Applicability of ERP Systems for KnowledgeManagement in the Context of QualityManagementAbstract. Today technological advances are frequently affecting all aspects of atypical organizationOne of such aspects is organisational quality management.As work environment changes dramaticallythe need for appropriate business systems to support the new working conditions arises. Theassumption behind this paper is that quality management oriented knowledge management systemwould be a proper mean for enchasing effectiveness of an organisation. Thegoal of the paper is toanalyse direct and indirect support of different ERP mod-ules and technologies to knowledge andquality management in order to identify which ERP solutions and technologies could be used inquality manage mentoriented knowledge management system.1IntroductionToday's dynamic and turbulent environment makes it difficult for organisations to operatesuccessfully and maintain competitive advantage. Therefore, organizations are looking for newsolutions and possibilities for improvement of existing systems in order to achieve and/or maintaintheircompetitiveness.Rapid environmental changes challenge existing organisational quality management systems byrequesting agile quality strategies and innovative quality solutions. Such requirements hardly can bemet by traditional quality information systems, be- cause managing in rapidly changing environmentrequires knowledge (not just information) based solutions. In the same time particular knowledgemanagement oriented properties are presented by several information systems solutions, e.g.,particular solutions incorporated in ERP systems.This paper presents a part of the research on the development of quality management orientedknowledge management system. Quality management oriented knowledge management system is aknowledge management system that is designed to enhance the effectiveness of quality managementsystem and thus contribute to the overall welfare of the organisation. The goal of the paper is toanalyse direct and indirect support of different ERP modules and technologies to knowledge andquality management in order to identify which ERP solutions and technologies could be used inquality oriented knowledge management system, Research method is analytical, i.e. the conclusions
Applicability of ERP Systems for Knowledge Management in the Context of Quality Management Abstract. Today technological advances are frequently affecting all aspects of atypical organization. One of such aspects is organisational quality management.As work environment changes dramatically, the need for appropriate business systems to support the new working conditions arises. The assumption behind this paper is that quality management oriented knowledge management system would be a proper mean for enchasing effectiveness of an organisation. Thegoal of the paper is to analyse direct and indirect support of different ERP mod-ules and technologies to knowledge and quality management in order to identify which ERP solutions and technologies could be used in quality manage mentoriented knowledge management system. 1 Introduction Today’s dynamic and turbulent environment makes it difficult for organisations to operate successfully and maintain competitive advantage. Therefore, organizations are looking for new solutions and possibilities for improvement of existing systems in order to achieve and/or maintain their competitiveness. Rapid environmental changes challenge existing organisational quality management systems by requesting agile quality strategies and innovative quality solutions. Such requirements hardly can be met by traditional quality information systems, be- cause managing in rapidly changing environment requires knowledge (not just information) based solutions. In the same time particular knowledge management oriented properties are presented by several information systems solutions, e.g., particular solutions incorporated in ERP systems. This paper presents a part of the research on the development of quality management oriented knowledge management system. Quality management oriented knowledge management system is a knowledge management system that is designed to enhance the effectiveness of quality management system and thus contribute to the overall welfare of the organisation. The goal of the paper is to analyse direct and indirect support of different ERP modules and technologies to knowledge and quality management in order to identify which ERP solutions and technologies could be used in quality oriented knowledge management system. Research method is analytical, i.e. the conclusions
are derived on the basis of feature analysis of ERP systems components. The research relies on a widevariety of information sources in order to identify the current situation in the research areas. In general,organizational information systems can provide a part of knowledge management systemsinfrastructure and components.Here,in particular,the potential contribution of ERP systems toquality management oriented knowledge management system is analysed.ERP arecomprehensive,packaged software solutions that seek to integrate the completerange ofbusiness processes and functions in order to present a holistic view of the business from a singleinformation and information technology architecture.It provides seamless integration of allinformation flowing through a company, such as financial, accounting, human resources, supply chain,and customer information. ERP combines all the information of an organization together into a single,integrated software program that converges on a single database so that the various departments canshare information and communicate with each other more easily. Once the data are input at onesystem, they immediately become available throughout all systems, which deliver a consistentmanagement interface. ERP packages are usually upgraded on a regular basis to adopt new technology,further improve the productivity with advanced work process, streamline and standardize workprocess, and yet bring more data consistency and integrity across all modules, so the management canbenefit from prompt real-time processing to provide information for decisions.Many largeorganisations worldwide have already adopted ERP, and increasingly small- and medium - sizedenterprises also are finding it cost effective and competitively advantageous to follow the example oflargeorganisations.Impact of ERP systems modules and technologies on knowledge management inthe context ofqualitymanagement is threefold:(1) ERP systems provide knowledgemanagement oriented modules that may be used in qualitymanagement.