INFORMATION AND KNOWLEDGE

MANAGEMENT
PBA4808

PART 1: TOPICS 1 & 2

Table of contents Outline
1
Introduction
2
Course Outcomes
3 Topics 1 & 2
4
Conclusion

2
2
 Specific Outcomes
 Explain information and management information systems as a
resource
 Discuss the nature of management information systems in the
Digital World.
 Explain the ethical issues associated with the use of information
and information systems in the organisations and the Digital
World.
 Explain how Enterprise Information Systems impact on
organisational business processes and value chains.
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 Specific Outcomes: ………………………..Cont .
 Explain how Supply Chain and Customer Relationship Management
impact on strengthening of Business-to-Business relationships.
 Explain the relationship between data, information and knowledge.
 Evaluate decision making from an information perspective and distinguish
among information deliveries.
 Discuss the separation and convergence of information – strategic and
operational – and of management issues.
 Identify key management issues relating to information management

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Is There A Difference Between Information And Data?

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 Definitions
Data-171152(structured, semi-structured, machine data)
Information: Cyril’s DOB

Knowledge workers are well educated professionals who create, modify, and/or
synthesize knowledge as a fundamental part of their job.
Knowledge work is defined as work which is intellectual, creative, and non-routine, and
which involves the utilisation and creation of knowledge (Hislop et al., 2018). Knowledge
work includes work in a wide range of professional areas, such as information and
communication, consulting, pharmacology, and education (Kuusisto and Meyer, 2003).
Knowledge assets are all the underlying skills, practices, principles, formulas, methods,
heuristics, and intuitions. All databases, manuals, reference works, textbooks, diagrams,
displays, computer files, proposals, plans. From an organizational point of view, properly
used knowledge assets enable an organization to improve its efficiency, effectiveness,
and, of course, profitability.
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 Definitions………….cont.
Knowledge assets can be Explicit which reflects to the knowledge that
can be documented. Tacit knowledge assets reflect the processes and
procedures that are located in a person’s mind .

Knowledge management refers to the processes an organization uses

to gain the greatest value from its knowledge assets.

A knowledge management system is typically not a single technology

but rather a collection of technology-based tools that include
communication to enable the generation, storage, sharing, and
management of knowledge assets.

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What Is The Difference Between Information Systems And
IT?

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 The Difference Between Information Systems and
Information Technology
An information system is the combination of people and information
technology that create, collect, process, store, and distribute useful
data/information.

Information technology includes hardware, software, and

telecommunications networks.

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What Is Ransomware? How Can Organizations Prevent It?

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 Classification Of Information Systems

Transacting processing systems

Management information systems
Decisions support systems

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 Examples Of Information Systems
Payment management systems
Online reservations systems
Health information systems

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 Something To Think About

What are the threats to your information systems?

What are the threats facing an online banking system?

What are the benefits of having an information systems in your

organization?

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 Benefits Of Information Systems
Faster processing
Improved efficiencies
Competitive advantage
Improved customer service

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 Information System Threats
Power Supply
IT Skills shortage
Hardware failure
Hackers

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Information Systems Development/ Acquisition Strategies
In-house
Off-the shelf/external acquisition
Outsourcing
Open source

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 Let’s Discuss

What are the advantages of an in-house developed system vs an off-the

shelf packages?

Explain the difference between outsourcing and external acquisition?

List some of the benefits of outsourcing

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 Off-the Shelf Packages
Examples: PeopleSoft, MS Office

Some Benefits?

 Less costly
 Faster to procure
 Higher quality
 Less risky than custom made

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 Open Source Software
Examples: Linux, Firefox(Web-browser)
When the program’s source code is freely available for use and/or
modification, this software is referred to as open source software.
• Source code is free
• Hidden support costs

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 In-house-developed Systems
It offers flexibility for enhancements

Disadvantages

• Expensive to develop and maintain

• High maintenance
• Poor governance

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 Systems Development Team

System/business analyst
Developers
Testers
Users
Project managers

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 Systems Development Methodologies
SDLC-Sequential approach to systems development
PROTOTYPING-Which uses a trial- and-error approach for discovering how
a system should operate.
AGILE - An agile methodology utilizes an evolutionary systems development
approach that focuses on creating small, client-approved parts of the system
as the project progresses.

