Knowledge is a fluid mix of framed experience,

values, information, expert insight & intuition that

provides an environment & framework for evaluating

& incorporating new experience & information.


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Market valuation of a company largely depends on

intangible asset like its knowledge base. Knowledge unlike any physical asset, delivers

increasing returns. KM helps avoid unnecessary work duplication,

expensive reinvention & repeated mistakes.

KM can save your company from knowledgewalkouts. KM can compress delivery schedule & help you

deliver ahead of time.

KM mutually reinforces corporate agility. The abilityof companies to react comes from their knowledge &

this agility reinforces their ability to apply such

knowledge.


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Data Information Knowledge.

KNOWLEDGE GIVES TODAYS COMPANIES

THE EDGE TO COMPETE SUCCESSFULLY.

Basic principles of knowledge management.

1. Knowledge acquisition:- The process of

development & creation of insights, skills &

relationship

Ex:- stock Broker can predict.2. Knowledge Sharing:- Distributions & making

available what is already known.

Ex:- An expert system helps & technical call centre

help desk.


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3. Knowledge Utilization:- Learning is integrated into

the organization apply in new situations

- sharing & utilizations take place same time.

ata Baseapture Tools

Acquisition Sharing

Utilization

CommunicationNetwork

asicKnowledge

anagement

echnology

Collaborative

Tools


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Basic elements of KM & typical technology tools

that can be used.

Concept of knowledge management

Knowledge terms & definitions

Information:- Relates to description, definition, or

perspective (What, Who, When, Where) Knowledge:- Comprises strategy, Practice, Method,

or Approach (How) Wisdom:- Embodies Principle, Insight, moral

(Why).

Business Intelligence:- Is the process by which


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businesses gather information specific to their use. Logic:- Is the sequential decision making process in

an organizational context.

Technology:- Particularly the informationtechnology, aimed at information & knowledge.

Strategy:- Business strategy which incorporates,

information & knowledge.

Knowledge Management:- Is about connecting

people to people & people to information to create

competitive advantage.


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INFORMATION KNOWLEDGE

1) Processed Data Actionable Information

2) Gives facts only Allows Making

predictions

3) Clear, structured,

simple can beexpressed in writtenform

Intuitive, hard to

communicate, difficult toexpress in words

COMPARING INFORMATION & KNOWLEDGE

4) Obt i d b l l ti Li i ti


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4) Obtained by calculatingdata

Lies in conversation,intuition, peoples

5) Devoid of owner

dependency

Depends on the owner

6) Handled well byinformation systems

Also needs informalchannels

7) Key Resource inmaking sense of data

Key resource in intelligentdecision making /forecasting / intuitive

judgment

8) Formalized in database /

books / documents

Evolved with experience /

formed in & shared amongcollective minds.

9) Can be packaged in

reusable form

Often emerges in minds of

people thru their experience


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CLASSIFYING KNOWLEDGE Knowledge can be classified along four key dimensions:-

Type Focus Complexity

Perishability over time

1 2 3

4

Knowledge

Type

Focus

Complexity

Perishability

Technological

Business

Environmental

Operational

Strategic

Explicit

Tacit

Low

High

CLASSIFICATIONDIMENSIONS


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Knowledge can be broadly classified into two

categories:-

1. Explicit:- Can be document or codified / E-mailed / web

page etc.2. Tacit:- Personal, Context specific, stored in the head of

people. COMPARING TACIT & EXPLICIT KNOWLEDGE

Characteristic Tacit Explicit

1 Nature:- Personal Can be codified

2 DevelopmentProcess- Difficult torecord Can be systematicallyrecorded

3 Location:- Stored in thehead of

people

Stored in documents /databases

aracter st c ac t xp c t


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aracter st c ac t xp c t

4 IT Support:- Hard tomanage, share

or supportwith IT

Well supported byexisting IT

5 MediumNeeded:-

Needs & RichCommunication Medium

Can be transferredthru conventionalelectronic channel

COMPONENTS OF KNOWLEDGE A KM system & KM strategy must support:-

Intuition Beliefs

Ground Truth Intelligence


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BUSINESS & KNOWLEDGE

KMS for the Enterprise:-

The value of a firms products & services is basednot only on its physical resources but also on

intangible knowledge assets. Some firms can perform better than others because

Judgment

Experience

Value

Assumption


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they have better knowledge about how to create,

produce & deliver products & services

This firm knowledge is difficult to imitate & unique &can be leveraged into long term strategic benefit.KMS collect all relevant knowledge & experience in

the firm & make it available wherever & whenever it

is needed to support business process & decisions. The KMS also links the firm to external sources of

knowledge.KMS support processes for discovering & codifying

knowledge, sharing knowledge distributing

knowledge as well as the processes for creating new

knowledge & integrating it into the business

organization.


