Knowledge Management Information Systems

This document explores the concept of knowledge management information systems and their impact on organizations. It covers the analysis of internal and external factors affecting organizations and their competitors. It provides recommendations for the most suitable management information system for improved performance. The document also discusses different types of information systems used by organizations. Read more on Desklib.

Knowledge
Management Information Systems
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Organizational overview300....................................................................................................3
2. Critically evaluate the internal as well as external environment which affect the organization
along with its competitors............................................................................................................4
3. Recommend most suitable management information system for the organization to improve
its overall performance................................................................................................................7
4. Evaluate the key challenges which organization face at the time of implementing suitable
recommendation........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
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INTRODUCTION
Knowledge management information systems relate to any type of IT process that preserves
and initializes knowledge, enhances communication, locates information sources, searches
databases for secret knowledge, collects and uses knowledge, or facilitates the KM process in
any other way (Abdel-Basset and Mohamed, 2018). If the clarification above made the concept
of such systems sound ambiguous, it's because there is no agreement on what defines a system of
knowledge management, therefore there is no agreement on KM. Moreover, since KM is
concerned in all aspects of the company, it is very hard to draw a line. For the better
understanding of this concept, Rolls Royce selected which is UK based multinational automotive
company. Business founded in 1998 and they served worldwide area.
This report covers several topics such as critically analysis of internal as well as external
environmental factors which affect the organization. In order to resolve the issues, which
information system business adopt. In addition, evaluate three key challenges which organization
face at the time of implementing recommendation for improvement.
MAIN BODY
1. Organizational overview300
Corporate objective:
Objective of Rolls Royce is to become premium quality car manufacturing company and
also wanted to serve best customer services after sale of their products (Abualoush and et.al.,
2018). Company produce luxury products so they make sure to maintain their level to meet
consumer’s expectation. Rolls Royce focuses on world class power and proportion system to
improve their efficiency as well as effectiveness in the automobile sector.
Business Overview:
The UK luxury automaker is Rolls-Royce Motor Cars Limited. It is a subsidiary of the
Dutch BMW group and was founded after BMW obtained a license through Rolls- Royce Plc to
the label and logo Rolls-Royce in 1998 and has acquired the copyright to the Concept of the
Ecstasy and the Spirit of Rolls-Royce grill trademark from Volkswagen AG. The sole producer
of Rolls-Royce branded cars since 2003 has been Rolls-Royce Motors Cars Limited. The four-
door convertible Rolls-Royce Phantom was the very first model to be launched in 2003. Since
then, the model range has grown to provide the extended tire-base, two-door coupé and
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Phantom-sedan conversion models and the narrower four-door, Wraith, Dawn, and Cullinan
sedan.
Corporate structure:
Rolls Royce follows hierarchical structure in their organization where every employee in
the company, other than one, normally the CEO, depends on others (Al-Emran And et.al., 2018).
The structure is made up of different organizations that go down to the bottom of workers at the
base of the pyramid. It has many benefits such as the appreciation by employers of some degree
of leadership, authority and levels of accountability within the company are evident. Promotion
rewards inspire workers to do well. Company follow this structure to improve their employee’s
loyalty towards the department they work or improve interest for the area they served.
2. Critically evaluate the internal as well as external environment which affect the organization
along with its competitors
SWOT analysis:
Strength Weakness
Brand image is the biggest strength of
company due to quality performance in luxury
car range.
Company has technical support from their
parent firm which helps in improving overall
efficiency.
There are various luxury brands such as
Phantom Drophead Coupé, Phantom, Phantom
Coupé (coupe) and Ghost that is most popular
among the consumers.
Rolls Royce is seen as a luxury brand and has
high prestige and integrity in its connection
with men (SWOT Analysis, 2019). It is seen as
a platform for rich people and thus for the
middle classes it is unaffordable.
Rolls Royce cars are consumers who enjoy the
brand's traditional design and style.
The Rolls Royce cars are on the top end of the
market and for most buyers they may be
unaffordable.
