Sunday, January 26, 2020

Importance of Knowledge Management in Organisations

Importance of Knowledge Management in Organisations CHAPTER ONE 1.0 Introduction This chapter provides a brief introduction about the research topic along with the research aims and objectives in detail. Further in this chapter, the scope of research, personal interest and the motivation to choose this particular research topic are all discussed briefly. Finally, the dissertation structure content of the six chapters is highlighted. 1.1 Introduction to the Topic The use of Internet and Intranet technologies within an organisation has changed drastically over the past ten years. Modern organisations are striving hard to maintain an appropriate strategy towards knowledge management in order to provide the employees of the organisation with the data related to their work. The main use of using a companys knowledge-base by employees is to help them develop their skills in all aspects and at the same time helps an individual to learn from any mistakes highlighted during projects undertaken. All past experiences and solutions provided at that time are recorded so experts can analyze these mistakes and make sure that they are not repeated in any of their future product developments or assignments. This research will evaluate whether knowledge management is an effective way to enhance an organisations profit and at the same time achieve employee training and development. Furthermore this research will evaluate whether Intranet and Internet services within an organisation play an important role in knowledge management process. 1.2 Personal Interest and Motivation During the learning process at the university, the author was exposed to different modules of Information Technology (IT), such as, Project Management, IT Management, Knowledge Management and Professional Issues that prevail in the present IT industry. Among these modules the author developed a kind of affection with the subject of Knowledge Management and wished to know more about it. Therefore the author has chosen to taken up this opportunity to explore this research topic and gain further understanding of knowledge management in more detail. This has not been an easy task, but with good guidance and advice from my mentors, tutors and my loved ones it has helped to finalize this topic choice and commence the research work. 1.3 Main Topics Discussed In this section, the main topics and sub topics discussed in the literature review are listed: Introduction to Intranet and Internet Services, Information Technology (IT), Impact of the Intranet on Organisations, Knowledge Management Studies, Knowledge Management, Types of Knowledge Management, Benefits of Knowledge Management Implementation in Organisations, Knowledge Circulation Process (KCP) for Organisational Performance and Management of Knowledge. All the above main topic and sub topics are related to one another which gives a complete understanding about the topic and its necessity within todays organisations. With this understanding a survey questionnaire is formulated which is analyzed at later stages of the research work/discussion. 1.4 Scoping of the Research The main purpose of this study is to evaluate whether knowledge management systems are necessary in todays organisation and also the study is to point out the important features of knowledge management when implemented within organisations. This research topic has been a major attraction for many researchers; a lot of studies have been carried out on this topic. At present, the authors research identifies a few opinions about the topic and its importance within the scope of an organisation. 1.5 Aims and Objectives The main aim of this research study is to evaluate whether knowledge management is important in todays organisations and also to discover whether knowledge management helps in employee development and learning processes. Furthermore, the research also provides a chance to evaluate the role of the Internet and Intranet technologies in implementing knowledge management. Below is a list of objectives: To understand the research topic in depth Provide a clear understanding of the role of Internet and Intranet technologies Seek information in relation to Knowledge Management 1.6 Structure of the Dissertation The dissertation structure is divided into six chapters and the contents of each chapter are briefly discussed below: Chapter One In this chapter, a brief introduction concerning the topic is discussed. Furthermore, the aims and objectives of the research topic are detailed, personal interest/ motivation, scope of the research, main topics and sub topics related to the research topic are discussed. Finally, the chapter concludes with a dissertation outline, this provides the reader with a structure of the research work that will be carried out. Chapter Two This chapter mainly focuses on the literature review based on the research topic. The discussion focuses on the analysis of a variety of researchers views and different authors opinions about the chosen topic area. Additionally, literature on knowledge management systems, types of knowledge management, and benefits of knowledge management when implemented within an organisation, knowledge circulation process, Internet and Intranet services within organisations are all briefly discussed. Chapter Three In these chapter different research paradigms, research strategies and data collection methods are discussed briefly, out of which only appropriate research paradigm, research methodology, research strategy are chosen based on the topic. Further in this chapter, assumptions and ethical issues are also discussed. Chapter Four In this chapter, the data collected from participants are gathered together, the data is stored in a Microsoft Excel spreadsheet and the data is then analyzed by relating it to the research aims and objectives in order to meet them. Chapter Five This chapter includes a brief discussion of the analysed results of the obtained data from participants. The data is represented in the form of graphs and each graph is followed by a discussion. Chapter Six This is the conclusive chapter. In this chapter, the obtained results are compared to that of research aims and final conclusions are drawn from the analysis. The discussion focuses on relating to and linking the survey data to the aims and drawing conclusions. Finally, the chapter suggests future recommendations. 1.7 Conclusion This chapter has provided a brief outline of the dissertation structure where the researcher as well as the reader can gain a quick understanding about the work that has been planned. Additionally this chapter has introduced the topic chosen, highlighted the aims and objectives and briefly discussed the main topics within the study that will hopefully provide a clear understanding for both the author and the reader. Furthermore, this chapter also discusses the authors personal interest/motivation behind choosing this particular topic area and the scope of the research. In the next chapter, literature on the research topic is analysed and discussed this: includes opinions of different researchers and authors. CHAPTER TWO 2.0 Introduction The use of intra-organisational information by employees is widely recognized as an essential part of knowledge sharing within organisations. This way of sharing knowledge helps an organisation to tackle supporting operational and strategic corporate decision makers within the organisation. Intranet technology has proven to be one of the effective ways of accessing and disseminating data or knowledge available within the organisation (Lai and Mahapatra, 1998). The main problem that an organisation faces is the decision-making capability. Managers who are responsible for decision making within a project lifecycle are unable to make appropriate decisions due to the required data not being available. Due to large amounts of data that are available within the organisation, organisations are striving hard to find appropriate tools and techniques to manage their knowledge. Although, techniques such as data warehousing and digital libraries are implemented within the organisation, but these services are limited to a certain range. In order to manage these kinds of situations within an organisation, better solutions are evaluated and the term Intranet evolved (Tan, et. al., 2003). Expertise has identified services offered by the Intranet, some of these services that can be utilized are: alternative approach of managing dispersed enterprise data and decision support services. Intranet usage integrates individual, group, departmental, corporate communication and information sharing tasks together and provides a solution or option for each and every individual who uses it. Organisations have developed in terms of managing data available within their departments, sharing of knowledge within their departments, communication within company employees and sharing of knowledge are available for decision making was found to be improved (Lai and Mahapatra, 1998). Intranets can develop the collaboration among employees who are working for an organisation by creating networks of share spaces which are developed based on common understanding. Employees of an organisation can use this service as a medium to share available knowledge and expertise amongst each other. They have the opportunity to interact with their team and share their advice on work carried out. Though the main use of the Intranet in an organisation was meant to be for data sharing, but the extra features with the use of Intranet in organisations made it popular and these services are widely used in organisation irrespective of their market area (Khasnabish and Saracco, 1997). Strategic engagements that are held by an organisation have seen a new topic that