1

Information Systems Class Agenda07/04/06

Sock Hwa Chung

1. Syllabus

2. IT History

3. Systems Concept

(Break Time)

4. Knowledge Management – Chapter 9

5. Introduction/Email request

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Information SystemsSummer Semester 2006

• Professor: Sock Hwa Chung, PhD, MBA, FLMICollege of BusinessEastern Michigan

University• Office: • Telephone: • e-Mail Address: schung1@emich.edu• Web Page: http://people.emich.edu/schung1

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Course Objectives

The course facilitates for the student to:

1. Gain an appreciation and the importance of information systems as organizational resources

2. Develop a basic knowledge of IT3. Become familiar with the issues

related to the development of IS

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COURSE RESOURCES

• Textbook– Turban, McLean, Weatherbe. (2002). Information Technology for

Management, 3rd ed., John Wiley, U.S.A

• Optional Textbook– O’Brien, J. (2006). Introduction to Information Systems, 13th ed.,

McGraw Hill Companies, Inc., New York

• Required Readings for Project Topics:From Instructor’s Web Page

1. Data Warehousing2. Enterprise Resource Planning3. Thin Client

4. Outsourcing5. RFID6. Virtual Office

• Software: Word, PowerPoint • Instructor’s Web Page – http://people.emich.edu/schung1

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STUDENT GRADING

• Exam - 70%

• Project Report – 20%

• Project Presentation – 10%

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Course Schedule

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Announcement

• On Thursday, 07/06/06, we will organize project teams during the class hour

• Each team will have 5 (or 4) members

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History of IT

9

Waves of Change

10,000 BC Present

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Waves of Change:

Agricultural Age

10,000 BC Present8,000 BC

• Producer = Consumer

• Cottage Industries

• Apprenticeships

• Human “Engine”• Competition = f(Location)

• Producer = Consumer

• Cottage Industries

• Apprenticeships

• Human “Engine”• Competition = f(Location)

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Waves of Change:

Industrial Age

10,000 BC Present

1740 AD

• Efficiency & Centralization

• Specialization

• Mass Production

• “Steam Engine”• Competition = f(Cost, Efficiency)

• Efficiency & Centralization

• Specialization

• Mass Production

• “Steam Engine”• Competition = f(Cost, Efficiency)

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Waves of Change:

Information Age

10,000 BC Present

1950 AD

• Info Sharing & Decentralization

• Empowerment

• Mass Customization

• Computer “Engine”• Competition = f(Service, Speed, Quality)

• Info Sharing & Decentralization

• Empowerment

• Mass Customization

• Computer “Engine”• Competition = f(Service, Speed, Quality)

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Information Age

• “The First wave of change unleashed ten thousand years ago by the invention of agriculture or earthshaking”

• “The Second wave of change touched off by the industrial revolution”

• “We are the children of the next transformation. The Third Wave – Information Age”

- Alvin Toffler’s The Third Wave (1980)

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IT Milestones

1850 20101900 195

02000

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IT Milestones

1850 20101900 1950 2000

Herman Hollerith develops and

installs the 1st punched card machines

in theUS Census Bureau

Herman Hollerith develops and

installs the 1st punched card machines

in theUS Census Bureau

1890

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IT Milestones

1850 20101900 1950 2000

The Hollerith Tabulating Machine Company merges with other

companies to form International Business

Machines (IBM)

The Hollerith Tabulating Machine Company merges with other

companies to form International Business

Machines (IBM)

1912

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IT Milestones

1850 20101900 1950 2000

The 1st electronic computer is developed: Electrical

Numerical Integrator & Computer (ENIAC)

The 1st electronic computer is developed: Electrical

Numerical Integrator & Computer (ENIAC)

1946

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IT Milestones

1850 20101900 1950 2000

The 1st general-purpose computer (UNIVAC I) is

developed & installed at the US Census Bureau

The 1st general-purpose computer (UNIVAC I) is

developed & installed at the US Census Bureau

1951

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IT Milestones

1850 20101900 1950 2000

The 1st commercial business (General Electric) installs a UNIVAC I for accounting

operations

The 1st commercial business (General Electric) installs a UNIVAC I for accounting

operations

1954

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IT Milestones

1850 20101900 1950 2000

Terminology, “Information Technology (IT)” was

introduced by Levitt and Whisler in a HBR article

“Management in the 1980’s”

