Concepts and Systems Management

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Nov 8, 2013 (5 years and 2 days ago)

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Information, Knowledge, Technologies,
Concepts and Systems Management

Dr Sherif Kamel

Department of Management

School of Business, Economics and
Communication

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Data, information and knowledge


One of the primary goals of IS is to economically process
data into information or knowledge

o
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

o
Information

-
Data that have been organized so that they have meaning and value to
the recipient

o
Knowledge

-
Data or information that have been organized and processed to convey
understanding, experience, accumulated learning, and expertise

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Classifications of IS


Organizational structure

o
Departmental information systems

-
Use of several application programs in one functional area or
department

o
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

o
Inter
-
organizational systems

-
Some information systems connect several organizations


Functional area

o
Accounting information system

o
Finance information system

o
Manufacturing (operations/production) information system

o
Marketing information system

o
Human resources management information system

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Classifications of IS


Support provided


o
Transaction processing system (TPS)

o
Management information system (MIS)

o
Knowledge management system (KMS)


o
Office automation system (OAS)


o
Decision support system (DSS)

o
Enterprise information system (EIS)

o
Group support system (GSS)

o
Intelligent support system


System architecture

o
A mainframe
-
based system

o
A standalone personal computer (PC)

o
A distributed or a networked computing system

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Classifications of IS


Activity supported

o
Operational


Day
-
to
-
day operations of an organization


o
Managerial


Middle
-
management activities such as short
-
term planning, organizing,
and control

o
Strategic


Decisions that significantly change the manner in which business is
being done





Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Evolution of management support
systems (MSS)


Early 1950s


Transaction 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 1980s



Expert Systems (ES), Knowledge




Management Systems (KMS)


1990s



Artificial Neural Networks (ANN)

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Transaction processing systems (TPS)


Support the monitoring, collection, storage, processing,
and dissemination of the organization’s basic business
transactions

o
Provide the input data for many applications involving other support
systems

o
Considered
critical to the success of any organization

o
Collects
data continuously, frequently on a daily basis, or even in
“real time”

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

New strategic systems (eCommerce)


Electronic commerce has become a new way of
conducting business in the last decade…

o
In this new model, business transactions take place via
telecommunications networks, primarily the Internet

o
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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Information systems and people

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Information Infrastructure

building blocks


Information architecture


Computer hardware


Software development


Networks and communication facilities (including the
Internet and intranets)


Databases


Information management personnel


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Information architecture


High
-
level map or plan of the information requirements in
an organization


Architecture designers require
two
kinds of information

o
Business
needs of the organization

-
Objectives

-
Problems

-
Contribution that IT can make

o
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


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Types of information architecture


Mainframe environment

o
Processing is done by a mainframe computer

o
Users work with passive (or “dumb”) terminals, which are used to
enter or change data and access information from the mainframe


PC environment

o
Only PCs form the hardware information architecture


Networked (distributed) environment

o
Distributed processing divides the processing work between two or
more computers


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Client/server architecture


Client/server architecture

o
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

o
Client/server architecture maximizes the use of computer resources

o
Client/server architecture gives a company as many access points
to data as there are PCs on the network

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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)

o
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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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)

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

o
Vertical exchanges position themselves as the hub for all buying,
selling, and related services in a single market category


o
Horizontal exchanges focus on a specific function or need
applicable to many different industries


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Mobile commerce


mCommerce is the buying and selling of goods and
services through wireless handheld devices such as
cellular telephone and personal digital assistants

o
Next
-
generation eCommerce, mCommerce enables users to
access the Internet without a place to plug in to

o
Wireless Application Protocol (WAP) is the emerging technology
behind mCommerce

o
Using Bluetooth technology, WAP
-
enabled smart phones offer
fax, eMail, and phone capabilities all in one


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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?

o
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)

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

o
Tacit knowledge is usually in the domain of subjective, cognitive,
and experiential learning

o
Explicit knowledge deals with more objective, rational, and
technical knowledge


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge Cycle

Data

Information

Knowledge

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Epistemology and Ontology


Epistemology is the
Theory of Knowledge


Ontology is the
Knowledge Creating Entities

-
Individuals

-
Groups

-
Organizations

-
Inter
-
organizations

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge Creation Process


There are 4 modes of knowledge conversion
created when tacit and explicit knowledge interact
with each other

o
Socialization

o
Externalization

o
Combination

o
Internalization


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge and information

Knowledge Level


Individual


Ontological


Dimension


Group


Organization


Inter
-
Organization


Epistemological


Dimension

Tacit

Knowledge

Explicit

Knowledge

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Types of information

Volume of


information

Meaning of


information

Syntactic

Semantic

More important to


knowledge creation

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge conversion


Which modes of knowledge is more truthful?

o
Western School: [Explicit Knowledge]

o
Japanese School: [Tacit Knowledge]


It is widely believed that explicit and tacit
knowledge complement each other

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge creation spiral


Socialization mode

o
Starts with building a field for interaction

o
Facilitates sharing of experiences and mental models between
members


Externalization mode

o
Triggered by meaningful dialogue or collective reflection

o
Help individuals using metaphors articulate hinder tacit knowledge
that is otherwise difficult to communicate


Combination mode

o
Triggered by networking

o
Reflects knowledge acquisition and knowledge dissemination


Internalization mode

o
Triggered by learning by doing

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Spiral of organizational knowledge creation

Knowledge Level


Individual


Ontological


Dimension


Group


Organization


Inter
-
Organization


Epistemological


Dimension

Tacit

Knowledge

Explicit

Knowledge

Externalization

Combination

Socialization

Internalization

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge
-
based economy


Rapid changes in the business environment cannot be
handled in traditional ways

o
Firms are much larger,
with higher

turnover

and require
better tools
for collaboration, communication, and knowledge sharing

o
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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Learning organization (culture)


The term learning organization refers to an organization’s
capability of learning from its past experience

o
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)

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Objectives of knowledge management


Create knowledge repositories


Improve knowledge access


Enhance the knowledge environment


Manage knowledge as an asset


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge management cycle


Create knowledge


Capture knowledge


Refine knowledge


Store knowledge


Manage knowledge


Disseminate knowledge

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Organizational knowledge repositories


Knowledge network model

o
The individual who has the knowledge transfers expertise through
person
-
to
-
person contacts


Knowledge repository model

o
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

o
Many organizations use a hybrid of the network and repository
models

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

Knowledge Repositories


Databases

o
It is possible to structure part of a knowledge repository as a
database


Data warehouses

o
Large repositories of valuable data, can be used for knowledge
management, especially in conjunction with customer relationship
management (CRM) systems


Electronic Documents

o
Electronic document management systems

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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

o
Decision Support Systems (DSS)

o
Artificial Intelligence (AI)

o
Database Management Systems (DBMS)

o
Customer Relationship Management Systems (CRM)

o
Supply Chain Management Systems (SCM)

o
Corporate Intranets and Extranets


Copyright
©

2005 Sherif Kamel

Copyright © 2002 Turban, McLean and Wetherbe

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?