MODULE
– 3
KNOWLEDGE BASED SYSTEMS
Knowledge Management
Knowledge management is the name of a concept in which an enterprise
consciously and comprehensively gathers, organizes, shares, and analyzes its
knowledge in terms of resources, documents, and people skills.
Knowledge management involves data mining and some method of
operation to push information to users. A knowledge management plan
involves a survey of corporate goals and a close examination of the tools, both
traditional and technical, that are required for addressing the needs of the
company. The challenge of selecting a knowledge management system is to
purchase or build software that fits the context of the overall plan and
encourages employees to use the system and share information.
The goal of a knowledge management system is to provide managers with
the ability to organize and locate relevant content and the expertise required
to address specific business tasks and projects. Some knowledge management
systems can analyze the relationships between content, people, topics and
activity and produce a knowledge map report .
• Knowledge Management activities are:
1. Gathering
2. Organizing
3. Sharing
4. Analyzing &
5. Disseminating Information to improve organization’s structure.
Knowledge Management
Knowledge is accumulated through experience and kept at/in:
(a) People‟s mind
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(b) On Paper Notes
(c) Discussion Transcript
Knowledge Management puts procedures and technologies for the following:
(a) Transfer individual knowledge into databases.
(b) Recognize most relevant information.
(c) Allow employees to easily access the knowledge
The Implications of Knowledge Management For...
• Database Users: From business class users to the general public,
database users will enjoy a new level of interaction with the KM system
including just‐in‐time knowledge that delivers precise relevant
information on demand and in context. More complex, smart systems
will translate to optimal usability and less time spent searching for
relevant information. For example, data analysts will enjoy simplified
access and more powerful tools for data exploitation. The use of
knowledge bases can reduce customer service costs by providing
customers with easy access to 24/7 self service via smart systems that
reduce the need to contact customer service or technical support
staff. Database users may even create customized views of knowledge
bases that support their needs.
• General Public: Even if they are not interacting directly with a
knowledge base, the general public will benefit from the secondary
effects of improved customer service due to faster access to more
accurate information by service providers.
• Database Developers: The design and development of knowledge
based systems will be considerably more complex than current database
development methods. Developers must consider the overall technical
architecture of the corporation to ensure seamless interoperability. The
use of standardized metadata and methods will also facilitate both intra‐
corporate and inter‐corporate interoperability. Making effective
physical storage and platform choices will be equally more
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complex. Both knowledge base developers and administrators must
understand the role of the knowledge base in the overall KM system.
• Database Administrators: Database Administrators will evolve into
Knowledge Managers. The knowledge base will store and maintain
corporate memory and Knowledge Managers will become the
gatekeepers of corporate knowledge. The lines between technical roles
such as Web Developer, Data Analyst or Systems Administrator will blur
as these systems merge into and overlap with KM systems. DBAs will
need to have some knowledge about each of these disciplines.
Intelligent Support Systems
An intelligent system is a machine with an embedded, Internet‐
connected computer that has the capacity to gather and analyze data
and communicate with other systems.
Requirements for an intelligent system include security, connectivity,
the ability to adapt according to current data and the capacity for
remote monitoring and management.
Essentially, an intelligent system is anything that contains a
functional, although not usually general‐purpose, computer with
Internet connectivity. An embedded system may be powerful and
capable of complex processing and data analysis, but it is usually
specialized for tasks relevant to the host machine.
Intelligent systems exist all around us in point‐of‐sale (POS) terminals,
digital televisions, traffic lights, smart meters, automobiles, digital
signage and airplane controls, among a great number of other
possibilities.
Intelligence
• Intelligence, as the ability to acquire, retrieve and use knowledge in a
meaningful way. It includes both raw and refined knowledge and the
ability to memorize, recall facts, and express emotions. Components of
Intelligence are :‐
a) Learning: It is the process of acquiring knowledge, skills, experience, or
values by study, experience, or training.
b) Reasoning: It refers to the ability of drawing conclusions that are
appropriate to the situation in hand.
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c) Understanding: It refers to the identification of the significance,
interpretation, or explanation for certain data or information. To
generate new idea or to conceive new perspectives on existing ideas.
Simply, put, it is the ability to employ knowledge.
d) Creativity: It is the ability to generate new ideas or to conceive new
perspectives on existing ideas. The creativity process involves producing
ideas, which are original and potentially useful.
e) Intuition: It is the inner knowledge without rational processes and
without being aware of how we know, . Essentially, intuition is an
uncanny sixth sense that tells people that whether they are right.
