Knowledge management

Knowledge Management (KM) means collecting, organizing, and saving important

information inside a company so that people can find and use it easily.

If this information is not easy to find, employees waste time searching for it instead of doing their
main work. This slows down the company and can cost money.

To fix this, companies use a Knowledge Management System (KMS). This is a tool (like a
software or database) where all the useful information is stored in one place. Everyone in the
company can access it when needed.

When companies have a good KM system:

Employees learn and share faster

Decisions are made quickly

Training and onboarding become easier

Employees feel more satisfied and are more likely to stay in the company.

Types of Knowledge
1. Tacit Knowledge (Personal Experience):
This is knowledge you gain through experience.
It is in your mind, and hard to explain to others.
You may “just know” how to do something, but you can’t easily put it into words.
You learn it by doing things, not by reading or studying.

Examples:
How to recognize someone’s face.
How to stay calm under pressure.
Good leadership or communication skills.
How a doctor “feels” what might be wrong with a patient, based on experience.

>❗ It’s very hard to write this type of knowledge in a book or guide.
✅ 2. Implicit Knowledge (Not Written Yet):
This knowledge can be written down, but hasn’t been written yet.
It is often inside people's minds or part of how they do their job.
It is also called “know-how” — the way someone does something.

Examples:
A worker knows how to fix a machine, but there’s no manual for it.
A manager knows the best way to solve a team problem, but it’s not in a guide.
A chef’s way of making a dish better that’s not in the recipe.

> ✅ Once someone explains or writes it down, it can become explicit knowledge.
✅ 3. Explicit Knowledge (Written Down and Shared):
This is knowledge that is already written down and documented.
It’s easy to read, share, store, and teach others.
It’s often used in training new employees or building systems in a company.

Examples:
Instruction manuals.
Company policies or rules.
Training guides, presentations, or online tutorials.
Databases, reports, white papers, and case studies.

Knowledge Management Process

The knowledge management process is the way a company handles its knowledge — how it is
created, stored, and shared so that everyone in the company can use it.

There are three main steps:

🧠 1. Knowledge Creation – Finding or Creating Useful Knowledge

In this step, the company gathers or creates knowledge.

This can be:

New ideas from employees.
Lessons learned from past experiences.
Feedback from customers.
It can be something new or something already known but not written down yet.

Example:
A team finds a new way to solve a problem and writes it down so others can use it.
A customer service worker shares a shortcut to solve issues faster.

>✅ The goal is to collect and document all important knowledge.

💾 2. Knowledge Storage – Saving Knowledge in One Place
In this step, the company saves the knowledge in a safe and organized way.
Usually, this is done using technology, like:
Databases
Online folders
Internal company websites (intranets)
The information must be well organized, easy to read, and searchable.

Example:
Saving training videos in a shared folder.
Uploading a PDF guide to the company’s knowledge base.

>✅ The goal is to make sure knowledge is not lost and can be easily found later.
🔄 3. Knowledge Sharing – Spreading Knowledge Across the Company
Now that the knowledge is created and stored, it must be shared with the right people.
The company must make sure everyone knows where to find it and how to use it.
This can be done through:
Team meetings
Training programs
Internal newsletters
Chat tools or apps

Example:
A company sends a monthly update with helpful tips.
New employees get trained using stored knowledge.

Knowledge management Tools:-

Organizations use different tools to collect, store, share, and manage knowledge. These tools
help employees find useful information easily and work more efficiently. Here are some common
tools:

1. Document Management Systems

These are digital storage systems where companies keep files like PDFs, images, and Word
documents.

Example: A folder where employees can find reports, templates, or "lessons learned" from past
projects.

Purpose: Makes it easy for employees to find and share important documents.

2. Content Management Systems (CMS)

These help manage content for websites, such as blogs, pages, videos, or podcasts.
Users can easily edit and publish content without needing coding skills.

