International Management Journals
International Management Journals
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International Journal of Applied Knowledge Management
Volume 1 Issue 3
Emerging Knowledge Management Systems for Global Managers
Stafford S. Cuffe, Ph.D.
ISSN 1746-8167
School of Business and Entrepreneurship, Nova Southeastern University
School of Professional Studies, Regis University
International J ournal of Applied Knowledge Management: Volume 1 Issue 3
Abstract
Globalization has significantly changed the business practices employed by global
companies over the last five years. The integration of emerging technologies into
business processes has created a demand for new knowledge management
systems. This paradigm shift has had a profound impact on some leading industries
(e.g., automotive). The evolution of information systems and the reengineering of
business processes have created a demand for managers with data savvy skill
sets. The automotive industry was examined in the light of some significant changes
that are occurring in the global market place. This article examines the drivers fueling
the convergence of time, distance, data, voice, and video into web-centric information
systems. This research will also explain some of the current knowledge management
systems utilized by major organizations to create, capture, refine, store manage, and
distribute knowledge across various units, divisions, and departments in a relatively
seamless manner. Finally, the article will explain emerging (hybrid) knowledge
management systems that are being used to meet the needs of mobile managers
with real time data, information, knowledge, and wisdom and thereby providing better
decisions.
Keywords: Emerging Knowledge management systems (EKMS), emerging
technologies, e-commerce, m-business, wireless, protocols, client/server, IEEE,
automotive industries, data warehouse (DW), supply chain management (SCM),
enterprise resources management (ERP), management information systems (MIS),
executive information systems (EIS), decision support systems, knowledge base
(KB), business analytics (BA), artificial intelligence (AI), Intranet, Internet 2, Extranet,
extensible markup language (XML)
Introduction
Todays global managers are facing unprecedented challeges outside their
organizations fueled by environmental forces of change such as: globalization,
emerging technologies, emerging best business practices, government regulations,
competitive global financial markets, limited knowledge workers, and higher worker
turnover rates. Most scholars and subject experts agree that environmental (external)
forces may have triggered a creative destructive cycle, thereby making most
information systems obsolete and forcing many firms to reinvent their business
processes (McKnight and Vaaler, 2001).
Historically, new business computer software applications have evolved every
decade. For example, transaction processing systems were introduced in 1950s,
management information systems in the 1960s, decision support systems in the
1970s, knowledge management and executive information systems in the 1980s, and
electronic business and commerce systems in the 1990s (OBrien, 2004). It is clear
that management and technological paradigm shifts are occurring in todays global
economy. Also, global economic shifts have created new information systems such
as mobile business and commerce, virtual enterprise, and web-based database. In
addition, new management change tools have been introduced such as: business
process reengineering; process innovation; lean manufacturing; value stream
mapping; six sigma-total quality management; the delta model and the balanced
scorecard (Hax and Wilde II, 1999; Dicken, 2003; Kaplan and Norton, 2004).
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International J ournal of Applied Knowledge Management: Volume 1 Issue 3
This research examines the current knowledge management systems (KMS),
popular change management tools (CMT), the role of information technology (IT) in
the change process, the role of managers in the global economy, process-based
knowledge mapping, and emerging knowledge management systems (EKMS). It also
explores major global business drivers and their relationship with emerging
knowledge management systems utilized by organizations and managers to compete
in the new global economy. In addition, it proposes a hybrid knowledge
management model for global managers to: collect and validate data; create value-
added information; encourage the seamless transfer of knowledge within the
organization; streamline the decision making process, promote organizational
learning and memory, and store the knowledge in a central repository (e.g., web-
based data warehouse) for any-time and any-where access (Turban, et al, 2005).
Current Popular Knowledge Management Systems
Most organizations use standard operating procedures to manage their business
functions and processes. This systematic approach affords managers the opportunity
to control and monitor the business functions and processes within the organization.
There are many schools of thought about the preferred methodology used to collect
data, generate information, and create knowledge within the organization. It is clear
that gathering and storing tacit knowledge (accumulation of skill sets) builds
intellectual capital to produce value-added goods and services (Geisler, 1999). This
research has coined such a knowledge management tool as an organizational book
of knowledge and regarded it as the heart of each organization.
