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Knowledge Management for E-Business

Knowledge Management for E-Business. Dr. Larry Kerschberg, Co-Director E-Center for E-Business George Mason University http://eceb.gmu.edu/ ER Conference Tutorial, 30 November 2001. Presentation Outline. Knowledge management concepts, tools and techniques.

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Knowledge Management for E-Business

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  1. Knowledge Management for E-Business Dr. Larry Kerschberg, Co-Director E-Center for E-Business George Mason University http://eceb.gmu.edu/ ER Conference Tutorial, 30 November 2001

  2. Presentation Outline • Knowledge management concepts, tools and techniques. • Enterprise data, information and knowledge resources, • E-Business drivers, architectures and players, • Role of XML (eXtensible Markup Language), • E-Business Frameworks (B2C, B2B, Net Markets) • Conclusions. 2001 © Larry Kerschberg.

  3. Strategic Drivers for Knowledge Management • The management of organizational knowledge resources is crucial to maintaining competitive advantage. • Organizations need to motivate and enable their knowledge workers to be more productive through knowledge sharing and reuse. • The Internet and World Wide Web are revolutionizing the way an enterprise does business, science and engineering! 2001 © Larry Kerschberg.

  4. Knowledge versus Information • Knowledge is about beliefs and commitment. (Searle, Speech Acts, 1969). • Knowledge, in contrast to information, is about acts and action. • Knowledge is intelligence put to work. • “Knowledge is a dynamic human process of justifying personal belief toward the ‘truth’” (Nonaka and Tekeuchi, 1995). 2001 © Larry Kerschberg.

  5. Two Dimensions of Knowledge Creation • Ontological and Epistemological Dimensions • Ontological Dimension • Individuals create knowledge while working within an organization that provides the context for knowledge development. • Organizational knowledge creation is a process that amplifies individual knowledge and crystallizes it as part of the organization’s knowledge network. • Knowledge creation process takes place in an expanding “community of interaction,” crossing intra- and inter-organizational levels and boundaries. 2001 © Larry Kerschberg.

  6. Epistemological Dimension of Knowledge Creation • Tacit Knowledge is personal, context-specific, difficult to formalize and explain. • Know-how, crafts and skills; • Human beings create mental models, e.g., schemata, paradigms, perspectives, beliefs and viewpoints, of the world by making and manipulating analogies in their minds. • Explicit knowledge is codified knowledge and refers to knowledge that is transmittable in formal systematic language. (Polanyi, 1966). • Documents, reports, memos, messages, presentations, database schemas, blueprints, architectural designs, specifications, simulations. 2001 © Larry Kerschberg.

  7. The Knowledge Creation Spiral Dialogue LinkingExplicitKnowledge BuildingCommonGround Learning by Doing 2001 © Larry Kerschberg.

  8. Knowledge Contents 2001 © Larry Kerschberg.

  9. Knowledge Contents • Sympathized knowledge – includes shared mental models and technical skills. • Conceptual knowledge – created through metaphors, analogy and model creation. • Systemic knowledge – creates prototypes, new services, new methods, etc. • Operational knowledge – creates know-how regarding project management, production processes, new-product usage and feedback, etc. 2001 © Larry Kerschberg.

  10. Enterprise Knowledge Resources • Internal Sources • Organizational tacit and explicit knowledge. • Core competencies, expertise and experts. • Patents, Best Practices Business Processes. • External Sources • Books, papers, patents, and technical reports. • Research services, e.g., the Gartner Group & Forrester. • External consultants. • Best Practices in Case Tools, Oracle, SAP. • Competitor’s products, services and people. • The Web and Internet information sources. 2001 © Larry Kerschberg.

  11. Enterprise Data, Information and Knowledge • Modern enterprises are creating data at an unprecedented pace. • Information is data which has been processed to provided value-added insights. • Knowledge is information that is compelling and can be used to take action in decision-making situations. • E-Business considerations require KM of business processes, partnerships, end-to-end relationship management, and protection of Intellectual Property. • IP over IP! 2001 © Larry Kerschberg.