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KMS applications help companies map sources of

knowledge, create corporate knowledge directories of

employees with special expertise, identify & sharebest practices & codify knowledge of experts so that

it can be embedded in information systems &

available to others.KMS also includes tools for knowledge discovery that

enable the organization to recognize patterns &

important relationships in large pools of data.


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ROLE OF KNOWLEDGE MANAGEMENT

SYSTEMS IN BUSINESS ORGANIZATION

1. Creating Knowledge KMS Provides knowledge

workers with graphics, analytical, document mgmt.

tools & also access to internal/external data to generate

new ideas.

2. Discovering & codifying knowledge Artificialintelligence systems can elicit & incorporate expertise

from human experts or find patterns or relationship

from huge database.

3. Sharing knowledge Group collaboration systems

(Group ware), can help employees access & work

simultaneously on the same document from many

different locations & co-ordinate their activities.

Orga

nizati

onalProce

ss

ffi


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4. Distributing knowledge:- Office systems &

communication tools can distribute documents &

other forms of information among knowledge

workers.

Knowledge Management in the business

organization Emergence of information & knowledge economy,

core competencies (two or three things that an

organization does best) are key organizational

assets. Producing unique products or services or producing

at lower cost than competitors is based on superior

knowledge.

K l d O i i l k l d


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Knowledge assets:- Organizational knowledge

regarding how to efficiently & effectively perform

business processes & create new products & services

that enables the business to create value. Knowledge assets are as important for competitive

advantage & survival like financial & physical assets.

Organizational Learning:-

creation of new standard operating procedures

&business processes that reflect organizations

experience. KM increases the ability of the organization to learn

from its environment & to incorporate knowledge into

its business processes.

KM f h f d l d i


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KM refers to the set of processes developed in an

organization to create, gather, store, transfer & apply

knowledge.

Information technology plays an important role inKM by supporting these processes for creating,

identifying & leveraging knowledge across the

organization. Business organizations have created explicit

knowledge mgmt. programs for protecting &

distributing knowledge

they have identified & for discovering new sources ofknowledge.

- these programs are headed by a chief knowledge

officer (CKO)


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I- ALIGNING KNOWLEDGE MANAGEMENT

WITH BUSINESS STRATEGY

Knowledge Management A strategic perspective:-

In the emerging economy, a firms only advantage

is its ability to leverage & utilize its knowledge

Industry environment is influenced by unexpected,

multiple changes making competitive advantage not

sustainable.

Initiatives like TQM, BPR, SCM, CRM etc resultedin firms attaining some competitive advantage but are

replicable & not sustainable over longer period of

time.

Hence organizations are now focusing on methods of


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Hence organizations are now focusing on methods of

creating new knowledge & harnessing existing

knowledge to gain competitive advantage.

Sustainable competitive advantage thru knowledgemgmt. - major focus for modern organizations.

Strategy Concept & Framework Strategy is a

method / plan by a firm to balance its external (OT)

environment & the internal (SW) capabilities. Porters notion of competitive advantage says

resources & capabilities of an organization can be asource of competitive advantage if they process

certain characteristics of being rare, durable and

difficult to imitate.


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If a firm have resources with these characteristics,

they can position themselves strategically on the

basis of these resources & capabilities.

Tangible resources mostly will not have these

characteristics & hence organizations focus should be

on intangible knowledge assets.

Resources & capabilities are easily replicable. Tacit knowledge gained thru years of experience are

not easily replicable.

Market is dynamic & going thru a string ofrealignment hence any strategy based on market &

product mix or resources or capabilities may not

provide a firm with sustainable competitive advantage


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Integration of knowledge or collective knowledge to be

stressed.

Creativity, Innovation & Knowledge Strategy

Creativity & Innovation play a very important role in

designing & driving the business strategy of any modernorganization.

Present industry scenario, an organization does not

enjoy sustainable competitive advantage merely by

possessing resources & capabilities. These resources should be used & combined in new &

different ways or develop new capabilities to gain

sustainable competitive advantage .


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Experience&

Knowledge

Creativity &

Innovation

New ways of

Combining

Existing Resources

Develop New

Capabilities

Competitive

Advantage

Some of the innovations brought out by organizations are


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Some of the innovations brought out by organizations are

result of application of new knowledge & others are

result of working with & recasting existing knowledge.

