Effictive knowledge management to the organization

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Nowadays in the world, more and more society is growing and it towards a knowledge economy. Many countries have developed the strategies and set goals for the knowledge economy. Consequently, the knowledge management is important in the organization and it usually has value. This approach can be realized in the organization. Most of applications about knowledge management are used for the solutions to problems such as customers, employees and mangers in the organization. The life has too many firms and complex knowledge. They must compete in a complex and challenging context that is being changed by many factors such as globalization, technological development and use of knowledge. We can understand the knowledge by a simple. Besides, knowledge is seen as strategy with the potential to be a source of competitive advantage for an organization. This essay will focus on how and why Knowledge Management (KM) can be creates and brings competitive advantages to the company

Main content

Understand the nature of information and knowledge

Knowledge is database, information, argument and different skills that are achieved by the organization or individual through experience in the society or education. In other words, knowledge is knowledge that people understand and know. In the organizations, knowledge is often connected data system, the daily tasks, past activities and standard evaluations…. The information about the customers is combined with information market situation, competitors and experience to bring out the appropriate policies about the market, price…that will become the knowledge of organization. Knowledge, experience, skills of each individual that they have learnt from the university, the market and the organization where they have experienced… they also become the knowledge of organization that they are contributing. However, the information always exists independently of human thinking. After the human received information, information processing, caught and researched, the information will have become knowledge of one's own. For an example: in Tinh Van technology join stock company, the company had some problems about leaving of important human resources. Although, their products were good and those products were managed, inherited and developed in a perfect way but it was not important asset of the company. An important thing was the leave of employees because they took knowledge with them. Besides that, knowledge represents the truth and creates a reliable basis for actions. Knowledge is treasure and skills that are created by human's intelligence. Knowledge has 2 forms: tacit knowledge and explicit knowledge. Tacit and explicit knowledge has 4 processes:


socialization, externalization, internalization and combination. In some countries such as Vietnam, technology innovation, improve product quality is considered the main way to improve competitiveness in the process of integration into the global economy. But at the present time, the people identify knowledge management that is important for the economy as well as for organization. Knowledge management is the art or science data sets and organized thanks to the ability to identify, understand relationships and patterns to turn it into useful knowledge information and value can be easily accessed. Besides that, knowledge management is the process of identification system, receive and transfer the information and knowledge that people can use to create, compete and perfect. Knowledge management is an area closely related to the theory and reality. It is not an information technology; IT is only factor support but it is very important in knowledge management. However, KM focuses on the human. For an example: in 1978, Honda wanted to design new forms. Leaders of Honda entrusted the young engineers with a responsibility. They commanded their products which were designed basic, not expensive but also not cheap. New slogan at Honda is automobile revolution and the question for group to discuss: "if car is a living entity, how will it evolve?" Idea of group: revolutionary tendency is the car which has to overcome the relationship people - traditional car, it must be shorter and higher, sphere will have more seats inside and save more energy. Finally is "tall boy" car. From an old idea about model car through sharing, receiving, selecting, evaluating and innovate knowledge, the engineers of Honda produced new models.

How effective knowledge management can bring competitive advantages

In the present time, the new technologies always appear in the company, it helps the company to overcome the competitors of company. But, after the long time, those technologies popularized or other companies have some instrument similar, and then competitive factor will be lost. Nowadays, the technology always is innovated and improved in the short time; thus, we cannot assert the technology which is competitive factor in the long time. However, the technology has two main benefits such as saving data and transferring data. We can build a saving system and distribute the effective data. The technology became factor which helps to save, distribute and exchange the effective knowledge. The company can combine the technology with knowledge management in an effective way, it will help the company to create new competitive factor and raise the ability of competition in the long time. Besides that, human resources creates different in some companies because human resources is a basis of competitive advantage in the knowledge economy. Because human resources will bring knowledge to the company to improve the products, develop the company and compete with other companies in the market. The small companies cannot compete with the large companies because they are not enough human resource to research and develop the products. The small companies have to create good conditions for the employees, good working environment in the


company, make impression with customers, exploit the competence, find out and keep the talent in the company. But they want to do those things; they must have knowledge management system. Because it always helps leader or managers in the company to manage knowledge, manage employees, create relationship with customers, employees and partners. For an example: Softline Group is an international group about software, technical assistance, train and consultant about information technology. Group combined technology with knowledge management for development in the world. They always create good conditions for talent and encourage them to share and continue to develop the useful knowledge. Therefore, Softline Group had 58 representative offices throughout Russian Federation and 17 nations in the world. Group cooperated with over 50 thousands entrepreneurs

