A PROJECT REPORT IN MANAGEMENT INFORMATION SYSTEM

PROJECT TITLE: STUDY & ANALYSIS OF USE OF KNOWLEDGE MANAGEMENT SYSTEM IN BUSINESS.

Submitted On: 22TH OCTOBER 2012

UNDER THE AEGIS OF

Submitted To: Mrs. Roma Chauhan

Submitted By: Dilip Kumar PGDFS - 2011-13 Roll No. : FT-(FS)-11-319

CONTENTS
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Particulars Knowledge Management Knowledge As An Assets Explicit and Tactic Knowledge What Is Knowledge Management Related To History Of Knowledge Management Values Of Knowledge Management Knowledge Managements Drivers & Objectives Present & Future State Of KM Effect of Knowledge Management On Databases A Model Of Strategic Knowledge Management Phases Of Knowledge Management Five Ps Of Strategic Knowledge Management Knowledge Management System Components Technology Supported By KMS The Implication Of Knowledge Management Bibliography Page No. 3 4 5 5 6 7 8 11 12 13 15 18 20 22 24 25

PROJECT TITLE: Study & Analysis Of Use Of Knowledge Management System In Business.
Knowledge is the process of translating the information (such as data)
& past experience into a meaningful set of relationship which are understood and applied by an individual. As the values of employees and organizational data have become more crucial to organizations outcomes and competitiveness, the concept of knowledge management has emerged.

Knowledge Management (KM): Knowledge Management is the

process of identifying, capturing, organizing and disseminating the intellectual assets that are critical to the long term performances of the organizations. It comprises a range of strategies & practices used in an organization to identify, create, distribute & enable adoption of insights & experiences. Such insights & experiences comprises knowledge either embodied in individuals or embedded in organizations as processes or practices. Knowledge Management efforts typically focus on organizational

objectives such as improved performances, competitive advantages, innovation, the sharing of lessons learned, integration & continuous improvements of the organizations. Knowledge management efforts overlap with organizational learning, and may be distinguished from that by a greater focus on the management of knowledge as a strategic assets & a focus on encouraging the sharing of knowledge . Many large companies & non-profit organizations have resources dedicated to the internal KM efforts, often as a part of their business strategies, information technology, or HRM (Human Resources Management) departments. Several consulting companies also exist that provide strategies and advice regarding KM to these organizations.

Business operations, changing organizational structures, new workplace characteristics and the increasing globalization of the working world have all encouraged a growing focus on the Knowledge Management. Business have responded in a number of the way as their internal & external environments became more dynamic, unpredictable and complex. Knowledge Management may be viewed in terms of: People how do you increase the ability of an individual in the organization to influence others with their knowledge Processes Its approach varies from organization to organization. There is no limit on the number of processes Technology It needs to be chosen only after all the requirements of a knowledge management initiative have been established. Or Culture The biggest enabler of successful knowledge-driven organizations is the establishment of a knowledge-focused culture Structure The business processes and organizational structures that facilitate knowledge sharing Technology A crucial enabler rather than the solution.

Knowledge As An Assets: Each person possesses a unique set of

knowledge, drawn from experiences and sources encountered over the years. Knowledge is generated as the various information sources are tested and combined with past experience & learning. Thus knowledge is creative, dynamic and adaptable. People possess various forms of knowledge. Some of this is robust & well established, based on the firm principles which have been tested over the time and found to be true, and other knowledge may be dynamic, constantly shaped by new experiences & insights. Errors & misjudgments can be important sources of learning as people evaluate the effectiveness of the initial & ongoing decisions on the final

performances or outcomes. Thus, knowledge is developed through the adaptations and interpretations of information, past expertise, experiences, errors and other influences. It draws on the individuals personal construction of reality and constantly reshaped and consolidated through the further exposure & experiences. Explicit and Tactic Knowledge: Explicit Knowledge is knowledge that can be shared with others it can be documented, categorized, transmitted to others as information, & illustrated to others through demonstrations, explanations and other forms of sharing. It is a key organizational resources which is increasingly important as the nature of the work evolves towards a knowledge focus. Tactic Knowledge is the knowledge which draws on the accumulated experience and learning of a person and which is hard to reproduce or share with others. Although tactic knowledge is hard to document, categorize and share, organization depend on it to ensure good quality choices and judgments.