Many knowledge management systems (KMS) were developed using the basic
technological components such as communication, collaboration, reposition, and
query (Turban, et al, 2005). These sets of technologies can be integrated into web-
based information systems (e.g., management support systems) thereby affording
managers the opportunity to conduct business via mobile devices (e.g., wireless
personal digital assistance).
Most current popular knowledge management systems (KMS) are designed for end
users such as: knowledge workers, managers, executives, suppliers, business
partners, and customers. These end users can access the KMS via the Internet,
Intranet, and Extranet connected to an enterprise knowledge portal that is used to
provide single point of access to the organizations data, provide customized reports,
enable collaboration on group projects, categorize searches, and monitor, and record
an end users profile based on the on-line activities (OBrien, 2004).
Most end users can access structured (e.g., supply chain management) data and
unstructured (e.g., e-mail) data and enterprise knowledge from several reliable
sources. Operations managers need timely and accurate data to make decisions
during their daily work activities. In contrast, middle and upper level managers need
cross-functional information to develop business, sales, marketing, staffing,
distribution, and manufacturing strategic plans. Automated content management
tools (e.g., IBM DB2) have been developed to organize and control the knowledge
management cycle (i.e., create, capture, refine, store, supervise, distribute), due to
the high degree of volume and speed of data and the information and knowledge
generated by business and manufacturing processes. Most organizations use
popular knowledge management tools such as: business analytics (BA), knowledge
base (KM), and data warehouse (DW) to provide information to the end users. Also,
Fortune 500 companies use e-business databases such as supply chain
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management (SCM), enterprise resources planning (ERP), and customer relationship
management (CRM). Medium and large organizations use management support
systems such as management information systems (MIS), decision support systems
(DSS), and executive information systems (EIS) to develop their strategic business
plans. Knowledge management portals such as best practices, groupware tools,
databases, and enterprise resources functions are components of the emerging
knowledge management systems (Laudon and Laudon, 2005).
Figure 1 shows the basic holistic knowledge management systems with connectivity
(hooks) to other information system and databases.
Figure 1 Web-based Internetworked Knowledge Management System
(OBrien, 2004; Cuffe, 2005)
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Globalization has created a demand for collaborative knowledge work systems (e.g.,
CAD/CAM, electronic brainstorming, groupware, virtual reality systems, distance
learning) thereby allowing global workers the opportunity to share the various
components of their projects any where and any place. Also, mergers and
acquisitions in competitive industries (e.g., automotive) have melded information
systems (e.g., middleware) into a cohesive network of information sharing
enterprises. Listed below are the knowledge management strategies and tools that
have been implemented by some major global organizations:
DaimlerChrysler AG: Deployed the Engineering Book of Knowledge to
capture and distribute the knowledge generated by the subject matter
experts. Developed a World-Wide Intranet system (Wel-Kom) to transfer
knowledge from one unit to another. Deployed a Post Merger Integration
Program to transfer knowledge and share information across the firms
locations (e.g., US, and Germany). Their engineers used CAD simulation and
modeling tools to reduce the number of car prototypes by 50%.
Ford Motor Company: Deployed an Internet-based strategy that allowed
dealers and suppliers to share information stored in its knowledge base (770
websites, 500,000 documents). Implemented a 40-step process for
monitoring and deploying best practices. Supporting staff members (focal
points) were deployed to document current best practices and make
recommendations for improvements.
General Motor Corporation: Created a GM University to reinvent the
organization via learning strategies. Shared engineering, manufacturing, and
design information (best practices) through an Intranet. Supporting staff
members would coach managers to record their decisions as lessons learned
to enhance the organizational learning and memory process. Subject matter
experts would observe the vehicle development teams and include distributed
their suggestions to others via the knowledge systems.
Toyota: They did not have a formal knowledge management strategy.
However, they created a Toyota University to enable organizational learning
and memory retention. Managers coached workers to submit and evaluate
their process improvement suggestions which were stored in a central
repository (database).
General Electric: Used e-commerce tools to globalize the intellectual
properties within the company. Deployed cross-business and functional
teams (councils) to share best practices in key business units (e.g.,
marketing, sales, technology, manufacturing). Implemented a best practice
matrix to empower cross-functional teams to compare and contrast creative
practices used within GE. Used Six Sigma metrics to monitor and record
productivity gains (machinery Vs innovation).
Hughes Space and Communications: Deployed an internal knowledge
management system to minimize task duplication and process redundancies.
Siemens: Corporate staff members were committed to the knowledge
management strategy and implemented a common methodology to work
together on different projects.
