Knowledge Management or Business Intelligence

We used to talk "data management" (databases). We used to talk "information management" (warehouses), now we talk "knowledge management" and ”business intelligence.”  Although the concepts are related, the terms generally focus on different roles of information within organizations. 

 

Knowledge management entails the capturing of one person's expertise and insights and sharing it with others. Assume a partner at a major consulting firm is asked by a client to design and implement a new technology. The partner will begin by looking for expertise within the consulting firm to avoid "reinventing the wheel." The partner's search may be facilitated by a repository of expertise, generic documents, and forms, etc.  

 

Knowledge management focuses on the capture, storage, and dissemination of explicit and tacit  knowledge within organizations. This is the essence of knowledge management.

 

"Business Intelligence combines technologies--such as customer relationship management, data warehousing and mining, and knowledge management --to help organizations leverage their information to make better and faster decisions.  As an example, one large European telecommunications company analyzes data from its 5.7 million customers.  Key applications, which monitor network utilization and sales force performance, analyze over six terabytes of data.  Management is able to drill down in the data to find specific information about new customers, successful sales channels, or popular products, and receive that information in easy-to-read, one page reports. This business intelligence helps management better access performance and improve operational efficiencies."  (Luftman & McLean, 2004)

 

Business intelligence entails significant technical extracts from existing systems and combining and loading clean data into a business intelligence system that focuses on data analysis for strategic decision making. This is the essence of business intelligence.

 

Your group should focus either on Knowledge Management or Business Intelligence.

 

 

Knowledge Management

There are major issues associated with KM. Domain experts are busy--why would they drop what they are doing to help someone else? If knowledge is power, how do organizations motivate people to share their knowledge? How do organizations secure their knowledge? Accounting controls mandate that employees access knowledge on a "need to know basis", yet this is antithetical to the principles of KM. In other words, KM is immersed in politics!

Your group might start out with the dollars spent on KM, what KM is and is not (Warning:  Knowledge Management is NOT equivalent to an Intranet. Explain the difference to the audience.) Some conceptual pictures of knowledge management are helpful.  The first image is a very generic pyramid of knowledge.  The second image is very rich conceptually because it also shows the stakeholders in the organization responsible for knowledge management.

 

 

Source: http://www.lsc.co.uk/defence/index.html?3_6_knowledge-management.html~MainFrame viewed Dec 19, 2006

 

Source: http://www.aib.it/aib/contr/bottin1c.gif  viewed Dec 19, 2006

Your group might start with the dollars spent on KM, the promised benefits, and the challenges/costs/risks of implementing KM systems, etc.

Your group might then focus on a few case studies of how organizations are implementing knowledge management. Include a description of:

  • Size of company in terms of sales and profits
  • Major products the company sells
  • General characteristics of their customers
  • Organizational chart--who does the CIO report to?
  • How many people work for the IT organization?
  • What is the annual IT budget?

 

The Knowledge management case should include:

  • Knowledge management strategy
  • Technology used to support km
  • Degree of success and failure of the KM system
  • How does the company motivate domain experts to share knowledge?
  • How does the company balance knowledge security with the ideas of open information sharing?
  • Lessons learned by the company

It would be great if we could see the screen captures of the Knowledge Management System.

Finally, your group should find and generate a list of best practices for knowledge management.

 

Helpful reading:

 

Scott, J., Globe, A., and Schiffner, K., "Jungles and Gardens: The Evolution of Knowledge Management at J.D. Edwards,"  MIS Quarterly Executive, Vol. 3, 1, 2004, pp. 37-52.

 

The case clearing houses have several good knowledge management case studies.

 

Business Intelligence

The group may begin by briefly explaining the Business Intelligence concept, presenting statistics on the dollars spent on business intelligence, the promised benefits of business intelligence, and major challenges.  Your group should show how BI entails significant technical extracts from existing systems and combining and loading clean data into a business intelligence system that focuses on data analysis for strategic decision making.  For example, the following picture shows a conceptual picture of BI:

 

Source: http://www.piiglobal.com/images/logo_bi.jpg  viewed on Dec 19, 2006

Your presentation should proceed with two or three case studies of organizations' business intelligence. (Preferably original case studies but secondary case studies are available)

Case studies should include the Company Background:

  • Size of company in terms of sales and profits
  • Major products the company sells
  • General characteristics of their customers
  • Organizational chart--who does the CIO report to?
  • How many people work for the IT organization?
  • What is the annual IT budget?

The business intelligence aspect of the case study should include:

  • Picture and good description of the organization's Business Intelligence
  • Who is responsible for Business Intelligence
  • Specific example of how Business Intelligence is used
  • What are the perceived benefits and limitations of the Business Intelligence as described by IT managers/business managers
  • What plans does the organization have for the future of the Business Intelligence
  • Lessons learned by the company

Other potential ideas for the presentation:

  • A brief overview or demonstration of Business Intelligence software (10 minutes or less)
  • Major BI suppliers (products, services, revenues, profits)

The group should end the presentation on best practices for creating effective Business Intelligence systems, then map how your cases fit into best practices.  This is essentially a cross-case comparison that integrates your primary (case studies) and secondary (journal articles & books) research.

 

If you have other creative ideas, please feel free to discuss them with me.

 

Some helpful readings:


Mika Hannula, Virpi Pirttimaki. "Business Intelligence: Empirical Study on top 50 Finnish Companies," Journal of American Academy of Business, Cambridge. Hollywood: Mar 2003. Vol. 2, Iss. 2; p. 593 (7 pages)

Jaideep Srivastava, Robert Cooley, "Web Business Intelligence,"  INFORMS Journal on Computing. Linthicum: Spring 2003. Vol. 15, Iss. 2; p. 191

 

W F Cody, J T Kreulen, V Krishna, W S Spangler., "The integration of business intelligence and knowledge management,"  IBM Systems Journal. Armonk: 2002. Vol. 41, Iss. 4; p. 697 (17 pages).