07-02-2013

Chapter 13
Knowledge Management and Business Intelligence for Strategic E-Business

Learning Objectives
• Discuss knowledge management and its role in achieving business objectives • Understand the concepts of knowledge positioning and technology management • Know the knowledge transformation and codification, and also • The relationship between business intelligence and knowledge management

© Oxford University Press 2012. All rights reserved.

E-Business

© Oxford University Press 2012. All rights reserved.

E-Business

Introduction
• Key aspects of any business –
– Knowledge Management – Business Intelligence

What is Business intelligence?
“Business Intelligence (BI) refers to skills, processes, technologies, applications and practices used to support decision-making. These involve intelligent data analysis and mapping required for decisionmaking”.

What is Knowledge Management (KM)?
“The deliberate design of processes, tools, structures, etc. with the intent to increase, renew, share, or improve the use of knowledge represented in any of the three elements [structural, human, and social] of intellectual capital”.
© Oxford University Press 2012. All rights reserved.
E-Business

© Oxford University Press 2012. All rights reserved.

E-Business

Classification of Knowledge
• What comprises this knowledge?
“In an organizational context, all information representing facts, values, decisions, relations, and patterns constitute the relevant knowledge”.

• Knowledge Matrix Classification
– Tacit / Explicit, – Individual / Collective

• What is KM Process?
“A KM process is about managing the overall knowledge in an organization from its generation to its utilization”.
© Oxford University Press 2012. All rights reserved.
E-Business

© Oxford University Press 2012. All rights reserved.

E-Business

1

07-02-2013 Information processing to Knowledge world • Business scenarios Old Vs. E-Business Knowledge Management Platform Cont. E-Business 2 . All rights reserved. All rights reserved.) Intelligent business flow Work Flow Decision support systems Data warehouses/data mining © Oxford University Press 2012. • Internal knowledge forces • External knowledge forces • Internal–external knowledge forces Knowledge Management in IT project companies © Oxford University Press 2012. • • • • • Intranet Communication platforms Knowledge and process building tools and packages Data capturing and pattern analysis tools Collaboration tools An organization may use one or more components. E-Business © Oxford University Press 2012. to align its business strategy with the knowledge strategy. based on a KM platform – Document management Various automation processes (demand–supply. sales force. All rights reserved. E-Business © Oxford University Press 2012. All rights reserved. All rights reserved. E-Business • • • • • • Knowledge Forces Knowledge forces help in creating and driving knowledge. All rights reserved. © Oxford University Press 2012.. etc. E-Business Knowledge Management Platform Various technical and non-technical components of KM. New Aligning knowledge with business Strategy © Oxford University Press 2012. introduced above.

BI – Business Intelligence Business Intelligence provides e-businesses with the necessary intelligence to improve on various business aspects. All rights reserved. E-Business © Oxford University Press 2012.07-02-2013 Aspects and components of the knowledge space. E-Business 3 . All rights reserved. An intelligent organization is always positioned to excel and satisfy the natural instinct to win by making better decisions in lesser time. such as personalized marketing by considering the past history of purchasing or personal preferences. All rights reserved. E-Business Transformation of knowledge The transformation of knowledge includes the following Creation of knowledge Acquisition of knowledge Raising awareness Transformation of knowledge Mapping of knowledge Solving problems Learning and knowledge creation © Oxford University Press 2012. © Oxford University Press 2012. All rights reserved. All rights reserved. based on the levels Elementary knowledge Core knowledge Advanced knowledge Innovative knowledge Knowledge in an Organization Knowledge can also be divided into the following six categories depending on the application and the requirement of knowledge Administrative knowledge Declarative knowledge Procedural knowledge Analytical knowledge Transaction knowledge Derived knowledge © Oxford University Press 2012. E-Business IT integration at technical & business levels IT and KM play major roles in making this integration possible. E-Business • • • • • • • Knowledge in an Organization Knowledge in the organization can be divided into four types. • • • • • • • • Knowledge Creator Knowledge Carriers Knowledge Repositories Knowledge Mining Knowledge Transformers Knowledge Loss Knowledge Agents / Catalyst Knowledge Driver © Oxford University Press 2012. E-Business • • • • • • • • • • © Oxford University Press 2012. All rights reserved. community to which the customers belong. etc. considering the geographical location.

E-Business Integrating BI and KM • Decision making and BI • Strategic E-business and KM © Oxford University Press 2012.07-02-2013 Business Intelligence Cont. This involves the following • Identifying and modelling business knowledge • Monitoring and modifying various data repositories • Understanding how to interpret results and accordingly modify further queries • Use of these results for improving business decisionmaking on a continuous basis © Oxford University Press 2012. • • • • • Business intelligence applications and importance Bringing the intelligence to business Implementation of intelligence BI as a System Building BI System – Creation and Use of Consumption • Selection of BI Tools • Designing and Implementing BI Systems © Oxford University Press 2012. All rights reserved.. E-Business 4 . All rights reserved. All rights reserved. E-Business Building BI Systems • Background of working with knowledge and KM technologies is essential to build and implement BI systems • Parameterization of the BI system is very essential for accurate performance.

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