• Title/Summary/Keyword: Personal Use

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VKOSPI Forecasting and Option Trading Application Using SVM (SVM을 이용한 VKOSPI 일 중 변화 예측과 실제 옵션 매매에의 적용)

  • Ra, Yun Seon;Choi, Heung Sik;Kim, Sun Woong
    • Journal of Intelligence and Information Systems
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    • v.22 no.4
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    • pp.177-192
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    • 2016
  • Machine learning is a field of artificial intelligence. It refers to an area of computer science related to providing machines the ability to perform their own data analysis, decision making and forecasting. For example, one of the representative machine learning models is artificial neural network, which is a statistical learning algorithm inspired by the neural network structure of biology. In addition, there are other machine learning models such as decision tree model, naive bayes model and SVM(support vector machine) model. Among the machine learning models, we use SVM model in this study because it is mainly used for classification and regression analysis that fits well to our study. The core principle of SVM is to find a reasonable hyperplane that distinguishes different group in the data space. Given information about the data in any two groups, the SVM model judges to which group the new data belongs based on the hyperplane obtained from the given data set. Thus, the more the amount of meaningful data, the better the machine learning ability. In recent years, many financial experts have focused on machine learning, seeing the possibility of combining with machine learning and the financial field where vast amounts of financial data exist. Machine learning techniques have been proved to be powerful in describing the non-stationary and chaotic stock price dynamics. A lot of researches have been successfully conducted on forecasting of stock prices using machine learning algorithms. Recently, financial companies have begun to provide Robo-Advisor service, a compound word of Robot and Advisor, which can perform various financial tasks through advanced algorithms using rapidly changing huge amount of data. Robo-Adviser's main task is to advise the investors about the investor's personal investment propensity and to provide the service to manage the portfolio automatically. In this study, we propose a method of forecasting the Korean volatility index, VKOSPI, using the SVM model, which is one of the machine learning methods, and applying it to real option trading to increase the trading performance. VKOSPI is a measure of the future volatility of the KOSPI 200 index based on KOSPI 200 index option prices. VKOSPI is similar to the VIX index, which is based on S&P 500 option price in the United States. The Korea Exchange(KRX) calculates and announce the real-time VKOSPI index. VKOSPI is the same as the usual volatility and affects the option prices. The direction of VKOSPI and option prices show positive relation regardless of the option type (call and put options with various striking prices). If the volatility increases, all of the call and put option premium increases because the probability of the option's exercise possibility increases. The investor can know the rising value of the option price with respect to the volatility rising value in real time through Vega, a Black-Scholes's measurement index of an option's sensitivity to changes in the volatility. Therefore, accurate forecasting of VKOSPI movements is one of the important factors that can generate profit in option trading. In this study, we verified through real option data that the accurate forecast of VKOSPI is able to make a big profit in real option trading. To the best of our knowledge, there have been no studies on the idea of predicting the direction of VKOSPI based on machine learning and introducing the idea of applying it to actual option trading. In this study predicted daily VKOSPI changes through SVM model and then made intraday option strangle position, which gives profit as option prices reduce, only when VKOSPI is expected to decline during daytime. We analyzed the results and tested whether it is applicable to real option trading based on SVM's prediction. The results showed the prediction accuracy of VKOSPI was 57.83% on average, and the number of position entry times was 43.2 times, which is less than half of the benchmark (100 times). A small number of trading is an indicator of trading efficiency. In addition, the experiment proved that the trading performance was significantly higher than the benchmark.

