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Strategic Information Systems

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Strategic Information Systems
Section 1 – Introduction and Case Background

“Knowledge management systems are knowledge-based systems that support the creation, organization and dissemination of business knowledge within the enterprise.” (O’Brien and Marakas, 2006, p15)

In today’s information age we are constantly reminded of the importance of storing or retaining knowledge; with more people now employed as knowledge workers than ever before, the concept of a knowledge management system to retain within an organisation its knowledge and make it accessible and available to the staffs that require it is almost imperative.

Pearlson and Saunders (2006) define knowledge management as the processes necessary to generate, capture, codify, and transfer knowledge across the organization to achieve competitive advantage.

This research report looks at two organisation case studies where a KMS has been implemented, one large organisation with many employees and one small enterprise with employees numbering around twenty.

Case Study One – Douglas Machines

Douglas Machines Inc. is a specialist machine manufacturing company based in Minnesota in the USA that design and manufacture packaging machines, primarily used by large food companies. (See appendix 1) Douglas Machines is an employee owned organisation that relies heavily on ‘engineering trade secrets’ or ‘Intellectual Capital’ held within the knowledge of its employee owners, and makes for a unique case study since all employees, as owners, have a vested interest in sharing their personal knowledge.

“Intellectual Capital is defined as knowledge that has been identified, captured, and leveraged to produce higher-value goods or services or some other competitive advantage for the firm” (Pearlson and Saunders, 2006, p314)

Case Study Two - Physicians Advantage Consulting (PAC)

The second case study is that of Physicians Advantage Consulting (PAC), a small California based professional services firm with around twenty employees. PAC

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