Knowledge Management For Individual And Organization Commerce Essay

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We all know that knowledge is an extremely important role in the world. Knowledge makes human life change and creates a lot of the achievements for society. The value of knowledge is priceless and it cannot just seem to recording or remembering, it also can be used by organizations to manage knowledge as well as create new knowledge for life.

Besides, knowledge is the main the key of success in business and also helps companies improve their products, services to get more customers and profits. Nowadays, so many famous companies such as Honda, Toyota, Coca-Cola, Apple, etc have been used knowledge management and have been successful with their own products. Of course, each company has its own knowledge which needs to be exploited, built, accumulated and shared by managers and staffs.


What is knowledge and knowledge management?


In general, knowledge is what people gather in life through education, communicating and life experience and knowledge always develops. [1] For example: when you go to school, beside teacher teaches you knowledge, book is a tool represent knowledge in all areas of social life and notebook is also a tool for you to record what you think and know. Besides, knowledge can be also acquired from TV, newspapers or Internet, or from many people around you such as friends, teachers, and other people who have many experienced.

However, in the developing world nowadays, there are so many definitions about knowledge. So, when we want to define knowledge, we should understand clearly what data, information and knowledge:

Data represents raw numbers or statements.

Information is a subset of data, only including those data which possess context, relevance, and purpose.

And knowledge is at the highest level in a hierarchy with information at the middle level, and data to be at the lowest level. [2] 

Knowledge management:

Until now, although there are many definitions of knowledge management in different thinking but anyway knowledge management is the process of identifying, capturing, organizing the intellectual assets. [3] 

Not yet, knowledge management is creating knowledge and improves knowledge. [4] It is the process of sharing technology and information among managers and employees, partners and customers, and even with other companies in order to make best decision for a company.

Moreover, knowledge management is not information technology, it just supports for technology work better. It closely related to the theory and practice, and the problems of people and learning is the central point of knowledge management. [5] 

Types of knowledge:

Explicit knowledge:

Explicit knowledge is shown into words and numbers, documents, drawing, movies, images, magazines, newspaper etc [6] . It is easy to recognize in our daily life by sharing, and communicating. In a company, explicit knowledge is all documents of the company such as contracts, customer information, all kinds of reports. The staff can use or reuse and built more new explicit knowledge.

Tacit knowledge:

By contrast with explicit knowledge, tacit knowledge exists in an individual’s head which is very difficult to explain or share to anyone. It includes learning, experience, feelings and intuitions. [7] This knowledge is not easy to recognize and of course it will be very difficult in transferring the ideas or thinking from this person to others. For example: in football, the professional football players always have a real talent, so much experience and knowledge about football skills. Before football match starts, team usually practice and share their plan together but when they are in match, they just can feel the ball and use their own tacit knowledge.

The important of knowledge management:

The first important thing is human resources. [8] Human can create new knowledge and only human have the ability to apply that knowledge to continue to create more new knowledge but human resources has a characteristic is always changing. So, organizations should have policies to recruit young staff, to create conditions for those who have experience working with new people, and of course appropriate treatment regime. Moreover, knowledge management also can help organizations and individuals handling and solving problems as overloaded information, wrong information to improve the efficiency of decision.

The second important thing is we have to combine both tacit knowledge and explicit knowledge together because it will help us understand clearly what we thinking and easy to let others know. Besides that, in order to make the knowledge of individuals become organizations and people can develop and use for the development, it requires a process of knowledge management life cycle in each organization. And the role of knowledge management in this situation is very important. This process does not only enrich the knowledge of employees but also motivate learning for every employee.

And the final important thing is the information technology. It is extremely effective tool in knowledge management systems. It builds knowledge for the organization, help company check and follow employee working. It also allows employees access the timely decision making.

Knowledge management for individual and organization:

Knowledge management helps individual employee not waste time, have better decision making in creating more products for organization, and improve their skills and their quality. [9] It also can provide challenges and opportunities for staffs to have some promotions. It is a good environment for employees through meetings to share experiences as well as opinions together and the employees have more opportunities to express their thinking and feeling about new product or the company.

