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!