has emerged in the knowledge based view of an organisation. This provides us with a theoretical basis on how a knowledge based resource plays a vital role in increasing the sustainable competitiveness of the firm. It also provides us with a clearer picture of how changes could be brought about to ensure no hassle in the process of knowledge management (Hoegl and Schulze, 2005). If an organisation constantly checks on its resources and promotes knowledge based perspective that postulates a competitive advantage and also builds on the privately developed resources, then tacit and explicit knowledge in an organisation will exist. At the same time, the knowledge based view or perception of an organisation assumes that the present knowledge assets exist at any time provided a valid opportunity for sustainable competitive advantage (Kebede, 2010). The use of previously existing assets along with the creation, accumulation and sharing the new assets amongst the other individuals would happen in an easier way by employing Information Technology and an Information System (IS) in that particular organisation, this is considered here. In an organisational view, it can be explained in a convincing manner the reason why a certain number of organisations or firms are more competitive under the prevailing market conditions (Kebede, 2010). Knowledge assets pertaining to a particular organisation are all dependent upon the quality of organisational knowledge and also the intangible assets of the organisation in general. This generally depends on the methods that are used to store the knowledge within the organisational limits and the extent of its usage within its employees. There is a serious need for metrics and statistics to justify all knowledge management initiatives that are taken up on priority within an organisation. Taking the knowledge management process a step forward would help senior management to justify and also help them improve their ability to manage the knowledge assets in a better manner. The benefits that are extracted from the knowledge management are all intangible and there is one method of measurement called the Balanced Scorecard. This would take both the perspectives like Financial and also the others (e.g. customers or internal business processes, innovation and learning etc.) (Liebowitz and Megbolugbe, 2003). However it is not a justifiable fact to relate knowledge management initiatives to performance. One cannot relate knowledge management with performance in every situation within organisational life, There is a need to have a superior metrics system to assess knowledge management performance, with also the ability to clear it; and also at the same time it also suggests futuristic and strategic actions for an organisation to take up. This not just keeps the work organised, but also improves the performance for the knowledge management process. 2.1 KM Studies The discussion that is taken up in previous sections of this dissertation briefly highlights that knowledge management is built on multiple disciplines such as management, computer science and information systems theory. It also has been reviewed in previous knowledge management literature at the start and the same are summarized in Table 1 below by Lee et. al., (2005). Table 1: KM studies, (Lee et. al., 2005) There are few prior Knowledge Management studies that relates with the Managerial and the Social issues. These issues have brought about the needed change and also brought about the necessary importance into place on specific processes and activities within knowledge management such as the knowledge acquisition, generation, storage, distribution, application and also its measurement (Nonaka and Takeuchi, 1995). On the same grounds, the research agenda and also the general perspective of knowledge management based on the literature review are all addressed with the priorities that were set for them without any deviations. There are few points that have taken the managerial perspective and have requested the reasons as to how a ‘learning organisation could obtain sustainable competitive advantage. Work needs to be conducted within the organisation to develop the same knowledge as there would not be any single individual in an organisation who has all the required knowledge. It is not predictable when an individual working with any certain organisation would choose to leave it, for the offer of a better poosition. Hence relying on a single individual for his knowledge could lead to very drastic effects. The way or the process within which the knowledge has been acquired and the way it is assembled and restructured particularly provides a definite competitive advantage for an organisation. As per the scholar Kebede (2010) states, the process of learning was the only sustainable competitive advantage and there has been a single learning situation that is resulted in organisational knowledge (or memory). Corporate memory has a remarkable effect on the present decisions that are taken and also plays a vital role in the success of an organisations operations and the responses to the changes and challenges. There are numerous attempts that are made and numerous methodologies that were put in place to improve and revive the present learnings and learning capabilities of the individual employees in an organisation, this helps an organisation become a ‘learning system (Kingston and Macintosh, 2000). In the process of improving an organisations learning capabilities, there were problems that were identified at various stages of the process by a considerable number of scholars. These identified reasons and issues were then studied to give a better environment to resolve the same. There are also studies that mentioned the relationship of role of Information Technology in Knowledge Management (Lee and Kim, 2001) (Kingston and Macintosh, 2000). There is a general consideration that a Knowledge Management System (KMS) is a specialized Information System for knowledge management using the latest available technologies (e.g. the Internet, Intranet, data warehouses, software agents) to synchronize, facilitate and also to expedite organisation wide knowledge management. Knowledge Management System research primarily consists of general and also conceptual principles, case studies, scenarios and thesis of such systems of a few organisations. A study by Lee and Kim (2001) states that how a KMS can enhance the effectiveness of the teams that sit and analyse the complex, non-recurring problems by improving all the trouble some areas and also improving the way these teams compositions evolve. Knowledge mining would be the synonymous phrase that could be used as like Data mining. Using this we would be able to see our self in a situation where you can provide the right information to the right persons at the right time (Kingston and M acintosh, 2000). The strategic use of the Internet for all such knowledge management activities is well dealt with in lot of activities. There has been a point that was mentioned regarding the usage of the Internet and Intranet in developing the distributed Knowledge Management systems by (Goodman, 2006). XML (Extensible Markup Language) was developed to transport and store data, this is considered as an ideal tool for knowledge retrieval and for use in knowledge management. 2.2 Impact of the Intranet on Organisations Intranet services are growing rapidly within every possible sector of business due to its wide range of benefits. Some of the impacts where Intranet has changed the business strategy are listed below: It is less expensive to implement as it runs inside the organisations network. Excellent performance enhancement can be achieved because of limited user access Employee performance is increased due to availability of necessary resources and advices due to better communication with their expertise. Effective communication amongst the employees Efficient knowledge sharing process within different departments of an organisation Helps to maintain effective customer relationship Immediate access of data regarding organisational data and documents is possible with the help of Intranet service (Bernard, 1996). 2.3 WEB WEB is known as World Wide Web. It is a hypertext document which can be accessed over the Internet. With the use of these links an individual can actually access almost everything, right from an mp3 (MPEG- Moving Pictures Experts Group) file to video files. Different types of documents and books can be read or downloaded using this process. With the help of this facility an individual can perform some of his daily tasks in a different and a convenient way. The use of the Internet and web technology has changed the entire scenario of database management within an organisation on any given day. Due to the popularity of the web, a newer version of World Wide Web is launched and named it as the second version of it. With the help of web 2.0 one can experience a user friendly approach while accessing the Internet. The quality of web pages that are available is different and more exciting when compared to earlier version of web (W3c, 2010). 2.4 Knowledge Management Knowledge management in general tries to organise and make available important information like the know-how, wherever and whenever it is actually needed. This includes processes, procedures, patents, reference works, formulas, best practices, forecasts, fixes and the like (Maglitta, 1996). This process is not only used for managing organisations knowledge base but also looks for the proper management of the same. Utilization of this knowledge within the organisation at right time and at the right place is also ensured as a part of its activities. Success of an organisation depends less on developed products and more on the appropriate utilization of available information, appropriate sharing of information when needed. Thus knowledge management plays a vital and a key role for all these years and it will be change the future of managing the knowledge within an organisation as well (Kebede, 2010). 