Appreciate the importance of knowledge management in the organization

Managers are very important in the organization because they can help the organization to develop. However, they have to know to apply the achievement of knowledge management, they can develop and manage knowledge to innovate and create new ideas for the organization. Knowledge management is useful in the organization. Knowledge management helps managers to work effectively, manage the employees in the close way. Besides, they can give a lucid decision, resolve the problems quickly and satisfy the customers' requirement. In addition, it has many applications such as innovate and create the ideas for strategy and potential in the company; help them to receive the knowledge from employees or other people; transfer their knowledge to employees who will have more knowledge and they can approach works by easily and effectively; learn, share and help together about knowledge for improving the company; manage and save the knowledge from the employees who are working at the company or left and then the managers will continue to develop that knowledge; to improve the quality of products or services and decide the problems which involve the company. Example: A company has developed in the world but good employee who leaves and brings out the knowledge. A company has some problems when it lost talent to develop. Although a company has some problems but managers and employees applied knowledge management to continue to develop knowledge, innovate and create new ideas for strategy and potential in the company

Understand leadership and the skills required to effectively implement knowledge management processes in the workplace

Skill is an important factor in field of management. A good manager can be a good leader and reverse. Example: captain of a ship who is a leader of ship. If the captain can lead well a ship, that captain will lead a ship to overcome river for backing wharf safely. However, the captains can lead well a ship, they must have much knowledge, experience, intelligence and especially they must know to manage


closely. Besides, in the organization, leader has to think that knowledge is a big asset; thus they will protect, keep and invest the knowledge which becomes a lot of big asset. Moreover, awareness is in culture of company and in human resource of the organization. Knowledge management system is not a project. It is a process to accumulate knowledge of many individual. Consequently, knowledge management system must be built from the start. It the organizations do not build, they can become the empty system, poor and fail in the market. Besides, knowledge of person is not transferred easily to other people but they can transfer that knowledge through documents, exchange and so on. Thus, leaders need to encourage the employees who have much experience to exchange, share and lead the employees who have little experience or not have. Besides, the organizations can use the knowledge of other organizations but they have to protect their own knowledge. Leaders have to update new information and learn experience from the job and other organizations. Human can create new knowledge and use that knowledge to continue for creating new knowledge. The organization needs to have a policy for recruiting personnel, create working conditions for them and employees who have experience. However, leaders need to attach special importance to employees, create the comfortable working conditions for them and encourage them to share and exchange their knowledge with employees in the organization. If leaders do not attach special importance to employees, those employees will leave and bring their knowledge and then the organization will lose talented person and have a big gap about knowledge. In addition, leadership skills, planning skills, communication skills, resolve the problems are used successfully implemented knowledge management

Try to find ex of each stage of KM life cycle in the company. Any stage is missing or weak

Wiig identifies the major purpose of KM as an effort. Wiig's cycle addresses how knowledge is built and used as individuals or organizations. This cycle has four major steps such as building knowledge, holding knowledge, pooling knowledge and applying knowledge. Although, the steps are independent but they are also possible to cycle back to repeat functions and activities. Human learns knowledge from personal experience, education, media because they want to build knowledge. When they built knowledge, they will hold knowledge by themselves or they write books or documents. Holding knowledge includes remembering, accumulating and embedding. After they held knowledge, they will create KM system to coordinate, share, access and retrieve knowledge. Those things are called pooling knowledge. Organization may pool knowledge in variety of ways. After they shared or reconstructed knowledge to employees, all of people will apply knowledge in the organization. When the people finished four steps, they will come back first step to have good knowledge. For an example: Coca-Cola company. The company used the Wiig cycle to develop and compete with other soft-drink companies. Coca-Cola


Company learnt and researched knowledge from the life, document and experience. When they had knowledge, they held knowledge and continue to develop knowledge by themselves. Coca-Cola Company builds KM system to share knowledge, manage employees, resolves problems and so on. The employees of Coca-Cola Company in the world used KM system and received knowledge from other employees or leadership


Knowledge is important toward the human as business. If you don't have knowledge, you cannot do anything or realize responsibility which the company required. Therefore, we need to build the knowledge management system to manage knowledge, innovate and continue to develop knowledge. Besides that, knowledge management creates competitive advantages for the company to compete with other companies and it helps managers or leaders use the achievement of knowledge management for development.