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 Systems development stages
Systems planning and selection- Business case approval or rejection
Systems analysis-Requirements gathering, data modelling
Systems design-Design of the proposed system:
It takes into account the
 Input , processing, output controls
 Databases and files
 Human–computer interface
Systems implementation(system conversion, testing, documentation,
user training, and support)
Operation

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 Systems Implementation And Operation-testing
Type of Description Responsible
testing Role
Developmen Testing the correctness of individual Developer
tal modules and the integration of multiple
modules
Alpha Testing of overall system to see Software tester
whether it meets design requirements
Beta Testing of the capabilities of the system Actual system users
in the user environment with actual
data

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25
Software Conversion Strategies

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 Systems development has evolved
MOBILE APPS CAN USE A MORE AGILE APPROACH TO
SYSTEMS DEVELOPMENT:
https://www.appmachine.com/
www.wired.com/2014/03/flappy-bird-clones

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 Types of system maintenance
• Corrective maintenance-Making changes to an
information system to repair flaws in the design, coding, or
implementation.
• Adaptive maintenance-Making changes to an information
system to evolve its functionality, to accommodate
changing business needs, or to migrate it to a different
operating environment.
• Preventative maintenance-Making changes to a system
to reduce the chance of future system failure.
• Perfective maintenance-Making enhancements to
improve processing performance or interface usability or Change
adding desired but not necessarily required system management is
key in
features (in other words, “bells and whistles”) maintenance

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 Governing Systems Development
Approvals
Business requirements alignments to strategic needs
Ensuring security of systems
Clearly defined and functional Change management
process

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 External Acquisitions
1.Systems planning and selection
2.Systems analysis
3.Development of a request for proposal
4.Proposal evaluation
5.Vendor selection

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 Preparing An RFP
A request for proposal (RFP) is a document that is used to tell vendors
what your requirements are and to invite them to provide information
about how they might be able to meet those requirements.

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 Preparing An RFP

A summary of existing systems and applications

 Requirements for system performance and features
 Reliability, backup, and service requirements
The criteria that will be used to evaluate proposals
Timetable and budget constraints (how much you can spend)

Reviews/benchmarking can help with assessing the proposals:

https://www.cnet.com/

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 Outsourcing
Why companies outsource certain functions

Cost and Quality Concerns.

Problems in IS Performance.
Simplifying, Downsizing, and Reengineering.

Outsourcing Strategically -What and When to outsource?

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 Outsourcing Benefits

It frees up internal resources

Improved process efficiencies
Improved focus on core activities

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 Societal/Operational Challenges With Digital
Transformation

Regulatory environments
Workers’ expertise
Cultural challenges, such as languages, beliefs, attitudes, religions

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 Ethical Dilemmas Regarding The Use Of IS

Use/access i.e. Certain messaging apps

Disposal-lack of policies and procedures
Privacy-Online tracking
Technology addiction

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RFID-Radio Frequency Identification Tag(store information for
tracing purposes such as product information, source, price etc)

Each tag contains unique identification information that can be

accessed by an RFID reader.

http://ridix.be/rfid-technology-designerbags/

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 How To Maintain Privacy In Business

Create awareness and customer’s choice (agree or

disagree)
Provide information to the customers when required
Ensure security of customer and business information
Enforce the stipulated practices, through compliance to
appropriate laws and regulations.

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 Maintaining Privacy Of Personal Information In Online
Platforms

Choose Websites That Are Monitored by Independent

Organizations/privacy seals.
Avoid Having “Cookies” Left on Your Machine
Use Caution When Requesting Confirmation E-Mail
Read privacy terms and conditions when downloading/using apps
Beware of what you post or say online.

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 IT Mega Trends

IoT

Mobile Social Digital Cloud

devices media transformation

Big
data
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Comparing Brick And Mortar And Online Stores
Departmental Online functions and value chain
functions
Sales and Marketing AI-Customer buying behaviour, availability of the
product and services.
You need to create an account, capture your
personal details.

Technology Development Activities –custom

software etc.
Supply chain Order taking, processing and dispatching
management
Accounting and Refund policy, no fraudulent transactions
finance
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What are the
business
benefits of
Amazon?

What are the

risks Amazon
faces?

What are the

opportunities
that comes
with having
online
presence?

