Information, Knowledge, Technologies, Concepts and Systems Management
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Transcript of Information, Knowledge, Technologies, Concepts and Systems Management
Information, Knowledge, Technologies, Concepts and Systems Management
Dr Sherif KamelDepartment of Management
School of Business, Economics and Communication
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Outline
Characteristics of IS Data, information and knowledge Classifications of IS Evolution of management support systems Information infrastructure Role of IS department Knowledge management Managerial issues
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Characteristics of IS
Different information systems can exist in one organization (comprised of many sub-systems)
Information systems and information networks Inter-organizational information systems involve
information flow in two or more organizations Enterprise-wide system or inter-organizational IS
is composed of large and small computers hardware connected by different types of networks
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Data, information and knowledge
One of the primary goals of IS is to economically process data into information or knowledge
o Data Items refer to an elementary description of things, events, activities,
and transactions that are recorded, classified, and stored, but not organized to convey any specific meaning
o Information Data that have been organized so that they have meaning and value to
the recipiento Knowledge
Data or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Classifications of IS
Organizational structureo Departmental information systems
Use of several application programs in one functional area or department
o Enterprise information systems (EIS) While a departmental IS is usually related to a functional area, the
collection of all departmental applications when combined with other functions’ applications comprises the enterprise-wide information system
o Inter-organizational systems Some information systems connect several organizations
Functional areao Accounting information systemo Finance information systemo Manufacturing (operations/production) information systemo Marketing information systemo Human resources management information system
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Classifications of IS
Support provided o Transaction processing system (TPS)o Management information system (MIS)o Knowledge management system (KMS) o Office automation system (OAS)o Decision support system (DSS)o Enterprise information system (EIS)o Group support system (GSS)o Intelligent support system
System architectureo A mainframe-based systemo A standalone personal computer (PC)o A distributed or a networked computing system
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Classifications of IS
Activity supportedo Operational
– Day-to-day operations of an organization
o Managerial– Middle-management activities such as short-term planning, organizing,
and control
o Strategic– Decisions that significantly change the manner in which business is
being done
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Evolution of management support systems (MSS) Early 1950s Transaction Processing System (TPS) 1960s Management Information Systems
(MIS) Late 1960s Office Automation System (OAS) Early 1970s Decision Support System (DSS) Early 1980s Executive Information Systems,
Enterprise Information Systems (EIS) and Group Support Systems
(GSS) Mid 1980s Expert Systems (ES), Knowledge
Management Systems (KMS) 1990s Artificial Neural Networks (ANN)
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Transaction processing systems (TPS)
Support the monitoring, collection, storage, processing, and dissemination of the organization’s basic business transactions
o Provide the input data for many applications involving other support systems
o Considered critical to the success of any organizationo Collects data continuously, frequently on a daily basis, or even in
“real time”
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Functional management information systems (MIS) Ensures that business strategies add value in an efficient
manner Provides periodic information about operational efficiency,
effectiveness, and productivity by extracting information from the corporate database and processing it according to the needs of the user
Can be constructed in whole or in part by end-users Used for planning, monitoring, and control
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
New strategic systems (eCommerce)
Electronic commerce has become a new way of conducting business in the last decade…o In this new model, business transactions take place via
telecommunications networks, primarily the Interneto eCommerce provides organizations with innovative and
strategic advantages, such as; Increased market share Better ability to negotiate with suppliers Better ability to prevent competitors from entering
into their territory
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Information systems and people
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Information Infrastructurebuilding blocks Information architecture Computer hardware Software development Networks and communication facilities (including the
Internet and intranets) Databases Information management personnel
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Information architecture
High-level map or plan of the information requirements in an organization
Architecture designers require two kinds of informationo Business needs of the organization
Objectives Problems Contribution that IT can make
o IS that already exist in an organization and how they can be combined among themselves or with future systems to support the organization’s information needs
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Types of information architecture
Mainframe environmento Processing is done by a mainframe computero Users work with passive (or “dumb”) terminals, which are used to
enter or change data and access information from the mainframe
