International Journal of Computer Applications (0975 – 8887) Volume 114 – No. 5, March 2015 36 Integrating Knowledge Management and Business Intelligence Processes for Empowering Government Business Organizations Herison Surbakti Information System Dept. Universitas Respati Yogyakarta Yogyakarta – Indonesia ABSTRACT Emergence of information technologies has transformed the way business marketing is done and how business enterprises are managing the resources and information. Trend of globalization has induced the fierce competitiveness among business enterprises within domestic and international markets. The major quest for the technologies is not limited to strategic value of an organization but also empower the organization work context by utilizing its resources. Knowledge management has emerged as the latest techno- management trend for improving the work process and creating value for business organization operations. Knowledge management offers various techno-managerial implications to business organization for strategic development. However, there are scarce evidences on business intelligence, strategic management decision support related to business organization adopting these offerings. Major objective of Business Intelligence is to extract the information and find the hidden knowledge from all sources of data. Business Intelligence offers to make decision for enhancement of any organizations goal. The broad overview of research articulates an understanding of government based organizations about the adoption of Knowledge management based Business Intelligence solutions and its challenges. Data mining is playing a key role in Knowledge Management based systems for business organizations and its implication lies in the implementation of data mining algorithm for exploring the huge amount of data, which determines the pure knowledge. Majority of the government organizational data remains in either unstructured form such as raw form of data (i.e. internal or external document) or with its employees in the form of experience. Knowledge management process deals with extraction of both tacit and explicit knowledge of organization for improving the performance of organization. However Business Intelligence (BI) on the other hand gained its importance with constant enhancement in technologies and tools for extracting the hidden knowledge and patterns. Hence it can be argued that both Business Intelligence and Knowledge Management are complimentary to each other for extracting and managing the knowledge. Thus it’s very imperative for government organizations to have an integration of both Knowledge Management (KM) and Business Intelligence (BI) processes for enhancing the performance of the organization with respect to make organization decision for competitive environment and utilizing the organizational tacit knowledge. The paper focuses on how BI and KM integration affect the government business organization while discussing its implementation challenges. The paper tries to analyze the correlation between Knowledge Management and Business Intelligence and exploring a road map for data mining based framework for Knowledge Management focusing government based organizations. Current situation of knowledge management strategic decision making and role of knowledge must need to be addressed before proposing any framework for government organization. Paper provides a detailed extensive literature review which aims to describe the basics of Knowledge Management based systems and integrating Business Intelligence with Knowledge Management. Study will draw a distinction between individual and organizational knowledge as well as whether knowledge is playing a key role in strategic development or not? Keywords Knowledge Management (KM), Business Intelligence (BI), Data Mining, Knowledge, Data Warehouse 1. INTRODUCTION In the era of knowledge and technical innovation, it has been widely accepted that intangible assets of any business organization will be key to its success. Knowledge is supposed to be most important asset of any business organization, which has the largest influence on competitiveness, strategic development, and growth. Every organization has individual and organizational knowledge either in the form of raw data or information. Raw data or information retains within organization in the form of implicit knowledge and with limited resources. These information or raw data needs to be processed to acquire knowledge through the use of knowledge management & data mining approach. Further knowledge can be made accessible to all through knowledge management process. Several environmental factors around which each business operates are: globalization, fierce competition, changes in organization structure, growth of information technology, and advent of knowledge management process [1]. Thus, emergence of Knowledge Management discipline has changed the direction of business strategic planning. In the context of business organization, knowledge management is used to acquire the knowledge and experiences it for strategic development. Reuse of preciously acquired knowledge can be beneficial for preventing past failure and used as a guideline for fixing recurrent issues. It has been claimed that in business enterprise the knowledge not only embedded to document and repositories but also with enterprise routine, process, and practices [2]. Thus, knowledge is recognizing itself as one of the most important assets of any organization. Knowledge is acquired through the processing of available data of organization using data mining approaches. Data mining is a tool for processing the data to find out the relationship within the data that can be beneficial for the user. Data mining has the potential to use is as a powerful tool for the business intelligence but yet not fully recognized [3]. With the proliferation of the new technologies data mining has experienced an exponential