Subject:- Knowledge Management

Code:-BCA-604

Unit-1 Notes

Faculty Name:- Prof. Karan Siwach

Introduction:- Knowledge management is the systematic management of an
organization's knowledge assets for creating value and meeting tactical & strategic
requirements. It consists of the initiatives, processes, strategies, and systems that sustain and
enhance the storage, assessment, sharing, refinement, and creation of knowledge.

Each enterprise should define knowledge management in terms of its own business
objectives. Knowledge management is all about applying knowledge in new, previously
overburdened or novel situations.

Figure: Systematic Management of People, Process and Technology

Knowledge Management Theory

Knowledge management is currently seen as a continuous cycle of three processes, namely:

● Knowledge creation and improvement
● Knowledge distribution and circulation
● Knowledge addition and application
In simple words, knowledge management incorporates both holding and storing of the
knowledge perspective, with respect to the intellectual assets.

There are three distinct perspectives on Knowledge Management which leads to a different
estimation and a different definition.
 The Components of Knowledge Management

Knowledge management is a business activity with two primary aspects:

Executing the knowledge component of business activities as an explicit concern of business

in strategy, policy, and practice at all levels of the organization.

Maintaining a direct link between an organization’s intellectual assets both explicit (recorded)
and tacit (personal know-how) and positive business results.

Why Knowledge Management

Application of Knowledge Management (KM) lie in the below four key areas

Globalization of Business: Organizations today are more universal i.e., they are operating in
multiple sites, multilingual, and multicultural in nature.

Leaner Organizations: Organizations are adopting a lean strategy where they understand
customer value and focus on key processes to continuously increase it. The ultimate goal is to
provide perfect value to the customer through a perfect value creation process that has zero
waste.

Corporate Amnesia: We are freer as a workforce, which creates issues regarding knowledge
continuity for the organization and places with continuous learning demands from knowledge
workers. We no longer expect to spend our entire work life with the same organization.

Technological Advances: The world is more connected with the advent of websites,
smartphones and other latest gadgets. Advancements in technology have not only helped in
better connectivity but also changed expectations. Companies are expected to have online
presence round the clock providing required information as per the customer needs.
Decision Support Systems:-

Decision Support Systems have evolved over the past three decades from simple
model-oriented systems to advanced multi-function entities

DSS can be classified in many different categories. Amongst the common ones are the
following:
1. Data-driven DSS
These DSS has file drawer systems, data analysis systems, analysis information systems, data
warehousing and emphasizes access to and manipulation of large databases of structured data

2. Model-driven
The underlying model that drives the DSS can come from various disciplines or areas of
specialty and might include accounting models, financial models, representation models,
optimization models, etc. With model drive, DSS the emphasis is on access to and
manipulation of a model, rather than data, i.e. it uses data and parameters to aid
decision-makers in analyzing a situation. These systems usually are not data-intensive and
consequently are not linked to very large databases.

3. Knowledge-driven
These systems provide recommendation and/or suggestion schemes which aid the user in
selecting an appropriate alternative to a problem at hand. Knowledge-driven DSS is often
referred to as management expert systems or intelligent decision support systems. They focus
on knowledge and recommend actions to managers based on an analysis of a certain
knowledge base. Moreover, it has special problem-solving expertise and is closely related to
data mining i.e. sifting through large amounts of data to produce content relationships.

4. Document has driven

These systems help managers retrieve and manage unstructured documents and web pages by
integrating a variety of storage and processing technologies to provide complete document
retrieval and analysis. It also accesses documents such as company policies and procedures,
product specification, catalogs, corporate historical documents, minutes of meetings,
important correspondence, corporate records, etc. and are usually driven by a task-specific
search engine.2

5. Communication driven
This breed of DSS is often called group decision support systems (GDSS). They are a special
type of hybrid DSS that emphasizes the use of communications and decision models intended
to facilitate the solution of problems by decision-makers working together as a group. GDSS
supports electronic communication, scheduling, document sharing, and other group
productivity and decision enhancing activities and involves technologies such as two-way
interactive video, bulletin boards, e-mail, etc.

