McNurlin 13

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
Chapter 13
This chapter isolates two of the most illusive, yet important, topics that relate to supporting knowledge 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 researchers knowledge and How to embed this outside knowledge in a real-time system
Under this topic are the intellectual capital issues of valuing intellectual property, usage, and sharing knowledge
2006 Barbara C. McNurlin. Published by Pearson Education. 13-2
Chapter 13 cont.
Computer ethics deals with such areas as:
Information privacy Intellectual property rights and Other legal and ethical issues relating to information and knowledge
Old laws and regulations were written before the computer age, yet they are being applied to todays software, challenging the applicability the entire realm of intellectual capital challenges Case examples involving knowledge work include Buckman Laboratories, BP, a Pharmaceutical Company, Skandia Future Centers, a U.S. Energy Company, a North American bank, Partners HealthCare System, and Clickwrap Agreements
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
2006 Barbara C. McNurlin. Published by Pearson Education.
13-4
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
13-5
Introduction
Companies Want To Manage Knowledge

Knowledge cannot be controlled or engineered, so the mechanical metaphor is wrong: it can only be leveraged through processes and culture Knowledge exists in two states, tacit and explicit, and effective knowledge management requires transferring knowledge between these two states
Tacit knowledge exists within a persons mind and is private and unique to each person Explicit knowledge has been articulated, codified, and made public
Western management practices have concentrated on managing explicit knowledge; but cultivating and leveraging tacit knowledge is just as important

The model is circular with four stages, which represent 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 easy retrieval 3. Third, they distribute it (push) or access it (pull) 4. Fourth, they absorb anothers knowledge for their own use or 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
13-7
13-8

Building Human Capital
Human capital is the knowledge, skills, and innovativeness of employees as well as company values, culture, and philosophy Creating it focuses on getting people together to 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
13-9
BUCKMAN LABORATORIES
Case Example: Knowledge Creation and Capture This industrial chemical company, with employees around the world, brings the knowledge of all its employees to bear on a customer problem anywhere in the world via a knowledge transfer system When employees need information or help, they ask via forums, which are Buckman-only online forums over the Internet The online conversations are the basis for transferring knowledge around the company, important threads being captured and stored in the forum library The prime benefit is timely, high-quality responses to customer needs

Building Human Capital cont.
2. Knowledge Absorption and Reuse
This phase of building human capital addresses the notion of getting knowledge into peoples heads where it can be enhanced and reused One of the problems is that management often does not realize which employees are vital to information sharing because they house the organizational memory One way to foster sharing is via T-managers
These are executives who have both a vertical role (such as running a business unit) and a horizontal role (such as sharing knowledge with their peers in other business units)
13-11

Building 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 the right direction. Create environment that supports knowledge sharing and emergence of knowledge brokers Successfully transferring knowledge depends 90% of having the right culture, and 10% on technology
13-12
BP
Case Example: T-Manager Concept
BP is exemplary in its use of the T-manager concept From studying BP, two researchers learned that mechanisms must be put in place to both foster and guide managers knowledge-sharing activities; otherwise, they start to take up too much time and produce little results Peer groups in one division increased sharing among business unit leaders in similar businesses, but it was not until these groups were made responsible for allocating capital amongst themselves, and for setting their performance levels, that their sharing started to truly impact business performance
One business unit head who is a T-manager has a knowledgesharing role in which he connects people, acting in some ways like a human portal by suggesting who might help solve a problem
13-13

Building Structural Capital
Structural capital is the capabilities embedded in hardware, software, databases, organizational structure, patents, and trademarks that support employees as well as relationships with customers It moves knowledge from peoples heads to a tangible company asset
Note: The Rudy problem also applies here
1.