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The World Bank: Provided funding for Knowledge Management projects and
nurtured organizational structures thereby formalizing community activities.
Encouraged the participation of outside experts to work with the banks
subject matter experts on projects. Empowered internal experts to provide the
banks customers with validated information in a timely manner.
(Rukstad and Coughlan, 2001)
New Economy Organizational Structures
Most global organizations are in a state of flux or punctuated equilibrium due to the
increased level of competitiveness occurring in the market place. For example,
mergers, acquisitions, bankruptcies, reengineering, restructuring, and paradigm shifts
have forced many companies to rethink or re-examine their organizational structures
to meet the challenges of the new economy. There are many schools of thought
about the best fit for managers in redesigned organization structures. Notably,
organizations are living entities and must respond quickly to changes occurring in the
new (global) economy. What is the best organizational structure (mechanistic or
organic)? What kind of managers will be required?
Redesigning organizational structures can be very challenging for most management
consultants and organizational development teams. However, finding the correct fit
for employees in the new business units, divisions, and departments will require new
insights into various organic organizational structures (e.g., matrix). For example,
popular fit tests such as parenting advantage, people test, feasibility test,
accountability test, flexibility test, and linkage test can be used to mitigate the risk of
organizational meltdown (Goold & Campbell, 2002). It can be argued that overly
complex organic and loose flat organizational structures will fail due to roles and
responsibilities ambiguity, thereby resulting in negative consequences.
Many organizations are trying to cope with the changes of the new economy by
introducing new senior managers in the redesigned business units and divisions. For
example, major Fortune 100 companies have introduced Chief Knowledge Officer
(CKO) and Chief Technology Officer (CTO) to work with other senior managers (e.g.,
CIO, VPs) on strategic business plans. Most firms have created a CKO position to
direct knowledge management projects, thereby maximizing organizational learning
and knowledge sharing (Turban, et al, 2005). Some scholars and consultants have
argued that the role and responsibilities of the Chief Information Officer, Chief
Technology Officer, and Chief Knowledge Officer may be blurred due to the
competition of resources (manpower and funds) and special working relationships
with the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and Chief
Operations Officer (COO) (DeTienne, et al, 2004). It is clear that the organizational
book of knowledge (OBOK) must be available to senior managers so that they may
collaborate on strategic business plans. Also, authorized employees (e.g., middle
level managers, analysts, knowledge engineers, and subject matter experts),
suppliers, and business partners must have 24/7 access to the OBOK via web-
enabled telecommunications to enhance the knowledge transfer process.
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The Role of Global Managers in the Change Process
Environmental forces of change (e.g., globalization, competition, technology, labor,
regulation, finance) have changed the rules of the management game (Ball, 2004).
Todays managers are facing unprecedented changes and paradigm shifts that have
forced some to question their role (leader, coach or follower) in the new global
economy. It is clear that operational, middle level and upper level managers have
unique roles and responsibilities in the change process. For example, senior
managers develop the vision and/or mission statement for the organization. The
functional (middle level) managers develop business plans based on the vision or
mission statement that are implemented by operations managers. It can be argued
that middle mangers may not be flexible team players in executing the mission
statements. However, some studies have shown that middle managers are best
suited to implement radical change (e.g., business process reengineering)
throughout the organization. In contrast, some senior managers consider middle
managers as resistors of change since they are viewed as fence sitters or
compliant children during the organizational development and/or turnaround
process (Huy, 2001).
What is the best fit for managers during the organizational development process?
How does the organization select mangers for various positions during a turnaround
process? Some scholars argue that job placement is driven from the top down since
the middle and lower managers may be reluctant to volunteer for key positions
created by the change agent. Interestingly, some global firms may reassign their top
executives (i.e., global leaders) to various key positions during a strategic change
program (Green, et al, 2003). For example, DaimlerChrysler AG supervisory board
transferred Dr. Dieter Zetsche from the home office (Stuttgart, Germany) to the
Chrysler Group corporate office (Auburn Hills, Michigan) as the new change agent to
direct the units turnaround plan. Interestingly, Dr. Zetsche (President and CEO) and
his senior executives implemented a successful turnaround plan that produced
significant improvements in sales, quality, and profit in 2004. The turnaround plan
was driven by timely and accurate information generated by Chryslers Information
Technology Department that was supported by many information systems. It can be
argued that Sue Unger, Senior Vice President and Chief Information Officer of
Daimler Chrysler AG implemented several mission critical information systems that
provided Dr. Zetsche and his team with timely, reliable data and information to
execute the change strategy. Sue Ungers Information Technology strategy may
have been part of J urgen Schrempps (DaimlerChrysler AGs CEO) Knowledge
Management Strategy that was presented to senior executives on the Mediterranean
island of Malta during their April 2000 meeting (Rukstad, & Coughlan, 2003).
