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Centre for Information

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Centre for Information & Knowledge Management INFORMATION SYSTEMS MANAGEMENT Jamie O Brien Centre for Information & Knowledge Management University of Limerick – PowerPoint PPT presentation

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Title: Centre for Information


1
Centre for Information Knowledge Management
  • INFORMATION SYSTEMS MANAGEMENT
  • Jamie OBrien
  • Centre for Information Knowledge Management
  • University of Limerick
  • Lecture 5
  • E-mail jamie.a.obrien_at_ul.ie

2
What well cover today
  • Knowledge Management
  • The Project

3
  • Trends and Implications

4
Ireland
  • As of Feb 1st 2009, 325000 people on the live
    register
  • 12 unemployment!!!
  • Predicted by end of 2010, 450,000 on live
    register, probably will be higher
  • Net emigration for the first time since 1995
  • No safety valve of immigration this time!

5
Introduction
  • Term knowledge-based economy?
  • Knowledge has always been central to economic
    development.....we just didnt get behind it
  • Only recently been recognised as important
  • Knowledge-intensive service sectors, such as
    education, communications and information, are
    growing faster

6
Introduction
  • Intangible investments in research and
    development (RD)
  • It is skilled labour that is in highest demand in
    the OECD countries.
  • Average unemployment rate for people with
    lower-secondary education is 10.5 per cent,
    falling to 3.8 per cent for those with university
    education

7
Introduction
  • Knowledge....knowledge knowledge?? What is it?
  • Lots of definitions and opinions on this
  • Types Know-what (information), know-why
    (specialised), know-how (skills- surgeon) and
    know-who (who knows what)
  • Simply Knowledge lets us code the meaning of
    information. Information is meaningless unless
    given perspective.

8
What is Knowledge
Dave Snowden IBM, Gurteen Conference 2003
9
  • You cant manage what you cant measure

10
Knowledge Economics
  • Traditional production functions focus on labour,
    land, capital, materials and energy (Neoclassical
    Economists)
  • Knowledge and technology are external influences
    on production (Robert Solow)
  • Investment in knowledge lead to long term growth
    (Paul Romer)

11
Irelands Knowledge Intensity
  • Derived from RD intensity in the Business,
    Higher Education and Government Sectors
  • Ratio of investment in knowledge to GDP was
    unchanged from 1997 to 2004
  • RD linked directly with knowledge and growth
    (Romer 1986)
  • Ireland remains below the average RD performance
    (14th of 17 in OECD survey ahead of Portugal and
    Hungary)

12
Irelands RD Performance An E.U and OECD
Comparison
13
How can Knowledge be brought into the equation?
  • Irish economy based on construction, housing,
    manufacturing sector.......etc
  • Had all this money (our old friend, Celtic tiger)
    ......but forgot about knowledge...
  • Now we are in a little trouble....
  • What about knowledge? We have a knowlegde problem!

14
So what can be done?
  • Well you cant manage a problem unless you can
    measure a problem
  • few ways of looking at knowledge!
  • Endogenous growth theory looks at the link
    between knowledge and long term growth
  • Intellectual capital theory measures intangibles
  • KM theory looks at audit models
  • OECD takes a conceptual framework approach

15
Endogenous Growth Models
  • Learning-by-doing models (Arrow 1962 Lucas 1988
    Stokey 1988)
  • Invention based models (Romer 1986 Aghion
    Howitt 1992 Jones 1995)
  • Hybrid models (Young 1993)

16
Brief look
  • Learning-by-doing technical change (knowledge)
    be viewed as endogenous (internal) to the
    economic system and secondly for attempting to
    offer an account of what constitutes technical
    change (the active attempt to problem solve)
  • Invention based models technical change
    (knowledge) is seen as the product of profit
    maximising agents at micro level, while at macro
    level, knowledge is channelled into growth
    through increased firm efficiency and knowledge
    spillovers

17
Measuring Intangibles (IC)
  • Capital is knowledge imposed on the material
    world (Boulding 1966 5)
  • To the Physiocrats of pre-Revolutionary France,
    it was the surplus generated by agriculture
  • Decreasing amount of economic activity now
    involves the manipulation of physical assets
  • Intangible assets such as knowledge have instead
    become the dominant value driver at firm level
    (Low 2002 Bounfour Edvisson 2005 Chartrand
    2005)

