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Supporting

Knowledge Work

Chapter 13

Information Systems Management In

Practice 7E

McNurlin & Sprague

PowerPoints prepared by Michael Matthew

Visiting Lecturer, GACC, Macquarie University Sydney Australia

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2006 Barbara C. McNurlin. Published by Pearson Education.13-2

Chapter 13 This chapter isolates two of the most illusive, yet

important, topics that relate to supportingknowledge work: Managing knowledge and

Computer ethics

Managing knowledge means Encouraging people to share knowledge in a form that

others can easily access

As well as customer knowledge and researchersknowledge and

How to embed this outside knowledge in a real-timesystem

Under this topic are the intellectual capital issuesof valuing intellectual property, usage, and

sharing knowledge

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Chapter 13 cont.

Computer ethics deals with such areas as: Information privacy Intellectual property rights and

Other legal and ethical issues relating to information andknowledge

Old laws and regulations were written before thecomputer age, yet they are being applied to todayssoftware, challenging the applicability the entire realm ofintellectual capital challenges

Case examples involving knowledge work includeBuckman Laboratories, BP, a Pharmaceutical Company,Skandia Future Centers, a U.S. Energy Company, aNorth American bank, Partners HealthCare System, and

Clickwrap Agreements

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Todays Lecture

Introduction

Companies Want to Manage Knowledge

A Model for Managing Knowledge

Building Human Capital

Building Structural Capital

Building Customer Capital The Cultural Side of Knowledge Management

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Todays Lecture cont.

Intellectual Capital Issues Value Issues

Usage Issues

Sharing Issues

The Vast Arena of Computer Ethics A Little History

What is Computer Ethics? Information Privacy

Intellectual Property Rights

Legal Jurisdiction

Online Contracting

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IntroductionCompanies Want To Manage Knowledge

Knowledge cannot be controlled or engineered, sothe mechanical metaphor is wrong: it can only beleveraged through processes and culture

Knowledge exists in two states, tacit and explicit, andeffective knowledge management requirestransferring knowledge between these two states Tacit knowledgeexists within a persons mind and is private

and unique to each person

Explicit knowledge has been articulated, codified, and madepublic

Western management practices have concentratedon managing explicit knowledge; but cultivating and

leveraging tacit knowledge is just as important

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A Model for Managing Knowledge

The model is circular with four stages, whichrepresent what people generally do with knowledge

1. First they create it, or capture it from a source

2. Second, they organize it and put it into categories for easyretrieval

3. Third, they distribute it (push) or access it (pull)

4. Fourth, they absorb anothers knowledge for their own useor to create more new knowledge

Thus, the cycle begins again

These four stages create three types of capital:1. Human capital

2. Structural capital, and

3. Customer capital

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A Model for Managing KnowledgeBuilding Human Capital

Human capital is the knowledge, skills, andinnovativeness of employees as well as

company values, culture, and philosophy

Creating it focuses on getting people togetherto share knowledge

1. Knowledge Creation and Capture This phase deals with generating knowledge, either

by nurturing employees to create it or by acquiring it

from outside

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BUCKMAN LABORATORIESCase Example: Knowledge Creation and Capture

This industrial chemical company, with employeesaround the world, brings the knowledge of all itsemployees to bear on a customer problem anywherein the world via a knowledge transfer system

When employees need information or help, they askvia forums, which are Buckman-only online forumsover the Internet

The online conversations are the basis for

transferring knowledge around the company,important threads being captured and stored in theforum library

The prime benefit is timely, high-quality responses to

customer needs

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A Model for Managing KnowledgeBuilding Human Capital cont.

2. Knowledge Absorption and Reuse This phase of building human capital addresses the

notion of getting knowledge into peoples headswhere it can be enhanced and reused

One of the problems is that management often doesnot realize which employees are vital to informationsharing because they house the organizationalmemory

One way to foster sharing is via T-managers These are executives who have both a vertical role (suchas running a business unit) and a horizontal role (such assharing knowledge with their peers in other business units)

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A Model for Managing KnowledgeBuilding Human Capital cont.

2. Knowledge Absorption and Reuse cont. The Rudy Problem: I just sort of help

Knowledge Brokers

Cant appoint!!!

When you find one look after him/her

Discovering who has the problem is a step in theright direction. Create environment that supportsknowledge sharing and emergence of knowledgebrokers

Successfully transferring knowledge depends 90%of having the right culture, and 10% on technology

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BPCase Example: T-Manager Concept BP is exemplary in its use of the T-manager concept

From studying BP, two researchers learned that mechanismsmust be put in place to both foster and guide managersknowledge-sharing activities; otherwise, they start to take up toomuch time and produce little results

Peer groups in one division increased sharing among businessunit leaders in similar businesses, but it was not until thesegroups were made responsible for allocating capital amongstthemselves, and for setting their performance levels, that theirsharing started to truly impact business performance

One business unit head who is a T-manager has a knowledge-sharing role in which he connects people, acting in some wayslike a human portal by suggesting who might help solve aproblem

