BI Module 4 Notes
BI Module 4 Notes
BI Module 4 Notes
Intelligence
21AI641 Semester VI
Module 4
Knowledge Management
Syllabus:
Knowledge Management: Introduction to Knowledge Management,
Organizational Learning and Transformation, Knowledge Management Activities,
Approaches to Knowledge Management, Information Technology (IT) In
Knowledge Management, Knowledge Management Systems Implementation.
THARANI R
Asst. Professor, Dept. of AI & ML
Knowledge Management
THARANI R
Asst. Professor, Dept. of AI & ML
Knowledge
Knowledge is very distinct from data and information (see Figure 12.3). Data are
facts, measurements, and statistics; information is organized or processed data that is
timely and accurate. Knowledge is information that is contextual, relevant, and actionable.
For example, a map that gives detailed driving directions from one location to
another could be considered data. An up-to-the-minute traffic bulletin along the freeway
that indicates a traffic slowdown due to construction several miles ahead could be
considered information. Awareness of an alternative, back-road route could be considered
knowledge.
Having knowledge implies that it can be exercised to solve a problem, whereas
having information does not carry the same connotation. An ability to act is an integral part
of being knowledgeable. Whereas data, information, and knowledge may all be viewed as
assets of an organization, knowledge provides a higher level of meaning about data and
information. It conveys meaning and hencetends to be much more valuable.
THARANI R
Asst. Professor, Dept. of AI & ML
Knowledge has the following characteristics
Explicit knowledge comprises the policies, procedural guides, white papers, reports,
designs, products, strategies, goals, mission, and core competencies of an enterprise
and its IT infrastructure.
It is the knowledge that has been codified (i.e., documented) in a form that can be
distributed to others or transformed into a process or strategy without requiring
interpersonal interaction.
THARANI R
Asst. Professor, Dept. of AI & ML
For example, a description of how to process a job application would be documented
in a firm's human resources policy manual.
Explicit knowledge has also been called leaky knowledge because of the ease with
which it can leave an individual, a document, or an organization due to the fact that
it can be readily and accurately documented.
Tacit knowledge
Tacit knowledge is the cumulative store of the experiences, mental maps, insights,
acumen, expertise, know-how, trade secrets, skill sets, understanding, and learning
that an organization has, as well as the organizational culture that has embedded in
it the past and present experiences of the organization's people, processes, and
values.
Knowledge management systems (KMS) refer to the use of modern IT (e.g., the
Internet, intranets, extranets, Lotus Notes, software filters, agents, data
THARANI R
Asst. Professor, Dept. of AI & ML
warehouses, Web 2.0) to systematize, enhance, and expedite intra- and inter- firm
KM.
KM systems are intended to help an organization cope with turnover, rapid change,
and downsizing by making the expertise of the organization's human capital widely
accessible.
They are being built, in part, because of the increasing pressure to maintain a well-
informed, productive workforce. Moreover, they are built to help large organizations
provide a consistent level of customer service.
THARANI R
Asst. Professor, Dept. of AI & ML
ORGANIZATIONAL LEARNING AND TRANSFORMATION
Knowledge management is rooted in the concepts of organizational learning and
organizational memory. When members of an organization collaborate and communicate
ideas, teach, and learn, knowledge is transformed and transferred from individual to
individual.
Organizational Memory
Individuals ideally tap into this memory for both explicit and tacit knowledge when
faced with issues or problems to be solved.
Human intelligence draws from the organizational memory and adds value by
creating new knowledge. A KMS can capture the new knowledge and make it
available in its enhanced form.
THARANI R
Asst. Professor, Dept. of AI & ML
Organizational Learning
Organizational learning is the development of new knowledge and insights that have
the potential to influence an organizations behavior. It occurs when associations, cognitive
systems, and memories are shared by members of an organization.
Learning skills include the following:
Organizational Culture
As the lessons become second nature, they become part of the organizational culture.
New employees learn the culture from their mentors, along with knowhow.
The impact of corporate culture on an organization is difficult to measure. However,
strong culture generally produces strong, measurable bottom-line results: net
income, return on invested capital, and yearly increases in stock price.
Sharing initiatives and proper motivation are critical for the success of knowledge
management. However, an organizational culture that does not foster sharing can
severely cripple a KM effort.
Encouraging employees to use a KMS, both for contributing knowledge and for
seeking knowledge, can be difficult. Riege (2005) reviewed past studies and identified a
THARANI R
Asst. Professor, Dept. of AI & ML
number of possible reasons that people do not like to share knowledge:
General lack of time to share knowledge and time to identify colleagues in need of
specific knowledge.
security.
Low awareness and realization of the value and benefit of the knowledge others
possess.