(2) ERP systems incorporate technologies applicable for knowledge management systems, and(3) ERP systems have quality management oriented modules that can be included as aninformation sources in the quality management oriented knowledge management system of theorganisation.This paper investigates the field that has not been broadly researched yet. Although theinteraction and intersection between ERP and knowledge management, and the ways, in which theknowledge management initiatives can help to facilitate the processes of implementation and
are derived on the basis of feature analysis of ERP systems components. The research relies on a wide variety of information sources in order to identify the current situation in the research areas. In general, organizational information systems can provide a part of knowledge management systems infrastructure and components. Here, in particular, the potential contribution of ERP systems to quality management oriented knowledge management system is analysed. ERP are comprehensive, packaged software solutions that seek to integrate the complete range of business processes and functions in order to present a holistic view of the business from a single information and information technology architecture. It provides seamless integration of all information flowing through a company, such as financial, accounting, human resources, supply chain, and customer information. ERP combines all the information of an organization together into a single, integrated software program that converges on a single database so that the various departments can share information and communicate with each other more easily. Once the data are input at one system, they immediately become available throughout all systems, which deliver a consistent management interface. ERP packages are usually upgraded on a regular basis to adopt new technology, further improve the productivity with advanced work process, streamline and standardize work process, and yet bring more data consistency and integrity across all modules, so the management can benefit from prompt real-time processing to provide information for decisions. Many large organisations worldwide have already adopted ERP, and increasingly small- and medium - sized enterprises also are finding it cost effective and competitively advantageous to follow the example of large organisations. Impact of ERP systems modules and technologies on knowledge management inthe context of quality management is threefold: (1) ERP systems provide knowledgemanagement oriented modules that may be used in quality management, (2) ERP systems incorporate technologies applicable for knowledge management systems, and (3) ERP systems have quality management oriented modules that can be included as an information sources in the quality management oriented knowledge management system of the organisation. This paper investigates the field that has not been broadly researched yet. Although the interaction and intersection between ERP and knowledge management, and the ways, in which the knowledge management initiatives can help to facilitate the processes of implementation and
maintenance ofERP systems,are extensively investigated,by authors knowledge,ERP systems in thecontext of their application to knowledge management have not been thoroughly analysed. Therefore,the goal of the paper is to analyse the ERP systems in order to identify the ERP modules andtechnologies that support knowledge management, as well as to determine whether it is possible toapply these solutions and technologies to quality management to enhance effectiveness of anorganisation. The ERP systems are chosen as representatives of information system in general becauseof their wide application in organisations and their high competitive capacity within the informationsystems'market. No specific criteria were used to choose particular ERP systems for analysisHowever, principles of popularity and diversity were taken as bases for ERP systems selection.Therefore the most advanced and popular ERP systems (e.g. SAP, Baan, Oracle, and PeopleSoft) thaare oriented to large organizations and international corporations, as well as such ERP systems asMicrosoft Navision and Great Plains, that are focused on the segment of small- and medium- sizedenterprises, where included in the list of systems to be investigated. The paper presents data aboutspecific ERP systems, as well as provides summaries of all the analysed ERP systems where thespecific features of each ERP system are not reflected.The paper is organised as follows. The relationship between knowledge management andinformation systems is analysed, potential contribution of ERP systems to knowledge management isdiscussed, and the basic knowledge management oriented technologies offered by ERP systems areidentified in Section 2.The short overview of the area of quality management is presented and ERPsystems potential support for quality management is discussed in Section 3. These two sections set thebackground for the analysis of potential ERP systems support for quality management orientedknowledge management system that is presented in Section 4. Brief conclusions and directions ofintendedfutureworkaregiven in Section5.2ERPSystems SupportforKnowledgeManagementThis section is focused on the relationship between knowledge management and informationsystems, discusses potential contribution of ERP systems to knowledge management, and identifiesthe basic knowledge management oriented technologies offered by ERP systems.2.1KnowledgeManagementand Information SystemsThe resent trends in the organisational development have demonstrated the importance ofknowledge management. Knowledge management is systematic, precise, and deliberative process ofknowledge creation, retrieval and utilization, The aim of knowledge management is to maximize
