Information Systems Management

BIS541 Information Systems Management
Developing a Knowledge Management (KMS) OR a Customer Relationship
Management System (CRMS) for a Small Business
Assignment 2, S2, 2022 (Group of 2/3)
Due Date: Friday week 12
As per the Appendix below, Management Information Systems (MIS) is categories into diverse systems where
each is designated for different levels of management and/or different applications within an organization.
Assignment 2 will address two of the fast-growing types of information systems management, namely
Knowledge Management Systems (KMS) and Customer Relationship Management Systems (CRMS). The
appendix introduces what these systems are their benefits to organizations, their categories as well as a general
overview about their challenges, use and benefits. Your assignment (2) is to build a KMS OR a CRMS
only one NOT both)
for either of the followings:
1- small clinic (small medical centre),
2- a small privately-owned hotel,
3- or a privately-owned travel agency.
This will be achieved by understanding the appendix’s explanations about KMS as well as your own research on
CRMS and the lectures explanations. You must assume that the business of your choice has NO KMS or
CRMS and you have to develop a KMS OR CRMS
from scratch for the business. You must base your system
on the specifications in the appendix document and on discussion with your lecturer at early stages so that you
complete your assignment successfully.
In your assignment you must include, but not limited, the followings:
1- A description of the business
2- The data sources and the data types of the business
3- Why knowledge or customers information are important for the business (administrative, customer,
suppliers etc.,)?
4- What are the steps to be followed in building the KMS OR CRMS?
5- Who will benefit from the KMS OR CRMS?
6- Develop a framework to show the process of your KMS OR CRMS.
7- There could be other aspects you might want to include in the assignment. If in doubts, discuss with the
(Adapted from: Management Information Systems: In Business, in Academia, and in the Future, Smartsheet)
Categories of Management Information Systems
Management information system is a broad term that incorporates many specialized systems. The major types of systems
include the following:
Executive Information System (EIS): Senior management use an EIS to make decisions that affect the entire
organization. Executives need high-level data with the ability to drill down as necessary.

Marketing Information System (MkIS): Marketing teams use MkIS to report on the effectiveness of past and
current campaigns and use the lessons learned to plan future campaigns.
Business Intelligence System (BIS): Operations use BIS to make business decisions based on the collection,
integration, and analysis of the collected data and information. This system is similar to EIS, but both lower level
managers and executives use it.
Customer Relationship Management System (CRM): A CRM system stores key information about customers,
including previous sales, contact information, and sales opportunities. Marketing, customer service, sales, and
business development teams often use
Sales Force Automation System (SFA): A specialized component of a CRM system that automates many tasks
that a sales team performs. It can include contact management, lead tracking and generation, and order
Transaction Processing System (TPS): An MIS that completes a sale and manages related details. On a basic level,
a TPS could be a point of sale (POS) system, or a system that allows a traveller to search for a hotel and include
room options, such as price range, the type and number of beds, or a swimming pool, and then select and book
it. Employees can use the data created to report on usage trends and track sales over time.
Knowledge Management System (KMS): Customer service can use a KM system to answer questions and
troubleshoot problems.
Financial Accounting System (FAS): This MIS is specific to departments dealing with finances and accounting,
such as accounts payable (AP) and accounts receivable (AR).
Human Resource Management System (HRMS): This system tracks employee performance records and payroll
Supply Chain Management System (SCM): Manufacturing companies use SCM to track the flow of resources,
materials, and services from purchase until final products are shipped.
Types of MIS Reports
At their core, management information systems exist to store data and create reports that business pros can use to analyze
and make decisions. There are three basic kinds of reports:
Scheduled: Created on a regular basis, these reports use rules the requestor has provided to pull and organize
the data. Scheduled reports allow businesses to analyse data over time (e.g. an airline can see the percentage of
lost luggage by month), location (e.g. a retail chain can compare sales figures from different stores), or other
Ad-hoc: These are one-off reports that a user creates to answer a question. If the reports are useful, you can turn
ad-hoc reports into scheduled reports.
Real-time: This type of MIS report allows someone to monitor changes as they occur. For example, a call center
manager may see an unexpected spike in call volume, and find a way to increase productivity or send some of the
calls elsewhere.
What Is Knowledge Management?
Knowledge management (KM) is the process(es) used to handle and oversee all the knowledge that exists within a
company. Knowledge management relies on an understanding of knowledge, which consists of discrete or intangible skills
that a person possesses.