Successful global firms must maintain their competitive edge by acquiring real time
information across many time zones via sophisticated information systems and
develop strategic business objectives to meet the challenges in the market place.
It is clear that managers must make expedient decisions based on data and
information stored on knowledge management systems. Unfortunately, some
traditional (old economy) managers may be comfortable making decisions based on
tacit knowledge. Regrettably, their legacy skill sets may not be helpful when faced
with emerging issues and/or challenges in the workplace and/or marketplace. In
contrast, global leaders are comfortable making decisions based on data and
information stored in knowledge management, decision support, and management
information systems.
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Some scholars and consultants agree that todays managers must perform similar to
a pilot trying to land his/her plane in a snow or rain storm thereby trusting the
aircrafts instruments and not primarily watching the outside elements. Fortunately,
several management tools (e.g., balanced scorecard, six sigma metrics) are
available to todays managers so that they may make better decisions when faced
with uncertainty or chaotic situations in the workplace and/or market place (Kaplan
and Norton, 2000). For example, The Chrysler Group (US unit) used the Balanced
Scorecard tool to monitor its business functions and operations thereby resulting in
significant profit and productivity gains in 2004. Metalcraft, a tier one (1) automotive
supplier (i.e., shipped finished parts directly to automakers) developed an information
based (i.e., EDI) scorecard (green, yellow, red) to monitor the quality of their
incoming parts from their suppliers (Kulp, Narayanan, and Verkleeren, 2002).
Chrysler Group initiated an online (Intranet and Extranet) Supplier Cost-Reduction
(SCORE) program in the 1990s to support their turnaround plan. GroupWare
technologies such as Lotus Notes and Dominoes were integrated into the SCORE
program that resulted in $2 billion of savings during the year 2000 (Turban, et al,
2005).
The competitive nature of the automotive industry has witnessed a significant change
in the ranking of major automakers. For example, Toyota has replaced
DaimlerChrysler AG last year as the third largest North American car maker.
Interestingly, Toyota had previously replaced Ford Motor Company as the world
largest second automaker. Most scholars and consultants agree that Toyotas
competitive weapon was its famous Toyota Production System. In contrast, other
scholars have argued that Toyotas unpublished Book of Knowledge may be the
heart of its significant upward movement in world automaking ranking. Currently,
General Motor Corporation is facing severe hurdles in the marketplace such as: a
loss of $1.1 billion on expenditure of $3.5 billion during its first quarter 2005, a recall
of 2 million vehicles, a lower (25.6%) US market share as of first quarter 2005, higher
legacy costs per vehicle, a Standards & Poors (S&P) lowered debt rating to junk
status for the first time in its history (Welch and Beucker, 2005). It can be argued that
GMs current hurdles and lack of any published action plan may give Toyota an
opportunity to make further gains in the global marketplace, thereby becoming the
worlds number one automaker and displacing GM (a position held since 1931).
The Role of Emerging Technologies in the Change Process
The rapid increase in the deployment of emerging technologies (e.g. Internet,
Intranet, Extranet, e-commerce, e-business, m-business, m-commerce, Voice over
Internet Protocol [VoIP]), wireless, intelligent software agents, extensible markup
language [XML] tools, radio frequency identification [RFID] tags, and web-based
databases) into business processes of global organizations have forced many
managers and executives to reinvent their decision-making methodologies.
Automotive ID technologies such as RFID will enable the automakers to track their
materials and products via web-based real time knowledge management systems
through the supply, production, inventory, distribution, and revenue chains
(Stackpole, 2005). Global executives are more mobile in the new economy and
depend upon telecommunications to conduct business away from the office. Todays
executives are more challenged than previous due to the emerging mobile economy
(Kalakota and Robinson, 2002). Also, the convergences of Internet, e-business, and
wireless have created new opportunities for mobile economy (m-economy)
companies in developing emerging management enterprise systems to meet the
needs of mobile executives. Scholars and consultants agree that the Year 2000
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(Y2K) remediation programs prepared many organizations for the introduction of e-
commerce and m-commerce applications. Enabling technologies can foster greater
organizational changes due to the rapid decline in price and physical size of the
devices. The convergence of time and space via high speed telecommunications has
created a need for advanced KMSs (Dickson and DeSanctis, 2002).