18
Intellectual Capital (IC)
  • For the purpose of the framework IC has been
    broken down into
  • Human has been defined as the individual stock
    of knowledge accumulated by a firms employees
  • Structural refers to the procedures, systems,
    routines and rules that comprise the core of the
    firm
  • Relational encompasses knowledge that is
    embedded in all of the external relationships
    that a firm develops with its stakeholders
    competitors, customers, suppliers

19
Knowledge Assessment Framework (KAF)
  • Derived from OECD standard indicators for
    knowledge, endogenous growth models, KM auditing
    models and Intellectual Capital
  • OECD- Factors and constructs
  • KM- Tacit/Explicit/Implicit knowledge and
    structure
  • EGT- Learning-by-doing/Invention
  • IC- Human/Structural/Relational
  • For use at organisational level

20
Location
  • Ireland why? Research has a sense of urgency
    given economic climate, RD and knowledge
    deficits, access.
  • High-Technology sector as defined by the OECD
    why? High knowledge sector with large amounts of
    knowledge workers.
  • Definition comprised of computers,
    electronic-communications, medical device and
    pharmaceutical industries.

21
Knowledge Assessment Framework (KAF)
Tacit (1)
Explicit (2)
Implicit (3)
KEY ?
Red Human
Blue Structural
Green Relational
Learning
Invention
KNOWLEDGE INPUTS
Technical Staff(1) Patents(3) Expenditure
on RD(2) Technology Transfer(2)
Embodied Technology (3) Amortised Annual
RD(1) Disembodied Tech (2)
Stock Research Personnel(1) In
Surveys(2) Communities of
Practice(1) Outsourcing of RD(3)
Training Programmes(2)
Education(3)
Experience(1) New Market Products(2)
Publications(2) Patents Granted(3)
KNOWLEDGE STOCKS FLOWS
KNOWLEDGE INTENSITY INDEX (K.I.I)
KNOWLEDGE NETWORKS
KNOWLEDGE LEARNING
KNOWLEDGE OUTPUTS
CONSTRUCTS
FACTORS
22
Knowledge Intensity Index (K.I.I.)
  • Factors One that actively contributes to an
    accomplishment, result, or process
    (Factor?Construct?K.I.I.)
  • Constructs To form by assembling or combining
    parts (Construct?K.I.I)
  • Knowledge Intensity Index (K.I.I) K.I.I. shows
    the knowledge intensity of an organisation

23
Constructs
  • Knowledge Inputs
  • Knowledge Stocks/Flows
  • Knowledge Networks
  • Knowledge Learning
  • Knowledge Outputs

24
Knowledge Inputs
  • Technical Staff- information on employees such as
    the level of education and number of technical
    staff, can be collected
  • RD- any creative work undertaken on a systematic
    basis in order to increase the stock of knowledge
  • Technology Transfer- payments for
    production-ready technologies or know how
  • Patents- the representation of ideas themselves,
    patents are the closest to direct indicators of
    knowledge formation

25
Knowledge Stocks/Flows
  • Embodied Technology- Embodied technology is the
    introduction of context into production processes
    of machinery, equipment and components that
    incorporate new technology
  • Disembodied Technology- is the transmission of
    knowledge, technical expertise or technology in
    the form of patents, licenses or know-how within
    an existing domain
  • Amortised RD-RD stock relative to production
    has been used to estimate rates of return to RD
    investment
  • Research Personnel- measurement of personnel
    employed

26
Knowledge Network
  • Communities of Practice- Informal networks tend
    to be based on personal contacts or communities
    of practice
  • Innovation Surveys- surveys capture information
    about the factors affecting the propensity of
    firms to innovate
  • Outsourcing of RD- new types of collaborations
    with research organisation activities in
    research and development, production, procuring,
    distribution, recruiting and ancillary services

27
Knowledge Learning
  • Training- assessed by questions on human
    resources and training
  • Experience- Each worker requires skills obtained
    through education (which usually gives rise to
    formal qualifications in the shape of degrees or
    diplomas, whose equivalence may be recognised
    internationally) or through training or
    on-the-job experience
  • Education- labour force with particular
    educational attainments