Approach to competitive advantageCompetitive

Advantage

Align KnowledgeStrategy with

Business Strategy

FormulateKnowledge Strategy FormulateBusiness Strategy

Identify

Knowledge Gap

In current dynamic industry scenario organizations


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In current dynamic industry scenario, organizations

cannot achieve sustainable competitive advantage, by

pursuing just a product market based strategy.

They need to appreciate the importance of theknowledge existing in the organization & harness the

knowledge thru appropriate KM strategy & align this

strategy with the business strategy.

II KNOWLEDGE MANAGEMENT TECHNOLOGY& THE LEARNING ORGANIZATION

The technology perspective:- Some of the

technologies associated with KM:-o Internet / Intranet


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o Data Warehousingo Data Mining

o AI / Expert Systemso Information Retrievalo Electronic Publishing Technologyo Push Technology

o Simulationo Document Managemento Collaboration

o Groupwareo DBMSo Web Mapping Toolso Help Desk Technology

KM like any other top management initiative may


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KM like any other top management initiative may

use technology as an important enabler.

Systems Perspective Systems & Infrastructurefor Knowledge Management

Information systems can promote organizational

learning by identifying, capturing, codifying &

distributing both explicit & tacit knowledge.

Once Information has been collected & organized in a

system, it can be leveraged & reused many times. Companies can use information systems to codify

their best practices & make knowledge of these

practices more widely available to employees.

Best Practices:- Are the most successful solutions or


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Best Practices:- Are the most successful solutions or

problem solving methods that have been developed

by a specific organization or industry.

In addition to improving existing work practices, theknowledge can be preserved as organizational

memory to train future employees or to help them

with decision making.

Organizational memory Is the stored learning

from an organizations history that can be used for

decision making & other purpose.

Information systems can also provide knowledgenetworks for linking people so that individuals with

special areas of expertise can be easily identified &

tacit knowledge can be shared.

KM R i A i f ti t h l


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KM Requires:- An information technology

infrastructure that facilitates the:-

- Collection of knowledge- Sharing of knowledge.- Also requires software for distribution of information

(knowledge) & make it more meaningful.

It systems that are used:-

1 Group Collaboration systems2 Office Systems

3 Artificial Intelligence Systems

4 Knowledge work systems

IT INFRASTRUCTURE FOR KNOWLEDGE


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IT INFRASTRUCTURE FOR KNOWLEDGE

MANAGEMENT

1. Share knowledge

Group Collaboration System

Group Ware

Intranets

2. Distribute Knowledge

Office Systems

Word Processing

Desk top data base

DTP

Imaging & Web Publishing

3. Capture & CodifyKnowledge

Artificial intelligenceSystems

Expert Systems

Nevral Nets

Fuzzy Logic

4. Create Knowledge

Knowledge Work Systems

CAD Investment Work Stations

IT i f t t f KM


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IT infrastructure for KM:-Networks/Databases/Processors/Software/Internet/To

ols etc. are used heavily for above systems

Distributing Knowledge:- Office & DocumentManagement Systems

Office Systems:- Are any application of information

technology that increases productivity of informationworkers.OFFICE ACTIVITY TECHNOLOGY

Managing Documents Word Processing / DTP /

Web Publishing / Work flowManagers.

Scheduling Electronic Calendars /

Groupware / Intranets

ommun cat ng - a o ce a


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ommun cat ng a o ce aGroupware / Intranets /Digital Answering System

Managing Data

Desktop Data Bases /Spread Sheets / UserFriendly Interfaces to Mainframe data bases

Knowledge Repository:- Collection of documentedinternal & external knowledge in a single location for

more efficient management & utilization by the

organization. In addition to streamlining workflow, web based &

traditional document management systems provide

tools for creating knowledge repositories to help

organizations consolidate & leverage their knowledge.


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Creating Knowledge:- Knowledge work systems

(KWS)

KWS are information systems that aid knowledge

workers in the creation & integration of new

knowledge in the organization.

Knowledge work is that portion of information workthat creates new knowledge & information

Knowledge workers perform three key roles that are

critical to the organization:-

1) Keep the organization up to date in knowledge as it

develops in the external world.

2) Serving as internal consultants regarding the areas of


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2) Serving as internal consultants regarding the areas of

their knowledge, the changes taking place & the

opportunities.

3) Acting as change agents evaluating, initiating &promoting change projects.