Terminology, “Information Technology (IT)” was

introduced by Levitt and Whisler in a HBR article

“Management in the 1980’s”

1958

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IT Milestones

1850 20101900 1950 2000

COBOL (COmmon Business Oriented Language) is

developed under the direction of Admiral Grace Hopper

COBOL (COmmon Business Oriented Language) is

developed under the direction of Admiral Grace Hopper

1960

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IT Milestones

1850 20101900 1950 2000

IBM introduces the first multitasking computer

(System 360), which contained integrated circuits &

had an operating system

IBM introduces the first multitasking computer

(System 360), which contained integrated circuits &

had an operating system

1964

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IT Milestones

1850 20101900 1950 2000

The US Department of Defense establishes ARPANET

The US Department of Defense establishes ARPANET

1969

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IT Milestones

1850 20101900 1950 2000

E. F. Codd proposes the relational database model

in Communications of the ACM

E. F. Codd proposes the relational database model

in Communications of the ACM

1970

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IT Milestones

1850 20101900 1950 2000

Intel announces the development

of the first microprocessor

Intel announces the development

of the first microprocessor

1971

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IT Milestones

1850 20101900 1950 2000

The 1st microcomputer (Altair 8800) becomes

available;Bill Gates & Paul Allen announce the 1st microcomputer version of

BASIC

The 1st microcomputer (Altair 8800) becomes

available;Bill Gates & Paul Allen announce the 1st microcomputer version of

BASIC

1974

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IT Milestones

1850 20101900 1950 2000

Steve Jobs & Steven Wozniak begin selling the Apple

microcomputer from their garage

The 1st supercomputer (Cray I) is announced

Steve Jobs & Steven Wozniak begin selling the Apple

microcomputer from their garage

The 1st supercomputer (Cray I) is announced

1976

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IT Milestones

Visicalc for the Apple II is released

Visicalc for the Apple II is released

1850 20101900 1950 2000

1979

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IT Milestones

IBM introduces the Personal Computer (PC), with an

operating system (DOS) developed by Microsoft

IBM introduces the Personal Computer (PC), with an

operating system (DOS) developed by Microsoft

1850 20101900 1950 2000

1981

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IT Milestones

Apple introduces the MacIntosh, which has a Graphical User

Interface (GUI)

Apple introduces the MacIntosh, which has a Graphical User

Interface (GUI)

1850 20101900 1950 2000

1984

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IT Milestones

Microsoft introducesWindows 1.0 for IBM-PC

compatible computers

Microsoft introducesWindows 1.0 for IBM-PC

compatible computers

1850 20101900 1950 2000

1985

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IT Milestones

The NSF creates NSFNet, linking major research universities

throughout the Unites States

The NSF creates NSFNet, linking major research universities

throughout the Unites States

1850 20101900 1950 2000

1986

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IT Milestones

Scientists at CERN (European Particle Physics Lab) develop the

technologies for theWorld Wide Web

Scientists at CERN (European Particle Physics Lab) develop the

technologies for theWorld Wide Web

1850 20101900 1950 2000

1989

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IT Milestones

NSF allows non-academic organizations to connect to

NSFNet, which becomes the Internet; withdrawal of NSF

funding begins

NSF allows non-academic organizations to connect to

NSFNet, which becomes the Internet; withdrawal of NSF

funding begins

1850 20101900 1950 2000

1991

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IT Milestones

Mosaic, the 1st Web browser, is developed by Mark Andreesen at the National Center

for Supercomputing at the University of Illinois

Mosaic, the 1st Web browser, is developed by Mark Andreesen at the National Center