28
Knowledge Outputs
  • New market products- the Oslo Manual
    distinguishes three relevant concepts new to the
    firm, new to the market and new to the world
  • Publications- by academic publication (a common
    codified pool of knowledge)
  • Patents Granted- legal property right to an
    invention, which is granted by national patent
    offices

29
What we covered today
  • Knowledge Management
  • The Project

30
Introduction of Project
  • This report is intended for the board of Celtic
    Wholesome Foods Plc. The purpose of the report
    is to
  • Assess the feasibility of a proposal to implement
    a centralised I.S. Service Desk
  • Explore the possible options
  • Recommend a course of action

31
Scope of Document
  • This document provides an outline of the
    investigation and feasibility study that was
    conducted in February/March 2010 by
    __________________ into the use of a centralised
    IS Service Desk in Celtic Wholesome Foods Plc.

32
  • The Statement of Scope and Objectives is a copy
    of the statement that was created at the
    initiation of the project.
  • Interviews were conducted principally in the
    _______ division. This was due to the fact that
    the author is currently based in this division.
    However, other divisions were taken into
    consideration in all other aspects of the study

33
  • Statement of Scope Objectives
  • At the inception of this project this statement
    has been created in order to outline
  • the exact nature of the business opportunity that
    has lead to the project
  • the intended benefits of the proposed new
    information system
  •  

34
  • Assignment Scope
  • Company details
  • Project Initiated
  • This project was initiated at the request of the
    Finance Director of the group due to a number of
    issues that came to her attention
  • Business units are paying vastly different rates
    for maintenance on their systems
  • Purchasing decisions are not based on clear
    historical data

35
Problem/Opportunity
  • Currently, all problems with information systems
    are resolved using local arrangements.
    Consequently, there are inefficiencies across the
    group.
  • Potential for cost savings from central purchase
    is not being utilised.
  • Call response times vary greatly across the
    group.

36
Problem/Opportunity
  • For example In production all calls are
    responded to in 2 hours
  • In Finance, calls are often unanswered for 8
    hours
  • There is no management information which could
    be used for
  • Highlighting problems with current systems
  • Making purchasing decisions more informed in
    future
  • The response to calls is variable Some service
    calls are being answered promptly
  • Other calls are taking days to resolve
  • There are no means of prioritising calls

37
Business Benefits
  • There are many anticipated benefits from the use
    of a centralised service desk. These include
  • Faster response times i.e. engineers respond to
    requests faster
  • Reduction in time lost due to system issues
  • More specialisation among engineers i.e. each
    engineer focuses on one area
  • e.g. one engineer concentrates on email
  • another engineer concentrates on database
    applications

38
  • This means that engineers are being utilised to
    do the work that they are skilled in
  • Management information is produced regarding the
    support calls for various systems

39
System Capabilities
  • An IS Service Desk should be capable of the
    following
  • Handle all IS Service Calls
  • Maintain a history of all calls
  • Maintain a record of all software that is rolled
    out to computers
  • Maintain an exact record of the configuration of
    each information system in the group

40
  • Company Information
  • Company size, geographical locations
  • Personnel (by type)
  • The breakdown of personnel in the division is as
    follows 
  • Marketing Director,
  • Sales Manager
  • Marketing Manager
  • Organisation chart
  • A copy of the organisation chart for the project
    Department is shown in Appendix ?? Page ??.

41
Feasibility Report
  • This report provides an outline of the current
    system and available options before examining one
    option in detail.

42
Current System
  • Currently, the system operates as follows
  • Each business unit has a team of people who
    handle all matters relating to IS
  • There are no formalised methods of logging
    requests to the IS people
  • Sections located nearest to the local IS
    department get the highest level of service
  • Because they can walk into the office to get
    personal service
  • Offices that are distant from the IS department
    do not get good service

43
Available Options
  • Different vendors/suppliers are used in each of
    the business units resulting in
  • A variety of support contracts
  • Loss of potential savings from pooled purchase
  • Management information is not available because
  • Each IS team has its own method of logging
    requests
  • Some use an access database, others use an Excel
    spreadsheet

44
  • Some teams do not keep records of service
    requests
  • Information is not pooled across the divisions
  • Each IS department has its own budget
  • Local arrangements are employed in prioritising
    calls
  • Some of the managers have close links with the IS
    department
  • This provides them with the means of escalating
    calls
  • It also enables the IS people to get to
    understand the business