Most knowledge workers rely on office systems such

as word processors, voice mail & calendars but they

also Require more specialized work systems

Knowledge work systems are specifically designed to

promote the creation of knowledge & to ensure that

new knowledge & technical expertise are properly

integrated into the business.


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Requirements of Knowledge Work Systems:

1) Must give knowledge workers the specialized toolsthey need such as powerful graphics, analytical tools,

communication & document management systems.

2) These systems require great computing power to

rapidly handle the sophisticated graphics or complexcalculations required by knowledge workers as

scientific researchers, product designers & financial

analysts.3) Knowledge workers are focused on knowledge in the

external world, so system should give easy & fast

access to external data base.


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External

knowledge

Base

Software Graphics Visualization

Modeling Simulation Document Management Communication

UserInterface

Hardware Platform:- Knowledge Work Stations

REQUIREMENTS OF KNOWLEDGE WORK


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REQUIREMENTS OF KNOWLEDGE WORK

SYSTEMS

Examples of Knowledge Work Systems

1) Computer aided design (CAD):-

- Information systems that automates the creation &

revision of design using sophisticated graphics

software.

2) Virtual Reality Systems:-

- Interactive Graphics software & hardware that createcomputer generated simulations that emulate real life

situation

Ex:- Aircraft design stress patterns.


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Virtual reality applications are being developed for

the web using & standard called (VRML) or Virtual

reality Modeling Language.

3) Investment Work Station:- Powerful desktop computer for financial specialists,

which is optimized to access & manipulate massiveamounts of financial data.

High end PCs used in financial sectors to analyze

trading situations instantaneously & facilitate

portfolio management. The financial industry is using specialized investment

workstations to leverage the knowledge & time of

brokers, trades, portfolio managers.


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Firms like DSP Merrill Lynch have installed

investment workstations that integrate a wide range

of data from both internal & external sources. Sharing knowledge:- Group Collaboration Systems

& Enterprise knowledge environment (Intranets) Community of Practice:- Informal group of people

that may live or work in many different locations butwho share a common professional interest. An

important source of expertise for organizations.

Ex:- Linux users group in a corporation that primarily

uses windows operating system.- Group in an international bank with special interest

in leading activities in south east Asia.

Groupware & Web Collaboration Tools:-


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Groupware & Web Collaboration Tools:

- Groupware is built around three key principles:-

Communication Collaboration Co-ordination

- It allows groups to work meetings, route electronic

forms, access shared folders, participate in electronic

discussions/conferencing, develop shared data base,

e-mail.

Information intensive companies such as consultingfirms, law firms & financial management companies

found group ware an especially powerful tool for

KM.

Internet tools for e-mail news group discussion


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Internet tools for e mail, news group discussion,

conferencing offer collaborative work. Proprietary groupware remains a key tool for

application requiring extensive collaboration,document tracking & frequent updating.

Lotus notes, open text live link & other groupware

products are used for sharing knowledge. Knowledge Map:- Tool for identifying & locating

the organizations knowledge resource.

Enterprise Information Portal:-

- Software application that enables companies to

provide users with a single gateway to internal &

external sources of information.


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- Portals help individuals navigate through various

knowledge resources also called knowledge

portals.

- Portals provide single point access to the firms

knowledge resources & helps the firm coordinateinformation / decision.


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- ENTERPRISE KNOWLEDGE PORTAL

E-Mail Web Pages Best Practices

Chat &

Conferencing

Document

ManagementProjects

GroupwareData Base &

Ware House

Research &

Reference

Search Tools

& Directories

Enterprise

ApplicationsNews Feed

Group sharing of knowledge requires team members


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Group sharing of knowledge requires team members

to believe it is in their interest to share, especially in

organizations that encourage competition among

employees. Successful knowledge sharing requires an

appropriate knowledge sharing environment.

CAPTURE & CODIFY KNOWLEDGE

Artificial Intelligence:-

Organizations are using artificial intelligencetechnology to capture individual & collective

knowledge & to codify & extend their knowledge

base (AI).


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AI is the effort to develop computer based systems

(both hardware & software) that behave as humans.

Such systems would exibit logic, reasoning, intuition

& commonsense qualities that we associate with

human beings.

The field of AI includes:-


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The field of AI includes:

Artificial

Intelligence

Natural

LanguageRobotics

Expert

Systems

Intelligent

Machines

Why business is interested in AI?

To store information & preserve expertise. Create & mechanism that is not subject to human

feeling fatigue etc. To eliminate routine jobs & unsatisfying jobs held by

people.

