This paper investigates the impact of knowledge based information systems (KBIS) on commercial organisations. A questionnaire and interview format was used to gather information from eleven commercial organisations developing KBIS. Three prime areas were considered, namely knowledge acquisition, knowledge representation, and KBIS development methodologies. For each of these areas, the normative position as expressed in the literature is presented and then compared to the survey findings. Problems involved in the development of KBIS are mentioned as well as developers' perceptions of the future directions for KBIS within their organisations. Additional information on each organisation is presented in an Appendix in order to provide a richer picture and background to the study. The main preliminary findings are that KBIS have made an impact on organisations in Australia who are willing to make a considerable investment of resources in this new venture. While most organisations are treating this technology as research and development, they believe that the technology will be absorbed into their mainstream information systems in the future. These systems are seen as providing a competitive edge to those organisations willing to make the investment.
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