SAIT-I (Knowledge Management & ERP)

8/2/2019 SAIT-I (Knowledge Management & ERP)

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STRATEGIC APPLICATION OF

INFORMATION TECHNOLOGYUnit - I

KNOWLEDGE MANAGEMENT :

Building & knowledge Creating Company:- In an

economy where the only certainty is uncertainty, the one

sure source of competitive advantage is knowledgeWhen markets shift, competitors multiply, products

become obsolete almost over night successful

companies are those that consistently create new

knowledge, disseminating it widely throughout theorganization & quickly embody it in new technologies &

products these activities define the knowledge

creating company, whose sloe business is continuous

innovation. Knowledge creating companies.


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Making personal knowledge available to others is the

central activity of the knowledgecreating companies

it takes place continuously & at all levels of the

organization.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.

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, bestpractices, forecast & problemfixes.


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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 organizationallearning & knowledge creation.

They are designed to provide rapid feedback to

knowledge workers, encourage behaviour changes by

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-line1

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 knowledge basesfor 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 the organization.

2. Making & direct connection between an organizationsintellectual assets both explicit (recorded) & tacit

(personal know how)and positive business results.

In practice, KM often encompasses identifying &

mapping intellectual assets within the organization,


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making vast amounts of corporate information

accessible, 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. Market valuation of a company largely depends on

intangible asset like its knowledge base.

Knowledge unlike any physical asset, delivers

increasing returns.


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KM helps avoid unnecessary work duplication,

expensive reinvention & repeated mistakes.

KM can save your company from knowledge

walkouts. KM can compress delivery schedule & help you deliver

ahead of time.

KM mutually reinforces corporate agility. The ability of

companies to react comes from their knowledge & thisagility reinforces their ability to apply such knowledge.

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.


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2. Knowledge Sharing:- Distributions & making available

what is already known.

Ex:- An expert system helps & technical call centre help

desk.3. Knowledge Utilization:- Learning is integrated into the

organization apply in new situations

- sharing & utilizations take place same time.

Data Base

Capture Tools

Acquisition Sharing

Utilization

Communication

Network

Basic Knowledge

Management

Technology

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

businesses gather information specific to their use.

Logic:- Is the sequential decision making process in an

organizational context.

Technology:- Particularly the information technology,

aimed at information & knowledge.


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1) Processed Data Actionable Information

2) Gives facts only Allows Making

predictions

3) Clear, structured,

simple can be

expressed in written

form

Intuitive, hard to

communicate, difficult to

express in words

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Strategy:- Business strategy which incorporates,

information & knowledge.

Knowledge Management:- Is about connecting people

to people & people to information to create competitiveadvantage.

COMPARING INFORMATION & KNOWLEDGE

INFORMATION KNOWLEDGE

4) Ob i d b Li i i


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4) Obtained bycalculating data

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 theirexperience11


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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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Characteristic Tacit Explicit

1 Nature:- Personal Can be codified

2 DevelopmentProcess-

Difficult torecord

Can be systematicallyrecorded

3 Location:- Stored in the

head of

people

Stored in documents /

databases13

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

Ch t i ti T it E li it


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Characteristic Tacit Explicit

4 IT Support:- Hard to

manage,

share orsupport with

IT

Well supported by

existing IT

5 MediumNeeded:- Needs &Rich

Communicat

ion Medium

Can be transferredthru conventional

electronic channel

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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 based not

only on its physical resources but also on intangibleknowledge assets.

Some firms can perform better than others because they

have better knowledge about how to create, produce &

deliver products & services

Judgment

Experience

ValueAssumption


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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 isneeded to support business process & decisions.

The KMS also links the firm to external sources of

knowledge.

KMS support processes for discovering & codifyingknowledge, sharing knowledge distributing knowledge as

well as the processes for creating new knowledge &

integrating it into the business organization.

KMS applications help companies map sources of

knowledge, create corporate knowledge directories of

employees with special expertise, identify & share best

practices & codify knowledge of experts so that it can be

embedded in information s stems & available to others.


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KMS also includes tools for knowledge discovery that

enable the organization to recognize patterns & important

relationships in large pools of data.

ROLE OF KNOWLEDGE MANAGEMENTSYSTEMS IN BUSINESS ORGANIZATION

1. Creating Knowledge KMS Provides knowledge

workers with graphics, analytical, document mgmt. tools

& also access to internal/external data to generate newideas.

2. Discovering & codifying knowledge Artificial

intelligence 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

simultaneousl on the same document from man

OrganizationalProc

ess


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different locations & co-ordinate their activities.

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.

Knowledge assets:- Organizational knowledge regarding

how to efficiently & effectively perform business

processes & create new products & services that enables

the business to create value.

