A framework for the improvement of knowledge intense business processes

Peter Dalmaris 13-12-2005 Room BC412 Department of Industrial and Systems Engineering Polytechnic University of Hong Kong

2005

Introduction

What is the KBPI framework?

Knowledge-Based Process Improvement

Epistemology

The KBPI framework is a tool for the improvement of knowledge-intense business processes.
Ontology

It is based on Karl Poppers evolutionary epistemology; this provides the theoretical foundations. It uses a business process ontology; this provides a language for describing business processes. It applies an improvement methodology; this provides the practical steps of improvement.

Conclusions

Questions

Methodology

2005

Introduction

What is the KBPI framework?

Knowledge-Based Process Improvement

Conclusions

Questions

Methodology

Ontology

Epistemology

2005

Introduction

How does it work?

n

Ontology

n n n

Conclusions

Targets knowledge-intense business processes I.e. Loan approvement or R&D processes Analyses its current knowledge-related attributes Identifies areas of possible improvement Proposes a plan for improving performance by improving the management of process knowledge
2005

Questions

Methodology

Epistemology

Introduction

What is a knowledge-intense business process?

Process complexity: High in process steps, involved agents, interdependency, process dynamic.

Ontology

Epistemology

Methodology

Process intensity: Strong in contingency, decision scope, agent innovation, half-life, agent impact, learning time.
Eppler, DMJ, Seifried, PM & Ropnack, A 1999, 'Improving Knowledge Intensive Processes through an Enterprise Knowledge Medium', SIGCPR'99, ACM, New Orleans, USA, pp. 222-30 2005

Conclusions

Questions

Agenda: Discuss the components of the KBPI

1.E PISTEMOLOGY 2.ONTOLOGY 3.M ETHODOLOGY

2005

LEVEL 1: EPISTEMOLOGY
Introduction

Why involve epistemology?

One needs to understand knowledge before speaking about knowledge. Epistemology is the branch of philosophy that studies knowledge. It answers the basic questions:

Epistemology

Methodology

Ontology

n What

is knowledge? n Where is knowledge? n How is knowledge created?

n

What about data and information?

Conclusions

Questions

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Introduction

Understanding knowledge: what is it?

Justified true belief. (Goldman, Nonaka and Takeuchi) Understanding based on experience. (James 1907)

LEVEL 1: EPISTEMOLOGY

Epistemology

Conclusions

Questions

Methodology

Knowledge can be thought of as the body of understandings, generalizations, and abstractions that we carry with us on a permanent or semi-permanent basis and apply to interpret and manage the world around us ... we will consider knowledge to be the collection of mental units of all kinds that provides us with understanding and insights. (Wiig 1998)

Ontology

TOO ABSTRACT TOO GENERAL

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Introduction

Understanding knowledge. What is it?

My definition:

LEVEL 1: EPISTEMOLOGY

Epistemology

Knowledge is solutions to problems

Problems drive knowledge creation knowledge consists of the solutions that drove its creation!

Ontology

Conclusions

Heavily influenced by Karl Poppers evolutionary epistemology

Questions

Methodology

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Introduction

Understanding knowledge. What is it?

Knowledge
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LEVEL 1: EPISTEMOLOGY

Epistemology

Knowledge is solutions to problems. Therefore:

1. Enable POP in your Gmail account. 2. Open Netscape Mail 7.x. 3. Click 'Edit,' and select 'Mail & Newsgroups Account Settings...' 4. Click 'Add Account...,' and click 'OK.'

Ontology

Information
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Methodology

Data

Conclusions

in all cases, knowledge, information and data must be considered in context.

2005

Questions

Introduction

Understanding knowledge. Where is it?

Popper proposed 3 ontological worlds of human experience: WORLD 1: The world of material objects. Trees, chairs, our bodies belong here. WORLD 2: The world of mental states. Beliefs, dispositions, pleasure and dislikes belong here. WORLD 3: The world of books, words, statements and other such immaterial human creations. Theories, arguments, symphonies and paintings belong here. Material Immaterial but subjective Immaterial but objective

LEVEL 1: EPISTEMOLOGY

Conclusions

Questions

Methodology

Ontology

Epistemology

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Introduction

Understanding knowledge. Where is it? Poppers 3

ontological worlds

LEVEL 1: EPISTEMOLOGY

Conclusions
Diagram used with permission from Dr Joe Firestone, 2004 KMCI

Questions

Methodology

Ontology

Epistemology

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Introduction

Understanding knowledge. How is it created?

Poppers tetradic schema

LEVEL 1: EPISTEMOLOGY

Ontology

Epistemology

Conclusions

Questions

Methodology

P: a problem proposition TT: a tentative theory (solution) EE: error elimination (finding problems with the P and the TT)

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Introduction

Understanding knowledge. No knowledge is perfect

Poppers tetradic schema is based on the tradition of fallibilism. Fallibilism: The idea that while universal knowledge claims cannot be confirmed or verified by empirical testing, they can be falsified, but also not with certainty.
Firestone, J., McElroy, M., 2003, Key Issues in the New Knowledge Management, page 228

LEVEL 1: EPISTEMOLOGY

Epistemology

Ontology

Socrates: All I know is that I know nothing Popper: There are no authoritative sources of knowledge, and no source is particularly reliable.

