Knowledge Worker Information Systems - Literature review Example

 Knowledge Worker Information Systems Introduction A knowledge worker is a professional who adds value to a firm or company by using existing information to create new information that can be used to express and solve problems. Knowledge workers have high levels of expertise, experience, education and they mainly apply, create or distribute knowledge. At the basic level knowledge work is usually the primary source of brand new ideas. According to Chan (2011), knowledge workers use almost 38% of their overall time for searching for information. This implies that knowledge workers are in most cases away from their supervisors, working in different time zones and departments or from remote locations such as airport lounges and home offices. Knowledge workers are expatriates in their fields and are known to have deep educational backgrounds; critics argue that knowledge workers are always committed towards making a living (Gable &Scott, 2012). Knowledge workers include architects, financial analysts, inventors, lawyers, doctors, software developers and teachers. Because of their huge salaries and work control dependency, knowledge workers are also referred to as gold collars. Knowledge workers depend on Enterprise Resource Planning for effective execution of their duties. Despite its cons, the Enterprise Resource Planning has been improved over yeas to add value to organizations and enhance knowledge management. Enterprise Resource Planning constitutes the process where a company integrates and manages its essential sections of the firm. A management information system that is ERP centered handles functions such as purchasing, planning, sales, inventory, finance, marketing, sales, human resource, customer care and order management. These organizational functions are critical in the success of any business operation; therefore, companies are always seeking alternative ways of handling them effectively and efficiently (Shaul &Tauber, 2012). An ERP incorporates all functions and departments in an organization into one computer system with the aim of serving every individual’s needs. Enterprise Resource Planning enables communication among departments and facilitates rapid exchange of critical information. Gable and Scott (2012) argue that the software also ensures streamlining of information and processes in the entire organization. The shared database is the central unique feature of ERP systems as it allows multiple functions that are used the various business units. The ERP software simply offers distinctive synchronized automation and reporting. In the past employees had to retain separate spreadsheets and databases that had to be manually merged to produce reports; however ERP software’s revolutionized the whole process (Gibbon& Aisbett, 2011). The new ERP solutions could allow employees to extract reports from just one system. The paper intends to achieve two goals. First, to provide useful information to researchers interested in following and understanding new trends in the ERP field. Second, offer a review that can assist industries or businesses as it aims at highlighting the unanswered but justified development and research questions. The questions are in most cases brought out in research papers for development and research needs. The paper is sub divided to categorize major references into literature reviews; thus, finding key journals and other major forums for example societies and conferences in ERP. The paper aims to bring forward the agenda to dig deeper into the research about the ERP phenomenon and also several concepts relating to the ERP historical development, ERP practices and emerging trends in the ERP system. I. Historical development Gartner pioneered the invention of the ERP although its roots date back to the 1960s. In those early days the ERP concept only dealt with control and inventory management in the manufacturing sector. Software engineers made programs to reconcile balances, report on status and monitor inventory. By 1970, the concept had evolved into a material requirements planning program that was used to schedule production processes (Gable &Scott, 2012). By 1980, the material requirements planning (MRP) had grown to a point of incorporating manufacturing processes, prompting people to rename it as the manufacturing resource planning or MRP-11. During that era, the manufacturing requirements planning acted as the predecessor and gave birth to ERP. In mid-1990 the systems had developed beyond operational processes and inventory controls to back office functions. The functions included human resources, accounting and preparing the stage for ERP as would soon be known (Chung & Snyder, 2011). Currently ERP has expanded to adapt business intelligence while still managing front office duties like Ecommerce, marketing automation and sales force automation. Success stories of the how the products had advanced as a result of the systems filled the air waves and companies from ecommerce to wholesale distribution started using ERP solutions. The1990s saw the development of both software and hardware systems that had a lot of emphasis on integration within the business process and within the functional areas. Process integration included ‘purchase to pay’ and ‘order to cash’. The number of hardware and software options exploded. Early 2000 witnessed a reversal of the software vendor consolidation that had occurred in the 1990s (Shaul &Tauber, 2012). SAP and Oracle were the only top ERP software companies that weathered the storm after top software vendors started merging. Accounting, human resource business and supply chain process were expanded to fit in the execution and huge enterprise environment. The fate of ERP will increasingly depend on the short cycle time or easier configuration for rapid and seamless system updates for current and new users (Chan, 2011). The future of ERP will also depend on cost benefit aftermaths for all users. The idea that “e” in ERP means enterprise seems to be of a less significant purpose as middle size and high-growth companies are rapidly embracing ERP systems. Cloud computing solutions are also known as software as a service is also responsible for fueling the desired growth. Cloud solutions make ERP software’s easier to manage and implement as well making them affordable. Perhaps the biggest role of the cloud that is responsible for the overwhelming acceptance