Knowled e assets are as im ortant for com etitive


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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 refers to the set of processes developed in an

organization to create, gather, store, transfer & apply

knowledge.

Information technology plays an important role in KMby supporting these processes for creating, identifying &

leveraging knowledge across the organization.

Business organizations have created explicit knowledge

mgmt. programs for protecting & distributing knowledge

th h id tifi d & f di i f


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they have identified & for discovering new sources of

knowledge.

- these programs are headed by a chief knowledge

officer (CKO)

I- ALIGNING KNOWLEDGE MANAGEMENT WITH

BUSINESS STRATEGY

Knowledge Management A strategic perspective:- Inthe 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 notsustainable.

Initiatives like TQM, BPR, SCM, CRM etc resulted in

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 & FrameworkStrategy 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 a source of

competitive advantage if they process certain

characteristics of being rare, durable and difficult toimitate.

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


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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 of realignment

hence any strategy based on market & product mix orresources or capabilities may not provide a firm with

sustainable competitive advantage

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 modern

organization.

Present industry scenario an organization does not enjoy


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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 .

Experience &

Knowledge

Creativity &

Innovation

New ways of

CombiningExisting 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 the knowledgeexisting in the organization & harness the knowledge

thru appropriate KM strategy & align this strategy with

the business strategy.

IIKNOWLEDGE MANAGEMENT TECHNOLOGY

& THE LEARNING ORGANIZATION

The technology perspective:- Some of the technologies

associated with KM:-o Internet / Intranet

o Data Warehousing

o Data Mining

o AI / Expert Systems

o Information Retrieval


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o Information Retrieval

o Electronic Publishing Technology

o Push Technology

o Simulationo Document Management

o Collaboration

o Groupware

o DBMSo Web Mapping Tools

o Help Desk Technology

KM like any other top management initiative may use

technology as an important enabler. Systems Perspective Systems & Infrastructure for

Knowledge Management

Information systems can promote organizational learning

by identifying, capturing, codifying & distributing both

explicit & tacit knowledge


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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 theirbest practices & make knowledge of these practices more

widely available to employees.

Best Practices:- Are the most successful solutions or

problem solving methods that have been developed by aspecific organization or industry.

In addition to improving existing work practices, the

knowledge can be preserved as organizational memory to

train future employees or to help them with decisionmaking.

Organizational memoryIs the stored learning from an

organizations history that can be used for decision

making & other purpose.


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Information systems can also provide knowledge

networks for linking people so that individuals with

special areas of expertise can be easily identified & tacit

knowledge can be shared. 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 systems

2 Office Systems

3 Artificial Intelligence Systems

4 Knowledge work systems

IT INFRASTRUCTURE FOR KNOWLEDGE


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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 & Codify

Knowledge

Artificial intelligenceSystems

Expert Systems

Nevral Nets

Fuzzy Logic

4. Create Knowledge

Knowledge Work Systems

CAD Investment Work Stations

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IT INFRASTRUCTURE FOR KNOWLEDGE

MANAGEMENT

IT i f f KM


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Managing Documents Word Processing / DTP /

Web Publishing / Work

flow Managers.

Scheduling Electronic Calendars /

Groupware / Intranets 30

IT infrastructure for KM:-

Networks/Databases/Processors/Software/Internet/Tools

etc. are used heavily for above systems

Distributing Knowledge:- Office & DocumentManagement Systems

Office Systems:- Are any application of information

technology that increases productivity of information

workers.

OFFICE ACTIVITY TECHNOLOGY

Communicating E-Mail / Voice Mail /


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Communicating E-Mail / Voice Mail /

Groupware / Intranets /

Digital Answering System

Managing Data Desktop Data Bases /Spread Sheets / User

Friendly Interfaces to Main

frame data bases

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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.

Creating Knowledge:- Knowledge work systems (KWS)

KWS are information systems that aid knowledge


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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 work thatcreates 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 itdevelops in the external world.

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


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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 integratedinto the business.

Requirements of Knowledge Work Systems:

1) Must give knowledge workers the specialized tools they

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 complex calculations

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 SYSTEMS


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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 create

computer generated simulations that emulate real lifesituation

Ex:- Aircraft designstress patterns.

Virtual reality applications are being developed for the

web using & standard called (VRML) or Virtual realityModeling Language.

3) Investment Work Station:-

Powerful desktop computer for financial specialists,

which is optimized to access & manipulate massive

amounts of financial data.


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amounts 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.

Firms like DSP Merrill Lynch have installed investmentworkstations 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 but who

share a common professional interest. An important

source of expertise for organizations.

