What is the Role of Knowledge Management Systems in Business? 4 + Knowledge management systems among fastest growing areas of software investment - productivity but must be shared Information economy: production and distribution of information and knowledge a major source of wealth and prosperity Substantial part of a firm’s stock market value is related to intangible assets: knowledge, brands, reputations, and unique business processes * Well-executed knowledge-based projects can produce extraordinary ROI @ Pearson Copysight.©.2022,.2020,.[Link], Inc. All Rights Reserved Scanned with CamScannerImportant Dimensions of Knowledge (1 of 2) & ¢ Data, information, knowledge, and wisdom v a % * Tacit knowledge and explicit knowledge « Important dimensions of knowledge — Knowledge is a firm asset — Knowledge has different forms — Knowledge has a location = Knowledge is sticky — Knowledge is situational @ Pearson Copia s202 22020201 8PeatsansEducation, Inc. All Rights Reserved Scanned with CamScannerImportant Dimensions of Knowledge (2 of 2) Sa * Knowledge-based core competencies — Key organizational assets * Knowing how to do things effectively and efficiently in ways others cannot duplicate is a prime source of profit and competitive advantage — Example: Having a unique build-to-order production system * Organizational learning — Process in which organizations gain experience through collection of data, measurement, trial and error, and feedback @ Pearson C0 feild late elaeeaaicekadeiteFducation, Inc. All Rights Reserved Scanned with CamScannerThe Knowledge Management Value Chain (1 of 3) * Knowledge management & — Set of business processes developed in an organization to create, f transfer, and apply knowledge * Knowledge management value chain — Each stage adds value to raw data and information as they are transformed into usable knowledge = Knowledge acquisition = Knowledge storage = Knowledge dissemination = Knowledge application @ Pearson Copyright ©-2022..[Link], Inc. All Rights Reserved Scanned with CamScannerThe Knowledge Management Value Chain (2 of 3) + Knowledge acquisition — Documenting tacit and explicit knowledge K = Storing documents, reports, presentations, best practices = Unstructured documents (e.g., e-mails) * Developing online expert networks — Creating knowledge — using mt: al, NLP - Tracking data from TPS and external sources — using business analytics * Knowledge storage — Databases — Document management systems — Role of management @ Pearson CO ellie eae ea PaaisaizeEducation, Inc. All Rights Reserved Scanned with CamScannerThe Knowledge Management Value Chain (3 of 3) + Knowledge dissemination fs] — Portals, wikis ° — E-mail, instant messaging — Search engines, collaboration tools - Adeluge of information * Training programs, informal networks, and shared management experience help managers focus attention on important information. * Knowledge application — New business practices — New products and services — New markets @ Pearson 0 eile eller ticaiaeeaiieiteducation, Inc. All Rights Reserved Scanned with CamScannerFigure 11.1 The Knowledge Management Value Chain @ Pearson Data and Information ‘equiation Cofectng Diseminetng Knowledge Business Value Chan aGe = ‘Management and Organizational Actvtion COrganzaional routines Tarra New -asee business rgenzational cote’ Colaboraton am aorty i: Brion support Seth eognes yt Colaboreton aed Ener olin toce “appetone processes New products and Coit a2 222i aaPaassaiatducation, Inc. All Rights Reserved Scanned with CamScannerBuilding Organizational and Management Capital: Collaboration, Communities of Pract and Office Environments | * Developing new organizational roles and responsibilities for the acquisition of knowledge * Chief knowledge officer executives; dedicated staff / knowledge managers + Communities of practice (COPs) — Informal social networks of professionals and EMployees win simierinerst and atites — Activities include education, online newsletters, sharing knowledge — Reduce learning curves of new employees — ty providing contacts with subject matter experts (SME) mentors and tools. @ Pearson Copuright-©.2022,.