Knowledge Management and its Advantages in Business Research Paper

Knowledge Management and its Advantages in Business - Research Paper Example Knowledge management can either contribute to the corporation or harm it in the attainment of the corporate goals. Thus, in order to assess its effect upon the organization, knowledge management must be considered as one of the business processes of the organization. This way, it can be determined whether the organization is moving closer or farther from the goals and objectives. Measuring KM effectiveness can be attained by measuring its impact upon the other business processes, the goals and benefits. Knowledge is an intangible asset and therefore cannot be observed. In recent times, management of knowledge has gained a lot of focus in organization management. Essentially, it has become one of the most important assets in business today. Knowledge management can be defined as the continual and persistent interaction among players in a system that leads to enhancement and maintenance of the systems knowledge base. The system or organization produces knowledge by gathering and organizing information and integrating the information in its strategies, goals and objectives to ensure adaptability and sustainable growth. In other words, an organization utilizing knowledge management continually compares existing knowledge with new information and adds up its knowledge base to improve on its method of production, strategies in an attempt to ensure that its targets and goals are attained. (Firestone, 1998). In a business setting, knowledge has three main building blocks, namely: a) data wh ich is raw, and without context; b) data is then transformed into information which is usable; and c) lastly, information is interpreted and combined to beget knowledge. There are two main types of knowledge, tacit knowledge and explicit knowledge. Tacit knowledge is derived from experience, and refers to expertise or knowledge that is difficult to transfer orally or through writing. For example, mechanical expertise can, to an extent be classified as tacit because it is acquired in time through experience and practice. On the other hand, explicit knowledge can be documented and taught through classroom learning. Explicit knowledge can easily be shared without necessarily having to practice or train (Marquard, 1996). Statement of the problem In the corporate environment, multiple factors that have emerged in the recent past have continually changed the approach and way of conducting profitable and sustainable businesses globally. Increased competition due to global economic developm ent, liberalization of international markets, advancement in technology and global integration has significantly changed the competitive landscape. Moreover, increased information access and globalization has not only increased consumer choice but also shifted power from producers to consumers. Traditionally, critical success factors such as product leadership, capital

Study Profolio, 4 Topics, 2500 words Essay Example | Topics and Well Written Essays - 2500 words

Study Profolio, 4 Topics, 2500 words - Essay Example Mintzberg’s definition of strategy provides a comprehensive idea of organizational structures that are developed on various business strategies. He also provides a number of examples to verify his position on the inter-relation between these definitions of strategy. The organization is perceived as a collective mind whose behavior is regulated or described by the concept of strategy. Therefore, strategy formation focuses on understanding that collective mind. The issues of strategic management are dealt with more substantial account of first person experience in Rosenbluth. He elaborates management dilemmas with special reference to the hospitality industry, and gives a first hand detail of the management aspects of Rosenbluth Travel. Some of the common factors leading to slow growth of the company are: absence of teamwork, overvalued focus on customer, and so on. Rosenbluth offers a precise solution to undertake the management issues in airlines travel. Rosenbluth advocates the importance of technology in organizations. In the context of corporate travel, he suggests the requirement of computerized reservation system for comfortability and easy operability. Moreover, teamwork building is another important aspect that requires the attention of the management in an organization. Rosenbluth points out three most important components for the growth of an organization. The strategic management of the organization should focus on change, people and technology. In order to gain competitive advantage, the management should take care of the enthusiasm among its employees, the relevance of effective training as well as accessibility to more information. Among these factors, importance of employees should be more focused than that of the customers. Because the enthusiastic support of its staff directs the company to effective use of technology and consequential change(s) in the organization. Use of technology is