Centre for Information & Knowledge Management

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Centre for Information & Knowledge Management. INFORMATION SYSTEMS MANAGEMENT Jamie OBrien Centre for Information & Knowledge Management University of Limerick Lecture 5 E-mail: jamie.a.obrien@ul.ie. What well cover today. Knowledge Management The Project. Trends and Implications. - PowerPoint PPT Presentation

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  • Centre for Information & Knowledge Management

    INFORMATION SYSTEMS MANAGEMENT

    Jamie OBrienCentre for Information & Knowledge ManagementUniversity of Limerick

    Lecture 5

    E-mail: jamie.a.obrien@ul.ie

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  • What well cover today

    Knowledge Management

    The Project

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  • Trends and Implications*

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  • IrelandAs of Feb 1st 2009, 325000 people on the live register

    12% unemployment!!!

    Predicted by end of 2010, 450,000 on live register, probably will be higher

    Net emigration for the first time since 1995

    No safety valve of immigration this time!*

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  • IntroductionTerm knowledge-based economy?

    Knowledge has always been central to economic development.....we just didnt get behind it

    Only recently been recognised as important

    Knowledge-intensive service sectors, such as education, communications and information, are growing faster

    *

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  • IntroductionIntangible investments in research and development (R&D)

    It is skilled labour that is in highest demand in the OECD countries.

    Average unemployment rate for people with lower-secondary education is 10.5 per cent, falling to 3.8 per cent for those with university education

    *

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  • IntroductionKnowledge....knowledge knowledge?? What is it?

    Lots of definitions and opinions on this

    Types: Know-what (information), know-why (specialised), know-how (skills- surgeon) and know-who (who knows what)

    Simply: Knowledge lets us code the meaning of information. Information is meaningless unless given perspective.*

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  • What is Knowledge*Dave Snowden IBM, Gurteen Conference 2003

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  • You cant manage what you cant measure*

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  • Knowledge & EconomicsTraditional production functions focus on labour, land, capital, materials and energy (Neoclassical Economists)

    Knowledge and technology are external influences on production (Robert Solow)

    Investment in knowledge lead to long term growth (Paul Romer)*

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  • Irelands Knowledge IntensityDerived from R&D intensity in the Business, Higher Education and Government SectorsRatio of investment in knowledge to GDP was unchanged from 1997 to 2004R&D linked directly with knowledge and growth (Romer 1986)Ireland remains below the average R&D performance (14th of 17 in OECD survey ahead of Portugal and Hungary)

    *

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  • Irelands R&D Performance: An E.U and OECD Comparison*

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  • How can Knowledge be brought into the equation?Irish economy based on construction, housing, manufacturing sector.......etc

    Had all this money (our old friend, Celtic tiger) ......but forgot about knowledge...

    Now we are in a little trouble....

    What about knowledge? We have a knowlegde problem!*

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  • So what can be done?Well you cant manage a problem unless you can measure a problemfew ways of looking at knowledge!Endogenous growth theory looks at the link between knowledge and long term growthIntellectual capital theory measures intangiblesKM theory looks at audit modelsOECD takes a conceptual framework approach

    *

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  • Endogenous Growth ModelsLearning-by-doing models (Arrow 1962: Lucas 1988: Stokey 1988)

    Invention based models (Romer 1986: Aghion & Howitt 1992: Jones 1995)

    Hybrid models (Young 1993)

    *

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  • Brief lookLearning-by-doing: technical change (knowledge) be viewed as endogenous (internal) to the economic system and secondly for attempting to offer an account of what constitutes technical change (the active attempt to problem solve)

    Invention based models: technical change (knowledge) is seen as the product of profit maximising agents at micro level, while at macro level, knowledge is channelled into growth through increased firm efficiency and knowledge spillovers*

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  • Measuring Intangibles (IC)Capital is knowledge imposed on the material world (Boulding 1966: 5)To the Physiocrats of pre-Revolutionary France, it was the surplus generated by agricultureDecreasing amount of economic activity now involves the manipulation of physical assets Intangible assets such as knowledge have instead become the dominant value driver at firm level (Low 2002: Bounfour & Edvisson 2005: Chartrand 2005)

    *

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  • Intellectual Capital (IC)For the purpose of the framework IC has been broken down into:

    Human: has been defined as the individual stock of knowledge accumulated by a firms employees Structural: refers to the procedures, systems, routines and rules that comprise the core of the firmRelational: encompasses knowledge that is embedded in all of the external relationships that a firm develops with its stakeholders; competitors, customers, suppliers

    *

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  • Knowledge Assessment Framework (KAF)Derived from OECD standard indicators for knowledge, endogenous growth models, KM auditing models and Intellectual Capital

    OECD- Factors and constructsKM- Tacit/Explicit/Implicit knowledge and structureEGT- Learning-by-doing/Invention IC- Human/Structural/Relational

    For use at organisational level

    *

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  • LocationIreland; why? Research has a sense of urgency given economic climate, R&D and knowledge deficits, access.High-Technology sector as defined by the OECD; why? High knowledge sector with large amounts of knowledge workers.