[Link], Inc. All Rights Reserved Scanned with CamScannerTypes of Knowledge Management Systems + Enterprise-wide knowledge management systems — General-purpose firm-wide efforts to collect, store, distribute, and apply digital content and knowledge * Knowledge work systems (KWS) — Specialized systems built for engineers, scientists, other knowledge workers charged with discovering and creating new knowledge + Intelligent techniques — Diverse group of techniques, such as data mining, expert systems, machine learning, used for various goals: discovering knowledge, distilling knowledge, discovering optimal solutions @ Pearson Coputiaht.@.2022_ 2020. [Link], Inc. All Rights Reserved Scanned with CamScannerFigure 11.2 Major Types of Knowledge Management Systems & ea ee ‘Specialized workstations and ‘Tools for discovering patterns ‘and applying knowledge to Goneral-purpose, integrated, Tirmwide efforts to collect, store, ‘systems that enable scientist, disseminate, and use digital ‘engineers, and other knowledge ‘lscrete decisions and knowledge ‘content and knowledge ‘workers to create and discover, ‘domains ‘new knowledge Enterprise content management systems Data mining Collaboration and social tool ‘Neural networks Caring management ystems Expert systems ‘Machine learning "Natural anguage processing Computer vision systems eet algorthms Inteligent agente @ Pearson C0 pei el erate aaieeite Education, Inc. All Rights Reserved Scanned with CamScannerWhat Is Artificial Intelligence? gence? ada ¢ Artificial intelligence (Al): a form of intelligent technique ¢ Grand vision ib — Computer hardware and software systems that are as “smart” as HUMANS — think and actike humans — So far, this vision has eluded computer programmers and scientists — however deep machine learning is close to achieve it. * Narrower, more realistic vision — Systems that take data inputs, process them, and produce outputs (like all software programs) and that can perform many complex tasks that would be difficult or impossible for humans to perform. Google search engine in milliseconds @ Pearson C0 fica a eae 2 ena aacseidy Education, Inc. All Rights Reserved Scanned with CamScannerMajor Types of Al i | orp in « Expert systems * Machine learning ¢ Neural networks and deep learning networks * Genetic algorithms * Natural language processing * Computer vision * Robotics @ Pearson Copisiabite20220202002018 [Link], Inc. All Rights Reserved Scanned with CamScannerExpert Systems L oa * Capture tacit knowledge in very specific and limited domain of human ont ; * Capture knowledge as set of rules — 1F-then Typically perform limited tasks - Diagnosing malfunctioning machine — Determining whether to grant credit for loan + Used for discrete, highly structured decision making + Knowledge base: Set of hundreds or thousands of rules — rain and umbrella + Inference engine: Strategy used to search knowledge base — Forward chaining — Backward chaining @ Pearson Col eee eee eaBiSaidy Education, Inc. All Rights Reserved Scanned with CamScannerFigure 11.3 Rules in an Expert Syste, Oe @ Pearson Oil 22 teaPaasstiitducation, Inc. All Rights Reserved Scanned with CamScannerMachine Learning (1 of 2) a. « Used by neural networks, deep learning networks, onthe algorithms ¢ Different paradigm than expert systems * Focuses on recognizing patterns in very large data sets * Contemporary examples — Facebook ad display — Netflix recommender system @ Pearson C0 Rieilleel eareelae cai aaiieite Education, Inc. All Rights Reserved Scanned with CamScannerMachine Learning (2 of 2) ite ¢ Supervised learning — System “trained” by providing examples of desired inputs and outputs identified by humans in advanced — One technique used to identify those who default in a loan ¢ Unsupervised learning — Same procedures as used with supervised learning, but humans do not provide examples — Association rules/market basket analysis (baby aiapers and beer) @ Pearson Ola a2 2a late Paatsaie Education, Inc. All Rights Reserved Scanned with CamScannerNeural Networks (1 of 3) ae. ¢ Find patterns and relationships in massive amounts Seah too complicated for humans to analyze * “Learn” patterns by searching for relationships, building models, and correcting over and over again ¢ Humans “train” network by feeding it data inputs for which outputs are known, to help neural network learn solution by example from human experts ¢ Used in medicine, science, and business for problems in pattern classification, prediction, financial analysis, and control and