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Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals and Metals Mining Sector Sanaz Moayer Fang Huang Scott Gardner School of Management and Governance, Murdoch University, Perth, Australia ICBIAKM 2015: The 17th International Conference on Business Intelligence, Analytics, and Knowledge Management Paris, France

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Page 1: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the

Australian Minerals and Metals Mining Sector

Sanaz Moayer

Fang Huang

Scott Gardner

School of Management and Governance,

Murdoch University, Perth, Australia

ICBIAKM 2015: The 17th International Conference on Business Intelligence, Analytics, and Knowledge Management

Paris, France

Page 2: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Contents

Introduction Objective of the Paper Definition of Knowledge Management and Its benefits Review of Existing Knowledge Management Models Strategic Application of Data Mining and Its benefits Competitive Advantage Data Mining, Business Intelligence, and Knowledge Management Conclusion

Page 3: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Introduction

-Knowledge is a valuable intangible asset.-Knowledge Management (KM) is a key part in creating Competitive Advantage.-Information Technology (IT) has a strategic support role in exploiting the composite knowledge capacity.-Data Mining (DM) tools add value throughout an organisation’s network within the broader KM framework

Page 4: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Objective of the Paper

To explore the linkages between strategic engagement of human knowledge and powerful technological platforms

Achieve competitive Advantage

Page 5: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Definition of Knowledge Management

KM definition by Jashapara (2011, p.14):

“The effective knowledge processes associated with exploration, exploitation and sharing of human knowledge (tacit and explicit)

that use appropriate technology and cultural environments to enhance an organisation’s intellectual capital and performance”.

Page 6: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Benefits of Knowledge Management

KM benefits (Duvall, 2002):

retention of expertisecapturing and sharing best practicesupporting customers and customer servicesaiding decision makingand increasing profit

Page 7: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Strategic Knowledge Management in Australian Mining Industry

Mining Technology Service (MTS)

A platform for finding, acquiring, developing, sharing, preserving, evaluating, and applying knowledge to support

the competitive advantage

Page 8: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Review of Existing Knowledge Management ModelsModel Features

The von Krogh and Roos Model of organisational Epistemology Individual knowledgeSocial knowledge

The Nonaka and Takeuchi Knowledge Spiral Model

Knowledge creation

Knowledge conversion (Socialisation, externalisation, combination, internalisation), ‘Ba’ safe space, Knowledge assets.

Hedlund and Nonaka’s Knowledge Management Model

Articulated knowledge- Individual

Tacit knowledge- Individual

Articulated knowledge- Group

Tacit knowledge- Group

Articulated knowledge- Organisation

Tacit knowledge- Organisation

Articulated knowledge- Inter- Organisational Domain

Tacit knowledge- Inter- Organisational Domain

The Choo Sense-making KM Model Sense makingKnowledge creationDecision making

The Wiig Model for Building and Using Knowledge Public KnowledgeShared experiencePersonal knowledge

The Boisot knowledge category Model

Propriety knowledgePersonal knowledgePublic knowledgeCommon sense

The Boisot I-Space KM Model Codified- UncodifiedAbstract- ConcreteDiffused- Undiffused

Page 9: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Review of Existing Knowledge Management Models cont.

Model Features

Skandia Intellectual Capital Model of Knowledge Management

EquityHuman Capital

Customer Capital(Customer Base, Relationsips, Potential)

Innovation CapitalProcess Capital

Demerest’s Knowledge Management Model

Knowledge constructionKnowledge embodiment

Knowledge dissemination

Use

Frid’s Knowledge Management Model

Knowledge ChaoticKnowledge AwareKnowledge FocusedKnowledge ManagedKnowledge Centric

Stankosky and Baldanza’s Knowledge Management Framework

LearningLeadership

Organisation, structure & culture

Technology

Kogut and Zander’s Knowledge Management Model

Knowledge CreationKnowledge Transfer

Process & Transformation Of Knowledge

Knowledge capabilities

Individual “Unsocial sociality”

Complex Adaptive System Model of KM

Creating new ideasSolving problemsMaking decisions

Taking actions to achieve desired results

Page 10: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Major Steps of Knowledge Management

Knowledge Creation Knowledge Storage Knowledge Transfer Knowledge Application

Holzner & Marks (1979) Consciousness Extension Transformation Implementation

Pentland (1995) Construction Organising - Storage Distribution Application

Nonaka & Takeuchi (1995) Construction Organising - Storage Distribution Application

Alavi & Leidner (2001) Knowledge Creation Knowledge Storage Knowledge Transfer Knowledge Application

Darroch (2003) Acquisition ----- Dissemination Use knowledge

Chen (2005) Knowledge Creation Knowledge Conversion Knowledge Circulation Knowledge Completion

Lee (2005) Creation Accumulation Sharing Utilisation & Internalisation

Adapted from Alavi & Leidner (2001)

Page 11: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Four Major steps of Knowledge Management

Four Knowledge Management Stages (Alavi & Leidner, 2001):

Knowledge Creation Knowledge Storage knowledge Transfer Knowledge Application

Page 12: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Strategic Application of Data Mining

Extract

Transform

Load

Store and manage

Provide data access Analyse Present

Page 13: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Benefit of Data Mining

Business Level (Bal, Bal and Demirhan, 2011): recognition of services and products which are important to customers profiling of appropriate offerings to meet particular customer needs highlighting areas of current and future customer interests, which in turn leads to new products and services.