    Definition: comprised of computers, electronic-communications, medical device and pharmaceutical industries.

    *

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  • Knowledge Assessment Framework (KAF)KNOWLEDGEINTENSITY INDEX(K.I.I) Technical Staff(1)Patents(3)Expenditure on R&D(2)Technology Transfer(2) Embodied Technology (3)Amortised Annual R&D(1) Disembodied Tech (2) Stock Research Personnel(1)In Surveys(2) Communities of Practice(1)Outsourcing of R&D(3)

    Training Programmes(2) Education(3) Experience(1)New Market Products(2) Publications(2) Patents Granted(3)KNOWLEDGE INPUTSKNOWLEDGE STOCKS & FLOWSKNOWLEDGE NETWORKSKNOWLEDGE LEARNINGKNOWLEDGE OUTPUTSFACTORSCONSTRUCTSLearningInventionRed = Human Blue =StructuralGreen= RelationalTacit (1)Explicit (2)Implicit (3)*KEY

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  • Knowledge Intensity Index (K.I.I.)Factors: One that actively contributes to an accomplishment, result, or process (FactorConstructK.I.I.)

    Constructs: To form by assembling or combining parts (ConstructK.I.I)

    Knowledge Intensity Index (K.I.I): K.I.I. shows the knowledge intensity of an organisation

    *

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  • ConstructsKnowledge Inputs

    Knowledge Stocks/Flows

    Knowledge Networks

    Knowledge Learning

    Knowledge Outputs*

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  • Knowledge InputsTechnical Staff- information on employees such as the level of education and number of technical staff, can be collected R&D- any creative work undertaken on a systematic basis in order to increase the stock of knowledgeTechnology Transfer- payments for production-ready technologies or know howPatents- the representation of ideas themselves, patents are the closest to direct indicators of knowledge formation

    *

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  • Knowledge Stocks/FlowsEmbodied Technology- Embodied technology is the introduction of context into production processes of machinery, equipment and components that incorporate new technology Disembodied Technology- is the transmission of knowledge, technical expertise or technology in the form of patents, licenses or know-how within an existing domainAmortised R&D-R&D stock relative to production has been used to estimate rates of return to R&D investment Research Personnel- measurement of personnel employed

    *

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  • Knowledge NetworkCommunities of Practice- Informal networks tend to be based on personal contacts or communities of practiceInnovation Surveys- surveys capture information about the factors affecting the propensity of firms to innovateOutsourcing of R&D- new types of collaborations with research organisation & activities in research and development, production, procuring, distribution, recruiting and ancillary services

    *

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  • Knowledge LearningTraining- assessed by questions on human resources and trainingExperience- Each worker requires skills obtained through education (which usually gives rise to formal qualifications in the shape of degrees or diplomas, whose equivalence may be recognised internationally) or through training or on-the-job experience Education- labour force with particular educational attainments*

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  • Knowledge OutputsNew market products- the Oslo Manual distinguishes three relevant concepts: new to the firm, new to the market and new to the worldPublications- by academic publication (a common codified pool of knowledge)Patents Granted- legal property right to an invention, which is granted by national patent offices*

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  • What we covered todayKnowledge Management

    The Project

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  • Introduction of ProjectThis report is intended for the board of Celtic Wholesome Foods Plc. The purpose of the report is to:Assess the feasibility of a proposal to implement a centralised I.S. Service DeskExplore the possible optionsRecommend a course of action

    *

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  • Scope of DocumentThis document provides an outline of the investigation and feasibility study that was conducted in February/March 2010 by __________________ into the use of a centralised IS Service Desk in Celtic Wholesome Foods Plc.

    *

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  • The Statement of Scope and Objectives is a copy of the statement that was created at the initiation of the project.

