Knowledge Management Importance In Organisations Commerce Essay

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In today competitive environment, the knowledge management is significantly become more importance in many organisations. According to Chaffey (2007, p.486) define that knowledge management is the management of activities and processes for leveraging knowledge to enhance competitiveness through better use and creation of individual and collective knowledge resources. Knowledge can be divided into two different types which is explicit knowledge and tacit knowledge.

Therefore, knowledge is an important resource in nowadays modern organisation. Consequently, the source of knowledge is uniqueness and difficult imitate by the competitors.

Industry analysis

In this age of globalisation, knowledge acquisition has become the critical means for acquisition competitive advantage

In this age of globalisation knowledge

acquisition has become the critical means for gaining competitive advantage, and as

such learning has become a crucial element of knowledge acquisition, application and

creation (Longworth and Davies, 1996). The widespread proliferation of internet

technologies and applications provides incredible opportunities for the delivery of

education and training, and with rapidly increasing internet usage e-learning has now

become a portable and flexible new method for learners to gain essential knowledge ( ching, lee, factors influence the adoption of e-learning system)

The forces of technology, globalisation and emerging knowledge economy are creating a revolution that is forcing organisations to search for new ways like implement knowledge management at the organisation in order to compete with the competitor.

2) Current use of knowledge management in the Higher education industry

Nowadays, higher education is face challenges in the competitive environment. Therefore, using knowledge management techniques and technologies in the higher education is vital because higher education is in the corporate sector. If the higher education can implement knowledge management effectively, it can lead to better decision-making capabilities, improve academics and administrative services, reduced cost and others. (Kidwell, Linde and Johnson, 2000, p.31) Consequently, knowledge management is one of the good management tools in today's knowledge based society.

2.1) Knowledge management in Moscow State University of Economics, Statistics and Informatics (MESI)

According to Tikhomirova, Gritsenko and Pechenkin (2008, p.16) state that Moscow State University of Economics, Statistics and Informatics (MESI) is one of the leading research and educational centres in the field of economics, mathematics, statistic, IT and management all over the Russia and Commonwealth Independent State ( CIS) countries. Furthermore, MESI is founded in 1932 and is an innovative educational and scientific complex, with 50 branch establishments, 117 representatives' offices and more than 200 regional partners in Russia, CIS and other countries. In addition, MESI also acknowledged as a leader in the development and implementation of the latest training methods and innovative technologies of E-learning.

Nowadays, the higher education is recognized to be in the knowledge business and gradually more exposed to marketplace pressures in a similar way to other business all over the world. (Rowley, 2000, p.325) Thus, many education organisations is recently begun to realize the importance of those changes and also begin to implement the knowledge management to the organisation. For instance, based on the Tikhomirova, Gritsenko and Pechenkin (2008, p.16) state that MESI is one of the education organisation are have several knowledge management initiatives that the University can execute like through creating knowledge management research centres; creating knowledge management disciplines, and implement it in a university curriculum; opening knowledge management learning programs on each level like certificate, bachelor, master and PhD levels; implementing knowledge management Initiatives in the University's processes and organizing external consultancy services for government and private organisations. Consequently, all of these initiatives has undertaken by the MESI. Furthermore, "MESI's objectives are to improve collaboration with government and business; want to increase quality, effectiveness, efficiency and innovations. In addition, MESI's goals are want to make the University knowledge resources relevant, transparent, systematic, accessible and usable. Finally, the MESI is wanted to achieve powerful competitive advantages". (Tikhomirova, Gritsenko and Pechenkin, 2008, p.16)

2.1.1) Quality management system (QMS)

According to CERCO Working Group on Quality (2000, p.7) define that Quality Management System (QMS) as a managing structure, responsibilities, processes, procedures, and management resources to implement the principles and action lines needed in order to achieve the quality objectives of an organisation. Therefore, Tikhomirova, Gritsenko and Pechenkin (2008, p.17) state that MESI also have implemented the QMS which is certified in compliance with the ISO 9001:2000. The implementation of QMS concepts in this University is involving leadership, process, systematic approach, client orientation and others. Thus, all of this QMS concepts are lays the basis for planned knowledge management initiatives to the University. In addition, this QMS concepts implement by the University is actually a system for requirements' identification and fulfilment, addresses the needs of internal and external stakeholders, employers, internal interested parties like faculty and employees and others. Furthermore, QMS also support the international requirement for research and quality education. Consequently, from the QMS concept, it seen the knowledge is an important asset for the MESI to leverage throughout the whole university system (Tikhomirova, Gritsenko and Pechenkin, 2008, p.17)

Moreover, there is having other knowledge management reinforcing elements embedded in exiting QMS approaches which is the MESI's system of Strategic and Operational Management Planning are support the knowledge programs all over the strategic plan, quality policy and goals.( Tikhomirova, Gritsenko and Pechenkin ,2008, p.17) This strategic planning of University can be view in appendix 1. Thus, through apply this strategic planning, the MESI conducts it every six months, both an internal and external evaluation of its strategy, visions and goals, in compliance with an internal Rules of Procedure. Beside this, it is a self-assessment of each main process and output. Furthermore, this strategic planning also is a system for monitoring, reviewing and analysis of needs, opinions and attitudes of employers and end-user like student, graduate student and others. (Tikhomirova, Gritsenko and Pechenkin, 2008, p.17) Consequently, the developed service of marketing and monitoring is used for this purpose. Thus, based on Davidson and Voss (2002, p.149) state that knowledge is understood to be a strategic resource and system are in place to certify that the organisation can forecast its future knowledge needs. As a result, strategic planning is an important tool for the University and it can provide benefit to the MESI which have improvement the areas of technological infrastructure, student services, program delivery, institutional and executive commitment, financial health, and others.

2.1.2) the key Realms of Knowledge Management

According to Petrides and Nodine (2003, p. 10) describe that three core organisational resources in the knowledge management is involve processes, people and technologies. Hence, this three component can lead the organisation to use and share information more effectively. Process, People, Technology

However, according to Tikhomirova, Gritsenko and Pechenkin (2008, p.18) state that MESI operates the university's business activities and functions by utilizing a process model. This process model can view in appendix 2. Through the diagram from appendix 2, the MESI's process model has an owner and well-defined goals. In addition, every basic process are described and translated in the regulation documents of MESI. Therefore, this is a knowledge sharing in the University because each of the faculty and employee also can access the information through the university corporate portal. Thus, for each process, this will involve the people like staff, clients, partners and competitors. Moreover, MESI also continually undertake reengineering as a consequence of feedback and analysis. Therefore, this process model can guide the MESI to implement the knowledge management more effective. Beside this, from the MESI's process model, it can provide the appropriate knowledge management tools and technologies to the system. So, this is involve the technology in the university when implement the knowledge management. Consequently, this is the main idea of a systematic approach to knowledge management implementation is integrating the knowledge management cycle to each business process. Lastly, the knowledge ma


Appendix 1: Strategic Planning of University

Sources: appendix 1 adapted from Natatya Tikhomirova, Anatoly Gritsenko and Alexander Pechenkin (2008, p.18)

Appendix 2: MESI process model

Sources: appendix 2 adapted from Natatya Tikhomirova, Anatoly Gritsenko and Alexander Pechenkin (2008, p.19)