Conclusions

Questions

Methodology

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Introduction

Understanding knowledge. Data and information.

Signals are captured by sensor(s) and turned into data Information is constructed from the data New knowledge is applied

LEVEL 1: EPISTEMOLOGY

Epistemology

World broadcasts purposeless and contextless signals

Information is processed using knowledge to enable action or knowledge creation

Ontology

SIGNALS

World
Methodology
Sensors

Data

Information Knowledge

Information

Knowledge

Problem context Action isData taken on the world

Conclusions

Questions

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Physical action

TOO ABSTRACT TOO GENERAL

Knowledge
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Mental action

Introduction

What is knowledge management?

LEVEL 1: EPISTEMOLOGY

Knowledge management is the managerial activity charged with the responsibility of managing the organisational knowledge lifecycle in support of the organisations objectives and business processes. PROBLEM
triggers

Ontology

Epistemology Epistemology

su pp or t

Organisational Learning

cr

ea

Methodology

te s

Conclusions

Organisational Memory

commits

Organisational Knowledge

Questions

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LEVEL 1: EPISTEMOLOGY
Introduction

Epistemological assumptions
Most knowledge useful to business processes can be objectified Knowledge can become separated from its creator Fallibilism There is no perfect knowledge More emphasis on the knowledge objects (world 3) Of course, personal (world 2) knowledge are still very important

Epistemology Epistemology

Methodology

Ontology

Knowledge must be challenged relentlessly

Less emphasis on the knower

Conclusions

Questions

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Discuss the components of the KBPI

1.E PISTEMOLOGY 2.ONTOLOGY 3.M ETHODOLOGY

2005

LEVEL 2: ONTOLOGY
Introduction

The business process ontology. What is ontology?

In Information Science, an ontology is the product of an attempt to formulate an exhaustive and rigorous conceptual schema about a domain.
http://en.wikipedia.org/wiki/Ontology_(computer_science)

Epistemology Epistemology

Ontology

An ontology defines the vocabulary with which queries and assertions are exchanged among agents. Ontological commitments are agreements to use the shared vocabulary in a coherent and consistent manner. A commitment to a common ontology is a guarantee of consistency, but not completeness, with respect to queries and assertions using the vocabulary defined in the ontology.
Tom Gruber, http://www-ksl.stanford.edu/kst/what-is-an-ontology.html

Conclusions

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LEVEL 2: ONTOLOGY
Introduction

Difference between taxonomy and ontology.

Taxonomy is the science of classification or a classification
http://en.wikipedia.org/wiki/Taxonomy

Ontology

Epistemology Epistemology

In Information Science, an ontology is the product of an attempt to formulate an exhaustive and rigorous conceptual schema about a domain.
http://en.wikipedia.org/wiki/Ontology_(computer_science)

Conclusions

Questions

Methodology

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LEVEL 2: ONTOLOGY
Introduction

The business process ontology. Why ontology?

I needed a way to formally describe knowledge-intense business processes.

Epistemology Epistemology

Ontology

1. An ontology provides a formal conceptual schema/ model of a given domain. 2. We need a formal description of a business process before we can do any work 3. We need a vocabulary and syntax before we can communicate.

Conclusions

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LEVEL 2: ONTOLOGY
Introduction

Business process ontology. Current revision.

Conclusions

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Methodology

Ontology

Epistemology Epistemology

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LEVEL 2: ONTOLOGY
Introduction

Definitions (partial)
Knowledge object: A knowledge object is knowledge that has been objectified and exists in world three. In organisations, such knowledge objects are strategic plans, product specifications, marketing ideas etc. Knowledge Path: A Knowledge Path is concerned with the set of functions and their sequence of execution that perform some desired knowledge processing on a knowledge object. This knowledge processing may be an intermediate or a final deliverable of a knowledge-intensive business process. Knowledge Transaction: Knowledge transactions refer to the exchange of knowledge objects between actors within a business process. The word 'actor' is used here in its broad sense to mean humans or machines that can be receivers or transmitters of the knowledge objects. When a knowledge object is transferred from one actor to another, a transaction occurs.
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Conclusions

Questions

Methodology

Ontology

Epistemology Epistemology

LEVEL 2: ONTOLOGY
Introduction

Abstract classes
Used in support of the normal classes. n

Epistemology Epistemology

Knowledge Object types

Ontology

Structural Functional Environmental Etc.

n n n n

Knowledge Process types Transaction Types Containers and Media Medium Types

Conclusions

Questions

Methodology

2005

Discuss the components of the KBPI

1.E PISTEMOLOGY 2.ONTOLOGY 3.M ETHODOLOGY

2005

LEVEL 3: METHODOLOGY
Introduction

Why methodology?
I need a recipe of how to improve a business process. This recipe should tell me how to: 1. Collect the data that describes the process 2. Analyse the data 3. Produce the results all in a systematic and disciplined way.