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A Model for Managing KnowledgeBuilding Structural Capital Structural capital is the capabilities embedded inhardware, software, databases, organizational

structure, patents, and trademarks that supportemployees as well as relationships with customers

It moves knowledge from peoples heads to a tangiblecompany asset Note: The Rudy problem also applies here

1. Knowledge Organization and Categorization

This phase is often handled by creating best practicesknowledge bases

A few have even tried to measure intellectual capital Following 2 cases

1. Improving a knowledge-support process

2. Valuing intellectual capital

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A PHARMACEUTICAL COMPANYCase Example: Improving a Knowledge Support Process A project at a major pharmaceutical company aimed at

improving the process of developing new drugs andgetting them approved by the U.S. Food and Drug

Administration (FDA)

The team found the filed files were not complete, so it

created a generic knowledge tree of the questions theFDA asks when deciding whether to approve a drug

The team also commissioned their 10-year drug studybeforehand, so they were clear about the data theyneeded to gather and present to the FDA, creating the

report template publicly as a team Common mental model

The result: faster reports and faster approvals Submit 3 months Vs. 18

Approved 18 months Vs. 3 years

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SKANDIA FUTURE CENTERSCase Example: Valuing Intellectual Capital

One project in this insurance companyaddressed the question of putting a value onintangibles, such as knowledge

It aimed to find a common mechanism forestablishing value and trading that value

The knowledge exchange began as anetwork for exchanging knowledge

It has evolved into a Web-based tradingarena where people can buy and sellknowledge assets

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A Model for Managing KnowledgeBuilding Structural Capital cont.

1. Knowledge Distribution and Access

This phase emphasizes both pushing

knowledge out to users (distribution) andaccommodating users who pull information

to themselves (access)

Generally, companies focus on high-tech

approaches, such as implementing networks

and networking tools to access human and

structural capital

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A U.S. ENERGY COMPANYCase Example: Knowledge Distribution and Access

To instill a sharing culture in this highly autonomousenergy company where the business units each focusedon their own performance, management focused onpromulgating best practices

It defined them as a practice, know-how, or experience

that had proven effective or valuable in one organization,and might be applicable to another

A number of programs to collect best practices arose, butthey were disparate. So a booklet was created based onTQM principles; it became the guide for sharing bestpractices

Certain people were designated technical knowledgeexperts because they knew about best practices acrossthe company, so their job was to disseminate tacit

knowledge

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A Model for Managing KnowledgeBuilding Customer Capital

Customer capital is the strength of a

companys franchise with its customers, and is

concerned with its relationships and networks

of associates When customers are familiar with a companys

products or services, the company can call

that familiarity customer capital

This form of capital may be either: Human (relationships with the company) or

Structural (products used from the company)

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A NORTH AMERICAN BANKCase Example: Building Customer Capital

The vice president wanted to find a way to valueintangibles so the bank would have a soundermeans for evaluating potential loan customers thansimply look at the tangible assets they possessed

Intellectual capital had to be worth something!

In addition to defining human and structural capital,he defined customer capital and measured threeaspects:

1. Depth of knowledge about the bank in a customerorganization

2. Breadth of knowledge by a customer, and

3. Loyalty to the bank

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A NORTH AMERICAN BANKCase Example: Building Customer Capital cont.

To strengthen these aspects, the vicepresident believed the bank needed to

assist its customers in learning Such as learning more about the bank,

requiring the banks values and strategies

to be congruent with its customers

This helped senior bank officers focusmore on customers

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A Model for Managing KnowledgeThe Cultural Side of Knowledge Management

Success in knowledge management comes as muchfrom changing organizational behavior as it doesfrom implementing new technology

Knowledge management work must tap peoplesmotivations to share and cooperate

Red Flags Cultural barriers:

Being seen as a whistle blower or messenger of badnews Losing ones place as a knowledge gatekeeper Time implications

Knowledge sharing really does take time

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A Model for Managing KnowledgeThe Cultural Side of Knowledge Management cont.

Red Flags Management

Saying the project isnt cost justifiable

because the benefits are intangible Concern that too much participation will

reduce employee productivity

Concern that creating the taxonomy ofknowledge categories will be tooexpensive to undertake

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A Model for Managing KnowledgeThe Cultural Side of Knowledge Management cont.

Design the System to Match What the Users Value

A knowledge management system needs to bedesigned to fit the people who will use it and gainvalue from it

One system that works: Is demand driven Roots out tacit knowledge

Is in members e-mail box every day, and

Is full of intriguing opinions

Its a conversation rather than a library, which is justwhat these professionals need

So beware of creating a system that supports thewrong culture

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PARTNERS HEALTHCARE SYSTEMCase Example: Design the System to Match What the Users Value

This hospital and physician group system is deliveringjust-in-time knowledge to physicians by way of theironline order entry system, notifying them of druginteractions when they enter a prescription order

The system can also tell the doctor about a newer,

more effective drug or warn the doctor that theprescribed medication could worsen a patient disease,making the system a recommender system