Todays global executives are more mobile, and they reach out to
telecommunications and information technology sector for innovative solutions to
allow them to conduct business while on the move. However, there are many front-
end mobile devices (e.g., personal digital assists, cellular phones, notebooks, hybrid
x-boxes) that can connect to back-office information systems (e.g. web-based
database) via wireless technologies (e.g., VoIP, and broadband) and standards (e.g.,
Bluetooth, WAP 2.0 and IEEE 802.11). Low cost telephone service via VoIP
technologies will fuel the growth of the m-commerce and m-business market. Also,
new security applications (e.g., encryption) will emerge to protect the data
transactions and voice communications over wireless networks (Dornan, 2002).
It can be argued that the convergence of telecommunications, Internet, World Wide
Web, and computer-mediated networks have created new opportunities for
information management companies (Housel and Skopec, 2001; Panko, 1999). This
new demand is fueled by the global managers who have aggressive (frequent) travel
schedules and are forced to make decisions away from their home offices. It is clear
that the current management support systems must evolve to meet the needs of
these busy managers and executives. Also, the borderless new global (24/7)
economy has forced many organizations to respond to customers demands before
competitors do. Most major automakers (i.e., General Motors Corporation, Ford
Motor Company, DaimlerChrysler AG, Toyota, Nissan, VW, and BMW) are
integrating disruptive technologies (e.g., semantic web and service-orientated
software architecture) into their business processes and manufacturing facilities to
respond to customers demands for competitive products and faster delivery dates
(Alper, 2005; Moade, 2005). For example, Ford Motor Company used emerging
information technologies (e.g., Internet tools) and lessons learned from high-tech
industries to reengineer their supply chain strategy (Austin, 2001).
Managers should be careful when integrating disruptive technologies into their
organizations. The automotive industrys failed portal (Covisint) could be attributed to:
immature (un-proven) extensible markup language (XML), web-based applications,
and suppliers resistance to emerging technologies. In contrast, automotive
companies have implemented Radio Frequency Identification (RFID) technology in
their manufacturing facilities and supply chain. Wal-Mart mandated their suppliers to
install RFID tags (active and/or passive) in shipments for ease-of-tracking and supply
chain management enhancements.
Most organizations are implementing new e-strategies to remain competitive in the
new economy. Managers are participating in new information technology projects to
take advantage of Internet capabilities. For example, e-commerce types such as:
business-to-business (B2B), business-to-consumer (B2C), customer-to-business
(C2B), government-to-business (G2B), and e-commerce strategies can be
implemented in conjunction with enhanced knowledge management systems (KMS).
This approach has streamlined the management decision process thereby improving
organizational effectiveness. Customers can place their orders directly with
companies via e-commerce technologies and the related information is automatically
processed by the KMS. In contrast, m-commerce applications and services did not
expand at a rapid rate in the US, J apan, and Europe due to miniaturization of
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keyboards, and screens and lack of easy use of thin clients (Laudon and Laudon,
2005).
The record number of corporate bankruptcies (e.g., Enron, WorldCom, and Global
Crossing) has led to new government regulations and laws. Knowledge management
firms and developers are challenged to deliver emerging KMS to assist managers
and executives in remaining compliant with government regulations and filings
(Gincel, 2004). Company directors are now required to attend a minimum number of
board meetings each year and fully participate in the activities to ensure that
corporate governance is maintained. Government regulations and tools such as
government-to-business (G2B) and business-to-government (B2G) are forcing many
organizations to upgrade their current KMS. Government agencies are now installing
sophisticated computer-based systems to monitor the electronic filings of companies
(Nyberg, 2004).
What are some of the external drivers forcing most managers to develop emerging
KMSs? Why should managers be concerned about environmental forces? It is clear
that managers are facing challenges to implement section 404 and 409 of Sarbanes-
Oxly (SOX) and Securities and Exchange Commission (SEC) rules that added eight
triggers for 8-K filings. Chief Financial Officers (CFOs) and Chief Operating Officers
(CEOs) are required to certify their financial reports as part of section 404 of
Sarbanes-Oxly (Katz, 2004). New e-business models assist managers with SEC
filings, thereby reducing the risks of non-compliance.