for Supercomputing at the University of Illinois

1850 20101900 1950 2000

1993

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IT Milestones

Mark Andreesen & Jim Clark form Netscape Corporation &

begin marketing Navigator

Mark Andreesen & Jim Clark form Netscape Corporation &

begin marketing Navigator

1850 20101900 1950 2000

1994

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IT Milestones

Amazon.com opens for business on the Web

Amazon.com opens for business on the Web

1850 20101900 1950 2000

1995

38

IT Milestones

The US Department of Justice takes Microsoft to court,

alleging anti-trust violations

The US Department of Justice takes Microsoft to court,

alleging anti-trust violations

1850 20101900 1950 2000

1998

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IT Milestones

The new century begins with minimal disruption from the

feared Y2K bug

The new century begins with minimal disruption from the

feared Y2K bug

1850 20101900 1950 2000

2000

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IT Milestones

??

1850 20101900 1950 2000

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Timeline of Business Change

• 1880 -- Frederick Taylor ~ Efficiency • 1914 -- Henry Ford ~ Mass Production

Alfred Sloan @ GM ~ Centralization• 1931 -- Proctor & Gamble ~ Brands• 1950 -- Peter Drucker ~ Management Theories• 1960 -- “Big Business” ~ Conglomerates• 1980 -- Edward Deming ~ Quality• 1990 -- Hammer & Champy ~ Reengineering• 2000 -- Organic Organizations ~ Learning

Knowledge Management

Business Intelligence

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About Systems

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Nature of Systems

• The whole is more than the sum of parts• The whole defines the nature of the parts• The parts cannot be understood by studying

the whole• The parts are dynamically interrelated or

interdependent

– Fredrich Hegel (1770-1831)

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“All phenomena can be explained in system terms”

- von Bertalanffy (1962)

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“It is the beauty of systems that it is psycho-physical neutral, that is, its concepts and models can be applied to both material and non-material phenomena”

- von Bertalanffy (1967)

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A system is s set of two or more elements

that satisfies the following:

• The behavior of each element has an effect on the behavior of the whole

• The behavior of the elements and their effects on the whole are interdependent

• However, subgroups of the elements are formed, all have an effect on the whole, but none has an independent effect on it

- Russell Ackoff (1981)

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A Formula Defining A System

EE

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R R

System

EEE

E

R

R R

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A business organization can be

explained in system terms

A Manager can boils down to four basic

steps:

• Define the company as a system

• Establish system objectives

• Create formal subsystems

• Integrate the subsystems

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A “Concept” Allows Us to:

• Talk to another

• Exchange ideas

• Learn by applying the same concept to different substantive issues

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System Concept

• A Foundation – underlies the field of IS

• The system concept helps you understand:– Technology– Applications– Development– Management

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System

• A set of interrelated components (subsystems) that work together to achieve a common objective

• Systems are conceptualized and designed with the help of models

“A model is an abstraction of reality”

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Four Model Types

1) Physical modelsThree dimensional representation such as a

scale model

2) Narrative modelsSpoken or written

3) Mathematical modelsEquation(s)

4) Graphic modelsDrawings made up of of lines/ symbols/ shapes

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Uses of Models

• All four models facilitate understanding and communication

• The mathematical model also helps predict the future

• Graphic models are utilized extensively in designing IS

54A FlowchartA Flowchart

Sales Sales OrdersOrders

Sales Sales Orders Orders ReportReport

Sales Sales OrdersOrders

Sales Sales OrdersOrders

Edit Sales

Orders

Enter Sales Order Data

Prepare Sales Order Report

Sales Order History

File

A Data Flow DiagramA Data Flow Diagram

Customers Sales Sales OrdersOrders

Sales Sales Order Order DataData

Sales Sales Order Order ReportReport

Enter Sales Enter Sales OrdersOrders

Edit Sales Edit Sales OrdersOrders

1. Edit Sales

Orders2. Enter Sales Order Data

3. Prepare

Sales Order Report

Sales Order History File

Sales Manager

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The General Systems Model

• Graphic diagram with an accompanying narrative that depicts organizations in a general way using a systems framework

• Used to depict both the operation of a business and the management decision making process

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The Basic I-P-O System

Input Process

Output

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System Types

• Open-loop systems (without feedback loop)

• Closed-loop systems (with feedback loop)• Management control

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Process(Transformation)

Control

Input(Resources)

Output(Products)

A Closed-Loop System

Feedback Feedback

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What is feedback in a system?

