Knowledge-based systems support for strategic decisions

Abstract

Although knowledge management has been of great interest worldwide, IT investment in knowledge Management have not yet been given enough attention from Jordanian Organizations. This paper reports on the availability of Knowledge-Based System and the benefits expected from the deployment of such a system in increasing the effectiveness of strategic decisions. The paper highlights the need for an automated tool to support such a complex decision-making process and presents the architecture of such a system. The knowledge-Based system consolidates the knowledge that every employee holds explicitly or implicitly and utilizes it for taking the decision in consideration; which would improve its effectiveness. The influence of four factors, representing the use of KBS, had been studied to see their effect on strategic decisions. The factors were; capabilities of individuals, availability of required technologies, coordination between departments, and acceptance and trust of decision makers. The study sample represents the engineering offices in Jordan. A questionnaire consisting of two parts and totaling forty-two questions was distributed. The appropriate statistical analyses were performed to arrive at the following conclusions: • There has been some significant misunderstanding of the concept of knowledge management. • There was no apparent technique used for managing records in the majority of the offices researched. • CEOs have owners who would rather depend on their own intutition and knowledge when dealing with strategic decisions and would hardly share opinions with subordinates. • CEOs have shown great interest in such a system although analyses have shown that only acceptance and trust of decision makers-of the pre-selected factors- had a significant statistical relation with the effectiveness of strategic decision. Finally, the paper recommends continuous education for the CEOs and owners of organizations about the importance of knowledge management and the benefits associated with investments in knowledge management systems. © EuroJournals, Inc. 2010.