A study on security independent behavior in social game using expanded health belief model (건강신념모델을 확장한 소셜게임(Social Game) 보안의지행동에 관한 연구)

  • Ahn, Ho-Jeong;Kim, Sung-Jun;Kwon, Do-Soon
    • Management & Information Systems Review
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    • v.35 no.2
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    • pp.99-118
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    • 2016
  • With the development of Internet and popularization of smartphones over recent years, social network services are experiencing rapid growth. On top of this, smartphone gaming market is showing a rapid growth and the use of mobile social games is on the significant rise. The occurrence of game data manipulation targeting these services and personal information leakage is highlighting the importance of social gaming security. This study is intended to propose development plans effective and efficient in social game services by figuring out factors putting effects on security dependent behavior of social game users in Korea and carrying out a practical study on the casual relationship between factors influencing security dependent behavior through recognized behavioral control and attitudes for privacy infringement of these factors. To do this, proposed was a study model in which the HBM(Health Belief Model) allowing the social game user to influence security dependent behavior was expanded and applied as a major variable. To verify the study model of this study practically, a survey was conducted among university students in Seoul-based K University and S University who had experienced using social game services. According to the study findings, firstly, the perceived seriousness turned out to provide positive influence to trust. But, the perceived seriousness turned out not to put positive effects on self-efficacy. Secondly, the perceived probability turned out not to put positive effects on self-efficacy and trust. Thirdly, the perceived gain turned out to put positive effects on self-efficacy and trust. Fourthly, the perceived disorder turned out not to put positive effects on self-efficacy and trust. Fifthly, self-efficacy turned out to put positive effects on trust. But, self-efficacy turned out not to put positive effects on security dependent behavior. Sixthly, trust turned out not to put positive effects on security dependent behavior. This study is intended to make a strategic proposal so that social game users can raise awareness of their level of security perception and security willingness through this.

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Development of Program for Renal Function Study with Quantification Analysis of Nuclear Medicine Image (핵의학 영상의 정량적 분석을 통한 신장기능 평가 프로그램 개발)

  • Song, Ju-Young;Lee, Hyoung-Koo;Suh, Tae-Suk;Choe, Bo-Young;Shinn, Kyung-Sub;Chung, Yong-An;Kim, Sung-Hoon;Chung, Soo-Kyo
    • The Korean Journal of Nuclear Medicine
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    • v.35 no.2
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    • pp.89-99
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    • 2001
  • Purpose: In this study, we developed a new software tool for the analysis of renal scintigraphy which can be modified more easily by a user who needs to study new clinical applications, and the appropriateness of the results from our program was studied. Materials and Methods: The analysis tool was programmed with IDL5.2 and designed for use on a personal computer running Windows. For testing the developed tool and studying the appropriateness of the calculated glomerular filtration rate (GFR), $^{99m}Tc$-DTPA was administered to 10 adults in normal condition. In order to study the appropriateness of the calculated mean transit time (MTT), $^{99m}Tc-DTPA\;and\;^{99m}Tc-MAG3$ were administered to 11 adults in normal condition and 22 kidneys were analyzed. All the images were acquired with ORBITOR. the Siemens gamma camera. Results: With the developed tool, we could show dynamic renal images and time activity curve (TAC) in each ROI and calculate clinical parameters of renal function. The results calculated by the developed tool were not different statistically from the results obtained by the Siemens application program (Tmax: p=0.68, Relative Renal Function: p:1.0, GFR: p=0.25) and the developed program proved reasonable. The MTT calculation tool proved to be reasonable by the evaluation of the influence of hydration status on MTT. Conclusion: We have obtained reasonable clinical parameters for the evaluation of renal function with the software tool developed in this study. The developed tool could prove more practical than conventional, commercial programs.

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A Study on the Micro Discourse about Urban Parks in Blogs - In the Case of the Seoul Forest - (블로그(Blog)에 나타난 도시공원 미시담론 - 서울숲을 대상으로 -)

