Knowledge Management In Theory And Practice Business Essay

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Today, under the economic development as well as science, technology, knowledge becomes very important that human want to have it. Knowledge is the information and documents, the theoretical basis, the different skills that people get from other organizations or individuals through the experience of reality, education or training, knowledge of theory or fact about an issue, and audience can explain it. Knowledge is what was understood, had said in a specific area or overall. Data comprises facts, observation, or conceptions. Data represents raw numbers or assertion, and may therefore be devoid of context, meaning, or intent. Information is a subset of data, only including those data that possess context, relevance, and purpose. Information typically involves the manipulation of raw data to obtain a more meaningful indication of trends or patterns in the data. Knowledge is a very important role in creating all the achievements and progress of society. Knowledge is a precious asset of human; it is cultivate, to learn in the long time. In life and in work, everyone needs to succeed as knowledge. As we know, all matter in this world that is unnatural; it is the product of labor of human knowledge. Knowledge is intangible, we cannot see, hold but knowledge exists everywhere and make people's lives better. Today, human resources have knowledge is valuable property and important decisions of the existence and development of any organization or business. However, we need to know how to manage and use their knowledge at the right time, right place, to promote the strength and success. KM cycle would be useful for business operation.


1: The role of knowledge and knowledge management, how KM brings competitive advantage in the company and how KM helps the managers in the company:

Today, the role of knowledge is important; it becomes a driving force for economic development. Knowledge is a precious treasure that man cannot understand it all. To gain knowledge, each man has gone through many processes, perceptions, sorting, selecting and testing their knowledge but any knowledge we acquire cannot be applied. Much knowledge to help us a lot of work but other knowledge only contribute to improve the knowledge is there. Therefore the acquisition of knowledge as well as selected sections is complex and requires flexibility in how to proceed. Individual or organization owns knowledge means they have more talent and success. Where there is more knowledge, there will be a developed society, civilization and progress. So the countries focus to the development and implementation of national strategies on knowledge. However, as the selection and receives of knowledge, managing knowledge is not easy and having many disadvantages. Because knowledge management is how to generate knowledge, how can the knowledge dissemination, knowledge use, maintain and develop knowledge and transfer information and knowledge that people can use to innovation, competition, and perfect. Which can be satisfied the current needs and having new opportunities. So why do we need knowledge management? Management expected to bring benefits to the enterprise? As we all know, knowledge is divided into two types: tacit knowledge and explicit knowledge. Tacit knowledge, from the Latin tacitare, which refers to something that is very difficult to articulate, to put into words or images, typically highly internalized knowledge such as knowing how to do something or recognizing analogous situation. Explicit knowledge is render visible, usually through transcription into a document or an audio/ visual recording, typically, captured and codified knowledge. In organizations as well as in general society, every individual has the ability, acumen and flexibility in receiving and selecting information, create knowledge differently. Knowledge inside a person's head, only that person can use, no one outside can be operated. When the person who receives knowledge shows to the outside knowledge by writing books or instructions directly ... the new people receive, understand and make it into their knowledge. What will happen if an individual veteran, served as important accumulated a large amount of knowledge leave the company or organization? If the organization does not know and keep the advantage of knowledge of individuals, the organizations will risk a loss of knowledge or knowledge of their donated to other organizations. Therefore, two important types of knowledge should be managed and stored in a scientific and effective. The leaders, managers have ability to manage the knowledge; they will have better strategy, better plan, and solve problems and difficulties quickly, decisively and accurately. A leader has the knowledge and ability to manage knowledge will bring many benefits to the company. With the accumulated knowledge, they will evaluate the effectiveness and competencies of employees, and receive clear communication quality of the work of the organization, creating a new environment, with the work requirements good, but avoid the pressure, heavy. This is one of the most important things to create a good environment for employees to develop the ability to work as well as exciting, high responsibility jobs. It was successful leaders have ability to manage knowledge.

2: Introduction KM life cycle and example

The knowledge management cycle have four major. Four major approaches to knowledge management cycles are presented from Meyer and Zack (1996), Bukowitz and Williams (2000), McElroy (2003), and Wiig (1993). A synthesis of these approaches is then developed as a framework for following the path information takes to become a valuable knowledge asset for a given organization. Now I will analyze the Wiig knowledge management cycle.