It also has an event-detection mechanism, which alertsa physician when it learns of an event that can

endanger the health of a patient Committees of top clinicians identify the knowledge that

needs to be in the knowledge bases and keeps it up todate

Bottom line = improves individuals and organizations

performance

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Intellectual Capital Issues

Data, information, content, and intellectualcapital all raise thorny issues that haveprompted legislation in some, but not all,countries around the globe (which causes

even more problems in todays intertwined,global society) Varies from country to country, culture to culture

Their resolution is important for global e-commerce, even though such resolutioncould be a long way off

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Value Issues Informations value depends on the recipient and the

context; most people cannot put a value on a piece ofinformation until they have seen it

The only practical way to establish the value ofinformation is to establish a price for it and see ifanyone buys

A number of tools are being used within companies toincrease the value of information: Information maps

Textual charts, diagrammatic maps etc. that point to location of

information Information guides

People who know where the information is

Business documents, and

Groupware Lotus Notes

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Usage Issues

Information management is amanagement issue because it deals withhow people use information

Information use is difficult to managebecause:

The informations complexity must bepreserved

People do not share easily, and

Technology does not change culture Just building an information system doesnt mean

that people will use it!!!

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Sharing Issues

A sharing culture must be in place or the

existing disincentives will thwart using a

sharing system But forcing employees to share

information with those above them can

lead to intrusive management Unlimited sharing also does not work, so

there need to be limits

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The Vast Arena of Computer Ethics

A Little History

New technologies pose ethical issueswhen they open up new possibilities forhuman action

In the mainframe era, the perceivedthreat was invasion of privacy

In the PC era, attention turned to theethical issues of property rights

In the Internet era, all the concerns of the

past have resurfaced and become global

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What is Computer Ethics? New technologies raise ethical issues because they

create policy vacuums: ethical issues are the vacuums,and the role of computer ethics is to fill them

Areas of ethical concern include: Privacy

Property rights

Liabilities

Free speech, and

Professional ethics

To address such issues, some people look to traditionalmoral norms and apply them to the new situations Extending property laws to software, for example

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What is Computer Ethics? cont. The question becomes Should we fill the

vacuums with laws or something else?

The ethical questions surround what people doto one another, so they involve such conceptsas: Harm

Responsibility

Privacy, and

Property Again = varies from country to country, culture

to culture etc.

IT creates a new instrumentation for human

action, making new actions possible

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Information Privacy Privacy includes:

Freedom from intrusion

The right to be left alone

The right to control information about oneself, and

Freedom from surveillance

The United States, Australia and many other countrieshave enacted laws to control certain types of personalinformation, carrying over to the e-business

environment

New technologies e.g. RFID worry privacy advocates Can industry, retailers etc. monitor personal belongings after

they have been purchased? Options? Technical and other

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Information Privacy cont. But the argument for personal information

privacy has not won the day, since a muchstronger argument for the right to privacy canbe made if privacy is seen as a social good,

rather than as an individual good

Five ways to increase information privacyprotection include things that can be done:1. At the national level

2. By computer professionals

3. By technology

4. In Institutions, and

5. By individuals

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Intellectual Property Rights

The protection of intellectual property is critical

in an Internet-based world because many

products and services contain intellectual

property, and copies are easy to make and areoften as good as the original

There are four types of legal protection for

intellectual property:

Copyrights

Patents

Trademarks, and

Trade secrets

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Legal Jurisdiction Laws are written for particular jurisdictions with clear

geographic boundaries, so how do those laws apply incyberspace, which has no geographic boundaries?

Faced with the inability to control the flow of electrons

across physical boundaries, some authorities strive toimpose their boundaries on cyberspace

Legal and commercial

Internationally, the United Nations Commission on

International Trade Law has developed a model lawthat supports the commercial use of internationalcontracts in electronic commerce

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Online Contracting

Contract law looks for evidence that the

parties have mutually assented to the

terms of a particular set of obligations

before it will impose those obligations onthem

In e-business, evidence of acceptanceof a contract can be a simple click on a

button saying I Accept or I Agree.

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CLICKWRAP AGREEMENTS

Case Example: Online Contracting

This clickwrap contract is an example of

what the law calls a contract of adhesion

A contract you did not really bargain over in any

way, but which was presented as more of a take-it-or-leave-it offer

Generally speaking, adhesion contracts are

legally enforceable

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Conclusion

To properly support knowledge work, companiesneed to understand the life cycle of knowledgebecause each phase is best supported by specificapproaches Two by high-touch people approaches, and

Two by high-tech approaches

Likewise, it behooves management to understand thevast arena of computer ethics

IT adds new twists and, often, greater ramifications tolong-standing ethical issues

Ethical use of IT is creeping into corporate policies,sometimes due to regulation

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Conclusion cont.

Companies in some countries are now required tostate their privacy policies with respect to thepersonally identifiable information they handle

Many companies have also decided whether or not e-mail is company or private property, and made theirstance known to employees

It would be wise for CIOs to bring up other ethical

issues and see that company policies are set,promulgated, and enforced, so that knowledge andother forms of intellectual property are properly usedfor good, not harm

Documents

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