  • Lee, Jaei;Sung, Jong-Sang
    • Journal of the Korean Institute of Landscape Architecture
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    • v.43 no.1
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    • pp.29-39
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    • 2015
  • This study has attempted to determine the micro-discourse from blogs as personal media that reflect citizens' actual opinions of the Seoul Forest without intervention of experts. Furthermore, a qualitative research method discourse analysis was selected to analyze the micro-discourse regarding the Seoul Forest in a time series. The extracted samples of blogs by year were intended to identify the comment section of the process of change and the discursive structure. The results are as follows; first, from the beginning of the development of the Seoul Forest to the present, it is divided into four chronological periods along with individuals' micro-discourse with social changes. During the beginning of the development of the Seoul Forest, the social discourse was formed, and in the next period, the micro-discourse was developed with a more emotional and complex discourse. In the formative period, four or five years later, the discourse reflected the civic consciousness of development more than ever, showing the diversity of participation in the program at the Seoul Forest. In the growth period, as the users' experiences had been accumulated, the users started writing about the role of the Seoul Forest in their own words. This can also be called place discourse. From the individuals' micro-discourse, this study shows the discourse structure of how individuals think about the Seoul Forest in each period. Unlike the experts, the micro-discourse contains specific daily interactions, experiences, and the stories of individuals who actually use the parks. It also shows how users reproduce and understand the space. In this respect, this is the most significant finding of this study. Based on this research, this study has demonstrated that the emotional description of a place that actually functions as a discourse about city parks, and confirms that blogs could be used as a space to form discourse and as a research tool to read the trends. In accordance with these results, this study has described not only the discourse of experts, but also how the discourse of individuals' comments can be an important part of the discourse of modern urban parks.

An Analysis of IT Trends Using Tweet Data (트윗 데이터를 활용한 IT 트렌드 분석)

  • Yi, Jin Baek;Lee, Choong Kwon;Cha, Kyung Jin
    • Journal of Intelligence and Information Systems
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    • v.21 no.1
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    • pp.143-159
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    • 2015
  • Predicting IT trends has been a long and important subject for information systems research. IT trend prediction makes it possible to acknowledge emerging eras of innovation and allocate budgets to prepare against rapidly changing technological trends. Towards the end of each year, various domestic and global organizations predict and announce IT trends for the following year. For example, Gartner Predicts 10 top IT trend during the next year, and these predictions affect IT and industry leaders and organization's basic assumptions about technology and the future of IT, but the accuracy of these reports are difficult to verify. Social media data can be useful tool to verify the accuracy. As social media services have gained in popularity, it is used in a variety of ways, from posting about personal daily life to keeping up to date with news and trends. In the recent years, rates of social media activity in Korea have reached unprecedented levels. Hundreds of millions of users now participate in online social networks and communicate with colleague and friends their opinions and thoughts. In particular, Twitter is currently the major micro blog service, it has an important function named 'tweets' which is to report their current thoughts and actions, comments on news and engage in discussions. For an analysis on IT trends, we chose Tweet data because not only it produces massive unstructured textual data in real time but also it serves as an influential channel for opinion leading on technology. Previous studies found that the tweet data provides useful information and detects the trend of society effectively, these studies also identifies that Twitter can track the issue faster than the other media, newspapers. Therefore, this study investigates how frequently the predicted IT trends for the following year announced by public organizations are mentioned on social network services like Twitter. IT trend predictions for 2013, announced near the end of 2012 from two domestic organizations, the National IT Industry Promotion Agency (NIPA) and the National Information Society Agency (NIA), were used as a basis for this research. The present study analyzes the Twitter data generated from Seoul (Korea) compared with the predictions of the two organizations to analyze the differences. Thus, Twitter data analysis requires various natural language processing techniques, including the removal of stop words, and noun extraction for processing various unrefined forms of unstructured data. To overcome these challenges, we used SAS IRS (Information Retrieval Studio) developed by SAS to capture the trend in real-time processing big stream datasets of Twitter. The system offers a framework for crawling, normalizing, analyzing, indexing and searching tweet data. As a result, we have crawled the entire Twitter sphere in Seoul area and obtained 21,589 tweets in 2013 to review how frequently the IT trend topics announced by the two organizations were mentioned by the people in Seoul. The results shows that most IT trend predicted by NIPA and NIA were all frequently mentioned in Twitter except some topics such as 'new types of security threat', 'green IT', 'next generation semiconductor' since these topics non generalized compound words so they can be mentioned in Twitter with other words. To answer whether the IT trend tweets from Korea is related to the following year's IT trends in real world, we compared Twitter's trending topics with those in Nara Market, Korea's online e-Procurement system which is a nationwide web-based procurement system, dealing with whole procurement process of all public organizations in Korea. The correlation analysis show that Tweet frequencies on IT trending topics predicted by NIPA and NIA are significantly correlated with frequencies on IT topics mentioned in project announcements by Nara market in 2012 and 2013. The main contribution of our research can be found in the following aspects: i) the IT topic predictions announced by NIPA and NIA can provide an effective guideline to IT professionals and researchers in Korea who are looking for verified IT topic trends in the following topic, ii) researchers can use Twitter to get some useful ideas to detect and predict dynamic trends of technological and social issues.