What Is Knowledge Management Related To?

Knowledge management draws from a wide range of disciplines and technologies: Cognitive science Expert systems, artificial intelligence and knowledge base management systems (KBMS) Computer-supported collaborative work (groupware) Library and information science Technical writing Document management Decision support systems Semantic networks

 Relational and object databases Simulation Organizational science Object-oriented information modeling Electronic publishing technology, hypertext, and the World Wide Web; help-desk technology Full-text search and retrieval Performance support systems

The History of Knowledge Management :

1. 70's,: A number of management theorists have contributed to the

evolution of knowledge management. Peter Drucker: information and knowledge as organizational resources. Peter Senge: "learning organization". Leonard-Barton: well-known case study of "Chaparral Steel ", a company having knowledge management strategy. 2. 80's, Knowledge (and its expression in professional competence) as a competitive asset was apparent. Managing knowledge that relied on work done in artificial intelligence and expert systems. Knowledge management-related articles began appearing in journals and books 3. 90's until now, A number of management consulting firms had begun in-house knowledge management programs.

Knowledge management was introduced in the popular press, the most widely read work to date is Ikujiro Nonakas and Hirotaka Takeuchis The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation (1995).

The International Knowledge Management Network (IKMN) went online in 1994. Knowledge management has become big business for such major international consulting firms as Ernst & Young, Arthur Andersen, and Booz-Allen & Hamilton.

The Value of Knowledge Management

Some benefits of KM correlate directly to bottom-line savings, while others are more difficult to quantify. In today's information-driven economy, companies uncover the most opportunities and ultimately derive the most value from intellectual rather than physical assets. To get the most value from a company's intellectual assets, KM practitioners maintain that knowledge must be shared and serve as the foundation for collaboration. Yet better collaboration is not an end in itself; without an overarching business context, KM is meaningless at best and harmful at worst. Consequently, an effective KM program should help a company do one or more of the following: Foster innovation by encouraging the free flow of ideas. Improve decision making. Improve customer service by streamlining response time. Boost revenues by getting products and services to market faster. Enhance employee retention rates by recognizing the value of employees' knowledge and rewarding them for it. Streamline operations and reduce costs by eliminating redundant or unnecessary processes.

These are the most prevalent examples. A creative approach to KM can result in improved efficiency, higher productivity and increased revenues in practically any business function.

Knowledge Management Today

According to a recent IDC report, knowledge management is in a state of high growth, especially among the business and legal services industries. As the performance metrics of early adopters are documenting the substantial benefits of knowledge management, more organizations are recognizing the value of leveraging organizational knowledge. knowledge management software is rapidly evolving. As a result, knowledge management consulting services and technologies are in high demand, and

Knowledge Management Drivers

The main drivers behind knowledge management efforts are: Knowledge Attrition: Despite the economic slowdown, voluntary A recent survey by the global

employee turnover remains high.

consulting firm Drake Beam Morin revealed an average voluntary employee turnover rate of 20 percent with 81 percent of organizations citing employee turnover as a critical issue. An estimated annual cost of employee turnover was a staggering $129 million per organization. Much of this cost is due to knowledge attrition, which can be effectively minimized using knowledge management techniques. Knowledge Merging: Since 1980, the annual value of mergers has risen 100 fold reaching a cumulative $15 trillion in 1999. Over 32,000 deals were announced, triple the number of 10 years earlier and more than 30 times as many as in 1981. The recent frenzy of corporate mergers coupled with the increased need to integrate global

