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Chapter 11

Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Managing Knowledge in
the Digital Firm

11.1

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Objectives

1. What is knowledge management? Why do
businesses today need knowledge
management programs and systems for
knowledge management?
2. What types of systems are used for enterprisewide knowledge management? How do they
provide value for organizations?
3. How do knowledge work systems provide value
for firms? What are the major types of
knowledge work systems?

11.2

© 2005 by Prentice Hall




Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Objectives

4. What are the business benefits of using
intelligent techniques for knowledge
management?
5. What major management issues and
problems are raised by knowledge
management systems? How can firms
obtain value from their investments in
knowledge management systems?

11.3

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Management Challenges

1. Designing knowledge systems that
genuinely enhance organizational
performance
2. Identifying and implementing

appropriate organizational applications
for artificial intelligence

11.4

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

The Knowledge Management Landscape
Important Dimensions of Knowledge

11.5



Knowledge



Wisdom



Tacit knowledge




Explicit knowledge

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

The Knowledge Management Landscape
U.S enterprise knowledge management software revenues, 2001-2006

Figure 11-1
11.6

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

The Knowledge Management Landscape
Important Dimensions of Knowledge



11.7

Knowledge:
– Is a firm asset
– Has different forms

– Has a location
– Is situational

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

The Knowledge Management Landscape
Organizational Learning and Knowledge Management

11.8



Organizational learning: Creation of
new standard operating procedures
and business processes reflecting
experience



Knowledge management: Set of
processes developed in an
organization to create, gather, store,
disseminate, and apply knowledge
© 2005 by Prentice Hall



Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

The Knowledge Management Landscape
The knowledge management value chain

Figure 11-2
11.9

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

The Knowledge Management Landscape
The Knowledge Management Value Chain

11.10



Knowledge acquisition



Knowledge storage




Knowledge dissemination



Knowledge application

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

The Knowledge Management Landscape
The Knowledge Management Value Chain

11.11



Chief Knowledge Officer (CKO):
Senior executive in charge of the
organization's knowledge
management program



Communities of Practice (COP):
Informal groups who may live or
work in different locations but share
a common profession

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Types of Knowledge Management Systems
Types of Knowledge Management Systems

11.12



Enterprise Knowledge Management Systems:
General purpose, integrated, and firm-wide systems
to collect, store and disseminate digital content and
knowledge



Knowledge Work Systems (KWS): Information
systems that aid knowledge workers in the creation
and integration of new knowledge in the organization



Intelligent Techniques: Datamining and artificial
intelligence technologies used for discovering,
codifying, storing, and extending knowledge


© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Types of Knowledge Management Systems
Major types of knowledge management systems

Figure 11-3
11.13

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
Structured Knowledge Systems

11.14



Structured knowledge



Semistructured knowledge




Knowledge repository



Knowledge network

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
Enterprise-wide knowledge management systems

Figure 11-4
11.15

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
KWorld’s knowledge domain


Figure 11-5
11.16

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
KPMG knowledge system processes

Figure 11-6
11.17

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
Window on Technology

DaimlerChrysler Learns to Manage
Its Digital Assets

11.18




What are the management benefits
of using a digital asset management
system?



How does ADAM provide value for
DaimlerChrysler?

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
Organizing Knowledge: Taxonomies and Tagging

11.19



Taxonomy: Method of classifying
things according to a predetermined
system



Tagging: Once a knowledge

taxonomy is produced, documents
are tagged with proper classification

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
Hummingbird’s integrated knowledge management system

Figure 11-7
11.20

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
Knowledge Networks

Key Functions of an Enterprise Knowledge Network

11.21




Knowledge exchange services



Community of practice support



Auto-Profiling Capabilities



Knowledge management services

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
The problem of distributed knowledge

Figure 11-8
11.22

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e

Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
AskMe Enterprise knowledge network system

Figure 11-9
11.23

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm

Enterprise-Wide Knowledge Management Systems
Portals, Collaboration Tools, and Learning Management Systems



11.24

Teamware: Group collaboration
software running on intranets that is
customized for teamwork

© 2005 by Prentice Hall


Essentials of Management Information Systems, 6e
Chapter 11 Managing Knowledge in the Digital Firm


Enterprise-Wide Knowledge Management Systems
Portals, Collaboration Tools, and Learning Management Systems



11.25

Learning Management Systems
(LMS): Tools for the management,
delivery, tracking, and assessment
of various types of employee
learning

© 2005 by Prentice Hall


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