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ORGANIZATION THEORY AND DESIGN
Information Technologies and Knowledge Management (IT&KM)
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IT&KM
• Information technology and knowledge management are essential components of successful organizations.
• Managers now spend at least 80% of their time actively exchanging information.
• They need this information to hold the organization together.
• It provides an a strategic advantage and examines the way it affects organizations designs and inter-organizational relationship.
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IT&KM
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IT&KMInformation Technology Evolution
The information technology application to organization has gone through a number of phases.
Initial focus was on operational side or improvement of machine room efficiency.
The goal was to reduce labor cost by having computer technology.
These systems were known as Transaction Processing System (TPS)
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IT&KMInformation Technology Evolution
• Two new concepts have been added in recent years.– Data Warehousing– Data Mining– Management Information System (MIS)– Information Reporting System– Executive Information System (EIS)– Decision Support System (DSS)
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IT&KMInformation Technology EvolutionInformation Technology as Strategic WeaponInternal Applications:• Networking: It links people and departments within a
particular building or cross corporate offices• Intranets: A private company wide information system
that uses the communication protocol and standards of internet and www but accessible only to the employees of he company.
• Enterprise Resource Planning: It collects, process and provide information about company’s entire enterprise, including order processing, product design, purchasing, inventory, manufacturing, distribution, human resources, receipt of payments, and forecasting of future demand.
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IT&KMInformation Technology EvolutionInformation Technology as Strategic Weapon
External Applications:• Extranet: It gives access to key partners,
suppliers, customer, • Intranets: It essentially augments or replace the
swapping of products or money with the exchange of information between computer systems. E-commerce can be carried out between businesses or between a business and consumer.
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IT&KMStrategic Use of Information Technology
In adopting any of the two competitive strategies the companies can use the information technology.
A close touch with suppliers and buyers through information technology to sustain close relationship with the supplier and provide goods according to the requirement of the buyer.
Kansas City Power Light … Example
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IT&KMStrategic Use of Information Technology
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IT&KMStrategic Use of Information Technology
Low-cost Leadership:
• The most obvious way of using information technology for low-cost leader is through improving the operational efficiency. It can be achieved through introducing ERP System.
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IT&KMStrategic Use of Information Technology
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IT&KMStrategic Use of Information Technology
Differentiation:
• A way to differentiate a company to lock in customers with information technology.
• Improving customer service can also make the product of a company different. Like reminding the customers about a service when it is due.
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IT&KMStrategic Use of Information Technology
E-Commerce:
• Many companies are using information technology as a strategic weapon is through e-commerce. This can be useful for low-cost or a differentiation strategy.
• It is a broad term which is basically means any commercial activity that takes place by digital process over a computer network.
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IT&KMNew Options for Organization Design
Network Organization Structure:
In that one engages a number of subcontractors that performs work on behalf of the company
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IT&KMNew Options for Organization Design
Network Organization Structure:
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IT&KMNew Options for Organization Design
Inter-organization Relationship:
It goes beyond network organization structure and engages outside firms as their partners.
A firm may be connected to a number of manufacturers and providing goods according to the need of the customer.
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IT&KMNew Options for Organization Design
Inter-organization Relationship:
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IT&KMNew Options for Organization Design
IT Impact on Organization Design:
• Smaller Organization
• Decentralized Organization Structures
• Improved External and Internal Coordination.
• Additional Professional Staff and Departments’
• Greater Employee Participation.
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IT&KMKnowledge Management
It is a new way to think about organizing and sharing organization’s intellectual and creative resources.
It refers to the efforts to systematically find, organize, and make available a company’s intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organization activities are build on what is already known.
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IT&KMKnowledge Management
Knowledge is not simply data, but it goes beyond that. It is basically a data linked with other information and converted into useful context for specific use.
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IT&KMKnowledge Management• Explicit Knowledge: is a formal, systematic
knowledge that can be codified, written down and passed onto others in documents or general instructions.
• Tacit Knowledge: Is based on personal experience, rule of thumb, and judgment. It includes professional know-how and expertise, individual insight and experience, and creative solutions that are often difficult to communicate and pass on to other.
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IT&KMApproaches to Knowledge Management
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IT&KMKnowledge Management
Mechanics for Explicit Knowledge Management:
• Data warehousing and Data Minig
• Knowledge Mapping
• Electronic Libraries
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IT&KM
Knowledge Management
Mechanism for Tacit Knowledge Management:
• Dialogue
• Learning Histories and Story Telling
• Communities of Practice