  12. Knowledge Management Architecture • Knowledge management requires several components: • Access to both internal and external information sources, • Repositories that contain explicit knowledge, • Processes to acquire, refine, store, retrieve, disseminate and present knowledge, • Organizational incentives and management roles to support these activities, • People who facilitate, curate, and disseminate knowledge within the organization. • Information technology to provide automation support for many of the above activities, 2001 © Larry Kerschberg.

  13. KM Architecture 2001 © Larry Kerschberg.

  14. Knowledge Management Process Model. Acquisition Refinement Storage/Retrieval Distribution Presentation • Expertise • Domain Model • Business Rules • Ownership;Federation Agreements, Data Sources • External Sources and Formats. • Wrappers • Politics of data • Data Cleansing • Indexing • Metadata Tagging • Concept Formulation • Information Integration • Ontology & Taxonomy • Knowledge Curation. • Storage and indexing of Knowledge • Concept-based Retrieval • Retrieval by Author, Content, Threads, etc. • Knowledge Security. • Intranet & Internet • Knowledge Portals • XML • Active Subscriptions • Discussion Groups. • Digital Rights Management • User Profiles for dynamic tailoring links. • Knowledge creation, update annotation, and storage in Knowledge Repository. • Collaboration Environments 2001 © Larry Kerschberg.

  15. Knowledge Management System 2001 © Larry Kerschberg.

  16. KM Application:Interactive Knowledge Sharing. • Organizational learning through experience sharing, case studies and “know-how” discussion threads. • Technical forums allow participants to share knowledge on problem-domain solutions. • Curators and facilitators continually monitor forums to identify important threads, encourage participation, and support user training. • Buckman Laboratories. • http://www.knowledge-nurture.com/ 2001 © Larry Kerschberg.

  17. KM Application:Electronic Publishing • Value-added knowledge dissemination of Market Research Reports, Memoranda, Newsletters. • Repository consisting of Executive Summaries, Abstracts, Authors, Graphics, Tables, Charts, Text. • Metatags for syntactic and content indexing. • Organized and indexed for concept retrieval, keyword retrieval, etc. • Standard formats for document publishing and delivery – Lotus Notes, PDF, and XML. 2001 © Larry Kerschberg.

  18. KM Application:Integration and Classification. • Knowledge creation and classification in near real-time for data push scenarios, • Need for a domain model of relevant objects, relationships, constraints, processes, etc. • Need for near real-time concept formation, indexing and processing of massive amounts of data from multiple sources. Massive indicates terabytes of data per day! • Examples: • Intelligence Analysis • Earth Observing System and Intelligence Analysis. 2001 © Larry Kerschberg.

  19. Buckman Laboratories • Global enterprise with about $300 million dollars in sales. • Associates work closely with customers to solve chemical problems and to sell Buckman products. • Buckman wanted to move the company from a “product-driven” to a “customer-driven”enterprise. • Knowledge-driven, service-oriented approach with the commodities being the chemicals produced by Buckman Labs. 2001 © Larry Kerschberg.

  20. Knowledge in Action • “If you can’t maximize the power of the individual, you haven’t done anything. If you expand the ability of individual members of the organization, you expand the ability of the organization.” (Bob Buckman) • Buckman Approach: Perform problem solving for customers by using both tacit knowledge and explicit knowledge. • Goal is to harness the “unconscious knowledge of the organization.” 2001 © Larry Kerschberg.

  21. K’Netix – The Buckman Knowledge Network. • The Knowledge Transfer Department is responsible for K’Netix. • Enables Knowledge-Sharing via TechForums • Forum Leaders actively moderate, facilitate, seek knowledge, and identify discussion threads. • Awards: • The Arthur Andersen 1996 Enterprise Awards for Best Business Practices - Category, Sharing Knowledge in the Organization. • Computer World-Smithsonian Award 2001 © Larry Kerschberg.

