BUSINESS

INTELLIGENCE
AND KNOWLEDGE
MANAGEMENT
REPORTED BY: SERAFIN M. TRANCE
Business Intelligence

 A set of theories, methodologies, processes, architectures and technologies that

transform raw data into meaningful and useful information for business purposes.

 “ A broad collection of software platforms, applications and technologies that aim to help
decision makers perform more effectively and efficiently”
(Arnott, Gibson and Jagielska).

 BI is computer-based techniques used in identifying, extracting and analyzing internal

business data.

 Aims to support better business decision-making by upper mgt. It also called “ Decision
Support System (DSS)”.
Importance of Business Intelligence

 Allows organization to get a more accurate and detailed picture of what is going on in
terms of business and customers.

 Brings visibility into the org. at granular levels.

 It allows org. to review customer behavior.

 BI allows the users to transparently access and analyze any type of data through
applications that are designed to support the core business process.
The Flow of BI Process and Tools

DATA SOURCES INFORMATION KNOWLEDGE

U
S
E
R
Benefits of Business Intelligence in Business

 To unlock the information and see data in new ways.

 To integrate data across the enterprise.

 Empower business users to become information self-sufficient.

 Empower knowledge worker to make faster and better decisions.

 Improve productivity with better decision-making faster response-to-market

changes or other business events.
STRATEGIC KNOWLEDGE
MANAGEMENT
Is any systems that helps people in an organization
share, access and update business knowledge
information.

 Helps in identifying the needs of a firm,

organizing flow of information,
implementing the plan and evaluating the
whole exercise to find gaps and rectify
things in time.

 Strategic Knowledge Mgt. helps in achieving

the organizational goals.
Benefits of Knowledge Mgt. in an Organization

 Spend less time recreating existing knowledge.

 Get the information you need sooner.

 Maker fewer mistakes.

 Standardize processes.

 Provide better services to employees and customers.

Effects of Knowledge Mgt. on Innovations
 Knowledge mgt. is a tool that generates new ideas that can lead to innovation.
 Innovation is a strategy that can provide a business sustainable competitive
advantage.

Types of Innovation:
 Disruptive Innovation – A kind of innovation that is long term process (5-10 years
characterize by discontinuous development with high degree of uncertainty in gaining
end user acceptance.
 Incremental Innovation – Is characterize by continuous improvements within a short
time frame.

Types of Knowledge:
 Tacit Knowledge – Is a personal knowledge embedded in individual experience
involves intangible factors such as personal beliefs, perspectives and values.

 Explicit Knowledge – Is a type of knowledge that can be converted into formal

language such as words and numbers, mathematical expressions and manuals making it
easy to codify and transmit.
Effects of Knowledge Mgt. on Organizational Performance

 FINANCIAL PERFORMANCE – market performance (profitability, growth

and customer satisfaction)

 PROCESS PERFOMANCE – refer to quality and efficiency.

 INTERNAL PERFORMANCE – relates to individual capabilities (employees

qualification, satisfaction and creativity)
Cycle of Knowledge Mgt.
5 Ps of Knowledge Mgt.
 Case Study:

(Still) Made in America

Gore-Tex
Company Background

W. L. Gore & Associates, Inc. is an American multinational manufacturing company specializing in

products derived from fluoropolymers. It is a privately held corporation headquartered in Newark,
Delaware. It is best known as the developer of waterproof, breathable Gore-Tex fabrics. Operating 17
plants in US and Europe.

Corporate Culture:

A democratic nature of organization with a very fluid structure, this means that employees can work on
different projects and areas where they believe can contribute the most. This allows generations of
rich ideas and innovation.

Problem:

It is practically impossible for workers in one plant to learn from the experience from workers in other
plants.

Solution:

The IT department implemented the “Process Health Assessment Tool” wherein workers are able to
access reports detailing the state of Gore’s production processes. The software is linked to various data
sources such as spreadsheets, data base and ERP Systems.
It uses an analytical software application that mines data, model processes statistically
analyze data to suggest quality improvements. This application has the ability to
prepare reports that help engineers manage the manufacturing operation.

Case Questions:

1) Does the Process Health Assessment Tool produce knowledge or is it an

employee knowledge sharing tool?

Ans: It is both knowledge producing tool and knowledge sharing tool. One
major purposes of implementing the tool was for Associates located in
different plants to have a platform where they can share their ideas and
experiences to the rest of the organization. The platform then subject these
data to a different types of analysis thereby producing a new form knowledge
such as reports.
Case Questions:

2) Why is this tool so important, especially at a company such as Gore?

Ans: Within the textile industry, Gore-Tex admits that they cannot compete
with other players that are operating in Asia whose competitive advantage is
cheap labor, instead the company is capitalizing on their main strength which
is innovation. Innovations is fostered by new ideas and new ideas is created by
sharing of knowledge which is exactly what the tool is all about.

3) How does the software tool help Gore streamline business operations?

Ans: Streamlining business operations entails eliminating non-value added

processes and this where Process health tool comes in it identifies what
aspects of operations are value-adding and non value adding.
***Thank You For Listening***