Opportunity Threats
Industries are now seeking to implement new-
age technology such as IOT, artificial
intelligence, data connections, and a vast
variety of brands are to be introduced.
Automation is gradually an advantage that
luxury car manufacturers can exploit more
Company is deeply worried about sustainable
energy solutions because the current network
of vehicles is not environmentally friendly.
Sustainable cars however are costly.
Brands such as Porsche, Mercedes Benz, Audi
and Lamborghini are vying for the Rolls
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easily than ordinary car companies.
Green and electric drive trains could provide a
wonderful opportunity for higher-end vehicle
manufacturers and well-established car brands
like Rolls Royce.
Royce.
The cost of raw materials is rising and so is the
cost of gasoline. Research into future solutions
for cars is often costly.
PEST analysis:
Political: There are several political factors which affect the as BREXI which lead to
high uncertainty (Bourgeois, 2018). This may add a price volatility and potential supply factor
that their rivals could take advantage. These factors affect the Rolls Royce, so management need
to formulate strategy accordingly or improve performance as well as efficiency.
Economic: The economic aspect explores external economic problems which may lead
to the performance of a business. It includes findings such as interest rates, inflation trade,
unemployment, the gross domestic product, credit access and the middle-class rise and fall. In
context of Rolls Royce, fluctuation in the rate of foreign exchange affects the organization and
its pricing strategy.
Social: Company should examine the socioeconomic climate on the marketplace of the
given sector to understand the shaping and marketing of customer needs. There are some factors
which required evaluating by the Rolls Royce such as eemerging economies and globalization. In
addition, operations of Rolls Royce based on the seasons because it affects the demand of car.
Technological: Change in the technology affects the organizational and its productivity
performance. In context of Rolls Royce, environmentally sustainable and effective technologies
required to enhance operational performance. Company invested in development and around £
1.3 billion in 2018. Due to technical issues, revenues fell to almost 300 million pounds in 2018.
Porter’s five force model:
Bargaining power of buyers: Sometimes, buyers are a challenging element. By charging
the minimum price, they want to buy the best possible products. In the long run, this puts
pressure on the competitiveness of Rolls-Royce (Gupta, Kannan and Sanyal, 2018). The lower
and larger a client base, the more consumers can bargain with company and the more discounts
and deals they can seek. They can minimise the bargaining power through creating a large
customer loyalty. This is going to be useful in two ways. It will minimize the negotiating power
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of the buyers and will provide the firm with a chance to reorganize its sales and production
process. By speedily innovation of new products because consumers often try to reach discounts
and offers on known products, so that if Rolls-Royce keeps come up with new items, the
bargaining power of purchasers may be limited.
Bargaining power of suppliers: The Consumer Goods & Services industry is primarily
funded by several manufacturers with their raw material. The Rolls-Royce margins can be
reduced by suppliers in the leading position. Powerful manufacturing suppliers are using
bargaining power to obtain higher rates from companies in the field of manufactured products
and services. Developing an effective supply chain with different suppliers and trying to come up
with product designs using various materials, so that if prices increase from one raw material, the
business can shift to another. In addition, creating dedicated vendors whose business relies on the
company.
Threats of new entrant: Innovation, new ways of coping with consumer products &
services and placing pressure on Rolls-Royce by rising rates, lowering costs and delivering new
value ideas for clients. Both these challenges must be faced by Rolls-Royce and successful
barriers built to sustain its competitiveness. There is less chance that new entrants will enter a
competitive industry in which existing players such as Rolls-Royce routinely define standards.
The window of exceptional income for the new companies is reduced significantly, which
discourages new industry players.
Threats of substitute: If a different product or service addresses similar consumer needs
in different ways, the competitiveness of the company is affected. If it provides a cost structure
that differs dramatically from the current industry offerings, the possibility of a replacement
product or service is strong (Hislop, Bosua and Helms, 2018). By just being service oriented
rather than just product-oriented and understand basic needs of the client rather than what the
buyer is purchasing. In addition, Rolls Royce needs to increase switching costs for customers.
