The Competitive Advantages Of Effective Knowledge Management Commerce Essay

The Competitive Advantages Of Effective Knowledge Management Commerce EssayToday, the forthcoming and the value of a alliance depends on fork over the in the raw product and service quickly and timely in order to meet the needs that ever change in the market. Thus, I believe that knowledge is the to a greater extent importance factor than land or capitals to create a competitive advantage for enterprises. And now, this endeavor will dispute to a greater extent about the value of managing knowledge and some competitive advantages that goat be created through knowledge vigilance in the company. hence, I would like to discuss about the In addition, this essay is in addition talk about the leadership and managerial skills in the system by implementing prosperedly KM. treatment ABOUT THE KNOWLEDGE counseling information, Information, KnowledgeNowadays, we be living in an age of information that we female genitalia find easy through television, internet, magazines etc. pro vided not all(a) information is reliable. Transforming information into knowledge within the organization is an advantage. However, not all managers control able to do it. Thus, the first thing I want to discuss about the difference between data, information and knowledge in order to transform stabbing data into meaningful information. Data is the raw material. It flush toilet be a set of discrete facts and exist in any form such as number, symbols, imaging etc. Data represents unorganised and unprocessed facts. Data is transformed into information by adding value through context, sorting, calculating, analysis and evaluation. Information rotter be considered as a processed data. Data and information be everywhere but knowledge is hard to get.You need information in order to get knowledge. However, knowledge is not information. Information is solely becomes knowledge when you use up able to realize and understand specific purpose of it. Knowledge is usually come from learning , conceive ofing or taking experiences in a particular area.Knowledge has two types Explicit knowledge and tacit knowledge. Explicit knowledge is the visible knowledge. You can find them easily through book, documents, reports, films, magazines, etc. The stated knowledge is easily transferable. In contrast, tacit knowledge is the knowledge that put in your mind. Simply, tacit knowledge is the personal experience, skills and hard to transferable. For example Each pastry dough cook can made Tiramisu cake with different flavors, although all of them use with the same Tiramisu Cake recipe. Some cake are delicious, some cake are bad. Because skilled pastry cook has not shown own experiences in recipe. May be, they can add some special ingredients to make their cakes with good flavorful. This is the tacit knowledge. They did not cover their experiences as well as knowledge for everyone. I think this is the importance aspect in the organization. The managers must look for ways to empl oyees can fortune tacit knowledge together in a particular sector. Thats also the objective of knowledge management.Knowledge managementKnowledge Management (KM) can be defined as the logical process that helps people to use knowledge effectively and efficiently. Knowledge management is the process the company uses to measure the value of the reason value of to each one employee in the company. Moreover, it is the process utilise to evaluate and track key metrics associated with the organization of intellectual property can be used to create better services, products and value to shareholders of the corporation. There are many different knowledge management life hertzs. They are made by Wiig (Wiig Knoeldge management calendar method 1993), Zack (Zack Knowledge Management Cycle 1996), Nickols (Nickols Knowledge Management Cycle 1999), McElroy (McElroy Knowledge Management Cycle 1999), Rollet (Rollet Knowledge Management Cycle 2003), Bukowitz Williams (BW Knowledge management cy cle 20003). Actually, they arouse some common steps and meaning. However, each cycle has its own characteristic. Look at the table below for comparison.Nickols (1999)Wigg (1993)McElroy (1999)Rollet (2003)Bukowitz Williams (2003)Zack(1996)AcquisitionCreationIndividual and sort learningPlanningGetAcquisitionOrganizationSourcingKnowledge claim validationCreationUseRefinementSpecializationComplicationInformation acquisitionIntegratingLearnDistributionStore/ accessTransformationKnowledge validationOrganizingContributePresentationRetrieveDisseminationKnowledge IntegrationTransferring respectDistributionApplicationMaintainingBuild/ sustainConservationValue realizationAssessingDivestSource Adapted from Kimiz Dalkir, Knowledge Management in Theory and usage (Oxford Elsevier Butterworth, 2005), pp. 27.Competitive advantagesAlthough there are many different perspectives on knowledge management, however the general objective of knowledge management is look for ways to employees share and le arn knowledge as well as experiences together. Thats not only help employees improve the expertise knowledge, but also the knowledge management can create the competitive advantages and enhance value for enterprises.As you know, human resource is the valuable asset in organization. If the organization can use this resource effectively, organization will become very inviolable. Knowledge management can give all the employees in organization many opportunities to show ideas and innovation. Therefore, organization can have more opportunities and advantages than competitors. The employees can share expertise knowledge, experiences or passion together. Thats also make all of the employees in organization more closer and understandeach otherbetterIn addition, transforming from tacit knowledge into explicit knowledge is not only help improve expertise knowledge of employees, but also help the organization have enough capable of responding promptly to the change in personnel. And now, I wo uld like to give you a reality example as well as an incident by not applying knowledge management in organization. It occurred in my familys restaurant in three years ago. When my manager intends to open a restaurant of his own, he has left the restaurant. The important