The business world is increasingly becoming competitive with new approaches to businesses being developed in different industries. An organisation attains its corporate objectives by proper management of its human resources and building of orchestrate teams.
To nature invention and innovation, an organisation must develop strategies that grow and preserve organisational knowledge(Meinolf, Ariane, John and Ikujiro, 2003). This paper discusses how organisational knowledge contributes to value creation; it will use real life cases to discuss the topic.
Value creation and organisational knowledge
Knowledge management assists a company have a pool of knowledge of a certain industry; the knowledge is vested in its databases and employees. With past trends in business, it is very easy to predict current trends and future business trends. Current business management strategies and mechanisms are targeted at increasing the value of their business.
Business value can be seen from two aspects, the financial value in the form of returns and the value of commodities and goods produced. With a pool of knowledge, a company is able to develop strategies that can lead to effective and competitive business, they will be able to beat their competitors and the result is an increased business income.
For example, Toyota Motor Corporation supposed General Motors’ in 2008 to be the world largest motor vehicle supplier because of customer responsive strategies developed after analysing its pool of wisdom and using research and development approaches (Meinolf, Ariane, John and Ikujiro, 2003).
Product value is dependent with the target customer; with a pool of knowledge, a company will understand the expectation that its customers have and then aim at developing more customer-oriented products.
In the late 1990’s Apple Inc was facing reduced business, the company revival is attributed to tapping of the knowledge of its former founder and manager Steve Jobs. Steve understood the market so well that in a span of three years, he revived the company; currently the company is the largest electronic company in sales volume in the world.
The following diagram shows the process for organisational knowledge management:
|This major process||Includes these activities|
|Gathering||Data entry, OCR and scanning, Voice input, Pulling information from various sources and Searching for information to include|
|Organizing||Cataloguing, Indexing, Filtering and Linking|
|Refining||Contextualizing, Collaborating, Compacting, Projecting and Mining|
|Disseminating||Flow, Sharing, Alert and Push|
(Chong, Keng-Boon, Binshan and Pei-Lee, 2010).
How can the processes and systems of the organisations be effectively utilized to support the sharing and creating of knowledge
An organisation can be defined as a coordination of different processes to attain a certain goal, corporate goal. Management can take deliberate measures to ensure that it maintains and grows its knowledge asset. Globalisation and competition has resulted for companies to look for intellectual assets management over and above traditional business assets like physical and human resource.
Knowledge can be tapped in two major ways, information storage and the use of human resources as tools of information maintenance in an organisation. Knowledge management has been facilitated by advanced in technology with homemade and commercial tools used to produce and distribute information within and without a business.
These tools include internet, intranet, CRMs and advance intellectual data management tools. Business intelligence tools are also considered as knowledge management tools (Singh & Soltani, 2010).
The adoption of efficient knowledge management in staffs and in business intelligence tools has been credited as the move that assisted Apple Inc to innovate new products that have driven the company’s sales (Lingling, Jun, Yong and Xiaohui, 2009).
Effective organisation knowledge management is managerial tool that offers organisations competitive advantage information is power thus it is crucial for a company to have strategic information management strategies. When well managed it adds value to a company through strategic and effective business decisions.
Chong, A., Keng-Boon, O., Binshan, L., & Pei-Lee, T. ,2010. TQM, knowledge management and collaborative commerce adoption: A literature review and research framework. Total Quality Management & Business Excellence, 21(5), Pp. 457-473.
Lingling, Z., Jun, L., Yong, S., & Xiaohui, L. ,2009. Foundations of intelligent knowledge management. Human Systems Management, 28(4),Pp. 145-161.
Meinolf, D., Ariane, A. John, C. and Ikujiro, N.,2003. Handbook of Organisational Learning and Knowledge. Oxford: Oxford University Press.