A Rearch on Knowledge Management Information Technology of Securities Firms Industry

Individuals take up a big percentage of investors in Taiwan's stock market and most of them trade for short-term profits. To meet the needs of short-term traders, brokerage companies invest most of their budget on trading systems. This approach encourages investors remain their focus on short-term profits in spite of higher risk involved. Many brokerage companies spent lots of money to import overseas trading systems, which unfortunately do not provide them a first comer's competitive edge in functionality and content, as competitors are able to develop similar systems. Keen competition exists among information system providers. New players set off a price war which erodes the profit margin of old players who are wondering how to remain profitable.

This research first organizes publications in knowledge management and then describes the development of information technology packages in order to establish a relationship between knowledge management and information technology. Later in the research, we propose a knowledge management system for brokerage companies which will not only accommodate the trading driven characteristics but also allow investors to participate in knowledge management. This system will guide investors to become more rational in trading and add value in customer service to financial service providers. At last, we understand a tool alone does not work well; therefore, we supplement it with real case studies of brokerage companies who have introduced knowledge management. We hope that this research can be beneficial to brokerage companies in launching their knowledge management and the problems identified above can be improved as a result.