The Sarbanes-Oxly (SOX) laws were passed by the US Congress to provide more
corporate oversight because of the record number of bankruptcies (e.g., Enron,
Global Crossing and WorldCom) and reduce the number of corporate restated
earnings. Notably, some Fortune 500 companies file reports electronically to receive
faster compliance feedback from the SEC. Section 409 of the SOX requires firms
with capitalization (valuation) over $75 million dollar to use best business practices
and due diligence to minimize the risks of errors in reporting data. Changes in the
firms assets must be reported with 48 hours (Gincel, 2004).
This research believes that a hybrid KMS will minimize or mitigate the risk of failures
and non-compliance with the new Sarbanes-Oxly laws. Also, managers should
integrate parts of the existing KMS in conjunction with proven management tools to
create a customized e-business model that fits the organizations business plan.
Customization is the wave of the future in the chaotic new economy since previous
e-business models have not met managers expectations. This article will examine
tenets of the emerging knowledge management systems (EKMS) and its connectivity
to other information systems via new telecommunications tools. It will also examine
the ramifications of the emerging markets (e.g., China, India, Brazil) demand for
globalized knowledge management systems to meet its requirements for the
seamless transfer of information in an m-economy. It is clear that more semi-mature
subsystems (e.g., expert systems, management information systems, decision
support systems, and artificial intelligence) must be integrated into the EKMS,
thereby providing managers with timely and accurate information. Enterprise
intelligent systems consisting of emerging technologies (i.e., e-business tools, web-
based databases, virtual enterprises, data warehouse) can be considered as
alternative EKMS (Turban and Aronson, 2004).
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Emerging Knowledge Management Systems
Most scholars agree that the current KMSs may have outlived their usefulness due to
the rapid rate of change of technological and economic forces occurring in the global
economy. Emerging technologies and global business drivers have fueled the
demand for web-enabled knowledge management systems to assist global
managers in making better and faster decisions. Perhaps a creative destructive
stimulant (e.g., outsourcing) was needed to fuel quantum changes within most
organizations to compete in the global economy. Outsourcing strategies need
supporting information systems to coordinate business processes in various global
operation centers (e.g., engineering, product development and manufacturing). For
example, some Fortune 500 companies have outsourced engineering services and
production to India and China over the last five years to maintain their competitive
position in the global economy. China and India will be major players in the global
economic growth game over the next five years and have attracted multi-billion
dollar worth of foreign direct investments from many industrial nations. Major global
automakers (i.e., GM, Toyota, Ford, DaimlerChrysler [DCX], and VW) have entered
into joint ventures and alliances with Chinese partners to produce automobiles for the
local and regional markets (Welch and Beucke, 2005).
It is clear that previous knowledge management systems have not met the needs of
some automakers due to their dismal performance of sales, product design, quality,
and profitability. Why have some of these KMS failed to meet users expectations?
What were the tools used to map the current business process for developing the
knowledge management model? Using the basic systems model, it can be argued
that poor coordination and processing of various knowledge sources (inputs) and the
actual business outcomes (e.g., profits, and favorable S & P ratings) could produce
significant differences of gaps thereby leading to failed expectations and lost
opportunities. For example, inputs such as data, information technology, best
practices, core competencies, skill sets, can be processed via computer mediated
systems, thereby producing value-added knowledge to enhance the decision making
and organizational learning processes (Malthora, 2004). Other reasons for failure of
KMSs may be: poor connectivity to other information systems, lack of updates, not
web-enabled (XML) for 24/7 access, lack of validated data and information during the
acquisition phase, poor content management, inadequate document management
control polices, minimal integration of end users suggestions for improvements, lack
of employees ownership. Some studies have suggested that, if missed KMS
objectives are factored into failure rates computations, the results could be between
50-75% (Turban, et al, 2005).