Handle massive & complex problems.

Capturing Knowledge Expert Systems:


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Capturing KnowledgeExpert Systems:-

Expert systems are knowledge intensive computer

program that captures the expertise of a human inlimited domain of knowledge.

Ex: Diagnosing a cars ignition system, rules of thumbused by real world experts can be understood,

codified & kept in a machine.

Expert systems lack the breadth of knowledge & theunderstanding of fundamental principles of an human

expert. They are quite narrow.

The model of human knowledge used by expert system is


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g y p y

called the knowledge base. An expert. System contains a number of rules to be followed, when

used. Organizational Intelligence Case-Based Reasoning

(CBR)

CBRs are AI technology that represents knowledge as a

database of cases & solutions done in past. The system generates a six step process to find

solutions to new problems encountered by user.

How Case Based Reasoning Works

o CBR represents knowledge as a database of past

cases & their solutions.

User Describes The Problem1


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User Describes The Problem

System Searches Data Base

System Asks User

Additional Qs

System Finds Closest Fit &Retrieves Solution

System Modifies The Solution

To Better Fit The Problem

Case Database

System Stores Problem

& Successful Solutionto Database

Successful

?

1

2

3

4

5

6

YesNo

In CBR, Descriptions of past cases of human


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, p p

specialists experience, represented as a case are stored

in a database for later retrieval when user encounter a

new case with similar parameter. OTHER INTELLIGENT TECHNIQUES FOR

KNOWLEDGE CAPTURE & CODIFY Neural Networks:-

o Neural Networks are designed to imitate the physicalthought process of the biological brain.

o These are hardware or software that attempts to

emulate the processing patterns of the biological brain.o A neural network uses rules it Learns from patterns

in data to construct a hidden layer of logic.o The hidden layer then processes inputs, classifying

them based on experience of the model.

NEURAL NETWORK


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Input Layer Hidden Layer Output Layer

Income Good Credit

Risks

Debt

Age

Payment

Record

Bad Credit

Risks

N l t k li ti i f


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Neural network applications are emerging for

business, science, medicine to address problems in

financial analysis & control & optimization. Neural nets are used by finance industry to identify

patterns in vast pools of data that help investment

firms predict the performance of quity, corporate

bond rating or corporate bankruptcies. Visa international is using a neural network to help

direct credit card fraud by monitoring all visa

transactions for sudden changes in the buying

patterns of card holders. Unlike Expert System, which Provide Explanation

for their solutions, neural networks cannot always

explain why they arrived at a particular solution.

Expert systems seek to emulate or model a human


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Expert systems seek to emulate or model a human

experts way of solving problems & highly specific to

a given problem & cannot be easily retrained.

KNOWLEDGE CREATION FRAME WORK

NONAKAS MODEL (SECI MOD)

o According to Prof. Ikujiro Nonaka, knowledge

creation is a spiral process of interaction between

explicit & tacit knowledge.


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Socialization

Empathizing

Embodying

Internalization

Externalization

Articulate

Connecting

Combination

Tacit

T

acit

Tacit Tacit

Explicit Explicit

Nonacas Model (Seci Model)

E

xpli

cit

Ex

pli

cit

Interactions between the explicit & tacit knowledge


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lead to the create of new knowledge. The four modes of knowledge conversion interact in

the spiral of knowledge creation & the spiral becomes large in scale as it moves up through

organization levels & trigger new creation. Socialization (Tacit to Tacit):-

- Includes the shared formation & communication oftacit knowledge between people ie in meetings.

- Knowledge sharing is often done without ever

producing explicit knowledge & to be most effective,should take place between people having common

culture.- So, tacit knowledge sharing is connected to ideas of

communities & collaboration.

Externalization (Tacit to Explicit):-


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- By its nature tacit knowledge is difficult to convert

into explicit knowledge.- Thru conceptualization, elicitation & ultimately

articulation, some proportion of a persons tacit

knowledge may be captured in explicit form.

- Typical activities when conversion takes place are indialog among team members, in response to Qs or

thru the elicitation of stories.

Combination (Explicit to explicit):-- Explicit knowledge can be shared in meetings via

documents, e-mails etc. or thrus education &

training.

Use of technology to manage & search collections of


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explicit knowledge is well established.- An ex: use text classification to assign documents

automatically.- Put a document in a shared data base. Internalization (Explicit to Tacit):-

- In order to act on information, individuals need tounderstand & internalize it, which involves creating

their own tacit knowledge.- By reading document they can to some extent, they

can re experience what others previously learned.- Also, reading doc., they have opportunity to create

knowledge by combining their existing tacit

knowledge with knowledge of others.