PC environmento Only PCs form the hardware information architecture
Networked (distributed) environmento Distributed processing divides the processing work between two or
more computers
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Client/server architecture
Client/server architectureo Divides networked computing units into two major categories;
clients and servers Client is a computer such as a PC or a workstation attached to a
network, which is used to access shared network resources Server is a machine that is attached to this same network and provides
clients with these services
o Client/server architecture maximizes the use of computer resources
o Client/server architecture gives a company as many access points to data as there are PCs on the network
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Electronic data interchange (EDI)
The electronic movement of specially formatted standard business documents, such as orders, bills, and confirmations sent between business partners
In the past, EDI ran on expensive value-added networks (VANs)
o These are private, data-only wide area networks used by multiple organization to provide high capacity, security, and economies in the cost of network service
Internet-based EDI
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Trio-components of web-based systems
Internet is a worldwide system of computer networks - network of networks in which users at any one computer can, if they have permission, get information from any other computer
Intranet is the use of WWW technologies to create a private network, usually within one enterprise (security gateway such as a firewall is used to segregate the intranet from the Internet)
Extranet can be viewed as an external extension of the enterprise intranet
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
eCommerce and storefronts
One of the natural outcomes of the Internet and the World Wide Web has been eCommerce
Web-based systems are the engines of eCommerce eCommerce enable business and inventory transactions to
be conducted seamlessly over the Internet 24/7 An electronic storefront is the Web-equivalent of a
showroom (displaying products)
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Electronic markets and exchanges
Electronic markets are a network of interactions and relationships over which information, products, services, and payments are exchanged
Electronic exchanges are central web-based locations where buyers and sellers interact dynamically, with buyer and sellers going back and forth on a price
o Vertical exchanges position themselves as the hub for all buying, selling, and related services in a single market category
o Horizontal exchanges focus on a specific function or need applicable to many different industries
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Mobile commerce
mCommerce is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants
o Next-generation eCommerce, mCommerce enables users to access the Internet without a place to plug in to
o Wireless Application Protocol (WAP) is the emerging technology behind mCommerce
o Using Bluetooth technology, WAP-enabled smart phones offer fax, eMail, and phone capabilities all in one
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Role of an IS department
The role of the IS department is changing from purely technical to more managerial and strategic
The position of the IS department tends to be elevated from a unit reporting to a functional department, to a unit reporting to a senior vice president or to the CEO
The role of the director of the IS department is changing from a technical manager to a senior executive
IS as a function could be centralized or decentralized or a combination of the two
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Managerial issues
Transition to networked computing is a complicated process
Migrating from a architecture to another requires human and technical resources and capacities
Information systems is at the core of strategy development in the organization
How much infrastructure is needed? o Justifying information system applications is not an easy job due to
the intangible benefits and rapid changes in technologies
Role of end-users is invaluable in IS development and management
Ethical Issues (invading privacy of users or creating advantages to certain individuals at the expense of others)
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Overview – knowledge management
Each organization processes information from the external environment in order to adapt to new circumstances
Such mechanism does not help in comprehending innovation
Innovation needs to come from within the organization and diffusing it to the external environment – the market place
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge management definition
Knowledge management (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
Knowledge is information that is contextual, relevant, and actionable
o Tacit knowledge is usually in the domain of subjective, cognitive, and experiential learning
o Explicit knowledge deals with more objective, rational, and technical knowledge
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Innovation
ExternalEnvironment
Solve existing problems
Adapt to a changing
environment
Outside - In
Create knowledge and
information
Create new environment
Redefine problems and
solutions
Inside - Out
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge Cycle
Data Information Knowledge
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Epistemology and Ontology
Epistemology is the Theory of Knowledge Ontology is the Knowledge Creating Entities
Individuals Groups Organizations Inter-organizations
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge Creation Process
There are 4 modes of knowledge conversion created when tacit and explicit knowledge interact with each othero Socializationo Externalizationo Combinationo Internalization
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Important Tips
Socialization leads to sympathized knowledge such as shared mental models and technical skills