of the ERP is the ability to enable business interactions and real time reporting thus making them to be valued by even executives. The move has seen a transition to cloud based ERP systems by a wide range of various industries (Grubisic, 2014). In fact, critics are predicting that cloud based ERP adoptions will increase by 21% every year in 2015. A thorough scrutiny of the benefits surrounding the ERP will clearly answer the questions on why the technology has become very popular. II. Contemporary best practices When it was introduced for the first time, ERP proved to be a very attractive solution for large firms as it offered a lot of potential uses. For instance, the same system would be used to forecast or predict the demand of a product, make production schedules, allocate costs, track inventory, plan basic financial measures and order the important raw materials. Gary Forger, a renowned writer, once stated that an ERP acts like a planning backbone for a firms vital business processes. The system not only directs the varied processes, but also ties the processes by using all data collected in the company. A normal ERP system for instance, manages activities and functions like bills of materials, purchasing, inventory control, human resources, order entry and accounts payable which are very different. Enterprise resource planning is also capable of sharing data in the processes with the rest of corporate software systems as needed (Uden, 2013). Another advantage of ERP systems is that they could allow firms to exchange complex computer applications with just one integrated system. A properly setup, correctly implemented and a well-designed ERP solution can offer remarkable benefits to just any business no matter their scope or size. The capability to instantly conduct status reports without manually making data entries into spreadsheets can offer companies vital information on matters of business operations. The process also allows timely reactions to occur due to the varying business environments. Top performing companies that are deemed to be successful due to their high profit earnings frequently claim that ERP solutions attribute partially to their success. Ambitious firms have begun viewing their business systems as top elements of their general business investment strategies (Shaul &Tauber, 2012). As a result they have started applying the financial metrics to business software’s used when obtaining new equipment or a new plant. In the new modern world of business an advanced ERP system is not only a door to business success, but also a vital element of survival. An advanced ERP system is vital to companies that face problems of real time running of reports , waste age of time through re-entering the similar data in multiple systems, or where major business metrics are done by hand on normal spreadsheets. Despite the listed benefits, however, the systems extract an enormous cost. Implementation demands considerable time commitments from either outside professionals or the information technology department in the company. A research for instance carried out showed that only 5% of information technology managers could install ERP packages directly from the box. Secondly, only 9% stated substantial customization work. In addition, since ERP systems influence major departments in a firm, they have a tendency to bring about changes in most business processes (Mukwasi &Seymour, 2012). Putting up an ERP therefore requires a lot of technical and managerial support, employee training and new procedures. As a result, firms find the transition to ERP to be a painful and slow process. Sometimes after completing the implementation phase some firms find it hard to quantify the benefits they gain from ERP. Other critics identified implementation failures as a result of change issues that were hard to assimilate. Database integration and project management failures associated with cost overruns were also noted. In most cases, the advantages of implementing the ERP system generally outweigh the disadvantages. The commonly experienced obstacles include: Continuous technical support might be cut off The implementation process of ERP systems is very expensive In many circumstances the scope of customization is usually limited ERP systems might be very rigid for particular organizations that may opt for a different business idea in future. In order to synchronize with ERP current business processes have to be restructured. III. Emerging trends, tools and opportunities Collaboration among knowledge workers Knowledge workers usually coordinate expert advice from other similar knowledge professionals to tackle non-routine difficulties in most professions that are usually knowledge intensive. Advanced knowledge workers maintain and develop ties with fellow counter parts who are also knowledge experts for reliable and speedy economic access to the specific knowledge. The personal relations between knowledge workers grow irrespective of their formal structures and organizational boundaries and are referred to as ego-cantered networks of experts or professionals. A research on knowledge sharing found that personal connections and relations between knowledge workers was an important form of transferring knowledge and information among professionals (Rodriguez & Gairin, 2013). Surprisingly, little is known on how knowledge workers convert their personal relations into beneficial knowledge collaboration. Details on how they handle complexities and risks involved in the connections that lack organizational control mechanisms and formal structures are also not clear. Recent studies have shown that Tran’s active memory systems coordinate specialized knowledge for the purpose of resolving problems collaboratively (Shaul & Tauber, 2012). Researchers dealing with knowledge management have emphasized on the impact trust has on sharing knowledge through social means. For example, Dehaghi (2012) asserts that informal information that occasionally trades literature pinpoints the role reciprocity plays on matters of knowledge sharing especially through social ways. Basically, the professionals use theories such as social exchange, Tran’s active memory systems and trust to support knowledge. The theories are presumed to be the guidelines guiding professionals in their informal knowledge sharing relations (Dehaghi, 2012). There is an overall conclusion that reciprocity, Tran’s active memory and trust define informal