Question

Answer All Questions.
Anwer with proper definations and clearly statated explainations with references and bibliography.
16.(a) Discuss knowledge management and its critical relevance in
business entities and industry.
(OR)
16.(b) Explain the following Information Technology terms as they are applied to management information system giving examples where appropriate:
(i) Contingency
(ii) Audit trail
(iii) Privacy
(iv) firewall
(each term is equal two marks)

Answer 1

### 16.(a) Knowledge Management and Its Critical Relevance in Business Entities and Industry

**Definition of Knowledge Management (KM)**:
Knowledge Management refers to the systematic process of identifying, creating, sharing, and utilizing knowledge within an organization to enhance its effectiveness, innovation, and competitive advantage. It involves strategies and practices designed to improve the creation, sharing, and application of knowledge.

**Critical Relevance of KM in Business Entities and Industry**:

1. **Enhanced Decision-Making**:
Organizations that implement effective KM systems can harness vast amounts of information and expert knowledge, which aids in making informed decisions. For example, companies like Google employ KM practices to gather data-driven insights that guide product development and business strategies.

2. **Improved Efficiency**:
By promoting knowledge sharing and minimizing redundancy, businesses can streamline operations. Efficient KM practices can reduce the time employees spend searching for information, allowing them to focus on core tasks. For instance, IBM uses a knowledge repository that enables employees to access information and past experiences easily.

3. **Innovation and Competitive Advantage**:
KM fosters an environment conducive to innovation by enabling collaboration and the exchange of ideas among employees. Companies such as Apple utilize KM to encourage team collaboration, leading to innovative product features that set them apart from competitors.

4. **Employee Engagement and Retention**:
A robust KM system can increase employee satisfaction by providing access to valuable resources, sparking engagement through communities of practice, and reducing knowledge loss when employees leave. For example, consulting firms like Deloitte actively cultivate knowledge-sharing cultures to retain talent and leverage expertise.

5. **Adaptability to Change**:
In rapidly changing industries, KM equips organizations to adapt by disseminating knowledge about market trends, technological advancements, and customer preferences. Companies like Amazon continuously refine their processes based on shared knowledge to meet evolving customer demands.

6. **Risk Management**:
Knowledge in organizations is crucial in risk assessment and management. By learning from past failures and successes, entities can mitigate risks more effectively. For instance, in the finance sector, institutions utilize KM to analyze previous market behaviors to inform trading strategies.

**References**:
- Davenport, T. H., & Prusak, L. (1998). *Working Knowledge: How Organizations Manage What They Know*. Harvard Business Review Press.
- Nonaka, I., & Takeuchi, H. (1995). *The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation*. Oxford University Press.

---

### 16.(b) Explanation of Information Technology Terms Applied to Management Information Systems

**(i) Contingency**:
In the context of Management Information Systems (MIS), a contingency refers to an unforeseen event that disrupts normal operations. Contingency planning involves creating strategies to address potential disruptions ensuring that critical functions can continue. For example, a company may develop a contingency plan for system failures that includes backup processes and data recovery methods.

**(ii) Audit Trail**:
An audit trail is a record of all transactions and changes made within an MIS. It provides a comprehensive log that tracks the sequence of activities, serving as crucial evidence for accountability and compliance. For instance, in a financial database, every transaction would be logged to ensure that any alterations can be traced back to the initiator, aiding in both security and auditing processes.

**(iii) Privacy**:
Privacy in the context of MIS involves the right of individuals and organizations to control their personal or proprietary information. It implies that data collected should be protected from unauthorized access or disclosure. For instance, when customers provide their information to an e-commerce platform, the company must ensure that sensitive data like credit card details are encrypted and used according to strict privacy policies.

**(iv) Firewall**:
A firewall is a security system that monitors and controls incoming and outgoing network traffic based on predetermined security rules. It serves as a barrier between a trusted internal network and untrusted external networks. For example, a corporate network might use a firewall to block unauthorized access while allowing legitimate users to access necessary resources, thus safeguarding sensitive data.

**References**:
- Stair, R., & Reynolds, G. (2017). *Principles of Information Systems*. Cengage Learning.
- Whitman, M. E., & Mattord, H. J. (2017). *Principles of Information Security*. Cengage Learning.