When it comes to looking for a plan to meet the challenges within an organization with new innovations and keeping up with the competition it is critical to have a process that will successfully get you where you want to go. In today's organization knowledge has become an important key of consideration. One reason this seems to be is obvious; it is because of how it relates to the current growing global economy. According to Drucker (1993) "The main producers of wealth are information and knowledge" (p. 167). So what is Knowledge Management and how important is it to organizations? Knowledge Management is said to be a useful tool that connects valuable information. In building more knowledge of the situation one can establish a stronger base for competitive innovations. According to Wu and Lin (2009) by defining knowledge management this helps to establish goals for knowledge management that is stable and becomes a valuable resource for meeting the competition from the knowledge viewpoint.
Knowledge Management Strategies is defined around choices that are decided upon to support the structure of the organization's growth in learning to determine the knowledge resources (Hansen el al., 1999; Zack, 1999a). These Knowledge Management (KM) strategies are establish clarity in order to make sure the main people are well informed when the time comes for making the right decision. As a leader one must understand the importance of informing others about what they have discovered to enhance the operation of the organization in the growth process. In the case study of Forcadell and Guadamillas (2002) some Knowledge Management (KM) strategies outlined to understand this process are as follows:
The first step identified for Knowledge Management is defining concepts as they relate to KM and the innovation.
The second step involves implementing these concepts into the strategy process so an evaluation to gather data that can be recorded.
Then taking the information and looking at the facts a master fit can be established that works for everyone.
Other researchers found that the concepts of "Knowledge" is its integrated abilities, organized information, and an opportunity to use technology to improve products and the strategy process to provide a more competitive advantage (Hall, 1992; Liebeskind, 1996; Winter, 1987). Many know that knowledge can help improve a situation if they right information is acquired. But in clarifying the Knowledge Management process the organization can prepare for the renewed process the organization is seeking.
Innovation is recognized today as buzz word in the business world today. So what is innovation all about? Having an eagerness to cooperate in the new Knowledge or idea is an essential benefit in developing innovations. Therefore it becomes important to observe different beginning stages from an internal and external position. One can identify the internal position as the knowledge base. Here the facts or experiences are gathered from within the organization. One of these aspects would be internal knowledge and the other would be that of external knowledge source. The External would involve outside sources. Innovations in the area of technology must consider and some important steps in the innovation process. These points are cooperation between the groups, strategies, unpredictability, and differences in focus. According to Nonaka and Takeuchi (1995) all these points clarifies that the innovation process in a ï¬rm will be a very wide-ranging one which involves obtaining knowledge from an existing organization, the combining of information, data or previous experience and the generation of new uses for the resources.
A number of authors in addition to these have shown that the new knowledge generated is the principal source of innovation for a ï¬rm (Forcadell & Guadamillas, 2002, p.163) While cultural systems seemingly classify the same phenomena, they are different for each stressing somewhat different aspects of business strategies (Forcadell & Guadamillas, 2002). KM is complex with multifaceted concepts across functional and organizational boundaries, it is unsure of how to translate a firm's competitive strategy more intelligent into the specific KM activities.
Importance of Organizational Capabilities
Acceptance of change is not always appealing to those needing to embrace change. But many companies' today are facing what they may have once dreaded. One top company that is setting the examples for others in creative innovative compatibilities is the Izizar Company. This company provides openness to the promotion of ideas that gets results and places them in a step ahead of their competitors. According to Forcadell and Guadamillas (2002) this company understands new ideas and methods when it comes to innovation. The innovation and method is separate, that is, the innovation is their goal, and KM is considered their method. Establishing culture values add the needed support for achieving a successful innovation for this company. Some of these values are:
The sharing of ideas and dreams within the organizational team and being committed to
b) Their experiences provide the necessary knowledge,
c) Izizar established its focus on creative innovation and knowledge,
d) Encouraging learning among their organizational teams, and
e) Being self-sufficient for making the needed decisions and flexible when one them makes a
mistake in recognizing new knowledge (Forcadell & Guadamillas, 2002, pp.168-169).
In the process of transforming an organization Isern and Pung (2007) discuss the importance of one being able to clearly communicate the new energetic ideas, as well as, create them. When an organization seeks knowledge intently they have already placed themselves in a top position to provide unique services and creating more profit and gain as they sustain the competition (Davis & Botkin, 1994). With the Izizar Company they not only look for innovation, but they have working teams who share experiences, are committed to the innovative ideas, and support each other with trust.
Organizations are looking for leaders that can make a difference. Having the value of trust goes a long way in that if the working team feels that they are trusted they are more receptive to the new idea. Great leaders should make it a point to have all team members feel they are a part of the KM. Today one may find a number of organizations coming to the understanding that knowledge is very valuable when it comes to keeping up in this economy. Knowledge is one opportunity that is easily available to those who are seeking it. The benefits of KM allows for the development of improvements and innovations on products and processes, capable of creating value, which then becomes part of the new knowledge in the system (Forcadell & Guadamillas, 2002).