maintenance of ERP systems, are extensively investigated, by authors knowledge, ERP systems in the context of their application to knowledge management have not been thoroughly analysed. Therefore, the goal of the paper is to analyse the ERP systems in order to identify the ERP modules and technologies that support knowledge management, as well as to determine whether it is possible to apply these solutions and technologies to quality management to enhance effectiveness of an organisation. The ERP systems are chosen as representatives of information system in general because of their wide application in organisations and their high competitive capacity within the information systems’ market. No specific criteria were used to choose particular ERP systems for analysis. However, principles of popularity and diversity were taken as bases for ERP systems selection. Therefore the most advanced and popular ERP systems (e.g. SAP, Baan, Oracle, and PeopleSoft) that are oriented to large organizations and international corporations, as well as such ERP systems as Microsoft Navision and Great Plains, that are focused on the segment of small- and medium- sized enterprises, where included in the list of systems to be investigated. The paper presents data about specific ERP systems, as well as provides summaries of all the analysed ERP systems where the specific features of each ERP system are not reflected. The paper is organised as follows. The relationship between knowledge management and information systems is analysed, potential contribution of ERP systems to knowledge management is discussed, and the basic knowledge management oriented technologies offered by ERP systems are identified in Section 2. The short overview of the area of quality management is presented and ERP systems potential support for quality management is discussed in Section 3. These two sections set the background for the analysis of potential ERP systems support for quality management oriented knowledge management system that is presented in Section 4. Brief conclusions and directions of intended future work are given in Section 5. 2 ERP Systems Support for Knowledge Management This section is focused on the relationship between knowledge management and information systems, discusses potential contribution of ERP systems to knowledge management, and identifies the basic knowledge management oriented technologies offered by ERP systems. 2.1 Knowledge Management and Information Systems The resent trends in the organisational development have demonstrated the importance of knowledge management. Knowledge management is systematic, precise, and deliberative process of knowledge creation, retrieval and utilization. The aim of knowledge management is to maximize
efficiency of activities related to knowledge as well as benefits acquired from this knowledgeKnowledge management is improving the ways the organizations are doing the business. Knowledgemanagement systems have been applied in different areas of organizational performance. There areknowledge management systems for strategic planning, marketing, manufacturing, finances andhumanresourcesmanagement.In order to transform knowledge into a valuable organizational asset, knowledge, experience, andexpertise must be formalised, distributed, shared, and applied. Effective management of knowledgerequires hybrid solutions involving both people and technology.Therefore it is very important todetermine the technology for storing the knowledge, persuade employees to contribute to therepository, create a structure for holding the knowledge.Past management information systems basically used the computer as a means of providinginformation to solve recurring operational problems. Today, there is a need for new types of systemsthat focuses on discovering knowledge that responds to the changing environment. By increasingcapabilities of decision makers, information systems that support knowledge management initiativesimprove the chances that an organization will achieve its goals.Past and current management information systems that influenced today's knowledgemanagement systems indirectly are integrated management information systems, real-timemanagement information systems, and distributed management information systems. Mostly thesesystems focus on processing a company's critical applications without which the business could notcontinue its operation. These systems are integral part in building company's knowledge managementsystem.Information systems that support information flow are one essential component in knowledgemanagement system.Information systems create good virtual environment for knowledgemanagement. One type of such information systems is ERP systems.2.2 Potential Contribution of ERP Systems to Knowledge ManagementSome academic research has been done in the area of ERP systems' application to knowledgemanagement within the organizations. However, important claims in this regard are emerging from thepractitioner literature. For example, articles debate the effectiveness or ineffectiveness of ERP systemsin extracting usable information from the underlying organizational data, the role of ERP systems asorganizational"knowledge libraries", or the addition of ERPmodules that incorporate groupware anddecision support systems. In order to find out how ERP systems can support knowledge management