Development of User Based Recommender System using Social Network for u-Healthcare (사회 네트워크를 이용한 사용자 기반 유헬스케어 서비스 추천 시스템 개발)

  • Kim, Hyea-Kyeong;Choi, Il-Young;Ha, Ki-Mok;Kim, Jae-Kyeong
    • Journal of Intelligence and Information Systems
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    • v.16 no.3
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    • pp.181-199
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    • 2010
  • As rapid progress of population aging and strong interest in health, the demand for new healthcare service is increasing. Until now healthcare service has provided post treatment by face-to-face manner. But according to related researches, proactive treatment is resulted to be more effective for preventing diseases. Particularly, the existing healthcare services have limitations in preventing and managing metabolic syndrome such a lifestyle disease, because the cause of metabolic syndrome is related to life habit. As the advent of ubiquitous technology, patients with the metabolic syndrome can improve life habit such as poor eating habits and physical inactivity without the constraints of time and space through u-healthcare service. Therefore, lots of researches for u-healthcare service focus on providing the personalized healthcare service for preventing and managing metabolic syndrome. For example, Kim et al.(2010) have proposed a healthcare model for providing the customized calories and rates of nutrition factors by analyzing the user's preference in foods. Lee et al.(2010) have suggested the customized diet recommendation service considering the basic information, vital signs, family history of diseases and food preferences to prevent and manage coronary heart disease. And, Kim and Han(2004) have demonstrated that the web-based nutrition counseling has effects on food intake and lipids of patients with hyperlipidemia. However, the existing researches for u-healthcare service focus on providing the predefined one-way u-healthcare service. Thus, users have a tendency to easily lose interest in improving life habit. To solve such a problem of u-healthcare service, this research suggests a u-healthcare recommender system which is based on collaborative filtering principle and social network. This research follows the principle of collaborative filtering, but preserves local networks (consisting of small group of similar neighbors) for target users to recommend context aware healthcare services. Our research is consisted of the following five steps. In the first step, user profile is created using the usage history data for improvement in life habit. And then, a set of users known as neighbors is formed by the degree of similarity between the users, which is calculated by Pearson correlation coefficient. In the second step, the target user obtains service information from his/her neighbors. In the third step, recommendation list of top-N service is generated for the target user. Making the list, we use the multi-filtering based on user's psychological context information and body mass index (BMI) information for the detailed recommendation. In the fourth step, the personal information, which is the history of the usage service, is updated when the target user uses the recommended service. In the final step, a social network is reformed to continually provide qualified recommendation. For example, the neighbors may be excluded from the social network if the target user doesn't like the recommendation list received from them. That is, this step updates each user's neighbors locally, so maintains the updated local neighbors always to give context aware recommendation in real time. The characteristics of our research as follows. First, we develop the u-healthcare recommender system for improving life habit such as poor eating habits and physical inactivity. Second, the proposed recommender system uses autonomous collaboration, which enables users to prevent dropping and not to lose user's interest in improving life habit. Third, the reformation of the social network is automated to maintain the quality of recommendation. Finally, this research has implemented a mobile prototype system using JAVA and Microsoft Access2007 to recommend the prescribed foods and exercises for chronic disease prevention, which are provided by A university medical center. This research intends to prevent diseases such as chronic illnesses and to improve user's lifestyle through providing context aware and personalized food and exercise services with the help of similar users'experience and knowledge. We expect that the user of this system can improve their life habit with the help of handheld mobile smart phone, because it uses autonomous collaboration to arouse interest in healthcare.