corporate communications requires the merging of disparate and often conflicting knowledge models. Content Management: The explosion of digitally stored business-

critical data is widely documented. Forester Research estimates that online storage for Global 2,500 companies will grow from an average of 15,000 gigabytes per company in 1999 to 153,000 gigabytes by 2003, representing a compound annual growth rate of 78%. As the volume of digital information expands, the need for its logical organization is critical for purposes of information retrieval, sharing and reuse. E-Learning: As the economy becomes more global and the use of PCs more pervasive, there has been a dramatic increase in e-learning, also known as computer based training. E-learning is closely linked to and overlapping with, but not equal to knowledge management. deliverables. Elearning can be an effective medium for knowledge management

Knowledge Management Objectives : The graph below shows the

results of a recent IDC study in which corporations cited various objectives for knowledge management efforts: Activities related to these objectives include: creating knowledge sharing networks that facilitate a corporate knowledge culture, developing knowledge leaders, optimizing intellectual capital by producing knowledge management solutions such as codification strategies and knowledge bases, and estimating revenue and efficiency gains resulting from knowledge management in terms of return on investment (ROI).

Knowledge Management Return Of Investment:

Although 65% of organizations that are currently implementing KM initiatives have not measured the impact of their performance, large revenue gains and efficiency improvements have been recorded by numerous major corporations. For instance: Ford Motor Company accelerated its concept-toproduction time from 36 months to 24 months. The flow on value of this has been estimated at US $1.25 billion, The Dow Chemical Company saved $40 million a year in the re-use of patents, Chase Manhattan, one of the largest banks in the US, used Customer relationship management KM initiatives to increase its annual revenue by 15%, and Pfizer credits KM practices for discovering the hidden benefits of the Viagra drug.

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Present and Future State of KM

Currently, communities of practice such as the Knowledge Management Network and the development of standards and best practices are in a mature stage of development. KM curricula such as certification, corporate training and university graduate certificate programs are on the rise. Techniques such as data mining and text mining that use KM for competitive intelligence and innovation are in the early stages of development. Finally, organizations are investing heavily in ad hoc KM software that facilitates organizational knowledge. The chart below estimates the state of their current and future KM activities.

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The Future of Knowledge Management

In the next several years ad-hoc software will develop into

comprehensive, knowledge aware enterprise management systems. KM and Elearning will converge into knowledge collaboration portals that will efficiently transfer knowledge in an interdisciplinary and cross functional environment. Information systems will evolve into artificial intelligence systems that use intelligent agents to customize and filter relevant information. New methods and tools will be developed for KM driven E-intelligence and innovation.

The Effect of Knowledge Management on Databases

Multiple intelligence corporate databases will merge These into large, integrated, knowledge

multidimensional knowledge bases that are designed to support competitive and organizational memory. centralized repositories will optimize information collection, organization, and retrieval. They will offer knowledge enriching features that support the seamless interoperability and flow of information and knowledge. These features may include: the incorporation of video and audio clips, links to external authoritative sources, content qualifiers in the form of source or reference metadata, and annotation capabilities to capture tacit knowledge. Content will be in the form of small reusable learning objects and associated metadata that provides contextual information to assist KM reasoning and delivery systems.

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A Model Of Strategic Knowledge Management

Knowledge Influences

Knowledge Foundations

Knowledge Applications

Knowledge Enhancement & Review

Organizational Context Strategic Knowledge Knowledge Leadership Knowledge Culture

Human Resource Management

Knowledge System

Core Knowledge Knowledge Repositories Knowledge Service Learning & Development

Knowledge Evaluations Knowledge Sustainability Issues & Researches

Strategic Knowledge Management Model consist of following phases : 1. Knowledge Influences : Strategic knowledge management

explores the key principles & methods by which knowledge management may be linked to major strategic direction of the organizations. The knowledge leader outlines some of the issues relating to knowledge leadership & its enhancement in the knowledge-intensive communities. Developing & sustaining a knowledge culture examines some of the facets of knowledge culture & then explores challenges associated with building a knowledge culture, particularly where this requires significant changes to the existing values & attitude. 2. Knowledge Foundations : Effective knowledge management relies on strong systems, structural processes & well aligned policies &

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practices. Supporting Knowledge Management through human resources management practices examines the concepts of a knowledge architecture, exploring how supportive knowledge qualities & values can be nurtured through human resource practices. Supporting Knowledge Management through technology identifies the system & technologies which enables effective knowledge management.