Ex: Linux users group in a corporation that primarily


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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:-

- 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 consulting

firms, law firms & financial management companies

found rou ware an es eciall owerful 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 theorganizations knowledge resource.

Enterprise Information Portal:-

- Software application that enables companies to provide

users with a single gateway to internal & external sourcesof information.

- Portals help individuals navigate through various

knowledge resources also called knowledge portals

- Portals provide single point access to the firms


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- Portals provide single point access to the firms

knowledge resources & helps the firm coordinate

information / decision

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 to


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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 intelligence technology

to capture individual & collective knowledge & to codify

& extend their knowledge base (AI).

AI is the effort to develop computer based systems (bothhardware & software) that behave as humans.

Such systems would exibit logic, reasoning, intuition &

commonsense qualities that we associate with human

bein s.

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 bypeople

Handle massive & complex problems

Capturing KnowledgeExpert Systems:-

Expert systems are knowledge intensive computer

program that captures the expertise of a human in limited


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p g p p

domain of knowledge.

Ex: Diagnosing a cars ignition system, rules of thumb

used by real world experts can be understood, codified &

kept in a machine.

Expert systems lack the breadth of knowledge & the

understanding of fundamental principles of an human

expert. They are quite narrow. The model of human knowledge used by expert system is

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


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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.

U D ib Th P bl1


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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 specialists


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In CBR, Descriptions of past cases of human 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 indata 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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NEURAL NETWORK

Input Layer Hidden Layer Output Layer

Income Good Credit

Risks

Debt

Age

Payment

Record

Bad Credit

Risks

Neural network applications are emerging for business,


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pp g g ,

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 directcredit 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 explainwhy they arrived at a particular solution.

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


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NONAKAS MODEL (SECI MOD)

o According to Prof. Ikujiro Nonaka, knowledge creation

is a spiral process of interaction between explicit & tacit

knowledge.

Socialization

Empathizing

Embodying

Internalization

Externalization

Articulate

Connecting

Combination

Taci

t

Tacit

Tacit Tacit

Explicit Explicit

Nonacas Model (Seci Model)

Explicit

Explic

it

Interactions between the explicit & tacit knowledge lead


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p gto 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 of tacitknowledge 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):-

- By its nature tacit knowledge is difficult to convert into

explicit knowledge.


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p g- 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 in

dialog 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

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 to


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

number of data bases.

- Knowledge creation results from interaction of persons

& 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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Tacit to Tacit Tacit To Explicit

E-meetings Answering to Qs

Chat (Synchronous

Collaboration

Annotations

Explicit To Tacit Explicit To Explicit

Visualization Text Search

Browsable Video / Audio

Presentation

Document & Acquisition

52

Basic knowledge Processes Acquisition, Production &

Integration of knowledge occur throughout theorganization to foster organizational learning.

KNOWLEDGE LIFECYCLE MODEL


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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 Knowledge


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g g

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:- Most mature KM productin use for more than 10 yrs.

Used for competitive intelligence & few more areas.

Designed to manage a shared data base & helps analysis.

The ro ram is desi ned with resum tion that eo le

will analyse & contribute value to what is stored.


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y

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 knowledge

base by using forms.

Each form contains a defined field / or fields & one can

add information manually, add as an attachment, ordynamically link to documents outside wincite, in

dedicated databases or internet.

Wincite uses multidimensional data base model

or anized into a relational database (RDBMS).

2. INTRASPECT 1.5:-


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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

contribute to groupmemory & consume information.

The systems peer-to-peer model grants wide authority 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.

Uses push technology to send it to the users who need it.


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System runs on windows NT server & can use any

connectivity compliance data base.

Channel manager does not hold any the actual files &other data any the actual files & other data but just the

pointers to it & thus it is designed to be conservative with

storage space.

The strength of channel manager is its model for rapidproliferation of organized information & low cost of

ownership.

4. BACK WEB 4.0 :-

This s/w tool can contribute to a range of KMapplications with its main area of strength being the

ability to push channels of information to a wide range

of desk top users.

The s/w tool is desi ned to ather information from an

source (internet news feed, internal users etc.) &


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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 & disseminate information 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 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 anal sis.