    Interviews were conducted principally in the _______ division. This was due to the fact that the author is currently based in this division. However, other divisions were taken into consideration in all other aspects of the study

    *

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  • Statement of Scope & ObjectivesAt the inception of this project this statement has been created in order to outline

    the exact nature of the business opportunity that has lead to the project the intended benefits of the proposed new information system*

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  • Assignment ScopeCompany detailsProject InitiatedThis project was initiated at the request of the Finance Director of the group due to a number of issues that came to her attention:Business units are paying vastly different rates for maintenance on their systemsPurchasing decisions are not based on clear historical data

    *

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  • Problem/OpportunityCurrently, all problems with information systems are resolved using local arrangements. Consequently, there are inefficiencies across the group.Potential for cost savings from central purchase is not being utilised.Call response times vary greatly across the group. *

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  • Problem/OpportunityFor example: In production all calls are responded to in 2 hoursIn Finance, calls are often unanswered for 8 hoursThere is no management information which could be used forHighlighting problems with current systemsMaking purchasing decisions more informed in futureThe response to calls is variable: Some service calls are being answered promptlyOther calls are taking days to resolveThere are no means of prioritising calls

    *

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  • Business BenefitsThere are many anticipated benefits from the use of a centralised service desk. These include:Faster response times i.e. engineers respond to requests fasterReduction in time lost due to system issuesMore specialisation among engineers i.e. each engineer focuses on one areae.g. one engineer concentrates on emailanother engineer concentrates on database applications*

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  • This means that engineers are being utilised to do the work that they are skilled inManagement information is produced regarding the support calls for various systems

    *

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  • System CapabilitiesAn IS Service Desk should be capable of the following:Handle all IS Service Calls Maintain a history of all callsMaintain a record of all software that is rolled out to computersMaintain an exact record of the configuration of each information system in the group

    *

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  • Company InformationCompany size, geographical locations Personnel (by type)The breakdown of personnel in the division is as follows:Marketing Director, Sales ManagerMarketing ManagerOrganisation chart A copy of the organisation chart for the project Department is shown in Appendix ?? Page ??.

    *

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  • Feasibility ReportThis report provides an outline of the current system and available options before examining one option in detail.

    *

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  • Current SystemCurrently, the system operates as follows:Each business unit has a team of people who handle all matters relating to ISThere are no formalised methods of logging requests to the IS peopleSections located nearest to the local IS department get the highest level of serviceBecause they can walk into the office to get personal serviceOffices that are distant from the IS department do not get good service

    *

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  • Available OptionsDifferent vendors/suppliers are used in each of the business units resulting inA variety of support contractsLoss of potential savings from pooled purchaseManagement information is not available becauseEach IS team has its own method of logging requestsSome use an access database, others use an Excel spreadsheet*

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  • Some teams do not keep records of service requestsInformation is not pooled across the divisionsEach IS department has its own budgetLocal arrangements are employed in prioritising callsSome of the managers have close links with the IS departmentThis provides them with the means of escalating callsIt also enables the IS people to get to understand the business

    *

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  • Currently each business unit has its own IS team who are acting independently. There are a number of options available to the group with regard to how to work in the future. The following is an outline of the main options available:Continue with the current option of each unit operating independentlyUtilise a centralised IS Service Desk but allow local IS service functions*

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  • Utilise a centralised IS Service Desk and centralise all IS functionsOutsource the IS Service Desk and centralise all IS functionsOutsource the IS Service Desk and outsource all IS functions

    Options EvaluatedAds/Disadvs*

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  • *Feasibility StudyBaaf 3 Project

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  • *ComponentsEconomicTechnicalOperational & OrganisationalSocial

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  • *Economic CostsSystems Analysis & DesignPurchase of HardwareSoftware CostsTraining CostsInstallation CostsChangeover & Data ConversionRedundancy CostsOperating Costs

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  • *Economic BenefitsSavings in LabourBenefits of Faster ProcessingBetter Decision MakingBetter Customer ServiceError Reduction

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  • *Compare Costs and BenefitsCosts mostly in the initial stagesBenefits end of systems life cycleMethodsDiscount Rate of ReturnNet Present ValueCost-Benefit RatioProfitability IndexInternal Rate of Return

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  • *Cost/Benefit pitfallsTangible benefits can be quantified BUTIntangible benefits are not easily quantifiedFinancial models assume that costs and benefits can be expressed in financial terms

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  • *Technical CriteriaRule-governed tasks Repetitive tasksComplex TasksHigh degree of accuracy req...

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