What are the

risks that
come with
using such a
platform for a
user?42
 Amazon Opportunities
Using its information systems (IS) infrastructure, Amazon.com offers
Amazon Web Services (AWS), a solid and reliable IS infrastructure that
allows companies to rent computing resources or storage space on an as-
needed basis or even deploy enterprise resource planning systems in the
cloud.

Create customer Packaging &

Order processing
record dispatch

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 Online Business Value Chain

A company can create additional value by integrating internal

applications with suppliers, business partners, and customers.
Companies accomplish this by connecting their internal value chains
to form a value system, in which information flows from one
company’s value chain to another company’s value chain.
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 ERP Systems vs Standalone
ERP[In-house developed, off-the shelf (Oracle, SAP etc.)]
Single source/view of information vs Multiple and consistent source of
information
You deal with one service provider/support and maintenance
Risk/Single source of failure.

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 Cloud Computing
Cloud computing is the delivery of computing services—including servers,
storage, databases, networking, software, analytics, and intelligence—over
the Internet (“the cloud”)

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 Cloud Computing
Rapid Elasticity- in a cloud environment, computing resources can be
scaled up or down almost instantaneously and often automatically, based
on user needs.

Broad Network Access –Promotes accessibility from almost anywhere

and from almost any web-enabled device.

Measured Service Measured –Customer’s pay only for what they use.

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 Public Cloud
Public cloud- it’s available to the public and data is stored on third party
servers.

Advantages

Easy to use
Cost effectiveness
Availability
Eliminated the need for software

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 Public Cloud
Disadvantages

Data security and privacy concerns

Unreliable due to outages and malfunctions
Lack of individual approach

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 Private Cloud
These are also referred to as corporate clouds and only one company
owns a private cloud but a third party can manage it.

Advantages

Storage and network components are customisable

There is high control over the corporate information
High reliability ,security and privacy

Disadvantage

High cost
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 Community Cloud
A community of organizations that have similar backgrounds or have
similar requirements in terms of security, privacy and performance
requirements share the cloud resources.
Advantages
Cost reduction
Improved security, privacy and reliability
Ease of collaboration
Disadvantage
Resource sharing in terms of storage and bandwidth

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 Hybrid Cloud
Advantages
Improved security and privacy depending on configurations
Flexibility
Cost savings

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 Hybrid Cloud
Disadvantages

Security–Each node is a source of insecurity

Reliability issues

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 Categories Of Cloud Services
 Infrastructure as a service-It provides virtualized computing resources
over the internet e.g. virtual servers, storage systems etc.

 Platform as a service-It offers a Platform as a service e.g. operating

system, database etc.

 Software as a service-It provides software services on demand e.g.

Microsoft office 365

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 Cloud Computing Threats/Risks
 Failures in Provider Security
 Legal and Regulatory Issues
 Malicious Insiders
 Cloud liquidations and bankruptcy

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 Business Process Management
Business process management (BPM) is a systematic, structured
improvement approach by all or part of an organization whereby people
critically examine, rethink, and redesign business processes in order to
achieve dramatic improvements in one or more performance measures,
such as quality, cycle time, or cost.

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 Business Process Management Steps
1.Develop a vision for the organization that specifies business objectives,
such as reducing costs, shortening the time it takes to get products to
market, improving quality of products and/or services, and so on.
2. Identify the critical processes that are to be redesigned.
3. Understand and measure the existing processes as a baseline for
future improvements.
4. Identify ways that information systems can be used to improve
processes.
5. Design and implement a prototype of the new processes.

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 Factors That Contribute To A Successful Business Process
Improvement

Support by senior management

Shared vision by all organizational members
Appropriate funding

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ERP systems

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Benefits Of Enterprise Resource Planning Systems That Can
Be Used To Make The Business Case Include
Improved availability of information
Increased interaction throughout the organization
Reduced IS costs
Improved compliance with standards, rules, and regulations(built in best
practice controls)

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 Costs Of ERP Systems

System acquisition costs

License costs
Ongoing maintenance and support

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 Should Organizations Migrate Or Not?
While the deadline for migrating to S/4 HANA has been extended to 2027,
giving businesses a slight reprieve, SAP ECC is reaching end of life, and
companies should consider making the move sooner rather than later. For
many organizations, this is somewhat of a daunting task. S/4HANA is not
simply a new version of software, but an entirely new solution with new
technology, that requires a shift in mindset as well as product
training.(source: S/4 HANA migration can be an opportunity rather than a
challenge | IT-Online (it-online.co.za) )