2.4.1 Types of Knowledge Mainly there are of two types of knowledge that is available for the individuals of an organisation and they are: Explicit Knowledge: This knowledge can be expressed in terms of specific language and is normally expressed in terms of data or formulae. The information obtained can be stored within the Organisational premises easily and reused whenever there is any need for it. Tacit Knowledge This type of knowledge is completely opposite to explicit knowledge. Knowledge is more personal and cannot be stored. It ‘indwells in a comprehensive cognizance of the human mind and body (Kebede, 2010). In simpler words, this type of knowledge is held within an individual and is not available for any other individuals of the organisation. This kind of knowledge in an individual builds a dependency on him and then the works would actually finish in a slower and un-organised manner. 2.4.2 Benefits of KM Implementation in Organisations One can expect an interactive environment around the organisation where people strive for knowledge and also to show their skills, some benefits of KM implementation are listed below: Provide new ways to collaborate. Boosts up productivity. Leads to innovation within the organisation. Overall profitability. Motivation and encouragement within employees. Reusability of resources (Dalkir, 2005). 2.4.3 What are Knowledge Based Systems? Human-centred would be an apt definition for a Knowledge Based System. Knowledge Based Systems derive their roots from the field of Artificial Intelligence (AI) and there are evident attempts from scholars to understand and also to imitate human knowledge in Computer systems. In whatever way we see, a Knowledge Based System falls short of the human intellect and the human touch. The system lacks creative powers like reproducing the same knowledge and also the learning capabilities are relatively primitive (Dreyfus, 1986). Compared to a human as such, there is no comparison with the Knowledge Based System. There is a wonderfully acknowledged fact that the intelligence of a Artificially Intelligent System is quite different from human intelligence. There are a second set of definitions that are defined and which only looks for the characteristics in the architecture of a Knowledge Based System. In such a way of defining a Knowledge Based System, it mainly categorizes four components namely: Knowledge base Inference Engine Knowledge engineering tool A specific user interface and is often natural language based (Ramirez and Antonio, 2007) The core of a Knowledge Based System is defined by the first two components namely the Knowledge Base and the Inference Engine wherein the former one is an active collection of ‘formal knowledge or an active database with lots of ‘formal knowledge, its primary purpose being how that data may be used in Practical life. The latter part, inference engine on the other hand defines the ways in which the knowledge base can be put to use to help resolve the situations at hand for an organisation (Ramirez and Antonio, 2007). The remaining two factors are just the added supplements for the Knowledge base and the Inference engine as these offer instruments for filling the Knowledge base with knowledge and act as a dedicated user interface for the user to understand and view the knowledge. Characteristically a Knowledge Based System user interface has to provide the basic know how and should also question itself letting the system explain its behaviour when the system deals with any particular problem. Definitions of a Knowledge Based System that are defined on the basis of architectural peculiarities are not at all satisfactory as compared to the definitions that are defined on the basis of human intelligence, there is an obvious resistance in the way they actually work with such definitions also (Akerkar and Sajja, 2009). The difference in the definitions could be seen when we consider a system based on neural nets and there are no separating aspects of a knowledge base, inference engine. There would hardly be any difference between the knowledge base and an inference engine in such cases where neural nets are considered for a system. Such definitions take the wrong meaning historical form chosen in several Knowledge Based Systems for the hallmarks of such systems. There is also a third set of definition that is given to a Knowledge Based System to indicate all the organisational IT applications that prove helpful and needful for managing the knowledge assets within an organisation. Few examples for such kinds of Knowledge Based Systems could be expert systems, groupware, data warehouses or even the Intranet. The mentioned applications in an organisation provide the individuals all the information that is needed to them to help them in all their day-to-day activities. These definitions are flatly rejected as these lead to the erosion of the meaning of the term Knowledge-based system. Knowledge Based System in our view is not just any IT system that is used to deal with the Knowledge that is present with an organisation (Leondes, 2000). The definition of a Knowledge Based System that provides the most satisfactory organisation-centred viewpoint comes when we focus on the â€Å"Knowledge Modelling†. Key activity in building a Knowledge Based System in that case is to find a formal model that allows the description of knowledge at a conceptual level or at the knowledge level itself, aiming at uncovering the basic schema linking the central concepts of a given domain in a particular organisation (Akerkar and Lingras, 2008). The best suited examples of formalisms for the knowledge representation are the production rules, predicate logic, frames, neural nets and objects. The definition of a Knowledge Based System as an outcome of the knowledge modelling process is very useful and it actually does not direct any discussions pertaining to the organisational values of it to the characteristics of the technology as such. The actual goals of knowledge modelling process could be achieved only by examining the elements of knowledge validly and then has to be described in any of the formalisms for knowledge representation (Ramirez and Antonio, 2007). Given the focus on the process of knowledge modelling not only aids in gaining the best insight into the characteristics of the knowledge, but also guides the discussions concerning the pros and cons of the use of knowledge. It then leads to the identification why or in which aspect of formalisation is not possible or not advisable (for example, it reduces the flexibility or does not do justice to any specific intricacies). The knowledge modelling process thus acts as a vehicle to show and focus thought about the organisational knowledge and also its functionality. The basic aim is to explore that part of the organisational knowledge and how to capture in the formal schemata, and to describe the benefits and the pitfalls that are implied. There are associated benefits of having a Knowledge Based System in place in an organisation. These act as a way to retain the knowledge even after an individual who has created/compiled it has opted out of the organisation or in their absence. These systems could be used for the new comers in their on-job training purposes to fetch whatever the details that are needed of them. There is a consistent way to improve the decision making process and also helps in increasing the availability of the needed expertise. They provide the building blocks or the Corporate Memory and also promotes of knowledge sharing etc. If the knowledge is well documented under KBS, the sole repository for all such information and knowledge then there wouldnt be any potential rivalry between these two. If there is any discrepancy then the risks that have to be incurred is not imaginary also (Nonaka and Takeuchi, 1995). Then those would not be considered the failure of a KBS installation but would unnecessary a nd undesirable side effects of a successful KBS implementation. Stating to the earlier point, these mainly derive from the fact that KBS totally depends on the determining and storing of the knowledge at a given point of time. It would be very tough and would be next to impossible to assess all the critical empirical assessments of the harm that a KBS may cause to an organisation. Considering such a point, there would be a definite negative impact on Job satisfaction and also on the labour quality. Once a KBS is implemented in an organisation, there should be an established value that has to be assigned to the same. The friendliness and the rivalry that exists between the KBS and the knowledge that is with held in the hands of an organisation are like the two poles of a continuum. The whole responsibility of having the data be accessible over the Internet/Intranet for all the individuals of an organisation is solely taken up by the organisation. The main area that is concentrated here in this discussion would be the organisational value of KBS, its assessment, and the effective know how process. There should be a proper and a systematic way to respond to all the questions that could be raised on the three issues (Akerkar and Lingras, 2008). Firstly there should be an assessment of the role and the value of the knowledge of the organisation; the measures of their activation. Only after this is done, there would be a proper understanding of the things that are to happen at a later stage in an organisation. Knowledge management is the whole process of considering and implementing measures that would be dealing with the organisational knowledge. There is always a need to have a suitable definition of this concept. Secondly, the provided definition for a KBS has to be appropriate to the context of investigation of the organisational aspects of knowledge. The relationship between the knowledge management and Knowledge Based Systems has to be established and the same should stand on sound grounds. If there are any mismatches found in the definitions, it would affect drastically on both the knowledge and the method through which the knowledge management is achieved. Thirdly, with a proper assessment of the value of a KBS, it needs a careful description of how a KBS relates to the other aspects of an organisation and the disposition of its knowledge. There is also a question that remains unanswered that is the earning that a KBS can obtain the tools that are used for knowledge management. To do all this, there is a particular framework that has to be presented. 