Artificial Intelligent
A computer can perform work at extremely fast speeds. It can also be
programmed with a set of rules or guidelines, thereby enabling it to draw
certain types of conclusions based on the input it receives. When computer
systems combine these two abilities to perform in ways that would be
considered intelligent if observed in humans, it is commonly referred to as
artificial intelligence (A/).
In other words, AI is concerned with creating intelligent devices controlled by
intelligent software programs ‐‐ machines that think and act like humans. The
study of how to make computers do things at which, at the moment, people
are better.
Domains of AI
1. Games Playing : The greatest advancements of AI have been achieved in the
field of game playing. For e.g computer chess programs are now capable of
beating human.
2. Speech Recognition: Computer speech recognition has reached a practical
level for limited purposes/ For example, airline organizations have replaced
keyboard for fight information by a system using speech recognition of flight
numbers and city names.
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3. Expert system : Computers are programmed to make decisions in real‐life
situation for e.g, some expert systems help doctors diagnose diseases based on
patient’s symptoms.
4. Robotics: It deals with programming computers to see, hear and react o
other sensory . In the area of robotics, computers are now widely used in
assembly plants, but they are capable of only limited tasks. The have great
difficulty identifying objects based on appearance or feel, and they still move
and handle objects clumsily.
5. Neural Networks: are computing systems, which imitate human brain
through a network of highly, interconnected processing elements. These
processes give these networks learning capabilities and enable them to
recognize and to understand complex patterns. Neural networks are applicable
in areas where a relationship between the predictor variables and predicted
variables exists such as medicines, stock market, monitoring machinery and
engine management.
Data Warehouse
• Data warehouse is a logical collection of information , gathered from
many different database and thus a data warehouse may be called as a
large database containing historical transactions and other data.
• The purpose of data warehouse is permanent storage of detailed
information. Data entered into a data warehouse needs to be processed
to ensure that it is clean, complete and in the proper format. Data
warehouses are intended as permanent storage facilities.
• Many a times, a data warehouse is subdivided into smaller repositories
called data marts. A data marts is a subset of a data warehouse, in
which only the required portion of the data warehouse information is
kept.
• To make the data warehouse useful, organizations must use BI tools to
process data from these huge database into meaningful information.
There database are used for Data Mining and online analytical
processing (OLAP)
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• The organisations that develop business intelligence(BI) tools create
interface that help the mangers to quickly grasp business situations.
• Characteristics of a data warehouse as set forth by William Inmon:
Subject Oriented : Data warehouses are designed to help you analyze data.
For example, to learn more about your company's sales data, you can build
a warehouse that concentrates on sales. Using this warehouse, you can
answer questions like "Who was our best customer for this item last year?"
This ability to define a data warehouse by subject matter, sales in this case,
makes the data warehouse subject oriented.
Integrated : Integration is closely related to subject orientation. Data
warehouses must put data from disparate sources into a consistent format.
They must resolve such problems as naming conflicts and inconsistencies
among units of measure. When they achieve this, they are said to be
integrated. Or A data warehouse integrates data from multiple data
sources. For example, source A and source B may have different ways of
identifying a product, but in a data warehouse, there will be only a single
way of identifying a product.
Non‐ Volatile : Nonvolatile means that, once entered into the warehouse,
data should not change. This is logical because the purpose of a warehouse
is to enable you to analyze what has occurred.
Time Variant : Historical data is kept in a data warehouse. For example, one
can retrieve data from 3 months, 6 months, 12 months, or even older data
from a data warehouse. This contrasts with a transactions system, where
often only the most recent data is kept. For example, a transaction system
may hold the most recent address of a customer, where a data warehouse
can hold all addresses associated with a customer.
DATA WAREHOUSE DIAGRAM
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Advantages of Data Warehouse
• A data warehouse provides a common data model for all data of
interest, regardless of the data's source. This makes it easier to report
and analyze information than it would be if multiple data models
from disparate sources were used to retrieve information such as
sales invoices, order receipts, general ledger charges, etc.
• Prior to loading data into the data warehouse, inconsistencies are
identified and resolved. This greatly simplifies reporting and analysis.
• Information in the data warehouse is under the control of data
warehouse users so that, even if the source system data is purged
over time, the information in the warehouse can be stored safely for
extended periods of time.
• Because they are separate from operational systems, data
warehouses provide retrieval of data without slowing down
operational systems.
