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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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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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Intellectual Capital Issues
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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Intellectual Capital Issues
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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Intellectual Capital Issues
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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The Vast Arena of Computer Ethics
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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The Vast Arena of Computer Ethics
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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The Vast Arena of Computer Ethics
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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The Vast Arena of Computer Ethics
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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The Vast Arena of Computer Ethics
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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The Vast Arena of Computer Ethics
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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The Vast Arena of Computer Ethics
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