structures in ego-cantered connections of professionals. This aims at sharing the expertise and know-how with one another. Integrated ERP planning system and firms using it ERP integration refers to the process of integrating various, stove pipe systems with various enterprise information resources or with each other to meet specific B2B needs. Initially, ERP systems like Oracle, Lawson, SAP and PeopleSoft were made with the aim of firmly integrating processes in an enterprise. This includes manufacturing, sales, planning, order tracking and customer service. In an ERP implementation a time reaches where the encompassing systems have to communicate with the rest of the legacy applications and 3rd party solutions (Chu & Chiu, 2013). IWay software solutions are basically the software’s responsible for ERP integration. They have solutions to warehouse management, data collection to integrate more reliably and easily with the ERP. The Iway adapter suite made by information builders links ERP software packages to more than 300 information systems that are enterprise centred. Firms use it to acquire a single vendor solution that allows delivery of real time information to all individuals working in the firm. Knowledge management and major attributes Knowledge management refers to the acquisition of processes that regulate the dissemination, utilization and creation of knowledge. Knowledge management has been around for ages. Practitioners have been priests, teachers, Liberians, politicians, philosophers, scribes, etc. Knowledge management has profound impact on actions taken and decisions made. Knowledge management does not involve any technological activity but instead involves the creation, discovery, utilization and dissemination of knowledge. Knowledge management activities are usually tied to organizational objectives like improved performance, growth of collaborative practices and competitive advantage. Knowledge management is often linked with the concept of learning organizations though no activity encompasses the other (Groth, 2013).Some of the major attributes that make knowledge management unique include knowledge assets, cultivation channels and developmental channels where knowledge flows through. Relationship between ERP and knowledge workers The implementing ERP systems results in changes in the work processes in matters of job sequences, the duties of employees and work routines and data registered in the scheme. ERP systems discipline and structure the organization providing few dynamics for workers and an increased management control. Therefore it can be risky and challenging to use an ERP in an organization that is knowledge intensive where creativity and innovation are essential. Knowledge workers are in most cases autonomous workers therefore requiring flexibility in their routines (Rodriguez &Gairing, 2013). The new routines are usually dictated by the ERP systems. In simple terms a knowledge intensive environment would conflict the properties and features of the ERP system as it incorporates its own logic on a firm. The high degree of flexibility and autonomy witnessed with knowledge workers definitely collides with ERP systems that insist on very principled guidelines. If workers do not adhere to the new processes they result to deviations known as workarounds. There is therefore need for knowledge workers to adjust to new ERP systems that are somewhat demanding to avoid workarounds. The Use of knowledge as a Valued Asset Knowledge depends on human awareness or cognition and is less tangible. There are several types of knowledge the first one is the ability to know a skill or know that a particular move will have an impact on market conditions. Knowledge engineers codify the knowledge into useful human dimension that can be used to resolve problems. The reason why some people presume knowledge to be a valued asset is due to the processes involved in generating knowledge. They include cognitive processes, context sensing and personal memory. The process of measuring knowledge assets revolves around placing a value on an individual, both as a person and most importantly their collective capability (Atherton, 2012). The main reason why knowledge asset is presumed to be valuable is due to the ability it has to be transmuted into services and goods that people will be willing to pay for. Further exploitation of the knowledge asset unravels new areas such as knowledge utilities and knowledge networking that has broadly enriched ambitious individuals. The key to benefiting from the asset lies on the identifying mechanisms and key concepts required to exploit the asset. IV. Conclusion ERP system may seem costly and complex however, even small firms are finding the need to invest and embrace the technology for the purpose of acquiring a competitive advantage. Currently, ERP systems are being used to form a rigid foundation for growing infant business across all the sectors from top automotive manufacturers to dot-coms. Pre-tested and pre-configured versions are currently slashing implementation costs at the same time they are also reducing project risks and project complexities. The new systems are offering clean headStarts in development. ERP solutions are undoubtedly the operational backbone of an established or growing firm. Regardless of a few controversies, ERP systems are being regarded as some of the most innovative ideas developed in the field of IT. The controversies are cited from the ERP’s cons, which can be checked through continuous improvement and make it near perfect. The standardization, reengineering and integration capabilities of the ERP systems constitute the fundamental reasons for many firms are implementing the solutions. References Atherton, A. (2012). Organizational ‘know-where’ and ‘know-when’: Re-framing configurations and distributions of knowledge in organizations. Knowledge Management Research & Practice, 8(13), 410-421. Chu, M., & Chiu, S. (2013). Effective Marketing Strategies to Attract Business Visitors at Trade Shows. International Journal of Business and Management.25 (4), 249-256. Dehaghi, M. (2012). Happiness as an effective factor in organizational commitment of managers. African Journal of Business Management. 6(33), 460-468. Groth, K. (2013). Using social networks for knowledge management.Retrieved.https://asis.org/Bulletin/Dec-11/DecJan12_Pfeiffer_Tonkin.pdf Grubisic, I. (2014). 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