• Data warehouses facilitate decision support system applications such
as trend reports (e.g., the items with the most sales in a particular
area within the last two years), exception reports, and reports that
show actual performance versus goals.
Data warehouses tend to have a high query success, as they have
complete control over the four main areas of data management
systems:
1. Clean data
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2. Indexes: multiple types
3. Query processing: multiple options
4. Security: data and access
Disadvantages of Data Warehouse
However, there are considerable disadvantages involved in moving data
from multiple, often highly disparate, data sources to one data warehouse
that translate into long implementation time, high cost, lack of flexibility,
dated information and limited capabilities:
• Major data schema transforms from each of the data sources to one
schema in the data warehouse, which can represent more than 50%
of the total data warehouse effort
• Data owners lose control over their data, raising ownership
(responsibility and accountability), security and privacy issues
• Long initial implementation time and associated high cost
• Adding new data sources takes time and associated high cost
• Limited flexibility of use and types of users ‐ requires multiple
separate data marts for multiple uses and types of users
• Typically, data is static and dated
• Difficult to accommodate changes in data types and ranges, data
source schema, indexes and queries
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DATA MINING
– Data mining (sometimes called data or knowledge discovery) is
the process of analyzing data from different perspectives and
summarizing it into useful information ‐ information that can be
used to increase revenue, cuts costs, or both. Data mining
software is one of a number of analytical tools for analyzing data.
It allows users to analyze data from many different dimensions or
angles, categorize it, and summarize the relationships identified.
Technically, data mining is the process of finding correlations or
patterns among dozens of fields in large relational databases.
– Data Mining had four main objectives :
1. Sequence or path analysis : Finding patterns where one event leads to
another.
2. Classification : Finding whether certain facts fall into predefined groups.
3. Clustering: Finding groups of related facts not previously known.
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4. Forecasting : Discovering patterns in data that can be lead to reasonable
predictions.
Data mining consists of five major elements:
• Extract, transform, and load transaction data onto the data warehouse
system.
• Store and manage the data in a multidimensional database
• system.
• Provide data access to business analysts and information technology
professionals.
• Analyze the data by application software.
• Present the data in a useful format, such as a graph or table.
Advantages & Disadvantages
Advantages/Benefit
• Predict future trends, customer purchase habits
• Help with decision making
• Improve company revenue and lower costs
• Market basket analysis
• Fraud detection
Disadvantages/Barriers
• User privacy/security
• Amount of data is overwhelming
• Great cost at implementation stage
• Possible misuse of information
• Possible in accuracy of data
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OLAP
On‐line analytic processing systems are multidimensional databases. These
systems allow analysis to display data in one or more of a number dimensions,
such as time, geographic region, product organisational department, customer,
or other factors. The data used by OLAP applications usually comes from a data
warehouse. While data warehouse focuses on storing huge amount of data
efficiently, OLAP systems are designed to make this data easy to analyse.
The OLAP application extracts information that is of interest to the users being
supported, aggregates this information, and make the information easily
accessible on a number of dimensions.
Emerging trends in Information Management Systems
1. CLOUD COMPUTING
• Cloud computing is the delivery of computing as a service rather than a
product, whereby shared resources, software, and information are
provided to computers and other devices as a utility (like the electricity
grid) over a network (typically the Internet).
VALUE
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• Cost efficient: Cloud computing depends on infrastructure that is rented
hence capital investment is normally zero compared to purchased
infrastructure that needs high capital investments. Moreover, software
licensing, upgrading and maintenance is normally done by service
providers hence a companies I.T expenses are lowered.
• Backup and recovery: All data is stored in a cloud hence backing up and
restoring is easier than data that is stored in a physical device.
Furthermore most cloud service providers are competent enough to
handle recovery of information.
• Automatic software integration: Software integration is normally done
automatically. Hence additional efforts need not be taken to customize
and integrate applications. Cloud computing also facilitates
customization of options at ease.
• Ease of access: Once you register with a cloud information can be
accessed anywhere where there is an internet connection.
• Quick deployment: Depending on the type of technology you need for
your business once you opt for cloud computing your system will be up
and running within a short period of time.
• Increased innovation: The low costs of entry to new markets offered by
cloud computing, levels the playing field for startup companies to
compete with traditional organizations and this increases competition.
The increased competition leads to increased innovation.
2. SOCIAL MEDIA AS A BUSINESS TOOL
• Social media sites are web‐based services that allow individuals to
construct a public or semi‐public profile within a bounded system,
articulate a list of other users with whom they share a connection, and
view and traverse their list of connections and those made by others
within the system.