The Development of Education Model for CA-RP(Cognitive Apprenticeship-Based Research Paper) to Improve the Research Capabilities for Majors Students of Radiological Technology (방사선 전공학생의 연구역량 증진을 위한 인지적 도제기반 논문작성 교육 모형 개발)

  • Park, Hoon-Hee;Chung, Hyun-Suk;Lee, Yun-Hee;Kim, Hyun-Soo;Kang, Byung-Sam;Son, Jin-Hyun;Min, Jung-Hwan;Lyu, Kwang-Yeul
    • Journal of radiological science and technology
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    • v.36 no.2
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    • pp.99-110
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    • 2013
  • In the medical field, the necessity of education growth for the professional Radiation Technologists has been emphasized to become experts on radiation and the radiation field is important of the society. Also, in hospitals and companies, important on thesis is getting higher in order to active and cope with rapidly changing internal and external environment and a more in-depth expert training, the necessity of new teaching and learning model that can cope with changes in a more proactive has become. Thesis writing classes brought limits to the in-depth learning as to start a semester and rely on only specific programs besides, inevitable on passive participation. In addition, it does not have a variety opportunity to present, an actual opportunity that can be written and discussed does not provide much caused by instructor-led classes. As well as, it has had a direct impact on the quality of the thesis, furthermore, having the opportunity to participate in various conferences showed the limitations. In order to solve these problems, in this study, writing thesis has organized training operations as a consistent gradual deepening of learning, at the same time, the operational idea was proposed based on the connectivity integrated operating and effective training program & instructional tool for improving the ability to perform the written actual thesis. The development of teaching and learning model consisted of 4 system modeling, scaffolding, articulation, exploration. Depending on the nature of the course, consisting team following the personal interest and the topic allow for connection subject, based on this, promote research capacity through a step-by-step evaluation and feedback and, fundamentally strengthen problem-solving skills through the journal studies, help not only solving the real-time problem by taking wiki-space but also efficient use of time, increase the quality of the thesis by activating cooperation through mentoring, as a result, it was to promote a positive partnership with the academic. Support system in three stages planning subject, progress & writing, writing thesis & presentation and based on cognitive apprenticeship. The ongoing Coaching and Reflection of professor and expert was applied in order to maintain these activities smoothly. The results of this study will introduce actively, voluntarily and substantially join to learners, by doing so, culture the enhancement of creativity, originality and the ability to co-work and by enhance the expertise of based-knowledge, it is considered to be help to improve the comprehensive ability.

Beauty Shop Workers' Views of Job (미용사의 직무만족도와 직업관)