Knowledge Organization and Categorization

This phase is often handled by creating best practices knowledge bases A few have even tried to measure intellectual capital
Following 2 cases
1. 2. Improving a knowledge-support process Valuing intellectual capital
13-14
A PHARMACEUTICAL COMPANY
Case Example: Improving a Knowledge Support Process A project at a major pharmaceutical company aimed at improving the process of developing new drugs and getting 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 the FDA asks when deciding whether to approve a drug The team also commissioned their 10-year drug study beforehand, so they were clear about the data they needed 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
SKANDIA FUTURE CENTERS

Case Example: Valuing Intellectual Capital
One project in this insurance company addressed the question of putting a value on intangibles, such as knowledge It aimed to find a common mechanism for establishing value and trading that value The knowledge exchange began as a network for exchanging knowledge It has evolved into a Web-based trading arena where people can buy and sell knowledge assets

Building Structural Capital cont. 1. Knowledge Distribution and Access
This phase emphasizes both pushing knowledge out to users (distribution) and accommodating 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
A U.S. ENERGY COMPANY

Case Example: Knowledge Distribution and Access To instill a sharing culture in this highly autonomous energy company where the business units each focused on their own performance, management focused on promulgating 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, but they were disparate. So a booklet was created based on TQM principles; it became the guide for sharing best practices Certain people were designated technical knowledge experts because they knew about best practices across the company, so their job was to disseminate tacit knowledge 13-18

Building 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)
13-19
A NORTH AMERICAN BANK

Case Example: Building Customer Capital The vice president wanted to find a way to value
intangibles so the bank would have a sounder means for evaluating potential loan customers than simply 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 three aspects:
1. Depth of knowledge about the bank in a customer organization 2. Breadth of knowledge by a customer, and 3. Loyalty to the bank
13-20
A NORTH AMERICAN BANK

Case Example: Building Customer Capital cont.
To strengthen these aspects, the vice president 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 focus more on customers

13-21
13-22

The Cultural Side of Knowledge Management
Success in knowledge management comes as much from changing organizational behavior as it does from implementing new technology Knowledge management work must tap peoples motivations to share and cooperate
Red Flags Cultural barriers: Being seen as a whistle blower or messenger of bad news Losing ones place as a knowledge gatekeeper Time implications
Knowledge sharing really does take time
13-23 2006 Barbara C. McNurlin. Published by Pearson Education.

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 of knowledge categories will be too expensive to undertake

Design the System to Match What the Users Value A knowledge management system needs to be designed to fit the people who will use it and gain value 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 cont.
Its a conversation rather than a library, which is just what these professionals need So beware of creating a system that supports the wrong culture
PARTNERS HEALTHCARE SYSTEM

Case Example: Design the System to Match What the Users Value
This hospital and physician group system is delivering just-in-time knowledge to physicians by way of their online order entry system, notifying them of drug interactions when they enter a prescription order The system can also tell the doctor about a newer, more effective drug or warn the doctor that the prescribed medication could worsen a patient disease, making the system a recommender system It also has an event-detection mechanism, which alerts a 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 to date Bottom line = improves individuals and organizations performance 13-26

Data, information, content, and intellectual capital all raise thorny issues that have prompted 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 ecommerce, even though such resolution could be a long way off
13-27

Value Issues
Informations value depends on the recipient and the context; most people cannot put a value on a piece of information until they have seen it The only practical way to establish the value of information is to establish a price for it and see if anyone buys A number of tools are being used within companies to increase 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

Usage Issues Information management is a management issue because it deals with how people use information Information use is difficult to manage because:
The informations complexity must be preserved People do not share easily, and Technology does not change culture
Just building an information system doesnt mean that people will use it!!!

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

A Little History New technologies pose ethical issues when they open up new possibilities for human action
In the mainframe era, the perceived threat was invasion of privacy In the PC era, attention turned to the ethical issues of property rights In the Internet era, all the concerns of the past have resurfaced and become global

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 traditional moral norms and apply them to the new situations
Extending property laws to software, for example

What is Computer Ethics? cont.
The question becomes Should we fill the vacuums with laws or something else? The ethical questions surround what people do to one another, so they involve such concepts as:
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 13-33

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 countries have enacted laws to control certain types of personal information, 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

Information Privacy cont.
But the argument for personal information privacy has not won the day, since a much stronger argument for the right to privacy can be made if privacy is seen as a social good, rather than as an individual good
Five ways to increase information privacy protection include things that can be done:
1. 2. 3. 4. 5. At the national level By computer professionals By technology In Institutions, and By individuals
13-35