Purpose: Helps organizations manage online content like a company blog or internal training
videos.

3. Intranets

A private network used only within the organization.

It helps employees access tools, resources, and information—like a company portal.

It often includes things like employee directories, search tools, and internal announcements.

Purpose: Improves internal communication and teamwork.

4. Wikis

Similar to Wikipedia, but for a company’s internal use.

Employees can create or edit pages to share knowledge (like how to do a task).

Risk: Since anyone can edit, there’s a chance of incorrect or outdated information.

Purpose: Encourages easy knowledge sharing.

5. Data Warehouses

A system that collects data from different places (like sales, customer feedback, etc.) into one
place.

This data is used for analysis, reporting, or even AI and machine learning.

Purpose: Helps the company make smart, data-driven decisions.

Business Intelligence :-
Business Intelligence (BI) means using facts, data, and tools to help businesses make better
decisions.
It’s not just one idea — it’s a combination of methods, processes, and technologies that collect
and analyze information about a business.

The main goal of BI is to understand what’s happening in the business, why it’s happening, and
what should be done next.

Instead of guessing, BI uses data, reports, and analysis (sometimes combined with experience
and intuition) to guide decisions, reduce risks, and improve results.

Process Used in Business Intelligence:-

Business Intelligence (BI) is a way of using processes, technologies, and tools (like Informatica
or IBM software) to take raw data, turn it into useful information, and then convert that
information into knowledge.

From this knowledge, important insights can be found—either manually or with the help of
software—which help decision-makers take smart, impactful actions.

In short, BI means giving the right, accurate, and ethical information to the right people at the
right time so they can make better decisions.

Key features of Business Intelligence:

•Fact-based decisions – Decisions are made using real data, not guesses.

•360° view of the business – You get a complete picture of what’s happening.

•Better teamwork – Everyone works with the same information.

•KPI measurement – Track important metrics (Key Performance Indicators) using past data.

•Benchmarking – Compare performance to standards and set new goals.

•Trend & problem detection – Spot market trends and business issues early.

•Data visualization – Turn data into easy-to-understand charts/graphs to improve decision

quality.

•Accessible to all sizes – Useful for big companies and small businesses because it’s affordable.

Types of Users of Business Intelligence:

Analyst (Data Analyst or Business Analyst) – They act like the company’s statisticians. They use
BI tools to study historical data stored in the system and find useful patterns or insights.
Head or Manager of the Company – They use BI to make smarter, faster decisions, which
increases efficiency and ultimately improves the company’s profits.

IT Engineer – They use BI to help their company manage and analyze technical and operational
data.

Small Business Owners – Even small businesses can use BI because it’s affordable and helps
them make informed decisions.

Government Officials – BI helps them make better decisions for policies, planning, and public
services.

Types of Decisions Supported by Business Intelligence:

Strategic Level – This is where the company’s top leaders (like CEOs or directors) decide the
overall long-term plans and strategies for the business.

Tactical Level – Once the strategy is set, this level focuses on the methods, tools, and
technologies needed to carry it out. It also makes sure the data is regularly updated.

Operational Level – This is where day-to-day decisions are made to keep the system and
business running smoothly.

Applications of Business Intelligence:

In company decision-making – BI helps leaders and managers make better business decisions.

In data mining – BI is used to find useful patterns and knowledge from large amounts of data.

In operational analytics & management – BI analyzes day-to-day operations to improve

efficiency.

In predictive analytics – BI helps predict future trends and outcomes based on past data.

In prescriptive analytics – BI suggests the best actions to take for a given situation.

Turning unstructured data into structured data – BI organizes messy, raw data into a clear,
usable format.

In decision support systems – BI provides tools and data to help people make the right
decisions.
In executive information systems (EIS) – BI gives top executives a quick, high-level view of
business performance.

Business Intelligence Tools and Software

1. Tableau – A tool for connecting to different data sources, creating interactive dashboards, and
sharing your insights easily.