  • Oh, Ai-Ja;Nam, Chul-Hyun
    • The Journal of Korean Society for School & Community Health Education
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    • v.2 no.1
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    • pp.67-84
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    • 2001
  • This study was conducted to examine beauty shop workers' views of job. Data were collected from the workers in Seoul, Daegu, Pohang, Junjoo, and Kimhae from June 1, 2000 to August 31, 2000. The results of this study are summarized as follows. 1. According to general characteristics of the subjects, 28,7% of them was female; 94.2% 'specialized in hair'; 46.4% 'below twenty nine years old'; 47.1% 'married'; 59.7% 'highschool graduate'; 33.9% 'worked for below three years'; 28.5% 'monthly income of five hundred thousand to nine hundred ninety thousand won'; 62.3% 'working for above twelve hours a day' ; 41.0% 'above five workers' ; 40.6% 'working in city'. 2. 54.8% of the respondents thought that they were in good health. 76.3% of them smoked and 54.8% drank. 62.8% of them did not exercise and 78.7% was under stress. 61.5% responded that they chose the job because of its possibility of professional vocation. 91.0% of them obtained the beauty skill from beauty schools. 3. Among the factors which influenced job satisfaction, 'stable job and life security' was highest(43.9%), while 'interest in the job and amount of pay' was lowest(3.2%). 'Personal ability and use of originality' was 19.4% and 'harmonious relationship with fellow workers' was 18.1%. 'Job environment' was 7.1% and 'harmonious relationship with higher workers' was 4.5%. 4. The level workers' view of job was $113.8{\pm}17.3$ points on the basis of 150 points. On the basis of 75 points, each item showed it points in order of self-development($22.3{\pm}3.8$), service for customers($20.1{\pm}3.1$), vocational mission($15.6{\pm}3.1$), harmony with the others($18.9{\pm}3.5$), working environment($18.6{\pm}3.6$), and working condition($14.3{\pm}5.1$). 5. Among the reasons why they considered leaving the job, 24.0% of them considered it because they could not free time, while 15.4% considered it because undesirable living environment or long distance from home. 15.0% thought it because they could not receive proper treatment as much as they worked and 12.8% thought they overworked. 6. When they move into new working places, they consider such factors as good working environment(24.1%), good place to open their own beauty shops(16.7%), good beauty shop to learn beauty skill(15.6%), chance to have job training(9.5%), and close place from home(9.0%). 7. 40.6% of the respondents wanted to leave the job, while 32.3% of them did not want to leave the job. The intention of leaving the displayed significant difference in the variables of age, working period, monthly income, marital status, the number of workers, location of the shop, rank, and reason of selecting the job. 8. According to the results of a regression analysis of factors which influenced job satisfaction, it was affected significantly by intention of leaving job, the number of workers, health condition, level of stress, and monthly income. The beauty shop workers showed low satisfaction level with working environment, working condition, and working mission, They considered leaving the job because of lack of free time, overwork, poor working environment, improper treatment, etc. Therefore, related professionals and organizations must device adequate measures in order to make them work with pride as creators of beauty.

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Chronic pain control in patients with rheumatoid arthritis (만성통증 환자의 통증 조절)

  • Eun, Young
    • Journal of muscle and joint health
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    • v.2 no.1
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    • pp.17-40
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    • 1995
  • Rheumatoid arthritis is the one of the chronic diseases, one of its major symptoms is a chronic pain. Despite developing medical treatment and surgical techniques, it is suggested that to control the pain is the goal of the treatment. But pain is an inner experience and even those closest to the patient cannot truly observe its progress or share in its suffering. The National Academy of Sciences Institute of Medicine's report on Pain and Disability concluded that there is no objective measure of pain-(exactly) no pain thermometer-nor can there ever be one, because the experience of pain is inseparable from personal perception and social influence such as culture. To explore chronic pain experience is to understand the process and property of the patient's perception of pain through the response to pain, the coping with pain, and the adaptation to pain. Therefore a qualitative study was conducted in order to gain an understanding of pain experience of patients with RA in korea. I used naturalistic inquiry as a research methodology, which had 5 axioms, the first is that realities are multiple, constructed, and holistic, the second is that knower and known are interactive, inseparable, the third is only time and context bound working hypotheses(idiographic statements) are possible, the forth is all entities are in a state of mutual simultaneous shaping, so that it is impossible to distinguish causes from effects and the last is that inquiry is value-bound. Purposive sampling was conducted as a sampling. 20 subjects who experienced pain over 10 years, lived in middle-sized city and big city in Korea, and 17 women and 3 men. The subject's age was from 32 to 62 (average 48.8), all were married, living with their spouse and children, except two-one divorced and the other widow before they became ill. I collected data using In depth structured interview. I had interviews two or three times with each subject, and the interviews were conducted at each subject's home. Each interview lasted about two hours an average. A recording was taken with the consent of the subject. I used inductive data analysis-such as unitizing and categorizing. unitizing is a process of coding, whereby raw data are systematically transformed and aggregated into units. Categorizing is a process wherby previously unitized data are organized into categories that provide descriptive or inferential information about the context or setting from which the units were derived. This process is used constant comparative method. The pain controlling process is composed of behavior of pain control. The behaviors of pain control are rearranging of ADL, hiddening role conflict, balancing treatment, and changing social relation. Rearranging of ADL includes diet management, sleep management, and the adjustment of daily life activities. The subjects try to rearrange their daily activities by modified style of motions, rearranging time span & range of activities, using auxillary facilities, and getting help in order to keep on the pace of daily life. Hiddening role conflict means to reduce conflicts between sick role and their role as a family member. In this process, the subjects use two modes, one is to control the pain complaints, and the other is to internalize the value which is to stay home is good for caring her children and being a good mother. To control pain complaints is done by 'enduring', 'understanding' the other family members, or making them undersood in order to reduce pain. Balancing treatment is composed of two aspects. One is to keep the pain within the endurable level, the other is to keep in touch with medical personnel in order to get the information of treatment and emotional support. Changing social relation is made by information seeking and sharing, formation of mutual support relation, and finally simplification of social relationships. The subjects simplify their social relationships by refraining from relations with someone who makes them physically and psychologically strained. In particular the subjects are apt to avoid contact with in-laws, and the change of relation to in-laws results in lessening the family boundary. In the course of this process, they confront the crisis of family confict result in family dissolution. This crisis is related to the threat of self-existence. Findings from this study contribute to understanding the chronic pain experience. To advance this study, we should compare this result with other cases in different cultural contexts. I think to interpret these results, korean cultural background should be considered. Especially the different family concept, more broader family members and kinship network, and the traditional medical knowledge influences patients' behavior.