APPLICATION
1. Blogs (e.g., WordPress)
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2. Social Networks (e.g., Facebook)
3. Microblogs (e.g., Twitter)
4. Wikis (e.g., Wikipedia)
VALUE
• Flexibility: ‐ It expands choice on what, when, and how to communicate
with the customers. It allows various ways through which a business can
interact with her customers. One can communicate at any time of day,
night, week, etc.
• Convenience and accessibility:‐ It is easy and quick in terms of
accessibility, reviewing, updating and editing whatever information is
passed to the customers. The organization can reach a wider audience
globally.
• Cost efficiency:‐ It is cheap to advertise and communicate with a
customer by use of social media since most of them are free as
compared to Print or Televised media.
• Customer Loyalty:‐ Social media could be the spark you are looking for
to attract attention to your site, product or service. It could also be used
to further build loyalty and long‐term relations with your audience.
RISKS/CHALLENGES
• Damage Reputation:‐ When you make a mistake offline, a few will know
but when you make a mistake in front of hundreds or thousands of you
online audience, most of them will know and it will damage your
reputation.
• Time waste:‐ Using social media for marketing and advertising could be
more time consuming than companies expect.
• Influence on workforce:‐ Social media can have a negative influence on
worker productivity. Employees may waste valuable time using social
media channels such as Facebook and Twitter. They can also use social
media to attack the company’s reputation
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• Complexity:‐ In order to get social media’s full effect, you need to
understand how it works, when and how to use it and which channels to
focus on depending on your end goal of using social media.
• Healthy of Users:‐ When social media is used excessively or in the wrong
way, it could have serious detrimental outcomes on both mental(Are our
Minds safe?) and even physical(Helps criminal minds find you) health of
individuals.
• Measuring its Success:‐ Marketers are still unsure how to calculate
social media’s ROI.
3. TOUCH SCREEN
А Touch Screen is an electronic visual display that can detect the presence and
location of a touch within the display area. Users interact with the device by
touching areas on the screen with a finger or hand.
APPLICATION
1. Game consoles.
2. All‐in‐one computers.
3. Tablet computers.
4. Smartphones.
5. Point of Sale
6. Medical Equipment
7. Industrial controls
8. Navigation
VALUES
• A touch screen is very intuitive as it is easy to use and understand.
• Save space as no keyboard or mouse is required.
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• Touching a visual display of choices requires little thinking and is a form
of direct manipulation that is easy to learn.
• Touch screens are the fastest pointing devices.
• Touch screens have easier hand eye coordination than mice or
keyboards.
• No extra work space is required as with other pointing devices.
• Having less or not buttons means that you can put more effort into
having a big screen
RISKS/CHALLENGES
• The screen has to be big enough to be able to touch the buttons without
missing
• Having a big bright screen and needing massive computing power to run
this means a very low battery life
• In direct sunlight it is much less efficient and most of the time very
difficult to read the screen
• If a touchscreen device were to crash the whole screen would be
unresponsive, and because of the lack of buttons operating it would be
very impossible
• The screens will get very dirty
• You have to be within arm’s reach of the device
• They usually cost more than ordinary devices
4. MOBILE MONEY TRANSFER
Mobile Money Transfer is a mobile phone based payment and money transfer
service allows users to deposit money into an account stored on their cell
phones, to send balances using USSD technology to other users (including
sellers of goods and services), and to redeem deposits for regular money.
Users are charged a small fee for sending and withdrawing money using the
service.
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APPLICATION
1. Mobile Wallet ‐ a convenient solution to receive, store, send money and pay
Merchants everywhere at anytime. It targets both banked and unbanked users
for daily usage.
2. Money Transfer ‐ a universal solution to transfer money from mobile phone
to mobile phone, domestically or abroad.
3. Air Time Transfer ‐ a smart solution to transfer air time domestically or
abroad, designed for commercial street reload or for private transfer.
4. Mobile Banking ‐ a solution to securely access to banking services like
statements, loans, bank transfers or trading tools through mobile.
VALUE
• Simple mobile access to money services, at anytime
• Full mobile banking experience for anybody
• Attractive for remittance: lower fees than traditional means of money
transfer
• Increase customer loyalty thanks to a personal money service
RISKS/CHALLENGES
• Fraud:‐ fake deposit SMS, death threats
• Network/Connectivity Problems – Inaccessible to users in areas with
poor or no carrier network coverage. Systems breakdown, also may lead
to delays
• Costs – Tariff charges for money transfer service are still high.