The field of knowledge management identifies two main types of knowledge. Explicit knowledge is knowledge or skills that
can be easily articulated and understood, and therefore easily transferred to others (this is also called formal or codified
knowledge). Anything that can be written down in a manual – instructions, mathematical equations, etc. – qualifies as
explicit knowledge. Tacit knowledge, by contrast, is knowledge that is difficult to neatly articulate, package, and transfer to
others. These are usually intuitive skillsets that are challenging to teach, such as body language, aesthetic sense, or
innovative thinking. (A third knowledge type is implicit knowledge, which is information that has not yet been codified or
transferred, but that would be possible to teach. Implicit knowledge is different from tacit knowledge, which is unlikely to
be able to be codified. For this article, however, we will primarily discuss explicit and tacit knowledge.)
You can break these knowledge types down further into four categories:
Factual Knowledge is measurable, observable, and verifiable data.
Conceptual Knowledge relates to perspectives and systems.
Expectational Knowledge is knowledge rooted in expectations, hypotheses, or judgments.
Methodological Knowledge deals with decision-making and problem-solving.
Knowledge management enables organizational learning, a concept where companies are invested not only in the reliable,
expert production of a product or service, but in the knowledge that underlies these production processes. Companies
devoted to organizational learning are interested in maintaining and building upon internal knowledge at an organizational
level – not just helping individuals accrue special skills, but ensuring that this knowledge is available to and dispersed
throughout the workforce.
As one Massachusetts Institute of Technology (MIT) paper states, the core goal of knowledge management is to connect
“knowledge nodes” – those with knowledge and those seeking knowledge – to ultimately increase the knowledge within an
organization. Within that goal, the authors identify four objectives of KM: to capture knowledge, to increase knowledge
access, to enhance the knowledge environment, and to manage knowledge as an asset.
Ultimately, knowledge management is an integrated system of accumulating, storing, and sharing knowledge within a team
or organization. KM consists of several components, as well as strategies to implement it successfully – we’ll delve deeper
into these later in the article.
Who Uses Knowledge Management?
Knowledge management can be implemented enterprise-wide across a number of industries. However, the way you
implement KM might change depending on factors such as industry and company size.
KM is often used differently for small vs. large organizations, however. Small (and/or young) companies must carve out a
competitive market advantage early on, and therefore benefit from KM by codifying and storing internal knowledge from
the get-go. Large organizations – even those with unwavering strength in their market – use KM to act quickly in the digital
age, where business changes constantly and often without warning. Without a reliable system to store existing knowledge
and accumulate new knowledge, it would be difficult to react to these market changes. However, both large and small
companies can benefit from KM because it treats the knowledge that every individual brings as an asset, so employees feel
respected for their skills in the workplace.
For those looking to implement knowledge management in a specific department, you can also tailor the practice to subfields. Other than enterprise KM, knowledge management is most commonly implemented in IT/information systems and
science, organizational management, business administration, human resources management, content management, or
for personal use.
What Is a Knowledge Management System?
A knowledge management system is any technology that is used to store and manage knowledge – essentially, a tool to
oversee knowledge management. However, a successful knowledge management system also taps into the underlying