2. Microsoft Power BI – A cloud-based BI tool for connecting to various data sources, making
visual reports, and sharing them online.

3. QlikView – A BI tool for creating interactive dashboards and exploring data in creative ways.

4. SAP BusinessObjects – A full BI suite with tools for data visualization, reporting, and
analytics.

5. IBM Cognos – A BI tool for performance management that lets you make reports,
dashboards, and scorecards.

6. Oracle Business Intelligence – A complete BI suite for data visualization, reporting, and
analytics.

7. MicroStrategy – A BI tool to create dynamic dashboards and detailed reports.

8. SAS Business Intelligence – A full BI suite with tools for data visualization, reporting, and
analytics.

9. TIBCO Spotfire – A BI platform for creating interactive dashboards and exploring data in new
ways.

10. Looker – A BI and data visualization tool for building interactive dashboards and analyzing
data in depth.

Advantages of Business Intelligence:-

1. Better decisions – BI tools give you up-to-date and accurate information so you can make the
right choices based on facts, not guesses.

2. Saves time – BI can automatically do many data analysis tasks, so you don’t have to do them
manually. This frees up time for other important work.

3. Organized data – BI helps store and arrange data in a way that makes it easy to find what
you need.
4. Clear view of the business – BI shows how the whole business is performing, so you can
quickly spot problems and fix them.

5. Know your customers – BI helps you understand customer needs and behavior, so you can
make products and services that suit them better.

6. Save money – BI finds waste and inefficiencies, helping you cut costs and increase profits.

7. Plan for the future – BI uses past data to predict future trends, so businesses can prepare in
advance.

8. Stay ahead of competitors – BI gives valuable insights that can help a business make smarter
moves than its rivals.

9. Better teamwork – BI makes it easy to share information between teams, leading to better
cooperation and decisions.

10. Track performance – BI monitors important business numbers like sales, customer
satisfaction, and employee performance to keep the business on track.

Disadvantages of Business Intelligence:-

1. Complexity: The implementation and upkeep of business intelligence systems can be
extremely difficult and complicated. This may be a drawback for companies with constrained IT
resources.

2. High costs: Some businesses find it prohibitively expensive to implement and purchase
business intelligence technologies.

3. Business intelligence strongly depends on accurate and current data. The insights produced
by business intelligence technologies could not be accurate if the data is inconsistent,
erroneous, or incomplete.

4. Data Security: Business intelligence systems handle and store a lot of sensitive data, which, if
not adequately protected, is susceptible to security breaches.

5. Dependence on IT: Because business intelligence solutions frequently rely largely on IT

assistance, it may be challenging for enterprises to quickly get the data they require.

6. Limited scalability: For firms with huge data volumes, business intelligence solutions may not
be able to handle enormous amounts of data.
What is a decision-making process?
Decision-making process means following a series of steps to choose the best option or action
to solve a problem or meet a need.

In business, managers use this process to decide the best plan for the company’s projects and
take actions to achieve goals. Good business decisions are usually based on real facts and
data, often using Business Intelligence (BI) and analytics tools.

In business, there are often many different paths or strategies to choose from. Big companies
have to make many decisions every day, so having a clear and effective process is important for
success.

Most decision-making processes include these five main steps:

1. Find the problem – Understand what issue or challenge the business is facing.

2. Gather information – Look for details about different options and how they might work out.

3. Choose the best option – Compare the choices and select the most suitable one.

4. Put the decision into action – Apply the chosen option in real business work.

5. Check the results – Monitor what happens, see if the decision works well, and make changes
if needed.

Data-driven decision-making
Traditional way of decision-making

In the past, business managers and company leaders mostly made decisions based on their gut
feeling or personal experience.

For example: a shop owner might decide to stock a product just because he feels customers will
like it.

The problem here is that gut-based decisions are hard to prove or explain later if something
goes wrong.