2.5 Management of Knowledge There is a certain need for every organisation to crave for more knowledge than what is acquired by an organisation as it has to survive the competition that exists in the market. Every individual that is linked with any process of an organisation, they have to perform their day-to-day activities and routines; it may even add value to the work that an individual does. The knowledge that is acquired or retained within the organisational limits could be put into use by all the individuals in their day-to-day work. The knowledge that is already retained by an organisation has to be used in all the present scenarios and at the same time there are to be ardent efforts to create new knowledge or information are the only two core areas of concern for any organisation that is considered for this research study (Frappaolo, 2006). The knowledge that is acquired and maintained within an organisation should be relevant to the work that an individual works on and the same differs or changes over the time without any doubts. An organisation maintaining the Importance of Knowledge Management in Organisations Importance of Knowledge Management in Organisations CHAPTER ONE 1.0 Introduction This chapter provides a brief introduction about the research topic along with the research aims and objectives in detail. Further in this chapter, the scope of research, personal interest and the motivation to choose this particular research topic are all discussed briefly. Finally, the dissertation structure content of the six chapters is highlighted. 1.1 Introduction to the Topic The use of Internet and Intranet technologies within an organisation has changed drastically over the past ten years. Modern organisations are striving hard to maintain an appropriate strategy towards knowledge management in order to provide the employees of the organisation with the data related to their work. The main use of using a companys knowledge-base by employees is to help them develop their skills in all aspects and at the same time helps an individual to learn from any mistakes highlighted during projects undertaken. All past experiences and solutions provided at that time are recorded so experts can analyze these mistakes and make sure that they are not repeated in any of their future product developments or assignments. This research will evaluate whether knowledge management is an effective way to enhance an organisations profit and at the same time achieve employee training and development. Furthermore this research will evaluate whether Intranet and Internet services within an organisation play an important role in knowledge management process. 1.2 Personal Interest and Motivation During the learning process at the university, the author was exposed to different modules of Information Technology (IT), such as, Project Management, IT Management, Knowledge Management and Professional Issues that prevail in the present IT industry. Among these modules the author developed a kind of affection with the subject of Knowledge Management and wished to know more about it. Therefore the author has chosen to taken up this opportunity to explore this research topic and gain further understanding of knowledge management in more detail. This has not been an easy task, but with good guidance and advice from my mentors, tutors and my loved ones it has helped to finalize this topic choice and commence the research work. 1.3 Main Topics Discussed In this section, the main topics and sub topics discussed in the literature review are listed: Introduction to Intranet and Internet Services, Information Technology (IT), Impact of the Intranet on Organisations, Knowledge Management Studies, Knowledge Management, Types of Knowledge Management, Benefits of Knowledge Management Implementation in Organisations, Knowledge Circulation Process (KCP) for Organisational Performance and Management of Knowledge. All the above main topic and sub topics are related to one another which gives a complete understanding about the topic and its necessity within todays organisations. With this understanding a survey questionnaire is formulated which is analyzed at later stages of the research work/discussion. 1.4 Scoping of the Research The main purpose of this study is to evaluate whether knowledge management systems are necessary in todays organisation and also the study is to point out the important features of knowledge management when implemented within organisations. This research topic has been a major attraction for many researchers; a lot of studies have been carried out on this topic. At present, the authors research identifies a few opinions about the topic and its importance within the scope of an organisation. 1.5 Aims and Objectives The main aim of this research study is to evaluate whether knowledge management is important in todays organisations and also to discover whether knowledge management helps in employee development and learning processes. Furthermore, the research also provides a chance to evaluate the role of the Internet and Intranet technologies in implementing knowledge management. Below is a list of objectives: To understand the research topic in depth Provide a clear understanding of the role of Internet and Intranet technologies Seek information in relation to Knowledge Management 1.6 Structure of the Dissertation The dissertation structure is divided into six chapters and the contents of each chapter are briefly discussed below: Chapter One In this chapter, a brief introduction concerning the topic is discussed. Furthermore, the aims and objectives of the research topic are detailed, personal interest/ motivation, scope of the research, main topics and sub topics related to the research topic are discussed. Finally, the chapter concludes with a dissertation outline, this provides the reader with a structure of the research work that will be carried out. Chapter Two This chapter mainly focuses on the literature review based on the research topic. The discussion focuses on the analysis of a variety of researchers views and different authors opinions about the chosen topic area. Additionally, literature on knowledge management systems, types of knowledge management, and benefits of knowledge management when implemented within an organisation, knowledge circulation process, Internet and Intranet services within organisations are all briefly discussed. Chapter Three In these chapter different research paradigms, research strategies and data collection methods are discussed briefly, out of which only appropriate research paradigm, research methodology, research strategy are chosen based on the topic. Further in this chapter, assumptions and ethical issues are also discussed. Chapter Four In this chapter, the data collected from participants are gathered together, the data is stored in a Microsoft Excel spreadsheet and the data is then analyzed by relating it to the research aims and objectives in order to meet them. Chapter Five This chapter includes a brief discussion of the analysed results of the obtained data from participants. The data is represented in the form of graphs and each graph is followed by a discussion. Chapter Six This is the conclusive chapter. In this chapter, the obtained results are compared to that of research aims and final conclusions are drawn from the analysis. The discussion focuses on relating to and linking the survey data to the aims and drawing conclusions. Finally, the chapter suggests future recommendations. 