Knowledge management also helps organizations have more advantages than other competitors by understanding and use of knowledge created by their employees. [10] And of course, organizations can improve more quality for products and services by using knowledge from modern technology and research from their customers, reduce copy, and produce more innovative products in order to compete with other companies and satisfy what customers demanded.

The skills required in managers:

In fact, the managers should be good listener, assertive and non-judgmental. [11] 

Why? Because a good listener will always listen employee’s ideas. It will not only make employees feel comfortable to share their thinking as well as experiences, but the manager also can easy to talk with employees and let employees know what his thinking. On the other hand, the manager has to assertive in making decision. But first of all, the manager should choose the exactly and useful information such as what customers want now or which products is used the most and determines which technology is needed or the best for company. With this skill, it will help manager save a lot of time and cost for the company or the business. Besides, non-judgmental is also a needed factor for the manager. Actually, non-judgmental is when employees make small mistake, the manager just need to reprimand or use suitable punishments but do not so strict to make those employees see and understand their wrong and the manager has to encourage his employees do again and make it better than before.

Moreover, another skill that the manager has to have is to manage time and cost effectively. Anyone also know that time and cost are two factors affect much to profit and creating advantage for any company . Example: before producing any new product, the managers of marketing usually ask staffs doing the research with customers and choose the best ideas, then they discuss with managers from other areas. After that, each manager will do the plan so as to balance time and cost. In my opinion, I think that is very difficult because if the manager takes longer time, the company will pay more and will lose a lot of chance than other companies.

Example about KM Life Cycle:

Knowledge management life cycle is: [12] 

Create: we use our own knowledge to create product.

Store: the knowledge for that product has to be stored explicitly.

Find: we make the research from customers to find more specific information.

Acquire: after gathering all the information, we select the right knowledge.

Use: we can use that knowledge to get achievement.

Learn: after using the knowledge; we will apply what for the organization needed and learning more for ourselves.

Comparing with Honda, in 1978, Honda wanted to create a new car designs because the Civic and Accord were too familiar with customers. So, work was assigned to a group of young engineers and leaders only two commands: (1) A product with other basic first design, (2) Cars are not expensive not cheap. The idea of groups: cars must be shorter and higher, the sphere will give more spaces inside and saving energy. Finally, new product is a "tall boy" car. In view of knowledge management is an idea from a design car (tacit knowledge) through the sharing, acquisition, selection, evaluation and renewal of knowledge, the engineers at Honda launching a new vehicle (explicit knowledge). [13] 

Another example is Coca Cola Company, a famous company about soft drinks. It has been produced so many kinds of drinks such as Coca-cola (1886), Sprite (1962), Diet Coke (1982), Cherry Coke (1985), Vanilla Coke (2002), Black Coke (2006), and Orange Coke (2007). [14] Before, company sold those drinks into bottles throughout the world. After that, company thinks that using bottles is very inconvenient for people who want to bring their drinking next to them, so they distributes and merchandises drinks in cans and bottles to retail stores and vending machines. Moreover, Coca Cola Company also introduced snacks, foods for people to enjoy their lives in the most convenient ways and to have a good health.

Thus, after two examples above, now we can understand clearly that knowledge management is very important for any company and it has been used for long time ago. The main point here is how can those companies know and use knowledge management in the right way and how can they apply Knowledge Management Life Cycle into their company. The answer will be after all the problems; they usually find out the exactly reasons and save them in order to remind their employees to not do the wrong thing again. Not yet, they also use modern technology as well as useful information from searching customer’s demands to create more new knowledge for company.


In a competitive environment nowadays, many companies has applied knowledge management as the main factor in their company because to develop any new product or service, it requires a combination of research, production, marketing, sell and finance, etc.

In my opinion, I think knowledge management actually is potential and experience. After doing this research, I recognized that knowledge management is very important for any organization or company such as bring so many chances and profit, create a knowledge management system in order to help the company create more advantages in business, help the employees work assiduous and effectively, the managers can make their own decisions, decrease mistakes and satisfy customer's demand.