Information, Knowledge, Technologies, Concepts and Systems Management

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1 Dr Sherif Kamel Department f Management Schl f Business, Ecnmics and Cmmunicatin Infrmatin, Knwledge, Technlgies, Cncepts and Systems Management

2 Outline Characteristics f IS Data, infrmatin and knwledge Classificatins f IS Evlutin f management supprt systems Infrmatin infrastructure Rle f IS department Knwledge management Managerial issues Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

3 Characteristics f IS Different infrmatin systems can exist in ne rganizatin (cmprised f many sub-systems) Infrmatin systems and infrmatin netwrks Inter-rganizatinal infrmatin systems invlve infrmatin flw in tw r mre rganizatins Enterprise-wide system r inter-rganizatinal IS is cmpsed f large and small cmputers hardware cnnected by different types f netwrks Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

4 Data, infrmatin and knwledge One f the primary gals f IS is t ecnmically prcess data int infrmatin r knwledge Data - Items refer t an elementary descriptin f things, events, activities, and transactins that are recrded, classified, and stred, but nt rganized t cnvey any specific meaning Infrmatin - Data that have been rganized s that they have meaning and value t the recipient Knwledge - Data r infrmatin that have been rganized and prcessed t cnvey understanding, experience, accumulated learning, and expertise Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

5 Classificatins f IS Organizatinal structure Departmental infrmatin systems - Use f several applicatin prgrams in ne functinal area r department Enterprise infrmatin systems (EIS) - While a departmental IS is usually related t a functinal area, the cllectin f all departmental applicatins when cmbined with ther functins applicatins cmprises the enterprise-wide infrmatin system Inter-rganizatinal systems - Sme infrmatin systems cnnect several rganizatins Functinal area Accunting infrmatin system Finance infrmatin system Manufacturing (peratins/prductin) infrmatin system Marketing infrmatin system Human resurces management infrmatin system Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

6 Classificatins f IS Supprt prvided Transactin prcessing system (TPS) Management infrmatin system (MIS) Knwledge management system (KMS) Office autmatin system (OAS) Decisin supprt system (DSS) Enterprise infrmatin system (EIS) Grup supprt system (GSS) Intelligent supprt system System architecture A mainframe-based system A standalne persnal cmputer (PC) A distributed r a netwrked cmputing system Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

7 Classificatins f IS Activity supprted Operatinal Day-t-day peratins f an rganizatin Managerial Middle-management activities such as shrt-term planning, rganizing, and cntrl Strategic Decisins that significantly change the manner in which business is being dne Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

8 Evlutin f management supprt systems (MSS) Early 1950s 1960s Late 1960s Early 1970s Early 1980s Mid 1980s 1990s Transactin Prcessing System (TPS) Management Infrmatin Systems (MIS) Office Autmatin System (OAS) Decisin Supprt System (DSS) Executive Infrmatin Systems, Enterprise Infrmatin Systems (EIS) and Grup Supprt Systems (GSS) Expert Systems (ES), Knwledge Management Systems (KMS) Artificial Neural Netwrks (ANN) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

9 Transactin prcessing systems (TPS) Supprt the mnitring, cllectin, strage, prcessing, and disseminatin f the rganizatin s basic business transactins Prvide the input data fr many applicatins invlving ther supprt systems Cnsidered critical t the success f any rganizatin Cllects data cntinuusly, frequently n a daily basis, r even in real time Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

10 Functinal management infrmatin systems (MIS) Ensures that business strategies add value in an efficient manner Prvides peridic infrmatin abut peratinal efficiency, effectiveness, and prductivity by extracting infrmatin frm the crprate database and prcessing it accrding t the needs f the user Can be cnstructed in whle r in part by end-users Used fr planning, mnitring, and cntrl Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

11 New strategic systems (ecmmerce) Electrnic cmmerce has becme a new way f cnducting business in the last decade In this new mdel, business transactins take place via telecmmunicatins netwrks, primarily the Internet ecmmerce prvides rganizatins with innvative and strategic advantages, such as; - Increased market share - Better ability t negtiate with suppliers - Better ability t prevent cmpetitrs frm entering int their territry Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

12 Infrmatin systems and peple Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

13 Infrmatin Infrastructure building blcks Infrmatin architecture Cmputer hardware Sftware develpment Netwrks and cmmunicatin facilities (including the Internet and intranets) Databases Infrmatin management persnnel Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

14 Infrmatin architecture High-level map r plan f the infrmatin requirements in an rganizatin Architecture designers require tw kinds f infrmatin Business needs f the rganizatin - Objectives - Prblems - Cntributin that IT can make IS that already exist in an rganizatin and hw they can be cmbined amng themselves r with future systems t supprt the rganizatin s infrmatin needs Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

15 Types f infrmatin architecture Mainframe envirnment Prcessing is dne by a mainframe cmputer Users wrk with passive (r dumb ) terminals, which are used t enter r change data and access infrmatin frm the mainframe PC envirnment Only PCs frm the hardware infrmatin architecture Netwrked (distributed) envirnment Distributed prcessing divides the prcessing wrk between tw r mre cmputers Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