Feedback refers to the ability of s system to reintroduce output as input

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Feedbacks

Positive feedback leads to change, while negative feedback leads to no change

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CONTROL

PROCESSINPUTOUTPUT

i.e., Data… Resources

i.e., information..Products

The Generic Business System asa Controlled (closed-loop) System

i.e., Corrections…Management

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What is a System?

• Input

• Processing• Output

• Control

(Feedback)

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Business IS ModelStakeholders in the Environment

The CommunityThe Community CompetitorsCompetitors

Financial InstitutionsFinancial Institutions Labor UnionsLabor Unions

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Management

Information Systems

InputInput ProcessingProcessing OutputOutput

ControlControl

FeedbackFeedback

EconomicResources

BusinessResources

Goods &Services

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Components of an IS

1. Hardware- Machines - Media

2. Software- Programs - Procedures

3. Data Resources- Data and Knowledge Bases

4. Network Resources- Communications Media/Networks

5. People Resources- End Users - IS Specialists

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Software Resources- System Software- Application Software- Procedures

Data Resources- Data Bases - Knowledge Bases

Data vs. Information

Components of an IS; continue

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IS Activities• Input Data Resources

- Source Document - User Interface

• Processing Data into Information Products

• Storage of Data Resources• Control of System Performance

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Recognizing IS

• Analyze IS

• Recognize:

IS Resources

Information Products

IS Activities

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General Systems Model in Context

• Helps adjust firm

• Provides a sense of stability

• Provides mental picture of what to expect

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Elements of Problem Solving

• Desired state

• Current state

• Constraints Internal -- limited resources Environmental -- pressures to restrict

resource flows

} Difference = Solution Criterion

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Problem

Standards

Information

Problemsolver

(manager)

Solution

Alternatesolutions

Constraints

Desired state

Current state

Elements of the Problem Solving

Process

Elements of the Problem Solving

Process

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Marketing Subsystem Manufacturing Subsystem Finance Subsystem

TopManagement

Each Functional Area is a Subsystem

Human Resources Subsystem

Information Services Subsystem

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Knowledge Management

Chapter 9

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Learning Objectives• Define knowledge and describe the different types of

knowledge.• Describe the activities involved in knowledge management. • Describe different approaches to knowledge management.• Describe the issues associated with implementing knowledge

management in organizations.• Describe the technologies that can be utilized in a knowledge

management system.• Describe the activities of the chief knowledge officer and

others involved in knowledge management.• Describe benefits as well as drawbacks to knowledge

management initiatives

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Knowledge Management

• Structuring of knowledge enables – effective and efficient problem solving– dynamic learning– strategic planning– decision making.

• Knowledge management initiatives focus on– identifying knowledge– how it can be shared in a formal manner– leveraging its value through reuse.

• Knowledge management can – promote organizational learning– help solve problems

KM is a process that helps organizations identify, select, organize, disseminate, and transfer important information and expertise that are part of the organization’s memory.

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KM – techniques, technologies and systems

Document Management

InformationCreation, Sharing,and Management

EnterpriseIntelligence

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Knowledge

• Data are a collection of:– Facts– Measurements– Statistics

• Information is organized or processed data that are:– Timely– Accurate

• Knowledge is information that is:– Contextual– Relevant– Actionable.

Knowledge is very distinct from data and information and provides a higher level of meaning about that data and information. The ability to act is an integral part of being knowledgeable.

Having knowledge implies that it can be exercised to solve a problem, whereas having information does not.

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Knowledge – Corporate Asset

• Extraordinary leverage and increasing returns. Knowledge is not subject to diminishing returns. When it is used, it is not consumed. Its consumers can add to it, thus increasing its value.

• Fragmentation, leakage, and the need to refresh. As knowledge grows, it branches and fragments. Knowledge is dynamic; it is information in action. Thus, an organization must continually refresh its knowledge base to maintain it as a source of competitive advantage.

