final's question #4

TOPIC: THE KNOWLEDGE - BASED SYSTEMS (KBS)

Question # 3:
1. Describe or define KBS.
2. Distinguish KBS from MIS.
3. Illustrate (give examples) how KBS can improve company's competitive advantage and organizational performance.

1. Describe or Define KBS

Knowledge Based Systems- a knowledge-based system as a computer system that is programmed to imitate human problem-solving by means of artificial intelligence and reference to a database of knowledge on a particular subject. Knowledge-based systems are systems based on the methods and techniques of artificial intelligence

2. Distinguish KBS from MIS

KBS is an artificial intelligence system that gives the best course of action or a set of step-by-step action in solving a particular problem. KBS gives course of action to the user and an explanation why the user should take the action. Knowledge Base System is also a part Of Managemet Informtion System. Applying a KBS would cut the cost of a company because they dont have to hire experts to work on a particular problem while in MIS a computer system designed to help managers plan and direct business and organizational operations and actively seeks to leverage technology to improve efficiency and effectiveness, reduce paper, streamline business processes, reduce the need for manual intervention, provide seamless integration between functional areas, and position the agency to share data with other law enforcement entities.

3. Illustrate how kbs can improve company's competitive advantage and organizational performance

By making some good decisions to the company so that the company will improve and by having a good relationship. A knowledge-based strategy formulation should thus start with the primary intangible resource: the competence of people. People are seen as the only true agents in business; all tangible physical products and assets as well as the intangible relations are results of human action, and depend ultimately on people for their continued existence. People are seen to be constantly extending themselves into their world by both tangible means, such as craft, houses, gardens and cars and intangible corporate associations, ideas, and relationships.

People can use their competence to create value in two directions: by transferring and converting knowledge externally or internally to the organisation they belong to. When the managers of a manufacturer direct the efforts of their employees internally, they create tangible goods and intangible structures such as better processes and new designs for products. When they direct their attention outwards, they will in addition to delivery of goods and money also create intangible structures, such as customer relationships, brand awareness, reputation and new experiences for the customers.

reference:

Allee V. (2000): Reconfiguring the Value Network, Jrnl of Business Strategy, Vol 21, N 4,2000
Blackler F. (1995): Knowledge, Knowledge work and organisations: an overview and interpretation. Organisation Studies vol 16 (6) 1021-46
Sveiby (1992): Strategy formulation in Knowledge-intensive industries. In Hussey (ed) International Review of Strategic Management vol 3, 1992

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Created By: Nikki Joy Castaño
Mgt 7 5:15- 6:15