Most scholars and consultants agree that new KMS must be web-centric and
integrated into the organizations major information systems (e.g., decision support
systems), thereby allowing the global managers 24/7 access. What type of emerging
architecture (e.g., web-centric protocols and computer languages) is required to
support customized knowledge management systems? What type of connectivity
and portability (i.e., accounting and financial systems) is required to ensure
compliance with the various regulatory agency filings? Global managers must have
access to various information systems via mobile devices (e.g., personal digital
assistance, wireless PC, and cell phone) since they are spending more time away
from the office. New tools are required to assist managers make better decisions,
thereby staying engaged in the day-to-day business operations (i.e., remain in the
loop).
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The knowledge management system architecture should include the following
components: data-centric portals and gateways, data mining tools, middleware, data
warehouse, online-analytical processing tools (OLAP), operational databases, web-
centric protocols, management support systems, and web-based databases. Notably,
open database connectivity standards such as Microsoft OLE DB and ADO are used
by end users to access relational databases via web servers. The Simple Object
Access Protocol (SOAP) in conjunction with extensible markup language (XML) can
facilitate the ease-of-transfer of data across the Internet (Kroenke, 2004; Marwick,
2001). Managers must be able to search the various databases using OLAP and
data mining tools to answer What? Why?, How?, When?, Where? and What-if?
questions, during their day-to-day responsibilities. Unfortunately, if the context (i.e.,
data, information, knowledge and wisdom) provided by the data bases and
warehouses are limited, then managers will be forced to make intuitive decisions that
could result in un-intended consequences (Pohl, 2003). Decision support systems
(DSS), management support systems (MIS), and executive support systems (EIS)
are important components of emerging knowledge management systems. The EIS
architecture should be web-centric and client/server based to access information and
data from various systems such as a SQL server, a data warehouse, a Groupware
Server, a Web Server, a mainframe, an e-mail server, and a file server (Marakas,
2003). This writer has postulated a holistic-hybrid knowledge management system
in Figure 2 with integrative emerging technologies that can assist mangers make
better decisions.
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Figure 2 Holistic-Hybrid Knowledge Management System
(OBrien, 2004; Cuffe, 2005;
Turban, et al, 2005)
Mobile
device
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Emerging knowledge management systems (EKMS) will include: encryption tools,
existing client/server applications, new ultra high speed (fat pipes) Internet 2
(scheduled for deployment within 2-3 years), emerging technologies, and 5) mobile
(wireless) devices (e.g., personal digital assistant, fat clients, cell phones, notebooks,
lap top PCs, and x-boxes), government regulations and guidelines (SOX), financial
information systems (FIS), accounting information systems (AIS), best business
practices, ethical practices, and legal guidelines. The mobile economy (m-economy)
fueled by the convergence of the Internet 2, e-business, web-centric servers,
protocols, routers and wireless networks (e.g., Wi-Fi) will allow end users to access
the EKMS anytime, anywhere and use any device. The m-economy is driven by new
economy strategies and tools resulting in the creation of the m-business platform
(i.e., Internet +E-Commerce +wireless +E-Business). There is a paradigm shift
occurring, that will move end users away from fixed e-commerce and e-business
applications to m-business solutions. This new phenomenon (a best business
practice) will allow managers to conduct business while on the move (Kalakota and
Robinson, 2002).
Information overload and lack of correct data, information, knowledge and wisdom
are major concerns for most global organizations faced with limited resources to
solve complex problems and make mission-critical business decisions. Managers
need assistance from computers that can function close to human intelligence to
provide solutions to complex situations with minimal, erroneous, and ambiguous
information. Artificial (e.g., expert systems, visual perception and virtual reality)
intelligence (AI) tools should be integrated into the KMSs to make better decisions,
thereby reducing human errors and man-hours searching for the correct data and
information (OBrien, 2004). Companies needs tools to perform studies such as:
competitive benchmarking (best-in-class or best-of-breed), strength, weakness,
opportunities (SWOT) analysis, gap analysis, forecasting, data mining, and online
analytic processing (OLAP). Business analytics (BA) tools can assist analysts in
accessing emerging knowledge management systems for operation and financial
reports. For example, Southwest Airlines used new business intelligence and
analysis tools to assist their managers make better decisions that resulted in a
significant improvement in the bottom-line for the year 2002 (Turban, et al, 2005).
