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Information, Knowledge, Technologies, Concepts and Systems Management

Information, Knowledge, Technologies, Concepts and Systems Management. Dr Sherif Kamel Department of Management School of Business, Economics and Communication. Outline. Characteristics of IS Data, information and knowledge Classifications of IS Evolution of management support systems

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Information, Knowledge, Technologies, Concepts and Systems Management

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  1. Information, Knowledge, Technologies, Concepts and Systems Management Dr Sherif Kamel Department of Management School of Business, Economics and Communication

  2. 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

  3. 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

  4. Data, information and knowledge • One of the primary goals of IS is to economically process data into information or knowledge • 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 • Information • Data that have been organized so that they have meaning and value to the recipient • Knowledge • Data or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise

  5. Classifications of IS • Organizational structure • Departmental information systems • Use of several application programs in one functional area or department • 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 • Inter-organizational systems • Some information systems connect several organizations • Functional area • Accounting information system • Finance information system • Manufacturing (operations/production) information system • Marketing information system • Human resources management information system

  6. Classifications of IS • Support provided • Transaction processing system (TPS) • Management information system (MIS) • Knowledge management system (KMS) • Office automation system (OAS) • Decision support system (DSS) • Enterprise information system (EIS) • Group support system (GSS) • Intelligent support system • System architecture • A mainframe-based system • A standalone personal computer (PC) • A distributed or a networked computing system

  7. Classifications of IS • Activity supported • Operational • Day-to-day operations of an organization • Managerial • Middle-management activities such as short-term planning, organizing, and control • Strategic • Decisions that significantly change the manner in which business is being done

  8. Evolution of management support systems (MSS) • Early 1950sTransaction 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 1980sExpert Systems (ES), Knowledge Management Systems (KMS) • 1990s Artificial Neural Networks (ANN)

  9. Transaction processing systems (TPS) • Support the monitoring, collection, storage, processing, and dissemination of the organization’s basic business transactions • Provide the input data for many applications involving other support systems • Considered critical to the success of any organization • Collects data continuously, frequently on a daily basis, or even in “real time”

  10. 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

  11. New strategic systems (eCommerce) • Electronic commerce has become a new way of conducting business in the last decade… • In this new model, business transactions take place via telecommunications networks, primarily the Internet • 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

  12. Information systems and people

  13. Information Infrastructurebuilding blocks • Information architecture • Computer hardware • Software development • Networks and communication facilities (including the Internet and intranets) • Databases • Information management personnel

  14. Information architecture • High-level map or plan of the information requirements in an organization • Architecture designers require two kinds of information • Business needs of the organization • Objectives • Problems • Contribution that IT can make • 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

  15. Types of information architecture • Mainframe environment • Processing is done by a mainframe computer • Users work with passive (or “dumb”) terminals, which are used to enter or change data and access information from the mainframe • PC environment • Only PCs form the hardware information architecture • Networked (distributed) environment • Distributed processing divides the processing work between two or more computers

  16. Client/server architecture • Client/server architecture • 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 • Client/server architecture maximizes the use of computer resources • Client/server architecture gives a company as many access points to data as there are PCs on the network

  17. 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) • 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

  18. 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

  19. 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)

  20. 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 • Vertical exchanges position themselves as the hub for all buying, selling, and related services in a single market category • Horizontal exchanges focus on a specific function or need applicable to many different industries

  21. Mobile commerce • mCommerce is the buying and selling of goods and services through wireless handheld devices such as cellular telephone and personal digital assistants • Next-generation eCommerce, mCommerce enables users to access the Internet without a place to plug in to • Wireless Application Protocol (WAP) is the emerging technology behind mCommerce • Using Bluetooth technology, WAP-enabled smart phones offer fax, eMail, and phone capabilities all in one

  22. 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

  23. 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? • 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)

  24. 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

  25. 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 • Tacit knowledge is usually in the domain of subjective, cognitive, and experiential learning • Explicit knowledge deals with more objective, rational, and technical knowledge

  26. Innovation External Environment Solve existing problems Adapt to a changing environment Outside - In Create knowledge and information Create new environment Redefine problems and solutions Inside - Out

  27. Knowledge Cycle Data Information Knowledge

  28. Epistemology and Ontology • Epistemology is the Theory of Knowledge • Ontology is the Knowledge Creating Entities • Individuals • Groups • Organizations • Inter-organizations

  29. Knowledge Creation Process • There are 4 modes of knowledge conversion created when tacit and explicit knowledge interact with each other • Socialization • Externalization • Combination • Internalization

  30. 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

  31. Knowledge and information Epistemological Dimension Explicit Knowledge Tacit Knowledge Ontological Dimension Individual Group Organization Inter-Organization Knowledge Level

  32. Types of information Syntactic Semantic Volume of information Meaning of information More important to knowledge creation

  33. Knowledge conversion • Which modes of knowledge is more truthful? • Western School: [Explicit Knowledge] • Japanese School: [Tacit Knowledge] • It is widely believed that explicit and tacit knowledge complement each other

  34. 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

  35. Knowledge creation spiral • Socialization mode • Starts with building a field for interaction • Facilitates sharing of experiences and mental models between members • Externalization mode • Triggered by meaningful dialogue or collective reflection • Help individuals using metaphors articulate hinder tacit knowledge that is otherwise difficult to communicate • Combination mode • Triggered by networking • Reflects knowledge acquisition and knowledge dissemination • Internalization mode • Triggered by learning by doing

  36. Spiral of organizational knowledge creation Externalization Epistemological Dimension Combination Explicit Knowledge Tacit Knowledge Internalization Socialization Ontological Dimension Individual Group Organization Inter-Organization Knowledge Level

  37. Knowledge-based economy • Rapid changes in the business environment cannot be handled in traditional ways • Firms are much larger, with higher turnover and require better tools for collaboration, communication, and knowledge sharing • 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

  38. Learning organization (culture) • The term learning organization refers to an organization’s capability of learning from its past experience • 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)

  39. Objectives of knowledge management • Create knowledge repositories • Improve knowledge access • Enhance the knowledge environment • Manage knowledge as an asset

  40. Knowledge management cycle • Create knowledge • Capture knowledge • Refine knowledge • Store knowledge • Manage knowledge • Disseminate knowledge

  41. Organizational knowledge repositories • Knowledge network model • The individual who has the knowledge transfers expertise through person-to-person contacts • Knowledge repository model • 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 model • Many organizations use a hybrid of the network and repository models

  42. Knowledge Repositories • Databases • It is possible to structure part of a knowledge repository as a database • Data warehouses • Large repositories of valuable data, can be used for knowledge management, especially in conjunction with customer relationship management (CRM) systems • Electronic Documents • Electronic document management systems

  43. 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

  44. 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

  45. 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 • Decision Support Systems (DSS) • Artificial Intelligence (AI) • Database Management Systems (DBMS) • Customer Relationship Management Systems (CRM) • Supply Chain Management Systems (SCM) • Corporate Intranets and Extranets

  46. 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?

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