Focusing on unstructured problems

Deliver the right products/services to right customers through the right delivery channels

Page 14: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Competitive Advantage

Competitive Advantage approaches:

Positioning school (MBV):Porter’s Five Forces Model

Resource based school (RBV):VRIN Model

Page 15: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Data Mining, Business Intelligence, and Knowledge Management

Achieve Sustainable Competitive Advantage

Knowledge Management

Business Intelligence

Data Mining

Page 16: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

Conclusion

Sustainable competitive Advantage

Knowledge management (exploring tacit & explicit knowledge; Organisational learning… )

Data management Business intelligence Data Mining …

Page 17: Integrating Data Mining within a Strategic Knowledge Management Framework: A Platform for Sustainable Competitive Advantage within the Australian Minerals

References•Alavi, M., & Leidner, D. E. (2001). Review: Knowledge management and knowledge management systems: Conceptual foundations and research issues. MIS quarterly , 25 (1), 107-139.•Asad, M. (2012). Porter Five Forces vs Resource Based View-A Comparison. Available at SSRN 1986725 .•Bennet, A., & Bennet, D. (2004). Organizational survival in the new world: the inteligent complex adaptive system. A new theoary of the firm. Burlington: MA:Elsevier Butterworth-Heinemann.•Boisot, M. (1998). Knowledge assets: Securing competitive advantage in the information economy. Oxford University Press, USA.•Boisot, M. (1987). Information and Organizations. The Manager as Anthropologist, , Fontana/Collins, London .•Carpenter, M. A., Sanders, W. G., Rice, J. L., & Martin, N. J. (2010). Strategic Management: A dynamic Perspective Concepts and Cases. Pearson.•Chase, R. (1997). The Knowledge based Organization: An International Survey. Journal of Knowledge Management , 1 (1).•Chen, M.-Y., & Chen, A.-P. (2005). Integrating option model and knowledge management performance measures: an empirical study. Journal of Information Science , 31 (5), 381-393.•Choo, C. (1998). The knowing organization. New York: Oxford University Press.•Darroch, J. (2003). Developing a measure of knowledge management behaviors and practices. Journal of Knowledge Managemen , 7 (5), 41-54.•Demerest, M. (1997). Understanding knowledge management. Journal of long range Planing , 30 (3), 374-84.•Duvall, M. (2002). Knowledge Management Vendors Go Vertical. Intranet journal .•Frid, R. (2003). A Common KM Framework For The Government Of Canada: Frid Framework For Enterprise Knowledge management. Canadian Institute of Knowledge Management, Ontario. •Hedlund, G., & Nonaka, I. (1993). Models of Knowledge Management in the West and Japan. Implementing Strategic Process, Change, Learning and , 117-44.•Holzner, B., & Marx, J. (1979). The Knowledge Application: The Knowledge System in Society,Allyn-Bacon, Boston,. •Jambhekar, N. D. (2011). Knowledge Discovery through Data Mining in the improvement of Business and its Operating. Online International Interdisciplinary Research Journal , I (II).•Jashapara, A. (2011). Knowledge management an integrated approach (second ed.). Sydney: Prentice Hall.•Jindal, D., & Bhambri, V. (2011). EMERGING TRENDS IN KNOWLEDGE MANAGEMENT IN BANKING SECTOR. CHIEF PATRON CHIEF PATRON , 1 (10), 93-96.

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References cont.

•Kogut, B., & Zander, U. (1992). Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology. Organization Science, 3(3), 383-97. , 3 (3), 383-397.•Lee, C., Lee, K. S., & e. a. (2005). KMPI: measuring knowledge management performance. Information & Management , 42 (3), 469-482.•Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. New York: Oxford University Press.•Palace, B. (1996). Data Mining: What Is Data Mining? Retrieved from http://www.anderson.ucla.edu/faculty/jason.frand/teacher/technologies/palace/datamining.htm•Pentland, B. T. (1995). Information Systems and Organizational Learning: The Social Epistemology of Organizational Knowledge Systems. Accounting, Management and Information Technologies , 5 (1), 1-21.•Porter, M. E. (2004). Competitive advantage : Creating and Sustaning Superior Performance. Free Press.•Porter, M. E. (1980). Competitve Strategy: thechniques for Analyzing Industries and Competitors. New York: Free Press.•Roos, G., & Roos, J. (1997). Measuring your Company’s Intellectual Performance. Journal of Long Range Planning, , 30 (3), 413-26.•Seddawy, A. B., Khedr, A., & Sultan, T. (2012). Adapted Framework for Data Mining Technique to Improve Decision Support System in an Uncertain Situation. International Journal of Data Mining & Knowledge Management Process (IJDKP) , 2 (3).•Shetty, S., & Achary, K. K. (2008). Audio Data Mining Using Multi-perceptron Artificial Neural Network. IJCSNS International Journal of Computer Science and Network Security , 8 (10).•Stankosky, M., & Baldanza, C. (2001). A systems approach to engineering a KM system. Unpublished manuscript .•Tyagi, S., & Sharma, B. (2011). Data Mining Tools and Techniques to Manage the Textile Quality Control Data for Strategic Decision Making. International Journal of Computer Applications , 13 (4), 26-29.•Von Krogh, G., & Roos, J. (1995). Organizational Epistemology. New York:St.Martin press.•Wiig, K. M. (1993). Knowledge management foundations: thinking about thinking: how people and organizations create, represent, and use knowledge. Arlington, TX: Schema Press.•Yang, T., Gong, Y., & Bai, P. (2008). Spatial Data Mining Features between General Data Mining. 2008 International Workshop on Education Technology and Training & 2008 International Workshop on Geoscience and Remote Sensing. Zhu, X., & Li, J. (2006). An ant colony system-based optimization scheme of data mining. Sixth International Conference on Intelligent Systems Design and Applications (ISDA'06) IEEE.

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Thank You & Comments

ICBIAKM 2015: 17th International Conference on Business Intelligence, Analytics, and Knowledge Management

Paris, France

July 2015

[email protected]@[email protected]