efficiency of activities related to knowledge as well as benefits acquired from this knowledge. Knowledge management is improving the ways the organizations are doing the business. Knowledge management systems have been applied in different areas of organizational performance. There are knowledge management systems for strategic planning, marketing, manufacturing, finances and human resources management. In order to transform knowledge into a valuable organizational asset, knowledge, experience, and expertise must be formalised, distributed, shared, and applied. Effective management of knowledge requires hybrid solutions involving both people and technology. Therefore it is very important to determine the technology for storing the knowledge, persuade employees to contribute to the repository, create a structure for holding the knowledge. Past management information systems basically used the computer as a means of providing information to solve recurring operational problems. Today, there is a need for new types of systems that focuses on discovering knowledge that responds to the changing environment. By increasing capabilities of decision makers, information systems that support knowledge management initiatives improve the chances that an organization will achieve its goals. Past and current management information systems that influenced today’s knowledge management systems indirectly are integrated management information systems, real-time management information systems, and distributed management information systems. Mostly these systems focus on processing a company’s critical applications without which the business could not continue its operation. These systems are integral part in building company’s knowledge management system. Information systems that support information flow are one essential component in knowledge management system. Information systems create good virtual environment for knowledge management. One type of such information systems is ERP systems. 2.2 Potential Contribution of ERP Systems to Knowledge Management Some academic research has been done in the area of ERP systems’ application to knowledge management within the organizations. However, important claims in this regard are emerging from the practitioner literature. For example, articles debate the effectiveness or ineffectiveness of ERP systems in extracting usable information from the underlying organizational data, the role of ERP systems as organizational “knowledge libraries” , or the addition of ERP modules that incorporate groupware and decision support systems. In order to find out how ERP systems can support knowledge management
such ERP systems as SAP,Baan,Oracle,PeopleSoft,Microsoft Navision,and Great Plains areanalysed.ERP purports to support all business functions of an enterprise. High functionality is one of themain differentiators of ERP.The main features of ERP are provided business solutions, which supportthe core processes of the business and administrative functionality. In addition to these generalbusiness functions,ERP often supports industry specific functions like student administration atuniversities or high volume warehousing transactions for retailers etc,However, further in this sectiononly those ERP solutions that supportknowledge management will be discussed.The results of the detailed analysis of ERP systems with respect to ERP systemspotential support to knowledge management are identified and summarized in Table 1.The firstcolumn of the table presents ERP solutions that support knowledge management. The second columndescribes potential contribution of ERP systems to knowledge management.Table 1.Potential contribution of ERP systems to knowledge managementPotential contribution of ERP systems toERPsolutionsknowledgemanagement?Enable users to:Accessanytypeofcontentviafunctionality,intelligentsearchpublish-and-subscribe methods,orsimple browsing,Efficiently manage,classify,andsearch content,Control the publishing cycle, usingEnterprise Portal (EP)online collaboration andeditorialworkflow capabilities,with.Integrateinformationtransactions,Search internal and external sourcesand identify subject-matter experts.In addition, offers:?Web-based authoring that simplifies
such ERP systems as SAP, Baan, Oracle, PeopleSoft, Microsoft Navision, and Great Plains are analysed. ERP purports to support all business functions of an enterprise. High functionality is one of the main differentiators of ERP. The main features of ERP are provided business solutions, which support the core processes of the business and administrative functionality. In addition to these general business functions, ERP often supports industry specific functions like student administration at universities or high volume warehousing transactions for retailers etc . However, further in this section only those ERP solutions that support knowledge management will be discussed. The results of the detailed analysis of ERP systems with respect to ERP systems potential support to knowledge management are identified and summarized in Table 1. The first column of the table presents ERP solutions that support knowledge management. The second column describes potential contribution of ERP systems to knowledge management. Table 1. Potential contribution of ERP systems to knowledge management ERP solutions Potential contribution of ERP systems to knowledge management Enterprise Portal (EP) Enable users to: Access any type of content via intelligent search functionality, publish-and-subscribe methods, or simple browsing, Efficiently manage, classify, and search content, Control the publishing cycle, using online collaboration and editorial workflow capabilities, Integrate information with transactions, Search internal and external sources and identify subject-matter experts. In addition, offers: Web-based authoring that simplifies