Optimal Knowledge Management: Wisdom Management Systems Concepts And Applications

307 Pages·2006·3.586 MB·English

by  James J. Hoctor Robert J. Thierauf

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Robert J. Thierauf, Xavier University, USA
James J. Hoctor, The Kroger Company, USA
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Library of Congress Cataloging-in-Publication Data
Thierauf, Robert J.
Optimal knowledge management : wisdom management systems concepts and applications / Robert J.
Thierauf and James J. Hoctor.
p. cm.
Summary: "This book outlines a new way of approaching the development and implementation of
information systems. Not only does the book explore a different approach to determining an
organization's opportunities and solving its problems, but it also highlights methods for optimal decision
making"--Provided by publisher.
ISBN 1-59904-016-6 (hardcover) -- ISBN 1-59904-017-4 (softcover) -- ISBN 1-59904-018-2
(ebook)
1. Knowledge management. 2. Decision making. I. Hoctor, James J. II. Title.
HD30.2.T485 2006
658.4'038--dc22
2006009292
British Cataloguing in Publication Data
A Cataloguing in Publication record for this book is available from the British Library.
All work contributed to this book is new, previously-unpublished material. The views expressed in this
book are those of the authors, but not necessarily of the publisher.
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Preface.............................................................................................................ix
Section I: The Challenge of Optimal Knowledge
Management/Wisdom Management Systems
Chapter I.
Introduction to Optimal KM/WM Systems................................................1
Issues.......................................................................................................1
Introduction............................................................................................1
Focus on Answering the Question “What Needs to be Done?”........2
Relationships Among Information, Knowledge, Intelligence
and Optimization and Their Systems...............................................3
Introduction to Optimal KM/WM Systems............................................6
The Essential Elements Underlying Developing and Implementing
Optimal KM/WM Systems...............................................................10
Optimal KM/WM Systems Defined......................................................17
Functional Areas of Optimal KM/WM Systems .................................18
Robust Applications of Optimal KM/WM Systems.............................19
Summary................................................................................................21
References ............................................................................................21
Section II: Underlying Concepts of Optimal Knowledge
Management/Wisdom Management Systems
Chapter II.
Creative Thinking and Problem Finding Underlie Optimal
Decision Making...........................................................................................24
Issues.....................................................................................................24
Introduction..........................................................................................24
Rethinking Creative Thinking in Terms of “What Needs to
be Done” .........................................................................................25
Focus on the “Big Picture” by Asking the Right Questions for
What Needs to be Done Over Time...............................................26
Effective Techniques to Undertake Creative Thinking ....................28
Creative Thinking Example to Assist in the Development of
an Optimal KM/WM System ...........................................................31
Problem Finding Useful in Turning Problems into Opportunities
for Profit..........................................................................................32
The Problem Finding Process Found in Optimal KM/WM Systems...33
Utilization of Problem Finding to Expand Wisdom of
Decision Makers.............................................................................40
Summary................................................................................................43
References ............................................................................................43
Chapter III.
Computer Storage and Networking Found in Optimal KM/WM
Systems.................................................................................................45
Issues.....................................................................................................45
Introduction..........................................................................................45
Future Computer Technology that will Assist in Developing
Optimal KM/WM Systems...............................................................46
An Open-Ended Infrastructure Helpful for Optimal Decision
Making ............................................................................................48
Utilization of Business Process Management for Connecting
“Points of Wisdom”........................................................................49
Employment of Information Lifecycle Management to Oversee
Computer Storage Growth.............................................................51
Computer Storage Management on the World Wide Web to
Facilitate Decision Making ...........................................................52
Development of a Corporate-Wide Computer Storage
Infrastructure..................................................................................54
Enterprise Storage Network (ESN), Storage Area Networks
(SANs), and Network Attached Storage (NAS)............................58
Keeping Computer Storage Safe and Secure Against Intruders.....61
vii
Development of Corporate-Wide Strategic Computer Networking ...63
Using Blogging to Assist Decision Makers in Connecting
“Points of Wisdom”........................................................................66
Optimization Software for Wired and Wireless Technology............66
World Wide Web Globalization as It Affects Optimal Decision
Making ............................................................................................67
Summary................................................................................................68
References ............................................................................................69
Chapter IV.
Computer Software Found in Optimal KM/WM Systems......................71
Issues.....................................................................................................71
Introduction..........................................................................................71
Computer Software Can Assist in Connecting “Points of Wisdom”
in Optimal KM/WM Systems...........................................................72
Enterprise-Wide Open Source Model Useful in Optimal
Decision Making..................................................................................72
Nature of Computer Software Changing to Develop and Grow
Optimal KM/WM Systems...............................................................73
Overview of Effective Software for Optimal KM/WM Systems........85
Summary................................................................................................86
References ............................................................................................87
Section III: Building Optimal Knowledge
Management/Wisdom Management Systems
Chapter V.
Development and Implementation of Optimal KM/WM Systems........89
Issues.....................................................................................................89
Introduction..........................................................................................89
Important Concepts Underlying the Development and
Implementation of Optimal KM/WM Systems ...............................91
Enterprise Application Integration (EAI) Provides a Framework
for Designing Optimal KM/WM Systems ......................................93
Use Application Service Providers (ASPs) as a Way of
Expanding Wisdom.......................................................................102
Cost Justification for Optimal KM/WM Systems ............................. 103
Steps Essential to Develop and Implement Successful Optimal
KM/WM Systems ........................................................................... 104
Summary..............................................................................................111
References .......................................................................................... 112
Section IV: Applications of Optimal
Knowledge Management/Wisdom Management Systems
Chapter VI.
Optimal KM/WM Systems in Corporate Planning............................... 114
Issues................................................................................................... 114
Introduction........................................................................................ 114
Conventional Wisdom Regarding Management Principles
Underlying Corporate Planning................................................. 116