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 Why do ERP Projects Fail?
Lack of executive sponsorship
No expert advice received
Untrained users/lack of proper change management
 Lack of a multidisciplinary approach to implementations

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 Electronic Supply Chains
Supply chain refers to a
collection of companies
B2B e-commerce model-Alibaba-a network of and processes involved
business/suppliers. portals are normally used to share in everything from
or exchange information across multiple suppliers extracting raw materials
to moving a product from
B2C e-commerce model-Zando/Take alot the suppliers of raw
materials to the suppliers
of intermediate
components, then to
final production, and,
ultimately, to the
customer.

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What Are The Supply Chain Risks That Netflorist Faces?

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 Common Supply Chain Challenges
Reliance on a supply network
Unavailability of goods which can be a greater problem where a limited
pool of suppliers is used
Faulty products
Delays due to shortage of materials
Liquidations of some of the suppliers
Force-majeure i.e.. earthquakes

NB! It is thus important not only to monitor one’s own direct suppliers but
also to constantly monitor the company’s extended supply chain to
anticipate any issues that may have an impact on one’s direct supplier
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What Are The Objectives Of Information Systems At
Netflorist?

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 Objectives Of Information Systems On Supply Chain
Accelerate product development
Promote innovation
Cost reduction
In addition ,supply chain management (SCM) systems:
Improve the coordination of suppliers, product or service production and
distribution
They also improve customer service in the long run
SCM system+ ERP system+ CRM system=Powerful integration

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 Functions That Optimize The Supply Network

Module Key Uses

Demand planning Forecast and plan anticipated demand for products
and forecasting

Distribution Optimize the allocation of available supplies to meet

planning demand

Work with partners across the supply network to improve

Materials accuracy of demand forecasts, reduce inventory buffers,
management increase the velocity of materials flow, and improve
customer service
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 Functions That Optimize The Supply Network
Transportation Manage logistics between company locations or
execution from company to customers, taking into account
transportation modes and constraints
Warehouse Support receiving, storing, and picking of goods in a
management warehouse

Supply chain Monitor key performance indicators to assess

analytics performance across the supply chain

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Customer Relationship Management

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 CRM and Quality Management: ISO 9001
 Mutually beneficial  Understand needs
1. Customer  Meet requirements
relationships focus
 Exceed expectations

7. Relationship 2.
management Leadership

 Base decisions  Create unity of purpose

on data  Maintain environment

6. Evidence- Quality 3.
based decision principles Engagement
making of people

 Best use of abilities

 Continual
improvement
5. 4. Process
 Learn from the past Improvement approach
 Transform inputs to outputs

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 Developing A CRM Strategy
The organization must consider the enterprise-wide changes
Policies and Business Processes- Organizational policies and
procedures need to reflect a customer-focused culture.
Customer Service-Key metrics for managing the business need to
reflect customer- focused measures for quality and satisfaction as well as
process changes to enhance the customer experience.
Employee Training- Employees from all areas—marketing, sales, and
support—must have a consistent focus that values customer service and
satisfaction.
Data Collection- Analysis, and Sharing. All aspects of the customer
experience— prospecting, sales, support, and so on—must be tracked,
analyzed, and shared to optimize the benefits of the CRM
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 CRM Primary Components
1. Operational CRM. Systems for automating the fundamental business
processes— marketing, sales, and support—for interacting with the
customer
2. Analytical CRM. Systems for analyzing customer behavior and
perceptions (e.g., quality, price, and overall satisfaction) in order to provide
business intelligence
3. Collaborative CRM. Systems for providing effective and efficient
communication with the customer from the entire organization

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 CRM Ethical Concerns
Customer profiling and targeted advertising is it good or bad?
Using AI tools to track and monitor customer buying behaviours is
it an acceptable practice?

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 REFERENCES
1.Information Systems Today: Managing in the Digital World (ISBN:9781292215976)

2.https://www.sabs.co.za/search/index.asp?cx=001974539738041422355%3Az6bksxaseiu&cof=FORID%3A11%3BNB%3A1&q=ISO
9001&sa.x=15&sa.y=12

3. https://www.netflorist.co.za/

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