6. Inter- and Intra-organization DSS

These systems are driven by the rapid growth of the Internet and other networking
technologies such as broadband WANs, LANs, WIP, etc. Inter-organization DSS is used to
serve companies stakeholders (customers, suppliers, etc.), whereas intra-organization DSS is
more directed towards individuals inside the company and specific user groups. The latter,
because of their stricter control, are often stand-alone units inside the firm.
Architecture of Decision Support Systems (General Architecture):-

The architecture of a Decision Support System (DSS) can vary depending on the specific
requirements and context of the organization using it. However, here's a general overview of
the typical components and architecture of a DSS:
1. Data Sources: The foundation of a DSS is data. Data can come from various sources
within and outside the organization, including databases, data warehouses, external
data providers, spreadsheets, and real-time data streams.
2. Data Warehouse/Data Mart: In many cases, organizations maintain a centralized
data repository such as a data warehouse or data mart. These repositories integrate
data from multiple sources and are optimized for querying and analysis.
3. Data Extraction, Transformation, and Loading (ETL) Process: The ETL process
involves extracting data from various sources, transforming it into a consistent format,
and loading it into the data warehouse or data mart. This process ensures that the data
is cleansed, standardized, and ready for analysis.
4. Decision Support Database (DSD): The DSD is a subset of the data warehouse that
is specifically designed for decision support purposes. It typically contains aggregated
and summarized data, as well as precomputed metrics and indicators relevant to
decision-making.
5. Model Base Management System (MBMS): The MBMS component of a DSS
includes various analytical models, algorithms, and decision-making techniques.
These models can range from simple statistical analyses to complex machine learning
algorithms. The MBMS allows users to access and apply these models to their
decision-making process.
6. User Interface: The user interface of a DSS is where users interact with the system to
access information, run analyses, and make decisions. The interface can vary from
simple dashboards and reports to more sophisticated visualization tools and
interactive applications.
7. Query and Reporting Tools: DSS typically includes query and reporting tools that
allow users to retrieve and analyze data from the database. These tools provide
functionalities such as ad-hoc querying, drill-down analysis, and report generation.
8. Analysis Tools: In addition to query and reporting tools, DSS often incorporates
specialized analysis tools for performing advanced analytics, such as statistical
analysis, forecasting, optimization, and simulation.
9. Knowledge Base: The knowledge base of a DSS includes domain-specific
knowledge, business rules, decision criteria, and guidelines for decision-making. This
knowledge base can be codified within the system to provide decision support to
users.
10. Collaboration and Communication Tools: Some DSS architectures include
collaboration and communication tools that facilitate collaboration among
decision-makers, such as discussion forums, messaging systems, and workflow
management tools.
11. Security and Access Control: Security is a critical aspect of DSS architecture to
ensure the confidentiality, integrity, and availability of data and system resources.
Access control mechanisms are implemented to restrict access to sensitive
information and functionalities based on users' roles and permissions.
12. Integration with Other Systems: DSS may need to integrate with other systems
within the organization's IT infrastructure, such as Enterprise Resource Planning
(ERP) systems, Customer Relationship Management (CRM) systems, or Supply
Chain Management (SCM) systems, to access relevant data and leverage existing
business processes.
Group Decision Support System:-

A Group Decision Support System (GDSS) is an interactive, computer-based system that

helps a team of decision-makers solve problems and make choices. GDSS are targeted to
supporting groups in analyzing problem situations and in performing group decision-making
tasks.