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


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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 I

E. R. P

BUSINESS 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 arational way for some creative or gainful purpose (.) this

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

o Management combines the resources in different ways to

produce goods & services.

o It is the function of management to plan the effective &


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efficient use of the resources available to the enterprise.

o The ERP systems help the management in making the

planning process more productive & efficient

Resources

- Infrastructure

Produced Goods

- Human Resource

- Financial Resource

Management

Production

Process

ERP

Products &

Services

o ERP enables integration & automation of variousb i f i (R h h f i i i i l i )


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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 or three

departments, would take days in a non-erp environment(.) with procedure integration & automation, the same

task will be completed in minutes (.)

o Single action may trigger lot of other processes in

different modules.Ex:- Order Processing

BUSINESS MODULES IN ERP PACKAGE

A) FINANCE:- Finance module of most ERP systems will

have the following sub systems:-1) Fi i l A i


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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

- Overhead Based Costing- Activity Based Costing

- Product Cost Accounting

- Profitability Analysis

4) Treasury

- Cash ManagementT M


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- Treasury Management

- Market Risk Management

- Funds Management

5) Enterprise Controlling

- Executive Information System

- Business Planning & Budgeting

- Profit Centre AccountingB) MANUFACTURING (PRODUCTION)

o The major subsystems of manufacturing ERP module

are:-

1. Material & capacity planning2. Shop floor control

3. Quality management

4. Jit/Repetitive Manufacturing

5. Cost Management

6. Engineering data mgmt.7 E i i h l


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7. Engineering change control

8. Configuration mgmt.

9. Serialization / Lot control

10.Tooling

C) HUMAN RESOURCE

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

1. Personnel Management

- HR master data

- Personnel Administration- Information systems

- Recruitment

- Benefits administration

- Salary administration

2. Organizational ManagementO i ti l t t


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- Organizational structure

- Staffing / job description

3. Payrole Accounting

4. Time Management

- Shift Planning

- Work schedule

- Absence Record5. Personnel Development

- Career / Succession Planning

- Training Requirement

- Skills / Qualification Assessment.

D) PLANT MAINTENANCE

o Major subsystems of plant maintenance ERP module

are:-

1. Preventive Maintenance control2 E i t t ki


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2. Equipment tracking

3. Component tracking

4. Plant maintenance / warranty claim tracking

5. Equipment calibration trackingISO 9000 requirement.

E) MATERIALS MANAGEMENT

o The major sub-modules are:-1. Purchasing

2. Pre-purchase activities

3. Vendor evaluation

4. Inventory Management5. Invoice verification &

6. Material inspection

F) SALES & DISTRIBUTION

o The major sub-modules are:-


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j

1. Master data management

2. Order management

3. Ware house management4. Shipping

5. Billing

6. Pricing

7. Sales support8. Transportation

9. Foreign trade

ERP MARKET

o ERP software market is very competitive & fast growing

o Annual growth rate nearly 40%

o ERP vendors are expanding market presence by offering

new applications such as SCM, CRM, sales forcet ti t


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automation etc.

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 applications10% People soft7%

Baan6%

J.D. Edwards7%

Others (SSA, JBA, QAD etc.)34% Indian Scenario:-

RAMCOs marshall is having 10% market share.

Others are SAP R/3, QADs MFG / PRO, Oracle

Financial, Baan etc.

o Each vendor, due to historic reasons, has speciality inti l d l E SAP L i ti


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particular module area, Ex:- SAP Logistics,

Baan Manufacturing, People Soft HR,

Oracle Financials

o Also about 50 established vendor for SME sector.

A) SAP AGFlagship product is SAP R/3 & my SAP.com.

o Systems applications & products

o Started by five Ex. IBM engineers for developingbusiness application softwares that were integrated.

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.


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o Another significant feature of oracle is its OSBS (oracle


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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

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 astandard web browser giving ability to run business any


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standard web browser giving ability to run business any

where, any time.

D. The Baan Company Flagship Product Baan ERP

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 OneWorld

o J.D. Edwards was founded in 1977 in Denver (USA) withlong 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 mgmt., maintenancemgmt data warehousing customer support & after sales


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mgmt., data warehousing, customer support, & after sales

service.

o OneWorld 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.EdwardsWorld

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

Energy & chemical suite


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deployment Lower entry price point of ERP s/w to make it financially


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Lower entry price point of ERP s/w to make it financially

viable.

Convergence on windows NT growing popularity of

windows NT forced ERP vendors to offer products on this

platform.

Web enablingMove from client server to web based ERP

s/w. New business sectorsERP applications in service vertical

markets such as government, healthcare, finance, customer

service etc.

ERP Implementation & Case Study ERP implementation can be a challenging task for first

timers or veterens handling a migration.

Implementation has t be done in a phased manner (step by

step).

Total implementations time may be 18-24 months. The normal steps involved are:-


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The normal steps involved are:-

Project Planning

Business & Operation Analysis.

Business Process Reengineering.

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

phasesnamely


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p y

1) Detailed Discussions.

2) Design & Customisation

3) Implementation4) 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 Compressor


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Company, Inc

The case study (Distributed in the class) Highlights asuccess 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.

SAIT-I (Knowledge Management & ERP)

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Transcript of SAIT-I (Knowledge Management & ERP)