16 Client/server architecture Client/server architecture Divides netwrked cmputing units int tw majr categries; clients and servers - Client is a cmputer such as a PC r a wrkstatin attached t a netwrk, which is used t access shared netwrk resurces - Server is a machine that is attached t this same netwrk and prvides clients with these services Client/server architecture maximizes the use f cmputer resurces Client/server architecture gives a cmpany as many access pints t data as there are PCs n the netwrk Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

17 Electrnic data interchange (EDI) The electrnic mvement f specially frmatted standard business dcuments, such as rders, bills, and cnfirmatins sent between business partners In the past, EDI ran n expensive value-added netwrks (VANs) These are private, data-nly wide area netwrks used by multiple rganizatin t prvide high capacity, security, and ecnmies in the cst f netwrk service Internet-based EDI Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

18 Tri-cmpnents f web-based systems Internet is a wrldwide system f cmputer netwrks - netwrk f netwrks in which users at any ne cmputer can, if they have permissin, get infrmatin frm any ther cmputer Intranet is the use f WWW technlgies t create a private netwrk, usually within ne enterprise (security gateway such as a firewall is used t segregate the intranet frm the Internet) Extranet can be viewed as an external extensin f the enterprise intranet Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

19 ecmmerce and strefrnts One f the natural utcmes f the Internet and the Wrld Wide Web has been ecmmerce Web-based systems are the engines f ecmmerce ecmmerce enable business and inventry transactins t be cnducted seamlessly ver the Internet 24/7 An electrnic strefrnt is the Web-equivalent f a shwrm (displaying prducts) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

20 Electrnic markets and exchanges Electrnic markets are a netwrk f interactins and relatinships ver which infrmatin, prducts, services, and payments are exchanged Electrnic exchanges are central web-based lcatins where buyers and sellers interact dynamically, with buyer and sellers ging back and frth n a price Vertical exchanges psitin themselves as the hub fr all buying, selling, and related services in a single market categry Hrizntal exchanges fcus n a specific functin r need applicable t many different industries Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

21 Mbile cmmerce mcmmerce is the buying and selling f gds and services thrugh wireless handheld devices such as cellular telephne and persnal digital assistants Next-generatin ecmmerce, mcmmerce enables users t access the Internet withut a place t plug in t Wireless Applicatin Prtcl (WAP) is the emerging technlgy behind mcmmerce Using Bluetth technlgy, WAP-enabled smart phnes ffer fax, , and phne capabilities all in ne Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

22 Rle f an IS department The rle f the IS department is changing frm purely technical t mre managerial and strategic The psitin f the IS department tends t be elevated frm a unit reprting t a functinal department, t a unit reprting t a senir vice president r t the CEO The rle f the directr f the IS department is changing frm a technical manager t a senir executive IS as a functin culd be centralized r decentralized r a cmbinatin f the tw Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

23 Managerial issues Transitin t netwrked cmputing is a cmplicated prcess Migrating frm a architecture t anther requires human and technical resurces and capacities Infrmatin systems is at the cre f strategy develpment in the rganizatin Hw much infrastructure is needed? Justifying infrmatin system applicatins is nt an easy jb due t the intangible benefits and rapid changes in technlgies Rle f end-users is invaluable in IS develpment and management Ethical Issues (invading privacy f users r creating advantages t certain individuals at the expense f thers) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

24 Overview knwledge management Each rganizatin prcesses infrmatin frm the external envirnment in rder t adapt t new circumstances Such mechanism des nt help in cmprehending innvatin Innvatin needs t cme frm within the rganizatin and diffusing it t the external envirnment the market place Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

25 Knwledge management definitin Knwledge management (KM) is a prcess that helps rganizatins identify, select, rganize, disseminate, and transfer imprtant infrmatin and expertise that are part f the rganizatin s memry Knwledge is infrmatin that is cntextual, relevant, and actinable Tacit knwledge is usually in the dmain f subjective, cgnitive, and experiential learning Explicit knwledge deals with mre bjective, ratinal, and technical knwledge Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

26 Innvatin External Envirnment Outside - In Slve existing prblems Adapt t a changing envirnment Create knwledge and infrmatin Inside - Out Create new envirnment Redefine prblems and slutins Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

27 Knwledge Cycle Data Infrmatin Knwledge Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

28 Epistemlgy and Ontlgy Epistemlgy is the Thery f Knwledge Ontlgy is the Knwledge Creating Entities - Individuals - Grups - Organizatins - Inter-rganizatins Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

29 Knwledge Creatin Prcess There are 4 mdes f knwledge cnversin created when tacit and explicit knwledge interact with each ther Scializatin Externalizatin Cmbinatin Internalizatin Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

30 Imprtant Tips Scializatin leads t sympathized knwledge such as shared mental mdels and technical skills Externalizatin utputs cnceptual knwledge such as develpment f analgies and metaphrs Cmbinatin gives rise t systemic knwledge such as prttype and new technlgies Internalizatin prduces peratinal knwledge such as fcusing n a prject, sharing the experience, dcumentatin use Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

