Role Of Knowledge Management In The Decision Making Presentation Transcript

1. Role of Knowledge Management in the Decision Making Process Faisal haroon 0707840 2. contents What is decision making? Knowledge management Recap of KM/decision making Knowledge management process Knowledge activates: tacit to explicit & vice versa Impact of KM strategies on decision making Technological application The changing environment 3. What is decision making? Decision making is one of the most common thinking activities and one of the most crucial processes of any business. Other common thinking activities are analyzing, categorizing, comparing, discovering, evaluating, planning, prioritizing, and reflecting. Decision making has been explained in many different theoretical frameworks (Hammond, McClelland & Mumpower, 1980; Kaplan & Schwartz, 1975). 4. Cont. In the present environment, often referred to as the knowledge age, more and more workers are becoming knowledge workers with productivity highly dependent on their decisions. Thus, decision support tools need to be tailored to meet the timeliness and utility of the decision information that will be required by these workers at all levels of the organization. According to Wiig (1994, p. 35), the lack of knowledge is a major shortcoming of important business decisions. 5. Knowledge management Knowledge Management (KM) is both a discipline and a managerial policy initiative that encapsulates the strategies, systems and processes that enable and simplify creation, capture, sharing, distribution and utilisation of an organisations knowledge. (Kandadi, 2006) KM refers to the set of business processes developed in an organisation to create, store, transfer, and apply knowledge. ( Laudon & Laudon , 2007 ) 6. Cont.. KM involves the creation of value from an organizations in tangible assets. Information systems are designed to facilitate the sharing and integration of knowledge. KM is a young discipline for which a codified, generally accepted framework has not been established. 7. Recap of KM / Decision Making Concerned with the representation and processing of knowledge by humans, machines, organizations and societies Aims to ensure the right knowledge is available in the right forms to the right entities at the right times for the right cost. Decision making is a knowledge intensive activity with knowledge as its raw materials, work in process, by products and finished goods. 8. Cont. Computer based DSS employ various KM techniques to represent and process knowledge of interest to decision makers, including descriptive knowledge (data, info), procedural knowledge (algorithms) and reasoning knowledge ( rules). Proficiency in KM is increasingly important to the competitiveness of the decision makers as we rapidly move into the global knowledge society. 9. Knowledge management process Knowledge Identification Knowledge Storage Knowledge Codification Knowledge Creation Knowledge Diffusion & Use 10. Knowledge Activities: Tacit to Explicit & Vice Versa Transfer of knowledge from people to physical form Through development of reports and manuals or answering queries Use of technologies like word processing documents, presentation tools and email Tacit Knowledge residing in People Explicit Knowledge in physical form Transfer of knowledge from physical form to actionable knowledge in people

Through video, audio or text presentations. Browsing through documents Use of technologies like multimedia technologies, word processing and presentation tools 11. Impact of KM strategies on decision making 12. Technological Application Computers will never be substitutes for humans in complex decision situations. But they can surely lend support to decision makers in helping us to make more humane decisions. Using e-mail and chat rooms, conduct real time interviews with stakeholders. Gather information on stakeholders concerns via their websites and newsgroups. 13. The changing environment As globalization expands, the number of stakeholders affected by organizations will increase in size, and the widely disparate customs, laws, behaviors and environmental concerns of affected communities will further complicate strategic problems. 14. References Laudon, K. and Laudon, J. (2006) Management Information System: Managing the Digital Firm Pearson Prentice Hall Gary, P. (1994) Decision Support and Executive Information Systems Prentice Hall International Editions Gordon, S. R. and Gordon, J. R. (2004) Information Systems a Management Approach John Wiley & sons http://www.albany.edu/~hjscholl/MSI522_2002/pdfs/Group1_1stRes.pdf[acessed 15 April 2008] Gilligan, C., Neal, B., Murray, D. (1983) Business decision making Philip Allan Publishers Ltd 15. Thank you