Question

Organizations first focus on TPS, move to MIS and then DSS. Knowledge management and intelligence usually comes last in the information system evolution. Why do you think this is the case? What needs to be in place for a KM system to work?

Answer 1

Organizations first focus on TPS, move to MIS and then DSS. Knowledge management and intelligence usually comes last in the information system evolution. Why do you think this is the case?

Knowledge management (KM) is the systematic information system which is used to capturing, distributing and effectively use the knowledge to add value to the organization. KM helps to meet tactical and strategic requirements.

Organizations first focus on TPS (Transaction Processing System), move to MIS (Management Information System) and then DSS (Decision Support System). The focus of this new system is to develop business application that provides pre-defined management reports that would help managers take strategic decisions.

TPS, MIS, DSS- A Transaction Processing System (TPS) is a computerized system that is used to perform and record the daily transactions of a business. Example, payroll and sales order entry. Management Information Systems (MIS) provides reports to managers and provides access to managers to the organization’s current and historical records. Decision Support System (DSS) is a method to analyze the data. DSS use a user friendly software and interactive.

In all the above information systems, knowledge management and intelligence is considered as a last option. KM supports the creation and organization and distributing the business knowledge to help managers take strategic decisions. The reason that the information system comes last in the Information System evolution is that organizations focused on increasing the organizational capabilities that foster quick and rapid adaptation. The organizations focused on minimizing the efforts in manual work and computerized the operations of the business through TSS. Then to take strategic decisions, the organization moved from TSS to MIS which provides reports for managerial decisions. Then the final stage of DSS was adapted to analyze critical data to take decisions. In all these functions, system alone plays a key role to meet the business functions and requirements. KM and intelligence was not considered in all of these systems because knowledge was considered as a traditional old tool to make decision and relying on human minds was not preferred by managers.

TSS, MIS and DSS evolved from 1950 to 1980. Since KM is gaining importance today, KM was evolved between 1990 and 2000. In today’s digital era E-Business is the system evolution from 2000 till date.

What needs to be in place for a KM system to work?

Step 1- Identifying the various business issues is the first step to understand the areas of improvement in the business.

Step 2- Once the problem areas have been identified, the next step is to prepare the organization and its people ready for the transition. Change management approaches need to be used wisely for smooth transition.

Step3- Adequate training and support tools need to be provided to employees to help them adapt to the KM system quickly.

Step 4- Evaluate the technology needs is the next step. The various sources of knowledge need to be identified to solve the business problems.

Step 5- Then determine the key attributes of knowledge management information system such as open, distributed, customizable and secure.

Step 6- Link knowledge to the people such as content management and knowledge directory.

Step 7- Launching the KM system is the next step.

Step 8- The final step is to measure and have a continuous improvement the KM system.