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Effective knowledge management systems are tied to the company’s business goals and lead to shared intelligence, better performance, competitive advantage, or high levels of innovation.
Knowledge management answers the questions: How can the most important corporate asset be managed – intellectual capital, How IC can release other types of capital, What are the new principles and methods of management.
Also, knowledge management is a mix of different disciplines, diverse approaches, and concepts. Knowledge management is important for any organization. Even the British management certification organization BVOP (Business Value-Oriented Principles ltd) includes knowledge sharing as part of the responsibilities of project managers. Reference: https://bvop.org/learn/about-business-value-oriented-principles/
Knowledge management includes individual aspects of personnel management, innovation, and communication management, as well as the use of new technologies in management.
Before 1987 it was found under the name of reengineering, training organizations, human capital, and others. It allows looking in a new way at some areas of management.
Integrates new management, marketing, and information technologies. This is a synergetic (joint action of several organizations) relationship between technological and behavioral aspects in management.
The connection between explicit and implicit knowledge.
Knowledge management is a strategy that transforms all intellectual assets into higher productivity and efficiency, new value, and increased competitiveness.
This is the most complete storage, use, and multiplication of staff knowledge. Reference: “What are Information and Knowledge?”, https://managementwire.wordpress.com/2021/07/20/what-are-information-and-knowledge/
This is not an autonomous, not an independent activity. It is not a new paradigm, but a rationalization of known management technologies and re-applied in modern conditions.
In other words, creating new and more powerful competitive advantages. It is the art of creating value from intangible assets.
The most important part of knowledge management is the technologies for dissemination, adaptation, and use of implicit knowledge.
There is a transition from focusing on internal factors to external ones, which receive priority – marketing, customer service, benchmarking, exchange of information with external contractors (contracting parties).
What is knowledge management?
Knowledge management includes:
- Stimulating the growth of knowledge; selection and accumulation of significant information from external sources; storage, ranking, transformation, providing access to them;
- Dissemination and exchange of knowledge inside and outside the organization; use of knowledge in business processes, especially when making decisions;
- Transformation of knowledge into products, services, documents, databases; assessment of the knowledge, measurement, and use of intangible assets of the organization; knowledge protection.
- This is works with each type of intellectual capital separately and with all its types (human, organizational, consumer) simultaneously.
- Knowledge management transforms knowledge into the practice of the organization; forms and develops knowledge for consumers (through databases, user profiles; sales support systems).
- Knowledge is power, but today it is moving to the consumer. It affects producers and sellers.
- Also, knowledge management forms and uses the intellectual capacity of the organization increases the role and importance of intangible assets, disseminates research results.
- Additionally, Knowledge management creates conditions for acquiring new knowledge and implementing innovations, forms an innovative climate.
- Forms for extracting implicit knowledge: training, coaching, rotation, active use of information by users, user databases, and feedback system;
Individual competence is increased by: creating small creative groups; the team contributes to the transition of individual competence into collective knowledge and skills; interdisciplinary research – such groups formalize knowledge and capitalize on talent because here the strict individuality is lost.
Thus, human capital is transformed into an organizational, and this implies a structure that allows the user to connect productively with staff. Reference: “Information and knowledge”, https://businessprogrammanagement.wordpress.com/2021/07/20/information-and-knowledge/
When interacting with the physical, intellectual capital enhances the effect of its application.
The process of knowledge management
The process of knowledge management includes management of intellectual capital, creation of a learning organization, application of information technology, benchmarking – use of leading experience, team building, and teamwork.
Conditions for successful knowledge management are good technological infrastructure, allowing the transfer and dissemination of knowledge, high organizational culture – allowing the transfer of knowledge between team members, continuous staff training;
Benefits of knowledge management
Benefits of knowledge management are faster meets customer needs and does not allow them to look for the same in the competitor, faster transformation of innovations into products, cooperation of intellectual assets of the competitor, accelerating the transfer of knowledge and the formation of habits among staff, savings at the expense of once already found solutions.
