Importance Of Knowledge Management As A Competitive Advantage

In order to manage knowledge successfully, it is essential to clarify the essence of knowledge before identifying the importance of knowledge management. The perception of knowledge has been varied broadly; however, one of the generally accepted defintion is from Davenport and Prusak (1998). According to their points of view, knowledge is defined as a set of experience and values, it either comes from individuals ' mind or roots in the organisation, which can be found in the documents, routines, practices and norms, and is assumed to flow between individuals through various networks, being used to assess and embody new

This chapter describes what is knowledge management in details as well as what is the factors of implementing knowledge management which are implementing best practices, network expansion, systematic information system infrastructure, good organizational culture, senior management leadership and commitment and trustworthiness of teamwork.

The superior capabilities of knowledge management systems provide an opportunity for the business to engage the most effective components and recognize the importance of communication to make informed, accurate decisions (McGrath, 2001). This system can organize the company’s knowledge resources, knowledge obtaining, organizing, and applying to make a sound routine the will enforce effectiveness (Niu, 2008). The dynamic function of knowledge management to create, capture, and apply knowledge to achieve an organization’s objective will allow them to be more profitable and successful (Zucker, 1986). In addition to increasing profits, the system can be also used to reduce costs and enhance research and development (DeTienne & Jackson, 2001). With all of these advantages, it would be wasteful for a company to not employ knowledge management. As seen in the Discovery Communications, Inc. example, the company can attribute their new productivity levels and increase in ease of securing documents to the knowledge management system that put into place by Carefree Technology. Like Discovery Communications, Inc., knowledge management is so popular today because companies can collect, process and share knowledge to ignite employees ' creativity which in turn will make the business grow. Wenhong and Jianhua (2009) explained the core of knowledge management is to convert company’s knowledge resources into an increased company

While Knowledge Management (KM) is important in any business however, there is no real agreed upon definition. KM is a concept that includes the

In a modernized and globalized world, knowledge creation and synergization of knowledge in an organization is truly crucial. As data and information are readily available, and information communication technology (ICT) has highly advanced, organizations such as B&Q need to understand how knowledge creation can assist to improve internal and external processes and also encourage innovation.

KM Strategy – the strategy of knowledge management must be associated with vision and values

Since the mid-1990s, knowledge management has become increasingly significant for business managers and companies. ‘It is broadly accepted that systematic knowledge management is tightly linked with gaining and sustaining competitive advantage.’ (Bogner & Bansal, 2007, p658-6 as cited in Hislop, 2009, p1) The definition of knowledge management is various because of the wide range of this concept and its complexity (Al-Hawamdeh, 2003). For example, the broad definition provided by McAdam and McCreedy (2000, p155 as cited in Hislop 2009, p53) note that: ‘KM relates to the management of anything classified as knowledge’ Furthermore, Hislop (2009, p59)

Knowledge Management can make a significant difference between ongoing or successful ventures of any organization in a world of accelerating change. Knowledge Management provides the ability to connect and cooperate complex ideas efficiently and can be beneficial even to expand when using strategic alliances. To make Knowledge Management work in an

Call, D. (2005). Knowledge management - not rocket science. Journal of Knowledge Management. (April) p.19-30. [Online]. Available from: http://www.emeraldinsight.com.ezproxy.staffs.ac.uk/doi/abs/10.1108/13673270510590191 [Accessed: 20 November 2016].

Knowledge management often involves isolating and planning intellectual assets within an organization, producing new knowledge for competitive advantages within the organization, making vast amounts of corporate information accessible. Knowledge management can be hard to interpret or explain. How would a nurse or doctor define “health care” succinctly? How would a CEO explain “management”? Each of these areas is very complex, with many sub-areas of specialization. This in turn leads to the question “What is Knowledge Management Strategy & Metrics”?

A technologic approach to Knowledge Management has a much higher initial cost, is inherently more scalable, and can handle a much greater transaction volume than an unassisted knowledge worker. Technology in support of Knowledge Management isn’t necessary or even optimal in every instance. Technologies supportive of Knowledge Management can be applied successfully to organizations of any size; extensive investments in technology are generally practical only in medium-size to large companies. Perhaps the most significant way technology enables the KM process is that it can provide virtual meeting space for communities of practice.

Nevertheless, other researchers propose a more detailed view of factors constituting a knowledge intensive organization. Such includes the employment of a large proportion of employees trading primarily in knowledge, through the creative generation and usage of knowledge to deliver complex and unique products and/or services(Blackler, 1995; Karreman et al., 2002). Physical manifestations of knowledge intensiveness has also been observed in firms, through increased decentralization and flatter organizational structures(Grey and Sturdy,

The ever increasing importance of knowledge in contemporary society calls for a shift in our thinking concerning innovation in business organisations – be it technical innovation, product or process innovation, or strategic or organizational innovation. It raises questions about how organizations process knowledge and, more importantly, how they create new knowledge. Innovation, which is a key form of organisational knowledge creation, cannot be explained sufficiently in terms of information processing or problem solving. Innovation can be better understood as a process in which the organisation creates and defines problems and then actively develops new knowledge to solve them (Nonaka 1994, p. 14). Davenport and Marchand suggest that: “whilst knowledge management does involve information management, beyond that it has two distinctive tasks: to facilitate the creation of new knowledge and to manage the way people share and apply it” (Davenport &

Knowledge is a valuable thing – something we hear all of the time. As Albert Einstein says “the only source of knowledge is experience.” As employees gain experience they gain knowledge, making it a very valuable commodity. In many companies it can be an upwards of one million dollars invested in employees.

Organisational learning can be seen as the goal of knowledge management and may be obtained by good knowledge management strategies and processes. By motivating the creation, dissemination and application of knowledge, KM initiatives pay off by helping the organization embed knowledge into organisational processes so that it can continuously improve its practices and behaviours and pursue the achievement of its goals.