2. contents
What is decision making?
Knowledge management
Recap of KM/decision making
Knowledge management process
Knowledge activates: tacit to explicit & vice
versa
Impact of KM strategies on d
ecision making
Technological application
The changing environment
3. What is decision making?
Decision making is one of the most common
thinking activities and one of the most crucial
processes of any business.
Other common thinking activities are
analyzing, categorizing, comparing,
discovering, evaluating, planning, prioritizing,
and reflecting.
4. Cont……….
In the present environment, often referred to as
the knowledge age, more and more workers are
becoming knowledge workers with productivity
highly dependent on their decisions.
Thus, decision support tools need to be tailored
to meet the timeliness and utility of the decision
information that will be required by these
workers at all levels of the organization.
According to Wiig (1994)the “…lack of
knowledge is a major shortcoming of important
business decisions.”
5. Knowledge management
Knowledge Management (KM) is both a discipline and
a managerial policy initiative that encapsulates the
strategies, systems and processes that enable and
simplify creation, capture, sharing, distribution and
utilisation of an organisation’s knowledge. (Kandadi,
2006)
KM refers to the set of business processes developed
in an organisation to create, store, transfer, and apply
knowledge. (Laudon & Laudon, 2007)
6. Cont…..
KM involves the creation of value from an
organization’s in tangible assets.
Information systems are designed to facilitate the
sharing and integration of knowledge.
KM is a young discipline for which a codified, generally
accepted framework has not been established.
7. Recap of KM / Decision Making
Concerned with the representation and processing of
knowledge by humans, machines, organizations and
societies
Aims to ensure the right knowledge is available in the
right forms to the right entities at the right times for the
right cost.
Decision making is a knowledge intensive activity with
knowledge as its raw materials, work in process, by
products and finished goods.
8. Cont…….
Computer based DSS employ various KM
techniques to represent and process knowledge
of interest to decision makers, including
descriptive knowledge (data, info), procedural
knowledge (algorithms) and reasoning
knowledge ( rules).
Proficiency in KM is increasingly important to the
competitiveness of the decision makers as we
rapidly move into the global knowledge society.
10. Knowledge Activities: Tacit to
Explicit & Vice Versa
Transfer of knowledge from people to physical form
Through development of reports and manuals or
answering queries
Use of technologies like word processing documents,
presentation tools and email
Tacit
Knowledge
residing in People
Explicit
Knowledge in
physical form
Transfer of knowledge from physical form to actionable
knowledge in people
Through video, audio or text presentations. Browsing
through documents
Use of technologies like multimedia technologies, word
processing and presentation tools
12. Technological Application
Computers will never be substitutes for humans in
complex decision situations. But they can surely lend
support to decision makers in helping us to make
more humane decisions.
Using e-mail and chat rooms, conduct real time
interviews with stakeholders.
Gather information on stakeholders concerns via their
websites and newsgroups.
13. The changing environment
“As globalization expands, the number of
stakeholders affected by organizations will
increase in size, and the widely disparate
customs, laws, behaviors and environmental
concerns of affected communities will further
complicate strategic problems.”