• Uncertain value. It is difficult to estimate the impact of an investment in knowledge. There are too many intangible aspects.

• Uncertain value of sharing. Similarly, it is difficult to estimate the value of sharing the knowledge, or even who will benefit most.

• Rooted in time.

Knowledge has the following characteristics that differentiates it from an organization’s other assets

Intellectual capitalIntellectual capital or intellectual assetsintellectual assets

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Knowledge – Explicit knowledge

• Explicit knowledge (or leaky knowledge) deals with objective, rational, and technical knowledge

– Data– Policies– Procedures– Software– Documents– Products– Strategies– Goals– Mission– Core competencies

Explicit knowledge has been codified (documented) in a form that can be distributed to others or transformed into a process or strategy without requiring interpersonal interaction.

The more that knowledge is made explicit, the more economically The more that knowledge is made explicit, the more economically it can be transferred.it can be transferred.

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Knowledge – Tacit knowledge

• Tacit knowledge is the cumulative store – of the corporate experiences– Mental maps– Insights– Acumen– Expertise– Know-how– Trade secrets– Skill sets– Learning of an organization – The organizational culture

Tacit knowledge is usually in the domain of subjective, cognitive, and experiential learning; it is highly personal and difficult to formalize. It is also referred to as embedded knowledge since it is usually either localized within the brain of an individual or embedded in the group interactions within a department or business unit.

Tacit knowledge is generally slow and costly to transfer and Tacit knowledge is generally slow and costly to transfer and can be plagued by ambiguity.can be plagued by ambiguity.

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Knowledge – KM Systems

• A functioning knowledge management system follows six steps in a cycle dynamically refining information over time1. Create knowledge. 2. Capture knowledge. 3. Refine knowledge.4. Store knowledge. 5. Manage knowledge.6. Disseminate knowledge.

The goal of KM is for an organization to be aware of individual and collective knowledge so that it may make the most effective use of the knowledge it has. Firms recognize the need to integrate both explicit and tacit knowledge into a formal information systems - Knowledge Management System (KMS)

As knowledge is disseminated, individuals develop, create, and As knowledge is disseminated, individuals develop, create, and identify new knowledge or update old knowledge, which they identify new knowledge or update old knowledge, which they replenish into the system.replenish into the system.

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KM Life Cycle

Knowledge Knowledge Management CycleManagement Cycle

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KM Initiatives

• Knowledge management initiatives have one of three aims:– to make knowledge visible mainly through

• Maps• yellow pages• hypertext

– to develop a knowledge-intensive culture,

– to build a knowledge infrastructure

• There are several activities or processes that surround the management of knowledge. – Knowledge Creation

– Knowledge Sharing

– Knowledge Seeking

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• Knowledge creation or knowledge acquisition is the generation of new insights, ideas, or routines.

– Socialization mode refers to the conversion of tacit knowledge to new tacit knowledge through social interactions and shared experience.

– Combination mode refers to the creation of new explicit knowledge by merging, categorizing, reclassifying, and synthesizing existing explicit knowledge

– Externalization refers to converting tacit knowledge to new explicit knowledge

– Internalization refers to the creation of new tacit knowledge from explicit knowledge.

• Knowledge sharing is the exchange of ideas, insights, solutions, experiences to another individuals via knowledge transfer computer systems or other non-IS methods.

• Knowledge seeking is the search for and use of internal organizational knowledge.

K M - Creation

Activities or ProcessesActivities or Processes

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KM Approaches

• The process approach attempts to codify organizational knowledge through formalized controls, processes, and technologies frequently through the use of information technologies to enhance the quality and speed of knowledge creation and distribution. These technologies include:

– Intranets– data warehousing– knowledge repositories– decision support tools– groupware

• The process approach is favored by firms that sell relatively standardized products since the knowledge in these firms is fairly explicit because of the nature of the products & services.

There are two fundamental approaches to knowledge management: a process and a practice approach. Since the two are not mutually exclusive a knowledge management initiative will probably involve both approaches.

