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Management Information Systems: Learning Objectives

Managing the Digital Firm 11.1 What is the role of knowledge management systems in business?
Seventeenth Edition
11,2 What are artificial intelligence (AI) and machine learning? How do
businesses use AI?
Chapter 11
11.3 What types of systems are used for enterprise-wide knowledge
Managing Knowledge and
management, and how do they provide value for businesses?
Artificial Intelligence
11.4 What are the major types of knowledge work systems, and how do
they provide value for firms?

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What is the Role of Knowledge Important Dimensions of Knowledge

Management Systems in Business? • Knowledge is an intangible firm asset

• Knowledge management systems are among the fastest growing areas of • Knowledge has different forms:
software investment. - Tacit when it’s not documented
- Explicit when it’s documented
• In the information economy, the production and distribution of information and
knowledge are major sources of wealth and prosperity • Knowledge has a location: in the minds of humans or stored in
documents, or in specific business processes
• Substantial part of a firm’s stock market value is related to intangible assets:
knowledge, brands, reputations, and unique business process. • Knowledge is situational: knowing when to apply? how to use a certain
tool? and under what circumstances?
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The Value of Knowledge to Organizations Introduction to

Knowledge Management
• Knowledge-based core competencies are key organizational assets.
Exp:Apple
Data Relevant and
Knowledge
• Knowing how to do things effectively and efficiently in ways others cannot Processed Information Actionable

DEPLOYMENT CHART

duplicate is a prime source of profit and competitive advantage Database PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

DEPT 1

DEPT 2

Wisdom
DEPT 3

DEPT 4

4 5
3

– Example: Having a unique build-to-order production system 1 2

Relevant and actionable processed-data

• Organizational learning
– Process in which organizations gain experience through collection of
data, measurement, trial and error, and feedback

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Introduction to Introduction to
Knowledge Management Knowledge Management
Example:
A map that gives detailed driving directions from one Awareness of an alternative, back-road route could be
location to another could be considered data. considered knowledge.
An up-to-the-minute traffic bulletin along the freeway that
indicates a traffic slowdown due to construction several
kilometers ahead could be considered information.

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The Knowledge Management Value Chain (1 of 3) The Knowledge Management Value Chain (2 of 3)
• Knowledge acquisition
• Knowledge management : is the set of business processes developed in an
– Documenting tacit and explicit knowledge : build corporate repositories of
organization to create, store, transfer, and apply knowledge documents, reports, presentations, and best practices.
– Creating knowledge: discovering patterns
• Knowledge management value chain
– Tracking data from TPS and external sources like news feeds, industry
– Each stage adds value to raw data and information as they are transformed reports, scientific research, government statistics …

into usable knowledge • Knowledge storage

 Knowledge acquisition – Creation of databases
 Knowledge storage – Document management systems that digitize, index, and tag documents
are large databases adept at storing collections of documents
 Knowledge dissemination
– The role of management is to support the development of planned
 Knowledge application
knowledge storage systems and keep them updated
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The Knowledge Management Value Chain (3 of 3) Figure 11.1 The Knowledge Management Value Chain
• Knowledge dissemination
– Portals, wikis, E-mail, instant messaging, search engines, collaboration
tools are used for sharing knowledge
– This results of a deluge of information : a large amount of information
– Training programs, informal networks, and shared management
experience help managers focus attention on important information.

• Knowledge application

• To provide a return on investment, new knowledge must be built into a firm’s

business processes and key application systems and used in
– New business practices
– New products and services
– New markets
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Types of Knowledge Management Systems Figure 11.2 Major Types of Knowledge

Management Systems
• Enterprise-wide knowledge management systems: General-purpose firm-wide
efforts to collect, store, distribute, and apply digital content and knowledge

• Knowledge work systems: Specialized systems built for engineers, scientists,

other knowledge workers charged with discovering and creating new knowledge

• Intelligent techniques: Diverse group of techniques, such as data mining, expert

systems, machine learning, used for various goals: discovering knowledge,
distilling knowledge, discovering optimal solutions

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What Is Artificial Intelligence? Major Types of AI

• AI consists of computer-based systems (both hardware and software) that
1. Expert systems
attempt to emulate human behavior (learning languages, accomplishing
physical tasks, emulating human expertise and decision making…). AI
2. Machine learning
can perform many complex tasks that would be difficult or impossible for 3. Neural networks and deep learning networks
humans to perform. 4. Genetic algorithms
• Artificial intelligence is not the same as human intelligence. Google’s 5. Natural language processing
search engine does something humans cannot do: search several billion 6. Computer vision
websites in response to a query in just milliseconds. Humans, however,
7. Robotics
know what to search for.
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The AI Field…
Intelligent tutoring

• AI provides the
Intelligent Agents
Autonomous Robots
Natural Language Processing
Speech Understanding
scientific Automatic Programming
Voice Recognition

foundation for Computer Vision

Machine Learning Neural Networks

Genetic Algorithms
many commercial

Applications
Game Playing
Fuzzy Logic
Expert Systems
The AI
technologies Tree

Philosophy Mathematics
Computer Science
Human Behavior
Engineering

Disciplines
Neurology Logic Robotics Management Science

Sociology Information Systems

Statistics
Psychology

Human Cognition Pattern Recognition

Linguistics Biology

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Intelligent tutoring
1. Expert Systems
Intelligent Agents
Autonomous Robots
Natural Language Processing
• Use knowledge to provide advice, make recommendations or suggest
Speech Understanding
Voice Recognition
Automatic Programming courses of action in very specific and limited domain of expertise.
Machine Learning Neural Networks
Computer Vision
Genetic Algorithms
• Typically perform limited tasks such as determining whether to grant credit
Applications

Game Playing
Fuzzy Logic
Expert Systems
The AI
Tree
for loan. It captures knowledge as set of rules.