Also, people have biases (mental shortcuts or personal opinions) that can lead to poor
decisions.

Modern way: Data-driven decision-making

Nowadays, businesses use data and systematic methods to make decisions instead of relying
only on intuition.

This means they look at numbers, facts, and evidence before choosing a path.

They use techniques like:

Cost-benefit analysis (checking whether the benefits are greater than the costs).

Predictive modeling (using past data to guess what might happen in the future).

Advantages of data-driven decisions

1. Consistency: Instead of treating each situation as completely new, businesses can create
rules and processes that can be reused.
Example: If data shows certain ads always bring good sales, the company can automatically run
similar ads.

2. Less bias: A structured process reduces the effect of personal opinions, emotions, or blind
spots.

3. Better accountability: If someone asks, "Why was this decision made?" managers can point to
the data as proof.

Limitations of data-driven decisions

Data is not perfect. Sometimes data can be wrong, incomplete, or misleading.

Wrong data choice: If managers pick the wrong kind of data, they may still make a bad decision,
even though it looks “data-driven.”

Over-dependence: Blindly following data without checking real-world outcomes can also create
problems.

Challenges in the decision-making process

1. Balancing data and intuition

Sometimes, data (facts and analysis) suggests one option, but a manager’s gut feeling says
something else.
Managers may not trust the data if it goes against their experience or knowledge.

They might even feel that their skills and judgment are being ignored, which can cause
resistance to data-driven decisions.

2. Getting everyone to agree

Even if a decision is correct, people in the company may not support it if:

The decision-making process isn’t clear.

The reasons behind the decision aren’t explained properly.

This lack of communication can lead to conflicts, confusion, or low motivation.

3. Need for communication and change management

Businesses must explain decisions clearly to all employees, managers, and stakeholders.

They should also have a plan for handling changes that result from those decisions (like new
rules

What is a decision-making model?

A decision-making model is basically a step-by-step system or guide that helps people choose
the best option when they have many choices.

Instead of guessing or depending only on feelings, a model gives a clear process to follow.

It works like a map that shows you the right direction when you’re confused about which path to
take.

Why use a decision-making model?

1. Makes the process easier: It provides rules or guidelines so you don’t get lost while making
big decisions.

2. Brings clarity: Everyone (managers, employees, stakeholders) can see and understand how
the decision was made.
3. Useful for businesses: Companies often use it when they need to:

Choose a new software or tool.

Decide on a new plan or strategy.

Implement changes that affect a lot of people.

Benefits of decision-making models

Fair and logical: The decision doesn’t depend only on one person’s opinion.

Transparent: The process is open and can be explained to others easily.

Applicable everywhere: Can be used in different departments, industries, or even daily life.

Types of decision-making models

1-Rational models:- The rational model is the most common type of decision-making model.
It is logical (based on facts, not emotions).
It is step-by-step (sequential).
It focuses on listing as many possible options as you can, then carefully comparing them.

Steps in the Rational Decision-Making Model

1. Identify the problem or opportunity:-

First, find out what the issue is or what chance you want to take.
Example: Sales are going down → problem. Or, a new market is opening → opportunity.

2. Establish and weigh decision criteria:-

Decide what factors are important in solving the problem.
Example: Cost, time, quality, customer satisfaction.

3. Collect and organize all related information:-

Gather all the data, facts, and details needed.
Example: Market research, financial reports, customer feedback.

4. Analyze the situation:-

Study the data to fully understand the problem or opportunity.

5. Develop a variety of options:-

Think of as many solutions as possible.
Example: Launch a new ad campaign, cut prices, or improve product quality.

6. Assess all options and assign a value to each one:-

Look at the pros and cons of every option.
Give each option a score or value based on how well it meets the criteria.

7. Decide which option is best:-

Choose the option with the highest value or the one that best solves the problem.

8. Implement the decision:-

Put the chosen solution into action.

