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KNOWLEDGE MANAGEMENT FOR
ENTERPRISE SYSTEMS : OBSERVATIONS
FROM SMALL, MEDIUM &LARGE
Management Information & Control Science
Submitted By :
Priyanka PandeyAbhay Singh
Richa Sharma
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Objective
The paper explores the alleged differences in the knowledge
management practices across small, medium and largeorganizations that had implemented a market-leading ES.
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Introduction
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Knowledge Management for Enterprise System:Observation from Small, Medium & Large organization
Enterprise Systems (ES) have emerged as the most important and
challenging development in the corporate use of information
technology.
Organizations have invested heavily in these large, integrated
application software suites expecting improvements in
Business processes
Management of expenditure
Customer Service Competitiveness
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Introduction (Contd.)
Initially some researcher and practitioners claim
that ES are best suited for large corporations
because :
Substantial resource requirements in ES
implementation
lifecycle wide management
Recent changes - ES vendors to focus on Small and
Medium organizations (commonly referred to asSMEs)
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Introduction (contd.)
This research DOES NOT focus on the SMEs that have implemented a
scaled-down ES that is designed specifically for the SMEs
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What does this research paper include?
Different types of issues faced by large & SMEsand purportedly receive different benefits and
impacts from ES compared to their smaller
counterparts.
The impact of organizational size in relation to
the antecedents of Information Systems success. Attempts to minimize this gap by focusing on a
lifecycle-wide knowledge management in small,
medium andlarge organizations
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Literature Review: Information System &
Organization Size
Tool for classification: Number of Employee
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Country Number of Employee
Belgium 90
USA 100
Germany 250
Small Organization
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Literature Review: Information System &
Organization Size (contd.)
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European Union guidelines:
Organization Size Number of Employee
Small < 50
Medium 50 > but
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Literature Review: Information System &
Organization Size (contd.)
Whisler (1970) - Firm size was directly related to performance of
Information System .
Cheney (1983) investigated various factors affecting small businesses
in using information systems and found that small business are
prone to:
o Software,
o Hardware
o
Implementation problems in Information Systems.
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Literature Review: Information System &
Organization Size (contd.)
DeLone (1981) studied the relationship between the size of
manufacturing firms and Information System usage
He concluded that firm size is:
o Directly related to the age of the firms computer operations,
o Inversely related to the amount of external programming that are
being used,
o Directly related to the portion of revenues allocated to Electronic
Data Processing (EDP)o Inversely related to the percentage of EDP costs that are used
for purchasing computer hardware.
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Some More Findings
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Relation Remarks
Application Types 1. Small to mid-sized organizations place a greater
emphasis on accounting and inventory control
IS acquisition in
medium and large
organizations
1. SMEs require assistance from external sources in IS
adoption and management.(Turnor)
2. SMEs are better placed for developing, implementing &
administering their own applications in-house, compared
to their larger counterparts.(Raymond)
Consultant
engagement in IS &
organization size
Resource constraints faced by SMEs hinder their
ability to maintain technology up to date.
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Literature Review on Knowledge
Management
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Knowledge Management for Enterprise System:Observation from Small, Medium & Large organization
It tells about the four phases in the process of knowledge
management
Creation1 Retention2 Transfer3Applic-
-ation4
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Phases of Knowledge Management
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KnowledgeCreation
Developingnew content
Done byexternalplayer whobring newknowledgeon the
software
KnowledgeRetention
Involvesstorage of
information
KnowledgeTransfer
Providingtraining
Smallorganization informally
Largeorganization proper
training
KnowledgeApplication
Makingemployee
know of theimp. of theinterpretationof thedatabaseused for
futuredecisionmaking
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How it can be used?
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Knowledge Creation- Knowledge of activities of suppliers andsubcontractors and who to contact when there is a problem.
Knowledge Retention- Recording the valuable experience inelectronic form lets says storing the emails. Emphasis should be
on converting the tacit knowledge in to explicit knowledge.
Knowledge Transfer- A formal training program should beconducted only to let the people in the know of how interestedor reluctant a supplier is in serving the company. How has hisrecord been in the past.
Knowledge Application- Now while considering differentsuppliers, the attitude of the suppliers and their past experience with the company can be a great help while selectingor rejecting one.
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The Study Context
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The study gathered data from 27 organizations running a market
leading Enterprise System for last one decade.
It was a financial Management Software.
All the 27 states belonged to the State Government in Australia.
Broad Objectives of the Enterprise System were-
Financial Management improvement activities.
Best Resource Management.
Consolidation of State Government financial information.
Meet the business needs of agencies.
Meet economies of scale.
All organizations had same version of ES software.
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How effective was this ES?
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So if the Software was this much a convenience, organizations wouldhave wanted to work with it for good.
Well, this was not the case. The organizations went for changing theEnterprise Software.
As the members of the
organizations were
reported as saying
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Why was this SO SUCCESSFUL ER was
a flop for these organizations?
In the words of top management in these organizations-
The software is just perfect forlarger organizations but for smallerorganizations like us it is too complex and too expensive.
The Interpretation was that different ES systems are needed fordifferent sized organizations. Those ERs which are a hit in Largeorganizations may be a fiasco in smaller organizations.
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The analysis divides the 27 organization in to 3 parts on the basis of
user license:
Small (User license below 200)
Medium (User license between 200-999)
Large (User license above 1000)
Analysis objective
To assess that whether the organization size perceived value in the
4 KM phases. To analyze whether the respondents of the three organizational
sizes demonstrate differences in relation to the Knowledge
Management (KM) activities derived through the literature
Results And Analysis
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Satisfaction Level of Employees
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Through descriptive statistics, it is observed that managing knowledge
at the two main stages of the ES lifecycle
Pre ES implementation stages
Post ES implementation stages
It could be somewhat different in the three organizational sizes.
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Results And Analysis(contd.)
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Path Model
The path model has been developed
and tested using Partial least Squares
The three PLS models below
investigate the relationship between
KM atimplementation post
implementation KM activities and
their relationship with the overall
goodness of theKM process
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Results
Results observe the strength of the paths between KM activitiesduring and post ES-implementation (independent variables) and theoverall goodness of the KM process (the dependent variable).
It is evident that the r-square of the overall goodness ofKM process,decline with the declining organizational sizes, attributing to theoverall goodness ofKM activities in large organizations.
Observing the path coefficients of the during and post implementation paths, it is clear that larger organizations tend toexplain the overall goodness using the KM activities post implementation, compared to the small organizations where theoverall goodness is still relying on the knowledge creation that hadtaken place.
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Conclusion
The study results demonstrated that, even with similar knowledge
creation outcomes, small and medium sized organizations
demonstrated lower mean scores in relation to lifecycle wide
knowledge management activities
It was also observed that respondents from small and medium
organizations reported lower levels of satisfaction towards the overall
goodness of the knowledge management in their organizations
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Conclusion(contd.)
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Path model developed, found that compared to large organizations,
small organizations still assess the goodness of knowledge
management process in light of the knowledge created at the time of
the implementation
These findings highlight the capabilities (or lack of ) of small
organizations to maintain a lifecycle wide ES knowledge management
strategy, even with the same levels of knowledge creation at the time
of the ES implementation
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