3. Knowledge Applications : Knowledge Applications

focus on

various elements related to cultivating a strong & strategic knowledge focus in the organization, & in each individual employee. Developing core knowledge framework & developing and managing knowledge repositories describes the ways strategic knowledge can be identified, shared, protected & managed. Developing an effective knowledge service explores the ways the knowledge users may be encouraged to integrate knowledge into core work practices & to seek new & improved strategies through a range of supportive services & agencies. Learning & Development in a knowledge setting complete the review of the ways knowledge workers can be supported in a knowledge intensive community which needs people to learn & continually build new expertise & competencies. 4. Knowledge Enhancement & Review : Evaluating the effectiveness of the knowledge strategy outlines some of the ways knowledge management can be evaluated & reviewed. Sustainable knowledge management shifts the focus to examine some of the issues which needs to be considered in different context. An overall view of strategic knowledge management provides a comprehensive

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& integrated view of the factors which influences the effective knowledge management.

Phases Of Knowledge Management :

There are five Phases of knowledge development : 1. Knowledge Sourcing : The identification of a knowledge gap

between what is known & what needs to be known is often the stimulus for starting the Knowledge creation process. In response to the identification of a knowledge gap, the organization commonly reviews existing sources of guidance held by individuals or other organizational resources. This process of drawing together as many informed knowledge source as possible is called Knowledge Sourcing. It is an important stages of knowledge creation. 2. Knowledge Abstraction : After analyzing the knowledge sources, general principles and concepts are generated to guide the construction of knowledge. This process is called Knowledge Abstraction. It helps to frame the insights gained from knowledge sourcing and to extrapolate new knowledge from the basic guidelines & issues that have emerged. Where the knowledge seekers are highly expert, they will rely heavily on their own knowledge, with other sources simply validating or enriching that knowledge. Less experienced seekers will rely more heavily on external sources. 3. Knowledge Conversion: From abstract foundations, knowledge converts into various forms of useful applications that can be tested & shared with others. Knowledge conversion describes the phases during which the various ideas & principles are refined into

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Phases:

Creates:

Knowledge Sourcing Knowledge Abstraction Knowledge Conversion Knowledge Diffusion Knowledge Development & Refinement

Rich & Accurate Foundation for ongoing knowledge Formation

Principles, Theories & Concepts to guide Ongoing Knowledge Development

Abstracts converted outcomes

Concepts which are into applications &

Shared understanding and adoption of knowledge gained

Adaptable & Flexible which accomodates context

knowledge changing

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specific outcome. Knowledge can be either codified or embodied. Codified knowledge is knowledge that can be recorded & accessed by other as required. It can be developed into artefacts, such as models, equations & guidelines. Embodied Knowledge is the tactic knowledge of individuals. It can be shared through stories, metaphors or personal advice as required. Embodied knowledge is more difficult to access without ongoing engagement with the knowledge creators. 4. Knowledge Diffusion : Knowledge Diffusion is the spread of knowledge of once it is codified or embodied. In organizational settings, diffusion can occur through communication media (e.g. the internet, news-letters, meetings, seminars or videos), modeling of news practices, and demonstrations or coaching in specialized procedures. The success of knowledge diffusion depends on the level of previous knowledge held by the audience & the effectiveness of the channels available to share the knowledge. Diffusion occurs best when the recipients can understand & integrate the insight into their own mental constructs. Embodied knowledge, which draws on significant expertise, learning & experience, may be harder to transfer to others.