  22. K’Netix Knowledge Process 2001 © Larry Kerschberg.

  23. K’Netix Access Menu Associates Worldwide Share Knowledge via Forums 2001 © Larry Kerschberg.

  24. Buckman Knowledge Culture • Knowledge is object, knowledge is process, and knowledge is power. • Knowledge sharing • rewarded within the organization, and • based on trust and long-lived relationships among associates. • Knowledge curation • performed by Technical Forum leaders; • weekly they index discussions via keywords, write abstracts, prepare discussion summaries, and post them to the Forum. • Code of Ethics guides associate interactions. 2001 © Larry Kerschberg.

  25. Buckman Results and Vision • Measures of success: • In 1995, 65% of associates sold to customers, versus 16% in 1979. • 33% of sales from products less than 5 years old, versus 22% before K’Netix. • 72% of associates are college graduates compared to 39% in 1979. • Learning Center introduced to allow associates to enhance their knowledge; uses Learning Space from Lotus. • Strategic focus on “intimate” customer relationships to provided knowledge-based services, thus gaining strategic advantage. 2001 © Larry Kerschberg.

  26. The E-Enterprise Framework 2001 © Larry Kerschberg.

  27. Enterprise Knowledge Creation and Distribution • Acquire data and information from multiple, possibly heterogeneous sources, • Integration of information, tagging of information with semantic tags, • Create intellectual property (IP) with valued-added processing, • Protect IP products, processes and resources, • Share knowledge with partners, • Distribute IP products to customers and partners. 2001 © Larry Kerschberg.

  28. E-Business Knowledge Creation KM XML 0101010101 0101010101 Generate Information Information Integration Indexing (XML Meta Tags) Process & Manage Information • Capture Information: • Federated Databases • Web Searching • Intelligent Agents • Knowledge Rovers • XML Messages • Email Messages Knowledge Management KM Convert To Knowledge Materialize • Extract New • Information: • Data Mining • Decision Support • AI • Data Warehousing Risk Management XML Public Domain & WWW Publish & Share Knowledge Base Push Publishing? XML Customers Security Concerns? RosettaNet SOAP WIDL ebXML XML Web Services XML Role Knowledge Management Role XML Suppliers & Business Partners KM E-Business Data Acquisition and Knowledge Creation with XML as the Enabler Courtesy of Mr. Gus Jabbour

  29. Metadata in Knowledge Management • Metadata is data-about-data and is used to describe the attributes of a resource. • Metadata is used in several KM activities: search, discovery, documentation, refinement, and dissemination. • These activities may be carried out by human end-users or their (human or automated) agents. • Metadata is needed in the Internet context to enhance precision of information retrieval. • Metadata may be embedded within a document (metatags) or they may be external to the document. 2001 © Larry Kerschberg.

  30. Metadata Standards Initiatives • Dublin Core Metadata Initiative for Digital Libraries, Dublin Core is an international initiative hosted by OCLC • XML (eXtensible Markup Language) • W3C - RDF, (WWW Consortium) Resource Description Framework • W3C - Semantic Web,DAML+OIL. • Web Services • A metadata bibliography is available at: • http://www.ukoln.ac.uk/metadata/desire/overview/. 2001 © Larry Kerschberg.

  31. Content Indexing and Tagging of Information Resources • Research in automatic classification at OCLC includes the Scorpion Project for Dewey Decimal Classification. • Commercial products from Autonomy and Convera: • Use Bayesian Networks and Neural Networks to formulate concepts automatically, not just keyword extraction. • Use text mining to correlate related concepts found in heterogeneous documents. • Automatic tagging will help analysts to create knowledge and link back to original sources. • DARPA Agent Markup Language (DAML) program is creating a tool set for markup of Semantic Web ontologies and services. 2001 © Larry Kerschberg.

  32. Dublin Core (DC) Metadata Initiative • Simplicity – the DC is intended to be usable by non-catalogers as well as resource description specialists. • Semantic Interoperability – diverse description models hinder sharing and understanding across disciplines. • International Consensus – participants are from all over the world. • Extensibility – may be extended to include more specialized structure and semantics. • Metadata Modularity on the Web – brings Digital Library perspective to encoding metadata on the WWW. 2001 © Larry Kerschberg.