9. Evaluate the decision:-

After implementation, check the results.

2-Intuitive Decision

The intuitive model is different from the rational one.

It doesn’t follow strict logic or step-by-step analysis.
Instead, it is based on intuition (inner knowledge, gut feeling, or instinct).
But it’s not just a random feeling — it also comes from experience, pattern recognition, and
quick judgment.

How it works

1. Gut feeling: A person feels strongly that one choice is better than the others, even if they
can’t fully explain why.

2. Pattern recognition: The person may have seen similar situations before, so their mind
quickly recognizes a pattern and points to the likely solution.

3. Prominence of the option: Sometimes one option just “stands out” as the most important or
meaningful, so it feels right.

Example

A doctor treating a patient might quickly sense the illness without doing a long list of tests
because their experience helps them recognize symptoms instantly.

A business leader may feel a new product will succeed because it reminds them of a similar
product they saw in the past.
3-Recognition primed models
This model is a mix of rational and intuitive decision-making.

Unlike the rational model, where you compare many options, here the decision-maker usually
considers only one option.
That option comes from their experience and intuition (like the intuitive model).
Then, they do a quick mental check to see if it will work (like in the rational model).

Steps in Recognition-Primed Model

1. Identify the problem clearly:-

Understand what the issue is, its details, signals (cues), expectations, and business goals.
Example: A project is delayed, and you need a quick solution.

2. Think through the plan (mental simulation):-

Imagine how the option will work in real life.
Check if it looks practical or if changes are needed.

3. Make and implement the decision:-

If the option seems good enough, go ahead and put it into action.

4. Consider alternatives only if it fails:-

Unlike the rational model, you don’t compare many options at the start.
You only look for other solutions if the first plan doesn’t work.

Example

A firefighter arrives at a burning building. Instead of weighing many options, he quickly

recognizes (from past experience) that the fire will spread fast in a certain direction. He
immediately acts on one plan, tests it mentally, and if it looks safe, he orders his team to follow
it. If it doesn’t work, only then does he look for another option.

4-Creative models
The creative model is about using imagination and unconscious thinking to solve problems.
First, you gather information and come up with some initial ideas.
Then, you step back and stop thinking about the problem directly.
During this incubation period, your mind works in the background (subconsciously).
Suddenly, you get a realization or “aha!” moment where the solution becomes clear.

Steps in the Creative Model

1. Collect information and insights:-
Understand the problem and gather knowledge.
Example: A company wants to design a new ad campaign.

2. Generate initial ideas:-

Brainstorm a few possible directions.

3. Incubation period:-
Take a break from active thinking.
Do something else (walk, sleep, listen to music).
The unconscious mind keeps processing the problem in the background.

4. Realization (aha! moment):-

Suddenly, the solution or best idea comes to mind naturally.

5. Test and finalize:-

Check if the idea works in reality. If yes, use it.

Decision management
Decision management (also called enterprise decision management or business decision
management) is a process that helps businesses make better decisions.

It uses all available information to make decisions more:

Accurate (precision)
Consistent (same good quality every time)
Flexible (quickly adaptable to changes)

It also considers risks and time limits while making choices.

Key Elements of Decision Management

1. Decision models – structured methods that guide how decisions are made.

2. Decision support systems (DSS) – software/tools that help managers choose the best option.

3. Business rules & business intelligence – clear rules and data insights to guide decisions.

4. AI and predictive analytics – using artificial intelligence and data patterns to predict outcomes.

5. Continuous improvement – always refining and updating the process.

How it works
Decisions are treated like assets that can be reused, not one-time events.
Technology is added at important decision points to either:
Fully automate the decision (e.g., a loan approval system automatically decides yes/no).
Or suggest options to a human, who makes the final choice.

Where it is used

Banks, financial services, insurance companies often use decision management.

It is especially helpful when companies need to make a very large number of decisions quickly.
Example: Approving thousands of credit card applications daily.