ProcessProcess

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KM Approaches

• The practice approach to KM assumes that organizational knowledge is tacit in nature and formal controls, processes, and technologies are not suitable for transmitting this type of understanding.

• Rather than building formal systems to manage knowledge, this approach builds social environments or communities to facilitate the sharing of tacit understanding.

• The practice approach is typically adopted by companies that provide highly customized solutions to unique problems. The valuable knowledge for these firms is tacit in nature, which is difficult to express, capture, and manage.

PracticePractice

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KM – Information Technology

• Components of KM Systems:

– Communication technologies allow users to access needed knowledge and to communicate with each other.

– Collaboration technologies provide the means to perform group work.

– Storage and retrieval technologies store and manage knowledge.

KM is more than a technology or product, it is a methodology applied to business practices. However, information technology is crucial to the success of KM systems.

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IT in KM

• Communication technologies: E-mail, the Internet, corporate intranets, and other web based tools provide communication capabilities.

• Collaboration technologies: Collaborative computing capabilities such as electronic brainstorming enhance group work especially for knowledge contribution .

• Storage and retrieval technologies:Originally, a database management system to store and

manage explicit knowledgeElectronic document management system and specialized

storage systemCollaborative computing systemTools used to capture, store, and manage tacit knowledge

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Technologies Supporting KM

• Artificial intelligence. The study of human thought processes and the representation of those processes in machines.

• Intelligent Agents. Work and provide assistance in their daily tasks.

• Knowledge Discovery in Databases. A process used to search for and extract useful information from volumes of documents and data.

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Seven KM ToolsTool Description Vendor/Product Examples

Collaboration computing Groupware products; used to enhance tacit knowledge transfer within an organization

Group systems; Lotus Notes / Domino

Knowledge server Contain the main knowledge management software, including the knowledge repository; provides access to other knowledge information , and data.

Hummingbird knowledge server; Autonomy’s intelligent data operating layer (IDOL)

Enterprise knowledge portal Presents a single access point into a knowledge management system ‘ organizes the sources of unstructured information in an organization .

Plum tree; Hyper wave

Electronic document management Allows users to access needed documents over a corporate intranet; allows electronic collaboration on document creation and revision.

Doc Share; Lotus Notes

Knowledge –harvesting tools Capture organizational knowledge unobtrusively; may be embedded in a knowledge management system.

Knowledge Mail ; Active Knowledge

Search engines Locate and retrieve documents from vast collections in corporate repositories .

Google: Verity ; Inktomi

Knowledge management suites Integrate communications, collaboration, and storage technologies in one complete, out-of- the- box solution

Web Sphere; knowledge X

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KM – Supporting Technologies

• AI methods: expert systems, neural networks, fuzzy logic, genetic algorithms, etc.– Assist in identifying expertise– Elicit knowledge automatically and semi-automatically– Provide interfacing through natural language processors– Enable intelligent searches through intelligent agents.

• Intelligent agents are software systems that learn how users work and provide assistance in their daily tasks.

• Knowledge Discovery in Databases (KDD) is a process used to search for and extract useful information from volumes of documents and data. It includes tasks such as:

– knowledge extraction– data archaeology– data exploration– data pattern processing– data dredging– information harvesting

Technologies enable advanced functionality in KM systems and form the base for future innovations.

91

KM – Supporting Technologies

• Data mining - the process of searching for previously unknown information or relationships in large databases, is ideal for extracting knowledge from databases, documents, e-mail, etc.

• Model warehouses & model marts extend the role of data mining and knowledge discovery by acting as repositories of knowledge created from prior knowledge-discovery operations

• Extensible Markup Language (XML) enables standardized representations of data structures, so that data can be processed appropriately by heterogeneous systems without case-by-case programming.

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KM – IT Products

• Most KM software packages include one or more of the following tools:– collaborative computing tools

– knowledge servers

– enterprise knowledge portals

– electronic document management systems

– knowledge harvesting tools

– search engines

– KM suites.

Technology tools that support knowledge management are called “knowware”.