Conclusions

Questions

Methodology

Ontology

Epistemology Epistemology

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LEVEL 3: METHODOLOGY
Introduction

The KBPI method

Audit: Probing, current state of the process (AS IS) Analysis: Improvement

Epistemology Epistemology

Process Members

Functions Knowledge Knowledge Knowledge Transactions Tools Paths

Ontology

Knowledge Knowledge Transformations Objects

Environment: constraints, policies, targets

Identify potential improvement areas (desired process performance)

improvement configuration of process classes

Methodology

Design: Result (AS COULD)

Conclusions

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Introduction

Audit procedure

LEVEL 3: METHODOLOGY

Conclusions

Methodology

Ontology

Epistemology Epistemology

Audit
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LEVEL 3: METHODOLOGY
Introduction

Analysis: two levels

Conclusions

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Ontology

Epistemology Epistemology

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Function level procedure

Operations on Function class instances

LEVEL 3: METHODOLOGY

F1

F1: Find all knowledge intensive functions

Epistemology Epistemology

F2 F3 F4

For each Function class instance: F2: Designate performance descriptors. F3: Determine current performance. F4: Determine desired performance.

Operations on other class instances

Ontology

KT

For each of Process member, Knowledge Object, Knowledge Transformation and Knowledge Tool class instances : KT: Define the Knowledge Tool instance. KO KO: Define the Knowledge Object instance. KX: Define the Knowledge Transformation instance. PM: Define the Process Member instance. Determine their Critical Knowledge Success Factors. For each of KT, KO, KX, PM, evaluate their current status and the impact of their performance on the Function performance. For each non-alignment:

PM KX

Methodology

Conclusions

Error discovery and solution design

E KX

E: Find the likely causes. S: Design a possible solution.

Questions

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Process level procedure

Operations on Knowledge Path class instances

LEVEL 3: METHODOLOGY

KP 1

KP1: Find all Knowledge Paths

Epistemology Epistemology

KP 2 KP 3 KP 4

For each Function class instance: KP2: Designate performance descriptors. KP3: Determine current performance. KP4: Determine desired performance.

Operations on other class instances

Ontology

For each of Knowledge Transaction and Knowledge Tool class instances : KT TR For each of KT, TR, evaluate their current status and the impact of their performance on the Knowledge Path performance.

Methodology

Conclusions

Error discovery and solution design

E KX

For each non-alignment:

Questions

2005

Tools used
Epistemology Epistemology

LEVEL 3: METHODOLOGY

1. Protg, an open-source ontology editor For capturing and organising the process audit data. For enforcing the process ontology For visualising the process model Uses standard BPML notation developed by BPMI.org

Methodology

Ontology

2. MS Visio

For visualising some of the instances of the business ontology

Conclusions

Questions

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Introduction

Tools: Protg ontology editor

LEVEL 3: METHODOLOGY

Conclusions

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Methodology

Ontology

Epistemology Epistemology

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LEVEL 3: METHODOLOGY
Introduction

Tools: Graphic modeller

Conclusions

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Ontology

Epistemology Epistemology

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Introduction

Concluding remark 1: Innovation

n

Epistemology Epistemology

Innovation is in the application of an evolutionary epistemology.

I

Ontology

now have a better idea of what knowledge is.

Methodology Methodology

Innovation is in the use of an ontology in business processes.

I

can now describe knowledge-intense business processes using a formal language

Conclusions

Questions

2005

Introduction

Concluding remark 2: Business ontology

n The

Epistemology Epistemology

Methodology Methodology Ontology

business ontology will be improved with time. n An improved business ontology will allow for a more precise definition of the business process
This

will allow for more accurate analysis and tentative solutions (improvement recommendations)

Conclusions

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Introduction

Concluding remark 3: Tools

n n

Epistemology Epistemology

Methodology

Ontology

Much of the methodology can be automated/ facilitated with appropriate use of tools. The KBPI based on the use of Protg is a first step towards a knowledge engineering software suite. The second (small) step is the extension of Protg to automate part of the analysis procedures. I am working on this now (in my spare time). The third step is a secret.

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Introduction

Thanks to:
n n n

Epistemology Epistemology

Methodology

Socrates of Athens, and Sir Karl R. Popper for their clarity and wisdom Dr Eric Tsui for his advice over the years and invitation to PolyU Dr Ken Dovey (University of Technology, Syndey), Dr Bill Hall (Tenix Defence, Melbourne), Dr Bob Smith (Tall Tree Labs) My dissertation examiners for their valuable critique towards eliminating my errors.

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Ontology

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Introduction

Epistemology Epistemology

Questions
Contact me: peter.dalmaris@futureshock.com.au 94906537 (In Hong Kong until January 2) +61414685581 (In Sydney) Fax: +61 2 821 259 38

Conclusions

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