• Services for Special Populations eg elderly, illiterate or visually impaired
are unavailable
5. TELECOMMUTING
• Telecommuting refers to work undertaken at a location that reduces
commuting time (e.g. inside the home or at some other remote
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workplace) which is facilitated through a broadband connection and
computer or phone lines. Generally, it is working at home by using a
computer terminal electronically linked to one's place of employment.
APPLICATION
• Remote Access – Cable modems, wifi, broadband access, Remote Access
Servers (RAS) or Virtual Private Networks (VPN) are the hardware and
software combinations that allow employees remote access to the
corporate network.
• Virtual Offices ‐ They are hosted web‐sites that provide a variety of
services to bridge the communication gap between telecommuters and
office workers. At a basic level, these services provide employees with
email, chat forums, document management functions, workflow and the
ability to share calendars and contact lists.
• Timekeeping/Expense Reporting‐ It is an Internet‐based ASP for
professional service‐oriented businesses that have several offices in
different locations and want all employees entering data into one
system for client billing and management reporting.
• Web Conferencing ‐ an ideal way for companies to hold seminars and
training sessions, promote new products, give client presentations or
even hold virtual tradeshows with thousands of people attending.
VALUE
• Cost savings if a need for office space or office equipment or parking can
be reduced without transferring expenses elsewhere
• Increased job performance/productivity for certain types of tasks
• Improved employee morale and job satisfaction
• Improved leverage to recruit or retain highly skilled employees
• Reduction in unscheduled absenteeism/turnover
• Reduced influence of traffic jams and bad weather on productivity
• More control over working environment; fewer distractions
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• Increased familiarity with technology (computers, modems, fax
machines)
• Decreased neighbourhood crime because of more people being home
during daylight Hours
RISKS/CHALLENGES
• Reduced interaction among employees on key workplace issues
• Feelings of isolation from co‐workers and work events
• Frustration in trying to set meetings or deadlines with telecommuters
• Negative perceptions of expenses being spent to pay employees to
“stay home”
• The cost to manage around a telecommuter exceeding any cost savings
to be realized
• Worker dissatisfaction when some employees are selected and others
are not selected to telecommute
• Increased burden on managers and supervisors to manage
telecommuters and the work they are getting done
6. Value Chain in E‐commerce
• VALUE CHAIN : a way of organizing the activities of a business so that
each activity adds value (value added activity) or productivity to the total
operations of the business.
• It is a strategic tool for identifying how the critical components of a
business tie together to deliver value for the business across the value‐
chain process.
• Business receive raw materials as input, add value to them through
various processes, and sell the finished product as output to customers.
This means that organizations are open systems. They do not consist of
isolated sets of function. They are a chain of value‐creating activities that
assure competitive advantages by the way they deliver value to the
customers. A communication process that extends from a firm backward
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to suppliers and forward to customers ties all sorts of activities together
– therefore, the value chain
Value chain activities are divided into two activities:
1. Primary Activities
2. Support Activities
Primary Activities of a business are:
1. Inbound Logistics: These are procurement activities‐ vendor selection,
comparative shopping, negotiating supply contracts and just‐in‐time
arrival of goods. They represent the supply side of the business.
2. Operations: This is the actual conversion of raw materials received into
finished products. It includes machining, packaging, assembly,
equipment maintenance, testing, printing and facility operations. This
production activity provides added value for the marketing function.
Operational activities are the point in the value chain where the value is
added.
3. Outbound Logistics: This activity represents the actual storing,
distributing, and shipping of the final product. Its involves warehousing,
materials handling, shipping and timely delivery to the ultimate retailer
or customer.
4. Service: This activity focuses on after‐sale service to the customer. It
includes testing, maintenance, repairs, warranty work, and replacement
parts. The output of this activity means satisfied customers, improved
image of the product and the business and potential for increased
production, sales and so on.
5. Marketing and Sales: It includes advertisement, product promotion,
sales management, identifying the product’s customer base, and
distribution channels.
Support Activities of a business are :
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1. Corporate Infrastructure: This activity is the backbone of the business
unit. It includes general management, accounting, finance, planning,
legal services, and quality management.
2. Human Resources: This is the unique activity of matching the right
people to the job. It involves recruitment, retention, career path
development, compensation, training and development, and benefits
administration.
3. Technology development: This activity adds value in the way it
improves the product and the business processes in the primary
activities. The output of this activity contributes to the product quality,
integrity, and reliability, which make life easier for the sales force and for
customer relations.
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