Knowledge management models
The human mind has two modes of cognition – rational (which is associated with science) and intuitive (which is associated with religion).
The first is widespread in Europe and America, and the second has always been preferred in the East.
This model is characterized by direct knowledge management and is the result of the “individualistic” type of development of the American economy.
Therefore, social integration, including that within business organizations, is carried out not based on various traditional values, but the basis of a clear account of the economic interests of the individual.
Another feature of American practice is the multicultural nature of American society.
The beginning of knowledge management is set with the ideas of Taylorism.
Nowadays, the so-called “Partner type” management. At the end of the 1990s, ABC-ABM (Activity-based Costing-Activity based Management) was introduced, which in free translation sounds like “Management based on cost and profit per unit of activity”.
Thus a leadership style of management is formed, known as “coaching”. This is a style not of command, but of support of employees, partnership in achieving common goals equally important for both the manager and employees.
The emphasis here is on measuring knowledge. In the EU area, they also rely on the economic interest in the action of integrating the associates because of achieving the goals of the organization. But here they also try to emphasize the sharing of common values.
The fight against the current crisis and the need for globalization requires the search for new ways, progressive forms of governance of the organization.
The attitude of the Japanese to knowledge is very different from that of Europeans and Americans. For them, it is not only data and information that can be entered into the computer, but also an emotional background, support of values, conjectures, intuition.
At the same time, the aim is for every worker to be involved in this process, with the emphasis on creating new, above all innovative knowledge. Here some forms of knowledge management are a natural process, part of the standard production activity. The role of the middle manager is serious.
In Japan, knowledge is integrated into human character. They seek to form a person of action, observing certain principles and patterns of behavior.
Being a man of action is more important to them than having a lot of different obvious knowledge. For them, the experience gained as a result of specific actions is much more important.
Therefore, they practice learning by mastering habits and skills with the help of a Master. You become a Master when body and soul merge into one.
They accept that the higher reality cannot be the object of reflection. It cannot be adequately described in words because it is beyond our feelings and intellect, which give rise to words and concepts.
At this stage, it is non-transferable knowledge. The main goal of the Japanese model is to activate the intuitive consciousness.
The beginning of the Japanese model of development was set by Emperor Meiji (1868 – 1912), who took power and gave “Five solemn oaths”.
“To seek the best knowledge from all over the world to strengthen the power of the Emperor” is the fifth and final principle of those adopted at the beginning of his reign.
Today the main ideologues are Prof. I. Nonaka, who in 1991 published the article The Knowledge-Creating Company through which he introduced the term tacit knowledge, and his colleague Hirotaki Takeuchi, with whom in 1995 they published The Knowledge-Creating Company: How Japanese Companies the Dynamics of Innovation, where they launch the idea of a knowledge-creating company and view it as its main resource.
The creation of knowledge takes place on three levels – individual, group, and organizational.
Forms of the interaction of knowledge: between formalized and informal knowledge and between the individual and the organization.
On this basis, four main processes of knowledge transformation are created: externalization – from informal to formalized; combination – from formalized to formalized; internalization – from formalized to informalized; socialization – from informal to informal. Together, they are, in fact, the process of creating knowledge. This is the general model for creating knowledge.
The creation of the knowledge of the organization is a result of the immediately gained experience and trial and error, as far as it is intellectual modeling and perception of the new.
Organizational knowledge is the ability of the organization as a whole to create new knowledge, disseminate it within the organization, and invest it in products, services, and systems.
The creation of Organizational Knowledge takes place in a spiral and many times is realized, but at different levels, the interaction between explicit and implicit knowledge.
For them, the fundamental and universal component of any organization is human knowledge.
For Japan, the creation of knowledge in the organization is the most important source of international competitiveness.
Through his knowledge, the individual interacts with the organization.