5. Knowledge Development & Refinement : Knowledge is regularly reshaped & further tested through additional experience and feedback. This evolutionary process of knowledge development & refinement is one of the key features of knowledge management, ensuring the knowledge remains current and useful. However, this also places more challenges on organizations that seek to capture & hold knowledge for use by others; such organizations need to

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ensure that the created knowledge is constantly reviewed & updated to reflect any new understanding that has been acquired.

The Five Ps Of Strategic Knowledge Management :

Knowledge management is a complex process of social change & systematic development. It relies on the alignment of five key systems to achieve full integration into organizational setting. These are called Five Ps of Strategic Knowledge Management. They are: 1. Planning: Strategic Knowledge Management requires

comprehensive planning. Planning should clarify the knowledge goals & establish effective values & processes to support those direction. Long & short terms goals need to be clearly defined. Planning for technological infrastructure should also reflects knowledge management goals so that plans can be effectively implemented. Planning process takes time and perseverance, requiring careful consideration of the whole knowledge context. They also need ongoing monitoring & measurement to ensure the planned strategies were successfully implemented. Equally important is the recognition that strategic knowledge management requires progressive review & replanning to take into account the changing environment.

2. People : Strategic Knowledge Management is the recognition that strategic knowledge relies on people. People have the knowledge. They manage the systems & processes. Their commitment to the Strategic Knowledge is important to its overall success. They need to convinced that Strategic Knowledge is a valuable strategic initiative. A sharing culture which encourages knowledge diffusion

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can be developed through effective knowledge hubs, networks, CoPs & other social community strategies. Participants need to be convinced that there are social, economic & logistics benefits from their knowledge participants. This implies that the knowledge message will be strongly supported by human resource processes & philosophies, & by the leadership provided at all levels of the organizations.

3. Process : Knowledge Management principles need to be put into practices via effective workplace practices. The alignment of strategy, principles, processes & practices needs to be carefully managed to ensure that Knowledge Management principles donot fracture when implemented. It need to be recognized that messages about what is important may be perceived differently across the organizations. If there is little tangible commitment to the knowledge principles, they will ignore the public messages in favor of the local reality. Thus, the actual process need to be monitored regularly to ensure it reflects knowledge priorities. If not, it is important to recognize that the overall knowledge philosophy is contradicted by the social context in which the knowledge operates. 4. Products : Each organization builds its own knowledge output or products. These mar be provided to clients, or exist as internally shared knowledge objects. A focus on core knowledge helps to identify the range of knowledge products which should be cultivated, encouraging their definition, capture, management and distribution. Sources of embodied knowledge may need to be identified to encourage their access by others. Explicit knowledge

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should be captured & distributed in an efficient & timely manner, so that it is readily accessible by users. 5. Performance : Knowledge Management needs to be regularly reviewed to ensure that the financial & social investment is positively influencing the intellectual and social capital of the organization. Any organization must ensure its balance long & short term priorities to enable effective financial management & development for future. Most companies continually battled to find the best solution for achieving efficient and cost effective but innovative approaches to their business challenges.

Knowledge Management System Components :

A range of technologies support knowledge management in four broad areas of activities : 1. Business Process Management : Business Process Management describes the process that are required to support the business practices of the organization. Various systems operates in the firm to ensure effective business integration is achieved. Some typical systems are those relating to finances, human resources management & decision making. Ideally, these should be linked to the knowledge management practices, so that members of the firms have access to accurate & current information on which to build their knowledge. 2. Content Management : Content Management relates to the

intellectual context of the KMS. This ensures that users can efficiently retrieve knowledge on particular topic or theme. Content Management provides a range of strategies for indexing, organizing & storing the resources that are linked to the KMS.