• Used for discrete, highly structured decision making where there are
Philosophy Mathematics
Computer Science
Human Behavior
Engineering
relatively few alternative outcomes and these possible outcomes are all
Disciplines

Neurology Logic Management Science

Robotics
known in advance
Sociology Information Systems
Statistics
Psychology

Human Cognition Pattern Recognition • Not designed to handle complex unstructured decisions.
Linguistics Biology
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Figure 11.3 Rules in an Expert System 2. Machine Learning

• A type of AI that allows computer systems to learn from data without being
explicitly programmed.

• ML algorithms use statistical models to identify patterns and relationships in

data, and use these patterns to make predictions or decisions.

• ML algorithms are used for example in spam filtering. It analyzes the text of
each email and uses patterns in the text to identify whether the email is
likely to be spam or not.

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3. Neural Networks 3. Neural Networks

• They are composed of layers of interconnected nodes (neurons) that • Face recognition is a classic example of how neural networks can be
process input data and make predictions or decisions based on that data. trained to recognize patterns in data. In this case, the neural network is

• They are used to solve complex poorly understood problems for which trained by feeding it large amounts of data containing images of faces and

large amounts of data have been collected. labels indicating which face belongs to which individual. The network then
learns to identify patterns and features within the images that correspond to
• The process of training a neural network is similar to the way humans learn
different individuals, and can make accurate predictions about the identity
by example. We observe many examples of a particular object, and
of a face it has not seen before.
gradually learn to recognize it based on the patterns and features that we
observe.
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Figure 11.4 How a Neural Network Works 4. Genetic Algorithms

• A type of optimization algorithm inspired by the process of natural
selection. They are used to solve complex problems by searching through
a large space of potential solutions and gradually refining those solutions
over time.

• Used in optimization problems (minimization of costs, efficient scheduling,

optimal engine design) in which hundreds or thousands of variables exist

• Able to evaluate many solution alternatives quickly

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Figure 11.6 The Components of a Genetic 5. Natural Language Processing

Algorithm
• Software that can process voice or text command using natural human
language

• Typically based on machine learning, including deep learning

• Examples: Google search; language translation, spam filtering systems;

text mining sentiment analysis; customer call center interactions

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6. Computer Vision Systems 7. Robotics

• Emulate human visual system to view and extract information from real- • Combines AI, mechanical engineering, and electronics to create robots

world images that can perform tasks autonomously.

• Examples: • Generally programmed to perform specific and detailed actions in limited

domains, e.g. robots spray paint autos, and assemble certain parts,
– Facebook’s DeepFace can identify friends in photos across their
welding, heavy assembly movement
system and the entire web

– Autonomous vehicles can recognize signs, road markers, people, • Designed for many uses including industry, medicine, army …
animals, and other vehicles with good reliability

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Intelligent Agents Figure 11.7 Intelligent Agents in P&G’s Supply

Chain Network
• Work without direct human intervention to carry out repetitive, predictable tasks like
deleting junk e-mail or finding cheapest airfare

• Use limited built-in or learned knowledge base

• Examples: - Virtual assistant that uses voice recognition, some are capable of self-
adjustment: Siri,

- Chatbots and Language processing tools like ChatGPT

• Agent-based modeling applications:

– Model behavior of consumers, stock markets, and supply chains; used to
predict spread of epidemics

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What Types of Systems Are Used for Enterprise- Enterprise Content Management Systems
Wide Knowledge Management?
• Three major types of knowledge in an enterprise • Help capture, store, retrieve, distribute, preserve corporate documents and
semistructured knowledge (such as emails) to improve business processes
– Structured documents and decisions.
 Reports, presentations • Enable users to access external sources of knowledge like News feeds,
research
 Formal rules
• Allow to communicate via emails/ instant messaging/ discussion groups and
– Semistructured documents
videoconferencing. They are starting to incorporate social networking tools
 E-mails, videos such as Blogs, wikis, and so on
– Unstructured, tacit knowledge • Digital asset management systems to classify, store, and distribute digital
data such as photographs, graphic images, video, and audio content.
• 80% of an organization’s business content is semistructured or unstructured
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Figure 11.8 An Enterprise Content Management Learning Management Systems (LMS)

System
• Provide tools for management, delivery, tracking, and assessment of
employee learning and training

• Support multiple modes of learning like web-based classes, online forums..

• Automates selection and administration of courses
• Assembles and delivers learning content
• Measures learning effectiveness

• Massively open online courses: Web course open to large numbers of

participants
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Knowledge Workers and Knowledge Work Systems Examples of Knowledge Work Systems
• Knowledge workers • CAD (computer-aided-design): software that enable engineers, designers, and
– Researchers, designers, architects, scientists, engineers who create architects to capture and store their design ideas and knowledge in a digital format,

knowledge for the organization making it easier to share and reuse that knowledge in future designs.

– Perform key roles critical to organization and managers who work • Virtual Reality Systems: can be used to:

within organization  Simulate scenarios and test hypotheses in a safe and controlled environment.

• Knowledge work systems  Create immersive and engaging experiences that help users to better understand
and remember information
– Systems for knowledge workers to help create new knowledge and
 Share knowledge and expertise with others, such as training new employees or
integrate that knowledge into business conducting remote collaboration.

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