Dominance in sharing explicit over tacit knowledge, such as knowhow and
experience. that requires hands-on learning, observation, dialogue, and interactive
problem solving.
Use of a strong hierarchy, position-based status, and formal power.
Insufficient capture, evaluation, feedback, communication, and tolerance of past
mistakes that would enhance individual and organizational learning effects.
Differences in experience levels.
Lack of contact time and interaction between knowledge sources andrecipients.
Poor verbal/written communication and interpersonal skills.
Age differences.
Gender differences.
Lack of a social network.
Differences in education levels.
Ownership of intellectual property due to fear of not receiving justrecognition
and accreditation from managers and colleagues.
Lack of trust in people because they may misuse knowledge or take unjustcredit
for it.
Lack of trust in the accuracy and credibility of knowledge due to the source.
Differences in national culture or ethnic backgrounds and values and beliefs
associated with it.
THARANI R
Asst. Professor, Dept. of AI & ML
KNOWLEDGE MANAGEMENT ACTIVITIES
This section describes several major activities that take place in knowledge management
projects.
Given the changing dynamics of the global marketplace and the increasingly intense
competition, organizations need to leverage intellectual resources in order to reduce
the loss of intellectual capital due to people leaving the company, as well as to
reduce costs by decreasing the number of times the company has to repeatedly solve
the same problem.
IDC estimated that the cost for an organization of 1,000 knowledge workers to find
existing knowledge they need, to waste time searching for nonexistent knowledge,
and to re-create knowledge that is available but cannot be located can be more than
$6 million per year.
In addition, knowledge has been recognized as the single most important source for
generating value in the modern company.
For instance, companies can use business intelligence (BI) to reveal opportunities
and then create revenue-generating programs to exploit them.
In some highly skilled professions, such as medicine, retaining and using knowledge
of best practices are critical in life-and-death situations.
Most KM initiatives have one of three aims: (1) to make knowledge visible,mainly
through maps, yellow pages, and hypertext; (2) to develop a knowledge-
intensive culture; or (3) to build a knowledge infrastructure. These aims are not mutually
exclusive, and, indeed, firms may attempt all three as part of a knowledge management
initiative.
Several activities or processes surround the management of knowledge. These
include the creation of knowledge, the sharing of knowledge, and the seeking and use of
knowledge.
THARANI R
Asst. Professor, Dept. of AI & ML
Knowledge Creation
The socialization mode refers to the conversion of tacit knowledge to new tacit
knowledge through social interactions and shared experience among organization
members (e.g., mentoring).
The combination mode refers to the creation of new explicit knowledge by merging,
categorizing, reclassifying, and synthesizing existing explicit knowledge (e.g.,
statistical analyses of market data).
Externalization refers to converting tacit knowledge to new explicit knowledge (e.g.,
producing a written document describing the procedures used in solving a
particular client’s problem).
Internalization refers to the creation of new tacit knowledge from explicit
knowledge (e.g., obtaining a novel insight through reading a document).
Knowledge Sharing
Knowledge Seeking
Knowledge seeking, also referred to as knowledge sourcing, is the search for and use
of internal organizational knowledge.
Lack of time or lack of reward may hinder the sharing of knowledge, and the same is
true of knowledge seeking.
Individuals may sometimes prefer to not reuse knowledge if they feel that their own
performance review is based on the originality or creativity of their ideas.
Individuals may engage in knowledge creation, sharing, and seeking with or without
the use of IT tools.
APPROACHES TO KNOWLEDGE MANAGEMENT
The two fundamental approaches to knowledge management are the process approach and
the practice approach.
THARANI R
Asst. Professor, Dept. of AI & ML
common needs. Most of the valuable knowledge in these firms is fairly explicit
because of the standardized nature of the products and services
These communities are informal social groups that meet regularly to share ideas,
insights, and best practices. This approach is typically adopted by companies that
provide highly customized solutions to unique problems.
The valuable knowledge for these firms is tacit in nature, which is difficult to
express, capture, and manage.
Because tacit knowledge is difficult to extract, store, and manage, the explicit
knowledge that points to how to find the appropriate tacit knowledge (i.e., people
contacts, consulting reports) is made available to an appropriate set of individuals
who might need it. Consulting firms generally fall into thiscategory.
Many organizations use a hybrid of the process and practice approaches. Early in the
development process, when it may not be clear how to extract tacit knowledge from
its sources, the practice approach is used so that a repository stores only explicit
knowledge that is relatively easy to document.
The tacit knowledge initially stored in the repository is contact information about
experts and their areas of expertise.