1.7 Conclusion This chapter has provided a brief outline of the dissertation structure where the researcher as well as the reader can gain a quick understanding about the work that has been planned. Additionally this chapter has introduced the topic chosen, highlighted the aims and objectives and briefly discussed the main topics within the study that will hopefully provide a clear understanding for both the author and the reader. Furthermore, this chapter also discusses the authors personal interest/motivation behind choosing this particular topic area and the scope of the research. In the next chapter, literature on the research topic is analysed and discussed this: includes opinions of different researchers and authors. CHAPTER TWO 2.0 Introduction The use of intra-organisational information by employees is widely recognized as an essential part of knowledge sharing within organisations. This way of sharing knowledge helps an organisation to tackle supporting operational and strategic corporate decision makers within the organisation. Intranet technology has proven to be one of the effective ways of accessing and disseminating data or knowledge available within the organisation (Lai and Mahapatra, 1998). The main problem that an organisation faces is the decision-making capability. Managers who are responsible for decision making within a project lifecycle are unable to make appropriate decisions due to the required data not being available. Due to large amounts of data that are available within the organisation, organisations are striving hard to find appropriate tools and techniques to manage their knowledge. Although, techniques such as data warehousing and digital libraries are implemented within the organisation, but these services are limited to a certain range. In order to manage these kinds of situations within an organisation, better solutions are evaluated and the term Intranet evolved (Tan, et. al., 2003). Expertise has identified services offered by the Intranet, some of these services that can be utilized are: alternative approach of managing dispersed enterprise data and decision support services. Intranet usage integrates individual, group, departmental, corporate communication and information sharing tasks together and provides a solution or option for each and every individual who uses it. Organisations have developed in terms of managing data available within their departments, sharing of knowledge within their departments, communication within company employees and sharing of knowledge are available for decision making was found to be improved (Lai and Mahapatra, 1998). Intranets can develop the collaboration among employees who are working for an organisation by creating networks of share spaces which are developed based on common understanding. Employees of an organisation can use this service as a medium to share available knowledge and expertise amongst each other. They have the opportunity to interact with their team and share their advice on work carried out. Though the main use of the Intranet in an organisation was meant to be for data sharing, but the extra features with the use of Intranet in organisations made it popular and these services are widely used in organisation irrespective of their market area (Khasnabish and Saracco, 1997). Strategic engagements that are held by an organisation have seen a new topic that has emerged in the knowledge based view of an organisation. This provides us with a theoretical basis on how a knowledge based resource plays a vital role in increasing the sustainable competitiveness of the firm. It also provides us with a clearer picture of how changes could be brought about to ensure no hassle in the process of knowledge management (Hoegl and Schulze, 2005). If an organisation constantly checks on its resources and promotes knowledge based perspective that postulates a competitive advantage and also builds on the privately developed resources, then tacit and explicit knowledge in an organisation will exist. At the same time, the knowledge based view or perception of an organisation assumes that the present knowledge assets exist at any time provided a valid opportunity for sustainable competitive advantage (Kebede, 2010). The use of previously existing assets along with the creation, accumulation and sharing the new assets amongst the other individuals would happen in an easier way by employing Information Technology and an Information System (IS) in that particular organisation, this is considered here. In an organisational view, it can be explained in a convincing manner the reason why a certain number of organisations or firms are more competitive under the prevailing market conditions (Kebede, 2010). Knowledge assets pertaining to a particular organisation are all dependent upon the quality of organisational knowledge and also the intangible assets of the organisation in general. This generally depends on the methods that are used to store the knowledge within the organisational limits and the extent of its usage within its employees. There is a serious need for metrics and statistics to justify all knowledge management initiatives that are taken up on priority within an organisation. Taking the knowledge management process a step forward would help senior management to justify and also help them improve their ability to manage the knowledge assets in a better manner. The benefits that are extracted from the knowledge management are all intangible and there is one method of measurement called the Balanced Scorecard. This would take both the perspectives like Financial and also the others (e.g. customers or internal business processes, innovation and learning etc.) (Liebowitz and Megbolugbe, 2003). However it is not a justifiable fact to relate knowledge management initiatives to performance. One cannot relate knowledge management with performance in every situation within organisational life, There is a need to have a superior metrics system to assess knowledge management performance, with also the ability to clear it; and also at the same time it also suggests futuristic and strategic actions for an organisation to take up. This not just keeps the work organised, but also improves the performance for the knowledge management process. 2.1 KM Studies The discussion that is taken up in previous sections of this dissertation briefly highlights that knowledge management is built on multiple disciplines such as management, computer science and information systems theory. It also has been reviewed in previous knowledge management literature at the start and the same are summarized in Table 1 below by Lee et. al., (2005). Table 1: KM studies, (Lee et. al., 2005) There are few prior Knowledge Management studies that relates with the Managerial and the Social issues. These issues have brought about the needed change and also brought about the necessary importance into place on specific processes and activities within knowledge management such as the knowledge acquisition, generation, storage, distribution, application and also its measurement (Nonaka and Takeuchi, 1995). On the same grounds, the research agenda and also the general perspective of knowledge management based on the literature review are all addressed with the priorities that were set for them without any deviations. There are few points that have taken the managerial perspective and have requested the reasons as to how a ‘learning organisation could obtain sustainable competitive advantage. Work needs to be conducted within the organisation to develop the same knowledge as there would not be any single individual in an organisation who has all the required knowledge. It is not predictable when an individual working with any certain organisation would choose to leave it, for the offer of a better poosition. Hence relying on a single individual for his knowledge could lead to very drastic effects. The way or the process within which the knowledge has been acquired and the way it is assembled and restructured particularly provides a definite competitive advantage for an organisation. As per the scholar Kebede (2010) states, the process of learning was the only sustainable competitive advantage and there has been a single learning situation that is resulted in organisational knowledge (or memory). Corporate memory has a remarkable effect on the present decisions that are taken and also plays a vital role in the success of an organisations operations and the responses to the changes and challenges. There are numerous attempts that are made and numerous methodologies that were put in place to improve and revive the present learnings and learning capabilities of the individual employees in an organisation, this helps an organisation become a ‘learning system (Kingston and Macintosh, 2000). In the process of improving an organisations learning capabilities, there were problems that were identified at various stages of the process by a considerable number of scholars. These identified reasons and issues were then studied to give a better environment to resolve the same. There are also studies that mentioned the relationship of role of Information Technology in Knowledge Management (Lee and Kim, 2001) (Kingston and Macintosh, 2000). There is a general consideration that a Knowledge Management System (KMS) is a specialized Information System for knowledge management using the latest available technologies (e.g. the Internet, Intranet, data warehouses, software agents) to synchronize, facilitate and also to expedite organisation wide knowledge management. Knowledge Management System research primarily consists of general and also conceptual principles, case studies, scenarios and thesis of such systems of a few organisations. A study by Lee and Kim (2001) states that how a KMS can enhance the effectiveness of the teams that sit and analyse the complex, non-recurring problems by improving all the trouble some areas and also improving the way these teams compositions evolve. Knowledge mining would be the synonymous phrase that could be used as like Data mining. Using this we would be able to see our self in a situation where you can provide the right information to the right persons at the right time (Kingston and M acintosh, 2000). The strategic use of the Internet for all such knowledge management activities is well dealt with in lot of activities. There has been a point that was mentioned regarding the usage of the Internet and Intranet in developing the distributed Knowledge Management systems by (Goodman, 2006). XML (Extensible Markup Language) was developed to transport and store data, this is considered as an ideal tool for knowledge retrieval and for use in knowledge management. 2.2 Impact of the Intranet on Organisations Intranet services are growing rapidly within every possible sector of business due to its wide range of benefits. Some of the impacts where Intranet has changed the business strategy are listed below: It is less expensive to implement as it runs inside the organisations network. Excellent performance enhancement can be achieved because of limited user access Employee performance is increased due to availability of necessary resources and advices due to better communication with their expertise. Effective communication amongst the employees Efficient knowledge sharing process within different departments of an organisation Helps to maintain effective customer relationship Immediate access of data regarding organisational data and documents is possible with the help of Intranet service (Bernard, 1996). 