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Knowledge Management Strategy of a Franchise Business : The Case of a Paris Baguette Bakery (프랜차이즈 기업의 지식경영 전략 : 파리바게뜨 사례를 중심으로)

  • Cho, Joon-Sang;Kim, Bo-Yong
    • Journal of Distribution Science
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    • v.10 no.6
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    • pp.39-53
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    • 2012
  • It is widely known that knowledge management plays a facilitating role that contributes to upgrading organizational performance. Knowledge management systems (KMS), especially, support the knowledge management process including the sharing, creating, and using of knowledge within a company, and maximize the value of knowledge resources within an organization. Despite this widely held belief, there are few studies that describe how companies actually develop, share, and practice their knowledge. Companies in the domestic small franchise sector, which are in the early stages in terms of knowledge management, need to improve their KMS to manage their franchisees effectively. From this perspective, this study uses a qualitative approach to explore the actual process of knowledge management implementation. This article presents a case study of PB (Paris Baguette) company, which is the first to build a KMS in the franchise industry. The study was able to confirm the following facts through the analysis of target companies. First, the chief executive's support is a critical success factor and this support can increase the participation of organization members. Second, it is important to build a process and culture that actively creates and leverages information in knowledge management activities. The organizational learning culture should be one where the creation, learning, and sharing of new knowledge is developed continuously. Third, a horizontal network organization is needed in order to make relationships within the organization more close-knit. Fourth, in order to connect the diverse processes such as knowledge acquisition, storage, and utilization of knowledge management activities, information technology (IT) capabilities are essential. Indeed, IT can be a powerful tool for improving the quality of work and maximizing the spread and use of knowledge. However, during the construction of an intranet based KMS, research is required to ensure that the most efficient system is implemented. Finally, proper evaluation and compensation are important success factors. In order to develop knowledge workers, an appropriate program of promotion and compensation should be established. Also, building members' confidence in the benefits of knowledge management should be an ongoing activity. The company developed its original KMS to achieve a flexible and proactive organization, and a new KMS to improve organizational and personal capabilities. The PB case shows that there are differences between participants perceptions and actual performance in managing knowledge; that knowledge management is not a matter of formality but a paradigm that assures the sharing of knowledge; and that IT boosts communication skills, thus creating a mutual relationship to enhance the flow of knowledge and information between people. Knowledge management for building organizational capabilities can be successful when considering its focus and ways to increase its acceptance. This study suggests guidelines for major factors that corporate executives of domestic franchises should consider to improve knowledge management and the higher operating activities that can be used.

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