THARANI R
Asst. Professor, Dept. of AI & ML
Such information is listed so that people in the organization can find sources of
expertise (e.g., the process approach). From this start, best practices can
eventually be captured and managed so that the knowledge repository will contain
an increasing amount of tacit knowledge over time.
Eventually, a true process approach may be attained. But if the environment changes
rapidly, only some of the best practices will prove useful. Regardless of the type of
KMS developed, a storage location for the knowledge (i.e., a knowledge repository)
of some kind is needed.
Best Practices
Best practices are the activities and methods that the most effective
organizations use to operate and manage various functions. Chevron, for
example, recognizes four levels of best practices (see O’Dell et al., 1998):
1. A good idea that is not yet proven but makes intuitive sense.
2. A good practice, an implemented technique, a methodology, a procedure,
or a process that has improved business results.
3. A local best practice, a best approach for all or a large part of the
organization based on analysis of hard data. In other words, the scope within
the organization of the best practice is identified: Can it be used in a single
department or geographical region, or can it be used across the organization
or anywhere in between?
4. An industry best practice, similar to the third level but using hard data
from industry.
Historically, the first knowledge repositories simply listed best practices and
made them available within the firm. Now that knowledge repositories are
electronic and Web accessible, they can have wide-ranging impact on the use of
knowledge throughout a firm. For example, Raytheon has successfully used best
practices to merge three distinct corporate cultures. See O’Dell and Grayson
(2003) and O’Dell et al. (2003) for more on best practices.
THARANI R
Asst. Professor, Dept. of AI & ML
Knowledge Repositories
A knowledge repository stores knowledge that is often text based and has very
different characteristics. It is also referred to as an organizational knowledge base.
Capturing and storing knowledge are the goals for a knowledge repository. The
structure of the repository is highly dependent on the types of knowledge it stores.
The repository can range from simply a list of frequently asked (and obscure)
questions and solutions, to a listing of individuals with their expertise and contact
information, to detailed best practices for a largeorganization.
The users should not be involved in running the storage and retrieval mechanisms
of the knowledge repository.
Typical development approaches include developing a large-scale Internet- based
system or purchasing a formal electronic document management system or a
knowledge management suite.
The structure and development of the knowledge repository are a function of the
specific technology used for the KMS.
THARANI R
Asst. Professor, Dept. of AI & ML
FIGURE 12.4 A Comprehensive View of a Knowledge
Repository.
THARANI R
Asst. Professor, Dept. of AI & ML
A functioning KMS follows six steps in a cycle (see Figure 12.5). The reason for the cycle is
that knowledge is dynamically refined over time. The knowledge in a
good KMS is never finished because the environment changes over time and the
knowledge must be updated to reflect the changes.
Components of KMS
THARANI R
Asst. Professor, Dept. of AI & ML
Communication technologies allow users to access needed knowledge and to
communicate with each other-especially with experts. E-mail, the Internet,
corporate intranets, and other Web-based tools provide communication capabilities.
Even fax machines and telephones are used for communication, especially when the
practice approach to knowledge management is adopted.
This worked reasonably well in the early days for storing and managing most
explicit knowledge and even explicit knowledge about tacit knowledge.
However, capturing, storing, and managing tacit knowledge usually requiresa
different set of tools.
Electronic document management systems and specialized storage systems that are
part of collaborative computing systems fill this void. These storage systems have
come to be known as knowledge repositories.
THARANI R
Asst. Professor, Dept. of AI & ML
Technologies That Support Knowledge Management
THARANI R
Asst. Professor, Dept. of AI & ML
ARTIFICIAL INTELLIGENCE
INTELLIGENT AGENTS
Intelligent agents are software systems that learn how users work and provide
assistance in their daily tasks. There are other kinds of intelligent agents as well (see
Chapter 14). Intelligent agents can help in KMS in a number of ways. Typically, they are
used to elicit and identify knowledge. The following are some examples:
• IBM (ibm.com) offers an intelligent data-mining family, including Intelligent Decision
Server (IDS), for finding and analyzing massive amounts of enterprise data.
• Gentia (Planning Sciences International, gentia.com) uses intelligent agents to
facilitate data mining with Web access and data warehouse facilities. Combining
THARANI R
Asst. Professor, Dept. of AI & ML
intelligent agents with enterprise knowledge portals is a powerful technique that can
deliver to users exactly what they need to perform their tasks.
The intelligent agent learns what the user prefers to see and how the user organizes
it. Then the intelligent agent takes over to provide that information at the desktop, just
as a good administrative assistant would.
WEB 2.0
The Web has evolved from a tool for disseminating information and conducting
business to a platform for facilitating new ways of information sharing,
collaboration, and communication in the digital age.