goals of KM: codifying knowledge, retrieving knowledge, improving collaboration, and stimulating overall organizational
Knowledge management systems have evolved from a useful tool to optimize KM processes to an integral component of
KM itself. Today, organizations rely on KM systems to perform many of the functions of knowledge management – data
storage is an obvious example, but technology systems can also help foster collaboration and group learning, among other
There are several emerging features in contemporary knowledge management systems. Here’s a look at some of the most
prominent ones:
Content and document management: This is a critical component because codifying knowledge almost always
results in documentation (or another form of created content). When choosing a KM system, make sure the
platform can support the file size, type(s), and volume that you need. This is especially important for enterprise
companies who will need to store massive amounts of data, and scale regularly. (For this functionality, look for
enterprise portals.)
Lessons learned databases: These are systems that aim to make intangible (often tacit) knowledge clear and
available to other users. The focus with lessons learned databases are as the name implies: on lessons learned by
experts that others should follow (think of it as best practices). The key here is to find a database that can house
this kind of qualitative information and make it accessible.
Groupware: As we’ve discussed, collaboration is a key component of KM. Groupware refers to any collaborative
work platform, and is usually intended for workers who need to communicate remotely. Groupware is broken
down into two categories: synchronous groupware (collaborate and update in real time) and asynchronous
Artificial Intelligence (AI): The adoption of AI (as telepresence) into KM systems replaces the human consultants
that had been analysing the data and monitoring the KM processes. Today, cognitive computing, adaptive
technology, and intelligent filtering tools, in particular, have huge implications for codifying knowledge, and will
likely be adopted by more KM systems. However, the importance of human quality assurance (QA) in much of
today’s data work has raised concerns about AI’s ability to fully take over this space.
Although KM systems can help automate and standardize knowledge management, there are several challenges when
implementing a system. Security, data accuracy, and changes in technology (cost, implementation, usability) are focused
difficulties that you should keep in mind from the get-go. A much more pervasive and ongoing challenge, however, is
creating a culture of collaboration and knowledge sharing via technology. People may already be reluctant to share
information with their peers, and technology can create even more barriers for doing so. Therefore, you’ll need to build in
processes that support and stimulate this type of knowledge transfer.
Kevin Murray offers four key things to look for when choosing a KM system:
Security: Information is valuable. Like any other valuable, there are people who will steal it.
Accountability: Information is valuable only when it is accurate. Limit access. Log intensively. Test for accuracy.
Backup: Everyone knows the value of backing up. Not everyone knows how to do it. Hiding a backup drive in the
CEO’s desk won’t help if the building floods or burns. Creating, maintaining, and correctly storing back-ups should
be an automatic functionality.
Ease of Use: If the system is too difficult or demanding to use, people will take shortcuts. Shortcuts usually
reduce security and the integrity of the information you’re managing.
When discussing the future of KM systems, many critics claim that knowledge management itself is a fad. However, others
think that KM and KM systems will simply evolve to meet the demands of today’s business world – likely incorporating
more AI-driven systems. Murray agrees with the latter camp.

“It’s no fad. It’s an imperative. The amount of information being created grows each year. It has to be managed, if you want
it to be useful,” he says. “KM systems will continue to increase in popularity, functionality, and ease-of-use, just like the
evolution of typewriters and word processing software. Artificial Intelligence (AI) will blend into the mix even more.”
What Is the Primary Benefit of Knowledge Management?
While it may not seem directly related to the tactics of knowledge management, the primary goal is to increase company
efficiency to improve business decision-making. The idea is that building expertise into your organization – and dispersing it
amongst employees – empowers you to make more informed, faster, and ultimately more profitable decisions.
Of course, there are several secondary benefits. Successful KM will enable you to:
Increase collaboration and idea generation
Optimize a culture of knowledge sharing
Protect intellectual capital
Treat human capital as an asset (which makes employees feel respected for their knowledge)
Capture and store knowledge for the future workforce
What Are the Challenges of Knowledge Management?
There are many challenges that businesses face when implementing knowledge management. Here is a list of some of the
most common ones:
Creating a culture of flexibility and collaboration: This is one of the most significant and enduring challenges of
KM. Companies already struggle to implement new policies, because people naturally tend to resist change.
However, KM can be especially difficult because employees might want to protect their skills and knowledge, or
be reluctant to learn from their peers.
Security: You have to design a knowledge transfer system that makes it easy for the appropriate people to access
information, while protecting sensitive or private intelligence from outsiders.
Measuring knowledge: It can be difficult to define metrics to measure the knowledge within your organization,
especially for tacit knowledge that cannot be easily quantified. To overcome this, some experts recommend
focusing on the purpose of knowledge, rather than the efforts or results (which are often also unquantifiable).
Identifying an expert: There won’t always be a single “keeper” of every knowledge type, but you will still have to
identify who within the company possesses certain knowledge, and use them as the base level of knowledge
from which you want to build. This process is difficult tactically, but can also be delicate among employees who
might feel competitive about their skill levels.
Document storage and management: While not all knowledge makes for straightforward documentation, it will
have to be stored and organized in some form. Document management is a challenge for many companies, but
organization is a vital aspect of KM – otherwise, it will be impossible to locate and use the knowledge you have
stored. Consider using a dedicated document management system to keep everything organized.
Disseminating knowledge throughout an organization: You’ll need to devise a process where, once you store
the knowledge; other team members can access it. This is complicated both theoretically and tactically; so many