An Enlarged View of Connecting Corporate Planning “Points
of Wisdom”....................................................................................118
Development of an Effective Corporate Planning Model for
Optimal KM/WM Systems............................................................. 122
Corporate Planning Model and Its Sub-Models Found in
Optimal KM/WM Systems............................................................. 130
Short to Long-Range Corporate Planning......................................132
An Optimal KM/WM System Application in Corporate Planning..146
Summary..............................................................................................147
References .......................................................................................... 148
Chapter VII.
Optimal KM/WM Systems in Marketing.............................................. 149
Issues................................................................................................... 149
Introduction........................................................................................ 149
Conventional Wisdom Regarding Management Principles
Underlying Marketing .................................................................152
An Enlarged View of Connecting “Points of Wisdom” in
Marketing...................................................................................... 154
Development of an Effective Marketing Model for Optimal
KM/WM Systems ........................................................................... 158
Marketing Model and Its Sub-Models Found in Optimal
KM/WM Systems ........................................................................... 166
Marketing Strategy and Sales Plans................................................169
An Optimal KM/WM System Application in Marketing ..................181
Summary..............................................................................................182
References .......................................................................................... 182
Chapter VIII.
Optimal KM/WM Systems in Finance ................................................... 184
Issues................................................................................................... 184
Introduction........................................................................................ 184
Visioning and Challenging Goals Underlie Effective Finance
and Accounting Activities ............................................................ 185
Conventional Wisdom Regarding Management Principles
Underlying Finance .....................................................................185
Development of an Effective Finance Model for Optimal
KM/WM Systems ........................................................................... 193
Finance Model and Its Sub-Models Found in Optimal KM/WM
Systems...........................................................................................203
Financial Performance......................................................................206
An Optimal KM/WM System Application in Finance ......................219
Summary..............................................................................................221
References .......................................................................................... 221
Chapter IX.
Optimal KM/WM Systems in Manufacturing ....................................... 223
Issues................................................................................................... 223
Introduction........................................................................................ 223
Need to Rethink Manufacturing from a Very Broad Perspective ...224
Conventional Wisdom Regarding Management Principles
Underlying Manufacturing .........................................................225
An Enlarged View of Connecting “Points of Wisdom” in
Manufacturing.............................................................................. 227
Development of an Effective Manufacturing Model for Optimal
KM/WM Systems ........................................................................... 230
Manufacturing Model and Its Sub-Models Found in Optimal
KM/WM Systems ........................................................................... 238
Production Planning and Execution................................................240
Optimal KM/WM System Application in Manufacturing................ 254
Summary..............................................................................................254
References .......................................................................................... 255
Chapter X.
Real-World Optimal KM/WM System Applications............................ 257
Issues................................................................................................... 257
Introduction........................................................................................ 257
A Last Look at Creative Thinking and Problem Finding that
Underlie “What Needs to be Done” ...........................................258
New Business Models Provide a Means for Adapting Company
Operations to Changing Times....................................................259
Computer Software that is Useful in Optimal KM/WM System
Applications................................................................................... 260
Effective Real-World Optimal KM/WM System Applications .........261
Focus on Corporate Planning: Intuit............................................... 262
Focus on Marketing: Procter & Gamble......................................... 263
Focus on Finance: Deere & Company............................................264
Focus on Manufacturing: Kellogg Company ................................. 265
Focus on Overview: General Electric Company.............................266
Summary..............................................................................................267
References .......................................................................................... 268
Section V: The Impact of the Future on Optimal Knowledge
Management/Wisdom Management Systems
Chapter XI.
Future Developments That Impact Optimal KM/WM Systems........ 270
Issues................................................................................................... 270
Introduction........................................................................................ 270
A Fourth-Dimensional View is a Requirement of True Optimal
KM/WM Systems ........................................................................... 271
Future Computer Storage and Networking Developments that
Affect Optimal KM/WM Systems..................................................272
Future Software Developments as They Affect Optimal KM/WM
Systems...........................................................................................272
Future Considerations for Developing and Implementing a
Well-Designed Optimal KM/WM System.....................................273
Future Corporate Planning Developments Affecting Optimal
KM/WM Systems ........................................................................... 274
Future Marketing Developments Affecting Optimal KM/WM
Systems...........................................................................................275
Future Finance Developments Affecting Optimal KM/WM
Systems...........................................................................................275
Future Manufacturing Developments Affecting Optimal KM/WM
Systems...........................................................................................277
Continual Support of Optimal KM/WM Systems for What Needs
to be Done Over Time ..................................................................278
Summary..............................................................................................279
References .......................................................................................... 280
About the Authors..................................................................................... 281
Index............................................................................................................ 282
ix
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Introduction to Wisdom
A starting point for wisdom is a humble assertion: “I (We) don’t know.” This
assertion can be the real beginning of wisdom. Wisdom can be defined very
simply as “the ability to judge soundly.” Because business transactions per se
do not inspire much wisdom in decision makers, wisdom comes from connect-
ing these transactions to each other and their change over time so that sound
judgments can be made. Wisdom requires an intuitive ability, born of experi-
ence, to look beyond current situations in order to recognize exceptional factors
and anticipate unusual opportunities and outcomes. Largely untapped today,
wisdom is a vital organization resource, accumulated through experience, and
applied to everyday learning at work. Basically, wisdom is a personal capacity
acquired through creative thinking and experience. From this perspective, there
is a tendency to replace past hierarchical and functional roles with learning
relationships that focus on wisdom as the foundation of the new organization.