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3. Web Content Management : Web Content Management focuses on the building an effective web sites framework through which users may access the KMS. It ensures the KMS architecture is appropriate to achieve a logical & accessible management of context & links. A particularly important element of this aspect of knowledge system development is the construction of the client interface, that is the communication channel through which users interact with the knowledge system. 4. Knowledge Applications Management : Knowledge Applications Management ensures users are provided with the application packages & specialist tools for creating & using their knowledge. Applications are software which helps the user with creating knowledge. For example word processing & emails are applications. These products also helps with workflow management, that is, the management of various activities which contribute to a final product. Increasingly, these are interdependent activities which involve a number of people. Project management relies strongly on workflow management. The table below shows an overview of the ways these four systems contribute to the KMS.

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Purpose Business Process Management

Enables access to business knowledge within the organization. Links system to corporate policy on knowledge access & priorities

Technical Components

Typical Activities
Decision making Corporate Communication Discussion Boards

Content Management

Web Content Management

Organizational processes Organizational records Contributor knowledge Related knowledge system policies, access, procedures. Ensures valued Metadata knowledge sources Indexes are indexed, Quality Control retrievable, logically arranged & securely protected. Provides an Server Management accessible & secure File sharing platform on which Portal development the KMS can operate. Browser Ensures knowledge Management users are protected User Identification & helped while Security system accessing knowledge upgrades sources. Helps users with Desktop Packages knowledge creation & Specialized tools workflow Management, Provides access to specialized tools & services as required

Knowledge repositories Document management Libraries Portals Browsers Human-Computer Interface System Integration User Systems

Knowledge Application Management

Workflow Management Project Management Document Management Communication Process

Technology Supported By Knowledge Management Systems :

The following diagram reflects the main technologies that currently support knowledge management systems. These technologies roughly correlate to four main stages of the KM life cycle: 1. Knowledge is acquired or captured using intranets, extranets, groupware, web conferencing, and document management systems.

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2. An organizational memory is formed by refining, organizing, and storing knowledge using structured repositories such as data warehouses. 3. Knowledge is distributed through education, training programs, automated knowledge based systems, expert networks.

4. Knowledge is Applied or leveraged for further learning and innovation via mining of the organizational memory and the application of expert systems such as decision support systems.

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All of these stages are enhanced by effective workflow and project management.

The Implications of Knowledge Management : The Implications of

Knowledge Management For... Database Users: From business class users to the general public, database users will enjoy a new level of interaction with the KM system including just-in-time knowledge that delivers precise relevant information on demand and in context. More complex, smart systems will translate to optimal usability and less time spent searching for relevant information. For example, data analysts will enjoy simplified access and more powerful tools for data exploitation. The use of knowledge bases can reduce customer service costs by providing customers with easy access to 24/7 self service via smart systems that reduce the need to contact customer service or technical support staff. Database users may even create customized views of knowledge bases that support their needs. Database Developers: The design and development of knowledge based systems will be considerably more complex than current database development methods. Developers must consider the overall technical architecture of the corporation to ensure seamless interoperability. The use of standardized metadata and methods will also facilitate both intracorporate and inter-corporate interoperability. Making effective physical Both storage and platform choices will be equally more complex. of the knowledge base in the overall KM system.

knowledge base developers and administrators must understand the role

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 Database Administrators: Knowledge Managers.

Database Administrators will evolve into

The knowledge base will store and maintain

corporate memory and Knowledge Managers will become the gatekeepers of corporate knowledge. The lines between technical roles such as Web Developer, Data Analyst or Systems Administrator will blur as these systems merge into and overlap with KM systems. have some knowledge about each of these disciplines. General Public: Even if they are not interacting directly with a knowledge base, the general public will benefit from the secondary effects of improved customer service due to faster access to more accurate information by service providers. DBAs will need to

Bibliography :
Management Information System By James A OBrien, Ramesh Bhel, & George M Marakas https://www.google.co.in/ http://en.wikipedia.org/wiki/KMS Knowledge Management By Shelda Debowski http://www.cioinsight.com

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