Business Intelligence &
Knowledge management includes the processes necessary to generate, capture, codify, and transfer knowledge across the organisation to achieve competitive advantage.
Business intelligence (BI) is the term used to describe the set of technologies and processes that use data to understand and analyse business performance.
Business analytics is the term used to refer to the use of quantitative and predictive models and fact-based management to drive decisions. It can be considered a subset of BI.
Knowledge Management, Business Intelligence & Business Analytics - Management Information System
Business Intelligence &
Knowledge management includes the processes
necessary to generate, capture, codify, and
transfer knowledge across the organization to
achieve competitive advantage.
Business intelligence (BI) is the term used to
describe the set of technologies and processes
that use data to understand and analyze business
Business analytics is the term used to refer to
the use of quantitative and predictive models and
fact-based management to drive decisions. It can
be considered subset of BI.
Knowledge is a mix of contextual information,
experiences, rules, and values.
Richer, deeper, and more valuable.
Tacit vs Explicit Knowledge
Tacit* knowledge is personal, context-specific
and hard to formalize and communicate
– A (knowledge) developed and internalized by the
knower over a long period of time - incorporates so
much accrued and embedded learning that its rules
may be impossible to separate from how an individual
*understood or implied without being stated
Explicit knowledge can be easily collected,
organized and transferred through digital
– A theory of the world, conceived of as a set of all of
the conceptual entities describing classes of
objects, relationships, processes, and behavioral
•Knowing how to identify the
key issues necessary to solve a
•Applying similar experiences
from past situations
•Estimating work required
based on intuition & experience
•Deciding on an appropriate
course of action
•Procedures listed in a manual
•Books and articles
•News reports and financial
•Information left over from past
KM is not a new concept, but one
reinvigorated by IT such as collaborative
systems, the Internet and intranets.
KM is still an emerging discipline
Ultimately, an organization’s only sustainable
competitive advantage lies how its employees
apply knowledge to business problems
KM is not a magic bullet and cannot solve all
Factors to consider in Knowledge
Information and knowledge have become the
fields in which businesses compete.
Managing knowledge provides value to
organizations in several:
– Sharing Best Practice
– Rapid Change
– Managing Information Overload
– Knowledge Embedded in Products
– Sustainable Competitive Advantage
Sharing Best Practices
Sharing best practices means leveraging the
knowledge gained by a subset of the
Increasingly important in organizations who
depend on applying their expertise such as
accounting, consulting and training firms.
KM systems capture best practices to
disseminate their experience within the firm.
Problems often arise from employees who may
be reluctant to share their knowledge (managers
must encourage and reward open sharing).
Decrease cycle times for global processes since
information moves faster than physical process
Manage global competitive pressures
Provide global access to knowledge
Adapt to local conditions
Build on previous work to make company more
Sense and respond to changes more quickly
Customize preexisting solutions for unique
Insurance for Downsizing
Protect from loss of knowledge when workers
Provide portability for workers who move
Reduce time for knowledge acquisition
Managing Information Overload
Filter data to assimilate relevant knowledge
into the company
Provide organization and storage for easier
Embedded Knowledge from
Use smart products to gather product
information automatically for use in refining
product, maintenance, upgrades and customer
Information system embedded in products
Add value through intangibles such as fixing
systems before customer knows it’s broken
Sustainable Competitive Advantage
Shorten the life cycle of innovation
KM is the way to do this. Shorter innovation life
cycles keep companies ahead of the
Traditional business intelligence (BI) has been
associated with providing dashboards and
reports to assist managers in monitoring key
Common elements of BI systems include
reporting, querying, dashboards, and
Competing with Business Analytics
Hard to duplicate
– Because successfully using analytics to compete
means having a strong culture and organizational
support system, as well as business processes that
utilize the results of the analytical analyses, copying
the capability is difficult, if not impossible.
– A competitor may have the same tools, but success
comes from how they are used.
– There are many ways to use business analytics to
compete. A specific business will choose a path
based on their business, their strategy, their market,
their competitors, and their industry.
– Successful companies use analytics across
boundaries and in creative ways. Workers are not
held back from using analytics, and in fact are
encouraged to find new and innovative ways to
apply their tools.
– By creating a culture of analytics, virtually everyone
in the organization seeks applications for analytics
to enhance their business operations.
Better than competition
– Some organizations are better at applying analytics
than others. For example, the New Zealand cricket
team is known to use analytics, especially when it
comes to the toss decision. Pakistan on the other
hand is not known for this.
– Agility is an important characteristic of sustainable
competitive advantage. Companies who use
analytics for competitive advantage are
exceptionally adaptable, continuously reinvest, and
constantly renew their capabilities.
Gathering BI from social platforms to perform
– Listening to the community—identify and monitor all
conversations in the social Web on a particular topic or
– Learning who is in the community—learn customer
demographics such as age, gender, location, and other
trends to foster closer relationship with community.
– Engaging people in the community—communicate
directly with customers on social platforms such as
Facebook, YouTube, LinkedIn, and Twitter using a single
– Tracking what is being said—measure and track
demographics, conversations, sentiment, status,
and customer voice using a dashboard and other
– Search term interest and insights—to understand
the interest over time of a search term, regional
interest in the term, top searches for terms of similar
category, and popularity of similar terms.
– Advertising support and management—to identify
the best ways to spend advertising resources for