  33. Dublin Core Metadata Types 2001 © Larry Kerschberg.

  34. Dublin Core Metadata Elements From ISO/IEC 11179 standard: • Name - The label assigned to the data element. • Identifier - The unique identifier assigned to the data element • Version - The version of the data element (DC: 1.1). • Registration Authority - The entity authorized to register the data element (DC: Dublin Core Metadata Initiative). • Language - The language in which the data element is specified (DC: en). • Definition - A statement that clearly represents the concept and essential nature of the data element. • Obligation - Indicates if the data element is required to always or sometimes be present (contain a value) (DC: Optional). • Datatype - Indicates the type of data that can be represented in the value of the data element (DC: Character String). • Maximum Occurrence - Indicates any limit to the repeatability of the data element (DC: Unlimited). • Comment - A remark concerning the application of the data element. 2001 © Larry Kerschberg.

  35. Knowledge Management inE-Business 2001 © Larry Kerschberg.

  36. e-Enterprise Providers • End-to-End Solution Providers • Methodologies should provide: Enterprise Data Modeling, Process Modeling, Workflow Modeling, Toolset Neutrality. • Infrastructure Providers • Product attributes: Reliability, scalability, security, extensibility, inter-enterprise process collaboration, content management, transaction management, adherence to standards. • Net Market Makers. • Provide services: Marketplace creation, community of buyers and sellers, auctions, dynamic and/or fixed pricing. 2001 © Larry Kerschberg.

  37. Ideal B2Bi Framework • An ideal methodology or framework should include the following capabilities: • Inter-Enterprise Process Integration, • Business service and product definition, • Business and service discovery, • Globally unique identifiers for item tracking throughout the virtual enterprise, • Security (SSL, HTTPS, PKI, Digital Certificates), • XML-based object and information exchange, • Message format translation, • Internet Protocol support (HTTP, HTTPS, SOAP, UDDI) 2001 © Larry Kerschberg.

  38. E-Business Concepts • E-Business denotes the use of the Internet and the World Wide Web (Web) to conduct business transactions: • Business to Consumers (B2C) • Business to Business (B2B) • Net Marketplaces • Major goal is to create a digital domain by which to: • Integrate business processes • Integrate applications, data and knowledge; • Foster the virtual enterprise via the composition of web services. 2001 © Larry Kerschberg.

  39. The E-Enterprise Framework 2001 © Larry Kerschberg.

  40. Broadvision’s View • Leader in personalization and Customer Relationship Management, • BV 1-to-1 supports: • Content Management, • Profiles, Business Rules, and • Transaction Processing, • Strategic partners include Autonomy, Verity, i2 Technologies, webMethods. • Customers include US Postal Service and GSA Advantage. 2001 © Larry Kerschberg.

  41. Oracle’s Hub and Spoke • Multiple E-Tailers • Multiple Suppliers • Oracle’s Hub contains knowledge regarding: • workflow, • XML documents, • business rules, • transformations and • e-business processes. 2001 © Larry Kerschberg.

  42. Key Players in the B2B Space • Broadvision – CRM, personalization, intra- and extranets. • i2 – Purchase order processing and supply chain management. • Commerce One and Ariba – Procurement. • Vertical Net – E-Marketplaces and exchanges. • Oracle – data-driven solutions to e-business via hub-and-spoke architecture. • webMethods – strong on XML for B2B information integration, EAI, and workflow. 2001 © Larry Kerschberg.

  43. What is a Net Market? • An Internet-based marketplace that creates new market efficiencies and associated value-added services, such as information, trading, infrastructure and trust • A net market has the following characteristics: • Creates new revenue models • Has multiple buyers and sellers • Can be vertical or horizontal, leveraging domains of knowledge • Enables dynamic pricing • Needs a strong community to be successful • Developed by start-ups or spin-offs of global 2000 companies 2001 © Larry Kerschberg.