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Knowledge Management – IT Services

• Consulting Firms provide assistance– in establishing knowledge management systems – measuring their effectiveness – Support for vertical market software

• Application service providers (ASPs) have evolved as a form of KMS outsourcing on the Web. Offering a complete knowledge management solution, including a KM suite and the consulting to set it up.

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Knowledge Management – Integration

• Decision Support Systems (DSS)

• Artificial Intelligence

• Customer Relationship Management Systems (CRM)

• Supply Chain Management Systems (SCM)

• Corporate Intranets

• Extranets

KM systems are enterprise-wide and must be integrated with other information systems in an organization.

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KM – IntegrationKM systems integration

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KM – People

• Chief knowledge officer’s (CKO) role are to maximize the firm’s knowledge assets, design and implement knowledge management strategies, effectively exchange knowledge assets internally and externally, and promote system use.

• Chief executive officer’s (CEO) is responsible for championing the KM effort.• Chief financial officer (CFO) must ensure that the financial resources are

available.• Chief operating officer (COO) must ensure that people begin to embed

knowledge management practices into their daily work processes• Chief information officer (CIO) is responsible for the IT vision of the

organization and the IT architecture, including databases, application software, etc.

• KMS developers are the individuals who actually develop the system• KMS staff catalogue and manage the knowledge, train users

Managing a KMS requires great effort. Many issues related to management, people, and culture must be considered to make the system a success. Some of those issues concern implementation and effective use of the system.

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Chief Knowledge Officer

A CKO must do the following (1998, Duffy):

• Set knowledge management strategic priorities.

• Establish a knowledge repository of best practices.

• Gain a commitment from senior executives to support a learning environment.

• Teach information seekers how to ask better & smarter questions.

• Establish a process for managing intellectual assets.

• Obtain customer satisfaction information in near real time.

• Globalize KM.

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KM – Metrics

• Asset-based approach starts with the identification of intellectual assets and then focuses management’s attention on increasing their value.

• The second uses variants of a balanced scorecard, where financial measures are balanced against customer, process, and innovation measures.

• Financial Metrics (tangible benefits)

• Non-Financial Metrics (intangible benefits)

Organizations can gain several benefits from implementing a knowledge management strategy. This valuation can be based upon an asset-based approach or one that links knowledge to its applications and business benefits.

Measuring Success or FailuresMeasuring Success or Failures

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MANAGERIAL ISSUES• Organizational culture change - how can we change organizational culture so

that people are willing both to contribute knowledge to and use knowledge from a KMS? There must be strong leadership, clearly expressed goals, user involvement in the system, and deployment of an easy-to-use system that provides real value to employees. A viable reward structure for contributing and using knowledge must also be developed.

• How to store tacit knowledge - extremely difficult. Most KMSs (based on the network storage model) store explicit knowledge about the tacit knowledge that people possess. When the knowledgeable people leave an organization, they take their knowledge with them. Since knowledge requires active use by the recipient, it is important for the person generating knowledge to articulate it in a way that another, appropriately educated person can understand it.

• How to measure the tangible and intangible benefits of KMS - a number of ways to measure the value of intellectual assets and of providing them to the organization.

• Determining the roles of the various personnel in a KM effort.

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MANAGERIAL ISSUES Continued

• The lasting importance of KM - KM is extremely important. It is not another management fad. If it is correctly done, it can have massive impact by leveraging know-how throughout the organization. If it is not done, or is not correctly done, the company will not be able to effectively compete against another major player in the industry that does KM correctly.

• Implementation in the face of quickly changing technology. This is an important issue to address regarding the development of many IT systems. Technology has to be carefully examined, and experiments done, to determine what makes sense. By starting now, an organization can get past the managerial and behavioral issues, which have greater impact on the eventual success (or not) of a KMS. As better and cheaper technology is developed, the KMS can be migrated over to it, just as legacy systems have migrated to the PC.

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Introduction1. Your Name2. Your Home Town3. Your Major/Minor4. Course Objectives5. Your Hobbies6. Your aspiration in 10 years** Email me what you introduced yourself to the

class today by 6pm, Wed, 07/05/06