Automation ensures decisions are faster, more reliable, and based on data rather than only
human judgment.

What is GDSS?
GDSS (Group Decision Support System):
It is a computer-based system that helps a group of people make decisions together. Instead of
just one person using a Decision Support System (DSS), GDSS allows many people to share
ideas, exchange information, and work together to solve problems.

Key Points in Simple Language:

1. Full Form: GDSS = Group Decision Support System.

2. Purpose: Helps groups (not just individuals) make better decisions.

3. How it works:

Allows members to share files and information.

Lets everyone give their opinion.

Combines individual ideas into one group decision.

Supports communication during discussions.

4. Special Feature:

Keeps members’ opinions private if needed.

Makes group meetings and discussions smoother.

5. Other Names:

Group Support System (GSS)

Computer-Supported Cooperative Work (CSCW)

Electronic Meeting System (EMS)

Groupware (software used for this purpose).

Advantages of GDSS
1. More Information in Less Time:-

Many people can work together at the same time.

This helps collect a large amount of information quickly.

2. Greater Participation:-

Everyone gets a chance to share their opinion freely.

Because of anonymity (names hidden), people are not afraid to speak honestly.
This reduces “groupthink” (when people just agree without thinking).

3. More Structure:-

Discussions stay on topic.

Unnecessary or off-track talks are reduced.
Helps the group stay focused on the problem.

4. Automatic Documentation:-

All ideas, comments, and decisions are saved by the system.

The final result is available instantly.
Graphics and visuals make the information easy to understand.

Disadvantages of GDSS

1. High Cost:-
Setting up GDSS needs special rooms, computers, software, and network.
This makes it expensive.
2. Security Issues:-
If the system is rented or handled by outsiders, there is a chance of data leakage.
Employees at a lower level might misuse sensitive information.

3. Technical Problems:-
GDSS depends on internet, LAN/WAN, and power.
If there is a power cut or connection failure, the system won’t work.

4. Typing Skills Required:-

People who are slow at typing may feel left out or frustrated.
This can reduce their participation.

5. Need for Training:-

Not everyone learns at the same speed.
Some members may need extra training to use GDSS effectively.

6. Message Misunderstanding:-
Since there is less face-to-face talk, messages can be misunderstood.
This can create confusion among members.

Features of GDSS
1. Easy to Use:-
GDSS has a user-friendly interface.
Members can work with it without much difficulty.

2. Better Decision Making:-

Provides tools and a virtual conference room.
People in different places can work together and make stronger decisions.

3. Helps with Complex Decisions:-

Especially useful for semi-structured and unstructured problems.
Supports middle and top managers in making tough decisions.

4. Specific and General Support:-

A facilitator manages the process (idea sharing, discussion, voting, ranking).
Also helps members in using the system smoothly.

5. Covers All Phases of Decision Making:-

Supports all four steps:
Intelligence (finding the problem)
Design (thinking of solutions)
Choice (selecting the best solution)
Implementation (putting the solution into action)
6. Encourages Positive Group Behavior:-
Members can share ideas without fear of criticism.
This leads to more open discussions and teamwork.

Components of GDSS
1. Hardware:-
Includes computers, networking devices, display boards, and audio-visual equipment.
Also includes the physical setup: room, tables, chairs, and conference facilities.

All this helps create an environment suitable for teamwork and group discussions.

2. Software Tools:-
Special programs like electronic questionnaires, brainstorming tools, idea organizers, and
voting/prioritizing tools.

These tools help the group to:

Collect and organize ideas
Set priorities
Form policies
Make decisions
Keep records of the meeting

As a result, meetings become faster, smoother, and more productive.

3. People:-
Includes the participants of the meeting.

A facilitator (a trained person) guides the process, keeps the meeting on track, and manages
tools like voting or idea sharing.

Technical staff provide support for hardware and software.

Together, people make sure the system runs effectively.