  44. Why are Net Markets Important? • Net Markets will capture 37% of global online B2B transactions, or $2.7T out of $7.3T by 2004 (Gartner Group) • Third party marketplaces will transact 15-20% of B2B e-commerce, generating revenue of $400-500B by 2003 (Merrill Lynch) • Market capitalization of $800B -- $1.5T by 2003 • Net Markets will grow from 18% of total B2B transactions in 1998 to 29% in 2003, totaling $438B out of $1.5T (Bear Stearns) • Market capitalization of $228B by 2002 2001 © Larry Kerschberg.

  45. Net Markets Advantages • Improve overall market efficiency • Reduce transactional costs by integrating sourcing, purchasing, and billing, • More choices for buyer & selling trading partners, • Centralizes access to information • Pricing better reflects supply & demand, improves allocation and utilization • Attractive business model for Net Market makers once critical mass is achieved • Network effects • Barriers to competition, high switching costs, good margins • Low incremental costs to increase membership & sales 2001 © Larry Kerschberg.

  46. Key to Net Markets: Price Discovery • Static pricing • Sell products at fixed prices, typically from catalogs • single vendor or aggregated (multi-vendor) • Discount pricing rules or schedules for preferred customers (pre-negotiated) or volume purchases • Dynamic pricing • Increases market efficiency, welfare of buyers and sellers • Reduces “lost” revenue (buyers willing to pay more) and failures to transact (sellers would accept less to make sale) • Works particularly well when limited or unstable supply or demand creates price uncertainty and volatility • Prices typically vary over time and across transactions • Factors other than price and quantity can affect deals 2001 © Larry Kerschberg.

  47. Seller initiated, driving competitive bidding from buyers • Various formats and rules Forward Auction Many Buyers One Buyer Exchange Reverse Auction Negotiation One Seller Many Sellers Dynamic Pricing Models • Buyers & sellers post positions on commodities, automatically cleared • Presupposes sufficient liquidity for quick matching of realistic positions • Requires highest reliability and performance • Buyer initiated, driving competitive bidding from sellers, as in RFPs/RFQs • Same variations as in forward auctions • Most complex trade, requiring sophisticated transaction engine • Best suited for dealing with many attributes, not just price and quantity, • Mirrors manual processes 2001 © Larry Kerschberg.

  48. Summary of Pricing Models Negotiation Auction Reverse Auction Exchange Hybrids Dynamic Pricing No-Price Negotiation Catalogs Aggregated Catalog Hubs Fixed Pricing One to One One to Many Many to One Many to Many 2001 © Larry Kerschberg.

  49. Net Markets Design Issues • Market size, transaction volumes & deal sizes • Volatility of supply & demand • Fragmentation of buyers, sellers, intermediaries • Relative market shares (and power) of players • Relative cost of sales & distribution -- “pain points” • Commodity vs. complex/custom • Existing price setting models • Importance of branding & relationships to price • Industry adoption of technology • Competition • How to make money - who pays what and when 2001 © Larry Kerschberg.

  50. Qualify New Members • Manage Member • Entitlements & AccessControl • Enroll and Register Net Market • Access & Contribute Content • Access Community Services • Manage Content • Provide Community Services • Specify or Locate Items • to Sell & Buy • Browse Market • Establish Price for Goods and Services • Establish Transaction • Terms &Conditions • Publish Supply & Demand • Connect Buyers To Sellers • Enable Price Discovery • Vet Buyers at Point of Sale • Commit Transactions • Finalize & Generate Order Net Market Maker Members • Track & Manage Orders • Support Members • Report Market Metrics • Enable Decision Support • Ensure Market Trust & Satisfaction • Ship and Receive Goods • Check Order Status • Make & Receive Payment • Manage Credit & Risk • ProvideContent • EnableLogistics • Enable Payment Value-Added Service Providers Conceptual Architecture for Net Markets 2001 © Larry Kerschberg.

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