Rivalry: If the competition between the current players in the industry is strong, it will
press down rates and the overall competitiveness of the industry. Rolls-Royce operates in a
highly competitive manufactured goods and services market. This rivalry has an impact on the
overall long-term competitiveness of the organisation. Developing a sustainable
differentiation it can remain competitive better Working closely with rivals to boost the size of
the market rather than just going to compete for a tiny market.
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Through evaluating all five strategic factors, Rolls-Royce strategists will obtain a full
picture of the effects of the competitiveness of the company in the Manufactured Goods &
Services industry. They can detect match-changing trends soon on and can adapt quickly to take
advantage of the emerging opportunities. By knowing the Porter Five Forces in great detail, the
managers of Rolls-Royce will form certain factors in their support.
3. Recommend most suitable management information system for the organization to improve its
overall performance
Information Technology (IT) and Information System (IS) are both part of each other. IS
is automated software that gathers, stores and provides useful data (Laurini, 2018). This data
may be used for number of purposes to create value to a company. This can be used during
monitoring, scheduling, decision-making, company processes and this would also lead the
organization to achieve a competitive edge. Rolls Royce follows several IT software or systems
to manage their internal data that is confidential for the organization and they need to safe it for
competitive advantage.
IT has been one of the major components of investment in capital by organizations. Most
business groups are wisely going to invest a significant amount of their funds in information
systems. The wise choice of expenditure can outperform rivals, and if it was a poor choice, it
would be little more than a waste of their useful capital.
There are several information systems which can be used by the organization to improve
their operational processing and further beneficial to manage company’s data. Some of them are
as follow:
Transactional processing systems (TPS): It is used mainly for recordkeeping, which is
necessary for any company to operate a business (Li, Shih and Wang, 2018). Types of TPS
include the submission of purchase orders, payroll, and delivery documents, etc. TPS used on a
regular basis for the production of periodic reports. It is also used to generate on-demand
documents as well as condition reports. Management of Rolls Royce can use this information
system to generate report and it further beneficial for the managers to make decisions with the
help of collected information.
Decision support system (DSS): It represents the administration of the organisation. The
decision management framework has advanced tools for data analysis that complement and
support all facets of issue-specific decision-making. DSS can use information through external
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sources, like existing stock prices to improve decision-making. DSS will be used when the
situation is complicated and it is hard to acquire and use the knowledge required to make the
right decision. The DSS is established with both the aid of decision-makers in the organisation.
The DSS assists in the correct judgment-making process and does not make any decisions. By
using this information system, Rolls Royce collects external information that is used to support
operational decisions of the company.
Executive Information System (EIS): It is also as Executive Support which is used by
top management of the business. It must also be simple to use so which managers can use it
without support. EIS will conduct market analysis, record exceptions and have the capacity for
drill-down. The findings are typically graphically presented according to the knowledge needs of
the Manager (Lintern and Motavalli, 2018). EIS has online analytical tools and a variety of
internally and externally data are available. With the help of EIS, managers of Rolls Royce able
to done market analysis, gather some useful data and transfer to the managers to make strategies.
Management Information Systems (MIS): The MIS offers a rundown of the
organizations' key tasks in the administration schedule. The TPS of the company collects the
critical resources and MIS consolidates revenue, production data, etc. MIS offers managers and
decision-makers daily information. The main purpose of the MIS system is to enhance operating
performance. MIS will encourage marketing, manufacturing, finance, etc. To improve their
operational efficiency, managers of Rolls Royce can adopt this information system and it further
increase the productivity as well.
Workflow system: It is a policy-based management system which guides the performance
of interconnected tasks designed to shape the business process, manages and monitors it. There
are three workflow forms are available such as:
 Administrative workflow systems concentrate on cost report monitoring, travel inquiries
and communications.
 An Ad-hoc management framework covers product development, sales offerings and
business strategies.
 Manufacturing workflows apply to mortgage lending and insurance claims.
A web workflow framework can be paired with e-mail. The server architecture which can
use a server or file server can be used for a workflow framework. Managers of Rolls Royce can
use this system to balance workflow of the organization.