45
  • Currently each business unit has its own IS team
    who are acting independently. There are a number
    of options available to the group with regard to
    how to work in the future. The following is an
    outline of the main options available
  • Continue with the current option of each unit
    operating independently
  • Utilise a centralised IS Service Desk but allow
    local IS service functions

46
  • Utilise a centralised IS Service Desk and
    centralise all IS functions
  • Outsource the IS Service Desk and centralise all
    IS functions
  • Outsource the IS Service Desk and outsource all
    IS functions
  • Options Evaluated
  • Ads/Disadvs

47
Feasibility Study
  • Baaf 3 Project

48
Components
  • Economic
  • Technical
  • Operational Organisational
  • Social

49
Economic Costs
  • Systems Analysis Design
  • Purchase of Hardware
  • Software Costs
  • Training Costs
  • Installation Costs
  • Changeover Data Conversion
  • Redundancy Costs
  • Operating Costs

50
Economic Benefits
  • Savings in Labour
  • Benefits of Faster Processing
  • Better Decision Making
  • Better Customer Service
  • Error Reduction

51
Compare Costs and Benefits
  • Costs mostly in the initial stages
  • Benefits end of systems life cycle
  • Methods
  • Discount Rate of Return
  • Net Present Value
  • Cost-Benefit Ratio
  • Profitability Index
  • Internal Rate of Return

52
Cost/Benefit pitfalls
  • Tangible benefits can be quantified
  • BUT
  • Intangible benefits are not easily quantified
  • Financial models assume that costs and benefits
    can be expressed in financial terms

53
Technical Criteria
  • Rule-governed tasks
  • Repetitive tasks
  • Complex Tasks
  • High degree of accuracy required
  • Speed of Response
  • Data used for many tasks

54
Technical Feasibility
  • Will the system
  • Deliver the performance required?
  • Deliver the necessary level of security?
  • Enable data integration?
  • Ensure data quality?

55
Operational Organisational Feasibility
  • Organisation accepts new systems?
  • Will users be able to use the technology?
  • Organisational structure (departments
    divisions) conducive to the system?
  • Support the required decision-making?

56
Operational Feasibility
  • The operational feasibility of the proposed
    change is centred on
  • users to log calls to a central IS Service Desk
  • users providing exact details to the IS Service
    Desk, such as confirming
  • Asset Tag on PC
  • Exact location
  • Alternative contact numbers
  • Engineers taking all instructions from the IS
    Service Desk
  • Engineers refusing to handle calls that have not
    been logged with the IS Service Desk

57
Operational Feasibility
  • Potential difficulties in the area of operational
    feasibility are
  • Lack of cooperation from management
  • This would result in their staff not adhering to
    new procedures
  •  Lack of cooperation from service engineers
  • This would result in calls being processed
    without being logged centrally

58
  • Operational Assessment
  • It is believed that the proposal to utilise a
    central ERP is operationally feasible because
  • 1
  • 2
  • 3
  • 4
  • 5

59
Social Feasibility
  • Implications on lifestyle
  • Eircom removing telephone kiosks
  • Implications on wider community
  • Mobile Phone Masts

60
  • Recommendation
  • I would (would not) recommend that the proposed
    installation of a centralised IS Service Desk be
    progressed. The recommendation is based on the
    following main points
  • Technically there are no issues to threaten the
    feasibility of the project
  • Economically the project is feasible (based on
    two reviews)
  • Organisationally the project is feasible
    (though it will need to be well-managed)

61
  • Plans
  • This report requires the approval of the board of
    Celtic Wholesome Foods Plc.
  • If approved, the following are the most immediate
    steps to be taken
  • Inform all senior managers of the decision to
    proceed with the project
  • Inform the IS managers and IS teams in each of
    the business units
  • Arrange meetings with IS teams to discuss how to
    progress the project
  • Initiate the assessment of Helpdesk software
    solutions

62
Feasibility Report
  • Title Page
  • Terms of Reference
  • Background
  • Method of Study (fact finding)
  • Present System
  • Proposed System
  • Recommendation
  • Development Plan

63
Summary
  • Initiation of a project
  • Statement of Scope Objectives
  • Data collection methods
  • Feasibility Study
  • Feasibility Report

64
  • End of Lecture
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