Lecture 5 Term 2

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6 Νοε 2013 (πριν από 3 χρόνια και 11 μήνες)

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Lecture 5 Term 2


Business value of customer relationship management


Increased customer satisfaction


Reduced direct
-
marketing costs


More effective marketing


Lower costs for customer acquisition/retention


Increased sales revenue


Reduced churn
rate


Churn rate:


N
umber of customers who stop using or purchasing
products or services from a company.


Indicator of growth or decline of firm’s customer base

Customer Relationship Management Systems


Enterprise application challenges


Highly expensive to purchase and implement enterprise
applications


total cost may be 4 to 5 times the price of
software


Requires fundamental changes


Technology changes


Business processes changes


Organizational changes


Incurs switching costs, dependence on software vendors


Requires data standardization, management, cleansing

Enterprise Applications: New Opportunities and Challenges

Knowledge Management…





4

Knowledge Management

5

KM, it’s like riding a bicycle…

6


Knowledge management systems


Support processes for acquiring, creating, storing, distributing,
applying, integrating knowledge


Collect internal knowledge and link to external knowledge


Include enterprise
-
wide systems for:


Managing documents, graphics and other digital knowledge objects


Directories of employees with expertise



Systems That Span the Enterprise

Definitions

Knowledge

Knowledge is a fluid mix of framed
experience, values contextual
information and expert insight that
provides a framework for
evaluating and incorporating new
experiences and information
(Davenport and Prusak, 1998)



Explicit Dimension



Tacit Dimension

Knowledge Management

An organisation’s ability to
effectively acquire, create, retain,
deploy and leverage knowledge

8

9

Data

Information

Knowledge

Knowledge Hierarchy

The Knowledge Continuum

10

The Knowledge Evolution

11


Hard and soft data (Mintzberg, 1975)



Managers get more information and knowledge
from face to face meetings than they do from
documentation/ repositories (Kefalas,1973;
Keegan, 1974; Mintzberg, 1975; Eisenberg, 1984;
Davenport, 1994; Davenport et al., 1998)



“Knowing who to consult” (Keegan, 1974; Simon,
1977)



The Knowledge Evolution…

12


Strategic Scanning (El Sawy, 1985)


Accommodation Information


Assimilation Information



Proposed Solution:


“Programs that allow users to record their creative ideas,
provide editing, organizing, and outline facilities that later
rearrange those thoughts into topics and give each topic a
separate heading and sub
-
heading”.

Explicit and Tacit Knowledge

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Explicit Knowledge


formal / codified


documents, best practices, databases, proposals



Tacit Knowledge


informal / uncodified


experiential, within employee’s head,


hard to effectively capture and share


Knowledge Economy/Society

14

LAND

CAPITAL

LABOUR

ENTERPRISE

KNOWLEDGE

The Knowledge Management Landscape


Sales of enterprise content management software for
knowledge management expected to grow 15 percent
annually through 2012


Information Economy


55% U.S. labor force: knowledge and information workers


60% U.S. GDP from knowledge and information sectors


Substantial part of a firm’s stock market value is related to
intangible assets: knowledge, brands, reputations, and unique
business processes


Knowledge
-
based projects can produce extraordinary ROI

U.S. Enterprise Knowledge Management

Software Revenues, 2005
-
2012

Figure 11
-
1

Enterprise knowledge
management software
includes sales of content
management and portal
licenses, which have been
growing at a rate of 15
percent annually, making it
among the fastest
-
growing
software applications.

Management Information Systems

Chapter 11 Managing Knowledge

The Knowledge Management Landscape

KM, a fad?

17


Knowledge is not new



People in organisations have always sought, used
and valued knowledge



Companies hire for minds rather than hands


What’s your Strategy for Managing Knowledge?
(Hansen et al., 1999)

18


Codification Strategy


Computer centred


Captured and stored in database



Personalisation Strategy


Associated with an individual


Shared person to person

People Broker

19


Locate “experts” to help solve business problems



Link “knowledge holders” to “knowledge seekers”



Transfer valuable “Tacit” Knowledge

Role of the Chief Knowledge/Learning Officer

20


Build

organisational knowledge culture



Create

knowledge management infrastructure



Make
it all pay off

Learning Organisation

21



the sum of individual knowledge used in the value
creation process and the knowledge embedded in
collective action
”.
(Von Krogh
et al.,
1996, pp.227)



Organisations ability to :


Have a memory


React


Make decisions

Knowledge Management and IS

22


“‘Techknowledgy’ is clearly part of Knowledge
Management”
(Davenport and Prusak, 1998)




KM is 80% about organization, and 20% about IT




Basic Features of a Knowledge Management
System (KMS)

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Storage


Publishing


Subscription


Reuse


Collaboration


Communication

Searching and Filtering Knowledge

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Knowledge should be


Intuitively accessible


Searchable to find relevant knowledge


Inform how things get done



Alternatively you should be able to connect to
experts


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KM Technology

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Solution which complements
strategy


Technology is an
enabler



Customized solutions which integrate with work
processes


Non invasive


Build on Web and Email platforms



Combination of tools and technology


Search / Categorization / Messaging / Collaboration

Examples of implemented KMS
-


Pharmaceutical

27


Business


Prosthetics manufacturer


Technology


LINK (Leveraging Internal Knowledge)


Web tool facilitates


Expert finder


Describes people who might be working on things that you might
be working on


Ability to index sent items folder


Enables a user to build a personal work profile


“Brokers Discussions”


Continued…

28


Making it pay


Reduced length of time to uncover knowledge related to a
clinical trial by finding existing experts in the area within the
organisation

Manufacturing (1)

29


Business


Box design and manufacturer



Technology


InnoBook: An interactive database of box design concepts,
continually updated by over 300 designers



Utilised by 250 sites across Europe



Each design department has access to all designs
and uses the system to search for base designs
when an order is placed



Continued…

30


Designers motivated to contribute their box
designs to the repository



Initial reluctance to the utilisation of designs
contributed to the system by other departments,
question mark over the quality of the design not
produced by the local team



Making it pay


overcomes localisation of box design knowledge


avoiding ‘reinventing the wheel’


Manufacturing (2)

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Business


Multinational data storage device manufacturer



Technology


Primus a knowledge repository for customer solutions



Implemented by Customer Service Team in two
locations


European and US


Manufacturing (2)

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Objective


to manage customer support knowledge issues by breaking
down a problem or situation into its knowledge components



to classify knowledge about the problem received or add new
knowledge about the problem

Continued…

33


Making it pay


build a knowledge base of solutions and
solve customer’s problems in a more time
efficient and effective manner



to provide an integrated approach to
problem resolution

and a solution for
managing the knowledge across the CS
group


Conclusions?

34



People are the key to successful knowledge
management



IS may be identified as one factor that can enable
the capture, storage, creation and dissemination of
organizational knowledge


But:

35



The focus on utilising organizational knowledge
should be on a dialogue between two individuals or a
community of practice and not knowledge objects
stored in a database
(Hansen et al., 1999)



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