2.3 WEB WEB is known as World Wide Web. It is a hypertext document which can be accessed over the Internet. With the use of these links an individual can actually access almost everything, right from an mp3 (MPEG- Moving Pictures Experts Group) file to video files. Different types of documents and books can be read or downloaded using this process. With the help of this facility an individual can perform some of his daily tasks in a different and a convenient way. The use of the Internet and web technology has changed the entire scenario of database management within an organisation on any given day. Due to the popularity of the web, a newer version of World Wide Web is launched and named it as the second version of it. With the help of web 2.0 one can experience a user friendly approach while accessing the Internet. The quality of web pages that are available is different and more exciting when compared to earlier version of web (W3c, 2010). 2.4 Knowledge Management Knowledge management in general tries to organise and make available important information like the know-how, wherever and whenever it is actually needed. This includes processes, procedures, patents, reference works, formulas, best practices, forecasts, fixes and the like (Maglitta, 1996). This process is not only used for managing organisations knowledge base but also looks for the proper management of the same. Utilization of this knowledge within the organisation at right time and at the right place is also ensured as a part of its activities. Success of an organisation depends less on developed products and more on the appropriate utilization of available information, appropriate sharing of information when needed. Thus knowledge management plays a vital and a key role for all these years and it will be change the future of managing the knowledge within an organisation as well (Kebede, 2010). 2.4.1 Types of Knowledge Mainly there are of two types of knowledge that is available for the individuals of an organisation and they are: Explicit Knowledge: This knowledge can be expressed in terms of specific language and is normally expressed in terms of data or formulae. The information obtained can be stored within the Organisational premises easily and reused whenever there is any need for it. Tacit Knowledge This type of knowledge is completely opposite to explicit knowledge. Knowledge is more personal and cannot be stored. It ‘indwells in a comprehensive cognizance of the human mind and body (Kebede, 2010). In simpler words, this type of knowledge is held within an individual and is not available for any other individuals of the organisation. This kind of knowledge in an individual builds a dependency on him and then the works would actually finish in a slower and un-organised manner. 2.4.2 Benefits of KM Implementation in Organisations One can expect an interactive environment around the organisation where people strive for knowledge and also to show their skills, some benefits of KM implementation are listed below: Provide new ways to collaborate. Boosts up productivity. Leads to innovation within the organisation. Overall profitability. Motivation and encouragement within employees. Reusability of resources (Dalkir, 2005). 2.4.3 What are Knowledge Based Systems? Human-centred would be an apt definition for a Knowledge Based System. Knowledge Based Systems derive their roots from the field of Artificial Intelligence (AI) and there are evident attempts from scholars to understand and also to imitate human knowledge in Computer systems. In whatever way we see, a Knowledge Based System falls short of the human intellect and the human touch. The system lacks creative powers like reproducing the same knowledge and also the learning capabilities are relatively primitive (Dreyfus, 1986). Compared to a human as such, there is no comparison with the Knowledge Based System. There is a wonderfully acknowledged fact that the intelligence of a Artificially Intelligent System is quite different from human intelligence. There are a second set of definitions that are defined and which only looks for the characteristics in the architecture of a Knowledge Based System. In such a way of defining a Knowledge Based System, it mainly categorizes four components namely: Knowledge base Inference Engine Knowledge engineering tool A specific user interface and is often natural language based (Ramirez and Antonio, 2007) The core of a Knowledge Based System is defined by the first two components namely the Knowledge Base and the Inference Engine wherein the former one is an active collection of ‘formal knowledge or an active database with lots of ‘formal knowledge, its primary purpose being how that data may be used in Practical life. The latter part, inference engine on the other hand defines the ways in which the knowledge base can be put to use to help resolve the situations at hand for an organisation (Ramirez and Antonio, 2007). The remaining two factors are just the added supplements for the Knowledge base and the Inference engine as these offer instruments for filling the Knowledge base with knowledge and act as a dedicated user interface for the user to understand and view the knowledge. Characteristically a Knowledge Based System user interface has to provide the basic know how and should also question itself letting the system explain its behaviour when the system deals with any particular problem. Definitions of a Knowledge Based System that are defined on the basis of architectural peculiarities are not at all satisfactory as compared to the definitions that are defined on the basis of human intelligence, there is an obvious resistance in the way they actually work with such definitions also (Akerkar and Sajja, 2009). The difference in the definitions could be seen when we consider a system based on neural nets and there are no separating aspects of a knowledge base, inference engine. There would hardly be any difference between the knowledge base and an inference engine in such cases where neural nets are considered for a system. Such definitions take the wrong meaning historical form chosen in several Knowledge Based Systems for the hallmarks of such systems. There is also a third set of definition that is given to a Knowledge Based System to indicate all the organisational IT applications that prove helpful and needful for managing the knowledge assets within an organisation. Few examples for such kinds of Knowledge Based Systems could be expert systems, groupware, data warehouses or even the Intranet. The mentioned applications in an organisation provide the individuals all the information that is needed to them to help them in all their day-to-day activities. These definitions are flatly rejected as these lead to the erosion of the meaning of the term Knowledge-based system. Knowledge Based System in our view is not just any IT system that is used to deal with the Knowledge that is present with an organisation (Leondes, 2000). The definition of a Knowledge Based System that provides the most satisfactory organisation-centred viewpoint comes when we focus on the â€Å"Knowledge Modelling†. Key activity in building a Knowledge Based System in that case is to find a formal model that allows the description of knowledge at a conceptual level or at the knowledge level itself, aiming at uncovering the basic schema linking the central concepts of a given domain in a particular organisation (Akerkar and Lingras, 2008). The best suited examples of formalisms for the knowledge representation are the production rules, predicate logic, frames, neural nets and objects. The definition of a Knowledge Based System as an outcome of the knowledge modelling process is very useful and it actually does not direct any discussions pertaining to the organisational values of it to the characteristics of the technology as such. The actual goals of knowledge modelling process could be achieved only by examining the elements of knowledge validly and then has to be described in any of the formalisms for knowledge representation (Ramirez and Antonio, 2007). Given the focus on the process of knowledge modelling not only aids in gaining the best insight into the characteristics of the knowledge, but also guides the discussions concerning the pros and cons of the use of knowledge. It then leads to the identification why or in which aspect of formalisation is not possible or not advisable (for example, it reduces the flexibility or does not do justice to any specific intricacies). The knowledge modelling process thus acts as a vehicle to show and focus thought about the organisational knowledge and also its functionality. The basic aim is to explore that part of the organisational knowledge and how to capture in the formal schemata, and to describe the benefits and the pitfalls that are implied. There are associated benefits of having a Knowledge Based System in place in an organisation. These act as a way to retain the knowledge even after an individual who has created/compiled it has opted out of the organisation or in their absence. These systems could be used for the new comers in their on-job training purposes to fetch whatever the details that are needed of them. There is a consistent way to improve the decision making process and also helps in increasing the availability of the needed expertise. They provide the building blocks or the Corporate Memory and also promotes of knowledge sharing etc. If the knowledge is well documented under KBS, the sole repository for all such information