Automated Decision-Making Framework

E.g. -Architecture of the Airline Revenue Management Systems

Introduction to
Knowledge Management
• Knowledge management concepts and definitions
– Knowledge management
The active management of the expertise in an
organization. It involves collecting, categorizing, and
disseminating knowledge
– Intellectual capital
The invaluable knowledge of an organization’s
employees
Introduction to
Knowledge Management
• Knowledge is
– information that is contextual, relevant, and
actionable
– understanding, awareness, or familiarity
acquired through education or experience
– anything that has been learned, perceived,
discovered, inferred, or understood.

In a knowledge management system, “knowledge

is information in action”
Introduction to
Knowledge Management

Data Relevant and

Knowledge
Processed Information Actionable

DEPLOYMENT CHART

Database DEPT 1
PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5

DEPT 2

Wisdom
DEPT 3

DEPT 4

4 5
2 3
1

Relevant and actionable processed-data

Introduction to
Knowledge Management
• Characteristics of knowledge
– Extraordinary leverage and increasing returns
– Fragmentation, leakage, and the need to refresh
– Uncertain value
– Uncertain value of sharing

• Knowledge-based economy
The economic shift from natural resources to
intellectual assets
Introduction to
Knowledge Management
• Explicit and tacit knowledge
– Explicit (leaky) knowledge
Knowledge that deals with objective, rational,
and technical material (data, policies,
procedures, software, documents, etc.)
– Easily documented, transferred, taught, and
learned
– Examples…
Introduction to
Knowledge Management
• Explicit and tacit knowledge
– Tacit (embedded) knowledge
Knowledge that is usually in the domain of
subjective, cognitive, and experiential learning.
– It is highly personal and hard to formalize.
– Hard to document, transfer, teach, & learn
– Involves a lot of human interpretation
– Examples…
Taxonomy of Knowledge
Organizational Knowledge -
Learning and Transformation
• Learning organization
An organization capable of learning from its past
experience, implying the existence of an
organizational memory and a means to save,
represent, and share it through its personnel
• Organizational memory
Repository of what the organization knows
Organizational Knowledge -
Learning and Transformation
• Organizational culture
The aggregate attitudes in an organization
concerning a certain issue (e.g., technology,
computers, DSS)
– How do people learn the “culture”?
– Is it explicit or implicit?
– Can culture be changed? How?
– Give some examples of corporate culture:
Microsoft, Google, Apple, HP, GM, …
Approaches to
Knowledge Management
• Process approach to knowledge management
attempts to codify organizational knowledge through
formalized controls, processes and technologies
– Focuses on explicit knowledge and IT
• Practice approach focuses on building the social
environments or communities of practice necessary
to facilitate the sharing of tacit understanding
– Focuses on tacit knowledge and socialization
Approaches to
Knowledge Management
• Hybrid approaches to knowledge management
– The practice approach is used so that a
repository stores only explicit knowledge that
is relatively easy to document
Hybrid
– Tacit knowledge initially stored in the
at
80/20
repository is contact information about
to experts and their areas of expertise
50/50 – Increasing the amount of tacit knowledge over
time eventually leads to the attainment of a
true process approach
Approaches to
Knowledge Management
• Best practices
In an organization, the best methods for solving problems. These
are often stored in the knowledge repository of a knowledge
management system
• Knowledge repository is the actual storage location of knowledge
in a knowledge management system. Similar in nature to a
database, but generally text-oriented
 KNOWLEDGE MANAGEMENT PLATFORM (KMP)

Approaches to KNOWLEDGE PORTAL

(Web-based End User Interface)

KNOWLEDGE UTILIZATION
Knowledge Management Human Experts
Ad hoc
Search
Intelligent Broker

A
Comprehensive KNOWLEDGE REPOSITORY
(Knowledge / Information / Data Nuggets)
JUN

1
5

View to
Knowledge Web Crawler Data/Text Mining Tools
Manual

KNOWLEDGE CREATION
Entries
Repository
DIVERSE INFORMATION / DATA SOURCES
(Weather / Medical Info / Finance / Agriculture / Industrial)
Information Technology (IT) in Knowledge Management
• The KMS cycle
– KMS usually follow a six-step cycle:
1. Create knowledge
2. Capture knowledge
3. Refine knowledge
4. Store knowledge
5. Manage knowledge
6. Disseminate knowledge
Information Technology (IT) in Knowledge Management
2
Capture
The Cyclic Model Knowledge

of Knowledge
Management Create
Knowledge
1
Refine
Knowledge
3

6 4
Disseminate Store
Knowledge Knowledge

5
Manage
Knowledge
Characteristics of Groupwork
• Groupwork → the work done by two or more people
together
• A group performs a task
• Members may be located in different places
• Group members may work at different times
• Group members may work for the same organization
or for different organizations
• A group can be permanent or temporary
• A group can be at one managerial level or span
several levels …
Why Groupwork/Collaborate?

Make Decisions
Review
Build Trust
Synergy
Share the Vision
Share Information
Share Work
Solve Problems
Build Consensus Socialize
Group Decision-Making Process
• Why? Because no one has all the
• Experience
• Knowledge
• Resources
• Insight, and
• Inspiration
… to do the job alone.
• Difficult decisions require group of people
• Virtual teams?
Groupwork –
Process Gains and Losses
Supporting Groupwork – Group Support Systems
▪ Goal: to support groupwork
▪ Increase benefits / decrease losses
▪ Based on traditional methods
▪ Nominal Group Technique
“Individuals work alone to generate ideas which are pooled
under guidance of a trained facilitator”
▪ Delphi Method
“A structured process for collecting and distilling knowledge
from a group of experts by means of questionnaires”