31 Knwledge and infrmatin Epistemlgical Dimensin Explicit Knwledge Tacit Knwledge Individual Grup Organizatin Inter-Organizatin Ontlgical Dimensin Knwledge Level Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

32 Types f infrmatin Syntactic Semantic Vlume f infrmatin Meaning f infrmatin Mre imprtant t knwledge creatin Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

33 Knwledge cnversin Which mdes f knwledge is mre truthful? Western Schl: [Explicit Knwledge] Japanese Schl: [Tacit Knwledge] It is widely believed that explicit and tacit knwledge cmplement each ther Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

34 Knwledge creatin spiral Organizatinal knwledge creatin is a cntinuus and dynamic interactin between tacit and explicit knwledge The interactin is shaped by different shifts between different mdes f knwledge cnversin Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

35 Knwledge creatin spiral Scializatin mde Starts with building a field fr interactin Facilitates sharing f experiences and mental mdels between members Externalizatin mde Triggered by meaningful dialgue r cllective reflectin Help individuals using metaphrs articulate hinder tacit knwledge that is therwise difficult t cmmunicate Cmbinatin mde Triggered by netwrking Reflects knwledge acquisitin and knwledge disseminatin Internalizatin mde Triggered by learning by ding Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

36 Spiral f rganizatinal knwledge creatin Epistemlgical Dimensin Explicit Knwledge Cmbinatin Externalizatin Tacit Knwledge Individual Grup Scializatin Organizatin Inter-Organizatin Knwledge Level Internalizatin Ontlgical Dimensin Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

37 Knwledge-based ecnmy Rapid changes in the business envirnment cannt be handled in traditinal ways Firms are much larger, with higher turnver and require better tls fr cllabratin, cmmunicatin, and knwledge sharing Firms must develp strategies t sustain cmpetitive advantage by leveraging their intellectual assets fr ptimum perfrmance Managing knwledge is nw critical fr firms spread ut ver wide gegraphical areas, and fr virtual rganizatins Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

38 Learning rganizatin (culture) The term learning rganizatin refers t an rganizatin s capability f learning frm its past experience T build a learning rganizatin, it must tackle three critical issues: - Meaning (determining a visin f the learning rganizatin) - Management (determining hw the firm is t wrk) - Measurement ( assessing the rate and level f learning) Ability f an rganizatin t learn, develp memry, and share knwledge is dependent n its culture Over time rganizatins learn what wrks and what de nt wrk (rganizatinal culture) Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

39 Objectives f knwledge management Create knwledge repsitries Imprve knwledge access Enhance the knwledge envirnment Manage knwledge as an asset Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

40 Knwledge management cycle Create knwledge Capture knwledge Refine knwledge Stre knwledge Manage knwledge Disseminate knwledge Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

41 Organizatinal knwledge repsitries Knwledge netwrk mdel The individual wh has the knwledge transfers expertise thrugh persn-t-persn cntacts Knwledge repsitry mdel Knwledge cntributin and use fllws a tw-step transfer prcedure f persn-t-repsitry and repsitry-t-persn - Captured knwledge is stred in a knwledge repsitry, a cllectin f bth internal and external knwledge Hybrid mdel Many rganizatins use a hybrid f the netwrk and repsitry mdels Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

42 Knwledge Repsitries Databases It is pssible t structure part f a knwledge repsitry as a database Data warehuses Large repsitries f valuable data, can be used fr knwledge management, especially in cnjunctin with custmer relatinship management (CRM) systems Electrnic Dcuments Electrnic dcument management systems Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

43 Knwledge management benefits Reductin in lss f intellectual capital when peple leave the cmpany Reductin in csts by decreasing the number f times the cmpany must repeatedly slve the same prblem Ecnmies f scale in btaining infrmatin frm external prviders Increase in prductivity by making knwledge available mre quickly and easily Increase in emplyee satisfactin by enabling greater persnal develpment and empwerment Strategic cmpetitive advantage in the marketplace Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

44 Chief knwledge fficer (CKO) Set knwledge management strategic pririties Establish a knwledge repsitry f best practices Gain a cmmitment frm senir executives t supprt a learning envirnment Teach infrmatin seekers hw t ask better and smarter questins Establish a prcess fr managing intellectual assets Obtain custmer satisfactin infrmatin in near real time Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

45 Knwledge management and systems integratin Knwledge management is an enterprise system that must be integrated with ther enterprise and infrmatin systems in an rganizatin including Decisin Supprt Systems (DSS) Artificial Intelligence (AI) Database Management Systems (DBMS) Custmer Relatinship Management Systems (CRM) Supply Chain Management Systems (SCM) Crprate Intranets and Extranets Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

46 Managerial issues Organizatinal culture change and transfrmatin Hw can peple cntribute t knwledge acquisitin and sharing? Hw t measure the tangible and intangible benefits? Implementatin is a successful factr fr IT Hw can the rganizatin develp a successful knwledge management system? Cpyright 2002 Turban, McLean and Wetherbe Cpyright 2005 Sherif Kamel

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