and knowledge then there wouldnt be any potential rivalry between these two. If there is any discrepancy then the risks that have to be incurred is not imaginary also (Nonaka and Takeuchi, 1995). Then those would not be considered the failure of a KBS installation but would unnecessary a nd undesirable side effects of a successful KBS implementation. Stating to the earlier point, these mainly derive from the fact that KBS totally depends on the determining and storing of the knowledge at a given point of time. It would be very tough and would be next to impossible to assess all the critical empirical assessments of the harm that a KBS may cause to an organisation. Considering such a point, there would be a definite negative impact on Job satisfaction and also on the labour quality. Once a KBS is implemented in an organisation, there should be an established value that has to be assigned to the same. The friendliness and the rivalry that exists between the KBS and the knowledge that is with held in the hands of an organisation are like the two poles of a continuum. The whole responsibility of having the data be accessible over the Internet/Intranet for all the individuals of an organisation is solely taken up by the organisation. The main area that is concentrated here in this discussion would be the organisational value of KBS, its assessment, and the effective know how process. There should be a proper and a systematic way to respond to all the questions that could be raised on the three issues (Akerkar and Lingras, 2008). Firstly there should be an assessment of the role and the value of the knowledge of the organisation; the measures of their activation. Only after this is done, there would be a proper understanding of the things that are to happen at a later stage in an organisation. Knowledge management is the whole process of considering and implementing measures that would be dealing with the organisational knowledge. There is always a need to have a suitable definition of this concept. Secondly, the provided definition for a KBS has to be appropriate to the context of investigation of the organisational aspects of knowledge. The relationship between the knowledge management and Knowledge Based Systems has to be established and the same should stand on sound grounds. If there are any mismatches found in the definitions, it would affect drastically on both the knowledge and the method through which the knowledge management is achieved. Thirdly, with a proper assessment of the value of a KBS, it needs a careful description of how a KBS relates to the other aspects of an organisation and the disposition of its knowledge. There is also a question that remains unanswered that is the earning that a KBS can obtain the tools that are used for knowledge management. To do all this, there is a particular framework that has to be presented. 2.5 Management of Knowledge There is a certain need for every organisation to crave for more knowledge than what is acquired by an organisation as it has to survive the competition that exists in the market. Every individual that is linked with any process of an organisation, they have to perform their day-to-day activities and routines; it may even add value to the work that an individual does. The knowledge that is acquired or retained within the organisational limits could be put into use by all the individuals in their day-to-day work. The knowledge that is already retained by an organisation has to be used in all the present scenarios and at the same time there are to be ardent efforts to create new knowledge or information are the only two core areas of concern for any organisation that is considered for this research study (Frappaolo, 2006). The knowledge that is acquired and maintained within an organisation should be relevant to the work that an individual works on and the same differs or changes over the time without any doubts. An organisation maintaining the

Saturday, January 18, 2020

Digital Communication Essay

We are now living in a generation where instead of writing a letter we will send an email and instead of making a phone call we will send a text; Digital communication has taken over. Digital Communication is any form of communication that happens through any digital media, For example: Twitter, text, you tube and Facebook. A recent example of how digital communication is taking over our language is Facebook. In 2004 Facebook was made global and now 9 years later, 1 in 7 people in the world have a Facebook account. Living in this generation, I have grown up with these social media sites being part of my life meaning, the language my generation use, such as emoticons, abbreviations and Initialism are classed as a normal way of talking. This new style of expressing the English language too many people may be normal and socially excepted, however by doing this we are constantly breaking the rules of Standard English. For my first example of Digital Communication, I have used Initialism. You can see this in source 1, which is from a Facebook convocation I recently had with a friend. An example of this feature is the term ‘IKR’ (I Know Right). The reason I use Initialism is because writing the first letter of each word, in contrast to writing out in full is a lot easier. In this Facebook chat I had with my friend I had an informal tenor toward him as I know he would not judge me on the way I communicated my words, plus, it was a dyadic convocation meaning it was only between us. Not only did I use this feature but also did my friend, showing, that in this generation features like Initialism is a normal way to talk and is not frowned upon by people of this generation. However people who have not grown up with Digital Communication in their lives believe the Standard English rules must not be broken (Prescriptivists) and therefore will disagree with the way some people express their language as they believe it is the ‘wrong’ way. David Crystal, who is a descriptivist; someone who believes digital communication adds a new form of expression and wont judge the way we communicate, has a theory called linguistic eco nomy which basically means we use features like Initialism because it uses as few characters as possible and therefore saves us time. Crystal also shows how Initialism is not actually a new feature of communication but actually can be dated back to 1689 when the term ‘IOU’ (I Owe you) was first said, this is no different to the way the young society used the term ‘lol’ (Laugh out loud). In digital communication without being able to show facial expression, and hear tone of voice being able to express emotion is hard, however people have overcome this problem. In source 3 (text) emoticons are used, emoticons are used to show emotions without having to write it out. By using the available symbols on phones you are able to produce, faces, love hearts, animals etc. In texts and through all digital media ‘: )’ this ‘face’ means happy and this face ‘: (‘means sad. By adding emoticons to the end of your text or Facebook message the person receiving it knows how you are feeling or how the message was intended. Although this can also lead to misjudgement and pr oblems. Symbols arranged like this ‘

Friday, January 10, 2020

Public police system Essay

Science is derived from the Latin word scientia, which denotes, â€Å"knowledge† and it refers to any methodical knowledge-base or standpoint practice which is competent in ensuing in a forecast or predictable result. In its more ordinary limited sense, science refers to a method of obtaining facts based on a scientific technique. On the other hand, Art is the product or procedure of intentionally arranging components in a manner that appeals to the feelings or senses. It encompasses a variety of human activities, formations, as well as forms of expression, comprising literature and music. The denotation of art is examined within a branch of philosophy identified as aesthetics. The public police system is said to favor the science over the art due to a number of reasons: (Poulin, K. C & Nemeth, C, 2005) To start with, the public police system favors the science over the art because of the connection between art and the police. Art is inexorably understood as culture, which is a reflection of Trocki’s syntagm â€Å"when I hear the word culture, I reach for my gun. † The connection between the police and art explicitly discloses that the discourse of art is at all times understood as a sort of a joke in relation to the policeman. Here, the discourse of art is simply the one that relates to as well as mirrors the structure of power, represented and instituted by the policeman himself. (Poulin, K. C & Nemeth, C, 2005, p. 278) Secondly, the police favors the science given that science and technology play a crucial function in contemporary policing. For instance, police make use of forensic science to determine crime more effectively, forgive those who are not guilty as well as convict lawbreakers. Hi-tech information as well as communication systems makes it possible for officers to spent extra time connect with citizens and less moments engrossed with paperwork. In addition, the police favor the science because technology and cutting-edge science are employed in activities of terrorism and organized crime given that the police have to stay one step in front. (Poulin, K. C & Nemeth, C, 2005) Finally, the police use science and technology to fight crime by relying on a progressively more wide variety of sophisticated communications and information technology, other technologies as well as forensic science to serve the community. Some of the important technological and scientific tools that constitute police system’s backbone include: the Police National Computer (PNC), the national fingerprint and DNA database, the Road traffic law enforcement technology as well as the Science and technology in the police force: the future. (Poulin, K. C & Nemeth, C, 2005) Poulin, K. C & Nemeth, Charles P. (2005) Private Security and Public Safety: A Community-Based Approach, Upper Saddle River, NJ: Prentice-Hall Inc†¦ ISBN 0131123742, 9780131123748

