E-Commerce and the Transformation of Information

MD853

November 20, 2004

Today• Logistics

– Lunch questions (individual or group option)– Final paper –quick review/questions– Course evaluation (BC) and Saturday format feedback (Cronin)

• Knowledge Management, E-Learning and Online Information Content (e-health industry)

• Guest Speakers– Chuck Moran, CEO and Jerry Nine, EVP at Skillsoft– Chris Messina, CEO at Body1– Gigi Wang, IDC

• Preliminary analysis of survey responses (more to come via course web page posting)

• Wrap up

Knowledge Management Defined

Organizing and effectively deploying the intellectual assets of an organization

E-Learning (Variously) Defined

• Education via the Internet, network, or standalone computer.

• Network-enabled transfer of skills and knowledge

• E-learning refers to using electronic applications and processes to learn.

• E-learning applications and processes include Web-based learning, computer-based learning, virtual classrooms, and digital collaboration.

The Enduring Challenge

• How do you turn data, skillsets and information into knowledge with strategic value?– Role and limits of vendor products and software tools

– Role of the Internet and the web• Capturing and organizing data

• Communicating what employees and organizations know tacitly and explicitly

– The human dimension• Critical to the success or failure of any knowledge-based

system

Components of “Knowledge”• Data

– Statistics, observations, other objective and quantifiable metrics

• Information– Data that informs decisions and leads to action

• Knowledge– Information or experience that has been

interpreted by applying (human) intelligence• Tacit• Explicit• Cultural

Web Deployment Drove Ad-Hoc KM• Universally available platform

– Standardized front end and ease of retrieval and (gradually) search

– Distributed, low cost access

• Organizational drivers– Grass roots implementation from small group to larger

divisions– Project and need specific—quick results– Visible ROI for early web investments in information

sharing

• Issues and barriers– Lack of central control & corporate consistency– Not compatible with many commercial solutions

Commercial KM Solutions Evolved From “Business Intelligence” Tools

A diverse category of different tools enabling managers to make better decisions and thus improve their business processes

• Decision support systems (DSS)• Executive information systems (EIS)• Reporting and logging tools• Data mining products• CRM systems• KM

ERP Absorbed KM and E-Learning Modules

• Enterprise Resource Planning programs– Planning and Scheduling of Resources– Have (70’s) roots in Materials Resource

Planning• Materials Requirement Planning (MRP)• Manufacturing Resource Planning ( MRP II)

– Enabled by Data Base Management systems• Supply Chain Management• Value Chain Management

– More Recently Integrated with Internet/Web and with KM and Information Management Systems and E-Learning

Enterprise Drivers for KM Implementation

• Management perceives a Problem and an Opportunity– The “interface” problem – systems don’t communicate

• Lack of integration of disparate systems

• Difficulty of reconciling data from disparate systems

• Delay in processing transactions

• The opportunity to do more for less – Reduce cost of interfaces

– Improve speed of responses and efficiency of processes

– Increase customer satisfaction

– Make smarter decisions about products and strategy

KM Expectations May Not Match Reality

• One system can integrate all data from all sources• Seamless interfaces are possible• Frictionless transactions• Instantaneous data access• Information leading to the right action/decision• Transforming that information into knowledge—

intellectual capital for the company

Barriers to Full Deployment of Commercial KM Systems

• Very high cost of implementation– Dollars– Person Power

• Often forces a change in process

• Requires extensive training of employees

• Takes a long time to implement

• Sketchy track record of ROI

Why does it fail so often?• Failure to define requirements going in.• Poor selection of package and platform

– Software, hardware, DB

• Inadequate resources budgeted for the transition– Money and People

• Resistance to Change– Easier for you to adapt to it, than it to you.– Some processes will need to change– Lack of end user “buy-in.” Stake holders.

• No Realistic Plans or Process to Measure Results– Lack of ROI metrics and measurement

What leads to success?• A company that understands and carefully

documents its needs. • Adequate resources for the project• Flexibility to adapt existing processes• Change management commitment

– Enlist, empower, communicate, lead, listen, train

• Train and train some more• Follow through, evaluate and adjust (don’t abandon)

How can we apply these factors to E-Learning?

The Rise of E-Learning• "Online learning has been in use for 20 years in one

form or another, but the Web has shifted e-learning into hyper-adoption. By 2005, e-learning will be the most -

used corporate application on the Web." Gartner 2002

16

Enterprise E-Learning Drivers

Rapid Delivery

On Demand

Resources

Scalability

OrganisationalEfficiency

CommunityPerception

LowerDeliveryCost Per

Unit

Perceived Benefits

Potential Barrier

17

Individual Perceptions of E-Learning

SelfRegulation

MultimediaSimulations

Convenience &

Flexibility

Privacy

Easier Development

Tracking

No Peer /InstructorSupport

UnfamiliarTechnology

Lack ofFeedback

Miss out On Networking

Perceived Benefits

How To Bridge the Gap

• Importance of maintaining options that reflect individual learning styles and needs– One mode not likely to fit all

• Develop clear learning goals and metrics that match enterprise strategy– Don’t let technology drive implementation

• Put incentives in place to motivate adoption and innovation

Are We Smarter Yet?• Many early E-Learning and KM adopters

assumed that there was intrinsic value in moving training online and in aggregating all types of data into Internet-based systems– Better integration of knowledge and learning

remains key to unlocking that value and changing organizations

• Integration of Internet and proprietary commercial KM solutions still at primitive stage

• E-Learning (Learning Management Systems) still not well integrated with overall KM approaches

“Best Practices” for Implementation

• Clear top-down management commitment

• Identify core corporate goals and strategic advantages desired

• Evaluate and select commercial package that can be integrated with existing programs

• Make an implementation plan with realistic timelines

– and allocate explicit resources for expansion, support and evaluation

• Present plans to employee groups for feedback/acceptability

• Plan for user training and orientation to the new system

• Phase in through selected pilots– Evaluate, adjust and upgrade based on experience and adoption curve

• Measure, measure, measure!