optimization. Self-driving cars also use neural networks. Visa. @ Pearson Copyright. ©[Link], Inc. All Rights Reserved Scanned with CamScannerFigure 11.4 How a Neural Network W, - ua Input Layer Hidden Layer Output Layer Data Results * Age * Income Valid * Purchase purchase history * Frequency of purchases Fraudulent * Average purchase purchase size @ Pearson Coy ducation, Inc. All Rights Reserved Scanned with CamScannerNeural Networks (2 of 3) inate * Deep learning neural networks — More complex, with many (niasen layers of transformations of input data to produce target output — Used almost exclusively for pattern detection on unlabeled data (unsupervised learning) — Some believe these come closest to “grand vision” of Al @ Pearson CO Riba a2 alee aiePaaisadsFducation, Inc, All Rights Reserved Scanned with CamScannerNeural Networks (3 of 3) lhe * Limitations of neural networks and machine learning Require very large data sets to identify patterns Patterns may not “make sense: or may be ephemeral How system arrived at a particular solution often cannot be explained — explainable Al Most useful for classifying digital assets into binary categories (yes or no), but most real-world problems do not have binary solutions No sense of ethics, so may recommend actions that are illegal or immoral. Hence, not replacing managers. @ Pearson COR 2D2 Peat SaPaaisaasFducation, Inc. All Rights Reserved Scanned with CamScannerGenetic Algorithms | 8 sain. Useful for finding optimal solution for specific problem by examining very large number of possible solutions for that problem — a Form of ML Conceptually based on process of evolution — Search among solution variables by changing and reorganizing component parts using processes such as inheritance, mutation, and selection « Used in optimization problems (minimization of costs, efficient scheduling, optimal jet engine design) in which hundreds or thousands of variables exist * Able to evaluate many solution alternatives quickly @ Pearson Copii 20220 OL SePaatsansFducation, Inc. All Rights Reserved Scanned with CamScannerNatural Language Processing 5 ’ ¢ Software that can process voice or text eornmand using natural human language * Typically based on machine learning, including deep learning ¢ Examples: Google search; spam filtering systems; text mining sentiment analysis; customer call center interactions @ Pearson Copyright © 2022, 2020, 2018 Pearson Education, Inc. All Rights Reserved Scanned with CamScannerComputer Vision Systems a p y ine * Emulate human visual system to view and extract information from real-world images « Examples: — Facebook's DeepFace can identify friends in photos across their system and the entire web — Autonomous vehicles can recognize signs, road markers, people, animals, and other vehicles with good reliability @ Pearson CO pcicibaln all eee leaf aabsaieFducation, Inc. All Rights Reserved Scanned with CamScannerRobotics thee ¢ Design, construction, and operation of movable machines that can substitute for humans, along with computer systems for their control, sensory feedback, and information processing Generally programmed to perform specific and detailed actions in limited domains, e.g. robots spray paint autos, and assemble certain parts, welding, heavy assembly movement ¢ Used in dangerous situations like bomb disposal, delivering medical supplies to coronavirus-contaminated locations ¢ Surgical robots are expanding their capabilities @ Pearson Copia OOD iaPaaisabs Education, Inc. All Rights Reserved Scanned with CamScannerIntelligent Agents + Work without direct human intervention to carry out repetitive, predictable tasks — Deleting junk e-mail — Finding cheapest airfare « Use limited built-in or learned knowledge base — Some are capable of self-adjustment, for example: Siri * Chatbots - cars + Agent-based modelling applications: — Model behavior of consumers, stock markets, and supply chains; used to predict spread of epidemics @ Pearson C0 peli el eae leet aaiieiteducation, Inc. All Rights Reserved Scanned with CamScannerFigure 11.7 Intelligent Agents in P&G, aa Supply Chain Network @ Pearson 28, Software agents schedule ‘shipments rom dstnbuors low shipment tartar ‘upptor to ceatoan {is delyed, agen nd an ‘seratve deve _tratve Wack. fchedde. Coy ducation, Inc. All Rights Reserved Scanned with CamScanner