thing, he has taken away all the experience, the trade secret and a lot of good employees and the relationships. Then he became a competitor with my restaurant. During that period, my restaurant encountered a lot of trouble and business performance decreased seriously. Another example, at Tam Viet Group in 2007, a vice president has left the company and he established an own company to direct competitive with the Tam Viet. By applying knowledge management, all these knowledge such as customer relationships, unfinished projects, etc. were acquired and stored by all other employees. Therefore, Tam Vietnamese were not affected.Additionally, Knowledge management can also give to the enterprise with advanced adaptabili ty in the rapidly changing marketplace. The competitors are always updates their products and services better to meet the demand of customer. Therefore, most of the successful enterprises are always catch information and transfer them rapidly. By applying the knowledge management, the enterprises can easily compete with other competitors. The organization can launch new products with the higher quality than competitors at the same cost. The employees can save time through making decision or solving the problems quickly and exactly.KNOWLEDGE MANAGEMENT ON SUPPORTING MANAGERIAL PRACTICESSimilar to those competitive advantages that I mentioned above, knowledge management can help manager so much in practices. Firstly, the employees have a freely environment to performance themselves. The employees can share and learn knowledge, experiences, idea together. Therefore, the manager can collects and exploits tacit knowledge or innovation in order to enhance competitor advantage for the orga nization. Additionally, KM can help manager make decision timely and exactly by capturing,analyzingandconversingof information logically.In addition, the manager will have enough response to device with changing of the marketplace as well as the human resources.Leadership and managerial skillsA manager needs to have a good leadership to change products, systems and people efficiency. A good leader must have capacity to cannonball along the process to decide a matter and to make process treat effectively and quickly. It is a difficult problem. A good manager should have more diverse skills in order to have enough capable of handling all of problems in the organization.The first skill is the information technology (IT) skill. I think this is the key For example in my first internship at ACB bank, I can get information of customer trading history via CIC.org.vn website. You will save more time for get information of customer. Thats progress of technology. Thats also the reason the ma nager should have a good IT skill to support the management easier and faster. In the high technology age, a good manager should know to take advantage of technology to support for the management and sharing knowledge in the organization. If so, companies will have more competitive advantages than competitors.In addition, a manager should also build a trust and respect relationship with employees. listening skill is also important. As a manager, you should build an open structure. I mean that you should gap of discrimination between superiors and subordinates. The subordinate can easily meet and express freely their opinions to you. Listening will help you clearly understand about your staffs in order to make decisions fairer and more accurate.Lets change the last skill that I want to discuss is the communication skill. In my opinion, communication is the most difficult and complicates skill of the manager. According to John Quincy Adams If your actions inspire others to dream more , learn more, do more and become more, you are a leader. Its a great statement. A manager has to know create need for employees in order to they have enthusiasm and try their best to work. The motivation is not only based on the high salary, but also based on the workplace. A manager can adapts communities of practice (COP) program in the company. COP is considered as a group of people hold together by sharing the knowledge, experiences, ideas or something like that. COP program can provide a place for employees in particular areas or require employees work in team to share methods or tacit knowledge and mutual support. Thus, the employees can improve their knowledge learn more about the experiences and more closer. Besides that, manager should also consider one of the challenges of communication, the different cultures. Especially is the multinational company. this is a new step to the understanding by employing individuals from various backgrounds, cultures and lifestyles. Percep tual, Cultural and language barriers are a challenge to be overcome when a company work in the global orientated environment. It affects team spirit, work efficiency, directly affect the business situation of the company. Moreover, it is the cause of lack of teamwork, morale low. The different culture can affect a company and its success in variety of ways.CONCLUTIONIn conclusion, the knowledge management is a new way to develop your company in the future. From the very beginning, the essay discussed some basic concept of the knowledge management for you. As you can see the next part talked about the competitive advantages that the company can take from KM. There are so many, for example using human resource effectively, transferring from tacit knowledge to deficit knowledge, etc. Moreover, the knowledge management will help the managers in many ways. And, of course, the managers have to learn and develop his/her skills to managing knowledge. There are some basic skills that a manag er should have are listening skills, IT skills, etc. In the knowledge economy, knowledge management has more impacts on organizations. Applying knowledge management is considered as a key for success organization. The strong organization always has a good knowledge management.R rng trong nn kinh t hin i hng tri thc, vai tr ca qun l tri th l v cng quan trng. Nu khng thc c iu ny mt cch ng n, nguy c tn tht tri thc rt d xy ra v mang li nhng thit hi kh c th tnh ton ht. Tri thc cng nh ngun nhn lc l yu t sng cn cho s tn ti ca mi t chc. 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