Wiig focuses on the three conditions that need to be present for an organization to conduct its business successfully: it must have a business (products/services) and customers; it must be have resources (people, capital, and facilities); and it must have the ability to act. Wiig identifies the major purpose of knowledge management as an effortâ€Â to make the enterprise intelligent-acting by facilitating the creation, cumulation, deployment and use of quality knowledgeâ€Â. There are four major steps in this cycle:

Building knowledge: refers to activities ranging from research to focus groups, surveys, completive intelligence, and data mining applications.

Holding knowledge: consists of remembering, accumulating knowledge in repositories, embedding knowledge in repositories, and archiving knowledge.

Pooling knowledge: consists of coordinating, assembling, and accessing and retrieving knowledge.

Applying knowledge: use established knowledge to perform routine tasks, make standard products, and provide standard services… We need to understand and follow step by step how to manage, develop and host the best knowledge. Each step has its own mission and role to influence directly the formation, development and knowledge management that not only organizations and businesses but also individuals who own and accumulate knowledge also needs to understand and follow the steps above. These steps help us to learn and build knowledge, the source of knowledge we can often receive from where, selectively, to hold, as well as combined use and application of them to life and work in a scientific and effective. For example I am internship in the Star_ stock trading services company, company distribute the famous wines of the world. Through their introduction and the life history of the company, I know the director is a company who are passionate about wine, although company has just established but the accumulation of her knowledge about wine is not short. For those knowledgeable about wine knowledge as well as activities and corporate development, she has had a long time to work in very large wine companies in the HCM city, through which she has received very more knowledge about wine. Through the researching process, she was sorting a variety of knowledge, personal knowledge of an expert, the simple knowledge to introduce the wine to her customers or her own skills in business. This knowledge has been stored in her two forms: tacit and explicit. Tacit knowledge is the raw knowledge and the knowledge she has selected in the researching process for knowledge as she entered the business. This knowledge is invaluable because no one can know and understand exactly and completely. Explicit knowledge is stored as she reports and documents to impart to employees as a way of expressing this knowledge. Expressing knowledge is knowledge management, we have to manage a scientific knowledge, logic, to be clear when communicating, tight, exactly and delivers the best performance. In the process of building knowledge, the most important thing is to know how to classify, to distinguish between old and new knowledge. Knowledge which can complement and support each other and the knowledge is good for the job. We always need to supplement and update their knowledge on a regular and appropriately, avoiding confusing, not clear in the process of receiving knowledge. As the wine business, is a service industry is complex and there is much new information, so updating and organizing information, the full statistical knowledge in a scientific and complete are very important. The knowledge of wine she received from people who are knowledgeable about wine, on the internet, and from the customer. Her tacit will be transfer to the employee; the person is also passionate about wine. But this knowledge will also be stored by: document, data, report, website of company. In this way, the company’ holdings of valuable knowledge are documented in the repositories or in people and are therefore available for future reference and use. But not all knowledge can be applied as strictly in all cases. There will be mistakes as well. As the staff meets clients, consultants and selling products, they have the knowledge and information they read from the knowledge of the company store and search their own knowledge and experience on the job. Director, as well as knowledge management in the company will be sharing as well as combining this knowledge into a system may be useful for companies as well as her own knowledge. As knowledge of wine is always new information for trends of customer always change, the information on alcohol, the age of the wine is complex and is the top concern of customers. We need to handle a flexible and confident to make the peace of mind for customers and employees. When combined as well as knowledge sharing, knowledge systems closely, we need to know how to use a reasonable knowledge of long-term survival and a good reflect. Such as through the knowledge gained about the wine, we will select the best quality products, good service to customers. Analysis of the current market for those goods, to satisfy what customer needs...


Through the analysis as well as specific examples in the company, we see clear knowledge is important in life and work. Good knowledge will create a solid success and contribute to sustainable economic development. Knowledge is an important asset that people always want to own. Accumulation of knowledge and knowledge acquisition is the fastest way to succeed. Each man has their own way to capture, selective knowledge. In addition, we need to know how to manage knowledge in a scientific and reasonable. Where there is knowledge there will be a civilized society and economic development. Therefore, learning, knowledge accumulation will give people a better life.