Thursday, January 2, 2020

Electronic Banking Floorer Essay Online For Free - Free Essay Example

Sample details Pages: 4 Words: 1335 Downloads: 1 Date added: 2017/06/26 Category Business Essay Type Argumentative essay Tags: Banking Essay Did you like this example? One of the most challenges of e-banking is to create value for business. Successful e-banking investment creates value for present and potential customers and business as well. A base of potential customers is a key to the generation of e-banking transactions. Don’t waste time! Our writers will create an original "Electronic Banking Floorer Essay Online For Free" essay for you Create order Transactions, in turn, generate business value in a number of ways by increasing revenue, decreasing costs and improving market share. In most e-banking startups that fail to create business value, the typical problems are: e-banking plan is not aligned with business strategy, poorly defined requirements inadequate business cases and ineffective management of return on investment In the struggle with economic turmoil and large cost burden, financial institutions such as bankers are focusing on improving the profitability of their customer relationships, reducing distribution costs and enabling more self-service e-banking. Therefore, an important problem confronting e-banking managers is how to control the cost of e-banking. E-bank products and services are a lot more complex than the products of a manufacturing company. The start-up costs of e-banking are expensive, especially in ICT infrastructure. Launching a trusted e-bank is very costly because it requires advertising expen se. Moreover, expenditure on e-banking technology is increasing and considered to be out of control despite of the lower costs of hardware. Typically, the reasons for higher expenditures are: Most organization does not understand the costs associated with ICT asset such as RD expenses, human resources investment. Annual operational budgets increase as a result of complex licensing, maintenance and outsourcing contracts. Failed project result in large financial losses. Using e-banking as a fully integrated part of their business strategy enables banks to increase the attractiveness of their products and services. Strategic alignment is an important driving force to achieve business value through investments in e-banking. Therefore, understanding the strategic risks associated with e-banking adoption is very important. Poor e-banking planning and investment decisions can increase a bankers strategic risk. Indeed, e-banking investment has sufficient potential to allow banks to become even more profitable in an increasingly hostile and competitive environment. Technical issues appear to be the major challenge in the successful adoption of e-banking initiatives such as scope, scale and complexity of equipment, systems, products and services. E-banking systems are complex large-scale system with requirement for high performance, reliability and availability. And even the most technologically sophisticated organization is struggling to manage them. E-banking raises bankers dependence on IT hence raises the technical complexity. Typical problems arising due to these complexities are: Managing diverse technical competence. Managing diverse technical infrastructures. Adapting to a rapid changes and new development. Managing external relationship and service providers. The Basle Committee on Banking Supervision has recognized the important role of bank supervisors and regulators in ensuring that the risks associated with the use of technological developments in e-banking are well managed. Regulations on e-banking transactions that banks must follow, place an increased management burden on banks and higher costs arising from violation or nonconformance with laws, rules and regulations. Non compliance exposes the bank to be fined, civil money penalties and payment of damages. In addition, non compliance can lead to a decreased reputation, reduced image value and limited business opportunities. Banks as well as consumers has serious concerns about the security of Internet access to client accounts, which was the biggest challenge. The growth of e-banking have also carries a new set of security risks. The challenge is to address these risks without impairing further development of e-banking. These risks have increased as a result of several factor s: The use of internet which exposes the internal systems to the world. Phishing, viruses and hacker. Increasing misuse of information. Poor awareness of security. According Symantec as plotted in Exhibit 2-2, financial sector are most likely to yield data that could be used in financially motivated attacks. This leads to understand that offering e-banking services will be exposure the banks to security risks. E-banking contributes value to bankers such as enhanced image, revenue generation, cross-selling, customer retention and cost saving. The main driving forces behind e-banking contributions are customer retention and enhanced image as ranked in Exhibit 2-3. Enhanced Image: e-banking is considered as a new marketplace to attract potential customers. E-banking can help to enhance their image of the organization as a customer focused innovative organization. Innovation builds up a reputation for the banks that customers learn to trust and comment positively to other people. An attractive banking website with a large portfolio of innovative products will enhance a banks image (Shah Mahmood and Clarke Steve, 2009). Revenue Generation : e-banking allows bankers to offer mass market and exploit extra sources of revenue from transactional commissions servicing charge, advertising and financial information subscriptions. Cross-Selling: E-banking can take advantages of cross-selling effects to offer personalized services and an additional channel to existing customers and reach new customers. Customer Satisfaction Retention: in the e-banking environment, banks can use collaborative and interactive way to offer recommendations based on past transaction profile and customize the services to meet all their needs. Thus, customer can have full access to relevant financial information; do more self-service for themselves and no need to rely on the staff at the branch office. Consequently, e-banking increases customers loyalty and satisfaction. Cost saving: An online transaction costs the bank much less than a face-to-face interaction with a banks teller (World Almanac Book of Facts, 2001). According to study by MCOM â€Å"Mobile Banking Research Paper, Nov 2009† as shown in Exhibit 2-3, the cost per bank transaction for the customer varies from $4 for full service branch transactions, to $3.75 for call center transactions, $0.17 for transaction via the Internet and $0.08 for transaction via mobile. The cost can go down further with the increased use of these facilities. E-banking is the cheapest transaction channel so banks can get cost savings, reduce their branch networks and downsize workforce. Convenience: Consumers can execute various banking transactions such as bill paying, check ordering, account managing, money transferring and shopping in any location with an internet connection, at any time, without leaving home. Accessibility: E-banking has the potential to provide customers with accessible financial services 24 hours a day, 7 days a week and 365 days a year because it does not requires a bricks and mortar infrastructure that is operated by the staff. Consumers can access various banking services electronically. Time savings: People are becoming busier and hence are seeking to carry out transactions within seconds at a time of their convenience. Reduced waiting rime, customers prefer Internet banking instead of traditional banking. Successfully leveraging e-banking to transform the banks and create value-added products and services has become a universal business competency. Leveraging e-banking drives value, reduces transaction costs and increases revenue. Increased revenue as a result of offering e-channels are often reported, because of possible increases in the number of customers, retention of existing customers and cross selling opportunities (Shah Mahmood and Clarke Steve, 2009). E-banking will enable the bank to leverage e-channels towards: Accelerating the growth of banking business; facilitating the offering of more services; increasing customer loyalty; and attracting new customers. Although the benefits of e-banking are i rreplaceable, there are some drawbacks and concerns should be aware: Restricted Customers: Some customers do not want to use e-banking services as they find it difficult to know how to use a computer. A wrong click causing monetary losses makes them afraid of using e-banking rather than traditional banking. Getting familiar with the banks website requires much time to read the instruction. Impersonal: Doing transactions on the internet can be very impersonal. In other words, you can only do business with the use of a computer. No teller receives and checks your money or corrects wrong information that you might have if you deal with real people. Trust: Reasons that many customers have not used e-banking services are that they do not trust the e-banking services through the internet. Some customers prefer trusting real staff to a machine, especially in the matters of money. IT Challenges, 2007 IT Governance Institute, www.itgi.org. IT Challenges, 2007 IT Governance Ins titute, www.itgi.org IT Challenges, 2007 IT Governance Institute, www.itgi.org