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- A typical activity would be to read & study doc.

From a number of data bases.

- Knowledge creation results from interaction ofpersons & tacit & explicit knowledge.

- Through interaction with others, tacit knowledge is

externalized & shared with others.- Technologies that may be applied to facilitate

knowledge conversation process:-

Tacit to Tacit Tacit To Explicit


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p

E-meetings Answering to Qs

Chat (Synchronous

Collaboration

Annotations

Explicit To Tacit Explicit To Explicit

Visualization Text Search

Browsable Video / AudioPresentation

Document & Acquisition

Basic knowledge Processes Acquisition,

Production & Integration of knowledge occur

throughout the organization to foster organizational

learning.

KNOWLEDGE LIFECYCLE MODEL1 O t id W ld


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1. Outside World

Step 1:-

Acquire Information or knowledge

Training Researching

Browsing

ReadingPublished or Printed Work

2. Individual Team or Community

Step 2:-Produce Knowledge

3. Transfer Knowledge

Step 3:-

Integrate Kno ledge


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Integrate Knowledge Expose Best Practices. (Redesign processes with

embedded knowledge) Structure & store knowledge for instant access. Share knowledge. Instruct / Present knowledge.

Knowledge Management Technologies:- Some

Soft Ware Tools

- Following s/w tools were evaluated for performance

by a Chicago based product assessment firm &

widely used in the industry:

1. WINCITE 5.0:-


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Most mature KM product in use for more than 10

yrs.

Used for competitive intelligence & few more areas. Designed to manage a shared data base & helps

analysis. The program is designed with presumption that

people will analyze & contribute value to what is

stored. Uses a group model, where putting content into

knowledge base is done by KM group but users can

suggest additions. Users can add notes with proposed, suggestions,

updates or new information. The KM group can see these notes & incorporate part

or all of them.

KM group & users can add information to the


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knowledge base by using forms. Each form contains a defined field / or fields & one

can add information manually, add as an attachment,or dynamically link to documents outside wincite, in

dedicated databases or internet. Wincite uses multidimensional data base model

organized into a relational database (RDBMS).

2. INTRASPECT 1.5:-

It creates a group memory by storing information

in maps customized to each end user &

communicated thru intranet, e-mail networked file

etc.

The programme design assumes users will both


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contribute to group memory & consume

information.

The systems peer-to-peer model grants wideauthority to contribute & inform.

Every piece of knowledge information has an e-mail

address. Information sent to the knowledge base can be

supplemented by user.

KM s/w tools.. (Contd.).

3. CHANNEL MANAGER 2.0 :-

It is a set of tools designed to gather information &

content from internal & external sources.


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applications with its main area of strength being the


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ability to push channels of information to a wide

range of desk top users.

The s/w tool is designed to gather information fromany. source (internet news feed, internal users etc.) &

broadcast it to the users who need it.The s/w user push technology as the mechanism to

deliver information in any file format. The goal of the product is not to store information in

a central repository for archival recall, but to turn

available sources into channels & disseminateinformation on a timely basis to users who need it.

The end user interface includes embedded browser &

windows explorer like navigation system.

Back web has user s/w for most desk top users


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including Windows & Macintosh.

5. KNOWLEDGE X 1.0 :- This KM s/w tool is designed to serve as a

centralized repository of categorized information &

then deliver it in forms that ease the work of analysis.

The KM s/w is most effective when its use is

centralized to a few experts who can master its

concepts, then use its dissemination features to

provide targeted, automated reports to a broader set

of consumers. The application of this tool is mainly for

competitive intelligence knowledge.


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STRATEGIC APPLICATION OF IT ISTRATEGIC APPLICATION OF IT I

E. R. PE. R. P

BUSINESS MODULES IN ERP PACKAGEBUSINESS MODULES IN ERP PACKAGE


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Business Environment & Business

Process

Financial

Management

HR

Management

Manufacturing

Quality

Management

Materials

Management

Production

Planning

Plant

Maintenance

Sales &

Distribution

ERP

SYSTEM

ERP SYSTEM


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o Business can be defined as the activities of

individuals or groups, involved in developing, producing & distributing the goods & services

needed to satisfy other peoples needs.o Business used resources to produce & services.

These resources are:-

1) Infrastructure (Land/Plant etc.)