Externalization outputs conceptual knowledge such as development of analogies and metaphors
Combination gives rise to systemic knowledge such as prototype and new technologies
Internalization produces operational knowledge such as focusing on a project, sharing the experience, documentation use
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge and information
Knowledge Level
Individual
Ontological Dimension Group Organization Inter-Organization
Epistemological Dimension
TacitKnowledge
ExplicitKnowledge
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Types of information
Volume of information
Meaning of information
Syntactic Semantic
More important to knowledge creation
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge conversion
Which modes of knowledge is more truthful?o Western School: [Explicit Knowledge]o Japanese School: [Tacit Knowledge]
It is widely believed that explicit and tacit knowledge complement each other
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge creation spiral
Organizational knowledge creation is a continuous and dynamic interaction between tacit and explicit knowledge
The interaction is shaped by different shifts between different modes of knowledge conversion
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge creation spiral
Socialization modeo Starts with building a field for interactiono Facilitates sharing of experiences and mental models between
members
Externalization modeo Triggered by meaningful dialogue or collective reflectiono Help individuals using metaphors articulate hinder tacit knowledge
that is otherwise difficult to communicate
Combination modeo Triggered by networkingo Reflects knowledge acquisition and knowledge dissemination
Internalization modeo Triggered by learning by doing
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Spiral of organizational knowledge creation
Knowledge Level
Individual
Ontological Dimension Group Organization Inter-Organization
Epistemological Dimension
TacitKnowledge
ExplicitKnowledge
Externalization
Combination
Socialization
Internalization
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge-based economy
Rapid changes in the business environment cannot be handled in traditional ways
o Firms are much larger, with higher turnover and require better tools for collaboration, communication, and knowledge sharing
o Firms must develop strategies to sustain competitive advantage by leveraging their intellectual assets for optimum performance
Managing knowledge is now critical for firms spread out over wide geographical areas, and for virtual organizations
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Learning organization (culture)
The term learning organization refers to an organization’s capability of learning from its past experience
o To build a learning organization, it must tackle three critical issues: Meaning (determining a vision of the learning organization) Management (determining how the firm is to work) Measurement ( assessing the rate and level of learning)
Ability of an organization to learn, develop memory, and share knowledge is dependent on its culture
Over time organizations learn what works and what doe not work (organizational culture)
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Objectives of knowledge management
Create knowledge repositories Improve knowledge access Enhance the knowledge environment Manage knowledge as an asset
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge management cycle
Create knowledge Capture knowledge Refine knowledge Store knowledge Manage knowledge Disseminate knowledge
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Organizational knowledge repositories
Knowledge network modelo The individual who has the knowledge transfers expertise through
person-to-person contacts
Knowledge repository modelo Knowledge contribution and use follows a two-step transfer
procedure of person-to-repository and repository-to-person Captured knowledge is stored in a knowledge repository, a collection of
both internal and external knowledge
Hybrid modelo Many organizations use a hybrid of the network and repository
models
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge Repositories
Databaseso It is possible to structure part of a knowledge repository as a
database
Data warehouseso Large repositories of valuable data, can be used for knowledge
management, especially in conjunction with customer relationship management (CRM) systems
Electronic Documentso Electronic document management systems
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge management benefits
Reduction in loss of intellectual capital when people leave the company
Reduction in costs by decreasing the number of times the company must repeatedly solve the same problem
Economies of scale in obtaining information from external providers
Increase in productivity by making knowledge available more quickly and easily
Increase in employee satisfaction by enabling greater personal development and empowerment
Strategic competitive advantage in the marketplace
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Chief knowledge officer (CKO)
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 and smarter
questions Establish a process for managing intellectual assets Obtain customer satisfaction information in near real time
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Knowledge management and systems integration Knowledge management is an enterprise system that must
be integrated with other enterprise and information systems in an organization including
o Decision Support Systems (DSS)o Artificial Intelligence (AI)o Database Management Systems (DBMS)o Customer Relationship Management Systems (CRM)o Supply Chain Management Systems (SCM)o Corporate Intranets and Extranets
Copyright © 2005 Sherif KamelCopyright © 2002 Turban, McLean and Wetherbe
Managerial issues
Organizational culture change and transformation How can people contribute to knowledge acquisition and
sharing? How to measure the tangible and intangible benefits? Implementation is a successful factor for IT How can the organization develop a successful knowledge
management system?