organizations opt for a software system designed specifically for this purpose. We’ll take a closer look at KM
systems later on.
Continual improvement: Like most process-driven strategies, you should continually improve upon the
knowledge management system you implement. Stage periodic reviews or, if possible, dedicate resources to
continually optimize your process.
Determining where KM is housed: If KM serves your entire organization, decide which department will “own”
the strategy. Companies most commonly house KM in HR or IT. Remember, this department is not only
responsible for effectively managing the knowledge itself, but also for maintaining the community of knowledge
sharing and organizational learning.
How Does Knowledge Management Work? Basic Components and Strategies
As we’ve discussed, the theory behind knowledge management is that in order to make the best business decisions, the
workforce must be as educated and skilful as possible. One way to ensure an educated – and continually learning –
workforce is to stimulate organizational learning, which companies can do by implementing knowledge management. This
practice ensures not only that existing knowledge (both explicit and tacit forms) is codified and stored, but that it can be
dispersed among other employees so that people can continue to amass skills. Another benefit is that KM evenly
distributes knowledge so no one is contributing in silos.
As Nonaka and Takeuchi first stated in their seminal academic papers, there are three main ways that people approach
knowledge management:
People-centric: Centered on people, relationships, and how people form learning communities and other
informal ways of knowledge sharing. This idea is also known as
ecological KM theory.
Tech-centric: Focused on the technology that facilitates knowledge storage and transfer, and aims to create
technology systems that encourage knowledge sharing.
Process-centric: Interested in how the organizational structure and processes accommodate and encourage
knowledge sharing and organizational learning. This concept includes the production processes, the
organizational hierarchy, and the cultural framework.
The approach you take will depend on how your company currently functions. Organizational structure, politics,
management style, and existing processes all create parameters around what kind of KM implementation is workable.
Regardless of the approach you choose, however, implementing KM will inevitably affect your organization’s people,
technology, and processes. Therefore, it’s best to keep all three in mind when enacting a knowledge management strategy.
Theoretical approaches aside, there are some common tactical ways of handling knowledge. The common strategies
Storing knowledge vs. sharing knowledge: Storing knowledge involves accumulating, codifying, and maintaining
knowledge in a reliable storage system. This is a good first step, but successful knowledge management also
requires a system to disperse that stored knowledge.
Codification vs. personalization: The difference between these strategies is similar to the previous example.
Codification is any activity where you are collecting knowledge (creating and maintaining databases, content
architecture, training to support software storage systems), and creating awareness of these collection systems.
Personalization is connecting people to this codified knowledge by forming learning communities, promoting
active discussion and knowledge transfer, and facilitating group interaction.

Push vs. pull: These represent two opposing strategies. In a push strategy, individuals actively encode their
knowledge to make it available for others. In a pull strategy, team members seek out experts to request
knowledge sharing, so you only transfer knowledge on an as-needed basis.
SECI model: This is the knowledge transfer and strategy model first proposed by Nonaka and Takeuchi in 1996,
and is considered the cornerstone of knowledge management theory. It outlines the four different types of
knowledge transfer:
Socialization: Tacit to tacit, where knowledge is transferred intuitively through observation, guidance,
and practice.
Externalization: Tacit to explicit, which codifies intuitive, intangible knowledge in order to be taught.
This type of knowledge transfer is the most difficult because tacit knowledge is extremely difficult to
break down into digestible directives.
Combination: Explicit to explicit, where codified knowledge is transferred or combined with other
codified knowledge. This type of knowledge transfer is the simplest.
Internalization: Explicit to tacit, where an organization follows and practices codified knowledge so that
it becomes intuitive.
Data mining is a process of discovering data patterns based on algorithms, and is another common element of
sophisticated knowledge management programs. Because codifying all of your internal knowledge will result in a huge
knowledge library, data mining can help identify patterns and extract data. It still uses qualitative methods of data analysis,
but automated programs will likely rely on algorithmic work.
The Knowledge Management Life Cycle
As we’ve discussed, the process of knowledge management follows general steps. Today, this progression has been
formalized by several scholars, along with how knowledge should be stored and disseminated throughout an organization.
This how includes the processes, tools, and technologies that make up the knowledge management life cycle.