2) Labour (Human Resource)3) Capital (Financial Resource)

o Resources become productive when combined in a

rational way for some creative or gainful purpose (.)

this is the function of the (4) th resource:


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this is the function of the (4) th resource:

Managemento Management combines the resources in different

ways to produce goods & services.

o It is the function of management to plan the effective

& efficient use of the resources available to the

enterprise.o The ERP systems help the management in making

the planning process more productive & efficient


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Resources

- Infrastructure

Produced Goods

Human Resource

inancial Resource

Management

Production

Process

ERP

Products &

Services

o ERP enables integration & automation of variousb siness f nctions (Rather than f nctioning in


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business functions (Rather than functioning in

isolation).

o Different modules in ERP are integrated they send& receive data across departmental barriers.

o Automation improves productivity & reduces

response & reaction time.

o A task which involved the co-ordination of two orthree departments, would take days in a non-erp

environment (.) with procedure integration &

automation, the same task will be completed inminutes (.)o Single action may trigger _______ lot of other

processes in different modules.

Ex:- Order Processing

BUSINESS MODULES IN ERP PACKAGE


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A) FINANCE:- Finance module of most ERP systems

will have the following sub systems:-1) Financial Accounting

- General ledger

- Accounts receivable/Payable- Special Ledger- Fixed Asset Accounting- Legal Consolidation

2) Investment Management

- Investment Planning / Budgeting / Controlling /

Depreciation Forecast / Simulation / Consolidation.

3) Controlling


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3) Controlling

- Overhead Based Costing

- Activity Based Costing- Product Cost Accounting- Profitability Analysis

4) Treasury

- Cash Management- Treasury Management

- Market RiskManagement

- Funds Management

5) Enterprise ControllingExecutive Information System


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- Executive Information System- Business Planning & Budgeting

- Profit Centre Accounting

B) MANUFACTURING (PRODUCTION)

o The major subsystems of manufacturing ERP moduleare:-

1. Material & capacity planning

2. Shop floor control3. Quality management

4. Jit/Repetitive Manufacturing

5. Cost Management

6. Engineering data mgmt.7 Engineering change control


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7. Engineering change control

8. Configuration mgmt.

9. Serialization / Lot control10.Tooling

C) HUMAN RESOURCE

o The major subsystems of HR module of ERP are:-

1. Personnel Management

- HR master data- Personnel Administration

- Information systems

- RecruitmentBenefits administration


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- Benefits administration- Salary administration

2. Organizational Management- Organizational structure- Staffing / job description

3. Payrole Accounting

4. Time Management

- Shift Planning- Work schedule- Absence Record

5. Personnel Development- Career / Succession Planning


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- Career / Succession Planning- Training Requirement

- Skills / Qualification Assessment.

D) PLANT MAINTENANCE

o Major subsystems of plant maintenance ERP moduleare:-

1. Preventive Maintenance control

2. Equipment tracking3. Component tracking

4. Plant maintenance / warranty claim tracking

5. Equipment calibration tracking ISO 9000

requirement.

E) MATERIALS MANAGEMENTo The major sub modules are:


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o The major sub-modules are:-

1. Purchasing

2. Pre-purchase activities3. Vendor evaluation

4. Inventory Management

5. Invoice verification &

6. Material inspection

F) SALES & DISTRIBUTION

o The major sub-modules are:-

1. Master data management

2. Order management

3. Ware house management


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4. Shipping

5. Billing

6. Pricing7. Sales support

8. Transportation

9. Foreign trade

ERP MARKET

o ERP software market is very competitive & fast

growingo Annual growth rate nearly 40%o ERP vendors are expanding market presence by

offering new applications such as SCM, CRM, sales

force automation etc.


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o Which ERP originated in the manufacturing market,

usage now has spread to every type of enterprise

including retail, utilities, public sector, healthcare etc.

The top five ERP vendors:-

SAP AG. 36% Oracle applications 10% People soft 7%

Baan 6% J.D. Edwards 7% Others (SSA, JBA, QAD etc.) 34%

Indian Scenario:-


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RAMCOs marshall is having 10% market share.

Others are SAP R/3, QADs MFG / PRO, OracleFinancial, Baan etc.

o Each vendor, due to historic reasons, has specialty in

particular module area, Ex:- SAP Logistics,Baan Manufacturing, People Soft HR,

Oracle Financialso Also about 50 established vendor for SME sector.