Middle level managers need tactical models to assist them to plan short term events
(e.g., less than 2 years). In contrast, low level managers need operational models to
assist them during the day-to-day activities in making routine daily decisions such as
approving loans and planning production. High level (strategic) managers need
explicit models to assist them with long term planning and resolve un-planned events
with minimal information. Senior managers make decisions that have broad impact
on their organizations. It is imperative that these senior managers have the best
information and knowledge about the issues before making decisions based on
legacy business practices. Most scholars and consultants agree that todays
managers are faced with many challenges (e.g., privacy, legal, ethical, safety,
vigilance, governance, regulatory) that will require sophisticated hybrid knowledge
management systems (e.g., ES, DSS, EIS) to minimize or mitigate the risks of
making poor decisions. It is clear that the hybrid KMSs must be designed to
overcome a phenomenon termed the Peter Principle where as the managers may
not have the correct skills and/or ability to interpret the data and information at hand.
Regrettably, these Peter Principle Managers may elect to do nothing and wait for
perfect information or corporate guidance, only to miss potential business
opportunities (Marakas, 2003).
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International J ournal of Applied Knowledge Management: Volume 1 Issue 3
Conclusion
Global organizations are supported by knowledgeable workers with sophisticated skill
sets to interpret the data and information stored in various information systems.
However, the current changes in major industries (e.g., automotive) would suggest
that todays knowledge management systems may not have provided managers with
credible information to mitigate the risks of organizational failures in the marketplace.
It is clear that, innovative solutions are required to fuel the evolution of knowledge
management systems to meet the challenges ahead. Emerging technologies (e.g.,
RFID, m-business, and wireless networks) will generate large volume of data,
information that may be disruptive to most organizations information systems (e.g.,
KMS, ERP, and SCM). Unfortunately, some global firms may not have updated KMS
to defend themselves against the competitors who will disrupt and dominate their
market (Moad, 2005). Managers need real time information to make decisions when
faced with uncertainty or chaotic situations in the market place. Proactive managers
who think outside the box and manage their operations or business processes with
credible data (e.g., financial, operations, production, and sales) will survive and
prosper. Regrettably, legacy managers with poor data management skills will be
replaced with cost effective knowledge workers (e.g., knowledge engineers, analysts,
and subject matters experts) who will prepare competitive and operational reports for
the middle and senior level managers in a reduced time frame.
In conclusion, knowledge acquisition, and sharing and distribution processes will be
coordinated by sophisticated KMSs with web-centric connectivity to other business-
critical information systems (e.g., FIS, AIS, DSS, and EIS). These hybrid KMS will
allow the knowledge workers to collaborate remotely (24/7) on projects via high
speed fat pipes (large bandwidth), Internet 2, and web-based tools and applications.
Also, leading industries (e.g., automotive) will collaborate with universities and key
public sectors to develop hybrid KMSs in a reduced and cost-effective manner. If
organizations have real time data and information stored in web-centric information
systems, then their managers can be proactive in the decision making process.
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International J ournal of Applied Knowledge Management: Volume 1 Issue 3
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Author Biographical Information
Dr. Cuffe is an adjunct professor at Nova Southeastern University and Regis
University teaching on-campus and distance learning graduate courses such as:
Information and Decision Sciences, Applied Database Management Systems,
International Business, and E-Business Systems. He has a Ph.D. degree in Applied
Management and Decision Sciences with a professional specialization in Advanced
Manufacturing Management Systems from Walden University, Minneapolis, MN. In
addition, he has an MSA degree in Business/Management Administration from
Central Michigan University, Mt. Pleasant, MI, and a BET degree from City College of
New York, NY. His professional background includes Fortune 100 experience in
engineering and project management for one of the Big Three Automotive
companies. Some of his corporate assignments have been in manufacturing facilities
and the division technical center. Currently, he is an international consultant and
owner of an international consulting firm. His professional expertise includes the
following: E-Business, E-Commerce, M-Business, M-Commerce, Information
Technology, Management Information Systems, Lean Manufacturing Tools, Strategic
Business Planning, Organizational Development and Graduate Level Curriculum
Development. Some of his consulting assignments have been: Developing Distance
Learning Curriculums; Item Test Writing of Assessment Tools for MBA programs;
Conducting Training Seminars; Benchmarking of Competitive Information
Technology Systems and Year 2000 (Y2K) Remediation. He has professional
memberships in the Institute of Electrical and Electronics Engineers, the Society of
Manufacturing Engineers, and the American Management Association. Dr. Cuffes
research interests are: M-business, M-commerce, E-business, E-commerce,
Information Technology, Knowledge Management Systems, Distance Learning, and
Lean Manufacturing Strategies.
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