Summary of Knowledge Management Lifecycle
How to Improve Knowledge Management
Even with an understanding of the KM life cycle, knowledge management can be difficult to implement. Below are a few
tips on how to improve knowledge management:
Understand the flow of knowledge in your organization: While the various KM life cycle models list phases to
follow, they are merely a blueprint. Knowledge management will only be successful if you understand
your organization already naturally gains, stores, and shares knowledge, so use the existing flow of
information to structure your formal knowledge management process.
Clearly define your goals and how you will measure them: Just like any project, you won’t be able to judge your
success without clearly defined goals. Choose objectives and how you will measure them before you implement
Encourage socialization: One way to foster an environment of knowledge transfer is to let it happen naturally, by
talking and casually sharing. Allow team members to talk and form relationships in-office, which will make them
more likely to turn to each other for information or advice, or to learn new skills.
Generate new knowledge: Remember that knowledge management is not only concerned with storing existing
knowledge; rather, you need to create processes to manage the ongoing stream of new information. Actively
generate new knowledge within your organization not only to create a robust knowledge stream, but also to
show your employees that you treat new knowledge – and
their knowledge – as an asset. This will make workers
more apt to adopt KM.

Employ technology: Technology can play a huge role in standardizing and organizing the KM process. However,
remember that technology itself is not knowledge management, but simply a tool to enhance your processes.
We’ll discuss knowledge management technology in depth in the next section.
CRM stands for “Customer Relationship Management” and refers to all strategies,
techniques, tools, and technologies used by enterprises for developing, retaining and
acquiring customers. This software ensures that every step of the interaction with consumers
goes smoothly and efficiently in order to increase the overall profits. The software gathers
customer data from multiple channels. Hence, CRM stores detailed information on overall
purchase history, personal info, and even purchasing behavior patterns.
In most cases, when people talk about CRM, they’re referring to a
CRM system — a tool
aimed at helping companies with sales, marketing and service management. CRM software
allows businesses to focus on their company’s relationships with customers, colleagues,
suppliers, etc. With a professional CRM in place, it becomes much easier to find new
customers, win their trust, provide qualified support, and provide additional services
throughout the relationship.
The best part about a CRM system is that almost any organizational unit can benefit from it — from
sales and customer service to recruiting, marketing, and business development. Good CRM
software gives a better way to manage external relationships. Storing all customer information in
one place, recording service issues, identifying sales opportunities, managing marketing
campaigns — these are just a few capabilities that
CRM features. Since CRM provides easy access
to data, it also becomes much easier for users to collaborate on different processes and increase
productivity. Another strong argument in favour of CRM is suitable for businesses of any size.
What does a CRM system do?
A CRM system essentially provides a central place where businesses can store customer and prospect
data, track customer interactions
, and share this information with colleagues. It allows businesses to manage
relationships with customers, helping the business to grow.
Example Of a CRMS
Examples of CRM are sorted by types, such as general use, inbound lead management,
sales tracking, social tracking
, and a fully integrated system. Most software solutions fall
into one or two or multiple CRM types. For instance, HubSpot CRM is an inbound marketing
CRM, but it has general, all-purpose tools as well.
5 Key CRM Benefits
Increased Revenue and Decreased Overhead. There are two ways to improve a
company’s financial status: increase revenue or decrease expenditures. …
Improved Customer Satisfaction. …
Marketing Optimization. …
Increased Collaboration and Coordination. …
Improved Data Insight and Analytics.