A)SAP AG Flagship product is SAP R/3 & mySAP.com.

o Systems applications & productso

Started by five Ex. IBM engineers for developing

business application softwares that were integrated.o First ERP product R/2 was launched in 1979 using


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o First ERP product R/2 was launched in 1979 using

centralized main frame system.o Redesigned as R/3 in 1992 on client-server architecture.o SAP AG is the largest ERP vendor cover 17000

customers in over 100 countries.o My SAP.com is the internet enabled ERP product.

o SAP AG has strong industry focused solution & longterm vision.

B. Oracle Corporation:- Flagship Product Oracle

Applicationso Best known for its data base s/w & related

applications (RDBMS).o 2nd largest s/w company after Microsoft.

o Oracles ERP system known as oracle applicationshaving more than 50 different modules in six major


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having more than 50 different modules in six major

categories:- Finance, Accounts Payable, HR,

Manufacturing, Supply Chain, Projects & Front Office.o Oracle has integrated its ERP solutions with the

internet & has introduced several applications in the e-

commerce.

o Tow powerful products with internet infrastructure1. Oracle 9 2 database

2. Oracle 9 2 application server

o Another significant feature of oracle is its OSBS

(oracle small business suite) provided consistent

financials, payroll, inventory control, order entry

purchase order & CRM functionality delivered as

web service.

c) People Soft inc Flagship Product People Soft 8


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o ERP s/w firm started in 1987 specialization in HR

mgmt. & financial services modules.o Enterprise solutions from people soft include

modules for manufacturing, materials mgmt.,

distributions, finance, HR, SCM.

o Main competitors:- SAP AG & oracle with longerexperience with customers & flexible attitude.

o Flagship application people soft 8 is a pure internet

based collaborative enterprise system.o People Soft 8 requires no client soft ware other than

a standard web browser giving ability to run

business any where, any time.

D. The Baan Company Flagship Product Baan ERPo Founded in 1978 in the Netherlands, Baan Started with


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o Founded in 1978 in the Netherlands, Baan Started with

s/w expertise in manufacturing industry.o

Baan ERP covers finance, procurement, manufacturing,integration & implementation, planning, sales, service

& maintenance, collaborative commerce & business

intelligence.

E. J.D. Edwards & Co. Flagship Product One Worldo J.D. Edwards was founded in 1977 in Denver (USA)

with long experience of supplying s/w for IBM as / 400

market.o One World is the ERP solution capable of running on

multiple platforms & with multiple data base.o The product includes modules for finance,

manufacturing, distribution, logistics, HR, quality

management, maintenance mgmt., data warehousing,customer support, & after sales service.


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customer support, & after sales service.o One World ERP package is more flexible & within

reach of smaller enterprises.o J.D. Edwards internet enabled version launched is

known as One World xe (xe stands for extended

enterprise).

o J.D. Edwards World Software Provides necessaryfunctionality & buift in longevity reduces problem of

obsolescence.o

Different modules available in J.D. Edwards are:- Financial suite Logistics / Distribution Manufacturing Suite

Engineering / Architecture / Construction / Real Estate


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g g Energy & chemical suite

Payroll Human Resource

Utility / Energy solutions

F. SSA System Software Associates

o SSA was founded in 1981 in Chicagoo Companys flagship product is BPCS client server V

6, which has successfully addressed the most critical

issues facing the ERP market the implementation

& integration of package applications.

ERP Present & Future


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ERP will continue to dominate the business practice

areas of financial mgmt., HR & manufacturing. Major developments will be in supply chain

management, CRM, retail, utilities etc. Major vendors will supplement direct sales thru

resellers. Will improve the implementation methodology for

faster deployment

Lower entry price point of ERP s/w to make itfinancially viable. Convergence on windows NT growing popularity of

windows NT forced ERP vendors to offer products on

this platform.


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Business Process Reengineering.


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Installation & Configuration. Project Team Training.

Business Requirement Mapping. Module Configurations. System Interface.

Data Conversion. Custom Documentation. End User Training. Acceptance Testing.

Post Implementation audit. Above steps are grouped & subdivided into four major

phases - namely

1) Detailed Discussions.


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2) Design & Customization

3) Implementation

4) Production

ERP Case Studies

The purpose of the case studies is to provide an idea of

the situations where ERP projects are implemented &

the benefits of these implementation with analysis of

ERP success & failure in implementation.

CASE:- ERP Implementation EDMAC

C C I


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Compressor Company, Inc

The case study (Distributed in the class)Highlights a success story of ERP implementation.

Major factors for success:-

1) Involvement of Mgmt. 2) Training. 3) Change Mgmt.4) Plan Ahead. 5) Allow for Fail-Safe. 6) Reward

Employees.