THARANI R
Asst. Professor, Dept. of AI & ML
KNOWLEDGE MANAGEMENT SYSTEMS IMPLEMENTATION
The challenge with KMS is to identify and integrate the three essential components
— communication technologies, collaboration technologies, and
organization.
THARANI R
Asst. Professor, Dept. of AI & ML
KNOWLEDGE SERVERS
The server provides a knowledge repository — a central location for searching and
accessing information from many sources, such as the Internet, corporate intranets,
databases, and file systems— thereby enabling the efficient distribution of time-
sensitive information.
The server seamlessly extends and integrates with the company’s e-business
suite, allowing rapid deployment applications that span the enterprise andcan
even leverage AI-assisted technology to harvest knowledge assets.
EKP are the doorways into many KMS. They have evolved from the concepts
underlying EIS, GSS, Web browsers, and DBMS.
Using EKP is an ideal way to configure a KMS. Most EKP combine data integration,
reporting mechanisms, and collaboration, while a server handles document and
knowledge management.
An enterprise information portal is a virtual place on a network of online users. The
portal aggregates each users total information needs: data and documents, e-mail,
Web links and queries, dynamic feeds from the network, and shared calendars and
task lists.
THARANI R
Asst. Professor, Dept. of AI & ML
Electronic Document Management (EDM)
EDM systems use the document in electronic form as the collaborative focusof work.
EDM systems allow users to access needed documents, generally via a Webbrowser
over a corporate intranet.
Tools for capturing knowledge unobtrusively are helpful because they allow a
knowledge contributor to be minimally (or not at all) involved in the knowledge
harvesting efforts.
THARANI R
Asst. Professor, Dept. of AI & ML
Embedding this type of tool in a KMS is an ideal approach to knowledge capture.
Knowledge-mail is an expertise-location software package that analyzes users
outgoing e-mail to parse subject expertise. It maintains a directory of expertise and
offers ways to contact experts while maintaining privacy controls for them.
Search Engines
Search engines perform one of the essential functions of knowledge management—
locating and retrieving necessary documents from vast collections accumulated in
corporate repositories.
Companies such as Google, Verity, and Inktomi offer a wide selection of search
engines capable of indexing and cataloging files in various formats as well as of
retrieving and prioritizing relevant documents in response to user queries.
A knowledge management suite must access internal databases and other external
knowledge sources, so some integration is required to make the software truly
functional.
All the major consulting firms (e.g., Accenture, Cap Gemini Ernst & Young, Deloitte &
Touche, KPMG, PWC) have massive internal knowledge management initiatives.
Usually, these become products after they succeed internally and provide assistance
in establishing
KMS and measuring their effectiveness. Consulting firms also provide some direct,
out-of-the-box proprietary systems for vertical markets. Most of the major
management consulting firms define their knowledge management offerings as
THARANI R
Asst. Professor, Dept. of AI & ML
services. For more on consulting firm activities and products, see McDonald and
Shand (2000).
THARANI R
Asst. Professor, Dept. of AI & ML
Integration of KMS with Other Business Information Systems
Because a KMS is an enterprise system, it must be integrated with other
enterprise and information systems in an organization.
KMS typically do not involve running models to solve problems. This is typically
done in DSS/BI systems.
However, because a KMS provides help in solving problems by applying knowledge,
part of the solution may involve running models.
A KMS can integrate into a set of models and data, and it can activate them if a
specific problem calls for it. Also, the knowhow and best practice application of
models can be stored in a KMS.
Much work is being done in the field of AI relating to knowledge engineering; tacit to
explicit knowledge transfer; and knowledge identification, understanding, and
dissemination.
Companies are attempting to realign these technologies and the resultant products
with knowledge management.
The AI technologies most often integrated with KM are intelligent agents, expert
systems, neural networks, and fuzzy logic.
THARANI R
Asst. Professor, Dept. of AI & ML
As data and information updates are made, the KMS can use them.
The supply chain is often considered to be the logistics end of a business. If products
do not move through the organization and go out the door, the firm will fail.
Systems help users in dealing with customers. One aspect is the help-desk notion
described earlier. But CRM goes much deeper than that.
It can develop usable profiles of customers and predict their needs so that
an organization can increase sales and better serve its clients. A KMS can
certainly provide tacit knowledge to people who use CRM directly in
working with customers.
Communication and collaboration tools and technologies are necessary for KMS to
function.
If a firm can integrate its KMS into its intranets and extranets, not only will
knowledge flow more freely, both from a contributor and to a user, but the firm can
also capture knowledge directly, with little user involvement, and can deliver it
when the system thinks that a user needs knowledge.
THARANI R
Asst. Professor, Dept. of AI & ML