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Enterprise Resource Planning (ERP): This system is software for the administration of
business processes that enables an enterprise to use an automated program framework to manage
a business in a global multi-site market. It is one of the effective systems because it provides the
centralized data of organization at single access. Multinational companies take advantage of it
such as Rolls Royce. Most of the enterprises adopt this system to improve their operational
performance.
Expert system: The networks of experts may offer suggestions and serve as an authority
in a specific area of an enterprise (Nisar, Prabhakar and Strakova, 2019). A team of experts
requires a wide base of expertise. This system used to get expertise in specific field to improve
performance and achieve the desired goals & objectives.
From the above mention information systems, ERP system recommended for Rolls Royce
because in today's dynamic environment, businesses are finding benefit, versatility and the
opportunity to implement cloud enterprise software (ES). This obsolete and conservative ES
program was heavy and costly to introduce. In order to further establish and strengthen the
situation, Rolls Royce introduced ERP SAP r3. In order to boost productivity and increase the
return on investment, and to decrease the overall cost of the supply value chain in order to
accomplish the company's target, the company must aim to reduce the cost of internal and
external capital. Through delivering information in a centralized way across cloud services
increase the overall efficiency for Rolls Royce.
Rolls Royce has been using the information system for years. It used 1500 systems when
using ERP (SAP R/3), many of which have been developed locally by Rolls-Royce over the last
two years. Such systems were expensive to run and not easy to keep. They did not produce an
accurate and consistent result since these systems were not standardized and the use of values
from various systems would yield contradictory results. Look at all of these things, Rolls-Royce
formed a relationship with electronic data services (EDS) in 1996 and EDS was responsible for
designing the ERP for Rolls Royce.
Rolls Royce has introduced and is allowing very productive and successful use of
information systems, that's why they are today at the height of performance. Rolls Royce makes
use of ERP for collaboration, decision-making, controlling their market processes, optimizing the
value chain, rising comparative intensity and as a whole, gaining competitive advantage.
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They will now explore one after the other the Management Information System (MIS) like
ERP can enable the organization to gain from the advantages established above before we see the
effect of using ERP in Rolls Royce.
Good communication is one of the main factors driving the company to its success.
Today's employers and managers of the company enterprise need to learn the appropriate
interaction strategies to ensure the organization's success (Shen, Li and Sun, 2018). Good
communication is becoming a critical resource for the performance of the company. ERP
facilitates coordination within the organization across the operational boundaries. Benefits
provide by ERP is used effectively and efficiently by Rolls Royce and also provides customer
support.
As clients request a more effective and optimal delivery of services, companies must
resolve functional barriers in order to satisfy this requirement. Rolls Royce is distributed across
various countries and does not conduct all of its operational roles in a single venue. ERP
facilitates productive cooperation with its vendors, clients and their partner organizations, both
within various departments and between them. By reducing analysis time, generating the same
and tailored reports, and eliminating communication costs, naturally adds value to the company.
For example, Rolls Royce utilizes the website of the company's manager to gather all the
data that its supplier wants. They use SABRe, which display the outer part of the quality
assurance system of Rolls-Royce and is relevant to all its vendors or associates that supply goods
or services which meet Rolls-Royce's specifications. Rolls Royce minimizes the costs and time
of contact by using this information system approach.
With many implementing problems, such as contextual (training the workers for the new
system), business difficulties (modifying the way work fits in with the ERP) and technological
difficulties (turning previous records into the new system and ensuring consistency), Rolls
Royce needed to introduce the ERP because they realized that the standardized, stable, and
effective processes were important. Social difficulty.
4. Evaluate the key challenges which organization face at the time of implementing suitable
recommendation
While implementing suitable management information system, Rolls Royce face three major
difficulties which affect their operations and overall performance, which are as follow:
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Cultural difficulties: When Rolls Royce implements new information system that is ERP
(Enterprise Resource Planning) than company face cultural challenges because employees unable
to understand that how perform by using this new system. In order to resolve this issue,
managers of Rolls Royce need to provide appropriate training to the workers, so they can
understand new system and run properly (van Capelleveen, Amrit and Yazan, 2018). Training
will help the employees to enhance their skills which required performing this system and further
implementing accordingly. Whenever any organization adopts new technology or system, they
need to provide proper training along with demonstration that how it works. In addition, for the
better understand company can appoint expert who provide knowledge along with its positive as
well as negative aspect which can affect the operational performance of Rolls Royce.
