Managing and Using Information Systems:

A Strategic Approach – Sixth Edition

Keri Pearlson, Carol Saunders, and Dennis Galletta

© Copyright 2016 John Wiley & Sons, Inc.

Chapter 12 Knowledge Management, Business

Intelligence, and Analytics

Opening Case: Netflix

• What gave Netflix assurance that House of Cards would be a success?

• What gives Netflix a competitive advantage?

© 2016 John Wi ley & Sons, Inc. 3

More Real World Examples

• Caesar’s and Capital One both collect and analyze customer data.

• Result: They can determine who are the most profitable customers and then follow up with them. • Caesar’s: frequent gamblers • Capital One: charge a lot and pay off slowly

• They provide products that would appeal to the profitable customers.

© 2016 John Wi ley & Sons, Inc. 4

A Real World Example from Sports

• Oakland As and Boston Red Sox baseball teams

• Crunched the numbers on the potential players, such as on-base percentage

• Others who did not do the analysis failed to recognize the talent

© 2016 John Wi ley & Sons, Inc. 5

Five Ways Data Analytics can Help an Organization (McKinsey and Co.)

• Making data more transparent and usable more quickly

• Exposing variability and boosting performance

• Tailoring products and services

• Improving decision-making

• Improving products

© 2016 John Wi ley & Sons, Inc. 6

Terminology

• Knowledge management: The processes needed to generate, capture, codify and transfer knowledge across the organization to achieve competitive advantage

• Business intelligence: The set of technologies and processes that use data to understand and analyze business performance

• Business analytics: The use of quantitative and predictive models, algorithms, and evidence-based management to drive decisions

© 2016 John Wi ley & Sons, Inc. 7

Data, Information, and Knowledge (reprise)

© 2016 John Wi ley & Sons, Inc. 8

The Value of Managing Knowledge Value Sources of Value

Sharing best practices • Avoid reinventing the wheel • Build on valuable work and expertise

Sustainable competitive advantage • Shorten innovation life cycle • Promote long term results and returns

Managing overload • Filter data to find relevant knowledge • Organize and store for easy retrieval

Rapid change • Build on/customize previous work for agility • Streamline and build dynamic processes • Quick response to changes

Embedded knowledge from products

• Smart products can gather information • Blur distinction between manufacturing/service • Add value to products

Globalization • Decrease cycle times by sharing knowledge globally • Manage global competitive pressures • Adapt to local conditions

Insurance for downsizing • Protect against loss of knowledge when departures occur • Provide portability for workers who change roles • Reduce time to acquire knowledge

© 2016 John Wi ley & Sons, Inc. 9Please take a moment to share your thoughts, ideas, comments and/or questions concerning Week 12’s reading assignment lecture.

Week 12 lecture is attached.

Upto 400 word