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 are often as good as the original There are four types of legal protection for intellectual property:
Copyrights Patents Trademarks, and Trade secrets
13-36

Legal Jurisdiction
Laws are written for particular jurisdictions with clear geographic boundaries, so how do those laws apply in cyberspace, which has no geographic boundaries? Faced with the inability to control the flow of electrons across physical boundaries, some authorities strive to impose their boundaries on cyberspace
Legal and commercial
Internationally, the United Nations Commission on International Trade Law has developed a model law that supports the commercial use of international contracts in electronic commerce
13-37

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 on them In e-business, evidence of acceptance of a contract can be a simple click on a button saying I Accept or I Agree.
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 takeit-or-leave-it offer
Generally speaking, adhesion contracts are legally enforceable
13-39
Conclusion
To properly support knowledge work, companies need to understand the life cycle of knowledge because each phase is best supported by specific approaches
Two by high-touch people approaches, and Two by high-tech approaches
Likewise, it behooves management to understand the vast arena of computer ethics IT adds new twists and, often, greater ramifications to long-standing ethical issues Ethical use of IT is creeping into corporate policies, sometimes due to regulation
Conclusion cont.
Companies in some countries are now required to state their privacy policies with respect to the personally identifiable information they handle Many companies have also decided whether or not email is company or private property, and made their stance 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 and other forms of intellectual property are properly used for good, not harm

McNurlin 13

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Supporting Knowledge Work

Managing knowledge means

A Model for Managing Knowledge

2006 Barbara C. McNurlin. Published by Pearson Education.

Todays Lecture cont.

The Vast Arena of Computer Ethics

2006 Barbara C. McNurlin. Published by Pearson Education.

Companies Want To Manage Knowledge

A Model for Managing Knowledge

2006 Barbara C. McNurlin. Published by Pearson Education.

2006 Barbara C. McNurlin. Published by Pearson Education.

A Model for Managing Knowledge

1. Knowledge Creation and Capture

2006 Barbara C. McNurlin. Published by Pearson Education.

A Model for Managing Knowledge

2006 Barbara C. McNurlin. Published by Pearson Education.

A Model for Managing Knowledge

2006 Barbara C. McNurlin. Published by Pearson Education.

2006 Barbara C. McNurlin. Published by Pearson Education.

A Model for Managing Knowledge

Knowledge Organization and Categorization

2006 Barbara C. McNurlin. Published by Pearson Education.

The result: faster reports and faster approvals

SKANDIA FUTURE CENTERS

A Model for Managing Knowledge

A U.S. ENERGY COMPANY

A Model for Managing Knowledge

2006 Barbara C. McNurlin. Published by Pearson Education.

A NORTH AMERICAN BANK

2006 Barbara C. McNurlin. Published by Pearson Education.

A NORTH AMERICAN BANK

This helped senior bank officers focus more on customers

2006 Barbara C. McNurlin. Published by Pearson Education.

2006 Barbara C. McNurlin. Published by Pearson Education.

A Model for Managing Knowledge

A Model for Managing Knowledge

A Model for Managing Knowledge

PARTNERS HEALTHCARE SYSTEM

Intellectual Capital Issues

2006 Barbara C. McNurlin. Published by Pearson Education.

Intellectual Capital Issues

Business documents, and Groupware

Intellectual Capital Issues

Intellectual Capital Issues

The Vast Arena of Computer Ethics

The Vast Arena of Computer Ethics

Areas of ethical concern include:

The Vast Arena of Computer Ethics

2006 Barbara C. McNurlin. Published by Pearson Education.

The Vast Arena of Computer Ethics

The Vast Arena of Computer Ethics

2006 Barbara C. McNurlin. Published by Pearson Education.

The Vast Arena of Computer Ethics

2006 Barbara C. McNurlin. Published by Pearson Education.

The Vast Arena of Computer Ethics

2006 Barbara C. McNurlin. Published by Pearson Education.

The Vast Arena of Computer Ethics

Generally speaking, adhesion contracts are legally enforceable

2006 Barbara C. McNurlin. Published by Pearson Education.

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