Characteristics of a GDSS:-
A GDSS has a number of unique characteristics to support a group of participants in their
decision-making process:
● Special design to support creative thinking, effective communications, and
decision-making techniques
● Easy to use so participants from different backgrounds can all participate effectively
● Flexible so it can incorporate the different perspectives and decision-making styles of
the different participants
● Automated record-keeping for future review and analysis
● Parallel communication to allow multiple participants to contribute simultaneously

Groupware Technologies (Systems):-

★ Groupware is a term that refers to technology designed to help people collaborate and
includes a wide range of applications.
★ Groupware technologies, also known as collaborative software or group support
systems, are tools and platforms designed to facilitate collaboration and
communication among members of a group or team, regardless of their physical
location. These technologies enable individuals to work together on common tasks,
share information, coordinate activities, and make decisions collectively.
★ Groupware technologies play a vital role in enabling collaboration, communication,
and teamwork in today's distributed and interconnected work environments. By
leveraging these tools effectively, organizations can improve productivity, foster
innovation, and achieve better outcomes on collaborative projects and initiatives.
Examples:-
 ● Email
● Instant Messaging (IM)
● Collaboration Suites (e.g., Microsoft 365, Google Workspace)
● Document Management Systems (DMS)
● Project Management Software
● Virtual Whiteboards and Collaboration Tools
● Video Conferencing and Webinar Platforms
● Social Intranet Platforms
● Workflow Automation Tools
● Enterprise Social Networking Platforms

Business Intelligence:-
Knowledge management is the process of capturing, distributing, and effectively
using knowledge.” KM refers to a set of techniques used to capture, share, and use the
information available in order to achieve business objectives and to aid
in business decision making based on business analytics.
● B.I comprises a wide variety of applications for analyzing, gathering, storing and
making data easily accessible to help users to make better business processes.
● A good Business Intelligence (BI) definition must encompass both business purpose
and technical functionality. Business Intelligence (BI) tools that are widely used are
Data Warehouse, Data Mining, Extraction Transformation Load (ETL) and On-Line
Analytical Processing (OLAP).
 Knowledge Hierarchy:-

Organizational knowledge hierarchy refers to the structure within an organization that

dictates how knowledge is acquired, stored, shared, and utilized. This hierarchy
typically involves different levels or layers through which information flows, each
with its own characteristics and importance. Here's a discussion of the key
components of organizational knowledge hierarchy:
● Explicit Knowledge: This is knowledge that is easily codified and documented. It can
be written down, stored in databases, or captured in formal procedures. Examples
include manuals, reports, patents, and databases. Explicit knowledge is typically
found at lower levels of the hierarchy as it forms the foundation upon which other
types of knowledge are built.
● Tacit Knowledge: Tacit knowledge is harder to formalize and communicate. It
resides in people's minds and is based on their experiences, insights, and intuition.
This type of knowledge is often crucial for decision-making and problem-solving but
can be difficult to transfer. Tacit knowledge tends to be more prevalent at higher levels
of the hierarchy where individuals possess greater expertise and experience.
● Individual Knowledge: At the base of the hierarchy are individuals within the
organization who possess unique skills, expertise, and experience. This individual
knowledge forms the raw material from which organizational knowledge is derived. It
includes both explicit and tacit knowledge possessed by employees.
● Group Knowledge: As individual knowledge is shared and combined through
collaboration, it transforms into group knowledge. This includes knowledge shared
among teams, departments, or other organizational units. Group knowledge often
emerges through discussions, brainstorming sessions, and collaborative projects.
● Organizational Knowledge: Organizational knowledge encompasses the collective
knowledge of the entire organization. It includes formalized procedures, best
practices, organizational culture, and the collective experience of employees.
Organizational knowledge represents the sum total of all individual and group
knowledge within the organization.
● Meta-Knowledge or Strategic Knowledge: This level involves the understanding of
how knowledge is created, managed, and utilized within the organization. It includes
knowledge about knowledge itself, such as knowledge management strategies,
learning processes, and innovation frameworks. Strategic knowledge is essential for
driving organizational learning, adaptation, and innovation.