Business difficulties: At the time of implementing new systems in the organization, they
face various internal challenges such as they need to modify their working process according 6to
the ERP and manage all the functions which support new system to work properly. Managers of
Rolls Royce need to adjust new environment which support employees to adopt new working
cultural. Implementation of ERP is complex because this system requires a long list of steps. It
can also require a certain scheduling. Managers must be able to assess each step and the time
needed to complete each step.
Technological difficulties: it is one of the biggest challenges which company face at the
time of implementing new information system that is ERP (White, Hewitt and Kruck, 2019).
Managers of Rolls Royce have to convert all the previous information or data into new system. It
is very essential or risky step to do because single mistake will leads to disappear all the data. In
addition, managers of Rolls Royce should maintain the consistency of information otherwise it
affect the overall operational performance of the company.
Above analysis represent that implementation of new information system such as ERP
create some challenges which affect the business and managers of Rolls Royce need to pay
special attention until it successfully implement.
CONCLUSION
From the above discussion it has been observed that knowledge and management system is
become essential part of the organization. Because it will leads to provide success or achieve the
desired outcomes which organization wants. Before implementing any system in the business,
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managers need to critically evacuate the internal as well as external factors and build strategies
that how to resolve it. After that, there are several information systems such as transactional
processing system, decision supportive system, workflow, MIS. ERP etc. but in today’s word
ERP is most demandable system which help the organization to improve their operational
performance.
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REFERENCES
Books & Journals
Abdel-Basset, M. and Mohamed, M., 2018. The role of single valued neutrosophic sets and
rough sets in smart city: Imperfect and incomplete information
systems. Measurement. 124. pp.47-55.
Abualoush, S. H. and et.al., 2018. The role of employees’ empowerment as an intermediary
variable between knowledge management and information systems on employees’
performance. VINE Journal of Information and Knowledge Management Systems.
Al-Emran, M. And et.al., 2018. The impact of knowledge management processes on information
systems: A systematic review. International Journal of Information Management. 43.
pp.173-187.
Bourgeois, D. T., 2018. Information systems for business and beyond.
Gupta, A., Kannan, K. and Sanyal, P., 2018. Economic experiments in information systems. MIS
Quarterly. 42(2). pp.595-606.
Hislop, D., Bosua, R. and Helms, R., 2018. Knowledge management in organizations: A critical
introduction. Oxford University Press.
Laurini, R., 2018. Information systems for urban planning: a hypermedia cooperative approach.
CRC Press.
Li, C. T., Shih, D. H. and Wang, C. C., 2018. Cloud-assisted mutual authentication and privacy
preservation protocol for telecare medical information systems. Computer methods and
programs in biomedicine. 157. pp.191-203.
Lintern, G. and Motavalli, A., 2018. Healthcare information systems: the cognitive
challenge. BMC medical informatics and decision making. 18(1). p.3.
Nisar, T. M., Prabhakar, G. and Strakova, L., 2019. Social media information benefits,
knowledge management and smart organizations. Journal of Business Research. 94.
pp.264-272.
Shen, X. L., Li, Y. J. and Sun, Y., 2018. Wearable health information systems intermittent
discontinuance. Industrial Management & Data Systems.
van Capelleveen, G., Amrit, C. and Yazan, D .M., 2018. A literature survey of information
systems facilitating the identification of industrial symbiosis. In From Science to
Society (pp. 155-169). Springer, Cham.
White, G. L., Hewitt, B. and Kruck, S. E., 2019. Incorporating global information security and
assurance in IS education. Journal of Information Systems Education. 24(1). p.1.
Online
SWOT Analysis. 2019. [Online]. Available Through:
< https://www.marketing91.com/swot-rolls-royce/>
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